Interim Results

Walker Crips Group PLC

Results for the six months ended 30 September 2010

Walker Crips Group PLC ("Walker Crips", the "Company" or the "Group"), the financial services firm with activities covering stockbroking, portfolio and fund management, corporate finance and personal financial services, today announces results for the six months ended 30 September 2010 ("the period").

Highlights

·; Revenue up 17% to £9.97m (2009: £8.51m)

·; Operating profit increased by 12% to £0.86m (2009: £0.77m)

·; Pre-tax profit up 10% to £0.90m (2009: £0.82m)

·; Basic EPS up 9% to 1.74p (2009: 1.6p)

·; Interim dividend maintained at 0.94p per share (2009: 0.94p)

·; In-house Funds under management increased by 19% over the six month period to 30 September 2010 to £750m (31 March 2010: £630m)

·; Non-broking income as a proportion of total income increased to 55% (2009: 51%)

Commenting on the results, David Gelber, Chairman of Walker Crips said: 'The Group is well placed to capitalise on further market improvements due to its established position in the sector and expanding range of services. Whilst short term investor sentiment remains fragile, the Group's healthy balance sheet should allow us to withstand any further volatility. The second half has started reasonably well, in line with expectations. If conditions remain similar to those experienced during the first half of the year the Board expects the Company to continue its historical trend of achieving strong trading results in the second half.'

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Further information on Walker Crips Group is available on the Company's website: www.wcgplc.co.uk

Chairman's statement

I am pleased to report a significant improvement in the Group's first half performance when compared to the same period last year, as market volatility reduced and investor confidence continued to improve.

Revenue has risen by 17% to £9.97m against £8.51m in the comparative period. After incurring a modest increase in administration expenses and higher commission payable the additional revenue has enabled the achievement of a 12% improvement in operating profit to £0.86m (2009: £0.77m).

Profit before tax increased by 10% to £0.90m (2009: £0.82m) although low interest rates continue to depress the Group's investment income.

Non-broking income as a proportion of total income improved to 55% (2009: 51%) in line with the Board's continued desire to diversify the Group's revenue streams and reduce its reliance on volatile commission revenues.

Operations

WCAM, our in-house fund management division, continued to make excellent progress over the period, increasing funds under management by 19% to £750m (31 March 2010: £630m; 30 September 2009: £519m). New inflows have contributed significantly to this increase and the reputation of our fund managers, Stephen Bailey and Jan Luthman, continues to grow.

The investment management / stockbroking division saw a 16% improvement in gross revenues during the period to £7.1m (2009: £6.1m), a robust performance when set against a fairly static equity market. The FTSE 100 index fell by 2.3% over the six month period.

The increasing use of sophisticated products is contributing materially in assisting many of our clients to achieve their investment objectives. During the first half the team at Walker Crips Structured Investments successfully launched a further range of products and, having captured market share, is building a solid track record of innovative ideas appealing to clients with suitable medium to long-term investment strategies. The private clients operation benefited from efficiencies obtained following the successful integration of York and London based personnel into one division.

Activity in the microcap corporate sector began to pick up towards the end of the period allowing corporate finance revenues to be maintained at similar levels to last year. This, when combined with the cost reduction exercise, has reduced the division's loss by 33%. Retained clients at the period end stood at 15 (2009:11) and the pipeline remains encouraging.

Despite a small fall in revenue at our York-based financial services division, there was an encouraging 5% increase in SIPPs under administration, the flagship product of the re-branded Walker Crips Pensions division.

Expenses / Liquidity

Administrative expenses during the period increased by 13% to £6.4m (2009: £5.6m). The Group's salary incentive arrangements align rewards with business performance and the improvements delivered during the period have therefore led to higher variable employment costs. As previously highlighted, additional expenses were also incurred as the Board strengthened further the Group's control environment.

Cash balances had reduced to £3.2m by the period end (31 March 2010: £5.7m) principally as a result of day to day variations in client settlement requirements and related swings in the components of working capital. Liquid assets in the form of net current assets at the period end of £6.7m remain at the same level as at the year end (31 March 2010: £6.7m). The net asset base, even after the repurchase of 300,000 ordinary shares into treasury in July 2010, remains healthy, allowing your Board to conclude, in accordance with guidance from the Financial Reporting Council, that the use of the going concern basis for the preparation of the financial statements continues to be appropriate.

Dividend

I am pleased to announce that the interim dividend is to be maintained at 0.94p per share (2009: 0.94p per share). Our aim is to reward shareholders with a steady income level whilst retaining sufficient resources within the business to fund future growth. The dividend will be paid on 10 December 2010 to those shareholders on the register at the close of business on 26 November 2010.

Directors, Account Executives and Staff

On behalf of the Board, I would like to once again thank my fellow directors, all account executives and members of staff for their continued professionalism and dedication throughout the period.

Outlook

The Group is well placed to capitalise on further market improvements due to its established position in the sector and expanding range of services. Whilst short term investor sentiment remains fragile, the Group's healthy balance sheet should allow us to withstand any further volatility. The second half has started reasonably well, in line with expectations. If conditions remain similar to those experienced during the first half of the year the Board expects the Company to continue its historical trend of achieving strong trading results in the second half.

D. M. Gelber

Chairman

16 November 2010

Walker Crips Group plc

Notes to the condensed consolidated financial statements

For the six months ended 30 September 2010

1. Basis of preparation and accounting policies

The Group's consolidated financial statements are prepared in accordance with International Financial Reporting Standards as adopted by the EU (IFRS). These condensed financial statements are presented in accordance with IAS 34 Interim Financial Reporting.

The condensed consolidated financial statements have been prepared on the basis of the accounting policies and methods of computation set out in the Group's consolidated financial statements for the year ended 31 March 2010 except for the adoption of IFRS 3 Business Combinations (Revised 2008).

The adoption of IFRS 3 Business combinations (Revised 2008) does not affect the financial position or profits of the Group as there have been no acquisitions during the period.

The condensed consolidated financial statements should be read in conjunction with the Group's audited financial statements for the year ended 31 March 2010.The interim financial information is unaudited and does not constitute statutory accounts as defined in section 434 of the Companies Act 2006.The Group's financial statements for the year ended 31 March 2010 have been reported on by the auditors and delivered to the Registrar of Companies. The report of the auditors was unqualified and did not draw attention to any matters by way of emphasis. They also did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The directors are satisfied that the Group has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

The Group's share of the assets, liabilities, income and expenses of jointly controlled entities are accounted for in the consolidated financial statements under the equity method.

Income from the sale or use of the Group's share of the output of jointly controlled assets, and its share of the joint venture expenses, are recognised when it is probable that the economic benefits associated with the transactions will flow to / from the Group and their amount can be measured accurately.

Goodwill arising on consolidation represents the excess of the cost of acquisition over the Group's interest in the fair value of the identifiable assets and liabilities of a subsidiary or jointly controlled entity at the date of acquisition. Goodwill is initially recognised as an asset at cost and reviewed for impairment at least annually. Any impairment is recognised immediately in profit or loss and is not subsequently reversed in future periods.

Intangible assets

At each period end date, the Group reviews the carrying amounts of its intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to which the assets belong.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profits, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that is probable that taxable profits will be available against which deductible temporary differences can be utilised.

The Group operates a number of share option schemes for employees and account executives. The charge to the income statement is determined by the fair value of the options granted at the date of grant and recognised over the vesting period.

Under the Financial Services Authority's Disclosure and Transparency Rules, the Directors are required to identify those material risks to which the company is exposed and take appropriate steps to mitigate those risks. The principal risks and uncertainties faced by the Group remain unchanged from the year end and are discussed in detail in the Annual Report for the year ended 31 March 2010.

Related party transactions

No transactions took place in the period that would materially or significantly affect the financial position or performance of the Group.

3. Earnings per share

The calculation of basic earnings per share for continuing operations is based on the post-tax profit for the period of £633,000 (2009 - £576,000) and on 36,301,187 (2009 - 36,554,482) ordinary shares of 6 2/3p, being the weighted average number of ordinary shares in issue during the period.

The effect of options would be to reduce the reported earnings per share. The calculation of diluted earnings per share is based on 37,151,959 (2009 - 37,429,745) ordinary shares, being the weighted average number of ordinary shares in issue during the period adjusted for dilutive potential ordinary shares.

4. Dividends

The interim dividend of 0.94p per share (2009 : 0.94p) is payable on the 10 December 2010 to shareholders on the register at the close of business on the 26 November 2010. The interim dividend has not been included as a liability in this interim report.

Directors' Responsibility Statement

The Directors confirm that to the best of their knowledge:

(a) The condensed set of financial statements contained within the half yearly financial report has been prepared in accordance with IAS 34 ' Interim Financial Reporting' as adopted by the EU;

(b) The half yearly report from the Chairman (constituting the interim management report) includes a fair review of the information required by DTR 4.2.7R; and

(c) The half yearly report from the Chairman includes a fair review of the information required by DTR 4.2.8R as far as applicable.

On Behalf of the Board

Rodney FitzGerald

Chief Executive Officer

16 November 2010