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Marylebone Warwick Balfour Grp PLC25 September 2007 FOR IMMEDIATE RELEASE25th September 2007 MARYLEBONE WARWICK BALFOUR GROUP PLC: INTERIM RESULTS FOR SIX MONTHS TO 30th JUNE 2007 HIGHLIGHTS • Substantial uplift in equity attributable to shareholders increasing by £132.2m to £231.5m from £99.3m at 31st December 2006. • Equity shareholders funds per share advance 133% to 287p from 123p at 31st December 2006. • Adjusted equity shareholders funds per share, after accounting for stakes in MWB Business Exchange Plc and Liberty Plc, amount to 318p up 72%. • EBITDA (excluding property profits and transaction costs) up 31% to £11.4m against £8.7m in the 2006 comparable period. "The second half of the year is well underway and the indications are extremelypromising, with each Group business looking to build on its first halfachievements and, therefore, I look to the future with optimism." Eric Sanderson, Chairman Contact: Marylebone Warwick Balfour Group Plc Tel: 020 7706 2121 Richard Balfour-Lynn, Chief Executive Andrew Blurton, Group Finance Director Baron Phillips Associates Tel: 020 7920 3161 Baron Phillips MALMAISON AND HOTEL DU VIN-------------------------- • Revenue over the half year grew by 14.5% to £41.9m from £36.6m for the 2006 comparable period. • Like-for-like revenue (excluding new hotel openings) rose 5% over comparative period. • EBITDA grew by 3% before exceptional items from £9.7m to £10.0m despite major opening programme. • Full year EBITDA expected to exceed last year's £23.4m. • 21 operating hotels now open - a further 5 to open over next 12 months - compared to 17 at 31st December 2006 year end. • Hotel properties valued at £553m at 30th June 2007 up from £349m at 31st December 2006 • Average room rate over period rose by 6% to £115 against £108 a year ago. • Overall occupancy, including new hotels, 77%. "The six months to 30th June 2007 have been a highly successful period for bothMalmaison and Hotel du Vin. Both businesses demonstrate that well managed brandscan expand and grow profitably without diluting their underlying value. With theoperational evidence of the third quarter, I look forward to the remainder ofthe year with confidence." Robert B. Cook, Chief Executive, Malmaison Group. MWB BUSINESS EXCHANGE PLC------------------------- • Revenue grew 22% to £47.9m over the comparable six month period to 30th June 2006. • EBITDA rose strongly by 61% to £6.2m compared to the six months to 30th June 2006. • Pre-tax profits increased 2% to £3.5m compared to the six months to 30th June 2006. • Annualised Revenue Per Available Workstation (REVPAW) advanced 19% to £8,600 at 30th June 2007 from £7,250 at 30th June 2006. • Annualised Revenue Per Occupied Workstation (REVPOW) up 9% to £9,800 at 30th June 2007 compared to £8,960 at 30th June 2006. • Meeting and conference room division up by more than 50% to £5.1m over the comparable six month period to 30th June 2006. • Occupancy increased to 88% at 30th June 2007, up from 81% at 30th June 2006. • Robust contracted income accounting for over 60% of current 12 month projections. • New Business Exchange centre successfully opened at Baker Street - over 90% occupancy achieved within 5 months. • Six additional centres to be launched by year end. • In the 12 weeks since 30th June 2007, MWB Business Exchange has generated unaudited EBITDA of approximately £3.8m before the positive impact of newly opened centres. "This is an exciting time for the business as we continue to go from strength tostrength, exceeding expectations around key performance indicators andprofitability. We have the right business model in place to continue growing andto deliver enhanced shareholder value." John Spencer,Chief Executive, MWB Business Exchange Plc. LIBERTY PLC----------- • New Chief Executive joined 1st July 2007 and additional appointments to executive management team: o New Human Resources and Change Director appointed from Maybourne Group. o Director of Internet, Supply Chain and Retail Merchandising joins from Harrods. • Further advance in total Group revenue to £20.8m - up from £20.3m in comparable period. • Flagship store sales advanced 1.9% to £16.5m. o Menswear increased sales by 28% to £2.1m. o Accessories sales rose by 7% to £3.5m. o Liberty of London luxury brand sales up 23% to £1.2m. • Further strengthening of Liberty balance sheet through upward valuation of Great Marlborough Street store to £37m from £35m. • Pre-tax losses of £2.3m, against £1.9m, reflecting increased brand investment of £1.6m. • Independent Liberty of London shop leased in Sloane Street - anticipated Spring 2008 opening. "We believe Liberty is entering a new era where it is re-capturing the ethos anddesire to provide cutting edge design in a luxury retail environment for whichthe company was once synonymous. Our objective over the next 12 months is tofirmly establish this framework enabling us to make Liberty, which will be ledby the Liberty of London brand, to become a byword for luxury retailing. "I passionately believe we are establishing a great team and an increasinglyrecognised luxury brand with enormous potential. Therefore, I am confident thatwe can continue to build on our established foundations and move to the nextstage in our growth strategy. With that in mind I believe the future isexciting." Geoffroy de la Bourdonnaye, Chief Executive, Liberty Plc. CHAIRMAN'S STATEMENT-------------------- This has been a further period of growth for the Group's principal operatingbusinesses as they continue to establish themselves as leading companies intheir respective fields. Over the past six months covered by this interimstatement we have seen earnings advance substantially in both our servicedoffice business and our hotel operations while retailing has made great progressin developing its luxury brand offer. The overall performance of the Group reflects the energy and dynamism of eachcompany's management team, two of which run listed companies in their own right,and the results for the period have been impressive. Since MWB Business Exchange, in which the Group has a 68% interest, was admittedto trading on AIM in December 2005, it has made rapid strides to consolidate itsposition as one of the UK's leading providers of flexible office space. It hasproduced a 22% uplift in revenues over this period to 30th June 2007 and seenoccupancy rise by 14% to 88% since the previous year end of 31st December 2006.Its strategy of focusing on the prime central London and key regional businessmarkets which are demonstrating strong growth, is delivering excellentshareholder returns for the Group. Our two leading lifestyle hotel brands, Malmaison and Hotel du Vin, in which weown an 82.5% stake, have also made some tremendous advances. Since the start of2007 we have opened a further four new hotels taking the operating total to 21with a further 5 in the pipeline that are scheduled to be opened by the end of2008. The Malmaison Group continues to win well-deserved awards for both qualityand service which have been achieved while continuing to grow earnings. Liberty, where our interest is also 68%, and which is also quoted on AIM,continues to expand its luxury brand offer to great acclaim both here in the UKand abroad. The business is now under the leadership of a new Chief Executive asit aims to consolidate its position as a key retail destination offering cuttingedge design and fashion. We have strengthened the Executive Team at Liberty witha number of senior appointments in order to achieve our objective of creating atrue luxury goods business. This also involves us continuing to invest in theLiberty of London brand through product range development and our new standalone store, as well as improved service delivery across the entire Libertybusiness, which we anticipate will deliver operational benefits to Liberty inthe future. For shareholders, the key statistic in these results to 30th June 2007 is the£165m property valuation uplift over the period since 31st December 2006. At theheart of this increase has been the rise in value of our Malmaison and Hotel duVin property portfolio. With the expansion of our two brands we now have 21operating hotels and a further 5 hotels due to come on stream during the next 15months, in comparison to only 17 at 31st December 2006. As a result of these additional operating hotels, the earnings and futureexpectations for these properties are significantly higher than was the case sixmonths ago. This has led to an increased value of £553m being attributed to theMalmaison and Hotel du Vin portfolio at 30th June 2007 on a RICS Red Bookvaluation basis. This is a valuation of the property elements only of theindividual hotels and as such does not reflect the market value of theoperations, our brands and the goodwill of our business. These are additionalsignificant components to the actual market value of the Malmaison and Hotel duVin business that is owned by the Malmaison group. This Red Book valuation of £553m, of the Malmaison and Hotel du Vin properties,represents a surplus of £163.5m during the six months ended 30th June 2007compared to the valuation at 31st December 2006. It is important to note thatover the next two years, as the five new hotels currently being developed andthe two extensions to existing properties become operational, there should alsobe further major uplifts in the value of this portfolio. These would accrue tothe Group either in the value achieved in the proposed sale or in the increasedvalue of the properties retained. There has also been a further contribution from Liberty, which has seen thevalue of the Tudor building rise by £2.0m from £35.0m at the December 2006 yearend to £37.0m at 30th June 2007. As a result of these increases in property values, and after taking account ofminority interests, equity attributable to shareholders increased by £132.2mfrom £99.3m at 31st December 2006 to £231.5m at 30th June 2007. This representsan increase of 164p a share, up from 123p to 287p per share. Whilst these financial statements reflect these property valuations, they do nottake account of the net value of the Group's shareholdings in its two AIM listedsubsidiaries, MWB Business Exchange Plc and Liberty Plc, at 30th June 2007. Afteraccounting for these net uplifts, calculated by reference to the stock marketvalues at 30th June 2007, adjusted equity attributable to shareholders at thatdate was £256.3m or 318p per share, an increase of 72% over the 185p a share wereported at 31st December 2006. Operating EBITDA (which excludes one-off profits on investment propertydisposals and the £4.6m costs incurred on the aborted Vector Hospitalitytransaction) was £11.4m for the six months ended 30th June 2007, up from £8.7m ayear ago. In addition to this we have made a £5.1m profit on the sale of ourdevelopment property at Old Bailey, EC4 to Standard Life. Here we will alsocontinue to manage the development of the property and will, therefore, receivefurther income from this source as the development progresses. At the pre-taxlevel we produced a profit of £812,000 for the six months to 30th June 2007before the one-off costs referred to above, in comparison to £1.3m a year ago. On 2nd July 2007, we appointed Banc of America Securities to conduct the sale ofthe 21 Malmaison and Hotel du Vin hotels currently built and operating, afurther five hotels under development, their unique brands and the hoteloperations of the business. This proposed sale formed part of the Board's longstated and approved strategy by shareholders of returning cash and cashequivalents to shareholders by realising high prices for the Group's assets. On20th September 2007 the Board, having been advised by Banc of America Securities,announced that it had delayed this sale as a result of the current uncertaintiesin the markets. I am pleased to announce that we recently received confirmation that MWB had wonthe EPRA Best Performer Award for 2006 in the small/mid-capitalisation sectionof the Stock Market. This is further recognition of the significant increases invalue that we continue to produce for the benefit of Shareholders. The second half of the year is well underway and the indications are extremelypromising with each Group business looking to build on its first halfachievements and therefore I look to the future with optimism. Eric SandersonChairman25th September 2007 MALMAISON AND HOTEL DU VIN OPERATING REVIEW------------------------------------------- Once more I am delighted to report on another period of growth and success forthe Malmaison group as it opens new hotels and garners more awards. During the past six months to 30th June 2007, we have moved substantiallyforward in our stated objectives of expanding both the Malmaison and Hotel duVin groups into new locations whilst at the same time maintaining the brandquality for which we are known. Over the period we opened a new Malmaison hotel in Liverpool and two new Hoteldu Vins in Glasgow and Cheltenham. In addition we acquired the Mansion Househotel in Poole, which will be converted into a 38 room Hotel du Vin and is dueto open in May 2008. Since the end of June we have opened a new 41 room Hotel duVin in Cambridge and a new 75 room Malmaison in Reading, while a further 45 roomHotel du Vin will open in York during December 2007. In Edinburgh we purchased a unique building in the Old Town at Bistro Place. Theacquisition is firmly in the Malmaison group tradition of acquiring unusualbuildings for hotel conversion; in this case it is the former Edinburgh asylum.We intend to convert this into a 47 room Hotel du Vin, opening in August 2008.Also due to open in Summer 2008 is a 41 room Hotel du Vin in Newcastle, where weare converting the former Tyne & Wear Shipping Office, while in Aberdeen'sfinancial district we expect to open an 82 room Malmaison in late 2008. In June 2007 we exchanged contracts to acquire the former Sussex Arts Club,adjoining our Brighton Hotel du Vin, which we expect to complete next month. Wewill then convert the building to provide a further 13 bedrooms and one suite,as well as the existing pub which will be branded as a "Pub du Vin" to create aquintessential English hostelry offering traditional food complemented by ourfine wine culture. As a result of this strategic expansion, at the date of this statement, theMalmaison group now operates a total of 21 hotels, 11 Malmaison and 10 Hotel duVin; with a further 5 pipeline properties that should all open during thecourse of 2008 taking our total to 26. Additional sites have been identified forboth brands and we are in advanced negotiations to purchase these sites. ForHotel du Vin, sites in Exeter for a 53 bedroom development, in London's West Enda 45 bedroom development and a 40 bedroom development in Southport have all beenidentified. For Malmaison, a second site in London with 180 bedrooms, adevelopment in Milton Keynes for 120 bedrooms and a city centre site inSheffield for 85 bedrooms have all been identified. All of these reflectthe style and panache of the existing portfolio and will be created fromhistoric or iconic buildings in each of the destinations. Furthermore, wecontinue to look for suitable sites and unusual buildings to continue tostrengthen our hard won brand image and recognition, which is widely knownwithin the industry. At the operating level we have achieved great success with our "ProvenanceMenus". In January 2007 we launched our "Home Grown and Local" menus in all ofour Malmaison restaurants where we focus on sourcing all the ingredients fromwithin a 30-mile radius. Hotel du Vin launched its similarly based "Land, Seaand Local" menus in March to great acclaim. In both cases these menus have donemuch to stimulate our lunchtime food and beverage business, especially withinthe Hotel du Vin restaurants which have traditionally been a stronger dinnermarket than Malmaison. Recognition of our increasingly improved food offer, especially through the"Provenance Menus", came earlier this year when we were voted AA Hotel of TheYear. As a result our hotels have been awarded a further rosette reflecting thisoffer. Over the period we received several other awards including "Best Place to Work"at the Catey Awards, with the Oxford Malmaison being voted best Group Hotel ofthe Year. It should always be borne in mind that these awards reflect as much onthe staff as they do on senior management and I believe these, and the othermany awards we have received indicate that customer service is uppermost in theminds of all our staff. The Malmaison group's hotels have become not only fantastic places to stay anddine but, equally important, great places to work. This is not always the casein our industry and I would like to congratulate everyone within the Malmaisonand Hotel du Vin team for consistently achieving the high standards that theyset for themselves. This is the culmination of the unique touch points of ourbusiness; a distinctive design edge, first class food and beverage provision, adynamic people development strategy and regular guerrilla marketing campaigns,all with that high octane voice that is adopted as our brand style, that setsthese two brands apart and well ahead of the mainstream UK hotel market. Our development programme, whether it is new hotels or staff training, is aboutdriving growth. It is pleasing to note that our "new" hotels, such as Henley,Oxford and Belfast, have become well established in their respective areas andare producing double-digit growth. Across the Malmaison group, occupancy for our established hotels has remainedconsistently strong over the six months to 30th June 2007 at 79% and even whenthe newly opened hotels are included, overall occupancy has been an extremelycreditable 77%. At the important revenue level we continue to make excellent progress. AverageRoom Rates ("ARR") across the Malmaison group, including the new hotels,improved by 6% to £115 against £108 a year ago, but if the new hotels areexcluded the ARR was 10% higher at £119. Revenue per Available Room(REVPAR) also grew by around 6% to £91 compared to £86 a year ago. During the six months ended 30th June 2007 there has been strong growth in ourkey areas of Revenue and EBITDA. Total revenue across the Malmaison group rose14% to £41.9m compared to £36.6m a year ago. EBITDA for the six months to 30thJune 2007, excluding the one-off costs relating to the aborted VectorHospitality transaction, grew by 3% to £10.0m against £9.7m for the 6 monthperiod to 30th June 2006. This is despite the new openings at Liverpool, Glasgowand Cheltenham. During this period we also rolled out our new front of houseoperating system, the cost of which we expensed entirely in the results for theperiod. We also conducted major refurbishments at certain hotels during the sixmonths to 30th June 2007, which reduced operating availability but will provideenhanced operating capability for future periods. Accordingly, we confidentlyexpect a substantial increase in EBITDA for this year over the record £23.4m weachieved last year. As our new hotels become established they become net contributors to theMalmaison group, producing cash flow which we use to continue our investment inour established portfolio throughout the year. As mentioned above, this expansion means that we now have 21 operating hotelsand a further 5 hotels coming on stream over the next twelve months, incomparison to 17 at December 2006. As a result, earnings and future expectationsof this portfolio are significantly higher than was the case six months ago.This has led to an increased value of £553m being attributed to the Malmaisonand Hotel du Vin portfolio at 30th June 2007 on a RICS Red Book valuation basis.This is a valuation of the property elements only of the individual hotels andas such does not reflect the market value of the operations, our brands and thegoodwill of our business. These are additional significant components to themarket value of the Malmaison and Hotel du Vin business that is owned by theMalmaison group. This Red Book valuation of £553m represents a surplus of £163.5m during the sixmonths ended 30th June 2007 against the valuation at 31st December 2006. It isimportant to note that over the next two years, as the five new hotels currentlybeing developed and the two extensions to existing properties becomeoperational, there should also be further uplifts in the value of thisportfolio. At 30th June 2007, external debt was £229m, which is forecast toincrease to approximately £255m after these developments and extensions havebeen completed. The six months to 30th June 2007 have been a highly successful period for bothMalmaison and Hotel du Vin. Both businesses demonstrate that well-managed brandscan expand and grow profitably without diluting their underlying value. With theoperational evidence of the third quarter, I look forward to the remainder ofthe year with confidence. Robert B. CookChief ExecutiveMalmaison Group25th September 2007 MALMAISON AND HOTEL DU VIN - KEY FINANCIAL HIGHLIGHTS----------------------------------------------------- Malmaison has expanded organically and by acquisition of further operatinghotels during the period under review. The key performance indicators for thebusiness, together with its trading and balance sheet performance in recentperiods, are summarised below:- Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006Malmaison---------Total revenue £'000 26,213 23,144 48,912 Average occupancy for period % 76 78 79 Average room rate for period £ 112 108 107 EBITDA £'000 7,097 7,012 9,670 Number of operating hotels at period end 10 9 9 ====== ====== ======Hotel du Vin------------Total turnover £'000 15,729 13,413 30,189 Average occupancy for period % 83 84 84 Average room rate for period £ 124 96 118 EBITDA £'000 2,939 2,701 13,719 Number of operating hotels at period end 9 7 8 ====== ====== ======Combined Malmaison and Hotel du Vin-----------------------------------EBITDA (before costs of Vector Hospitality transaction in six months to June 2007) £'000 10,036 9,713 23,389 Pre-tax (loss)/profit (before costs of Vector Hospitality transaction in six months to June 2007) £'000 (2,711) 585 5,101 Total recognised income and expense £'000 155,524 12,609 25,953 ======= ====== ====== 30th June 30th June 31st December 2007 2006 2006Balance sheet composition -------------------------Property, plant and equipment £'000 525,877 286,973 336,958 Debt £'000 (224,285) (181,187) (199,093) Equity attributable to shareholders of MWB Group in Malmaison and Hotel du Vin £'000 236,197 88,188 106,380 Equity attributable to shareholders of MWB Group in Malmaison and Hotel du Vin, in pence per MWB Group share Pence 293p 93p 132p ======= ======= ======= MWB BUSINESS EXCHANGE PLC OPERATING REVIEW------------------------------------------ This has been another period of excellent growth for the business with advancesin all our key areas of performance. Over the six months under review we have continued to develop the business inline with our stated strategy of generating attractive returns from sustainableincome streams resulting in a dramatic increase in EBITDA. We have continued toconcentrate on fulfilling our defined growth plan by taking occupational leasesin the London market whilst expanding in targeted regional cities throughoperating and management agreements (OMAs). During the period since flotation in December 2005, we have either opened or arein the process of opening 15 new centres, of which seven are London leases, fourare London OMAs, one is a regional lease and three are regional OMAs. Typicallyour new centres are un-branded and have been designed with a more contemporaryfeel to maximise appeal to our clients. We also closed eight underperformingcentres to improve our overall business model and improve returns toshareholders. As a result of this activity, we now have 58 centres at the dateof this statement, half of which are in London. We have been rigorous in themanagement of mature centres, with particular emphasis placed on marginimprovement; enhancing EBITDA through improved yield management; growingexisting as well as new income; and continuing to mitigate risk. Our meeting venues offering has continued to perform strongly over the last sixmonths with revenues across our 250 meeting rooms increasing by more than 50% overthe same period last year. This increase is a result of continued targetedmarketing and higher client retention. The outlook on growth in this arearemains strong. The Company has made significant progress in a number of key areas as wecontinue to develop and improve the MWB Business Exchange offer to meet therequirements of our increasingly expanding and diverse client base. Our dedicated acquisition and launch teams are highly experienced in finding newlocations as well as project managing the design and fit out processes. Thegroup has a proven track record of acquiring and developing commercialproperties into operational business centres and typically we can make theprocess of conversion of an acquired location to a business centre in as littleas three months. This enables pre-sales and marketing activity to begin as soonas the acquisition of the relevant centre has been completed and the keyobjectives can be delivered by our teams. A particular strength is our ability to ensure sales and marketing activity isfocused on generating committed occupancy before new centres become operational.This is illustrated by the fact that on average, our new locations are achievingoccupancy levels in excess of 85% within five months of opening, which iscomparable to occupancy levels for mature centres which are already wellestablished. There is little doubt that the impact of our strategy of concentrating on keybusiness markets and locations, which has also improved our brand awareness, isa major factor in the upsurge in demand and interest in our products andservices. Over the past six months we have expanded our Central London portfoliosignificantly with new centres reaching maturity in the West End - Baker Street,Tottenham Court Road and Cavendish Square - and in the City - Cannon Street,London Bridge and London Wall. This expansion is further supported by new centres which are expected to come onstream during the course of the current six months to the end of December 2007,including Liverpool Street, Basinghall Street, Threadneedle Street and FinchLane in the City, while Basil Street (the former Basil Street hotel) inKnightsbridge will become a fully operational business centre in the Summer of2008. Currently we have a total of 58 centres open, or set to open within thenext few months, providing more than 15,500 workstations and 250 meeting rooms,compared to approximately 14,000 workstations and 200 meeting rooms atDecember 2006. Growth has been focused around the London market where 11 centres have beenopened since flotation in December 2005, seven of which were new leases. Thedemand for space in London has been and continues to be strong while availableoffice accommodation is becoming scarce. London's position as the financialcapital of the world and the run up to the 2012 Olympics leads us to believethat demand will remain very strong looking forward. Office rents in London arecontinuing to increase with record levels being achieved in the West End,particularly in Mayfair and St James's. Rents in the City are likewiseincreasing and this is having a positive effect on the workstation rates we areachieving. OMAs have shown particularly strong growth. Over the last six months, we havetaken on or are in the process of acquiring five OMAs taking our total to 18. Ofthe five new centres, three are in London, one is in Newcastle and one is in theheart of Manchester's vibrant business district. A key aspect of our OMA growth is that they help expand the portfolio withoutexposing the Company to substantial capital expenditure or to long term leaseliabilities, while still generating significant management fees and share ofprofits for the Company. This is an increasingly powerful aspect of our business as it enables us to workclosely with property owners to generate income quickly from their vacant spacewhich may be surplus to the owner/occupier's current needs. Typically these OMAs run for up to 10 years but the length of the contract canbe tailored to the individual landlord's or tenant's requirements. We willcontinue to pursue OMAs, especially outside London, as they generate attractivereturns for relatively low risk. OMAs are also a stepping stone to exploring other growth opportunities withlandlords, for example back-to-back leases, turnkey solutions, fit-out servicesand facilities management, thereby generating further valuable returns for bothparties. The financial results for the six months to 30th June 2007 show a significantimprovement over the comparable period to 30th June 2006. Total revenue advancedby 22% to £47.9m compared to £39.3m for the six month period to 30th June 2006.This has produced a healthy increase in EBITDA, which rose 61% to £6.2m over thesix month period to 30th June 2007, compared with £3.9m during the six months to30th June 2006. Pre tax profits for the six months to 30th June 2007 grew to£3.5m, a 2% increase from £3.4m over the comparable period. The differentialbetween growth in EBITDA and growth in pre tax profits is a result of higherdepreciation in this half, emanating from the significant investment made in newcentres and in our existing buildings. As these new centres mature during thesecond half of 2007, the results will demonstrate the truer benefit of this capitalinvestment which we expect will be demonstrated in further growth in EBITDA andpre tax profits compared to these first six months. The strength of our financial performance in the six months to 30th June 2007 isreflected in our key performance indicators. Revenue per available workstationrose by 19% to £8,600 at 30th June 2007 compared to 30th June 2006 and revenueper occupied workstation grew by 9% to £9,800 over the same period. Occupancyhas increased from 81% to 88% at period end 30th June 2007 compared to periodend 30th June 2006. We remain financially strong with no finance leases or bank loans, allied withrapid conversion of EBITDA into cashflow. This results in the business beinghighly cash generative with the ability to expand organically from its ownresources. Strong operational cashflow remains a prime focus for the business. As I have mentioned, market conditions remain strong for our distinctiveunbranded flexible proposition. Leads have increased by 14% over the previous 6months and by 17% over the same time last year. In addition, we have secured 33%more workstation sales over the last 6 months, compared to the period ended 30thJune 2006. Pricing has continued to increase and we have achieved a 5% uplift inthe year to date. Our clients initially contract with us for 8 months on average, with over 70%renewing at least once leading to an average stay of almost 2 years. Our strongcontracted income equates to over 60% of our current 12 month projections. Whentaking account of client renewals, this level of committed income increases toover 85%, demonstrating the stability of our business. Currently we have in excess of 1,500 clients contracted with the average clientusing eight workstations at the point of sale. Our client base is predominatelysmall and medium enterprises (SMEs) that are attracted to the contemporary,bright and non-branded interiors of our properties which are typically based inprime locations. Even though our centres are largely unbranded, we have a powerful corporatebrand reinforced by highly motivated and committed centre teams, who are at theforefront of the business. These client facing employees are trained rigorouslythrough our 'We're the Business' programme to support the needs of our clientsso that they can focus on what they do best - their business. Our mission is togive our clients and employees the freedom to excel; we continue to experiencefeedback from our clients stating they are very satisfied with the service weprovide and our employee engagement statistics remain exceptionally high. We have an ongoing objective in our recruitment and talent development policywhich is to attract and retain the very best employees. This means we have adynamic and dedicated employee base led by our Talent Development Director. Thewell established management team's ongoing pledge to improving the clientexperience is supported by the role of the Client Service Director who isresponsible for the delivery of this strategy. As a result of our scalable business model, we become business incubators formany of our clients. This is supported by the fact that 30% of new workstationsales each month derive from expansion of existing clients. The rest of theportfolio is taken by companies who require outsourced space for specificprojects, temporary relocation or overflow offices. It is noticeable that agrowing number of corporates are planning to use flexible office space on anongoing basis or as part of their property strategy. Given the changing viewtaken by businesses away from long-term leases, serviced offices are anincreasingly attractive property solution. Investment in the general maintenance and upkeep of our business centres remainsimportant in addition to the ongoing development and provision of our IT andTelecoms infrastructure. It is important to our clients that they have access tothe latest technology alongside new products and services and the managementteam places significant emphasis on this. In both of these areas, we feel it isimportant to keep looking to the future, adapting to the changing needs of ourclients and keeping abreast of advances in products and service delivery. Our strategy of focusing on SMEs continues to ensure a low level of risk in ourbusiness. Less than 18% of our available space is taken by clients who occupymore than 15% of any building and no client has more than 2% of our totalportfolio of workstations, in line with our previously highlighted strategy. Inorder to manage our business in these instances, we have phased exitarrangements in the contracts of our larger clients. Across the portfolio, thisstrategy enables us to develop a pipeline of prospective clients in order toimmediately fill space once the first phase of departure occurs. This isimportant as it reduces the business' vulnerability to large move-outs. Equally important is the fact that no industry dominates our client base. Oursector diversification includes IT and Telecoms at 13% of workstations, followedby Real Estate at 9%, Banking and Finance at 8% and Recruitment at 7%. Thisensures that we are not over-exposed to any sector downturn or client move,which lies at the heart of our commitment to build sustainable income andenhanced profit generation. The recent corrections in the financial markets are not expected to affect our2007 full year results. In the 12 weeks since 30th June 2007, MWB BusinessExchange generated unaudited EBITDA of approximately £3.8m before the impact ofnewly opened centres. Given our strong contracted income, current levels ofbusiness activity and new centres which are expected to open by December 2007,the Board of MWB Business Exchange looks forward to 2008 with increasingconfidence. The Company is also reviewing a number of further growth opportunities, bothacquisitive and organic, in line with our stated strategy. This is an excitingtime for the business as we continue to go from strength to strength, exceedingexpectations around our key performance indicators and profitability. We havethe right business model in place to continue growing and to deliver enhanced shareholder value. John SpencerChief ExecutiveMWB Business Exchange Plc25th September 2007 MWB BUSINESS EXCHANGE PLC - KEY FINANCIAL HIGHLIGHTS---------------------------------------------------- The key performance indicators for this business and the trading and balancesheet performance in recent periods, are summarised below:- Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006Operating statistics--------------------Revenue £'000 47,910 39,285 82,306 Occupancy at period end % 88 81 77 Revenue per available workstation ("REVPAW") per month at period end £ 8,600 7,250 6,870 Revenue per occupied workstation ("REVPOW") per month at period end £ 9,800 8,960 8,830 EBITDA £'000 6,231 3,878 9,307 Number of operating centres at period end Number 40 34 39 Number of operating and management agreements at period end Number 15 16 16 ====== ====== ======Financial performance---------------------Pre-tax profit/(loss) £'000 3,481 3,421 8,043 Recognised income and expense £'000 3,481 3,426 8,048 ====== ====== ====== 30th June 30th June 31st December 2007 2006 2006Balance sheet composition-------------------------Property, plant and equipment £'000 35,369 20,711 30,691 Net cash/(debt) £'000 (32) 7,398 2,162 Adjusted equity attributable to shareholders of MWB Group in MWB Business Exchange Plc £'000 64,776 44,369 68,212 Adjusted equity attributable to shareholders of MWB Group in MWB Business Exchange Plc, in pence per MWB Group share Pence 80p 46p 85p ====== ====== ====== LIBERTY PLC OPERATING REVIEW---------------------------- I am pleased to report further progress at Liberty as we continue our strategyof re-positioning the business into a highly focused luxury goods retailer. Over the six months to 30th June 2007, sales have continued to grow, especiallywithin our Liberty of London luxury brand, and we have made great strides inrestructuring the management team that will help us meet our key objective ofmaking Liberty a global brand. The increased success of our Liberty of London label, which saw its total saleswithin the flagship store rise by 23% to £1.2m, is extremely encouraging and isbeginning to define how we believe Liberty will look and feel in the future. Aspart of this process we are examining every aspect of the flagship store so thatall products sold will reflect the luxury goods approach that we are achievingwith the Liberty of London brand. This improving product mix should be anotherdriver to our successful transformation of the business. To help achieve this we have made, and continue to make, significant managementappointments. The first has been the appointment of Geoffroy de la Bourdonnayeas Chief Executive who joined us in July from Christian Lacroix where he wasinstrumental in reviving and developing that established brand. Geoffroy bringsa wealth of brand management and development experience to Liberty. He isalready having a significant impact and is beginning to restructure Liberty'ssenior management to enable the business to deliver its objective of becoming aglobally recognised luxury goods retailer. Earlier this month, we announced the appointment of Sara Edwards as HumanResources and Change Director. Sara is a highly regarded Senior HR Executivewithin the hospitality industry and understands how to refocus a team to deliverservice within a luxury goods environment. This will involve major change acrossthe whole Liberty Group to drive improved service delivery, managementperformance and overall financial results. We have also recently announced theappointment of Guy Hipwell as Director of Internet, Supply Chain and RetailMerchandising. Guy will develop Liberty's e-commerce offer to reflect thegrowing international awareness of the Liberty of London luxury brand,streamlining the supply chain and leading the merchandising function. Guy joinedLiberty from Harrods where he had contributed significantly to the developmentof its merchandising and e-commerce offer. Retailing continues to reflect the polarisation that we have seen over the pastcouple of years. Successful retailers are those who focus on specific areas ofthe market. At Liberty we are aiming firmly at the luxury goods market and thisis attracting those consumers seeking quality and good design in a retaildestination environment. We continue to invest heavily in our luxury brand, Liberty of London, as we lookto capitalise on the global demand for well-designed and high value products.Apart from continuing to expand the label's range of products, we are alsobeginning to introduce Liberty of London to a wider, more internationalaudience. We have shown our Liberty of London menswear range at the Milanfashion week earlier in the year and later this month we are taking our Libertyof London womens' accessories and swimwear range to Paris. As a result the labelwill start being seen in the world's luxury stores enabling us to build a farwider platform of brand recognition and awareness. In the UK we have already taken two key steps in the development of the brand.First, we have created Liberty of London's own dedicated space within theflagship store. With specifically trained and recruited staff, this area,located in the central atrium, is already proving very popular among customers. Secondly, and perhaps more importantly, we have leased a shop in the primeKnightsbridge end of Sloane Street for no premium and at advantageous rentallevel to ourselves. This is planned to open in Spring 2008 and will be astand-alone Liberty of London retail unit enabling us to showcase our productrange in a prime shopping environment. It will also help us to establish abenchmark not only for how Liberty of London retail units will look and operate,but also help us establish the design and feel we believe necessary to bring theflagship store up to a similar level. Our fabrics business is also enjoying a new lease of life. As referred to in myprevious statements, our 50:50 Japanese joint venture is coming to an end andtherefore in the future we will be able to incorporate all of these results intoa new wholly owned subsidiary. The remaining business will continue to bemanaged from the UK, where we are already identifying new markets for our fabricas well as diversifying into new base cloths and special designs. At the sametime we are re-introducing our range of Liberty silks, for which the Company wasonce noted, and we see important growth potential in this area of our business. Revenue from our fabrics division improved by 4% to £6.6m, despite the impact ofa weak Yen against Sterling, and contributed an operating profit of £1.5m forthe period. As the changes we have implemented begin to take effect, weanticipate this division will grow markedly over the medium term, contributingan increasing level of pre-tax profits to the group. Overall total net sales at the flagship store including concessions improved to£16.5m for the six months to 30th June 2007 from £16.2m this time last year.Some of our key drivers over the period included menswear which recorded a 28%increase in sales to almost £2.1m, while accessories' sales rose by almost 7% to£3.5m. However ladieswear endured tougher trading conditions and sales dipped 4%to £3.9m while our Home department delivered sales of £4.2m, down 3% against thecorresponding period ended 30th June 2006. Across the entire Liberty business, revenue for the six months to 30th June 2007increased slightly to £20.8m, against £20.3m for the same period last year,while gross profits were £9.5m against £9.1m last time. Pre-tax losses for thehalf-year were £2.3m compared to a loss of £1.9m a year ago, reflecting anincreased investment in the brand of £1.6m, up from £1.1m in the comparableperiod a year ago. Liberty's balance sheet has been further strengthened by an increase in the RedBook value of our flagship store in Great Marlborough Street. This has risen toa gross property value of £39.2m, which after assumed purchaser's costs of £2.2m,translates into a value for accounts purposes of £37.0m, up from £35.0m at 31stDecember 2006. As a result, Liberty's net assets are now £51.5m against £43.6m ayear ago. We believe Liberty is entering a new era where it is re-capturing the ethos anddesire to provide cutting edge design in a luxury retail environment for whichthe Company was once synonymous. Our objective over the next 12 months is tofirmly establish this framework enabling Liberty, which will be led by theLiberty of London brand, to become a byword for luxury retailing. Thiswill be reflected in not only the products we sell, but also how we present andsell them, together with the service our customers receive, whether in the storeor our on-line shop. In the current market it is hard to be completely certain of the future, but Ipassionately believe we are establishing a great team and an increasinglyrecognised luxury brand with enormous potential. We are intent on achievingachieve our goals and attracting new talent to the business. Contrary to certainpress opinion, I would also like to confirm that we have held no discussions concerning the sale of the business during the period and none are currentlyin progress. We are committed to taking Liberty into the next stage of its development and creating a truly global luxury brand. I am confident that we can continue to build on our established foundations andto move to the next stage in our growth strategy. With that in mind I believethe future for Liberty is exciting. Geoffroy de la BourdonnayeChief ExecutiveLiberty Plc25th September 2007 LIBERTY PLC - KEY FINANCIAL HIGHLIGHTS-------------------------------------- During the six months ended 30th June 2007, Liberty Plc has continued itstransformation into a dynamic retail destination, underpinned by a strong andexpanding retail brand. The historical trading and balance sheet performance ofLiberty Plc is summarised below:- Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006Financial performance---------------------Total revenue £'000 20,758 20,279 44,575 Operating EBITDA before brand £'000 378 (68) 1,091 expenditure Operating loss before brand expenditure £'000 (721) (821) (676) Brand expenditure £'000 (1,554) (1,085) (1,971) Pre-tax loss £'000 (2,275) (1,906) (2,647) Recognised income and expense £'000 114 620 8,859 ===== ===== ===== 30th June 30th June 31st December 2007 2006 2006Balance sheet composition-------------------------Intangible asset - brand £'000 18,200 18,200 18,200 Property, plant and equipment £'000 38,810 30,083 36,587 Net debt £'000 (7,316) (882) (1,191) Adjusted equity attributable to £'000 48,407 40,164 44,887 shareholders of MWB Group in Liberty Plc Adjusted equity attributable to shareholders of MWB Group in Liberty Plc, in pence per MWB Group Plc share Pence 60p 43p 56p ===== ===== ===== FINANCIAL REVIEWfor the six months ended 30th June 2007--------------------------------------- INTRODUCTION------------ The Chairman's Statement and Operational Reviews provide information on theGroup's principal operations and the Board's expectations for the future.This Financial Review covers in greater depth the more significantfeatures of the financial statements for the six months ended 30th June 2007,which include an independent valuation of the Group's properties at that date. OBJECTIVES---------- The strategy of the Company, led by the activities of the Board, is to realisethe Group's assets in cash or cash equivalents over the remainder of the periodof its Business Plan to 31st December 2008. This emanates from the proposals setout in the May 2002 Circular which were approved by shareholders at anextraordinary general meeting held in May 2002. This provides a clear focus forall activities of the Group. At an extraordinary general meeting held in May 2002, Shareholders approvedimplementation of the Cash Distribution Programme. At the time, the Company'sshare price was 92p and the Board set itself the target of returning at least200p per share or £220m in cash or cash equivalent to Shareholders, initially byDecember 2005. This was subsequently extended a further three years to December2008 in order to enable Shareholders to benefit from the significant increase invalue being created in the Company's operating businesses. Throughout this time, the Board has remained highly focused in delivering theCash Distribution Programme in the manner originally envisaged. This hasinvolved property sales totalling more than £600 million by the date of thisreview, all at prices well in excess of recent valuations and original cost. Asa result, the Group has paid down the majority of its debt from the time ofimplementation of the programme, the Group's three core operating businesseshave been significantly enhanced, we have created a strong and vibrant Groupgoing forward and the Company's share price has increased from 99p immediatelyprior to the issue of the May 2002 Circular, to 275p at the date of this report. EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF MWB GROUP PLC---------------------------------------------------- During the six months ended 30th June 2007, the Group produced an increase inequity attributable to shareholders by growth achieved across all areas of theGroup. As a result there was a net increase in equity attributable toshareholders of MWB Group Plc. At the per share level, this resulted in a netincrease in equity attributable to shareholders by 164p from 123p to 287p pershare. The movement in Equity attributable to shareholders of MWB during the period issummarised in the following table:- Six months ended 30th June 2007 Pence £'000 per share Equity attributable to shareholders of MWB Group Plc at 99,322 123p 1st January 2007 Movements during the period:Revaluation surplus on Group property portfolio 135,902 168pLess minority interest in Malmaison Holdings Limited (390) -Retained loss (3,682) (5p)Changes in fair value of derivative financial instruments (644) -Actuarial gain on defined benefit pension schemes 857 1pOther movements 124 - ------- ---Equity attributable to shareholders of MWB Group Plc at 30th June 2007 231,489 287p ======= === ADJUSTED EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF MWB GROUP PLC------------------------------------------------------------- Under Adopted IFRS, the Company's interests in its two listed subsidiaries, MWBBusiness Exchange Plc and Liberty Plc, continue to be consolidated in the Groupfinancial statements inclusive of their freehold and short leasehold propertiesat current valuation or cost. However, these property valuations reflect onlythe values of the properties themselves and the financial statements do notreflect the current market value of the Group's shareholdings in these twolisted subsidiaries. Both subsidiaries are quoted on AIM of the London Stock Exchange and, therefore,a market value for the Group's shareholding in each of the two companies isreadily available. In order that shareholders are aware of the underlying value of the Group, theincrease in Equity attributable to shareholders of MWB Group Plc as a result ofassessing these two investments by reference to their market value at 30th June2007 and 31st December 2006, is set out below. 30th June 2007 31st December 2006 Pence Pence per per £'000 share £'000 share Equity attributable to shareholders of MWB Group Plc per financial statements 231,489 287p 99,322 123p Unrealised surplus of market value of MWB Group's shareholding in MWB Business Exchange Plc(1) 55,405 69p 60,378 75p Unrealised surplus of market value of MWB Group's shareholding in Liberty Plc(2) 14,782 18p 11,431 14p ------- --- ------- --- 301,676 374p 171,131 212pLess Central Incentive Scheme and Bonus Plan amounts that would become payable on realisation at this value (45,347) (56p) (22,049) (27p) ------- --- ------- ---Total Adjusted equity attributable to shareholders of MWB Group Plc 256,329 318p 149,082 185p ======= === ======= === Notes-----(1) The unrealised surplus of market value of MWB Group's 67.9% shareholding inMWB Business Exchange Plc is based on the share price of MWB Business ExchangePlc at 30th June 2007 of 171p (31st December 2006: 179p) per share, and is afterdeducting deferred consideration that would become payable on realisation of theGroup's investment in MWB Business Exchange and divisional bonuses payable onrealisation at this value. (2) The unrealised surplus of market value of MWB Group's 68.3% shareholding inLiberty Plc is based on the share price of Liberty Plc at 30th June 2007 of 320p(31st December 2006: 295p) per share, after deducting divisional bonuses thatwould become payable on realisation at this value. In addition to the assessment above, shareholders should be aware that theAdjusted equity attributable to shareholders of MWB Group Plc of 318p (31stDecember 2006: 185p) per share above does not reflect the market value of theMalmaison and Hotel du Vin business, as this is not a listed subsidiary forwhich a market value can be readily confirmed. The Board is confident that thevalue of the Group's 82.5% interest in the Malmaison and Hotel du Vin businessis significantly higher than the £236m or 293p per share for this businesswithin Adjusted equity attributable to shareholders of MWB Group Plc, thusdemonstrating a further enhancement in underlying equity value of the Groupabove the adjusted figure of 318p per share in the table above. The Chairman hasreferred to this further in his Statement. The Adjusted equity attributable to shareholders of MWB Group Plc is analysed asfollows:- 30th June 2007 31st December 2006 Pence Pence per per £'000 share £'000 share Malmaison and Hotel du Vin 236,197 293p 106,380 132p MWB Business Exchange Plc 64,776 80p 68,212 85p Liberty Plc 48,407 60p 44,887 56p Hotel investments and West India Quay apartments - - 4,173 5p Group debt and incentives payable, lesscash and other assets (93,051) (115p) (74,570) (93p) ------ --- ------ --- Total Adjusted equity attributable to shareholders of MWB Group Plc 256,329 318p 149,082 185p ======= === ======= === NET ASSET VALUE--------------- The net assets of the Group are financed by Equity attributable to shareholdersof MWB Group Plc and minority interests. The sources of finance of the Group at31st December 2006 in the consolidated balance sheet and at previous period endswere as follows:- 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000Equity attributable to shareholders ofMWB Group Plc 231,489 118,488 99,322 Minority interests 90,781 57,988 53,963 ------- ------- -------Net asset value at period end 322,270 176,476 153,285 ======= ======= ======= The analysis of net assets in the consolidated balance sheet across the Group'soperations as revealed by the Consolidated Balance Sheet at 30th June 2007, andat previous period ends, is as follows:- Equity Net assets/ attributable to (liabilities) Net Less shareholders before (Net debt)/ assets/ minority of MWB net debt cash (liabilities) interests Group Plc £'000 £'000 £'000 £'000 £'000At 30th June 2007-----------------Malmaison and Hotel du Vin 526,979 (224,285) 302,694 (66,497) 236,197MWB Business Exchange Plc 13,974 (32) 13,942 (4,571) 9,371Liberty Plc 58,793 (7,316) 51,477 (17,852) 33,625Group debt, less cash and other assets (116) (45,727) (45,843) (1,861) (47,704) ------- ------- ------- ------ ------- 599,630 (277,360) 322,270 (90,781) 231,489 ======= ======= ======= ====== =======Equity attributable to shareholders of MWB Group Plc in pence per share 287p === Equity Net assets/ attributable to (liabilities) Net Less shareholders before (Net debt)/ assets/ minority of MWB net debt cash (liabilities) interests Group Plc £'000 £'000 £'000 £'000 £'000At 31st December 2006---------------------Malmaison and Hotel du Vin 335,956 (199,093) 136,863 (30,483) 106,380Hotel investments (660) 374 (286) (1,909) (2,195)MWB Business Exchange Plc 9,515 2,162 11,677 (3,843) 7,834Liberty Plc 52,423 (1,191) 51,232 (17,776) 33,456West India Quay apartments 2,721 3,647 6,368 - 6,368Group debt, less cash and other assets (2,297) (50,272) (52,569) 48 (52,521) ------- ------- ------- ------ ------- 397,658 (244,373) 153,285 (53,963) 99,322 ======= ======= ======= ====== =======Equity attributable to shareholders of MWB Group Plc in pence per share 123p === Equity Net assets/ attributable to (liabilities) Net Less shareholders before (Net debt)/ assets/ minority of MWB net debt cash (liabilities) interests Group Plc £'000 £'000 £'000 £'000 £'000At 30th June 2006-----------------Malmaison and Hotel du Vin 285,141 (181,187) 103,954 (15,766) 88,188Hotel investments 71,592 (45,197) 26,395 (17,536) 8,859MWB Business Exchange Plc (120) 7,398 7,278 (2,193) 5,085Liberty Plc 44,516 (882) 43,634 (15,359) 28,275West India Quay apartments 28,255 (541) 27,714 (6,996) 20,718Group debt, less cash and other assets (4,820) (27,679) (32,499) (138) (32,637) ------- ------- ------- ------ ------- 424,564 (248,088) 176,476 (57,988) 118,488 ======= ======= ======= ====== =======Equity attributable to shareholders of MWB Group Plc in pence per share 125p === REVIEW OF PROPERTY, PLANT AND EQUIPMENT--------------------------------------- Valuation surplus on property portfolio at 30th June 2007 A valuation of the Group's freehold and long leasehold interests in its propertyat 30th June 2007 was undertaken by DTZ Debenham Tie Leung. This valuation wasperformed on the basis of Market Value. The net surplus over previous book valuebefore minority interests for the six months ended 30th June 2007 totalled£165m, which has been included in these financial statements. In accordance with normal valuation practice, the valuations of the Group'shotel interests include value ascribed for plant, machinery, fixtures andfittings forming part of the service installations of the building. Theytherefore represent a valuation of the total interest of the Group in thoseproperties. The valuations exclude the value of any goodwill that may arise fromthe present occupation of the properties and this is not recorded separately inthe financial statements of the Group. In accordance with normal valuation practice, the valuation of the Group'sretail interests includes value ascribed to plant, machinery and fittingsforming part of the services and installation of the building, but excludesmoveable shop fittings. All property interests owned by MWB Business Exchange Plc are short leaseholdinterests; these interests are not revalued at each period end and are recordedat the lower of cost and net realisable value. Surpluses or deficits arising on valuation of the Group's operational propertiesare transferred to revaluation reserve, while impairment of operationalproperties to below their historical cost is charged directly to the incomestatement. Trading properties and operational properties in the course of construction arerecorded at the lower of cost and net realisable value and are therefore notrevalued upwards in the Group financial statements. The valuation surplus credited to the revaluation reserve for the six monthsended 30th June 2007 was £135.9m and arose as follows:- Less Credited previous Less to Gross book Gross minority revaluation valuation value surplus interests reserve £'000 £'000 £'000 £'000 £'000 Malmaison 314,542 (216,634) 97,908 (17,134) 80,774Hotel du Vin 187,080 (121,492) 65,588 (11,478) 54,110Liberty Plc 37,000 (35,510) 1,490 (472) 1,018 ------- ------- ------- ------ ------- 538,622 (373,636) 164,986 (29,084) 135,902 ======= ======= ======= ====== ======= Portfolio analysis by division------------------------------ At 30th June 2007, the Group held the majority of its direct property interestsas non-current assets. These are disclosed in the consolidated balance sheet at30th June 2007 as follows:- 30th June 31st December 2007 2006 £'000 £'000 Operational properties 503,894 336,150 Operational properties in the course of construction 40,740 27,144 Plant and equipment 55,639 43,558 Trading properties 8,100 - ------- -------Total property interests at end of period 608,373 406,852 ======= ======= The above interests are analysed as follows:- Percentage of 30th June 30th June 31st December 2007 2007 2006 £'000 % £'000HotelsMalmaison 319,754 53 212,064Hotel du Vin 206,123 34 124,894 ------- --- ------- 525,877 87 336,958 MWB Business Exchange Plc 35,369 5 30,691 Liberty PlcLiberty store, offices and other properties 38,810 7 36,587 Other 8,317 1 2,616 ------- --- -------Total property interests at end of period 608,373 100 406,852 ======= === ======= REVIEW OF FUNDING AND LOAN FACILITIES------------------------------------- Net debt-------- The Group's loans, borrowings and cash are included in the consolidated balancesheet at 30th June 2007 as follows:- 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000Composition at period end------------------------- Total loans and overdrafts in note 12 299,106 272,983 260,832 Fair value of derivative financial instruments 46 883 (1,462) Long leasehold obligations 706 712 710 ------- ------- -------Total loans 299,858 274,578 260,080 Less cash net of overdrafts (22,498) (26,490) (15,707) ------- ------- -------Total net debt at period end 277,360 248,088 244,373 ======= ======= ======= Analysis by operating business------------------------------ Malmaison and Hotel du Vin 224,285 181,187 199,093 Hotel investments - net cash - 45,197 (374) MWB Business Exchange Plc - net cash 32 (7,398) (2,162) Liberty Plc 7,316 882 1,191 Central debt 45,727 28,220 46,625 ------- ------- ------- 277,360 248,088 244,373 ======= ======= ======= Movement in net debt during the period-------------------------------------- The movement in total net debt during the six month period ended 30th June 2007arose as follows:- Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000 Total net debt at start of the period 244,373 302,067 302,067 Debt drawn on expansion of Malmaison and Hotel du Vin 19,707 8,074 14,903 Net proceeds received from sales of properties, including Old Bailey, West India Quay, Argyle Street and Park Lane (5,077) (72,250) (158,058) Net debt repaid on West India Quay development - (2,082) (46,896) Buy back of ordinary shares - - 56,382 Net cash outflow/(inflow) from other Group operations during the period 18,357 12,279 75,975 ------- ------- -------Total net debt at period end 277,360 248,088 244,373 ======= ======= =======Average cost of borrowings at period end, inclusive of margin 7.9% 6.4% 6.4% ======= ======= ======= Net debt relating to Equity attributable to shareholders of MWB--------------------------------------------------------------- Certain elements of the Group's net debt have been drawn by subsidiaries thatare not wholly owned by the Group. These comprise the Group's majority interestsin its three operating businesses of MWB Malmaison Holdings Limited, MWBBusiness Exchange Plc and Liberty Plc. The net debt relating to equity attributable to shareholders of MWB Group Plc at30th June 2007 amounted to £235.8m, calculated as follows:- 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000 Total net debt as above 277,360 248,088 244,373Less net debt attributable to minority interests (41,568) (45,080) (33,310) ------- ------- -------Total net debt attributable to equity attributable to shareholders of MWB Group 235,792 203,008 211,063 ======= ======= ======= Gearing------- At 30th June 2007, gearing was 86%, calculated as follows:- 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000 Total net debt 277,360 248,088 244,373Net assets 322,270 176,476 153,285Gearing - total net debt divided by net assets 86% 141% 159% ======= ======= ======= REVIEW OF EARNINGS------------------ Results------- The total recognised income and expense for the six months ended 30th June 2007,analysed between the share attributable to shareholders of MWB Group Plc and theshare attributable to minority interests, is as follows:- Equity Shareholders Total for Minority of MWB the period interest Group PlcSix months ended 30th June 2007 £'000 £'000 £'000 Income statement Loss for the period (4,029) (347) (3,682)Credited to equity through reserves Unrealised gains on property revaluations net of tax 164,986 29,084 135,902 Actuarial gain on defined benefit pension scheme net of tax 1,255 398 857 Effective portion of changes in fair value of derivative financial hedges (658) (14) (644) Net foreign exchange translation differences (118) (78) (40) ------- ------ -------Total recognised income and expense for the period 161,436 29,043 132,393 ======= ====== ======= Equity Shareholders Total for Minority of MWB the period interest Group PlcSix months ended 30th June 2006 £'000 £'000 £'000 Income statement Profit for the period 1,072 (923) 1,995Credited to equity through reserves Unrealised gains on property revaluations net of tax 7,378 1,437 5,941 Deferred tax released on sale of properties 8,462 7,345 1,117 Actuarial gain on defined benefit pension scheme net of tax 1,497 347 1,150 Effective portion of changes in fair value of derivative financial hedges 1,652 290 1,362 Net foreign exchange translation differences 184 157 27 ------ ----- ------Total recognised income and expense for the period 20,245 8,653 11,592 ====== ===== ====== Equity Shareholders Total for Minority of MWB the year interest Group PlcYear ended 31st December 2006 £'000 £'000 £'000 Income statement Profit for the period 9,013 8,031 982Credited to equity through reserves Unrealised gains on property revaluations net of tax 19,949 4,511 15,438 Deferred tax released on sale of properties 8,462 7,345 1,117 Actuarial gain on defined benefit pension scheme net of tax 4,935 1,570 3,365 Effective portion of changes in fair value of derivative financial hedges 3,997 700 3,297 Net foreign exchange translation differences (169) (304) 135 ------ ------ ------Total recognised income and expense for the period 46,187 21,853 24,334 ====== ====== ====== Summary of earnings------------------- The Board's prime measure of return used to monitor the results of the operatingdivisions is the level of earnings before interest, taxation, depreciation andamortisation, or EBITDA. The results before minority interests for the sixmonths ended 30th June 2007, together with comparative information for previousperiods is summarised below:- Profit/ Recognised Group (loss) income and revenue EBITDA EBIT before tax expenseSix months ended 30th June 2007 £'000 £'000 £'000 £'000 £'000 Malmaison and Hotel du Vin Operating income 41,942 10,036 6,873 (2,711) 160,134 Costs incurred on abortive Vector transaction - (4,610) (4,610) (4,610) (4,610) ------- ------ ----- ----- ------- 41,942 5,426 2,263 (7,321) 155,524 ------- ------ ----- ----- -------Liberty Plc Operating income 20,758 378 (570) (721) 1,668 Expenditure on brand - (1,554) (1,554) (1,554) (1,554) ------- ------ ----- ----- ------- 20,758 (1,176) (2,124) (2,275) 114 ------- ------ ----- ----- -------MWB Business Exchange Plc 47,910 6,231 3,526 3,481 3,481 ------- ------ ----- ----- -------Others - 6,547 6,547 6,551 6,551Group debt less cash and other assets - - - (1,880) (1,880) ------- ------ ----- ----- ------- - 6,547 6,547 4,671 4,671Head office administration - (2,253) (2,354) (2,354) (2,354) ------- ------ ----- ----- ------- - 4,294 4,193 2,317 2,317 ------- ------ ----- ----- ------- 110,610 14,775 7,858 (3,798) 161,436 ======= ====== ===== ===== =======Notes-----1. The components of recognised income and expense are shown in the Groupprimary statement of the financial statements. 2. EBITDA = Earnings before interest, taxation, depreciation and amortisation. 3. EBIT = Earnings before interest and taxation. Profit/ Recognised Group (loss) income and revenue EBITDA EBIT before tax expenseYear ended 31st December 2006 £'000 £'000 £'000 £'000 £'000 Malmaison and Hotel du Vin Operating income 79,101 23,389 17,598 5,101 25,953 ------- ------ ------ ------ ------Hotel investments Operating income 16,563 5,825 3,653 (11) (1,495) Sale of Park Lane hotel - 3,729 3,729 3,729 5,318 Sale of West India Quay hotel - 5,825 5,825 5,825 10,177 ------- ------ ------ ------ ------ 16,563 15,379 13,207 9,543 14,000 ------- ------ ------ ------ ------Liberty Plc Operating income 44,575 1,091 (451) (676) 10,830 Expenditure on brand - (1,971) (1,971) (1,971) (1,971) ------- ------ ------ ------ ------ 44,575 (880) (2,422) (2,647) 8,859 ------- ------ ------ ------ ------MWB Business Exchange Plc 82,306 9,307 7,827 8,043 8,048 ------- ------ ------ ------ ------West India Quay - apartment sales 9,364 3,320 3,320 2,970 2,909Others 3,305 (1,680) (1,836) (1,843) 103Group debt less cash and other assets - - - (3,213) (3,213) ------- ------ ------ ------ ------ 12,669 1,640 1,484 (2,086) (201)Head office administration - (9,148) (9,288) (9,288) (10,472) ------- ------ ------ ------ ------ 12,669 (7,508) (7,804) (11,374) (10,673) ------- ------ ------ ------ ------ 235,214 39,687 28,406 8,666 46,187 ======= ====== ====== ====== ====== Profit/ Recognised Group (loss) income and revenue EBITDA EBIT before tax expenseSix months ended 30th June 2006 £'000 £'000 £'000 £'000 £'000 Malmaison and Hotel du Vin Operating income 36,557 9,713 6,900 585 12,609 ------- ------ ------ ----- ------Hotel investments Operating income 14,086 3,542 1,535 (2,130) 2,941 Sale of Park Lane hotel - 3,729 3,729 3,729 3,729 ------- ------ ------ ----- ------ 14,086 7,271 5,264 1,599 6,670 Liberty Plc Operating income 20,279 (68) (818) (821) 1,705 Expenditure on brand - (1,085) (1,085) (1,085) (1,085) ------- ------ ------ ----- ------ 20,279 (1,153) (1,903) (1,906) 620 MWB Business Exchange Plc 39,285 3,878 3,307 3,421 3,426 ------- ------ ------ ----- ------West India Quay - apartment sales 5,093 4,012 4,012 3,858 3,181Others 1,579 241 130 117 117Group debt less cash and other assets - - - (2,285) (2,350) ------- ------ ------ ----- ------ 6,672 4,253 4,142 1,690 948Head office administration - (4,005) (4,077) (4,077) (4,028) ------- ------ ------ ----- ------ 6,672 248 65 (2,387) (3,080) ------- ------ ------ ----- ------ 116,879 19,957 13,633 1,312 20,245 ======= ====== ====== ===== ======Taxation-------- The net tax charge for the six months ended 30th June 2007 primarily reflectsthe MWB Group's share of tax incurred on profits in the Group's minorityinterest in Japan. This arose as follows:- Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000Net tax (charge)/credit per income statement (231) (240) 347 49% minority interest in tax charge of Japanese subsidiary of Liberty Plc, resulting in a credit to MWB Shareholders 98 117 214 --- --- --- (133) (123) 56132% minority interest in tax charge of Liberty Plc resulting in a credit to MWB Shareholders 31 39 71 --- --- ---Net tax (charge)/credit received by Equity shareholders of MWB Group Plc (102) (84) 632 === === === Earnings per share and recognised income and expense per share-------------------------------------------------------------- The earnings per share and recognised income and expense per share figures havebeen calculated as follows:- Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000Earnings/(loss) per Income Statement attributable to shareholders of MWB Group Plc £'000 (3,682) 1,995 982 Weighted average number of shares in issue during period '000 80,522 103,271 61,810 Earnings/(loss) per share based on Income Statement Pence (4.6p) 1.9p 1.6p ====== ======= ======Recognised income and expense attributable to shareholders of MWB Group Plc £'000 132,393 11,592 24,334 Weighted average number of shares in issue during period '000 80,522 103,271 61,810 Recognised income per share based on recognised income and expense Pence 164.4p 11.2p 39.4p ====== ======= ====== Dividend-------- Shareholders approved implementation of the Cash Distribution Programme andassociated cessation of annual revenue distributions at a meeting ofshareholders held in May 2002. The Board is continuing to implement the CashDistribution Programme and to direct disposal proceeds to the repayment of netdebt and to the buy-back of shares by the Company, thus returning cash toshareholders. The Directors envisage distributing further funds to shareholders by means ofbuy-backs of ordinary shares, tender offers to shareholders, cash distributions,demergers, distributions of assets and similar value distribution programmes inthe years ahead. Cash flow--------- The consolidated cash flow statement shows the funds generated by theGroup, those raised from external sources, the investments made and the effectthereof on the Group's cash position. This can be summarised as follows:- Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000 Net cash inflow/(outflow) from operating activities (7,563) (3,210) 3,834Net cash inflow/(outflow) from investing activities (25,858) 88,958 132,341Net cash received/(used) in financing activities 40,212 (100,819) (162,029) ------ ------- -------Net increase/(decrease) decrease in cash and cash equivalents 6,791 (15,071) (25,854) Opening cash and cash equivalents 15,707 41,561 41,561 ------ ------- -------Closing cash and cash equivalents 22,498 26,490 15,707 ====== ======= ======= Conclusion---------- The six months ended 30th June 2007 have been another highly successful periodfor the Group. Adjusted equity attributable to shareholders at £256m or 318p pershare, represents a 11% surplus over the consolidated values in our Groupbalance sheet. In addition to this, the Board is confident that the value of theGroup's 82.5% equity interest in the Malmaison and Hotel du Vin business issignificantly higher than the £236m at which this is included in the financialstatements. The share price at the date of approval of these financial statements is 275p,representing an increase of 14% since 1st January 2007. This is after thesignificant increase of 127% in the share price as revealed in the latestaudited financial statements of the Group for the eighteen months ended 31stDecember 2006. The asset realisation process is well advanced and the Boardplans this to be substantially completed by the end of December 2008. Andrew BlurtonGroup Finance Director25th September 2007 CONSOLIDATED INCOME STATEMENTfor the six months ended 30th June 2007--------------------------------------- Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 Notes £'000 £'000 £'000--------------------------------------------------------------------------------Revenue 110,610 116,879 235,214 Cost of sales (98,081) (99,728) (200,270)--------------------------------------------------------------------------------Gross profit 12,529 17,151 34,944 Administrative expenses (6,773) (7,233) (15,424)--------------------------------------------------------------------------------Operating profit 5,756 9,918 19,520 Profit/(loss) on disposal of property, plant and equipment 6,712 - (668)Profit/(loss) on disposal of subsidiary companies 3 (4,610) 3,715 9,554Finance income 519 799 2,240Finance expense 5 ( 12,175) (13,120) (21,980)--------------------------------------------------------------------------------Profit/(loss) before taxation (3,798) 1,312 8,666 Taxation 6 (231) (240) 347--------------------------------------------------------------------------------Profit/(loss) for the period (4,029) 1,072 9,013================================================================================ Attributable to:Equity shareholders of the Company (3,682) 1,995 982Minority interests 7 (347) (923) 8,031--------------------------------------------------------------------------------Profit/(loss) for the period (4,029) 1,072 9,013================================================================================ Earnings/(loss) per share (basic and diluted) 8 (4.6p) 1.9p 1.6p================================================================================ All results relate to continuing operations. The notes form part of thesefinancial statements. CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSEfor the six months ended 30th June 2007------------------------------------------------------- Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000--------------------------------------------------------------------------------Unrealised gains on property revaluations net of tax 164,986 7,378 19,949 Deferred tax released on sale of properties - 8,462 8,462 Actuarial gain on defined benefit pension scheme net of tax 1,255 1,497 4,935 Effective portion of changes in fair value of derivative financial hedges (658) 1,652 3,997 Net foreign exchange translation differences (118) 184 (169)--------------------------------------------------------------------------------Income and expense recognised directly to equity 165,465 19,173 37,174 (Loss)/profit for the period (4,029) 1,072 9,013--------------------------------------------------------------------------------Total recognised income and expense for the period 161,436 20,245 46,187================================================================================ Attributable to:Equity shareholders of the Company 132,393 11,592 24,334Minority interests 29,043 8,653 21,853--------------------------------------------------------------------------------Total recognised income and expense for the period 161,436 20,245 46,187================================================================================ Total recognised income and expense attributable to shareholders of MWB Group in pence per share (note 8) 164.4p 11.2p 39.4p================================================================================ CONSOLIDATED BALANCE SHEETat 30th June 2007-------------------------- 30th June 30th June 31st December 2007 2006 2006 Notes £'000 £'000 £'000--------------------------------------------------------------------------------Non-current assetsIntangible asset 18,200 18,200 18,200Operational properties 9 503,894 304,496 336,150Operational properties in the course of construction 9 40,740 - 27,144Plant and equipment 9 55,639 35,705 43,558Derivative financial instruments - - 1,462-------------------------------------------------------------------------------- 618,473 358,401 426,514--------------------------------------------------------------------------------Current assetsTrading properties 8,100 2,221 -Inventories 8,804 8,704 9,126Trade and other receivables 43,609 45,161 41,751Cash and cash equivalents 22,530 26,490 16,898-------------------------------------------------------------------------------- 83,043 82,576 67,775--------------------------------------------------------------------------------Asset classified as held for sale - 93,805 ---------------------------------------------------------------------------------Total assets 701,516 534,782 494,289--------------------------------------------------------------------------------Current liabilitiesTrade and other payables 10 (68,781) (62,995) (64,566)Tax payable (223) (1,762) (783)Overdrafts (32) - (1,191)Loans and borrowings 11 (42,718) (55,318) (23,239)-------------------------------------------------------------------------------- (111,754) (120,075) (89,779)--------------------------------------------------------------------------------Non-current liabilitiesLoans and borrowings 12 (257,094) (218,377) (238,303)Derivative financial instruments (46) (883) -Employee benefits 4 (97) (4,938) (1,548)Other provisions 14 - (6,107) (3,400)Other payables and accruals 15 (10,255) (7,926) (7,974)-------------------------------------------------------------------------------- (267,492) (238,231) (251,225)--------------------------------------------------------------------------------Total liabilities (379,246) (358,306) (341,004)--------------------------------------------------------------------------------Net assets 322,270 176,476 153,285================================================================================ EquityCalled up share capital 40,261 47,446 40,261Share premium account 79,563 79,563 79,563Capital redemption reserve 30,663 23,478 30,663Revaluation reserve 16 202,495 88,115 66,715Hedging reserve 16 (31) (883) 1,205Translation reserve 16 (8) 279 37Merger reserve 9,403 9,403 9,403Other reserves 1,783 1,783 1,783Retained earnings 16 (132,640) (130,696) (130,308)--------------------------------------------------------------------------------Equity attributable to shareholders of the Company 17 231,489 118,488 99,322Minority interests 18 90,781 57,988 53,963--------------------------------------------------------------------------------Total equity 322,270 176,476 153,285================================================================================ Equity attributable to shareholders of the Company in pence per share 19 287p 125p 123p================================================================================ The notes form part of these financial statements. CONSOLIDATED CASH FLOW STATEMENTfor the six months ended 30th June 2007--------------------------------------- Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000--------------------------------------------------------------------------------(Loss)/profit for the period (4,029) 1,072 9,013 Adjustments for non-cash itemsTaxation 231 240 (347)Finance cost 12,175 13,120 21,980Finance income (519) (799) (2,240)(Profit)/loss on disposal of property, plant and equipment (6,712) - 668Loss/(profit) on disposal of subsidiary companies 4,610 (3,715) (9,554)Depreciation and amortisation 6,917 6,324 11,281Currency translation differences (118) (192) (462)--------------------------------------------------------------------------------Cash flows from operations beforechanges in working capital 12,555 16,050 30,339Change in trading properties (8,100) 1,528 3,750Change in inventories 322 (46) (552)Change in trade and other receivables (1,636) (3,618) (12,992)Change in trade and other payables 8,367 (1,936) 12,085Change in provisions and employee benefits (4,851) (1,650) (4,812)--------------------------------------------------------------------------------Cash generated from operations 6,657 10,328 27,818Interest paid (14,091) (13,520) (23,505)Tax paid (129) (18) (479)--------------------------------------------------------------------------------Net cash from operating activities (7,563) (3,210) 3,834--------------------------------------------------------------------------------Cash flows from investing activitiesInterest received 520 806 2,229Proceeds from sale of property, plantand equipment 8,776 105,000 -Cash receipts from sale of subsidiarycompanies, net of cash sold - - 208,664Purchase of property, plant and equipment (35,154) (16,848) (78,552)--------------------------------------------------------------------------------Net cash from investing activities (25,858) 88,958 132,341--------------------------------------------------------------------------------Cash flows from financing activitiesPurchase of own shares - (26,156) (56,555)Issue of shares - 173 173Borrowings drawn 39,830 20,585 69,706Borrowings repaid (1,560) (87,261) (148,181)Receipts from/(payments) to minority interests 7,465 (6,732) (25,462)Decrease in hire purchase and leasing contracts (5,523) (1,428) (1,710)--------------------------------------------------------------------------------Net cash used in financing activities 40,212 (100,819) (162,029)--------------------------------------------------------------------------------Net increase/(decrease) in cash and cash equivalents 6,791 (15,071) (25,854)Opening cash and cash equivalents 15,707 41,561 41,561--------------------------------------------------------------------------------Closing cash and cash equivalents 22,498 26,490 15,707================================================================================ NOTES TO THE FINANCIAL STATEMENTS--------------------------------- 1. ACCOUNTING POLICIES---------------------- Basis of preparation and accounting policies-------------------------------------------- The interim results of the Group for the six months ended 30th June 2007incorporate the results of the Company and its subsidiary undertakings for theperiod then ended. The results have been prepared on the basis of the accountingpolicies adopted in the financial statements of the Group for the eighteenmonths ended 31st December 2006, consistently applied in all material respects. 2. EARNINGS BEFORE INTEREST, TAXATION, DEPRECIATION AND AMORTISATION ("EBITDA")------------------------------------------------------------------------------- Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000--------------------------------------------------------------------------------The EBITDA of the Group is calculated as follows:- Profit before finance income, finance expense and taxation 7,858 13,633 28,406Add back depreciation and amortisation for the period 6,917 6,324 11,281 ------ ------ ------Total EBITDA for the period 14,775 19,957 39,687 ====== ====== ====== 3. (LOSS)/PROFIT ON DISPOSAL OF SUBSIDIARY COMPANIES---------------------------------------------------- The (loss)/profit on disposal of subsidiary companies arose as follows:- Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000--------------------------------------------------------------------------------Profit on disposal of subsidiary owning the Group's Park Lane hotel, London - 3,715 3,729Profit on disposal of subsidiary owning the Group's West India Quay hotel - - 5,825Costs of abortive Vector Hospitality transaction (4,610) - - ----- ----- ----- (4,610) 3,715 9,554 ===== ===== ===== On 4th May 2007, the Board of the Company sent a circular to Shareholderssetting out details of a proposed sale to Vector Hospitality Plc of a portfolioof 24 long leasehold properties comprising the majority of the Malmaison andHotel du Vin properties owned by the Group at that date, for a minimumconsideration of £495.1m. That circular also included notice of an extraordinarygeneral meeting of the Company at which a resolution relating to the proposedsale to Vector Hospitality was approved by Shareholders. On 7th June2007, the Group was informed by Vector Hospitality Plc that the fundraisingproposed to be undertaken by it to fund this proposed acquisition would not takeplace and that in accordance with the share purchase agreement with the Group,Vector Hospitality would not be able to complete the acquisition of these longleasehold interests. The proposed sale therefore terminated on 30th June 2007and the costs in relation thereto have been written off. On 31st May 2006 the Company completed the disposal of the entire issued sharecapital of its subsidiary MWB Park Lane Hotel Limited and its subsidiary MWBPark Lane Hotel No. 2 Limited (collectively "PLH"). PLH owned the freeholdinterest in a Marriott operated hotel at 140 Park Lane, London W1 and was owned70% by the Company and 30% by minority interests. On 21st July 2006, the Company disposed of the entire issued share capital ofits subsidiary MWB West India Quay (Eastern) Limited and its partnershipinterests (collectively "West India Quay Eastern"). West India Quay Easternowned the freehold interest in a Marriott operated hotel at West India Quay,London E14. West India Quay Eastern was owned 66.67% by the Company and 33.33%by minority interests. 4. PENSIONS----------- Overall summary--------------- The Company and its subsidiaries operate defined contribution pension schemes inmost areas of the Group. It also has two defined benefit pension schemes in its68.3% owned subsidiary Liberty Plc. One of these is for certain UK employees ofits subsidiary Liberty Retail Plc, which has been closed to new entrants sinceFebruary 2001 and was closed to future accrual in January 2007. The pensionobligations of this scheme are guaranteed by the Company's 68.3% ownedsubsidiary Liberty Plc but not by MWB Group Plc. The other defined benefitpension scheme is a much smaller scheme for employees of the Japanese subsidiaryof Liberty. The assets of all pension schemes of the Group are held in separatetrust administered funds. The total pension charge of the Group for the sixmonths ended 30th June 2007 was £0.4m (six months ended 30th June 2006: £0.5m;year ended 31st December 2006: £0.4m). Defined benefit schemes of Liberty Retail Plc--------------------------------------------- For the UK defined benefit scheme, which is closed to new entrants, the currentservice cost is expected to increase as members of the scheme approachretirement. As the scheme is closed to future benefit accrual, there is noexpected contribution rate for future years calculated by reference toContribution Earnings of Participating Earnings. The expected contribution forfuture years for the UK Scheme is £360,000 per annum, payable by Liberty Plc. Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000--------------------------------------------------------------------------------SummaryCumulative net liability of UK Scheme (124) (4,993) (1,593)Cumulative net assets of Japanese Scheme 27 55 45 --- ----- -----Total present value of employee benefits (97) (4,938) (1,548) === ===== ===== 5. FINANCE EXPENSE------------------ Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000--------------------------------------------------------------------------------The finance expense arose as follows:- Unsecured Loan Stock 2009/2012 1,462 1,462 2,924Bank loans and overdrafts 12,164 10,905 19,035Finance leases and hire purchase contracts - 31 37Amortisation of debt issue costs 478 1,125 1,557Defined benefit pension scheme net financing income (13) (8) (36) ------ ------ ------ 14,091 13,515 23,517Less finance costs capitalised in respect of development expenditure before tax relief (1,916) (395) (1,537) ------ ------ ------Total finance expense cost for the period 12,175 13,120 21,980 ====== ====== ====== 6. TAXATION----------- Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000--------------------------------------------------------------------------------The current taxation for the period arose as follows:- UK Corporation tax Tax on result for the period (39) - - Adjustment in respect of prior periods following agreement of tax liabilities - (1) 784 Foreign tax Tax on profit for the period (192) (239) (386) Adjustment in respect of prior periods - - (51) --- --- --- Taxation (charge)/credit (231) (240) 347 === === === The taxation has been reduced from the amount that would arise from applying theprevailing corporation tax rate to the profit/(loss) before taxation in theconsolidated income statement, as follows:- Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000--------------------------------------------------------------------------------UK corporation tax credit/(charge) at 30% for each period on the (loss)/ profit before taxation in consolidated income statement 1,139 (394) (2,600) Excess of capital allowances claimed over depreciation charged 780 1,091 3,442 Expenditure permanently disallowed for taxation purposes and unrelieved tax losses (4,943) (232) (6,179) Difference between taxation on chargeable gains on disposals of properties and accounting profits on such disposals 1,523 (6,383) (4,146) Taxation on overseas earnings at higher rate than UK corporation tax (20) (56) (61) Profits not taxable and capitalised expenditure deductible for taxation purposes 36 489 (1,066) Tax losses brought forward from earlier periods utilised in current period 1,254 5,246 10,224 ----- ----- ------Total corporation tax and similar taxes charge for the period (231) (239) (386) Adjustment in respect of prior periods following agreement of tax liabilities - (1) 733 ----- ----- ------Taxation (charge)/credit (231) (240) 347 ===== ===== ====== After deducting all deferred tax liabilities, the Group had unrelieved capitalexpenditure and interest payments from current and prior periods ofapproximately £47 million at 30th June 2007. At the same date, it had nettrading losses carried forwards in certain parts of the Group of approximately£60 million. 7. MINORITY INTERESTS--------------------- Minority interests in the (loss)/profit on ordinary activities after taxationfor the period arose in the following divisions of the Group:- Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000--------------------------------------------------------------------------------Malmaison and Hotel du Vin 840 230 1,442MWB Business Exchange Plc (1,115) 828 2,459Liberty Plc 622 (543) (706)Central - West India Quay hotel - (272) 2,191Central - 140 Park Lane Limited - (2,627) 290Other central - 1,461 2,355 ----- ----- ----- (347) (923) 8,031 ===== ===== ===== 8. EARNINGS/(LOSS) PER SHARE AND RECOGNISED INCOME AND EXPENSE PER SHARE------------------------------------------------------------------------ Earnings/(Loss) per share------------------------- The earnings/(loss) per share figures are calculated by dividing the profit/(loss) attributable to equity shareholders of the Company for the period, by theweighted average number of shares in issue during the period, as follows:- Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000--------------------------------------------------------------------------------(Loss)/profit for the period attributable to equity shareholders of the Company £'000 (3,682) 1,995 982 ====== ===== ====== Weighted average number of ordinary shares in issue during the period '000 80,522 103,271 61,810 ====== ======= ====== (Loss)/earnings per share (basic and diluted) Pence (4.6p) 1.9p 1.6p ====== ======= ====== Recognised income and expense per share--------------------------------------- The figures for recognised income and expense attributable to shareholders ofthe Company in pence per share are calculated by dividing the recognised incomeand expense attributable to equity shareholders of the Company for the period,by the weighted average number of shares in issue during the period, as follows:- Six months Six months Year ended ended ended 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000--------------------------------------------------------------------------------Recognised income and expense for the period attributable to equity shareholders of the Company £'000 132,393 11,592 24,334 ======= ======= ======Weighted average number of ordinary shares in issue during the period '000 80,522 103,271 61,810 ======= ======= ======Recognised income and expense attributable to equity Shareholders of the Company, in pence per share Pence 164.4p 11.2p 39.4p ======= ======= ====== 9. PROPERTY, PLANT AND EQUIPMENT-------------------------------- -------------Operational properties--------------- Plant, In the Operating machinery, Long course of leasehold fixtures & Freehold leasehold construction improvements equipment Total £'000 £'000 £'000 £'000 £'000 £'000-----------------------------------------------------------------------------------------------------------------------Cost or valuation At 1st January 2007 223,242 88,210 27,144 25,985 81,939 446,520Additions 1,144 4,082 25,346 4,504 9,950 45,026Reclassification 9,164 (5,360) (9,280) (929) 6,405 -Disposals - - (2,470) - (89) (2,559)Transfer to trading properties - (8,100) - - - (8,100)Revaluation 113,872 50,202 - - - 164,074 ------- ------- ------ ------ ------ -------At 30th June 2007 347,422 129,034 40,740 29,560 98,205 644,961 ------- ------- ------ ------ ------ -------Depreciation At 1st January 2007 - - - (1,287) (38,381) (39,668)Charge for the period (724) (188) - (835) (4,198) (5,945)Disposals - - - - 13 13Revaluation 724 188 - - - 912 ------- ------- ------ ------ ------ -------At 30th June 2007 - - - (2,122) (42,566) (44,688) ------- ------- ------ ------ ------ ------- Net book valueat 30th June 2007 347,422 129,034 40,740 27,438 55,639 600,273 ======= ======= ====== ====== ====== =======Analysis of valuation surplus for the periodSurplus credited to revaluation reserve (note 16) 94,318 41,584 - - - 135,902Surplus credited to minority interests through revaluation reserve 20,278 8,806 - - - 29,084 ------- ------- ------ ------ ------ -------Revaluation surplus reflected in property, plant and equipment 114,596 50,390 - - - 164,986 ======= ======= ====== ====== ====== ======= Investment ------properties------ -------Operational properties------- Plant, machinery, Long Long Short fixtures & Freehold leasehold Freehold leasehold leasehold equipment Total £'000 £'000 £'000 £'000 £'000 £'000 £'000-----------------------------------------------------------------------------------------------------------------------Cost or valuation At 1st January 2006 2,639 6,621 365,178 62,821 18,360 87,019 542,638Additions 8,164 4,641 1,700 10 2,515 5,978 23,008Reclassification (10,803) (11,262) 10,803 10,762 500 - -Disposals - - (94,501) 483 (637) (3,782) (98,437)Transfer to asset classified as held for sale - - (79,055) - - (18,404) (97,459)Revaluation - - (496) 6,932 - - 6,436 ------ ------ ------- ------ ------ ------ -------At 30th June 2006 - - 203,629 81,008 20,738 70,811 376,186 ------ ------ ------- ------ ------ ------ -------Depreciation At 1st January 2006 - - - - (407) (28,589) (28,996)Charge for the period - - (1,711) (158) (472) (3,927) (6,268)Disposals - - 256 (23) - (5,548) (5,315)Transfer to asset classified as held for sale - - 696 - - 2,958 3,654 Revaluation - - 759 181 - - 940 ------ ------ ------- ------ ------ ------ -------At 30th June 2006 - - - - (879) (35,106) (35,985) ------ ------ ------- ------ ------ ------ -------Net book valueat 30th June 2006 - - 203,629 81,008 19,859 35,705 340,201 ====== ====== ======= ====== ====== ====== ======= -------------Operational properties--------------- Freehold and long Plant, leasehold In the Operating machinery, investment Long course of leasehold fixtures & properties Freehold leasehold construction improvements equipment Total £'000 £'000 £'000 £'000 £'000 £'000 £'000-----------------------------------------------------------------------------------------------------------------------Cost or valuation At 1st July 2005 4,540 388,915 60,597 - 16,347 93,646 564,045Additions - 16,440 17,283 27,144 11,911 19,931 92,709Reclassification (4,540) 2,500 1,753 - 287 - -Disposals - (210,230) - - (2,560) (31,638) (244,428)Reversal of prior period - 369 - - - - 369 impairmentsRevaluation - 25,248 8,577 - - - 33,825 ----- ------- ------ ------ ------ ------ -------At 31st December 2006 - 223,242 88,210 27,144 25,985 81,939 446,520 ----- ------- ------ ------ ------ ------ -------Depreciation At 1st July 2005 - - - - - (27,341) (27,341)Charge for the period - (4,500) (601) - (1,427) (11,467) (17,995)Disposals - 1,299 - - 140 427 1,866Revaluation - 3,201 601 - - - 3,802 ----- ------- ------ ------ ------ ------ -------At 31st December 2006 - - - - (1,287) (38,381) (39,668) ----- ------- ------ ------ ------ ------ -------Net book value at 31st December 2006 - 223,242 88,210 27,144 24,698 43,558 406,852 ===== ======= ====== ====== ====== ====== ======= Valuation--------- The Group's property, plant and equipment is all located in the United Kingdom.The Group's Operational properties were valued at 30th June 2007 by qualifiedprofessional valuers working for the company of DTZ Debenham Tie Leung,Chartered Surveyors, ("DTZ"), acting in the capacity of External Valuers. Allsuch valuers are Chartered Surveyors, being members of the Royal Institution ofChartered Surveyors ("RICS"). All valuations were carried out in accordance with the RICS Appraisal andValuation Standards 5th Edition ("the Manual") and the properties were valued onthe basis of Market Value of the Properties. Market Value is defined in theManual as the estimated amount for which a property should exchange on the dateof valuation between a willing buyer and a willing seller in an arm's lengthtransaction after proper marketing, where the parties had each actedknowledgeably, prudently and without compulsion. The valuation of the hotels is based on estimates of annual maintainableearnings before interest, tax, depreciation and amortisation ("EBITDA") for eachproperty over a 10 year cash flow period. These estimates are based on thehistoric, current and budgeted trading information provided by the Group to DTZ.DTZ apply a market discount rate to the cashflow forecast of the hotels toassess the net present value of each property asset. This is in line with themethod used by the market for the valuation of this type of property. In valuing the Group's hotels, DTZ have had regard to the valuation of theproperties as fully equipped operational entities, and to their tradingpotential. The valuation therefore includes the land and buildings; the tradefixtures, fittings, furniture, furnishings and equipment; and the market'sperception of the trading potential excluding personal goodwill; together withan assumed ability to renew existing licences, consents, certificates andpermits. The value excludes consumables and stock in trade. The valuation excludes any goodwill associated with the management by theCompany or its subsidiaries but recognises that the hotel property assets wouldprobably be sold as trading entities. The valuation also represents individualproperty values and does not reflect any premium value which may be attributableto an acquisition of the properties as a portfolio. Properties valued by DTZ at 30th June 2007 carried in the balance sheet atvaluation included in property, plant and equipment totalled £538.6m. Thecarrying value of properties on the balance sheet excludes those revaluationsurpluses attributable to the land element of long leaseholds and developmentswhich are held at cost. Other minor properties, the short leasehold propertiesof MWB Business Exchange Plc, and plant and equipment, are carried at the lowerof cost and realisable value in the table above. These assets had a net bookvalue of £61.7m at 30th June 2007. The historic cost of the Group's properties at 30th June 2007 includescapitalised interest of £7.0m (30th June 2006: £4.0m; 31st December 2006:£5.1m). 10. TRADE AND OTHER PAYABLES---------------------------- 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000--------------------------------------------------------------------------------Trade payables 14,623 13,052 13,036Amounts due to related parties 3 49 -Other payables 14,084 19,058 19,778Accruals 30,228 24,781 24,401PAYE, NIC and VAT 5,108 4,413 4,203Deferred income 4,735 1,642 3,148 ------ ------ ------ 68,781 62,995 64,566 ====== ====== ====== 11. CURRENT LIABILITIES - LOANS AND BORROWINGS---------------------------------------------- 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000--------------------------------------------------------------------------------Secured bank loans 41,098 55,034 21,619Other loans 1,620 - 1,620 ------ ------ ------ 42,718 55,034 23,239Current portion of finance lease liabilities - 284 - ------ ------ ------Total other interest bearing loans and borrowings 42,718 55,318 23,239 ====== ====== ====== 12. NON-CURRENT LIABILITIES - LOANS AND BORROWINGS-------------------------------------------------- 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000--------------------------------------------------------------------------------Non-current liability loans, and borrowings net of issue costs: 9.75% Unsecured Loan Stock 2009/2012 29,710 29,796 29,602Bank loans (secured) 225,063 184,634 205,566Other loan borrowings 1,615 3,235 2,425 ------- ------- ------- 256,388 217,665 237,593Long leasehold obligations 706 712 710 ------- ------- -------Total non-current liabilities -loans and borrowings 257,094 218,377 238,303 ======= ======= ======= Summary of loans---------------- 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000--------------------------------------------------------------------------------Repayable within one year:Current portion of bank loans 41,098 53,414 21,619Current portion of other loan borrowings 1,620 1,904 1,620 ------- ------- ------- 42,718 55,318 23,239 ------- ------- -------Repayable:In more than one year but not more than two years 256,388 6,210 7,620In more than two years but not more than five years - 53,833 229,973In more than five years - 157,622 - ------- ------- ------- 256,388 217,665 237,593 ------- ------- -------Total loans and borrowings 299,106 272,983 260,832 ======= ======= ======= 13. DEFERRED TAXATION--------------------- The deferred taxation liabilities/(assets) at 30th June 2007 and at the previousperiod ends arose as follows:- 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000--------------------------------------------------------------------------------Provided - deferred tax liabilities Potential tax payable on property valuation surpluses at beginning of period - - 330 Movement in period attributable to increase in value/sale of properties - - (330) ------ ------ ------Deferred tax liability provided at period end - - - ====== ====== ======Unprovided - deferred tax (assets) Short term temporary differences 525 1,716 525 Accelerated capital allowances (9,684) (2,909) (2,394) Trading tax losses (18,370) (16,100) (22,289) Unutilised interest cost net of potential tax payable on property valuation surpluses less capital losses available (5,079) (145) (4,152) ------ ------ ------Deferred tax asset unprovided at period end (32,608) (17,438) (28,310) ====== ====== ====== At 30th June 2007 and after deducting all deferred tax liabilities, the Grouphad unrelieved capital expenditure and interest payments from current and priorperiods of approximately £47m. At the same date, it had net trading lossescarried forward in certain parts of the Group, which can only be used in thoseparts of the Group, of approximately £60 million. These gross tax assetstotalling £107m are reflected at the prevailing tax rate of 30% in the deferredtax asset of £32.6m referred to above. 14. OTHER PROVISIONS-------------------- The movements on provisions during the six months ended 30th June 2007 were asfollows:- Six months ended 30th June 2007 Six months Year ended ended European 30th June 31st December closure Other 2006 2006 provision provisions Total Total Total £'000 £'000 £'000 £'000 £'000--------------------------------------------------------------------------------------------- At start of period 2,391 1,009 3,400 5,199 5,191 Increase/(decrease) in European closure provision (1,287) - (1,287) (350) 2,500 Payments made (1,104) - (1,104) - (5,009) Utilisation of other provisions - (1,009) (1,009) 1,258 718 ----- ----- ----- ----- -----At end of period - - - 6,107 3,400 ===== ===== ===== ===== ===== In July 2003 the Group closed its majority owned subsidiary MWB BusinessExchange Europe Limited ("Business Exchange Europe") and its nine servicedoffice centres in Holland, Germany and France. Following closure, the individualassets and liabilities previously consolidated were replaced by a singleEuropean closure provision for the expected costs of closure. During the six months ended 30th June 2007, a final payment of £1.1m in relationto the one remaining liability of the European closure was made. No liabilityremains after this payment and the remaining provision has therefore beenreleased. 15. OTHER PAYABLES AND ACCRUALS------------------------------- 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000--------------------------------------------------------------------------------Other payables 2,200 2,196 2,458Operating lease incentives 8,055 5,730 5,516 ------ ----- ----- 10,255 7,926 7,974 ====== ===== ===== 16. MOVEMENT ON RESERVES------------------------ During the six months ended 30th June 2007 there was no movement on the sharepremium account, the capital redemption reserve, the merger reserve and theother reserves of the Group. Revaluation Hedging Translation Retained reserve reserve reserve earnings £'000 £'000 £'000 £'000--------------------------------------------------------------------------------At 1st January 2007 66,715 1,205 37 (130,308) Movements during period: Retained profit for the period - - - (3,682) Revaluation surplus 135,902 - - - Transfer on increase in minority interests in MWB Malmaison Holdings Ltd - - - (283) Actuarial gain on Liberty Retail Plc defined benefit pension scheme - - - 857 Change in fair value of financial derivatives - (1,236) - 592 Transfer on sale of properties (37) - - 37 Transfer of depreciation on revalued properties (85) - - 85 Write back of option cost through equity - - - 62 Currency translation and other differences - - (45) - ------- ----- -- ------- At 30th June 2007 202,495 (31) (8) (132,640) ======= ===== == ======= Retained earnings at 30th June 2007 comprise the following:- Accumulated net loss in Consolidated Income Statements to 30th June 2007 (62,013) Purchase by the Company of ordinary shares that have subsequently been cancelled (70,627) -------At 30th June 2007 (132,640) ======= Revaluation reserve------------------- The revaluation reserve at 30th June 2007 arose in the following OperatingBusinesses of the Group:- Revaluation Valuation Less reserve at surplus minority 30th June on property interests 2007 £'000 £'000 £'000--------------------------------------------------------------------------------Malmaison and Hotel du Vin 237,052 44,991 192,061Liberty Plc 15,271 4,837 10,434 ------- ------ ------- At 30th June 2007 252,323 49,828 202,495 ======= ====== ======= 17. RECONCILIATION OF MOVEMENT IN EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF MWB GROUP PLC------------------------------------------------------------------------ 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000--------------------------------------------------------------------------------Profit/(loss) for the financial period (3,682) 1,995 982 Unrealised gains on property revaluations credited to revaluation reserve 135,902 5,941 15,438 Purchase of own shares for cancellation during the period - (26,156) (56,437) Issue of shares during the period - 173 173 Loss on minority interests in MWB Malmaison Holdings Limited (283) - (4,006) Charge in fair value of derivative financial (644) 1,362 3,297 instruments Actuarial gain on defined benefit pension schemes 857 1,150 3,365 (Charge)/release of deferred tax on properties at valuation - (1,280) 1,117 Net exchange translation differences and other movements 17 (225) (135)--------------------------------------------------------------------------------Net addition/(reduction) in equity attributable to shareholders of the Company during the period 132,167 (17,040) (36,206) Opening equity attributable to shareholders of the Commpany 99,322 135,528 135,528--------------------------------------------------------------------------------Closing equity attributable to shareholders of the Parent 231,489 118,488 99,322================================================================================ 18. MINORITY INTERESTS---------------------- The movements in minority interests of the Group during the six months ended30th June 2007 arose as follows:- Add Add minority minority share of Other At share of valuation movements At 1st January profit for surplus for during 30th June 2007 the period the period the period 2007 £'000 £'000 £'000 £'000 £'000-------------------------------------------------------------------------------------------MWB Business Exchange Plc 3,843 1,115 - (387) 4,571MWB Malmaison Holdings Limited 30,483 (840) 28,612 8,241 66,496Liberty Plc 17,776 (622) 472 227 17,853Others 1,861 - - - 1,861 ------ --- ------ ----- ------ 53,963 (347) 29,084 8,081 90,781 ====== === ====== ===== ====== During the six months ended 30th June 2007, the Group drew down further fundsfrom the minority shareholder in MWB Malmaison Holdings Limited, resulting inminority interests increasing by the amounts drawn down plus the share of equityattributable to each increased amount subscribed. 19. EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF MWB GROUP IN PENCE PER SHARE----------------------------------------------------------------------- The Equity attributable to shareholders of MWB Group in pence per share iscalculated by dividing the Equity attributable to shareholders of MWB Group ateach period end by the number of ordinary shares in issue at such period end.The relevant figures are as follows:- 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000--------------------------------------------------------------------------------Equity attributable to shareholders of MWB Group per consolidated balance sheet of the financial statements £'000 231,489 118,488 99,322 ======= ======= ======Number of ordinary shares in issue at period end '000 80,522 94,891 80,522 ======= ======= ======Equity attributable to shareholdersof MWB Group in pence per share Pence 287p 125p 123p ======= ======= ====== 20. CONTINGENT LIABILITIES-------------------------- In June 2003 the Group bought out the minority interests in the share capital ofMWB Business Exchange Limited ("BusEx"), for an initial consideration of £16mand deferred consideration of £9.5m. In December 2005, a new holding company forBusEx, MWB Business Exchange Plc, was floated on AIM and the Group's retainedinterest at the date of flotation was valued at £37.6m. This subsidiary hascontinued to expand and by 31st December 2006, the Group's interest in MWBBusiness Exchange Plc had increased in value to approximately £64.8m. Thedeferred consideration of £9.5m referred to above from the acquisition ofminority interests in June 2003 is dependent upon value being distributed out ofMWB Business Exchange Plc to MWB Group or received from a third party sale bythe Group, for the serviced office business of MWB Business Exchange Plc. Thisincludes value received from income distributions, capital repayments andproceeds from external sales of MWB Business Exchange Plc or its business beforeJune 2018. No provision is included in the financial statements for the deferredconsideration as its payment is contingent on value being distributed out of MWBBusiness Exchange Plc and it being received by the MWB Group. However, it wouldbecome payable if the Group's interest in MWB Business Exchange Plc was realisedand it has accordingly been included as a contingent liability of the Group at30th June 2007. 21. ACCOUNTS AND INTERIM ANNOUNCEMENT------------------------------------- A copy of the above document has been submitted to the UK Listing Authority, andwill be available for inspection at the UK Listing Authority's Document ViewingFacility, which is situated at The Financial Services Authority, 25 The NorthColonnade, Canary Wharf, London E14 5HS, telephone number 020 7676 1000. This interim announcement will be sent to shareholders during October 2007. Theaudited accounts of Marylebone Warwick Balfour Group Plc for the eighteen monthsended 31st December 2006, further copies of these interim accounts, and theinterim accounts for the six months ended 30th June 2006, are available from theCompany Secretary, City Group P.L.C. at the Company's registered office of 30City Road, London EC1Y 2AG. This information is provided by RNS The company news service from the London Stock Exchange
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Share Price:
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