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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Syndicate | LSE:SAM | London | Ordinary Share | GB00B0GR9291 | ORD 0.2P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 1.42 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMSAM For immediate release: 0700hrs, Wednesday 8 December 2010 Syndicate Asset Management Plc ("Syndicate", the "Company" or the "Group") Interim Results Syndicate Asset Management Plc (AIM: SAM), the fund management group, today announces its Interim Results for the six months ended 30 September 2010. Financial highlights for period: * Group revenues up 7.5% to GBP18.45 million when compared the same period last year (6 months to 30 September 2009: GBP17.16 million); * Wealth management subsidiary, Ashcourt Rowan, records a 28% increase in revenues compared to same period last year; * Wealth management subsidiary, Savoy, moves into profit achieving a Reportable Segment Profit before Tax of GBP110,000 compared to a loss of GBP 342,000 for 6 months to 30 September 2009; * Institutional fund management subsidiary, EPIC, sees revenues fall by GBP 460,000 over same period last year resulting in a Reportable Segment Loss before Tax of GBP68,000 for the period; * Group losses reduced by GBP400,000 for the period when compared to the same period last year, reported loss for first half of year reduced to GBP33,000; * Overall revenues and EBITDA achieved in the period in line with management expectations. Post Period Highlights: * Funds under management or influence increased by approximately GBP1 billion to GBP6.5 billion following the acquisition by Ashcourt Rowan of the IFA business of the Co-operative Bank Independent Financial Advisers; and * Mark Cheshire, CEO of Ashcourt Rowan, appointed to the Board as Group Director of Sales and Business Development for the Group. Peter Dew, Chairman of Syndicate Asset Management, commented: "The Group has made significant strides towards returning all of its operations to profitability. We are confident that the initiatives and organisational streamlining now in train will allow the business to hit its year-end targets." The Interim Results can additionally be downloaded from the Company's website www.syndicateplc.com. -Ends- Further information: Syndicate Asset Management plc Jonathan Freeman (Group CEO) Tel: 020 7659 8060 Cenkos Securities plc Stephen Keys/Julian Morse Tel: 020 7397 8900 GTH Communications Toby Hall/Christian Pickel Tel: 020 3103 3903 Chairman's statement: I am pleased to report to you the results of your Company for the six months ended 30 September 2010. I am delighted to say that we continue to make good progress in re-building the Group's revenues. For the six months to 30 September 2010 Group revenues were up 7.5% to GBP18.45 million when compared to the same period last year (6 months to 30 September 2009: GBP17.16 million). We would normally expect our revenues to be higher in the second half of our financial year and so the fact that we have maintained revenues in the 6 months under review at the equivalent levels to the second half of the last financial year, (six months to 31 March 2010: GBP 18.88 million), suggests that we are on track for a much improved full year. It is also reassuring to note that the overall revenues achieved in the period under review are in line with management's expectations. Ashcourt Rowan, in particular, has enjoyed a very encouraging first half of our financial year, with revenues of GBP12.38 million, up by approximately 28% on the same period last year (6 months to 30 September 2009: GBP9.7 million). This growth in revenue is, we believe, the direct result of the restructuring of the Ashcourt and Rowan businesses, the repositioning of its product offering to the mass affluent market, and increased marketing. We recognise that there is much more work to do within Ashcourt Rowan with many opportunities to be addressed and that this is effectively only the beginning of what can be achieved. Since the period end we announced the acquisition by Ashcourt Rowan of the IFA business of the Co-operative Bank Independent Financial Advisers Limited for an initial consideration of GBP1 and fixed deferred consideration payments of GBP 250,000 on 1 October 2011 and GBP200,000 on 1 October 2012. This acquisition has meant the transfer to us of approximately GBP1.0 billion of funds under management or influence, the on-going commission revenues of the business, a client base of approximately 55,000 customers and a network of IFA's and sales managers to supplement our existing group of financial planners. This acquisition is allowing Ashcourt Rowan to provide a significantly enhanced national offering of financial planning advice and we expect that this will have a positive impact on our revenues and profitability during the course of 2011. This post period end acquisition has also meant that the funds under management in the Group were, as of 31 October 2010, approximately GBP6.5 billion (30 September 2010: GBP5.5 billion and 30 March 2010: GBP5.8 billion). Turning towards our High Net Worth wealth management business, Savoy, I am pleased to report that it has made an unaudited Reportable Segment Profit before Tax of GBP110,000, (6 months to 30 September 2009: loss of GBP342,000). This profitability has been achieved despite a decline in revenues earned to GBP3.35 million for the period under review (6 months to 30 September 2009: GBP3.93 million). Savoy, whose business model is based around individual fund managers managing portfolios for their own client-base, is now focused on ensuring that existing fund managers increase the level of funds they individually manage as well as attracting additional fund managers to the business in order that the fixed cost base of the business is used more effectively. To support this, we have been working on a range of projects to further improve the client experience at Savoy with one key project being the development of a new Client Relationship Management and investor portal platform which is due to go live in the first quarter of 2011. This will, we expect, provide a huge benefit to Savoy's existing client base and fund managers and will support Savoy's efforts to attract new clients and fund managers. We look forward to gaining confirmation that the strong progress made in returning the division to profitability will be further reflected in improved revenue numbers for the second half of the year. As already reported in the first half of the year, the good progress made in the wealth management divisions has been partially off-set by a decline in revenues within our institutional business, EPIC, where revenues have fallen to GBP1.67 million for the period under review (6 months to 30 September 2009: GBP2.1 million). This decline is due to the previously reported loss of funds under management from EPIC's largest client not being replaced quickly enough by the attraction of new mandates. This has resulted in EPIC having an unaudited Reportable Segment Loss before Tax of GBP68,000, (6 months to 30 September 2009: profit of GBP386,000). This loss of legacy clients also explains the reduction of funds under management for EPIC to approximately GBP2.1 billion (30 September 2009: GBP2.6 billion) which has, in turn, caused the Group's funds under management to fall to approximately GBP5.5 billion as at 30 September 2010 (31 March 2010: GBP5.8 billion). In addition to the on-going efforts to attract new traditional mandates into EPIC which is bearing fruit, the management of EPIC has also been working on the successful creation and launch of its first bond fund which is open to both institutional and retail investors. The goal with this was not to create just one fund but to put in place the necessary structures to allow for the eventual launch of multiple funds. The first of these funds, the EPIC International Bond Fund, was launched in July 2010. The total funds received into the fund to date are approximately GBP17.0 million and we expect that this total will grow significantly in the second half of this financial year as the marketing efforts being undertaken begin to generate investment. Once this first fund is established we intend to launch a variety of other funds within the structures that we now have in place, with each new fund addressing a particular segment of the fixed income universe. We expect that these on-going efforts to attract new traditional mandates and the new initiative to create a series of fixed income funds for retail and institutional clients will return EPIC to revenue growth and profitability in the near term. That said, the low level of profitability within Savoy coupled to the loss incurred by EPIC, has dampened the improved profitability within Ashcourt Rowan. As a result, whilst losses for the first half of the year have been reduced by GBP400,000, Syndicate has recorded a loss for the period of GBP33,000. The Board is nevertheless confident that the initiatives already underway - combined with the organisational adjustments outlined below - to increase revenues will begin to be reflected within the Group results in the short term. We commented in our annual report for the financial year ending 31 March 2010 that we had taken the strategic decision that the Guernsey based `Class B' funds, which make up the majority of the Zenith Funds, are not core to our business and that we were therefore working to sell this business to a third party. We very much hope that we will be able to provide shareholders with a further update on this process in the near future. During the course of the period under review, and as previously announced, we also welcomed to the Group Board as a Director, Neil Hale, who is the Group's Chief Financial Officer. I am also pleased to be able to welcome to the Group Board, as Group Director of Sales and Business Development, Mark Cheshire. Mark is the CEO of Ashcourt Rowan and will continue with this role as well as taking on responsibility for oversight of the revenues of the Group as a whole, ensuring that they are growing. We have also asked Christopher Jeffreys, the CEO of Savoy to also take on an oversight role for the asset managers within the wealth management businesses of the Group, Ashcourt Rowan and Savoy, and for Ravi Shankar, the CEO of EPIC, to also take on an oversight role for the Group's various investment and research capabilities. We believe that these organisational changes will allow the senior management of the Group to be more co-ordinated across the Group and that this will encourage cross-company fertilisation of ideas and business opportunities. We likewise continue to work on the final parts of ensuring that Syndicate provides a single platform of `central services' across the Group which is expert, efficient and scalable. To this end we have now commenced the implementation phase of the single Group operating platform which will eventually be rolled out across all the divisions. The creation and implementation of a single Group-wide operating platform is being taken with great care. This planned project will be deliberately and incrementally executed over the next 18 months ensuring that we do not put our businesses, or their clients, at risk. Whilst this careful path causes some frustration to us because it means that we have to rely on existing legacy systems for a longer time than is at least theoretically necessary, we believe that the risks that would be generated by a faster roll-out of the platform are not justifiable. In addition to this on-going programme of works for the operating platform, I am also pleased to be able to report that we have now made the strategic decision to exit from our current three London properties and to move into a single location on Gracechurch Street in the City of London. We intend to begin the occupation of our new property in March 2011 and to have vacated all three of our current London properties by the summer of 2011. In addition to the financial savings that this move is expected to create for the Group, we are also very excited by the many intangible benefits that will flow from approximately one third of the Group's employees (approximately 120 people) operating out of one location. Clearly these moves are still subject to a variety of legal agreements being agreed and signed. We stated in our annual report for the year to 31 March 2010 that the focus of our attention has now turned towards building upon our existing strengths, in order that our revenues and profits grow. I believe that these results show that we are now beginning to provide consistently improving results which reflect a part of the effort all of us within the Syndicate Group have expended. We are well aware that there is a lot more to do and a lot more to come. We will continue to emphasise cost reduction and revenue growth and very much expect to be able to show success in this over the course of the next months and years. Once again there has been an enormous amount of personal commitment and effort by many people across the Group. Some of this effort is beginning to be reflected in our financial results and I congratulate those who have achieved this. There is also, however, a significant amount of effort where the pay-back in financial terms takes a longer period to reach maturity. I therefore take this opportunity to thank all our staff, particularly those who are working on longer term initiatives whose efforts are putting in place the infrastructure and systems that will allow our business to continue materially growing and prospering. Finally I would like to take this opportunity to thank our many and varied clients for continuing to ask us to provide services to them. Peter Dew Chairman of the Board 7 December 2010 Consolidated income statement Six months ended 30 September 2010 Six months Six months Year ended ended ended 30 September 30 September 31 March Note 2010 2009 2010 (unaudited) (unaudited) (audited) GBP'000s GBP'000s GBP'000s Revenue 18,451 17,164 35,684 Cost of sales (7,273) (6,460) (13,615) Gross profit 11,178 10,704 22,069 Administrative expenses 5 (11,508) (10,766) (24,688) Loss from operations (330) (62) (2,619) Investment income 29 67 97 Other gains and losses 24 - - Net finance costs (7) (436) 10 Loss before tax (284) (431) (2,512) Taxation 6 251 (113) 408 Loss for the period attributable to (33) (544) (2,104) the equity holders of the parent Loss per share Basic 7 (0.00)p (0.10)p (0.20)p Diluted 7 (0.00)p (0.10)p (0.20)p Consolidated statement of comprehensive income Six months ended 30 September 2010 Six months Six months Year ended ended ended 30 September 30 September 31 March 2010 2009 2010 (unaudited) (unaudited) (audited) GBP'000s GBP'000s GBP'000s Loss for the period (33) (544) (2,104) Other comprehensive income: - (153) (153) Unrealised currency (loss)/gain recognised directly in equity Total comprehensive income for the year (33) (697) (2,257) Attributable to: Equity holders of the Parent (33) (697) (2,257) Total recognised income and expense for (33) (697) (2,257) the period Consolidated balance sheet 30 September 2010 30 September 30 September 31 March Note 2010 2009 2010 (unaudited) (unaudited) (audited) GBP'000s GBP'000s GBP'000s Non-current assets Goodwill 8 46,466 47,090 46,576 Other intangible assets 9 5,372 6,424 5,900 Property, plant and equipment 1,648 1,010 984 Available-for-sale investments 146 146 146 Total non-current assets 53,632 54,670 53,606 Current assets Trade and other receivables 9,593 8,447 13,142 Cash and cash equivalents 8,962 6,480 7,531 Available-for-sale investments - 21 - Total current assets 18,555 14,948 20,673 Total assets 72,187 69,618 74,279 Current liabilities Trade and other payables (10,905) (7,506) (12,096) Obligations under finance leases - (7) - Loans and deferred consideration (62) (5,564) (917) Short-term provisions 10 (116) (1,309) (125) Total current liabilities (11,083) (14,386) (13,138) Non-current liabilities Loans and deferred consideration - (7,210) - Deferred tax liabilities (1,144) (1,676) (1,395) Obligations under finance leases - (5) - Long-term provisions 10 (154) (1,131) (277) Total non-current liabilities (1,298) (10,022) (1,672) Total liabilities (12,381) (24,408) (14,810) Net assets 59,806 45,210 59,469 Equity Share capital 11 3,608 1,295 3,608 Share premium account 12 72,522 59,192 72,522 Equity reserve 1,305 759 935 Retained earnings (17,629) (16,036) (17,596) Equity attributable to equity 59,806 45,210 59,469 holders of the parent Consolidated statement of changes in equity 30 September 2010 Share Share Equity Retained Total Capital Premium Reserve Earnings GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s At 31 March 2009 275 55,750 692 (15,339) 41,378 Total comprehensive income for the period: Loss for the period - - - (544) (544) Other comprehensive income, net of tax: Unrealised currency loss - - - (153) (153) Transactions with owners recorded directly in equity: Share-based payments - - 67 - 67 Issues of shares 1,020 4,085 - - 5,105 Costs of share issue - (643) - - (643) At 30 September 2009 1,295 59,192 759 (16,036) 45,210 Total comprehensive income for the period: Loss for the period - - - (1,560) (1,560) Transactions with owners recorded directly in equity: Share-based payments - - 476 - 476 Cancellation of share-based - - (300) - (300) payments Issues of shares 2,313 15,032 - - 17,345 Costs of share issue - (1,702) - - (1,702) At 31 March 2010 3,608 72,522 935 (17,596) 59,469 Total comprehensive income for the period: Loss for the period - - - (33) (33) Transactions with owners recorded directly in equity: Share-based payments - - 370 - 370 At 30 September 2010 3,608 72,522 1,305 (17,629) 59,806 Consolidated cash flow statement Six months ended 30 September 2010 Six months Six months Year ended ended ended 30 September 30 September 31 March 2010 2009 2010 Operating activities: (unaudited) (unaudited) (audited) GBP'000s GBP'000s GBP'000s Loss for the period (33) (544) (2,104) Adjustments for: Depreciation of property, plant and 271 226 455 equipment Amortisation of intangibles 528 531 1,055 Share based payment expense 370 67 543 Impairment of available-for-sale - - 22 investments Discount on repayment of loan notes - - (276) Unrealised foreign exchange loss - (153) (153) Investment income (29) (67) (97) Finance costs 7 436 266 Corporation tax (credit)/expense (251) 113 (408) Operating cash inflow/(outflow) before 863 609 (697) movements in working capital Decrease/(increase) in receivables 4,372 4,079 (614) (Decrease)/increase in payables (2,017) (4,492) 777 Decrease in provisions (6) (14) (126) Cash inflow/(outflow) from operations 3,212 182 (660) Tax paid - (987) (1,100) Interest received 29 67 95 Interest paid (7) (188) (318) Cash inflow/(outflow) from operating 3,234 (926) (1,983) activities Investing activities Acquisition of goodwill and intangible - - (58) assets Purchases of property, plant and (935) (157) (361) equipment Dividends received - 2 3 Net cash used in investing activities (935) (155) (416) Financing activities Proceeds of share issues - 5,105 22,450 Costs of share issue - (643) (2,345) Repayments of obligations under finance - (2) (12) leases Repayments of loans and deferred (868) (4,000) (16,964) consideration Cancellation of share-based payments/ - - (300) warrants Net cash from financing activities (868) 460 2,829 Net decrease in cash and cash equivalents 1,431 (621) 430 Cash and cash equivalents at beginning of 7,531 7,101 7,101 period Cash and cash equivalents at end of 8,962 6,480 7,531 period Notes to the unaudited interim financial report Six months ended 30 September 2010 1. Reporting entity Syndicate Asset Management plc (the "Company") is a company domiciled in the United Kingdom. The condensed consolidated interim financial statements of the Company as at and for the six months ended 30 September 2010 comprise the Company and its subsidiaries (together referred to as the "Group") and the Group's interests in associates and jointly controlled entities. The consolidated financial statements of the Group as at and for the year ended 31 March 2010 are available upon request from the Company's registered office at 7 Hanover Square, London W1S 1HQ or at www.syndicateplc.com. 2. Statement of compliance These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 March 2010. These condensed consolidated interim financial statements were approved by the Board of Directors on 7 December 2010. 3. Accounting policies The accounting policies applied by the Group in these condensed consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 March 2010, except that with effect from 1 April 2010 the Group adopted the following new standards and interpretations: IFRS - 3 Business Combinations (2008) and IAS 27 - Consolidated and Separate Financial Statements (2008) for business combinations occurring in the financial year commencing 1 October 2009. All business combinations occurring on or after 1 April 2010 are accounted for by applying the acquisition method. The change in accounting policy was applied prospectively and had no material impact on earnings per share. 4. Operating Segments The Group has four reportable segments, as described below, which are the Group's strategic business units. The strategic business units offer a different mix of products and services, and are managed separately. For each of the strategic business units, the Group's CEO reviews internal management reports on at least a monthly basis. The following summary describes the operations in each of the Group's reportable segments: Ashcourt Rowan Group - Wealth management and financial planning EPIC - Institutional investment management Savoy - Wealth management Syndicate C.I. (Zenith) - Retail fund management Information regarding the results of each reportable segment is included below. Performance is measured based on segment profit before tax, as included in the internal management reports that are reviewed by the Group's CEO. Segment profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries. Inter-segment pricing is determined on an arm's length basis. 6 months to 30.09.2010 Ashcourt EPIC Savoy SAM C.I. Total Rowan 6 months 6 months 6 months 6 months 6 months ended ended ended ended ended 30.09.10 30.09.10 30.09.10 30.09.10 30.09.10 GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s External revenues 12,347 1,666 3,346 1,092 18,451 Inter-segment revenues 34 47 - - 81 Total revenue 12,381 1,713 3,346 1,092 18,532 External cost of sales (4,819) (627) (1,194) (633) (7,273) Inter-segment cost of - - - (81) (81) sales Total cost of sales (4,819) (627) (1,194) (714) (7,354) Gross Profit 7,562 1,086 2,152 378 11,178 Administrative expenses (5,697) (1,000) (1,672) (486) (8,855) Depreciation and (617) (2) (47) - (666) amortisation Total administrative (6,314) (1,002) (1,719) (486) (9,521) expenses Operating profit 1,248 84 433 (108) 1,657 Finance income 28 1 - - 29 Finance expense (7) - - - (7) Group management charges (816) (153) (323) (90) (1,382) Reportable segment profit 453 (68) 110 (198) 297 before tax Segment assets 34,465 4,879 4,733 5,515 49,592 Segment liabilities (24,035) (603) (1,541) (4,473) (30,652) 6 months to 30.09.2009 Ashcourt EPIC Savoy SAM C.I. Total Rowan 6 months 6 months 6 months 6 months 6 months ended ended ended ended ended 30.09.09 30.09.09 30.09.09 30.09.09 30.09.09 GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s External revenues 9,647 2,113 3,928 1,476 17,164 Inter-segment revenues 36 60 - - 96 Total revenue 9,683 2,173 3,928 1,476 17,260 External cost of sales (3,561) (887) (1,447) (565) (6,460) Inter-segment cost of - - - (96) (96) sales Total cost of sales (3,561) (887) (1,447) (661) (6,556) Gross Profit 6,122 1,286 2,481 815 10,704 Administrative expenses (4,881) (733) (2,531) (851) (8,996) Depreciation and (390) (79) (79) (155) (703) amortisation Total administrative (5,271) (812) (2,610) (1,006) (9,699) expenses Operating profit 851 474 (129) (191) 1,005 Finance income 55 2 4 3 64 Finance expense (120) - - (20) (140) Group management charges (467) (90) (217) (72) (846) Reportable segment profit 319 386 (342) (280) 83 before tax Segment assets 34,789 5,700 4,800 3,852 49,141 Segment liabilities (24,195) (1,087) (1,458) (2,346) (29,086) Reconciliations of reportable segment revenues, profit or loss 6 months 6 months ended ended 30 September 30 September 2010 2009 GBP000's GBP000's Revenues Total revenue for reportable segments 18,532 17,260 Less intra-segment revenue (81) (96) Consolidated revenue 18,451 17,164 6 months 6 months ended ended 30 September 30 September 2010 2009 GBP000's GBP000's Total administrative expenses Total administrative expenses for (9,521) (9,699) reportable segments Less unallocated items (1,987) (1,067) Consolidated total administrative (11,508) (10,766) expenses 6 months 6 months ended ended 30 September 30 September 2010 2009 GBP000's GBP000's Profit or loss before tax Total profit before tax for 297 83 reportable segments Unallocated amounts: Management fees paid to parent 1,382 847 Head office costs and costs of parent (1,855) (1,014) Depreciation and amortisation (133) (54) Other gains and losses 25 - Investment income - 3 Finance costs - (296) Consolidated loss before tax (284) (431) Reportable Unallocated Consolidated segment amounts totals total GBP000's GBP000's GBP000's Other material items 2010 Finance income 29 - 29 Finance expense (7) - (7) Amortisation and depreciation (666) (133) (799) Reportable Unallocated Consolidated segment amounts totals total GBP000's GBP000's GBP000's Other material items 2009 Finance income 64 6 70 Finance expense (140) (296) (436) Amortisation and depreciation (703) (54) (757) 5. Administrative expenses Administrative expenses include depreciation of GBP271,000 (six months ended 30 September 2009: GBP226,000 and year ended 31 March 2010: GBP455,000) and amortisation of non-goodwill intangible assets of GBP528,000 (six months ended 30 September 2009: GBP531,000 and year ended 31 March 2010: GBP1,055,000). 6. Taxation Six months Six months Year ended ended ended 30 September 30 September 31 March 2010 2009 2010 (unaudited) (unaudited) (audited) GBP'000s GBP'000s GBP'000s Current tax: UK corporation tax - (241) - Overprovision in prior periods - (39) (39) Deferred tax: Current year 251 167 447 251 (113) 408 Corporation tax for the interim period is charged at 28% (year ended 31 March 2010: 28%), representing the best estimate of the weighted average annual corporation tax rate expected for the full financial year. 7. Earnings per share The calculation of the basic and diluted earnings per share is based on the following data: Six months Six months Year ended ended ended 30 September 30 September 31 March Earnings 2010 2009 2010 (unaudited) (unaudited) (audited) GBP'000s GBP'000s GBP'000s Earnings for the purposes of basic (33) (544) (2,104) earnings per share being net profit attributable to equity holders of the parent Six months Six months Year ended ended ended 30 September 30 September 31 March 2010 2009 2010 Number Number Number Number of shares Weighted average number of ordinary 1,804,015,296 522,113,438 1,049,591,627 shares for the purposes of basic earnings per share Effect of dilutive potential ordinary shares: Warrants - - - Options - - - Weighted average number of ordinary 1,804,015,296 522,113,438 1,049,591,627 shares for the purposes of diluted earnings per share The denominator for the purposes of calculating basic earnings per share has been adjusted to reflect the share issues which took place during the period. During the period the potential ordinary shares under the options would have the effect of reducing the loss per share and therefore are anti-dilutive. 8. Goodwill GBP'000s Cost As at 31 March 2009 (audited) 48,090 Adjustment to the fair value of consideration payable: EPIC (1,000) As at 30 September 2009 (unaudited) 47,090 Adjustment to the fair value of consideration payable: EPIC (573) Additional amounts paid on restructuring of deferred consideration 59 As at 31 March 2010 (audited) 46,576 Adjustment to the fair value of consideration payable: Burfield (24) Pagan Osborne (86) As at 30 September 2010 (unaudited) 46,466 9. Other intangible assets Acquired Acquired Acquired client OEIC and Investment relationships unit trust trust management management contracts contracts Total GBP'000s GBP'000s GBP'000s GBP'000s Cost At 31 March 2009 (audited) 6,419 3,251 442 10,112 Acquired on acquisition of - - - - businesses At 30 September 2009 6,419 3,251 442 10,112 (unaudited) Acquired on acquisition of - - - - businesses At 30 September 2010 6,419 3,251 442 10,112 (unaudited) Acquired on acquisition of - - - - businesses At 30 September 2010 6,419 3,251 442 10,112 (unaudited) Amortisation At 31 March 2009 (audited) 1,713 1,258 186 3,157 Charge for the period 324 163 44 531 30 September 2009 (unaudited) 2,037 1,421 230 3,688 Charge for the period 317 162 45 524 At 31 March 2010 (audited) 2,354 1,583 275 4,212 Charge for the period 321 163 44 528 At 30 September 2010 2,675 1,746 319 4,740 (unaudited) Carrying amount At 30 September 2010 3,744 1,505 123 5,372 (unaudited) At 31 March 2010 (audited) 4,065 1,668 167 5,900 At 30 September 2009 4,382 1,830 212 6,424 (unaudited) At 31 March 2009 (audited) 4,706 1,993 256 6,955 10. Provisions Surplus Contingent Total leasehold deferred GBP'000s property consideration costs GBP'000s GBP'000s At 31 March 2009 (audited) 308 3,526 3,834 Reduction in provision (14) (1,380) (1,394) At 30 September 2009 (unaudited) 294 2,146 2,440 Change in provision (110) (1,928) (2,038) At 31 March 2010 (audited) 184 218 402 Reduction in provision (6) (126) (132) At 30 September 2010 (unaudited) 178 92 270 30 September 30 September 31 March 2010 2009 2010 (unaudited) (unaudited) (audited) GBP'000s GBP'000s GBP'000s Included in current liabilities 116 1,309 125 Included in non current 154 1,131 277 liabilities 270 2,440 402 The provision in respect of surplus leasehold assets reflects management's best estimate of the liability arising from onerous lease obligations in respect of leasehold property interests acquired on the acquisition of subsidiaries in the periods ended 31 March 2006 and 2007. The provision in respect of contingent deferred consideration relates to consideration on acquisitions that will fall due only if future conditions are met. These conditions include future levels of profitability, turnover or values of funds under management as follows: a) On 29 February 2008 Investment Management Holdings Limited acquired 100% of the issued share capital of Burfield and Partners Asset Management Limited. Consideration included minimum deferred consideration of GBP100,000 to a maximum of GBP275,000 based on 71% of revenue arising post acquisition. The deferred consideration is payable over the period from the date of acquisition to 31 March 2011. The provision included at 30 September 2010 is GBP92,000. 11. Share Capital 30 September 30 September 31 March 2010 2009 2010 (unaudited) (unaudited) (audited) GBP'000s GBP'000s GBP'000s Authorised: 2,500,000,000 ordinary shares of GBP 5,000 3,000 5,000 0.002 each Issued and fully paid: 1,804,015,296 ordinary shares of GBP 3,608 1,295 3,608 0.002 each No new ordinary shares in the Company were issued during the period. The Company has one class of ordinary shares which carries no right to fixed income. Share capital GBP'000s At 31 March 2009 (audited) 275 Issue of equity shares 1,020 At 30 September 2009 (unaudited) 1,295 Issue of equity shares 2,313 At 31 March 2010 (audited) and at 30 3,608 September 2010 (unaudited) 12. Share Premium Share premium GBP '000s At 31 March 2009 (audited) 55,750 Issue of equity shares 4,085 Cost of share issues (643) At 30 September 2009 (unaudited) 59,192 Issue of equity shares 15,032 Cost of share issues (1,702) At 31 March 2010 (audited) 72,522 Issue of equity shares - Cost of share issues - At 30 September 2010 (unaudited) 72,522 13. Post balance sheet events On 1 October 2010 the Company acquired the business of Co-Op Independent Financial Advisers for an initial consideration of GBP1 plus a share of the revenue of the business of GBP250,000 payable in October 2011 and GBP200,000 payable in October 2012. END
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