29th Feb 2008 07:01
Gleeson(M J)Group PLC29 February 2008 Friday 29 February 2008 M J GLEESON GROUP PLC - INTERIM ANNOUNCEMENT Gleeson (GLE.L), which is in its first full year as a housing regeneration andstrategic land specialist, announces its results for the half year to 31December 2007, a time of extremely challenging market conditions for thehousebuilding industry, mainly in consequence of the reduced availability ofmortgage finance. However, there is still significant buying interest in well designed and competetively priced houses and the Board remains convinced that, in the medium to long-term, the housebuilding market and in particular the regeneration sector will provide the Group wih attractive opportunities for growth. Financial Highlights •In what is traditionally much the weaker half in terms of financial results, the loss before tax was unchanged at £0.3m on continuing revenue of £48.9m (2006/07: £78.9m). •Period end net cash totalled £27.9m (30 June 2007: £38.0m; 31 December 2006: £18.7m). •Period end shareholders' funds totalled £179.4m (30 June 2007: £183.3m; 31 December 2006: £178.7m), which equates to net assets per share of 344p. •An interim dividend per share of 2.0p (2006/07: 1.9p), up 5.3%, is declared. Commercial Highlights •Gleeson Regeneration & Homes and Gleeson Strategic Land reported a combined operating loss of £0.7m (2006/07: £0.5m). Gleeson Strategic Land recorded no material land transactions during the period, as was the case in the comparable period. •Powerminster Gleeson Services reported an operating profit of £0.4m (2006/07: £0.1m). •Gleeson Capital Solutions reported an operating profit of £0.7m (2006/07: £1.6m). The prior period included a profit of £1.5m in relation to the disposal of one non-core (i.e. non-housing) PFI investment. Prospects With regard to Group prospects, Dermot Gleeson, Chairman, stated, "The Groupremains on target to achieve a financial outcome for the full year materially inline with market estimates. However, this could become increasingly difficult todeliver, unless conditions in the housebuilding and commercial property marketsshow at least some improvement in the near future". Enquiries M J Gleeson Group plc 01252-360 300Paul Wallwork (GCEO)Chris Holt (GCFO) Bankside ConsultantsCharles Ponsonby 020-7367 8851 CHAIRMAN'S STATEMENT Market and Business Overview Following the completion of the transformation programme announced in March2006, the Group is now in its first full year as a housing regeneration andstrategic land specialist. The market conditions faced by the housebuilding industry in the period underreview were extremely challenging, mainly in consequence of the reducedavailability of mortgage finance. However, there is still significant buying interest in well designed and competetively priced houses and the Board remains convinced that, in the medium to long-term, the housebuilding market and in particular theregeneration sector will provide the Group with attractive opportunities for growth, resulting from both underlying demand and the strong commitment of the main political parties to meeting housing need. The weakening of the market had a particularly marked impact on GleesonRegeneration & Homes' operations in Merseyside and the North West. Both thesetrading regions have significant exposure to regeneration schemes wherepotential customers have experienced difficulties in obtaining mortgage finance,whether for outright purchase or for buy-to-let. This risk was identified withinthe Report and Accounts for the year ended 30 June 2007. In these circumstances,the Board is satisfied that the right priority has been given to minimising workin progress and cash outflows. Problems in the financial markets have also had an impact on the run-off ofGleeson Properties. However, despite a reduction in the number of partiesinterested in acquiring small scale commercial schemes, the Board remainshopeful that the business unit's remaining developments will be substantiallysold, as originally anticipated, by December 2008. Since the period end, theGroup's two remaining investment properties, both in Sheffield, have been sold. The Group's clear strategic focus, which is underpinned by a strong financialbase, is enabling it successfully to pursue a recruitment policy designed tobring additional first class talent into its ranks. Against this background, theGroup is well positioned to start the process of re-balancing its land bankbetween short, medium and long-term holdings and to place greater emphasison the transfer of strategic land into Gleeson Regeneration & Homes, fordevelopment by the Group. The Preliminary Announcement of 26 October 2007 stated that, in the light of theuncertainty in the housebuilding market, the Board had decided to defer taking adecision about any return of capital until it had the opportunity to evaluatethoroughly the implications of the changes in the market that were stillunfolding. In the four months that have elapsed, the housebuilding market hasweakened and its direction remains uncertain. Accordingly, the Board has furtherdeferred taking a decision about any return. Results The first half of the year is traditionally much the weaker of the two in terms offinancial results. The key financial results for the six months to 31 December 2007, along with comparables, are set out below: Unaudited Unaudited Audited 31 December 31 December 30 June 2007 2006 2007 £m £m £m Group revenue - continuing operations 48.9 78.9 194.3 ==== ==== ===== Operating (loss)/profit - continuing operations: Gleeson Regeneration & Homes andGleeson Strategic Land (0.7) (0.5) 4.1Gleeson Capital Solutions 0.7 1.6 1.6Powerminster Gleeson Services 0.4 0.1 0.7Group overheads (3.1) (3.6) (5.3) ----- ----- ----- Ongoing businesses (2.7) (2.4) 1.1Gleeson Commercial Property Development 0.3 1.7 4.6Gleeson Construction Services - - - ----- ----- ----- Group operating (loss)/profit (2.4) (0.7) 5.7Net finance income 2.1 0.4 2.5 ----- ----- ----- (Loss)/profit before tax (0.3) (0.3) 8.2Tax - (0.2) (0.8) ----- ----- ------(Loss)/profit after tax (0.3) (0.5) 7.4 ===== ===== ====== Net cash 27.9 18.7 38.0 Shareholders' funds 179.4 178.7 183.3 Net assets per share 344p 345p 351p (Loss)/earnings per share - continuing operations (0.52)p (0.90)p 14.34p Operational Review Gleeson Regeneration & Homes and Gleeson Strategic Land An operating loss of £0.7m (2006/07: £0.5m) was recorded for the period underreview. Gleeson Regeneration & Homes recorded units for revenue purposestotalling 224 (2006/07: 328) at an average selling price of £145,000 (2006/07:£197,000). Of these, 178 (2006/07: 210) were from the northern trading regionsof Merseyside, the North West and Yorkshire. The balance of 46 (2006/07: 118)were from the southern trading region. The decrease in the North ispredominantly a result of the market conditions noted previously. The decreasein the South primarily reflects a substantial and deliberate rundown of work inprogress in the comparable period last year. The focus during the period hasbeen to ensure that the build programme for private developments is aligned tothe reduced level of consumer demand and to continue to build to contract forHousing Associations. Gleeson Strategic Land recorded no material land transactions during the periodunder review, as was the case in the comparable period. At 31 December 2007, theGroup had 3,479 acres (30 June 2007: 3,064 acres) held under 67 (30 June 2007:65) option and development agreements. Gleeson Capital Solutions An operating profit of £0.7m (2006/07: £1.6m) was recorded for the period underreview. The prior period included a profit of £1.5m in relation to the disposalof one non-core (i.e. non- housing) PFI investment. The period under reviewincludes the benefits of the financial close on Cheshire Extra Care Homes. The business remains prominent within its targeted market place and is currentlyworking on a further PFI investment opportunity, Leeds Independent Living, thatis expected to deliver long-term equity returns to this business unit as well toprovide Powerminster Gleeson Services with a long-term facilities managementcontract. The Group is preferred bidder on this project and is working towards afinancial close within the current financial year. At 31 December 2007, the business held investments in three core PFI projectsand two non-core PFI projects. Powerminster Gleeson Services An operating profit of £0.4m (2006/07: £0.1m) was recorded for the period underreview. The business continues to grow from both the retention of key customercontracts and the winning of new work. During the period under review, good progress has been made in expanding thebusiness development team, thus providing a platform for further growth. Group Overheads Costs for the period under review totalled £3.1m (2006/07: £3.6m). The Groupcontinues to account centrally for both direct corporate costs, such as theBoard, Group Operations Director, Company Secretariat and Group Finance, andbusiness unit support services, such as Human Resources (including payroll) andInformation Technology. Management of legacy issues still requires a materialamount of time and resource. Gleeson Commercial Property Development Although the results of this business are included within operating profit, itis in run-off, as announced in March 2007. Only one commercial propertydevelopment project has been commenced since January 2006 and none since thedecision was taken to exit this business. Operating profit of £0.3m (2006/07: £1.7m) was recorded for the period underreview. The nine development projects and two land parcels still held at 31December 2007 had an aggregate net book value of £21.8m. The Group announced in March 2006 that it would be discontinuing its investmentproperty activity. During the period, one small investment property was disposed of for a profit of £0.1m (2006/07: two properties, with a combined profit of £2.2m). The last two investment properties which remained within the investment property portfolio at 31 December 2007 were disposed of in February 2008. The £0.9m profit on these transactions will be reflected in the full year results. Gleeson Construction Services The Group sold certain contracts, assets and liabilities of Gleeson BuildingContracting Division to Gleeson Building Limited (now re-named GB BuildingSolutions Limited) in August 2005. Any financial results arising from contracts,assets and liabilities retained by the Group are recorded within operatingprofit. No such operating profit or loss was recorded in the period under review(2006/07: £nil). Balance Sheet and Cash Flow Total shareholders' equity of £179.4m was slightly lower than the 30 June 2007figure of £183.3m, primarily due to the payment of the previous year's finaldividend of £3.8m. The Group's net cash balance at 31 December 2007 was £27.9m, a decrease of£10.1m in the period. Operating activities consumed £8.7m, of which £1.6m werenet tax payments. Investing activities realised £2.3m, whilst financingactivities consumed £3.7m. Board Changes The Board was pleased to announce, on 3 December 2007, the appointment as anon-executive Director of Colin Dearlove, formerly Group Finance Director ofBarratt Developments plc. Colin replaces Eric Stobart, who retired from theBoard on 31 January 2008. The Board would like to take this opportunity torecord their appreciation of Eric's unique and immensely valuable contributionto the Group over a nine year period. Dividends The Board has declared an interim dividend per share of 2.0p (2006/07: 1.9p), up5.3%, which will be paid on 11 April 2008 to shareholders on the register at theclose of business on 14 March 2008, with an ex-dividend date of 12 March 2008. Risks and Uncertainties The principal risks and uncertainties that have been identified as being capableof affecting the Group's performance in the second half are set out below: Employment security, interest rates and mortgage availability These factors are the key determinants of house buyers' confidence. Against abackground in which employment prospects remain broadly stable and interestrates have recently been reduced, the availability of mortgage finance will bethe main driver of the Group's financial performance in the second half of thefinancial year. The Group continues to build in a controlled manner, principallyfor sale on private developments, but it is also builds social and affordablehousing stock on a pre-agreed contract basis for Housing Associations, therebyreducing its exposure to demand risk. Demand for land with planning consent The Group derives profit from the sale to other developers of land which it isable to acquire through the exercise of option agreements when and if itsucceeds in obtaining appropriate planning consents. It is always difficult topredict with any precision the date by which options are likely to becomeexercisable. Moreover, there is inevitably some uncertainty in currentcircumstances about the appetite of developers for acquiring new sites. TheGroup will only exercise options over land when it believes that, by doing so,shareholder value will be maximised, either by selling the land concerned in theopen market or by transferring it to Gleeson Regeneration & Homes. Demand for commercial property The Group is currently engaged in running off its commercial propertydevelopment portfolio. Demand for small scale commercial properties has beensignificantly affected by the reduced availability and greater cost of financeand by a lack of confidence in values. When the Group is able to let completeddevelopment properties, rather than to sell them at an unacceptable price, it willretain them, benefiting from the rental income until the property investmentmarket improves. Prospects The Group remains on target to achieve a financial outcome for the full yearmaterially in line with market estimates. However, this could becomeincreasingly difficult to deliver, unless conditions in the housebuilding andcommercial property markets show at least some improvement in the near future. Dermot Gleeson Chairman Consolidated Income Statement for the six months to 31 December 2007 Unaudited Unaudited Audited Six months to Six months to Year to 31 December 2007 31 December 2006 30 June 2007 £000 £000 £000 Continuing operationsRevenue 48,908 78,909 194,252Cost of sales (41,111) (71,979) (171,069) ---------- ---------- ----------Gross profit 7,797 6,930 23,183 Administrative expenses (10,691) (12,133) (22,760)Profit on sale of investmentsin PFI projects - 1,489 2,281Profit on sale of investmentand owner occupied properties 224 2,486 3,274Valuation gains oninvestment properties 26 18 50Share of profit/(loss)of joint ventures 213 500 (327) ---------- ---------- ---------- Operating (loss)/profit (2,431) (710) 5,701 Financial income 2,360 1,245 4,028Financial expenses (244) (810) (1,462) ---------- ---------- ----------(Loss)/profit before tax (315) (275) 8,267 Tax 42 (190) (830) ---------- ---------- ----------(Loss)/profit for the periodfrom continuing operations (273) (465) 7,437 Discontinued operations Profit for the period from discontinued operations andgain on sale of discontinuedoperations (net of tax) - 21,607 22,521 ---------- ---------- ----------(Loss)/profit for the periodattributable to equity holders of the parent company (273) 21,142 29,958 ========== ========== ========== (Loss)/earnings per share attributable to equity holders of parent companyBasic (0.52) 40.81 57.76Diluted (0.52) 40.10 56.83 (Loss)/earnings per share from continuing operationsBasic (0.52) (0.90) 14.34Diluted (0.52) (0.90) 14.11 Consolidated Balance Sheet as at 31 December 2007 Unaudited Unaudited Audited 31 December 31 December 30 June 2007 2006 2007 £000 £000 £000 Non-current assetsProperty, plant andequipment 2,535 3,106 2,413Investment property 5,600 4,997 5,454Investments in jointventures 3,043 2,269 2,830Loans and otherinvestments 21,786 9,797 22,419Trade and otherreceivables 9,950 - 9,469Deferred tax assets 3,215 5,180 3,219 ----------- ----------- -------- 46,129 25,349 45,804 ----------- ----------- --------Current assetsInventories 91,201 108,990 81,882Trade and otherreceivables 72,658 117,290 91,587UK corporation tax 353 - -Cash and cashequivalents 27,858 18,701 38,042Assets reclassified asheld for sale 2,680 5,240 2,739 ----------- ----------- -------- 194,750 250,221 214,250 ----------- ----------- -------- Total assets 240,879 275,570 260,054 ----------- ----------- -------- Current liabilitiesTrade and otherpayables (61,437) (93,567) (75,460)UK corporation tax - (3,309) (1,272) ----------- ----------- --------Total liabilities (61,437) (96,876) (76,732) ----------- ----------- -------- ----------- ----------- --------Net assets 179,442 178,694 183,322 =========== =========== ======== EquityCalled up sharecapital 1,045 1,039 1,044Share premium account 5,608 5,033 5,465Capital redemptionreserve 120 120 120Revaluation reserve 657 629 638Retained earnings 172,012 171,873 176,055 ----------- ----------- --------Total equityattributable to equityholders of the parent 179,442 178,694 183,322 =========== =========== ======== Consolidated Cash Flow Statement for the six months to 31 December 2007 Unaudited Unaudited Audited Six months to Six months to Year to 31 December 31 December 30 June 2007 2006 2007 £000 £000 £000 Operating activites(Loss)/profit before taxfrom continuing operations (315) (275) 8,267Loss before tax fromdiscontinued operations - (4,066) (4,216) ---------- ---------- ---------- (315) (4,341) 4,051 Depreciation of property,plant and equipment 316 370 1,090Share-based payments 216 739 1,111Profit on sale of investment and owner occupied properties (224) (2,486) (3,274)Loss on sale of other property,plant and equipment 20 - 129Profit on sale of investmentsin PFI projects - (1,489) (2,281)Loss on disposal of investments injoint ventures - - 301Valuation gains on investmentproperties (26) (18) (50)Share of (profit)/loss of jointventures (net of tax) (213) (500) 327New ground rents capitalised (5) - (286)Financial income (2,360) (1,395) (4,028)Financial expenses 244 810 1,462 ---------- ---------- ----------Operating cash flows beforemovements in working capital (2,347) (8,310) (1,448)(Increase)/decrease in inventories (9,319) 23,152 49,187Decrease/(increase) in receivables 18,790 (13,684) (11,285)(Decrease)/increase in payables (14,104) 5,189 (14,174) ---------- ---------- ----------Cash (utilised in)/generated from operating activities (6,980) 6,347 22,280 Tax received 695 207 3,548Tax paid (2,313) - (2,567)Interest paid (97) (940) (1,310) ---------- ---------- ----------Net cash flows from operating activities (8,695) 5,614 21,951 Investing activities Proceeds from disposal of net assets held for sale 105 - -Proceeds from disposal of subsidiary undertakings, net of cash disposed - 4,069 4,016Proceeds from disposal of investments in joint ventures - - 71Proceeds from disposal of assets andliabilities - Engineering Division - 13,400 15,900Proceeds from disposal of investment and owner occupied properties 208 8,140 15,882Proceeds from disposal of otherproperty, plant and equipment 131 - 43Proceeds from disposal of investments in PFI projects - 2,600 4,442Interest received 1,569 426 1,779Purchase of property, plant and equipment (733) (201) (542)Net decrease/(increase) in loans to jointventures and other investments 1,011 (1,760) (6,885) ---------- ---------- ---------- Net cash flows from investing activities 2,291 26,674 34,706 Financing activitiesProceeds from issue of shares 144 1,066 1,503Purchase of own shares (115) - (900)Dividends paid (3,809) - (4,565) ---------- ---------- ---------- Net cash flows from financing activities (3,780) 1,066 (3,962) Net(decrease)/increase in cash and cash equivalents (10,184) 33,354 52,695 Cash and cash equivalents atbeginning of period 38,042 (14,653) (14,653) ---------- ---------- ----------Cash and cash equivalents atend of period 27,858 18,701 38,042 ========== ========== ========= Consolidated Statement of Recognised Income and Expenses for the six months to 31 December 2007 Unaudited Unaudited Audited Six months to Six months to Year to 31 December 31 December 30 June 2007 2006 2007 £000 £000 £000 (Loss)/profit for the periodattributable to equity holdersof the parent company (273) 21,142 29,958 --------- -------- -------- Revaluation of owner-occupied property (19) - -Deferred tax on owner-occupied property (43) (8) - --------- -------- --------Net expense recogniseddirectly in equity (62) (8) - --------- -------- -------- Total recognised (expense)/income for the period attributable to equity holders of the parent company (335) 21,134 29,958 ========= ======== ======== NOTES TO THE FINANCIAL STATEMENTS 1. Basis of preparationThe consolidated Interim Report of the Group for the six months ended 31 December 2007 has been prepared inaccordance with the IAS 34 "Interim Financial Reporting" and International Financial Reporting Standards ('IFRS')as adopted for use in the European Union ('EU') and in accordance with the Disclosure and Transparency Rules of theFinancial Services Authority. The Interim Report does not include all the information and disclosures required in annual financial statements, andshould be read in conjunction with the Group's annual financial statements for the year ended 30 June 2007. The financial information contained in this Interim Report does not constitute statutory accounts as defined insection 240 of the Companies Act 1985. The financial information contained in this Interim Report has been neither audited nor reviewed by the auditors. The comparative figures for the year ended 30 June 2007 have been extracted from the 2007 annual financial statement,prepared in accordance with IFRS, as adopted for use in the EU and as applied in accordance with the provision of theCompanies Act 1985, which have been filed with the Registrar of Companies. The auditors' report on these accounts wasunqualified and did not contain a statement under section 237(2) or 237(3) of the Companies Act 1985. This Interim Report was approved for issue by the Board of Directors on 28 February 2008. 2. Accounting policiesThe accounting policies adopted are consistent with those of the annual financial statements for the year ended 30June 2007, as described in those financial statements. Changes to accounting standards and interpretations and their likely impact on the Group's future accounting policies are set out below: IFRS 7 'Financial instruments: disclosures' is effective for accounting periods beginning on or after 1 January 2007, and will therefore be applicable for the year ending 30 June 2008, and IFRS 8 'Operating segments', effective for accounting periods beginning on or after 1 January 2009, will be applicable in the year ending June 2010. These amendments to disclosure requirements will have no effect on the Group's reported results. The Group does not consider that any other standards or interpretations issued by the IASB, but not yet applicable, will have a significant impact on the Group's results. 3. Responsibility statementThe Directors confirm that this consolidated Interim Report has been prepared in accordance with IAS34 and that the Chairman's Statment herein includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year) and DTR 4.2.8R (disclosure of related party transactions and changes therein). 4. Segmental Analysis Unaudited Unaudited Audited Six months to Six months to Year to 31 December 31 December 30 June 2007 2006 2007 £000 £000 £000Revenue Continuing activities: ------------------------ Regeneration & Homes and Strategic Land 33,751 67,627 156,991 Capital Solutions 854 103 679 Services 9,734 8,989 17,483 Property 3,040 2,190 16,290 Construction Services 1,529 - 2,809 --------- --------- --------- 48,908 78,909 194,252 --------- --------- --------- Discontinued activities: -------------------------- Construction Services 6,874 49,012 59,982 --------- --------- --------- Total revenue 55,782 127,921 254,234 ========= ========= ========= (Loss)/profit on activities Regeneration & Homes and Strategic Land (712) (501) 4,072 Capital Solutions 722 1,566 1,649 Services 429 154 722 Property 270 1,656 4,612 Construction Services - - - --------- --------- --------- 709 2,875 11,055 Group overhead (3,140) (3,585) (5,354) Finance income 2,360 1,245 4,028 Finance costs (244) (810) (1,462) --------- --------- --------- Loss before tax (315) (275) 8,267 Tax 42 (190) (830) --------- --------- --------- (Loss) / profit for the period from continuing operations (273) (465) 7,437 Profit for the period from discontinued operations - 21,607 22,521 and gain on sale of discontinued operations (net of tax) --------- --------- --------- (Loss) / profit for the period attributable to equity (273) 21,142 29,958 holders of the parent company ========= ========= ========= 5. Discontinued operations In October 2006 the Group disposed of certain assets and liabilities of the Engineering Division to Black & Veatch Limited. Assets and liabilities relating to this operation were not classified as held for sale as at 30 June 2006 as they did not qualify for such treatment at that date. The trading activities for assets and liabilities that were not sold to Black & Veatch Limited are accounted for as discontinued operations. Certain assets and liabilities of the Building Contracting Division were classified as held for sale at 30 June 2005 under IFRS 5; these assets and liabilities were sold on 1 August 2005. The trading activities of the retained contracts of the Building Division, are accounted for as continuing operations during the period. Unaudited Unaudited Audited Six months to 31 Six months to 31 Year to 30 December 2007 December 2006 June 2007 £000 £000 £000 £000 £000 £000 Revenue 6,874 49,012 59,982Cost of sales (6,941) (50,641) (62,244) ------- ------- -------Gross loss (67) (1,629) (2,262) Administrative expenses 67 (2,587) (1,954) ------- ------- -------Operating loss - (4,216) (4,216) Gain on disposal of discontinued operations - 31,250 31,250Financial income - 150 - ------- ------- -------Profit before tax - 27,184 27,034 Tax Tax on discontinued operations for the period - - - Tax on gain on disposal of discontinued operations - (5,577) (4,513) ------- ------- ------- - (5,577) (4,513) Profit for the period from discontinued operations ------- ------- ------ - 21,607 22,521 ======= ======= ====== 6. Earnings per share From continuing and discountinued operationsThe calculation of the basic and diluted earnings per share is based on the following data: Earnings Unaudited Unaudited Audited Six months to Six months to Year to 31 December 31 December 30 June 2007 2006 2007 £000 £000 £000 Earnings for the purposes of basic earnings per share, being net profit attributable to equity holders of the parent(Loss)/profit fromcontinuing operations (273) (465) 7,437 Profit from discontinuedoperations - 21,607 22,521 ---------- -------- --------Earnings for the purposesof basic and dilutedearnings per share (273) 21,142 29,958 ========== ======== ======== Number of shares 2007 2006 2007 No. 000 No. 000 No. 000 Weighted average number of ordinary shares for the purposes ofbasic earningsper share 52,171 51,809 51,865Effect of dilutive potential ordinary shares:Share options 220 910 853 ---------- -------- --------Weighted average number of ordinary shares for the purposes ofdiluted earnings per share 52,391 52,719 52,718 ========= ======== ======== From continuing operations 2007 2006 2007 p p p Basic (0.52) (0.90) 14.34 ========= ======== ======== Diluted (0.52) (0.90) 14.11 ========= ======== ======== From discontinued operations 2007 2006 2007 p p p Basic 0.00 41.71 43.42 ========= ======== ======== Diluted 0.00 40.99 42.72 ========= ======== ======== From continuing and discontinued operations 2007 2006 2007 p p p Basic (0.52) 40.81 57.76 ========= ======== ======== Diluted (0.52) 40.10 56.83 ========= ======== ========7. Related Party Transactions During the period the Group provided goods and services to related parties totalling £1.3m (six months to 31 December 2006: £11.0m; 12 months to 30 June 2007: £22.9m). The amounts owed by related parties at 31 December 2007 totalled £33.2m (31 December 2006: £31.5m; 30 June 2007: £38.8m). This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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