The Clarkson Hill Group Plc (the "Group")
Half Yearly Report for the period 1 August 2007 to 31 January 2008
Chief Executive Officer's Statement
I am pleased to present the interim statement for the six months to 31 January
2008.
Highlights
* Profit before tax �6,439 (2007 �11,591)
* Turnover increased by 26 per cent. to �10.681 million (2007 �8.476 million)
* Operating efficiency improved to 16.7 per cent.* (2007 20.3%) retaining the
Plimsoll ranking of sixth most efficient IFA (February 2008).
* Number of advisers increased by 17 per cent. to 354 as at 31 January 2008
(31 January 2007 303 advisers)
* Total funds under management approximately �874 million (not calculated for
2007)
*See operating efficiency below
**Plimsoll Top 200 IFA, February 2008
Financial Results
6 months to Restated
31 Jan 2008 6 months to
(�'000) 31 Jan 2007
(�'000)
Turnover 10,681 8,476
Gross profit 1,809 1,753
Administrative Expenses 1,788 1,726
Operating Profit 21 27
Profit before tax for the group 6 12
Cash and cash equivalents 599 469
Results
Profits
The Group's progress has resulted in first half pre-tax profits of �6,439
compared with �11,591 for same period to 31 January 2007.
Trading
Turnover for the six months to 31 January 2008 increased by 26 per cent. to
�10.68 million (2007 �8.47 million) with gross profit increasing by 3 per cent.
to �1.8 million (2007 �1.75 million).
Funds under Advice
A comprehensive review of the Group's current funds under advice is underway,
with a view to the introduction of an overall `Assets under Management'
strategy that will be introduced to each Clarkson Hill client and adviser. The
roll out of this project is designed to enhance the level and quality of advice
provided to our clients and enable ongoing reviews and valuations to take
place.
These funds continue to grow with �874 million now under management. The Board
are confident that the implementation of this project will significantly
enhance the Group's growth prospects.
Operating Efficiency
The Board continues to focus on operational efficiency; this has improved to
16.7 per cent. in the half year (2007 restated 20.3 per cent.). The Board
determine this by way of the administration costs as a percentage of the gross
income. The Board's success in this area is demonstrated by the Group's
appearance yet again in the independently determined Plimsoll Top 200 IFA
report, dated March 2008. In the latest report, the Group is rated as the sixth
most efficient IFA, based on sales returns as a percentage of employee
remuneration.
Dividends
It is the intention of the Board to establish the payment of dividends to
shareholders as soon as is appropriate. In last year's interim report it was
stated that the Board was considering a proposal to reduce the company's share
premium account thereby eliminating the deficit created by goodwill impairment
and accumulated losses from previous years. This proposal is still under
consideration.
Segmental Analysis
The business segment performance highlights:
- Single Premium Investments up by 44 per cent.
- Pension Investments up by 12 per cent.
- Fees (including mortgages) up by 22 per cent.
- Protection up by 3 per cent.
Financial Year End
It is the intention of the Board to change the financial year-end of the Group
from 31 July to 31 December. This will then fall in line with the budgeting,
targeting and operational processes operated by the Company. This change is
intended to take place in the current year and will result in a seventeen month
trading period to 31 December 2008.
Treating Customers Fairly
The Board continues to give full regard for the requirements determined by the
FSA for Treating Customers Fairly.
Appointments
The Board is pleased to confirm that Bill Moncrieff, previously Director of
Strategy and Development has been appointed as Managing Director, Adviser
Sales. Mr Moncrieff has been with the Company for five years.
Current Trading
Trading continues in line with the Board's expectations.
Outlook
Since January 2008 the Group has recruited a further 25 advisers. The Board
believes that having established an effective and efficient administrative
processing system, the Group has the foundations in place to continue
recruitment of professional advisers leading to improved profitability. In
addition, the focus on assets under management will be beneficial both to our
clients and the Company.
Ron Pritchard
Chief Executive Officer
24 April 2008
Group Income Statement
Unaudited Interim Results to 31 January 2008
6 months to Restated Year ended
31 January 2008 6 months to 31 July 2007
Unaudited 31 January 2007 Audited
Unaudited
� � �
Revenue from continuing operations 10,681,852 8,476,474 18,300,143
Cost of sales (8, 872,441) (6,723,406) (14,649,130)
Gross profit 1,809,411 1,753,068 3,651,013
Net operating expenses (see note 1) (1,788,584) (1,725,711) (3,595,257)
Operating profit from continuing 20,827 27,357 55,756
operations
Interest receivable and similar 12,293 9,408 18,631
income
Finance costs (26,681) (25,174) (49,108)
Profit on ordinary 6,439 11,591 25,279
activities before taxation
Taxation on profit on (6,298) (11,279) (24,576)
ordinary activities
Profit attributable to shareholders 141 312 703
Earnings per share - basic 0. p 0. p 0.p
- diluted N/A N/A N/A
There are no recognised gains or losses other than the profit or loss for the
above financial periods.
None of the group's activities were acquired or discontinued during the above
financial periods.
Group Balance Sheet
Unaudited Interim Results at 31 January 2008
31 January Restated 31 July
2008 2007
31 January
Unaudited 2007 Audited
Unaudited
� � �
ASSETS
Non-current assets
Intangibles (see note 1) 174,217 126,959 136,820
Property, plant and equipment 181,084 182,677 193,533
Investments 7,000 7,000 7,000
Deferred tax 333,900 353,495 340,198
696,201 670,131 677,011
Current Assets
Trade and other receivables 3,294,894 3,088,125 3,400,452
Cash and cash equivalents 599,004 469,149 663,026
3,893,898 3,557,274 4,063,478
Total Assets 4,590,099 4,227,405 4,740,489
EQUITIES & LIABILITIES
Equity attributable to equity holders
of the parent
Called-up share capital 482,154 482,154 482,154
Share premium 2,140,073 2,140,073 2,140,073
Merger reserve (99,000) (99,000) (99,000)
Retained earnings (see note 1) (1,391,825) (1,392,357) (1,391,966)
Total equity 1,131,402 1,130,870 1,131,261
Non-current liabilities
Long-term borrowings 200,000 269,320 206,584
Total non-current liabilities 200,000 269,320 206,584
Current liabilities
Trade and other payables 2,933,429 2,385,800 2,631,468
Short term borrowings 160,430 166,818 555,457
Current portion of long-term 120,000 139,591 125,000
borrowings
Current tax payable 44,838 135,006 90,719
Total current liabilities 3,258,697 2,827,215 3,402,644
Total equity & liabilities 4,590,099 4,227,405 4,740,489
Group Cash Flow Statement
Unaudited Interim Results to 31 January 2008
6 months to Restated Year ended
31 January 6 months to 31 July
2008 2007
31 January
Unaudited 2007 Audited
Unaudited
Cash flows from operating activities
� � �
Profit before taxation 6,439 11,591 25,279
Adjustments for :
Depreciation 25,200 24,000 52,994
Impairment (1,775) 8,734 31,242
Interest net 14,388 15,766 30,477
Operating profit before working 44,252 60,091 139,992
capital changes
Decrease/(Increase) in trade and 105,558 (200,120) (514,177)
other receivables
Increase in trade and other payables 256,080 165,052 366,433
Cash generated from operations 405,890 25,023 (7,752)
Interest paid (26,681) (25,174) (49,108)
Net cash outflow from operating 379,209 (151) (56,860)
activities
Cash flows from investing activities
Taxation - - 1,730
Purchase of intangibles (36,162) (60,000) (91,829)
Purchase of property, plant and (12,751) (28,714) (68,564)
equipment
Interest received 12,293 9,408 18,631
Net cash used in investing activities (36,620) (79,306) (140,032)
Cash flows from financing activities
Proceeds from long term borrowing 360,000 - -
(Repayment of) long term borrowings (375,046) (62,627) (134,629)
Movement in short term borrowings (385,899) 70,724 460,167
Payment of hire purchase and finance (5,666) (6,128) (12,257)
liabilities
Net cash (used in)/from financing (406,611) 1,969 313,281
activities
Net (decrease)/increase in cash and (64,022) (77,488) 116,389
cash equivalents
Cash and cash equivalents at the 663,026 546,637 546,637
beginning of the period
Cash and cash equivalents at the end 599,004 469,149 663,026
of the period
Group Statement of Changes in Equity
Unaudited Interim Results to 31 January 2008
Share Share Merger Retained Total
Capital Premium Reserve Reserves
� � � � �
At 1 August 2006 - 482,154 2,140,073 (99,000) (1,392,669) 1,130,558
Restated
Profit for the six months - - - 312 312
At 31 January 2007 - 482,154 2,140,073 (99,000) (1,392,357) 1,130,870
Restated
Profit for the six months - - - 391 391
At 1 August 2007 482,154 2,140,073 (99,000) (1,391,966) 1,131,261
Profit for the six months - - - 141 141
As at 31 January 2008 482,154 2,140,073 (99,000) (1,391,825) 1,131,402
1. Basis of Preparation and Accounting Policies
The interim financial information has been prepared in accordance with
International Accounting Standards (IAS) and International Financial Reporting
Standards (IFRS). It does not include all the information required for full
annual financial statements. Full details of the accounting policies adopted
will be included in the financial figures for the period ending 31 December
2008 and are not expected to be materially different from those set out in the
Audited Financial Statements for the year ended 31 July 2007. The comparative
figures for the six months to 31 January 2007 have been restated to reflect the
income recognition policy adopted in the Audited financial statements to the 31
July 2007.
2. Nature of Financial Information
The financial information contained in this report does not constitute the
Group's Statutory Accounts within the meaning of Section 240 of The Companies
Act 1985. The financial information shown in respect of the year ended 31 July
2007 has been extracted from the Audited Financial Statements which have been
filed with the Registrar of Companies. The Auditors' Report on those Financial
Statements was unqualified and did not contain any statement under Section 273
of the Companies Act 1985.
3. Earnings per share
The earnings per share is calculated on the profit attributable to ordinary
shareholders of �141 (period ended 31 January 2007: profit �312 and year ended
31 July 2007: profit �703) divided by 24,107,677 being the weighted average
number of ordinary shares in issue during each of these periods.
During the periods reported on, the share warrants and options in issue were
antidilutive and accordingly there is no dilution of profit/(loss) per share.
However, they could potentially dilute basic earnings per share in the future.
4. Segment Analysis
The Group's primary reporting segment is by business type and as all business
is carried out in the UK a secondary geographical segment is not considered
relevant. The business segments can be analysed to the gross profit level;
other costs, assets and liabilities are not directly attributable to any of the
segments and apportionment is not considered meaningful.
6 months 6 months Restated Restated Year ended Year ended
to 31 to 31 31 July 31 July
January January 6 months 6 months 2007 2007
2008 2008 to 31 to 31
January January
2007 2007
Unaudited Unaudited Unaudited Unaudited Audited Audited
Turnover Gross Turnover Gross Turnover Gross
Profit Profit Profit
�'000 �'000 �'000 �'000 �'000 �'000
Investments 4,035 709 2,797 586 6,880 1,253
Pensions 2,992 479 2,674 568 5,314 967
Fees/ 1,765 270 1,317 248 2,674 560
mortgages
Protection 1,804 266 1,640 303 3,186 625
Other 85 85 48 48 246 246
10,681 1,809 8,476 1,753 18,300 3,651
5. Copies of the Interim Report
Copies of the Interim Report will be sent to shareholders and are also
available from the Company Secretary at the company's registered office:
Alexandra House, 33 Alexandra Road, Wisbech, Cambridgeshire, PE13 1HQ.
Contact
Ron Pritchard, Director
The Clarkson Hill Group Plc
Telephone 01945 585721
Liam Murray, Nominated Adviser
Dowgate Capital Advisers Limited
Telephone 020 7492 4777
END
Clarkson Hill (LSE:CLKH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Clarkson Hill (LSE:CLKH)
Historical Stock Chart
From Jul 2023 to Jul 2024
