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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Walker Crips Group Plc | LSE:WCW | London | Ordinary Share | GB00B1YMRV88 | ORD 6 2/3P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.50 | 2.27% | 22.50 | 22.00 | 23.00 | 22.50 | 22.00 | 22.00 | 22,276 | 14:26:46 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Security Brokers & Dealers | 31.61M | 418k | 0.0098 | 22.96 | 9.37M |
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RNS Number : 3424I
Walker Crips Group plc
18 November 2008
Walker Crips Group PLC (WCW)
18 November, 2008
7:00A - Interim Results
Press Release Embargoed until: 07.00, 18 November 2008.
Walker Crips Group PLC
Results for the six months ended 30 September 2008
Walker Crips Group PLC ("Walker Crips" or the "Company"), the financial services firm with activities covering stockbroking, fund
management, corporate finance and personal wealth management, today announces results for the six months ended 30 September 2008.
Highlights
* Revenue down 5.7% to £8.56m (2007: £9.08m)
* Recurring non-broking income as a proportion of total income increased to 50.4% (2007:48.1%)
* Pre-tax profit down 42% to £0.81m (2007: £1.40m)
* Interim dividend maintained at 0.94p per share (2007: 0.94p)
* Investment funds under management decreased by 0.5% over the six month period to 30 September 2008 to £403m (31 March 2008: £405m)
compared with a decrease in the FTSE100 of 14% over the same period
* Equity shareholders funds increased by 8% over the six month period to 30 September 2008 to £14.5m (31 March 2008: £13.4m)
* Net cash resources remain healthy at £4.0m at 30 September 2008 (31 March 2008: £5.1m)
Commenting on the results, David Gelber, Chairman of Walker Crips said: 'Although we can see little in the way of short term relief from
the stresses in financial markets, I remain cautiously optimistic about the outlook in the medium to longer term. The ongoing
unpredictability and volatility in investor sentiment and market confidence is presenting the Company with a very challenging operating
environment which is likely to impact materially on the Company's financial performance for the remainder of the current financial year.
However, your Company's breadth of products and conservatively financed balance sheet provide the platform enabling us to benefit when
conditions improve.'
For further information, please contact:
Walker Crips Group Plc Tel: +44 (0)20 3100 8000
Rodney FitzGerald, Chief Executive.
Stephen Bailey, Investment Director.
Altium Tel: +44 (0) 20 7484 4040
Ben Thorne
Tim Richardson
Further information on Walker Crips Group plc:
Further information on Walker Crips Group is available on the Company's website: www.wcgplc.co.uk
Chairman's statement
The turbulence seen in the stock and credit markets during the period under review was unprecedented and, inevitably, impacted upon your
Company's performance.
Profit before tax decreased 42% to £0.81m (2007:£1.40m). However, your board considers this to be a creditable performance, consistent
with the results reported in the second half of last year in the face of the worst financial market conditions seen in a generation. Revenue
fell by 5.7% to £8.56m (2007: £9.08m).
The Group's regulatory capital position remains comfortably in surplus, benefiting further during the period from the increase in
shareholders' equity to £14.5m (31 March 2008: £13.4m).
Operations
WCAM, our investment management division, has performed satisfactorily over the six month period to 30 September 2008, maintaining funds
under management (FUM) at £403m (31 March 2008: £405m) during a period when the FTSE100 fell by 14% and only slightly down on the £426m FUM
as at 30 June 2008. Our investment managers have performed consistently and in line with their long-term trading record, which remains one
of the most impressive in the industry. The macro economic process behind their investment philosophy has proved well suited to the
difficult economic conditions that currently prevail.
The stockbroking division suffered a 10% decline in net commission revenue, compared to the same period last year, reflecting the
difficult market conditions. A new business unit, Walker Crips Structured Investments, has recently launched its first tailored investment
aimed at the Company's advisory and discretionary customers, as well as external intermediaries, in keeping with our aim of providing a
bespoke and suitable investment strategy to meet the increasingly sophisticated needs of the modern investor.
Our corporate finance division suffered a significant fall in revenue over the period under review and accounted for just 2.3% of group
revenues. The appetite for small-cap corporate transactions, particularly on the AIM Market where Keith Bayley Rogers is focussed, has
reduced significantly, with investors becoming increasingly risk averse.
Whilst performance at both our wealth management arm and pension products division, was adversely affected by the economic climate
during the period, we were pleased that the Ebor SIPP completed another successful period with total funds held increasing to £47m from £44m
at 31 March 2008. Full integration of London's wealth management operation into the York division is now well advanced and the Company
should begin to realise the beneficial synergies of this during 2009.
I am also pleased to report continued progress in our strategy of increasing the proportion of our recurring fee-based revenues. Non
broking income rose to 50.4% of total revenue compared to 48.1% in the previous half year.
A segmental analysis of revenue and operating profit is contained within the note 2 to the accounts. Information on principal risks can
be found in note 1.
Expenses
Tighter cost control has partially mitigated the negative impact of the investment climate on profitability. Staff numbers in the middle
and back office have been reduced by 14% in the current calendar year and further expense reduction programmes are being pursued, always
ensuring that resources supporting the revenue generating units are not excessively depleted.
The year on year increase in administrative expenses is due to significant investment undertaken to further develop our fund management
activities, which have performed to expectation and enhanced profitability.
Share Issue
In July 2008, 1.4m new ordinary shares of 6 2/3p each were issued as deferred consideration for the acquisition of the London York
financial services group (G & E Investment Services). This represented the maximum amount due after a highly profitable earn-out period. As
well as achieving demanding profit targets, this successful acquisition continues to deliver longer-term benefits in providing a strong
platform for further growth in the wealth management market as well as bringing important diversity to our revenue stream.
Earnings and Dividend
Whilst basic earnings per share fell 42.9% to 1.6p (2007:2.8p), I am pleased to announce that the interim dividend is to be maintained
at 0.94p per share (2007: 0.94p per share). This dividend reflects our desire to maintain shareholder income whilst retaining sufficient
resources within the business to fund future growth. The dividend will be paid on 12 December 2008 to those shareholders on the register at
the close of business on 28 November 2008.
Directors, Account Executives and Staff
On behalf of the board, I would like to thank my fellow directors, all account executives and members of staff for their continued hard
work and loyalty in such a difficult period.
Outlook
Although we can see little in the way of short term relief from the stresses in financial markets, I remain cautiously optimistic about
the outlook in the medium to longer term. The ongoing unpredictability and volatility in investor sentiment and market confidence is
presenting the Company with a very challenging operating environment which is likely to impact materially on the Company's financial
performance for the remainder of the current financial year. However, your Company's breadth of products and conservatively financed balance
sheet provide the platform enabling us to benefit when conditions improve.
D. M. Gelber
Chairman
18 November 2008
Walker Crips Group plc
Consolidated interim income statement
For the six months ended 30 September Unaudited Unaudited Audited
2008 Six months to Six months to Year to
30 September 2008 30 September 2007 31 March 2008
Notes
£'000 £'000 £'000
Revenue 2 8,556 9,076 18,312
Commission payable (1,544) (1,893) (3,749)
Gross profit 7,012 7,183 14,563
Share of after tax profits of 31 30 69
joint ventures
Administrative expenses - (6,377) (5,987) (12,530)
other
Administrative expenses - - - (106)
exceptional item
Total administrative expenses (6,377) (5,987) (12,636)
Operating profit 666 1,226 1,996
Investment revenues 144 179 324
Finance costs (3) (3) (3)
Profit before tax 807 1,402 2,317
Analysed as:
Profit before tax and 807 1,402 2,423
exceptional item
Administrative expenses - - - (106)
exceptional item
Profit before tax 807 1,402 2,317
Taxation (229) (413) (745)
Profit for the period
attributable to equity holders 578 989 1,572
of the company
Earnings per share 3
Basic 1.6p 2.8p 4.5p
Diluted 1.6p 2.7p 4.2p
Walker Crips Group plc
Consolidated interim balance sheet
As at 30 September 2008
Notes Unaudited Unaudited Audited
30 September 2008 30 September 2007 31 March 2008
£'000 £'000 £'000
Non current Assets
Goodwill 5,121 5,152 5,121
Other intangible assets 748 863 806
Property, plant and equipment 1,379 1,465 1,451
Investment in joint ventures 89 54 93
Available for sale investments 1,176 980 1,170
Deferred tax asset - 177 -
8,513 8,691 8,641
Current Assets
Trade and other receivables 49,107 57,985 40,864
Trading Investments 235 321 216
Cash and cash equivalents 4,058 3,164 5,353
53,400 61,470 46,433
Total assets 61,913 70,161 55,074
Current liabilities
Trade and other payables (46,603) (54,518) (39,489)
Current tax liabilities (506) (654) (524)
Bank overdrafts (56) (86) (301)
Provisions - (155) -
Deferred tax liability (113) - (84)
Shares to be issued - (1,588) (1,105)
Cash consideration due under
acquisition agreements (150) - -
(47,428) (57,001) (41,503)
Net current assets 5,972 4,469 4,930
Non current liabilities
Cash consideration due under
acquisition agreements - - (150)
- - (150)
Net assets 14,485 13,160 13,421
Equity
Share capital 5 2,459 2,358 2,360
Share premium account 5 1,584 1,555 1,568
Own shares 5 (173) (173) (173)
Revaluation reserve 5 793 633 789
Other reserves 5 4,703 3,940 3,776
Retained earnings 5 5,119 4,847 5,101
Equity attributable to equity
holders of the company 14,485 13,160 13,421
Walker Crips Group plc
Consolidated interim cash flow statement
For the six months ended 30 Unaudited Unaudited Audited
September 2008 Six months to Six months to Year to
30 September 2008 30 September 2007 31 March 2008
£'000 £'000 £'000
Operating activities
Cash (used in) / generated (280) (1,880) 1,101
from operations
Interest received 107 179 295
Interest paid (3) (3) (3)
Tax paid (235) (232) (657)
Net cash (used in) / generated (411) (1,936) 736
from operating activities
Investing activities
Deferred consideration payment
under acquisition agreements - - (302)
Purchase of property, plant (152) (513) (700)
and equipment
Purchase of investments held (19) (183) (78)
for trading
Dividends received 72 79 79
Net cash used in investing (99) (617) (1,001)
activities
Financing activities
Proceeds on issue of shares 20 10 25
Dividends paid (560) (529) (858)
Net cash used in financing (540) (519) (833)
activities
Net decrease in cash and cash (1,050) (3,072) (1,098)
equivalents
Net Cash and cash equivalents
at the start of the period 5,052 6,150 6,150
Net Cash and cash equivalents 4,002 3,078 5,052
at the end of the period
Cash and cash equivalents 4,058 3,164 5,353
Bank overdrafts (56) (86) (301)
4,002 3,078 5,052
Walker Crips Group plc
Consolidated interim statement of recognised income and expense
For the six months ended 30 September Unaud Unaud Audit
2008 ited ited ed
Six Six Year
month month to
s to s to 31
30 30 March
Septe Septe 2008
mber mber
2008 2007
£'000 £'000 £'000
Gain on revaluation of available-for-sale
investments taken to equity 6 92 282
Deferred tax on gains on
available-for-sale investments (2) (28) (62)
Deferred tax on share options (89) - (148)
Net income recognised directly in equity (85) 64 72
Transfers:
Profit for the period 578 989 1,572
Total recognised income and expense for
the period attributable to equity holders 493 1,053 1,644
of the Company
Walker Crips Group plc
Notes to the accounts
For the six months ended 30 September 2008
1. Basis of preparation and accounting policies
The Group's consolidated financial statements are prepared in accordance with International Financial Reporting Standards as adopted by
the EU (IFRS). These interim financial statements are presented in accordance with IAS 34 Interim Financial Reporting.
The interim financial statements have been prepared on the basis of the accounting policies and methods of computation set out in the
Group's consolidated financial statements for the year ended 31 March 2008. The interim financial statements should be read in conjunction
with the Group's audited financial statements for the year ended 31 March 2008.The interim financial information is unaudited and does not
constitute statutory financial statements within the meaning of section 240 of the Companies Act 1985.
The Group's financial statements for the year ended 31 March 2008 have been reported on by the auditors and delivered to the Registrar
of Companies. The report of the auditors was unqualified and did not draw attention to any matters by way of emphasis. They also did not
contain a statement under section 237(2) or (3) of the Companies Act 1985.
Interests in joint ventures
The Group's share of the assets, liabilities, income and expenses of jointly controlled entities are accounted for in the consolidated
financial statements under the equity method.
Income from the sale or use of the Group's share of the output of jointly controlled assets, and its share of the joint venture
expenses, are recognised when it is probable that the economic benefits associated with the transactions will flow to / from the Group and
their amount can be measured accurately.
Goodwill
Goodwill arising on consolidation represents the excess of the cost of acquisition over the Group's interest in the fair value of the
identifiable assets and liabilities of a subsidiary or jointly controlled entity at the date of acquisition. Goodwill is initially
recognised as an asset at cost and reviewed for impairment at least annually. Any impairment is recognised immediately in profit or loss and
is not subsequently reversed in future periods.
Intangible assets
At each balance sheet date, the Group reviews the carrying amounts of its intangible assets to determine whether there is any indication
that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order
to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other
assets, the Group estimates the recoverable amount of the cash-generating unit to which the assets belong.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in
the financial statements and the corresponding tax bases used in the computation of taxable profits, and is accounted for using the balance
sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are
recognised to the extent that is probable that taxable profits will be available against which deductible temporary differences can be
utilised.
Share based compensation
The Group operates a number of share option schemes for employees and account executives. The charge to the income statement is
determined by the fair value of the options granted at the date of grant and recognised over the vesting period.
Principal risks and uncertainties
Under the Financial Services Authority's Disclosure and Transparency Rules, the Directors are required to identify those material risks
to which the company is exposed and take appropriate steps to mitigate those risks. The principal risks and uncertainties faced by the Group
remain unchanged from the year end and are discussed in detail in the Annual Report for the year ended 31 March 2008.
Related party transactions
No transactions took place in the period that would materially or significantly affect the financial position or performance of the
group.
2. Segmental analysis
Revenue Investment Corporate Financial Fund Total
Management / Finance Services Management
Stockbroking
6m to 30 September 2008 5,925 197 802 1,632 8,556
6m to 30 September 2007 6,573 463 955 1,085 9,076
Year to 31 March 2008 12,827 820 2,013 ,652 18,312
Unallocated Operating
Costs Profit
Result
6m to 30 September 2008 55 (43) 29 956 (331) 666
6m to 30 September 2007 599 104 103 825 (405) 1,226
Year to 31 March 2008 772 122 490 1,734 (1,122) 1,996
As the group's joint ventures are primarily engaged in financial services activities, it has been decided that the results of these
joint ventures will now be reported under financial services. Consequently the Result for financial services in the year to 31 March 2008
has been restated to include the £69,000 share of after tax profits of the joint ventures.
3. Earnings per share
The calculation of basic earnings per share for continuing operations is based on the post-tax profit for the period of £578,000 (2007 -
£989,000) and on 35,538,661 (2007 - 34,908,914) ordinary shares of 6 2/3p, being the weighted average number of ordinary shares in issue
during the period.
The effect of options would be to reduce the reported earnings per share. The calculation of diluted earnings per share is based on
36,017,931 (2007 - 36,175,753) ordinary shares, being the weighted average number of ordinary shares in issue during the period adjusted for
dilutive potential ordinary shares. In July 1,414,853 new ordinary shares were issued as final deferred consideration for the acquisition of
G & E Investment Services.
4. Dividends
The interim dividend of 0.94p per share (2007 : 0.94p) is payable on the 12 December to shareholders on the register at the close of
business on the 28 November. The interim dividend has not been included as a liability in this interim report.
Walker Crips Group plc
Notes to the accounts
(continued)
For the six months ended 30
September 2008
5. Reserves and retained Called up share Share premium Own shares held Capital Redemption Other Revaluation Retained
earnings Total Equity
earnings capital
£'000 £'000 £'000 £'000 £'000 £'000
£'000 £'000
Equity as at 1 April 2007 2,356 1,547 (173) 111 3,796 569
4,387 12,593
Revaluation of investment at 92
92
fair value
Deferred tax credit (28)
(28)
Profit for the 6 months ended
989 989
30 September 2007
Total recognised income and 64
989 1,053
expense for the period
March 2007 final dividend
(529) (529)
Share-based payments 33
33
Issue of shares on exercise of 2 8
10
options
Equity as at 30 September 2007 2,358 1,555 (173) 111 3,829 633
4,847 13,160
Revaluation of investment at 190
190
fair value
Deferred tax charge (34)
(34)
Movement on deferred tax on (148)
(148)
share options
Profit for the 6 months ended
583 583
31 March 2008
Total recognised income and (148) 156 583
591
expense for the period
September 2007 interim
(329) (329)
dividend
Share-based payments (16)
(16)
Issue of shares on exercise of 2 13
15
options
Equity as at 31 March 2008 2,360 1,568 (173) 111 3,665 789
5,101 13,421
Revaluation of investment at 6
6
fair value
Deferred tax credit (2)
(2)
Movement on deferred tax on (89)
(89)
share options
Profit for the 6 months ended
578 578
30 September 2008
Total recognised income and (89) 4
578 493
expense for the period
March 2008 final dividend
(560) (560)
Share-based payments 6
6
Issue of shares as Deferred 95 1,010
1,105
Consideration
Issue of shares on exercise of 4 16
20
options
Equity as at 30 September 2008 2,459 1,584 (173) 111 4,592 793
5,119 14,485
Directors' Responsibility Statement
The Directors confirm that to the best of their knowledge:
(a) The condensed set of financial statements contained within the half yearly financial report has been prepared in accordance with IAS
34 ' Interim Financial Reporting' as adopted by the EU;
(b) The half yearly report from the Chairman (constituting the interim management report) includes a fair review of the information
required by DTR 4.2.7R; and
(c) The half yearly report from the Chairman includes a fair review of the information required by DTR 4.2.8R as far as applicable.
On Behalf of the Board
Rodney FitzGerald
Chief Executive Officer
18 November 2008
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FFSFUWSASELF
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