TIDMVP.
Press Release 30 November 2010
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 2010.
Highlights
* Revenues of GBP71.1 million (same level as H1 2009)
* Profit before tax and amortisation of GBP8.6 million (H1 2009: GBP9.8 million)
* Capital investment increased to GBP9.7 million (2009: GBP7.6 million)
* Net debt reduced by GBP8 million to GBP40 million representing financial
gearing of 35%
* Interim dividend maintained at 3.1 pence per share
* Solid balance sheet with strong cash performance
Jeremy Pilkington, Chairman of Vp plc, commented:
"Despite the adverse conditions which have existed in some of our core markets,
the Group has delivered very satisfactory profits and margins. These results
reinforce our confidence in the quality of our business model, which has
demonstrated once again its ability to mitigate the impact of individual sector
weaknesses through the diversity of the Group's activities. The Group has
delivered further significant debt reductions and our balance sheet is again
stronger than at the same time last year. This financial strength will continue
to be a great asset to the Group in its future development.
"The Group has experienced a period of general stability over the last six
months and this has continued since the end of the half year. We believe any
recovery in the economy will be slow and that there will be further challenges
along the way. However, the Board remains confident of the Group's ability to
capitalise on opportunities as they arise."
- 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
Media enquiries:
Abchurch Communications
Sarah Hollins / Mark Dixon Tel: +44 (0) 20 7398 7729
mark.dixon@abchurch-group.com www.abchurch-group.com
CHAIRMAN'S STATEMENT
I am pleased to be able to report a very satisfactory set of results for the six
months to 30 September 2010, given the difficult trading environment in which
the Group has operated.
Revenues of GBP71.1 million were at the same level as the corresponding period
last year and delivered profit before amortisation and taxation of GBP8.6 million
(2009: GBP9.8m). We are very pleased to have been able to maintain top line
revenues and have experienced a generally stable market since the beginning of
the financial year. Volatilities and uncertainties do exist in particular
markets and combined with pricing pressure, activity mix and shorter rental
periods, this has led to the erosion of operating margins in some divisions.
Capital investment in the fleet rose to GBP9.7 million (2009: GBP7.6 million) as the
Group supported specific opportunities and contract wins. A net cash inflow of
GBP8 million saw net debt reduce to GBP40 million at the period end, compared with
GBP55 million at this time last year and GBP48 million at the year end. This
represents financial gearing of 35% (2009: 53%). This strong cash performance
underscores the quality of our businesses and the resilience of our operating
model.
During the period, the Group successfully renewed its maturing debt facilities,
on favourable terms, for a further three year period.
In light of these very satisfactory results, your Board is declaring a
maintained interim dividend of 3.1 pence per share payable on 5 January 2011 to
shareholders registered as at 10 December 2010.
Groundforce
Groundforce was once again the Group's largest profit contributor and continued
to deliver excellent margins. Revenues and operating profit reduced due to the
completion of the AMP4 programme and the generally subdued construction and
property markets. We had anticipated this interruption in activity and measures
were taken where possible to mitigate the impact of the revenue loss. As
private sector investment has weakened, the Olympics and other public
infrastructure programmes have provided a useful support to revenues.
The investment in marketing Groundforce solutions in mainland Europe has started
to pay dividends with a number of large propping schemes secured. Sales of new
equipment to North America continued at useful, albeit slightly reduced levels.
The specialist sub divisional businesses generally performed well and the
Harbray acquisition, made in May 2010, is performing in line with our
expectations. As the AMP5 programme builds up next year and beyond, its work
bank should provide good opportunities for Groundforce.
UK Forks
After two very difficult trading years, it was pleasing to experience an
increase in demand from the housing sector. Hire revenues have increased
substantially and with the benefit of our reduced cost base and the supply
constraints in the marketplace, this has had a very positive impact on
profitability. The decrease in reported top line revenues reflects a
significant reduction in the level of rental fleet disposals when compared with
the same period last year. For the first time in nearly two years, as fleet
physical utilisation levels have recovered to more optimal levels, the Group is
once again reinvesting in fleet to meet contract opportunities.
After the period end, we completed the acquisition of 150 telehandlers from one
of our larger customers secured by a three year exclusive hire arrangement.
Airpac Bukom
Airpac Bukom experienced a quiet first half. With subdued demand from the
international well testing market, profits reduced against the prior year but
this was primarily due to exchange rate fluctuations in US and Australian
dollars. Pleasingly, the major LNG air and manpower supply contract in
Australia is now building up to its full potential and should make a stronger
contribution in the second half of this year and beyond. Our African operations
also enjoyed strong demand. We remain very positive about the medium term
prospects for the oilfield services sector and have recently strengthened senior
management to take best advantage of future opportunities.
Torrent Trackside
An improvement in revenues derived from our key customer relationships and the
benefit of the cost reduction measures taken last year, have delivered a
significant turnaround for this business. We were very pleased to see Torrent's
credentials as the leading specialist within the sector recognised in the award
by Network Rail of a five year contract commencing in December 2010 for the
maintenance of their trackside plant. Torrent's activity levels on the London
Underground have also picked up this year in support of new contract wins.
Although the timing and quantum of work release in the rail sector is always
difficult to predict, we look towards the future with a greater degree of
confidence than has been possible for the last couple of years.
TPA
TPA produced another good set of results. Revenues, both in the UK and Germany,
held up well but job mix and higher costs, particularly within transportation
and logistics, have caused a small reduction in margins. TPA remains a seasonal
business and whilst significant progress has been made to create a more flexible
overhead structure, the challenge for the second half is, as always, to find
compensating revenues to substitute for the loss of the summer events work bank.
Hire Station
Hire Station has faced a particularly challenging marketplace but still produced
a profitable and cash positive result. Although revenues were maintained in the
tools business, a combination of price erosion and increased transaction volumes
created some pressure on margins. Within the specialist businesses, revenues
and margins moved ahead with ESS Safeforce, the safety equipment rental
business, performing particularly strongly.
Very pleasingly, we have recently secured the Network Rail non-rail specific
equipment contract. This exclusive five year contract will provide important
opportunities for Hire Station as it is implemented from early next year.
Outlook
Despite the adverse conditions which have existed in some of our core markets,
the Group has delivered very satisfactory profits and margins. These results
reinforce our confidence in the quality of our business model, which has
demonstrated once again its ability to smooth the impact of individual sector
weaknesses. It is particularly pleasing to see UK Forks and Torrent Trackside,
who suffered more than most over the last two years, starting to recover to
better levels of profitability and to justify new capital investment. The Group
has delivered further significant debt reductions and our balance sheet is again
stronger than at the same time last year. This financial strength will continue
to be a great asset to the Group in its future development.
The Group has experienced a period of general stability over the last six months
and this has been continued since the end of the half year. We believe any
recovery in the economy will be slow and that there will be further challenges
along the way. However, the Board remains confident of the Group's ability to
capitalise on opportunities as they arise.
As previously announced, Mike Holt, our Group Finance Director for six years,
left the company on the 19 November 2010. On behalf of the Board, I am pleased
to thank Mike for his valued contribution to the Group. The process for the
appointment of his successor is progressing well.
As always, it is my pleasure to record our thanks and appreciation of the
efforts of all members of the Group, whose commitment and professionalism have
made these impressive results possible.
Jeremy Pilkington
Chairman
30 November 2010
Condensed Consolidated Income Statement
for the period ended 30 September 2010
Note Six months to 30 Six months to 30 Full year to
Sep 2010 Sep 2009 31 Mar 2010
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Revenue 3 71,095 71,113 134,163
Cost of sales (51,501) (51,195) (99,350)
------------------------------------------------------
Gross profit 19,594 19,918 34,813
Administrative (9,967) (9,761) (17,869)
expenses
------------------------------------------------------
Operating profit 3 9,627 10,157 16,944
Net financial (1,400) (1,339) (2,605)
expenses
------------------------------------------------------
+-----------------+ +-----------------+ +------------+
Profit before | | | | | |
amortisation, | | | | | |
exceptional items | 8,586| | 9,957| | 16,005|
and taxation | | | | | |
| | | | | |
| | | | | |
Amortisation of | (359)| | (975)| | (1,323)|
intangibles | | | | | |
| | | | | |
Exceptional items 4 | -| | (164)| | (343)|
+-----------------+ +-----------------+ +------------+
Profit before 8,227 8,818 14,339
taxation
Income tax expense 5 (2,040) (2,475) (4,094)
------------------------------------------------------
Net profit for the 6,187 6,343 10,245
period
------------------------------------------------------
Basic earnings share 7 14.81p 15.42p 24.68p
Diluted earnings 7 14.60p 15.11p 24.36p
share
Dividend per share 8 3.10p 3.10p 10.80p
Dividends paid and 1,294 1,299 4,510
proposed ( GBP000)
Condensed Consolidated Statement of Comprehensive Income
for the period ended 30 September 2010
Six months to
Six months to Full year to
30 Sep 2010 30 Sep 2009 31 Mar 2010
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Profit for the period 6,187 6,343 10,245
Other comprehensive income:
Actuarial losses on defined benefit
pension scheme - - 726
Tax on items taken direct to equity (44) - (203)
Effective portion of changes in
fair value of cash flow hedges 634 997 439
Foreign exchange translation (105) (26) (39)
difference
---------------------------------------------
Other comprehensive income 485 971 923
---------------------------------------------
Total comprehensive income for the 6,672 7,314 11,168
period
---------------------------------------------
Condensed Consolidated Statement of Changes in Equity
for the period ended 30 September 2010
Six months to Six months to Full year to
30 Sep 2010 30 Sep 2009 31 Mar 2010
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Total comprehensive income for the 6,672 7,314 11,168
period
Tax movements to equity - - 1
Share option charge in the period 542 273 434
Net movement relating to Treasury
Shares and shares held by Vp
Employee Trust (282) 3 (85)
Dividends to shareholders (3,215) (3,212) (4,510)
---------------------------------------------
Change in equity during the period 3,717 4,378 7,008
Equity at the start of the period 84,187 77,179 77,179
---------------------------------------------
Equity at the end of the period 87,904 81,557 84,187
---------------------------------------------
Condensed Consolidated Balance Sheet
at 30 September 2010
30 Sep 2010
Note 31 Mar 2010 30 Sep 2009
(Restated)
(unaudited) (audited) (unaudited)
GBP000 GBP000 GBP000
Non-current assets
Property, plant and equipment 6 96,234 98,635 102,730
Goodwill 34,269 33,798 33,754
Intangible assets 5,933 6,028 6,376
----------------------------------------
Total non-current assets 136,436 138,461 142,860
----------------------------------------
Current assets
Inventories 4,114 3,813 4,007
Trade and other receivables 31,446 27,330 29,562
Cash and cash equivalents 3,603 1,385 712
----------------------------------------
Total current assets 39,163 32,528 34,281
----------------------------------------
Total assets 175,599 170,989 177,141
----------------------------------------
Current liabilities
Interest bearing loans and (18,037) (49,692) (448)
borrowings
Income tax payable (2,936) (263) (2,500)
Trade and other payables (30,460) (25,493) (27,494)
----------------------------------------
Total current liabilities (51,433) (75,448) (30,442)
----------------------------------------
Non-current liabilities
Interest bearing loans and (26,005) (18) (55,042)
borrowings
Employee benefits (919) (1,127) (1,814)
Deferred tax liabilities (9,338) (10,209) (8,286)
----------------------------------------
Total non-current liabilities (36,262) (11,354) (65,142)
----------------------------------------
Total liabilities (87,695) (86,802) (95,584)
----------------------------------------
----------------------------------------
Net assets 87,904 84,187 81,557
----------------------------------------
Equity
Issued capital 2,309 2,309 2,309
Share premium 16,192 16,192 16,192
Hedging reserve (2,533) (3,167) (2,609)
Retained earnings 71,909 68,826 65,638
----------------------------------------
Total equity attributable to equity 87,877 84,160 81,530
holders of parent
Minority interest 27 27 27
----------------------------------------
Total equity 87,904 84,187 81,557
----------------------------------------
Condensed Consolidated Statement of Cash Flows
for the period ended 30 September 2010
Note Six months to Six months to Full year to
30 Sep 2010 30 Sep 2009 31 Mar 2010
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Cash flows from operating
activities
8,227 8,818 14,339
Profit before taxation
Adjustment for:
Pension fund contributions in
excess of service cost (208) (2,253) (2,214)
Share based payment charges 542 273 434
Depreciation 6 9,208 9,536 18,901
Amortisation of intangibles 359 975 1,323
Net financial expense 1,400 1,339 2,605
Profit on sale of property, (1,280) (2,021) (3,375)
plant and equipment
---------------------------------------------
Operating cash flow before 18,248 16,667 32,013
changes in working capital and
provisions
(Increase)/decrease in (297) 1,456 1,650
inventories
(Increase)/decrease in trade
and other receivables (4,037) 3,294 5,484
Increase/(decrease) in trade 2,542 (1,808) (1,919)
and other payables
---------------------------------------------
Cash generated from operations 16,456 19,609 37,228
Interest paid (1,287) (1,260) (2,453)
Interest element of finance (76) (84) (156)
lease rental payments
Interest received - 11 17
Income tax paid (394) (2,411) (4,546)
---------------------------------------------
Net cash from operating 14,699 15,865 30,090
activities
Investing activities
Proceeds from sale of 4,105 5,201 8,718
property, plant and equipment
Purchase of property, plant (9,884) (10,034) (16,744)
and equipment
Acquisition of businesses and (690) 17 19
subsidiaries (net of cash and
overdrafts)
---------------------------------------------
Net cash from investing (6,469) (4,816) (8,007)
activities
Cash flows from financing
activities
(Purchase)/sale of Treasury (282) 3 (85)
Shares and own shares by
Employee Trust
Repayment of loans (40,500) (14,500) (20,000)
New loans 35,000 4,000 4,000
Payment of hire purchase and (168) (398) (678)
finance lease liabilities
Dividends paid 8 - - (4,510)
---------------------------------------------
Net cash used in financing (5,950) (10,895) (21,273)
activities
---------------------------------------------
---------------------------------------------
Net increase in cash and cash 2,280 154 810
equivalents
Effect of exchange rate (62) 7 24
fluctuations on cash held
Cash and cash equivalents at 1,385 551 551
beginning of period
---------------------------------------------
Cash and cash equivalents at 3,603 712 1,385
end of period
---------------------------------------------
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 2010 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 2010, which were prepared in accordance with International Financial
Reporting Standards ("IFRS") as adopted by the EU.
The interim announcement was approved by the Board of Directors on 29
November 2010.
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 2010 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 498(2) or (3) of the Companies Act 2006.
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.
As stated in the year end accounts, despite the current economic
conditions and uncertain global outlook, the Group continues to be in a healthy
financial position. Since the year end net debt has reduced by a further GBP7.9m
to GBP40.4m and the Group has put in place a GBP35m committed revolving facility to
replace the existing GBP50m committed five year revolving facility which was due
to expire in November 2010. The Group's total banking facilities are now GBP65m.
The Board has evaluated these facilities and the associated covenants on the
basis of current forecasts, taking into account the current economic climate,
with a reasonable level of sensitivity analysis. On this basis the Directors
have a reasonable expectation that the Group has adequate resources to continue
in operation for the foreseeable future and to manage its business risks. For
this reason the going concern basis has been adopted in the preparation of these
financial statements.
The Balance Sheet at 30 September 2009 has been restated to reflect minor
hindsight adjustments on acquisitions made in that year.
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 including credit insurance
which limits the Group's exposure to bad debts via an aggregate first loss
policy which covers a significant proportion of the Group's accounts receivable.
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.
Taking into account these risk mitigation actions and the treasury
management policies described in the 31 March 2010 accounts, the Group's
exposure to market, liquidity and credit risk is considered by the Board to be
within normal parameters and represents an acceptable level of risk.
3. Summarised Segmental Analysis
Revenue Operating Profit
Sept 2010 Sept 2009 Sept 2010 Sept 2009
GBP000 GBP000 GBP000 GBP000
------------- ------------- ------------------------
Groundforce 15,572 17,217 3,506 5,092
UK Forks 5,256 5,685 590 (297)
Airpac Bukom 8,544 8,157 1,451 2,028
Torrent Trackside 6,196 5,129 577 6
TPA 9,349 9,345 2,146 2,434
Hire Station 26,178 25,580 1,716 2,033
------------- ------------- ------------------------
71,095 71,113 9,986 11,296
------------- -------------
Amortisation (359) (975)
Exceptional items - (164)
------------------------
9,627 10,157
------------------------
4. Exceptional Items
There were no exceptional items during the current period. In the prior
year period the Group made a profit of GBP113,000 from the disposal of a freehold
property and incurred GBP277,000 of employment termination costs.
5.Income Tax
The effective tax rate of 24.8% in the period to 30 September 2010 (30
September 2009: 28.1%) is made up of two elements. Firstly, an estimated
underlying tax rate of 29.8% which reflects the current standard rate of tax of
28% as adjusted for estimated permanent differences for tax purposes and
adjustments to prior year provisions. Secondly there is a release of GBP0.4m
(5.0%) from the opening deferred tax balance as a result of the change in the
future UK corporation tax rate from 28% to 27% with effect from 1 April 2011.
6.Property, Plant and Equipment
Sept 2010 Mar 2010 Sept 2009
GBP000 GBP000 GBP000
Carrying amount 1 April 98,635 107,889 107,889
Additions 9,677 15,055 7,590
Acquisitions 4 - -
Depreciation (9,208) (18,901) (9,536)
Disposals (2,825) (5,343) (3,180)
Effect of movements in exchange rates (49) (65) (33)
-----------------------------------
Closing carrying amount 96,234 98,635 102,730
-----------------------------------
The value of capital commitments at 30 September 2010 was GBP1,246,000 (31
March 2010 GBP916,000).
7.Earnings Per Share
Earnings per share have been calculated on 41,772,783 shares (2009:
41,123,633) being the weighted average number of shares in issue during the
period. Diluted earnings per share have been calculated on 42,388,177 shares
(2009: 41,977,858) adjusted to reflect conversion of all potentially dilutive
ordinary shares. Basic earnings per share before the amortisation of
intangibles and exceptional items was 15.43 pence (2009: 17.42 pence) and was
based on an after tax add back of GBP258,000 (2009: GBP820,000). Diluted earnings
per share before amortisation of intangibles and exceptional items was 15.21
pence (2009: 17.06 pence).
8.Dividends
The Directors have declared an interim dividend of 3.10 pence (2009: 3.10
pence) per share payable on 5 January 2011 to shareholders on the register at
10 December 2010. 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 (2009 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 together with dividends waived in relation to treasury shares.
9.Analysis of Net Debt
As at Cash As at
1 Apr 10 Flow 30 Sep 10
GBP000 GBP000 GBP000
Cash in hand and at bank less overdrafts 1,385 2,218 3,603
Revolving credit facilities (49,500) 5,500 (44,000)
Finance leases and hire purchases (210) 168 (42)
---------- ------- ----------
(48,325) 7,886 (40,439)
---------- ------- ----------
The Group's bank facilities comprise a GBP35m committed three year
revolving credit facility which expires in May 2013, a GBP20m committed three year
revolving credit facility expiring in September 2011 and overdraft facilities
totalling GBP10m.
10.Related Party Transactions
Transactions between Group Companies, which are related parties, have been
eliminated on consolidation and therefore do not require disclosure.
11.Forward Looking Statements
The Chairman's Statement includes statements that are forward looking in
nature. Forward looking statements involve known and unknown risks,
assumptions, uncertainties and other factors which may cause the actual results,
performance or achievements of the Group to be materially different from any
future results, performance or achievements expressed or implied by such forward
looking statements. Except as required by the Listing Rules and applicable law,
the Company undertakes no obligation to update, review or change any forward
looking statements to reflect events or developments occurring after the date of
this report.
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
30 November 2010
The Board
The Board of Directors who served during the 6 months to 30 September 2010 was:
Jeremy FG Pilkington (Chairman)
Neil A Stothard
Michael J Holt
Peter W Parkin
Stephen Rogers
Independent Review Report to Vp 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 30
September 2010 which comprises the condensed consolidated interim income
statement, the condensed consolidated interim statement of comprehensive income,
the condensed consolidated interim balance sheet, the condensed consolidated
interim statement of changes in shareholders' equity, the condensed consolidated
interim cash flow statement 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 2010 is not prepared, in all
material respects, in accordance with IAS 34 as adopted by the EU and the DTR of
the UK FSA.
Chris Hearld
For and on behalf of KPMG Audit Plc
Chartered Accountants
Leeds
30 November 2010
[HUG#1466759]
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Vp PLC via Thomson Reuters ONE
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