12th Dec 2006 07:01
Artisan (UK) PLC12 December 2006 ARTISAN (UK) PLC UNAUDITED INTERIM STATEMENT FOR THE SIX MONTHS ENDED 30TH SEPTEMBER 2006 Artisan (UK) plc is an AIM listed company engaged in house building and commercial property development. Highlights •First set of results to be reported under International Financial Reporting Standards ('IFRS') •Key impact of IFRS is to increase turnover reported for the comparative set of results for the six months to 30 September 2005 •Trading at Artisan (UK) Developments strong over the period: Rippon Homes results suffering from reduced margin partly due to current local market conditions •Share consolidation proposed •Subject to the approval of the share consolidation by shareholders a dividend declared of 1.2p per new ordinary share (equivalent to 0.03p per existing ordinary share) Michael W. Stevens, Chairman of Artisan (UK) plc commented, "The results demonstrate that Artisan (UK) Developments has performed well overthe period, a trend that has continued into the second half, whilst RipponHomes' margins have come under pressure although sales have held up well." "The proposed share consolidation would re-base the share price at a moresensible level, reduce the costs of running a register which currently numbersapproximately 10,300 shareholders and would facilitate the payment of a dividendto shareholders of a meaningful sum: I commend it to shareholders as part ofthe programme undertaken to improve the financial and operating strengths ofthe Group." For further information please contact: Artisan (UK) plc Chief Executive 01480 436666Chris Musselle [email protected] Brewin Dolphin Securities Limited Nominated advisers 0121 236 7000Ifor Williams Bankside Consultants Financial PR advisers 020 7367 8888Simon Rothschild 07703 167065 Company website: www.artisan-plc.co.uk CHAIRMAN'S STATEMENT The results for the six month period to 30 September 2006 are the Group's firstpresented under International Financial Reporting Standards ('IFRS') and theseproduce some transitional changes. The comparative results to 30 September 2005have been restated and the effect of the change in revenue recognition, fromsales recognised at exchange of contracts to sales recognised on completion ofcontracts, has been to significantly increase the turnover reported for thecomparative set of results reported for the six months to 30 September 2005. Trading The Group's results for the six months under review show a turnover of £15.8m (30 September 2005; £16.3m) and an operating profit of £1.3m (30 September 2005;£2.3m). The six months to 30 September 2005 also benefited from the exceptionalrecovery of litigation costs and interest totalling in excess of £500,000. The commercial division, Artisan (UK) Developments, has experienced good salesinterest and a reasonable conversion to completed sales over the six monthperiod. Turnover is £4.5m (30 September 2005; £5.8m) and operating profit beforecentral management charges of £0.6m (30 September 2005; 1.0m). The comparativemay not be flattering, but the IFRS calculation includes a substantial sale of£2.4m now recognised in the period to 30 September 2005 having been originallyrecorded in the previous year. In this context, I am very pleased with theresult achieved by this division. The encouraging sales interest seen by Artisan (UK) Developments has redoubledour efforts to seek further land for increased outlets. The results for the residential division reflect the comments made in my earlierstatements. The market in the East Midlands, the area in which our subsidiaryRippon Homes Limited principally operates, has been difficult with each saleneeding to be hard won. This has entailed the use of incentives which, combinedwith recently purchased and therefore more expensive land, has reduced tradingmargins. The turnover for the six months was £11.3m (30 September 2005; £10.5m)and operating profit before central management charges of £1.1m (30 September2005; £1.8m). Whilst this is a disappointing impact on profit, it reflectsoperating conditions. I remain confident that Rippon's product attractscustomers and that we sell well against competing sites without necessarilyhaving to match the incentives offered. I remain confident that the fundamentalsof the housing market in the areas in which we operate are strong and that weare currently experiencing a static period in the local housing market after thestrong house price growth previously experienced. Rippon Homes had previously suffered planning and legal delays in completingland purchases and whilst this may affect the opportunities for sales in thecurrent year, I am pleased to report progress has been made in overcoming thedelays and sourcing further land for future development. Whilst the residential market has been difficult particularly at the end of thesummer, we have seen improved reservations in November. Inevitably the lead upto the Christmas period will see a slackening in demand, but there is no reasonto believe the pattern of seasonal recovery seen in recent years will not berepeated and will once again boost the reservations in the first quarter of2007. As with all housebuilders, the short term is also subject to the actionsof the Bank of England's Monetary Policy Committee which seems to be intightening mode with concern voiced by members about the absence of a housingelement in the composition of the CPI inflation index. Outlook Since the interim period, Artisan (UK) Developments has seen a considerableboost to the next quarter's revenues by contracting a forward sale and a forwardlet on our new Business Park in Peterborough. Whilst some of the income will bespread over the development period of approximately eight months, the grossrevenue on the contracts totals is in excess of £4m. We are also progressingfurther commercial sales in December. This continues to demonstrate that, whilstit may have larger but less frequent sales, the activity at Artisan (UK)Developments complements well that of the residential developments. As part of the arrangements related to the change of financial year end to 30June, as previously announced, the Company will issue a trading update inrelation to the 3 month period to 31 December 2006 in the first quarter of 2007and announce its preliminary results for the 15 month period to 30 June 2007before 30 September 2007. Capital reorganisation As detailed in a separate announcement released today, the Company is proposingresolutions in respect of a Capital Reorganisation by way of a shareconsolidation. If these are approved by shareholders at an Extraordinary GeneralMeeting to be held on 19 January 2007 this will consolidate the Group's sharesto a more meaningful level and substantially reduce shareholder numbers to amore manageable level with consequential cost savings. The share consolidationmay also improve dealing efficiency by reducing the percentage spread betweenbid and ask price quoted. The process involves the creation of fractional shareswhich will be aggregated and sold for the benefit of the relevant shareholdersand arrangements have been made for Aspen Finance Limited, a company in which Ihave a beneficial interest, to acquire these shares. The share consolidation has been a long held ambition of the Board and I believeit will help to improve the efficiency of the shareholder register. It alsoallows for the payment of dividends in a much more cost effective manner and Iam pleased to announce that, subject to the capital reorganisation receiving theapproval of shareholders, an interim dividend of 1.2p per new ordinary sharefollowing the consolidation (equivalent to 0.03p per existing ordinary share)will be paid on 2 February 2007 to shareholders on the register as at 26 January2007. Conclusion Whilst we have faced difficult market conditions in the residential division,the complementary performance of the commercial division supports my confidencethat Artisan will deliver strong results relative to these conditions for the 15months to 30 June 2007. MICHAEL W STEVENS Chairman12 December 2006 ARTISAN (UK) PLC UNAUDITED CONSOLIDATED INCOME STATEMENT Six months to 30th September 2006 Six months Six months Year ended ended ended 30th September 30th 31st March 2006 September 2006 2005 (restated) (restated) £ £ £ Revenue 15,757,319 16,320,848 28,664,400Cost of sales (13,727,141) (13,272,884) (23,503,665) ---------- ---------- ---------Gross profit 2,030,178 3,047,964 5,160,735 Net operatingexpenses (931,586) (1,309,977) (2,218,052)Other operatingincome 160,044 169,812 336,351Exceptional item:Recovery of costs in 10,000 368,366 405,108respect of sale of groupundertakingsin previous years ---------- ---------- ---------Operating profitbefore exceptionalitem 1,258,636 1,907,799 3,279,034Exceptional item 10,000 368,366 405,108-------------------- ---------- ---------- --------- ---------- ---------- ---------Operating profit 1,268,636 2,276,165 3,684,142 Finance expense (300,568) (208,911) (448,686)Finance income 8,147 94,082 119,425 ---------- ---------- ---------Profit beforetaxation 976,215 2,161,336 3,354,881 Taxation (266,839) (440,713) (567,405) ---------- ---------- ---------Profit after taxation 709,376 1,720,623 2,787,476 ---------- ---------- --------- Basic and dilutedearnings per share 0.22p 0.60p 0.96p Operating profit has been arrived at after charging costs of £nil (periods ended30 September 2005 and 31 March 2006: £284,404) in respect of the departure ofthe former Chief Executive. ARTISAN (UK) PLC UNAUDITED CONSOLIDATED BALANCE SHEET As at As at As at 30th September 30th September 31st March 2006 2005 2006 (restated) (restated) £ £ £ASSETS Non-current assetsIntangible assets 2,454,760 2,454,760 2,454,760Property, plant and equipment 394,722 350,040 352,779Deferred tax assets - 106,296 171,180 ----------- ---------- -------- 2,849,482 2,911,096 2,978,719Current assetsInventories 33,962,248 26,737,279 30,167,798Current asset investment - 5,000 1,000Trade and other receivables 1,105,365 1,648,052 1,242,085Cash and cash equivalents 3,526 3,005 3,350 ----------- ---------- -------- 35,071,139 28,393,336 31,414,233 ----------- ---------- --------Total assets 37,920,621 31,304,432 34,392,952 ----------- ---------- -------- LIABILITIES Non-current liabilitiesInterest bearing loans andborrowings (10,309,046) (5,370,196) (6,563,065) ----------- ---------- -------- (10,309,046) (5,370,196) (6,563,065)Current liabilitiesTrade and other payables (7,348,093) (8,228,737) (8,058,660)Current tax liabilities (272,358) (606,106) (509,700)Provisions (444,072) (474,331) (447,745) ----------- ---------- -------- (8,064,523) (9,309,174) (9,016,105) ----------- ---------- --------Total liabilities (18,373,569) (14,679,370) (15,579,170) ----------- ---------- -------- ----------- ---------- --------Net assets 19,547,052 16,625,062 18,813,782 =========== ========== ======== EQUITYCalled up share capital 1,642,647 1,442,647 1,642,647Share premium account 10,356,668 9,456,668 10,356,668Merger reserve 515,569 515,569 515,569Capital redemption reserve 91,750 91,750 91,750Retained earnings 6,940,418 5,118,428 6,207,148 ----------- ---------- --------Total equity 19,547,052 16,625,062 18,813,782 =========== ========== ======== ARTISAN (UK) PLCUNAUDITED CONSOLIDATED CASH FLOW STATEMENT Six months Six months Year ended ended ended 30th September 30th September 31st March 2006 2005 2006 (restated) (restated) £ £ £Cash flows from operating activitiesCash (used by)/generated fromoperations (3,079,129) 2,212,147 445,423Interest received 8,147 94,082 119,425Finance cost paid (285,155) (195,062) (447,680)Tax paid (333,001) (395,030) (683,012) ----------- ---------- -------- Net cash (used in)/fromoperating activities (3,689,138) 1,716,137 (565,844) Cash flows from investing activitiesPurchase of property, plant andequipment (61,360) (25,469) (44,947)Sale of property, plant andequipment 3,384 - 8,935Sale of current assetinvestment 1,309 - - ----------- ---------- -------- Net cash used in investingactivities (56,667) (25,469) (36,012) Cash flows from financing activitiesProceeds from the issue ofordinary share capital - - 1,100,000Movement in borrowings 3,745,981 (1,690,550) (497,681)Capital element of hirepurchase payments - (2,320) (2,320) ----------- ---------- -------- Net cash from/(used in)financing activities 3,745,981 (1,692,870) 599,999 ----------- ---------- --------Net increase/(decrease) in cashand cash equivalents 176 (2,202) (1,857) ----------- ---------- -------- Cash and cash equivalents atthe beginning of the period 3,350 5,207 5,207 ----------- ---------- --------Cash and cash equivalents atthe end of the period 3,526 3,005 3,350 =========== ========== ======== ARTISAN (UK) PLCNOTES TO THE INTERIM STATEMENT 1. BASIS OF PREPARATION The consolidated interim statement has been prepared in accordance withInternational Financial Reporting Standards issued by the InternationalAccounting Standards Board as endorsed by the European Union and those parts ofthe Companies Act 1985 applicable to companies preparing their statutoryfinancial statements in accordance with IFRS. Comparative information for the six months 30 September 2005 and the year ended31 March 2006 has been restated on an IFRS basis. The endorsed IFRS that will be effective (or available for early adoption) inthe financial statements for the fifteen-month period to 30 June 2007 are stillsubject to change and to additional interpretation and therefore cannot bedetermined with certainty. Accordingly, the accounting policies for the periodwill only be determined finally when the consolidated financial statements areprepared for the period ended 30 June 2007. The interim statement is unaudited and does not constitute statutory accountswithin the meaning of Section 240 of the Companies Act 1985 (The "Act").Comparative financial information for the year ended 31st March 2006 has beenderived from information extracted from the statutory accounts for the period,which were prepared under UK GAAP and have been delivered to the Registrar ofCompanies. The auditors have reported on those UK GAAP accounts, their reportwas unqualified and did not contain statements under Sections 237(2) or (3) ofthe Act. As permitted, the group has not applied IAS 34 "Interim Reporting" in preparingthis interim report. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of consolidation The Group's interim statement consolidates the financial statements of theCompany and its subsidiary undertakings. The results of any subsidiaries sold oracquired are included in the Group income statement up to, or from, the datecontrol passes. Intra-group sales and profits are eliminated fully onconsolidation. On acquisition of a subsidiary, all of the subsidiary's separable, identifiableassets and liabilities existing at the date of acquisition are recorded at theirfair values reflecting their condition at that date. All changes to those assetsand liabilities, and the resulting gains and losses, that arise after the Grouphas gained control of the subsidiary are charged to the post acquisition incomestatement. Goodwill Goodwill arising on consolidation represents the excess of the fair value of theconsideration given over the fair value of the separable identifiable net assetsacquired. Goodwill arising on acquisition of subsidiaries and businesses iscapitalised as an asset. In accordance with IFRS 3 and as allowed by IFRS 1, goodwill has been frozen atits net book value as at 1 April 2005 and will not be amortised. Instead, itwill be subject to an annual impairment review, with any impairment losses beingrecognised immediately in the income statement. Property, plant and equipment Property, plant and equipment is stated at cost less depreciation. Depreciationon property, plant and equipment is provided at rates calculated to write offthe cost less estimated residual value of each asset over its expected usefullife. It is calculated at the following rates: Freehold buildings - 2% per annum on the straight line basisLeasehold improvements - 25% per annum on the straight line basisMotor vehicles - 20-25% per annum on the straight line or reducing balance basisFixtures and fittings - 15-25% per annum on the straight line or reducing balance basisPlant and machinery - 15-25% per annum on the straight line or reducing balance basis Leases Where assets are financed by hire purchase or by way of finance leases, theassets are treated as if they had been purchased outright. The amountcapitalised is the present value of the minimum lease payments. Thecorresponding hire purchase and finance lease commitments are shown increditors. Depreciation on the relevant assets is charged to the incomestatement. Hire purchase and finance lease payments are analysed between capital andinterest components so that the interest element of the payment is charged tothe income statement over the period of the agreement and represents a constantproportion of the lease liability. The capital part reduces the outstandingcapital amounts. When assets are financed by operating leases, their annual rentals are chargedto the income statement on a straight-line basis over the term of the lease. Inventories Inventories are valued at the lower of cost and net realisable value. Cost isdetermined on a purchase cost basis. Work in progress includes materials andlabour costs and an appropriate proportion of overheads incurred on developmentsin progress or awaiting sale at the balance sheet date. Land held for building is stated at the lower of cost and net realisable value.Cost comprises land cost and direct materials and labour. Net realisable valueis the actual or estimated net selling price. Revenue recognition Revenue is stated exclusive of VAT and represents the value of work done andproperties sold, excluding part exchange properties which are included withincost of sales. In respect of sales of property, revenue and profit arerecognised upon legal completion of the transfer of title to the customer.Profit or loss is calculated with reference to each site or phase within a site. Profit is recognised on long term work in progress contracts if the finaloutcome can be assessed with reasonable certainty, by including in the incomestatement revenue and related costs as contract activity progresses. Revenue iscalculated as that proportion of total contract value which costs to date bearto total expected costs for that contract. Losses are recognised as soon as theyare foreseen. Dividends Dividends are recorded in the period in which they become legally payable. Sales and marketing costs In accordance with IAS 2 "Inventories" costs relating to sales and marketingactivities are written off through cost of sales as incurred. Exceptional items Exceptional items are material items which derive from events or transactionsthat fall within the ordinary activities of the group and which, individuallyor, if of a similar type, in aggregate, need to be disclosed by virtue of theirsize or incidence if the financial statements are to give a true and fair view. Deferred tax Deferred tax expected to be payable or recoverable on differences at the balancesheet date between the tax bases of assets and liabilities and their carryingamounts for financial reporting purposes is accounted for using the liabilitymethod. Deferred tax liabilities are generally recognised for all taxabletemporary differences, and deferred tax assets are recognised to the extent thatit is probable that taxable profits will be available against which deductibletemporary differences can be utilised. Such assets and liabilities are not recognised if the temporary differencesarise from goodwill or from the initial recognition (other than in a businesscombination) of other assets and liabilities in a transaction that at the timeof the transaction, affects neither the taxable profit nor the accountingprofit. Deferred tax is calculated at the rates of taxation enacted orsubstantively enacted at the balance sheet date, and is not discounted. Retirement benefit costs The Group operates defined contribution pension schemes for employees.Contributions are charged to the income statement in the year in which theybecome payable. Share-based payments Charges for employee services received in exchange for share-based payment havebeen made for all options granted after 7 November 2002 and not vested by 1April 2005 in accordance with IFRS 2 and IFRS 1. Calculation of the fair value of share options at the date of grant isundertaken using an appropriate method of calculation and charged to the incomestatement over the vesting period. Market vesting conditions are factored intothe calculation of the fair value of the options granted. As long as all othervesting conditions are satisfied, a charge is made irrespective of whether themarket vesting conditions are satisfied. The cumulative expense is not adjustedfor failure to achieve a market condition. The fair value of options currentlyin existence has been calculated using the Monte Carlo simulation model, basedupon publicly available market data at the point of grant. 3. SEGMENTAL ANALYSIS The Group operates through its two principal business segments: Residential andCommercial. The Group does not operate outside the United Kingdom. Residential Commercial Central Total £ £ £ £RevenueSix months ended 30September 2006 11,293,518 4,463,801 - 15,757,319Six months ended 30September 2005 10,511,856 5,808,992 - 16,320,848Year ended 31 March 2006 19,019,916 9,644,484 - 28,664,400 Operating profit beforecentral management chargesSix months ended 30September 2006 1,115,409 633,472 (480,245) 1,268,636Six months ended 30September 2005 1,814,039 959,953 (497,827) 2,276,165Year ended 31 March 2006 3,046,327 1,621,081 (983,266) 3,684,142 4. TAXATION The taxation charge for the 6 months has been calculated at an expected annualeffective rate of 27.3% due to the availability of trading and capital lossesbrought forward to offset against profits of the current period (30th September2005 20.4%). 5. DIVIDENDS The Board has decided that subject to shareholder approval of the resolutions atthe forthcoming Extraordinary General Meeting, there will be an interim dividendof 1.2p per new ordinary share. This will amount to approximately £98,600 andwill be paid on 2 February 2007 to shareholders on the register as at 26 January2007. 6. EARNINGS PER SHARE The calculation of earnings per share is based on the profit on ordinaryactivities after taxation and 328,529,426 (30th September 2005: 288,529,426)ordinary shares being the weighted average number of shares in issue during thehalf year. The weighted average number of shares in issue during the twelvemonths ended 31st March 2006 was 291,597,919. There are no potentially dilutiveshares in 2006 and 2005. 7. NOTES TO THE CASH FLOW STATEMENT (a) Cash generated from operations Six months Six months Year ended ended ended 30th September 30th September 31st March 2006 2005 2006 £ £ £ Operating profit 1,268,636 2,276,165 3,684,142Adjustments for:Profit on sale of current assetinvestment (309) - -Provision on arising on currentasset investment - - 4,000Depreciation 18,323 15,628 32,367Share based payment charge 23,894 21,506 43,373Profit on disposal of property,plant and equipment (2,290) - (8,935)Increase in inventories (3,794,450) (78,691) (3,509,210)Decrease/(increase) in tradeand other receivables 136,720 (894,269) (488,302)(Decrease)/increase in tradeand other payables andprovisions (729,653) 871,808 687,988 ---------- ---------- --------Cash (used by)/generated fromoperations (3,079,129) 2,212,147 445,423 ========== ========== ======== (b) Reconciliation of net cash flow to movement in net debt Six months Six months Year ended ended ended 30th September 30th September 31st March 2006 2005 2006 £ £ £ Increase/(decrease) in cash andcash equivalents 176 (2,202) (1,857)Cash (inflow)/outflow fromdecrease in debt and leasefinancing (3,745,981) 1,692,870 500,001Cash inflow from decrease inliquid resources (1,309) - ---------- ---------- -------- Change in net debt resultingfrom cash flows (3,747,114) 1,690,668 498,144Increase in provision againstcurrent asset investments - - (4,000)Profit on sale of current assetinvestments 309 - - Opening net debt (6,558,715) (7,052,859) (7,052,859) ---------- ---------- -------- Closing net debt (10,305,520) (5,362,191) (6,558,715) ---------- ---------- -------- (c) Analysis of net debt At Cash Non-cash At 31st March Flow movement 30th September 2006 2006 NET CASH £ £ £ £ Cash and cash 3,350 176 - 3,526equivalents --------- -------- -------- --------- 3,350 176 - 3,526 DEBTDebt due after morethan one year (6,563,065) (3,745,981) - (10,309,046)Current asset 1,000 (1,309) 309 -investment --------- -------- -------- ---------Net debt (6,558,715) (3,747,114) 309 (10,305,520) ========= ======== ======== ========= 8. TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) In order to facilitate comparison of the 2006 interim figures with thosepublished in the previous financial year, summarised reconciliations of profitand equity are set out on the next page. More detailed reconciliations andexplanation are available in the Group's IFRS Conversion Statement which isavailable to view on the Group's website at www.artisan-plc.co.uk/art/investors/rns. Copies of the Statement are also available free of charge from theCompany's registered office, Mace House, Sovereign Court, Ermine Business Park,Huntingdon, Cambridgeshire, PE29 6XU. Reconciliation of profit Six months Year ended ended 30th September 31st March 2005 2006 £ £ Retained profit for the period previouslyreported under UK GAAP 1,095,899 2,257,521 IFRS adjustments:Revenue recognition (IAS 18) 811,055 594,777Tax effect of IFRS adjustments (IAS 12) (243,317) (178,433)Business combinations (IFRS 3) 78,492 156,984Share based payments (IFRS 2) (21,506) (43,373) --------- ---------Total IFRS adjustments 624,724 529,955 --------- ---------Retained profit 1,720,623 2,787,476 --------- --------- Reconciliation of equity Six months Year ended ended 30th September 31st March 2005 2006 £ £ Total equity previously reported under UK GAAP 16,811,041 19,072,663 IFRS adjustments:Revenue recognition (IAS 18) (354,321) (570,599)Tax effect of IFRS adjustments (IAS 12) 106,296 171,180Business combinations (IFRS 3) 78,492 156,984Other opening balance sheet adjustment (16,446) (16,446) --------- ---------Total IFRS adjustments (185,979) (258,881) --------- ---------Total equity 16,625,062 18,813,782 --------- --------- Revenue - IAS 18 IAS 18 provides that revenue from the sale of goods shall be recognised onlywhen a number of conditions have been satisfied. These conditions include therequirements that: a) the significant risks and rewards of ownership of the goods have been transferred to the buyer; and b) we retain neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold. IAS 18 also states that, in most cases, the transfer of risks and rewards ofownership coincides with the transfer of legal title or the passing ofpossession to the buyer. We have, therefore, changed the point at which werecognise revenue from exchange to completion to fall in line with IFRS. The change to IFRS affects the timing of revenue and hence profit recognition.Over the lifecycle of a development there will be no effect on the total amountof profit recognised in the Income Statement. Income Taxes - IAS 12 IAS 12 requires that full provision be made for temporary differences betweenthe carrying amount and tax bases of assets and liabilities. The balance sheets at 30 September 2005 and 31 March 2006 include an additionaldeferred tax asset of £106,296 and £171,180 respectively as a result of thechange in the timing of revenue recognition on speculative housing andcommercial sales in line with IAS 18. Business Combinations - IFRS 3 IFRS 3 requires that goodwill be capitalised at cost and then be subject to anannual impairment review. Amortisation of goodwill is prohibited. The goodwill carried by Artisan relates to the acquisition of Rippon Homes Ltdin December 2000. Artisan has chosen the option allowed by IFRS 1 to apply IFRS3 prospectively from the transition date, rather than restate previous businesscombinations. Goodwill has therefore been frozen at net book value on 1 April2005. The operating profit impact for the six months ended 30 September 2005 and theyear ended 31 March 2006 is the elimination of the amortisation charge of£78,492 and £156,984 respectively with a corresponding increase in net assets.There is no associated tax impact. There is no impairment charge for the yearended 31 March 2006. Share-based Payment - IFRS 2 In accordance with the transitional provisions of IFRS 2 and as allowed by IFRS1, Artisan has recognised a charge for employee share options granted after 7November 2002 that had not vested by 1 April 2005. As the options in existenceare equity settled with market based performance conditions, their fair valuehas been calculated using the Monte Carlo simulation model. The resulting chargeis spread over the vesting period of the options, adjusted to reflect anyoptions lapsing as a result of termination of employment. The impact on operating profit of the share based payment charge for the sixmonths ended 30 September 2005 and the year ended 31 March 2006 is a reductionin profit of £21,506 and £43,373 respectively. Employee services relating to share options are expensed and their accountingcarrying value is therefore nil at the end of a reporting period. 9. APPROVAL OF INTERIM STATEMENT The interim statement was approved by the Board of Directors on 11 December 2006. Copies are being sent to all shareholders. Copies of this statement will be available to members of the public, free of charge, from the Company'sregistered office, Mace House, Sovereign Court, Ermine Business Park,Huntingdon, Cambridgeshire, PE29 6XU. NOMINATED ADVISER PRINCIPAL BANKERSBrewin Dolphin Securities Limited Royal Bank of Scotland plcEdmund House 3rd Floor, Building 112-22 Newhall Street Centrium, Griffiths WayBirmingham St AlbansB3 3DB AL1 2RD STOCKBROKER SOLICITORSBrewin Dolphin Securities Limited Thomson Webb & CorfieldEdmund House, 16 Union Road12-22 Newhall Street CambridgeBirmingham CB2 1HEB3 3DB AUDITORS SOLICITORSBDO Stoy Hayward LLP Simmons & Simmons8 Baker Street CityPoint, One Ropemaker StreetLondon LondonW1U 3LL EC2Y 9SS FINANCIAL PR REGISTRARBankside Consultants Capita Registrars1 Frederick's Place 34 Beckenham RoadLondon BeckenhamEC2R 8AE Kent BR3 4TU Artisan (UK) plc Registered office: Mace House, Sovereign Court, Ermine Business Park, Huntingdon, Cambridgeshire, PE29 6XU www.artisan-plc.co.uk [email protected] Telephone 01480 436666 Facsimile 01480 436231 Registered No. 3630998 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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