19th Sep 2005 07:00
Raven Mount plc19 September 2005 RAVEN MOUNT PLC ("Raven Mount" or the "Group") INTERIM STATEMENT OF RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2005 19 September 2005 HIGHLIGHTS • Group profit before tax of £3.1 million (2004: £0.7 million) on turnover, net of turnover from trading Joint Ventures, of £40.5 million (2004: £40.3 million). • Includes turnover and operating profit from land sales of £17.8 million (2004: Nil) and £8.5 million (2004: Nil) respectively, primarily from the sale of Yaxley, which contributed £6.9 million to the operating profit. • First steps in becoming an external property fund manager, through its contract with Raven Russia Limited. • Agreed Heads of Terms on the restructuring of Raven Audley Court, our Assisted Living Business. • Continued realisation of Swan Hill assets through land disposals and completion of developments, in a tough UK housing market. • Significant progress on planning on the major RPH sites, following its acquisition in December 2004. • Sale of High Royds (Leeds) and Clifton Hall (Nottingham) post H1 expected to realise £12.4 million in cash in this current half year. • Interim dividend of 0.5p per ordinary share. • Net assets per ordinary share of 79p, including pension deficit. • Under actuarial valuation as at 5 April 2005, the pension deficit for funding purposes has increased from £3.8 million to £9.3 million, increasing the annual contribution to £1.57 million payable over the next six years, with additional payments totalling £1.05 million in 2005. The Company will also pay a further £0.2 million per annum towards administration costs. • Net cash of £11.5 million (2004: net cash deficit of £(15.8) million). Commenting on today's announcement, Anton Bilton, Executive Chairman of RavenMount plc, said: "2005 has continued to be a period of remarkable transformationfor our company, in particular with the successful launch of Raven Russia." Bim Sandhu, Chief Executive, said: "Excellent progress has been made on planning in relation to the RPH assetsalong with the post H1 sale of High Royds and Clifton Hall which will realise£12.4 million in cash in this current half year." Enquiries to:Raven Mount plc Anton Bilton Bim Sandhu 020 7235 0422 CHAIRMAN'S STATEMENT 2005 has continued to be a period of remarkable transformation for our company. The integration of the Raven and Swan Hill teams has progressed well with theamalgamation of Raven's land buying team with Swan Hill's constructionmanagement team. More significantly, in July 2005, we have made a first step in becoming anexternal property fund manager through our relationship with Raven RussiaLimited. This company, floated on AIM on 29 July 2005, raised £153 million from anexceptionally high quality group of investors to invest in the Russian propertymarket with an initial focus on the warehouse market. Raven Mount has a five year contract to manage the acquisition of theseproperties based upon a fee of 2% of gross assets and with a performanceincentive. We are hopeful that the fee income from this contract with RavenRussia will increase rapidly as acquisitions are made and the performance ofthat portfolio outpaces our incentive return threshold. Members of your Board have spent considerable time in the last two yearsanalysing the macro environment in Russia and most particularly the variousasset classes within the Russian property market. After careful consideration itwas decided that the warehouse sector offers the greatest scope for aboveaverage returns due to large supply/demand imbalances in the market andprevailing yields available from a mixture of good quality Russian andinternational tenants. Raven Russia presently has a number of potentialacquisitions in solicitors' hands. Separately,we have agreed Heads of Terms and are in legals on restructuring ourAssisted Living Business joint venture, Raven Audley Court, so that in returnfor providing additional funding we increase our equity interest in the jointventure. This business is beginning to expand rapidly as more sites are placed undercontract throughout the UK and we are excited about its prospects with thegrowing demographics and increased awareness for the need for superior qualityhousing for the elderly. We remain very nervous of the UK housing market and of the UK economy as a wholeas the ramifications of a falling housing market start to take their effect onsentiment across the economy. Your company will continue to seek to establish further value-orientated nichebusinesses in the property sector both in the UK and internationally where itcan utilise its skill base so as to benefit from management fee income as wereinvent ourselves as an earnings focused business. We have been net sellers of our residential projects both at the retail leveland with our sites and believe that, in the main, the Company's capital is bestdirected towards new fund management opportunities where we can leverage ourreturns off the fee income we receive for successfully managing those projects. I am excited about the prospects for the future but feel it relevant to stressthat we still have further to go in finishing off some of the unprofitablelegacy projects we inherited and that the real benefits of our revised strategywill be felt more in the long term than in the medium term. Anton BiltonExecutive Chairman19 September 2005 CHIEF EXECUTIVE'S REPORT Results Turnover, net of turnover from Joint Ventures, for the six months to 30 June2005 was £40.5 million (2004: £40.3 million). The company sold 58 units (2004:107 units) at an average selling price of £388,000 (2004: £378,000). Theturnover includes £17.8 million (2004: Nil) from land sales and, as such,comparisons with prior periods are not directly relevant as the business seeksto reinvent itself over the next few years. Operating profit was £2.8 million (2004: £1.9 million) and group profit beforetaxation was £3.1 million (2004: £0.7 million). Whilst the increase in profitbefore tax compared to the prior period is at first sight encouraging and evenmore so when put in the context of an overall loss before tax for the year to 31December 2004 of £(7.4) million, the result is flattered by the profit on thesale of land, primarily at Yaxley which contributed £6.9 million towards pre-taxprofits and without which there would have been a pre-tax loss of £3.8 million. Net assets decreased from £95.1 million at the year end (as previously reported)to £88.6 million, largely as a result of the incorporation of the net ofdeferred tax FRS 17 deficit on the Swan Hill Pension Fund of £11.4m (grossdeficit of £16.3m). This is the first set of results that incorporate thisdeficit with the consequent impact on stated NAV. NAV per share was 79pcompared to the last stated year end figure of 90p per share on a fully dilutedbasis (79p on a comparable net pension liability basis). I should add that thecarrying value of the stock acquired from RPH does not include the deferred taxliability that would be payable if the assets were sold at those carryingvalues, for the accounting reasons set out in the 2004 Report and Accounts (seePage 13 - The accounting for the purchase of The Raven Group). As at 30 June2005, the liability unaccounted for was £5.9 million, which would be thereduction in NAV if deferred tax had been accounted for on the acquisition ofRPH. The overall cash position of the Company, however, continued to strengthen, withnet cash of £11.5 million as at 30 June 2005 compared to a net cash deficit of£15.8 million as at 30 June 2004. Operations Swan Hill properties The market continued to be poor for the former Swan Hill development sites andthe Company continues to dispose of such assets at realistic values with a viewto realising cash as quickly as possible. During the period 8 developments werecompleted and by the end of the first half of 2006 the Company should have only4 remaining developments under construction inherited as part of the acquisitionof Swan Hill Group PLC (now renamed Raven Property Group plc). The profitability overall on these sites is limited at best and economicallyloss making in most cases. The three most significant Swan Hill sites, in termsof capital employed and employee and other resources utilised, are Paramount(Swindon), Weybridge and Clifton (Bristol). In particular, I should note thatthe Company has made a significant provision on the Paramount (Swindon) sitewhich is currently under construction and is not expected to be completed untilthe end of 2006, and it may be necessary to make further provisions if themarket continues to deteriorate. I am however pleased to report the Company'sdecision to finish off the construction of the Weybridge site and to acceptrealistic values on sales has been vindicated by the exchanges and reservationstaken on the site in the first half of the year. Our current expectation isthat construction will be complete by the summer of next year and that we willhave sold all units by the end of next year. Although the site is not expectedto generate any significant profit, completion of the site should releasesignificant capital employed. Finally, construction work on the profitable siteat Clifton (Bristol) continues to progress well with the first units being readyfor completion in early 2006. 68 of the 70 units on this site are pre-sold andtherefore this too should release a significant amount of working capital nextyear as units are completed. Raven Property Holdings PLC ("RPH") properties I am pleased to report that excellent progress has been made on the planning onthe major sites set out in the Acquisition Agreement and valued by DTZ at thetime of the acquisition of RPH. Planning permission has been achieved, subjectto the expiry of the judicial review period, on High Royds Hospital (Leeds),Kelham Riverside Phase 2 (Sheffield), Baxter's Former Print Works (Lewes) andClifton Hall (Nottingham). Shareholders will recall that planning permissionhas previously been achieved on Kelham Riverside Phase 1, Flete House (Devon)and The Brighton Station site. In particular, post the half year end, I am pleased to announce that followingthe receipt of planning on High Royds the Company has entered into an agreementto sell its 50 per cent. interest in Raven Country & Metropolitan Ltd ("RC&M")to its joint venture partner, Country & Metropolitan Homes plc ("C&MH"),completion of which is expected on 29 September 2005. RC&M is a joint venturebetween RPH and C&MH for the development of the 212 acre former High RoydsHospital site in Leeds. C&MH was acquired by Gladedale Holdings plc ("Gladedale") in the first half of the year following which the Company and Gladedalereviewed the position of the joint venture and came to the conclusion that itwould be best for one or the other party to take full control. The total consideration for the shares is £8.6 million and the repayment of alloutstanding loans totalling £1.8 million together with accrued interest. Duringthe year ended 30 June 2005, RC&M generated an unaudited loss before tax of £(149,000) and as at the half year the joint venture was held in the balancesheet at £8.6 million. It should be noted that whilst RPH has made asubstantial profit on the sale of this asset as it was held at a negative valuein its books there will be no material contribution to overall Company profit asthe sale was made at a value equivalent to that paid to the former shareholdersof RPH. Furthermore, RPH has also disposed of Clifton Hall (Nottingham) site at the DTZvalue of £2.0 million. It is very pleasing that, in a market that has continued to deteriorate, we havemanaged to sell these two assets for cash at book values which were ascribed tothem at the time of the takeover of RPH. The sale proceeds will be used forgeneral Raven Mount corporate purposes. The transactions included above are not considered to have had a material effectat the half year on the fair value of RPH assets acquired. The Company will continue to review the other sites acquired from RPH with aview to maximising value, be it by entering into joint ventures, outright salesor development. A further update will be provided at the year end. Issue of Shares in relation to the acquisition of RPH Following the successful receipt of planning, discussed above, the Company willbe issuing up to approximately £14.1 million worth of shares at the end ofSeptember in accordance with the Acquisition Agreement for the RPH companies.The maximum consideration, payable in shares, for RPH was £39.9 million. £10.8million was paid on completion of the purchase in December 2004, £6.1 millionwas paid in March 2005 and assuming the amount of £14.1 million expected to bepaid at the end of September, the total consideration paid at that point in timewill be £31.0 million. This compares to a likely Fair Value of the assets to beacquired for the purposes of calculating the goodwill figure of £31.5 million asset out in the 2004 Report and Accounts. The directors will next be reviewingthe value of the remaining assets acquired at the year end. A further maximumamount of approximately £9.0 million, payable in shares, could be due to thevendors of the RPH shares, principally Anton Bilton and myself, depending on thesuccessful outcome of various property transactions which have been acquired. Swan Hill Pension Scheme The 2004 Report and Accounts stated that, as at 31 December 2004 under FinancialReporting Standard 17 'Retirement Benefits', the deficit disclosed in respect ofthe final salary pension scheme (the Swan Hill Pension Scheme) increased from£11.3 million to £16.3 million. No revised FRS 17 assessment has been made atthe half year and a further review will be carried out at the year end. The scheme had a deficit of £3.8 million as at 5 April 2002 on the assumptionsthen made for funding purposes (which are not the same assumptions as those madeunder FRS 17) and the Company has been making additional annual contributions of£780,000 since 1 January 2003 to try to reduce the deficit. A further actuarial valuation of the scheme for funding purposes has beenundertaken as at 5 April 2005.This has revealed that despite making thoseadditional contributions the funding deficit had by that date increased to £9.3million. The Company has agreed to pay £1.05 million in additional contributionsin 2005 (over and above the £780,000 referred to above) and to fund theremaining deficit over the next six years by increasing the annual contributionsto £1.57 million. In addition, the Company has agreed to pay a further £0.2million per annum to the scheme to cover its administration costs. Dividends The directors propose to pay an interim dividend of 0.5p per ordinary share toshareholders whose names appear on the Register of Members as at 7 October 2005and payable on 11 November 2005. This has not been accrued in the half yearaccounts as accounting standards now require companies to include only thosedividends which have been paid or authorised in the period. Thus the half yearresults show the final dividend that was accrued at the year end and paid in thehalf year. Prospects The profitability of the Company is expected to continue to be hampered by thepoor performance of the Swan Hill sites. We also do not expect to benefit fromany development profits generated (at a group level) following the sale of RPHdevelopment sites mentioned above. Whilst this may reduce profitability in theshort run we believe that cash can be better deployed elsewhere, for example inRaven Russia, so that in the long term the Company is more profitable. As notedin the Chairman's Report we are hopeful that the fee model developed on theRaven Russia transaction can be deployed elsewhere to enhance Companyprofitability. Finally, I would like to thank all the Company's staff, my Chairman and fellowdirectors for all their hard effort during a period of rapid change for theCompany. Bim SandhuChief Executive19 September 2005 CONSOLIDATED RESULTS As restated Unaudited Unaudited As restated Half Year Half Year Full 30 June 30 June Year 2005 2004 2004Summarised consolidated profit and loss account Notes £'000 £'000 £'000 Turnover (including share of trading joint ventures) 40,496 63,299 105,972Less: share of turnover of trading joint 5 (21) (23,002) (22,966)venturesGroup turnover 40,475 40,297 83,006Group operating profit before exceptional administrative expenses 3,076 1,617 (6,078)Exceptional administrative expenses 2 (98) (817) (748)Group operating profit/(loss) 2,978 800 (6,826)Share of operating profit in trading joint ventures (175) 1,092 1,138Total operating profit/(loss) : group and share of trading joint ventures 2,803 1,892 (5,688)Loss on closure of an operation 0 (248) (550)Profit on disposal of fixed assets 21 59 0Profit/(loss) on ordinary activities before interest 2,824 1,703 (6,238)Net interest receivable/(payable) and - Group 3 289 (646) (791)similar charges - Joint ventures 3 (2) (337) (326)Profit/(loss) on ordinary activities before taxation 3,111 720 (7,355)Tax on ordinary activities 4 (933) (286) 1,938Profit/(loss) on ordinary activities after taxation 2,178 434 (5,417)Dividends 6 (428) 0 (621)Retained profit/(loss) for the period 1,750 434 (6,038)Basic earnings/(loss) per Ordinary share 7 2.6p 0.7p (8.6)pDividends per Ordinary share 0.5p 0.0p 1.0pNet assets per Ordinary share (fully diluted) 7 79p 101p 79p Summarised statement of consolidated totalrecognised gains and lossesProfit/(loss) on ordinary activities after 2,178 434 (5,417)taxationIncrease in the pension deficit actuarial loss 0 0 (3,850)Total gains/(losses) recognised in the period 2,178 434 (9,267) As restated As restated Unaudited Unaudited Full 30 June 30 June Year 2005 2004 2004 Notes £'000 £'000 £'000 Summarised consolidated balance sheetFixed assetsIntangible assets 8 1,533 0 (1,513)Tangible assets 404 506 438Investments in trading joint ventures: Share of gross assets 11,465 1,649 12,886 Less: Share of gross liabilities (2,083) -- (679) (2,973) 9,382 970 9,913Other Investments 51 49 49 11,370 1,525 8,887Current assetsStocks 80,969 95,914 87,846Debtors: Amounts falling due within one year 5,065 10,067 7,320Debtors: Amounts falling due after more than one year 2,099 257 897 7,164 10,324 8,217Cash at bank 16,786 420 8,040 104,919 106,658 104,103Creditors: Amounts falling due within one year (12,188) (33,734) (13,825)Net current assets 92,731 72,924 90,278Total assets less current liabilities 104,101 74,449 99,165Creditors: Amounts falling due after more than one (2,366) 0 (2,188)yearProvisions for liabilities and charges (1,751) (1,417) (1,789)Net assets before pension deficit 99,984 73,032 95,188Pension deficit (11,400) (7,900) (11,400)Net assets 88,584 65,132 83,788Capital and reservesCalled up share capital 92 68 84 Shares to be issued - deferred consideration 14,903 0 17,959Share premium account 1,998 1,998 1,998Capital redemption reserve 50 0 50Reserve for own shares (150) (150) (150)Reverse acquisition reserve 62,204 62,374 62,204Merger reserve 16,859 0 10,765Profit and loss account 4,028 8,742 2,278Pension deficit (11,400) (7,900) (11,400) Equity shareholders' funds 88,584 65,132 83,788 As restated Unaudited Unaudited As restated Half Year Half Year Full 30 June 30 June Year 2005 2004 2004 £'000 £'000 £'000 Summarised consolidated cash flow statementOperating profit/(loss) 2,978 800 (6,826)Depreciation charge 75 129 264Impairment of goodwill 0 0 (170)Write down of investment in trading joint venture 0 (375) (375)Costs on closure of an operation 0 (235) (298)Working capital movements 4,341 9,593 41,156Net cash inflow from operating activities 7,394 9,912 33,751Returns on investments and servicing of finance 345 (658) (884)Taxation 259 245 0Capital expenditure and financial investment (20) (27) (93)Acquisition and disposals 0 (325) (881)Equity dividends paid to shareholders (428) 0 (621)Cash inflow before financing 7,550 9,147 31,272Financing: - Issues of shares 0 91 104 - Redemption of preference shares 0 0 (50) - Increase in/(repayment of) debt 1,239 0 (66)Increase in net cash 8,789 9,238 31,260 Consolidated reconciliation of net cash flow tomovement in net funds/(debt)Increase in net cash 8,789 9,238 31,260(Increase in)/repayment of debt (1,239) 0 66Increase in net funds resulting from cash flows 7,550 9,238 31,326Bank loans acquired on acquisition of Raven Property Holdings 0 0 (2,254)PLCTranslation differences (43) 0 0Opening net funds/(debt) 4,011 (25,061) (25,061)Closing net funds/(debt) 11,518 (15,823) 4,011 As restated As restated Half Year Half Year Full 30 June 30 June Year 2005 2004 2004Reconciliation of movements in shareholders' funds £'000 £'000 £'000 Profit/(loss) on ordinary activities after taxation 2,178 434 (5,417)Dividends (428) 0 (621)Retained profit/(loss) 1,750 434 (6,038)Issue of new shares 8 104 23Merger reserve arising on issue of shares 6,094 0 0Shares to be issued on acquisition of Raven Property Holdings PLC (3,056) 0 17,959Merger reserve arising on acquisition of Raven Property Holdings 0 0 10,765PLCPremium arising on exercise of share options in Swan Hill Group PLC 0 0 97Redemption of preference shares 0 (50) (50)Reduction in value of shares to be issued on reverse (170)acquisition of Swan Hill Group PLC 0 0Increase in the pension deficit 0 0 (3,500)Translation difference on foreign currency investments 0 (58) 0Net addition to shareholders' funds 4,796 430 19,086Opening shareholders' funds as previously reported 95,122 72,464 72,464Opening prior period adjustments (11,334) (7,762) (7,762)Opening shareholders' funds restated 83,788 64,702 64,702Closing shareholders' funds 88,584 65,132 83,788 Effect of prior period adjustmentsClosing shareholders' funds as previously reported 72,520 95,122Inclusion of the pension deficit liability under FRS 17 (7,900) (11,400)Further effects of FRS 17 on working capital (112) (362)Change of dividend policy under FRS 21 624 428Closing shareholders' funds restated 65,132 83,788 NOTES 1. Basis of consolidation and preparation The interim financial statements have been consolidated and prepared on a basis consistent with the accounting policies set out in the Raven Mount plc annual report and accounts for the year ended 31 December 2004, except for the following changes in respect of pensions and dividends. In accordance with Financial Reporting Standard 17, the deficit on the pension scheme is included in arriving at the net assets of the group. This has had the effect of reducing shareholders' funds by £11.4 million (net of deferred tax of £4.9 million) at 30 June 2005 and at 31 December 2004, and by £7.9 million (net of deferred tax of £3.4 million) as at 30 June 2004. Profit before tax has also been reduced by £Nil (£500,000 for the full year to December 2004 and £250,000 for the half year to 30 June 2004). The deficit on the pension scheme included in the interim balance sheet is the amount calculated at the prior year end, adjusted for contributions, charges and finance income in the current period. No revaluation of assets and liabilities of the scheme has been carried out in the period and, accordingly, there is no gain or loss shown in the statement of total recognised gains and losses in respect of the interim period. Actuarial gains and losses for the full year and the surplus/deficit at the end of the year will be presented in the annual financial statements. In accordance with Financial Reporting Standard 21, dividends are now included in the profit and loss account when either paid or declared within the period, rather than accrued within the profit and loss account following a declaration of a dividend after the period end. This has had the effect of increasing both retained profits and shareholders' funds by ( ) at 30 June 2005, £428,000 at 31 December 2004 and £624,000 as at 30 June 2004. During the period, the directors reclassified shares to be issued in relation to the convertible ordinary shares of Raven Mount, making a corresponding adjustment to the reverse acquisition reserve. This has had no effect on profit or net assets. The figures reported for the year ended 31 December 2004 have been compiled from the 2004 Raven Mount annual report and accounts. The independent auditors' report on the 2004 Raven Mount accounts was unqualified. The financial information in this document does not constitute statutory financial statements within the meaning of section 240 of the Companies Act 1985. 2. Exceptional administrative expenses relate to costs incurred in connection with provisions against loans to joint ventures and costs related to Swan Hill's past construction activities. 3. Net interest receivable/(payable) and similar charges are as follows: As restated As restated Half Year Half Year Full 30 June 30 June Year 2005 2004 2004 £'000 £'000 £'000 Group Interest payable (96) (675) (864) Interest receivable 385 33 86 Net interest receivable/(payable) 289 (642) (778) Unwinding of discount in lease provision 0 (4) (13) 289 (646) (791) Joint ventures Interest payable (2) (346) (354) Interest receivable 0 9 28 (2) (337) (326) 4. The taxation charge has been calculated at 30% of the profit on ordinary activities before tax, based on the current estimate of the tax rate for the full year as determined under Financial Reporting Standard 16. 5. For the comparative periods, the share of turnover in joint ventures relates to the development of the retail town centre scheme in Stockton-on-Tees which was sold during the 6 months ended 30 June 2004. 6. A final dividend for the year to 31 December 2004 of 0.5p per Ordinary share was paid to shareholders on 3 June 2005. 7. The basic earnings/(loss) per Ordinary share is calculated in accordance with Financial Reporting Standard 14 on the profit/(loss) for the year (before dividends on Ordinary shares) of £2,178,000 (£(5,417,000) for the full year to December 2004 and £434,000 for the 6 months to June 2004) and 82.4 million (62.9 million for the full year to December 2004 and 62.3 million for the 6 months to June 2004) being the weighted average number of Ordinary shares in issue excluding those owned by the Employee Share Trust. Since none of the Company's potential Ordinary shares are dilutive, there is no difference between basic and diluted earnings/(loss) per share. Net assets per Ordinary share (fully diluted) are 79p (79p at December 2004 and 101p at June 2004). The calculation is based on the net assets at the period end of £88.6 million (£83.8 million at December 2004 and £65.1 million at June 2004) divided by the diluted number of shares in issue at the period end amounting to 112.2 million shares (105.5 million at December 2004 and 64.7 million at June 2004). 8. The increase in goodwill in the period arises from an increase in shares to be issued in respect of deferred consideration relating to the acquisition of RPH. A further review of this and of the fair value of gross assets acquired will be carried out at the year end. Independent review report to Raven Mount plc Introduction We have been instructed by the company to review the financial information forthe six months ended 30 June 2005. We have read the other information containedin the interim report and considered whether it contains any apparentmisstatements or material inconsistencies with the financial information. Our report has been prepared in accordance with the terms of our engagement toassist the company in meeting the requirements of the rules of the London StockExchange for companies trading securities on the Alternative Investment Marketand for no other purpose. No person is entitled to rely on this report unlesssuch a person is a person entitled to rely upon this report by virtue of and forthe purpose of our terms of engagement or has been expressly authorised to do soby our prior written consent. Save as above, we do not accept responsibilityfor this report to any other person or for any other purpose and we herebyexpressly disclaim any and all such liability. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. The directors areresponsible for preparing the interim report in accordance with the rules of theLondon Stock Exchange for companies trading securities on the AlternativeInvestment Market which require that the half-yearly report be presented andprepared in a form consistent with that which will be adopted in the company'sannual accounts having regard to the accounting standards applicable to suchannual accounts. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board for use in the United Kingdom by auditorsof fully listed companies. A review consists principally of making enquiries ofgroup management and applying analytical procedures to the financial informationand underlying financial data and based thereon, assessing whether theaccounting 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 UnitedKingdom Auditing Standards and therefore provides a lower level of assurancethan an audit. Accordingly we do not express an audit opinion on the financialinformation. 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 2005. BDO STOY HAYWARD LLPChartered Accountants London 19 September 2005 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
RAV.L