7th Jun 2007 07:01
Charles Stanley Group PLC07 June 2007 7 June 2007 CHARLES STANLEY GROUP PLC RESULTS FOR THE YEAR ENDED 31 MARCH 2007 Charles Stanley is one of the UK's leading independent full servicestockbroking, corporate finance and wealth management groups. Today itannounces its preliminary results for the year ended 31 March 2007. Highlights: • Revenue up by 6% to a new record of £98.2 million (2006: £92.6 million) • Underlying profit before tax up 20% to £15.6 million (2006: £13.0 million) • Underlying earnings per share up 27% to 25.98p (2006: 20.45p) • Reported profit before tax up by 26% to £17.6 million (2006: £14.0 million) • Reported earnings per share up 29% to 29.25p (2006: 22.70p) • Funds under management and administration up by £0.9 billion (9%) to £10.6 billion (2006: £9.7 billion) • Discretionary funds under management up by £0.4 billion (18%) to £2.6 billion (2006: £2.2 billion) • Total dividend up by 20% to 8.10p (2006: 6.75p) • New branches opened in Exeter and Guildford after the year end Commenting on the outlook Sir David Howard, Chairman said: "The past year has shown strong performance. We are very pleased to welcome theteams that have joined us in recent months. Trading in the new financial yearhas started on a firm note, and if conditions remain favourable I anticipatesuccess in the year ahead." For further information please contact: Charles Stanley Group PLC Bridgewell Securities Ltd Hudson SandlerSir David Howard, Chairman Ben Money-Coutts Magnus WheatleyPeter A Hurst, Finance Director Managing Director Account ManagerPhone: 020 7739 8200 Phone 020 7003 3124 Phone: 020 7796 4133Fax: 020 7953 2948 CHAIRMAN'S STATEMENT INTRODUCTION Charles Stanley Group is delighted to announce another excellent set of results.For the twelve months ended 31 March 2007 our income rose by 6% to £98.2 million(2005/06: £92.6 million). The underlying profit before tax (which excludes "one-off" sales of available for sale investments and therefore gives a fairerreflection of ongoing operating performance) rose by 20% to £15.6 million (2005/06: £13.0 million). The full pre-tax profit was £17.6 million, an increase of26% (2005/06: £14.0 million). The investment funds that we manage or administer for clients rose during theyear by 9% from £9.7 billion to £10.6 billion. Within this figure, funds underdiscretionary management rose by 18% from £2.2 billion to £2.6 billion. At the end of the year we completed the acquisition of a substantial branchoffice in Exeter, and further major teams have joined us since the year-end inLondon and Guildford. No income or funds are included for these teams in ourresults for 2006/07. In view of these results we propose increasing the final dividend to 6.25p(2006: 5.35p), making a total dividend for the year of 8.10p, an increase of 20%on last year's total dividend of 6.75p per share. The dividend will be paid on31 July 2007 to shareholders who are registered on 6 July 2007. REVIEW OF THE YEAR Building on its origins as a City of London stockbroking firm, Charles StanleyGroup provides a comprehensive range of investment, wealth management andfinancial planning services to retail, institutional and corporate clients.These services were further expanded and developed during the year in line withour proven strategy. Overall, we succeeded in taking advantage of a positive market environment,whilst continuing to invest in our capabilities across the business to supportour longer term development. As a result our earnings continue to benefit froma higher proportion of more resilient fee income. Private Client Division Private client Investment management and administration fees rose 19% to £33.3million (2006: £27.9 million) while commission income was up 3% at £48.8 million(2006: £47.2 million). This corresponds to one of our objectives, to adjust the balance of our income,over time, increasingly away from commission income and towards more resilientfee income. In the latest year fee income from investment management andadministration represented 40% of private client income, compared with 37% in2005-06 and 28% in 2004-05. A detailed analysis of the funds which we manage or administer for clients isset out at the end of this statement. In summary, the total figure for thesefunds rose by 9% from £9.7 billion at 31 March 2006 to £10.6 billion. Thiscompares with a rise in the FTSE 100 Share Index of 6% in the same period.Within this total, discretionary funds rose by 18% from £2.2 billion to £2.6billion, and advisory investment management funds rose by 11% from £2.7 billionto £3.0 billion. These increases were reflected in a rise of 25% in our fees for investmentmanagement, from £13.0 million to £16.3 million. This comes after an increase of23% in the previous year, to 31 March 2006. Clients' investment assets for which we charge administration rather thaninvestment management fees rose by 4% from £4.8 billion to £5.0 billion, and thefees which we earned increased by 17% from £9.5 million to £11.1 million. As I have indicated in recent annual statements, one of our key performanceindicators has been the ratio of underlying profit before tax as a percentage ofrevenue. Our current target, has been 15%. We have now achieved this, the ratiofor the latest year being 15.9%, compared with 14.1% in 2005/06 and 13.4% in2004/05. Financial Planning and Benefit Consultants This department has demonstrated organic growth in the year with revenues risingby 9% from £5.4 million to £5.9 million. These figures are included in thetotals for administration income. Strong new client acquisition was achievedfrom the recently integrated regional offices and the recruitment of newconsultants to support our enhanced proposition. The department is well placedfor future expansion and profitability. Recent changes in pensions legislation have seen greater uptake of new SIPPs(300 new arrangements in the year) and larger contributions to existingarrangements bringing total funds under administration to about £700 million.EBS (Management) PLC became fully authorised by the FSA with the advent of SIPPRegulation on 6 April 2006 and is attracting significant numbers of newenquiries as a high quality bespoke solution for many private clients as well asoffering a white labelled service proposition to other managers of high networth clients. Charles Stanley OEICs and our Inheritance Tax portfolio service Our in house funds and managed product business made excellent progress duringthe year with the funds growing 81% to £61 million (2006: £33 million). Thoughembryonic this part of the business is growing in importance going forward. Charles Stanley Securities Charles Stanley Securities, our specialist small and mid cap advisory andinstitutional broking division, had another good year. Revenues for the yearwere slightly down on the exceptional level of last year at £13.9 million (2006:£15.4 million) reflecting the generally quieter conditions in new issueactivity. The corporate finance and broking team made progress with its retained clientlist (currently 54 companies) with the average market capitalisation continuingto grow, whilst maintaining significant momentum in terms of executingtransactions. Stockmarket conditions for AIM IPOs and secondary fund raisingswere considerably more challenging than in the previous year, so the total of£88 million raised on behalf of clients in the course of four IPOs and 16secondary fund raisings was very satisfactory. In addition, a range ofadvisory-only mandates were executed. In parallel, the institutional equities business (comprising institutionalequity research and sales) has also continued to develop. In addition tocoverage of corporate client stocks, sector analysts are increasing theircoverage of non-corporate client companies, specifically larger-sized smallcompanies, with a view to helping drive secondary commissions. The division continues with its established strategy of focusing on thedevelopment of profitable corporate and institutional business, whilstincrementally adding high quality people to its existing staff of 35. Finally, in April, it was very gratifying for the division to win the AIM Brokerof the Year prize at the annual Growth Company Investor Awards. This followed aconfidential survey of all AIM company chief executives and reflects their viewsof the division's overall broking capabilities. Additionally, it was againshort-listed for the Best Nominated Adviser award. The quality of our service The excellent results for last year reflect the quality of the service that weoffer to our clients; these figures are the culmination of another year's hardwork and dedication from our skilled professional team at Charles Stanley. Onbehalf of shareholders I offer my thanks to everyone who has made 2006/07 such asuccessful year. ACQUISITIONS As in previous years, we were pleased to welcome a number of brokers andfinancial planning executives both in London and in several of our branches. Following the year end we opened a new branch, in Exeter, with a highly-regardedteam which adds significantly to our strong presence in the south-west ofEngland. The transfer has gone exceptionally well, and much credit is due bothto the team in Exeter and to all the many people in our London office who havemade it such a success. More recently we have opened a major new branch in Guildford and we have madefurther significant appointments in London. OUTLOOK In my statement last year I highlighted a number of uncertainties that layahead. Perhaps I am tempting fate to say that, a year further on, things look alittle clearer. The London Stock Exchange has retained its independence andseveral bidders have left the field. But maybe the hunt will resume in the yearahead. The Financial Services Action Plan grinds on in Brussels. But though westill anticipate significant and expensive changes to the UK investmentlandscape, some of the most concerning parts of MiFID, the Markets in FinancialInstruments Directive, have been pruned back. We particularly welcome the constructive approach of the FSA in minimising "gold-plating" of the Directive, holding back from adding layers of UK regulationto the already detailed and prescriptive rules which are dictated from Brussels.This chimes well with the broader changes in regulation which the FSA isspear-heading, moving away from detailed and prescriptive rules and in favour ofprinciple-based regulation -- a development which will keep London at theleading edge, and which we applaud. MiFID still remains a concern. We await critical decisions on significant partsof it. Yet there are less than 6 months to go before implementation. And of the27 member states only the UK and Bulgaria had passed the mandatory enactinglegislation by the required date. On the other hand, economic conditions have remained benign and world stockmarkets have performed strongly. Some reaction is possible. But the underlyingtrend remains well-supported, and I expect markets to continue to offer clientsgood returns. Our skill is in managing our clients' investments, whatever the marketconditions, so as to build solid long-term value. We seek to bring the sameskill to the way in which we manage Charles Stanley. The past year has shownstrong performance. We are very pleased to welcome the new teams that havejoined us in recent months. Trading in the new financial year has started on afirm note, and if conditions remain favourable I anticipate further success inthe year ahead. Sir David HowardChairman CHARLES STANLEY GROUP PLCFUNDS UNDER MANAGEMENT AND ADMINISTRATION 2007 2006 £ billion £ billionDiscretionary funds under managementIn Group's nominee or Crest personal membership 2.6 2.2 Advisory portfolio fundsIn Group's nominee or Crest personal membership 2.5 2.1Not held in Group's nominee 0.5 0.6 3.0 2.7 Total 5.6 4.9 Advisory dealing fundsIn Group's nominee or Crest personal membership 2.4 2.4Execution only fundsIn Group's nominee or Crest personal membership 2.6 2.4 5.0 4.8 Total funds under management or administration 10.6 9.7 Charles Stanley Group PLCConsolidated Income StatementYear ended 31 March 2007 2007 2006 Notes £'000 £'000 RestatedContinuing operationsRevenue 2 98,179 92,555 Administrative expenses (84,672) (81,194) Operating profit 4 13,507 11,361 Interest payable and similar charges 5 (46) (153)Interest receivable 5 2,151 1,825 Underlying profit before tax 15,612 13,033 Profit on disposal of available for sale investments 5 1,974 948 Profit before tax 17,586 13,981 Taxation 6 (5,235) (4,377) Profit for the year 12,351 9,604 Profit attributable to minority interest (22) 34Profit attributable to equity shareholders 12,373 9,570 12,351 9,604 Earnings per ShareBased on reported profit for the yearBasic 7 29.25p 22.70p Diluted 7 28.16p 21.78p Based on underlying profit for the yearBasic 7 25.98p 20.45p Diluted 7 25.01p 19.62p Statement of Recognised Income and Expense 2007 2006 £000 £000 Restated Profit for the year 12,351 9,604 Revaluation of available for sale investments taken to income statement ondisposal (1,974) (948)Revaluation of available for sale investments (463) 2,483Deferred tax on revaluation of available for sale investments 771 (443)Retirement benefit scheme actuarial surplus/(deficit) 825 (2,284)Deferred tax on retirement benefit scheme actuarial (surplus)/deficit (303) 729 Net expense recognised directly in equity (1,144) (463) Total recognised income for the year 11,207 9,141 Attributable to minority interest (22) 34Attributable to equity shareholders 11,229 9,107 11,207 9,141 Charles Stanley Group PLCConsolidated Balance Sheet31 March 2007 2007 2006 Notes £'000 £'000 AssetsNon-current assetsGoodwill 9 15,434 15,603Intangible assets 10 3,169 -Property, plant and equipment 11 6,128 5,480Available for sale investments 12 4,942 7,170 29,673 28,253 Current assetsTrade and other receivables 13 267,474 239,890Held for trading investments 1,234 -Cash and cash equivalents 14 42,305 48,108 311,013 287,998 LiabilitiesCurrent liabilitiesFinancial liabilities 15 (881) (1,001)Trade and other payables 16 (271,214) (253,190)Current tax liabilities (3,011) (3,099) (275,106) (257,290) Net current assets 35,907 30,708 Non-current liabilitiesFinancial liabilities 15 (97) (556)Retirement benefit liability (1,521) (2,429)Deferred tax liabilities (36) (504)Other non-current liabilities 16 - (100) (1,654) (3,589) Net assets 63,926 55,372 Shareholders' equityOrdinary shares 17 10,592 10,541Share premium 18 379 21Other reserves 18 2,289 3,955Retained earnings 18 50,569 40,675 Total shareholders' equity 19 63,829 55,192Minority interest in equity 97 180 Total equity 63,926 55,372 Charles Stanley Group PLCConsolidated Cash Flow StatementYear ended 31 March 2007 2007 2006 Notes £'000 £'000 Cash flows from operating activitiesCash generated from operations 20 4,386 10,062Interest received 2,151 1,825Interest paid (95) (153)Tax paid (5,323) (3,527) Net cash from operating activities 1,119 8,207 Cash flows from investing activitiesAcquisition of subsidiaries and other businesses (313) (2,461)Acquisition of intangible assets (1,169) -Proceeds from sale of property, plant and equipment 27 28Purchase of property, plant and equipment (3,066) (1,846)Proceeds from available for sale investments 2,229 2,956Purchase of investments (1,869) (445)Dividends received 371 83 Net cash used in investing activities (3,790) (1,685) Cash flows from financing activitiesNet proceeds from issue of ordinary share capital 152 21Capital element of finance lease payments (245) (329)Dividends paid to shareholders (3,039) (2,340) Net cash used in financing activities (3,132) (2,648) Net (decrease)/increase in cash and cash equivalents (5,803) 3,874 Cash and cash equivalents at start of year 48,108 44,234 Cash and cash equivalents at end of year 42,305 48,108 Charles Stanley Group PLCNotes to the Financial Statements General information Basis of preparation The results are an abridged extract from the financial statements for the yearended 31 March 2007, which have not yet been delivered to the Registrar ofCompanies. The auditors' report on the full financial statements has yet to besigned. The results have been prepared on a basis consistent with the accountingpolicies set out in the statutory financial statements for the year ended 31March 2006 except for the recycling of previously recognised revaluation gainsas explained in the prior year adjustment note below. The financial informationas set out in this report is unaudited and does not comprise statutory accountsfor the purposes of Section 240 of the Companies Act 1985. The comparative figures for the year ended 31 March 2006 have been taken from,but do not constitute, the Company's statutory financial statements for thatfinancial year as restated for the effect of the change in treatment or profitson disposal of available for sale investments as explained below. Thosefinancial statements have been reported on by the Company's auditors anddelivered to the Registrar of Companies. The report was unqualified. Prior year adjustment The financial statements for the year ended 31 March 2006 were prepared underInternational Financial Reporting Standards ("IFRS") for the first time and theGroup's accounting policies were amended to comply with IFRS where necessary.In particular the policy on available for sale investments was changed to state"Gains or losses on available for sale investments are recognised directly as aseparate component of equity until the investment is sold, or otherwise disposedof, or until the investment is determined to be impaired, at which time thecumulative gain or loss previously reported in equity is included in the profitor loss for the period." When the accounts were prepared the profit on disposal of investments which hadbeen previously recognised directly in equity (£948,000) was shown as a movementbetween revaluation reserve and retained earnings. Over the last year it hasemerged that such profits are now being recycled on the face of the IncomeStatement. In order to show consistent presentation, the 2006 figures in theIncome Statement and related notes have been restated. Underlying profit before tax and underlying earnings The Board believes that a truer reflection of the performance of the Group'son-going business is given by the measure "Underlying Profit before Tax", whichrepresents operating profit plus net interest but excludes profit on thedisposal of available for sale investments, and the measure "Underlying Earnings", which represents underlying profit before tax less tax expense. Thesemeasures are also followed by the analyst community as benchmarks for theGroup's on-going performance. The table below reconciles these measures to thereported income statement and demonstrates the continued progress made inincreasing underlying earnings for the year by 26% to £11.0 million in 2007(2006: £8.7 million). 2007 2006 £000 £000 £000 £000Reported profit before tax 17,586 13,981Exclude profit on disposal of available for saleinvestments (1,974) (948) Underlying profit before tax 15,612 13,033Taxation (5,235) (4,377)Less taxation on profit on disposal of available forsale investments 592 (4,643) - (4,377) Underlying earnings 10,969 8,656Attributable to minority (22) 34Attributable to equity shareholders 10,991 8,622 Underlying earnings per share 25.98p 20.45pUnderlying diluted earnings per share 25.01p 19.62p 2 Revenue Private Charles Other Total Client Stanley Division Securities £'000 £'000 £'000 £'000Year ended 31 March 2007Commission 48,796 8,737 1,873 59,406 Fees Investment management 16,268 - - 16,268 Administration 16,993 - - 16,993 Corporate finance - 5,114 - 5,114 33,261 5,114 - 38,375 Other income - - 398 398 Total for year ended 31 March 2007 82,057 13,851 2,271 98,179 Allocated administrative expenses (50,233) (10,796) (1,732) (62,761) 31,824 3,055 539 35,418 Unallocated administrative expenses (21,911) Operating profit 13,507 Year ended 31 March 2006Commission 47,208 8,461 1,579 57,248 Fees Investment management 13,021 - - 13,021 Administration 14,923 - - 14,923 Corporate finance - 6,911 - 6,911 27,944 6,911 - 34,855 Other income - - 452 452 Total for year ended 31 March 2006 75,152 15,372 2,031 92,555 Allocated administrative expenses (48,409) (9,774) (1,528) (59,711) 26,743 5,598 503 32,844 Unallocated administrative expenses (21,483) Operating profit 11,361 3 Staff costs The average number of persons employed (including Directors) during the year was555 (2006: 517). 2007 2006 £000 £000Staff costs for the Group during the year:Wages and salaries 30,777 26,781Social security costs 3,539 3,315Other pension costs 2,563 2,364 36,879 32,460 4 Operating profit The following items have been included in arriving at operating profit: Depreciation of property, plant and equipment:- owned assets 2,281 2,193- assets held under finance leases 108 212Profit on disposal of property, plant and equipment - (61)Auditors' remuneration:- Services supplied for the audit of the accounts 164 106- Services supplied relating to taxation 70 40Operating lease rentals payable 1,368 1,174One-off revenue costs relating to new investment teams 1,613 2,201 5 Finance income - net 2007 2006 £'000 £'000 RestatedInterest expense:Interest payable on bank borrowings (32) (32)Interest payable on other loans (3) (102)Interest payable on finance leases (11) (19) Interest payable and similar charges (46) (153) Interest income 2,151 1,825 Profit on disposal of available for sale investments 1,974 948 Finance income - net 4,079 2,620 6 Taxation Current taxation:- Continuing operations 5,404 4,540- Relating to prior years (169) (122)Deferred taxation:- Continuing operations - (41) 5,235 4,377 7 Earnings per share 2007 2006 £'000 £'000 Restated Earnings attributable to ordinary shareholders 12,373 9,570Profit on disposal of available for sale investments (1,974) (948)Tax on profit on disposal of available for sale investments 592 - Underlying earnings attributable to ordinary shareholders 10,991 8,622 No. No. '000 '000 Weighted average number of shares in issue in the year 42,299 42,158Dilution 1,647 1,780 43,946 43,938 Based on reported earningsBasic earnings per share 29.25p 22.70p Diluted earnings per share 28.16p 21.78p Based on underlying earningsBasic earnings per share 25.98p 20.45p Diluted earnings per share 25.01p 19.62p 8 Dividends paid £'000 £'000 Final paid for 2006: 5.35p (2005: 4.15p) per 25p share 2,256 1,750Interim paid for 2007: 1.85p (2006: 1.40p) per 25p share 783 590 3,039 2,340 In addition, the Directors are proposing a final dividend in respect of the yearended 31 March 2007 of 6.25p per share which will absorb an estimated £2.66million of shareholders' funds. It will be paid on 31 July 2007 to shareholderswho are on the register of members on 6 July 2007. 9 Goodwill £'000 As at 1 April 2006 15,603Acquisitions 80Adjustment to deferred consideration (249) As at 31 March 2007 15,434 10 Intangible assets Customer lists Brand costs Total £'000 £'000 £'000 As at 1 April 2006 - - -Acquisitions 3,083 86 3,169 As at 31 March 2007 3,083 86 3,169 11 Property, plant and equipment Freehold Long Short Office Total premises leasehold leasehold equipment and premises premises motor vehicles £'000 £'000 £'000 £'000 £'000Cost1 April 2006 185 1,901 3,792 7,902 13,780Additions - 74 398 2,594 3,066Disposals - - - (65) (65) 31 March 2007 185 1,975 4,190 10,431 16,781 Depreciation1 April 2006 24 1,484 1,650 5,142 8,300Charge for year 4 90 375 1,922 2,391Disposals - - - (38) (38) 31 March 2007 28 1,574 2,025 7,026 10,653Net book value31 March 2007 157 401 2,165 3,405 6,128 31 March 2006 161 417 2,142 2,760 5,480 12 Available for sale investments Listed investments Unlisted investments Total £'000 £'000 £'0001 April 2006Cost 1,218 305 1,523Revaluation 3,494 2,153 5,647 Fair value at 1 April 2006 4,712 2,458 7,170 Additions 435 29 464Disposals (2,136) (39) (2,175)Revaluation in year (673) 156 (517) Fair value at 31 March 2007 2,338 2,604 4,942 Cost 1,428 303 1,731Revaluation 910 2,301 3,211 13 Trade and other receivables 2007 2006 £'000 £'000Current:Trade debtors 264,967 237,530Other debtors 393 556Prepayments and accrued income 2,114 1,804 267,474 239,890 14 Cash and cash equivalents Cash at bank and in hand 42,305 48,108 At the balance sheet date there were also deposits for clients, not included inthe consolidated balance sheet, which were held in trust in segregated bankaccounts, amounting to £741 million (£658 million). 15 Financial liabilities Current:3% redeemable loan 157 1574.5% convertible redeemable loan note 680 4694.5% redeemable unsecured loan note - 81Obligations under finance leases 44 94Short position holdings - 200 881 1,001 Non-current:4.5% convertible redeemable loan note - 468Obligations under finance leases 97 88 97 556 16 Trade and other payables Current:Trade creditors 258,483 243,895Other taxes and social security 1,746 2,570Other creditors 4,742 1,293Accruals and deferred income 6,243 5,432 271,214 253,190 Non-current:Other creditors - 100 17 Called up share capital 2007 2006 £'000 £'000Authorised:80,000,000 ordinary shares of 25p each 20,000 20,000 Allotted and fully paid:42,370,195 (2006: 42,165,335) ordinary shares of 25p each 10,592 10,541 On 31 March 2007 the following options have been granted and remain outstandingin respect of ordinary shares of 25p in the company under the company's Save AsYou Earn Scheme. No of shares Option price Grant dated 11 July 2001 4,703 £2.87Exercisable during the six months commencing 1 September 2006 Grant dated 2 January 2003 1,627,612 £0.96Exercisable during the six months commencing 1 February 2008 During the year 72,781 ordinary shares were issued fully paid for cash at 96peach and 28,686 ordinary shares were issued fully paid for cash at 287p eachfollowing the exercise of options by former employees. In April 2006 part of the 4.5% convertible redeemable loan notes were redeemedand 103,393 ordinary shares were issued fully paid at £2.48 each. 18 Reserves Share premium Revaluation Retained £'000 reserve earnings £'000 £'000 Restated 1 April 2005 3 2,863 34,928Net profit - - 9,570Dividends paid - - (2,340)Revaluation of available for sale investments - 2,483 -Deferred tax movement on revaluation of available for saleinvestments - (443) -Transfer of realised revaluation surplus - (948) -Retirement benefit scheme actuarial loss - - (2,284)Deferred tax on retirement benefit scheme actuarial loss - - 729Share options - value of employee services - - 72 - issue of shares 18 - - 31 March 2006 21 3,955 40,675 Net profit - - 12,373Dividends paid - - (3,039)Revaluation of available for sale investments - (463) -Deferred tax movement on revaluation of available for saleinvestments - 771 -Transfer of realised revaluation surplus to income statement - (1,974) -Retirement benefit scheme actuarial surplus - - 825Deferred tax on retirement benefit scheme actuarial surplus - - (303)Share options - value of employee services - - 38Issue of shares at a premium 358 - - 31 March 2007 379 2,289 50,569 19 Statement of changes in shareholders' equity Share Share Other Retained Total capital premium reserves earnings £'000 £'000 £'000 £'000 £'000 Restated Restated 1 April 2005 10,538 3 2,863 34,928 48,332Net profit - - - 9,570 9,570Dividends paid - - - (2,340) (2,340)Revaluation of available for sale investments - - 2,483 - 2,483Deferred tax on revaluation of available forsale investments - - (443) - (443)Transfer of realised revaluation surplus - - (948) - (948)Retirement benefit scheme actuarial loss - - - (2,284) (2,284)Deferred tax on retirement scheme actuarial loss - - - 729 729Share options - value of employee services - - - 72 72 - issue of shares 3 18 - - 21 31 March 2006 10,541 21 3,955 40,675 55,192 Net profit - - - 12,373 12,373Dividends paid - - - (3,039) (3,039)Revaluation of available for sale investments - - (463) - (463)Deferred tax on revaluation of available forsale investments - - 771 - 771Transfer of realised revaluation surplus - - (1,974) - (1,974)Retirement benefit scheme actuarial surplus - - - 825 825Deferred tax on retirement benefit schemeactuarial surplus - - - (303) (303)Share options - value of employee services - - - 38 38Issue of shares at a premium 51 358 - - 409 31 March 2007 10,592 379 2,289 50,569 63,829 20 Reconciliation of net profit to cash generated from operations 2007 2006 £'000 £'000 Restated Net profit 17,586 13,981Adjustments for:Depreciation 2,391 2,405Share options - value of employee services 38 72Dividend income (371) (83)Interest income (2,151) (1,825)Interest expense 46 153Profit on disposal of property, plant and equipment - (61)Profit on disposal of financial assets (1,974) (1,356)Financial assets acquired in lieu of fees - (620)Changes in working capital:Increase in debtors (27,544) (7,710)Increase in creditors 16,365 5,106 Cash generated from operations 4,386 10,062 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
CAY.L