1st Aug 2006 17:24
Manchester Building Society01 August 2006 PRESS RELEASE STRONG GROWTH IN SOCIETY HALF YEAR PROFITS Manchester Building Society report a substantial increase in first halfunaudited pre-tax profits to 30 June 2006, rising to £2.61 million from £1.72million in the first half of 2005. The results are prepared on a UK GAAP basisand are prior to IFRS adjustments. Total assets increased in the half year period by 8.5% to £614 million. Mortgagebalances also grew by 8.5% to £507 million, although gross lending at £57million was marginally down on H1 2005. Commenting on the interim results, the Society's Chief Executive, David Cowie, said; "Group profitability has benefited from two main elements. Firstly, theSociety's interest margins have improved and are generated on a significantlygrowing balance sheet. Secondly, the mortgage networking subsidiary moved intoprofit in quarter 2. Prospects for the second half remain reasonably strong although interest marginsare expected to come under tighter pressure. We also propose to reduce ourmortgage network tariffs to make the network one of the most competitive in thesector. Nevertheless at this stage we have some confidence in achieving fullyear record pre-tax profits of at least £5 million." For any further information please contact: David Cowie - Chief Executive Chris Gee - Finance Director Tel: 0161 833 8888 Fax: 0161 833 8889 Group Balance Sheet as at June 2006 ------------------------------------- 30 June 06 30 June 05 £K £KAssets Liquid Assets 101819 93453Mortgages 507991 430073Fixed and Other Assets 4219 4181 ------------------------- 614029 527707 ------------------------- Liabilities Shares 413218 384477Borrowings 151347 97231Other Liabilities 3765 3361Subordinated Debt 7000 7500Reserves & PIBS 38699 35138 ------------------------- 614029 527707 ------------------------- Group Cash Flow Statement as at 30 June 2006 30 June 06 30 June 05 £K £K Net cash inflow from operating activities 6316 8362Taxation (556) (426)Capital Expenditure and Financial InvestmentPurchase of tangible fixed assets (4) (43)Disposal of tangible fixed assets 0 0Investment in debt securities 2670 (1500) ------------------------- Increase in cash 8426 6393 ------------------------- Profit and Loss AccountFor the period ended 30 June 2006 30 June 06 30 June 05 £K £K Net interest receivable 4471 3562Other income and charges 116 (72)Total Income 4587 3490Administrative expenses 1898 1749Operating profit before provisions 2689 1741Provisions for bad and doubtful debts (82) (25)Profit on ordinary activities 2607 1716Taxation (782) (515) ------------------------- Profit after Tax 1825 1201 ------------------------- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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