12th Nov 2007 07:00
AVEVA Group PLC12 November 2007 12 November 2007 AVEVA Group plc INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2007 AVEVA Group plc ("AVEVA"; stock code: AVV), one of the world's leading providersof engineering data and design IT systems, today announces its unaudited resultsfor the six months ended 30 September 2007. Highlights • Strong growth in revenues, profits and cash reflecting the leadership position of our products in buoyant marine, oil and gas and power markets • Revenue increased by 24% to £56.8 million (2006: £45.9 million) • Recurring revenues up 17% to £28.6 million (2006: £24.4 million) • Adjusted profit before tax increased by 32% to £18.6 million (2006: £14.1 million)* • Profit before tax up 32% to £16.9 million (2006: £12.8 million) • Adjusted basic earnings per share up 30% to 19.97p (2006: 15.31p) • Basic earnings per share up 31% to 17.50p (2006: 13.37p) • Interim dividend increased by 33% to 1.65p (2006: 1.24p) reflecting the Board's continued confidence in the Company's prospects • Excellent cash flow with net cash at the period end of £54.5 million (2006: £30.4 million) Commenting on the outlook, Chairman Nick Prest said: "AVEVA has built an excellent reputation amongst the world's leading engineeringcompanies for innovative products and first class support. Our significantinvestment in R&D and resulting launch of new products into strongly growingmarkets position the Company for further expansion. In addition, the maturingof the new AVEVA NET products will provide an additional platform for sales intothe Owner / Operator market." * Adjusted profit before tax is before amortisation of intangibles excludingsoftware, share-based payments and adjustment to the carrying value of goodwill. Enquiries:AVEVA Group plc On 12 November 2007 Tel: 020 7796 4133Richard Longdon, Chief Executive Thereafter Tel: 01223 556611Paul Taylor, Finance Director Hudson Sandler Tel: 020 7796 4133Andrew HayesSandrine GallienJames White An analysts' briefing will be held at 29 Cloth Fair, London EC1A 7NN at 9:30amon 12 November 2007. For further information please contact Alix Haysom on 0207796 4133 or on [email protected]. CHAIRMAN'S STATEMENT OVERVIEW AVEVA has again delivered very strong growth in sales, profits and cashgeneration in the first six months of this year. This trading momentumcontinues to be underpinned by providing world leading engineering software toattractive high growth markets such as oil and gas, power and marine. Thecontinued investment and focused commitment to addressing our customers'requirements that have helped drive recent growth position us well to benefitfrom the strength in these markets in the future. FINANCIALS AVEVA's strong financial performance over the past six months has seen salesgrowth of 24% to £56.8 million (2006: £45.9 million). Strong growth in Initialfee income of 39%, amounting to £24.4 million (2006: £17.5 million), continuesto be driven by major customer wins in Asia. Recurring revenue was up 17% onthe prior year to £28.6 million (2006: £24.4 million) and accounts for 50% oftotal revenues. Adjusted profit before tax was £18.6 million, an increase of 32% (2006: £14.1million), which is before amortisation of intangibles, share-based payments andadjustment to goodwill of £1.7 million (2006: £1.3 million). This generatedadjusted earnings per share of 19.97p, an increase of 30% (2006: 15.31p).Profit before tax was £16.9 million, an increase of 32% (2006: £12.8 million),resulting in basic earnings per share increasing 31% from 13.37p to 17.50p. Operating margins continued to improve and were 28% in the first half (2006:27%). Margins over recent periods have increased and are being driven bygrowth in sales, and in particular Initial fee income. Offsetting this,however, has been the Company's continued investment across the business, inparticular in Research and Development, which has helped support the growthrates seen over recent periods. AVEVA continues to be cash generative. Strong cash flow generated fromoperations in the six months ending September has seen net cash increase to£54.5 million (2006: £30.4 milion). DIVIDEND With continued strong first half trading and the buoyancy in AVEVA's key marketsthe Board are declaring an interim dividend of 1.65p (2006: 1.24p), an increaseof 33%. Payment will be made on the 8 February 2008 to all shareholders on theregister on 4 January 2008. OPERATING REVIEW The Group's strong first half trading benefited from increased contribution fromall regions. Sales in the Asian region of £23.7 million (2006: £20.9 million) were up 13% onthe prior year and accounted for 42% of Group revenues. We continue to seestrong growth in Initial fees in this region where such agreements predominate,reflecting cultural preferences and the longer term opportunities in the region. New customer wins were very strong in the first half; in particular we saw ourmarine business in Japan and Korea grow considerably year on year. Ouropportunity for growth in the region remains very good, aided by a strong localpresence delivering solid dependable solutions and new functionality into arapidly changing environment. Central, Eastern and Southern Europe (CES) saw revenues increase by 45% to £15.1million (2006: £10.4 million). As in previous periods we continue to benefitfrom winning customers from our competitors as well as from buoyant powermarkets, where existing customers are seeing global demand for their services,which in turn is driving use of our products across a widening global network.Since the opening of our Russian office last year we have seen good sales growthfrom the region. There are significant opportunities to improve product usageamongst AVEVA's customers from a relatively low base. Western Europe, the Middle East and Africa (WEMEA) saw 30% growth in sales to£10.8 million (2006: £8.3 million). Continued resurgence of demand from theNordic regions driven by new build and maintenance work saw many of AVEVA'sexisting customers extend usage. WEMEA has been traditionally strong inoffshore oil and gas, whilst opportunities in both Marine and Power markets havecontributed to first half sales in this region. Increased project work in theseareas look set to help support future growth. The Americas business has continued to grow in line with expectations and is nowgenerating sales of £7.2 million, up 14% on prior year (2006: £6.3 million).Having reviewed our organisational capabilities at the end of last financialyear we decided to increase resources and focus and have recently appointed anew Head of Region and Head of Sales. It still remains very early for theseappointments to have made a material impact, but with important customerscontinuing to expand usage and new customer wins early in the year, ouropportunities in this region still remain very strong. Overall opportunities across all markets remain very positive. RESEARCH AND DEVELOPMENT Meeting our existing customer demands, in addition to those opportunities tosell new products to both existing and new markets, means that AVEVA mustcontinue to provide market leading software tools. Our reputation for meetingthese demands in our markets remains a key differentiator, and to continue tosupport this we have substantially increased investment in technology. Totalinvestment in Research and Development for the six months amounted to 18% ofturnover at £10.2 million (2006: £7.2 million). This investment includes newproducts such as AVEVA NET and the continued improvements and enhancement ofexisting products with the launch of PDMS 12. BOARD On 12 July 2007 AVEVA announced the appointment of Jonathan Brooks as aNon-executive Director. Jonathan's wealth of experience generated from his roleas Financial Director of ARM and his involvement with other global technologycompanies will be an asset to the Company. OUTLOOK AVEVA has built an excellent reputation amongst the world's leading engineeringcompanies for innovative products and first class support. Our significantinvestment in Research & Development and resulting launch of new products intostrongly growing markets position the Company for further expansion. Inaddition, the maturing of the new AVEVA NET products will provide an additionalplatform for sales into the Owner / Operator market. Nick Prest Chairman 12 November 2007 Independent review report to AVEVA Group plc Introduction We have been engaged by the Company to review the condensed set of financialstatements in the half-yearly financial report for the six months ended 30September 2007 which comprise the consolidated income statement, theconsolidated statement of recognised income and expense, the consolidatedbalance sheet, the consolidated cash flow statement and the related notes 1 to12. We have read the other information contained in the half yearly financialreport and considered whether it contains any apparent misstatements or materialinconsistencies with the information in the condensed set of financialstatements. This report is made solely to the Company in accordance with guidance containedin ISRE 2410 (UK and Ireland) "Review of Interim Financial Information Performedby the Independent Auditor of the Entity" issued by the Auditing PracticesBoard. To the fullest extent permitted by law, we do not accept or assumeresponsibility to anyone other than the Company, for our work, for this report,or for the conclusions we have formed. Directors' Responsibilities The half-yearly financial report is the responsibility of, and has been approvedby, the directors. The directors are responsible for preparing the half-yearlyfinancial report in accordance with the Disclosure and Transparency Rules of theUnited Kingdom's Financial Services Authority. As disclosed in note 2, the annual financial statements of the Group areprepared in accordance with IFRSs as adopted by the European Union. Thecondensed set of financial statements included in this half-yearly financialreport has been prepared in accordance with International Accounting Standard34, "Interim Financial Reporting," as adopted by the European Union. Our Responsibility Our responsibility is to express to the Company a conclusion on the condensedset of financial statements in the half-yearly financial report based on ourreview. Scope of Review We conducted our review in accordance with International Standard on ReviewEngagements (UK and Ireland) 2410, "Review of Interim Financial InformationPerformed by the Independent Auditor of the Entity" issued by the AuditingPractices Board for use in the United Kingdom. A review of interim financialinformation consists of making enquiries, primarily of persons responsible forfinancial and accounting matters, and applying analytical and other reviewprocedures. A review is substantially less in scope than an audit conducted inaccordance with International Standards on Auditing (UK and Ireland) andconsequently does not enable us to obtain assurance that we would become awareof all significant matters that might be identified in an audit. Accordingly, wedo not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believethat the condensed set of financial statements in the half-yearly financialreport for the six months ended 30 September 2007 is not prepared, in allmaterial respects, in accordance with International Accounting Standard 34 asadopted by the European Union and the Disclosure and Transparency Rules of theUnited Kingdom's Financial Services Authority. Ernst & Young LLP Cambridge 12 November 2007 CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2007 Notes Year ended Six months ended 30 September 31 March 2007 2006 2007 £'000 £'000 £'000 (unaudited) (unaudited) (audited)Revenue 4,5 56,815 45,936 94,906Cost of sales (14,563) (12,236) (27,269) Gross profit 42,252 33,700 67,637 Operating expensesSelling and distribution costs (16,248) (12,848) (30,541)Administrative expenses (9,853) (8,314) (13,061) Total operating expenses (26,101) (21,162) (43,602) Profit from operations 5 16,151 12,538 24,035Finance revenue 1,718 1,071 2,297Finance expense (972) (839) (1,682) Analysis of profit before taxProfit before tax, share-based payments,amortisation and goodwill adjustment 18,562 14,064 28,083Share-based payments (161) (85) (177)Adjustment to carrying value of goodwill in respect of utilisation of tax losses (375) (170) (1,136)Amortisation of intangibles (excl software) (1,129) (1,039) (2,120) Profit before tax 16,897 12,770 24,650 Profit before tax 16,897 12,770 24,650Income tax expense 6 (5,110) (3,841) (6,844) Profit for the period attributable to 11,787 8,929 17,806equity shareholders of the parentEarnings per share (pence) 8- basic 17.50p 13.37p 26.59p- diluted 17.43p 13.25p 26.32p Proposed dividend per share 1.65p 1.24p 2.94p CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2007 Year ended ended Six months ended 30 September 31 March 2007 2006 2007 (unaudited) (unaudited) (audited) £'000 £'000 £'000Tax on items recognised directly in equity 82 828 1,979Exchange differences arising on translation of 1,196 (1,051) (1,872)foreign operationsActuarial loss on defined benefit pension (110) (1,015) (2,694)schemesNet income/(expense) recognised directly in equity 1,168 (1,238) (2,587)Profit for the period 11,787 8,929 17,806 Total recognised income and expense relating 12,955 7,691 15,219to the period attributable to equity holders CONSOLIDATED BALANCE SHEET AS AT 30 SEPTEMBER 2007 Notes As at As at 30 September 31 March 2007 2006 2007 £'000 £'000 £'000 (unaudited) (unaudited) (audited)Non-current assetsGoodwill 15,206 16,291 15,062Other intangible assets 11,154 12,208 12,028Property, plant and equipment 4,886 4,899 4,752Deferred tax assets 3,710 3,561 3,628Other receivables 9 385 230 261 35,341 37,189 35,731 Current assetsTrade and other receivables 9 39,274 31,954 36,546Current tax assets 774 160 258Financial assets 109 - -Cash and cash equivalents 55,646 30,990 41,287 95,803 63,104 78,091 TOTAL ASSETS 131,144 100,293 113,822 EquityIssued share capital 2,247 2,226 2,245Share premium 26,444 25,373 26,381Other reserves 3,941 3,566 2,745Retained earnings 43,881 26,335 33,941Total equity 11 76,513 57,500 65,312 Current liabilitiesTrade and other payables 10 34,241 24,838 33,259Financial liabilities 1,321 737 168Current tax liabilities 10,889 8,315 6,907 46,451 33,890 40,334 Non-current liabilitiesDeferred tax liabilities 2,895 3,414 3,105Financial liabilities 58 182 128Provisions - 317 -Retirement benefit obligations 5,227 4,990 4,943 8,180 8,903 8,176 TOTAL EQUITY AND LIABILITIES 131,144 100,293 113,822 CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2007 Year ended Six months ended 30 September 31 March 2007 2006 2007 £'000 £'000 £'000 (unaudited) (unaudited) (audited)Cash flows from operating activitiesProfit for the year 11,787 8,929 17,806Income tax 5,110 3,841 6,844Net finance revenue (746) (232) (615)Depreciation of property, plant and equipment 587 534 1,254Amortisation of intangible assets 1,156 1,086 2,167Profit on disposal of non-current assets - - (12)Share-based payments 161 85 177Difference between pension contributions paid and amounts recognised in income statement 210 203 (1,902)Adjustment to carrying value of goodwill 375 170 1,136Changes in working capital:Trade and other receivables (2,449) (4,348) (9,298)Trade and other payables 1,333 621 9,193Fair value of forward contracts (141) - 7Provisions - 23 - Cash generated from operating activities 17,383 10,912 26,757before taxIncome taxes paid (1,954) (1,160) (4,810) Net cash generated from operating activities 15,429 9,752 21,947 Cash flows from investing activitiesPurchase of property, plant and equipment (730) (642) (1,241)Interest received 726 203 547Proceeds from disposal of property, plant - 35 85and equipmentPurchase of intangibles (72) (9) (1,056) Net cash used in investing activities (76) (413) (1,665) Cash flows from financing activitiesInterest paid (16) (48) (43)Proceeds from the issue of shares 65 21 1,048Payment of finance lease liabilities (70) (90) (157)Dividends paid to equity holders of the parent (1,980) (1,157) (1,992) Net cash flows from financing activities (2,001) (1,274) (1,144) Net increase in cash and cash equivalents 13,352 8,065 19,138Net foreign exchange difference (178) (1,173) (1,354)Opening cash and cash equivalents 41,287 23,503 23,503 Closing cash and cash equivalents 54,461 30,395 41,287 NOTES 1. The interim report The Interim Report was approved by the Board on 12 November 2007. The financialinformation set out in the Interim Report is unaudited but has been reviewed bythe Auditors, Ernst & Young LLP, and their report to the Company is set out onpages 5 and 6. The Interim Report will be posted to shareholders in due course and copies willbe available from the registered office of AVEVA Group plc, High Cross,Madingley Road, Cambridge, CB3 0HB. 2. Basis of preparation and accounting policies The Interim Report for the six months ended 30 September 2007 has been preparedin accordance with IAS 34 Interim Financial Reporting and the disclosurerequirements of the Listing Rules. The Interim Report has been prepared on the basis of the accounting policies setout in the most recently published Annual Report of the Group for the year ended31 March 2007 except for the adoption of the following standards which aremandatory for accounting periods beginning on or after 1 January 2007: • IAS 1, Amendment - Presentation of Financial Statements: Capital Disclosures; • IFRS 7, Financial Instruments: Disclosure; • IFRIC 7, Applying the restatement approach under IAS 29; • IFRIC 8, Scope of IFRS 2; • IFRIC 9, Reassessment of embedded derivatives; • IFRIC 10, Interim Financial Reporting and impairment; and • IFRIC 11, IFRS 2 - Group and treasury share transactions. The adoption of these standards did not affect the Group results of operation orfinancial position in the six months ended 30 September 2007. The Interim Report does not include all the information and disclosures requiredin the Annual Report and should be read in conjunction with the Annual Reportfor the year ended 31 March 2007. The financial information set out within this report does not constitute AVEVA'sconsolidated statutory financial statements as defined in Section 240 of theCompanies Act 1985. The results for the year ended 31 March 2007 have beenextracted from the statutory consolidated financial statements for AVEVA Groupplc for the year ended 31 March 2007 which are prepared in accordance with IFRSas adopted by the EU, on which the Auditors gave an unqualified report (whichmade no statement under sections 237 (2) or (3) of the Companies Act 1985) andhave been filed with the Registrar of Companies. The Group presents adjusted profit before tax on the face of the Consolidatedincome statement disclosing those material items of operating income and expensewhich materially impact on the underlying performance of the business. TheDirectors believe that adjusted profit before tax allows shareholders tounderstand better the elements of financial performance in the period, so as tofacilitate comparison with prior periods in assessing trends in financialperformance. 3. Risks and uncertainties There are a number of risks which could have an impact on the performance of theGroup for the remaining six months of the year and on its long term performance. They include: • Protection of the Group's intellectual property rights;• Dependency on key markets;• Timing of contract signing;• Foreign exchange risk;• Recruitment and retention of employees;• Identification and successful integration of acquisitions;• Research and development; and• Compliance with overseas laws and regulations. These risks are described in more detail in the most recently published AnnualReport. The Directors routinely monitor all of these risks and uncertaintiesand appropriate actions are taken to mitigate these risks. 4. Revenue An analysis of the Group's revenue is as follows: Year ended Six months ended 30 September 31 March 2007 2006 2007 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Annual fees 10,660 8,667 17,396Rental fees 17,039 14,648 32,195Recurring services 920 1,048 3,060 Total recurring revenue 28,619 24,363 52,651Initial licence fees 24,437 17,519 34,185Services 3,759 4,054 8,070 56,815 45,936 94,906Finance revenue 1,718 1,071 2,297 58,533 47,007 97,203 Services consist of consultancy and training fees. The operations of the Group are not subject to significant seasonality. 5. Segment information Geographical segments Six months ended 30 September 2007 (unaudited) Asia Pacific WEMEA CES Americas Unallocated Total £'000 £'000 £'000 £'000 £'000 £'000Income statementRevenueSegment revenue 23,661 10,832 15,094 7,228 - 56,815ResultSegment result 16,096 7,042 10,171 4,121 - 37,430 Unallocated expensesCorporate overheads (11,066) (11,066)Research and development (10,213) (10,213) costs Profit from operations 16,151Finance revenue 1,718Finance expense (972) Profit before income tax 16,897Income tax expense (5,110) Net profit for the period 11,787 Geographical segments Six months ended 30 September 2006 (unaudited) Asia Pacific WEMEA CES Americas Unallocated Total £'000 £'000 £'000 £'000 £'000 £'000Income statement RevenueSegment revenue 20,879 8,349 10,440 6,268 - 45,936 ResultSegment result 13,287 5,377 5,917 3,677 - 28,258 Unallocated expensesCorporate overheads (8,499) (8,499)Research and development (7,221) (7,221) costs Profit from operations 12,538Finance revenue 1,071Finance expense (839) Profit before income tax 12,770Income tax expense (3,841) Net profit for the period 8,929 Geographical segments Year ended 31 March 2007 (audited) Asia Pacific WEMEA CES Americas Unallocated Total £'000 £'000 £'000 £'000 £'000 £'000 Income statement RevenueSegment revenue 36,871 21,744 22,808 13,483 - 94,906 ResultSegment result 21,116 14,216 13,513 7,882 - 56,727 Unallocated expensesCorporate overheads (15,085) (15,085)Research and development (17,607) (17,607) costs Profit from operations 24,035Finance revenue 2,297Finance expense (1,682) Profit before income tax 24,650Income tax expense (6,844) Net profit for the period 17,806 6. Income tax expense The current year income tax expense for the six months ended 30 September 2007is estimated at 30% (2006: 30%) of profit before tax. The total tax charge of £5.1 million (2006: £3.8 million) is made up of UK tax£4.4 million (2006: £1.9 milliion) and overseas tax of £0.7 million (2006: £1.9million). 7. Interim ordinary dividend The proposed interim dividend of 1.65p per ordinary share will be payable on 8February 2008 to shareholders on the register on 4 January 2008. In accordancewith IFRS, no provision for the interim dividend has been made in thesefinancial statements. An analysis of dividends paid is set out below: Year ended Six months ended 30 September 31 March 2007 2006 2007 (unaudited) (unaudited) (audited) £'000 £'000 £'000Dividends - final 2005/6 paid at 1.73p per share - 1,157 1,157- interim 2006/7 paid at 1.24p per share - - 835- final 2006/7 paid at 2.94p per share 1,980 - - 1,980 1,157 1,992 8. Earnings per share The calculations of earnings per share from continuing operations are based onthe profit after tax for the six months to 30 September 2007 of £11,787,000 andthe following weighted average number of shares: Year ended Six months ended 30 September 31 March 2007 2006 2007 (unaudited) (unaudited) (audited) No. of shares No. of shares No. of shares Weighted average number of ordinary shares for 67,371,268 66,761,222 66,970,870 basic earnings per shareEffect of dilution: Employee share options 246,471 636,170 687,951 Weighted average number of ordinary shares 67,617,739 67,397,392 67,658,821 adjusted for the effect of dilution Details of the calculation of adjusted earnings per share is set out below: Year ended Six months ended 30 September 31 March 2007 2006 2007 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Profit for the period 11,787 8,929 17,806Intangible amortisation (excluding software) 1,129 1,039 2,120Share-based payments 161 85 177Adjustment to carrying value of goodwill 375 170 1,136 Adjusted profit after tax 13,452 10,223 21,239 Adjusted earnings per share:- basic 19.97p 15.31p 31.71p- diluted 19.89p 15.17p 31.39p 9. Trade and other receivables Current As at As at 30 September 31 March 2007 2006 2007 £'000 £'000 £'000 (unaudited) (unaudited) (audited)Trade receivables 37,203 30,071 35,046Prepayments and other receivables 1,797 1,507 1,307Accrued income 274 376 193 39,274 31,954 36,546 Non-current As at As at 30 September 31 March 2007 2006 2007 £'000 £'000 £'000 (unaudited) (unaudited) (audited)Other receivables 385 230 261 10. Trade and other payables As at As at 30 September 31 March 2007 2006 2007 £'000 £'000 £'000 (unaudited) (unaudited) (audited)Trade payables 649 1,235 770Social security, employee and sales taxes 3,155 2,627 3,438Other payables 63 140 117Accruals 12,343 9,350 13,537Deferred income 18,031 11,486 15,397 34,241 24,838 33,259 11. Reconciliation of movements in equity (unaudited) Cumulative Total Share Share Merger Translation Other Retained Total capital premium reserve adjustments reserves Earnings Equity £'000 £'000 £'000 £'000 £'000 £'000 £'000 At 1 April 2006 2,225 25,353 3,921 696 4,617 18,665 50,860Total recognised income - - - (1,051) (1,051) 8,742 7,691 and expense for the periodIssue of share capital 1 20 - - - - 21Share-based payments - - - - - 85 85Equity dividends - - - - - (1,157) (1,157) At 30 September 2006 2,226 25,373 3,921 (355) 3,566 26,335 57,500Total recognised income - - - (821) (821) 8,349 7,528 and expense for the periodIssue of share capital 19 1,008 - - - - 1,027Share-based payments - - - - - 92 92Equity dividends - - - - - (835) (835) At 31 March 2007 2,245 26,381 3,921 (1,176) 2,745 33,941 65,312Total recognised income - - - 1,196 1,196 11,759 12,955 and expense for the periodIssue of share capital 2 63 - - - - 65Share-based payments - - - - - 161 161Equity dividends - - - - - (1,980) (1,980)At 30 September 2007 2,247 26,444 3,921 20 3,941 43,881 76,513 On 23 April 2007 and 17 July 2007 the Company issued 3,600 and 37,700 ordinaryshares of 3.33p each with a total nominal value of £1,376 pursuant to theexercise of share options. This resulted in total proceeds of £65,000 includinga premium of £63,000. 12. Responsibility statement of the Directors in respect of the InterimReport The Directors of the Company confirm to the best of our knowledge: a. the Interim Report has been prepared in accordance with IAS 34; b. the Interim Report includes a fair review of the informationrequired by DTR 4.2.7R, being an indication of the important events that haveoccurred during the first six months of the financial year and a description ofthe principal risks and uncertainties for the remaining six months of the year;and c. the Interim Report includes a fair review of the informationrequired by DTR 4.2.8R, being disclosure of related party transactions andchanges therein since the last Annual Report. By order of the Board R Longdon P Taylor Chief Executive Finance Director 12 November 2007 12 November 2007 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
AVV.L