2nd May 2007 07:02
Numis Corporation PLC02 May 2007 EMBARGOED FOR RELEASE 7:00 am Wednesday 2 May 2007 Numis Corporation Plc Interim Results for the six months ended 31 March 2007 Numis Corporation Plc ("Numis") a leading independent U.K. investment bankingand broking business today announces interim results for the six months ended 31March 2007. Financial Highlights and comparison with the same period last year • Revenue £39.4m (2006: £35.8m) +10% • Profit before tax and before non-recurring property costs £19.6m(2006: £16.8m) +17% • Profit before tax and after non-recurring property costs £18.1m(2006: £16.8m) +8% • Earnings per share before non-recurring property costs 13.5p(2006: 12.1p) +12% • Earnings per share 12.4p (2006: 12.1p) +2% • Interim dividend of 2.00p (2006: 1.25p) +60% Operational Highlights • Corporate client list increased to 104 and average marketcapitalisation now £200m • Core revenues from institutional clients up 52% • New York office now a significant contributor • First clients signed for Kazakh office • Excellent start to second half with all areas of the businessperforming strongly Commenting on the results, Oliver Hemsley, Chief Executive, said: "Numis today is a stronger and higher quality business. We are pleased with thegrowth in our institutional franchise and revenues, the number of new corporateclients we have attracted and the overall development of our business. We have had an excellent start to the second half, with our primary andsecondary businesses both performing well with a strong deal pipeline. We look forward with confidence to continued growth." Note: Profit before tax and before non-recurring property costs includes anadjustment to reflect the related impact on incentive payments. Incentivepayments are disclosed within administrative expenses on the face of the incomestatement. Contacts: Oliver Hemsley +44 20 7260 1000Bill Trent BrunswickGill Ackers +44 20 7396 5382Lucie-Anne Brailsford +44 20 7404 5959 CHIEF EXECUTIVE'SSTATEMENT Results During the six months ended 31 March 2007, revenue has risen to £39.4m (2006:£35.8m) and underlying profit before tax (before non-recurring property costs)rose to £19.6m (2006: £16.8m). Underlying earnings per share (beforenon-recurring property costs) were 13.5p (2006: 12.1p) while net assets haveincreased to £104.0m (September 2006: £91.7m). Cash balances are now £65.8m(September 2006: £74.9m). Review of Activities Dividend and Scrip Alternative The Board has decided to continue the rebalancing of the dividend towards a moreeven distribution and have declared an interim dividend of 2.00p per share(2006: 1.25p). The dividend will be payable on 4 July 2007 to all shareholderson the register at 11 May 2007. Shareholders will be offered the option toreceive shares instead of a cash dividend, the details of which will beexplained in a circular to accompany our interim report. Corporate Broking and Advisory It has been a busy six months for existing and new corporate clients of thegroup and the net number of corporate clients for whom we act has risen to 104(2006: 101) and their average market capitalisation is now approximately £200m(2006: £115m). During the period, our clients raised a total of £383m (2006:£443m) through 20 (2006: 25) transactions; and, it is pleasing to note thatapproximately 50% of these funds were raised on behalf of existing clients,reflecting the increasing strength and quality of our corporate clientele. High levels of M&A activity have resulted in a number of our clients leaving thequoted arena but we have been more than successful in replacing these with newhigh quality companies with 15 new clients signed during the period. Recentappointments include co-lead manager and joint broker for the forthcoming IPO ofthe highly respected financial adviser, Hargreaves Lansdowne. Placing commissions have fallen during the period as a result of the timing oftransactions, however, growth in our non-deal related income has more thancompensated for this. Numis also continues to develop and finance large, innovative transactions. InDecember 2006, Numis structured and raised £100m for Clean Energy Brazil, asugar cane and ethanol producer, which is already generating strong returns forinvestors. Paternoster UK Ltd, an insurance company established by Numis to takeover closed final salary pension schemes, has succeeded in attractingsignificant levels of business and is now perceived as a major player in thearea. Research, Sales and Execution Over the past 6 months we have continued to invest in improving the quality ofour research product and service and we are pleased to see early returns fromthis investment in sharply increased institutional commissions and marketrecognition in the Thomson-Extel survey*. The firm now has a strong capabilityin a broad range of sectors. * details of the results of the Thomson-Excel survey are given in our published2006 Annual Report and Accounts The market for objective research, particularly with the advent of unbundling,has shown that our investment in research capability has been well founded andwe continue to add teams and individuals in attractive sectors. Our execution capability continues to win valuable share of market, reinforcingour research franchise and enabling us to compete for corporate brokerships. Numis' focus on client service and facilitation has benefited the firm in anenvironment where the demarcation lines between investors and intermediaries areincreasingly blurred. We are benefiting from the growing appreciation byinvestors of the potential conflicts of interest within some investment banksand their proprietary trading activities. New York Office Our New York office is accelerating its growth and now accounts for 10% of ourtotal institutional commissions. We continue to receive a very positive responsefrom US institutions to our analysts and company roadshows in the US and weexpect to be able to continue the rapid growth of our business in New York. People Numis continues to seek high quality people to enable us to improve our serviceto clients and service our expanding client base. Numis is an increasinglyattractive choice for talented individuals who wish to work within a highquality, growing independent investment bank where they can participate in thedirection and success of the business. Current trading and outlook Over the last six months we have strengthened our business significantly. Wehave made an excellent start to the second half of the year with all areas ofour business performing strongly. We are well positioned to take advantage ofthe increasing globalisation of the London equity markets. Our pipeline of highquality transactions and our rapidly growing secondary market business give usconfidence for the future. Oliver HemsleyChief Executive2 May 2007 CONSOLIDATEDINCOME STATEMENTUNAUDITED FOR THE 6 MONTHS ENDED 31 MARCH 07 6 months ended 6 months ended Year ended 31 Mar 07 31 Mar 06 30 Sep 06 Restated Restated Notes Unaudited Unaudited Unaudited £'000 £'000 £'000 Revenue 2 37,526 35,671 72,028 Other operating income 1,867 94 181 ________ _______ _______Total revenue 39,393 35,765 72,209 Administrative expenses 3 (21,563) (20,931) (40,742) _______ _______ _______Underlying operating profit 17,830 14,834 31,467 Non-recurring property costs (2,196) - (200) _______ _______ _______Operating profit 15,634 14,834 31,267 Share of results ofassociates 696 720 1,500 Finance income 1,942 1,281 3,149 Finance costs (204) (73) (223) _______ _______ _______Profit before tax 18,068 16,762 35,693 Taxation (5,558) (4,546) (10,283) _______ _______ _______ Profit after tax 12,510 12,216 25,410 _______ _______ _______ Attributable to equityholdersof the parent 12,510 12,216 25,410 Earnings per share 4 Basic - before non-recurringproperty costs 13.5p 12.1p 25.3pBasic 12.4p 12.1p 25.2pDiluted 12.1p 11.7p 24.3p Memo - dividends paid 5 3,971 2,574 3,845 CONSOLIDATEDBALANCE SHEETUNAUDITED AS AT 31 MARCH 07 31 Mar 07 31 Mar 06 30 Sep 06 Restated Restated Notes Unaudited Unaudited Unaudited £'000 £'000 £'000Non-current assetsProperty, plant and equipment 6a 2,455 1,331 1,388Intangible assets 466 378 414Other investments 6b - 1,892 -Associates 2,905 1,738 2,209Derivative financial instruments 1,606 - 1,606Deferred tax 1,044 636 788 ___________ ___________ ___________ 8,476 5,975 6,405Current assetsTrade and other receivables 6c 134,763 175,124 148,318Trading investments 6d 38,075 14,030 24,196Pledged assets 6e 27,574 10,770 8,059Derivative financial instruments 2,765 1,404 1,066Cash and cash equivalents 65,807 68,237 74,899 ___________ ___________ ___________ 268,984 269,565 256,538Current liabilitiesTrade and other payables 6c (155,725) (181,377) (160,307)Financial liabilities (7,821) (5,288) (5,424)Provisions - - (200)Current income tax (5,475) (2,269) (2,080) ___________ ___________ ___________ (169,021) (188,934) (168,011) Net current assets 99,963 80,631 88,527 Non-current liabilitiesProvisions (4,471) (3,551) (3,207) ___________ ___________ ___________ Net assets 103,968 83,055 91,725 ___________ ___________ ___________EquityShare capital 5,313 5,295 5,295Share premium account 21,690 20,636 20,727Capital reserve 157 (31) 68Retained profits 76,808 57,155 65,635 ___________ ___________ ___________Equity attributable to equityholders of the parent 103,968 83,055 91,725 ___________ ___________ ___________ CONSOLIDATEDSTATEMENT OF CHANGES IN EQUITYUNAUDITED FOR THE 6 MONTHS ENDED 31 MARCH 06, YEAR ENDED 30 SEPTEMBER 06 AND 6MONTHS ENDED 31 MARCH 07 Share Share Capital Retained Total capital premium reserve profits £'000 £'000 £'000 £'000 £'000 Attributable to equity holdersof the parent at 1 October 2005 5,258 19,341 - 49,308 73,907New shares issued - scrip 37 1,295 1,332Profit after tax 12,216 12,216Dividends paid (2,574) (2,574)Exchange differences ontranslation (31) (31)of foreign operationsMovement in respect ofemployee share plans (1,795) (1,795) -------- -------- -------- -------- --------Attributable to equity holdersof the parent at 31 March 2006 5,295 20,636 (31) 57,155 83,055 -------- -------- -------- -------- -------- Attributable to equity holdersof the parent at 1 October 2005 5,258 19,341 - 49,308 73,907New shares issued - scrip 37 1,386 1,423Profit after tax 25,410 25,410Dividends paid (3,845) (3,845)Exchange differences ontranslation of foreign operations 68 68Movement in respect ofemployee share plans (5,238) (5,238) -------- -------- -------- -------- --------Attributable to equity holdersof the parent at 30 September 5,295 20,727 68 65,635 91,7252006 -------- -------- -------- -------- -------- Attributable to equity holdersof the parent at 1 October 2006 5,295 20,727 68 65,635 91,725New shares issued - scrip 18 963 981Profit after tax 12,510 12,510Dividends paid (3,971) (3,971)Exchange differences ontranslation of foreign operations 89 89Movement in respect ofemployee share plans 2,634 2,634 -------- -------- -------- -------- --------Attributable to equity holdersof the parent at 31 March 2007 5,313 21,690 157 76,808 103,968 -------- -------- -------- -------- -------- CONSOLIDATEDCASH FLOW STATEMENTUNAUDITED FOR THE 6 MONTHS ENDED 31 MARCH 07 6 months ended 6 months ended Year ended 31 Mar 07 31 Mar 06 30 Sep 06 Restated Restated Notes Unaudited Unaudited Unaudited £'000 £'000 £'000Cash flows from operatingactivities 7 (4,465) 17,876 41,925Interest paid (2) (66) (41)Taxation paid (2,209) (8,229) (14,009) _______ _______ _______Net cash from operatingactivities (6,676) 9,581 27,875 Investing activitiesPurchase of property, plantand equipment (1,976) (381) (805)Purchase of intangibleassets (56) (157) (306)Purchase of non-currentasset investments - (573) (5,695)Interest received 1,942 1,228 3,149Proceeds from sale ofnon-current assetinvestments - 61 -Dividends received fromassociates - - 150Dividends received fromother investments - 18 - _______ _______ _______Net cash (used in)/frominvesting activities (90) 196 (3,507) Financing activitiesProceeds from issue of sharecapital - 130 130Net movement in respect ofEmployee Benefit Trust * 535 - (6,508)Dividends paid (2,861) (1,221) (2,642) _______ _______ _______Net cash (used in)/fromfinancing (2,326) (1,091) (9,020) Net movement in cash andcash equivalents (9,092) 8,686 15,348 Opening cash and cashequivalents 74,899 59,551 59,551Net movement in cash andcash equivalents (9,092) 8,686 15,348 _______ _______ _______Closing cash and cashequivalents 65,807 68,237 74,899 _______ _______ _______ * In the six months to 31 March 2007 the Group effected purchases through theEmployee Benefit Trust of £893,000 and collected receipts from employees of£1,428,000 in relation to future prospective Employee Benefit Trust purchases.The total cash distribution to equity holders of the parent in the six monthperiod ending 31 March 2007 was £4,864,000, being the dividend paid during theperiod plus the above purchase of shares through the Employee Benefit Trust. NOTESTO THE FINANCIAL STATEMENTS Accounting policies 1. Basis of preparation The consolidated financial information contained within these financialstatements has been prepared in accordance with accounting policies which willbe adopted in presenting the full year annual report and accounts. The full yearannual report and accounts will be prepared for the first time in accordancewith International Financial Reporting Standards ("IFRS") as adopted by theEuropean Union. The Group has applied IFRS for the six month period ended 31 March 2007, withcomparative figures for the six month period ended 31 March 2006 also presentedunder IFRS as adopted by the EU. Figures presented are in thousands sterling. Inpreparing these consolidated financial statements, the Group has elected to takeadvantage of certain transitional provisions within IFRS 1 'First-time adoptionof International Financial Reporting Standards' ("IFRS 1") which offerexemptions from presenting comparative information in accordance with IFRS. Themost significant optional exemptions available and taken advantage of by theGroup are as follows •IFRS 2 'Share Based Payments' ("IFRS 2"); In accordance with IFRS 1, the new standard has been applied only to share options and equity instruments granted after 7th November 2002 that have not vested by 1st October 2005. •IAS 21 'The Effects of Changes in Foreign Exchange Rates' ("IAS 21"); In accordance with IFRS 1, cumulative translation differences arising on monetary items that form part of the Group's net investment in foreign operations are assumed to be zero at the date of transition. The financial statements are prepared under the historical cost convention withthe exception of financial instruments which are stated in accordance with IAS39 Financial Instruments: Recognition and Measurement. The Group has adopted IAS39 for the year beginning 1 October 2005 and therefore comparative figures arealso valued in accordance with IAS 39. The preparation of financial statements in conformity with generally acceptedaccounting principles requires the use of estimates and assumptions that affectthe reported amounts of assets and liabilities at the date of the financialstatements and the reported amounts of revenues and expenses during thereporting period. Although these estimates are based on management's bestknowledge of the amount, event or actions, actual results ultimately may differfrom those of estimates. Full details of the Group's accounting policies can be found in the Impact ofInternational Financial Reporting Standards ("IFRS") press release dated 2 May2007 on our website (http://www.numiscorp.com). This release also containsreconciliations from UK GAAP to IFRS of the opening Equity as at 1 October 2005,the Equity as at 30 September 2006 and Profit before Tax for the year ended 30September 2006 together with explanations of those reconciling items. NOTESTO THE FINANCIAL STATEMENTS 2. Revenue 6 months ended 6 months ended Year ended 31 Mar 07 31 Mar 06 30 Sep 06 Restated Restated Unaudited Unaudited Unaudited £'000 £'000 £'000Institutional trading profitsand commissions 18,339 12,048 17,556Corporate retainers 1,967 1,695 3,464Deal fees 7,049 4,781 8,980Placing commissions 10,171 17,147 42,028 _________ _________ _________ 37,526 35,671 72,028 _________ _________ _________ 3. Administrative expenses 6 months ended 6 months ended Year ended 31 Mar 07 31 Mar 06 30 Sep 06 Restated Restated Unaudited Unaudited Unaudited £'000 £'000 £'000Staff costs (excludingincentive payments) 9,352 8,422 15,666Non-staff costs (excluding non-recurringproperty costs) 6,192 5,505 12,026Incentive payments 6,019 7,004 13,050 _________ _________ _________ 21,563 20,931 40,742 _________ _________ _________ 4. Earnings per share Basic earnings per share is calculated on profit after tax of £12,510,000 (2006:£12,216,000) and 100,517,561 (2006: 100,734,605) ordinary shares being theweighted average number of ordinary shares in issue during the period. Dilutedearnings per share assumes that options outstanding at the end of the financialperiod were exercised at the beginning of the period for options where theexercise price was less than the average price of the shares during the period. NOTESTO THE FINANCIAL STATEMENTS 6 months ended 6 months ended Year ended 31 Mar 07 31 Mar 06 30 Sep 06 Restated Restated Unaudited Unaudited Unaudited £'000 £'000 £'000Weighted average number of ordinary sharesin issue during the period -basic 100,518 100,735 100,712Effect of options over ordinary shares 3,091 3,890 3,730Diluted number of ordinary shares 103,609 104,625 104,442 Underlying earnings per share of 13.5p for the six months ended 31 March 2007 iscalculated on profit after tax of £13,586,000 having been adjusted for the posttax impact of non recurring property costs and related incentive paymentaccruals. 5. Dividends 6 months ended 6 months ended Year ended 31 Mar 07 31 Mar 06 30 Sep 06 Restated Restated Unaudited Unaudited Unaudited £'000 £'000 £'000Final dividend year ended 30Sep 2005 (2.525p) 2,574 2,574Interim dividend year ended 30Sep 2006 (1.25p) 1,271Final dividend year ended 30Sep 2006 (3.75p) 3,971 ________ ________ ________Distribution to equity holdersof the parent 3,971 2,574 3,845 ________ ________ ________ The board declares the payment of an interim dividend of 2.00p per share,£2,027,000 (2006: 1.25p per share). The dividend will be payable on 4 July 2007to all shareholders on the register on 11 May 2007. These financial statementsdo not reflect this dividend payable. 6. Balance sheet items (a) Property, plant and equipment In the six months to 31 March 2007 the Group acquired £1,976,000 of property,plant and equipment largely as a result of the move to our new premises inPaternoster Square. Also during the period a £512,000 impairment write-off wasrecorded in relation to previously capitalised leasehold improvements made toour former premises in Cheapside. NOTESTO THE FINANCIAL STATEMENTS (b) Other investments As set out in the published 2006 Annual Report and Accounts, holdings previouslyclassified as non-current asset investments were reviewed during the year ended30 September 2006 and it was concluded that these particular investments were nolonger likely to be held for continuing long term use within the business. Hencethey were reclassified and reported as current asset investments. In the balancesheet prepared under IFRS such investments are reported within tradinginvestments. (c) Trade and other receivables and Trade and other payables Under UK GAAP, client, broker and other counterparty balances representingbought and sold securities transactions were shown net where a netting agreementwas in place. Under IFRS, netting is only permitted when an enterprise has alegally enforceable right to set off the amounts and intends either to settle ona net basis, or to realise the asset and settle the liability simultaneously.Although our netting agreements convey an enforceable right to net settlement,in practice such balances are settled on an individual basis as and when therelevant underlying securities are transferred. Therefore such assets andliabilities on the Group's balance sheet are now shown gross. (d) Trading investments In the six months to 31 March 2007 the Group acquired 10,630,572 shares in CleanEnergy Brazil Plc, an AIM listed company, at the listing price of £1 per share. (e) Pledged assets The Group enters stock borrowing arrangements with certain institutions whichare entered into on a collateralised basis with securities or cash advanced orreceived as collateral. Under such arrangements a security is purchased with acommitment to return it at a future date at an agreed price. The securitiespurchased are not recognised on the balance sheet and the transaction is treatedas a secured loan made for the purchase price. Where cash has been used toeffect the purchase, the purchase is recorded as a pledged asset on the balancesheet. The balance as at 31 March 2007 includes £19,631,000 related to aspecific individual transaction entered into on 28 March 2007 and settled infull on 2 April 2007 at which time the level of pledged assets reduced to£8,025,000. NOTESTO THE FINANCIAL STATEMENTS 7. Reconciliation of operating profit to net cash from operating activities 6 months ended 6 months ended Year ended 31 Mar 07 31 Mar 06 30 Sep 06 Restated Restated Unaudited Unaudited Unaudited £'000 £'000 £'000Operating profit 15,634 14,834 31,267Impairment of property, plantand equipment 511 - 108Impairment of non-current assetinvestments - - 27Transfer from non-current to current assetinvestments - - 7,232Depreciation 402 365 799(Increase)/decrease in current asset tradinginvestments (11,482) 3,029 (7,001)Decrease/(increase) in trade and otherreceivables 15,202 (59,283) (29,061)Increase in pledged assets (19,515) (2,913) (202)(Decrease)/increase in trade and otherpayables and provisions (3,518) 62,719 41,505Increase in derivatives (1,699) (875) (2,143)Other non-cash movements - - (606) _______ _______ _______Net cash from operatingactivities (4,465) 17,876 41,925 _______ _______ _______ NOTESTO THE FINANCIAL STATEMENTS 8. IFRS Reconciliation (a) Income statement for the six months ended 31 March 2006 - effect ofIAS 1 "Presentation of Financial Statements" on UK GAAP balances UK GAAP balances in UK GAAP format IFRS UK GAAP balances in IFRS format adjustments £'000 £'000 £'000 Operating income 36,755 (36,755) 36,665 36,665 Revenue 94 94 Other operating incomeAdministrative expenses (20,322) (20,322) Administrative expenses -------- ----------- --------Operating profit 16,433 4 16,437 Operating profit Share of associatedundertaking'soperating profit 1,029 (309) 720 Share of results of associatesInterest receivableand similar income 1,250 1,250 Finance incomeInterest payableand similar charges (69) (4) (73) Finance costs -------- ----------- --------Profit on ordinaryactivities before tax 18,643 (309) 18,334 Profit before taxTax on profit onordinary activities (5,336) 309 (5,027) Taxation -------- ----------- --------Profit on ordinaryactivities after taxation 13,307 13,307 Profit after tax -------- ----------- -------- Attributable to: Attributable to:Equity holders ofthe parent 13,307 13,307 Equity holders of the parent Dividends (1,324) (1,324) Memo - Dividends Earnings per share Earnings per shareBasic 13.2p 13.2p BasicDiluted 12.7p 12.7p Diluted NOTESTO THE FINANCIAL STATEMENTS (b) Income statement for the six months ended 31 March 2006 - effect ofother standards UK GAAP balances in IFRS format IFRS adjustments IFRS Financial Employee Dividends Provisions Foreign Intangible instruments benefits exchange assets IAS39 IAS19 IAS10 IAS37 IAS21 IAS38 IFRS2 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Revenue 36,665 (994) 35,671Other operating income 94 94Administrative expenses (20,322) (113) (496) (20,931) ------ ------- ------- ------ ------- ------- ------- --------Operating Profit 16,437 (994) (113) - (496) - - 14,834 Share of results of associates 720 720Finance income 1,250 31 1,281Finance costs (73) (73) ------ ------- ------- ------ ------- ------- ------- --------Profit before tax 18,334 (994) (113) - (496) 31 - 16,762Taxation (5,027) 298 34 149 (4,546) ------ ------- ------- ------ ------- ------- ------- --------Profit after tax 13,307 (696) (79) - (347) 31 - 12,216 ------ ------- ------- ------ ------- ------- ------- -------- Attributable to:Equity holders of the parent 13,307 (696) (79) - (347) 31 - 12,216 Memo - Dividends (1,324) (1,250) (2,574) Earnings per shareBasic 13.2p 12.1pDiluted 12.7p 11.7p NOTESTO THE FINANCIAL STATEMENTS (c) Balance sheet as at 31 March 2006 - effect of IAS 1 "Presentation ofFinancial Statements" on UK GAAP balances UK GAAP balances in IFRS adjustments UK GAAP balances in IFRS formatUK GAAP format Debtors Investments Creditors ProvisionsFixed assets £'000 £'000 £'000 £'000 £'000 £'000 Non-current assetsTangible fixedassets 1,709 1,709 Property, plant and equipmentFixed assetinvestments 1,892 1,892 Other investmentsInvestment inassociatedundertakings 1,738 1,738 Associate 721 721 Deferred tax ------ ------ ------- ------ ------- ------ 5,339 721 - - - 6,060Current assets Current assetsDebtors 101,629 (11,491) 90,138 Trade and other receivablesInvestments 18,802 (5,870) 12,932 Trading investments 10,770 10,770 Pledged assets 1,404 1,404 Derivative financial instrumentsCash at bankand in hand 63,771 4,466 68,237 Cash and cash equivalents ------ ------ ------- ------ ------- ------ 184,202 (721) - - - 183,481Creditors Current liabilitiesAmountsfalling duewithin one year 107,269 (7,873) (1,741) 97,655 Trade and other payables 5,288 5,288 Financial liabilities 2,585 2,585 Current income tax ------ ------ ------- ------ ------- ------ 107,269 - - - (1,741) 105,528 Net current assets 76,933 (721) - - 1,741 77,953 Net current assets 189,541 - - - - 189,541 Total assets Non-current liabilitiesProvisions - 1,741 1,741 Provisions ------ ------ ------- ------ ------- ------Net assets 82,272 - - - 82,272 Net assets ------ ------ ------- ------ ------- ------ Capital and Reserves EquityShare capital 5,295 5,295 Share capitalShare premium account 20,636 20,636 Share premium account - Capital reservesProfit andloss account 56,341 56,341 Retained earnings ------ ------ ------- ------ ------- ------Shareholders funds 82,272 - - - - 82,272 Equity attributable to equity ------ ------ ------- ------ ------- ------ holders of the parent NOTES TO THE FINANCIAL STATEMENTS (d) Balance sheet as at 31 March 2006 - effect of other standards UK GAAP balances in IFRS format IFRS adjustments IFRS Opening balance Gross up Financial Employee Dividends Provisions Foreign Intangible sheet instruments benefits exchange assets IFRS adj * IAS32 IAS39 IAS19 IAS10 IAS37 IAS21 IAS38 IFRS 2 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Non-current assetsProperty,plant andequipment 1,709 (309) (69) 1,331Intangibleassets 309 69 378OtherInvestments 1,892 1,892Associate 1,738 1,738Deferred tax 721 (234) 149 636 ------ ------ ------ ------- ------ ------- ------ ------ ------ ------ 6,060 (234) - - - - 149 - - 5,975Current assetsTrade andotherreceivables 90,138 33,899 51,140 (53) 175,124TradingInvestments 12,932 2,092 (994) 14,030Pledged Assets 10,770 10,770Derivativefinancialinstruments 1,404 1,404Cash and cashequivalents 68,237 68,237 ------ ------ ------ ------- ------ ------- ------ ------ ------ ------ 183,481 35,991 51,140 (994) (53) - - - - 269,565Current liabilitiesTrade andother payables 97,655 33,846 51,140 60 (1,324) 181,377FinancialLiabilities 5,288 5,288Current incometax 2,585 16 (298) (34) 2,269 ------ ------ ------ ------- ------ ------- ------ ------ ------ ------ 105,528 33,862 51,140 (298) 26 (1,324) - - - 188,934 Net currentassets 77,953 2,129 - (696) (79) 1,324 - - - 80,631 Total assets 189,541 35,757 51,140 (994) (53) - 149 - - 275,540 Non-current liabilitiesProvisions 1,741 1,314 496 3,551 ------ ------ ------ ------- ------ ------- ------ ------ ------ ------Net Assets 82,272 581 - (696) (79) 1,324 (347) - - 83,055 ------ ------ ------ ------- ------ ------- ------ ------ ------ ------EquityShare capital 5,295 5,295Share premiumaccount 20,636 20,636Capitalreserves - (31) (31)Retainedearnings 56,341 581 (696) (79) 1,324 (347) 31 57,155 ------ ------ ------ ------- ------ ------- ------ ------ ------ ------Equityattributableto equityholders of the parent 82,272 581 - (696) (79) 1,324 (347) - - 83,055 ------ ------ ------ ------- ------ ------- ------ ------ ------ ------ * As at 1 October 2005 NOTESTO THE FINANCIAL STATEMENTS (e) Cash flow statement for the six months ended 31 March 2006 - effectof IFRS on UK GAAP cash flow statement UK GAAP balances in IFRS adjustment IFRSIFRS format Financial Employee Provisions instruments benefits IAS39 IAS19 IAS37 IFRS2 £'000 £'000 £'000 £'000 £'000 Operatingprofit 16,437 (994) (113) (496) 14,834Depreciation 365 365Increase indebtors (59,336) 53 (59,283)Decrease intradinginvestments 2,035 994 3,029Increase inpledged assets (2,913) (2,913)Increase inderivates (875) (875)Increase increditors andprovisions 62,163 60 496 62,719 -------- ------- ------- ------- --------Cash flows fromoperating activitiesCash generatedfrom operations 17,876 - - - 17,876Interest paid (66) (66)Taxation paid (8,229) (8,229) -------- ------- ------- ------- --------Net cash fromoperatingactivities 9,581 - - - 9,581 Investing activitiesPurchase offurniture,fixtures andequipment (381) (381)Purchase ofintangiblefixed assets (157) (157)Purchase ofnon-currentassetinvestment (573) (573)InterestReceived 1,228 1,228Proceeds fromsale ofnon-currentassetinvestments 61 61Dividendreceived fromotherinvestments 18 18 -------- ------- ------- ------- --------Net cash (usedin)/frominvestingactivities 196 - - - 196 Financing activitiesProceeds fromissue of sharecapital 130 130Dividends paid (1,221) (1,221) -------- ------- ------- ------- --------Net cash (usedin)/fromfinancing (1,091) - - - (1,091) Net increase incash and cashequivalents 8,686 - - - 8,686 -------- ------- ------- ------- -------- Opening cashand cashequivalents 59,551 59,551Net increase incash and cashequivalents 8,686 8,686 -------- ------- ------- ------- --------Closing cashand cashequivalents 68,237 68,237 -------- ------- ------- ------- -------- NOTESTO THE FINANCIAL STATEMENTS (f) Statement of changes in equity for the six months ended 31 March2006 - effect of IFRS on UK GAAP balances Share capital Share premium Capital Retained profit Total reserves £'000 £'000 £'000 £'000 £'000 Balance as at1 October 2005- UK GAAP 5,258 19,341 - 48,727 73,326 IFRS re-statement:IAS 39Financialinstruments 1,464 1,464IAS 19EmployeeBenefits 37 37IAS 37Provisions (920) (920) -------- -------- ------- ------- -------Balance as at1 October 2005- IFRS 5,258 19,341 - 49,308 73,907 New sharesissued 37 1,295 1,332Profit for theperiod 12,216 12,216Dividends paid (2,574) (2,574)Exchangedifferences ontranslation offoreign (31) (31)operationsAdjustment inrespect ofemployee shareplans (1,795) (1,795) -------- -------- ------- ------- -------Balance as at31 March 2006- IFRS 5,295 20,636 (31) 57,155 83,055 -------- -------- ------- ------- ------- Equityattributableto equityholders of theparent 5,295 20,636 (31) 57,155 83,055 9. Results for year ended 30 September 2006 The results for the year ended 30 September 2006 are based on the latestpublished audited accounts, but subject to unaudited restatement to IFRS. Theydo not constitute the statutory accounts as defined in Section 240 of theCompanies Act 1985. The published audited accounts have been delivered to theRegistrar of Companies and included the report of the auditors that wasunqualified. The Company SecretaryNumis Corporation PlcThe London Stock Exchange Building10 Paternoster SquareLondonEC4M 7LT This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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