24th May 2006 07:01
Brewin Dolphin Holdings PLC24 May 2006 Brewin Dolphin Holdings plc Interim Financial Report: For the Half Year Ending 31 March 2006 Highlights • Total income £88 million (2005: £68 million) an increase of 28%. • Profit before tax and exceptional charge £17.3 million (2005: £12.0 million) an increase of 44%. • Profit before tax £17.3 million (2005: £7.2 million) a 140% increase. • Diluted earnings per share excluding exceptional charge 5.8p (2005: 4p) an increase of 45% or 152% increase after 2005 exceptional charge. • Basic earnings per share excluding exceptional charge 6p (2005: 4.1p) an increase of 46% or 150% increase after 2005 exceptional charge. • Total client funds £22 billion of which £19 billion is managed, £8.5 billion on a discretionary basis. Jamie MathesonExecutive Chairman said: "We continue to be successful in attracting both teams and individuals of thehighest calibre to the firm. Since 1 October 2005, a total of 27 fund managershave joined the Group. As ever it would be foolhardy to become embroiled in detailed forecasts aboutthe short-term outlook; however the second half of the year has started well." 23 May 2006 Media Enquiries: Brewin DolphinJamie Matheson / John Hall - 020 7248 4400Charlotte Black - 020 7246 1060 Citigate Dewe RogersonToby Mountford - 020 7282 2820Anthony Kennaway - 020 7282 1076 Chairman's Statement I am pleased to report to Shareholders that the first half of the current yearhas seen your Group make further good progress. Income during the period underreview rose by some 28% to just short of £88 million. Profit on ordinaryactivities before tax and exceptional charge rose by 44%; or, after taking intoaccount the 2005 exceptional charge, by 140%. Diluted earnings per share were 5.8p, a 45% increase or a 152% increase afterthe 2005 exceptional charge. Basic earnings per share were 6p, an increase of46% on 2005 or a 150% increase after the 2005 exceptional charge. This progress reflects improved performances across the Group. Discretionaryincome moved ahead by 30% giving rise to a 42% increase in profit while incomeand profit on advisory funds rose by 8% and 18% respectively. Our CorporateBroking activities enjoyed a particularly strong first half with a 125% increasein turnover giving rise to a 152% increase in profitability. Clearly thisperformance has been achieved against a favourable market background with thehelp of the FTSE100 index rising by 20% over the twelve months to 31 March 2006and 10% over the six months under review. This illustrates that a significantelement of the Group's progress can therefore be attributed to strong organicgrowth, as well as the contribution from new teams joining the Group,notwithstanding the market rise. We continue to be successful in attracting both teams and individuals of thehighest calibre to the firm. Since 1 October 2005, a total of 27 fund managershave joined the Group. At the last year end I reported on the opening of a newoffice in Belfast, Northern Ireland, and I am delighted to tell you that thiscontinues to progress most satisfactorily and our Exeter office, opened the yearbefore is now making strong profits. I am also happy to report that goodprogress is being made by teams that have joined existing offices within theGroup especially in London and Leicester. At the end of the period total client funds reached £22 billion (Sept 2005: £19billion) of which £19 billion (Sept 2005: £17 billion) is managed, including£8.5 billion (Sept 2005: £6.9 billion) on a discretionary basis. Within our Corporate Broking Division, it is worthy of note that the increasedlevel of activity has come hand in hand with a noticeable increase in the sizeof transactions and projects that the division is examining and enacting. Your Company continues to pursue its policy of providing bespoke services to itsclients with a strong emphasis on local presence. This can only be achievedwith the hard work and dedication of all our people and I have great pleasure inthanking them for their contribution to the Company's objectives. We continue to invest in our infrastructure in order to pursue our goal of highlevels of client service. This year has seen material investment in ourInformation Systems in particular the work to introduce Business Architects'eXimius Investment Management System, which will provide a fully integratedmethod of managing Client Assets. This has been supported with furtherinvestment in our infrastructure for enhanced resilience and BusinessContinuity. Work is also underway on moving our London office to new open planoffices which will provide an improved and effective environment for both ourclients and teams that work in London. A first interim dividend of 2.5 pence per share (2 pence per share in 2005) wasdeclared at our AGM in February and was paid on 6 April 2006. As last year, theBoard will consider the payment of a second interim dividend in September 2006,which would be paid towards the end of October 2006. I am delighted to be able to inform Shareholders that David McCorkell has joinedthe Board today, 23 May 2006. David is responsible for our offices in Scotlandand Northern Ireland and has been a member of the operating Company board for anumber of years. I am confident that David will make a meaningful contributionto the management of the affairs of your Company and I look forward to workingwith him. As ever it would be foolhardy to become embroiled in detailed forecasts aboutthe short-term outlook; however the second half of the year has started well. Jamie MathesonExecutive Chairman23 May 2006 Independent Review Report Independent Review Report to Brewin Dolphin Holdings PLC Introduction We have been instructed by the company to review the financial information forthe 26 week period ended 31 March 2006 which comprises the Consolidated IncomeStatement, the Consolidated Statement of Recognised Income and Expense, theConsolidated Balance Sheet, the Consolidated Cash Flow Statement and the relatednotes 1 to 10. We have read the other information contained in the interimreport and considered whether it contains any apparent misstatements or materialinconsistencies with the financial information. This report is made solely to the company in accordance with Bulletin 1999/4issued by the Auditing Practices Board. Our work has been undertaken so that wemight state to the company those matters we are required to state to them in anindependent review report and for no other purpose. To the fullest extentpermitted by law, we do not accept or assume responsibility to anyone other thanthe company, for our review work, for this report, or for the conclusions wehave formed. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by, the directors. The directorsare responsible for preparing the interim report in accordance with the ListingRules of the Financial Services Authority which require that the accountingpolicies and presentation applied to the interim figures are consistent withthose applied in preparing the preceding annual accounts except where anychanges, and the reasons for them, are disclosed. International Financial Reporting Standards As disclosed in note 1a, the next annual financial statements of the group willbe prepared in accordance with International Financial Reporting Standards asadopted for use in the EU. Accordingly, the interim report has been prepared inaccordance with the recognition and measurement criteria of IFRS and thedisclosure requirements of the Listing Rules. Review work performed We conducted our review in accordance with the guidance contained in Bulletin1999/4 issued by the Auditing Practices Board for use in the United Kingdom. Areview consists principally of making enquiries of group management and applyinganalytical procedures to the financial information and underlying financial dataand, based thereon, assessing whether the accounting policies and presentationhave been consistently applied unless otherwise disclosed. A review excludesaudit procedures such as tests of controls and verification of assets,liabilities and transactions. It is substantially less in scope than an auditperformed in accordance with International Standards on Auditing (UK andIreland) 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 26 week periodended 31 March 2006. Deloitte & Touche LLPChartered AccountantsLondon23 May 2006 Consolidated Income Statement26 week period ended 31 March 2006 Unaudited Unaudited Audited 26 weeks to 26 weeks to 53 weeks to 31 March 25 March 30 September 2006 2005 2005 Note £'000s £'000s £'000sContinuing operationsRevenue 83,517 64,496 136,563Other operating income 4,100 3,828 8,097Total income 3 87,617 68,324 144,660 Staff costs (45,141) (35,486) (78,293)Other operating costs (27,557) (27,558) (52,899) (72,698) (63,044) (131,192) Operating profit 14,919 5,280 13,468Dividend receivable - - 221Interest receivable and similar income 2,355 1,998 4,334Finance income 2,355 1,998 4,555Finance costs (3) (96) (254) Profit on ordinary activities before 3 17,271 12,020 24,600exceptional itemExceptional item 4 - (4,838) (6,831) Profit before tax 17,271 7,182 17,769Tax (5,357) (2,443) (5,555)Profit attributable to equity shareholders of 11,914 4,739 12,214the parent from continuing operations Earnings per share From continuing operationsBasic 5 6.0p 2.4p 6.2p Diluted 5 5.8p 2.3p 6.0p Consolidated Statement of Recognised Income and Expense26 week period ended 31 March 2006 Unaudited Unaudited Audited 26 weeks to 26 weeks to 53 weeks to 31 March 25 March 30 September 2006 2005 2005 £'000s £'000s £'000s Gain on revaluation of available-for-sale 1,161 - 1,144 investmentsTax on revaluation of available-for-sale (348) - (343) investmentsActuarial loss on defined benefit pension (530) 34 (666) schemeTax on actuarial loss on defined benefit 159 (10) 200 pension scheme Deferred tax on share based payments 795 262 599Net income recognised directly in equity 1,237 286 934Profit for period 11,914 4,739 12,214Total recognised income and expense for the 13,151 5,025 13,148 period attributable to equity shareholders of the parent Consolidated Balance SheetAs at 31 March 2006 Unaudited as Unaudited as Audited as at at at 31 March 25 March 30 September 2006 2005 2005 £'000s £'000s £'000s NoteASSETSNon-current assetsGoodwill 44,440 39,074 43,624Property, plant and equipment 10,450 7,216 9,168Available for sale investments 10,115 7,500 8,954Other receivables 1,938 2,476 1,938Deferred tax asset 3,358 2,230 2,908 70,301 58,496 66,592Current assetsTrading investments 811 1,057 1,227Trade and other receivables 261,024 292,901 231,717Cash and cash equivalents 54,203 40,117 50,392 316,038 334,075 283,336Total assets 386,339 392,571 349,928 Current liabilitiesBank overdraft 291 2,293 164Trade and other payables 275,426 299,736 251,520Current tax liabilities 5,318 2,293 2,259Shares to be issued including premium 1,000 2,700 2,928 282,035 307,022 256,871Net current assets 34,003 27,053 26,465 Non-current liabilitiesRetirement benefit obligation 8 13,121 12,430 12,937Shares to be issued including premium 3,072 - 3,072 16,193 12,430 16,009Total liabilities 298,228 319,452 272,880Net assets 88,111 73,119 77,048 EquityCalled up share capital 9 1,989 1,964 1,965Share premium account 9 81,812 79,209 79,287Revaluation reserve 9 6,562 4,948 5,749Merger reserve 9 4,562 4,562 4,562Profit and loss account 9 (6,814) (17,564) (14,515)Total equity 9 88,111 73,119 77,048 Consolidated Cash Flow Statement26 week period ended 31 March 2006 Unaudited Unaudited Audited 26 weeks to 26 weeks to 53 weeks to 31 March 25 March 30 September 2006 2005 2005 Note £'000s £'000s £'000sNet cash flow from operating activities 7 12,285 (5,134) 16,075 Cash flows from investing activitiesPurchase of goodwill (758) (707) (1,483)Purchases of property, plant and (3,491) (2,205) (6,291) equipmentPurchases of available-for-sale - - (310) investmentsDividends received from available-for-sale - - 221 investments Net cash used in investing activities (4,249) (2,912) (7,863) Cash flows from financing activitiesDividends paid to equity shareholders (4,914) (3,910) (7,837)Proceeds on issue of shares 562 137 210Net cash used in financing activities (4,352) (3,773) (7,627) Net increase/(decrease) in cash and cash 3,684 (11,819) 585 equivalents Cash and cash equivalents at the start of 50,228 49,643 49,643 periodCash and cash equivalents at the end of 53,912 37,824 50,228 period CashFirm's cash 35,417 28,634 38,168Firm's overdraft (291) (2,293) (164)Firm's net cash 35,126 26,341 38,004Client settlement cash 18,786 11,483 12,224 53,912 37,824 50,228 Notes to the Interim Financial Report 1. Basis of preparation a. 2006 interim financial information For the year ending 30 September 2006 the Group will be required to prepareconsolidated financial statements under 'International Financial ReportingStandards' as adopted by the European Commission. These will be thoseInternational Accounting Standards, International Financial Reporting Standardsand related Interpretations (SIC-IFRIC interpretations), subsequent amendmentsto those standards and related interpretations and future standards and relatedinterpretations issued or adopted by the International Accounting StandardsBoard (IASB) that have been endorsed by the European Commission. This process isongoing and the Commission has yet to endorse certain documents issued by theIASB. The interim financial report has been prepared in accordance with therecognition and measurement criteria of International Financial ReportingStandards, the disclosure requirements of the Listing Rules and the accountingpolicies that the directors anticipate will be adopted in the annual financialstatements for the year ending 30 September 2006. These accounting policieswere set out in the Preliminary IFRS Financial Information included in theGroup's Annual Report and Accounts for the year ended 30 September 2005, whichis available on the Group's web site www.brewindolphin.co.uk. As permitted by IFRS 1, the Group has elected: to present comparativeinformation in accordance with IAS 32 Financial Instruments: Disclosure andPresentation and IAS 39 Financial Instruments: Recognition and Measurement; notto restate its financial information for acquisitions occurring before 25September 2004; to recognise all actuarial gains and losses on pensions andother post-retirement benefits directly in equity attributable to equity holdersof the parent at 25 September 2004; and to apply IFRS 2 to all grants of equityinstruments after 7 November 2002 that had not vested as of 1 January 2005.Operating profit is stated before finance income and finance costs. b. 2005 comparative financial information In preparing the 2005 comparative information, the Group has adjusted amountspreviously reported under UK Generally Accepted Accounting Principles ('UKGAAP'). The reconciliation of UK GAAP to IFRS financial information for the 53week period ended 30 September 2005 is set out in in the Group's Annual Reportand Accounts for the year ended 30 September 2005 which is available on theGroup's web site www.brewindolphin.co.uk. The impact of the transition from UKGAAP to IFRS as at 25 March 2005 is shown in note 10 of this interim financialreport. 2. Section 240 statement The financial information set out in this document in respect of the year ended30 September 2005 does not constitute the Group's statutory accounts for theyear ended 30 September 2005 within the meaning of section 240 of the CompaniesAct 1985. Those accounts were prepared under UK GAAP and have been reported onby the Company's auditors and delivered to the Registrar of Companies. Theauditors report was unqualified and did not contain a statement under section237 (2) or (3) of the Companies Act 1985. A copy of this statement is availableat the Company's registered office at 5 Giltspur Street, London EC1A 9BD and acopy will be posted to all shareholders. 3. Segmental information For management purposes, the Group is divided into two business streams: privateclient investment management and corporate broking. These form the basis for theprimary segment information reported below. All operations are carried out inthe United Kingdom and the Channel Islands. Unaudited Unaudited Audited 26 weeks to 26 weeks to 53 weeks to 31 March 25 March 30 September 2006 2005 2005 £'000s £'000s £'000sTotal incomePrivate client investment managementDiscretionary portfolio management 38,652 29,641 69,165Advisory portfolio management 35,185 32,549 61,243 73,837 62,190 130,408Corporate broking 13,780 6,134 14,252 87,617 68,324 144,660 Profit on ordinary activities before exceptional item and tax Private client investment managementDiscretionary portfolio management 6,029 4,244 9,625Advisory portfolio management 5,227 4,421 7,809 11,256 8,665 17,434Corporate broking 3,663 1,453 2,865 14,919 10,118 20,299Finance income (net) 2,352 1,902 4,301 17,271 12,020 24,600 4. Exceptional item, Split capital trusts, other claims and contingent asset In December 2004 the Group made a £5m contribution to a fund (Fund DistributionLimited) set up under the auspices of the Financial Services Authority for thosewho have lost money in Zero Dividend Shares. The 2005 exceptional charge,included within other operating costs and staff costs, represented this payment,less an insurance recovery, plus other directly attributable costs. Thesecharges are considered to be exceptional due to their size and the unusualnature of their incidence. The Directors remain in discussion with the Group's insurers in respect ofclaims for costs already incurred and expensed regarding split capital trusts.An estimate of the potential favourable financial effect is not given as theDirectors consider that any such disclosure would seriously prejudice theirongoing negotiations with insurers. Various legal actions and complaints have been made against the Group for whichlegal proceedings are in progress. Provision for any payments arising for theseclaims has been made and included within trade and other payables, and expectedrecoveries from insurers included within trade and other receivables, where theGroup has been advised that it is probable that a specific liability will arise.These items are not disclosed separately as provisions or debtors, as theDirectors consider that disclosure of any further information would seriouslyprejudice the position of the Group. The Directors believe that any furtherclaims will be fully covered by insurance. 5. Earnings per share Unaudited Unaudited Audited 26 weeks to 26 weeks to 53 weeks to 31 March 25 March 30 September 2006 2005 2005Earnings attributable to ordinaryshareholders No. No. No. '000 '000 '000BasicWeighted average number of shares in issue 197,041 196,027 196,227 in the periodDilutedWeighted average number of options 5,935 2,830 3,070 outstanding for the periodEstimated weighted average number of 3,628 3,433 5,421 shares earned under deferred consideration arrangementsDiluted weighted average number of options 206,604 202,290 204,718 and shares for the period £'000s £'000s £'000sBasic profit for the period and 11,914 4,739 12,214 attributable earningsExceptional item - 4,838 6,831less tax on exceptional item - (1,451) (2,049)Adjusted basic profit for the period and 11,914 8,126 16,996 attributable earningsFrom continuing operations Basic 6.0p 2.4p 6.2pDiluted 5.8p 2.3p 6.0p From continuing operations excluding exceptional item Basic 6.0p 4.1p 8.7pDiluted 5.8p 4.0p 8.3p 6. Dividend Unaudited Unaudited Audited 26 weeks to 26 weeks to 53 weeks to 31 March 25 March 30 September 2006 2005 2005 £'000s £'000s £'000s First interim dividend paid 6 April 4,970 3,927 3,9272006, 2.5p per share (2005: 2.0p)Second interim dividend paid 25 October - - 4,9142005, 2.5p per share 4,970 3,927 8,841 7. Note to the cash flow statement Unaudited Unaudited Audited 26 weeks to 26 weeks to 53 weeks to 31 March 25 March 30 September 2006 2005 2005 £'000s £'000s £'000s Operating profit 14,919 5,280 13,468Adjustments for:Depreciation of property, plant and 2,209 2,197 4,312 equipmentRetirement benefit obligation (346) (149) (671)Share based payment cost 333 165 494Interest income 2,355 1,998 4,334Interest expense (3) (6) (15)Operating cash flows before movements in 19,467 9,485 21,922 working capitalIncrease in debtors and trading (28,891) (96,308) (34,757) investmentsIncrease in creditors 23,850 84,729 35,020Cash generated by operating activities 14,426 (2,094) 22,185Tax paid (2,141) (3,040) (6,110)Net cash flow from operating activities 12,285 (5,134) 16,075 Cash and cash equivalents comprise cash at bank and bank overdrafts. 8. Retirement benefit obligation The main financial assumptions used in calculating the Group's retirementbenefit obligation are as follows: 31 March 2006 30 September 2005Discount rate 5.0% 5.0%Inflation 2.9% 2.8%Salary increases 2.9% 2.8%Expected return on equities 7.7% 7.7%Expected return on bonds 4.7% 4.7%Expected return on other assets 4.5% 4.5% The Trustees are carrying out a valuation of the scheme as at 31 December 2005.Compared to previous disclosures, the liabilities reflect improved mortality,and the fact that, on retirement, many members elect to exchange some of theirpension for a tax free lump sum. These factors have been reflected in the halfyear calculation offsetting what would have otherwise been a favourablemovement. 9. Reconciliation of changes in equity Called Shares to Share Revaluation Merger Profit and Total up be issued premium reserve reserve loss share including account account capital premium £'000s £'000s £'000s £'000s £'000s £'000s £'000s24 September 2004 * 1,955 - 79,081 4,948 3,929 (18,827) 71,086Profit for the period - - - - - 4,739 4,739Dividends paid - - - - - (3,927) (3,927)Issue of shares 9 - 128 - 633 - 770Revaluation - - - - - - -Deferred tax on items taken directly to equity - - - - - 252 252Share based payments - - - - - 165 165Actuarial gain on defined benefit pension - - - - - 34 34 scheme25 March 2005 1,964 - 79,209 4,948 4,562 (17,564) 73,119Profit for the period - - - - - 7,787 7,787Dividends paid - - - - - (4,914) (4,914)Issue of shares 1 - 78 - - - 79Revaluation - - - 1,144 - - 1,144Deferred tax on items taken directly to equity - - - (343) - 547 204Share based payments - - - - - 329 329Actuarial loss on defined benefit pension - - - - - (700) (700) scheme30 September 2005 1,965 - 79,287 5,749 4,562 (14,515) 77,048Profit for the period - - - - - 11,914 11,914Dividends paid - - - - - (4,970) (4,970)Issue of shares 24 - 2,525 - - 2,549Revaluation - - - 1,161 - - 1,161Deferred tax on items taken directly to equity - - - (348) - 954 606Share based payments - - - - - 333 333Actuarial loss on defined benefit pension - - - - - (530) (530) scheme31 March 2006 1,989 - 81,812 6,562 4,562 (6,814) 88,111 Balance at 24 September 2004 - UK GAAP 1,955 3,400 79,081 7,069 3,929 (10,188) 85,246IFRS adjustments - (3,400) - (2,121) - (8,639) (14,160)* Balance at 24 September 2004 under IFRS 1,955 - 79,081 4,948 3,929 (18,827) 71,086 10. Explanation of transition to IFRS The reconciliation of equity as at 30 September 2005 (the date of the last UKGAAP financial statements) and the reconciliation of profit for the 53 weekperiod ended 30 September 2005, as required by IFRS 1, plus the significant IFRSaccounting policies were set out in the Preliminary IFRS Financial Informationincluded in the Group's Annual Report and Accounts for the year then ended whichis available on the Group's web site www.brewindolphin.co.uk . The note references below refer to the notes contained in the Preliminary IFRSFinancial Information within the Group's Annual Report and Accounts for the yearended 30 September 2005 on pages 52 - 56. a. Effect of IFRS on the UK GAAP consolidated balance sheet as at 24 September 2004 and reconciliation of equity. Audited UK Adjustments Audited IFRS GAAP as at as at 24 September 24 September 2004 2004 Note £'000s £'000s £'000sASSETSNon-current assetsGoodwill h 38,589 - 38,589Property, plant and equipment f,n 7,208 - 7,208Available for sale investments g 7,500 - 7,500Other receivables - 2,438 2,438Deferred tax asset k - 2,489 2,489 53,297 4,927 58,224Current assetsTrading investments 298 - 298Trade and other receivables 200,374 (2,984) 197,390Cash and cash equivalents 50,701 - 50,701 251,373 (2,984) 248,389Total assets 304,670 1,943 306,613 Current liabilitiesBank overdraft 1,058 - 1,058Trade and other payables 215,515 - 215,515Current tax liabilities 2,851 - 2,851Shares to be issued including premium q - 1,700 1,700 219,424 1,700 221,124Net current assets 31,949 (4,684) 27,265 Non-current liabilitiesRetirement benefit obligation j - 12,703 12,703Shares to be issued including premium q - 1,700 1,700 - 14,403 14,403Total liabilities 219,424 16,103 235,527Net assets 85,246 (14,160) 71,086 EquityCalled up share capital 1,955 - 1,955Shares to be issued including premium q 3,400 (3,400) -Share premium account 79,081 - 79,081Revaluation reserve 7,069 (2,121) 4,948Merger reserve 3,929 - 3,929Profit and loss account (10,188) (8,639) (18,827)Total equity 85,246 (14,160) 71,086 b. Effect of IFRS on the UK GAAP consolidated balance sheet as at 25 March 2005 and reconciliation of equity. Unaudited Adjustments Unaudited UK GAAP as at IFRS as at 25 March 2005 25 March 2005 Note £'000s £'000s £'000sASSETSNon-current assetsGoodwill h 37,107 1,967 39,074Property, plant and equipment f,n 7,216 - 7,216Available for sale investments g 7,500 - 7,500Other receivables - 2,476 2,476Deferred tax asset k - 2,230 2,230 51,823 6,673 58,496Current assetsTrading investments 1,057 - 1,057Trade and other receivables 295,377 (2,476) 292,901Cash and cash equivalents 40,117 - 40,117 336,551 (2,476) 334,075Total assets 388,374 4,197 392,571 Current liabilitiesBank overdraft 2,293 - 2,293Trade and other payables 299,410 326 299,736Current tax liabilities 1,935 358 2,293Shares to be issued including q - 2,700 2,700premium 303,638 3,384 307,022Net current assets 32,913 (5,860) 27,053 Non-current liabilitiesRetirement benefit obligation j - 12,430 12,430Shares to be issued including q - - -premium - 12,430 12,430Total liabilities 303,638 15,814 319,452Net assets 84,736 (11,617) 73,119 EquityCalled up share capital 1,964 - 1,964Shares to be issued including q 2,700 (2,700) -premiumShare premium account 79,209 - 79,209Revaluation reserve 7,069 (2,121) 4,948Merger reserve 4,562 - 4,562Profit and loss account (10,768) (6,796) (17,564)Total equity 84,736 (11,617) 73,119 c. Effect of IFRS on the UK GAAP consolidated income statement for the 26 week period ended 25 March 2005. Unaudited UK Adjustments Unaudited GAAP IFRS 26 weeks to 26 weeks to 25 March 2005 25 March 2005 Note £'000s £'000s £'000sContinuing operationsRevenue d 64,496 - 64,496Other operating income m 3,828 - 3,828Total income 68,324 - 68,324 Staff costs* j & o (35,235) (251) (35,486)Other operating costs h (29,525) 1,967 (27,558) (64,760) 1,716 (63,044) Operating profit 3,564 1,716 5,280Dividend receivable - - -Interest receivable and similar 1,998 - 1,998incomeFinance costs j (6) (90) (96) Profit on ordinary activities before 12,361 (341) 12,020goodwill amortisation and exceptional itemExceptional item (4,838) - (4,838)Goodwill amortisation h (1,967) 1,967 - Profit before tax 5,556 1,626 7,182Tax k (2,210) (233) (2,443) Profit attributable to equity shareholders 3,346 1,393 4,739of the parent from continuing operations * Staff costs adjustment includes holiday pay adjustment of £325,000 debit. d. Effect of IFRS on the consolidated cash flow statement. There have been no material adjustments to the cash flow statement for the 26week period ended 25 March 2005 or for the 53 week period ended 30 September2005 resulting from transition to IFRS. However, the presentation of theconsolidated cash flow statement has changed, whereby cash flows are classifiedas operating, investing or financing. Funds At 31 March At 25 March At 30 September 2006 2005 2005 £ Billion £ Billion £ Billion In Group's nominee or sponsored member 8.0 5.8 6.5Stock not held in Group's nominee 0.5 0.2 0.4Discretionary funds under management 8.5 6.0 6.9 In Group's nominee or sponsored member 7.6 6.1 6.7Other funds where valuations are carried 3.3 3.1 3.3 out but where the stock is not under the Group's controlAdvisory funds under management 10.9 9.2 10.0 Managed funds 19.4 15.2 16.9 In Group's nominee or sponsored member 2.3 2.0 2.0Stock not held in Group's nominee 0.4 0.3 0.3Execution only stock 2.7 2.3 2.3 Total funds 22.1 17.5 19.2 StockIn Group's nominee or sponsored member 17.9 13.9 15.2Stock not held in Group's nominee 4.2 3.6 4.0 22.1 17.5 19.2 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
BRW.L