We could not find any results for:
Make sure your spelling is correct or try broadening your search.
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 | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 22.00 | 21.00 | 23.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Security Brokers & Dealers | 31.61M | 418k | 0.0098 | 22.45 | 9.37M |
TIDMWCW
RNS Number : 7238C
Walker Crips Group plc
30 June 2016
30 June 2016
News Release
Walker Crips Group plc
Steady growth and significant investment for future development
Walker Crips Group plc ("Walker Crips", the "Company" or the "Group"), the financial services group, with activities covering stockbroking, investment and wealth management services, announces audited results for the year ended 31 March 2016.
HIGHLIGHTS
-- Group revenues increased by 13.5% to GBP26.1 million (2015: GBP23.0 million) -- Gross profit (net revenues) increased by 15.0% to GBP17.6 million (2015: GBP15.3 million)
-- Operating profit, before exceptional expenses, up 20.4% to GBP0.65 million (2015: GBP0.54 million)
-- Exceptional costs of GBP0.8 million incurred in upgrade of client information and communication systems
-- One-off gain of GBP0.9 million on sale of Euroclear shares -- Reported pre-tax profit more than doubled to GBP0.94 million (2015: GBP0.44 million)
-- Non-broking income as a percentage of total income increased to 61.8% (2015: 56.3%), reflecting further reduction in reliance on transaction-driven commission revenue
-- Discretionary and advisory assets under management increased by 15.0% to a high of GBP2.3 billion (2015: GBP2.0 billion)
-- Proposed final dividend increased by 8.5% to 1.27 pence per share (2015: 1.17 pence per share) bringing total dividends for the year to 1.85 pence per share (2015: 1.70 pence per share)
David Gelber, Chairman, Walker Crips, says:
"We continue to achieve substantial growth and to refine our strategy and business model to make further strides towards attaining our long-term strategic goals. Against a background of difficult markets, we have striven to set higher regulatory standards and client service levels as we deliver our strategy for growth.
"At a macro level the extent of the economic and political instability created by Brexit is difficult to predict. In addition, at a micro level, we face significant demands from continuing regulatory initiatives and their associated costs over the next 18 months.
"We will monitor diligently the impact of these factors and will react promptly as we consider appropriate. Nonetheless, despite these challenges, we consider that it is our emphasis on integrity, service and good customer outcomes which will drive our public profile and competitive positioning to deliver underlying stability and growth in the next phase of the Group's development."
For further information, please contact:
Walker Crips Group plc Tel: +44 (0)20 3100 8000 Geri Jacks Four Broadgate Tel: +44 (0)20 3697 4200 Roland Cross/Gareth David/Josh Voulters Cantor Fitzgerald Europe Tel: +44 (0) 20 7894 7667 Rishi Zaveri
Further information on Walker Crips Group is available on the Company's website: www.wcgplc.co.uk
Chairman and Chief Executive's Statement
Performance overview
It is pleasing to report that despite the particularly difficult markets in the second half of the year a rise in revenue of 13.5% to a record GBP26.1 million for the current full year has driven the strong increase in profit before tax and exceptional items to GBP0.8 million, an increase of 20% reflecting the continuing impact of our strategy for growth. After including exceptional costs, profits on disposal of available-for-sale investments and net investment income, profit before tax has more than doubled to GBP0.9 million (2015: GBP0.4 million).
Dividend / earnings per share
In recognition of this year's further progress the Board is recommending an 8.5% increase in the final dividend to 1.27 pence per share (2015: 1.17 pence per share) reflecting its continued confidence in the Group's long-term prospects.
Combined with the interim dividend of 0.58 pence per share (2015: 0.53 pence per share), this makes a higher total dividend for the year of 1.85 pence per share (2015: 1.70 pence per share), an 8.8% increase, made possible by the 20% increase in pre-exceptional operating profit before tax.
The final dividend will be paid on 12 August 2016 to shareholders on the register at the close of business on 29 July 2016.
Earnings per share for the year were 2.11 pence (2015: 0.69 pence) which includes the effect of the one-off gain on sale of our Euroclear shares.
Strategy
We have continued to advance the delivery of our strategy for growth and have consolidated the progress we have made over the previous three years whilst preserving our healthy cash balance as a buffer for unforeseen events which may lie ahead in these turbulent times.
The delivery of personal investment management advice remains at the core of our approach.
In particular, alongside our focus on growing the discretionary and fee-paying portion of the business, there have been opportunities which have been taken to capitalise on our larger competitors' reluctance to continue offering the more heavily regulated and costly advisory component of our proposition to clients.
Exceptional costs
During the second half of the year our Executive Directors and investment managers have, with the assistance of external advisers, been heavily engaged in a major upgrading of our systems and our record-keeping to meet our own rising regulatory standards and those seen across our sector.
This has led to a significant redefinition of the way in which we communicate with our substantial client base with a much greater use of technology. We are moving forward to complete this exercise next year. The outcome is intended to reinforce our current offering to our clients by first building and maintaining a deeper understanding of each client's circumstances and thus the suitability of the service being provided.
We are hugely appreciative of our clients' understanding throughout this time-consuming, but important process. We firmly believe it will underpin our future prosperity with a stronger foundation to ensure a Company-wide emphasis on achieving good client outcomes in a manner aligned with our culture.
The decline from operating profits last year to an operating loss this year is due to: the exceptional costs associated with these changes and improvements; and, to some extent, the consequence of the inevitable diversion away from new business generation.
Disposal of available-for-sale investment
In December 2015, the Group took the opportunity of participating in a corporate buy-back programme and disposed of its holding of 1,809 shares in Euroclear plc, a relatively illiquid investment which had been held since February 2000, for a cash consideration of GBP1,017,000, crystallising a gain on disposal of GBP942,000.
Operations
Encouragingly, following its acquisition in March 2015, Barker Poland Asset Management (BPAM) has made its first full contribution to our results above expectation which has helped our stated aim of materially increasing the proportion of our revenues earned as fees, rather than through transaction-driven commissions. This is a key performance indicator reflecting the changing shape of the business from traditional stockbroking to an integrated investment and wealth management model.
Despite an increase in administrative expenses, a material proportion of which relate to
the development and growth of acquired businesses, as well as a 30% increase in our Financial Services Compensation Scheme (FSCS) levy and a one-off property cost provision of GBP132,000 relating to the change of ownership and premature forthcoming termination of the lease of our London head office, costs were strictly monitored and headcount largely restricted to incoming revenue earners and their support teams.
The uncontrollable costs levied by the FSCS of GBP402,000 (2015: GBP310,000) are an indication of the costs of absorbing a share of losses incurred by failed competitors.
Investment Management
The Company's assets under management have continued growing to unprecedented levels in a climate in which portfolio valuations have been affected by market uncertainty and substantial falls in some sectors of the FTSE 100 and other major indices.
We recognise the growing importance of scale which gives clients and market participants some degree of reassurance of the security of their assets as well as confidence in the strength and stability of the organisation. With total Assets under Management and Administration (AUMA) at the year end standing at a high of GBP4.1 billion (31 March 2015: GBP3.8 billion), despite declines in equity markets, our target of GBP5 billion AUMA by 2018 is within reach, with GBP10 billion being a potential milestone over the next ten years.
Discretionary and Advisory assets under management (AUM) at the year end were GBP2.3 billion (31 March 2015: GBP2.0 billion), reflecting the inflows from the clients of new advisers and investment managers and the longer term revenue benefits of our asset gathering strategy alongside transactional brokerage. Commission income from broking remained stable, whilst Investment Management fees increased by 30.6% to GBP13.6 million (2015: GBP10.4 million).
Gross revenues from the Investment Management division increased by 14.8% during the period to GBP23.6 million (2015: GBP20.6 million), another marked improvement and clear demonstration that the scope for additional expansion continues to be a realistic prospect.
Further boosts to the ISA regime were provided by the last budget with the addition to the ISA product stable of another savings product called the Lifetime ISA (LISA) and the increase in the subscription allowance to GBP20,000 for April 2017. Investors and savers of all age groups now have much greater flexibility ensuring "cradle to grave" access to ISAs, and the ISA AUM grew by 4.2% to over GBP600 million. The forthcoming additional tax-efficient transferability allowances will also encourage inherited funds to remain invested under our management.
The Structured Investments team has continued to broaden its intermediary client base and increase assets under management over the financial year. Our competitive range of structured investment products continues to garner strong demand amongst financial advisers and their clients. With the addition of new product lines we anticipate another strong contribution from this key offering over the coming year.
Wealth Management
Our innovative Wealth Management division, run from York, continues to be driven by focused management and a competent team of advisers, who provide a committed, high quality service to its widening client base.
Complementing this division and also operating from York is our Pensions unit administering Self Invested Personal Pensions (SIPP) and Small Self Administered Schemes (SSAS), along with a small number of Funded Unapproved Retirement Benefit Schemes (FURBS). Importantly and despite difficult market conditions AUMA of the combined divisions (an increasingly significant measure) increased to GBP501 million (2015: GBP495 million).
Turnover across both divisions remained stable; however, strong headwinds including a large increase in regulatory fees, combined with provision for potential claims and increased non-recurring costs and investment in the back and mid-office support functions, led to a decrease in profitability for this sector of the business.
Looking ahead there are sound reasons for optimism with revenue boosted by several initiatives and a stronger level of work in progress in the opening weeks of the
new year.
Regulation
Preparations are well underway to meet the challenges posed by the MiFID II initiative. We continue to fully support and reinforce the Financial Conduct Authority (FCA) guidance on its drive to ensure advice given to clients by our account executives is suitable and properly recorded. Our culture of serving clients in their best interests is well established in our DNA as we continue to strive to deliver good customer outcomes.
Statement of financial position
As at 31 March 2016, the Group maintained a steady level of net assets of GBP20.6 million (2015: GBP20.9 million), including net cash of GBP7.2 million (2015: GBP6.5 million).
Going concern
The Group continues to maintain a robust financial position. Having conducted detailed cash flow and working capital forecasts and appropriate stress-testing on liquidity, profitability and regulatory capital, taking account of possible adverse changes in trading performance, the Board has sufficient grounds to believe the Group is well placed to manage its business risks adequately, and that it will be able to operate within the level of its current financing arrangements and regulatory capital limits. Accordingly, the Board continues to adopt the going concern basis for the preparation
Viability Statement
The Directors have assessed the outlook of the Company over longer periods than the twelve months required by the "Going Concern" statement in accordance with the 2014 UK Corporate Governance Code.
The Directors' assessment has been made with reference to the historic resilience of the Group, strong cash flows, its current strategy, the Board's risk appetite and the Group's principal risks and how these are managed.
The assessment relied on the Group's annual 21 month budget, a three year stress-tested forecast of profitability, cash flow and regulatory capital and its Internal Capital Adequacy Assessment Process (ICAAP) which incorporates an evaluation of the Group's principal risks and uncertainties, including those that would threaten its business model, future performance or solvency.
In addition, in light of the decision for Britain to leave the European Union following the recent referendum, the directors have also considered the impact of this event on its ability to continue as a Going Concern as well as other areas of risk where critical accounting judgements and estimation uncertainty have been considered.
Following this assessment, the Directors have concluded that the Viability Statement should cover a period of three years. Whilst the Directors have no reason to believe that the Group will not be viable over a longer period from its review of its five year forecasts, this period has been chosen because a three year time horizon has a much greater degree of certainty and thus provides a more appropriate longer-term outlook in our potentially volatile investment sector.
Taking account of the Group's current position and principal risks, the Directors have a reasonable expectation that the Group will be able to continue in operation and meet its liabilities as they fall due over a period of at least three years.
Directors, account executives and staff
After another year of increasing numbers of revenue generators and the absorption of their additional investment business, through transfers of clients and their assets, we would like to thank all our fellow Directors, investment managers and advisers, and members of our operations team for their continuing hard work and diligence in shouldering this burden.
Management have worked hard to continue increasing the level of communication with our personnel to impart up-to-date information and encourage feedback whilst re-emphasising the culture and behaviour essential to the core values of the Company. Integrity, courtesy, fairness, diligence, responsibility and loyalty make it an appealing firm for prospective clients and professionals to join.
Annual General Meeting
This year's Annual General Meeting will be held at the South Place Hotel, 3 South Place, London EC2M 2AF on 3 August 2016 at 11.00 a.m.
Outlook
We continue to achieve substantial growth and to refine our strategy and business model to make further strides towards attaining our long-term strategic goals.
Against a background of difficult markets, we have striven to set higher regulatory standards and client service levels as we deliver our strategy for growth.
Trading activity in the opening weeks of the new financial year has been quiet and your Board correspondingly looks to the immediate future with cautious optimism.
At a macro level the extent of the economic and political instability created by Brexit is difficult to predict. In addition, at a micro level, we face significant demands from continuing regulatory initiatives and their associated costs over the next 18 months.
We will monitor diligently the impact of these factors and will react promptly as we consider appropriate. Nonetheless, despite these challenges, we consider that it is our emphasis on integrity, service and good customer outcomes which will drive our public profile and competitive positioning to deliver underlying stability and growth in the next phase of the Group's development.
David Gelber Rodney FitzGerald FCA Chairman Chief Executive Officer
30 June 2016
Consolidated income statement
Year ended 31 March 2016
2016 2015 Notes GBP'000 GBP'000 --------------------------------------- ------ --------- --------- Continuing operations Revenue 6 26,070 22,994 Commission payable (8,433) (7,653) --------------------------------------- ------ --------- --------- Gross profit 17,637 15,341 Share of after tax profits of joint ventures 10 13 --------------------------------------- ------ --------- --------- Administrative expenses - other (16,996) (14,810) Administrative expenses - exceptional item 3 (778) (329) --------------------------------------- ------ --------- --------- Total administrative expenses (17,774) (15,139) --------------------------------------- ------ --------- --------- Operating (loss)profit (127) 215 --------------------------------------- ------ --------- --------- Analysed as: Profit before tax and exceptional item 651 544 Administrative expenses - exceptional item 3 (778) (329) --------------------------------------- ------ --------- --------- Operating (loss)profit (127) 215 Gain on disposal of investment 4 942 - Investment revenues 131 225 Finance costs (2) (1) --------------------------------------- ------ --------- --------- Profit before tax 944 439 Taxation (149) (182) --------------------------------------- ------ --------- --------- Profit for the year attributable to equity holders of the Company 795 257 --------------------------------------- ------ --------- --------- Earnings per share Basic 2 2.11 0.69 Diluted 2 2.11 0.68 --------------------------------------- ------ --------- ---------
Consolidated statement of comprehensive income
Year ended 31 March 2016
2016 2015 GBP'000 GBP'000 ---------------------------------------------- -------- -------- Loss on revaluation of available-for-sale investments taken to equity - (88) Reversal of revaluation of available-for-sale investments (959) Deferred tax on loss on available-for-sale investments - 28 Reversal of deferred tax charge on revaluation of available-for-sale investments 192 - ----------------------------------------------- -------- -------- Net loss recognised directly in equity (767) (60) Profit for the year 795 257 ----------------------------------------------- -------- -------- Total comprehensive income for the year attributable to equity holders of the Company 28 197 ----------------------------------------------- -------- --------
Consolidated statement of financial position
31 March 2016
Group Group 2016 2015 GBP'000 GBP'000 -------------------------------------- -------- -------- Non-current assets Goodwill 4,388 4,388 Other intangible assets 7,992 6,631 Property, plant and equipment 841 1,110 Interest in joint ventures 28 28 Available-for-sale investments 57 2,417 --------------------------------------- -------- -------- 13,306 14,574 Current assets Trade and other receivables 38,799 28,332 Trading investments 1,237 2,701 Cash and cash equivalents 7,257 6,635 --------------------------------------- -------- -------- 47,293 37,668 -------------------------------------- -------- -------- Total assets 60,599 52,242 --------------------------------------- -------- -------- Current liabilities Trade and other payables (36,424) (27,537) Current tax liabilities (141) (239) Deferred tax liabilities (517) (741) Bank overdrafts (77) (134) Shares to be issued (912) (298) --------------------------------------- -------- -------- (38,071) (28,949) -------------------------------------- -------- -------- Net current assets 9,222 8,719 --------------------------------------- -------- -------- Long term liability - deferred cash consideration (1,556) (1,930) Long term liability - shares to be issued (218) (453) Long term liability - dilapidation provision (132) - --------------------------------------- -------- -------- Net assets 20,622 20,910 --------------------------------------- -------- -------- Equity Share capital 2,595 2,545 Share premium account 2,279 1,988 Own shares (312) (312) Retained earnings 11,392 11,254 Revaluation reserve - 767 Other reserves 4,668 4,668 --------------------------------------- -------- -------- Equity attributable to equity holders of the Company 20,622 20,910 --------------------------------------- -------- --------
Consolidated statement of cash flows
Year ended 31 March 2016
2016 2015 GBP'000 GBP'000 --------------------------------------------- -------- -------- Operating activities Cash (used)/generated by operations (1,119) 3,806 Interest received 85 78 Interest paid (2) (1) Tax paid (120) (337) ---------------------------------------------- -------- -------- Net cash (used)/generated by operating activities (1,156) 3,546 ---------------------------------------------- -------- -------- Investing activities Purchase of property, plant and equipment (247) (565) Net sale/(purchase) of investments held for trading 1,464 (1,031) Net sale proceeds/cost of available-for-sale investments 2,044 - Consideration paid on acquisition of businesses (810) (765) Consideration paid on acquisition of subsidiary (13) (1,875) Dividends received 54 46 ---------------------------------------------- -------- -------- Net cash generated/(used) by investing activities 2,492 (4,190) ---------------------------------------------- -------- -------- Financing activities Dividends paid (657) (958) ---------------------------------------------- -------- -------- Net cash used by financing activities (657) (958) ---------------------------------------------- -------- -------- Net increase/(decrease) in cash and cash equivalents 679 (1,602) Net cash and cash equivalents at beginning of year 6,501 8,103 ---------------------------------------------- -------- -------- Net cash and cash equivalents at end of year 7,180 6,501 ---------------------------------------------- -------- -------- Cash and cash equivalents 7,257 6,635 Bank overdrafts (77) (134) ---------------------------------------------- -------- -------- 7,180 6,501 --------------------------------------------- -------- --------
Notes to the accounts
Year ended 31 March 2016
1. Going concern
The Group has healthy financial resources together with a long established, well proven and tested business model. As a consequence, the Directors believe that the Group is well placed to manage its business risks successfully despite the current difficult climate.
After conducting enquiries, the Directors believe that the Company and the Group have adequate resources to continue in existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
2. Earnings per share
The calculation of basic earnings per share for continuing operations is based on the post-tax profit for the financial year of GBP795,000 (2015: GBP257,000) and on 37,678,525 (2015: 37,017,924) Ordinary Shares of 62/3 pence, being the weighted average number of Ordinary Shares in issue during the year.
3. Administrative expenses - exceptional item
As a result of its materiality the Directors decided to disclose certain amounts separately in order to present results which are not distorted by significant non-recurring events.
2016 2015 GBP'000 GBP'000 -------------------------------------- -------- -------- Short Term Lending Fund winding down costs - 68 Costs incurred on acquisitions - 261 Costs incurred on suitability project 778 - -------------------------------------- -------- -------- 778 329 -------------------------------------- -------- --------
During the period to 31 March 2016, the Group incurred legal and professional adviser costs relating to enhancements made to the Group's regulatory control framework in relation to suitability of advice given to clients.
Towards the end of the prior year, a decision was made to wind down our Short Term Lending Fund. All investors received a full return of the sums invested. Administrative costs associated with the wind down were provided for in the prior year's results. Prior year acquisition costs are largely made up of legal and professional costs being incurred and payable on completion of the acquisition of BPAM on 6 March 2015.
4. Gains on disposal of investments
Net gains comprise:
2016 2015 GBP'000 GBP'000 -------------------------------------------- -------- -------- Gain on disposal of investment in Euroclear shares 942 - -------------------------------------------- -------- --------
During the period to 31 March 2016, the Group disposed of its holding of 1,809 shares in Euroclear plc realising a gain of GBP942,000.
During the period to 31 March 2015, there were no gains or losses on disposal of investments.
Due to their level of materiality and one-off nature, the Board has decided to disclose these items separately.
5. Segmental analysis
For management purposes the Group is currently organised into two operating divisions - Investment Management and Wealth Management. These divisions, both of which conduct business in the United Kingdom only, are the basis on which the Group reports its primary segment information.
Consolidated year ended Investment Wealth 31 March Management Management 2016 2016 GBP'000 GBP'000 GBP'000 -------------------------------- ----------- ----------- ------------ Revenue External sales 23,639 2,431 26,070 -------------------------------- ----------- ----------- ------------ Result Segment result 987 165 1,152 Unallocated corporate expenses (1,279) -------------------------------- ----------- ----------- ------------ Operating loss (127) Gain on disposal of investments 942 Investment revenues 131 Finance costs (2) -------------------------------- ----------- ----------- ------------ Profit before tax 944 Tax (149) -------------------------------- ----------- ----------- ------------ Profit after tax 795 -------------------------------- ----------- ----------- ------------ Consolidated year ended Investment Wealth 31 March Management Management 2016 2016 GBP'000 GBP'000 GBP'000 ---------------------------------- ----------- ----------- ------------ Other information Capital additions 231 16 247 Depreciation 497 19 516 Statement of financial position Assets Segment assets 52,131 1,963 54,094 Unallocated corporate assets 6,505 ---------------------------------- ----------- ----------- ------------ Consolidated total assets 60,599 ---------------------------------- ----------- ----------- ------------ Liabilities Segment liabilities 39,018 543 39,561 Unallocated corporate liabilities 416 ---------------------------------- ----------- ----------- ------------ Consolidated total liabilities 39,977 ---------------------------------- ----------- ----------- ------------ Consolidated year ended Investment Wealth 31 March Management Management 2015 2015 GBP'000 GBP'000 GBP'000 ------------------------------- ----------- ----------- ------------ Revenue External sales 20,590 2,404 22,994 ------------------------------- ----------- ----------- ------------ Result Segment result 931 338 1,269 Unallocated corporate expenses (1,054) ------------------------------- ----------- ----------- ------------ Operating profit 215 Investment revenues 225 Finance costs (1) ------------------------------- ----------- ----------- ------------ Profit before tax 439 Tax (182) ------------------------------- ----------- ----------- ------------ Profit after tax 257 ------------------------------- ----------- ----------- ------------ Consolidated year ended Investment Wealth 31 March Management Management 2015 2015 GBP'000 GBP'000 GBP'000 ---------------------------------- ----------- ----------- ------------ Other information Capital additions 552 13 565 Depreciation 380 16 396 Statement of financial position Assets Segment assets 44,322 2,074 46,396 Unallocated corporate assets 5,846 ---------------------------------- ----------- ----------- ------------ Consolidated total assets 52,242 ---------------------------------- ----------- ----------- ------------ Liabilities Segment liabilities 30,532 615 31,147 Unallocated corporate liabilities 185 ---------------------------------- ----------- ----------- ------------ Consolidated total liabilities 31,332 ---------------------------------- ----------- ----------- ------------ 6. Revenue
An analysis of the Group's revenue is as follows:
2016 2016 2015 2015 Broking Non-broking 2016 Broking Non-broking 2015 income income Total income income Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 ------------------------ -------- ------------ -------- -------- ------------ -------- Stockbroking commission 10,007 - 10,007 10,152 - 10,152 Fees and other revenue - 13,632 13,632 - 10,438 10,438 ------------------------ -------- ------------ -------- -------- ------------ -------- Investment Management 10,007 13,632 23,639 10,152 10,438 20,590 Wealth Management - 2,431 2,431 - 2,404 2,404 ------------------------ -------- ------------ -------- -------- ------------ -------- Revenue 10,007 16,063 26,070 10,152 12,842 22,994 Net investment revenue - 129 129 - 224 224 ------------------------ -------- ------------ -------- -------- ------------ -------- Total income 10,007 16,192 26,199 10,152 13,066 23,218 ------------------------ -------- ------------ -------- -------- ------------ -------- % of total income 38.2 61.8 100.0 43.7 56.3 100.0 ------------------------ -------- ------------ -------- -------- ------------ -------- 7. Contingent liability
The Group has received an assessment from HMRC to pay a significant sum of Income Tax and National Insurance plus interest. The assessment relates to moneys apparently paid to two of its former fund managers arising out of their employment with Walker Crips Asset Managers Limited (WCAM), a former wholly-owned subsidiary of the group which was sold on 12 April 2012.
The Directors believe that the amount assessed may relate to subsequent payments made to the two WCAM Managers by the purchasers of WCAM, a transaction in which the Group was not involved. Under the terms of the Sale and Purchase Agreement of 12 March 2012, the purchaser is considered by the Directors to be ultimately liable for any tax arising in respect of any such payments made to the Manager.
A successful appeal to postpone any tax payable has been made whilst a more detailed investigation is being undertaken. In the opinion of the Directors, there is insufficient information at the date of these financial statements to allow the Board to conclude that a liability exists at 31 March 2016. They have therefore made no provision in these financial statements in respect of this matter.
8. Basis of preparation of financial statements
The financial information set out in these financial statements does not constitute the Group's statutory accounts for the years ended 31 March 2016 and 2015.
The statutory accounts for 31 March 2016 to which these non-statutory accounts relate have not been delivered to the registrar of companies.
The auditor's report has been signed and was unqualified.
This preliminary announcement is based on the Group financial statements which are prepared in accordance with IFRS.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR FKLLLQQFBBBQ
(END) Dow Jones Newswires
June 30, 2016 02:00 ET (06:00 GMT)
1 Year Walker Crips Chart |
1 Month Walker Crips Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions