The Clarkson Hill Group Plc (the "Group")
Interim Report - 1 August 2007 to 31 July 2008
Chief Executive Officer's Statement
I am pleased to present the interim statement for the twelve months to 31 July 2008.
Highlights
* Profit before tax �20,031 (2007 �25,279)
* Turnover increased by 21 per cent. to �22.139 million (2007 �18.300 million)
* Operating efficiency improved to 15.8 per cent.*(2007 19.6%)
* Number of advisers increased by 4 per cent. to 364 as at 31 July 2008 (31 July 2007 350 advisers)
*See operating efficiency below
Financial Results
12 months to 6 months to 12 months to
31 July 2008 31 Jan 2008 31 July 2007
(�'000) (�'000) (�'000)
Turnover 22,139 10,681 18,300
Gross profit 3,527 1,809 3,651
Administrative Expenses 3,493 1,788 3,595
Operating Profit 34 21 56
Profit before tax for the 20 6 25
group
Cash and cash equivalents 627 599 663
Results
Profits
The Group's progress has resulted in twelve month pre-tax profits of �20,031 compared with �25,279
for same period to 31 July 2007.
Trading
Turnover for the twelve months to 31 July 2008 increased by 21 per cent. to �
22.139 million (2007 �18.300 million) with gross profit decreasing by 3 per
cent. to �3.527 million (2007 �3.651 million).
Funds under Advice
Continuing focus has been placed on introducing an overall `Assets under
Management' strategy, linking the `Treating Customers Fairly' initiative with
the provision of asset allocation and regular rebalancing in line with clients'
risk/reward requirements.
In the twelve-month period to July 2008, �361 million of single premium
business (both pension and investment) has been completed.
The new strategy is being rolled-out to advisers and clients during the third
quarter 2008.
Operating Efficiency
The Board continues to focus on operational efficiency; this has improved to
15.8 per cent. in the year (2007 19.6 per cent.). The Board determine this by
way of the administration costs as a percentage of the gross income.
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 14 per cent.
- Pension Investments up by 22 per cent.
- Fees (including mortgages) up by 22 per cent.
- Protection up by 40 per cent.
Financial Year End
The financial year-end of the Group has been changed from 31 July to 31
December, so that it falls in line with the budgeting, targeting and
operational processes operated by the Group. The audited accounts will
therefore be for the 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.
Current Trading
Trading continues in line with the Board's expectations.
Outlook
The Group is now experiencing the impact of the `credit crunch' as clients are
experiencing difficulties in buying, selling and re-mortgaging their houses.
However, this income represented less than 15% of the Group's revenue for the
twelve months to July 2008.
It is anticipated that revenue will slow, but given a continued attention to
administrative efficiency and regular client reviews, the impact on the Group
will be minimised.
Ron Pritchard
Chief Executive Officer
20 October 2008
Group Income Statement
Unaudited Interim Results to 31 July 2008
12 months to 6 months to Year ended
31 July 2008 31 January 2008 31 July 2007
Unaudited Unaudited Audited
� � �
Revenue from continuing operations 22,139,157 10,681,852 18,300,143
Cost of sales (18,612,424) (8, 872,441) (14,649,130)
Gross profit 3,526,733 1,809,411 3,651,013
Net operating expenses (see note 1) (3,492,783) (1,788,584) (3,595,257)
Operating profit from continuing 33,950 20,827 55,756
operations
Interest receivable and similar 32,351 12,293 18,631
income
Finance costs (46,270) (26,681) (49,108)
Profit on ordinary 20,031 6,439 25,279
activities before taxation
Taxation on profit on (9,326) (6,298) (24,576)
ordinary activities
Profit attributable to shareholders 10,705 141 703
Earnings per share - basic 0.04 p 0. p 0.p
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 July 2008
31 July 2008 31 January 31 July
Unaudited Unaudited Audited
� � �
ASSETS
Non-current assets
Intangibles (see note 1) 120,055 174,217 136,280
Property, plant and equipment 167,504 181,084 193,533
Investments 7,000 7,000 7,000
Deferred tax 332,816 333,900 340,198
627,375 696,201 677,011
Current Assets
Trade and other receivables 4,229,948 3,294,894 3,400,452
Cash and cash equivalents 626,607 599,004 663,026
4,856,555 3,893,898 4,063,478
Total Assets 5,483,930 4,590,099 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 2,138,011 2,140,073 2,140,073
Merger reserve (99,000) (99,000) (99,000)
Retained earnings (see note 1) (1,381,261) (1,391,825) (1,391,966)
Total equity 1,139,904 1,131,402 1,131,261
Non-current liabilities
Long-term borrowings 140,000 200,000 206,584
Total non-current liabilities 140,000 200,000 206,584
Current liabilities
Trade and other payables 3,917,631 2,933,429 2,631,468
Short term borrowings 112,500 160,430 555,457
Current portion of long-term 120,000 120,000 125,000
borrowings
Current tax payable 53,895 44,838 90,719
Total current liabilities 4,204,026 3,258,697 3,402,644
Total equity & liabilities 5,483,930 4,590,099 4,740,489
Group Cash Flow Statement
Unaudited Interim Results to 31 July 2008
12 months to 6 months to Year ended
31 July 2008 31 January 2008 31 July 2007
Unaudited Unaudited Audited
Cash flows from operating activities
� � �
Profit before taxation 20,031 6,439 25,279
Adjustments for :
Depreciation 54,000 25,200 52,994
Impairment (1,775) (1,775) 31,242
Interest net 13,919 14,388 30,477
Operating profit before working 86,175 44,252 139,992
capital changes
Decrease/(Increase) in trade and (829,496) 105,558 (514,177)
other receivables
Increase in trade and other payables 1,247,395 256,080 366,433
Cash generated from operations 504,074 405,890 (7,752)
Interest paid (46,270) (26,681) (49,108)
Net cash outflow from operating 457,804 379,209 (56,860)
activities
Cash flows from investing activities
Taxation - - 1,730
Purchase of intangibles (42,000) (36,162) (91,829)
Disposal of intangibles 60,000 - -
Purchase of property, plant and (27,971) (12,751) (68,564)
equipment
Interest received 32,351 12,293 18,631
Net cash used in investing activities 22,380 (36,620) (140,032)
Cash flows from financing activities
Proceeds from long term borrowing 350,000 360,000 -
(Repayment of) long term borrowings (421,584) (375,046) (134,629)
Movement in short term borrowings (434,495) (385,899) 460,167
Payment of hire purchase and finance (8,462) (5,666) (12,257)
liabilities
Share premium costs (2,062) - -
Net cash (used in)/from financing (516,603) (406,611) 313,281
activities
Net (decrease)/increase in cash and (36,419) (64,022) 116,389
cash equivalents
Cash and cash equivalents at the 663,026 663,026 546,637
beginning of the period
Cash and cash equivalents at the end 626,607 599,004 663,026
of the period
Group Statement of Changes in Equity
Unaudited Interim Results to 31 July 2008
Share Share Merger Retained Total
Capital Premium Reserve Reserves
� � � � �
At 31 July 2006 482,154 2,140,073 (99,000) (1,392,669) 1,130,558
Changes in equity for
2007
Profit for the period - - - 703 703
At 31 July 2007 482,154 2,140,073 (99,000) (1,391,966) 1,131,261
Changes in equity for
2008
Profit for the period - - - 10,705 10,705
Additional share issue - (2,062) - - (2,062)
costs
As at 31 July 2008 482,154 2,138,011 (99,000) (1,381,261) 1,139,904
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. The accounting reference date has been changed to
31 December and, accordingly, full details of the accounting policies adopted
will be included in the financial figures for the seventeen months 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.
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 �10,705 (6 months to 31 Jan 2008: profit �141, 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 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.
12 months 12 months 6 months to 6 months to Year ended Year ended
to 31 July to 31 July 31 January 31January 31 July 31 July
2008 2008 2008 2008 2007 2007
Unaudited Unaudited Unaudited Unaudited Audited Audited
Turnover Gross Turnover Gross Turnover Gross
Profit Profit Profit
�'000 �'000 �'000 �'000 �'000 �'000
Investments 7,820 1,234 4,035 709 6,880 1,253
Pensions 6,480 973 2,992 479 5,314 967
Fees/ 3,257 606 1,765 270 2,674 560
mortgages
Protection 4,471 629 1,804 266 3,186 625
Other 111 85 85 85 246 246
22,139 3,527 10,681 1,809 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 and may
be downloaded from the Company's website at www.theclarksonhillgroup.co.uk
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
