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CB. Cbg Group

29.50
0.00 (0.00%)
17 May 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Cbg Group LSE:CB. London Ordinary Share GB0033696344 ORD 4P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 29.50 0.00 01:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Preliminary Results (3506D)

22/03/2011 7:00am

UK Regulatory


CBG Group (LSE:CB.)
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TIDMCB.

RNS Number : 3506D

CBG Group Plc

22 March 2011

22 March 2011

CBG GROUP PLC

(AIM: CB.)

PRELIMINARY ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2010

CBG Group plc ("CBG" or the "Group"), the Manchester based insurance broker and financial services specialist, is pleased to announce full year results for the year to 31 December 2010.

HIGHLIGHTS

-- Revenue GBP7,708,000 (2009: GBP8,961,000);

-- Adjusted * EBITD GBP1,160,000 (2009: GBP1,386,000);

-- Adjusted * pre-tax profits GBP842,000 (2009: GBP1,026,000);

-- Diluted adjusted * earnings per share 3.83p (2009: 4.69p);

-- Earnings per share - diluted (pence) adjusted for loss on disposal of Personal Lines business 1.79p (2009: 1.18p);

-- Final dividend proposed 0.75p per share (2009: 0.70p per share);

-- Acquisition of Rockbridge Healthcare Limited;

-- Deferred consideration payments of GBP1,055,000 fully settled, including cash payments of GBP945,000;

-- New product initiatives, including the development of PALM, a strategic partnership with MPS Risk Solutions (17 January 2011).

* Adjusted to add back exceptional operating and non-operating expenses, amortisation, and share option charges.

Mike Askew, Group Managing Director of CBG said:

"I am in no doubt that the trading environment will continue to be tough in 2011. While some of our customer markets remain under pressure, our future prospects are encouraging. I remain confident that the fundamentals of our businesses are strong, our balance sheet is in good shape and new management is in place with the background, experience and ambition to drive the business forward."

---ENDS---

 
 
 Enquiries 
 
 CBG Group plc                            0161 920 0200 
 Mike Askew, Group Managing Director       07720 400356 
 Martyn Hughes, Group Finance Director     07734 543454 
 www.cbg-group.co.uk 
 
 Zeus Capital (Nomad & Broker)            0161 831 1512 
 Alex Clarkson / Nick Cowles 
 
 Daniel Stewart & Company plc (Joint 
  Broker)                                 020 7776 6550 
 Martin Lampshire 
 
 Bishopsgate Communications Ltd           020 7562 3350 
 Nick Rome / Laura Stevens 
 
 

Chairman's statement

Financial overview

I am pleased to be announcing my first set of year end results for our business as Chairman. Like the prior year, 2010 was one of continued market uncertainty and economic fragility which has impacted heavily on the performance of the majority of our core client base. Their revenues and activity levels have fallen, ensuring that the year has not been without challenge for CBG given the knock on effect on our supporting advisory business.

Decisive actions have been undertaken in moving away from non-core business activities and marginally profitable areas and, whilst this has been detrimental to revenues, the return on capital employed has been enhanced. We have a clear plan to improve the fortunes of the business built upon the high level of client retention we maintain. We are passionate about customer service and strive for operational excellence across the breadth of our activities. Our management structure is focused upon a customer centric operation and we have continued to evolve the CBG brand successfully within a changing market.

In the twelve months to 31 December 2010 the Group's revenue fell by GBP1,253,000 to GBP7,708,000 (2009: GBP8,961,000), with the fall in adjusted * pre tax profit limited to GBP184,000 to GBP842,000 (2009: GBP1,026,000). In recognition of disposing of our non-core private client car and household activities it has been appropriate to allocate GBP902,000 of goodwill to the disposal of these activities thus generating a loss on disposal of GBP944,000 in these accounts. The basic diluted loss per share for the year ended 31 December 2010 was 4.18 pence (2009: Profit 1.18 pence). However, adjusting for the effects of the loss on disposal outlined above, the basic diluted earnings per share equates to a profit of 1.79 pence. In the same period diluted adjusted * earnings per share was 3.83 pence (2009: 4.69 pence).

* Adjusted to add back exceptional operating and non-operating expenses, amortisation, and share option charges.

Strategy

We have announced our intention to prioritise our future investment in speciality schemes, by putting service and the customer at the heart of the business, and giving our teams the tools and resources to serve our clients, I am confident that CBG can fulfil its mission and rank amongst the most profitable independent brokers in the UK.

CBG's key strengths have helped us manage our way through this undoubtedly difficult period. Our management took decisive action to stabilise the business in the face of the downturn, focussing on our customers, managing our business tightly, and with a close eye on costs and cash. We have introduced further operational efficiencies to improve our business and I believe very strongly that CBG is at a very exciting stage of its journey.

These changes are described in more detail in the Group Managing Director's review. Through these changes we will build the platform from which we will deliver sustainable long-term growth.

Dividend

The Board is recommending a final dividend of 0.75p, up 7% on the dividend paid in the previous year. The dividend will be paid, subject to shareholders approval, on 27 May 2011 to shareholders on the register on 6 May 2011.

Board

There have been changes to the composition of the Group Board this year. Stephen Darcy, an Executive Director and Managing Director of CBG Insurance Brokers, left the Company in August 2010. Stephen Rees, the Managing Director of our Financial Services division, was appointed to the Board on 23 March 2010.

Going concern

The directors acknowledge the guidance on going concern and financial reporting published by the Financial Reporting Council in October 2009. The Group is well placed to manage its business risks and has adequate resources to continue in operational existence for the foreseeable future. Our current banking arrangements are due for renewal in August 2011 and based on ongoing discussions with current banking partners, the directors are confident that facilities will be available and appropriate for our requirements.

The directors have reviewed the Group's forecasts and budgets for the next 12 months and based on the information set out above, the directors believe that it is appropriate to prepare the financial statements on a going concern basis.

Outlook

As expected, there has been no let up to the significant changes that are taking place in our chosen markets, and we will continue to take a realistic view about how these are likely to impact our business.

We know that we need to be both thoughtful and vigorous in addressing these changes and, though there is much for us to do to execute this plan, the Board is satisfied that appropriate steps have been taken. While the rate of recovery in our markets is difficult to predict I am confident that our underlying profitability will recover significantly as end-markets improve.

We remain cautious about 2011 but very optimistic that we are well positioned to meet the challenges ahead. More than most sectors, we depend heavily on the quality of our people. It is people who make a difference and I believe we have a great team of loyal hard-working staff, a team which has been collectively responsible for the progress the Group has made this year. I look forward to working with them in the year ahead.

Robin Slinger

Chairman

22 March 2011

Group Managing Director's statement

Our business has faced similar challenges to those in the prior year, in what still remains a very difficult market to trade in. We have continued to focus on our client retention policy, ensuring we deliver value and quality service to our relationships, albeit at the same time continuing to take out costs where we can, so as to maintain our operating margins. We will continue to focus on profitable organic growth in the existing businesses, constantly looking for opportunities in niche markets where we have knowledge and expertise, and where we believe we can make an acceptable margin.

Group Overview

CBG has coped well in difficult trading conditions, improving margins through careful management of resource, costs and investment. The Group has delivered an adjusted * pre-tax profit of GBP842,000 (2009: GBP1,026,000) and the 7% increase in the final dividend reflects our confidence in the future outlook. We have undertaken a review of our operating management structure and made changes in the final quarter of 2010 that will enable us to utilise our resources effectively to achieve our goals.

* Adjusted to add back exceptional operating and non-operating expenses, amortisation, and share option charges.

Our strategic focus remains on four core elements: consistently delivering excellent customer service, strong leadership and sensible business practices, profitable organic growth and a results driven culture.

Acquisitions

The general outlook for acquisitions towards the end of 2010 has seen a cautious optimism return, although this outlook is tempered by a general lack of quality targets and ongoing differences in perception of value between buyers and sellers.

CBG acquired Rockbridge Healthcare Limited on the 30 September 2010, immediately integrating the trade into our already profitable healthcare division. This has broadened the number of opportunities to cross-sell other services to the acquired client base as well as allowed us to accelerate our review of the management structure . A deferred consideration amount of GBP35,000 is payable based on earn out targets contingent on the achievement of minimum income levels.

Business Operations

Whilst our two main trading divisions continue to operate as separate legal entities the responsibility for the day to day management of the businesses is now undertaken by a Group operating management team. The team of five, including myself, all have clear roles and responsibilities for the key functions of operations & finance, client services, business development and strategic planning.

Beneath this team is a second tier of management all of who represent the future succession plans for the Group. All have defined accountabilities and are measured in their performance by agreed key performance indicators. Whilst these changes are still in their infancy, the early signs are that they are having a positive impact, particularly in how we interact with our clients and a developing creativity in everything we do.

Trading conditions in 2010 have continued to be difficult particularly in our insurance broking division where market rates remained stubbornly soft, and revenues were impacted by the disposal of our non-core personal lines business in the first quarter of the year, but it remains very competitive with the obvious pressure on margins. The financial services division responded well to the challenges of the slower market conditions and further progress has been made in repositioning the division to enable greater revenue resilience.

New product initiatives, including the development of PALM, a strategic partnership with MPS Risk Solutions www.palm-insurance.co.uk launched in January 2011, and major marketing campaigns feature heavily in the plan to combat the challenges of a difficult market. The business now has a strongly motivated and high calibre team, focused on growth and profit delivery and we will continue to develop our proposition to our end user customers.

Compliance

We operate in a highly regulated industry and compliance is a significant and increasingly demanding obligation. New and improved professional standards come into force in December 2012 within financial services, representing a fundamental change to the way in which advisors do business. We will ensure our training & competence schemes are fit for purpose, as well as ensuring our sales processes deliver the right quality of service.

We feel it is important that we look for the advantages rather than focus on resisting change and will be presenting clients with a clear picture of what they are being offered as a service and importantly explain how they will pay for that service.

We will continue to ensure uniformity across all areas of the business by applying in depth knowledge of the regulatory obligations.

Employees

Our employees are passionate about what they do and have an exceptional commitment to our customers. Their performance underpins my confidence in our ability to deliver in the coming years. On behalf of the Board, I would like to thank everyone at CBG for their determined efforts in a difficult year and their commitment to the future success of our business.

Outlook

I am in no doubt that the trading environment will continue to be tough in 2011. While some of our customer markets remain under pressure, our future prospects are encouraging. I remain confident that the fundamentals of our businesses are strong, our balance sheet is in good shape and new management is in place with the background, experience and ambition to drive the business forward.

Mike Askew

Group Managing Director

22 March 2011

Consolidated Income Statement

Year ended 31 December 2010

 
 
                                                  Year to    Year to 
                                                 31/12/10   31/12/09 
                                          Note    GBP'000    GBP'000 
 
 Revenue                                     2      7,708      8,961 
 
 Administrative expenses                          (7,776)    (8,774) 
 
 Operating profit before amortisation, 
  exceptional operating expenses 
  and share option charges                            910      1,133 
 
 Amortisation                                       (600)      (704) 
 Exceptional operating expenses              3      (302)      (177) 
 Share option charges                                (76)       (65) 
---------------------------------------  -----  ---------  --------- 
 
 
 Administrative expenses excluding 
  exceptional items                               (6,798)    (7,828) 
---------------------------------------  -----  ---------  --------- 
 
 Operating (loss)/ profit                    2       (68)        187 
 
 Investment income                                      6         10 
 Finance costs                                       (74)      (117) 
---------------------------------------  -----  ---------  --------- 
 
 (Loss) / profit before tax from 
  continuing operations                             (136)         80 
 
 Loss for the year from the disposal 
  of Personal Lines business                 3      (944)          - 
 
 (Loss) / profit before tax                       (1,080)         80 
 
 Income tax                                           419        106 
 
 (Loss) / profit attributable to 
  ordinary shareholders                             (661)        186 
---------------------------------------  -----  ---------  --------- 
 
 (Loss) / earnings per share from 
  continuing operations:                          Pence      Pence 
 
 (Loss) / earnings per share - 
  basic                                      4     (4.18)       1.19 
---------------------------------------  -----  ---------  --------- 
 
 (Loss) / earnings per share - 
  diluted                                    4     (4.18)       1.18 
---------------------------------------  -----  ---------  --------- 
 
 

The Group has no items, other than the profit for the year, to be recognised in the "Consolidated statement of comprehensive income" and consequently this statement has not been shown.

Consolidated Statement of Financial Position

31 December 2010

 
 
                                            2010       2009 
                                  Note   GBP'000    GBP'000 
 Non-current assets 
 Goodwill                                 12,342     13,067 
 Other intangible assets                   2,119      2,907 
 Property, plant and equipment               357        550 
 Deferred tax asset                          136         27 
-------------------------------  -----  --------  --------- 
                                          14,954     16,551 
-------------------------------  -----  --------  --------- 
 
 Current assets 
 Trade and other receivables               3,731      4,652 
 Cash and cash equivalents                 1,207      1,844 
-------------------------------  -----  --------  --------- 
                                           4,938      6,496 
-------------------------------  ----- 
 
 Total Assets                             19,892     23,047 
-------------------------------  -----  --------  --------- 
 
 Current liabilities 
 Bank overdraft                            (389)          - 
 Trade and other payables                (4,573)    (5,825) 
 Deferred consideration                     (35)    (1,055) 
 Current tax                               (364)      (122) 
 Borrowings                              (2,325)      (410) 
-------------------------------  -----  --------  --------- 
                                         (7,686)    (7,412) 
-------------------------------  -----  --------  --------- 
 
 Non-current liabilities 
 Deferred tax                              (302)      (820) 
 Borrowings                                    -    (2,325) 
 
                                           (302)    (3,145) 
 
 Total liabilities                       (7,988)   (10,557) 
-------------------------------  -----  --------  --------- 
 
 Equity 
 Ordinary shares                   7         636        627 
 Share premium account                     7,891      7,790 
 Merger reserve                              449        449 
 Retained earnings                         2,928      3,624 
 
 Shareholders' equity                     11,904     12,490 
-------------------------------  -----  --------  --------- 
 
 Total equity and liabilities             19,892     23,047 
-------------------------------  -----  --------  --------- 
 
 

These financial statements were approved by the Directors on 22 March 2011.

Consolidated Statement of Changes in Shareholders' Equity

Year ended 31 December 2010

 
                                        Share 
                             Share    premium     Merger    Retained     Total 
                           capital    account    reserve    earnings    equity 
                           GBP'000    GBP'000    GBP'000     GBP'000   GBP'000 
 
 Balance at 1 January 
  2009                         620      7,675        449       3,534    12,278 
 
 Dividends paid                  -          -          -       (102)     (102) 
 Issue of ordinary 
  shares                         7        115          -           -       122 
 Other reserves 
  movement due to share 
  options charge                 -          -          -          65        65 
 Impact of deferred tax 
  on share option 
  charge                         -          -                   (59)      (59) 
 
 Transactions with 
  owners                       627      7,790        449       3,438    12,304 
 
 Net profit for the 
  period attributable 
  to equity 
  shareholders                   -          -          -         186       186 
 
 Balance at 31 December 
  2009                         627      7,790        449       3,624    12,490 
 
 Dividends paid                  -          -          -       (111)     (111) 
 Issue of ordinary 
  shares                         9        101          -           -       110 
 Other reserves 
  movement due to share 
  options charge                 -          -          -          76        76 
 
 Transactions with 
  owners                       636      7,891        449       3,589    12,565 
 
 Net profit for the 
  period attributable 
  to equity 
  shareholders                   -          -          -       (661)     (661) 
 
 Balance at 31 December 
  2010                         636      7,891        449       2,928    11,904 
-----------------------  ---------  ---------  ---------  ----------  -------- 
 
 

The Group has applied s131 of the Companies Act (1985) in respect of Merger Relief in relation to a prior period acquisition.

Consolidated Statement of Cash Flows

Year ended 31 December 2010

 
 
                                                     2010      2009 
                                           Note   GBP'000   GBP'000 
 
 Operating Activities 
 Cash generated by operations               8         542     2,998 
 
 Income taxes paid                                      6     (507) 
 Interest paid                                       (74)     (117) 
----------------------------------------  -----  --------  -------- 
 
 Net cash inflow from operating 
  activities                                          474     2,374 
----------------------------------------  -----  --------  -------- 
 
 Investing activities 
 Interest received                                      6         8 
 Proceeds from disposal of Personal 
  Lines business                                      268         - 
 Purchases of property, plant and 
  equipment                                          (92)     (196) 
 Deferred consideration paid                        (945)   (1,850) 
 Acquisition of subsidiary net 
  of cash acquired                          6       (216)         - 
 
 Net cash used in investing activities              (979)   (2,038) 
-----------------------------------------------  --------  -------- 
 
 Financing activities 
 Dividends paid                                     (111)     (102) 
 Proceeds from issue of shares                          -        14 
 Repayment of bank loans                                -   (1,250) 
 Repayment of other loans                           (410)     (420) 
 Repayment of hire purchase obligations                 -      (36) 
 
 
 Net cash used in financing activities              (521)   (1,794) 
----------------------------------------  -----  --------  -------- 
 
 Net decrease in cash and cash 
  equivalents                               9     (1,026)   (1,458) 
 
 Cash and cash equivalents at start 
  of period                                         1,844     3,302 
 
 
 Cash and cash equivalents at end 
  of period                                           818     1,844 
----------------------------------------  -----  --------  -------- 
 
 
 Cash                                               1,207     1,844 
 Overdraft                                          (389)         - 
 
 Cash and cash equivalents at end 
  of period                                           818     1,844 
----------------------------------------  -----  --------  -------- 
 
 

1. Results and accounting policies

The financial information set out in this announcement does not constitute the statutory accounts of the Group for the year ended 31 December 2010. The auditors reported on those accounts; their report was unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006. The statutory accounts for the year ended 31 December 2010 will be delivered to the registrar of Companies following the Company's Annual General Meeting.

Whilst the financial information included in this preliminary announcement has been computed in accordance with International Financial Reporting Standards (IFRS), this announcement in itself does not contain sufficient information to comply with IFRS. Details of the accounting policies are those set out in the annual report for the year ended 31 December 2009. These accounting policies have remained unchanged for the financial year ended 31 December 20010.

2. Segment information

For management purposes, the Group is organised into three divisions; Insurance Broking, Financial Services and Premium Finance. These divisions are the basis on which the Group reports its major income generating and cash flow results to its chief operating decision maker.

Revenue and operating profit

 
                                        Year ended            Year ended 
                                     31 December 2010      31 December 2009 
                                              Operating 
                                                 profit             Operating 
                                    Revenue    / (loss)   Revenue      profit 
                                    GBP'000     GBP'000   GBP'000     GBP'000 
 
 By class of business: 
 
 Insurance Broking                    5,839       1,324     6,795       1,461 
 
 Financial Services                   1,775         111     1,833          48 
 
 Premium Finance                         94          75       303         217 
 
 Other                                    -           -        30          30 
---------------------------------  --------  ----------  --------  ---------- 
 
                                      7,708       1,510     8,961       1,756 
                                   --------              -------- 
 
 Amortisation                                     (600)                 (704) 
 Exceptional operating expenses                   (302)                 (177) 
 Central costs                                    (676)                 (688) 
---------------------------------            ----------            ---------- 
 
 (Loss) / profit from continuing 
  operations                                       (68)                   187 
---------------------------------            ----------            ---------- 
 
 

Assets and liabilities

 
                                     Year ended               Year ended 
                                  31 December 2010         31 December 2009 
                                 Assets                   Assets 
                                GBP'000   Liabilities    GBP'000   Liabilities 
                                              GBP'000                  GBP'000 
 
 By segment: 
 
 Insurance Broking                8,169       (5,390)      9,213       (5,751) 
 
 Financial Services               1,668       (1,203)      1,600       (1,104) 
 
 Premium Finance                    414          (12)        286         (477) 
 
 Eliminations                   (5,243)         5,243    (1,674)         1,674 
----------------------------  ---------  ------------  ---------  ------------ 
 
 Segment assets and 
  liabilities                     5,008       (1,362)      9,425       (5,658) 
 
 Unallocated corporate           14,884       (6,626)     13,622       (4,899) 
----------------------------  ---------  ------------  ---------  ------------ 
 
 Consolidated assets and 
  liabilities                    19,892       (7,988)     23,047      (10,557) 
----------------------------  ---------  ------------  ---------  ------------ 
 
 

3. Exceptional operating expenses

 
                                      2010      2009 
                                   GBP'000   GBP'000 
 
 Redundancy costs                      123       100 
 Reorganisation costs                  154        35 
 Acquisition related                    25        42 
 
 Exceptional operating expenses        302       177 
                                  ========  ======== 
 
 

All redundancy and reorganisation costs have been charged against operating profit derived from continuing operations.

Exceptional non-operating expenses

 
                                               2010      2009 
                                            GBP'000   GBP'000 
 
 Disposal proceeds less legal costs           (271)         - 
 Goodwill associated with Personal              902         - 
  Lines business 
 Customer related intangibles associated        313         - 
  with Personal Lines business 
 
 Loss on disposal of Personal Lines             944         - 
  business 
                                           ========  ======== 
 

4. Earnings per share

The calculation of basic earnings per share for the year ended 31 December 2010 is based on the loss attributable to ordinary shareholders of GBP661,000 (2009: Profit GBP186,000) divided by the weighted average number of shares in issue of 15,823,685 (2009: 15,576,570), amounting to 4.18p (2009: 1.19p)

At 31 December 2010, there were 658,875 (2009: 1,046,000) share options in issue of which 7,546(2009: 195,622) were dilutive potential ordinary shares on average during the year. At the year end there were nil (2009: 239,130) shares to be issued in respect of deferred consideration for acquisitions made during or prior to the current year, and there were nil (2009: nil) dilutive potential ordinary shares on average during the year. At 31 December 2010, there were therefore a total of 7,546 (2009: 195,622) dilutive potential ordinary shares on average during the year. At 31 December 2010, the share options in issue are anti-dilutive in respect of the basic loss per share and have therefore not been included. The calculation of diluted earnings per share for the year ended 31 December 2010 is based on the loss attributable to ordinary shareholders of GBP661,000 (2009: Profit GBP186,000) divided by the weighted average number of diluted shares in issue of 15,823,685 (2009: 15,772,192), amounting to 4.18p (2009: 1.18p)

The adjusted earnings per share is based on the profit attributable to ordinary shareholders, after adding back amortisation, exceptional operating and non-operating expenses, share option charges and reflecting an ongoing tax charge of 28% (2009: 28%), as follows:

 
 
                                           2010              2009 
                                      GBP000    Pence   GBP000    Pence 
 
 (Loss) / profit for the year          (661)   (4.18)      186     1.19 
 
 Exceptional non-operating charges       944     5.97        -        - 
 
 Profit for the year before 
  loss on disposal of Personal 
  Lines business                         283     1.79      186     1.19 
 
 Amortisation                            600     3.79      704     4.52 
 
 Exceptional operating charges           302     1.91      177     1.14 
 
 Share option charge                      76     0.48       65     0.42 
 
 Adjustment to reflect an ongoing 
  tax charge of 28%                    (655)   (4.14)    (393)   (2.52) 
 Adjusted earnings per share             606     3.83      739     4.75 
-----------------------------------  -------  -------  -------  ------- 
 
 Diluted adjusted earnings per 
  share                                  606     3.83      739     4.69 
-----------------------------------  -------  -------  -------  ------- 
 
 

5. Dividends

Amounts recognised as distributions to equity shareholders in the year:

 
 
                                        2010      2009 
                                     GBP'000   GBP'000 
 
 Dividend paid per share in the 
  period 0.70 pence (2009: 0.66p)        111       102 
----------------------------------  --------  -------- 
 
 

A final dividend of 0.75p per share (2009: 0.70p per share) amounting to GBP119,000 (2009: GBP109,000) in respect of the year ended 31 December 2010 is proposed. If approved at the Annual General Meeting, it will be paid on 27 May 2011 to those shareholders on the register on 6 May 2011.

6. Acquisitions

On 30 September 2010, the Company acquired the whole of the issued share capital and voting rights of Rockbridge Healthcare Limited.

This acquisition may be summarised as follows:

 
 
                                       Rockbridge Healthcare 
                                                     Limited 
                                              GBP'000 
 Trade and other receivables                               7 
 Cash and cash equivalents                                44 
 Trade and other payables                               (21) 
 
 Fair value of net assets acquired                        30 
 Goodwill                                                177 
 Other intangible assets                                 122 
 Deferred tax on other intangible 
  assets                                                (34) 
 
 Consideration                                           295 
                                      ====================== 
 
 Comprising: 
 Cash                                                    260 
 Deferred consideration: Cash                             35 
 
                                                         295 
                                      ====================== 
 
 Purchase consideration settled 
  in cash                                                260 
 
 Cash and cash equivalents acquired                     (44) 
 
 Cash outflow on acquisitions                            216 
                                      ====================== 
 
 

The assets and liabilities included in net assets acquired are stated at book values which are equivalent to their fair values. The only fair value adjustments made are in respect of intangible assets acquired. The initial accounting for the acquisitions made during the year ended 31 December 2010 has only been provisionally determined at the balance sheet date as adjustments may be necessary to book values following assessment after a further period of ownership.

The goodwill paid in respect of current period acquisitions relates to expected synergies to be achieved. Synergies to be achieved are as a result of a stronger presence in the market and synergies in sourcing and selling.

7. Share capital

 
 Authorised share capital: 
                                        2010      2009 
                                     GBP'000   GBP'000 
 
 20,000,000 (2009: 20,000,000) 
  Ordinary shares of GBP0.04 
  each                                   800       800 
                                 ===========  ======== 
 
 Allotted, called up and fully paid: 
                                          2010                   2009 
                                          No   GBP'000           No   GBP'000 
 
 Ordinary shares of GBP0.04 
  each                            15,878,753       636   15,665,161       627 
                                 ===========  ========  ===========  ======== 
 
 Allotted, called up and fully paid: 
                                        2010      2009 
                                     GBP'000   GBP'000 
 
 At 1 January                            627       620 
 
 Issued in the year: 
 Acquisitions                              9         5 
 Share option exercises                    -         2 
 
 At 31 December                          636       627 
                                 ===========  ======== 
 
 

8. Reconciliation of profit before taxation to net cash inflow from operating activities

 
                                          2010      2009 
                                       GBP'000   GBP'000 
 
 (Loss) / profit before taxation       (1,080)        80 
 Depreciation and loss on disposal 
  of property plant & equipment            250       253 
 Amortisation                              600       704 
 Loss on disposal of Personal Lines 
  business                                 944         - 
 Share option charge                        76        65 
 Investment income                         (6)      (10) 
 Finance charges                            74       117 
 Movements in working capital: 
 Decrease in receivables                   928     3,770 
 Decrease in payables                  (1,244)   (1,981) 
 
 Net cash inflow from operating 
  activities                               542     2,998 
                                      ========  ======== 
 
 

9. Reconciliation of net cash flow to movement in net debt

 
                                          2010      2009 
                                       GBP'000   GBP'000 
 
 Net debt at 1 January                   (891)   (1,139) 
 
 Decrease in cash in the period        (1,026)   (1,458) 
 Cash outflow from decrease in debt 
  financing                                410     1,706 
 
 Net debt at 31 December               (1,507)     (891) 
                                      ========  ======== 
 
 

10. Annual Report

The annual report will be posted to shareholders on or around the 6 May 2011 and will also be available from the Group's website (www.cbg-group.co.uk) or from the Company Secretary at the Company's registered office: Southmoor House, Southmoor Road, Manchester M23 9XD.

22 March 2011

END

This information is provided by RNS

The company news service from the London Stock Exchange

END

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