WGB.L Regulatory News (WGB)

For immediate release 16 April 2013

WALKER GREENBANK PLC

("Walker Greenbank" or "the Company")

Preliminary Results for the year ended 31 January 2013

Walker Greenbank PLC (AIM: WGB), the luxury interior furnishings group whose brands include Sanderson, Morris & Co., Harlequin, Zoffany and Scion, is pleased to announce its preliminary results for the 12 month period ended 31 January 2013.

Highlights

·; Sales up 2.3% to £75.7 million (2012: £74.0 million) with strong growth in the US up 17.6%

·; Strong performance from the new contemporary brand Scion and brand offshoot Sanderson Home

·; Adjusted profit before tax* up 11.7% at £6.38 million (2012: £5.72 million)

·; Unadjusted profit before tax of £4.93 million (2012: £4.89 million)

·; Licensing income up 18.2% to £1.88 million (2012: £1.59 million) with strong growth in Japan

·; Adjusted earnings per share* up 14.6% at 9.41p per share (2012: 8.21p per share)

·; Final dividend up 25.0% to 1.25 p per share (2012: 1.00p per share)

·; Net funds of £1.2 million, the first time the Group has reported net funds since January 2000

* Adjusted for accounting charges relating to share-based incentives and defined benefit charge

Terry Stannard, the Chairman of Walker Greenbank, said: "The current financial year has started well. In the first 11 weeks, our UK manufacturing base has performed strongly and our brand sales are in line with the strong comparator period last year.

"We are excited by our new product launches, including the second collection from the Scion brand, and by the opportunities to develop our business internationally. We look forward with confidence to the year ahead."

For further information:

CHAIRMAN'S STATEMENT

Overview

I am pleased to report that the Group continues to make encouraging progress in sometimes difficult global markets. This progress reflects our continued focus on developing our product offering, manufacturing capability and international sales potential.

The year has seen significant growth in the US for the first time since 2008, with brand sales increasing 17.6% in reportable currency, 16.7% in constant currency.

The US performance has been driven by the success of the Harlequin brand, which has increased sales year-on-year by 39.4% and is now the Group's biggest selling brand in the US market. We believe the US offers significant potential for all our brands and, to assist in taking advantage of this opportunity, we are currently extending our flagship showroom in New York.

I am pleased to report that we have grown sales in the UK, our largest market, by 2.5%. This growth has been achieved in a difficult marketplace but we have seen good responses to our new collections, brand development and manufacturing investment. The challenging conditions in the Eurozone are well documented but we have seen some improvement in sales in the second half. Year on year sales in the Eurozone have declined 9.4% in reportable currency, 3.0% in constant currency.

Outside of the Middle East, we have grown our Rest of the World sales by 4.3%, with most major markets making progress including growth in the Far East of 5.7%, Eastern Europe 3.3%, Australasia 9.2% and a doubling of sales in South America. The Middle East has seen a sales decline of 30.8% but this is predominantly due to two significant contracts in the prior year.

We continue to make significant progress in extending our product range. In the first half, we launched Scion, a completely new interiors brand aimed at younger customers, and Sanderson Home, a competitively priced brand extension. In the second half, we have added an entirely new trimmings range for both Harlequin and Sanderson together with a Harlequin wallpaper collection developed with Orla Kiely, the internationally acclaimed designer. In addition, we have extended our product offering through new licensing arrangements for the Scion brand in bedding, rugs and towels, helping us grow our licensing income 18.2%.

Our UK manufacturing base is a key asset that differentiates us from others in our industry and puts us at the forefront of innovation in printing techniques. In the second half we commissioned our first high speed digital printer at Standfast, our fabric printing factory, and our first digital printer at Anstey, our wallpaper factory. These new digital printers have helped us grow our manufacturing sales and profits on what was a record year last year. I am particularly pleased with the 17.5% growth in sales to export customers from our manufacturing base.

Financials

Total sales increased 2.3% to £75.7 million (2012: £74.0 million). The operating profit before an accounting charge relating to the Long-Term Incentive Plan ('LTIP') rose 10.2% to £6.58 million (2012: £5.97 million). The profit from operations was up 5.0% to £5.83 million (2012: £5.56 million). The interest charge has reduced from £254,000 to £193,000 due to lower average borrowings. The defined benefit pension charge has risen from £407,000 to £700,000 as a consequence of a reduction in the expected return on scheme assets.

Profit before tax before the LTIP accounting charge and the increased defined benefit charge was £6.38 million (2012: £5.72 million) an increase of 11.7%. The profit before tax after the two charges was £4.93 million (2012: £4.89 million). The profit after tax was £3.96 million (2012: £3.83 million) and adjusted earnings per share were up 15% after removing the LTIP accounting charge and defined benefit charge.

The cash inflow from operating activities was £5.80 million (2012: £4.28 million), reflecting strong operating profits and continued investment in product. The Group has continued to invest with capital expenditure of £3.12 million (2012: £2.54 million). Despite this investment, the Group had net funds at the year end compared with a net debt of £0.67 million a year ago. This is the first time the Group has returned to net funds since 2000.

Dividend

During the year, the Group has paid a final dividend for the year to 31 January 2012 of 1.00p per share and an interim dividend of 0.23p per share. The Directors recommend the payment of a final dividend of 1.25p per share (2012: 1.00p) which will be payable on 9 August 2013 to shareholders on the register on 19 July 2013. This brings the total dividend for the year to 1.48p per share (2012: 1.20p) an increase of 23.3%.

People

On behalf of the Board, I would like to thank all of our management and employees for their contribution to another successful year.

Outlook

The current financial year has started well. In the first 11 weeks, our UK manufacturing base has performed strongly and our brand sales are in line with a strong comparator period last year.

We are excited by our new product launches, including the second collection from the Scion brand, and by the opportunities to develop our business internationally. We look forward with confidence to the year ahead.

Terry Stannard

Non-Executive Chairman

15 April 2013

CHIEF EXECUTIVE'S REVIEW

Strategy

It is pleasing to report that the Group continues to make progress with the implementation of its strategy, which comprises:

·; International expansion - to focus on the distribution and marketing of our brands in the important European, Asia Pacific and North American markets where we see significant potential to grow our existing market share and to invest in the exciting growth opportunities in other international markets;

·; Market penetration - to continue to develop our brands in the UK and internationally through extension of market positions;

·; Lifestyle product extension - to profit from the global recognition of the Group's heritage brands, Sanderson and Morris & Co, and the contemporary design excellence of the Harlequin and the recently launched Scion brand, by broadening the product range and exploiting the considerable licensing opportunities;

·; Extending manufacturing capability - to continue to invest in the latest printing techniques and to promote and grow the international sales opportunities of being a quality UK manufacturer; and

·; Acquisitions - to actively evaluate acquisition opportunities that fit synergistically with our current brand portfolio with the objective of further advancing our earnings growth.

Overview

I am pleased to report that we have continued to make progress with further growth in sales and profits.

Our Brands have benefited from the continued investment in design, marketing and from new product launches. We have extended our product range into areas of the market that we haven't previously targeted through the launch of the new Scion brand and Sanderson Home brand extension. Total Brands sales increased 2.5% to £58.9 million. In a difficult UK market, Brands sales increased 2.5% and export sales grew 1.5% to £22.3 million with an extremely difficult Eurozone market affecting growth.

The start of the recovery in the US market seen last year has accelerated, leading to growth in sales of 17.6% to £6.4 million in reportable currency and 16.7% in local currency. Sales in the Far East are up 5.8% to just over £3.0 million helped by strong growth in China, up 9.3%, and India, up 62.2% in what is currently a small territory for the Group with obvious potential. Other highlights include the doubling of sales in South America and growth of 9.2% in Australasia. These encouraging figures have been adversely impacted by the negative trading environment in the Eurozone where sales declined 9.4% to £6.1 million in reportable currency, but only 3.0% in constant currency. The worst performing regions were Benelux, France, Spain and Southern Ireland. International sales have also been affected by a drop of 30.8% in sales in the Middle East due to two substantial contracts in the previous year not being repeated.

Global licensing income has grown 18.2% to £1.88 million with both the UK and overseas growing strongly. In the UK our established bed-linen licensee, Bedeck, achieved significant growth with the launch of a new range for Sanderson selling particularly well. The licensed products developed at the end of the previous year by Portmeirion tableware, Blueprint stationery, Elstead Lighting and Brink & Campman rugs have performed well. Amongst our overseas licensees we have seen significant growth in Japan following the 150th anniversary of Morris & Co. last year. Notably the Scion brand has recently signed licensing arrangements for bedding, rugs and towels within its first year of launch. Whilst this is a fledging brand, the nature of its designs translates particularly well to licensed product and is seen as an exciting opportunity for the Group.

Manufacturing has had another successful year increasing both sales and profits on what was a record year last year. There has been continued investment in digital printing at both the fabric and wallpaper printing sites with a significant investment at Standfast in its first high speed digital printer and a smaller investment at Anstey in its first digital printer.

The Brands

The Brands segment incorporates global trading from our internationally recognised brands including our overseas subsidiaries in the US and France.

The Brands have increased sales by 2.5% over last year to £58.9 million. The Brands' operating profits grew 9.6% to £5.89 million helped by strong licensing income and improved operating margins.

Harlequin & Scion

Harlequin has grown its total sales 4.0% over the same period last year to £25.2 million and remains the UK's leading mid-market contemporary brand. Sales in the UK and the Eurozone were both slightly up on last year. Sales in the US have seen significant growth, up 39.4%, and Harlequin is now the largest selling of the Group brands in the US market. Growth in the Far East was significantly up, by 20.6%, with the key markets of Japan and China performing well. Sales in Russia were down 21.4%, due to disruption caused by a change in distributor half way through the year, and sales in the Middle East were down 25.0%, due predominantly to a significant contract last year not being repeated. These sales shortfalls have been compensated by strong growth in South America, where sales have more than doubled, and Australasia, up 20.5%.

The Scion brand was launched in February 2012. This brand is an affordable contemporary brand aimed at young, aspirational and fashion-aware customers in an adjacent market segment to that of Harlequin. The launch has been very successful and trading is ahead of internal projections. Scion won the prestigious Gold Award in November 2012 for Best Fabric in House Beautiful magazine's awards 2012. The designs within Scion have proved to be very suited to licensed product with ranges of rugs, bed-linen and towels launched during the year, which has helped grow licensing income 47.5%. In September Harlequin also launched a stunning new collection of wallpapers through a collaboration with Orla Kiely, the internationally acclaimed designer.

Arthur Sanderson & Sons incorporating the Morris & Co brand

Total sales were up 0.2% over the same period last year to £20.0 million. The UK and the US have been the drivers of growth with increases of 2.7% and 17.4% respectively. Sales in Western Europe have been particularly badly affected by the Eurozone crisis and are down 14.6% on last year. Sales in the Far East were down 5.7% on last year due to the boost to last year's sales from the 150th anniversary celebration of Morris & Co.. Sales in the Middle East are also down 18.8% due primarily to a significant contract last year not being repeated. These sales shortfalls have been mitigated by strong growth in Eastern Europe and South America, up 8.3% and 36.8% respectively.

In the second half Sanderson launched the Sanderson Home brand extension. This brand is an exciting offshoot and combines keen pricing with aspirational English design. It takes the Sanderson brand into a new area of the market place whilst retaining the quality and style for which Sanderson is renowned worldwide. Sales so far are significantly ahead of internal projections. Licensing income is up 16% on last year driven by a strong performance in Japan, following the 150th anniversary of Morris & Co. last year, and, encouragingly, new licence arrangements particularly Portmeirion tableware and Blueprint stationery.

Zoffany

Zoffany is positioned at the upper end of the premium market. Total sales have grown by 1.2% over the same period last year to £11.0 million. Zoffany's two largest markets, the UK and US, have encouragingly grown 7.7% and 2.9% respectively. Sales in Western Europe were affected by the Eurozone crisis and were down 16.0%. Elsewhere sales were up 2.0% with the exception of the Middle East where sales were 48.2% lower than the previous year due to two significant contracts last year not repeated.

Manufacturing

Manufacturing has delivered another strong performance with both sales and profitability increasing to record levels. Total sales grew 4.9% driven by an increase in international sales of 17.5% leading to an increase in profits of 4.0% to £2.7 million (2012: £2.6 million).

Anstey

Anstey, our wallpaper printing business, had a very successful year with sales growing by 16.6% to £15.7 million. Third party sales in the UK were up 15.2% and third party export sales were up 55.7%. Internal sales to our own brands also grew by 11.8%.

Anstey has continued to add new printing techniques to its portfolio with investment in its first digital printer during the year. The digital printing technique was utilised in Zoffany's Melissa White wallpaper collection launched in February. The second Momentum collection from Harlequin, which was launched in the autumn of 2012, featured a distinctive textured effect from the scatter machine purchased last year. This growing range of techniques has helped produce new wallpapers that have helped to increase market interest in wallpaper and attracted new export customers. We continue to innovate at Anstey with a significant investment planned for the coming year in a hybrid rotary/gravure machine, which will be able to create unique effects as well as enhance our capacity and efficiency.

Standfast

Standfast, our fabric printing factory, has seen a decline in annual sales of 5.5% to £14.3 million. Third party sales declined 12.6% with sales to our own brands increasing 6.8% with a stronger launch of new print collections from the Brands this year.

When launching a print collection using traditional printing techniques the customer has to make a significant investment and, during a difficult market, it is not surprising that customers have been more cautious. Standfast has seen volumes decline for these traditional techniques. Digital printing helps reduce the level of initial investment in a new collection and sales from digital have grown 76% compared with last year. Standfast continues to invest in digital printing and the first fast-run printer was commissioned during the second half of the year.

Summary

We continued to exploit the potential of our brands during the year and to extend the areas of the marketplace in which we operate. We launched an entirely new brand in Scion and a brand extension in Sanderson Home, both of which have been well received. Our manufacturing capability has been extended through our investment in digital printing at our wallpaper and fabric factories.

We achieved encouraging growth in many of our international markets, including an excellent performance in the US. During the current year, we will continue to build our business internationally and remain confident of continued progress

John Sach

Group Chief Executive

FINANCIAL REVIEW

Income Statement and Exceptional Items

The Chairman's Statement and Chief Executive's Review provide an analysis of the key factors impacting the revenue and operating profit. In addition to the information on our brands and production facilities included in these reports, the Group has included in note 2 of this Preliminary announcement further information on our segments. This is the basis on which the Group presents its operating results to the Board of Directors which is considered to be the Chief Operating Decision Maker ('CODM') for the purposes of IFRS 8. There has been a change from last year in the information supplied to the CODM as overseas brand information has been amalgamated into the Brands segment.

Exceptional items are both material and their nature is sufficient to warrant separate disclosure and identification. There were no exceptional items in the year.

Long-Term Incentive Plan ('LTIP')

There has been a new award of shares during the year under the Long-Term Incentive Plan ("LTIP") with vesting conditions based on Total Shareholder Return ('TSR') with an adjusted profit before tax floor. There has been a charge of £746,000 (2012: £414,000) in the Income Statement relating to LTIP awards. At each accounting reporting date, January and July, the relative position of Walker Greenbank Plc amongst the comparator group in terms of TSR performance is calculated. The charge in the year is higher than last year as the relative position of Walker Greenbank Plc within the comparator group has risen which means the number of shares that would vest under each award has increased. This increase in the number of shares along with the increase in share price has resulted in a significant increase in the national insurance element of the charge for the period.

Interest

The net interest charge for the year was £193,000 (2012: £254,000) including amortisation of capitalised debt issue costs. The level of cost has reduced due to a reduction in the level of average borrowings during the year.

Net Defined Benefit Pension

The charge during the year was £704,000 (2012: £407,000). The level of expected return on scheme assets reduced significantly from the level in the previous year as this is based on the return on gilts at the beginning of each financial year and these had reduced significantly. Next year IAS19 (revised) will apply and there will be a decrease in the expected return on scheme assets. If applied this year the return on scheme assets would have been £42,000 lower.

Current Taxation

There is a small corporation tax charge of £16,000 (2012: £15,000) arising from withholding tax suffered on overseas licence income.

Deferred Taxation

Due to brought forward UK corporation tax losses of £9.1 million (2012: £12.6 million), the Group does not anticipate paying UK corporation tax in the immediate future. However, as the corporation tax losses that are being utilised have been recognised as a deferred tax asset, in the current and future years there will be a deferred tax charge in the Income Statement until such time as the losses have been fully utilised at which point the Group will incur and pay UK corporation tax. It is expected that given the current level of taxable profits within the main UK entity, Abaris Holdings Limited, the tax losses giving rise to the deferred tax asset will either be fully utilised or nearly fully utilised by January 2014.

The Group also continues to recognise the deferred tax asset arising from the pension deficit. Although there has been a reduction in the tax rate from 23% to 21%, as the pension deficit has increased during the year there has been a small increase in the associated deferred tax asset which has been recognised in the Statement of Comprehensive Income.

Earnings per share ('EPS')

The basic and diluted EPS was 6.89p (2012: 6.76p). The Group also reports an underlying EPS which excludes the impact of the LTIP charge and Net defined benefit pension charge as these can fluctuate due to external factors outside of the control of the Group. A better understanding of the underlying performance of the business is given after adjusting for these items.

Operating Cash Flow and Net Debt

The Group generated net cash inflow from operating activities during the year of £5,798,000 (2012: £4,282,000) reflecting a smaller increase in working capital than in the previous year.

The Group paid net interest of £209,000 (2012: £230,000), as the level of average borrowing reduced year on year. Capital expenditure was £3,119,000 (2012: £2,538,000) with significant investment in digital printing at Standfast and Anstey and the investment in a replacement IT system for the Brands which was implemented in the final month of the year. The depreciation and amortisation charge during the period was £2,048,000 (2012: £1,853,000). The Group will continue to invest in the Manufacturing facilities and will refurbish the New York showroom in the coming year so capital expenditure will remain high during the next 12 months.

The Group made additional payments to the Pension schemes of £1,077,000 (2012: £1,022,000) to reduce the deficit, part of the ongoing planned reduction, along with £507,000 (2012: £436,000) of regular contributions to fund scheme expenses.

Income tax of £640,000 (2012: £348,000) that arose on the vesting of an LTIP award was paid during the year.

The Group had net funds of £1,156,000 at the year end compared to net debt the previous year of £667,000 an improvement of £1,823,000. There is average debt during the year due to the timing and seasonality of revenues and investment in product. The average net debt improved by £1,934,000 to £4,748,000 (2012: £6,682,000).

The Group utilises facilities provided by Barclays Bank Plc. There is a term property facility of £1,800,000 (2012: £2,200,000) at the year end expiring in July 2017. There is also a receivables facility linked to the level of Trade Receivables which allows the Group to more effectively manage seasonal fluctuations in working capital. This facility was renewed on 31st January 2013 for a further 3 year term expiring in January 2016. The Group has replaced an Inventory facility during the year with a three year committed facility of £2.5 million. There were no borrowings at the end of the year for the receivables facility and committed facility. Under these facilities there was borrowing head room of £12,607,000 (2012: £11,257,000). The total facilities have a current limit of £16.50 million (2012: £16.50m).

All of the Group bank facilities remain secured by first fixed and floating charges over the Group's assets.

Pension Deficit

The pension deficit has increased this year. The key factors affecting the movement in the deficit have been: contributions from the Company to reduce the deficit; an increase in the liabilities of the scheme arising from lower discount rates and higher inflation expectations but an increase in scheme assets. The impact of these factors is shown as follows:

Dividends

During the year, the Group has paid a final dividend for the year to 31 January 2012 of 1.00p per share and an interim dividend of 0.23p per share. The Directors recommend the payment of a final dividend of 1.25p per share (2012: 1.00p) which will be payable on 9th August 2013 to shareholders on the register on 19th July 2013. This brings the total dividend for the year to 1.48p per share (2012: 1.20p) an increase of 23.3%.

Disposals

There were no major disposals during the year but the obsolete, fully depreciated, Brands IT system was replaced.

Going Concern

The Directors are confident, after having made appropriate enquiries that the Group and Company have adequate resources to continue trading for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.

Foreign Currency Risk

All foreign currencies are bought and sold centrally on behalf of the Group. Regular reviews take place of the foreign currency cash flows and unmatched exposures are covered by forward contracts wherever economically practical. Working capital exposures are hedged using currency swaps.

The Group does not trade in financial instruments and hedges are used for highly probable future cash flows and to hedge working capital exposures. There is a hedging asset of £63,000 (2012: £50,000 liability) at the end of the year in relation to US dollar and Japanese Yen forward contracts.

There is a liability of £15,000 (2012: £54,000 asset) arising from US dollar and Euro swaps used to hedge working capital exposures.

Credit Risk

The Group no longer seeks credit insurance as this is not a commercial solution to reducing credit risk. The Board reviews the internal credit limits of all major customers and reviews the credit risk regularly. The aging profile of trade debtors shows that payments from customers are close to terms however there have been specific expenses during the year. The current economic environment creates a significant level of risk and in addition to specific provisioning against individual receivables, a provision has been required of £284,000 (2012: £314,000) which is a collective assessment of the risk against non specific receivables.

Alan Dix

Group Finance Director

15 April 2013

Year ended 31 January 2013

Year ended 31 January 2013

Unaudited Consolidated Balance Sheet

As at 31 January 2013

Year ended 31 January 2013

Unaudited Consolidated Statement of Changes in Equity

Other Reserves

Unaudited Consolidated Statement of Changes in Equity continued

Other Reserves

Unaudited Notes to the Accounts

2. Segmental Analysis

The Group has identified its operating segments and applied aggregation criteria, as set out in IFRS 8, and has determined that the reportable segments of the Group are as follows:

- Brands - comprising the design, marketing, sales and distribution, and licensing activities of Sanderson, Morris & Co, Harlequin, Zoffany and Scion brands operated from the UK and its foreign subsidiaries in the US and France.

- Manufacturing - comprising the wall covering and printed fabric manufacturing businesses operated by Anstey and Standfast respectively.

This is the basis on which the Group presents its operating results to the Board of Directors of the parent company, which is considered to be the Chief Operating Decision Maker (CODM) for the purposes of IFRS 8. Additional revenue-only data is also reported to the CODM and is disclosed on the basis explained below. Other group wide activities and expenses, predominantly related to corporate head office costs, defined benefit pension costs, long term incentive plans expenses, taxation and eliminations of intersegment items, are presented within 'Eliminations and unallocated'.

2. Segmental Analysis continued

a. Reportable segment information

Year ended 31 January 2013

Year ended 31 January 2012

2. Segmental Analysis continued

The segmental revenues of the Group are reported to the CODM in more detail. One of the analyses presented is Brands export revenues, an analysis of which is shown below:

Revenue of the Brands reportable segments - revenue from retail operations in all territories where the sale is sourced from the United Kingdom Brands operations, including sales to overseas subsidiaries, together with contract and license revenue:

Revenue of the Manufacturing reportable segments - including revenues from internal sales to the group's Brands:

2 Segmental Analysis continued

b. Additional entity-wide disclosures

3. Analysis of profit from operations

4. Exceptional items

Items that are both material and whose nature is sufficient to warrant separate disclosure and identification are disclosed within the financial statements and classified within their relevant income statement category. In the current year and prior year, there are no exceptional items.

5. Finance costs

Notes to the Accounts continued

Factors affecting current and future tax charges

The Group does not anticipate that UK corporation tax will become payable on profits within the immediate future due to the availability of tax losses of approximately £9.1 million (2012: £12.6 million).

8. Deferred income tax

A net deferred tax asset of £2,015,000 (2012: £2,850,000) has been recognised in respect of tax losses and other temporary differences.

On 18 May 2012 960,000 treasury shares were transferred into the Walker Greenbank PLC EBT; following this transaction Walker Greenbank PLC had no treasury shares. On 25 May 2012 the Walker Greenbank PLC EBT purchased 191,119 shares of 1p each in the Company at 70.5p per ordinary share. Following this transaction Walker Greenbank's issued ordinary share capital with voting rights consists of 59,006,162 (2012: 59,006,162) ordinary shares of which no ordinary shares are held in treasury (2012: 960,000) and a further 1,243,114 ordinary shares are held by the Walker Greenbank PLC EBT (2012: 1,093,541) with a cost of £255,364 (2012: £224,638). Shares held in treasury or by the EBT are treated as cancelled when calculating EPS. The total number of shares held in the EBT at the year end represented 2.1% (2012: 1.9%) of the issued shares. The market value of shares held by the EBT at 31 January 2013 was £1,000,707 (2012: £565,907). The total number of shares held in treasury at the year end represented 0% (2012: 1.63%) of the issued shares. The market value of these shares at 31 January 2013 was £nil (2012: £496,800).

10. Trade and other receivables

The Receivables facility provided by Barclays in place at the end of the previous financial year was renewed in January 2013 for another three year term. The Inventory facility in place at the end of the previous year was replaced by a Committed facility in January 2013 and is available for a three year period. Other non-cash changes are capitalisation and amortisation of issue costs relating to the borrowings.

12. Cash generated from operations

14. Post Balance Sheet Event

The Directors have recommended the payment of a final dividend of 1.25 pence per share, at a total cost of £722,000 which is subject to the approval of shareholders at the annual general meeting on 26 June 2013.