31st Jul 2007 07:01
Jarvis Securities plc31 July 2007 JARVIS SECURITIES PLC ("Jarvis" or "the Company") Interim Report for the six months to 30 June 2007 Financial highlights •Revenue +30% £2.24M (30/6/06 £1.72M) •Profit before tax +71% £1.23M (30/6/06 £0.72M) •Basic earnings per share +73% 7.75p (30/6/06 4.49p) Key performance indicators (KPI) The Board introduced a number of key performance indicators (KPIs) in the 2006Annual Report as part of its improved reporting regime for the Group. These aredesigned to give stakeholders in the business a more rounded view of the Group'sperformance. Further details on the KPIs and their measurement can be found inthe last Annual Report. A selection of KPIs and the Group's results to theinterim period for these are detailed below. These results have been annualisedfrom the position at 30 June 2007 where measurement over a year is required. KPI: 30/6/07 31/12/06 Target----------------------------------------------- --------- --------- --------- -------- Profit before tax margin 55% 34% 20% XROCE - return on capital employed (annualised) 101% 77% 12% XRevenue per employee (annualised) £203,818 £155,439 to increase XFunds under administration £368M £309M to increase XGrowth in client numbers (annualised) 23.2% 19.6% 10% XComplaints ratio (annualised) 0.61 0.51 < 2 XTelephone calls answered in three rings 92% 88% 90% XSickness days (annualised) 0.56% 1.85% 1% per year XBasic earnings per share (annualised) 122% 165% 25% X Chairman's statement In my statement to shareholders in March 2007 reporting on the results for theyear ending 31 December 2006 and outlining our expectations for 2007, I saidthat having absorbed the start up costs of our expanded services to retail andinstitutional clients, we could look forward to a good year. I am thus more thanpleased to be able to report to you a profit before tax for the six months to 30June 2007 of £1,225,776 compared to £716,275 for the same period in 2006 and infact not far short of the market forecasts for the year of £1,300,000 disclosedlast year. This was subsequently revised upwards to £1,700,000 for the year andthus we are already well on course to at least achieve that target by theyear-end. We have always striven to provide a friendly professional service to our clientsand this effort and commitment from our employees continues to reflect in ourresults. So far as shareholders are concerned it is pleasing to note that theshare price on AIM had moved upwards to 210p per share on 30 June 2007, and atone time peaked at 235p although currently the market has dropped across theboard. This upward movement was just the activity we had hoped for, the shareprice having stuck in the doldrums for considerable periods in 2006 - asituation that I commented on in last year's interim review. In the period under review we have extended our range of activities and nowoffer a competitive CFD trading platform for retail and institutional clients.We additionally increased our throughput in the established activities,particularly in our outsourcing and settlement services. Accordingly your Boardhas followed its dividend policy of a two-thirds distribution and thus a 4p pershare dividend was recently paid to shareholders. Once again I cannot let this occasion pass without recording the thanks due tothe Jarvis team, who take the stresses and strains associated with the peaks andtroughs of activity and sometimes the complexity present in their day-to-daytasks and produce a good service. Thanks also to our increasing number ofshareholders for having the confidence to invest in our business. On a purely technical note, shareholders may notice a few presentational changesin the Interim Financial Statements. These arise as we have now adoptedInternational Financial Reporting Standards in place of UK GAAP. The impact onthe actual numbers reported has been minimal although the layout of our resultsis quite different. Andrew J GrantChairman Consolidated income statement for the period ended 30 June 2007 Notes Six months ended Year to 30/6/07 30/6/06 31/12/06 as restated as restated---------------------------- ------ --------- --------- --------- £ £ £Continuing operationsRevenue 2,241,999 1,724,835 3,419,658Administrative expenses (1,014,389) (1,006,481) (2,255,165)Finance costs (1,834) (2,079) (2,605)---------------------------- ------ --------- --------- ---------Profit before tax 1,225,776 716,275 1,161,888Income tax charge 4 (360,446) (202,065) (364,322)---------------------------- ------ --------- --------- ---------Profit for the period 865,330 514,210 797,566============================ ====== ========= ========= =========Attributable to equityholders of the parent 865,330 514,210 797,566 ============================ ====== ========= ========= ========= Earnings per share 5 p p pBasic 7.75 4.49 6.97Diluted 7.29 4.25 6.60 Consolidated balance sheet at 30 June 2007 Notes 30/6/07 30/6/06 31/12/06 as restated as restated----------------------------- ------ --------- --------- --------- £ £ £AssetsNon-current assetsProperty, plant and equipment 123,610 178,717 144,145Intangible assets 21,823 21,823 21,823Goodwill 342,872 342,872 342,872Available-for-sale 20,000 - -investments ----------------------------- ------ --------- --------- --------- 508,305 543,412 508,840Current assetsTrade and other receivables 7,507,490 4,736,141 5,710,459Investments held for trading 24,121 23,882 34,186Cash and cash equivalents 13,238,952 6,388,947 6,561,264----------------------------- ------ --------- --------- --------- 20,770,563 11,148,970 12,305,909----------------------------- ------ --------- --------- ---------Total assets 21,278,868 11,692,382 12,814,749============================= ====== ========= ========= ========= Equity and liabilitiesCapital and reservesShare capital 7 110,000 114,600 113,500Share premium 789,834 789,834 789,834Capital redemption reserve 4,845 245 1,345Other reserves 23,544 13,272 17,696Retained earnings 706,801 795,478 688,886Own shares held in treasury (52,071) (130,371) (69,793)----------------------------- ------ --------- --------- ---------Total equity 8 1,582,953 1,583,058 1,541,468Non-current liabilitiesDeferred tax liabilities 18,119 18,119 13,130----------------------------- ------ --------- --------- ---------Current liabilitiesTrade and other payables 19,025,637 9,705,820 10,909,451Current tax liabilities 4 652,159 385,385 350,700----------------------------- ------ --------- --------- ---------Total liabilities 19,677,796 10,091,205 11,260,151----------------------------- ------ --------- --------- ---------Total equity and liabilities 21,278,868 11,692,382 12,814,749============================= ====== ========= ========= ========= Consolidated statement of recognised income and expense for the period Notes Six months ended Year to 30/6/07 30/6/06 31/12/06 as restated as restated---------------------------- ----- --------- --------- --------- £ £ £Purchase of own shares (722,658) (130,371) (323,072)Sale of shares from 174,965 - 149,833treasury ---------------------------- ----- --------- --------- ---------Net income recogniseddirectly in equity (547,693) (130,371) (173,239) Profit for the period 865,330 514,210 797,566---------------------------- ----- --------- --------- ---------Total recognised income and expense for the period 317,637 383,839 624,327============================ ===== ========= ========= ========= Attributable to equityholders of the parent 317,637 383,839 624,327============================ ===== ========= ========= ========= Consolidated statement of changes in equity for the period Share Share Capital Other Retained Own shares Attributable capital premium redemption reserves earnings held to equity reserve as restated holders of the parent---------------- ------- ------- ------- ------- ------- ------- -------- £ £ £ £ £ £ £Balance at1/1/06 114,845 789,834 - 8,848 472,412 (18,879) 1,367,060Purchase ofown shares - - - - - (130,371) (130,371)---------------- ------- ------- ------- ------- ------- ------- --------Net incomerecogniseddirectly inequity - - - - - (130,371) (130,371)---------------- ------- ------- ------- ------- ------- ------- --------Cancellationof own shares (245) - 245 - (18,879) 18,879 -Expense ofemployeeoptions - - - 4,424 - - 4,424Profit for theperiod - - - - 514,210 - 514,210Dividends - - - - (172,265) - (172,265)---------------- ------- ------- ------- ------- ------- ------- --------Balance at30/6/06 114,600 789,834 245 13,272 795,478 (130,371) 1,583,058Purchase ofown shares - - - - - (192,701) (192,701)Sale of sharesfrom treasury - - - - - 149,833 149,833---------------- ------- ------- ------- ------- ------- ------- --------Net incomerecogniseddirectly inequity - - - - - (42,868) (42,868)---------------- ------- ------- ------- ------- ------- ------- --------Cancellationof own shares (1,100) - 1,100 - (103,446) 103,446 -Expense ofemployeeoptions - - - 4,424 - - 4,424Profit for theperiod - - - - 283,354 - 283,354Dividends - - - - (286,500) - (286,500)---------------- ------- ------- ------- ------- ------- ------- --------Balance at31/12/06 113,500 789,834 1,345 17,696 688,886 (69,793) 1,541,468Purchase ofown shares - - - - - (722,658) (722,658)Sale of sharesfrom treasury - - - - - 174,965 174,965---------------- ------- ------- ------- ------- ------- ------- --------Net incomerecogniseddirectly inequity - - - - - (547,693) (547,693)---------------- ------- ------- ------- ------- ------- ------- --------Cancellationof own shares (3,500) - 3,500 - (565,415) 565,415 -Expense ofemployeeoptions - - - 5,848 - - 5,848Profit for theperiod - - - - 865,330 - 865,330Dividends - - - - (282,000) - (282,000)---------------- ------- ------- ------- ------- ------- ------- --------Balance at30/6/07 110,000 789,834 4,845 23,544 706,801 (52,071) 1,582,953 Condensed consolidated cash flow statement for the period ended 30 June 2007 Notes Six months ended Year to 30/6/07 30/6/06 31/12/06 as restated as restated----------------------------- ----- --------- --------- --------- £ £ £Net cash from operating 1,344,177 535,060 518,468activities ----------------------------- ----- --------- --------- ---------Additions to property, plantand equipment (13,431) (47,277) (64,659)Proceeds on disposal of property,plant and equipment - - 15,977Other investing cash flows (20,000) 14,571 (1,009)(net) ----------------------------- ----- --------- --------- ---------Net cash used in investingactivities (33,431) (32,706) (49,691)----------------------------- ----- --------- --------- ---------Other financing cash flows (net) (829,692) (302,639) (632,008)----------------------------- ----- --------- --------- ---------Net cash from (used in)financing activities (829,692) (302,639) (632,008)----------------------------- ----- --------- --------- ---------Net increase in cash andcash equivalents 481,054 199,715 (163,231)----------------------------- ----- --------- --------- ---------Cash and cash equivalents at1 January 471,499 634,730 634,730Cash and cash equivalents at 30 June 952,553 834,445Cash and cash equivalents at31 December 471,499 ----------------------------- ----- --------- --------- ---------Bank balances and cash 952,553 834,445 471,499============================= ===== ========= ========= ========= Notes forming part of the interim financial statements 1. Basis of preparation The interim consolidated financial statements have been prepared in accordancewith International Accounting Standard (IAS) 34, Interim Financial Reporting andare covered by IFRS 1, First-time Adoption of IFRS, because they are part of theperiod covered by the Group's first IFRS financial statements for the year ended31 December 2007. These interim financial statements have been prepared inaccordance with those IFRS standards and IFRIC interpretations issued andeffective or issued and early adopted as at the time of preparing thesestatements (July 2007). Jarvis Securities' consolidated financial statements were prepared in accordancewith UKGAAP until 31 December 2006. UKGAAP differs in some areas from IFRS. Inpreparing Jarvis Securities' 2007 consolidated interim statements, managementhas amended certain accounting methods applied in the UKGAAP financialstatements to comply with IFRS. The comparative figure in respect of 2006 wasrestated to reflect these adjustments. Reconciliations and descriptions of the effect of the transition from UKGAAP toIFRS on the Group's equity and net income and cash flows are shown in Note 8. The implementation of IFRS has had no material impact on the cash flow statementof the Group. These consolidated interim financial statements have been prepared under thehistorical cost convention, as modified by the revaluation of available-for-salefinancial assets, and financial assets and liabilities at fair value throughprofit or loss. The preparation of financial statements in accordance with IAS34 requires theuse of certain accounting estimates. It also requires management to exercisejudgement in the process of applying the Company's accounting policies. Theareas involving a high degree of judgement or complexity, or areas where theassumptions and estimates are significant to the consolidated interim financialstatements, are disclosed in Note 10. The financial information contained in this report, which has not been audited,does not constitute statutory accounts as defined by Section 240 of theCompanies Act 1985. The auditors' report for the 2006 accounts was unqualifiedand did not contain a statement under Section 237(2) or (3) of the Companies Act1985. 2. Accounting policies (a) Revenue Revenue represents net sales of services, commissions and interest excludingvalue added tax. Management fees charged in arrears are accrued pro-rata for theexpired period of each charging interval. Interest is accrued on cash depositspro-rata for the expired period of the deposit. Commission income is recognisedas earned (b) Basis of consolidation Subsidiaries are all entities over which the Group has the power to govern thefinancial and operating policies generally accompanying a shareholding of morethan half of the voting rights. The existence and effect of potential votingrights that are currently exercisable or convertible are considered whenassessing whether the Group controls another entity. Subsidiaries are fullyconsolidated from the date on which control is transferred to the Group. Theyare deconsolidated from the date on which control ceases. The group financialstatements consolidate the financial statements of Jarvis Securities plc, JarvisInvestment Management plc, Sharegain Limited, JIM Nominees Limited, GalleonNominees Limited and Dudley Road Nominees Limited made up to 30 June 2007. The Group uses the purchase method of accounting for the acquisition ofsubsidiaries. The cost of an acquisition is measured as the fair value of theassets given, equity instruments issued and liabilities incurred or assumed atthe date of exchange, plus costs directly attributable to the acquisition.Identifiable assets acquired and liabilities and contingent liabilities assumedin a business combination are measured initially at their fair values at theacquisition date, irrespective of the extent of any minority interest. The costof acquisition over the fair value of the Group's share of identifiable netassets acquired is recorded as goodwill. If the cost of acquisition is less thanthe fair value of the Group's share of the net assets of the subsidiaryacquired, the difference is recognised in the income statement. Intra-group sales and profits are eliminated on consolidation and all sales andprofit figures relate to external transactions only. No profit and loss accountis presented for Jarvis Securities plc as provided by S230(3) of the CompaniesAct 1985. (c) Property, plant and equipment All property, plant and equipment is shown at cost less subsequent depreciationand impairment. Cost includes expenditure that is directly attributable to theacquisition of the items. Depreciation is provided on cost in equal annualinstalments over the lives of the assets at the following rates: Website - 33% on costLeasehold improvements - 33% on costMotor vehicles - 15% on costOffice equipment - 20% on costSoftware developments - 33% on cost The assets' residual values and useful lives are reviewed, and adjusted ifappropriate, at each balance sheet date. Gains and losses on disposals aredetermined by comparing proceeds with carrying amount. These are included in theincome statement. (d) Intangible assets Intangible assets are capitalised at their fair value on acquisition and aretested annually for impairment and carried at cost less accumulated impairmentlosses. (e) Goodwill Goodwill represents the excess of the fair value of the consideration given overthe aggregate fair values of the net identifiable assets of the acquiredsubsidiary at the date of acquisition. Goodwill is tested annually forimpairment and carried at cost less accumulated impairment losses. (f) Deferred income tax Deferred income tax is provided in full, using the liability method, ontemporary differences arising between the tax bases of assets and liabilitiesand their carrying amounts in the consolidated financial statements. Thedeferred income tax is not accounted for if it arises from initial recognitionof an asset or liability in a transaction, other than a business combination,that at the time of the transaction affects neither accounting or taxable profitor loss. Deferred income tax is determined using tax rates that have beenenacted or substantially enacted by the balance sheet date and are expected toapply when the related deferred income tax asset is realised or the deferredincome tax liability is settled. Deferred income tax assets are recognised to the extent that it is probable thatfuture taxable profit will be available against which the temporary differencescan be utilised. Deferred income tax is provided on temporary differences arising on investmentsin subsidiaries except where the timing of the reversal of the timing differenceis controlled by the Group and its probable that the temporary differences willnot reverse in the foreseeable future. (g) Segmental reporting A business segment is a group of assets and operations engaged in providingproducts or services that are subject to risks and returns that are differentfrom those of other business segments. The directors regard the operations ofthe Group as a single segment. (h) Pensions The group operates a defined contribution pension scheme. Contributions payablefor the year are charged to the profit and loss account. (i) Stockbroking balances The gross assets and liabilities of the group relating to stockbrokingtransactions on behalf of clients are included in debtors, creditors and cash atbank. (j) Operating leases and finance leases Costs in respect of operating leases are charged on a straight line basis overthe lease term in arriving at the operating profit. Where the company hasentered into finance leases, the obligations to the lessor are shown as part ofborrowings and the rights in the corresponding assets are treated in the sameway as owned fixed assets. Leases are regarded as finance leases where theirterms transfer to the lessee substantially all the benefits and burdens ofownership other than right to legal title. (k) Investments The Group classifies its investments in the following categories:available-for-sale investments and investment held for trading. Theclassification depends on the purpose for which the investments were acquired.Management determines the classification of its investments at initialrecognition and re-evaluates this designation at every reporting date. Investment held for trading Investments held for trading are stated at fair value. An investment isclassified in this category if acquired principally for the purpose of sellingin the short term. Assets in this category are classified as current. Available-for-sale investments Available-for-sale investments are stated at fair value. They are included innon-current assets unless management intends to dispose of them within 12 monthsof the balance sheet date. Purchases and sales of investments are recognised on the trade-date - the dateon which the Group commits to purchase or sell the asset. Investments areinitially recognised at fair value plus transaction costs. Investments arederecognised when the rights to receive cash flows from the investments haveexpired or been transferred and the Group has transferred substantially all therisks and rewards of ownership. Realised and unrealised gains and losses arisingfrom changes in fair value of investments held for trading are included in theincome statement in the period in which they arise. Unrealised gains and lossesarising in changes in the fair value of available-for-sale investments arerecognised in equity. When investments classified as available-for-sale are soldor impaired, the accumulated fair value adjustments are included in the incomestatement as gains and losses from investment securities. The fair value of quoted investments is based on current bid prices. If themarket for an investment is not active, the Group establishes fair value byusing valuation techniques. These include the use of recent arm's lengthtransactions, reference to other instruments that are substantially the same,discounted cash flow analysis refined to reflect the issuer's specificcircumstances. The Group assesses at each balance sheet date whether there is objectiveevidence that an investment is impaired. In the case of investments classifiedas available-for-sale, a significant or prolonged decline in the fair valuebelow its cost is considered in determining whether the security is impaired. (l) Cashflow statement Cash movements relating to stockbroking balances derived from client trading areexcluded from the cashflow statement on the basis that these amounts do not formpart of the cashflow position of the group. (m) Foreign Exchange The company offers settlement of trades in sterling, US dollars, euros, Canadiandollars and Swiss francs. The company does not hold any assets or liabilitiesother than in sterling and converts client currency on matching terms tosettlement of trades realising any currency gain or loss immediately in theincome statement. Consequently the company has no foreign exchange risk. (n) Share Capital Incremental costs directly attributable to the issue of new shares or optionsare shown in equity as a deduction from proceeds, net of tax. Where the Company purchases its equity share capital (treasury shares), theconsideration paid, including any directly attributable incremental costs (netof income tax), is deducted from equity attributable to the Company's equityholders until the shares are cancelled, reissued or disposed of. Where suchshares are subsequently sold or reissued, any consideration received, net of anydirectly incremental transaction costs and the related income tax effects, isincluded in equity attributable to the Company's equity holders. (o) Options Employee options are expensed equally in each year from issue to the date offirst exercise. The total cost is calculated on issue based on the Black Scholesmethod with a volatility rate of 30% and a risk free interest rate of 3.75%. Itis assumed that all current employees with options will still qualify for theoptions at the exercise date. 3. Segmental information All of the reported revenue and operational results for the period derive fromthe Group's continuing financial services operations. 4. Income tax (charge) credit Interim period income tax is accrued based on the estimated average annualeffective income tax rate of 30%. 5. Earnings per share Six months ended Year to 30/6/07 30/6/06 31/12/06 as restated as restated------------------------------------------------ ------- --------- -------- £ £ £Earnings for the purposes of basic and dilutedearnings per share (profit (loss) for the period attributable to the equity holders of theparent) 865,330 514,210 797,566================================================ ======== ======== ========= Date Event Number Days------- ----------------- --------- ------ -------- -------- ---------Basic earnings per share 1/1/06 Balance at 1/1/06 11,484,545 8 507,604 251,716 9/1/06 Cancellation of 11,460,000 173 10,953,481 5,431,726 treasury shares30/6/06 Balance at 30/6/06 11,460,000 79 2,480,38318/9/06 Cancellation of 11,400,000 81 2,529,860 treasury shares7/12/06 Cancellation of 11,350,000 24 746,301 treasury shares 1/1/07 Balance at 1/1/07 11,350,000 7 438,950 8/1/07 Cancellation of 11,280,000 73 4,549,392 treasury shares21/3/07 Cancellation of 11,200,000 37 2,289,503 treasury shares27/4/07 Cancellation of 11,000,000 64 3,889,502 treasury shares ------- ----------------- --------- ------ -------- -------- --------- 11,167,347 11,461,085 11,439,986 ======== ======== ========= Diluted earnings per share 1/1/06 Balance at 1/1/06 12,134,545 8 536,333 265,962 9/1/06 Cancellation of 12,110,000 173 11,574,751 5,739,808 treasury shares30/6/06 Balance at 30/6/06 12,110,000 79 2,621,06818/9/06 Cancellation of 12,050,000 81 2,674,109 treasury shares7/12/06 Cancellation of 12,000,000 24 789,041 treasury shares 1/1/07 Balance at 1/1/07 12,000,000 7 464,088 8/1/07 Cancellation of 11,930,000 73 4,811,547 treasury shares21/3/07 Cancellation of 11,850,000 37 2,422,375 treasury shares27/4/07 Cancellation of 11,650,000 21 1,351,657 treasury shares18/5/07 Grant of options 11,880,000 43 2,822,320------- ----------------- --------- ------ -------- -------- --------- 11,871,987 12,111,084 12,089,988 ======== ======== ========= 6. Dividends During the interim period a dividend of 4p per ordinary share was declared. Thisdividend was paid to shareholders on 20 July 2007. 7. Share capital The movements in the share capital of the company during the interim period aredetailed in the consolidated statement of changes in equity and in note 5. Notes forming part of the interim financial statements (continued) 8. Reconciliation of amounts reported under previous UK GAAP to IFRS The Group adopted IFRS on 1 January 2007. A reconciliation of equity and profitreported under previous UK GAAP to that stated in the interim financialstatements under IFRS is given below in accordance with the requirements of IAS34 and IFRS 1. Six months Year ended to 30/6/06 31/12/06 as restated as restated---------------------------------------------- --------- --------- £ £ Total equity reported under UK GAAP 1,572,740 1,520,833IFRS adjustment - amortisation of goodwill 9,693 19,385IFRS adjustment - amortisation of intangible assets 625 1,250---------------------------------------------- --------- ---------Total equity reported under IFRS 1,583,058 1,541,468 Total profit reported under 508,316 776,931UK GAAP IFRS adjustment - amortisation of goodwill 9,693 19,385IFRS adjustment - amortisation of intangible assets 625 1,250Error adjustment - apportionment of employee options expense (4,424) ----------------------------------------------- --------- ---------Total profit reported under IFRS 514,210 797,566 9. Interim measurement Costs that incur unevenly during the financial year are anticipated or deferredin the interim report only if it would also be appropriate to anticipate ordefer such costs at the end of the financial year. 10. Critical accounting estimates and judgements The Group makes estimates and assumptions concerning the future. These estimatesand judgements are based on historical experience and other factors, includingexpectations of future events that are believed to be reasonable under thecircumstances. The resulting accounting estimates will, by definition, seldomequal the related actual results. The estimates and assumptions that have asignificant risk of causing a material adjustment to the carrying amounts ofassets with the next financial year relate to goodwill. The Group tests annually whether goodwill has suffered any impairment, inaccordance with the accounting policy stated in Note 2 (e). These calculationsrequire the use of estimates. For Further Information: Jarvis Securities plcMathew Edmett Tel: 0870 224 1111 Daniel Stewart & Company plcStewart Dick Tel: 0207 776 6550 INDEPENDENT REVIEW REPORT TO JARVIS SECURITIES PLC Introduction We have been instructed by the company to review the financial information setout in these interim financial statements and we have read the other informationcontained in the interim report and considered whether it contains any apparentmisstatements or material inconsistencies with the financial information. Directors' Responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. The continuingobligations of the AIM listing rules require that the accounting policies andpresentation applied to the interim figures should be consistent with thoseapplied in preparing the preceding annual accounts except where any changes, andthe reasons for them, are disclosed. Review Work Performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board. A review consists principally of makingenquiries of management and applying analytical procedures to the financialinformation and underlying financial data and based thereon, assessing whetherthe accounting policies and presentation have been consistently applied unlessotherwise disclosed. A review excludes audit procedures such as tests ofcontrols and verification of assets, liabilities and transactions. It issubstantially less in scope than an audit performed in accordance with AuditingStandards and therefore provides a lower level of assurance than an audit.Accordingly, we do not express an audit opinion on the financial information. Review Conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 30 June 2007. Horwath Clark Whitehill LLPChartered Accountants10 Palace AvenueMaidstoneKentME15 6NF Date: 31 July 2007 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Jarvis Securities