RNS Number:8955R
Claims People Group PLC
28 September 2005
THE CLAIMS PEOPLE GROUP PLC
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2005
CHAIRMAN'S STATEMENT
Highlights
* Turnover up 12.3%
* Profit reduced following infrastructure investment
* Consultancy revenue increased
* Client base strengthened
The year to December 2005 started well with the group benefiting from increased
volumes of new claim instructions. During the second quarter, however, the
industry as a whole experienced a reduction in weather-related losses and
resultant claims. Overall, the first-half turnover improved by 12.3% from
#1,206,381 to #1,355,721 resulting in a pre-tax profit of #20,180 compared to
#71,946 last year. Increased costs reflected the groups continued investment in
enhancing its infrastructure to ensure a high standard of service to its key
customers.
The second half of the year is again exhibiting signs of both challenge and
opportunity. Whilst conventional claims volumes have reflected the quiet summer
conditions, alternative revenue streams derived from our consultancy services
have increased materially. This area is now making a significant contribution to
earnings. An existing client has recently commissioned the Group to handle new
projects that will benefit the second half-year performance. We remain hopeful
of an upturn in normal trading in the final quarter.
The Directors have been active in exploring acquisition opportunities, as
indicated in my 2004 Statement. Whilst a number of discussions have taken place
with target companies, investigation has indicated that they would not meet the
criteria set by the Board in terms of share value and earnings per share
enhancement. The Directors remain committed to seeking complementary
acquisitions to further enhance both the performance of the Group and its
critical mass.
John French
Chairman
Further information contact:
The Claims People Group plc
John French, Chairman - Tel: 07836 722482.
Dominic Boyce, Finance Director - Tel: 020 7357 6636
Seymour Pierce Limited
Mark Percy / Liam O'Donoghue - Tel: 020 7107 8000
INDEPENDENT REVIEW REPORT TO THE CLAIMS PEOPLE GROUP PLC
Introduction
We have been instructed by the Company to review the financial information for
the six months ended 30 June 2005 on pages 3 to 10 which comprises the income
statement, the balance sheet, the cash flow statement and the related notes. We
have read the other information contained in the interim report and considered
whether it contains any apparent misstatements or material inconsistencies with
the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The directors are
responsible for preparing the interim report in accordance with the Listing
Rules of the United Kingdom Listing Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed. The directors are also
responsible for preparing the interim report in accordance with International
Accounting Standards and International Financial Reporting Standards.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of management and applying analytical
procedures to the financial information and underlying financial data and, based
thereon, assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities and
transactions. It is substantially less in scope than an audit performed in
accordance with International Auditing Standards 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 that
should be made to the financial information as presented for the six months
ended 30 June 2005.
Saffery Champness
Chartered Accountants
Lion House
Red Lion Street
London
WC1R 4GB
2005
THE CLAIMS PEOPLE GROUP PLC
CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2005
Notes 6 months 6 months Year
ended ended ended
30 June 2005 30 June 2004 31 December 2004
Unaudited Unaudited Audited
# # #
Turnover 1,355,721 1,206,381 2,665,677
Administrative (1,336,296) (1,136,594) (2,442,362)
expenses
_________ _________ _________
19,425 69,787 223,315
Operating profit
Finance costs - net
Interest receivable 1,280 2,928 8,785
Interest payable (525) (769) (3,000)
_________ _________ __________
755 2,159 5,785
_________ _________ __________
Profit before taxation 20,180 71,946 229,100
Taxation 2 - 16,689 49,063
_________ _________ __________
Profit after taxation
and for the period 20,180 88,635 278,163
_________ _________ __________
Earnings per share 3 0.02p 0.09p 0.28p
_________ _________ __________
Fully diluted earnings
per share 3 0.02p 0.09p 0.28p
_________ _________ __________
THE CLAIMS PEOPLE GROUP PLC
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2005
Share Share Retained
capital premium earnings
account
# # #
Balance at 1 January 2004 1,500,000 833,778 (1,526,561)
Profit for the period - - 88,635
________ ________ _________
Balance at 30 June 2004 1,500,000 833,778 (1,437,926)
________ ________ _________
Balance at 1 July 2004 1,500,000 833,778 (1,437,926)
Profit for the period - - 189,528
________ ________ _________
Balance at 31 December 2004 1,500,000 833,778 (1,248,398)
________ ________ _________
Balance at 1 January 2005 1,500,000 833,778 (1,248,398)
Profit for the period - - 20,180
Issue of equity share capital 44,062 44,063 -
________ ________ _________
Balance at 30 June 2005 1,544,062 877,841 (1,228,218)
________ ________ _________
THE CLAIMS PEOPLE GROUP PLC
CONSOLIDATED BALANCE SHEET
30 JUNE 2005
30 June 2005 30 June 2004 31 December 2004
Unaudited Unaudited Audited
# # #
ASSETS
Non-current assets
Property, plant and equipment 122,721 142,337 159,581
Goodwill 265,661 294,386 265,661
_______ _______ _______
388,382 436,723 425,242
_______ _______ _______
Current assets
Inventories and work in
progress 368,844 272,337 402,676
Trade and other receivables 640,678 603,501 648,965
Cash and cash equivalents 90,935 423,728 147,117
_______ _______ _______
1,100,457 1,299,566 1,198,758
________ ________ ________
Total assets 1,488,839 1,736,289 1,624,000
________ ________ ________
EQUITY
Capital and reserves attributable
to
the Company's equity shareholders
Share capital 1,544,062 1,500,000 1,500,000
Share premium account 877,841 833,778 833,778
Retained earnings (1,228,218) (1,437,926) (1,248,398)
_________ _________ _________
Total equity 1,193,685 895,852 1,085,380
_________ _________ _________
LIABILITIES
Current liabilities 285,666 816,968 522,140
Non-current liabilities 9,488 23,469 16,480
_________ _________ _________
Total liabilities 295,154 840,437 538,620
_________ _________ _________
Total equity and liabilities 1,488,839 1,736,289 1,624,000
_________ _________ _________
THE CLAIMS PEOPLE GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2005
Notes 6 months 6 months Year
ended ended ended
30 June 30 June 31 December
2005 2004 2004
Unaudited Unaudited Audited
# # #
Cash flows from operating
activities
Cash (used
in)/generated from
operations 4 (134,402) 295,120 176,458
Cash flows from investing
activities
Interest received 1,280 2,928 8,785
Interest element of
finance lease payments (371) (769) (3,000)
Purchase of property,
plant and equipment (1,956) (13,182) (69,545)
Purchase of goodwill - (66,959) (160,885)
________ _______ ________
Net cash flows from
investing activities (135,449) 217,138 (48,187)
_________ _______ ________
Cash flows from Financing
activities
Issue of equity share
capital 88,125 - -
Capital element of
finance lease rental
payments (5,103) (9,261) (16,652)
New loans taken out - 22,531 22,532
Capital element of loan
repayments (3,755) (1,111) (5,007)
_______ ______ _______
Net cash flows from
financing activities 79,267 12,159 873
_______ ______ _______
Net (decrease)/increase
in cash (56,182) 229,297 (47,314)
_______ ______ _______
THE CLAIMS PEOPLE GROUP PLC
NOTES TO THE INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2005
1. Accounting Policies
Basis of accounting
The financial statements have been prepared under the historical cost convention
and in accordance with applicable accounting standards. The most significant
accounting policies are described below.
Basis of consolidation
The consolidated financial statements incorporate the results of the Company and
all its subsidiary undertakings as if they were a single entity. Subsidiary
undertakings are consolidated from the date of acquisition using the acquisition
method of accounting.
Turnover
Turnover represents the invoiced amount of services provided in the period and
is stated net of VAT.
Tangible fixed assets
Tangible fixed assets are stated at cost less provision for depreciation.
Depreciation is provided on all tangible fixed assets at rates calculated to
write off the cost of each asset less its estimated residual value evenly over
its estimated useful life, as follows:
o Claims software over five years
o Office equipment and fittings over three to five years
o Website development over three years
Goodwill
Goodwill is stated at cost prior to adoption of International Accounting
Standards and is reviewed at each period end for impairment.
Work in progress
Revenue arising from the rendering of services is recognised only to the extent
of the expenses recognised that are recoverable. Work in progress is valued at
it's recoverable amount.
Leasing and finance lease commitments
Assets obtained under hire purchase contracts and finance leases are capitalised
in the balance sheet and depreciated over their useful economic lives. The
interest element of the rental obligations is charged to the profit and loss
account over the period of the contract and represents a constant proportion of
the balance of capital payments outstanding. Rentals paid under operating leases
are charged to the profit and loss account on a straight line basis over the
term of the lease.
Deferred taxation
Deferred tax is recognised in respect of all timing differences that have
originated but not reversed at the balance sheet date where transactions or
events that result in an obligation to pay more tax in the future or a right to
pay less tax in the future have occurred at the balance sheet date. Timing
differences are differences between the Group's taxable profits and its results
as stated in the financial statements that arise from the inclusion of gains and
losses in tax assessments in periods different from those in which they are
recognised in the financial statements. A net deferred tax asset is regarded as
recoverable and therefore recognised only when, on the basis of all available
evidence, it can be regarded as more likely than not that there will be suitable
taxable profits from which the future reversal of the underlying timing
differences can be deducted. Deferred tax is measured on a non-discounted basis
at the average tax rates that are expected to apply in the periods in which the
timing differences are expected to reverse.
Pension costs
The Group contributes to two Group Personal Pension Schemes for Directors and
senior employees. Pension contributions are charged to the profit and loss
account as they are incurred.
NOTES TO THE INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2005
Financial Information
The financial information above does not constitute statutory accounts within
the meaning of Section 240 of the Companies Act 1985. The interim financial
information has not been audited but has been reviewed by the Company's
auditors.
The interim financial statements have been prepared in accordance with IAS 34,
Interim Financial Reporting, and are covered by IFRS 1, First-time adoption of
IFRS because they are part of the period covered by the Group's first IFRS
financial statements for the year ending December 2005. These interim statements
have been prepared in accordance with those IFRS standards and IFRIC
interpretations issued and effective as at the time of preparing these
statements.
The accounting policies used in these financial statements have been
consistently applied to all the years presented except for those relating to
goodwill. The Group has made use of the exemption available under IFRS 1 to only
apply IFRS 3 Business Combinations from 1 January 2004.
2. Taxation
No liability to taxation arises due to tax losses available from previous
periods. The Company has approximately #1,122,000 of tax losses available for
relief against future trading profits.
6 months 6 months Year
ended ended ended
30 June 2005 30 June 2004 31 December 2004
Unaudited Unaudited Audited
# # #
Current
UK corporation tax - - -
Deferred tax
Charge arising on valuation
of deferred tax assets - - 84,495
Credit arising on recognition
of deferred tax asset - 16,689 133,558
_________ _______ _______
- 16,689 49,063
_________ _______ _______
Deferred tax asset comprises:
Accelerated capital
allowances 35,681 42,778 35,681
Short term timing differences 2,837 - 2,837
Trading losses 95,040 58,406 95,040
_________ _______ ______
133,558 101,184 133,558
_________ _______ _______
THE CLAIMS PEOPLE GROUP PLC
NOTES TO THE INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2005
2 Taxation (continued)
Factors affecting the tax charge for the period:
6 months ended 6 months ended Year ended
30 June 2005 30 June 2004 31 December
2004
Unaudited Unaudited Audited
# # #
Profit on ordinary
activities 20,180 71,946 229,100
before taxation
______ _____ _______
Corporation tax at 30% 6,054 21,584 68,730
Effects of:
Disallowed expenditure 10,723 2,618 16,938
Depreciation and 11,645 15,136 23,754
amortisation
Capital allowances (10,444) (12,135) (27,852)
Losses Utilised (17,978) (26,555) (79,850)
Other tax adjustments - (648) (1,720)
_______ _______ _______
3. Earnings per share
The earnings per share is based on the profit for the period and the weighted
average number of ordinary shares in issue and ranking for dividend.
6 months ended 6 months ended Year ended
30 June 2005 30 June 2004 31 December 2004
Unaudited Unaudited Audited
# # #
Profit for the period 20,180 88,635 278,163
__________ __________ __________
Weighted average number of
shares 102,840,659 100,000,000 100,000,000
__________ __________ __________
Fully diluted average
number 100,250,000 100,000,000 100,037,736
of shares
During the period 2,937,500 shares were issued at a premium of 1.5p.
THE CLAIMS PEOPLE GROUP PLC
NOTES TO THE INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2005
4. Reconciliation of profit to net cash generated from operations
6 months ended 6 months ended Year ended
30 June 2005 30 June 2004 31 December 2004
Unaudited Unaudited Audited
# # #
Profit for the period 19,425 69,787 223,315
Adjustments for:
Depreciation 38,816 40,062 79,181
Amortisation - 10,390 -
Changes in working capital:
Inventories and work in
progress 33,832 (24,821) (155,160)
Trade and other receivables 8,287 (71,308) (84,398)
Trade and other payables (234,762) 271,010 113,520
________ _______ ________
Cash (used in)/generated
from (134,402) 295,120 176,458
operations
________ _______ ________
5. Reconciliation from UK GAAP to IFRS
a) Goodwill
Goodwill arose on the acquisition of the trade and assets of CCS Global UK.
Under UK GAAP goodwill would be subject to amortisation however none was charged
for the year ended 31 December 2004. This was on the basis that the amounts were
deemed immaterial to the financial statements both for the year and on an
accumulated basis. This would also apply for the interim period to 30 June 2005.
As a result the financial information shown above has no significant differences
to UK GAAP financial information.
b) Work in Progress
Work in progress is recognised only to the extent of costs incurred that are
expected to be recoverable. This is not deemed to be significantly different to
the previous UK GAAP valuation of work in progress which was based on the lower
of cost and net realisable value.
As a result the financial information shown above has no significant differences
to UK GAAP financial information.
c) Deferred Tax
There are not considered to be any significant differences between the treatment
of deferred tax amounts in the financial information above under IAS compared to
UK GAAP. As a result the financial information shown above has no significant
differences to UK GAAP financial information.
This information is provided by RNS
The company news service from the London Stock Exchange
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