PRP.L Regulatory News (PRP)

7 Jun 2006 07:01

Prime People PLC07 June 2006 Prime People plc Preliminary Results for the 15 months ended 31 March 2006 2005 was a year of transformation for Prime People ("Prime" or "the Group") asthe Board delivered on its stated strategy, announced in May 2005, to developand broaden the activities of the business. This objective was achieved in January 2006, with the £10.52m acquisition ofMacdonald & Company Group Limited ("Macdonald"), the UK's leading independentprofessional recruitment consultancy focused on the commercial property sector. As a consequence of this transaction and a change of year-end, the statutoryresults for Prime People are for the fifteen months ended 31 March 2006 and onlyincludes three months trading for Macdonald. Statutory* financial results: 15 Months ended 12 Months ended 31 March 2006 31 December 2004 £'000 £'000 Gross fee income 5,373 2,295Net Fee Income 3,117 2,108 Operating profit/(loss) 132 (90)(Loss)/profit before tax (11) 674 Basic EPS (0.52p) 18.25pBasic EPS continuing 6.69p (4.50p) *Statutory accounts are made up of results for Prime People for the 15 months to31 March 2006 and for Macdonald for the period from 3 January to 31 March 2006. In order to give shareholders a more meaningful assessment of the ongoingbusiness, pro forma consolidated results for the enlarged business for the twoyears to 31 March 2006, presented as if the ongoing business had been inexistence throughout those years, are outlined below: Pro forma** financial highlights: Year ended 31 Year ended Change March 2006 31 March 2005 % £'000 £'000 Gross Fee Income 16,504 12,372 +33.4%Direct Costs (7,699) 6,004) ______ ______Net Fee Income 8,805 6,368 +38.3%Admin Expenses (6,997) (5,397) ______ ______Operating Profit 1,808 971 +86.2%Net Interest (51) (70) ______ ______Profit before tax 1,757 901 +95.0%Taxation at 30% (527) (270) ______ ______Profit after tax 1,230 631 +94.9% ====== ======Fully diluted EPS 10.23p 5.25p +94.9% ** The basis of preparation of the pro forma calculations is set out below. Thisinformation in unaudited: • Mar 05 and Mar 06 are pro forma for the enlarged Group including Macdonald• Mar 05 and Mar 06 excludes discontinued operations, associated undertakings (Cameron Kennedy Resources Limited) and exceptional costs• Fully diluted EPS includes existing share options and assumes that all shares due to the vendors of Macdonald including those to be issued to satisfy the deferred consideration have been issued. Pro forma Operational highlights: • Macdonald net fee income growth of 40.2% to £8.23m (2005: £5.87m); • Fully diluted earnings per share increased by 94.9% to 10.23p • Fee earners increased by 21%; • International expansion on track with Dubai representation operational in January 2006 and Hong Kong office planned to open in June 2006; • Macdonald ranked 20th by the Sunday Times in the "Best 100 Small Companies to Work For". Peter Moore, Managing Director of Prime People said: "2005 was a milestone yearfor Prime People, in which it was transformed through the reverse takeover ofMacdonald & Company into the UK's leading property recruitment company. "Pro forma results show continued strong performance during the year, with netfee income increasing 38% and operating profits nearly doubling to £1.8m. Thisreflects both increased levels of activity in the property recruitment sectorand our ability to manage the business to take advantage of our increasingscale. "2006 has got off to a strong start with net fee income in the two month periodto the end of May some 20% ahead of the same period last year. We are lookingfor continued growth from overseas revenues and early indications from our newbusiness in the Middle East are very encouraging. We are also actively seekingto expand the business through acquisition. "These internal growth opportunities, together with the continued high levels ofactivity in the global commercial property sector, including the forthcomingintroduction of Real Estate Investment Trusts ("REITs") to the UK from January2007, gives the Board confidence in the future progress of the Company." -Ends- For further information please contact: Prime People 020 7318 1785Robert Macdonald, Executive ChairmanPeter Moore, Managing Director Hogarth Partnership 020 7357 9477James Longfield / Georgina Briscoe / Charlie Field Chairman's Statement Introduction I am pleased to report on the results of Prime People Plc for the 15 monthsended 31 March 2006. 2005 was a milestone year for the Company, its employees and shareholders as thebusiness was transformed by the reverse takeover of Macdonald & Company GroupLtd ("Macdonald") in January 2006 for £10.52 million. I joined the Board ofPrime People on completion as Executive Chairman, a position I held atMacdonald, and I am delighted to welcome our new investors and colleagues to thebusiness. On 16 May 2005, Simon Murphy was appointed to the Board as Chief Executive, withthe specific mandate to create shareholder value "by developing and broadeningthe activities of the business, initially through acquisition". This wassuccessfully achieved with the acquisition of Macdonald, which transformed PrimePeople into the UK's only listed professional recruitment consultancy focused onthe commercial property industry. I would like to thank Simon for hissignificant contribution to this process and am delighted he has agreed toremain on the Board, as a non-executive director. The acquisition led to changes to the composition of the Board, reflecting thechanged focus of the business. I would like to take this opportunity ofintroducing my two fellow executive directors. Peter Moore is Managing Director, with overall responsibility for operationalactivity in the Group. Peter, a Chartered Surveyor, has been with Macdonald forthe last twelve years, and Managing Director for the last ten. He has managedthe business through its nine years of double-digit growth. Chris Heayberdremains as Finance Director, having been with Prime People since 2000. Chris hasover seventeen years experience of working with, acquiring and integratingrecruitment businesses as well as thirteen years as a director of publiclylisted companies. I am delighted Chris has agreed to remain in his role asFinance Director of the enlarged Group and his experience will be invaluable aswe continue to expand the business. My own experience includes over 30 years inthe recruitment sector and founder of Macdonald. Peter Hearn and David Coubrough, formerly Chairman and non-executive Director,respectively, stepped down from the Board at the time of the transaction. Statutory Results The statutory results for Prime People are for the fifteen months ended 31 March2006 and include three months trading for Macdonald. These are set out in fullin the financial statements at the end of this release. Following the acquisition of Macdonald, Prime People was transformed into a verydifferent business, with a changed year end. In order to give shareholders amore meaningful assessment of the ongoing business, pro forma consolidatedresults for the enlarged business for the year to 31 March 2006, presented as ifthe ongoing business had been in existence throughout the year are set outbelow. Pro forma Results for the ongoing business for the year to 31 March 2006 With Prime People's new focus on the property recruitment market, I am pleasedto report that the sector has enjoyed significant growth in recent years. Thisis reflected in our pro forma results which are presented below for the twelvemonths to 31 March 2006 as if the ongoing businesses had all been in existencethroughout the year. Comparatives have been prepared on the same basis. Pro forma financial results: Year ended Year ended Change 31 March 2006 31 March 2005 % £'000 £'000 Gross Fee Income 16,504 12,372 + 33.4%Direct Costs (7,699) (6,004) ______ ______ Net Fee Income 8,805 6,368 + 38.3%Admin Expenses (6,997) (5,397) ______ ______ Operating Profit 1,808 971 + 86.2%Net Interest (51) (70) ______ ______Profit before tax 1,757 901 + 95.0%Taxation at 30% (527) (270) ______ ______Profit after tax 1,230 631 +94.9% ====== ======Fully diluted EPS 10.23p 5.25p +94.9% Prime People includes the trading businesses of Macdonald and Harper CravenAssociates. Pro forma Net Fee Income has grown by 38% to £8.8m (2005: £6.4m).Pro forma profit before tax for 2006 was £1.76m (2005: £0.9m) a 95% increase. In addition to the tight management of our business, a number of externalfactors have been driving this growth. I am pleased to report that these lookset to continue to be positive for us. The global strength of the commercialproperty sector, combined with the advent of Real Estate Investment Trusts("REITs") and the continuing investment in regeneration and major infrastructureprojects in the UK, give me added confidence in Prime People's future growthprospects within its core business. The strong underlying performance of Macdonald over the past year has led theBoard to propose a final dividend of 1p per ordinary share. This will be paid on5 July 2006 to shareholders on the register on 16 June 2006 and brings the totaldividend paid to shareholders to 2.25 pence per share. Going forward, it isanticipated that the Board will review the dividend in the light of trading andlikely cash requirements of the Group at the relevant time. Future Activity As announced in December, we believe our core business is a long way fromfulfilling its potential. We are actively planning organic growth whilst at thesame time considering acquisition targets of an appropriate size and operationalfit within the property sector, particularly those which may provide access toadditional areas of specialism. As referred to below by Peter Moore, we are progressing our plans to broaden thebusiness overseas. We believe that, over time, and in addition to accessinggrowth markets, an international business model should provide a degree ofcounter-cyclical support to our business. Currently our focus is on the property sector but the Board believes that whenappropriate, it may be possible to apply the Macdonald model to certain othersectors and we have this under constant review. I look forward to telling shareholders of developments in these various areas indue course. Robert MacdonaldChairman 6 June 2006 Managing Director's Statement Macdonald Our core business is the provision of recruitment services to the CommercialProperty and Real Estate markets in the UK and around the world, a sectormanaging assets in the UK alone valued at £640bn. It trades as Macdonald &Company and is the only property recruitment consultancy to be approved by theRoyal Institution of Chartered Surveyors ("RICS"). We have seen a further increase in revenue and profit over the past year as thebusiness has maintained its record of consistent growth. Net fee income ("NFI")increased by 40.3% from £5.87m to £8.23m reflecting an increase in fee earnersof 21%, bringing our total number of consultants to 64 at the year end. Detailsof the split between temporary and permanent net fee income is shown below: Year ended Year ended Change 31 March 2006 31 March 2005 % £'000 £'000 Net fee income - temporary 1,951 1,411 + 38.27%Net fee income - permanent 6,282 4,456 + 40.98% ___________ ___________Total NFI 8,233 5,867 + 40.33% In January 2006, we began the first stage of our international expansionstrategy, with the relocation of fee earning staff to Dubai. Progress in thisregion has been rapid and we anticipate that the region will be a strongcontributor to NFI in 2006/2007. The operation will be expanded significantly inthe coming year to capitalise on the burgeoning opportunities across the MiddleEast. In March this year, the Board took the decision to begin operations in Hong Kongand it is anticipated that staff will be relocating to the office there in thesummer of 2006 with plans for rapid growth. We are also actively seekingopportunities to establish an operation in Australia. In the UK, we moved to larger premises in central Manchester to accommodate thegrowth in numbers employed in that region. Our head office remains in Mayfair,London where we are benefiting from a refurbishment programme undertaken in 2005to increase the number of fee earners that can be accommodated. We have also reconfigured our data management process to allow secure access toall records held on our centralised data-base. This new structure providesimmediate access to our central recruitment data-base for all fee earning staff,including those based internationally. Harper Craven Harper Craven, which has been in the group for a number of years, providesbespoke sales, marketing and management training and coaching programmes to abroad range of corporate clients. It has made a contribution of £29,673 to groupprofits before tax compared to £17,101 in 2004. Outlook 2006 has got off to a strong start with net fee income in the two month periodto the end of May 20% ahead of the same period last year. Overseas revenuegeneration is a key priority of the Board as the business expands into newgeographic territories. Early indications from business flows in the Middle Eastare very encouraging. This, combined with increasing fee earner numbers, the introduction of REITs tothe UK from January 2007 as well as the longer term opportunities offered byregeneration and ongoing infrastructure projects in the UK, gives the Boardconfidence in the future progress of the Group. Our people Finally, I should like to thank our staff for their hard work and commitmentover the last fifteen months and remind shareholders that these results are atestament to their efforts. The Sunday Times ranked Macdonald 20th in their "100Best Small Companies To Work For", recognising the positive culture we haveestablished in the business. The hallmark of a successful recruitment company isthe provision of outstanding candidates through exceptional service and industryknowledge and I, my managers, our consultants and all members of staff arecommitted to this. Peter MooreManaging Director 6 June 2006 Financial Review The financial statements have been prepared for the first time in accordancewith International Financial Reporting Standards (IFRS). This is significantlyahead of schedule as AIM quoted companies do not have to report under IFRS until2007. Trading Results Gross fee income for the period ended 31 March 2006 increased by 134% to£5,373,053 (31 December 2004: £2,294,548). The group generated operating profitsof £317,225 (2004: loss £283,243) before exceptional items of £185,700 relatingto restructuring and integration costs in 2006 and before an operating profit of£193,721 in 2004 which relates to the discontinued business in 2004. Thisturnaround is entirely as a result of the operating profit generated since theacquisition of Macdonald in January 2006. Associate Undertaking Following the period end, we announced the disposal of our 44.66% interest inCameron Kennedy for a cash consideration of £180,000. This business wassignificantly underperforming and the Board concluded it was in the bestinterests of shareholders to dispose of it. The write down of the value of ourholding taken together with our share of the associate company's losses givesrise to a loss on disposal of £234,676. Interest The interest receivable of £134,253 primarily arose in the twelve month periodleading up to the acquisition of Macdonald in January 2006. The interest charged for the period of £42,109 comprises interest in respect ofthe confidential invoice discounting facility, bank loan and overdraft. Taxation The taxation charge is £15,510 on a loss on ordinary activities before taxationof £11,007. The reasons for the difference from the standard UK corporation taxrate of 30% are detailed in note 8 of the accounts. The group has benefited fromutilisation of tax losses created in the year. Earnings Per Share The basic loss per share for the period is 0.52p (2004: earnings 18.25p); thecontinuing basic earnings per share is 6.69p compared to a loss in 2004 of4.50p. The continuing diluted earnings per share is 6.09p (2004: loss per share 4.50p). Dividend As outlined in the chairman's statement, the directors propose a final dividendof 1p which will be paid on 5 July 2006 to shareholders who are on the registeron the 16 June 2006 making a total dividend for the period of 2.25p. Purchase of Macdonald & Company Group Limited On 3 January 2006 the group completed the acquisition of the entire sharecapital of Macdonald & Company Group Limited for an initial consideration of£9.52 million satisfied by payment of £3.5 million in cash and the issue of Newordinary shares in the company to the value of 6.02 million. Furtherconsideration of £1 million is payable immediately following the announcement ofthe company's preliminary results and will be satisfied by issuing further newordinary shares in the group. Share Consolidation In conjunction with the acquisition of Macdonald the share capital of thecompany was re-organised by the consolidation of every ten issued ordinaryshares of 1p each into one new ordinary share of 10p each. Change of Accounting Reference Date Following the acquisition of Macdonald the company changed its accountingreference date from 31 December to 31 March to correspond with the year end ofMacdonald. Treasury Management. Net cash inflow of £154,792 (2004: outflow of £93,986) was generated fromoperating activities during the period which after net taxation payments of£584,864 (2004: net receipt of £74,350) resulting in a net cash outflow fromoperating activities of £430,072 (2004: £19,636). Net cash used in investing activities totaled £9.6 million and this wasprincipally financed by the issue of ordinary share capital to the value of£6.02m to the vendors of Macdonald together with a new bank loan of £1.4m andthe use of existing cash resources from within the group. The group maintains a range of facilities with a net debt position at 31 March2006 of £1,250,248 compared to net funds of £2,800,187 at 31 December 2004. Thislargely reflects the cash flows and debt relating to the acquisition ofMacdonald. Christopher HeayberdFinance Director 6 June 2006 Prime People Plc Consolidated income statement for the 15 months ended 31 March 2006 Note 2006 2004 restated £ £Gross fee income- ongoing 799,187 708,653- acquisition 4,573,866 -- discontinued - 1,585,895 __________ _________ 5,373,053 2,294,548Direct costs- ongoing (243,700) (179,571)- acquisition (2,012,703)- discontinued - (7,240) __________ _________ (2,256,403) (186,811) Net fee income 3,116,650 2,107,737 Administrative expenses- ongoing (819,675) (812,325)- acquisition (1,979,750) -- discontinued - (1,384,934)- exceptional item (185,700) - __________ _________ (2,985,125) (2,197,259)Operating profit /(loss)- ongoing (264,188) (283,243)- acquisition 581,413 -- discontinued - 193,721- exceptional item (185,700) - __________ _________ 131,525 (89,522) __________ _________Share of operating (loss)/profit inassociate (78,756) 87,133Amortisation of goodwill - (12,000)Impairment loss in associatedundertaking (155,920) - __________ _________ (234,676) 75,133 __________ _________Loss before interest (103,151) (14,389)Profit on disposal of subsidiary - 609,844Interest receivable and similar income 134,253 79,530Interest payable and similar charges (42,109) (487) __________ _________(Loss)/profit before taxation (11,007) 674,498 Prime People Plc Consolidated income statement for the 15 months ended 31 March 2006 (continued) Note 2006 2004 restated £ £ Taxation (15,510) (2,112) __________ ___________ __________ ___________Profit after tax for continuing activities 52,239 585,253Share of (loss)/profit after tax in associate (78,756) 87,133 __________ ___________(Loss)/profit for the periodattributable to equity shareholders (26,517) 672,386 ========== =========== (Loss)/earnings per share 2- Basic (0.52p) 18.25p- Diluted (0.52p) 17.65p - Continuing basic 6.69p (4.50p)- Continuing diluted 6.37p (4.50p) All recognised gains and losses are included in the profit and loss account. Prime People Plc Consolidated statement of changes in shareholders' equity at 31 March 2006__________________________________________________________________________ Called up Shares to Share Other Retained Total Share be issued premium reserve earnings capital account £ £ £ £ £ £ At 1 January 2004 368,467 - 909,925 173,077 575,476 2,026,945 Profit for the year - - - - 672,386 672,386 Goodwill eliminated on disposal of subsidiary - - - - 641,006 641,006 _________ _________ _________ ________ _________ __________At 31 December 2004 368,467 - 909,925 173,077 1,888,868 3,340,337 New shares issued 715,559 - 5,304,441 - - 6,020,000 Consideration sharesto be issued - 1,000,000 - - - 1,000,000 Equity dividends - - - - (46,090) (46,090) Loss for the year - - - - (26,517) (26,517) _________ _________ _________ ________ _________ __________At 31 March 2006 1,084,026 1,000,000 6,214,366 173,077 1,816,261 10,287,730 ========= ========= ========= ======== ========= ========== Prime People Plc Consolidated balance sheet at 31 March 2006______________________________________________________________________________ 2006 2004 restated £ £AssetsNon-current assetsGoodwill 9,769,229 -Property, plant and equipment 259,861 44,028Investment in associate - 411,676Deferred tax asset 74,669 - __________ ___________ 10,103,759 455,704Current assetsInvestment held for sale 177,000 -Trade and other receivables 3,332,890 262,052Cash and cash equivalents 317,877 2,835,981 __________ ___________ 3,827,767 3,098,033 __________ ___________ Total assets 13,931,526 3,553,737LiabilitiesCurrent liabilitiesFinancial liabilities - borrowings 445,001 23,297Trade and other payables 1,771,922 177,598Current tax liabilities 303,749 8 __________ ___________ 2,520,672 200,903 __________ ___________ Non-current liabilitiesFinancial liabilities - borrowings 1,123,124 12,497 __________ ___________ 1,123,124 12,497 __________ ___________Total liabilities 3,643,796 213,400 __________ ___________ Net assets 10,287,730 3,340,337 ========== =========== Prime People Plc Consolidated balance sheet at 31 March 2006 (continued) 2006 2004 restated £ £Capital and reserves Called up share capital 1,084,026 368,467Share premium account 6,214,366 909,925Other reserve 173,077 173,077Consideration shares to be issued 1,000,000 -Retained earnings 1,816,261 1,888,868 __________ ___________Equity shareholders' funds 10,287,730 3,340,337 ========== =========== Prime People Plc Consolidated cash flow statement for the 15 months ended 31 March 2006______________________________________________________________________________ Note 2006 2004 restated £ £Cash flows from operating activitiesCash generated by operations 3 154,792 (93,986)Taxation received 4,815 74,350Corporation tax paid (589,679) - __________ ___________Net cash used in operating activities (430,072) (19,636) Cash flows from investing activitiesInterest received 134,253 79,530Interest paid (42,109) (487)Purchase of subsidiary undertaking (9,875,994) -Net cash acquired with business 202,368 -Proceeds from sale of subsidiaryundertaking - 1,905,284Net cash disposed with subsidiary - (53,986)Net purchase of property, plant andequipment (12,791) (35,792) __________ ___________ Net cash (from)/used in investing activities (9,594,273) 1,894,549 __________ ___________ Cash flows from financing activitiesIssue of ordinary share capital 6,020,000 -New bank loan 1,400,000 -Capital element of finance leases (9,373) (2,501)Dividend paid to shareholders (46,090) - __________ ___________ Net cash used in/(from) financing activities 7,364,537 (2,501) __________ ___________ Net (decrease)/increase in cashand cash equivalents (2,659,808) 1,872,412 Cash and cash equivalents at 1 January 2005 2,820,182 947,770 __________ ___________ Cash and cash equivalents at 31 March 4 160,374 2,820,182 ========== =========== Prime People Plc Notes to the preliminary announcement for the 15 month period ended 31 March2006______________________________________________________________________________ 1 Accounting policies The principal accounting policies applied in the preparation of these financialstatements are outlined below. Basis of preparation These financial statements have been prepared for the first time in accordancewith International Financial Reporting Standards (IFRS) and the InternationalFinancial Reporting Interpretations Committee (IFRIC) interpretations applicableat the balance sheet date, and with those parts of the Companies Act 1985applicable to companies reporting under IFRS. These financial statements havebeen prepared under the historical cost convention. The Group is required toprovide comparative information for the prior reporting period. The disclosures required by IFRS 1 concerning the transition from UK GAAP toIFRS did not require the company to change accounting policies resulting in achange in the value of the figures reported in the accounts. The only changesidentified under IFRS have been in the presentation of the figures. The group used the equity accounting method to include the group's share ofoperating profit and corporation tax charge, for its associated undertaking. Inthe current period the associated undertaking has been written down to its fairvalue. 2 Earnings per share Earnings per share (EPS) has been calculated in accordance with IAS 33 "Earningsper share" and is calculated by dividing the (loss)/profit attributable toordinary shareholders by the weighted average number of ordinary shares in issueduring the year. Earnings and weighted average number of shares used in the calculations areshown below. Prime People Plc Notes to the preliminary announcement for the 15 month period ended 31 March2006 (continued)______________________________________________________________________________ 2006 2004 restated £ £ Retained (loss)/profit for basic (loss)/earningsper share (26,517) 672,386Tax on (loss)/ profit 15,510 2,112Exceptional item 185,700 -Loss/(profit) arising from associate undertaking 234,676 (75,133)Operating profit from discontinued business - (193,721)Profit on disposal of subsidiary - (609,844) ________ ________Profit before tax, exceptional items 409,369 (204,200)Taxation (71,220) 38,564 ________ ________Adjusted retained profit/(loss) for adjustedearnings per share 338,149 (165,636) ======== ======== Number NumberWeighted average number of sharesused for basic and continuing earnings per share 5,052,844 3,684,670Dilutive effect of share options and shares to beissued 257,522 124,126 ________ ________Diluted weighted average number of sharesused for diluted earnings per share 5,310,366 3,808,796 ========= ========= The weighted average number of shares in 2004 has been calculated as if theconsolidation of every 10 issued ordinary shares of 1p each into one new ordinaryshare of 10p each had taken place at the beginning of the year. Pence PenceBasic earnings per share (0.52p) 18.25pDiluted earnings per share (0.52p) 17.65p Continuing basic earnings per share 6.69p (4.5p)Continuing diluted earnings per share 6.09p (4.5p) Discontinued basic earnings per share - 22.75pDiscontinued diluted earnings per share - 22.15p Prime People Plc Notes to the preliminary announcement for the 15 month period ended 31 March2006 (continued)______________________________________________________________________________ 3 Reconciliation of operating profit/(loss) to net cash inflow/(outflow) fromoperating activities Ongoing Discontinued Total Total 2006 2004 2006 2004 2006 2004 £ £ £ £ £ £ Group operatingprofit/(loss) 131,525 (283,243) - 193,721 131,525 (89,522) Depreciation 38,127 11,189 - 22,595 38,127 33,784 Loss/(profit) on saleof tangiblefixed assets 90 (1,800) - - 90 (1,800) Increase indebtors (205,943) (41,329) - (114,232) (205,943) (155,561) Increase/(decrease)in creditors 190,993 193,676 - (74,563) 190,993 119,113 _________ ________ ________ ________ ________ ________Net cash inflow/(outflow) fromoperatingactivities 154,792 (121,507) - 27,521 154,792 (93,986) ========= ========= ======== ========= ========= ========= Prime People Plc Notes to the preliminary announcement for the 15 month period ended 31 March2006 (continued)______________________________________________________________________________ 4 Analysis of net funds/(debt) At At 1 January Cash 31 March 2005 flow 2006 £ £ £ Cash at bank and in hand 2,835,981 (2,518,104) 317,877Bank overdraft (15,799) (141,704) (157,503) __________ __________ __________ 2,820,182 (2,659,808) 160,374 Bank loans due within one year - (280,000) (280,000)Bank loans due after one year - (1,120,000) (1,120,000)Hire purchase obligations (19,995) 9,373 (10,622) __________ __________ __________Total funds/(debt) 2,800,187 (4,050,435) (1,250,248) ========== ========== ========== 5 Nature of the financial information The financial information does not constitute statutory accounts as defined insection 240 of the Companies Act 1985. The financial information for the periodended 31 March 2006 is extracted from the group's financial statements to thatdate which received an unqualified auditors' report and will be filed with theRegistrar of Companies. The financial information for the year ended 31 December2004 is extracted from the financial statements to that date which received anunqualified auditors' report and have been filed with the Registrar ofCompanies. 6 Availability of Annual Report Copies of the annual report will be posted to shareholders on 12 June.Additional copies will be available to the public, free of charge, from theCompany's registered office: 40a Dover Street, Mayfair, London W1S 4NW. This information is provided by RNS The company news service from the London Stock Exchange