7th Mar 2006 07:02
Interior Services Group PLC07 March 2006 ISG SHOWS STRONG GROWTH IN VOLUMES AND PROFITS Interior Services Group plc, ("ISG") the construction services specialist, hastoday announced its interim results for the six months to 31 December 2005. Financial Highlights 6 months 6 months ended ended 31 December 31 December 2005 2004 •Profit before tax (before goodwill) £3.57m £1.25m•Profit before tax £3.09m £1.22m•Fee income £36m £18m•Value of work performed £326m £179m•Basic earnings per share 7.48p 3.07p•Adjusted earnings per share (before goodwill) 9.34p 3.19p•Interim dividend 3.00p 2.75p•Net cash £21.4m £30.3m•Order book £778m £574m David King, Chief Executive of ISG, commented, " ISG has had an excellent start to the year. Our markets have improved, as wepredicted and, our order book has grown to a record £778 million. Volumes are upby over 80% and profits are up significantly by over 180%. We have demonstratedour confidence in the continuing strength of our markets by raising the interimdividend by 9% to 3p. " The Company is in an exciting phase of growth. We are delighted that all ofour operations in the Group are making excellent progress. We have worked hardto diversify and broaden the spread of our projects in the regions. I am pleasedthat the recently acquired businesses have bedded down as part of the Groupextremely well. We look forward to reporting further positive progress later inthe year. " ISG is looking to the future with increasing confidence. In June of this yearDavid Lawther, our current Finance Director, will succeed me as Chief Executive.I am certain that he and the Board will continue to drive the Company forward inthese stimulating times." - ends- Date: 7 March 2006 For further information please contact: Interior Services Group PLC David King, Chief Executive 020 7392 5251David Lawther, Group Financial Director 020 7392 5307Web: www.isgplc.com--------------------- cityPROFILE Jonathan Gillen 020 7448 3244Andrew Harris CEO HALF YEAR STATEMENT The strong improvement in trading witnessed in the second half of the lastfinancial year has continued to gather momentum with profits before tax andgoodwill in the first half to 31 December 2005 increasing to £3.6m (2004:£1.2m). Included in these results is a 3-month operating profit contributionbefore goodwill of £1.2m from the Propencity Group, acquired on 28 September2005. This significant profit improvement was achieved on volumes of £326m (2004:£179m), up over 80%, as the group's substantially increased order book startedto flow through to turnover. Operating cash flow remained strong, resulting ingross cash of £31.8m (2004: £30.3m). Net cash, after a £9.2m loan to finance thePropencity acquisition, was £21.4m. The interim dividend is being increased by9% to 3.0p and will be paid on 11 April 2006 to shareholders on the register on17 March 2006. Strategic Developments Our three priorities for the last six months have been to: •Conclude the acquisition of Propencity Group as part of our strategyfor Regional growth The £200m p.a. turnover Propencity Group was acquired for an initialconsideration of £12.5m on 28 September 2005. Propencity trades under threebrand names: - Totty Construction Group - a regional construction services group focused on the North of England serving the public, residential and commercial sectors. - Jackson Construction Group - a regional construction services group concentrating on the East of England serving the public, social housing and commercial sectors. - Dean & Bowes - a fitting-out and refurbishment service provider specialising in the retail market. Under the terms of the acquisition there is a potential deferred consideration,based on the achievement of minimum and maximum profit targets to 30 June 2006which can increase the total consideration to £16.5m. Following the acquisition,Philip Brierley, the CEO of Propencity joined the ISG Board. •Take advantage of market conditions to deliver organic growth To benefit from improving market conditions in late 2004, we expanded the ISGInteriorExterior offering in the Regions to include New Build and Refurbishmentservices as well as our existing Fit Out service. The new management teambrought in to do this is now well established and has started to grow thebusiness in line with our projections. Their most recent significant success isfor the £25m redevelopment of Doncaster Racecourse. Organic growth in London during the first half has focused on the development ofa new Fit Out team to tackle projects of £1m - £5m, and this team has had someinitial success in taking the InteriorExterior brand into a new market segment.In the longer term it will not only produce growth but also improve ourresilience to fluctuations in the large scale Fit Out market where we have beentraditionally focused. •Further develop the potential of our overseas investments In Europe our partner Alpha has been responsible for day-to-day running of theParis and Frankfurt offices. This arrangement works well and the businesses havebenefited from cross-selling opportunities. Alpha, whose origins are in high endretail Fit Out, has relationships with most of France's luxury brands businessesand we have started another JV with them in London to serve their clients here.This 51% Alpha / 49% ISG JV opens up a further niche in the London Fit Outmarket. We reported in September 2005 that the rationale for our 22% holding in ISG Asiawas being reviewed due to the non-aligned objectives of our partner. Whilst someuncertainty remains, we are now hopeful that we will be able to structure a moresubstantial involvement of ISG in ISG Asia that will work for both parties inthe longer term. Trading Our business carries out work for occupiers fitting out space, and for ownerswho build it or refurbish it. The following is a summary of the fee income weearn from managing those projects, and the gross value of work performed onthose projects: Gross Value of6 months to 31 December Fee Income Work Performed 2005 2004 2005 2004 £m £m £m £mLondon•Fit Out 10.2 6.7 111 67•Refurb 6.8 4.2 77 39•New Build 5.4 3.9 65 38Regions•Propencity 8.6 - 44 -•InteriorExterior 3.1 2.3 18 20Overseas•Asia 1.0 0.8 8 8•Europe 0.6 0.5 3 7 Total 35.7 18.4 326 179 Fee Income grew strongly over the corresponding period last year, up 94% at£35.7m (2004: £18.4m) on volumes, also up substantially, of £326m (2004: £179m).This substantial increase in group fee income includes a first time contributionto fee income of £8.6m from Propencity Group on volumes of £44m. ExcludingPropencity, fee income and volumes still increased by 47% and 57% respectively. In London a strong performance in all three services, but especially in Fit Outand in Refurbishment, resulted in fee income increasing by over 50%. In the Regions the new InteriorExterior team based in Manchester increased feeincome by 35% as newly won projects started on site. Volumes in Propencity werein line with our expectations at £44m. Profit and fee income derived from thesevolumes was higher than would normally be expected on an annualised basis due tothe seasonal bias to trading in Dean & Bowes in the fourth quarter of thecalendar year. In Europe fee income improved by 20%, despite lower volumes, with profits up 86%at £444k over the same period last year. Fees earned in Asia increased by 25% onlevel volumes resulting in a modest profit of £32k. This is a welcomeimprovement after a loss of £81k in the same period last year. Collectively this much improved trading position resulted in the margin on feeincome across the Group increasing from 6.8% to 10.0%. Management With the Group's growth firmly re-established, it is important to put in placethe management team which will take ISG to the next level. After 17 yearsrunning the business I co-founded in 1989, now is the right time for newleadership. Having relinquished the Chairmanship in 2004, at the end of thisfinancial year I will step down from the Board. The Board is delighted toannounce that David Lawther, currently Finance Director, is to become the newCEO. The Board and I have worked closely with David for over five years and weare delighted that he has accepted the role. He knows our sector, our clientsand, of course, our people. However, I will not be severing links with theCompany entirely as I have been asked to continue in a consultancy role. I willalso be maintaining my involvement with ISG in Asia. Prospects The Group's total order book has continued to grow, up from £574m in December2004 to £778m in December 2005 after including the Propencity order book of£170m. There is a continuing overall strong demand in all our sectors andgeographies whether publicly or privately funded. In London the higher level of take up of offices by occupiers over the last 18months looks set to continue, with a number of significant projects soon to beawarded. Owners of property have also started to commit to an increasing numberof office projects in London. Regionally, we are likely to benefit from our organic growth plans into newproducts as well as from a strong market in non-PFI publicly funded projectswhich is important to the businesses acquired through Propencity. The outlook for the business is therefore very positive. Volumes in the secondhalf of this year are likely to increase further. Combined with a bias towardshigher profitability in the second half, results for the full year are likely tobe ahead of current market expectations. David KingChief Executive CONSOLIDATED PROFIT AND LOSS ACCOUNT6 months ended 31 December 2005Unaudited (Audited) 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2005 2004 2005 Notes £'000 £'000 £'000 Gross value of work performed 2 325,880 179,427 385,372Less: relating to constructionmanagement (33,479) (12,384) (28,157)share of joint ventures' andassociates' turnover (4,937) (3,666) (8,237)-------------------------------------------------------------------------------- TURNOVER Continuing operations 243,788 163,377 348,978Acquired operations 43,676 - --------------------------------------------------------------------------------- Group turnover 2 287,464 163,377 348,978Cost of sales (274,431) (156,972) (334,742)--------------------------------------------------------------------------------Gross profit 13,033 6,405 14,236Administrative expenses:-------------------------------------------------------------------------------- Amortisation of goodwill (482) (30) (60)Other administrative expenses (10,226) (5,867) (11,494)-------------------------------------------------------------------------------- (10,708) (5,897) (11,554)-------------------------------------------------------------------------------- OPERATING PROFIT-------------------------------------------------------------------------------- Continuing operations 1,585 508 2,682Acquired operations 740 - --------------------------------------------------------------------------------- Group operating profit - continuingoperations 2,325 508 2,682Share of operating profit in jointventures and associates 127 60 184-------------------------------------------------------------------------------- Total operating profit 2,452 568 2,866Profit on disposal of subsidiaries - - 12Net interest receivable and similarincome 637 650 1,374-------------------------------------------------------------------------------- PROFIT ON ORDINARY ACTIVITIESBEFORE TAXATION 2 3,089 1,218 4,252Tax on profit on ordinary activities (1,151) (444) (1,468)-------------------------------------------------------------------------------- PROFIT FOR THE FINANCIAL PERIOD/YEAR 1,938 774 2,784================================================================================ Basic earnings per ordinary share 5 7.48p 3.07p 10.99p-------------------------------------------------------------------------------- Diluted earnings per ordinary share 5 7.41p 3.05p 10.93p-------------------------------------------------------------------------------- Proposed ordinary dividends per share 4 3.00p 2.75p 9.00p-------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEET31 December 2005Unaudited (Audited) 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2005 2004 2005 Restated * Restated * Notes £'000 £'000 £'000 FIXED ASSETSIntangible assets 34,063 931 901Tangible fixed assets 2,419 661 573Investment in associates 1,329 1,151 1,251-------------------------------------------------------------------------------- TOTAL FIXED ASSETS 37,811 2,743 2,725-------------------------------------------------------------------------------- CURRENT ASSETSStocks 2,137 115 122Debtors: amounts falling duewithin one year 115,565 53,341 64,007Debtors: amounts falling dueafter more than one year 7,523 6,557 6,098Cash at bank and in hand 32,751 30,364 34,149-------------------------------------------------------------------------------- 157,976 90,377 104,376CREDITORS: amounts fallingdue within one year (171,447) (79,739) (92,342) NET CURRENT(LIABILITIES)/ASSETS (13,471) 10,638 12,034--------------------------------------------------------------------------------TOTAL ASSETS LESS CURRENTLIABILITIES 24,340 13,381 14,759--------------------------------------------------------------------------------CREDITORS: amounts fallingdue after one year (7,316) - --------------------------------------------------------------------------------- TOTAL NET ASSETS 17,024 13,381 14,759================================================================================ CAPITAL AND RESERVESCalled up share capital 271 262 262Share premium account 8 11,480 9,482 9,574Other reserves 8 436 436 436Own shares 8 (1,568) (1,570) (1,569)Profit and loss account 8 6,405 4,771 6,056-------------------------------------------------------------------------------- TOTAL EQUITY SHAREHOLDERS'FUNDS 7 17,024 13,381 14,759================================================================================ * Comparative figures have been restated (see note 1). CONSOLIDATED CASH FLOW STATEMENT6 months ended 31 December 2005Unaudited (Audited) 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2005 2004 2005 Notes £'000 £'000 £'000 Net cash inflow/(outflow) fromoperating activities 9 5,179 (1,797) 455Dividends from associates 57 66 121Returns on investments andservicing of finance 10 632 493 1,079Taxation (584) 81 (413)Capital expenditure andfinancial investment 10 (215) (153) (232)Acquisitions and disposals 10 (15,244) 1,464 3,537Equity dividends paid (1,660) (1,380) (2,080)-------------------------------------------------------------------------------- Cash outflow/(inflow) beforefinancing (11,835) (1,226) 2,467-------------------------------------------------------------------------------- Financing:Issue of shares (net) 137 203 295Capital element of paymentsunder hire purchase contracts (5) - -Bank loans 9,882 - -Repayment of long term debt (485) - --------------------------------------------------------------------------------- Net cash inflow from financing 9,529 203 295-------------------------------------------------------------------------------- (Decrease)/increase in cash inthe period/year 11 (2,306) (1,023) 2,762================================================================================ Reconciliation of net cash flow to movement in net funds (Note 11): (Decrease)/increase in cash inthe period/year (2,306) (1,023) 2,762Cash inflow from debt financing (9,388) - --------------------------------------------------------------------------------- Change in net debt resultingfrom cash flows (11,694) (1,023) 2,762Loans and hire purchasecontracts acquired withsubsidiary (1,012) - -Change in net debt resultingfrom non-cash changes (4) - 72-------------------------------------------------------------------------------- (12,710) (1,023) 2,834Net cash brought forward 34,149 31,315 31,315-------------------------------------------------------------------------------- Net cash carried forward 21,439 30,292 34,149================================================================================ CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES6 months ended 31 December 2005Unaudited (Audited) 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2005 2004 2005 £'000 £'000 £'000Profit for the financial period/year:Group 1,860 756 2,682Joint ventures and associates 78 18 102-------------------------------------------------------------------------------- 1,938 774 2,784 Currency translationdifferences: Subsidiaries 14 35 (8) Currency translationdifferences: Joint ventures andassociates 57 (12) 6-------------------------------------------------------------------------------- Total recognised gains and lossesrelating to the period/year 2,009 797 2,782================================================================================ Notes to the AccountsUnaudited 1. ACCOUNTING POLICIES The Interim Accounts, which are unaudited, have been prepared on the basis ofthe accounting policies set out in the 2005 group accounts with the exception of the adoption of Financial Reporting Standard 21 Events After the Balance Sheet Date (FRS21).The adoption of FRS21 has resulted in the group restating its closing net assets for the prior periods to exclude dividends proposed but not yet declared at the balance sheet date. As a result the closing net assets increased at 31 December 2004 by £695,000 and at 30 June 2005 by £1,660,000. The opening net assets for the six month period ended 31 December 2004 increased by £1,380,000. 2. SEGMENTAL INFORMATIONGross value of work performed, turnover and profit/(loss) before taxation may be analysed as follows: (Audited) 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2005 2004 2005 £'000 £'000 £'000 Gross value of work performed by origin and destination:United Kingdom 314,699 164,095 360,230Europe 2,849 7,001 8,604Asia 8,332 8,331 16,538-------------------------------------------------------------------------------- 325,880 179,427 385,372================================================================================ Turnover by origin and destination:United Kingdom 285,724 157,568 342,690Europe 2,849 7,001 8,604Asia 3,828 2,474 5,921-------------------------------------------------------------------------------- 292,401 167,043 357,215Less: Share of joint ventures'and associates' turnover (4,937) (3,666) (8,237)-------------------------------------------------------------------------------- 287,464 163,377 348,978================================================================================ Profit/(loss) on ordinary activities before taxation:United Kingdom 2,613 1,060 3,954Europe 444 239 331Asia 32 (81) (33)-------------------------------------------------------------------------------- 3,089 1,218 4,252================================================================================ Fee income, which we consider to be a key indicator, is derived as follows: Turnover 287,464 163,377 348,978Trade contractor costs recharged (252,322) (145,443) (309,945)-------------------------------------------------------------------------------- 35,142 17,934 39,033Interest receivable 552 497 1,079Less: Attributable to minority interests - (2) --------------------------------------------------------------------------------- Total fee income 35,694 18,429 40,112================================================================================ The majority of net assets are held in the United Kingdom. The group has one class of business which is to provide construction services to its customers in the UK and internationally. In accordance with industry practice, gross value of work performed includes £33,479,000 (December 2004 - £12,384,000; June 2005 - £28,157,000) in respect of the construction costs of projects on which the company acts as construction manager. These construction costs are billed directly to the client and are not invoiced via the group. 3. RECONCILIATION OF ADJUSTED OPERATING PROFIT AND ADJUSTED PROFIT BEFORE TAXATION (Audited) 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2005 2004 2005 £'000 £'000 £'000 Total operating profit 2,452 568 2,866Amortisation of goodwill 482 30 60-------------------------------------------------------------------------------- Adjusted operating profit 2,934 598 2,926================================================================================Profit before taxation 3,089 1,218 4,252Amortisation of goodwill 482 30 60Profit on disposal of subsidiaries - - (12)--------------------------------------------------------------------------------Adjusted profit beforetaxation 3,571 1,248 4,300================================================================================ We use adjusted operating profit and adjusted profit before taxation as measuresto facilitate comparisons between periods. 4. EQUITY DIVIDENDS PROPOSED (Audited) 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2005 2004 2005 £'000 £'000 £'000Proposed ordinary dividends on equityshares 820 695 1,665================================================================================Proposed ordinarydividends per share 3.00p 2.75p 9.00p The proposed interim dividend of 3p per share was approved by the Board on 6March 2006 and will be paid on 11 April 2006. As required by FRS21, the dividendhas not been included as a liability as at 31 December 2005. 5. EARNINGS PER SHARE (Audited) 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2005 2004 2005 £'000 £'000 £'000 Profit for the financial period/year 1,938 774 2,784-------------------------------------------------------------------------------- Basic and diluted earnings attributable toordinary shareholders 1,938 774 2,784Amortisation of goodwill 482 30 60Profit on disposal ofsubsidiaries - - (12)--------------------------------------------------------------------------------Adjusted earnings attributable to ordinaryshareholders 2,420 804 2,832================================================================================ Number Number Number '000 '000 '000Weighted average number of ordinary shares 25,899 25,236 25,338Dilutive share options 247 132 124-------------------------------------------------------------------------------- Diluted weighted average number of ordinary shares 26,146 25,368 25,462================================================================================ Basic earnings per ordinary share 7.48p 3.07p 10.99p-------------------------------------------------------------------------------- Diluted earnings per ordinary share 7.41p 3.05p 10.93p-------------------------------------------------------------------------------- Adjusted basic earnings per ordinary share before goodwill amortisation and profit on disposal of subsidiaries 9.34p 3.19p 11.18p-------------------------------------------------------------------------------- Adjusted diluted earnings per ordinary share before goodwill amortisation and profit on disposal of subsidiaries 9.26p 3.17p 11.12p-------------------------------------------------------------------------------- 6. BORROWINGS Borrowings are included in the balance sheet as part of creditors due within oneyear and creditors due after one year. (Audited) 31 December 31 December 30 June 2005 2004 2005 £'000 £'000 £'000 Bank overdrafts 908 - -Bank loans 10,347 - -Obligations under hire purchase contracts 57 - --------------------------------------------------------------------------------- 11,312 - -================================================================================ Analysis of repaymentsBank loans and overdrafts:within one year on demand 4,215 - -between one and two years 1,940 - -between two and five years 5,335 - -Obligations under hire purchase contractswithin one year on demand 57 - -Less: Unamortised finance costs ofdebt (235) - --------------------------------------------------------------------------------- 11,312 - -================================================================================ 7. RECONCILIATION OF MOVEMENTS IN CONSOLIDATED SHAREHOLDERS' FUNDS (Audited) 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2005 2004 2005 £'000 £'000 £'000 Profit for the financial period/year 1,938 774 2,784Equity dividends paid (1,660) (1,380) (2,080)-------------------------------------------------------------------------------- 278 (606) 704Foreign exchange profit/(loss) 71 23 (2)Movement in own shares 1 3 4Proceeds from share issue 1,915 203 295-------------------------------------------------------------------------------- Net addition to shareholders'funds 2,265 (377) 1,001 Opening shareholders' fundsas previously stated 13,099 12,378 12,378impact of FRS21 adoption * 1,660 1,380 1,380-------------------------------------------------------------------------------- Opening shareholders'funds as restated * 14,759 13,758 13,758--------------------------------------------------------------------------------Closing shareholders'funds 17,024 13,381 14,759================================================================================ * See note 1 8. GROUP RESERVES Share Other Own Profit and premium reserves shares loss account £'000 £'000 £'000 £'000 Balance at 30 June 2005 aspreviously stated 9,574 436 (1,569) 4,396impact of FRS21 adoption * - - - 1,660--------------------------------------------------------------------------------At 1 July 2005 as restated * 9,574 436 (1,569) 6,056Profit for the period - - - 1,938Equity dividends paid - - - (1,660)Share premium arising onissue of shares 1,906 - - -Movement in own shares - - 1 -Exchange differences - - - 71--------------------------------------------------------------------------------Balance at 31 December 2005 11,480 436 (1,568) 6,405================================================================================ * See note 1 9. RECONCILIATION OF OPERATING PROFIT TO OPERATING CASH FLOWS (Audited) 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2005 2004 2005 £'000 £'000 £'000 Operating profit 2,325 508 2,682Depreciation charges 282 184 347Amortisation of goodwill 482 30 60(Profit)/loss on sale of tangiblefixed assets (2) (3) 2Decrease in stocks (76) 6 (1)Decrease in debtors (8,581) 4,060 (8,511)Decrease in creditors 10,749 (6,582) 5,876-------------------------------------------------------------------------------- Net cash inflow/(outflow) from operating activities 5,179 (1,797) 455================================================================================ 10. ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH FLOW STATEMENT (Audited) 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2005 2004 2005 £'000 £'000 £'000 Returns on investments and servicing of finance:Interest received 870 525 1,140Interest paid (238) (32) (61)================================================================================ Net cash inflow for returns oninvestments and servicing of finance 632 493 1,079================================================================================Capital expenditure and financial investment:Payments to acquire tangible fixed assets (217) (173) (284)Receipts from sales of tangible fixed assets 2 17 49Receipts from sales of financial investments - 3 3================================================================================Net cash outflow for capitalexpenditure and financial investment (215) (153) (232)================================================================================ Acquisitions and disposals:Purchase of subsidiary undertakings (11,537) - (72)Proceeds from sale of subsidiaryundertakings - 1,409 3,609Net overdraft acquired with subsidiaries (3,707) - -Proceeds from sale of joint venture - 55 ---------------------------------------------------------------------------------Net cash (outflow)/inflow for acquisitions and disposals (15,244) 1,464 3,537================================================================================ 11. ANALYSIS OF NET FUNDS Acquisitions 30 June excluding cash Non-cash 31 December 2005 Cash flow and overdrafts changes 2005 £'000 £'000 £'000 £'000 £'000 --------Cash at bank 34,149 (1,398) - - 32,751and in handOverdraft - (908) - - (908) -------- (2,306) --------Debt due after - (7,096) - - (7,096)one yearDebt due within one year - (2,297) (950) (4) (3,251)Hire purchase - 5 (62) - (57)contracts -------------------------------------------------------------------------------- 34,149 (11,694) (1,012) (4) 21,439================================================================================ 12. ACQUISITION OF SUBSIDIARY UNDERTAKING On 29 September 2005 the group acquired 100% of the issued share capital ofPropencity Group Limited. The fair value of the assets and liabilities acquired are detailed below and have been determined on a provisional basis as the group is currently in the process of finalising the balance sheet as at the date of acquisition. £'000Tangible fixed assets 1,911Stocks 1,939Other assets and liabilities (16,338)Bank overdrafts (3,707)Bank loans and hire purchase contracts (1,012)-------------------------------------------------------------------------------- (17,207)Goodwill 33,644-------------------------------------------------------------------------------- Total consideration 16,437================================================================================ Satisfied by:Cash 10,680Shares 1,778Deferred cash 1,743Deferred shares 1,379Directly attributable costs 857-------------------------------------------------------------------------------- 16,437================================================================================ 13. APPROVAL OF INTERIM ACCOUNTS The Interim Accounts were approved by the Board of Directors on 6 March 2006. 14. STATUS OF FINANCIAL INFORMATION IN THIS ANNOUNCEMENT The financial information contained in this report does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The financial information for the six months to 31 December 2005 and the six months to 31 December 2004 is unaudited and has not been reviewed by the group's auditors. The year ended 30 June 2005 comparative figures have been extracted from the audited accounts and restated to comply with FRS 21. The accounts for the year ended 30 June 2005, on which the auditors issued an unqualified auditreport and which did not contain a statement under either section 237 (2) or(3) of the Companies Act 1985, have been delivered to the Registrar of Companies. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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