TIDMBRK
RNS Number : 0924H
Brooks Macdonald Group PLC
11 March 2015
BROOKS MACDONALD GROUP PLC
HALF YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31
DECEMBER 2014
Brooks Macdonald Group plc ("Brooks Macdonald" or the "Group"),
the AIM listed integrated wealth management group, today announces
its report for the six months ended 31 December 2014.
Financial Highlights
Half year Half year Change
ended 31.12.14 ended 31.12.13
Total discretionary funds under
management ("FUM") GBP6.95bn GBP5.68bn 22.4%
Revenue GBP37.50m GBP33.39m 12.3%
Underlying pre-tax profit* GBP6.72m GBP6.16m 9.1%
Underlying earnings per share* 41.25p 40.26p 2.5%
Pre-tax profit GBP4.48m GBP4.93m (9.1%)
Earnings per share 26.63p 32.69p (18.5%)
Interim dividend 10.0p 7.0p 42.9%
*Adjustments are in respect of acquisition costs, the costs of
deferred consideration and the amortisation of intangible
assets
Business Highlights:
-- Strong growth in discretionary FUM (Asset Management, International and Funds):
o Organic growth of GBP238m or 4.6% over the six month period
excluding market growth and acquisitions
o Total growth of over GBP1.27bn or 22.4% year on year includes
benefit of market growth and prior period acquisitions
o WMA Balanced index grew by 3.15% over the six month period and
4.19% over the year
o Includes Brooks Macdonald Funds' FUM of GBP550m (December
2013: GBP447m)
-- Property assets under administration, managed by Braemar
Estates of GBP1.091bn (December 2013: GBP1.071bn)
-- Third party assets under administration are now in excess of
GBP225m (December 2013: >GBP160m)
-- Interim dividend increased by 43% to 10.0p (2013: 7.0p)
reflecting rebalancing of the dividend and the Board's continued
confidence in the Group's progress
Commenting on the results and outlook, Chris Macdonald, Chief
Executive, said:
"Brooks Macdonald is delighted to celebrate its tenth
anniversary on AIM this month. Over the period funds under
management have grown 1600% from GBP400m to over GBP7.0bn today. As
we enter the next ten year period we continue to focus on the core
strengths that have served us so well, namely our people, our
culture and our proposition. We look forward to the next ten years
of growth with optimism."
"For the remainder of the current half year, our investment in
the business for growth continues as planned and at the level
anticipated. Our expectations for the year as a whole therefore
remain unchanged."
An analyst meeting will be held at 9.15 for 9.30am on Wednesday,
11 March at the offices of MHP Communications, 60 Great Portland
Street, London, W1W 7RT. Please contact Charlie Barker on
020 3128 8540 or e-mail brooks@mhpc.comfor further details.
Enquiries to:
Brooks Macdonald Group plc www.brooksmacdonald.com
Chris Macdonald, Chief Executive 020 7499 6424
Simon Jackson, Finance Director
Peel Hunt LLP (Nominated Adviser and Broker)
Guy Wiehahn / Adrian Haxby 020 7418 8900
MHP Communications
Reg Hoare / Simon Hockridge / Giles Robinson
/ Charlie Barker 020 3128 8100
Notes to editors
Brooks Macdonald Group plc is an AIM listed, integrated, wealth
management group. The Group consists of six principal companies:
Brooks Macdonald Asset Management Limited, a discretionary asset
management business; Brooks Macdonald Funds Limited, a fund
management business; Brooks Macdonald Financial Consulting Limited,
a financial advisory and employee benefits consultancy; Brooks
Macdonald Asset Management (International) Limited, a Jersey and
Guernsey based provider of discretionary investment management and
stockbroking; Brooks Macdonald Retirement Services (International)
Limited, a Jersey and Guernsey based retirement planning services
provider; and Braemar Estates (Residential) Limited, an estate
management company.
CHAIRMAN'S STATEMENT
Introduction
The Group has made good progress over the six month period with
continued growth in discretionary funds under management, an
increase in underlying profits, strong investment performance and
further growth of its distribution capabilities.
Results
Revenues have increased by GBP4.1m to GBP37.5m compared to the
same period twelve months ago. Underlying profits have increased to
GBP6.72m compared with GBP6.16m, an increase of 9.1%. Underlying
earnings per share for the period have increased to 41.25p compared
to 40.26p (2.5%).
Statutory profit before tax - taking account of acquisition
costs, the costs of deferred consideration and the amortisation of
intangible assets - was GBP4.5m compared with GBP4.9m in the first
half of last year. Statutory earnings per share (reflecting an
increased tax charge) were 26.63p (2013: 32.69p).
Dividend
The Board has declared an interim dividend of 10.0p (2013:
7.0p), an increase of 43% compared with last year's interim
dividend. As well as reflecting the Board's continued confidence in
the Group's progress this continues our progressive dividend
policy. It is our intention that the interim dividend should over
time become a higher proportion of the total dividend paid. The
interim dividend will be paid on 21 April 2015 to shareholders on
the register on 20 March 2015.
Funds under Management
As announced on 27 January 2015 our discretionary funds totalled
GBP6.95 billion as at 31 December 2014 (2013: GBP5.68 billion).
This represents growth of 6.15% over the six month period and
growth of over GBP1.25 billion year on year (c. 22%).
Property assets under administration totalled GBP1.091 billion
(2013: GBP1.071 billion), advisory assets GBP457m (2013: GBP374m)
and third party assets under administration over GBP225m (2013:
over GBP160m).
Business review
Against a backdrop of volatile but positive investment markets
and continued regulatory change, the first half of our financial
year has been a period of solid progress for the Group with
continued growth in discretionary funds under management, further
development of our investment offering, distribution and IT
systems.
Investment markets were supportive with investment growth of
client assets adding GBP165m which combined with net new business
of GBP238m, represented total organic growth of over 6% over the
six month period.
We continue to invest in our information technology and our full
system refresh is on track to be completed in 2016. In addition we
have invested considerably over the past two years in expanding our
risk, compliance, training and oversight functions across the
Group. These have been important steps to allow us to continue to
grow the business and have a robust framework for the future.
Whilst the ICT investment will continue in 2015, overall we now
expect that our other central infrastructure costs have peaked,
certainly as a percentage of revenue. In addition, we anticipate
moving to new offices in 2015 to accommodate our growth and
following the expiry of our existing lease. This will increase
annual property costs by GBP0.65m annualised but will provide us
with greater flexibility and longer term certainty.
Our Investment Management businesses in the UK and offshore
continued to perform well, in both cases gaining further momentum
in distribution backed by good risk adjusted returns for our
clients. There have been some management changes offshore with
Darren Zaman taking on the role of CEO of Brooks Macdonald
International, replacing John Davey who is leaving the business
later this year. We are accelerating our focus offshore on the
growth of discretionary funds under management both for bespoke
clients and our International Managed Portfolio Service. Advisory
services remain an important offering for international clients but
we see material opportunities for growth around working with
fiduciaries and offshore professional advisers managing
discretionary assets.
Our Funds business (excluding Property Management) has continued
to grow. After the investment into this business over the last
three years we expect that the business will break even for the
second half of this financial year and move into profit for the
2015-16 financial year and beyond. This is important as whilst the
business has been growing well from a funds under management
perspective, it will make a net contribution to the Group for the
first time in 2016.
Financial Planning and our Property Management business have had
mixed periods. Financial Planning typically has a weaker first half
and thus we expect a stronger second half to the financial year.
Property Management has lost two low margin mandates but we
continue to invest into new business development.
As a Group we continue to raise our profile and I am pleased to
report that we now work with over 700 professional advisers and
entered into two new strategic alliances during the period bringing
the total to 17. We have been shortlisted in all our Asset
Management offices for the recent Citywire Wealth Manager Regional
Star Awards 2015 as voted for by the professional adviser community
and this is a strong endorsement of our model. We remain fully
committed to working closely with advisers across the UK and
increasingly offshore.
Outlook and Summary
We remain focussed on growing the business, delivering strong
risk adjusted returns to our clients and look forward to the future
with confidence. Investment in the business continues as planned
and at the level anticipated. Our expectations for the year as a
whole remain unchanged.
Christopher Knight
Chairman
10 March 2015
BROOKS MACDONALD GROUP PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 31 December 2014
Year ended
Six months Six months
ended 31 ended 31
Dec 2014 Dec 2013 30 Jun 2014
Note (unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Revenue 37,503 33,388 69,133
Administrative costs 5 (32,564) (28,271) (58,207)
Operating profit 4,939 5,117 10,926
Finance income 60 62 119
Finance costs (471) (182) (349)
Share of results of joint venture 13 (45) (71) (128)
Profit before tax 4,483 4,926 10,568
Taxation 6 (921) (639) (1,512)
Profit for the period attributable
to equity holders of the Company 3,562 4,287 9,056
------------- ------------- -------------
Other comprehensive income:
Revaluation of available for
sale financial assets (401) (70) (131)
Total comprehensive income for
the period 3,161 4,217 8,925
------------- ------------- -------------
Earnings per share*
Basic 7 26.63p 32.69p 69.01p
Diluted 7 26.51p 32.46p 68.67p
*Comparative amounts for the six months ended 31 December 2013
have been restated to reflect the impact of new shares issued as
consideration on the acquisition of DPZ
The accompanying notes form an integral part of these condensed
consolidated financial statements.
BROOKS MACDONALD GROUP PLC
CONDENSED Consolidated Statement of Financial Position
as at 31 December 2014
31 Dec 2014 31 Dec 2013 30 Jun 2014
Note (unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Intangible assets 10 65,565 44,103 54,874
Property, plant and equipment 11 2,658 2,803 2,971
Available for sale financial assets 12 2,031 1,743 2,182
Investment in joint venture 13 566 75 232
Deferred tax assets 524 825 809
------------- ------------- ------------
Total non-current assets 71,344 49,549 61,068
Current assets
Trade and other receivables 20,054 19,100 21,432
Financial assets at fair value
through profit or loss 14 328 50 478
Cash and cash equivalents 11,768 14,734 18,056
------------- ------------- ------------
Total current assets 32,150 33,884 39,966
Total assets 103,494 83,433 101,034
------------- ------------- ------------
Liabilities
Non-current liabilities
Deferred consideration 15 (11,770) (451) (2,943)
Deferred tax liabilities (5,011) (3,972) (5,117)
Other non-current liabilities (42) (67) (115)
------------- ------------- ------------
Total non-current liabilities (16,823) (4,490) (8,175)
Current liabilities
Trade and other payables (13,769) (11,809) (15,178)
Current tax liabilities (702) (1,042) (1,076)
Provisions 16 (4,024) (6,334) (9,147)
------------- ------------- ------------
Total current liabilities (18,495) (19,185) (25,401)
Net assets 68,176 59,758 67,458
------------- ------------- ------------
Equity
Share capital 136 133 135
Share premium account 35,163 31,883 35,147
Other reserves 4,092 4,404 4,720
Retained earnings 28,785 23,338 27,456
------------- ------------- ------------
Total equity 68,176 59,758 67,458
------------- ------------- ------------
The condensed consolidated financial statements were approved by
the Board of Directors and authorised for issue on 10 March 2015,
signed on their behalf by:
C A J Macdonald S J Jackson
Chief Executive Finance Director
Company registration number: 4402058
The accompanying notes form an integral part of these condensed
consolidated financial statements.
BROOKS MACDONALD GROUP PLC
CONDENSED Consolidated Statement of Changes in Equity
for the period 1 July 2013 to 31 December 2014
Share
Share premium Other Retained
capital account reserves earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 July 2013 133 31,868 3,952 21,607 57,560
--------- --------- ---------- ---------- --------
Comprehensive income
Profit for the period - - 4,287 4,287
Revaluation of available for sale
financial asset - - (70) - (70)
Total comprehensive income - - (70) 4,287 4,217
Transactions with owners
Issue of ordinary shares - 15 - - 15
Share-based payments - - 600 - 600
Share-based payments transfer - - (9) 9 -
Purchase of own shares by employee
benefit trust - - - (572) (572)
Employee benefit trust shares
vested (109) 109 -
Deferred tax on share options - - 40 - 40
Dividends paid (note 8) - - - (2,102) (2,102)
--------- --------- ---------- ---------- --------
Total transactions with owners - 15 522 (2,556) (2,019)
Balance at 31 December 2013 133 31,883 4,404 23,338 59,758
--------- --------- ---------- ---------- --------
Comprehensive income
Profit for the period - - - 4,769 4,769
Other comprehensive income:
Revaluation of available for sale
financial asset - - (61) - (61)
--------- --------- ---------- ---------- --------
Total comprehensive income - - (61) 4,769 4,708
Transactions with owners
Issue of ordinary shares 2 3,264 - - 3,266
Share-based payments - - 688 - 688
Share-based payments transfer - - (427) 427 -
Purchase of own shares by employee
benefit trust - - - (160) (160)
Deferred tax on share options - - 116 - 116
Dividends paid (note 8) - - - (918) (918)
--------- --------- ---------- ---------- --------
Total transactions with owners 2 3,264 377 (651) 2,992
Balance at 30 June 2014 135 35,147 4,720 27,456 67,458
--------- --------- ---------- ---------- --------
Comprehensive income
Profit for the period - - - 3,562 3,562
Other comprehensive income:
Revaluation of available for sale
financial asset - - (401) - (401)
--------- --------- ---------- ---------- --------
Total comprehensive income - - (401) 3,562 3,161
Transactions with owners
Issue of ordinary shares 1 16 - - 17
Share-based payments - - 685 - 685
Share-based payments transfer - - (1,045) 1,045 -
Purchase of own shares by employee
benefit trust - - - (743) (743)
Employee benefit trust shares
vested - - -
Deferred tax on share options - - 133 - 133
Dividends paid (note 8) - - - (2,535) (2,535)
--------- --------- ---------- ---------- --------
Total transactions with owners 1 16 (227) (2,233) (2,443)
Balance at 31 December 2014 136 35,163 4,092 28,785 68,176
--------- --------- ---------- ---------- --------
The accompanying notes form an integral part of these condensed
consolidated financial statements.
BROOKS MACDONALD GROUP PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
for the six months ended 31 December 2014
Six months Six months
ended ended Year ended
31 Dec 2014 31 Dec 2013 30 Jun 2014
Note (unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Cash flow from operating activities
Cash generated from operations 17 7,241 1,902 13,671
Taxation paid (983) (1,180) (2,318)
Net cash generated from operating
activities 6,258 722 11,353
Cash flows from investing activities
Purchase of property, plant and
equipment (204) (856) (1,342)
Purchase of intangible assets (823) (529) (552)
Purchase of available for sale
financial assets (250) (250) (750)
Purchase of financial assets at
fair value through profit or loss - (50) -
Acquisition of subsidiary companies,
net of cash acquired (687) - (3,340)
Cash contribution to joint venture - (146) -
Deferred consideration paid (7,001) - (1,866)
Interest received 60 62 119
Financial assets at fair value
through profit or loss - - (478)
Investment in joint venture (380) - (360)
Proceeds of sale of intangible
assets - - -
Proceeds of sale of available
for sale financial assets - - -
------------- ------------- -------------
Net cash used in investing activities (9,285) (1,769) (8,569)
Cash flows from financing activities
Proceeds of issue of shares 17 15 584
Purchase of own shares by employee
benefit trust (743) (572) (732)
Dividends paid to shareholders (2,535) (2,102) (3,020)
------------- ------------- -------------
Net cash used in financing activities (3,261) (2,659) (3,168)
Net decrease in cash and cash
equivalents (6,288) (3,706) (384)
Cash and cash equivalents at beginning
of period 18,056 18,440 18,440
------------- ------------- -------------
Cash and cash equivalents at end
of period 11,768 14,734 18,056
------------- ------------- -------------
The accompanying notes form an integral part of these condensed
consolidated financial statements.
BROOKS MACDONALD GROUP PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the six months ended 31 December 2014
1. General information
Brooks Macdonald Group plc ('the Company') is the parent company
of a group of companies ('the Group'), which offers a range of
investment management services and related professional advice to
private high net worth individuals, charities and trusts. The Group
also provides financial planning as well as offshore fund
management and administration services and acts as fund manager to
regulated OEICs, providing specialist funds in the property and
structured return sectors and managing property assets on behalf of
these funds and other clients. The Group's primary activities are
set out in its Annual Report and Accounts for the year ended 30
June 2014.
The Group has offices in London, Edinburgh, Guernsey, Hale,
Hampshire, Jersey, Leamington Spa, Manchester, Taunton, Tunbridge
Wells and York. The Company is a public limited company,
incorporated and domiciled in the United Kingdom under the
Companies Act 2006 and listed on AIM. The address of its registered
office is 111 Park Street, Mayfair, London, W1K 7JL.
The consolidated interim financial information was approved for
issue on 10 March 2015. It has been independently reviewed but is
not audited.
2. Accounting policies
a) Basis of preparation
The Group's condensed consolidated half yearly financial
statements are prepared and presented in accordance with IAS 34
'Interim Financial Reporting' as adopted by the European Union.
They have been prepared on a going concern basis with reference to
the accounting policies and methods of computation and presentation
set out in the Group's consolidated financial statements for the
year ended 30 June 2014, except as stated below. The half yearly
financial statements should be read in conjunction with the Group's
audited financial statements for the year ended 30 June 2014, which
have been prepared in accordance with IFRS as adopted by the
European Union.
The information in this announcement does not comprise statutory
accounts within the meaning of section 434 of the Companies Act
2006. The Group's accounts for the year ended 30 June 2014 have
been reported on by the Group's auditors and delivered to the
Registrar of Companies. The report of the auditors was unqualified
and did not draw attention to any matters by way of emphasis. It
contained no statement under section 498(2) or (3) of the Companies
Act 2006.
b) Changes in accounting policies
The Group's accounting policies are consistent with those
disclosed within the annual financial statements for the year ended
30 June 2014, except as described below.
New accounting standards, amendments and interpretations adopted
in the period
A number of new standards and amendments issued by the IASB and
interpretations issued by the IFRS Interpretations Committee (IFRS
IC) have been applied in preparing these condensed consolidated
financial statements as set out in the table below.
None of these new standards, amendments or interpretations has
had a material impact on the amounts reported in these financial
statements, but they may impact the accounting for future
transactions and arrangements.
Standard, Amendment or Interpretation Effective
date
------------------------------------------------------ -------------
Offsetting financial assets and financial liabilities 1 January
(amendments to IAS 32) 2014
------------------------------------------------------ -------------
Consolidation of investment entities (amendments 1 January
to IFRS 10, 12 and IAS 27) 2014
------------------------------------------------------ -------------
Recoverable amount disclosures for non-financial 1 January
assets (amendments to IAS 36) 2014
------------------------------------------------------ -------------
Novation of derivatives and continuation of hedge 1 January
accounting (amendments to IAS 39) 2014
------------------------------------------------------ -------------
IFRIC 21 'Levies' 17 June 2014
------------------------------------------------------ -------------
Contributions to defined benefit plans (amendments 1 July 2014
to IAS 19)
------------------------------------------------------ -------------
Annual improvements (2010-2012 cycle) 1 July 2014
------------------------------------------------------ -------------
Annual improvements (2011-2013 cycle) 1 July 2014
------------------------------------------------------ -------------
IFRIC 21 'Levies' has changed the point at which the Group
recognises provisions in respect of the annual Financial Services
Compensation Scheme ('FSCS') levies. From 1 July 2014, the Group
will recognise such a provision at the point of the triggering
event specified in the relevant legislation. This occurs on 1 April
at the start of the new FSCS scheme year, rather than when the FSCS
initially announces its proposed levy.
New accounting standards, amendments and interpretations not yet
adopted
A number of new standards, amendments and interpretations, which
have not been applied in preparing these financial statements, have
been issued and are effective for annual and interim periods
beginning after 1 July 2014:
Standard, Amendment or Interpretation Effective
date
---------------------------------------------------- ------------
Disclosure initiative (amendments to IAS 1) 1 January
2016
---------------------------------------------------- ------------
Accounting for acquisitions of interests in joint 1 January
operations (amendments to IFRS 11) 2016
---------------------------------------------------- ------------
Sale or contribution of assets between an investor 1 January
and its associate or joint venture (amendments to 2016
IFRS 10 and IAS 28)
---------------------------------------------------- ------------
Investment entities: applying the consolidation 1 January
exception (amendments to IFRS 10, IFRS 12 and IAS 2016
28)
---------------------------------------------------- ------------
Clarification of acceptable methods of depreciation 1 January
and amortisation (amendments to IAS 16 and IAS 38) 2016
---------------------------------------------------- ------------
Annual improvements (2012-2014 cycle) 1 July 2016
---------------------------------------------------- ------------
IFRS 15 'Revenue from Contracts with Customers' 1 January
2017
---------------------------------------------------- ------------
General hedge accounting (amendments to IFRS 9) 1 January
2018
---------------------------------------------------- ------------
These changes are currently being assessed but none are expected
to have a significant impact on the Group's future consolidated
financial statements.
3. Financial risk factors
The Group's activities expose it to a variety of financial and
non-financial risks. The principal risks faced by the Group are
described on pages 56 and 57 of the Annual Report and Accounts for
the year ended 30 June 2014. These key risks include: loss of
clients or reputational damage as a result of poor performance or
service; regulatory breaches; loss of key staff; potential service
issues with IT infrastructure; operational risk due to inadequate
processes and controls; and financial risks such as liquidity risk,
market risk and credit risk. These remain our principal risks for
the second half of the financial year. There have been no
significant changes affecting the fair value or classification of
financial assets during the period.
4. Segmental information
For management purposes the Group's activities are organised
into four operating divisions: investment management, financial
planning, fund and property management and the Channel Islands. The
Group's other activity, offering nominee and custody services to
clients, is included within investment management. These divisions
are the basis on which the Group reports its primary segmental
information. In accordance with IFRS 8 'Operating Segments',
disclosures are required to reflect the information which the Board
uses internally for evaluating the performance of its operating
segments and allocating resources to those segments. The
information presented in this note follows the presentation for
internal reporting to the Group Board of Directors.
During the year ended 30 June 2014 the Group identified the
Channel Islands as being a separate reportable segment. This
comprises the results of BMI, BMRSI and DPZ. Previously, BMI and
BMRSI were included within the investment management and financial
planning segments respectively. The comparatives for the six months
ended 31 December 2013 have been restated in accordance with IFRS 8
to reflect this change.
Revenues and expenses are allocated to the business segment that
originated the transaction. Revenues and expenses that are not
directly originated by a particular business segment are reported
as unallocated. Sales between segments are carried out at arm's
length. Centrally incurred expenses are allocated to business
segments on an appropriate pro-rata basis. Segment assets and
liabilities comprise operating assets and liabilities, being the
majority of the balance sheet.
Fund and
Period ended 31 Investment Financial property Channel
Dec 2014 (unaudited) management planning management Islands Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Total segment revenues 25,948 1,967 2,812 6,897 37,624
Inter segment revenues (54) (46) (21) - (121)
------------ ---------- ------------ --------- --------
External revenues 25,894 1,921 2,791 6,897 37,503
------------ ---------- ------------ --------- --------
Segment result 6,601 (50) (457) 609 6,703
Unallocated items (2,220)
--------
Profit before tax 4,483
Taxation (921)
--------
Profit for the
period 3,562
--------
Period ended 31 Fund and
Dec 2013 (unaudited Investment Financial property Channel
and restated) management planning management Islands Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Total segment revenues 23,855 1,935 2,478 5,362 33,630
Inter segment revenues (78) (116) (48) - (242)
------------ ---------- ------------ --------- --------
External revenues 23,777 1,819 2,430 5,362 33,388
------------ ---------- ------------ --------- --------
Segment result 6,036 (102) 13 1,219 7,166
Unallocated items (2,240)
--------
Profit before tax 4,926
Taxation (639)
--------
Profit for the period 4,287
--------
Fund and
Year ended 30 Jun Investment Financial property Channel
2014 (audited) management planning management Islands Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Total segment revenues 48,988 4,034 5,061 11,556 69,639
Inter segment revenues (156) (223) (127) - (506)
------------ ---------- ------------ --------- --------
External revenues 48,832 3,811 4,934 11,556 69,133
------------ ---------- ------------ --------- --------
Segment result 12,324 (109) (102) 2,376 14,489
Unallocated items (3,921)
--------
Profit before tax 10,568
Taxation (1,512)
--------
Profit for the year 9,056
--------
a) Geographic analysis
The Group's operations are located in the United Kingdom and the
Channel Islands. The following table presents underlying operating
income analysed by the geographical location of the Group entity
providing the service.
Six months ended Year ended
31 Dec 2014 Six months ended 30 Jun 2014
31 Dec 2013
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
United Kingdom 30,606 28,026 57,577
Channel Islands 6,897 5,362 11,556
Total operating income 37,503 33,388 69,133
----------------- ----------------- -------------
b) Major clients
The Group is not reliant on any one client or group of connected
clients for the generation of revenues.
5. Administrative costs
Acquisition costs
Administrative costs for the six months ended 31 December 2014
include GBP120,000 (six months ended 31 December 2013: GBPnil; year
ended 30 June 2014: GBP187,000) of directly attributable business
acquisition costs in relation to the exercise of the Group's option
to purchase Levitas Investment Management Services Limited (note
9).
Financial Services Compensation Scheme levies
Administrative costs for the six months ended 31 December 2014
include a charge of GBPnil (six months ended 31 December 2013:
GBP81,000; year ended 30 June 2014: GBP351,000) in respect of
Financial Services Compensation Scheme ('FSCS') levies.
6. Taxation
The current tax expense for the six months ended 31 December
2014 was calculated based on the estimated average annual effective
tax rate. The overall effective tax rate for this period was 20.54%
(six months ended 31 December 2013: 12.97%; year ended 30 June
2014: 14.31%).
Six months
ended
Six months
31 Dec 2014 ended Year ended
31 Dec 2013 30 Jun 2014
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Current tax
United Kingdom taxation 1,001 1,111 2,477
Over provision in prior years (196) - (17)
------------- -------------- -------------
Total current taxation 805 1,111 2,460
Deferred tax
Origination and reversal of
temporary differences 116 3 (473)
Effect of change in tax rate
on deferred tax - (475) (475)
Total deferred taxation 116 (472) (948)
Total income tax expense 921 639 1,512
------------- -------------- -------------
On 1 April 2014, the standard rate of Corporation Tax in the UK
was reduced from 23% to 21%. The Finance Act 2013 (substantively
enacted on 2 July 2013) will further reduce the main rate of UK
Corporation Tax to 20% with effect from 1 April 2015. As a result
the effective rate of Corporation Tax applied to the taxable profit
for the period ended 31 December 2014 is a 'blended' rate of 20.75%
(six months ended 31 December 2013: 23.75%; year ended 30 June
2014: 22.50%).
Deferred tax assets and liabilities are calculated at the rate
that is expected to be in force when the temporary differences
unwind, but limited to the extent that such rates have been
substantively enacted. Consequently the tax rate used to measure
the deferred tax assets and liabilities of the Group is 20% (six
months ended 31 December 2013: 20%; year ended 30 June 2014: 20%)
on the basis that they will materially unwind after 1 April
2015.
7. Earnings per share
The directors believe that underlying earnings per share provide
a truer reflection of the Group's performance in the year.
Underlying earnings per share are calculated based on 'underlying
earnings', that is earnings before acquisition costs, finance costs
of deferred consideration and amortisation of intangible
non-current assets. The tax effect of these adjustments has also
been considered.
Six months
ended
Six months
31 Dec 2014 ended Year ended
31 Dec 2013 30 Jun 2014
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Earnings attributable to ordinary
shareholders 3,562 4,287 9,056
Acquisition costs (note 5) 120 - 187
Finance cost of deferred consideration
(note 15) 469 182 349
Changes in fair value of deferred
consideration 302 - -
Amortisation (note 10) 1,345 1,050 2,212
Tax impact of adjustments (281) (238) (486)
------------- -------------- -------------
Underlying earnings attributable to
ordinary shareholders 5,517 5,281 11,318
------------- -------------- -------------
The weighted average number of shares in issue during the year
was as follows:
Six months
ended
31 Dec Six months
2014 ended Year ended
31 Dec 2013 30 Jun 2014
(unaudited) (unaudited) (audited)
Number Number of Number of
of shares shares shares
Weighted average number of shares
in issue* 13,375,142 13,138,028 13,145,314
Adjustment for issue of shares on
acquisition of DPZ - (22,417) (21,680)
------------- -------------- -------------
Weighted average number of shares
in issue 13,375,142 13,115,611 13,123,634
Effect of dilutive potential shares
issuable on exercise of employee share
options 61,955 89,521 64,289
------------- -------------- -------------
Diluted weighted average number of
shares in issue 13,437,097 13,205,132 13,187,923
------------- -------------- -------------
*2013 comparative as previously reported
2013 comparative as restated
For the six months ended 31 December 2013, the comparative
weighted average number of shares in issue has been restated to
take account of shares issued at a premium to their market value as
part of the DPZ acquisition, which was completed in April 2014. As
a result, the comparative basic earnings per share and diluted
earnings per share for the same period have been restated
accordingly.
Six months
ended
31 Dec Six months
2014 ended Year ended
31 Dec 30 Jun
(unaudited) 2013 (unaudited) 2014 (audited)
p p p
Based on reported earnings :
Basic earnings per share 26.63 32.69 69.01
Diluted earnings per share 26.51 32.46 68.67
------------- ------------------- -----------------
Based on underlying earnings :
Basic earnings per share 41.25 40.26 86.24
Diluted earnings per share 41.06 39.99 85.82
------------- ------------------- -----------------
2013 comparative as restated
8. Dividends
Six months Six months
ended ended
31 Dec 2014 31 Dec 2013 Year ended
30 Jun 2014
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Paid interim dividend on
ordinary shares - - 918
Paid final dividend on ordinary
shares 2,535 2,102 2,102
------------- ------------- -------------
Total dividends 2,535 2,102 3,020
------------- ------------- -------------
An interim dividend of 10.0p per share was declared by the Board
of Directors on 10 March 2015. It will be paid on 21 April 2015 to
shareholders who are on the register at the close of business on 20
March 2015. In accordance with IAS 10, this dividend has not been
included as a liability at 31 December 2014.
9. Business combinations
On 31 July 2014, the Group exercised its option to acquire the
entire share capital of Levitas Investment Management Services
Limited ('Levitas'). Levitas is the sponsor of two funds known as
TM Levitas A and TM Levitas B, to which Brooks Macdonald Asset
Management Limited acts as the investment adviser. The funds were
launched in July 2012 and aggregate assets under management on
exercise of the option were GBP89m. The Levitas investment
proposition uses a blend of the two funds to match investments to a
client's specific risk rating, thus simplifying the investment and
rebalancing processes while keeping down costs.
The consideration payable by the Group is dependent on the
future assets under management in the Levitas funds, calculated at
agreed milestones up to 1 November 2018 and payable in a series of
instalments, with the final payment date being on or around 8
November 2020. Under the terms of the option agreement, the maximum
consideration payable will be GBP24,000,000. The fair value of the
liability at the acquisition date was measured at GBP11,264,000,
based on the Levitas business plan and forecasts. This included an
initial payment of GBP724,000, which was made to the vendors
following the exercise of the option.
Directly attributable acquisition costs of GBP120,000 were
incurred during the six months ended 31 December 2014 as a result
of the acquisition and have been charged to the Consolidated
Statement of Comprehensive Income.
Goodwill of GBP11,213,000 was recognised on acquisition in
respect of the expected future growth of the Levitas funds and the
resulting economic benefit to the Group in the form of sponsorship
income earned by Levitas.
The fair values of the assets acquired are the gross contractual
amounts and all are considered to be fully recoverable. The fair
value of the identifiable assets and liabilities acquired, at the
date of acquisition, are detailed in (a) below.
a) Net assets acquired through business combinations
GBP'000
Trade and other receivables 37
Cash and cash equivalents 37
Other current liabilities (23)
--------
Total net assets recognised by acquired
company 51
Net identifiable assets 51
Goodwill 11,213
--------
Total purchase consideration 11,264
--------
b) Impact on reported results from date of acquisition
Revenues
from Profit for
external the
customers year
GBP'000 GBP'000
Levitas Investment Management Services
Limited 155 60
----------- -----------
Had Levitas Investment Management Services Limited been
consolidated from 1 July 2014, the Consolidated Statement of
Comprehensive Income would show pro-forma revenue of GBP37,595,000
and post-tax profit for the period of GBP3,593,000.
c) Net cash outflow resulting from business combinations
GBP'000
Total purchase consideration (note 9a) 11,264
Less: deferred cash consideration (10,540)
---------
Cash paid to acquire subsidiary 724
Less: cash held by subsidiary acquired (37)
---------
Cash paid to acquire subsidiary net of cash acquired 687
---------
10. Intangible assets
Contracts
Acquired acquired
client with
relationship fund
Goodwill Software contracts managers Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 July 2013 20,758 333 24,872 2,574 48,537
Additions - 55 - 474 529
At 31 December 2013 20,758 388 24,872 3,048 49,066
Additions 4,035 23 7,875 - 11,933
Disposals - - - - -
--------- --------- -------------- ---------- --------
At 30 June 2014 24,793 411 32,747 3,048 60,999
Additions 11,213 349 - 474 12,036
At 31 December 2014 36,006 760 32,747 3,522 73,035
--------- --------- -------------- ---------- --------
Accumulated amortisation
At 1 July 2013 - 159 2,013 1,741 3,913
Amortisation charge - 56 826 168 1,050
--------- --------- -------------- ---------- --------
At 31 December 2013 - 215 2,839 1,909 4,963
Amortisation charge - 54 932 176 1,162
--------- --------- -------------- ---------- --------
At 30 June 2014 - 269 3,771 2,085 6,125
Amortisation charge - 53 1,084 208 1,345
--------- --------- -------------- ---------- --------
At 31 December 2014 - 322 4,855 2,293 7,470
--------- --------- -------------- ---------- --------
Net book value
At 1 July 2013 20,758 174 22,859 833 44,624
At 31 December 2013 20,758 173 22,033 1,139 44,103
At 30 June 2014 24,793 142 28,976 963 54,874
--------- --------- -------------- ---------- --------
At 31 December 2014 36,006 438 27,892 1,229 65,565
--------- --------- -------------- ---------- --------
a) Goodwill
Goodwill acquired in a business combination is allocated at
acquisition to the cash generating units ('CGUs') that are expected
to benefit from that business combination. The carrying amount of
goodwill at 31 December 2014 comprises GBP3,550,000 in respect of
the Braemar Group Limited ('Braemar') CGU, GBP17,208,000 in respect
of the Brooks Macdonald Asset Management (International) Limited
and Brooks Macdonald Retirement Services (International) Limited
(collectively 'Brooks Macdonald International') CGU and
GBP4,035,000 in respect of the DPZ Capital Limited ('DPZ') CGU and
GBP11,213,000 in respect of Levitas Investment Management Services
Limited
At the reporting date, there were no indicators that the
carrying amount of goodwill should be impaired.
b) Computer software
Software costs are amortised over an estimated useful life of
four years on a straight line basis.
c) Acquired client relationship contracts
This asset represents the fair value of future benefits accruing
to the Group from acquired client relationship contracts. The
amortisation of client relationship contracts is charged to the
Condensed Consolidated Statement of Comprehensive Income on a
straight line basis over their estimated useful lives (15 to 20
years).
d) Contracts acquired with fund managers
This asset represents the fair value of future benefits accruing
to the Group from contracts acquired with fund managers. Payments
made to acquire such contracts are stated at cost and amortised on
a straight line basis over an estimated useful life of five
years.
11. Property, plant and equipment
During the six months ended 31 December 2014, the Group acquired
assets at a cost of GBP204,000 (six months ended 31 December 2013:
GBP856,000; year ended 30 June 2014: GBP1,531,000). No assets were
disposed of in the six months ended 31 December 2014 (six months
ended 31 December 2013: GBPnil; year ended 30 June 2014: GBPnil),
resulting in a gain on disposal of GBPnil (six months ended 31
December 2013: GBPnil; year ended 30 June 2014: GBPnil).
12. Available for sale financial assets
The Group has an investment of GBP1,000,000 in Sancus Holdings
Limited, an unlisted company incorporated in the Channel Islands.
The market value of the investment at 31 December 2014 is
GBP1,000,000.
Available for sale financial assets include an investment in
Braemar Group PCC Limited Student Accommodation Cell - B shares of
GBP1,031,000. The fund is managed by Brooks Macdonald Funds
Limited, a subsidiary of the Group. Trading is currently suspended
on this fund, however the fund manager continues to publish a price
based on the fair value of the underlying assets of the fund.
Six months
ended
Six months
31 Dec 2014 ended Year ended
31 Dec 2013 30 Jun 2014
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
At beginning of period 2,182 1,582 1,582
Additions 250 250 750
Loss from changes in
fair value (401) (89) (150)
------------- -------------- -------------
At end of period 2,031 1,743 2,182
------------- -------------- -------------
13. Investment in joint venture
The investment in joint venture relates to the 60% interest of a
subsidiary of the Group, Brooks Macdonald Funds Limited, in North
Row Capital LLP. The Group has joint control over the partnership,
with the remaining interest owned by two individual partners who
developed the investment approach behind the IFSL North Row Liquid
Property Fund, which was launched in February 2014. The fund offers
investors liquid exposure to global real estate markets by
investing predominantly in property derivatives, as well as
property equity and debt, to gain exposure to the direct property
markets.
The Group's share of the loss for the period reported by North
Row Capital LLP was GBP45,000 (six months ended 31 December 2013:
GBP71,000; year ended 30 June 2014: GBP128,000) which has been
recognised in the Condensed Consolidated Statement of Comprehensive
Income with a corresponding reduction in the investment in joint
venture in the Condensed Consolidated Statement of Financial
Position.
14. Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss comprise
of equity share capital investments. The cost of the investments at
31 December 2014 was GBP478,000 (at 31 December 2013: GBP50,000; at
30 June 2014: GBP478,000) and their market value at 31 December
2014 was GBP328,000 (at 31 December 2013: GBP50,000; at 30 June
2014: GBP478,000). The GBP150,000 loss from changes in fair value
during the period has been recognised in the Condensed Consolidated
Statement of Comprehensive Income. These investments are classified
as level 1 within the fair value hierarchy, as the inputs used to
determine the fair value are quoted prices in active markets for
the equity shares at the measurement date.
15. Deferred consideration
Deferred consideration, which is also included within provisions
in current liabilities to the extent that it is due to be paid
within one year of the reporting date (note 16), relates to the
directors' best estimate of amounts payable in the future in
respect of certain client relationships and subsidiary undertakings
that were acquired by the Group. Deferred consideration is measured
at its fair value based on discounted expected future cash flows.
The movements in the total deferred consideration balance during
the year were as follows:
Six months
ended
Six months
31 Dec 2014 ended Year ended
31 Dec 2013 30 Jun 2014
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
At beginning of the period 11,236 7,927 7,927
Added on acquisitions during
the period 11,264 - 4,826
Finance cost of deferred
consideration 469 182 349
Fair value adjustments 16 - -
Payments made during the
period (7,725) (1,868) (1,866)
At end of the period 15,260 6,241 11,236
------------- -------------- -------------
Analysed as:
Amounts falling due within
one year 3,490 5,790 8,293
Amounts falling due after
more than one year 11,770 451 2,943
At end of period 15,260 6,241 11,236
------------- -------------- -------------
During the six months ended 31 December 2014, deferred
consideration of GBP11,264,000 (six months ended 31 December 2013:
GBPnil; year ended 30 June 2014: GBP4,826,000) was recognised,
which relates to the acquisition of Levitas Investment Management
Services Limited (note 9).
16. Provisions
Six months Six months
ended ended Year ended
31 Dec 2014 31 Dec 2013 30 Jun 2014
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Client compensation
At beginning of the period 503 420 420
Movement during the period 31 43 83
------------- ------------- -------------
At end of the period 534 463 503
------------- ------------- -------------
Deferred consideration
At beginning of the period 8,293 2,123 2,123
Added on acquisitions during
the period 2,304 - 2,367
Interest accrued 120 - 321
Transfer from non-current
liabilities 498 5,535 5,348
Utilised during the period (7,725) (1,868) (1,866)
At end of the period 3,490 5,790 8,293
------------- ------------- -------------
Other provisions
At beginning of the period 351 240 240
Utilised during the period (351) (240) (240)
FSCS levy (note 5) - 81 351
-------------
At end of the period - 81 351
------------- ------------- -------------
Total provisions at beginning
of the period 9,147 2,783 2,783
------------- ------------- -------------
Total provisions at end of
the period 4,024 6,334 9,147
------------- ------------- -------------
a) Client compensation
Client compensation provisions relate to the potential liability
arising from client complaints against the Group. Complaints are
assessed on a case by case basis and provisions for compensation
are made where judged necessary. Complaints are on average settled
within eight months (six months ended 31 December 2013: eight
months; year ended 30 June 2014: eight months) from the date of
notification of the complaint.
b) Deferred consideration
Deferred consideration has been included within provisions as a
current liability to the extent that it is due to be paid within
one year of the reporting date.
A total provision for deferred consideration of GBP7,725,000 was
utilised during the six months ended 31 December 2014 (six months
ended 31 December 2013: GBP1,868,000; year ended 30 June 2014:
GBP1,866,000). This included an amount of GBP1,010,000 paid in
August 2014 to the vendors of JPAM Limited, GBP2,391,000 paid to
the vendors of DPZ Limited, GBP3,600,000 paid to the vendors of
Brooks Macdonald Asset Management (International) Limited and
Brooks Macdonald Retirement Services (International) Limited, and
GBP724,000 paid to the vendors of Levitas Investment Management
Services Limited.
Details of these acquisitions are provided in note 9 and in the
Annual Report and Accounts for the year ended 30 June 2014 on pages
38 and 39.
c) Other provisions
Other provisions include an amount of GBPnil (at 31 December
2013: GBP81,000; at 30 June 2014: GBP351,000) in respect of
expected levies by the Financial Services Compensation Scheme. The
levy for the 2015/16 scheme year has been announced by the FSCS but
does not yet meet the recognition criteria for a provision.
17. Reconciliation of operating profit to net cash inflow from operating activities
Six months Six months
ended ended Year ended
31 Dec 2014 31 Dec 2013 30 Jun 2014
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Operating profit 4,939 5,117 10,926
Depreciation of property, plant
and equipment 516 473 981
Amortisation of intangible assets 1,345 1,050 2,212
Fair value losses on financial
assets at fair value through profit
or loss 150 - -
Fair value adjustments on deferred
consideration 16 - -
Decrease / (increase) in receivables 1,415 (1,326) (2,910)
(Decrease) / increase in payables (1,432) (1,970) 990
(Decrease) / increase in provisions (320) 3,551 194
Decrease in non-current liabilities (73) (5,593) (10)
Share-based payments 685 600 1,288
------------- ------------- -------------
Net cash inflow from operating
activities 7,241 1,902 13,671
------------- ------------- -------------
18. Related party transactions
At 31 December 2014, one of the Company's directors (at 31
December 2013: two; at 30 June 2014: two had taken advantage of the
season ticket loan facility that is available to all staff. The
total amount outstanding at the reporting date was GBPnil (at 31
December 2013: GBP11,000; at 30 June 2014: GBP10,000).
19. Share-based payment schemes
a) Long Term Incentive Scheme ('LTIS')
The Company has made annual awards under the LTIS to executive
directors and other senior executives. The conditional awards,
which vest three years after the grant date, are subject to the
satisfaction of specified performance criteria, measured over a
three year performance period. All such conditional awards are made
at the discretion of the Remuneration Committee.
b) Employee Benefit Trust
The Group established an Employee Benefit Trust ('the Trust') on
3 December 2010. The Trust was established in order to acquire
ordinary shares in the Company to satisfy rights to purchase shares
on the exercise of options awarded under the LTIS. All finance
costs and administration expenses connected with the Trust are
charged to the Condensed Consolidated Statement of Comprehensive
Income as they accrue. The Trust has waived its rights to
dividends.
A grant of 68,408 share options with an exercise price of
GBP14.12 was made under the scheme to directors and employees of
the Group on 14 October 2014. In respect of the six months ended 31
December 2013, a grant of 48,900 share options with an exercise
price of GBP14.64 was made under the scheme to directors and
employees of the Group on 1 November 2013.
As at 31 December 2014, the Company had paid GBP4,054,000 to the
Trust, which had acquired 314,123 ordinary shares on the open
market for consideration of GBP4,027,000.
In November 2014, in respect of the schemes granted in October
2011 and in October 2010, employees of the Group exercised a total
of 86,755 options and instructions were given to the Trust to
release the same number of shares. The cost of the shares released
on exercise of these options amounted to GBP1,002,000. At the
reporting date, the number of shares held in the Trust was 215,992
with a market value of GBP3,023,000.
In November 2013, in respect of the scheme granted in October
2010, employees of the Group exercised a total of 11,376 options
and instructions were given to the Trust to release the same number
of shares. The cost of the shares released on exercise of these
options amounted to GBP109,000. At the 31 December 2013, the number
of shares held in the Trust was 239,696 with a market value of
GBP3,542,000.
c) Company Share Option Plan
The Company has established a Company Share Option Plan
('CSOP'), which was approved by HMRC in November 2013. The CSOP is
a discretionary scheme whereby employees or directors are granted
an option to purchase the Company's shares in the future at a price
set on the date of the grant. The maximum award under the terms of
the scheme is a total market value of GBP30,000 per recipient. The
performance conditions attached to the scheme require an increase
in the diluted earnings per share of the Company of 2% more than
the increase in the RPI over the three years starting with the
financial year in which the option is granted.
A grant of 22,110 share options with an exercise price of
GBP13.805 was made under the scheme to directors and employees of
the Group on 14 October 2014. In respect of the six months ended 31
December 2013, a grant of 21,361 share options with an exercise
price of GBP14.52 was made under the scheme to directors and
employees of the Group on 1 December 2013.
d) Other share-base payment schemes
No awards have been made under other the Group's other
share-based payment schemes, details of which are provided on pages
51 to 53 of the Annual Report and Accounts for the year ended 30
June 2014.
During the six months ended 31 December 2014, employees
exercised options over a total of 1,654 shares at a price of
GBP9.16 in respect of the 2011 Employee Sharesave Scheme.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors confirm that these condensed consolidated interim
financial statements have been prepared in accordance with
International Accounting Standard 34, 'Interim Financial
Reporting', as adopted by the European Union and that the interim
management report includes a fair review of the information
required by DTR 4.2.7 and DTR 4.2.8, namely:
-- an indication of important events that have occurred during
the first six months and their impact on the condensed set of
consolidated financial statements, and a description of the
principal risks and uncertainties for the remaining six months of
the financial year; and
-- material related party transactions in the first six months
and any material changes in the related party transactions
described in the last annual report.
The directors of Brooks Macdonald Group plc are listed in the
Half Yearly Financial Report for the six months ended 31 December
2014.
By order of the Board of Directors
S J Jackson
Finance Director
10 March 2015
INDEPENDENT REVIEW REPORT TO BROOKS MACDONALD GROUP PLC
Introduction
We have been engaged by the Company to review the condensed set
of financial statements in the Half Yearly Financial Report for the
six months ended 31 December 2014, which comprise the Condensed
Consolidated Statement of Comprehensive Income, Condensed
Consolidated Statement of Financial Position, Condensed
Consolidated Statement of Changes in Equity, Condensed Consolidated
Statement of Cash Flows and the related notes. We have read the
other information contained in the Half Yearly Financial Report and
considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set
of financial statements.
Directors' responsibilities
The Half Yearly Financial Report is the responsibility of, and
has been approved by, the directors. The directors are responsible
for preparing the Half Yearly Financial Report in accordance with
the AIM Rules for Companies, which require that the financial
information must be presented and prepared in a form consistent
with that which will be adopted in the Company's annual financial
statements.
As disclosed in note 2, the annual financial statements of the
Group are prepared in accordance with IFRSs as adopted by the
European Union. The condensed set of financial statements included
in this Half Yearly Financial Report has been prepared in
accordance with International Accounting Standard 34, 'Interim
Financial Reporting', as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on
the condensed consolidated set of financial statements in the Half
Yearly Financial Report based on our review. This report, including
the conclusion, has been prepared for and only for the Company for
the purpose of the AIM Rules for Companies 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.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, 'Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity' issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the Half Yearly Financial Report for the six months ended 31
December 2014 is not prepared, in all material respects, in
accordance with International Accounting Standard 34 as adopted by
the European Union and the AIM Rules for Companies.
PricewaterhouseCoopers LLP
Chartered Accountants
10 March 2015
7 More London Riverside, London, SE1 2RT
Notes:
Legislation in the United Kingdom governing the preparation and
dissemination of financial statements may differ from legislation
in other jurisdictions.
The maintenance and integrity of the Brooks Macdonald 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 financial statements since they were
initially presented on the website.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GGUGPWUPAGRU
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