We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for streaming realtime charts, analysis tools, and prices.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Jarvis Securities Plc | LSE:JIM | London | Ordinary Share | GB00BKS9NN22 | ORD 0.25P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.50 | 0.84% | 60.00 | 59.00 | 61.00 | 60.00 | 60.00 | 60.00 | 22,156 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Security Brokers & Dealers | 13.07M | 3.98M | 0.0890 | 6.74 | 26.61M |
From Jul 2019 to Jul 2024
TIDMJIM
RNS Number : 1640N
Jarvis Securities plc
24 July 2014
24 July 2014
Jarvis Securities
("Jarvis", the "Company" or the "Group")
Interim Results for the six months ended 30 June 2014 & Dividend Declaration
Highlights
-- GBP255,024 (7.3%) increase in revenue versus six months to 30 June 2013 -- GBP161,464 (10.6%) increase in profit before tax versus six months to 30 June 2013 -- Cash under administration has increased 32.5% versus 30 June 2013 -- Client numbers have increased 24% versus 30 June 2013 -- 23% increase in dividend versus six months to June 2013
The Board of Jarvis announces that it is declaring a third quarterly interim dividend of 4.25 pence per share, to be paid on 11 September 2014 to shareholders on the register on 22 August 2014. The Ex date is 20 August 2014.
A Dividend Reinvestment Plan is being offered and the final date for elections for reinvestment of the third quarterly interim dividend is 29 August 2014. Any shareholder requiring further information should contact the Company.
Enquiries:
Jarvis Securities plc tel: 01892 510 515
Andrew Grant
WH Ireland Ltd tel: 0113 394 6619
Andrew Kitchingman
James Bavister
Chairman's statement
I am pleased to once again be commenting on an excellent set of half year results. The improvement on the comparative period in 2013 reflects the growth the business has experienced in the latter half of last year. Overall market conditions have remained unchanged - trading volumes of UK stocks are similar and interest rates on treasury deposits have shown little movement, albeit with noises from The Bank of England now being more hawkish than at any point since the financial crisis. The improved revenue is solely due to organic growth of the business.
The main focus at Jarvis for the past six months has been to identify and harness improvements from the new IT infrastructure that we adopted late last year. Many of these improvements are not visible to external users and clients but we anticipate will lead to improving margins from reduced costs and efficiencies. Our core systems are now more robust and scalable than under our previous configuration which again we hope will reduce marginal costs per trade. We are in a position where we can continue to grow our client base and transaction volumes without needing any significant further changes to our platform or additional capital outlay.
We are also in the final stages of preparation and testing for the launch of our new online trading platform. Not only will this provide a much improved customer experience in terms of modern aesthetics, response speed and ease of navigation, it will also empower customers to manage many more aspects of their accounts online. As a shareholder the significance is not only client satisfaction but proportionately reduced staffing levels as our client numbers grow. We intend to offer our clients an industry leading online experience, but believe this offering will also facilitate the continual process improvement that is part of our culture.
Jarvis continues to be highly cash generative, with increased profits leading to increased dividend payments. Our dividend policy remains to return 2/3rds of post tax profit to shareholders in quarterly instalments throughout the financial year.
Key performance indicators (KPI)
The key performance indicators (KPIs) are designed to give stakeholders in the business a more rounded view of the Group's performance. Further details on the KPIs and their measurement can be found in the last Annual Report. A selection of KPIs and the Group's results to the interim period for these are detailed below. These results have been annualised from the position at 30 June 2014 where measurement over a year is required.
KPI: 30/6/14 30/6/13 Target --------------------------------------- ----------- -------- ------------ Profit before tax margin 45% 44% 20% Revenue per employee (annualised) GBP186,792 183,200 to increase Growth in client numbers (annualised) 24.6% 13.1% 10%
Company No.: 5107012
Consolidated income statement for the period ended 30 June 2014
Hot Features
Premium
Six months ended Six months ended
-------------------------- ------ ------------------------- -----------------
Notes 30/6/14 30/6/13
-------------------------- ------ ------------------------- -----------------
GBP GBP
Continuing operations
Revenue 3,735,832 3,480,808
Administrative expenses (2,048,112) (1,960,403)
Finance costs (5,851) -
-------------------------- ------ ------------------------- -----------------
Profit before income tax 1,681,869 1,520,405
Income tax charge 4 (361,602) (349,693)
-------------------------- ------ ------------------------- -----------------
Profit for the period 1,320,267 1,170,712
========================== ====== ========================= =================
Attributable to equity
holders of the parent 1,320,267 1,170,712
========================== ====== ========================= =================
Earnings per share 5 P P
-------------------------- ------ ------------------------- -----------------
Basic 12.08 11.01
Diluted 12.00 10.77
Consolidated statement of financial position at 30 June 2014
Notes 30/6/14 31/12/13 30/6/13
--------
GBP GBP GBP
Assets
Non-current assets
Property, plant and
equipment 245,750 250,067 259,543
Intangible assets 255,606 285,310 227,160
Goodwill 342,872 342,872 342,872
Investments held
to maturity 254,963 262,948 270,932
Deferred income tax - - 6,832
Available-for-sale
investments - - 4,445
1,099,191 1,141,197 1,111,784
Current assets
Trade and other
receivables 3,586,951 2,719,922 6,583,475
Investments held
for trading 38,450 5,757 2,108
Cash and cash equivalents 9,549,332 10,345,718 8,758,698
--------------------------- -------- ------------------- ----------------------- ------------------------
13,174,733 13,071,397 15,344,281
--------------------------- -------- ------------------- ----------------------- ------------------------
Total assets 14,273,924 14,212,594 16,456,065
=========================== ======== =================== ======================= ========================
Equity and liabilities
Capital and reserves
Share capital 7 111,200 107,825 107,245
Share premium 1,467,484 1,061,972 1,007,302
Merger reserve 9,900 9,900 9,900
Capital redemption
reserve 9,845 9,845 9,845
Share option reserve 134,764 129,162 122,121
Retained earnings 2,706,747 2,263,396 1,945,150
Total equity 4,439,940 3,582,100 3,201,563
--------------------------- -------- ------------------- ----------------------- ------------------------
Current liabilities
Trade and other
payables 9,437,753 10,095,865 12,941,743
Deferred income
tax 410 410 -
Income tax 4 395,821 534,219 312,759
--------------------------- -------- ------------------- ----------------------- ------------------------
9,833,984 6,361,169 13,254,502
Total equity and
liabilities 14,273,924 8,933,672 16,456,065
=========================== ======== =================== ======================= ========================
Consolidated statement of comprehensive income
Six months ended
30/6/14 30/6/13
------------------------------------------- -------------------- ----------
Profit for the period 1,320,267 1,170,712
------------------------------------------- -------------------- ----------
Total comprehensive income for the period 1,320,267 1,170,712
------------------------------------------- -------------------- ----------
Attributable to equity holders
of the parent 1,320,267 1,170,712
------------------------------------------- -------------------- ----------
Consolidated statement of changes in equity for the period
Share Share Merger Capital Share Retained Attributable
capital premium reserve redemption option earnings to equity
reserve reserve holders
of the
company
----------------------- --------- ---------- --------- ------------ --------- ---------- -------------
GBP GBP GBP GBP GBP GBP GBP
Balance at 31/12/12 106,015 862,657 9,900 9,845 114,481 1,469,605 2,572,503
Issue of shares 1,230 144,645 - - - - 145,875
Expense of employee
options - - - - 7,640 - 7,640
Profit for the period - - - - - 1,170,712 1,170,712
Dividends - - - - - (695,167) (695,167)
Balance at 30/06/13 107,245 1,007,302 9,900 9,845 122,121 1,945,150 3,201,563
----------------------- --------- ---------- --------- ------------ --------- ---------- -------------
Issue of shares 580 54,670 - - - - 55,250
Expense of employee
options - - - - 7,041 - 7,041
Profit for the period - - - - - 1,178,893 1,178,893
Dividends - - - - - (860,647) (860,647)
Balance at 31/12/13 107,825 1,061,972 9,900 9,845 129,162 2,263,396 3,582,100
----------------------- --------- ---------- --------- ------------ --------- ---------- -------------
Issue of shares 3,375 405,512 - - - - 408,887
Expense of employee
options - - - - 5,602 - 5,602
Profit for the period - - - - - 1,320,267 1,320,267
Dividends - - - - - (876,916) (876,916)
Balance at 30/6/14 111,200 1,467,484 9,900 9,845 134,764 2,706,747 4,439,940
----------------------- --------- ---------- --------- ------------ --------- ---------- -------------
Consolidated statement of cashflows for the period ended 30 June 2014
Six months ended
30/6/14 30/6/13
----------------- ---------------------
GBP GBP
Cash flow from operating activities
------------------------------------- ----------------- ---------------------
Profit before tax 1,681,869 1,520,405
Finance cost 5,851 -
Depreciation charges 9,182 11,143
Amortisation charges 38,962 17,859
Impairment charges - 41,610
Share options 5,602 7,640
1,741,466 1,598,657
(Increase) in receivables (867,029) (2,491,139)
(Decrease) / Increase in payables (658,112) 6,828,640
(Increase) in investments
held for trading (32,693) (1,347)
Cash generated from operations 183,632 5,934,811
Interest paid (5,851) -
Income tax (paid) (500,000) (350,000)
Net cash from operating activities (322,219) 5,584,811
Cash flows from investing
activities
Sale of investments - 160,000
Purchase of intangible assets (4,862) (40,979)
Purchase of tangible fixed
assets (1,276) (2,419)
(6,138) 116,602
Cash flows from financing activities
Issue of ordinary share capital 408,887 145,875 Dividends to equity shareholders (876,916) (695,167) Net cash used in financing activities (468,029) (549,292) Net (decrease)/increase in cash & cash equivalents (796,386) 5,152,121 Cash and cash equivalents at 1 January 10,345,718 3,606,577 Cash and cash equivalents at 30 June 9,549,332 8,758,698
Notes forming part of the interim financial statements
1. Basis of preparation
The interim consolidated financial statements have been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting. These interim financial statements have been prepared in accordance with those IFRS standards and IFRIC interpretations issued and effective or issued and early adopted as at the time of preparing these statements (July 2014).
These consolidated interim financial statements have been prepared in accordance with the accounting policies set out below, which have been consistently applied to all the periods presented. These accounting policies comply with applicable IFRS standards and IFRIC interpretations issued and effective at the time of preparing these statements.
At the date of authorisation of these interim financial statements, the following Standards and Interpretations which have not been applied in these financial statements were in issue but not yet effective (and in some cases had not yet been adopted by the EU):
IAS 16 and IAS 38 - Amendments: Clarification of acceptable methods of depreciation and amortisation
IAS 16 and IAS 41 - Amendments: Agriculture: Bearer plants
IAS 19 - Amendment: Defined benefit Plans: Employee contributions
IFRS 9 - Financial instruments
IFRS 11 - Amendments to accounting for acquisitions of interests in joint operations
IFRS 14 - Regulatory deferral accounts
IFRS 15 - Revenue from contracts with customers
Adoption of these Standards and Interpretations is not expected to have a material impact on the financial statements of the Company or Group.
The preparation of these interim financial statements in accordance with IFRS requires the use of certain accounting estimates. It also requires management to exercise judgement in the process of applying the Company's accounting policies. The areas involving a high degree of judgement or complexity, or areas where the assumptions and estimates are significant to the consolidated interim financial statements are disclosed in Note 9.
The financial information contained in this report, which has not been audited, does not constitute statutory accounts as defined by Section 434 of the Companies Act 2006. The auditors' report for the 2013 accounts was unqualified and did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006.
2. Accounting policies
(a) Revenue
Income is recognised as earned in the following way:
Commission - we charge commission on a transaction basis. Commission rates are fixed according to account type. When a client instructs us to act as an agent on their behalf (for the purchase or sale of securities) our commission is recognised as income. Our commission is deducted from the cash given to us by the client in order to settle the transaction on the client's behalf or from the proceeds of the sale in instance where a client sells securities.
Management fees - these are charged quarterly or bi-annually depending on account type. Fees are either fixed or are a percentage of the assets under administration. Fees are accrued up to the time they are charged using a day count and most recent asset level basis as appropriate.
Interest income - this is accrued on a day count basis. In accordance with FCA requirements, deposits are only held with banks that meet CASS regulations and the parameters set out in The Company's client money policy.
(b) Basis of consolidation
Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies generally accompanying a shareholding of more than half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date on which control ceases. The group financial statements consolidate the financial statements of Jarvis Securities plc, Jarvis Investment Management Limited, JIM Nominees Limited, Galleon Nominees Limited and Dudley Road Nominees Limited made up to 30 June 2014.
The Group uses the purchase method of accounting for the acquisition of subsidiaries. The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of any minority interest. The cost of acquisition over the fair value of the Group's share of identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the Group's share of the net assets of the subsidiary acquired, the difference is recognised in the income statement.
Intra-group sales and profits are eliminated on consolidation and all sales and profit figures relate to external transactions only. No profit and loss account is presented for Jarvis Securities plc as provided by S408 of the Companies Act 2006.
(c) Property, plant and equipment
All property, plant and equipment is shown at cost less subsequent depreciation and impairment. Cost includes expenditure that is directly attributable to the acquisition of the items. Depreciation is provided on cost in equal annual instalments over the lives of the assets at the following rates:
Leasehold improvements - 33% on cost, or over the lease period if less than 3 years
Motor vehicles - 15% on cost Office equipment - 20% on cost
Land & Buildings - Buildings are depreciated at 2% on cost. Land is not depreciated.
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the income statement. Impairment reviews of property, plant and equipment are undertaken if there are indications that the carrying values may not be recoverable or that the recoverable amounts may be less than the asset's carrying value.
(d) Intangible assets
Intangible assets are carried at cost less accumulated amortisation. If acquired as part of a business combination the initial cost of the intangible asset is the fair value at the acquisition date. Amortisation is charged to administrative expenses within the income statement and provided on cost in equal annual instalments over the lives of the assets at the following rates:
Databases - 4% on cost Customer relationships - 7% on cost Software developments - 20% on cost Website - 33% on cost
Impairment reviews of intangible assets are undertaken if there are indications that the carrying values may not be recoverable or that the recoverable amounts may be less than the asset's carrying value.
(e) Goodwill
Goodwill represents the excess of the fair value of the consideration given over the aggregate fair values of the net identifiable assets of the acquired trade and assets at the date of acquisition. Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Any negative goodwill arising is credited to the income statement in full immediately.
(f) Deferred income tax
Deferred income tax is provided in full, using the liability method, on differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. The deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of the transaction affects neither accounting or taxable profit or loss. Deferred income tax is determined using tax rates that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.
Deferred income tax is provided on temporary differences arising on investments in subsidiaries except where the timing of the reversal of the timing difference is controlled by the Group and it is probable that the temporary differences will not reverse in the foreseeable future.
(g) Segmental reporting
A business segment is a group of assets and operations engaged in providing products or services that are subject to risks and returns that are different from those of other business segments. The directors regard the operations of the Group as a single segment.
(h) Pensions
The group operates a defined contribution pension scheme. Contributions payable for the year are charged to the income statement.
(i) Trading balances
Trading balances incurred in the course of executing client transactions are measured at initial recognition at fair value. In accordance with market practice, certain balances with clients, Stock Exchange member firms and other counterparties are included as trade receivables and payables. The net balance is disclosed where there is a legal right of set off.
(j) Operating leases and finance leases
Costs in respect of operating leases are charged on a straight line basis over the lease term in arriving at the profit before income tax. Where the company has entered into finance leases, the obligations to the lessor are shown as part of borrowings and the rights in the corresponding assets are treated in the same way as owned fixed assets. Leases are regarded as finance leases where their terms transfer to the lessee substantially all the benefits and burdens of ownership other than right to legal title.
(k) Investments
The Group classifies its investments in the following categories: investments held to maturity, investments held for trading and available-for-sale investments. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and re-evaluates this designation at every reporting date.
Investments held to maturity
Investments held to maturity are stated at cost. Held to maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity that an entity has the positive intention and ability to hold to maturity. Assets in this category are classified as non-current.
Investments held for trading
Investments held for trading are stated at fair value. An investment is classified in this category if acquired principally for the purpose of selling in the short term. Assets in this category are classified as current.
Available-for-sale investments
Available-for-sale investments are stated at fair value. They are included in non-current assets unless management intends to dispose of them within 12 months of the balance sheet date.
Purchases and sales of investments are recognised on the trade-date - the date on which the Group commits to purchase or sell the asset. Investments are initially recognised at fair value. Investments are derecognised when the rights to receive cash flows from the investments have expired or been transferred and the Group has transferred substantially all the risks and rewards of ownership. Realised and unrealised gains and losses arising from changes in fair value of investments held for trading are included in the income statement in the period in which they arise. Unrealised gains and losses arising in changes in the fair value of available-for-sale investments are recognised in equity. When investments classified as available-for-sale are sold or impaired, the accumulated fair value adjustments are included in the income statement as gains and losses from investment securities.
The fair value of quoted investments is based on current bid prices. If the market for an investment is not active, the Group establishes fair value by using valuation techniques. These include the use of recent arm's length transactions, reference to other instruments that are substantially the same, or discounted cash flow analysis refined to reflect the issuer's specific circumstances.
The Group assesses at each balance sheet date whether there is objective evidence that an investment is impaired. In the case of investments classified as available-for-sale, a significant or prolonged decline in the fair value below its cost is considered in determining whether the security is impaired.
Investments in subsidiaries
Investments in subsidiaries are stated at cost less provision for any impairment in value.
(l) Foreign exchange
The group offers settlement of trades in sterling as well as various foreign currencies. The group does not hold any assets or liabilities other than in sterling and converts client currency on matching terms to settlement of trades realising any currency gain or loss immediately in the income statement. Consequently the group has no foreign exchange risk.
(m) Share capital
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction from proceeds, net of income tax. Where the company purchases its equity share capital (treasury shares), the consideration paid, including any directly attributable incremental costs (net of income tax), is deducted from equity attributable to the company's equity holders until the shares are cancelled, reissued or disposed of. Where such shares are subsequently sold or reissued, any consideration received, net of any directly incremental transaction costs and the related income tax effects, is included in equity attributable to the company's equity holders.
(n) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.
(o) Current income tax
Current income tax assets and/or liabilities comprise those obligations to, or claims from, fiscal authorities relating to the current or prior reporting periods, that are unpaid at the balance sheet date. They are calculated according to the tax rates and tax laws applicable to the fiscal periods to which they relate based on the taxable profit for the year.
(p) Dividend distribution
Dividend distribution to the company's shareholders is recognised as a liability in the group's financial statements in the period in which interim dividends are notified to shareholders and final dividends are approved by the company's shareholders.
(q) Share based payments
The Group applies the requirements of IFRS 2 Share-based Payment and IFRIC 11.
The Group issues equity-settled share-based payments to certain employees and other personnel. Equity-settled share-based payments are measured at fair value (excluding the effect of non-market-based vesting conditions) at the date of grant. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group's estimate of shares that will eventually vest and adjusted for the effects of non market-based vesting conditions.
Fair value is measured by use of a Black-Scholes option pricing model. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.
3. Segmental information
All of the reported revenue and operational results for the period derive from the Group's continuing financial services operations.
4. Income tax charge
Interim period income tax is accrued based on an estimated average annual effective income tax rate of 21.5%.
5. Earnings per share
Six months ended 30/6/14 Six months ended 30/6/13
Earnings Weighted Per share Earnings Weighted Per share
average amount average amount
no. of no. of
shares shares
---------------------------- ------------ ------------- ---------- ------------ ------------ ------------
GBP GBP p GBP GBP p
Earnings attributable
to ordinary shareholders 1,320,267 10,932,549 12.08 1,170,712 10,636,158 11.01
Dilutive effect of options - 69,931 - - 232,142 -
Diluted earnings per
share 1,320,267 11,002,480 12.00 1,170,712 10,868,300 10.77
6. Dividends
During the interim period dividends totalling 8p (2013: 6.5p) per ordinary share were declared and paid.
7. Share capital
During the interim period 337,500 new Ordinary 1p shares in the company were issued to satisfy the exercise of options by employees of the Group.
8. Interim measurement
Costs that incur unevenly during the financial year are anticipated or deferred in the interim report only if it would also be appropriate to anticipate or defer such costs at the end of the financial year.
9. Critical accounting estimates and judgements
The Group makes estimates and assumptions concerning the future. These estimates and judgements are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets within the next financial year relate to goodwill, intangible assets and the expense of employee options.
The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated in Note 2 (e). These calculations require the use of estimates.
The Group considers at least annually whether there are indications that the carrying values of intangible assets may not be recoverable, or that the recoverable amounts may be less than the asset's carrying value, in which case an impairment review is performed. These calculations require the use of estimates.
10. Related party transactions
The company has a lease with Sion Properties Limited, a company controlled by A J Grant by virtue of his majority shareholding, for the rental of 78 Mount Ephraim, a self-contained office building. The lease has an annual rental of GBP63,500, being the market rate on an arm's length basis, and expires on 26 September 2017.
Jarvis Investment Management Limited owed Jarvis Securities plc GBP25,331 at the period end.
As at 30 June 2014 Sion Securities, the company's immediate and ultimate parent undertaking and a company controlled by A J Grant by virtue of his majority shareholding, had GBP292,596 (2013: GBP84,393) deposited with Jarvis Investment Management Limited. Sion Holdings Limited, a company controlled by A J Grant by virtue of his majority shareholding, had GBP100 (2013: GBP959) deposited with Jarvis Investment Management Limited at 30 June 2014. Sion Property Developments Limited, a company controlled by A J Grant by virtue of his majority shareholding, had GBP23,018 (2013: nil) deposited with Jarvis Investment Management Limited at 30 June 2014.
11. Capital commitments
At 30 June the company had no material capital commitments.
12. Event after the statement of financial position date
The Board propose the payment of a third interim dividend for the year to 31 December 2014 of 4.25p per Ordinary share to holders on the register at 22nd August 2014 and payable on 11(th) September 2014.
13. Assets impairment review
During the interim period an impairment review of intangible assets was undertaken. No impairment charge resulted from the review (2013: nil). In reviewing the value of intangible assets for impairment, the directors have assumed attrition rates based on the actual attrition rates of the previous 12 months. These are calculated individually for each group of acquired clients. A discount rate of 2.0% has also been assumed. The discounted cashflow is calculated over a period of 5 years. A 1% decrease in the attrition rates applied to each group of clients results in a GBP17 reduction in the value of the intangible assets. A 1% increase in the assumed discount rate results in a GBP5,156 decrease in the value of the intangible assets. For impairment to occur a discount rate of 10.6% would need to be assumed.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ZMGZNVFGGDZM
1 Year Jarvis Securities Chart |
1 Month Jarvis Securities Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
