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TIDMAVS
RNS Number : 2036Z
Avesco Group PLC
13 March 2012
EMBARGOED UNTIL 7.00am, 13 March 2012
AVESCO GROUP plc
RESULTS FOR THE THREE MONTHS ENDED 31 DECEMBER 2011
Avesco Group plc (AIM: AVS), the international provider of services to the corporate presentation, entertainment and broadcast markets, announces its results for the three months ended 31 December 2011.
KEY HIGHLIGHTS
-- Revenue of GBP33.6m (three months ended 31 December 2010: GBP30.5m)
-- Trading EBITDA of GBP4.7m (three months ended 31 December 2010: GBP4.5m)*
-- Trading profit of GBP0.1m (three months ended 31 December 2010: GBP0.0m)
-- Adjusted basic losses per share of 1.2p (three months ended 31 December 2010: losses of 1.4p)*
* As described in note 3, the Group uses certain non-GAAP alternative measures to assess underlying operating performance.
Ian Martin, Chief Executive, commented:
2012 promises to be a busy and exciting 12 months for Avesco. During the three months ended 31 December 2011, the Avesco Group continued to benefit from positive market trends, driven by the increasing confidence of our customers and their desire to stage live events.
Trading since the start of the second quarter remains positive and, as we progress through the year, the benefits of the considerable investment we have made should begin to flow through into much improved financial results. With the additional demand expected to arise from the staging of a number of major events this summer, the Board remains confident regarding the outlook for the remainder of the financial year.
For further information please contact:
Avesco Group plc
Ian Martin, Chief Executive 01293 583400
John Christmas, Group Finance
Director
finnCap
Ed Frisby/Rose Herbert,
Corporate Finance
Brian Patient/Victoria
Bates, Corporate Broking 020 7220 0500
Chairman's statement
I am pleased to report that during the three months ended 31 December 2011, the Avesco Group continued to benefit from positive market trends, driven by the increasing confidence of our customers and their desire to stage live events.
2012 promises to be a busy and exciting 12 months for Avesco and so it is encouraging to see the Group make a good start to the year. During the quarter we have made some significant investments in both additional equipment and people to ensure we have the right level of resource in place to support our customers and to build for the future.
Results
Traditionally the first quarter of the Group's financial year has been a quieter period as fewer events tend to be staged in the weeks prior to Christmas and the New Year. Nevertheless, revenue in the three months ended 31 December 2011 rose 10% to GBP33.6m (three months ended 31 December 2010: GBP30.5m).The quarter benefited from two substantial events in the Middle East (the Arab Games and the UAE 40th Anniversary celebrations) while the prior year included the Paris Motor show and part of the Commonwealth Games. Excluding each of these events from the comparison between the two periods shows that that the underlying business made even better progress, achieving a 12% increase in revenue. This growth reflects a continuation of the strong sales momentum that we have built up within the Group as well as improved confidence among our corporate clients, most notably in the USA, and an increasing demand for our services in the Middle East.
The trading profit (which excludes restructuring and other non-recurring costs) was GBP0.1m, a slight improvement on the prior period (three months ended 31 December 2010: trading profit of GBP0.0m). On this basis, the adjusted losses per share were 1.2p (three months ended 31 December 2010: loss of 1.4p).
The Group produced a 5% increase in EBITDA to GBP4.7m (three months ended 31 December 2010: GBP4.5m).
On 19 December 2011, the Group successfully completed the sale of its Full Service business in Monaco, Action SAM, to 4Cast. A loss on disposal of GBP0.3m has been recognised in relation to the sale.
After a net investment of GBP10.6m (three months ended 31 December 2010: GBP4.9m) in the business and an increase in working capital of GBP4.4m (three months ended 31 December 2010: GBP1.6m), the net debt at the end of the period rose from the year end position of GBP12.1m to GBP22.7m (three months ended 31 December 2010: GBP16.3m). As a result, the Group's gearing (being net debt divided by net assets) ended the quarter at 62% (three months ended 31 December 2010: 44%).
On 31 December 2011, the net assets of the Group were GBP36.5m (31 December 2010: GBP36.7m) or GBP1.44 per share (31 December 2010: GBP1.47 per share).
Trading since the start of the second quarter remains positive and, as we progress through the year, the benefits of the considerable investment we have made should begin to flow through into much improved financial results. Assuming that the underlying growth in the business continues as we have planned and with the additional demand expected to arise from the staging this summer of major events, such as the London 2012 Olympics, the Queen's Diamond Jubilee and the UEFA Euro 2012 football championships, the Board remains confident regarding the outlook for the remainder of the financial year.
There have been no further developments in the Disney litigation in which the Group maintains an interest. The Appeal Court is expected to schedule the oral arguments concerning Disney's appeal for this summer, with its decision likely to follow within 12 months of that hearing.
The Avesco Group's businesses are widely regarded as leaders in their fields, providing top quality services at some of the highest profile events and projects around the world. Clients have come to expect the same high level of service whether at a local, national or international level and the Group's businesses continually provide that level of service on a global scale. With new markets opening up across the world and existing markets continuing to grow, Avesco is well positioned, with the financial and technical capabilities in place, to continue its progress throughout 2012 and beyond.
Richard Murray
Chairman
13 March 2012
Unaudited consolidated income statement
For the three months ended 31 December 2011
Year
Three months ended
ended 31 December 30 September
2011 2010 2011
GBP000s GBP000s GBP000s
------------------------- ----------- ----------- --------------
Continuing operations
Revenue 33,550 30,535 125,529
Cost of sales (22,693) (20,355) (82,965)
------------------------- ----------- ----------- --------------
Gross profit 10,857 10,180 42,564
Operating expenses (11,141) (10,321) (41,046)
------------------------- ----------- ----------- --------------
Operating (loss)/profit (284) (141) 1,518
Finance income 2 1 6
Finance costs (324) (342) (1,422)
------------------------- ----------- ----------- --------------
(Loss)/profit before
income tax (606) (482) 102
Income tax expense (52) (3) (236)
-------------------------
Loss for the financial
period (658) (485) (134)
------------------------- ----------- ----------- --------------
Pence Pence Pence
per share per share per share
Losses per share for
losses attributable to
the equity holders of
the company
- basic (2.6)p (1.9)p (0.5)p
- diluted (2.6)p (1.9)p (0.5)p
Alternative performance measures (non-GAAP)
For the three months ended 31 December 2011
Year
Three months ended
ended 31 December 30 September
2011 2010 2011
GBP000s GBP000s GBP000s
---------------------------- ----------- ----------- --------------
Operating (loss)/profit (284) (141) 1,518
Adjusted to exclude:
Restructuring costs - 52 669
Other non-recurring costs 350 98 140
Trading profit 66 9 2,327
Net finance costs (322) (341) (1,416)
Current tax expense (52) (12) (247)
Trading profit after net
finance costs and current
tax expense (308) (344) 664
---------------------------- ----------- ----------- --------------
Trading EBITDA 4,732 4,507 20,262
---------------------------- ----------- ----------- --------------
Adjusted (losses)/earnings Pence Pence Pence
per share per share per share per share
---------------------------- ----------- ----------- --------------
- basic (1.2)p (1.4)p 2.6p
- diluted (1.2)p (1.4)p 2.6p
Refer to note 3 for a full description of the alternative performance measures adopted by the Group.
Unaudited consolidated statement of comprehensive income
For the three months ended 31 December 2011
Year
Three months ended
ended 31 December 30 September
2011 2010 2011
GBP000s GBP000s GBP000s
----------------------------- ---------- --------- --------------
Loss for the period (658) (485) (134)
Other comprehensive expense
Currency translation
differences (126) (162) (98)
Total comprehensive expense
for the period (784) (647) (232)
----------------------------- ---------- --------- --------------
Unaudited consolidated balance sheet
As at 31 December 2011
31 December 31 December 30 September
2011 2010 2011
GBP000s GBP000s GBP000s
-------------------------------- ------------ ------------ -------------
Assets
Non-current assets
Property, plant and
equipment 60,478 52,819 55,186
Intangible assets 158 268 179
Deferred income tax
assets 6,100 4,468 6,117
Trade and other receivables 145 262 182
-------------------------------- ------------ ------------ -------------
66,881 57,817 61,664
Current assets
Inventories 1,996 1,599 1,507
Trade and other receivables 21,977 19,058 23,590
Current income tax assets 88 119 85
Cash and cash equivalents 5,504 5,891 7,501
29,565 26,667 32,683
-------------------------------- ------------ ------------ -------------
Total assets 96,446 84,484 94,347
-------------------------------- ------------ ------------ -------------
Liabilities
Non-current liabilities
Borrowings and loans 22,444 16,020 14,157
Deferred income tax
liabilities 3,049 1,399 3,041
Provisions for other
liabilities and charges 488 721 491
-------------------------------- ------------ ------------ -------------
25,981 18,140 17,689
Current liabilities
Trade and other payables 27,462 22,833 33,242
Current income tax liabilities 590 480 656
Borrowings and loans 5,730 6,175 5,483
Provisions for other
liabilities and charges 241 189 204
--------------------------------
34,023 29,677 39,585
-------------------------------- ------------ ------------ -------------
Total liabilities 60,004 47,817 57,274
-------------------------------- ------------ ------------ -------------
Total assets less total
liabilities 36,442 36,667 37,073
-------------------------------- ------------ ------------ -------------
Equity
Capital and reserves
attributable to equity
holders of the company
Ordinary shares 2,599 2,599 2,599
Share premium 23,286 23,286 23,286
Translation reserves (10) 52 116
Retained earnings 10,567 10,730 11,072
-------------------------------- ------------ ------------ -------------
Total equity 36,442 36,667 37,073
-------------------------------- ------------ ------------ -------------
Unaudited consolidated statement of changes in equity
For the three months ended 31 December 2011
Share Share
capital premium Other Retained
account account reserves earnings Total
GBP000s GBP000s GBP000s GBP000s GBP000s
------------------------- ---------------- ---------------- ---------------- ---------- --------
Balance at 1 October
2011 2,599 23,286 116 11,072 37,073
Total comprehensive
expense for the
period - - (126) (658) (784)
------------------------- ---------------- ---------------- ---------------- ---------- --------
2,599 23,286 (10) 10,414 36,289
Transactions with
owners in their
capacity as owners:
LTIP and share
options - - - 153 153
Balance at 31 December
2011 2,599 23,286 (10) 10,567 36,442
------------------------- ---------------- ---------------- ---------------- ---------- --------
Share Share
capital premium Other Retained
account account reserves earnings Total
GBP000s GBP000s GBP000s GBP000s GBP000s
------------------------- ---------------- ---------------- ---------------- ---------- --------
Balance at 1 October
2010 2,599 23,286 214 11,151 37,250
Total comprehensive
expense for the
period - - (162) (485) (647)
------------------------- ---------------- ---------------- ---------------- ---------- --------
2,599 23,286 52 10,666 36,603
Transactions with
owners in their
capacity as owners:
LTIP and share
options - - - 64 64
Balance at 31 December
2010 2,599 23,286 52 10,730 36,667
------------------------- ---------------- ---------------- ---------------- ---------- --------
Share Share
capital premium Other Retained
account account reserves earnings Total
GBP000s GBP000s GBP000s GBP000s GBP000s
------------------------- ---------------- ---------------- ---------------- ---------- --------
Balance at 1 October
2010 2,599 23,286 214 11,151 37,250
Total comprehensive
expense for the
period - - (98) (134) (232)
------------------------- ---------------- ---------------- ---------------- ---------- --------
2,599 23,286 116 11,017 37,018
Transactions with
owners in their
capacity as owners:
External dividends
paid - - - (254) (254)
LTIP and share
options - - - 309 309
Balance at 30 September
2011 2,599 23,286 116 11,072 37,073
------------------------- ---------------- ---------------- ---------------- ---------- --------
Unaudited consolidated cash flow statement
For the three months ended 31 December 2011
Year
Three months ended
ended 31 December 30 September
2011 2010 2011
GBP000s GBP000s GBP000s
-------------------------------- -------------------------- -------------------------- --------------------------
Cash flows from operating
activities
Cash generated from operations 318 2,875 19,368
Net interest paid (369) (368) (1,422)
Income tax paid (122) (60) (62)
Net cash (used)/generated
from operating activities (173) 2,447 17,884
-------------------------------- -------------------------- -------------------------- --------------------------
Cash flows from investing
activities
Purchases of property,
plant and equipment (10,994) (4,876) (17,954)
Proceeds from sale of
property, plant and equipment 428 15 2,332
Proceeds from disposal
of investments 360 - -
Net cash used in investing
activities (10,206) (4,861) (15,622)
-------------------------------- -------------------------- -------------------------- --------------------------
Cash flows from financing
activities
Proceeds from borrowings 10,046 4,272 8,901
Repayments of borrowings (1,591) (2,797) (10,000)
Dividends paid to Company's
shareholders - - (254)
Net cash generated/(used)
in financing activities 8,455 1,475 (1,353)
-------------------------------- -------------------------- -------------------------- --------------------------
Cash (used)/generated
from discontinued operations (191) 181 (262)
-------------------------------- -------------------------- -------------------------- --------------------------
Net (decrease)/increase
in cash, cash equivalents
and bank overdrafts (2,115) (758) 647
Cash, cash equivalents
and bank overdrafts at
beginning of period 7,501 6,896 6,896
Exchange losses on cash
and bank overdrafts (27) (247) (42)
Cash, cash equivalents
and bank overdrafts at
end of period 5,359 5,891 7,501
Bank overdrafts 145 - -
Cash, cash equivalents
at end of period 5,504 5,891 7,501
-------------------------------- -------------------------- -------------------------- --------------------------
Notes to the interim report and accounts
1. General information
Avesco Group plc ('the Company') and its subsidiaries (together 'the Group') is an international media services business. The Group has subsidiaries around the world and sells in the UK, USA, Europe, Asia Pacific and the Middle East.
The Company is a public limited company which is admitted to trading on the AIM Market of the London Stock Exchange and is incorporated and domiciled in the UK. The address of its registered office is Unit E2, Sussex Manor Business Park, Gatwick Road, Crawley, West Sussex, RH10 9NH.
The registered number of the Company is 01788363.
2. Status of interim report and accounts
The interim report and accounts are unaudited but have been reviewed by the auditors, Ernst & Young LLP, and their independent review report is appended to this document. The interim report and accounts, which were approved by the Board of Directors on 13 March 2012, are not full accounts within the meaning of section 434 of the Companies Act 2006.
The figures for the year ended 30 September 2011 have been extracted from the audited annual report and accounts that have been delivered to the Registrar of Companies. The auditors, Ernst & Young LLP, reported on those accounts under section 495 of the Companies Act 2006. Their report was unqualified and did not contain a statement under section 498 of that Act.
3. Basis of preparation
The interim report and accounts have been prepared using the accounting policies to be applied in the annual report and accounts for the year ending 30 September 2012. These are consistent with those included in the previously published annual report and accounts for the year ended 30 September 2011, which have been prepared in accordance with IFRS as adopted by the European Union.
Alternative performance measures
The Group uses alternative non-Generally Accepted Accounting Practice ("non-GAAP") financial measures which are not defined within IFRS. The Directors use these measures in order to assess the underlying operational performance of the Group and as such, these measures are important and should be considered alongside the IFRS measures. The following non-GAAP measures are referred to in these interim report and accounts.
a) Trading profit/loss
'Trading profit/loss' is separately disclosed, being defined as operating profit adjusted to exclude restructuring costs and other non-recurring costs. Other non-recurring costs relate to items which management believe do not accurately reflect the underlying trading performance of the business in the period. The Directors believe that trading profit/loss is an important measure of the underlying performance of the Group.
b) Adjusted earnings per share
'Adjusted earnings per share' is calculated by dividing the profit for the period excluding restructuring costs, other non-recurring costs and the deferred tax charge/credit by the weighted average number of ordinary shares in issue during the period. The Directors believe that adjusted earnings per share provides an important measure of the underlying performance of the Group.
c) Trading EBITDA
Trading earnings before interest, taxation, depreciation and amortisation ('EBITDA') is separately disclosed, being defined as trading profit/loss adjusted to exclude depreciation and amortisation of software. The Directors believe that trading EBITDA is an important measure of the underlying performance of the Group.
4. Segmental information
Three months Year ended
ended 31 December 30 September
2011 2010 2011
GBP000s GBP000s GBP000s
--------------------------- -------------------------- -------- --------------
Revenue
Creative Technology 22,430 18,641 81,154
Full Service 5,197 5,691 20,931
Broadcast 6,851 6,823 24,608
Inter Segment revenue (928) (620) (1,164)
--------------------------- -------------------------- -------- --------------
Group revenue 33,550 30,535 125,529
--------------------------- -------------------------- -------- --------------
Operating profit
Creative Technology (153) (114) 1,499
Full Service 291 (40) 395
Broadcast (75) 255 784
Head Office 3 (92) (351)
--------------------------- -------------------------- -------- --------------
Trading profit 66 9 2,327
Restructuring costs - (52) (669)
Other non-recurring costs (350) (98) (140)
Operating (loss)/profit (284) (141) 1,518
--------------------------- -------------------------- -------- --------------
5. Trading earnings before interest, taxation, depreciation and amortisation ('EBITDA')
Three months Year ended
ended 31 December 30 September
2011 2010 2011
GBP000s GBP000s GBP000s
-------------------------- ---------- --------- --------------
Trading profit 66 9 2,327
Depreciation 4,631 4,426 17,690
Amortisation of software 35 72 245
Trading EBITDA 4,732 4,507 20,262
-------------------------- ---------- --------- --------------
Trading EBITDA is defined in note 3.
6. Earnings per share
Three months Year ended
ended 31 December 30 September
2011 2010 2011
GBP000s GBP000s GBP000s
----------------------------- -------------------------- -------------------------- --------------------------
Loss for the period (658) (485) (134)
Restructuring costs - 52 669
Other non-recurring costs 350 98 140
Deferred tax credit - (9) (11)
Trading profit after
net finance costs and
income tax expense (308) (344) 664
----------------------------- -------------------------- -------------------------- --------------------------
Weighted average number
of shares (net of treasury
shares)
For basic earnings per
share (000's) 25,372 25,023 25,264
Effect of dilutive share
options (000's) - - -
For diluted earnings
per share (000's) 25,372 25,023 25,264
----------------------------- -------------------------- -------------------------- --------------------------
(Losses)/earnings per
share
Basic (2.6)p (1.9)p (0.5)p
Diluted (2.6)p (1.9)p (0.5)p
----------------------------- -------------------------- -------------------------- --------------------------
Adjusted basic (1.2)p (1.4)p 2.6p
Adjusted diluted (1.2)p (1.4)p 2.6p
----------------------------- -------------------------- -------------------------- --------------------------
Basic earnings per share have been calculated by dividing loss for the period by the weighted average number of ordinary shares in issue during the period.
Diluted earnings per share have been calculated by dividing profit/loss for the period by the weighted average number of ordinary shares in issue during the period, adjusted for any awards under the Company's Long Term Incentive Plan ("LTIP") where pre-specified performance conditions have been satisfied and any required conversion of dilutive potential options. Losses are not subject to dilution. The adjusted earnings per share for the year ended 30 September 2011 have not been diluted as the performance conditions for awards made under the LTIP had not been satisfied at that date.
Adjusted earnings per share have been calculated as per note 3.
7. Analysis of net debt
Other At
At non Currency 31
1 October Cash cash translation December
2011 flow changes differences 2011
GBP000s GBP000s GBP000s GBP000s GBP000s
----------------- ---------------- --------- ---------------- ---------------- -----------
Cash at bank
and in hand 7,501 (1,970) - (27) 5,504
Bank overdrafts - (145) - - (145)
----------------- ---------------- --------- ---------------- ---------------- -----------
Net cash 7,501 (2,115) - (27) 5,359
Bank loans
due in more
than one year (10,020) (8,000) - 88 (17,932)
Hire purchase
obligations
due in less
than one year (5,483) 917 (1,003) (16) (5,585)
Hire purchase
obligations
due in more
than one year (4,137) (1,372) 1,003 (6) (4,512)
Net debt (12,139) (10,570) - 39 (22,670)
----------------- ---------------- --------- ---------------- ---------------- -----------
Other At
At non Currency 31
1 October Cash cash translation December
2010 flow changes differences 2010
GBP000s GBP000s GBP000s GBP000s GBP000s
----------------- ---------------- --------- ---------------- ---------------- -----------
Cash at bank
and in hand 6,896 (758) - (247) 5,891
Bank loans
due in more
than one year (12,363) 986 - (41) (11,418)
Hire purchase
obligations
due in less
than one year (5,279) 143 (1,006) (33) (6,175)
Hire purchase
obligations
due in more
than one year (2,979) (2,604) 1,006 (25) (4,602)
Net debt (13,725) (2,233) - (346) (16,304)
----------------- ---------------- --------- ---------------- ---------------- -----------
Other At
At non Currency 30
1 October Cash cash translation September
2010 flow changes differences 2011
GBP000s GBP000s GBP000s GBP000s GBP000s
----------------- ---------------- --------- ---------------- ---------------- -----------
Cash at bank
and in hand 6,896 647 - (42) 7,501
Bank loans
due in more
than one year (12,363) 2,401 - (58) (10,020)
Hire purchase
obligations
due in less
than one year (5,279) 4,273 (4,443) (34) (5,483)
Hire purchase
obligations
due in more
than one year (2,979) (5,575) 4,443 (26) (4,137)
-----------
Net debt (13,725) 1,746 - (160) (12,139)
----------------- ---------------- --------- ---------------- ---------------- -----------
8. Interim and final dividends
A final dividend for the year ended 30 September 2010 of 1.0p per share amounting to a total of GBP254,000 was approved by shareholders and was paid on 6 April 2011 to shareholders on the register at 6.00pm on 11 March 2011.
A final dividend for the year ended 30 September 2011 of 3.0p per share has been approved and will be paid on 31 May 2012 to shareholders on the register at 6.00pm on 10 April 2012.
9. Contingent liabilities and assets
Contingent liabilities
InvestinMedia Holdings Limited ("InvestinMedia"), a subsidiary of the Company, sold its investment in Complete Communications Corporation Limited ("Complete") on 20 December 2006. In connection with the sale, InvestinMedia and other vendors gave certain warranties and indemnities to the buyer, liability in respect of which runs for periods of up to seven years from the date of completion. So far as the Company is aware, no legal claims have been brought against any company in the Complete group that are outstanding and would give rise to liability on the part of InvestinMedia and other vendors under the warranties and indemnities.
Contingent assets
On 8 July 2010 the Company announced that the jury in a US legal action had reached a unanimous verdict favourable to InvestinMedia and the other vendors of Complete. On 21 December 2010, the defendants' alternative motions for a new trial and for judgement as a matter of law were denied. On 14 January 2011 the defendants filed their notice of appeal. If the award is paid in full, the Group's interest (after costs but including pre-judgement interest) is estimated at approximately $60m. No credit has been taken in these accounts to reflect this verdict, pending completion of the appeal process. Provision has already been made for the costs of this litigation and any additional costs are not expected to be material.
10. Disposal of investment
On 19 December 2011, the Group successfully completed the sale of its Full Service business in Monaco, Action SAM, to 4Cast. The Group sold all of its shares in Action SAM for EUR480,000 before disposal costs. A loss on disposal of investment of GBP275,000 has been recognised within 'Operating expenses' in the consolidated income statement. This amount has also been included in the "Other non-recurring costs" in calculating the trading profit/loss the Alternative Performance Measures (non GAAP) table.
11. Distribution of interim report and accounts
Copies of this interim report and accounts are available from the Company's web site (www.avesco.com) or from the Company's registered office: Avesco Group plc, Unit E2, Sussex Manor Business Park, Gatwick Road, Crawley,
West Sussex, RH10 9NH. Telephone: +44 (0) 1293 583 400. Fax: +44 (0) 1293 583 410. E-mail: mail@avesco.com.
INDEPENDENT REVIEW REPORT TO AVESCO GROUP PLC
Introduction
We have been engaged by the Company to review the condensed set of financial statements in the Interim Report and Accounts for the three months ended 31 December 2011, which comprises the consolidated income statement, consolidated statement of comprehensive income, consolidated balance sheet, consolidated statement of changes in equity and consolidated cash flow statement and the related explanatory notes that have been reviewed. We have read the other information contained in the Interim Report and Accounts 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 guidance contained in International Standard on Review Engagements 2410 (UK and Ireland) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed.
Directors' Responsibilities
The Interim Report and Accounts is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the Interim Report and Accounts in accordance with the AIM Rules issued by the London Stock Exchange which require that it is presented and prepared in a form consistent with that which will be adopted in the Company's annual accounts having regard to the accounting standards applicable to such annual accounts.
As disclosed in note 3, 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 Interim Report and Accounts has been prepared in accordance with the AIM Rules issued by the London Stock Exchange.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the Interim Report and Accounts 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 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 Interim Report and Accounts for the three months ended 31 December 2011 is not prepared, in all material respects, in accordance with the accounting policies outlined in Note 3, which comply with IFRS's as adopted by the European Union and in accordance with the AIM Rules issued by the London Stock Exchange.
Ernst & Young LLP
Reading
13 March 2012
This information is provided by RNS
The company news service from the London Stock Exchange
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