Interim Results
September 02 2003 - 3:00AM
UK Regulatory
RNS Number:2553P
Autologic Holdings PLC
02 September 2003
Embargoed until 0700 2 September 2003
AutoLogic Holdings plc
("AutoLogic" or the "Group")
Interim Results for the Six Months ended 30 June 2003
Chairman's Statement
Highlights
Interim Interim %
2003 2002 Change
Turnover #358.6m #349.9m 2.5%
Business Performance*
Operating profit #18.3m #21.8m (16.1)%
Profit before tax #12.9m #15.8m (18.4)%
Earnings per share 19.69p 24.98p (21.2)%
Statutory Basis
Operating profit #14.0m #18.0m (22.2)%
Profit before tax #8.6m #12.0m (28.3)%
Basic earnings per share 7.07p 16.04p (55.9)%
Interim dividend per share 3.60p 3.60p -%
* Before goodwill amortisation and exceptional items
* Strong Performance in UK and Spain
* Results adversely affected by particularly weak French and Benelux
markets
* Resilient performance by CAT
* Dividend maintained
John Merry, Chairman, commented: "Trading in the second half to date has
continued to be weak following the marked downturn experienced in April and May.
We do not expect any significant upturn in the market during the second half of
the year and are therefore continuing our aggressive focus on reducing fixed
costs, improving operational flexibility and increasing productivity across the
Group. However, we remain confident that these actions will enable our
businesses to benefit from any upturn in market conditions."
For further information please contact:
John Merry
Chairman 020 7420 0555
Philip Nuttall
Group Finance Director 020 7420 0555
Bell Pottinger Financial:
Press/Analysts: Jonathan Brill 020 7861 3865 or
Robin Tozer 020 7861 3891
Investors: Neville Harris 020 7861 3894
Overview
Trading in the first half of the year was difficult. While market conditions in
the vehicle logistics sector across Europe in the first quarter of the year were
weak, in line with our expectations, they significantly deteriorated during
April and May.
Some of the largest markets for the Group experienced very weak volumes, in
particular, France and Belgium, where new car registrations were down 7.7% and
10.2% respectively compared with the same period last year. The situation in
France was compounded by a series of national strikes. Furthermore, in contrast
with previous years, some of the Group's major customers suffered larger falls
in volumes than the market average which resulted in a year on year reduction in
our key markets of 10.7% for the first half as a whole. Additionally, market
volumes in the UK were particularly volatile with a year-on-year fall of 2.6% in
the period to the end of May, a fall of 4.1% in May followed by an increase of
15.8% in June.
Reorganisation of the French and Benelux businesses has been accelerated since
the third quarter of 2002 in order to bring them closer to the operational
efficiency of the Group's benchmark operations in Walon UK and Spain which, with
their more flexible cost-base, have proved more resilient.
Results
Turnover increased by 2.5% to #358.6m (2002: #349.9m) taking into account the
positive impact of foreign exchange movements. Excluding the effect of foreign
exchange movements, turnover fell by 4.0%. Group turnover (excluding its share
of joint ventures) increased by 0.5% to #191.9m (2002: #190.9m). Within this, at
constant exchange rates, UK turnover fell by 2.4% whilst turnover in Continental
European fell by 9.7%.
Total operating profit in the period (before amortisation of goodwill) reduced
to #18.3m (2002: #21.8m) taking into account the positive impact of foreign
exchange movements. Group operating profit (excluding its share of joint
ventures) fell by 41.8% to #7.1m (2002: #12.2m).
Goodwill amortisation for the period was #4.3m (2002: #3.8m).
The net interest charge decreased to #5.4m (2002: #6.0m) reflecting the reduced
debt in both the Group and its joint ventures, debt in the latter being
non-recourse.
Profit before tax (before amortisation of goodwill) for the six months ended 30
June 2003 was #12.9m, a reduction of 18.4% compared with the previous year
(2002: #15.8m).
Earnings per share (before amortisation of goodwill and exceptional items)
reduced 21.2% to 19.69p (2002: 24.98p).
On a statutory basis, profit before tax for the six months ended 30 June 2003
was #8.6m (2002: #12.0m), a decrease of 28.3% over the previous year.
Dividend
An interim dividend of 3.60p per share is being maintained (2002: 3.60p) and
will be paid on 10 October 2003 to shareholders on the register at 12 September
2003.
Operational Review
Technical Services
Turnover from Technical Services fell by 3.5% to #49.0m (2002: #50.8m).
Excluding the impact of favourable foreign exchange movements, the fall was
8.0%.
In the UK, performance has been strong in a difficult market and contract wins
or renewals during the first six months included Mitsubishi, Suzuki and
Ssangyong.
Technical Services in our Continental European businesses, which are less
developed than in the UK, tend to be more affected by the level of new car
registrations than in the UK; as a result, our businesses in France and Benelux
experienced declines in this area over the previous year. Our Spanish businesses
managed to maintain comparable levels to last year, despite facing similar
constraints.
Distribution Services
Distribution Services turnover fell by 1.3% to #122.9m (2002: #124.5m).
Excluding the impact of favourable foreign exchange movements, the fall was
4.9%.
In the UK, where Group volumes were down 3.0%, our businesses had to contend
with significant volume volatility during the period. Although volumes rose
sharply in June and remained ahead of last year during the first weeks of the
second half, the overall downward trend experienced in the first half is
expected to continue and be compounded by further volume volatility in the
second half of the year.
Group volumes were down 19.0% and 25.1% in France and Benelux respectively
against the same period in the previous year and revenues fell by 19.1%,
excluding the effect of foreign exchange movements. Our customers in these
markets suffered even greater declines in volumes than the market averages.
Consequently, this had a significant impact on the results of these businesses,
which was mitigated by the restructuring which was already underway. The market
decline was much greater than had been forecast and further restructuring of
these businesses is being aggressively pursued to achieve a more variable cost
base that can cope better with such a volatile market.
In Spain and Portugal Group volumes fell by 0.6% and 10.9% over the same period
last year. The relatively small fall in volumes experienced by our Spanish
business combined with its highly flexible cost base to enable it to maintain
good margins.
The Company continued to win new and renew existing business. Existing contracts
with BMW, Fiat, Nissan and Opel were extended and new contracts with Hyundai,
Kia and Rover have been gained.
GAL/CAT
Our share of revenue in the CAT joint venture (Compagnie d'Affretement et de
Transport SA) for the period was #162.6m (2002: #156.5m) and our share of CAT's
earnings before interest, tax and goodwill amortisation was #10.7m (2002:
#9.3m).
CAT's revenue, excluding the effect of favourable foreign exchange movements,
was 6.1% down on last year, reflecting the decline in Renault new car sales in
Continental Europe. The fall in Renault new car sales was most pronounced in
France where the year on year reduction was 10.4%. Despite these volume
reductions, CAT maintained its operating profit margins due to its continued
cost reduction program.
Cash generation in the business was strong which enabled the company to reduce
net debt to Euro165.0m.
We continue to work closely with CAT and our joint venture partners TNT and
Wallenius Wilhelmsen to identify and implement opportunities for improved
cooperation and synergies, including the development of joint sites and
coordination of new product opportunities.
Development Strategy
Despite the current trading conditions, the development strategy of the Group
remains sound. In particular, in July the Group successfully launched a joint
venture focussed on Risk Management services which will provide value added risk
management services to Group companies, customers and third parties.
We are also making good progress with a number of development projects including
projects designed to capitalise on the various market opportunities arising from
the implementation of new European Union legislation. These projects are
progressing well and are all at varying stages of implementation.
French Property Restructuring and Asset Sales
As announced in our Pre-Close Period Trading Statement, following a strategic
review in 2002, the Group has agreed to sell a number of operational sites in
France that will be leased back on normal commercial leases. The net cash
receipt on the sale will be approximately #27.0m and the proceeds will be used
to further reduce debt. These arrangements produce neither a gain nor a loss on
sale. To date the sale and leaseback of two sites has been completed generating
a tax charge of #1.2m which is included in exceptional items. The continuing
restructuring of the Group's operational sites may result in additional
disposals later in the year.
Board and Management
As announced at the Annual General Meeting in May, the Group made several major
changes to its Board and a number of significant management appointments during
the period.
Reg Heath, who has been Chairman of the Group since 1996, retired at the AGM in
May 2003. At the same time, I was appointed Chairman, Gilles Guinchard,
previously Group Managing Director, was appointed Chief Executive Officer and
Chris French was appointed as Senior Independent Non-Executive Director.
In addition, the Group has continued to strengthen its senior management team
with the creation of two new positions of Group Sales Director and Regional
Director, Benelux.
Outlook
Trading in the first weeks of the second half has continued to be weak. It is
difficult to predict the timing of any significant upturn and we are not
expecting any during the remainder of the second half of the year.
The Group continues to undertake a number of steps to address the poor market
conditions in order to mitigate the impact on the Group. The steps that have
been taken involve material and complex reorganisations of some of our
subsidiaries, particularly in France and the Benelux. Although these
restructurings are progressing, these businesses are not yet in line with the
best operating practices in the Group.
The actions the Group is undertaking should position it to benefit from any
upturn in the performance of its major customers and market conditions
generally. However, continuation of these difficult conditions will have a
significant negative impact on the performance of the Group in the second half.
John Merry
Chairman
2 September 2003
Consolidated Profit and Loss Account
for the six months ended 30 June 2003
Before
goodwill & Goodwill & 6 month to 12 months
exceptional exceptional 6 months to 30 Jun To 31 Dec
items items 30 Jun 2003 2002 2002
Note Unaudited Unaudited Unaudited Unaudited Audited
#'m #'m #'m #'m #'m
-------- ------- ------- ------- -------
Turnover
(including
share of joint
ventures) 2 358.6 - 358.6 349.9 669.5
Less: share of
joint
ventures'
turnover 2 (166.7) - (166.7) (159.0) (305.8)
-------- ------- ------- ------- -------
Group
turnover 2 191.9 - 191.9 190.9 363.7
-------- ------- ------- ------- -------
Group
operating
profit 3 7.1 (1.4) 5.7 11.0 17.1
Share of
profit from
interests in
joint ventures
and
associates 11.2 (2.9) 8.3 7.0 12.3
-------- ------- ------- ------- -------
Total
operating
profit - Group
and share of
joint ventures
and
associates 18.3 (4.3) 14.0 18.0 29.4
Net interest
payable and
similar
charges (5.4) - (5.4) (6.0) (11.4)
-------- ------- ------- ------- -------
Profit on
ordinary
activities
before
taxation 2 12.9 (4.3) 8.6 12.0 18.0
Tax on profit
on ordinary
activities 4 (4.3) (1.2) (5.5) (5.0) (7.6)
-------- ------- ------- ------- -------
Profit on
ordinary
activities
after
taxation 8.6 (5.5) 3.1 7.0 10.4
Equity
minority
interests - - - - 0.3
-------- ------- ------- ------- -------
Profit for the
financial
period 8.6 (5.5) 3.1 7.0 10.7
Dividends 5 (1.6) - (1.6) (1.6) (4.8)
-------- ------- ------- ------- -------
Retained
profit for the
financial
period 7.0 (5.5) 1.5 5.4 5.9
======== ======= ======= ======= =======
Earnings per
share
Basic earnings
per share 6 19.69p 12.62p 7.07p 16.04p 24.46p
-------- ------- ------- ------- -------
Diluted
earnings per
share 6 19.55p 12.53p 7.02p 15.90p 24.29p
-------- ------- ------- ------- -------
Dividend per
share 5 3.60p 3.60p 11.10p
------- ------- -------
All amounts shown above relate to continuing operations.
In the comparative figures for the 6 months to June 2002 , a re-analysis of
#4.0m has been made reducing turnover and increasing other operating income to
achieve consistency of presentation.
6 months to 6 months to 12 months to
30 Jun 2003 30 Jun 2002 31 Dec 2002
Unaudited Unaudited Audited
#'m #'m #'m
-------- -------- --------
Included
within Group
operating
profit
- Goodwill amortisation 1.4 1.2 2.7
- Exceptional items - - 3.3
Included within share of profit from
interests in joint ventures and
associates
- Goodwill amortisation 2.9 2.6 5.3
Included within tax on profit on
ordinary activities
- Exceptional items (note 4) 1.2 - -
-------- -------- --------
Consolidated Statement of Total Recognised Gains and Losses
for the six months ended 30 June 2003
6 months to 6 months to 12 months to
30 Jun 2003 30 Jun 2002 31 Dec 2002
Unaudited Unaudited Audited
#'m #'m #'m
------- -------- -------
Profit for the financial
period 3.1 7.0 10.7
Translation differences on
foreign currency
investments:
Group 6.6 2.8 3.3
Share of joint ventures
and associates 4.4 2.8 2.1
------- -------- -------
Total gains and losses
recognised in the period 14.1 12.6 16.1
======= ======== =======
Reconciliation of Movement in Equity Shareholders' Funds
for the six months ended 30 June 2003
Share Total equity
Share premium Merger Capital Profit and shareholders'
capital account reserve reserve loss account funds
#'m #'m #'m #'m #'m #'m
-------- -------- ------- ------- ------- -------
At 1 January
2003 2.2 66.8 20.7 0.3 30.1 120.1
Share
issues - 0.1 - - - 0.1
Profit for
the
financial
period - - - - 3.1 3.1
Dividends - - - - (1.6) (1.6)
Exchange
difference - - - - 11.0 11.0
-------- -------- ------- ------- ------- -------
At 30 June
2003 2.2 66.9 20.7 0.3 42.6 132.7
======== ======== ======= ======= ======= =======
Consolidated Balance Sheet
at 30 June 2003
30 Jun 2003 30 Jun 2002 31 Dec 2002
Unaudited Unaudited Audited
#'m #'m #'m
------- -------- --------
Fixed
assets
Intangible
assets 48.6 49.5 47.5
Tangible
assets 62.9 72.4 68.8
Interests in
joint
ventures and
associates:
Share of
gross assets
(excluding
goodwill) 125.9 126.5 110.6
Goodwill 109.8 103.2 103.8
-------- ------- -------
235.7 229.7 214.4
Share of
gross
liabilities (173.0) (173.1) (157.8)
--------------- ---------------- -----------------
62.7 56.6 56.6
Other
investments 6.5 6.5 6.5
------- -------- --------
Total
investments 69.2 63.1 63.1
------- -------- --------
180.7 185.0 179.4
Current
assets
Stocks 1.8 2.0 1.6
Debtors 115.3 109.2 101.9
Cash at bank
and in hand 11.8 4.9 10.8
------- -------- --------
128.9 116.1 114.3
Creditors:
amounts falling
due within one
year (103.8) (100.4) (100.7)
Net current
assets 25.1 15.7 13.6
------- -------- --------
Total assets
less current
liabilities 205.8 200.7 193.0
------- -------- --------
Creditors: amounts
falling due after
more than one
year (65.0) (75.6) (64.8)
Provisions for
liabilities and
charges (7.8) (4.5) (7.8)
------- -------- --------
Net assets 133.0 120.6 120.4
------- -------- --------
Capital and
reserves
Called up
share
capital 2.2 2.2 2.2
Share premium
account 66.9 66.2 66.8
Merger
reserve 20.7 20.7 20.7
Capital
reserve 0.3 0.3 0.3
Profit and
loss
account 42.6 30.2 30.1
------- -------- --------
Equity
shareholders'
funds 132.7 119.6 120.1
Equity
minority
interests 0.3 1.0 0.3
------- -------- --------
133.0 120.6 120.4
------- -------- --------
Consolidated Cash Flow Statement
for the six months ended 30 June 2003
6 months to 6 months to 12 months to
30 Jun 2003 30 Jun 2002 31 Dec 2002
Unaudited Unaudited Audited
#'m #'m #'m
-------- -------- --------
Net cash (outflow)/inflow
from continuing operating
activities (2.0) 10.2 32.8
Dividends received from
joint ventures - - 0.1
Returns on investments and
servicing of finance
Net interest paid (1.5) (2.9) (4.9)
Taxation 0.5 (2.8) (5.9)
Capital expenditure
Sale of tangible fixed
assets 7.8 0.2 2.1
Purchase of tangible fixed
assets (2.8) (1.6) (5.4)
Acquisitions and
disposals - - (0.4)
Equity dividends paid (3.2) (3.0) (4.6)
------- -------- --------
Cash (outflow)/inflow
before financing (1.2) 0.1 13.8
Financing
Issue of share capital 0.1 - 0.2
Repayment of loans (0.1) (0.2) (8.0)
Repayment of principal
under finance leases (0.1) (0.2) (0.4)
------- -------- --------
Net cash outflow from
financing (0.1) (0.4) (8.2)
------- -------- --------
(Decrease)/increase in
cash in the period (1.3) (0.3) 5.6
======= ======== ========
Reconciliation of Net Cash Flow to Movement in Net Debt
6 months to 6 months to 12 months to
30 Jun 2003 30 Jun 2002 31 Dec 2002
Unaudited Unaudited Audited
#'m #'m #'m
------- -------- --------
(Decrease)/increase in
cash in the period (1.3) (0.3) 5.6
Cash outflow from
reduction in debt 0.1 0.2 8.0
Cash outflow from
repayment of finance
leases 0.1 0.2 0.4
------- -------- --------
Change in net debt
resulting from cash
flows (1.1) 0.1 14.0
Other non-cash items
Exchange difference 0.7 - (0.1)
New finance leases (0.2) - -
Amortisation of debt issue
costs (0.2) (0.2) (0.2)
------- -------- --------
Movement in net debt in
the period (0.8) (0.1) 13.7
Opening net debt (64.5) (78.2) (78.2)
------- -------- --------
Closing net debt (65.3) (78.3) (64.5)
======= ======== ========
Reconciliation of Operating Profit to Net Cash Flow from Operating Activities
6 months to 6 months to 12 months to
30 Jun 2003 30 Jun 2002 31 Dec 2002
Unaudited Unaudited Audited
#'m #'m #'m
------- -------- --------
Operating profit 5.7 11.0 17.1
Depreciation 4.0 3.9 8.8
Amortisation of goodwill 1.4 1.2 2.7
Loss on disposal of fixed
assets - 0.2 0.2
(Increase)/decrease in
stocks (0.2) 0.1 0.6
(Increase)/decrease in
debtors (6.9) (5.9) 6.8
Increase in loan to joint
venture (1.0) -
Decrease in creditors and
provisions for liabilities
and charges (5.0) (0.3) (3.4)
------- -------- --------
Net cash (outflow)/inflow
from continuing operating
activities (2.0) 10.2 32.8
======= ======== ========
Notes to the Interim Statement
for the six months ended 30 June 2003
1. Basis of preparation
The interim statement is unaudited and does not constitute full accounts within
the meaning of the Companies Act 1985. It has been prepared on a basis
consistent with the 2002 statutory accounts. Full statutory accounts for the
year ended 31 December 2002 have been delivered to the Registrar of Companies
and contain an unqualified report from the auditors.
A copy of this interim statement is being sent to all shareholders. Further
copies may be obtained from the Company Secretary, AutoLogic Holdings plc, Orion
House, 5 Upper St Martin's Lane, London WC2H 9EA.
The accounting policies are as stated on pages 28 and 29 of the Annual Report
for the year ended 31 December 2002.
2. Segmental reporting
Analysis by geographical area:
6 months to 6 months to 12 months to
30 Jun 2003 30 Jun 2002 31 Dec 2002
Unaudited Unaudited Audited
#'m #'m #'m
------- ------- -------
Turnover
Group
United Kingdom 119.9 108.6 231.9
Continental Europe 72.0 82.3 131.8
------- ------- -------
191.9 190.9 363.7
Joint ventures and
associates
United Kingdom 15.5 15.8 31.4
Continental Europe 147.1 137.5 259.3
Rest of the World 4.1 5.7 15.1
------- ------- -------
166.7 159.0 305.8
------- ------- -------
Total (including share of
joint ventures and
associates) 358.6 349.9 669.5
------- ------- -------
Profit before taxation
Group
United Kingdom 4.5 4.0 9.8
Continental Europe (1.2) 4.2 2.0
------- ------- -------
3.3 8.2 11.8
Joint ventures and
associates
United Kingdom 1.9 0.6 2.8
Continental Europe 3.4 3.1 3.3
Rest of the World - 0.1 0.1
------- ------- -------
5.3 3.8 6.2
------- ------- -------
Total (including share of
joint ventures and
associates) 8.6 12.0 18.0
------- ------- -------
Turnover by destination is not materially different to the analysis of turnover
by origin presented above.
2. Segmental reporting (continued)
Analysis by class of business:
6 months to 6 months to 12 months to
30 Jun 2003 30 Jun 2003 31 Dec 2002
Unaudited Unaudited Audited
#'m #'m #'m
------- ------- -------
Turnover
Distribution services 122.9 124.5 215.5
Technical services 49.0 50.8 116.1
Parts distribution 17.4 14.2 30.9
Other 2.6 1.4 1.2
------- ------- -------
191.9 190.9 363.7
Joint ventures and
associates 166.7 159.0 305.8
------- ------- -------
Total (including share of
joint ventures and
associates) 358.6 349.9 669.5
------- ------- -------
3. Cost of sales and administrative expenses
6 months to 6 months to 12 months to
30 Jun 2003 30 Jun 2002 31 Dec 2002
Unaudited Unaudited Audited
#'m #'m #'m
------- ------- -------
Turnover 191.9 190.9 363.7
Cost of sales (165.5) (165.4) (307.1)
------- ------- -------
Gross profit 26.4 25.5 56.6
Administrative expenses (19.5) (17.7) (44.6)
Exceptional items - - (3.3)
Goodwill amortisation (1.4) (1.2) (2.7)
Other operating income 0.2 4.4 11.1
------- ------- -------
Net operating expenses (20.7) (14.5) (39.5)
------- ------- -------
Operating profit 5.7 11.0 17.1
------- ------- -------
4. Taxation
The tax charge gives an effective tax rate of 63.9% for the period ended 30 June
2003. This compares with 41.6% for the six months ended 30 June 2002 and 42.2%
for the year ended 31 December 2002. The increase in the effective rate is
mainly due to the tax charge arising on the French property sale, which did not
generate a trading profit, but resulted in a capital gain. Excluding this and
the effect of goodwill amortisation, the effective tax rate for the period is
33.3% (2002: 31.6%).
5. Interim dividend
The proposed interim dividend of 3.6 pence per ordinary share (2002: 3.6 pence)
will be paid on 10 October 2003 to shareholders on the register on 12 September
2003.
6. Earnings per share
Reconciliations of the earnings and weighted average number of shares used in
the calculations are set out below:
6 months to 12 months to
6 months to 30 Jun 2003 30 Jun 2002 31 Dec 2002
Unaudited Unaudited Audited
Per share Per share Per share
Earnings Shares amount amount amount
#'m m Pence Pence Pence
------ ------ ------ -------- --------
Basic earnings
per share
Earnings
attributable
to ordinary
shareholders 3.1 43.6 7.07 16.04 24.46
Effect of
dilutive
shares -
options - 0.3 (0.05) (0.14) (0.17)
------ ------ ------ -------- --------
Diluted
earnings per
share 3.1 43.9 7.02 15.90 24.29
------ ------ ------ -------- --------
Supplementary earnings per share before goodwill amortisation and
exceptional items
Basic earnings
per share 3.1 43.6 7.07 16.04 24.46
------ ------ ------ -------- --------
Effect of
goodwill
amortisation
and
exceptional
items 5.5 - 12.62 8.94 24.11
------ ------ ------ -------- --------
Earnings per
share before
goodwill
amortisation
and
exceptional
items 8.6 43.6 19.69 24.98 48.57
------ ------ ------ -------- --------
Diluted
earnings per
share 3.1 43.9 7.02 15.90 24.29
Effect of
goodwill
amortisation
and
exceptional
items 5.5 - 12.53 8.87 23.95
------ ------ ------ -------- --------
Diluted
earnings per
share before
goodwill
amortisation
and
exceptional
items 8.6 43.9 19.55 24.77 48.24
------ ------ ------ -------- --------
Basic and diluted earnings per share are also shown on the face of the Profit
and Loss Account calculated by reference to earnings before the #5.5m (June
2002: #3.8m, December 2002: #10.5m) charge for goodwill and exceptional items,
and the related tax, since the Directors consider that this gives a useful
indication of underlying performance.
Earnings per share were calculated on 43.5m shares being in issue at June 2002
(December 2002: 43.5m). Diluted earnings per share were calculated on 43.7m
shares being in issue at June 2002 (December 2002: 43.8m).
Independent review report to AutoLogic Holdings plc
Introduction
We have been instructed by the group to review the financial information which
comprises the Consolidated Profit and Loss Account, Consolidated Statement of
Total Recognised Gains and Losses, Consolidated Balance Sheet, Consolidated Cash
Flow Statement and the related notes. We have read the other information
contained in the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The directors are
responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom Auditing Standards and therefore
provides a lower level of assurance than an audit. Accordingly we do not express
an audit opinion on the financial information. This report, including the
conclusion, has been prepared for and only for the company for the purpose of
the Listing Rules of the Financial Services Authority and for no other purpose.
We do not, in producing this report, accept or assume responsibility for any
other purpose or to any other person to whom this report is shown or into whose
hands it may come save where expressly agreed by our prior consent in writing.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2003.
PricewaterhouseCoopers LLP
Chartered Accountants
Bristol
2 September 2003
The company intends to make a copy of this document available on its corporate
website (www.autologic.co.uk). In respect of any copy which appears on the
website the following should be noted:
a. The maintenance and integrity of the AutoLogic Holdings plc website is the
responsibility of the directors; the work carried out by the auditors does
not involve consideration of these matters and, accordingly, the auditors
accept no responsibility for any changes that may have occurred to the
interim report since it was initially presented on the website.
b. Legislation in the United Kingdom governing the preparation and
dissemination of financial information may differ from legislation in other
jurisdictions.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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