Interim Results

16 Nov 2006 07:03

Bristol & West PLC16 November 2006 BRISTOL & WEST GROUP RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2006 Commentary The branch network of Bristol & West plc was sold in September 2005, accordinglythe results have been split between "continuing" and "discontinued" operations.The latter element shown in the period ending 30 September 2005 represents thegain on disposal of the business and its operating result up to the date ofdisposal. The continuing operations of the Bristol and West Group (the "Group") have seenvery strong growth in profit before taxation of 38% for the six months ended 30September 2006 compared to the equivalent period last year. Following the saledescribed above, continuing operations now primarily represent residentialmortgage lending. The main driver of the increase in profit before taxation has been the strengthof residential mortgage lending, where the book has grown by 15% from itsSeptember 2005 level. This increase has been associated in particular withgrowth in the specialised categories of buy-to-let and self-certified lending,which has driven net interest income ahead of the levels achieved at September2005. The overall result for the period has benefited from a reduced operating costbase compared with last year, as a consequence of successful cost reductionprogrammes. The continuation of low levels of impairment charge on loans andadvances which reflects the high quality of the loan book has also been afeature of this period's performance. Unaudited Unaudited 6 months to 6 months to 30/09/06 30/09/05 £m £mContinuing operations Interest and similar income 645.5 454.9Interest expense and similar charges (548.0) (362.1) ---------- ---------Net interest income 97.5 92.8 Fee and commission income 5.3 5.4Fee and commission expense (0.1) (0.4) ---------- ---------Net fee and commission income 5.2 5.0 Net trading income 1.8 (2.9)Other operating income 2.7 5.6Impairment losses on loans and advances 0.1 (0.1)Operating expenses (53.9) (61.8) ---------- ---------Profit before taxation from continuingoperations 53.4 38.6 Taxation (14.8) (11.3) ---------- ---------Profit for the period from continuingoperations 38.6 27.3 Discontinued operations Result for the period from discontinuedoperations - 125.3 ---------- ---------Profit for the period attributable toequity shareholders 38.6 152.6 ---------- --------- Earnings per share expressed in pence pershare- Basic 6.3p 24.9p- Diluted 5.5p 21.8pEarnings per share from continuingoperations- Basic 6.3p 4.5p- Diluted 5.5p 3.9p--------------------------------- ---------- --------- BRISTOL & WEST GROUP BALANCE SHEET AS AT 30 SEPTEMBER 2006 Unaudited Unaudited 30/09/06 30/09/05 £m £mAssets Cash and balances with central banks - 8.1Loans and advances to banks 2,301.7 2,051.3Loans and advances to customers 22,677.0 19,655.6Financial assets at fair value 332.4 334.5Derivative financial instruments 112.6 79.1Intangible assets 36.4 36.7Property, plant and equipment 52.5 70.1Other assets 51.2 44.0 ---------- ---------Total assets 25,563.8 22,279.4 ---------- --------- LIABILITIES Deposits from other banks 20,282.2 17,838.0Other deposits 443.1 414.8Derivative financial instruments and othertrading liabilities 68.6 69.0Due to customers 3,316.7 2,551.6Debt securities in issue 53.9 69.2Other borrowed funds 78.6 78.6Other liabilities 375.5 296.1Provisions 34.2 39.7Current tax liabilities 21.9 25.1Deferred tax liabilities 8.6 2.0Retirement benefit obligations 53.8 69.4 ---------- ---------Total liabilities 24,737.1 21,453.5 ---------- --------- EQUITYShare capital 306.6 306.6Retained earnings 494.5 494.2Other reserves 25.6 25.1 ---------- ---------Total equity 826.7 825.9 ---------- --------- ---------- ---------Total equity and liabilities 25,563.8 22,279.4 ---------- --------- BRISTOL & WEST GROUP CASHFLOW FOR THE SIX MONTHS TO 30 SEPTEMBER 2006 Unaudited Unaudited 6 months to 6 months to 30/09/06 30/09/05 £m £m Net cash flow from operating activities Profit before tax 53.4 168.1 Adjusted forDepreciation and amortisation 4.4 2.2Impairment losses on loans and advances tocustomers (0.1) 0.1Cash inflow relating to sale of branch networkincluded in investing activities - (124.2)Profit on disposal of intangible assets andproperty, plant and equipment (0.2) -Other non-cash movements 17.8 14.9 ---------- --------- 75.3 61.1Changes in operating assets and liabilities Loans and advances to banks (474.2) (457.7)Loans and advances to customers (1,135.5) (2,139.5)Other assets (12.7) 52.8Deposits from other banks 1,303.9 7,068.3Due to customers 399.1 (4,159.5)Debt securities in issue (7.4) (10.0)Other liabilities 32.6 32.1Provisions (8.8) (2.3) ---------- --------- 97.0 384.2Taxes paid (6.1) (9.8) ---------- ---------Net cash from operating activities 90.9 374.4 Cash flows from investing activities Net investment in intangible assets and property,plant and equipment (2.1) (1.7)Cash inflow from sale of branch network - 146.0Subordinated liabilities (21.8) (22.1) ---------- ---------Net cash (used in) / from investing activities (23.9) 122.2 Cash flows from financing activities Subordinated debt issue 30.0 -Capital repayment of finance lease (0.2) (0.2) ---------- ---------Net cash from / (used in) financing activities 29.8 (0.2) ---------- ---------Net increase in cash and cash equivalents 172.1 557.5 ---------- --------- BRISTOL & WEST GROUP RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2006 NOTES This report is compiled to meet UK Listing Authority requirements for Bristol &West plc preference shareholders. The most recent dividend was paid topreference shareholders on 15 November 2006 for the period from 15 May 2006 to14 November 2006 inclusive. The dividend rate is fixed at 8.125%. From 1 January 2005 all listed companies in the EU are required to produceconsolidated accounts prepared under IFRS. The Group has fully implemented IFRSfrom 1 April 2005 and has produced its first full IFRS accounts for the yearending 31 March 2006. The accounting policies followed in this interim statementare the same as the accounting policies followed in the accounts for the yearended 31 March 2006. Certain amounts have been restated as at 30 September 2005 as a result offinalisation of IFRS transitional adjustments and reclassifications. This information is provided by RNS The company news service from the London Stock Exchange