28th Aug 2009 12:22
The Corporate Services Group Limited
28 August 2009
The Corporate Services Group Limited
Interim Financial Report
28 August 2009
The Corporate Services Group Limited ("CSG") has today published its interim financial report for the six months ended 30 June 2009.
About The Corporate Services Group Limited
CSG is a wholly owned subsidiary of Impellam Group plc ("Impellam"), a human capital resource solutions group whose shares are admitted to trading on the AIM market of the London Stock Exchange plc. Impellam was formed in May 2008 when Carlisle Group Limited merged with The Corporate Services Group plc ("CSG plc"). Upon completion of the merger CSG plc became a subsidiary of Impellam and subsequently re-registered as a private company.
For further information please contact:
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Impellam Group plc |
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Cheryl Jones - Chairman |
Tel: 01582 692658 |
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Andrew Burchall - Group Finance Director |
Tel: 01582 692658 |
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Cenkos Securities plc |
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Nicholas Wells |
Tel: 020 7397 8900 |
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Beth McKiernan |
Tel: 020 7397 8900 |
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Threadneedle Communications |
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John Coles |
Tel: 020 7653 9848 |
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Josh Royston |
Tel: 020 7653 9844 |
28 August 2009
INTERIM FINANCIAL REPORT (UNAUDITED) FOR THE SIX MONTHS ENDED 30 JUNE 2009
Financial results and business review for the six months to 30 June 2009
The results for the six months ended 30 June 2009 show a retained loss of £3.7 million. This compares to a profit of £8.5 million for the six months ended 30 June 2008 and £13.4 million profit for the 12 months ended 31 December 2008. This movement is due wholly to currency movements on investments denominated in US Dollars which have been adverse this year reflecting the relative weakness of Sterling against the US Dollar. The company remains an investment holding company and as such its activities have remained unchanged.
Board changes
On 14 May 2009 Desmond Doyle stepped down as a Director of the Company and Nigel Millinson was appointed on the same date.
Going concern
The company is dependent, in the absence of other funding, on the continued support of the ultimate parent company, Impellam Group plc. The ultimate parent company has confirmed that it will continue to support the company for a period of at least twelve months. On this basis, the Directors consider it appropriate to prepare the accounts on the going concern basis.
Principal risks and uncertainties
The principal risks and uncertainties of Impellam Group plc ("the Group"), which include those of the Company, are discussed in the Group Financial Director's Report in the Group's annual report which does not form part of this report. The Group's business and financial risks are managed at a group level, rather than at an individual company level. For this reason, the Company's Directors believe that a discussion of the Group's risks would not be appropriate for an understanding of the development, performance or position of the Company as there are many risks at the group level which are not applicable at the Company level. These risks and uncertainties for the remaining six months remain as they were at December 2008 and are fully detailed in the Group annual report and accounts which are available for download on the Group's web-site.
Audit
This interim financial report has not been audited or reviewed by Auditors pursuant to the Auditing Practice Board guidance on Review of Interim financial information.
Disclaimer on forward looking statements
Certain statements in this interim report are forward-looking. Although the company believes that the expectations reflected in these forward-looking statements are reasonable, it gives no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements.
The company undertakes no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.
Statement of Directors' responsibilities
The Directors confirm that this condensed interim financial report has been prepared in accordance with applicable accounting standards and the Companies Act 1985. They also confirm that the interim management report contained herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:
An indication of important events that have occurred during the first six months and the impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year, and;
Material related party transactions in the first six months and any material changes in the related party transactions described in the last annual report.
The Directors of The Corporate Services Group Ltd are as listed in the 2008 annual report and accounts, with the exception of the resignation of Desmond Doyle on 14 May 2009 and the appointment of Nigel Millinson on the same date.
By order of the Board,
Andrew Burchall
Director
Consolidated income statement
For the six months ended 30 June 2009
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Six months ended 30 June 2009 |
Six months ended 30 June 2008 |
Twelve months ended 31 December 2008 |
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Notes |
£ 000 |
£ 000 |
£ 000 |
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Turnover |
- |
- |
- |
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Administrative expenses |
(4,912) |
6,395 |
9,941 |
|
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__________ |
__________ |
__________ |
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Operating (loss)/profit |
(4,912) |
6,395 |
9,941 |
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Excluding exceptional items |
(4,912) |
8,159 |
11,705 |
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Exceptional items |
- |
(1,764) |
(1,764) |
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__________ |
__________ |
__________ |
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Operating (loss)/profit |
(4,912) |
6,395 |
9,941 |
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Interest receivable |
989 |
1,688 |
3,270 |
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Interest payable and similar charges |
(1,097) |
(2,239) |
(2,523) |
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__________ |
__________ |
__________ |
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(Loss) / profit on ordinary activities before taxation |
(5,020) |
5,844 |
10,688 |
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Tax on (loss)/profit on ordinary activities |
3 |
1,295 |
2,666 |
2,718 |
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__________ |
__________ |
__________ |
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(Loss) / profit for the period |
(3,725) |
8,510 |
13,406 |
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__________ |
__________ |
__________ |
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Turnover and operating (loss) / profit derive wholly from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
There is no material difference between the result reported above and the result on an unmodified historical cost basis.
Consolidated condensed balance sheet
At 30 June 2009
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30 June 2009 |
30 June 2008 |
31 December 2008 |
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£ 000 |
£ 000 |
£ 000 |
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Fixed assets |
||||
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Investments |
73,834 |
73,846 |
73,834 |
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Current assets |
||||
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Debtors |
54,159 |
55,491 |
53,638 |
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Cash at bank and in hand |
112 |
144 |
4,198 |
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_________ |
_________ |
_________ |
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54,271 |
55,635 |
57,836 |
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_________ |
_________ |
_________ |
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Creditors: Amounts falling due within one year |
(38,852) |
(41,457) |
(38,722) |
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_________ |
_________ |
_________ |
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Net current assets |
15,419 |
14,178 |
19,114 |
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_________ |
_________ |
_________ |
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Total assets less current liabilities |
89,253 |
88,024 |
92,948 |
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Creditors: Amounts falling due after more than one year |
(19,886) |
(19,824) |
(19,855) |
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_________ |
_________ |
_________ |
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Net assets |
69,367 |
68,200 |
73,093 |
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_________ |
_________ |
_________ |
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Capital and reserves |
||||
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Called up share capital |
10,772 |
10,772 |
10,772 |
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Share premium reserve |
280,816 |
280,816 |
280,816 |
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Own shares |
- |
- |
- |
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Other reserves |
46,613 |
46,613 |
46,613 |
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Profit and loss reserve |
(268,834) |
(270,001) |
(265,108) |
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_________ |
_________ |
_________ |
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Shareholders' funds |
69,367 |
68,200 |
73,093 |
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_________ |
_________ |
_________ |
Notes to the interim financial statements
1 Basis of preparation
I. Statement of Compliance
The financial statements have been prepared on a going concern basis under the historical cost convention and in accordance with applicable accounting standards and the Companies Act 1985.
II. Accounting policies
The accounting policies used in this interim report are consistent with those applied at 31 December 2008 by the Company.
2 Exceptional items
|
Six months ended 30 June 2009 |
Six months ended 30 June 2008 |
Twelve months ended 31 December 2008 |
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£ 000 |
£ 000 |
£ 000 |
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Exceptional administrative expenses |
- |
1,764 |
1,764 |
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____ |
____ |
____ |
In 2008 various provisions were established as a result of the purchase of the company by Impellam Group plc. These provisions relate mainly to onerous commitments on empty office space and the costs of related redundancies. Also included within exceptional costs is an amount of £757,000 relating to movements on the impairment of various loans to subsidiaries.
3 Taxation
Income tax expense is recognised based on management's best estimate of the effective annual income tax rate expected for the full financial year.
4 Post balance sheet events
On 23 July 2009 the company completed a capital reorganisation under the terms of Section 641 of the Companies Act 2006 by reducing the share premium account from £280,815,747 to £nil. In accordance with the Companies (Reduction of Share Capital) Order 2008, which deals with reserves arising from such a reduction, this reserve will be treated as a realised profit.
Related Shares:
IPEL.L