Morgan Sindall Group Regulatory News (MGNS)

6 Aug 2007 07:00

Morgan Sindall PLC06 August 2007 MORGAN SINDALL plc ('Morgan Sindall' or 'the Group') Interim results for the six months to 30 June 2007 6 August 2007 Morgan Sindall plc, the construction and regeneration group that now operateswithin five divisions; Affordable Housing, Construction, Development, Fit Outand Infrastructure Services today announces record interim results. 2007 2006Revenue £836m £674m + 24%Profit before tax £25.2m £21.3m + 18%Cash balance £62.4m £20.5m +205%Order book, including impact of acquisition £4.1bn £3.4bn + 23%Earnings per share 41.1p 35.4p + 16%Interim dividend per share 10.0p 8.0p + 25% Group Highlights •Strategy continues to deliver long-term sustainable growth •Record interim results •Growth driven by enhanced profitability across all divisions •Acquisition of Amec Developments (ADL) and Amec Design and Project Services (DPS) completed since period end Divisional Highlights Fit Out •Profit up 21% to £12.4m (2006: £10.2m) on revenue of £225m (2006: £182m) •Margins at 5.5% (2006: 5.6%) •Market remains very strong with order book increasing to £206m (2006: £165m) •Strong market expected to continue into next year Construction •Revenue grew strongly to £199m (2006: £162m) with profit rising to £2.2m (2006: £1.6m) •Successful in securing the Bury, Tameside and Glossop NHS LIFT scheme •Financial close on the Dorset Emergency Services and Police Initiative (DESPI) PFI •Business rebranded as Morgan Ashurst following acquisition of DPS •Order book at £891m (2006: £487m) following inclusion of DPS' construction future workload. It has further increased by £65m since the period end Infrastructure Services •Revenue growth of 54% to £220m (2006: £143m) and profit increased to £4.0m (2006: £2.7m) •Order book at £1.5bn (2006: £1.3bn) following inclusion of DPS' civil engineering future workload •Division expected to return to previous margin levels in 2008 Affordable Housing •Profit up 13% to £11.5m (2006: £10.2m) on revenue of £192m (2006: £186m) •Margin increased due to continued focus on mixed tenure opportunities •First social housing PFI secured •Order book of £1.5bn (2006: £1.4bn) Development •Acquired business renamed Muse Developments £€3.7bn development pipeline of opportunities on own account and in partnership John Morgan, Executive Chairman, commented: "We have delivered impressive profit growth in all business areas. Fit Out andAffordable Housing have again returned strong profits, but equally pleasing isour performance in Infrastructure Services and Construction, with profitsincreasing from both. "The recent acquisitions will further strengthen our Construction andInfrastructure Services division, and create a UK-wide leading urbanregeneration business. The businesses are being fully integrated and we areconfident that they will be earnings enhancing in this financial year." ENQUIRIES: Morgan Sindall plc Tel: 020 7307 9200John Morgan, Executive ChairmanPaul Smith, Chief ExecutiveDavid Mulligan, Finance Director Blythe Weigh Tel: 020 7138 3204Tim Blythe Mobile: 07816 924626Paul Weigh Mobile: 07989 129658 Chairman and Chief Executive's Statement We are pleased to announce record results for the six months to 30 June 2007.Profit before tax has been increased by 18% to £25.2m (2006: £21.3m) fromrevenue of £836m (2006: £674m). Earnings per share grew by 16% to 41.1p (2006:35.4p). At the end of July the Group completed the acquisition of two businessesfrom Amec plc; Amec Developments (ADL) and Amec Design and Project Services(DPS). Accordingly, to reflect the increased prospects of the Group, the interimdividend has been increased by 25% to 10.0p (2006: 8.0p). The increased performance was driven by improvements in profitability across alldivisions. Fit Out grew its revenue and profit, reflecting the continuedstrength of the commercial property market. The Construction division saw anincrease in revenue and profit against a backdrop of buoyant market conditions.The expanding civil engineering market enabled Infrastructure Services to growits revenue strongly and to improve its overall level of profitability. Finally,Affordable Housing again increased its profit margin over the same period in theprevious year through its continued focus on mixed tenure developments. Net cash at 30 June 2007 was £62m (2006: £20m) with the average level of cashduring the six months to the end of June improving on the same period last year. DIVISIONAL REVIEWS Fit Out Fit Out produced a strong performance during the first half of 2007 with profitincreasing by 21% to £12.4m (2006: £10.2m) on revenue of £225m (2006: £182m).The office fit out market remains very healthy, particularly in the financialand professional services sectors. Margins were at 5.5% (2006: 5.6%). The orderbook increased from the start of the year to stand at £206m (2006: £165m), whichsupports our view that the current strength of the market will continue intonext year. Construction Construction's revenue grew in the first half of 2007 to £199m (2006: £162m)with profit rising to £2.2m (2006: £1.6m). Since the period end, the divisionwas successful in securing two projects under the Bury, Tameside and Glossop NHSLIFT scheme bringing the division's interests in the NHS LIFT programme to atotal of five schemes. In addition the division achieved financial close on theDorset Emergency Services and Police Initiative (DESPI) PFI, which enhances thedivision's presence in the emergency service sector. The order book at the endof June, which has been adjusted to include £398m relating to DPS' constructionactivities, was £891m (2006: £487m). It has further increased since 30 June 2007by £65m through the two schemes referred to above. Infrastructure Services Infrastructure Services also delivered impressive revenue growth of 54% to £220m(2006: £143m) with profit being increased to £4.0m (2006: £2.7m). Following itssuccess in winning new orders last year, the division continued to secure keyprojects in the first half of 2007 such as the £38m ring main project for ThamesWater. The forward order book at the end of June, which has been adjusted toinclude £187m relating to DPS' civil engineering activities, was £1.5bn (2006:£1.3bn). As projects mature, we expect the performance of this division tocontinue its improvement, with the division returning to previous margin levelsduring 2008. Affordable Housing Affordable Housing increased its profit by 13% to £11.5m (2006: £10.2m) onrevenue of £192m (2006: £186m). The margin has improved compared to the sameperiod last year, due to the continued focus on mixed tenure opportunities.Notably the division secured its first social housing PFI in March at MilesPlatting in Manchester. The project will be worth £200m to Lovell over the next12 years from the refurbishment of 1,600 existing social houses as well as thebuilding of 1,200 new homes for open market sale. The forward order book was£1.5bn at the end of June (2006: £1.3bn), demonstrating the division's excellentlong term prospects. Development This newly created division, trading as Muse Developments, follows theacquisition of ADL and focuses on mixed use regeneration. The business hasinterests in over 30 schemes and has a development pipeline of £3.7bn in its ownschemes and those with its partners. We anticipate that mixed use developmentwill play an increasingly important role in urban regeneration. ACQUISITION On the 27 July 2007, the Group completed the acquisition of two businesses fromAmec plc: ADL, a mixed use urban regeneration business, and the assets andcertain contracts relating to DPS, a nationwide construction and engineeringbusiness. ADL (now renamed Muse Developments) is a mixed use urban regeneration businesswhich has a prominent position in securing and delivering flagship schemesacross the UK. It develops partnerships in longer term, large developmentschemes which are multi phased and typically have durations of between 5 and 15years. Muse Developments is involved in more than 30 mixed use developmentprojects with a total build in excess of 20 million square feet. Fifteen ofthese projects are currently under construction such as the £80m St Paul'sSquare project in Liverpool. DPS is a construction and civil engineering business that was formed in January2006 from the integration of Amec Design and Management and Amec ConstructionServices to combine pre-construction design and project management skills withthe delivery of the construction projects. A new management team was appointedat that time. DPS operates nationwide from 5 key locations across the UK,employs approximately 2,800 people and specialises in medium to large sizecontracts. Its main markets are in the education, health, defence, retail,industrial, transport and nuclear sectors. The rationale for the acquisition is to create a leading UK-wide urbanregeneration business, to significantly enhance our construction offering, andto develop Infrastructure Services' market leading position. In addition, theacquisition helps the Group to significantly increase its scale and capabilityat a time when clients are seeking larger and more sophisticated businesses tomeet their needs. Muse Developments will operate as a standalone division but will seek jointopportunities with Affordable Housing's urban regeneration activities. DPS'scurrent operations will be integrated with Morgan Sindall's existingConstruction division (Bluestone) and Infrastructure Services division (MorganEst). The integrated Construction division has been rebranded Morgan Ashurst. The provisional consideration paid was £34m including an amount of £5m for thebenefit of a restrictive covenant relating to Muse Developments. The Group isassuming net liabilities of £21m giving goodwill of £50m, subject to the finalagreement of the acquisition balance sheet. The provisional net cash outflow was£14m as the net liabilities noted above include cash balances of £20m.Consequently the proforma Group cash balance reflecting the acquisition at Junewould have been £48m. As previously announced the acquisition is expected to enhance earnings inMorgan Sindall's current financial year and materially enhance earnings in thenext financial year. OUTLOOK The Group's overall forward order book now stands at £4.1bn (2006: £3.4bn),including the impact of the acquisition which added £585m in future workload.Excluding the acquisition this represents a 7% increase from the start of theyear. The outlook for the Group is very encouraging, with all of MorganSindall's chosen markets growing. In addition, the acquisition significantlystrengthens the Group's construction capabilities and adds an exciting newdimension to our skills in the regeneration sector. It has provided newopportunities and further enhances the positive outlook for the Group. John Morgan Paul Smith Executive Chairman Chief Executive 6 August 2007 MORGAN SINDALL PLC Interim results for the six months to 30 June 2007 Consolidated Income Statement for the six months to 30 June 2007 (unaudited) Unaudited Unaudited Audited Six months to Six months to Year to 30 June 2007 30 June 2006 31 December 2006 £'000s £'000s £'000s Continuing operationsRevenue (note 2) 836,062 673,506 1,496,844Cost of sales (744,113) (595,371) (1,331,423) ----------- ---------- ------------ Gross profit 91,949 78,135 165,421 Administrative expenses (67,846) (57,011) (118,401)Share of results of jointventures (433) (118) (796) ----------- ---------- ------------ Operating profit 23,670 21,006 46,224 Investment revenues 3,040 1,317 3,807Finance costs (1,555) (1,048) (2,421) ----------- ---------- ------------ Profit before tax 25,155 21,275 47,610Tax (note 3) (7,879) (6,382) (14,797) ----------- ---------- ------------ Profit for the period fromcontinuing operationsattributable to equityholders of the parent company 17,276 14,893 32,813 ----------- ---------- ------------ Earnings per shareFrom continuing operationsBasic (note 5) 41.1p 35.4p 78.2p ----------- ---------- ------------ Diluted (note 5) 40.1p 34.2p 76.3p ----------- ---------- ------------ There are no discontinued activities in either the current or prior period. MORGAN SINDALL PLC Interim results for the six months to 30 June 2007 Consolidated Balance Sheet at 30 June 2007 (unaudited) Unaudited Unaudited Audited 30 June 2007 30 June 2006 31 December 2006 £'000s £'000s £'000s Fixed assets Goodwill 72,705 72,204 72,705Property, plant and equipment 18,770 16,009 16,623Interest in joint ventures 10,790 4,060 5,200Investments 103 103 103Deferred tax 3,593 3,211 3,584 ----------- ---------- ------------ 105,961 95,587 98,215 ----------- ---------- ------------Current assets Inventories 92,532 101,525 86,805Trade and other receivables 360,862 290,877 280,945Cash and cash equivalents 62,368 20,460 95,433 ----------- ---------- ------------ 515,762 412,862 463,183 ----------- ---------- ------------Total assets 621,723 508,449 561,398 ----------- ---------- ------------Current liabilitiesTrade and other payables (453,572) (371,211) (406,795)Current tax liabilities (6,631) (6,084) (6,403)Obligations under financeleases (1,500) (754) (1,314) ----------- ---------- ------------ (461,703) (378,049) (414,512) ----------- ---------- ------------Net current assets 54,059 34,813 48,671 ----------- ---------- ------------ Non current liabilities Retirement benefit obligation(note 6) (2,813) (2,977) (2,534) Obligations under financeleases (3,142) (1,682) (2,457) ----------- ---------- ------------ (5,955) (4,659) (4,991) ----------- ---------- ------------Total liabilities (467,658) (382,708) (419,503) ----------- ---------- ------------Net assets 154,065 125,741 141,895 ----------- ---------- ------------ Equity Share capital 2,130 2,118 2,126Share premium account 26,177 26,132 26,169Capital redemption reserve 623 623 623Own shares (4,665) (1,775) (3,387)Hedging reserve 2,874 (1,901) (795)Retained earnings 126,926 100,544 117,159 ----------- ---------- ------------Total equity 154,065 125,741 141,895 ----------- ---------- ------------ MORGAN SINDALL PLC Interim results for the six months to 30 June 2007 Consolidated Cash Flow Statement for the six months to 30 June 2007 (unaudited) Unaudited Unaudited Audited Six months to Six months to Year to 30 June 2007 30 June 2006 31 December 2006 £'000s £'000s £'000s Net cash from operatingactivities (note 7) (19,357) (31,861) 47,909 ----------- --------- ----------- Investing activitiesInterest received 2,927 1,229 3,775Dividends received from jointventures - 7,225 7,225Proceeds on disposal ofproperty, plant and equipment 136 202 1,112Purchases of property, plantand equipment (3,629) (1,866) (3,216)Payments to acquire interestin joint ventures (2,353) (185) (896)Acquisition of subsidiary - (18,223) (23,035)Net cash acquired onacquisition of subsidiary - - 4,809 ----------- --------- -----------Net cash used in investingactivities (2,919) (11,618) (10,226) ----------- --------- ----------- Financing activitiesPayments to acquire ownshares (1,278) - (1,612) Dividends paid (8,398) (7,549) (10,914) Repayments of obligationsunder finance leases (1,125) (530) (1,787) Repayment of loan notes - (120) (120)Proceeds on issue of sharecapital 12 120 165 ----------- --------- -----------Net cash used in financingactivities (10,789) (8,079) (14,268) ----------- --------- ----------- Net (decrease)/increase incash and cash equivalents (33,065) (51,558) 23,415 Cash and cash equivalents atbeginning of period 95,433 72,018 72,018 ----------- --------- ----------- Cash and cash equivalents at end ofperiod Bank balances and cash 62,368 20,460 95,433 ----------- --------- ----------- MORGAN SINDALL PLC Interim results for the six months to 30 June 2007 Consolidated Statement of Recognised Income and Expense for the six months to 30 June 2007 (unaudited) Unaudited Unaudited Audited Six months to Six months to Year to 30 June 2007 30 June 2006 31 December 2006 £'000s £'000s £'000s Recognition of share basedpayments 1,153 411 959Tax on share based payments - 703 2,004Actuarial (losses)/gains ondefined benefit pensionscheme (279) 319 700Deferred tax on definedbenefit liabilities takendirectly to equity 29 (112) (282)Movement on hedged items oncash flow hedges 3,669 337 1,443Change in deferred tax rateon items taken directly toreserves (14) - - ---------- --------- -----------Net income recogniseddirectly in equity 4,558 1,658 4,824 Profit for the period fromcontinuing operations 17,276 14,893 32,813 ---------- --------- -----------Total recognised income andexpense for the periodattributable to equityshareholders 21,834 16,551 37,637 ---------- --------- ----------- Consolidated Statement of Changes in Equity for the six months to 30 June 2007 (unaudited) Unaudited Unaudited Audited Six months to Six months to Year to 30 June 2007 30 June 2006 31 December 2006 £'000s £'000s £'000s Balance at start of period 141,895 116,619 116,619 Profit for period 17,276 14,893 32,813Recognition of share basedpayments 1,153 411 959Tax on share based payments - 703 2,004Dividend declared and paid - - (3,365)Prior year final dividendpaid (8,398) (7,549) (7,549)Actuarial (losses)/gains ondefined benefit pensionscheme (279) 319 700Deferred tax on definedbenefit liabilities taken 29 (112) (282)directly to equityOwn shares purchased (1,278) - (1,612)Options exercised 12 120 165Movement on hedged items oncash flow hedges 3,669 337 1,443Change in deferred tax rateon items taken direct toreserves (14) - - ---------- --------- ----------- Balance at end of period 154,065 125,741 141,895 ---------- --------- ----------- MORGAN SINDALL PLC Interim results for the six months to 30 June 2007 Notes to the interim report (unaudited) 1. Principal accounting policies Basis of accounting This set of financial statements has been prepared using accounting policiesconsistent with International Financial Reporting Standards ('IFRS'). The same accounting policies and methods of computation are followed in theinterim financial statements as in the 31 December 2006 report and accounts withthe exception that IFRS 7 and IFRIC 9 and 10 have been adopted where applicableto the Group. At the date of authorisation of these financial statements IFRS 8 and IFRIC 11and 12, which have not been applied in these financial statements, were in issuebut not yet effective. The directors anticipate that the adoption of thesestandards and interpretations in future years will have no material impact onthe financial statements of the Group. 2. Analysis of revenue and profit from business segments Unaudited Unaudited Six months to Six months to 30 June 2007 30 June 2006 Revenue Profit/(loss) Revenue Profit/ (loss) £'000s £'000s £'000s £'000s Fit Out 225,055 12,356 182,159 10,210Construction 198,962 2,201 161,677 1,550InfrastructureServices 220,453 3,995 143,127 2,692AffordableHousing 191,592 11,541 186,467 10,189Group activities - (5,990) 76 (3,517) --------- -------- -------- --------- 836,062 24,103 673,506 21,124 --------- -------- Share of resultsof jointventures (433) (118) -------- --------- Operating profit 23,670 21,006 -------- --------- Investmentincome 3,040 1,317Finance costs (1,555) (1,048) -------- --------- Profit before tax 25,155 21,275Tax (7,879) (6,382) -------- --------- Profit for theperiod fromcontinuingoperations 17,276 14,893 -------- --------- 3. Tax Unaudited Six months to 30 June 2007 2006 £'000s £'000s Current tax:UK corporation tax 7,798 6,517 -------- --------- 7,798 6,517Deferred tax:Current year 81 (135) -------- --------- 7,879 6,382 -------- --------- Corporation tax for the interim period is charged at 31% (2006: 30%), being theestimated effective corporation tax rate for the full financial year. 4. Dividends Unaudited Six months to 30 June 2007 2006 £'000s £'000s Final dividend for year ended 31 December 2006 of20.00p (2005: 18.00p) per share 8,398 7,549 -------- -------- Proposed interim dividend for the period to 30 June2007 of 10.00p (2006: 8.00p) per share 4,261 3,389 -------- -------- The proposed interim dividend was approved by the Board on 2 August 2007 and hasnot been included as a liability at 30 June 2007. The interim dividend of 10.00p (2006: 8.00p) per share will be paid on 14September 2007 to shareholders on the register at 17 August 2007. Theex-dividend date will be 15 August 2007. 5. Earnings per share There are no discontinued operations in either the current or prior period. The calculation of the basic and diluted earnings per share is based on thefollowing data: Unaudited Six months to 30 June 2007 2006Earnings £'000s £'000s Earnings for the purposes of basic and dilutiveearnings per share being net profit attributable toequity holders of the parent company 17,276 14,893 -------- -------- Unaudited Six months to 30 June 2007 2006Number of shares '000s '000s Weighted average number of ordinary shares for thepurposes of basic earnings per share 42,003 42,042 -------- -------- Effect of dilutive potential ordinary shares: Share options 867 1,145LTIP shares - 265Executive Remuneration Plan 179 57 -------- -------- Weighted average number of ordinary shares for thepurposes of dilutive earnings per share 43,049 43,509 -------- -------- 6. Retirement benefit schemes The Group operates a pension plan which operates mainly on defined contributionprinciples. However, there is a small section of defined benefit liabilitiesfull details of which are disclosed in the Group's annual report and accounts.For the purposes of understanding these interim financial statements, details ofthe approximate valuation of the scheme at 30 June 2007 are given below. The defined benefit obligation as at 30 June 2007 is estimated by updating thevaluation of liabilities included in the annual report and accounts for the yearended 31 December 2006. There have not been any significant fluctuations forone-time events since the 31 December 2006 that would have a material impact onthe calculations. The defined benefit plan assets have been updated to reflect their market valueas at 30 June 2007. Differences between the expected return on assets and theactual return on assets have been recognised as an actuarial loss in theconsolidated statement of recognised income and expense in accordance with theGroup's accounting policy. Unaudited Audited Six months to 30 June to 31 December 2007 2006 2006 £'000s £'000s £'000s Fair value of the scheme assets 4,484 4,391 4,829Present value of schemeliabilities (7,297) (7,368) (7,363) --------- -------- ---------- Deficit in the scheme (2,813) (2,977) (2,534) Related deferred taxation at 28.0%(2006: 30.0%) 788 893 759 --------- -------- ---------- Net pension liability (2,025) (2,084) (1,775) --------- -------- ---------- 7. Reconciliation of operating profit to net cash from operatingactivities Unaudited Unaudited Audited Six months to Six months to Year to 30 June 2007 30 June 2006 31 December 2006 £'000s £'000s £'000s Operating profit 23,670 21,006 46,224 Adjusted for:Share of results of jointventures 433 118 796Depreciation of property,plant and equipment 2,793 2,296 4,904Expense in respect of shareoptions 1,153 411 959Defined benefit pensionpayment (120) (120) (240)Defined benefit pensioncharge 64 65 123Loss/(gain) on disposal ofproperty, plant and equipment 437 (4) (121) --------- -------- -----------Operating cash flows beforemovements in working capital 28,430 23,772 52,645(Increase)/decrease ininventories (5,727) (13,954) 766(Increase)/decrease inreceivables (79,823) (45,704) (35,761)Increase/(decrease) inpayables 46,755 11,446 46,461 --------- -------- -----------Cash (absorbed by)/generatedfrom operations (10,365) (24,440) 64,111Income taxes paid (7,570) (6,533) (13,937)Interest paid (1,422) (888) (2,265) --------- -------- -----------Net cash from operatingactivities (19,357) (31,861) 47,909 --------- -------- ----------- Additions to plant, property and equipment during the year amounting to £1.4mwere financed by new finance leases. Cash and cash equivalents (which are presented as a single class of assets onthe face of the balance sheet) comprise cash at bank and other short-term highlyliquid investments with a maturity of three months or less. 8. Related party transactions Transactions between the Company and its subsidiaries, which are relatedparties, have been eliminated on consolidation and are not disclosed in thisnote. Transactions between the Group and its joint ventures are disclosed below: Trading transactions During the period, the Group increased entered into transactions with relatedparties. Transactions and amounts owed in the period are as follows: Provision of Amounts owed by goods and related parties services Six months ended 30 June 2007 £'000s £'000sClaymore Roads(Holdings)Limited - 209Morgan-VinciLimited - 115CommunitySolutions forPrimary Care(Holdings)Limited 5,012 477Morgan SindallInvestments(3PD) Limited 1,715 135The CompendiumGroup Limited 169 283 ------------ ----------- 6,896 1,219 ------------ ----------- Six months ended 30 June 2006 £'000s £'000sClaymore Roads(Holdings)Limited - 474Morgan-VinciLimited - 75CommunitySolutions forPrimary Care(Holdings)Limited 7,920 1,120Morgan Sindall Investments (3PD) Limited - -The CompendiumGroup Limited 114 - ------------ ----------- 8,034 1,669 ------------ ----------- Year ended 31 December 2006 £'000s £'000sClaymore Roads(Holdings)Limited 13 820Morgan-VinciLimited 12 196CommunitySolutions forPrimary Care(Holdings)Limited 11,921 100Morgan SindallInvestments(3PD) Limited 104 468 ------------ ----------- 12,050 1,584 ------------ ----------- 9. Post balance sheet event On 27 July 2007, Morgan Sindall plc acquired from Amec plc the entire sharecapital of AMEC Developments Limited ("ADL"), the urban regeneration businessand the assets, business and certain contracts relating to the Design andProject Services division ("DPS"), save for certain excluded assets andliabilities. Morgan Sindall will conclude certain other contracts on behalf of AMEC, which are substantially complete, and resolve any outstanding contractobligations relating thereto. Morgan Sindall paid AMEC plc consideration of £34m for the two businesses. Thecombined net liabilities acquired were £21m, subject to adjustment. Theconsideration included an amount of £5m for the benefit of a restrictivecovenant. The excess of consideration paid over net liabilities of £55mconsists of the restrictive covenant payment of £5m and goodwill of £50m. Anexercise to review the fair value of the assets acquired is underway, fulldetails of which will be provided in the Morgan Sindall 2007 report andaccounts. Anticipated costs relating to the transaction of £2m will becapitalised. 10. The results for the half years ended 30 June 2007 and 2006 and the balancesheets as at those dates have not been audited and do not constitute statutoryaccounts. The financial information for the year ended 31 December 2006 does notconstitute statutory accounts as defined in section 240 of the Companies Act1985. A copy of the statutory accounts for that year has been delivered to theRegistrar of Companies. The auditor's report on those accounts was not qualifiedand did not contain statements under section 237(2) or (3) of the Companies Act1985. This information is provided by RNS The company news service from the London Stock Exchange