RNS Number:5402I
Vp PLC
27 November 2007
Press Release 27 November 2007
Vp plc
("Vp" or "the Group")
Interim Results
Vp plc, the equipment rental specialist, today announces its Interim Results for
the six months ended 30 September 2007.
* Profit before tax increased by 55% to #12.1m (2006: #7.8m)
* Strong revenue growth of 24% to #76.0m ( 2006: #61.3m)
* Significant margin improvement to 15.9% (2006: 12.7%)
* Interim dividend increased by 24% to 2.80 pence per share
* Capital investment almost doubled to #24m
* Two successful acquisitions during the period and four acquisitions since
period end
Jeremy Pilkington, Chairman of Vp plc, commented:
"I am delighted to be announcing what we believe to be an outstanding set of
results for the period, followed by continued positive trading through the
Autumn. We are satisfied with performance across all our businesses and are
especially pleased with Hire Station's achievement of its margin recovery a year
ahead of schedule.
Furthermore, we are confident that the strength and breadth of our business mix
will stand the Group in good stead for the rest of the year and beyond."
- Ends -
For further information please contact:
Vp plc
Jeremy Pilkington, Chairman Tel: +44 (0) 1423 533 405
jeremypilkington@vpplc.com
Neil Stothard, Group Managing Director Tel: +44 (0) 1423 533 445
neil.stothard@vpplc.com
Mike Holt, Group Finance Director Tel: +44 (0) 1423 533 445
mike.holt@vpplc.com
Abchurch
Sarah Hollins / Emma Johnson Tel: +44 (0) 20 7398 7700
sarah.hollins@abchurch-group.com www.abchurch-group.com
CHAIRMAN'S STATEMENT
I am very pleased to report a further period of excellent progress for the
Group.
In the six months ended 30 September 2007, profit before tax grew by 55% to
#12.1m on revenues ahead by 24% to #76.0m. Margins improved significantly to
15.9% (2006: 12.7%) as did return on average capital employed, rising to 19.8%
from 16.5% at 31 March 2007. Recognising the Group's continuing progress and
these outstanding results in particular, the Board is declaring an interim
dividend of 2.80 pence per share, an increase of 24% payable on 4 January 2008
to shareholders registered at 7 December 2007.
These results have been delivered primarily through strong organic growth
supported by significant capital investment in a generally supportive trading
environment, both domestically and internationally. Capital investment in the
period rose to #24m, almost double last year's level. This level of investment
has been made whilst maintaining gearing at a modest 63%, only marginally ahead
of this time last year, and importantly, whilst further improving the quality of
the return on investment. Recent acquisitions have also made a useful
contribution.
We have seen strong performances from the water, house-building, construction
and remediation sectors, but weaker trading conditions in the rail sector. The
strength of this overall result demonstrates the resilience the Group derives
from operating in a wide diversity of markets.
Business Review
Groundforce produced an outstanding result with all constituent businesses
performing well, including the recently established formwork rental business.
Groundforce finally started to derive benefit from the AMP4 programme and demand
from basement propping and large civil engineering schemes for the large bracing
systems was particularly strong. The depot in Ireland will be operational
shortly and, since the reporting date, Groundforce have acquired two Irish
businesses engaged in shoring and pipe testing rental, for an aggregate
consideration of Euro0.8m. These businesses mirror the type of activities we offer
to our UK customer base and their acquisition will significantly accelerate the
development of our activities in Ireland. During the period, Survey Technology
was successful in being named Sokkia European Dealer of the Year against strong
international competition and we are pleased that the progress this business has
achieved over the last two years has been recognised in this way.
UK Forks had an exceptional period delivering a profit performance in six months
in excess of that achieved for the whole of the previous financial year.
Residential and general construction markets each account for approximately half
of UK Forks business and demand was buoyant from both sectors. Recovery of
market share in the critical South East territory has been an important
contributing factor. UK Forks' unique product offering of a specialist
telehandler service on a national basis continues to offer economies of scale to
those customers who wish to take costs out of their supply chain. Performance
within UK Forks was also aided by strong international demand for the
telehandlers which we have been disposing of as part of our planned fleet
renewal programme. As usual, we expect a less busy second half, including as
it does the traditionally weak Christmas period, but we nevertheless anticipate
a very satisfactory result for the year as a whole.
Airpac Bukom produced a useful improvement in profitability. We have committed
significant capital investment to this business to take advantage of the
opportunities opened up to us by last year's acquisition of Bukom Oilfield
Services and the underlying strength in the international oil and gas markets.
The long manufacturers lead times associated with some of this highly
specialised equipment means that the majority of deliveries will not be received
until the second half of the year, thereby reducing their impact on this year's
result, but giving us a firm base from which to start the next financial year.
The business is heavily engaged in the well test market internationally and on
rig maintenance activities in the North Sea but there remain significant
opportunities for us in pipeline dewatering and other high pressure applications
which the new capital investment will better facilitate. The new satellites in
Western Australia, the Middle East and South America are coming on stream as
planned and will give us a much stronger network from which to service our
international customers.
Torrent Trackside, along with other suppliers to the rail sector, has
experienced difficult trading conditions and faced a number of challenges during
the period. Network Rail conducted a review of its supply chain with a view to
rationalising the number of renewal contractors from six to four and this
inevitably disrupted the work flow during and after the review process. Also,
in July 2007 the Metronet Consortium, one of two providers to London Underground
went into administration. Over the past two years Torrent has been very
successful in diversifying into the London Underground market where a very
significant investment is being made in the maintenance and upgrade of track and
platforms. The subsequent interruption to project activity had an adverse
impact on Torrent's revenues and profitability in this important market. The
work remains to be carried out but it will inevitably be some time before normal
trading patterns are resumed.
On the positive side, in October, Torrent acquired for a consideration of #1.2m
the rail portable plant assets of First Engineering, one of the successful
renewal contractors, together with their premises in Glasgow. The acquisition
includes a three year supply agreement which will enable us to work more closely
with First Engineering in the upgrading of the national rail infrastructure.
Under the circumstances, Torrent has achieved a creditable performance, whilst
carefully managing investment and maintaining its ability to take advantage of
future prospects.
TPA had a successful first half with strong demand from the summer events
market. The MD40 roadway and fence system was launched during the period and
its versatility has proven very popular with customers. TPA's German subsidiary
had a very successful period from modest beginnings and work was also carried
out in Ireland and France. We had expected significant demand from the
multi-billion pound upgrade to the National Grid transmission infrastructure
that was announced last year. Unfortunately, this programme has got off to a
slow start and it will be next year before we see workloads from this sector
improving. During the period, the barrier hire business has been reorganised to
reduce its cost base and refocus it on a broader range of activities outside of
its traditional London market. TPA's business is highly seasonal and its
outturn for the year will be very dependent upon how successful it is in
securing work over the much slower winter period.
Hire Station has had a remarkable half year, with profits ahead of the previous
year's full year figure. Margins at Hire Station continue to improve and we are
now approaching, one year ahead of plan, our goal of matching industry best
margins. MEP, acquired last year, has performed ahead of expectations and has
extended its distribution via the national tool branch network. Climate Hire,
aided by the acquisition of Cool Customers in April has proved highly
successful. The summer period did not produce the usual demand for air
conditioning equipment but the business was instead heavily engaged in
supporting the flood remediation work. We expect Climate Hire's activity to
return to a more normal trading pattern next year. In August Hire Station
acquired the Scottish operations of ET Hire, a three branch tool business in
central Scotland, significantly improving our distribution coverage in this
region. Post the period end, Hire Station acquired Able Safety, a safety
equipment, rental and training business based in West Yorkshire. This
acquisition is an excellent fit with our existing ESS Safeforce business into
which it will be integrated to consolidate our market leadership position.
Outlook
We consider these to be an outstanding set of results and we are pleased to have
seen trading remain positive into the autumn. However, the inevitable
uncertainties of the winter period lie ahead of us and we believe that the full
impact of the liquidity problems in the financial markets has yet to be felt
within the broader economy.
Overall therefore, we remain optimistic about future prospects for the Group and
confident that the outcome for the full year will demonstrate continuing
progress.
Jeremy Pilkington
Chairman
27 November 2007
Condensed Consolidated Income Statement
For the period ended 30 September 2007
Note Six months to 30 Six months to 30 Full year to
Sep 2007 Sep 2006 31 Mar 2007
(unaudited) (unaudited) (audited)
#000 #000 #000
Revenue 3 76,008 61,263 121,607
Cost of sales (50,448) (42,159) (84,897)
Gross profit 25,560 19,104 36,710
Administrative expenses (12,125) (10,333) (20,459)
Operating profit before other income 3 13,435 8,771 16,251
Other income - property profit - - 257
Operating profit 13,435 8,771 16,508
Financial income 132 58 125
Financial expenses (1,496) (1,034) (2,154)
Profit before tax 12,071 7,795 14,479
Income tax expense 4 (2,865) (2,339) (3,998)
Net profit for the period 9,206 5,456 10,481
Basic earnings per 5p ordinary share 8 21.57p 12.71 p 24.50 p
Diluted earnings per 5p ordinary share 8 20.51p 12.16 p 23.34 p
Dividend per share 9 2.80p 2.25 p 8.25p
Dividends paid and proposed (#000) 1,199 954 3,520
Condensed Consolidated Statement of Recognised Income and Expense
For the period ended 30 September 2007
Six months to Six months to Full year to
30 Sep 2007 30 Sep 2006 31 Mar 2007
(unaudited) (unaudited) (audited)
#000 #000 #000
Actuarial gains on defined benefit pension - - 411
scheme
Impact of change in tax rate on items taken (56) - -
direct to equity
Tax on items taken direct to equity - - (123)
Effective portion of changes in fair value of
cash flow hedges (160) 130 366
Foreign exchange translation difference - - (1)
Net (expense)/income recognised directly to (216) 130 653
equity
Profit for the period 9,206 5,456 10,481
Total recognised income and expense for the
period 8,990 5,586 11,134
Condensed Consolidated Balance Sheet
At 30 September 2007
Note 30 Sep 2007 31 Mar 2007 30 Sep 2006
Restated
(unaudited) (audited) (unaudited)
#000 #000 #000
Non-current assets
Property, plant and equipment 5 89,585 76,797 69,592
Intangible assets 6 37,125 35,909 34,122
Total non-current assets 126,710 112,706 103,714
Current assets
Inventories 4,938 4,814 3,372
Trade and other receivables 39,193 30,112 29,735
Cash and cash equivalents 6,746 6,662 4,979
Assets classified as held for resale - - 217
Total current assets 50,877 41,588 38,303
Total assets 177,587 154,294 142,017
Current liabilities
Interest bearing loans and borrowings (15,866) (7,535) (3,073)
Income tax payable (2,970) (1,500) (2,213)
Trade and other payables (37,884) (31,698) (23,466)
Total current liabilities (56,720) (40,733) (28,752)
Non-current liabilities
Interest bearing loans and borrowings (36,283) (35,677) (36,616)
Employee benefits (1,886) (2,048) (2,734)
Other payables (4,240) (4,240) (7,930)
Deferred tax liabilities (6,526) (6,004) (4,944)
Total non-current liabilities (48,935) (47,969) (52,224)
Total liabilities (105,655) (88,702) (80,976)
Net assets 71,932 65,592 61,041
Equity
Issued capital 2,309 2,309 2,309
Share premium 16,192 16,192 16,192
Hedging reserve 117 277 41
Retained earnings 53,287 46,787 42,472
Total equity attributable to equity 71,905 65,565 61,014
holders of parent
Minority interest 27 27 27
Total equity 7 71,932 65,592 61,041
Condensed Consolidated Statement of Cash Flows
For the period ended 30 September 2007
Note Six months to Six months to Full year to
30 Sep 2007 30 Sep 2006 31 Mar 2007
(unaudited) (unaudited) (audited)
#000 #000 #000
Cash flows from operating activities
Profit before taxation 12,071 7,795 14,479
Adjustment for:
Pension fund contributions in excess of service
cost (222) (160) (435)
Share based payment charges 498 497 1,000
Depreciation 5 8,546 6,899 14,093
Amortisation of intangibles 12 12 25
Net interest expense 1,364 976 2,029
Profit on sale of property, plant and equipment (1,731) (1,131) (3,307)
Operating cash flow before changes in working 20,538 14,888 27,884
capital and provisions
Decrease/(increase) in inventories 55 (253) (1,458)
Increase in trade and other receivables (8,761) (1,662) (1,131)
Increase in trade and other payables 5,463 1,708 4,599
Cash generated from operations 17,295 14,681 29,894
Interest paid (1,397) (522) (1,930)
Interest element of finance lease rental (77) (91) (155)
payments
Interest received 132 58 125
Income tax paid (1,051) (894) (2,890)
Net cash from operating activities 14,902 13,232 25,044
Investing activities
Proceeds from sale of property, plant and 4,583 3,267 8,966
equipment
Purchase of property, plant and equipment (25,758) (15,052) (26,746)
Acquisition of businesses and subsidiaries (net 6 (1,889) (91) (4,375)
of cash and overdrafts)
Net cash from investing activities (23,064) (11,876) (22,155)
Cash flows from financing activities
Purchase of own shares by Employee Trust (691) (3,434) (3,671)
Repayment of borrowings - - (156)
Repayment of loan notes (70) (941) (941)
New loans 4,500 3,000 7,000
New finance lease 28 - -
Payment of hire purchase and finance lease (521) (580) (1,105)
liabilities
Dividends paid 9 - - (2,932)
Net cash from financing activities 3,246 (1,955) (1,805)
Net (decrease)/increase in cash and cash
equivalents
(4,916) (599) 1,084
Cash and cash equivalents at beginning of
period
6,662 5,578 5,578
Cash and cash equivalents at end of period 1,746 4,979 6,662
Notes to the Condensed Financial Statements
1. Basis of Preparation
Vp plc (the "Company") is a company domiciled in the United Kingdom. The
Condensed Consolidated Interim Financial Statements of the Company for the half
year ended 30 September 2007 comprise the Company and its subsidiaries (together
referred to as the "Group").
This interim announcement has been prepared in accordance with the Disclosure
and Transparency Rules of the UK Financial Services Authority and the
requirements of IAS34 ("Interim Financial Reporting") as adopted by the EU. The
accounting policies applied are consistent for all periods presented and are in
line with those applied in the annual financial statements for the year ended 31
March 2007 which were prepared in accordance with International Financial
Reporting Standards ("IFRS") as adopted by the EU.
The financial statements for the year ending 31 March 2008 will be impacted by
IFRS 7 Financial Instruments: Disclosure and the Amendment to IAS 1 Presentation
of Financial Instruments - Capital Disclosures which will increase the amount of
disclosure in the full financial statements. The net income and net assets will
not be affected by these two new standards.
The interim announcement was approved by the Board of Directors on 26 November
2007.
The Condensed Consolidated Interim Financial Statements do not include all the
information required for full annual Financial Statements.
The comparative figures for the financial year ended 31 March 2007 are extracted
from the Company's statutory accounts for that financial year. Those accounts
have been reported on by the Company's auditors and delivered to the Registrar
of Companies. The report of the auditors was (i) unqualified, (ii) did not
include a reference to any matters to which the auditors drew attention by way
of emphasis without qualifying their report, and (iii) did not contain a
statement under section 237(2) or (3) of the Companies Act 1985.
The preparation of financial statements in conformity with IFRS requires
management to make judgements, estimates and assumptions that affect the
application of policies and reported amounts of assets and liabilities, income
and expenses. The estimates and associated assumptions are based on historical
experience and various other factors that are believed to be reasonable under
the circumstances; these form the basis of the judgements relating to carrying
values of assets and liabilities that are not readily apparent from other
sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period, or in the period
of the revision and future periods if the revision affects both current and
future periods.
The Balance Sheet comparatives disclosed for the six month period ended 30
September 2006 have been restated to reflect refinements to the completion
accounts for acquisitions in the 12 months following acquisition. The impacts
of the restatement were an increase in the deferred tax liability of #210,000, a
net decrease in current assets and liabilities of #72,000, an increase in fixed
assets of #8,000 and an increase in goodwill of #274,000.
2. Risks and Uncertainties
The risks and uncertainties for the Group have not changed from those disclosed
in the last statutory accounts. In particular the Group comprises six
businesses serving different markets and manages the risks inherent to these
activities. The key external risks include general economic conditions,
competitor actions, the effect of legislation, credit risk and business
continuity. Internal risks relate mainly to investment and controls failure
risk. The Group seeks to mitigate exposure to all forms of risk where
practicable and to transfer risk to insurers where cost effective. The
diversified nature of the Group limits the exposure to external risks within
particular markets. Exposure to credit risk in relation to customers, banks and
insurers is managed through credit control practices. Business continuity plans
exist for key operations and accounting centres. The Group is an active
acquirer and acquisitions may involve risks that might materially affect the
Group performance. These risks are mitigated by extensive due diligence and
appropriate warranties and indemnities from the vendors.
3. Summarised Segmental Analysis
Revenue Operating Profit
Sept 2007 Sept 2006
External Internal Total External Internal Total 2007 2006
Revenue Revenue Revenue Revenue Revenue Revenue
#000 #000 #000 #000 #000 #000 #000 #000
Groundforce 17,260 - 17,260 13,010 - 13,010 4,551 2,752
UK Forks 8,098 320 8,418 6,930 180 7,110 1,929 667
Airpac Bukom 6,075 - 6,075 4,998 - 4,998 1,358 1,248
Hire Station 29,340 240 29,580 22,121 150 22,271 3,449 1,353
Torrent 6,519 - 6,519 6,566 - 6,566 366 910
Trackside
TPA 8,716 - 8,716 7,638 - 7,638 1,782 1,841
76,008 560 76,568 61,263 330 61,593 13,435 8,771
4. Income Tax
The effective tax rate of 23.7% in the period to 30 September 2007 (30 September
2006: 30%) is made up of two elements. Firstly, an estimated underlying tax
rate of 27.9% for the full year to 31 March 2008 and secondly a release of #0.5m
(4.2%) from the opening deferred tax balance as a result of the change in the
future UK corporation tax rate from 30% to 28% with effect from next financial
year.
5. Property, Plant and Equipment
2007 2006
#000 #000
Carrying amount 1 April 76,797 66,041
Additions 23,530 12,803
Acquisitions 656 -
Depreciation (8,546) (6,899)
Disposals (2,852) (2,136)
Transfer to assets held for resale - (217)
Carrying amount 30 September 89,585 69,592
The value of capital commitments at 30 September 2007 was #13,186,000 (31 March
2007: #12,465,000).
6. Acquisitions
The Group acquired the following businesses in the period to 30 September 2007.
The acquisitions were made by its subsidiary Hire Station Limited.
Name of acquisition Date of Type of acquisition Principle activity
acquisition
L&P 52 Limited (Cool Customers) 17 April 2007 Share purchase (100% equity) Hire and sale of cooling
equipment
Scottish branches of ET Hire 6 August 2007 Business and assets Hire and sale of small tools
None of the acquisitions in the current period were individually material in
Group terms and hence the details are provided in aggregate below:
#000
Property, plant and equipment 656
Current assets 339
Cash 257
Tax, trade and other payables (334)
Book value and fair value of assets acquired 918
Goodwill on acquisition 1,228
Cost of acquisitions 2,146
Satisfied by
Cash consideration 2,100
Acquisition costs 46
2,146
Analysis of cash flow for acquisitions
Consideration 2,100
Acquisition costs 46
Cash included in acquisitions (257)
1,889
Certain of the fair values included above are provisional due to the timing of
acquisitions and will be finalised within 12 months of the acquisition date.
As a result of the immediate integration of the acquisitions into Hire Station's
business, including the transfer of assets between branches, it is not possible
to accurately disclose separately the trading performance of the acquisitions in
the Income Statement. For the same reason it is not possible to disclose what
the revenue or profit for the combined entity would have been had all business
combinations effected in the period occurred on 1 April 2007.
Goodwill on acquisitions relates to the relationships, skills and inherent
market knowledge of employees within the acquired businesses together with the
synergistic benefits within the enlarged businesses post acquisition,
principally through economies of scale and improved business processes and
management. These are critical to the ongoing success of any specialised
equipment rental business, together with the availability of the right
equipment.
7. Statement of Changes in Equity
Six months to Six months to Full year to
30 Sep 2007 30 Sep 2006 31 Mar 2007
#000 #000 #000
Total recognised income and expense for the 8,990 5,586 11,134
period
Impact of change in tax rate on items taken (51) - -
directly to equity
Tax movements to equity - - (22)
Share option charge in the period 498 497 1,000
Gains/(losses) on disposal of shares 160 47 (240)
Net movement in shares held by Vp Employee (691) (3,434) (3,671)
Trust at cost
Dividends to shareholders (2,566) (1,978) (2,932)
Change in equity during the period 6,340 718 5,269
Equity at the start of the period 65,592 60,323 60,323
Equity at the end of the period 71,932 61,041 65,592
Included in the above changes are a reduction of #160,000 (September 2006:
#130,000 increase, March 2007: #366,000 increase) in the Hedging Reserve. There
were no changes in Issued Share Capital or Share Premium.
8. Earnings Per Share
Earnings per share have been calculated on 42,684,615 shares (2006: 42,934,732)
being the weighted average number of shares in issue during the period. Diluted
earnings per share have been calculated on 44,886,741 shares (2006: 44,869,566)
adjusted to reflect conversion of all potentially dilutive ordinary shares.
9. Dividends
The Directors have declared an interim dividend of 2.80 pence (2006: 2.25 pence)
per share payable on 4 January 2008 to shareholders on the register at 7
December 2007. The dividend proposed at the year end was subsequently approved
at the AGM in September and therefore accrued, but was not paid in the period
(2006 paid: nil). The cost of dividends in the Statement of Changes in Equity
is after adjustments for the interim and final dividends waived by the Vp
Employee Trust in relation to the shares it holds for the Group's share option
schemes.
10. Analysis of Net Debt
As at Cash As at
1 Apr 07 Flow 30 Sep 07
#000 #000 #000
Cash in hand and at bank less overdrafts 6,662 (4,916) 1,746
Revolving credit facilities (40,500) (4,500) (45,000)
Loan notes (70) 70 -
Finance leases and hire purchases (2,642) 493 (2,149)
(36,550) (8,853) (45,403)
The movement in revolving credit facilities is a further draw down from the
existing facilities.
11. Subsequent Events
Since the half year the Group has made four acquisitions totalling #2.5m. In
October the rail portable assets of First Engineering together with their
premises in Glasgow were acquired by Torrent Trackside Limited for a
consideration of #1.2m. In November, the Company acquired two Irish businesses
engaged in shoring and pipe testing rental, for a consideration of Euro0.8m and
Hire Station Limited acquired Able Safety (Yorkshire) Limited, a safety
equipment rental and training business based in West Yorkshire for #0.75m.
Responsibility statement of the directors in respect of the half-yearly
financial report
We confirm that to the best of our knowledge:
* the condensed set of financial statements has been prepared in accordance with
IAS 34 Interim Financial Reporting as adopted by the EU
* the interim management report includes a fair review of the information
required by:
(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of
important events that have occurred during the first six months of the financial
year and their impact on the condensed set of financial statements; and a
description of the principal risks and uncertainties for the remaining six
months of the year; and
(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party
transactions that have taken place in the first six months of the current
financial year and that have materially affected the financial position or
performance of the entity during that period; and any changes in the related
party transactions described in the last annual report that could do so.
By order of the Board
27 November 2007
The Board
The Board of Directors who served during the 6 months to 30 September 2007 is
unchanged from that set out on page 16 of the Annual Report and Financial
Statements 2007.
Independent Review Report to Vp plc
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 30
September 2007 which comprises the Condensed Consolidated Income Statement,
Condensed Consolidated Balance Sheet, Condensed Consolidated Statement of Cash
Flows, Condensed Consolidated Statement of Recognised Income and Expense and the
related explanatory 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.
This report is made solely to the company in accordance with the terms of our
engagement to assist the company in meeting the requirements of the Disclosure
and Transparency Rules ("the DTR") of the UK's Financial Services Authority
("the UK FSA"). Our review has been undertaken so that we might state to the
Company those matters we are required to state to it in this report and for no
other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company for our review work, for
this report, or for the conclusions we have reached.
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 DTR of the UK FSA.
As disclosed in note 1, the annual Financial Statements of the Group are
prepared in accordance with IFRSs as adopted by the EU. The condensed set of
Financial Statements included in this half-yearly financial report has been
prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the
EU.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of Financial Statements in the half-yearly financial report based on our
review.
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 UK. 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 30 September 2007 is not prepared, in
all material respects, in accordance with IAS 34 as adopted by the EU and the
DTR of the UK FSA.
KPMG Audit Plc
Chartered Accountants Leeds
27 November 2007
This information is provided by RNS
The company news service from the London Stock Exchange
END
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