15th Mar 2005 07:01
Jarvis Securities plc15 March 2005 PRELIMINARY STATEMENT OF AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2004 CHAIRMAN'S STATEMENT These are the first results for Jarvis Securities plc as the new holding companyfor the group. However, the operating subsidiary, Jarvis Investment Managementplc, had its 20th anniversary in 2004. We have come a very long way from aprivate investment club, through general financial advisory work, to the volumeexecution-only stockbroker and tailored financial administration solutionsprovider that we are today. It was a fitting achievement for the end of oursecond decade that the group was admitted to trading on AIM. Whilst it ispleasant to pause and reflect on our past, it is certainly not our style to bedistracted from the changes and opportunities ahead. In 2003 we took the important steps of acquiring another business, implementingnew systems and ensuring that we had skilled staff of the highest level. Italked of this as laying strong foundations for growth. The challenge in 2004was to be certain that those necessary changes were bedded in and ready to buildupon. With increased turnover, margins, service quality and very low staffturnaround I am certain this has been a success. You will see in financial termsthat turnover is up by 17.4% and margins improved with operating profit up by33.2%. This would have been higher still (59.1%) without the exceptional costsof the move from OFEX to AIM. The fundraising on admission also helpedstrengthen the balance sheet with net assets up from £430,233 to £1,372,680. I have also been pleased with the number of positive comments received fromclients over the past year. We have been able to keep our service levels high,despite the pressures of business growth, and clients continue to commentfavourably on both the web services and our personal telephone service. Retailinvestors continue to be drawn to our low-cost and efficient stockbrokingservices at the same rate and after opening 3,500 new ShareDeal Active accountsin 2003 we have now moved well past 7,000 such accounts in 2004. Whilst we continue to grow our retail activities in execution-only stockbrokingand self-select PEPs, ISAs and SIPPs we have not been idle in promoting ouradministration and clearing services to other investment intermediaries. Jarvishas always been primarily an outsourced service provider. This began with PEPsand then ISAs. We now have a growing portfolio of commercial clients from singlefinancial advisors to some of the world's largest financial institutions,providing services from settlement and clearing of bargains through wrappers andregular savings schemes to complete white-labelled financial products. We aresucceeding in raising our profile in this area and I am sure that we will beannouncing further agreements throughout the coming year. Our efficient,cost-effective and flexible solutions are just the type of outsourcedarrangement that many banks, stockbrokers and investment intermediaries arelooking for to improve the returns and minimise the regulatory andadministrative costs of their own businesses. This remains our primary focus fororganic growth in 2005. On 26 January 2004, we announced that we had entered into advanced discussionsto acquire a company involved in the wholesale provision of securities research,trade execution, dealing settlement and custody services to professionalintermediaries. We have not been able to agree terms acceptable to Jarvis andaccordingly discussions have now been terminated. GROUP PROFIT AND LOSS ACCOUNTFor the year ended 31 December 2004 2004 2003 -------- -------- Notes £ £ TURNOVER 2,562,793 2,182,486 Administrative expenses 1,742,074 1,666,609Exceptional administrative expenses 5 133,536 - -------- -------- 1,875,610 1,666,609 OPERATING PROFIT 4 687,183 515,877 Exceptional costs of businessreorganisation 5 - 160,857 -------- -------- PROFIT ON ORDINARY ACTIVITIES BEFORETAXATION 687,183 355,020 Tax on profit on ordinary activities 7 148,201 72,267 -------- -------- PROFIT FOR THE FINANCIAL YEAR 538,982 282,753 Dividends 8 401,200 386,155 -------- -------- RETAINED PROFIT/(LOSS) 18 137,782 (103,402) Retained profit brought forward 320,033 423,435 -------- --------RETAINED PROFIT CARRIED FORWARD 457,815 320,033 ======== ======== EARNINGS PER SHAREBasic earnings per share 21 5.36p 2.82pEarnings per share before exceptionalexpenses 21 6.51p 3.94pDiluted earnings per share 21 5.35p 2.82p CONTINUING OPERATIONS None of the group's activities were acquired or discontinued in the currentyear. Acquisitions in the previous year were integrated immediately and therelated revenues and costs are not separately identifiable. GROUP BALANCE SHEETAs at 31 December 2004 31/12/2004 31/12/2003 -------------- --------------- Notes £ £ £ £ FIXED ASSETSIntangible assets 9 385,330 309,640Tangible assets 10 126,873 157,381Investments 11 - - -------- -------- 512,203 467,021 CURRENT ASSETSInvestments 12 36,349 46,482Debtors 13 3,440,023 3,565,432Cash at bank and in hand 14 4,889,805 4,095,078 -------- -------- 8,366,177 7,706,992 CREDITORS:Amounts falling due 15 7,505,700 7,732,652within one year -------- -------- NET CURRENT ASSETS/(LIABILITIES) 860,477 (25,660) -------- --------TOTAL ASSETS LESS CURRENT LIABILITIES 1,372,680 441,361 PROVISIONS FOR LIABILITIES AND CHARGESDeferred taxation 16 - 11,128 -------- --------NET ASSETS 1,372,680 430,233 ======== ======== CAPITAL AND RESERVESCalled up share capital 17 114,845 100,300Share premium account 18 800,020 9,900Profit and loss account 18 457,815 320,033 -------- --------SHAREHOLDERS' FUNDS 1,372,680 430,233 ======== ======== GROUP CASH FLOW STATEMENTFor the year ended 31 December 2004 Notes 31/12/2004 31/12/2003 --------- --------- £ £ Reconciliation of operating profit to net cash inflow from operatingactivities Operating profit 687,183 515,877Cashflow from exceptional - (160,857)itemDepreciation 59,015 47,045Amortisation 18,750 8,619(Profit)/Loss on disposal offixed - 518assets(Increase)/decrease in (253,720) 200,062debtorsIncrease/(decrease) in 481,452 63,963creditors --------- ---------Net cash inflow fromoperating 992,680 675,227activities ========= ========= CASH FLOW STATEMENT Cash flow from operating 992,680 675,227activitiesTaxation (159,682) (122,200)Capital expenditure andfinancial 22a (112,814) (112,860)investmentAcquisitions - cashconsideration 3 - (318,259)for the purchase of abusinessEquity dividends paid (401,200) (386,155) --------- --------- 318,984 (264,247) Financing 22a 804,665 (5,613) --------- ---------Increase in cash 1,123,649 (269,860) ========= ========= Reconciliation of net cash flow to movement in net funds 2004 2003 -------------- -------------- £ £ £ £ Increase in cash in the 1,123,649 (269,860)yearRepayments of amounts - 13,942borrowed -------- --------Movement in net funds in 1,123,649 (255,918)the year Net funds at 1 January 2004 107,392 363,310 -------- --------Net funds at 31 December 22b 1,231,041 107,3922004 ======== ======== NOTES FORMING PART OF THE FINANCIAL STATEMENTSFor the year ended 31 December 2004 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 convention The financial statements have been prepared under the historical costconvention. (b) Revenue Revenue 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 consolidation The company was incorporated on 20 April 2004 and on 19 July 2004 the groupunderwent a reconstruction in which Jarvis Investment Management plc, a companyregistered in England and Wales, was included in the group. The combination waseffected under the merger method of accounts in accordance with FinancialReporting Standard No.6 because the company was acquired by means of a share forshare exchange. The prior year comparative figures are restated to include theresults of Jarvis Investment Management plc. The group financial statementsconsolidate the financial statements of Jarvis Securities plc, Jarvis InvestmentManagement plc, Jarvis Personal Finance Limited, View Range Limited, JIMNominees Limited, Galleon Nominees Limited and Dudley Road Nominees Limited madeup to 31 December 2004. 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 assets Depreciation is provided on cost in equal annual instalments over the lives ofthe assets at the following rates: Website - 33% on costLeasehold improvements - 33% on costMotor vehicles - 20% on costOffice equipment - 20% on costSoftware developments - 33% on cost (e) Intangible fixed assets Goodwill 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.Other intangible assets are capitalised at their market value on acquisition andare amortised on the same basis. (f) Deferred taxation Provision 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 reporting There are no significant segments for reporting purposes as required byStatement of Standard Accounting Practice 25. (h) Pensions The group operates a defined contribution pension scheme. Contributions payablefor the year are charged to the profit and loss account. (i) Stockbroking balances The 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 leases Costs 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) Investments Fixed asset investments are stated at cost and current asset investments arestated at current market valuations. (l) Financial instruments The company has no financial instruments as determined in the provisions ofFinancial Reporting Standard 13. Short-term debtors and creditors are excludedfrom these provisions as permitted by the standard. (m) Cashflow statement Cash 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. 2004 2003 -------- -------- £ £Interest received 1,165,331 967,342Other turnover 1,397,462 1,215,144 -------- -------- 2,562,793 2,182,486 ======== ========3. ACQUISITION During the previous year the company acquired the retail stockbroking andexecution-only PEP and ISA management trade of CFA Securities Limited. Theacquisition included the relevant client databases, brands and trademarks. Thesale was completed on 19 June 2003 for a total consideration of £225,000. It isnot possible to separately identify the results of the acquired trade. The fairvalue of the assets and liabilities are set out below: Asset: Fair Value (£):-------- ---------------Certificated client contracts 10,000Database and trade marks 5,000Non-certificated client contracts 10,000 -------- 25,000Consideration 225,000Legal fees and acquisition costs 187,699 --------Goodwill on acquisition 387,699 ======== 4. OPERATING PROFIT 2004 2003 --------- --------Operating profit is stated after charging: £ £Directors' emoluments 198,905 208,621Depreciation - owned assets 59,014 65,611Amortisation 18,750 8,619Operating lease rentals - hire of machinery 2,342 674Operating lease rentals - land and buildings 19,750 18,762Auditor's remuneration - audit - parent company 5,000 -Auditor's remuneration - audit - subsidiaries 5,000 9,150Auditor's remuneration - other services - parent 53,347 -companyAuditor's remuneration - other services - 3,688 1,976subsidiariesLoss on disposal of fixed assets - 518Interest payable and similar charges 302,652 372,036 ========= ========Directors' emoluments ========= ========Fees 190,841 201,436Pension contributions 8,064 7,185 ========= ========Details of the highest paid director are asfollows:Aggregate emoluments 104,000 95,000Company contributions to personal pension scheme 8,064 7,185 --------- -------- 112,064 102,185 Other services performed by the auditors relates to work performed on thegroup's restructuring and admission to AIM. Benefits are accruing for one director (2003 one director) under a moneypurchase pension scheme. Staff Costs The average number of persons employed by the group, including directors, duringthe year was as follows: Number NumberManagement and administration 22 17 ======== ======== The aggregate payroll costs of these persons were as £ £follows:Wages and salaries 524,047 438,060Pension contributions 8,064 7,887Social security 62,311 48,045 -------- -------- 594,422 493,992 ======== ======== 5. EXCEPTIONAL ITEMS Exceptional items derive from the costs relating to the following events:During the current year the group was restructured and Jarvis Securities plc wasformed as a new holding company for the group. During the previous year the firm changed from transacting its equity dealingthrough a third party to managing its own settlement function. This required asignificant change in the IT systems, together with a significant change instaffing levels and skills and the resultant training costs. This also enabledthe launch of a new product range, under the name of ShareDeal Active, which hadsignificant initial costs. These costs are shown as an exceptional cost ofbusiness reorganisation in the profit and loss account. 6. INTEREST PAYABLE AND SIMILAR CHARGES 2004 2003 -------- -------- £ £Bank loans and overdrafts 5,320 8,672Hire purchase agreement - 470Interest paid to clients 297,332 362,894 -------- -------- 302,652 372,036 ======== ======== 7. TAX ON PROFIT ON ORDINARY ACTIVITIES 2004 2003 -------- -------- £ £Based on the adjusted results for the year:UK corporation tax 239,750 92,879Adjustments in respect of prior years (80,421) (31,740) -------- --------Total current tax 159,329 61,139 Deferred tax:Origination and reversal of timing differences (11,128) 11,128 -------- --------Tax on profit on ordinary activities 148,201 72,267 ======== ======== 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 787,206 355,020 ======== ========Profit on ordinary activities multiplied by thestandard rate of corporation tax in the UK of 30%(2003 - 30%) 236,162 105,506 Effects of:Marginal relief - (4,423)Group relief claimed without payment (4,667) -Income not taxable (28,375) -Expenses not deductible for tax purposes 2,656 215Ineligible depreciation 1,048 1,661Capital allowances less than depreciation - (8,708)Depreciation in excess of capital allowances 32,926 -Adjustments to tax charge in respect of previousyears (80,068) (32,789)Other short term timing differences (323) -------- --------Current tax charge for the year 159,682 61,139 ======== ======== If the company had not incurred exceptional costs of £133,536 the profit beforetax would have been £820,719 with a tax charge for the year of £165,315.If thecompany had not incurred exceptional costs of £160,857 the profit before tax inthe previous year would have been £515,877 with a tax charge for the year of£120,523. Movement in provision: Provision at startof year 11,128Deferred taxcharged in the P&Laccount for theyear (11,128) --------Provision at end of year - ======== Provision for deferred tax:Accelerated capital allowances - ======== 8. DIVIDENDS 2004 2003 -------- -------- £ £ Interim dividendspaid on Ordinary 1pshares 401,200 386,155 ======== ======== 9a. INTANGIBLE FIXED ASSETS - GROUP Goodwill Brands, Other & Total -------- Databases -------- -------- £ £ £Cost:At 1 January 2004 293,259 25,000 318,259Additions 94,440 - 94,440 -------- -------- --------At 31 December 2004 387,699 25,000 412,699 ======== ======== ======== Amortisation:At 1 January 2004 7,942 677 8,619Charge for the year 17,500 1,250 18,750 -------- -------- --------At 31 December 2004 25,442 1,927 27,369 ======== ======== ======== Net Book Value:At 31 December 2004 362,257 23,073 385,330 ======== ======== ======== At 31 December 2003 285,317 24,323 309,640 ======== ======== ======== 9b. INTANGIBLE FIXED ASSETS - COMPANY Goodwill Brands, Other & Databases Total £ £ £Cost:Additions 387,699 25,000 412,699At 31 December 2004 387,699 25,000 412,699 Amortisation:Charge for the year 25,442 1,927 27,369At 31 December 2004 25,442 1,927 27,369 Net Book Value:At 31 December 2004 362,257 23,073 385,330 Intangible assets arose on the acquisition of the trade of CFA Securities Limitedduring the previous year. The trade, databases, trade marks, brands and the nomineecompany of CFA Securities Limited were purchased for a consideration of £225,000.Legal, data conversion and other costs of £187,699 were capitalised in addition to theinitial consideration during the current year. 10a. TANGIBLE FIXED ASSETS - GROUP -------- ------ -------- ------ ------- ------- Software Website Leasehold Motor Office Total Development Improvements Vehicle Equipment -------- ------ -------- ------ ------- ------- £ £ £ £ £ £Cost: At 1 January 65,130 37,405 22,421 - 116,304 241,2602004 Additions 13,706 1,500 - 22,500 12,551 50,257 Disposals - - - (22,500) - (22,500) -------- ------ -------- ------ ------- -------At 31December 78,836 38,905 22,421 - 128,855 269,0172004 ======== ====== ======== ====== ======= ======= Depreciation: At 1 January - 20,135 6,408 - 57,336 83,8792004 Charge forthe 17,743 11,594 6,850 750 22,078 59,015year On Disposal - - - (750) - (750) -------- ------ -------- ------ ------- -------At 31December 17,743 31,729 13,258 - 79,414 142,1442004 ======== ====== ======== ====== ======= ======= Net BookValue: At 31December 61,093 7,176 9,163 - 49,441 126,8732004 ======== ====== ======== ====== ======= ======= At 31December 65,130 17,270 16,013 - 58,968 157,3812003 ======== ====== ======== ====== ======= ======= 10b. TANGIBLE FIXED ASSETS - COMPANY -------- ------ -------- ------ ------- ------- Software Website Leasehold Motor Office Total Development Improvements Vehicles Equipment -------- ------ -------- ------ ------- ------- £ £ £ £ £ £Cost: Transfer fromgroup company 65,130 37,405 22,421 - 118,956 243,912 Additions 13,706 1,500 - - 9,899 25,105 Disposals - - - - - - -------- ------ -------- ------ ------- -------At 31December 78,836 38,905 22,421 - 128,855 269,0172004 ======== ====== ======== ====== ======= ======= Depreciation: Transfer fromgroup company 5,915 23,376 8,276 - 63,429 100,996 Charge forthe 11,828 8,353 4,982 - 15,985 41,148year On Disposal - - - - - -------- ------ -------- ------ ------- -------At 31December 17,743 31,729 13,258 - 79,414 142,1442004 ======== ====== ======== ====== ======= ======= Net BookValue: At 31December 61,093 7,176 9,163 - 49,441 126,8732004 ======== ====== ======== ====== ======= ======= At 31 - - - - - -December ======== ====== ======== ====== ======= =======2003 All tangible assets were acquired by Jarvis Securities plc from JarvisInvestment Management plc on 1 October 2004. 11. FIXED ASSET INVESTMENTS Group Company 2004 2003 2004 2003 -------- -------- -------- --------Unlisted Investments £ £ £ £Cost:At 1 January 2004 - - - -Additions - - 100,300 -Disposals - - - - -------- -------- -------- --------As at 31December 2004 - - 100,300 - -------- -------- -------- -------- Listed InvestmentsValuation:At 1 January2004 - 768 - -Additions - - - -Disposals - (768) - - -------- -------- -------- --------As at 31 December - - - -2004 -------- -------- -------- -------- 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. 12. CURRENT ASSET INVESTMENTS Group Company 2004 2003 2004 2003 -------- -------- -------- --------Listed InvestmentsValuation:At 1 January 2004 46,482 - - -Additions - 46,482 - -Disposals (10,133) - - - -------- -------- -------- --------As at 31 December 2004 36,349 46,482 - - -------- -------- -------- -------- Listed investments are stated at their market value at 31 December 2004. 13. DEBTORS Group Company Amounts falling due within oneyear: 2004 2003 2004 2003 -------- -------- -------- -------- £ £ £ £ Trade debtors 2,885,312 3,304,453 - -Amounts owed by groupundertakings 5,000 21,500 5,000 -Other debtors 124,481 28,934 73,676 -Prepayments and accrued income 425,230 210,545 8,585 - -------- -------- -------- -------- 3,440,023 3,565,432 87,261 - ======== ======== ======== ======== Trade debtors include £2,882,658 (2003 £3,261,787) in respect of delivery versuspayment transactions for the settlement of client bargains. 14. CASH AT BANK & IN HAND Group Company 2004 2003 2004 2003 -------- -------- -------- -------- £ £ £ £Balance at bank and in hand 4,889,805 4,095,078 614,686 - ======== ======== ======== ======== Cash at bank includes £3,658,764 (2003 £3,987,686) 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. 15. CREDITORS: Group Company Amounts falling due within oneyear: 2004 2003 2004 2003 -------- -------- -------- -------- £ £ £ £ Trade creditors 6,884,729 7,377,164 262,785 -Corporation tax 159,682 92,879 - -Other taxes and Social Security 41,728 20,623 - -Other creditors and provisions 245,131 21,851 216,173 -Accruals 174,430 220,135 5,000 - -------- -------- -------- -------- 7,505,700 7,732,652 483,958 - ======== ======== ======== ======== Trade creditors include £6,541,422 (2003 £7,249,473) in respect of deliveryversus payment transactions for the settlement of client bargains. 16. DEFERRED TAX 2004 2003 -------- -------- £ £At 1 January 2004 11,128 -Charge for the year (11,128) 11,128 -------- --------As at 31 December 2004 - 11,128 ======== ======== The deferred tax is made up as follows:Origination and reversal of timing differences - 11,128 ======== ======== 17. CALLED UP SHARE CAPITAL 2004 2003 -------- -------- £ £Authorised:16,000,000 Ordinary shares of 1p each 160,000 120,000 -------- -------- 160,000 120,000 ======== ========Allotted, issued and fully paid:11,484,545 Ordinary shares of 1p each 114,845 100,300 -------- -------- 114,845 100,300 ======== ======== 18a. RESERVES AND RECONCILIATION OF SHAREHOLDER FUNDS - GROUP -------- ------- -------- ---------- Share Share Profit Total Capital Premium & Loss Shareholders' Account Funds -------- ------- -------- ---------- £ £ £ £At 1 January 2003 100,000 - 423,435 523,435Retained loss for thefinancial - - (103,402) (103,402)yearShares issued 300 9,900 - 10,200 -------- ------- -------- ----------At 31 December 2003 100,300 9,900 320,033 430,233Retained profit for thefinancial - - 137,782 137,782yearShares issued 114,845 1,185,454 - 1,300,299Expenses of issue - (395,334) - (395,334)Share for share exchange onacquisition (100,300) - - (100,300) -------- ------- -------- ----------At 31 December 2004 114,845 800,020 457,815 1,372,680 ======== ======= ======== ========== 18b. RESERVES AND RECONCILIATION OF SHAREHOLDER FUNDS - COMPANY -------- ------- -------- ---------- Share Share Profit Total Capital Premium & Loss Shareholders' Account Funds -------- ------- -------- ---------- £ £ £ £Shares issued 114,845 1,185,454 - 1,300,299Expenses of issue - (395,334) - (395,334)Retained profit for thefinancial - - (74,473) (74,473)year -------- ------- -------- ----------At 31 December 2004 114,845 790,120 (74,473) 830,492 ======== ======= ======== ========== 19. IMMEDIATE AND ULTIMATE PARENT UNDERTAKINGS The company's immediate and ultimate parent undertaking is Sion HoldingsLimited, a company registered in England and Wales. 20. RELATED PARTY TRANSACTIONS At the year end Sion Holdings Limited had an outstanding balance due to JarvisSecurities plc of £5,000. 21. 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 2004 2003------ --------------- -------- ------ --------- ---------01/01/03 Opening balance 10,000,000 42 - 1,150,685 200311/02/03 Issue of share 10,030,000 323 - 8,875,863 capital01/01/04 Opening balance 10,030,000 358 9,810,765 200423/12/04 Issue of share 11,484,545 8 251,028 capital --------- --------- 10,061,793 10,026,548 The Diluted Earnings per Share calculation is as follows:Date Event No. of shares Days 2004 2003 --------- 01/01/03 Opening balance 2003 10,000,000 42 - 1,150,68511/02/03 Issue of share capital 10,030,000 323 - 8,875,86301/01/04 Opening balance 2004 10,030,000 358 9,810,765 -23/12/04 Issue of share capital 12,134,545 8 265,236 - and options --------- --------- 10,076,001 10,026,548 22. NOTES TO THE CASH FLOW STATEMENT NOTE A - GROSS CASHFLOWS 2004 2003 --------- --------- £ £Capital expenditure and financialinvestmentPayments to acquiretangible fixedassets (50,257) (98,470)Payments to acquireintangible fixedassets (94,440) -Receipts fromdisposal of fixedassets 21,750 31,324Payments to acquirecurrent assetinvestments - (46,482)Receipts fromdisposal of currentasset investments 10,133 -Receipts fromdisposal of listedinvestments - 768 --------- --------- (112,814) (112,860) ========= =========FinancingIssue of ordinaryshare capital 1,199,999 10,200Expenses paid onissue of shares (395,334) -Capital element offinance leaserentals - (15,813) --------- --------- 804,665 (5,613) ========= =========NOTE B - ANALYSIS OFNET FUNDS At 1.1.04 Cash Flow Other Non At 30.9.04 Cash Changes --------- --------- --------- --------- £ £ £ £Cash inhand, 4,095,078 794,727 - 4,889,805atbank Less (3,987,686) 328,922 - (3,658,764)DVP --------- --------- --------- ---------cash NET 107,392 1,123,649 - 1,231,041FUNDS ========= ========= ========= ========= 23. OPERATING LEASE COMMITMENTS At 31 December 2004 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: 19,750 ========= 24. CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE COMPANY Consolidated profit and loss account from the date of incorporation on 20 April2004 to 31 December 2004 for Jarvis Securities plc: Total £ --------- Turnover 1,226,880 Administrative expenses 823,012Exceptional administrative expenses 132,860 ---------Total administrative expenses 955,872 Total operating profit 271,008 --------- Taxation on profit on ordinary activities 37,682 Profit on ordinary activities after taxation 233,326 --------- Dividends - ordinary 225,675 ---------Retained profit for the period 7,651 ========= The profit and loss account above is required by the Companies Act 1985 andcovers the first statutory accounting reference period of Jarvis Securities plcfrom its date of incorporation on 20 April 2004 to 31 December 2004. Disclosure notes for this period are not presented, as the directors do notbelieve that they would provide meaningful information to the users of theaccounts. Directors' remuneration for this period is included within the amounts disclosedin the Remuneration Report, which covers remuneration for the year to 31December 2004. Amounts for the period 20 April 2004 to 31 December 2004 inrespect of salaries and other related costs can be derived by apportioning theannual amounts. 25. STATUS OF FINANCIAL INFORMATION The financial information set out in the announcement does not constitute thecompany's statutory accounts for the year ended 31 December 2004 or 2003. Thefinancial information for the year ended 31 December 2003 is derived from thestatutory accounts for that year, which have been delivered to the Registrar ofCompanies. The auditors reported on those accounts; their report was unqualifiedand did not contain a statement under S237(2) or (3) Companies Act 1985. Thestatutory accounts for the year ended 31 December 2004 will be finalised on thebasis of the financial information presented by the directors in thispreliminary announcement and will be delivered to the Registrar of Companiesfollowing the company's annual general meeting. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Jarvis Securities