TIDMCPP
RNS Number : 6422R
CPPGroup Plc
26 August 2010
CPPGROUP PLC
HALF YEAR REPORT
FOR THE SIX MONTHS ENDED 30 JUNE 2010
+------------+--------+--------+--------+--------+
| HIGHLIGHTS | Six | Six | Growth | |
| | months | months | | |
| | ended | ended | | |
| | 30 | 30 | | |
| | June | June | | |
| | 2010 | 2009 | | |
+------------+--------+--------+--------+--------+
| Revenue | 156.9 | 141.2 | 15.7 | 11% |
| (GBP'm) | | | | |
+------------+--------+--------+--------+--------+
| Underlying | 24.0 | 20.0 | 4.0 | 20% |
| operating | | | | |
| profit | | | | |
| (GBP'm) | | | | |
+------------+--------+--------+--------+--------+
| Profit | | | | |
| before | | | | |
| tax | | | | |
| (GBP'm) | | | | |
+------------+--------+--------+--------+--------+
| - | 17.4 | 11.4 | 6.0 | 53% |
| Reported | | | | |
+------------+--------+--------+--------+--------+
| - | 22.7 | 16.5 | 6.2 | 38% |
| Underlying | | | | |
+------------+--------+--------+--------+--------+
| Profit | | | | |
| after | | | | |
| tax | | | | |
| (GBP'm) | | | | |
+------------+--------+--------+--------+--------+
| - | 11.8 | 7.8 | 4.0 | 51% |
| Reported | | | | |
+------------+--------+--------+--------+--------+
| - | 15.6 | 11.5 | 4.1 | 36% |
| Underlying | | | | |
+------------+--------+--------+--------+--------+
| Basic | | | | |
| earnings | | | | |
| per | | | | |
| share | | | | |
| (pence) | | | | |
+------------+--------+--------+--------+--------+
| - | 7.3 | 5.1 | 2.2 | 43% |
| Reported | | | | |
+------------+--------+--------+--------+--------+
| - | 9.7 | 7.6 | 2.1 | 28% |
| Underlying | | | | |
+------------+--------+--------+--------+--------+
| Dividend | 2.42 | NA | NA | NA |
| per | | | | |
| share | | | | |
| (pence) | | | | |
+------------+--------+--------+--------+--------+
Underlying Operating Profit is adjusted for legacy scheme share based payments
of GBP2.2m (2009: GBP5.1m)
Underlying Profit before Tax is adjusted for the impact of legacy scheme share
based payments of GBP2.2m (2009: GBP5.1m) and exceptional amortisation of loan
issue costs of GBP3.1m (2009: nil). The tax effect of these adjustments is
GBP1.5m (2009: GBP1.4m).
Operational Highlights
· UK business continues to grow strongly with the packaged account market
gaining momentum
· Recently launched markets continue to develop well, with Turkey breaking
even for the period, only three years after launch
· Broadly stable renewal rates despite economic pressures and product price
rises
· First contract signed in China with Guangdong Development Bank
· Growing US business partner portfolio with the important addition of
Sovereign Bank
· Identity Protection product piloted in Spain
Financial Highlights
· Group revenue growth of 11% to GBP156.9m
· Underlying operating profit up 20% to GBP24.0m, with the margin increased
to 15.3% (30 June 2009: 14.1%)
· Operating profit up 47% to GBP21.8m
· Underlying EPS up 28% to 9.7p
· Strong cash generation with net cash from operating activities of
GBP13.3m
· GBP25.7m raised in successful IPO contributing to reduction in net debt
to GBP13.2m at 30 June 2010 from GBP48.8m at 31 December 2009
· First interim dividend proposed at 2.42p per share
Eric Woolley, Group Chief Executive commented:
"I am very pleased with the performance of CPP in the first half of 2010. We
have delivered a good set of results in line with expectations and achieved a
successful listing on the London Stock Exchange."
"These results have been driven by an increase in new revenues and a steady
renewal rate, evidence of the global demand for our products and the strength of
our business model. In the UK our core business has grown and through successful
initiatives such as packaged accounts we are expanding our existing product and
channel offering. Internationally we are making real progress with our recently
launched markets in Turkey, India and Mexico all showing good growth year on
year."
"CPP is a fast growing business with strong cash generation and a robust balance
sheet. We are well positioned to build on this first set of results as a public
company as we continue to execute on our proven growth strategy in the UK and
internationally and so deliver sustainable profitable growth. Whilst recognising
the global economic and financial sector uncertainties, I am still encouraged by
our medium term pipeline of business opportunities and expect the momentum in
the business that we have demonstrated since IPO to continue to deliver a year
of growth for the Group in line with market expectations."
For enquiries contact:
Eric Woolley, Group Chief Executive
Shaun Parker, Chief Financial Officer
Tel: +44 (0)1904 544702
Tulchan Communications
John Sunnucks
David Allchurch
Tel. +44 (0)20 7353 4200
Notes to editors:
CPP is a fast-growing and leading international life assistance business with
operations in 15 countries in both developed and emerging markets. CPP's
products and services are designed to meet consumer needs across a range of
requirements, in particular relating to credit and debit card ownership,
personal identity, mobile telephones, travel and the home. The Group primarily
focuses on providing customer assistance during stressful life events such as
losing or having a wallet, purse, mobile telephone or keys stolen, as well as
support in the event of identity theft.
CHIEF EXECUTIVE OFFICER'S REPORT
OVERVIEW
I am pleased with the performance of CPP in the first half of 2010, our first as
a listed company. It has been an important six month period for the business,
where we have achieved a highly successful listing on the London Stock Exchange
and these results are a milestone in our development as a public company.
The business is well positioned and has a focused strategy that is delivering
growth in the UK and internationally. This established strategy is:
· Targeting new business partner relationships, driving growth in existing
sales channels such as debit card activation and developing new sales channels,
such as an online sales channel and self-service channels and capability
· Building our presence and experience in new sectors, such as the packaged
account, travel and home emergency markets, where we can leverage our experience
of providing life assistance products and services to end customers
· Rolling out new and existing products and services in CPP's current
markets, coupled with product content-backed price increases to drive the
Group's penetration in those markets and the profitability of existing products
and services
· Continuing to expand internationally with an increased focus on key
emerging markets such as Turkey, India, Mexico and China
We have grown Group Revenue by 11% and Underlying Group Operating Profit (see
page 1) by 20% year on year. Underlying operating profit margin has increased to
15.3% from 14.1% at June 2009. This increase in Underlying Group Operating
Profit and a reduction in legacy share based payments have generated Operating
Profit growth of 47% year on year. Operating profit margins have benefited from
lower commission due to mix effects and control of overheads.
We have increased New Assistance Income by 11% year on year to GBP42.4 million
through product, channel and market diversification and roll out of higher
priced product variants. Live policies have increased 7% from December 2009 to
10.7 million.
Our Annual Renewal Rate continues to be broadly stable at 76.8%. We believe this
is evidence that our products are valued by our customers who have chosen to
retain them despite disposable income coming under increased pressure. This is a
blended rate including all of our geographies and reflects a slight increase in
the UK renewal rate offset by a reduced rate in Spain, which we attribute to
local economic conditions, and growth of the renewal base in our new
territories, which are expected to show lower rates than established countries
in the short to medium term.
I am pleased to announce that having led the sustained growth of Northern
Europe, Stephen Kennedy will be moving to a new role of Group Chief Operating
Officer, where he will focus on driving continuing growth across the Group. Our
regional business units now report in to Stephen Kennedy. Currently Group
Consumer Sales and Service Director, Mike Kneafsey will assume responsibility
for management of our UK and Ireland operations, having joined CPP early in
2008.
In Southern Europe, we welcome Angel de Leon as Managing Director. Angel brings
a wealth of experience of the Southern European market, including from his
previous roles at Santander. He replaces Ignacio Mier who has now left CPP as
notified in our IPO prospectus.
REGIONAL HIGHLIGHTS
Our Northern European market continues to perform well, having grown revenues by
16% and we have seen a pleasing performance from a number of initiatives that
are driving growth. In particular our focus on the UK packaged accounts market
is gaining momentum, as is our continued focus on the card activation sales
channel, which has generated increased call volumes and provided a high-quality
customer service on behalf of our business partners.
In Southern Europe, we have delivered a robust performance in the face of
difficult market conditions, particularly in Spain. Revenue increased by 1%,
excluding the impact of foreign exchange. The foundations for an improved
performance in the medium term are already in place. The pilot of Identity
Protection in Spain is a core component of our growth strategy. The migration of
payment cards to Chip and PIN in Spain presents a new business opportunity for
activating payment cards on behalf of business partners including Banco
Santander, despite investment in these campaigns having had a negative impact on
margins in the short term.
Our North America business has delivered in line with our expectations. Whilst
revenue growth of 3% excluding the impact of foreign exchange may be modest,
profitability has been improved. Our portfolio of business partners has
increased with the addition of Sovereign Bank, a Santander Group subsidiary. Our
exclusive agreement to market Identity Protection across a wide range of
channels is particularly encouraging as it includes card activation and
in-branch sales for the first time. We have also launched a new card activation
campaign with Wells Fargo Wachovia.
In Asia Pacific we have grown revenue by 19%, despite the impact of a new credit
card tax in Malaysia which has reduced the number of credit cards in circulation
in the market. As we establish ourselves in the region we continue to incur
losses. Renewal volumes are not yet sufficiently large to offset the costs of
acquiring new customers. However as expected, we made an important first small
step into mainland China with Guangdong Development Bank to provide Card
Protection to its premium cardholders. Importantly, the product is positioned as
a key cardholder benefit, illustrating the inherent value placed on our card
loss reporting services.
Our recently launched markets continue to develop, with revenues from Turkey,
India and Mexico all growing year on year. The Turkey renewal book has grown to
the point where Turkey has traded at break even for the half year. 2010 Indian
revenue includes renewal income for the first time in line with our
expectations. Mexico will begin to generate renewal revenues in the second half
of the year, having commenced sales in July 2009.
FINANCIAL POSITION
In March we successfully completed our listing on the London Stock Exchange
raising net proceeds of GBP25.7 million and refinanced our bank debt at a
reduced level. Since IPO cash flows have remained strong and net debt has been
reduced to GBP13.2 million at 30 June 2010 from GBP48.8 million at 31 December
2009.
OUTLOOK
We are well positioned to build on the first half year performance across the
Group as we continue to execute on our established growth strategy. The card
activation channel is expected to deliver significant new revenues across the
Group, product and channel diversification is continuing. We are implementing a
number of initiatives with new partners that will build our presence in existing
and new market sectors and territories and deliver a healthy pipeline of
business opportunities, but may put pressure on margins in the short term.
Although there continue to be economic uncertainties and challenges faced by our
financial sector partners in a number of markets, our key financial metrics
remain on track and we are on course to deliver a year of growth for the Group
in line with market expectations.
OPERATING AND FINANCIAL REPORT
We have grown Group Revenue by 11% year on year to GBP156.9 million at 30 June
2010, led by existing and new products and channels in Northern Europe.
Underlying Operating Profit has also grown, by 20% to GBP24.0 million. Operating
Profit has grown by 47% to GBP21.8 million.
Underlying Profit after Tax has grown by 36% to GBP15.6 million. Profit after
Tax has grown by 51% to GBP11.8 million.
We will pay our first interim dividend as a listed company of 2.42 pence per
share in October 2010.
Our operations continue to be highly cash generative, with net cash from
operating activities of GBP13.3 million and proceeds from our successful listing
on the London Stock Exchange contributing to a reduction in net debt to GBP13.2
million at 30 June 2010.
KEY PERFORMANCE INDICATORS
+--------------------------------------+------------+-------------+------------+
| | Six months | Six months | Year ended |
| | ended 30 | ended 30 | |
| | June 2010 | June 2009 | 31 |
| | | | December |
| | | | 2009 |
+--------------------------------------+------------+-------------+------------+
| New Assistance Income | 42.4 | 38.1 | 80.3 |
| (GBP millions) | | | |
+--------------------------------------+------------+-------------+------------+
| Annual Renewal Rate (moving annual | 76.8% | 77.7% | 77.5% |
| total) | | | |
+--------------------------------------+------------+-------------+------------+
| Live Policies (millions) | 10.7 | 9.8 | 10.0 |
+--------------------------------------+------------+-------------+------------+
| Cost/ Income Ratio | 50% | 49% | 48% |
+--------------------------------------+------------+-------------+------------+
| Operating Profit Margin | 15.3% | 14.1% | 14.2% |
+--------------------------------------+------------+-------------+------------+
New Assistance Income has grown by 11% year on year. Development of the packaged
accounts channel, product diversification, including growth of Airport Angel,
growth in new markets, and higher priced product variants all contribute to this
achievement.
Annual Renewal Rates remain broadly stable. UK renewal rates have increased
slightly. The growth of the renewal base in our newer territories has reduced
the overall Group renewal rate. Newer territories are often expected to have
lower renewal rates than established countries in the short to medium term.
Southern Europe renewal rates have recently been lower, which we attribute to
the economic situation.
Our Live Policies book has grown to 10.7 million policies at 30 June 2010,
driven by the expansion of our packaged accounts channel in the UK.
Operating Profit Margin has grown year on year to 15.3%. Growth in gross profit
margin and control of overheads in Northern Europe has outweighed short term
direct costs supporting EMV (Europay, Mastercard and Visa) "Chip and PIN" card
activation campaigns in Southern Europe. Operating Profit includes the cost of
investment in new markets of GBP2.2 million in the period (H1 2009: GBP2.2
million).
Cost/ Income Ratio, which is expressed as a percentage of revenue, has increased
year on year to 50%, reflecting the growth of our packaged accounts sales
channels which do not incur business partner commissions and generally have a
lower revenue per policy.
Northern Europe
· Revenue up 16% to GBP111.6 million (H1 2009: GBP96.5 million)
· Operating profit up by 43% to GBP17.0 million (H1 2009: GBP11.8 million)
· Expanded successful card activation sales channel with RBS and Santander
· UK core business has grown supported by good progress from packaged
accounts
· Turkey at break even for the half year after only three years of activity
Northern Europe, which represents 71% of Group sales, has grown revenue by 16%
to GBP111.6 million through the continued expansion of Identity Protection
combined with roll out of higher priced product variants and development of the
packaged accounts channel in the UK. These factors have generated growth in
both new and renewal income. Northern Europe has grown operating profit by 43%
to GBP17.0 million, despite a challenging economic backdrop, through these
increases in volumes, higher priced product variants and control of operating
costs.
In the UK, our core business has grown, complemented by product and channel
diversification. Our packaged accounts business has performed well launching a
new premium account with Santander and providing a selection of mobile phone,
gadget and handbag insurance product variants for the RBS group packaged
accounts. We continue to see growth opportunities in new sectors and we have
recently contracted with the AA to provide a range of products and services to
their packaged account customers.
We have successfully integrated the Leapfrog business acquired in 2009,
complementing our packaged accounts business by giving us an established
presence in the travel sector via our Airport Angel product that is established
in over 550 airport lounges and 300 airports worldwide.
In line with our strategy of driving growth in existing sales channels, the UK
has expanded its successful card activation sales channel with RBS and
Santander. This sales channel not only positions CPP strongly in new debit and
credit card issuance programmes, but gives CPP incremental call volumes and
builds a stronger relationship with business partners based on our proven
service to sales competence. We have continued to roll out higher priced
variants of Card Protection and Identity Protection. We have also renewed our
contract with T-Mobile to provide mobile phone insurance. The risk associated
with the merger of T-Mobile and Orange described in our IPO prospectus still
remains.
One of the drivers of consumer behaviour is the prevalence and awareness of
identity fraud. In the first quarter of 2010, incidences of identity fraud in
the UK increased 14 per cent (compared with the same period in 2009),
demonstrating that our comprehensive identity protection product is both
relevant and addresses real and growing consumer needs.
In Ireland, despite well publicised economic difficulties, our business has
performed well. Growth has been delivered largely via an increase in Card
Protection revenues. We are also increasing the size of our mobile phone
insurance book through our contract with Meteor Mobile.
Consistent with our strategy of expanding internationally into growth markets,
Turkey has made good progress, with increased sales of Card Protection driving
new assistance revenue with partners including Akbank, DenizBank and Bank Asya.
New Card Protection product variants have been introduced to support price
increases and drive the appeal, penetration and profitability of Card
Protection. Following losses in its first three years of trading as we have
invested in the business we are pleased to report that Turkey has operated at
break even for the half year.
In Germany we have grown revenues and with Commerz Finanz we have replicated our
safe receipt sales channel, where customers call in to inform their card issuer
that they have safely received their card, to receive security information and
allowing us the opportunity to offer our Card Protection product.
Southern Europe
· Revenue up 1% to GBP24.3 million excluding the impact of foreign exchange
· Operating profit down 13% to GBP5.9 million (H1 2009: GBP6.8 million)
· Robust performance with revenue stable in challenging economic conditions
· Pursuing significant new sales opportunities in Spain following launch of
Chip and PIN cards
· Good progress in Mexico following June 2009 launch
Southern Europe, which represents 16% of Group revenues, has grown by 1%
excluding the impact of foreign currency movements, in challenging economic
conditions. Southern Europe Operating Profit of GBP5.9 million is 13% lower than
the first half of 2009, impacted by costs of EMV card activation sales campaigns
in Spain.
The launch of Chip and PIN cards in Spain has presented us with new sales
opportunities. The migration of customers to EMV has now commenced and we are
already activating cards on behalf of Caja de Ahorros de Navarra, Openbank and
Banco Santander. This is expected to generate growth in the medium term, but has
had a negative impact on margins and operating profit in the short term which
will continue in the second half of the year. We have also commenced new sales
of Card Protection with Banc Sabadell.
We piloted Identity Protection in Spain, incorporating a comprehensive suite of
prevention, detection and resolution services.
Consistent with our growth strategy to penetrate new sectors outside financial
services, Spain launched a new campaign outside its core market with Planeta
DeAgostini. The provision of Legal Protection with this Spanish media company
demonstrates our products have consumer appeal outside our traditional markets.
We have made steady progress in Portugal. We are currently implementing new
campaigns with key business partners including Montepio Geral and Banco
Santander Totta. Our conversion rates for these campaigns are amongst the best
in our Southern Europe region, demonstrating that our acquisition channels are
effective in marketing our assistance products.
In France, our focus has been on maximising benefit from our relationship with
Cetelem, and we have increased revenues year on year.
Mexico is managed as part of our Southern Europe region to capitalise on
business partner, language and cultural similarities. In Mexico, despite only
launching in July 2009, we have continued to make good progress and we believe
the expected growth in the bankable population and use of plastic cards presents
us with a sustainable and significant growth opportunity. Since launch we have
implemented new campaigns with HSBC. Selling through two business partners, we
expect to increase the penetration of Card Protection in this market.
North America
· Revenue up 3% to GBP18.2 million excluding the impact of foreign exchange
· Operating profit up 7% to GBP2.8 million (H1 2009: GBP2.6 million)
· Major contract with Sovereign Bank added to business partner portfolio
· New card activation campaign with Wells Fargo Wachovia
· New version of Identity Protection launched with Alliance Data
North America which represents 12% of Group revenue, has increased Operating
Profit by 7% to GBP2.8 million, driven by existing member revenues and more
efficient acquisition costs on new sales. Revenues have risen by 3% excluding
the impact of foreign currency movements.
During this period key accomplishments include securing Sovereign Bank, a
Santander Group subsidiary, to add to our portfolio of major business partners
that also includes Alliance Data, Wells Fargo, and HSBC. The contract with
Sovereign Bank gives CPP an exclusive agreement to cross-sell Identity
Protection during debit card activation, in-branch, customer service, outbound
telemarketing and e-mail campaigns.
We have launched a new card activation campaign with Wells Fargo Wachovia,
including a voice response card activation channel.
We have also launched a new version of Identity Protection with Alliance Data,
our largest business partner, at a higher monthly premium of $14.99.
Asia Pacific
· Revenue up 19% to GBP2.7 million (H1 2009: GBP2.3 million)
· Operating loss up 29% to GBP1.3 million (H1 2009: loss of GBP1.0 million)
· First contract signed in China with Guangdong Development Bank
· Total new business partners in India up to nine after signing Barclays,
Deutsche Bank and Life Insurance Corporation of India
Our Asia Pacific business, which represents 2% of Group revenues, has delivered
19% revenue growth to GBP2.7 million in the first six months of 2010, despite
the impact of a new credit card tax in Malaysia introduced at the beginning of
the year that negatively impacted the number of credit cards in circulation.
Having already established in Hong Kong, Singapore, Malaysia and India we
continued to expand internationally with an important first step into mainland
China, partnering with Guangdong Development Bank to provide Card Assistance
services to its premium cardholders on a wholesale basis.
In Hong Kong, the Privacy Commissioner for Personal Data is investigating the
transfer of personal data to third parties for marketing purposes. This has
resulted from apparent issues with the way Octopus has transferred personal data
to its partners, including CPP. As a result there is a temporary suspension of
all third party marketing in Hong Kong which impacts our telemarketing channel.
Sales by our partner banks are unaffected so there will continue to be some
sales of our Card Protection product, mainly by Citi, however this issue has a
significant impact on new income in Hong Kong. There is currently no indication
as to when this temporary suspension will be lifted.
In India we continue to build our business through expansion of our business
partner base and addition of new channels. In the first half of the year we
signed three new business partners: Barclays, Deutsche Bank and Life Insurance
Corporation of India. This now takes the total number of business partners to
nine since we launched in December 2008. Indian revenues in 2010 now include
renewals from existing customers. Indian renewal rates are in line with our
expectations for a newly established territory. Two card activation campaigns
have been launched and web-based acquisition and ATM marketing have also been
deployed.
With a large bankable population across Asia Pacific, new business partners and
channels we believe we are well positioned to develop long-term mutually
beneficial relationships with our business partners and end customers.
Home 3
We continue to invest in Home 3, our joint venture with Mapfre Asistencia, and
continue to work on developing business opportunities.
Financing and operating items
We are pleased to report year on year Underlying Operating Profit growth of 20%.
This growth includes costs associated with operating as a listed company and
charges from new share options issued subsequent to our IPO which we have
absorbed.
Net finance costs have fallen by GBP2.1 million, excluding accelerated
amortisation of GBP3.1 million of capitalised loan issue costs. These costs were
expensed when our previous loan facilities were repaid and new bank debt taken
out at the time of our IPO. Our new revolving credit facility has benefited from
both a lower balance outstanding and a lower effective interest rate than our
previous facilities. Finance costs of GBP0.6 million in the period arise from
our new debt facilities and GBP4.0 million from our previous facilities.
Our effective tax rate has increased year on year to 32.0% from 31.6% due to
taxable losses arising from new territories which cannot be offset against
taxable profits elsewhere in the Group.
Financial position and cash flows
Our financial position is strong, with net debt reducing to GBP13.2 million at
30 June 2009 from GBP48.8 million at 31 December 2009.
Profit after Tax of GBP11.8 million has generated positive operating cash flows
of GBP13.3 million. Financing activities have generated GBP26.1 million of net
listing proceeds and GBP8.5 million from employee exercises of share options
vesting following our IPO.
We continue to invest in the development of our business and have invested
GBP8.6 million acquiring tangible and intangible non-current assets during the
first half of 2010. Acquisition of intangible assets includes GBP5.2 million of
investment in business partner intangibles and GBP3.1 million of investment in
our IT systems.
Our working capital is in line with expectations, and reflects seasonal and
short term timing factors and one-off payments arising from our legacy share
options.
Dividends
In accordance with the Group's dividend policy, the directors have approved an
interim dividend of 2.42 pence per share (GBP4.1 million). The dividend will be
paid on 13 October 2010 with an ex dividend date of 15 September 2010.
Related party transactions
Related party transactions are disclosed in note 12 to the Condensed Financial
Statements. There have been no material changes to the related party
transactions described in the 2009 Annual Report of CPP Group plc.
Risks and uncertainties
There are a number of potential risks and uncertainties which could have a
material impact on the Group's performance over the remaining six months of the
financial year and could cause actual results to differ materially from expected
and historical results. The directors do not consider the principal risks and
uncertainties listed below to have changed since publication of the Annual
Report of CPP Group plc for the year ended 31 December 2009. Further details of
risk factors for the Group can be found on pages 12 to 25 of our IPO prospectus.
These documents are available at www.cppgroupplc.com.
Geographic markets
The Group operates in several geographic markets with varying levels of business
maturity in terms of size, operating model and product base.
Regulation
The Group has a number of regulated subsidiaries and as such the risks of
non-compliance with current regulation, continuance of the Group's 'licence to
trade' in any given territory, or future changes to regulatory frameworks, are
ever present.
Business partner relationships
The Group mainly operates a B2B2C model and as such a relatively high proportion
of the Group's revenue is attributable to relationships with its business
partners. As a result of this, Group revenues could be impacted by business
partners delaying the implementation of sales campaigns.
Reliance on technology
The nature of the Group's products, sales channels and delivery models mean that
its reputation, cash flows or operations could be adversely affected by failures
of the Group's own IT systems or those provided by third parties.
Fraud
The risk of fraud, both external and internal, is ever present in a business of
this size.
Financial risks
The Group's operations expose it to financial risks including foreign exchange,
interest rate, liquidity, credit and insurance risks.
Going concern
As stated in note 2 to the Condensed Financial Statements, the directors are
satisfied that that the Group has sufficient resources to continue in operation
for the foreseeable future. Thus they continue to adopt the going concern basis
of accounting in preparing the Condensed Financial Statements.
On behalf of the Board
Eric Woolley
Shaun Parker
Chief Executive Officer
Chief Financial Officer
25 August 2010
CONDENSED FINANCIAL STATEMENTS
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| CONSOLIDATED | | | | | | | | |
| INCOME | | | | | | | | |
| STATEMENT | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| | | | 6 | | 6 | | Year | |
| | | | months | | months | | ended | |
| | | | ended | | ended | | 31 | |
| | | | 30 | | 30 | | December | |
| | | | June | | June | | 2009 | |
| | | | 2010 | | 2009 | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| | | | GBP'000 | | GBP'000 | | GBP'000 | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| | Note | | (Unaudited) | | (Unaudited) | | (Audited) | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| CONTINUING | | | | | | | | |
| OPERATIONS | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| Revenue | | | 156,920 | | 141,216 | | 292,102 | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| Cost | | | (90,550) | | (82,035) | | (167,882) | |
| of | | | | | | | | |
| sales | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| GROSS | | | 66,370 | | 59,181 | | 124,220 | |
| PROFIT | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| ADMINISTRATIVE | | | | | | | | |
| EXPENSES | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| Legacy | 11 | | (2,199) | | (5,102) | | (10,391) | |
| scheme | | | | | | | | |
| share | | | | | | | | |
| based | | | | | | | | |
| payments | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| Other | | | (41,937) | | (38,913) | | (82,013) | |
| administrative | | | | | | | | |
| expenses | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| TOTAL | | | (44,136) | | (44,015) | | (92,404) | |
| ADMINISTRATIVE | | | | | | | | |
| EXPENSES | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| Share | | | (387) | | (286) | | (695) | |
| of | | | | | | | | |
| loss | | | | | | | | |
| of | | | | | | | | |
| joint | | | | | | | | |
| venture | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| OPERATING | | | | | | | | |
| PROFIT | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| Operating | | | 24,046 | | 19,982 | | 41,512 | |
| profit | | | | | | | | |
| before | | | | | | | | |
| legacy | | | | | | | | |
| scheme | | | | | | | | |
| share | | | | | | | | |
| based | | | | | | | | |
| payments | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| Operating | | | 21,847 | | 14,880 | | 31,121 | |
| profit | | | | | | | | |
| after | | | | | | | | |
| legacy | | | | | | | | |
| scheme | | | | | | | | |
| share | | | | | | | | |
| based | | | | | | | | |
| payments | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| Investment | | | 120 | | 455 | | 706 | |
| revenues | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| Finance | | | - | | (879) | | (1,641) | |
| costs - | | | | | | | | |
| derivative | | | | | | | | |
| instruments | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| Finance | 4 | | (4,609) | | (3,065) | | (5,342) | |
| costs - | | | | | | | | |
| non-derivative | | | | | | | | |
| instruments | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| PROFIT | | | 17,358 | | 11,391 | | 24,844 | |
| BEFORE | | | | | | | | |
| TAXATION | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| Taxation | 5 | | (5,555) | | (3,600) | | (7,851) | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| PROFIT | | | 11,803 | | 7,791 | | 16,993 | |
| FOR | | | | | | | | |
| THE | | | | | | | | |
| PERIOD | | | | | | | | |
| FROM | | | | | | | | |
| CONTINUING | | | | | | | | |
| OPERATIONS | | | | | | | | |
| ATTRIBUTABLE | | | | | | | | |
| TO EQUITY | | | | | | | | |
| HOLDERS OF | | | | | | | | |
| THE COMPANY | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| BASIC | | | | | | | | |
| AND | | | | | | | | |
| DILUTED | | | | | | | | |
| EARNINGS | | | | | | | | |
| PER | | | | | | | | |
| SHARE | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| FROM | | | Pence | | Pence | | Pence | |
| CONTINUING | | | | | | | | |
| OPERATIONS: | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| Basic | 6 | | 7.29 | | 5.14 | | 11.21 | |
| earnings | | | | | | | | |
| per | | | | | | | | |
| share | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| Diluted | 6 | | 7.12 | | 5.03 | | 11.10 | |
| earnings | | | | | | | | |
| per | | | | | | | | |
| share | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| CONSOLIDATED | | | | | | | | |
| STATEMENT OF | | | | | | | | |
| COMPREHENSIVE | | | | | | | | |
| INCOME | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| | | | 6 | | 6 | | Year | |
| | | | months | | months | | ended | |
| | | | ended | | ended | | 31 | |
| | | | 30 | | 30 | | December | |
| | | | June | | June | | 2009 | |
| | | | 2010 | | 2009 | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| | | | GBP'000 | | GBP'000 | | GBP'000 | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| | | | (Unaudited) | | (Unaudited) | | (Audited) | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| PROFIT | | | 11,803 | | 7,791 | | 16,993 | |
| FOR | | | | | | | | |
| THE | | | | | | | | |
| PERIOD | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| OTHER | | | | | | | | |
| COMPREHENSIVE | | | | | | | | |
| INCOME AND | | | | | | | | |
| EXPENSES | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| Exchange | | | 830 | | (2,745) | | (2,110) | |
| differences | | | | | | | | |
| on | | | | | | | | |
| translation | | | | | | | | |
| of foreign | | | | | | | | |
| operations | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| OTHER | | | 830 | | (2,745) | | (2,110) | |
| COMPREHENSIVE | | | | | | | | |
| INCOME/ | | | | | | | | |
| (EXPENSES) | | | | | | | | |
| FOR THE | | | | | | | | |
| PERIOD NET OF | | | | | | | | |
| TAXATION | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
| TOTAL | | | 12,633 | | 5,046 | | 14,883 | |
| COMPREHENSIVE | | | | | | | | |
| INCOME FOR | | | | | | | | |
| THE PERIOD | | | | | | | | |
| ATTRIBUTABLE | | | | | | | | |
| TO EQUITY | | | | | | | | |
| HOLDERS OF | | | | | | | | |
| THE COMPANY | | | | | | | | |
+----------------+--------+--------+-------------+--------+-------------+--------+-----------+--------+
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| CONSOLIDATED | | | | | | | |
| BALANCE | | | | | | | |
| SHEET | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | 30 | | 30 | | 31 |
| | | | June | | June | | December |
| | | | 2010 | | 2009 | | 2009 |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | GBP'000 | | GBP'000 | | GBP'000 |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | (As | | (As |
| | | | | | restated) | | restated) |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | Note | | (Unaudited) | | (Unaudited) | | (Audited) |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| NON-CURRENT | | | | | | | |
| ASSETS | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | 8 | | 16,854 | | 13,196 | | 16,053 |
| Goodwill | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | 8 | | 19,380 | | 8,794 | | 15,726 |
| Other | | | | | | | |
| intangible | | | | | | | |
| assets | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | 8 | | 13,969 | | 14,180 | | 13,864 |
| Property, | | | | | | | |
| plant and | | | | | | | |
| equipment | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | - | | 207 | | 50 |
| Investment | | | | | | | |
| in joint | | | | | | | |
| venture | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | 3,197 | | 3,327 | | 3,418 |
| Deferred | | | | | | | |
| tax | | | | | | | |
| asset | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | 53,400 | | 39,704 | | 49,111 |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| CURRENT | | | | | | | |
| ASSETS | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | 17,290 | | 13,570 | | 14,052 |
| Insurance | | | | | | | |
| assets | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | 243 | | 138 | | 159 |
| Inventories | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | 27,580 | | 20,506 | | 23,906 |
| Trade | | | | | | | |
| and | | | | | | | |
| other | | | | | | | |
| receivables | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | 28,749 | | 46,200 | | 52,379 |
| Cash | | | | | | | |
| and | | | | | | | |
| cash | | | | | | | |
| equivalents | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | 73,862 | | 80,414 | | 90,496 |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| TOTAL | | | 127,262 | | 120,118 | | 139,607 |
| ASSETS | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| CURRENT | | | | | | | |
| LIABILITIES | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | (9,609) | | (8,044) | | (8,997) |
| Insurance | | | | | | | |
| liabilities | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | (6,283) | | (4,934) | | (4,191) |
| Income | | | | | | | |
| tax | | | | | | | |
| liabilities | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | (61,592) | | (50,215) | | (65,152) |
| Trade | | | | | | | |
| and | | | | | | | |
| other | | | | | | | |
| payables | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | 9 | | - | | (11,558) | | (12,021) |
| Bank | | | | | | | |
| loans | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | (745) | | - | | (1,524) |
| Provisions | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | (78,229) | | (74,751) | | (91,885) |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| NET | | | (4,367) | | 5,663 | | (1,389) |
| CURRENT | | | | | | | |
| LIABILITIES | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| NON-CURRENT | | | | | | | |
| LIABILITIES | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | 9 | | (41,944) | | (93,596) | | (89,202) |
| Bank | | | | | | | |
| loans | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | - | | (3,655) | | - |
| Derivative | | | | | | | |
| financial | | | | | | | |
| instruments | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | (745) | | - | | (1,524) |
| Provisions | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | (42,689) | | (97,251) | | (90,726) |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| TOTAL | | | (120,918) | | (172,002) | | (182,611) |
| LIABILITIES | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| NET | | | 6,344 | | (51,884) | | (43,004) |
| ASSETS/ | | | | | | | |
| (LIABILITIES) | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| EQUITY | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | 10 | | 17,016 | | 15,152 | | 15,152 |
| Share | | | | | | | |
| Capital | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | 32,253 | | - | | - |
| Share | | | | | | | |
| Premium | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | (100,399) | | (100,399) | | (100,399) |
| Merger | | | | | | | |
| Reserve | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | 2,825 | | 1,360 | | 1,995 |
| Translation | | | | | | | |
| Reserve | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | 5,466 | | 4,416 | | 4,913 |
| Equalisation | | | | | | | |
| Reserve | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | 7,599 | | 6,816 | | 5,783 |
| Share | | | | | | | |
| Based | | | | | | | |
| Payment | | | | | | | |
| Reserve | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | 41,584 | | 20,771 | | 29,552 |
| Retained | | | | | | | |
| Earnings | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
| TOTAL | | | 6,344 | | (51,884) | | (43,004) |
| EQUITY | | | | | | | |
| ATTRIBUTABLE | | | | | | | |
| TO EQUITY | | | | | | | |
| HOLDERS OF | | | | | | | |
| THE COMPANY | | | | | | | |
+---------------+--------+--------+-------------+--------+-------------+--------+-----------+
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| CONSOLIDATED STATEMENT OF CHANGES IN | | | | | | | | | | | | |
| EQUITY | | | | | | | | | | | | |
+----------------------------------------------------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| | | Share | | Share | | Merger | | Translation | | Equalisation | | Share | | Retained | | Total |
| | | | | | | | | | | | | Based | | | | |
| | | | | | | | | | | | | Payment | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| | | Capital | | Premium | | Reserve | | Reserve | | Reserve | | Reserve | | Earnings | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| | Note | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| SIX MONTHS ENDED 30 JUNE | | | | | | | | | | | | | | |
| 2010 | | | | | | | | | | | | | | |
| (Unaudited) | | | | | | | | | | | | | | |
+---------------------------------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| At 1 | | 15,152 | | - | | (100,399) | | 1,995 | | 4,913 | | 5,783 | | 29,552 | | (43,004) |
| January | | | | | | | | | | | | | | | | |
| 2010 | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| Total | - | | - | | - | | 830 | | - | | - | | 11,803 | | 12,633 |
| comprehensive | | | | | | | | | | | | | | | |
| income | | | | | | | | | | | | | | | |
+-----------------------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| Movement | | - | | - | | - | | - | | 553 | | - | | (553) | | - |
| on | | | | | | | | | | | | | | | | |
| equalisation | | | | | | | | | | | | | | | | |
| reserve | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| Current | | - | | - | | - | | - | | - | | - | | 155 | | 155 |
| tax | | | | | | | | | | | | | | | | |
| charge | | | | | | | | | | | | | | | | |
| on | | | | | | | | | | | | | | | | |
| equalisation | | | | | | | | | | | | | | | | |
| reserve | | | | | | | | | | | | | | | | |
| movement | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| Equity | | - | | - | | - | | - | | - | | 2,217 | | - | | 2,217 |
| settled | | | | | | | | | | | | | | | | |
| share | | | | | | | | | | | | | | | | |
| based | | | | | | | | | | | | | | | | |
| payment | | | | | | | | | | | | | | | | |
| charge | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| Current | | - | | - | | - | | - | | - | | - | | 880 | | 880 |
| tax on | | | | | | | | | | | | | | | | |
| share | | | | | | | | | | | | | | | | |
| based | | | | | | | | | | | | | | | | |
| payment | | | | | | | | | | | | | | | | |
| charge | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| Deferred | | - | | - | | - | | - | | - | | - | | (253) | | (253) |
| tax on | | | | | | | | | | | | | | | | |
| share | | | | | | | | | | | | | | | | |
| based | | | | | | | | | | | | | | | | |
| payment | | | | | | | | | | | | | | | | |
| charge | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| Exercise | 11 | 574 | | 7,878 | | - | | - | | - | | (401) | | - | | 8,051 |
| of share | | | | | | | | | | | | | | | | |
| options | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| Other | 10 | 1,290 | | 24,375 | | - | | - | | - | | - | | - | | 25,665 |
| ordinary | | | | | | | | | | | | | | | | |
| share | | | | | | | | | | | | | | | | |
| issues | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| At 30 | | 17,016 | | 32,253 | | (100,399) | | 2,825 | | 5,466 | | 7,599 | | 41,584 | | 6,344 |
| June | | | | | | | | | | | | | | | | |
| 2010 | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| SIX MONTHS ENDED 30 JUNE | | | | | | | | | | | | | | |
| 2009 | | | | | | | | | | | | | | |
| (As restated, Unaudited) | | | | | | | | | | | | | | |
+---------------------------------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| At 1 | | 15,152 | | - | | (100,399) | | 4,105 | | 3,941 | | 1,714 | | 13,386 | | (62,101) |
| January | | | | | | | | | | | | | | | | |
| 2009 | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| Total | - | | - | | - | | (2,745) | | - | | - | | 7,791 | | 5,046 |
| comprehensive | | | | | | | | | | | | | | | |
| income | | | | | | | | | | | | | | | |
+-----------------------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| Movement | | - | | - | | - | | - | | 475 | | - | | (475) | | - |
| on | | | | | | | | | | | | | | | | |
| equalisation | | | | | | | | | | | | | | | | |
| reserve | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| Current | | - | | - | | - | | - | | - | | - | | 133 | | 133 |
| tax | | | | | | | | | | | | | | | | |
| charge | | | | | | | | | | | | | | | | |
| on | | | | | | | | | | | | | | | | |
| equalisation | | | | | | | | | | | | | | | | |
| reserve | | | | | | | | | | | | | | | | |
| movement | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| Equity | | - | | - | | - | | - | | - | | 5,102 | | - | | 5,102 |
| settled | | | | | | | | | | | | | | | | |
| share | | | | | | | | | | | | | | | | |
| based | | | | | | | | | | | | | | | | |
| payment | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| Deferred | | - | | - | | - | | - | | - | | - | | (64) | | (64) |
| tax on | | | | | | | | | | | | | | | | |
| share | | | | | | | | | | | | | | | | |
| based | | | | | | | | | | | | | | | | |
| payment | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| At 30 | | 15,152 | | - | | (100,399) | | 1,360 | | 4,416 | | 6,816 | | 20,771 | | (51,884) |
| June | | | | | | | | | | | | | | | | |
| 2009 | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| YEAR ENDED 31 DECEMBER | | | | | | | | | | | | | | |
| 2009 | | | | | | | | | | | | | | |
| (As restated, Audited) | | | | | | | | | | | | | | |
+---------------------------------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| At 1 | | 15,152 | | - | | (100,399) | | 4,105 | | 3,941 | | 1,714 | | 13,386 | | (62,101) |
| January | | | | | | | | | | | | | | | | |
| 2009 | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| Total | - | | - | | - | | (2,110) | | - | | - | | 16,993 | | 14,883 |
| comprehensive | | | | | | | | | | | | | | | |
| income | | | | | | | | | | | | | | | |
+-----------------------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| Movement | | - | | - | | - | | - | | 972 | | - | | (972) | | - |
| on | | | | | | | | | | | | | | | | |
| equalisation | | | | | | | | | | | | | | | | |
| reserve | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| Current | | - | | - | | - | | - | | - | | - | | 272 | | 272 |
| tax | | | | | | | | | | | | | | | | |
| charge | | | | | | | | | | | | | | | | |
| on | | | | | | | | | | | | | | | | |
| equalisation | | | | | | | | | | | | | | | | |
| reserve | | | | | | | | | | | | | | | | |
| movement | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| Equity | | - | | - | | - | | - | | - | | 10,391 | | - | | 10,391 |
| settled | | | | | | | | | | | | | | | | |
| share | | | | | | | | | | | | | | | | |
| based | | | | | | | | | | | | | | | | |
| payment | | | | | | | | | | | | | | | | |
| charge | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| Exercise | | - | | - | | - | | - | | - | | (6,322) | | - | | (6,322) |
| of share | | | | | | | | | | | | | | | | |
| options | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| Deferred | | - | | - | | - | | - | | - | | - | | (127) | | (127) |
| tax on | | | | | | | | | | | | | | | | |
| share | | | | | | | | | | | | | | | | |
| based | | | | | | | | | | | | | | | | |
| payment | | | | | | | | | | | | | | | | |
| charge | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| At 31 | | 15,152 | | - | | (100,399) | | 1,995 | | 4,913 | | 5,783 | | 29,552 | | (43,004) |
| December | | | | | | | | | | | | | | | | |
| 2009 | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
| | | | | | | | | | | | | | | | | |
+--------------+--------+---------+--------+---------+--------+-----------+--------+-------------+--------+--------------+--------+---------+--------+----------+--------+----------+
+---------------------------------------+---+--------+--------+-------------+--------+-------------+--------+-----------+
| CONSOLIDATED CASH FLOW STATEMENT | | | | | | | |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| | Note | | 6 months | | 6 months | | Year |
| | | | ended 30 | | ended 30 | | ended 31 |
| | | | June | | June | | December |
| | | | 2010 | | 2009 | | 2009 |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| | | | GBP'000 | | GBP'000 | | GBP'000 |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| | | | (Unaudited) | | (Unaudited) | | (Audited) |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| NET CASH FROM OPERATING ACTIVITIES | | | 13,324 | | 17,370 | | 45,457 |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| INVESTING ACTIVITIES | | | | | | | |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| Interest received | | | 120 | | 455 | | 706 |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| Purchases of property, plant and | | | (800) | | (634) | | (2,165) |
| equipment | | | | | | | |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| Purchases of intangible assets | | | (6,862) | | (1,557) | | (8,649) |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| Acquisition of subsidiary, net of | | | - | | - | | (3,149) |
| cash acquired | | | | | | | |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| Investment in joint venture | | | (338) | | (588) | | (840) |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| NET CASH USED IN INVESTING ACTIVITIES | | | (7,880) | | (2,324) | | (14,097) |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| FINANCING ACTIVITIES | | | | | | | |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| Repayment of bank loans | | | (121,383) | | (6,863) | | (11,567) |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| Proceeds from new bank loans | | | 59,700 | | - | | - |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| Interest paid | | | (973) | | (2,320) | | (3,854) |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| Cash outflows on derivative | | | - | | (1,306) | | (5,724) |
| financial instruments | | | | | | | |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| Cost of refinancing | | | (1,080) | | - | | - |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| Issue of ordinary share capital | 10 | | 34,521 | | - | | - |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| NET CASH USED IN FINANCING ACTIVITIES | | | (29,215) | | (10,489) | | (21,145) |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | |
+---------------------------------------+------------+--------+-------------+--------+-------------+--------+-----------+
| NET (DECREASE)/ INCREASE IN CASH AND CASH | | (23,771) | | 4,557 | | 10,215 |
| EQUIVALENTS | | | | | | |
+----------------------------------------------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | |
+-------------------------------------------+--------+--------+-------------+--------+-------------+--------+-----------+
| Effect of foreign exchange rate changes | | | 141 | | (1,598) | | (926) |
+-------------------------------------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | |
+-------------------------------------------+--------+--------+-------------+--------+-------------+--------+-----------+
| CASH AND CASH EQUIVALENTS AT START OF | | | 52,379 | | 43,241 | | 43,241 |
| PERIOD | | | | | | | |
+-------------------------------------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | |
+-------------------------------------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | |
+-------------------------------------------+--------+--------+-------------+--------+-------------+--------+-----------+
| CASH AND CASH EQUIVALENTS AT END OF | | | 28,749 | | 46,200 | | 52,530 |
| PERIOD | | | | | | | |
+-------------------------------------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | |
+-------------------------------------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | |
+-------------------------------------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | | |
+---------------------------------------+---+--------+--------+-------------+--------+-------------+--------+-----------+
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
+---+--------------------------------+
|1 | GENERAL INFORMATION |
+---+--------------------------------+
The Company was incorporated on 9 February 2010 and acquired the entire issued
share capital of CPP Group plc (the previous ultimate holding company of the CPP
group) on 24 March 2010 as part of a group reconstruction. The reconstruction
did not change either the identity or relative rights of the ultimate
shareholders of CPP Group plc and, therefore, has been reflected in the
Condensed Financial Statements using the principles of merger accounting for
group reconstructions.
The information for the year ended 31 December 2009 does not constitute
statutory accounts as defined under Section 434 of the Companies Act 2006. A
copy of the 2009 statutory financial statements of CPP Group plc prepared under
IFRS as adopted by the European Union has been delivered to the Registrar of
Companies. The auditors reported on those accounts: their report was
unqualified, did not draw attention to any matters by way of emphasis and did
not contain a statement under Section 498(2) or (3) of the Companies Act 2006.
+---+--------------------------------+
|2 | ACCOUNTING POLICIES |
+---+--------------------------------+
Basis of preparation
The directors will prepare consolidated annual financial statements for the year
ended 31 December 2010 in accordance with IFRS as adopted in the European Union.
The Condensed Financial Statements included in this Half Year Report have been
prepared in accordance with IAS 34 "Interim Financial Reporting", as adopted by
the European Union.
Under IFRS the group reconstruction during the period is treated as a common
control transaction, for which there is no specific accounting guidance.
Consequently the directors have had regard to the guidance in IAS8 "Accounting
Policies, Changes in Accounting Estimates and Errors" on the selection of
accounting policies and have adopted merger accounting in accordance with the
provisions of Financial Reporting Standard 6 in the United Kingdom.
The adoption of merger accounting presents the Company as if it had always been
the parent undertaking of the Group, and therefore no adjustments to the book
values of the assets and liabilities were required at the date of the
reconstruction. As the Company was not incorporated until 9 February 2010, the
results and details of the financial position prior to this date reflect those
presented previously as the results and financial position of CPP Group plc, the
former parent of the Group, except that they have been restated in that the
share capital of CPP Group plc has been reclassified to the merger reserve and
the share capital for prior periods reflects the Company's shares issued as part
of the reconstruction.
The same accounting policies, presentation and methods of computation are
followed in the Condensed Financial Statements as applied to CPP Group plc's
latest annual audited consolidated financial statements, except for adoption of
the following Standards and Interpretations. These are mandatory from 1 January
2010 and their adoption has not had any material impact on the Group:
+--------------------------+--------------------------------------+
| - IFRS 3 (revised | Business Combinations |
| January 2008) | |
+--------------------------+--------------------------------------+
| - Amendment to IAS 27 | Consolidated and Separate Financial |
| (January 2008) | Statements |
+--------------------------+--------------------------------------+
| - Amendment to IAS 39 | Eligible Hedged Items |
| (July 2008) | |
+--------------------------+--------------------------------------+
| - IFRS 1 (revised | First Time Adoption of International |
| November 2008) | Financial Reporting Standards |
+--------------------------+--------------------------------------+
| - Amendment to IFRS 1 | Additional Exemptions for First Time |
| (July 2009) | Adopters |
+--------------------------+--------------------------------------+
| - Amendment to IFRS 2 | Group Cash-settled Share-based |
| (June 2009) | Payment Transactions |
+--------------------------+--------------------------------------+
| - IFRIC 17 | Distributions of Non-cash Assets to |
| | Owners |
+--------------------------+--------------------------------------+
| - IFRIC 18 | Transfers of Assets from Customers |
+--------------------------+--------------------------------------+
Going concern
The directors have, at the time of approving the Half Year Report, a reasonable
expectation that the Group has adequate resources to continue in operational
existence for the foreseeable future. Thus they continue to adopt the going
concern basis of accounting in preparing the Condensed Financial
Statements.
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| 3 | SEGMENTAL | | | | | | | | | | |
| | ANALYSIS | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | IFRS 8 requires operating segments to be identified on the basis of internal reports about |
| | components of the Group that are regularly reviewed by the Board of Directors to allocate |
| | resources to the segments and to assess their performance. There has been no change in the basis |
| | or segmentation or in the basis of measurement of segment profit or loss in the period. |
+--------+------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Segment revenues and performance for the current and comparative periods have | | |
| | been as follows: | | |
+--------+----------------------------------------------------------------------------------------------+--------+----------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | Northern | | Southern | | North | | Asia | | Total |
| | | | Europe | | Europe | | America | | Pacific | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Six | | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
| | months | | | | | | | | | | |
| | ended | | | | | | | | | | |
| | 30 | | | | | | | | | | |
| | June | | | | | | | | | | |
| | 2010 | | | | | | | | | | |
| | (Unaudited) | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Revenue | | 111,631 | | 24,340 | | 18,216 | | 2,733 | | 156,920 |
| | - | | | | | | | | | | |
| | external | | | | | | | | | | |
| | sales | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Regional | | | | | | | | | | |
| | operating | | | | | | | | | | |
| | profit | | | | | | | | | | |
| | before | | | | | | | | | | |
| | legacy | | | | | | | | | | |
| | scheme | | | | | | | | | | |
| | share | | | | | | | | | | |
| | based | | | | | | | | | | |
| | payments | | | | | | | | | | |
| | and joint | | | | | | | | | | |
| | ventures | | | | | | | | | | |
+--------+ +--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | 16,975 | | 5,923 | | 2,797 | | (1,262) | | 24,433 |
+--------+ +--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Legacy | | | | | | | | | | (2,199) |
| | scheme | | | | | | | | | | |
| | share | | | | | | | | | | |
| | based | | | | | | | | | | |
| | payments | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Share | | | | | | | | | | (387) |
| | of | | | | | | | | | | |
| | operating | | | | | | | | | | |
| | loss of | | | | | | | | | | |
| | joint | | | | | | | | | | |
| | venture | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Operating profit after | | | | | | | | 21,847 |
| | legacy scheme share | | | | | | | | |
| | based payments | | | | | | | | |
+--------+------------------------------------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Investment | | | | | | | | | | 120 |
| | revenues | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Finance | | | | | | | | | | (4,609) |
| | costs - | | | | | | | | | | |
| | non-derivative | | | | | | | | | | |
| | instruments | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Profit | | | | | | | | | | 17,358 |
| | on | | | | | | | | | | |
| | ordinary | | | | | | | | | | |
| | activities | | | | | | | | | | |
| | before | | | | | | | | | | |
| | taxation | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Six | | | | | | | | | | |
| | months | | | | | | | | | | |
| | ended | | | | | | | | | | |
| | 30 | | | | | | | | | | |
| | June | | | | | | | | | | |
| | 2009 | | | | | | | | | | |
| | (Unaudited) | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Revenue | | 96,473 | | 24,583 | | 17,857 | | 2,303 | | 141,216 |
| | - | | | | | | | | | | |
| | external | | | | | | | | | | |
| | sales | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Regional | | | | | | | | | | |
| | operating | | | | | | | | | | |
| | profit | | | | | | | | | | |
| | before | | | | | | | | | | |
| | legacy | | | | | | | | | | |
| | scheme | | | | | | | | | | |
| | share | | | | | | | | | | |
| | based | | | | | | | | | | |
| | payments | | | | | | | | | | |
| | and joint | | | | | | | | | | |
| | ventures | | | | | | | | | | |
+--------+ +--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | 11,835 | | 6,790 | | 2,619 | | (976) | | 20,268 |
+--------+ +--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Legacy | | | | | | | | | | (5,102) |
| | scheme | | | | | | | | | | |
| | share | | | | | | | | | | |
| | based | | | | | | | | | | |
| | payments | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Share | | | | | | | | | | (286) |
| | of | | | | | | | | | | |
| | operating | | | | | | | | | | |
| | loss of | | | | | | | | | | |
| | joint | | | | | | | | | | |
| | venture | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Operating profit after | | | | | | | | 14,880 |
| | legacy scheme share | | | | | | | | |
| | based payments | | | | | | | | |
+--------+------------------------------------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Investment | | | | | | | | | | 455 |
| | income | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Finance | | | | | | | | | | (879) |
| | costs - | | | | | | | | | | |
| | derivative | | | | | | | | | | |
| | instruments | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Finance | | | | | | | | | | (3,065) |
| | costs - | | | | | | | | | | |
| | non-derivative | | | | | | | | | | |
| | instruments | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Profit | | | | | | | | | | 11,391 |
| | on | | | | | | | | | | |
| | ordinary | | | | | | | | | | |
| | activities | | | | | | | | | | |
| | before | | | | | | | | | | |
| | taxation | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Year | | | | | | | | | | |
| | ended | | | | | | | | | | |
| | 31 | | | | | | | | | | |
| | December | | | | | | | | | | |
| | 2009 | | | | | | | | | | |
| | (Audited) | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Revenue | | 204,878 | | 47,507 | | 34,784 | | 4,933 | | 292,102 |
| | - | | | | | | | | | | |
| | external | | | | | | | | | | |
| | sales | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Regional | | | | | | | | | | |
| | operating | | | | | | | | | | |
| | profit | | | | | | | | | | |
| | before | | | | | | | | | | |
| | legacy | | | | | | | | | | |
| | scheme | | | | | | | | | | |
| | share | | | | | | | | | | |
| | based | | | | | | | | | | |
| | payments | | | | | | | | | | |
| | and joint | | | | | | | | | | |
| | ventures | | | | | | | | | | |
+--------+ +--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | 27,762 | | 11,249 | | 5,178 | | (1,982) | | 42,207 |
+--------+ +--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Legacy | | | | | | | | | | (10,391) |
| | scheme | | | | | | | | | | |
| | share | | | | | | | | | | |
| | based | | | | | | | | | | |
| | payments | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Share | | | | | | | | | | (695) |
| | of | | | | | | | | | | |
| | operating | | | | | | | | | | |
| | loss of | | | | | | | | | | |
| | joint | | | | | | | | | | |
| | venture | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Operating profit after | | | | | | | | 31,121 |
| | legacy scheme share | | | | | | | | |
| | based payments | | | | | | | | |
+--------+------------------------------------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Investment | | | | | | | | | | 706 |
| | income | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Finance | | | | | | | | | | (1,641) |
| | costs - | | | | | | | | | | |
| | derivative | | | | | | | | | | |
| | instruments | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Finance | | | | | | | | | | (5,342) |
| | costs - | | | | | | | | | | |
| | non-derivative | | | | | | | | | | |
| | instruments | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | Profit | | | | | | | | | | 24,844 |
| | on | | | | | | | | | | |
| | ordinary | | | | | | | | | | |
| | activities | | | | | | | | | | |
| | before | | | | | | | | | | |
| | taxation | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
| | | | | | | | | | | | |
+--------+----------------+--------+----------+--------+----------+--------+---------+--------+---------+--------+----------+
+--------+--------------------------------+--------+--------+--------+----+--------+-+----------+----+--------+--+-+-+---------+
| | Segment assets | | | | | | | | |
+--------+--------------------------------+--------+--------+-------------+----------+---------------+-----------+---+---------+
| | | | | | | | | | |
+--------+--------------------------------+--------+--------+-------------+----------+---------------+-----------+---+---------+
| | For the purposes of monitoring segment performance and allocating resources between segments, the Board of |
| | Directors monitors the tangible and financial assets attributable to each segment. Goodwill, deferred tax and |
| | investments in joint ventures are not allocated to segments. |
+--------+---------------------------------------------------------------------------------------------------------------------+
| | | | | | 30 June | | 30 June | | 31 |
| | | | | | 2010 | | 2009 | | December |
| | | | | | | | | | 2009 |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | | | | | GBP'000 | | GBP'000 | | GBP'000 |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | | | | | (Unaudited) | | (Unaudited) | | (Audited) |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | | | | | | | | | |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | Northern Europe | | | | 84,580 | | 81,630 | | 97,010 |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | Southern Europe | | | | 9,524 | | 7,973 | | 8,599 |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | North America | | | | 11,364 | | 12,368 | | 12,925 |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | Asia Pacific | | | | 1,743 | | 1,417 | | 1,552 |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | | | | | | | | | |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | | | | | | | | | |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | Total segment assets | | | | 107,211 | | 103,388 | | 120,086 |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | Unallocated assets | | | | 20,051 | | 16,730 | | 19,521 |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | | | | | | | | | |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | | | | | | | | | |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | Consolidated total assets | | | | 127,262 | | 120,118 | | 139,607 |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | | | | | | | | | |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | | | | | | | | | |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | Revenues from major products | | | | | | | | |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | | | | | | | | | |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | Major product streams are disclosed on the basis monitored by the Board of Directors. For the purpose of this |
| | product analysis, "Assistance Products" are those which are predominantly insurance backed but contain a |
| | bundle of insurance, assistance and other benefits; "Insurance products" are those which cover a single |
| | insurance risk. |
+--------+---------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | The Group's revenues from its major products are | | 6 months | | 6 months | | Year |
| | as follows: | | ended 30 | | ended 30 | | ended 31 |
| | | | June | | June | | December |
| | | | 2010 | | 2009 | | 2009 |
+--------+--------------------------------------------------+--------+-------------+------------+-------------+----+-----------+
| | | | | | GBP'000 | | GBP'000 | | GBP'000 |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | | | | | (Unaudited) | | (Unaudited) | | (Audited) |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | | | | | | | | | |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | Assistance products | | | | 139,330 | | 125,880 | | 261,932 |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | Insurance products | | | | 17,590 | | 15,336 | | 30,170 |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | | | | | | | | | |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | Total revenue | | | | 156,920 | | 141,216 | | 292,102 |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | | | | | | | | | |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | | | | | | | | | |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| 4 | FINANCE COSTS - NON-DERIVATIVE INSTRUMENTS | | 6 months | | 6 months | | Year |
| | | | ended 30 | | ended 30 | | ended 31 |
| | | | June | | June | | December |
| | | | 2010 | | 2009 | | 2009 |
+--------+--------------------------------------------------+--------+-------------+------------+-------------+----+-----------+
| | | | | | GBP'000 | | GBP'000 | | GBP'000 |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | | | | | (Unaudited) | | (Unaudited) | | (Audited) |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | | | | | | | | | |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | Bank loan interest | | | | 1,045 | | 2,122 | | 3,540 |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | Amortisation of capitalised | | | | 3,522 | | 745 | | 1,488 |
| | loan issue costs | | | | | | | | |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | Other | | | | 42 | | 198 | | 314 |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | | | | | | | | | |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | | | | | 4,609 | | 3,065 | | 5,342 |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | | | | | | | | | |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | | | | | | | | | |
+--------+--------------------------------+--------+--------+--------+-------------+------------+-------------+----+-----------+
| | On 24 March 2010 the Group repaid its existing bank loans early, using funds including proceeds from its |
| | Initial Public Offering and listing on the London Stock Exchange ("IPO"), the exercise of share options and |
| | new bank debt taken out during the period. This early settlement resulted in accelerated amortisation of the |
| | then remaining capitalised issue costs of GBP3,119,000 on the existing bank loans. |
+--------+---------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | | | |
+--------+--------------------------------+--------+--------+--------+----+--------+-+----------+----+--------+--+-+-+---------+
+--------+---------------+--------+--------+--------+--------+--------+----------+--------+----+--------+-+-+----+--------+----------+-+----------+-+----------+-----------+
| 5 | TAXATION | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+-------------------+-------------+----------+------+---------------------+-----------------------+-----------+
| | | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+-------------------+-------------+----------+------+---------------------+-----------------------+-----------+
| | Tax for the six month period is charged at 32.0% (six months ended 30 June 2009: 31.6%: year ended 31 December 2009: 31.6%), representing the best |
| | estimate of the average effective tax rate expected for the full year, applied to the pre-tax income of the six month period. |
+--------+-----------------------------------------------------------------------------------------------------------------------------------------------------------------+
| 6 | EARNINGS PER SHARE | | | | | | | | | | |
+--------+------------------------+--------+--------+--------+-------------------+-------------+----------+------+---------------------+-----------------------+-----------+
| | | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+-------------------+-------------+----------+------+---------------------+-----------------------+-----------+
| | Basic and diluted earnings per share have been calculated in accordance with IAS 33 "Earnings per Share". Underlying earnings per share have also been |
| | presented in order to give a better understanding of the performance of the business. |
+--------+-----------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | 6 months | | 6 months ended 30 | | Year ended 31 |
| | | | | | | | | ended 30 | | June 2009 | | December 2009 |
| | | | | | | | | June | | | | |
| | | | | | | | | 2010 | | | | |
+--------+---------------+--------+--------+--------+--------+-------------------+--------+-------------+---+------------------------+--------------+----------------------+
| | | | | | | | | (Unaudited) | | (Unaudited) | | (Audited) |
+--------+---------------+--------+--------+--------+--------+-------------------+--------+-------------+---+------------------------+--------------+----------------------+
| | Earnings | | | | | | | GBP'000 | | GBP'000 | | GBP'000 |
+--------+---------------+--------+--------+--------+--------+-------------------+--------+-------------+---+------------------------+--------------+----------------------+
| | | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+-------------------+--------+-------------+---+------------------------+--------------+----------------------+
| | Earnings for the purposes of basic and diluted earnings per share | | 11,803 | | 7,791 | | 16,993 |
+--------+-----------------------------------------------------------------------+--------+-------------+---+------------------------+--------------+----------------------+
| | | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+-------------------+--------+-------------+---+------------------------+--------------+----------------------+
| | Legacy scheme share based payments (net of tax) | | | 1,583 | | 3,673 | | 7,482 |
+--------+---------------------------------------------------+-------------------+--------+-------------+---+------------------------+--------------+----------------------+
| | Exceptional amortisation of capitalised loan issue costs (net of tax) | | 2,246 | | - | | - |
+--------+-----------------------------------------------------------------------+--------+-------------+---+------------------------+--------------+----------------------+
| | | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+-------------------+--------+-------------+---+------------------------+--------------+----------------------+
| | Earnings for the purposes of underlying basic and diluted earnings per share | 15,632 | | 11,464 | | 24,475 |
+--------+--------------------------------------------------------------------------------+-------------+---+------------------------+--------------+----------------------+
| | | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+--------+-------------------+-------------+---+------------------------+--------------+----------------------+
| | Number of | | | | | | | Number | | Number | | Number |
| | shares | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+--------+-------------------+-------------+---+------------------------+--------------+----------------------+
| | | | | | | | | (thousands) | | (thousands) | | (thousands) |
+--------+---------------+--------+--------+--------+--------+--------+-------------------+-------------+---+------------------------+--------------+----------------------+
| | Weighted average number of ordinary shares for the purposes of basic earnings | 161,945 | | 151,521 | | 151,521 |
| | per share: | | | | | |
+--------+--------------------------------------------------------------------------------+-------------+---+------------------------+--------------+----------------------+
| | | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+-------------------+--------+-------------+---+------------------------+--------------+----------------------+
| | Effect of dilutive potential ordinary | | | | | | | | |
| | shares: | | | | | | | | |
+--------+------------------------------------------+--------+-------------------+--------+-------------+---+------------------------+--------------+----------------------+
| | Employee share | | | | | | 3,786 | | 3,377 | | 1,546 |
| | options | | | | | | | | | | |
+--------+------------------------+--------+--------+--------+-------------------+--------+-------------+---+------------------------+--------------+----------------------+
| | | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+-------------------+--------+-------------+---+------------------------+--------------+----------------------+
| | Weighted average number of ordinary shares for the purposes of diluted | 165,731 | | 154,898 | | 153,067 |
| | earnings per share: | | | | | |
+--------+--------------------------------------------------------------------------------+-------------+---+------------------------+--------------+----------------------+
| | | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+-------------------+--------+-------------+---+------------------------+--------------+----------------------+
| | The number of shares disclosed above follows the principles of merger accounting, whereby the number of shares is based on the Company always having |
| | been the parent company of the CPP group of Companies. |
+--------+-----------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | 6 months | | 6 months | | Year ended 31 |
| | | | | | | | | ended 30 | | ended 30 | | December 2009 |
| | | | | | | | | June | | June | | |
| | | | | | | | | 2010 | | 2009 | | |
+--------+---------------+--------+--------+--------+--------+-------------------+--------+-------------+---+-------------+-----------------------+------------------------+
| | | | | | | | | Pence | | Pence | | Pence |
+--------+---------------+--------+--------+--------+--------+-------------------+--------+-------------+---+-------------+------------------------------------+-----------+
| | | | | | | | | (Unaudited) | | (Unaudited) | | (Audited) |
+--------+---------------+--------+--------+--------+--------+-------------------+--------+-------------+---+-------------+------------------------------------+-----------+
| | Basic and diluted earnings per share from continuing operations: | | | | | | |
+--------+-----------------------------------------------------------------------+--------+-------------+---+-------------+------------------------------------+-----------+
| | Basic | | | | | | | 7.29 | | 5.14 | | 11.21 |
| | shares | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+-------------------+--------+-------------+---+-------------+------------------------------------+-----------+
| | Diluted | | | | | | | 7.12 | | 5.03 | | 11.10 |
| | shares | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+-------------------+--------+-------------+---+-------------+------------------------------------+-----------+
| | Basic and diluted underlying earnings per share from continuing operations: | | | | |
+--------+----------------------------------------------------------------------------------------------+---+-------------+------------------------------------+-----------+
| | Basic | | | | | | | 9.65 | | 7.57 | | 16.15 |
+--------+---------------+--------+--------+--------+--------+-------------------+-------------+--------+---+-------------+------------------------------------+-----------+
| | Diluted | | | | | | | 9.43 | | 7.40 | | 15.99 |
+--------+---------------+--------+--------+--------+--------+-------------------+-------------+--------+---+-------------+------------------------------------+-----------+
| | | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+-------------------+-------------+--------+---+-------------+------------------------------------+-----------+
| | | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+-------------------+-------------+--------+---+-------------+------------------------------------+-----------+
| | | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+-------------------+-------------+--------+---+-------------+------------------------------------+-----------+
| 7 | DIVIDENDS | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+-------------------+-------------+--------+---+-------------+------------------------------------+-----------+
| | | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+-------------------+-------------+--------+---+-------------+------------------------------------+-----------+
| | No dividends have been paid or proposed during the six months ended 30 June 2010 or the comparative periods. After 30 June 2010, the directors have |
| | approved an interim dividend of 2.42 pence per share, which has not been accrued as a liability as at 30 June 2010 in accordance with IAS 8. This |
| | dividend will be paid on 13 October 2010 with an ex-dividend date of 15 September 2010 and a record date of 17 September 2010. |
+--------+-----------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+--------+----------+--------+----+--------+-+-+----+--------+----------+-+----------+-+----------+-----------+
+--------+---------------+--------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| 8 | TANGIBLE AND INTANGIBLE | | | Goodwill | | Other | | Property, | | Total |
| | ASSETS | | | | | intangible | | plant and | | |
| | | | | | | assets | | equipment | | |
+--------+---------------------------------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | | | | | | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+--------+---------------+--------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | Six months ended 30 June | | | | | | | | | |
| | 2010 (Unaudited) | | | | | | | | | |
+--------+---------------------------------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | Carrying amount | | | | 16,053 | | 15,726 | | 13,864 | | 45,643 |
| | at 1 January | | | | | | | | | | |
| | 2010 | | | | | | | | | | |
+--------+------------------------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | Additions | | | | | 156 | | 6,863 | | 1,744 | | 8,763 |
+--------+---------------+--------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | Depreciation/ | | | | | - | | (3,191) | | (1,563) | | (4,754) |
| | amortisation | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | Exchange | | | | | 645 | | (18) | | (76) | | 551 |
| | adjustments | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | Carrying amount | | | | 16,854 | | 19,380 | | 13,969 | | 50,203 |
| | at 30 June 2010 | | | | | | | | | | |
+--------+------------------------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | Six months ended 30 June | | | | | | | | | |
| | 2009 (Unaudited) | | | | | | | | | |
+--------+---------------------------------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | Carrying amount | | | | 14,811 | | 9,228 | | 15,643 | | 39,682 |
| | at 1 January | | | | | | | | | | |
| | 2009 | | | | | | | | | | |
+--------+------------------------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | Additions | | | | | - | | 1,577 | | 656 | | 2,233 |
+--------+---------------+--------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | Disposals | | | | | - | | (2) | | (25) | | (27) |
+--------+---------------+--------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | Depreciation/ | | | | | - | | (1,996) | | (1,860) | | (3,856) |
| | amortisation | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | Exchange | | | | | (1,615) | | (13) | | (234) | | (1,862) |
| | adjustments | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | Carrying amount | | | | 13,196 | | 8,794 | | 14,180 | | 36,170 |
| | at 30 June 2009 | | | | | | | | | | |
+--------+------------------------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | Year ended 31 December | | | | | | | | | |
| | 2009 (Audited) | | | | | | | | | |
+--------+---------------------------------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | Carrying amount | | | | 14,811 | | 9,228 | | 15,643 | | 39,682 |
| | at 1 January | | | | | | | | | | |
| | 2009 | | | | | | | | | | |
+--------+------------------------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | Arising on | | | | 2,414 | | 2,383 | | 82 | | 4,879 |
| | acquisition of | | | | | | | | | | |
| | a subsidiary | | | | | | | | | | |
+--------+------------------------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | Additions | | | | | - | | 8,649 | | 2,165 | | 10,814 |
+--------+---------------+--------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | Disposals | | | | | - | | - | | (20) | | (20) |
+--------+---------------+--------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | Depreciation/ | | | | | - | | (4,543) | | (3,837) | | (8,380) |
| | amortisation | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | Exchange | | | | | (1,172) | | 9 | | (169) | | (1,332) |
| | adjustments | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | | | | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
| | Carrying amount at 31 | | | 16,053 | | 15,726 | | 13,864 | | 45,643 |
| | December 2009 | | | | | | | | | |
+--------+---------------+--------+--------+--------+--------+----------+--------+------------+--------+-----------+--------+---------+
+--------+-------------------+------+--------+--------+--+-----+----------+--------+----------+--+--------+---+--------+-+--------+--+--------+----------+-+-+--+---+--------+------+--------+--------+
| 9 | BANK LOANS | | | | | | | | | | | |
+--------+--------------------------+--------+-----------+----------------+--------+--------------------------+--------+---------------------------------+---+------+--------+------------------------+
| | | | | | | | | | | | | |
+--------+--------------------------+--------+-----------+----------------+--------+--------------------------+--------+---------------------------------+---+------+--------+------------------------+
| | The carrying value of the Group's financial liabilities, for short-term borrowings and long-term borrowings, are as follows: |
+--------+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | |
+--------+--------------------------+--------+-----------+----------------+--------+-------------+--------+--------------------------+-----------------------+------+--------+------------------------+
| | | | | | | | | 30 June | | 30 June | | 31 December 2009 |
| | | | | | | | | 2010 | | 2009 | | |
+--------+--------------------------+--------+-----------+----------------+--------+-------------+--------+--------------------------+--------+---------------------+--------+------------------------+
| | | | | | | | | GBP'000 | | GBP'000 | | GBP'000 |
+--------+--------------------------+--------+-----------+----------------+--------+-------------+--------+--------------------------+--------+---------------------+--------+------------------------+
| | | | | | | | | (Unaudited) | | (Unaudited) | | (Audited) |
+--------+--------------------------+--------+-----------+----------------+--------+-------------+--------+--------------------------+--------+---------------------+--------+------------------------+
| | | | | | | | | | | | | |
+--------+--------------------------+--------+-----------+----------------+--------+-------------+--------+--------------------------+--------+---------------------+--------+------------------------+
| | Repayments due within one year | | | | | | - | | 12,929 | | 13,372 |
+--------+-----------------------------------+-----------+----------------+--------+-------------+--------+--------------------------+--------+---------------------+--------+------------------------+
| | Less: unamortised issue | | | | | | | - | | (1,371) | | (1,351) |
| | costs | | | | | | | | | | | |
+--------+--------------------------+--------+-----------+----------------+--------+-------------+--------+--------------------------+--------+---------------------+--------+------------------------+
| | | | | | | | | | | | | |
+--------+--------------------------+--------+-----------+----------------+--------+-------------+--------+--------------------------+--------+---------------------+--------+------------------------+
| | Bank loans due within one year | | | | | | - | | 11,558 | | 12,021 |
+--------+-----------------------------------+-----------+----------------+--------+-------------+--------+--------------------------+--------+---------------------+--------+------------------------+
| | | | | | | | | | | | | |
+--------+--------------------------+--------+-----------+----------------+--------+-------------+--------+--------------------------+--------+---------------------+--------+------------------------+
| | Repayments due outside of one | | | | | | 43,000 | | 96,457 | | 91,311 |
| | year | | | | | | | | | | |
+--------+-----------------------------------+-----------+----------------+--------+-------------+--------+--------------------------+--------+---------------------+--------+------------------------+
| | Less: unamortised issue | | | | | | | (1,056) | | (2,861) | | (2,109) |
| | costs | | | | | | | | | | | |
+--------+--------------------------+--------+-----------+----------------+--------+-------------+--------+--------------------------+--------+---------------------+--------+------------------------+
| | | | | | | | | | | | | |
+--------+--------------------------+--------+-----------+----------------+--------+-------------+--------+--------------------------+--------+---------------------+--------+------------------------+
| | | | | | | | | | | | | |
+--------+--------------------------+--------+-----------+----------------+--------+-------------+--------+--------------------------+--------+---------------------+--------+------------------------+
| | Bank loans due outside of one | | | | | | 41,944 | | 93,596 | | 89,202 |
| | year | | | | | | | | | | |
+--------+-----------------------------------+-----------+----------------+--------+-------------+--------+--------------------------+--------+---------------------+--------+------------------------+
| | Total bank loans | | | | | | | 41,944 | | 105,154 | | 101,223 |
+--------+--------------------------+--------+-----------+----------------+--------+-------------+--------+--------------------------+--------+---------------------+--------+------------------------+
| | | | | | | | | | | | | |
+--------+--------------------------+--------+-----------+----------------+--------+-------------+--------+--------------------------+--------+---------------------+--------+------------------------+
| | On 24 March 2010 the Group repaid its existing bank loans early, using funds including proceeds from its IPO, the exercise of share options and new bank debt taken out during the |
| | period. |
+--------+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | The new bank debt is in the form of a Revolving Credit Facility ("RCF"). The Group is entitled to roll over repayment of amounts drawn down, subject to all amounts outstanding |
| | falling due for repayment on expiry of the facility in March 2013. |
+--------+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | The RCF bears interest at a variable rate of LIBOR plus a variable margin dependant on the net debt to EBITDA ratio of the Group. It is secured by fixed and floating charges on |
| | certain assets of the Group. The financial covenants of the RCF are based on the interest cover and leverage of the Group. The Group has been in compliance with these covenants |
| | since inception of the RCF. |
+--------+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| 10 | SHARE CAPITAL | | | | | | | | | | | |
+--------+-------------------+---------------+--------+--------+------------------------------+--------------------------+--------+------------------------+----+-------------------+--------+--------+
| | The Company was incorporated on 9 February 2010, and issued 500,000 ordinary shares on 11 February 2010 for consideration of GBP13,000. |
+--------+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | |
+--------+-------------------+---------------+--------+--------+------------------------------+--------------------------+--------+------------------------+----+-------------------+--------+--------+
| | On 24 March 2010, as part of the group reconstruction, the Company issued 151,520,832 10p ordinary shares to the shareholders of CPP Group plc in exchange for 100% of the issued |
| | share capital of CPP Group plc, without change to the identity or relative rights of the ultimate shareholders of CPP Group plc. In accordance with the principles of merger |
| | accounting, the Condensed Financial Statements present the Group as if these shares had been issued throughout the current and comparative periods. |
+--------+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | On 24 March 2010 the Company also issued 12,765,957 10p ordinary shares for cash consideration of GBP30,000,000 via the IPO. Costs of the share issue of GBP4,348,000 have been |
| | charged to the Share Premium Account. |
+--------+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | The IPO offering represented a trigger event for vesting of the Group's legacy 2005 and 2008 ESOP arrangements. Consequentally, 5,741,228 10p ordinary shares were issued to option |
| | holders for total consideration of GBP9,482,000 during the period. Further details relating to share options are provided in note 11. |
+--------+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | Net proceeds from issue of ordinary shares in the Cash Flow Statement of GBP34,521,000 represent GBP26,071,000 from the IPO and GBP8,450,000 from the exercise of share options. |
+--------+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
+--------+-------------------+------+--------+--------+--+-----+----------+--------+----------+--+--------+---+--------+-+--------+--+--------+----------+-+-+--+---+--------+------+--------+--------+
+--------+--------------------+-----------------------+--------+--------+--------+--+----------+-------------+--------+--------+-+--------+-----+--+----------+-------------+--------+--------+-+--------+--------+
| 11 | SHARE BASED | | | | | | | | | | | |
| | PAYMENTS | | | | | | | | | | | |
+--------+--------------------+--------------------------------+--------+-----------+------------------------+-------------------+--------+--------+------------------------+-------------------+--------+--------+
| | | | | | | | | | | | | |
+--------+--------------------+--------------------------------+--------+-----------+------------------------+-------------------+--------+--------+------------------------+-------------------+--------+--------+
| | Legacy schemes | | | | | | | | | | | |
+--------+--------------------+--------------------------------+--------+-----------+------------------------+-------------------+--------+--------+------------------------+-------------------+--------+--------+
| | | | | | | | | | | | | |
+--------+--------------------+--------------------------------+--------+-----------+------------------------+-------------------+--------+--------+------------------------+-------------------+--------+--------+
| | Legacy scheme share based payments in the Income Statement of GBP2,199,000 (six months ended 30 June 2009: GBP5,102,000; year ended 31 December 2009: |
| | GBP10,391,000) arise from the Group's 2005 and 2008 ESOP Schemes and share-based loan notes, which had been implemented in previous years to incentivise certain |
| | employees. |
+--------+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | |
+--------+--------------------+--------------------------------+--------+-----------+------------------------+-------------------+--------+--------+------------------------+-------------------+--------+--------+
| | Details of share options outstanding during the period under the legacy schemes are as follows: | | | | |
+--------+-----------------------------------------------------------------------------------------------------------------------------------------+------------------------+-------------------+--------+--------+
| | | | | | | |
+--------+--------------------+--------------------------------+--------+--------+-------------+------------------------------------------------------------------------------------------------------------------+
| | | Six months ended 30 June 2010 | | Six months ended 30 June 2009 | | Year ended 31 December 2009 (Audited) |
| | | (Unaudited) | | (Unaudited) | | |
+--------+--------------------+--------------------------------------------------+-------------+------------------------------------------------+-------------+---------------------------------------------------+
| | | Number | | Weighted | | Number of | | Weighted | | Number of | | Weighted average |
| | | of share | | average | | share | | average | | share | | exercise price |
| | | options | | exercise price | | options | | exercise price | | options | | (GBP) |
| | | (thousands) | | (GBP) | | (thousands) | | (GBP) | | (thousands) | | |
+--------+--------------------+-----------------------+--------+-----------------+-------------+----------------------+--------+----------------+-------------+----------------------+--------+-------------------+
| | 2005 ESOP Scheme* | | | | | | | | | | | |
+--------+--------------------+-----------------------+--------+-----------------+-------------+----------------------+--------+----------------+-------------+----------------------+--------+-------------------+
| | Outstanding at | 6,561 | | 1.88 | | 7,465 | | 0.82 | | 7,465 | | 0.82 |
| | start of period | | | | | | | | | | | |
+--------+--------------------+-----------------------+--------+-----------------+-------------+----------------------+--------+----------------+-------------+----------------------+--------+-------------------+
| | Granted during the | | | - | | | | | | 4,763 | | 2.28 |
| | period | - | | | | - | | - | | | | |
+--------+--------------------+-----------------------+--------+-----------------+-------------+----------------------+--------+----------------+-------------+----------------------+--------+-------------------+
| | Forfeited during | (55) | | 0.82 | | (904) | | 0.82 | | (904) | | 0.82 |
| | the period | | | | | | | | | | | |
+--------+--------------------+-----------------------+--------+-----------------+-------------+----------------------+--------+----------------+-------------+----------------------+--------+-------------------+
| | Exercised during | (2,821) | | 1.87 | | | | | | (4,763) | | 0.82 |
| | the period | | | | | - | | - | | | | |
+--------+--------------------+-----------------------+--------+-----------------+-------------+----------------------+--------+----------------+-------------+----------------------+--------+-------------------+
| | | | | | | | | | | | | |
+--------+--------------------+-----------------------+--------+-----------------+-------------+----------------------+--------+----------------+-------------+----------------------+--------+-------------------+
| | Outstanding at end | 3,685 | | 1.92 | | 6,561 | | 0.82 | | 6,561 | | 1.88 |
| | of period | | | | | | | | | | | |
+--------+--------------------+-----------------------+--------+-----------------+-------------+----------------------+--------+----------------+-------------+----------------------+--------+-------------------+
| | | | | | | | | | | | | |
+--------+--------------------+-----------------------+--------+-----------------+-------------+----------------------+--------+----------------+-------------+----------------------+--------+-------------------+
| | | | | | | | | | | | | |
+--------+--------------------+-----------------------+--------+-----------------+-------------+----------------------+--------+----------------+-------------+----------------------+--------+-------------------+
| | 2008 ESOP Scheme* | | | | | | | | | | | |
+--------+--------------------+-----------------------+--------+-----------------+-------------+----------------------+--------+----------------+-------------+----------------------+--------+-------------------+
| | Outstanding at | 7,388 | | 1.66 | | 6,336 | | 1.79 | | 6,336 | | 1.79 |
| | start of period | | | | | | | | | | | |
+--------+--------------------+-----------------------+--------+-----------------+-------------+----------------------+--------+----------------+-------------+----------------------+--------+-------------------+
| | Granted during the | 168 | | 1.80 | | 1,300 | | 1.02 | | 1,300 | | 1.02 |
| | period | | | | | | | | | | | |
+--------+--------------------+-----------------------+--------+-----------------+-------------+----------------------+--------+----------------+-------------+----------------------+--------+-------------------+
| | Forfeited during | | | - | | (248) | | 1.79 | | (248) | | 1.79 |
| | the period | - | | | | | | | | | | |
+--------+--------------------+-----------------------+--------+-----------------+-------------+----------------------+--------+----------------+-------------+----------------------+--------+-------------------+
| | Exercised during | (2,920) | | 1.45 | | | | | | | | - |
| | the period | | | | | - | | - | | - | | |
+--------+--------------------+-----------------------+--------+-----------------+-------------+----------------------+--------+----------------+-------------+----------------------+--------+-------------------+
| | | | | | | | | | | | | |
+--------+--------------------+-----------------------+--------+-----------------+-------------+----------------------+--------+----------------+-------------+----------------------+--------+-------------------+
| | Outstanding at end | 4,636 | | 1.80 | | 7,388 | | 1.66 | | 7,388 | | 1.66 |
| | of period | | | | | | | | | | | |
+--------+--------------------+-----------------------+--------+-----------------+-------------+----------------------+--------+----------------+-------------+----------------------+--------+-------------------+
| | | | | | | | | | | | | |
+--------+--------------------+-----------------------+--------+-----------------+-------------+----------------------+--------+----------------+-------------+----------------------+--------+-------------------+
| | | | | | | | | | | | | |
+--------+--------------------+-----------------------+--------+-----------------+-------------+----------------------+--------+----------------+-------------+----------------------+--------+-------------------+
| | * As part of the Group reconstruction, each option over 1 share of CPP Group plc was rolled over into an option over 16 shares in the Company, with equivalent |
| | terms to the option it replaced. Option numbers and prices in the table above have been restated to reflect the rolled over amounts. |
+--------+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | |
+--------+--------------------+--------------------------------+--------+-----------+------------------------+-------------------+--------+--------+------------------------+-------------------+--------+--------+
| | The Initial Public Offering during the period represented a trigger event for vesting of options in the 2005 and 2008 Schemes. Consequently 50% of the options |
| | outstanding at the time of the IPO vested immediately. Some vested options have been exercised by employees during the period. The remaining options under these |
| | schemes vest in 2011 and 2012, subject to option holders remaining in employment of the Group. |
+--------+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | | | | | | | | | | |
+--------+--------------------+-----------------------+--------+--------+--------+--+----------+-------------+--------+--------+-+--------+-----+--+----------+-------------+--------+--------+-+--------+--------+
+--------+-------------+--------+--------+--------+--------+--------------------+--------+------------------------+--------+--------+
| | Post | | | | | | | | |
| | IPO | | | | | | | | |
| | plans | | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------------------+--------+------------------------+-----------------+
| | | | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------------------+--------+------------------------+-----------------+
| | Other Administrative Expenses include GBP295,000 of charges (Six | |
| | months ended 30 June 2009: GBPnil; Year ended 31 December 2009: | |
| | GBPnil) arising from the Long Term Incentive Plan ("LTIP") and the | |
| | Restricted Stock Plan ("RSP"). | |
+--------+--------------------------------------------------------------------------------------------------------+-----------------+
| | | | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------------------+--------+------------------------+-----------------+
| | Details of share options | | | | | |
| | outstanding during the period | | | | | |
| | under the these plans are as | | | | | |
| | follows: | | | | | |
+--------+----------------------------------------+--------+--------------------+--------+------------------------+-----------------+
| | | | | LTIP | | RSP | |
+--------+-------------+--------------------------+--------+--------------------+--------+------------------------+-----------------+
| | | | | | | Number | | Number | |
| | | | | | | of | | of | |
| | | | | | | share | | share | |
| | | | | | | options | | options | |
| | | | | | | (thousands) | | (thousands) | |
+--------+-------------+--------+--------+--------+--------+--------------------+--------+------------------------+-----------------+
| | Six months | | | | | | | |
| | ended 30 June | | | | | | | |
| | 2010 | | | | | | | |
| | (unaudited) | | | | | | | |
+--------+----------------------+--------+--------+--------+--------------------+--------+------------------------+-----------------+
| | Outstanding | | | | | | | | |
| | at start of | | | | | - | | - | |
| | period | | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------------------+--------+------------------------+-----------------+
| | Granted | | | | | 1,323 | | 146 | |
| | during | | | | | | | | |
| | the | | | | | | | | |
| | period | | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------------------+--------+------------------------+-----------------+
| | Forfeited | | | | | | | (6) | |
| | during | | | | | - | | | |
| | the | | | | | | | | |
| | period | | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------------------+--------+------------------------+-----------------+
| | | | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------------------+--------+------------------------+-----------------+
| | Outstanding | | | | | 1,323 | | 140 | |
| | at end of | | | | | | | | |
| | period | | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------------------+--------+------------------------+-----------------+
| | | | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------------------+--------+------------------------+-----------------+
| | | | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------------------+--------+------------------------+-----------------+
| | Nil-cost options granted during the period under the LTIP vest after | |
| | three years, lapse if not exercised within ten years of grant and may | |
| | lapse if option holders cease to be employed by the Group. Vesting of | |
| | LTIP options is also subject to achievement of performance criteria | |
| | including Earnings per Share growth and Total Shareholder Return over | |
| | a three year period. | |
+--------+--------------------------------------------------------------------------------------------------------+-----------------+
| | | | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------------------+--------+------------------------+-----------------+
| | Nil-cost options granted during the period under the RSP become | |
| | unrestricted after three years but may be withheld if holders cease | |
| | to be employed by the Group before the shares become unrestricted. | |
+--------+--------------------------------------------------------------------------------------------------------+-----------------+
| | | | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------------------+--------+------------------------+-----------------+
| | The principal assumptions underlying the valuation of the LTIP and RSP options at the |
| | date of grant are as follows: |
+--------+--------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------------------+--------+------------------------+--------+--------+
| | | | | | | LTIP | | RSP | | |
+--------+-------------+--------+--------+--------+--------+--------------------+--------+------------------------+--------+--------+
| | | | | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------------------+--------+------------------------+--------+--------+
| | Weighted | | | | | GBP2.62 | | GBP2.62 | | |
| | average | | | | | | | | | |
| | share | | | | | | | | | |
| | price | | | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------------------+--------+------------------------+--------+--------+
| | Weighted | | | | | GBPnil | | GBPnil | | |
| | average | | | | | | | | | |
| | exercise | | | | | | | | | |
| | price | | | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------------------+--------+------------------------+--------+--------+
| | Expected | | | | | 33.67% | | 33.67% | | |
| | volatility | | | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------------------+--------+------------------------+--------+--------+
| | Expected | | | | | 3 | | 3 | | |
| | life | | | | | years | | years | | |
+--------+-------------+--------+--------+--------+--------+--------------------+--------+------------------------+--------+--------+
| | Risk | | | | | 1.94% | | 1.94% | | |
| | free | | | | | | | | | |
| | rate | | | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------------------+--------+------------------------+--------+--------+
| | | | | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------------------+--------+------------------------+--------+--------+
| | | | | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------------------+--------+------------------------+--------+--------+
| | The aggregate estimated fair value of the options and shares granted | | |
| | under the LTIP and RSP is GBP3,538,000. | | |
+--------+-------------+--------+--------+--------+--------+--------------------+--------+------------------------+--------+--------+
+--------+--------+--------+--------+--------+--------+------------------------+--------+-------------------------+--------+------------------------+
| 12 | RELATED PARTY TRANSACTIONS | | | | | | |
+--------+-----------------------------------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | | | | | | | | | | |
+--------+--------+--------+--------+--------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | The following material related party transactions have been entered into during the |
| | period. |
+--------+------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | |
+--------+--------+--------+--------+--------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | Transactions with associated | | | | | | |
| | undertakings | | | | | | |
+--------+-----------------------------------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | | | | | | | | | | |
+--------+--------+--------+--------+--------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | Transactions between the Group and its joint venture represent related party |
| | transactions. |
+--------+------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | |
+--------+--------+--------+--------+--------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | The Group has undertaken the following transactions with its joint | | |
| | venture entity, Home 3 Assistance Limited: | | |
+--------+--------------------------------------------------------------------------------------------------------+--------+------------------------+
| | | | | | | | | | | |
+--------+--------+--------+--------+--------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | | | | | | 6 | | 6 | | Year |
| | | | | | | months | | months | | ended |
| | | | | | | ended | | ended | | 31 |
| | | | | | | 30 | | 30 | | December |
| | | | | | | June | | June | | 2009 |
| | | | | | | 2010 | | 2009 | | |
+--------+--------+--------+--------+--------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | | | | | | GBP'000 | | GBP'000 | | GBP'000 |
+--------+--------+--------+--------+--------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | | | | | | (Unaudited) | | (Unaudited) | | (Audited) |
+--------+--------+--------+--------+--------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | | | | | | | | | | |
+--------+--------+--------+--------+--------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | Costs rechargeable to Home 3 | | 107 | | 222 | | 364 |
| | incurred by the Group | | | | | | |
+--------+-----------------------------------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | Balance receivable from Home 3 | | 184 | | 125 | | 215 |
+--------+-----------------------------------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | | | | | | | | | | |
+--------+--------+--------+--------+--------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | | | | | | | | | | |
+--------+--------+--------+--------+--------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | Remuneration of key management | | | | | | |
| | personnel | | | | | | |
+--------+-----------------------------------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | | | | | | | | | | |
+--------+--------+--------+--------+--------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | The remuneration of the Directors and Senior Management Team, who are the key |
| | management personnel of the Group, is set out below: |
+--------+------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | 6 | | 6 | | Year |
| | | | | | | months | | months | | ended |
| | | | | | | ended | | ended | | 31 |
| | | | | | | 30 | | 30 | | December |
| | | | | | | June | | June | | 2009 |
| | | | | | | 2010 | | 2009 | | |
+--------+--------+--------+--------+--------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | | | | | | GBP'000 | | GBP'000 | | GBP'000 |
+--------+--------+--------+--------+--------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | | | | | | (Unaudited) | | (Unaudited) | | (Audited) |
+--------+--------+--------+--------+--------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | | | | | | | | | | |
+--------+--------+--------+--------+--------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | Short term employee benefits | | 1,916 | | 2,094 | | 4,021 |
+--------+-----------------------------------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | Post employment benefits | | 106 | | 98 | | 190 |
+--------+-----------------------------------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | Termination benefits | | | 242 | | 178 | | 178 |
+--------+--------------------------+--------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | Share-based payments | | 1,632 | | 3,453 | | 6,764 |
+--------+-----------------------------------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | | | | | | | | | | |
+--------+--------+--------+--------+--------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | | | | | | 3,896 | | 5,823 | | 11,153 |
+--------+--------+--------+--------+--------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | | | | | | | | | | |
+--------+--------+--------+--------+--------+--------+------------------------+--------+-------------------------+--------+------------------------+
| | | | | | | | | | | |
+--------+--------+--------+--------+--------+--------+------------------------+--------+-------------------------+--------+------------------------+
Directors' responsibilities statement
We confirm that to the best of our knowledge:
a) The Condensed Financial Statements have been prepared in accordance with
IAS 34 "Interim Financial Reporting"
b) The Chief Executive Officer's Report and Operating and Financial Report
together include a fair review of the information required by DTR 4.2.7R
(indication of important events during the first six months and description of
principal risks and uncertainties for the remaining six months of the year); and
c) The Operating and Financial Report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related parties' transactions
and changes therein).
By order of the Board
Eric Woolley
Shaun Parker
Chief Executive Officer
Chief Financial Officer
25 August 2010
Cautionary statement
This Half Year Report has been prepared solely to provide additional information
to shareholders as a body to meet the relevant requirements of the UK Listing
Authority's Disclosure and Transparency Rules. The Half Year Report should not
be relied on by any other party or for any other purpose.
The Half Year Report contains certain forward-looking statements. These
statements are made by the directors in good faith based on the information
available to them up to the time of approval of the Half Year Report but such
statements should be treated with caution due to the inherent uncertainties,
including both economic and business risk factors, underlying any such
forward-looking information. Subject to the requirements of UK Listing
Authority's Disclosure and Transparency Rules and Listing Rules, CPP undertakes
no obligation to update these forward-looking statements and it will not
publicly release any revisions it may make to these forward-looking statements
that may result from events or circumstances arising after the date of this Half
Year Report.
Independent Review Report to CPPGroup plc
We have been engaged by the Company to review the Condensed Financial Statements
in the
Half -Yearly Report for the six months ended 30 June 2010 which comprises the
Consolidated Income Statement, the Consolidated Statement of Comprehensive
Income, the Consolidated Balance Sheet, the Consolidated Statement of Changes in
Equity, the Consolidated Cash Flow Statement and related notes 1 to 12. We have
read the other information contained in the Half Yearly Report and considered
whether it contains any apparent misstatements or material inconsistencies with
the information in the Condensed Financial Statements.
This report is made solely to the company in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim
Financial Information Performed by the Independent Auditor of the Entity" issued
by the Auditing Practices Board. Our work has been undertaken so that we might
state to the Company those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the Company, for our review work, for this report, or for the conclusions we
have formed.
Directors' responsibilities
The Half Year Reportis the responsibility of, and has been approved by, the
directors. The directors are responsible for preparing the Half Year Report in
accordance with the Disclosure and Transparency Rules of the United Kingdom's
Financial Services Authority.
As disclosed in note 2, the annual financial statements of the Group are
prepared in accordance with IFRS as adopted by the European Union. The
Condensed Financial Statements included in this Half Year Reporthave been
prepared in accordance with International Accounting Standard 34, "Interim
Financial Reporting," as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the Condensed
Financial Statements in the Half Year Reportbased on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the Condensed Financial Statements in the Half Year Report for the six
months ended 30 June 2010 are not prepared, in all material respects, in
accordance with International Accounting Standard 34 as adopted by the European
Union and the Disclosure and Transparency Rules of the United Kingdom's
Financial Services Authority.
Deloitte LLP
Chartered Accountants and Statutory Auditors
Leeds, United Kingdom
25 August 2010
Corporate Information
Enquiries
For enquiries contact:
Eric Woolley, Group Chief Executive
Shaun Parker, Chief Financial Officer
Tel: +44 (0)1904 544702
Tulchan Communications
John Sunnucks
David Allchurch
Tel. +44 (0)20 7353 4200
Registered office
CPPGroup plc
Holgate Park
York
YO26 4GA
Registered number: 07151159
Share price information
The Company's share price can be found on the Company's website at
www.cppgroupplc.com.
Auditors
Deloitte LLP
1 City Square
Leeds
LS1 2AL
Financial Calendar
Interim ex-dividend date 15 September 2010
Interim dividend record date 17 September 2010
Interim dividend payment 13 October 2010
This information is provided by RNS
The company news service from the London Stock Exchange
END
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