TIDMMBE TIDMMWB
RNS Number : 5980F
MWB Business Exchange Plc
28 April 2011
FOR IMMEDIATE RELEASE
28 APRIL 2011
MWB BUSINESS EXCHANGE PLC
SECOND INTERIM REPORT, 31 DECEMBER 2010
MWB Business Exchange Plc is the UK's second largest provider of
flexible office space and meeting rooms. The organisation currently
operates a total of 66 centres focused on central London and key
regional business centres.
Contact:
MWB Business Exchange Plc
Richard Balfour-Lynn, Chairman Tel: 020 7706 2121
John Spencer, Chief Executive Tel: 020 7868 7268
Keval Pankhania, Finance Director Tel: 020 7868 7255
Baron Phillips Associates
Baron Phillips Tel: 020 7920 3161
Brewin Dolphin Limited
Sandy Fraser Tel: 0845 213 2072
This Second Interim Report has been prepared solely to provide
additional information to shareholders to assess the Group's
strategies and the potential for these strategies to succeed. It
should not be relied on by any other party or for any other
purpose.
This announcement contains certain forward-looking statements
with respect to the financial condition, results of operations and
businesses of MWB Business Exchange Plc. These statements are made
by the directors in good faith based on the information available
to them up to the time of their approval of this Report. However,
such statements should be treated with caution as they involve risk
and uncertainty because they relate to events and depend upon
circumstances that will occur in the future. There are a number of
factors that could cause actual results or developments to differ
materially from those expressed or implied by these forward-looking
statements. The continuing uncertainty in global economic outlook
inevitably increases the economic and business risks to which the
Group is exposed. Nothing in this announcement should be construed
as a profit forecast.
CHIEF EXECUTIVE'S REPORT
In line with MWB Group Holdings Plc, our 72% shareholder, we are
extending our financial year end to 30 June 2011 and issuing a
second interim statement covering the six months to 31 December
2010.
Over the six months to 31 December 2010 total group occupancy
improved marginally to 84% compared to the first six months of
2010. Revenue for the period rose to GBP55.1m, up from GBP54.3m,
while EBITDA fell slightly from GBP757,000 (restated, see notes 1
and 4 to the financial statements) to GBP512,000. Pre-tax losses
for the second half of 2010 were GBP2.8m against GBP2.2m (also
restated) for the six months to June.
There is little doubt that the last six months of 2010 were more
demanding than anticipated, with the business environment remaining
challenging. Workstation rates however began to stabilise and there
were some early indications of more positive market conditions,
particularly in our core area of activity - central London. As a
result of these conditions our recovery has been slower to
materialise than we initially planned.
The second half of 2010 witnessed a stronger commercial property
lettings market driven by an improving economic climate, which,
coupled with a lack of supply of Grade A space, is now seeing rents
and therefore workstation rates improve in central London.
We are also beginning to benefit from the acquisition of the
former MLS centres and our two new centre openings in Knightsbridge
and Paddington. The MLS centres have now been fully integrated into
our CEC brand, and it is pleasing to report that occupancy there
has risen from 78% in June 2010 to 83% by December 2010. Meanwhile,
our two new Business Exchange centres have become well established
in their respective markets and at 31 December 2010 had achieved
mature occupancies of 88% and had generated almost GBP3m in
revenue. We will only expand further where we determine a real
demand for our products and services.
One of our key focuses has been to re-balance our revenue
streams, in order to reduce our exposure to a small number of
market sectors. I am pleased to report that we are now beginning to
reap the rewards of this strategy, as we have successfully balanced
our revenues between large corporates and small and medium sized
enterprises.
During the period, we completed a re-structure of our senior
management team, investing in highly experienced individuals with
very specific skill sets who have responsibility for developing key
aspects of the business. This enables us to concentrate resource on
those elements of the market where we see the greatest growth
opportunities.
The first quarter of 2011 has been encouraging as workstation
rates show early signs of improvement. The indications are that
market conditions are continuing to improve and we anticipate
further improvement in the months ahead. However, given the slow
pace of recovery to date, we now anticipate that any significant
improvements may be deferred into 2012, as we edge ever closer to
the 2012 Olympics.
Our strategy continues to focus on retaining Business Exchange's
position as the capital's leading provider of serviced offices and
meeting venues. Today we have a total of 42 London centres,
accounting for approximately 12,000 workstations and around 0.7m sq
ft of office space. This represents almost two-thirds of Business
Exchange's entire portfolio and reflects the importance we place on
a well located and well managed collection of centres in
London.
The management team also continue to focus on driving the rate
and yield through provision of prime high quality centres offering
the latest state-of-the-art technology and communications. We
continue to position Business Exchange at the premium end of the
market, offering exceptional business hospitality. Our current
investment programme is dedicated to maintaining our pre-eminent
position in London.
We firmly believe that our strategy of driving rate and yield
together with our London-centric premium offer will begin to
deliver over the coming 12 months. With that in mind, I view the
future with cautious optimism.
John Spencer
Chief Executive
28 April 2011
KEY FINANCIAL HIGHLIGHTS
The key performance indicators for the business, its trading
performance and selected balance sheet information for the periods
ended 31 December 2010 and 2009, are summarised below:-
Six months
Six months ended Twelve months
ended 31 December ended
31 December 2009 31 December
2010 Restated 2010
Operating statistics
Revenue GBP'000 55,117 55,032 109,403
EBITDA GBP'000 512 1,857 1,269
Occupancy at period
end (leased
centres only) % 84 82 84
Six months
Six months ended Twelve months
ended 31 December ended
31 December 2009 31 December
2010 Restated 2010
Financial
performance
(Loss) before tax GBP'000 (2,807) (489) (5,022)
Basic
(loss)/earnings per
share Pence (4.3) 0.8 (7.5)
At
At 31 December
31 December 2009
2010 Restated
Selected balance
sheet information
Property, plant and
equipment GBP'000 46,141 42,088
Net cash GBP'000 3,812 6,433
Equity attributable
to shareholders GBP'000 21,420 26,593
Figures for 2009 have been restated as explained in the notes to
the financial statements.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 31 December 2010
Six months
Six months ended Twelve months
ended 31 December ended
31 December 2009 31 December
2010 Restated 2010
Note GBP'000 GBP'000 GBP'000
------------------------- ----- ------------- ------------- --------------
Revenue 55,117 55,032 109,403
Cost of sales (56,734) (55,140) (112,341)
------------------------- ----- ------------- ------------- --------------
Gross (loss) (1,617) (108) (2,938)
Administrative expenses (1,047) (264) (1,971)
------------------------- ----- ------------- ------------- --------------
Results from operating
activities (2,664) (372) (4,909)
Finance income 15 79 208
Finance expense (158) (196) (321)
------------------------- ----- ------------- ------------- --------------
(Loss) before taxation (2,807) (489) (5,022)
Taxation - - (6)
------------------------- ----- ------------- ------------- --------------
(Loss) for the period (2,807) (489) (5,028)
========================= ===== ============= ============= ==============
Total comprehensive
income for the period 2 (2,807) (489) (5,028)
Attributable to:
Equity shareholders of
the Company (2,773) 541 (4,871)
Non-controlling
interests (34) (1,030) (157)
------------------------- ----- ------------- ------------- --------------
(2,807) (489) (5,028)
========================= ===== ============= ============= ==============
Basic and diluted
(loss)/earnings per
share attributable to
shareholders of the
Company 3 (4.3p) 0.8p (7.5p)
========================= ===== ============= ============= ==============
All amounts relate to continuing operations. The notes form part
of these financial statements.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
at 31 December 2010
31 December
31 December 2009
Note 2010 Restated
GBP'000 GBP'000
------------------------------------------- ----- ------------ ------------
Non-current assets
Intangible asset - goodwill 10,412 10,412
Property, plant and equipment 4 46,141 42,088
Trade and other receivables 1,048 2,062
------------------------------------------- ----- ------------ ------------
57,601 54,562
Current assets
Trade and other receivables 22,196 27,956
Cash and cash equivalents 3,812 6,433
------------------------------------------- ----- ------------ ------------
26,008 34,389
Total assets 83,609 88,951
------------------------------------------- ----- ------------ ------------
Current liabilities
Trade and other payables (40,893) (45,497)
(40,893) (45,497)
Non-current liabilities
Other payables and accruals (20,512) (17,955)
Provision for other liabilities
and charges (2,035) -
------------------------------------------- ----- ------------ ------------
(22,547) (17,955)
Total liabilities (63,440) (63,452)
------------------------------------------- ----- ------------ ------------
Net assets 20,169 25,499
=========================================== ===== ============ ============
Equity
Share capital 65 66
Share premium account 35,459 35,459
Capital redemption reserve 4 3
Merger reserve 38,831 38,831
Retained earnings (52,939) (47,766)
------------------------------------------- ----- ------------ ------------
Total equity attributable to shareholders
of the Company 21,420 26,593
Non-controlling interests (1,251) (1,094)
------------------------------------------- ----- ------------ ------------
Total equity 20,169 25,499
=========================================== ===== ============ ============
The notes form part of these financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 31 December 2010
Capital Non-
Share Share redemp-tion Merger Retained control-ling Total
capital premium reserve reserve earnings Total interests equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------- -------- -------- ------------ -------- --------- -------- ------------- --------
Six months ended
31 December
2009 Restated
At 1 July 2009 66 35,459 3 38,831 (48,453) 25,906 (64) 25,842
Total
comprehensive
income for the
period - - - - 541 541 (1,030) (489)
Share-based
payment charge - - - - 146 146 - 146
----------------- -------- -------- ------------ -------- --------- -------- ------------- --------
At 31 December
2009 66 35,459 3 38,831 (47,766) 26,593 (1,094) 25,499
================= ======== ======== ============ ======== ========= ======== ============= ========
Six months ended
30 June 2010
Restated
----------------- -------- -------- ------------ -------- --------- -------- ------------- --------
Total
comprehensive
income for the
period - - - - (2,098) (2,098) (123) (2,221)
Acquisition of
non-controlling
interest in
subsidiary - - - - (150) (150) - (150)
Shares purchased
and cancelled (1) - 1 - (128) (128) - (128)
Share-based
payment charge - - - - 108 108 - 108
----------------- -------- -------- ------------ -------- --------- -------- ------------- --------
At 30 June 2010 65 35,459 4 38,831 (50,034) 24,325 (1,217) 23,108
================= ======== ======== ============ ======== ========= ======== ============= ========
Six months ended
31 December
2010
----------------- -------- -------- ------------ -------- --------- -------- ------------- --------
Total
comprehensive
income for the
period - - - - (2,773) (2,773) (34) (2,807)
Shares purchased
and cancelled - - - - (178) (178) - (178)
Share-based
payment charge - - - - 46 46 - 46
----------------- -------- -------- ------------ -------- --------- -------- ------------- --------
At 31 December
2010 65 35,459 4 38,831 (52,939) 21,420 (1,251) 20,169
================= ======== ======== ============ ======== ========= ======== ============= ========
The notes form part of these financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
for the six months ended 31 December 2010
Six months
Six months ended Twelve months
ended 31 December ended
31 December 2009 31 December
2010 Restated 2010
GBP'000 GBP'000 GBP'000
-------------------------------- ------------- ------------- --------------
(Loss) for the period (2,807) (489) (5,028)
Adjustments
Taxation - - 6
Finance income (15) (79) (208)
Finance expense 158 196 321
Depreciation of property,
plant and equipment 3,167 2,202 6,090
Loss on disposal of fixed
assets 9 27 88
Equity settled share-based
obligations 46 146 155
Cash settled share-based
obligations - 1,100 -
-------------------------------- ------------- ------------- --------------
Cash flows from operations
before changes in working
capital 558 3,103 1,424
Change in trade and other
receivables (1,962) (2,396) 6,772
Change in trade and other
payables 5,800 9,251 782
-------------------------------- ------------- ------------- --------------
Cash generated from operations 4,396 9,958 8,978
Interest paid (152) (172) (315)
Corporation tax paid - - (6)
Cash settled share-based
obligations paid - - (800)
Net cash from operating
activities 4,244 9,786 7,857
-------------------------------- ------------- ------------- --------------
Cash flows from investing
activities
Interest received 18 139 209
Acquisition of subsidiary, net
of cash acquired - (658) -
Acquisition of non-controlling
interest in subsidiary - - (150)
Purchase of property, plant
and equipment (2,839) (5,809) (10,440)
Proceeds from disposal of
fixed assets 1 24 210
-------------------------------- ------------- ------------- --------------
Net cash used in investing
activities (2,820) (6,304) (10,171)
-------------------------------- ------------- ------------- --------------
Cash flows from financing
activities
Purchase of own shares,
inclusive of costs (178) - (307)
Net cash used in financing
activities (178) - (307)
-------------------------------- ------------- ------------- --------------
Net increase/(decrease) in
cash and cash equivalents 1,246 3,482 (2,621)
Opening cash and cash
equivalents 2,566 2,951 6,433
-------------------------------- ------------- ------------- --------------
Closing cash and cash
equivalents 3,812 6,433 3,812
================================ ============= ============= ==============
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1 ACCOUNTING POLICIES
Basis of preparation
On 28 April 2011, the Company announced its decision to change
its accounting reference date from 31 December to 30 June.
Accordingly, this Second Interim Report has been prepared for the
six months ended 31 December 2010, with comparative information for
the six months ended 31 December 2009. The Board has additionally
included the results for the twelve months ended 31 December 2010,
as it considers this information to be useful to shareholders.
The Second Interim Report of the Company, which has not been
audited or reviewed by the Company's auditors, incorporates the
results of the Company and its subsidiaries (together 'the
Group').
With the exception of the retroactive adoption of IFRIC 18
Transfers of assets from customers (see immediately below), the
results have been prepared on the basis of the accounting policies
adopted in the Group's financial statements for the year ended 31
December 2009, with the addition of new standards that have come
into effect during the year under review and which are listed
below.
Adoption of IFRIC 18 and restatement of prior years'
accounts
The Board decided during 2010 that it should implement the
guidance given in IFRIC 18 Transfers of assets from customers as
regards capitalising assets which it has charged to clients but of
which it still retains full control (items such as partitioning,
air conditioning units, etc., which had previously been charged to
cost of sales in the Statement of Comprehensive Income).
Simultaneously, the Board reviewed depreciation values of existing
assets and determined that certain classes of asset had not
incurred adequate depreciation charges in the period up to 31
December 2007. Additional depreciation has been booked as at that
date. The impact of these changes to the fixed assets and results
of the Group is shown in note 4.
New standards and interpretations adopted for the first time
A number of new standards, amendments to standards and
interpretations have been issued which are effective for the
current financial period. Accordingly, they have been applied in
preparing these financial statements. The following are the
standards, amendments to standards and interpretations that have
become effective and may be relevant to the Group, only IAS 27 of
which had a significant impact during 2010.
The amendment to IAS 27 affects in particular the acquisition of
subsidiaries achieved in stages and disposals of interests, with
significant differences in the accounting depending on whether or
not control is obtained as a result of the transaction, or where a
transaction results only in a change in the percentage of a
controlling interest. It does not require the restatement of
previous transactions.
IFRS 1 and IAS First Time Adoption of IFRS and Consolidated and
27 Separate Financial Statements
------------------- ---------------------------------------------------------
IFRS 2 (amendment) Share-based Payment on 'Vesting conditions and
cancellations'
------------------- ---------------------------------------------------------
IFRS 3 (amendment) Business Combinations
------------------- ---------------------------------------------------------
IFRS 5 (amendment) Non-current Assets Held for Sale and Discontinued
Operations
------------------- ---------------------------------------------------------
IFRS 8 (amendment) Operating Segments
------------------- ---------------------------------------------------------
IAS 1 (amendment) Presentation of Financial Statements
------------------- ---------------------------------------------------------
IAS 7 (amendment) Statement of Cash Flows
------------------- ---------------------------------------------------------
IAS 17 (amendment) Leases
------------------- ---------------------------------------------------------
IAS 39 (amendment) Financial Instruments. Recognition and Measurement
- Eligible Hedged Items
------------------- ---------------------------------------------------------
2 SEGMENT REPORTING
Segmental information is presented in respect of the Group's
businesses. The primary format is based on the Group's internal
reporting structure.
The Group comprises the following main business segments:
o Four and five star serviced office accommodation under the
Business Exchange brand; and
o Three star serviced office accommodation under the City
Executive Centres brand.
Segment results include items directly attributable to a segment
as well as those that can be allocated on a reasonable basis.
Inter-segment pricing is determined on an arm's length basis. The
Group does not report internally segmental Statement of Financial
Position information. Accordingly this is not given below, as
permitted by April 2009 Improvements to IFRSs - IFRS 8.
Six months ended 31 December Business City Executive
2010 Exchange Centres Consolidated
GBP'000 GBP'000 GBP'000
Revenue per Statement of
Comprehensive Income 48,923 6,194 55,117
Segment EBITDA (11) 523 512
Depreciation, amortisation and
loss on disposal of fixed
assets (3,010) (166) (3,176)
Results from operating
activities (3,021) 357 (2,664)
Net finance income/(expense) 196 (339) (143)
Taxation - - -
(Loss)/Profit for the period (2,825) 18 (2,807)
Six months ended 31 December Business City Executive
2009 Restated Exchange Centres Consolidated
GBP'000 GBP'000 GBP'000
Revenue per Statement of
Comprehensive Income 47,544 7,488 55,032
Segment EBITDA 4,094 (2,237) 1,857
Depreciation, amortisation and
loss on disposal of fixed
assets (2,130) (99) (2,229)
Results from operating
activities 1,964 (2,336) (372)
Net finance income/(expense) 238 (355) (117)
Taxation - - -
Profit/(Loss) for the period 2,202 (2,691) (489)
Twelve months ended 31 Business City Executive
December 2010 Exchange Centres Consolidated
GBP'000 GBP'000 GBP'000
Revenue per Statement of
Comprehensive Income 95,730 13,673 109,403
Segment EBITDA 415 854 1,269
Depreciation, amortisation and
loss on disposal of fixed
assets (5,768) (410) (6,178)
Results from operating
activities (5,353) 444 (4,909)
Net finance income/(expense) 460 (573) (113)
Taxation (6) - (6)
(Loss) for the period (4,899) (129) (5,028)
All operations are carried out in Great Britain.
3 (LOSS)/EARNINGS PER SHARE
The earnings per share figures are calculated by dividing the
result after tax attributable to equity shareholders of the Company
for the period by the weighted average number of ordinary shares in
issue during the period, as follows:-
Six months
Six months ended Twelve months
ended 31 December ended
31 December 2009 31 December
2010 Restated 2010
GBP'000 GBP'000 GBP'000
(Loss)/Profit attributable to
equity shareholders of the
Company (2,773) 541 (4,871)
Number Number Number
'000 '000 '000
Weighted average number of
ordinary shares (basic) 65,124 65,640 65,377
Effect of shares issuable
under share option schemes (no
effect in either 2010 or
2009) - - -
Weighted average number of
shares (diluted) 65,124 65,640 65,377
(Loss)/Earnings per share (4.3p) 0.8p (7.5p)
Diluted (loss)/earnings per
share (4.3p) 0.8p (7.5p)
4 PROPERTY, PLANT AND EQUIPMENT
Operating Plant, machinery,
2010: Six months to 31 leasehold fixtures &
December improvements equipment Total
GBP'000 GBP'000 GBP'000
Cost
At 1 July 2010 (restated) 49,045 18,972 68,017
Additions 1,521 1,318 2,839
Retirements - (2,244) (2,244)
Disposals (94) (230) (324)
At 31 December 2010 50,472 17,816 68,288
Depreciation
At 1 July 2010 (restated) (13,431) (8,107) (21,538)
Charge for the period (1,892) (1,275) (3,167)
Retirements - 2,244 2,244
Disposals 94 220 314
At 31 December 2010 (15,229) (6,918) (22,147)
Net book value
At 31 December 2010 35,243 10,898 46,141
Operating Plant, machinery,
2009: Six months to 31 leasehold fixtures &
December Restated improvements equipment Total
GBP'000 GBP'000 GBP'000
Cost
At 1 July 2009 42,132 33,886 76,018
Additions 3,664 2,145 5,809
Retirements (1,095) (19,902) (20,997)
Disposals (26) (26) (52)
At 31 December 2009 44,675 16,103 60,778
Depreciation
At 1 July 2009 (11,694) (25,794) (37,488)
Charge for the period (1,170) (1,032) (2,202)
Retirements 1,095 19,902 20,997
Disposals 1 2 3
At 31 December 2009 (11,768) (6,922) (18,690)
Net book value
At 31 December 2009 32,907 9,181 42,088
Operating Plant, machinery,
2010: Twelve months to 31 leasehold fixtures &
December improvements equipment Total
GBP'000 GBP'000 GBP'000
Cost
At 1 January 2010 (restated) 44,675 16,103 60,778
Additions 6,028 4,412 10,440
Retirements - (2,244) (2,244)
Disposals (231) (455) (686)
At 31 December 2010 50,472 17,816 68,288
Depreciation
At 1 January 2010 (restated) (11,768) (6,922) (18,690)
Charge for the year (3,599) (2,491) (6,090)
Retirements - 2,244 2,244
Disposals 138 251 389
At 31 December 2010 (15,229) (6,918) (22,147)
Net book value
At 31 December 2010 35,243 10,898 46,141
Restatement
As stated in note 1, the retroactive adoption by the Board of
IFRIC 18 Transfers of assets from customers from 1 January 2008 as
regards capitalisation of client alterations previously charged to
the Statement of Comprehensive Income and the simultaneous review
of depreciation recorded at that date has required the restatement
of the Group's fixed assets and depreciation thereon as
follows:
Year ended Year ended Year ended Year ended
31 December 31 December 31 December 31 December
2010 2009 2008 2007
GBP'000 GBP'000 GBP'000 GBP'000
Impact on property,
plant & equipment:-
Client alterations
capitalised 681 1,204 1,177 -
Depreciation
thereon (275) (176) (58) -
Depreciation
charged to 31
December 2007 827 830 776 (6,130)
Change in net book
value in year 1,233 1,858 1,895 (6,130)
Increase/(decrease)
in profit/(loss)
before taxation * 1,233 * 1,858 1,895 (6,130)
* Of which GBP627,000 (2009: GBP959,000) relates to the six
month period ended 31 December 2010.
5 RELATED PARTY BALANCES AND TRANSACTIONS
31 December 31 December
2010 2009
GBP'000 GBP'000
Current assets
Trade and other receivables
Amounts owed by subsidiaries of MWB Group
Holdings Plc 2,378 10,105
Current liabilities
Trade and other payables
Amounts owed to subsidiaries of MWB Group
Holdings Plc - 307
During the six months ended 31 December 2010, the Group incurred
GBP84,000 of charges (six months to 31 December 2009: GBP23,000;
twelve months to 31 December 2010: GBP227,000) from MWB Group
Holdings Plc ('Holdings') in respect of accommodation costs in
accordance with the services agreement between the Company and
Holdings dated 16 December 2005. This agreement also provides for
the Group to use office space at its head office under licence from
Holdings. All costs charged to the Group in accordance with this
agreement are recharged at cost and are calculated on an arm's
length basis.
6 DEFERRED TAXATION
There were no deferred tax liabilities at 31 December 2010 or at
the previous year end. The net deferred tax assets not provided at
31 December 2010 arose as follows:-
31 December
31 December 2009
2010 Restated
GBP'000 GBP'000
Deferred tax assets not provided
Accelerated capital allowances 1,180 37
Trading and other tax losses 5,575 3,041
Deferred tax assets not provided at year
end 6,755 3,078
At 31 December 2010, after deducting all deferred tax
liabilities, the Group had gross accelerated capital allowances
representing deferred tax assets of approximately GBP4.4 million
(2009: GBP0.1 million). At the same date, it had trading and other
losses carried forward in certain parts of the Group of
approximately GBP20.6 million (2009: GBP10.9 million). These gross
tax assets totalling GBP25.0 million (2009: GBP11.0 million) are
reflected at the prevailing tax rate of 27% (2009: 28%) in the net
unprovided deferred tax asset of GBP6.8 million (2009: GBP3.1
million) referred to above. Due to uncertainty as to the timing and
use of any of the net deferred tax assets, particularly the trading
losses which are restricted in their use, these tax assets have not
been recognised as an asset in the Statement of Financial Position
at 31 December 2010 or at the previous year end.
The Group's performance of its obligations regarding the payment
of rent to certain of its landlords is guaranteed by a subsidiary
of its ultimate parent, MWB Group Holdings plc. In accordance with
the transfer pricing provisions, the arm's length price of these
guarantees is reflected in the Group's corporation tax
computations. This results in a significant increase in the value
of the Group's deferred tax assets as shown above.
7 FINANCIAL STATEMENTS AND SECOND INTERIM REPORT
The financial information set out in this Second Interim Report
in relation to MWB Business Exchange Plc includes information for
the six months ended 31 December 2010, with comparative information
for the six months ended 31 December 2009. The Board has
additionally included the results for the twelve months ended 31
December 2010, as it considers this information to be useful to
shareholders. The annual report and financial statements for the
year ended 31 December 2009 have been filed with the Registrar of
Companies. The independent auditors' report on the annual report
and financial statements for 2009 was unqualified, did not draw
attention to any matters by way of emphasis, and did not contain a
statement under Section 498(2) or 498(3) of the Companies Act
2006.
An electronic copy of this Second Interim Report has been made
available on the Company's website at www.mwbex.com from the date
of its announcement on 28 April 2011. The audited financial
statements of the Company for the year ended 31 December 2009,
further copies of this Second Interim Report and the Half-Yearly
Financial Report for the six months ended 30 June 2010 are
available from the Company Secretary, Filex Services Limited, at
the Company's registered office of 179 Great Portland Street,
London W1W 5LS.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GGGDSGSDBGBI
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