20th Mar 2006 07:00
Jarvis Securities plc20 March 2006 Jarvis Securities plc ("Jarvis" or "the Company") PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2005 HIGHLIGHTS •Funds under administration up 52% compared to 31 December 2004 •Client numbers up 12.5% compared to 31 December 2004 •Turnover up 3.5% to £2.6 million (2004: £2.56 million) •Operating profit down 13.8% to £0.59 million (2004: £0.68 million) •Net assets unchanged at £1.367 million (2004: £1.372 million) •Record trading start to 2006 with highest number of trades ever completed in January, highest commission income ever earned in February and record number of trades completed in one day in March 2006. CHAIRMAN'S STATEMENT There is no doubt that 2005 has been a demanding year for the group. Thefinancial results are not a fair reflection of the level of effort and progressmade by the Company. We have indeed advanced in the last year and I am confidentthat this progress will be represented through improved financial performance in2006. We are sensitive to market activity levels and consequently recorded a quietsecond quarter in 2005. We were also involved with investigating a significantacquisition opportunity during the first quarter of 2005. Although we areanxious to find firms suitable for consolidation, by nature we are aconservatively run company. A number of potential issues were uncovered duringthe due diligence process, which persuaded us that the potential target was notsuitable for consolidation into the group. The aborted acquisition resulted inexceptional costs although the Directors of the Company believe that it ispreferable to incur these costs through necessary due diligence than to make aninappropriate purchase. Falling interest rates have adversely materiallyaffected our financial performance as well. Despite these factors, the operating subsidiary, Jarvis Investment Managementplc again improved its operating profit by 2.6% compared to the same period in2005. This was counteracted by higher group costs recorded in Jarvis Securities,which prevented this upturn flowing into the consolidated results. We haveincurred costs in developing and improving the system and legal framework forour outsourced services but have not seen the full benefit of these newcontracts flowing through to the financial results. The majority of our Model Bcontracts will be running for their first full year in 2006 without theinevitable front-loaded costs to our operation. Our offices have also beenextended to provide approximately one third more space, giving us plenty of roomto expand without having the disruption and expense of moving premises. Jarvis is a business that prides itself on efficiency and quality of service. Wehave been striving very hard to differentiate ourselves from other volumeexecution-only brokers through our personal approach. With almost 35,000clients, maintaining this differentiation in quality can be difficult. I ampleased, however, to say that we have achieved this and have been recognisedaccordingly. In October 2005, Jarvis Investment Management plc won theInvestor's Chronicle Award for Best Self-Select ISA Provider 2005 from a publicvote. This is a truly exciting result considering the size and market presenceof our major competitors. There is no doubt that the group will face further challenges during 2006although there are more opportunities available to the group than for some time.Levels of dealing volumes and new accounts opened are sharply higher so far thisyear for our existing products. A number of institutions looking to outsourcefinancial administration processes have approached us and we have beenvigorously promoting co-branded offerings to other organisations with anenthusiastic early reception. Jarvis Investment Management plc plans to launch anew web-based dealing service at a very competitive commission that the Companyexpects to garner a significant amount of interest. In addition, early stage talks with several potential targets or partners haveeither begun or recommenced recently and we believe that there are a number ofopportunities to combine businesses in our sector to cut costs and improveprofits and service. I shall, of course, report any developments of this naturein more detail in due course. I appreciate that our first year on AIM has not shown the growth in our shareprice that the directors were hoping to achieve for our existing shareholders.We have purchased a number of shares in the market when the price has fallen tolevels that your Board believed undervalued the business and its currentprospects. The best route to increasing shareholder value in my opinion is tomaintain our distinctive quality while improving profits. This will be entirelythe focus of the Board in 2006 and the early indications for an improvedperformance are promising. Andrew J. GrantChairman GROUP PROFIT AND LOSS ACCOUNTFor the year ended 31 December 2005 2005 2004 -------- --------- £ £TURNOVER 2,651,665 2,562,793Administrative expenses 2,009,206 1,742,074Exceptional administrative 50,222 133,536expenses -------- --------- 2,059,428 1,875,610OPERATING PROFIT 592,237 687,183Tax on profit on ordinary 281,678 148,201activities -------- ---------PROFIT FOR THE FINANCIAL YEAR 310,559 538,982Dividends 287,114 401,200 -------- ---------RETAINED PROFIT 23,445 137,782Retained profit brought forward 457,815 320,033 -------- ---------RETAINED PROFIT CARRIED FORWARD 481,260 457,815 ======== ========= EARNINGS PER SHAREBasic earnings per share 2.70p 5.36pDiluted earnings per share 2.56p 5.35p GROUP BALANCE SHEETAs at 31 December 2005 31/12/2005 31/12/2004 -------------- --------------- £ £ £ £FIXEDASSETSIntangible 364,695 385,330assetsTangible 176,597 126,873assets -------- -------- 541,292 512,203CURRENTASSETSInvestments 33,177 36,349Debtors 3,693,549 3,440,023Cash at bank 5,130,205 4,889,805and in hand -------- -------- 8,856,931 8,366,177CREDITORS:Amounts 8,031,163 7,505,700falling due -------- --------within oneyearNET CURRENT 825,768 860,477ASSETS -------- --------NET ASSETS 1,367,060 1,372,680 ======== ======== CAPITAL ANDRESERVESCalled up 114,845 114,845share capitalShare premium 789,834 800,020accountProfit and 481,260 457,815loss account -------- -------- 1,385,939 1,372,680Own shares (18,879) -held for -------- --------cancellationSHAREHOLDERS' 1,367,060 1,372,680FUNDS ======== ======== COMPANY BALANCE SHEETAs at 31 December 2005 31/12/2005 31/12/2004 -------------- -------------- £ £ £ £FIXED ASSETSIntangible assets 364,695 385,330Tangible assets 176,597 126,873Investments 100,300 100,300 -------- -------- 641,592 612,503CURRENT ASSETSDebtors 287,956 87,261Cash at bank and in hand 4,080 614,686 -------- -------- 292,036 701,947CREDITORS:Amounts falling due within one year 63,069 483,958 -------- --------NET CURRENT ASSETS 228,967 217,989 -------- --------NET ASSETS 870,559 830,492 ======== ======== CAPITAL AND RESERVESCalled up share capital 114,845 114,845Share premium account 779,934 790,120Profit and loss account (5,341) (74,473) -------- -------- 889,438 830,492Own shares held for cancellation (18,879) - -------- --------SHAREHOLDERS' FUNDS 870,559 830,492 ======== ======== GROUP CASH FLOW STATEMENTFor the year ended 31 December 2005 31/12/2005 31/12/2004 --------- --------- £ £ Reconciliation of operating profit to net cash inflow from operatingactivities Operating profit 592,237 687,183Depreciation 77,822 59,015Amortisation 20,635 18,750Loss on disposal of fixed 13,501 -assets(Increase) in debtors (319,021) (253,720)(Decrease)/increase in (282,020) 481,452creditors --------- ---------Net cash inflow from 103,154 992,680operating activities ========= ========= CASH FLOW STATEMENT Cash flow from operating 103,154 992,680activitiesTaxation (245,412) (159,682)Capital expenditure and (137,874) (112,814)financial investmentEquity dividends paid (287,114) (401,200) --------- --------- (567,246) 318,984 Financing (29,065) 804,665 --------- ---------(Decrease)/Increase in cash (596,311) 1,123,649 ========= ========= Reconciliation of net cash flow to movement in netfunds 2005 2004 -------------- -------------- £ £ £ £ (Decrease)/Increase in cash (596,311) 1,123,649in the year -------- --------Movement in net funds in (596,311) 1,123,649the year Net funds at 1 January 2005 1,231,041 107,392 -------- --------Net funds at 31 December 2005 634,730 1,231,041 ======== ======== NOTES FORMING PART OF THE FINANCIAL STATEMENTSFor the year ended 31 December 2005 1. ACCOUNTING POLICIES The financial statements have been prepared in accordance with applicableaccounting standards. The following accounting policies have been usedconsistently in dealing with items which are considered material in relation tothe financial statements.(a) Accounting conventionThe financial statements have been prepared under the historical costconvention.(b) RevenueRevenue represents net sales of services, commissions and interest excludingvalue added tax. Income is recognised as it is accrued for fees and interest andon receipt for commissions.(c) Basis of consolidationThe group financial statements consolidate the financial statements of JarvisSecurities plc, Jarvis Investment Management plc, Sharegain Limited, JIMNominees Limited, Galleon Nominees Limited and Dudley Road Nominees Limited madeup to 31 December 2005. Intra-group sales and profits are eliminated onconsolidation and all sales and profit figures relate to external transactionsonly. No profit and loss account is presented for Jarvis Securities plc asprovided by S230(3) of the Companies Act 1985.(d) Tangible fixed assetsDepreciation is provided on cost in equal annual instalments over the lives ofthe assets at the following rates: Website - 33% on cost Leasehold improvements - 33% on cost Motor vehicles - 15% on cost Office equipment - 20% on cost Software developments - 33% on cost(e) Intangible fixed assetsGoodwill represents the excess of the fair value of the consideration given overthe aggregate fair values of the separable net assets. Goodwill is amortisedover 20 years on a straight-line basis, subject to annual impairment reviews asrequired. Other intangible assets are capitalised at their market value onacquisition and are amortised on the same basis.(f) Deferred taxationProvision is made in full for all taxation deferred in respect of timingdifferences that have originated but not reversed by the balance sheet date,except for gains on disposal of fixed assets which will be rolled over intoreplacement assets. No provision is made for taxation on permanent differences.Deferred tax assets are recognised to the extent that it is more likely than notthat they will be recovered.(g) Segmental reportingThere are no significant segments for reporting purposes as required byStatement of Standard Accounting Practice 25.(h) PensionsThe group operates a defined contribution pension scheme. Contributions payablefor the year are charged to the profit and loss account.(i) Stockbroking balancesThe gross assets and liabilities of the group relating to stockbrokingtransactions on behalf of clients are included in debtors, creditors and cash atbank.(j) Operating leases and finance leasesCosts in respect of operating leases are charged on a straight line basis overthe lease term in arriving at the operating profit. Where the company hasentered into finance leases, the obligations to the lessor are shown as part ofborrowings and the rights in the corresponding assets are treated in the sameway as owned fixed assets. Leases are regarded as finance leases where theirterms transfer to the lessee substantially all the benefits and burdens ofownership other than right to legal title.(k) InvestmentsFixed asset investments are stated at cost and current asset investments arestated at current market valuations.(l) Cashflow statementCash movements relating to stockbroking balances derived from client trading areexcluded from the cashflow statement on the basis that these amounts do not formpart of the cashflow position of the group. 2. GROUP INCOME The income of the group during the year was made in the United Kingdom and theincome of the group for the year derives from the same class of business asnoted in the Directors' Report. 2005 2004 -------- -------- £ £Interest received 1,280,405 1,165,331Other turnover 1,371,260 1,397,462 -------- -------- 2,651,665 2,562,793 ======== ======== 3. OPERATING PROFIT 2005 2004 --------- --------Operating profit is stated after charging: £ £Directors' emoluments 241,079 198,905Depreciation - owned assets 77,820 59,014Amortisation 20,635 18,750Operating lease rentals - hire of machinery 786 2,342Operating lease rentals - land and buildings 19,750 19,750Auditor's remuneration - audit - parent company 27,000 5,000Auditor's remuneration - other services -parent compay 28,250 53,347Auditor's remuneration - other services - 2,200 3,688subsidiariesLoss on disposal of fixed assets 13,501 -Interest payable and similar charges 213,343 302,652 ========= ========Directors' emoluments ========= ========Fees 231,115 190,841Pension contributions 9,964 8,064 ========= ========Details of the highest paid director are asfollows:Aggregate emoluments 116,248 104,000Company contributions to personal pension scheme 9,964 8,064 --------- -------- 126,212 112,064 Other services performed by the auditors relates to work performed on tax, VATand advice on reconstruction of the group. Exceptional administrative costs ofan aborted acquisition include £23,000 paid to the auditors for due diligencework on the target. The audit costs of the subsidiaries were met by JarvisSecurities plc. Benefits are accruing for one director (2004 one director) under a moneypurchase pension scheme. Staff CostsThe average number of persons employed by the group, including directors, duringthe year was as follows: Number NumberManagement and administration 23 22 ======== ======== The aggregate payroll costs of these persons were as £ £follows:Wages and salaries 626,883 524,047Pension contributions 9,964 8,064Social security 66,094 62,311 -------- -------- 702,941 594,422 ======== ======== 4. EXCEPTIONAL ITEMS Exceptional items derive from the costs relating to the following events:During the current year a potential acquisition was aborted following duediligence. During the previous year the group was restructured and Jarvis Securities plcwas formed as a new holding company for the group. 5. INTEREST PAYABLE AND SIMILAR CHARGES 2005 2004 -------- -------- £ £Bank loans and overdrafts 8,288 5,320Interest paid to clients 205,055 297,332 -------- -------- 213,343 302,652 ======== ======== 6. TAX ON PROFIT ON ORDINARY ACTIVITIES 2005 2004 -------- -------- £ £Based on the adjusted results for the year:UK corporation tax 201,440 239,750Adjustments in respect of prior years 523 (80,421)Payment for prior years' group relief 79,715 - -------- --------Total current tax 281,678 159,329 Deferred tax:Origination and reversal of timing differences - (11,128) -------- --------Tax on profit on ordinary activities 281,678 148,201 ======== ======== The tax assessed for the year is lower than the standard rate of corporation taxin the UK (30%). The differences are explained below: Profit on ordinary activities before tax 861,989 787,206 ======== ========Profit on ordinary activities multiplied by the standard rate of corporation tax inthe UK of 30% (2004 - 30%) 258,597 236,162Effects of:Marginal relief - -Group relief claimed without payment (57,758) (4,667)Income not taxable - (28,375)Expenses not deductible for tax purposes 601 2,656Ineligible depreciation - 1,048Capital allowances less than depreciation - -Depreciation in excess of capital allowances - 32,926Adjustments to tax charge in respectof previous years 523 (80,068)Payment for prior years' group relief 79,715 - -------- --------Current tax charge for the year 281,678 159,682 ======== ======== Movement in provision:Provision at start of year -Deferred tax charged in the P&L account for the -year --------Provision at end of year - ======== Provision for deferred tax:Accelerated capital allowances - ======== 7. DIVIDENDS 2005 2004 -------- -------- £ £Interim dividends paid on Ordinary 1p shares 287,114 401,200 ======== ======== 8a. INTANGIBLE FIXED ASSETS - GROUP Goodwill Brands, Other & Total -------- Databases -------- -------- £ £ £Cost:At 1 January 2005 387,699 25,000 412,699 -------- -------- --------At 31 December 2005 387,699 25,000 412,699 ======== ======== ======== Amortisation:At 1 January 2005 25,442 1,927 27,369Charge for the year 19,385 1,250 20,635 -------- -------- --------At 31 December 2005 44,827 3,177 48,004 ======== ======== ======== Net Book Value:At 31 December 2005 342,872 21,823 364,695 ======== ======== ======== At 31 December 2004 362,257 23,073 385,330 ======== ======== ======== 8b. INTANGIBLE FIXED ASSETS - COMPANY Goodwill Brands, Other Total & Databases £ £ £Cost:At 1 January 2005 387,699 25,000 412,699 -------- ------- --------At 31 December 2005 387,699 25,000 412,699 ======== ======= ========Amortisation:At 1 January 2005 25,442 1,927 27,369Charge for the year 19,385 1,250 20,635At 31 December 2005 -------- ------- -------- 44,827 3,177 48,004Net Book Value: ======== ======= ========At 31 December 2005 342,872 21,823 364,695 ======== ======= ========At 31 December 2004 362,257 23,073 385,330 ======== ======= ======== Intangible assets arose on the acquisition of the trade of CFA Securities Limitedduring 2003. The trade, databases, trademarks, brands and the nominee company of CFASecurities Limited were purchased for a consideration of £225,000. Legal, dataconversion and other costs of £187,699 were capitalised in addition to the initialconsideration during the previous year. 9a. TANGIBLE FIXED ASSETS - GROUP -------- ------ -------- ------ ------- ------- Software Website Leasehold Motor Office Total Development Improvements Vehicle Equipment -------- ------ -------- ------ ------- ------- £ £ £ £ £ £Cost:At 1 January 78,836 38,905 22,421 - 128,855 269,0172005Additions 11,391 5,485 5,877 98,555 61,737 183,045Disposals - - - (60,000) - (60,000) -------- ------ -------- ------ ------- -------At 31 90,227 44,390 28,298 38,555 190,592 392,062December 2005 ======== ====== ======== ====== ======= ======= Depreciation: At 1 January 17,743 31,729 13,258 - 79,414 142,1442005Charge for 28,608 6,818 7,636 6,422 28,337 77,821the yearOn Disposal - - - (4,500) - (4,500) -------- ------ -------- ------ ------- -------At 31 46,351 38,547 20,894 1,922 107,751 215,465December 2005 ======== ====== ======== ====== ======= ======= Net BookValue:At 31 43,876 5,843 7,404 36,633 82,841 176,597December 2005 ======== ====== ======== ====== ======= ======= At 31 61,093 7,176 9,163 - 49,441 126,873December 2004 ======== ====== ======== ====== ======= ======= 9b. TANGIBLE FIXED ASSETS - COMPANY -------- ------ -------- ------ ------- ------- Software Website Leasehold Motor Office Total Development Improvements Vehicles Equipment -------- ------ -------- ------ ------- ------- £ £ £ £ £ £Cost:At 1 January 78,836 38,905 22,421 - 128,855 269,0172005Additions 11,391 5,485 5,877 98,555 61,737 183,045Disposals - - - (60,000) - (60,000) -------- ------ -------- ------ ------- -------At 31 90,227 44,390 28,298 38,555 190,592 392,062December 2005 ======== ====== ======== ====== ======= ======= Depreciation: At 1 January 17,743 31,729 13,258 - 79,414 142,1442005Charge for 28,608 6,818 7,636 6,422 28,337 77,821the yearOn Disposal - - - (4500) - (4,500) -------- ------ -------- ------ ------- -------At 31 46,351 38,547 20,894 1,922 107,751 215,465December 2005 ======== ====== ======== ====== ======= ======= Net Book Value:At 31 43,876 5,843 7,404 36,633 82,841 176,597December 2005 ======== ====== ======== ====== ======= ======= At 31 61,093 7,176 9,163 - 49,441 126,873December 2004 ======== ====== ======== ====== ======= ======= 10. FIXED ASSET INVESTMENTS Group Company 2005 2004 2005 2004 -------- -------- -------- --------Unlisted Investments £ £ £ £Cost:At 1 January2005 - - 100,300 -Additions - - - 100,300Disposals - - - - -------- -------- -------- --------As at 31December 2005 - - 100,300 100,300 -------- -------- -------- -------- Listed InvestmentsValuation:At 1 January 2005 - - - -Additions - - - -Disposals - - - - -------- -------- -------- --------As at 31 December - - - -2005 -------- -------- -------- -------- Total - - - - ======== ======== ======== ======== Unlisted investments are interests held in the following companies registered in the United Kingdom. Shareholding Holding Business -------------- --------- ---------- Jarvis Investment Management plc 100% 10,030,000 1p Ordinary shares Financial Administration On 19 July 2004 a group reorganisation was completed, whereby Jarvis Securitiesplc acquired 100% of Jarvis Investment Management plc in a share for shareexchange. 11. CURRENT ASSET INVESTMENTS Group Company 2005 2004 2005 2004 -------- -------- -------- --------Listed InvestmentsValuation:At 1 January 2005 36,349 46,482 - -Additions - - - -Disposals (3,172) (10,133) - - -------- -------- -------- --------As at 31 December 2005 33,177 36,349 - - -------- -------- -------- -------- Listed investments are stated at their market value at 31 December 2005. 12. DEBTORS Group Company Amounts falling due withinone year: 2005 2004 2005 2004 -------- -------- -------- -------- £ £ £ £ Trade debtors 2,904,391 2,885,312 3,525 -Amounts owed by groupundertakings 149,479 5,000 149,479 5,000Other debtors 126,698 124,481 126,698 73,676Prepayments and accruedincome 512,981 425,230 8,254 8,585 -------- -------- -------- -------- 3,693,549 3,440,023 287,956 87,261 Trade debtors include £2,878,896 (2004 £2,882,658) in respect of delivery versuspayment transactions for the settlement of client bargains. Other debtors include amounts due from directors of £4,875.94 from Andrew Grantand £4,930.95 from Mathew Edmett. These loans were advanced pursuant toformal loan agreements to allow the directors to purchase shares in the company. 13. CASH AT BANK & IN HAND Group Company 2005 2004 2005 2004 -------- -------- -------- -------- £ £ £ £Balance at bank and in hand 5,130,205 4,889,805 4,080 614,686 ======== ======== ======== ======== Cash at bank includes £4,495,475 (2004 £3,658,764) received in the course ofsettlement of bargains. This amount is held by the company in trust on behalf ofclients and is only available to complete the settlement of outstandingbargains. 14. CREDITORS: Group Company Amounts falling due withinone year: 2005 2004 2005 2004 -------- -------- -------- -------- £ £ £ £ Trade creditors 7,545,754 6,884,729 26,218 262,785Amounts owed to groupcompanies - - 2,991 -Corporation tax 201,440 159,682 - -Other taxes and SocialSecurity 33,756 41,728 - -Other creditors andprovisions 76,254 245,131 18,860 216,173Accruals 173,959 174,430 15,000 5,000 -------- -------- -------- -------- 8,031,163 7,505,700 63,069 483,958 ======== ======== ======== ======== Trade creditors include £7,374,372 (2004 £6,541,422) in respect of deliveryversus payment transactions for the settlement of client bargains. 15. DEFERRED TAX - GROUP 2005 2004 -------- -------- £ £At 1 January 2005 - 11,128Charge for the year - (11,128) -------- --------As at 31 December 2005 - - ======== ======== The deferred tax is made up as follows:Origination and reversal of timing differences - - ======== ======== 16. CALLED UP SHARE CAPITAL 2005 2004 -------- -------- £ £Authorised:16,000,000 Ordinary shares of 1p each 160,000 160,000 -------- -------- 160,000 160,000 ======== ========Allotted, issued and fully paid:11,484,545 Ordinary shares of 1p each 114,845 114,845 -------- -------- 114,845 114,845 ======== ======== Details of options issued to directors and employees are disclosed in theDirectors' Report. 17a. RESERVES AND RECONCILIATION OF SHAREHOLDERS' FUNDS - GROUP ------- ------- -------- ------- Share Share Own Shares Profit Total Capital Premium Held For & Loss Shareholders' Cancellation Account Funds ------- ------- -------- ------- --------- £ £ £ £ £At 1 January 100,300 9,900 - 320,033 430,2332004Retained profitfor - - - 137,782 137,782the financialyearShares issued 114,845 1,185,454 - - 1,300,299Expenses of - (395,334) - - (395,334)issueShare for shareexchange onacquisition (100,300) - - - (100,300) ------- ------- -------- ------- ---------At 31 December 114,845 800,020 457,815 1,372,6802004Retained profitfor - - - 23,445 23,445the financialyearAdditionalexpenses of - (10,186) - - (10,186)share issuePurchase ofshares for - - (18,879) - (18,879)cancellation ------- ------- -------- ------- ---------At 31 December 114,845 789,834 (18,879) 481,260 1,367,0602005 ======= ======= ======== ======= ========= 17b. RESERVES AND RECONCILIATION OF SHAREHOLDERS' FUNDS - COMPANY ------- ------- ------- -------- Share Share Own Shares Profit Total Capital Premium Held For & Loss Shareholders' Cancellation Account Funds ------- ------- -------- ------- --------- £ £ £ £ £Shares issued 114,845 1,185,454 - - 1,300,299Expenses of issue - (395,334) - - (395,334)Retained profitfor - - - (74,473) (74,473)the financial ------- ------- -------- ------- ---------yearAt 31 December 114,845 790,120 - (74,473) 830,4922004Retained profitfor - - - 69,132 69,132the financialyearAdditionalexpenses of - (10,186) - - (10,186)share issuePurchase ofshares for - - (18,879) - (18,879)cancellation ------- ------- -------- ------- ---------At 31 December 114,845 779,934 (18,879) (5,341) 870,5592005 ======= ======= ======== ======= ========= 18. IMMEDIATE AND ULTIMATE PARENT UNDERTAKINGS The company's immediate and ultimate parent undertaking is Sion HoldingsLimited, a company registered in England and Wales. 19. RELATED PARTY TRANSACTIONS At the year end Sion Holdings Limited had an outstanding balance due to JarvisSecurities plc of £149,479 (2004 £5,000). During the year the company made a management charge of £10,000 to Sion HoldingsLtd for office and administrative services. 20. EARNINGS PER SHARE The weighted average number of shares in issue during the year for the Earningsper Share calculations are as follows: Date Event No. of shares Days 2005 2004------ ---------------- -------- ------ --------- ---------01/01/ Opening balance 10,030,000 358 - 9,810,76504 200523/12/ Issue of share 11,484,545 8 - 251,02804 capital01/01/ Opening balance 11,484,545 365 11,484,545 -05 2005 --------- --------- 11,484,545 10,061,793 The Diluted Earnings per Share calculation is as follows: Date Event No. of shares Days 2005 2004 ---------01/01/ Opening balance 2004 10,030,000 358 - 9,810,7650411/02/ Issue of share capital 12,134,545 8 - 265,23604 and options01/01/ Opening balance 2005 12,134,545 365 12,134,545 -05 --------- --------- 12,134,545 10,076,001Earnings per share before exceptional expenses 3.14p 6.68p 21. NOTES TO THE CASH FLOW STATEMENT NOTE A - GROSS CASH FLOWS 2005 2004 --------- --------- £ £Capital expenditure and financialinvestmentPayments to acquiretangible fixed assets (183,045) (50,257)Payments to acquireintangible fixed assets - (94,440)Receipts fromdisposal of fixed assets 41,999 21,750Receipts fromdisposal of currentasset investments 3,172 10,133Receipts from disposal of -listed investments --------- --------- (137,874) (112,814) ========= =========FinancingIssue of ordinaryshare capital - 1,199,999Expenses paid onissue of shares (10,186) (395,334)Repurchase of ownshares (18,879) - --------- --------- (29,065) 804,665 ========= =========NOTE B - ANALYSIS OFNET FUNDS At 1.1.05 Cash Flow Other Non At 31.12.05 Cash Changes --------- --------- --------- --------- £ £ £ £Cash in hand, 4,889,805 240,400 - 5,130,205at bankLess DVP (3,658,764) (836,711) - (4,495,475)cash --------- --------- --------- --------- NET FUNDS 1,231,041 (596,311) - 634,730 ========= ========= ========= ========= 22. OPERATING LEASE COMMITMENTS At 31 December 2005 the company was committed to making the followingpayments during the next year in respect of operating leases which expire: Land and Buildings --------- £After more than five years: 26,500 ========= This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Jarvis Securities