RNS Number:5193K
Auto Indemnity Group PLC
29 April 2003
Auto Indemnity Group PLC
Preliminary Announcement - Year Ended 29 December 2002
Chairman's Statement
Introduction
The year ending 29 December 2002, has been a year of significant achievement for
Auto Indemnity. In financial terms, we are announcing record post tax profits,
record cash collection and your Directors have recommended the payment of a
0.25p final dividend, putting the Company on the dividend list for the first
time in its history. All of this has been accomplished against the background of
completing our transformation from credit hire company to claims management
outsourcer to the motor insurance industry, where our future lies.
Operationally, we have formed a strong board of Directors to take the Group
forward and in April 2002, we brought the small remaining part of the UK
territory not already under our direct control, by acquiring our last franchisee
Auto Indemnity (Central) Ltd.
Results Overview
The detailed planning and hard work over the last two years are now visible in a
highly satisfactory second half. Turnover rose strongly and the second half
delivered operating profits before goodwill amortisation of #719,000 against a
loss of #77,000 in the first half of 2002.
The year on year position shows a less marked improvement due to the
disappointing first half, upon which I commented at the half year stage.
Turnover rose from #10.4m to #14.8m (up 42%) and operating profits before
goodwill amortisation rose from #612,000 to #642,000. Basic earnings per share
rose from 0.68p to 1.30p, although it should be noted, that the post tax profits
for 2002 were flattered by a credit on deferred tax of #451,000 which arose
under the new FRS 19 'Deferred Tax' accounting standard.
We ended the year with an excellent balance sheet showing net cash balances of
#1,082,000.
The report and accounts this year reflect the greater management depth by
including not only the Chief Executive's Report but the Finance Director's
Report as well, to assist shareholders with a full appreciation of the results
and prospects of the business.
The Board
The year 2002 saw major changes to your Group's main board of Directors. At the
beginning of 2002 we were delighted to promote David Sandhu to the Board, as
Director of Claims; he has since taken on additional responsibility for
Operations. In August we were very pleased that Geoff Orme agreed to join the
Board as Finance Director. In October we were joined by Chris Baker as our
senior independent non-executive Director, thus completing the reshaping of the
Board for the future.
Hugh Williams, whose family businesses are located in Cardiff, had for some time
indicated that he would like to step aside from his role as independent
non-executive Director. He had served on our Board since 1994 and we offer our
warm thanks for his service to the Company for a long time when he saw it
through some difficult periods. I reported at the half year that both Paul
Craddock (formerly Finance Director) and Chris Ashworth (formerly Commercial
Director) left by mutual agreement to pursue other opportunities.
As you already know we also appointed Stephen Foale (FCCA) as Company Secretary
during the year.
I am also pleased to record that our Chief Executive, Adrian Palmer, was
appointed Chairman of the Accident Management Association (AMA). This body
represents and negotiates the interests of its members with other parties in the
wider Motor Insurance industry. Auto Indemnity, under the guidance of Adrian is
the acknowledged leader of successful change and this appointment is a very
tangible recognition that the membership wishes to follow the lead that Auto
Indemnity has set.
Current Trading
The year under review marks the end of the transition away from the old style
Credit Hire business, and should also represent the peak, in relative terms, of
the cost of investment in new systems and the deepening of senior and middle
management team to take the business forward in its new form. We have started
the new year well and we can look forward to a further significant increase in
volumes as we expand our business with insurers and motoring organisations.
The Future
We shall continue to pursue our major objective of becoming the claims
management outsourcer of choice for the motor insurance markets, by building on
our reputation for efficiency, openness and integrity. All the early signs are
that our policy is paying off, that our services are required and that we can
supply the market with what it needs.
In accordance with current practice and our strong cash flow position, your
Directors will be placing before shareholders a resolution authorising your
Board, pursuant to Section 163(3) of the Companies Act 1985 to make market
purchases of up to 3,053,434 Ordinary Shares (5% of the existing issued Ordinary
Share Capital) at the AGM to be held on 28 July 2003.
It is a great credit to the whole Auto Indemnity team that this transformation
has now been achieved and the first fruits of our labours can be seen in our
results. On behalf of shareholders and the Board, I extend our warm thanks to
all staff at every level, each one of whom has had a part to play in the
creation of a viable and promising future for the Group.
Charles Good
Chairman
28 April 2003
Chief Executive's Report
Overview
As you will see from this report, 2002 was a year "of two halves". The first
half was marked by the Company finally absorbing the costs of transition from a
franchised business to a professional centrally managed business based in AI's
new Call Centre. This process identified the need for significant investments in
information technology, recruitment (ahead of growth) and strengthening
financial controls.
Whilst all this investment was happening we were pushing for growth and I am
pleased to report that we are now actively receiving referrals from six
insurance companies. With some of these insurers we have been in pilot stage as
we trialled a wider range of revenue sources from our traditional car
replacement service into a broader claims management service. These pilot
schemes include the provision of debt recovery services, repairs management, the
provision of courtesy cars and the management of personal injury claims. At the
same time as growing the number of cases handled, we have also made considerable
improvements in the rate at which we receive payment for our services from the
insurance market. By the half year we were receiving settlement of 95% of our
invoices within 6 months. The equivalent figure for the same period in 2001 was
55%. This improved performance continues and is reflected in the strong cash
position of the business. Additionally the improvement in the Claims Team effort
was reflected in the overall percentage recovery from completed work. We
achieved an AI Group record recovery of 95% of open cases by the year end; this
was 4 percentage points up on the previous year. We continue to improve on this
performance. These high levels, which are unique in our industry, are both a
testimony to the efficiency of the Claims Team and also demonstrate the
considerable ability of the First Response Team in Operations to apply stringent
but ethically fair criteria during the initial stages of converting a referral
lead into a claims management case. These principles are at the core of our
success and the record figures show that we are not sacrificing quality as we
reach for the significant growth targets we have set ourselves.
The above factors have shown through in the stronger financial performance that
materialised in the second half of 2002. The first 3 months of 2003 have shown
that the trends continue upwards. We are, as I write this summary, serving over
6,000 clients per month, who are being provided with replacement vehicles,
courtesy cars, repair management and personal injury services. Your Group has
now completed its transition from the traditional Credit Hire company to a true
Outsourcing Management company providing a significant range of services.
Trading
At the heart of AI's business model are the levels of referrals that we receive
from insurance companies. These referrals provide contact details of "potential
no fault motor accident claimants" and it is to these people we offer an
independent claims management service.
On a daily basis we monitor our ability to convert these referrals into
customers for our services and also our capacity to secure timely payment for
these services from the 3rd Party insurance companies.
I am delighted to report that the levels of insurer related referrals were at an
all time high in 2002. They were up on 2001 by 31% at 68,000. This confirms our
strategic initiative to take the Industry along a path of co-operation not
confrontation with the insurers. Our ability to convert these referrals into
business was held level on the high rates we delivered in 2001. Our ability to
maintain these conversion rates stops "leakage of claimants to cynical high cost
service providers" and promotes ethical cost containment, which is in the
overall interest of all contributors to the motor insurance market. As a result
of increased referrals, the running rate of weekly hires achieved during the
second half of 2002 was also up 31% over the same period in 2001. These rates
show no sign of diminishing and as I write this report, the rate continues to
grow and we are on target to achieve further growth in the first half of 2003.
Likewise our ability to secure payment for the services has improved. We have
negotiated bordereau payment terms, which guarantee month end payments with 2
major insurers (and are in advanced negotiations with 4 others). This is in
recognition of our open and ethical approach and much reduced cost model. Such
payment relationships will continue to grow as more insurers fully comprehend
AI's determination to support an ethical cost containment process at least as
rigorous as the insurers' own approach. This is evidenced by the efficiencies
mentioned above and rising levels of cash in the balance sheet.
The increasing levels of new business and the speeding up of payment to
commercially acceptable levels will continue to translate into growth in profits
and shareholder value.
2002 also provided AI with the opportunity to trial new products in the claims
management process. During the year we were able to develop convincing numerical
evidence, with a major top ten insurer, of AI's ability to provide a cost
effective, ethical and claimant responsible repair management and personal
injury claims service. This type of business contributes to the overall margin
earned from a referral, as well as being extremely cost effective to the
insurance industry. During 2003 we shall be very actively promoting our services
in these areas.
Strategy
Towards the end of 2002 the management reviewed the overall company strategy to
take full account of a number of changes that have occurred in the legal
framework of our industry, competitor responses and the substantial benefits AI
has secured in terms of working relationships with insurers. We are ever more
dedicated to become the leading independent outsource supplier of claims
management services in the UK.
We therefore predict that in the medium to long term our call centre capacity
will become totally dedicated to following up referrals supplied by our insurer
claims management partners. The actual time that this takes is of course related
to the speed at which individual insurers commit more of their referrals to AI.
We have authoritative evidence that our service is in the financial interest of
insurers, claimants and therefore the industry at large. This will be at the
heart of our marketing effort to insurers in 2003 as we seek to win their
referrals.
Relationships with Claimants
The level of service, which AI provides to claimants referred to us, is of great
importance to the management team. The fact that we have grown at such a rapid
rate is proof of the quality of service we deliver.
Success in this area is almost totally dependent on the qualities of the people
we employ, so in 2002 we have continued to make considerable investment in the
human resources aspect of our business. We now have a dedicated Learning Centre,
fully resourced Induction and Training team, formal appraisal procedures and a
management development programme.
At the heart of our operation is a Call Centre - where staff turnover ran at
around 19%, which is lower than the national average for call centres, which is
in excess of 24%. However we are not satisfied with this figure, as it is
measure of cost wastage. We therefore have developed an active and progressive
initiative to reduce this figure and retain and develop our people in line with
the changing growth needs of the market.
Insurer Relations
AI took the lead in initiating the necessary change in commercial relationships
with the Insurance Industry, moving from a confrontational to a co-operative
basis. We alone are taking the lead in being consistent with the spirit of
co-operation in that we only accept referrals from insurers and legitimate
motorist service organisations. In this way we have removed the need to pay
expensive referral commissions to organisations that in the long run do not have
the claimant's interests as their primary focus. The insurers are beginning to
accept that AI is a uniquely ethical organisation in the market, which is
committed to keeping insurance premiums at acceptable levels, whilst delivering
a first class claims service to the unfortunate accident victim. In short we are
committed to the same vision as our insurer partners, which is that an audited
and ethical approach to a claimant's needs is the most effective way of
containing spiralling and unwarranted charges to the industry as a whole. In the
end our efforts help everyone by ensuring that policy costs are reasonably and
ethically contained for the benefit of all insured motorists.
The Management Team
I spend a substantial amount of my time ensuring that the leadership and drive
of the management team is maintained and developed.
I am pleased to report that during the year we have seen a further strengthening
of the senior management.
Our new Finance Director, Geoff Orme has brought considerable insight and
improvements into the financial reporting and planning capabilities of the
business.
In the Operations area David Sandhu, Director of Claims, has taken on additional
responsibilities. He is having a material effect on the productivity and cost
efficiency of converting referrals into the appropriate revenue stream. David's
influence has had a tremendous effect on the Group's insurer relationships
resulting in new business opportunities and improved cash collection.
As part of our strategic view we have initiated programmes to strengthen the
Commercial and Procurement functions of the business. These initiatives are well
underway and I can report that Commercial have active proposals for new business
with eight major insurers. Procurement is in the final stages of a comprehensive
tender process, which has been directed at increasing the number of suppliers of
car rental to allow AI to fully benefit from the economies of scale that our
large and growing volume now affords.
The Future
As we have remarked in previous reports the potential market for our services is
huge and undeveloped. The Association of British Insurers (ABI) reported that in
2001 there were 1.7 million no fault accident cases. In 2002 we served well over
2% of that opportunity. As the insurers understand the cost effectiveness of the
AI approach we will see the business grow significantly.
We have detailed plans to accommodate our growth including the potential
acquisition of another office building in Blackpool.
Your Company, which is the leader in establishing the market through
co-operation with insurers, has uniquely placed itself to benefit from this
initiative. We intend to pursue growth aggressively to increase our lead over
our competitors as the means of increasing shareholder value.
Adrian Palmer
Chief Executive
28 April 2003
Finance Director's Report
Summary of Results
In my first report to shareholders I will review the financial aspects of our
trading for the year 2002. I will also take the opportunity to underline some
important elements of prudence and sound financial management that are one of
the cornerstones of AI's professional approach.
The Chief Executive's Report referred to the fact that 2002 was a year of two
halves. An analysis of the two half year trading statements is set out below:
Six months to Six months to Year to
30 June 29 December 29 December
2002 2002 2002
Unaudited Unaudited Audited
#'000 #'000 #'000
Turnover 5,845 8,907 14,752
Cost of sales (3,819) (6,034) (9,853)
Gross profit 2,026 2,873 4,899
34.7% 32.3% 33.2%
Administrative expenses (2,245) (2,320) (4,565)
Group operating (loss)/profit
Before amortisation of goodwill (77) 719 642
Amortisation of goodwill (142) (166) (308)
Group operating (loss)/profit (219) 553 334
Turnover at #8,907,000 in the second half of 2002 was up a robust 52% on the
first half of the year, reflecting further volume growth in the core car hire
related business. I would also draw your attention to the fact that for the
first time this turnover growth also includes a contribution from the
development of a managed vehicle repair business revenue stream. The #1,051,000
repair business income was mostly undertaken during the second half of the year.
The change in business mix has affected margins with 32.3% being achieved in the
second half of 2002 against 34.7% for the first half.
In total, administrative expenses in the second half of the year at #2,320,000
were only 3.3% greater than those incurred in the first half. This demonstrates
that we are now beginning to see the economies of scale and benefits from
investing in call centre staff resources necessary to handle the current and
planned growth in volumes, coupled with our administrative functions being
brought fully up to speed with the volume increases in the second half of the
year
The Group operating profit before goodwill amortisation at #719,000 in the
second half of the year represents an 8.1% return on turnover for the period and
is a significant improvement over the first half loss of #77,000. Goodwill
amortisation of #308,000 for the year now includes the cost of amortising the
purchased goodwill arising out of the acquisition of Auto Indemnity (Central)
Limited during April 2002.
Interest
Declining deposit interest rates and the impact of funding the AI (Central)
acquisition from our cash resources did result in interest income at #21,000
being down on 2001. Interest payable of #14,000 relates to interest on
instalment credit arrangements put in place to spread the cost of meeting the
motor insurance premiums payable over ten months, sundry hire purchase
obligations and historic occasional bank overdraft usage.
Taxation
As in 2001, the Group has no liability to corporation tax this year.
Considerable progress has been made in the year in resolving historic tax
matters with the Inland Revenue. Note 2 below sets out the quantum of losses
available for carry forward at 29 December 2002.
The Group's requirement to comply with Financial Reporting Standard 19 on
deferred tax was signposted in our 2001 statutory accounts. Because of the
availability of tax losses we are able to provide for a tax credit of #451,000.
This reflects the benefit of available losses, which we expect to be utilised in
2003. The resultant tax asset is included in debtors.
Profits and dividends
The Chairman has drawn attention to the fact that your Board is recommending the
payment of a dividend of 0.25 pence per share. This amounts to #153,000 and
represents dividend cover on after tax profits of over five times.
Earnings per share calculated on profits after tax attributable to shareholders
were 1.30 pence compared with 0.68 pence in 2001.
Acquisition
On 25 April 2002, the Group acquired the last remaining franchise company, Auto
Indemnity (Central) Limited for a purchase consideration of #1,067,000 satisfied
by cash of #767,000 and the issue of 805,370 10p Ordinary Shares. #246,000 of
this cash payment was deferred over ten months. Goodwill of #1,385,000 arose out
of the transaction. AI (Central) transferred its trade and operations to Auto
Indemnity (UK) Limited, a fellow Group subsidiary, at that date and all
commission obligations due by the Group to the vendors were satisfied at that
time.
Former franchisee companies
Former franchisee companies were acquired by the Group in December 1999 and
effectively ceased trading at that time. Their financial and taxation affairs
are now long since settled and there is no future planned use for these
companies. We have applied to the Registrar of Companies under Section 652A of
the Companies Act 1985 to have these companies struck off as defunct and this
process is presently underway. I expect the legal formalities to be completed
within the next few months when they will be written out of the books.
As a result the Group structure will be considerably simplified and compliance
costs will be reduced going forward.
Balance sheet
Our main assets are goodwill arising on consolidation, debtors and cash.
We have reviewed again the carrying value of goodwill by undertaking an
impairment review, and remain satisfied that it is fairly stated in the balance
sheet. Our policy of amortising this asset over twenty years still remains
appropriate.
Debtor management is key to achieving strong cash inflows and I am pleased to
report that debtor recoveries continue to improve. Our average debtor days
outstanding have reduced by 20% during the year. We continue to work closely
with our insurer customers and I expect further improvements for the current
year. Our provisioning policy, which remains unchanged from that in force at the
2002 half year, continues to be in line with our cash recovery performance and
is appropriate for our current experiences. Your Board remain satisfied that
this policy is prudent and that the level of provision is adequate for our
present needs.
Our liabilities mainly reflect amounts owing to our suppliers, the largest being
our replacement hire vehicle providers. These liabilities have increased in line
with our growth, and we continue to take a responsible attitude in our dealings
with suppliers, especially meeting supplier payment dates.
Our liquidity and working capital position are healthy at the present time and I
expect this to remain the case into 2003.
Cash flow and bank balances
I am pleased to report that in 2002 we enjoyed net cash inflows from trading
activities totalling #1,517,000 compared with a net cash outflow in 2001 of
#1,913,000. As a result of our strong cash flows, we were able to substantially
fund the acquisition of AI (Central) from our own resources, supplemented by
#300,000 of additional shareholders' funds.
Consequently, bank balances at the year end were at nearly #1.1 million and,
together with our recently obtained overdraft facility from our bankers of #2.5
million, we are comfortably placed to meet our planned future capital spending
and our trading needs for the foreseeable future.
Capital structure and treasury policy
The Report of the Directors in the statutory accounts sets out our policy on
financial instruments, including derivatives.
Funding for our operations continues to be provided from our existing capital
base, supplemented by our own cash resources and a working capital facility.
Cash balances are currently deposited with our bankers on short-term deposit
attracting interest income, which is at a rate of 0.2% below bank base rate.
During 2003 we have a requirement for an additional building to accommodate our
planned growth in staff numbers. Subject to your Board's review of the final
project and costs (up to #1.8 million) we expect to proceed with this purchase,
funded by a mortgage from our bankers with the balance from our own cash
resources.
Change of year end
Your Board has decided to change the year end to 30 June as permitted under
Section 225 of the Companies Act 1985. Given our change in internal reporting
(as detailed in the Accounting Policies in the statutory accounts) this will
effectively be the last Sunday in June. It is intended that the first affected
period will be 2003 when the financial statements will be drawn up for the
period 30 December 2002 to 27 June 2004. We plan to produce two sets of interim
accounts during this period covering the six months to 29 June 2003 and the
twelve months to 28 December 2003 respectively.
Other changes of note
I joined your Board on 8 August last year. Since that time I have worked closely
with my fellow Directors and the Senior Management team to implement numerous
changes and improvements in procedures and systems. I am fortunate to be
supported by Simon Trippier, the Financial Controller, and his Finance Team who
have worked diligently and consistently to help effect the necessary
improvements. This is a continuous programme designed to ensure we operate in
the most cost effective manner and to improve our efficiencies. Further work is
currently in hand to fine tune our operational systems so that they more closely
integrate with our financial systems and generate more meaningful management
information on a real time basis. This will involve an investment in time and IT
systems during 2003.
I am pleased with the progress we have made and I am satisfied that the Finance
Team we have in place is fully up to meeting the challenges ahead.
Finally, I would like to thank my colleagues for offering me support and
assistance during this exciting phase of your Group's progress.
Geoffrey Orme
Finance Director
28 April 2003
Consolidated Profit and Loss Account
For the year ended 29 December 2002
Note 2002 2001
# '000 # '000
Turnover 14,752 10,418
Cost of sales (9,853) (6,950)
Gross profit 4,899 3,468
Administrative expenses before exceptionals (4,565) (2,936)
Exceptional cost - other administrative expenses - (182)
Group operating profit
Before amortisation of goodwill 642 612
Amortisation of goodwill (308) (262)
Group operating profit 334 350
Interest receivable and similar income 21 34
Interest payable and similar charges (14) -
Profit on ordinary activities before taxation 341 384
Tax credit on profit on ordinary activities 2 451 -
Profit after taxation 792 384
Dividends proposed 3 (153) -
Retained profit for the financial year 639 384
Basic and diluted EPS 4 1.30p 0.68p
EPS before taxation and amortisation of goodwill 1.06p 1.14p
All operations are continuing.
There were no recognised gains or losses other than the profit for the year.
Consolidated Balance Sheet
at 29 December 2002
2002 2001
# '000 # '000
Fixed assets
Intangible assets 5,814 4,737
Tangible assets 306 363
6,120 5,100
Current assets
Debtors 6,997 6,158
Cash at bank and in hand 1,082 535
8,079 6,693
Creditors: amounts falling due within one year (3,625) (2,158)
Net current assets 4,454 4,535
Net assets 10,574 9,635
Capital and reserves
Called up share capital 6,107 6,026
Share premium account 1,551 1,332
Merger reserve 847 1,136
Profit and loss account 2,069 1,141
Equity shareholders' funds 5 10,574 9,635
Consolidated Cash Flow Statement
For the year ended 29 December 2002
2002 2001
# '000 # '000
Net cash inflow/(outflow) from operating activities 6 1,517 (1,913)
Returns on investment and servicing of finance 7 7 34
Taxation - -
Capital expenditure and financial investment 7 (80) (262)
Acquisitions and disposals 7 (892) -
552 (2,141)
Financing - issue of shares - 2,600
- costs of share issue - (124)
- repayment of debt (7) (13)
(7) 2,463
Increase in cash in the period 545 322
AUTO INDEMNITY GROUP PLC
Notes To The Preliminary Announcement
For the year ended 29 December 2002
1. New Financial Reporting Standard
In accordance with Financial Reporting Standard 19, the accounting policy for UK
deferred tax has changed. The effect of the change in policy has been to
increase profit for the financial year by #451,000 (2001: #nil) and shareholders
funds by #451,000 (2002: #nil).
2. Taxation
There is no corporation tax charge for the year (2001: #nil) due to the Group
losses brought forward and utilised in the year. Unprovided losses carried
forward and available for relief against future trading profits amount to #3.7
million (2001: #3.8 million) for the Group.
2002 2001
# '000 # '000
United Kingdom Corporation Tax
Current tax on income for the year - -
Adjustments in respect of prior years - -
Current taxation - -
Deferred taxation
Net reversal of timing differences (451) -
(451) -
Tax credit on profit on ordinary activities (451) -
3. Dividends
The Company proposes to pay a dividend of 0.25 pence (2001: nil pence) per share
to shareholders on the share register at 4 July 2003. On the number of shares
currently in issue this amounts to a sum of #153,000 (2001: #nil). Trading in
the shares will go ex-dividend on 2 July 2003 and payment will be made to
shareholders on the 4 August 2003.
4. Earnings per share (EPS)
The calculation of basic earnings per share is based on the retained profit
attributable to ordinary shareholders of #792,000 (2001: #384,000). The EPS
before taxation and goodwill amortisation is calculated on the profit for the
year prior to amortisation of goodwill and taxation of #649,000 (2001:
#646,000). All EPS calculations have been determined by the weighted average
number of shares in issue during the period 60,800,227 (2001: 56,487,972).
There is no dilutive effect of share options on earnings per share.
5. Reconciliation of movements in shareholders funds
2002 2001
Group # '000 # '000
Total recognised gains and losses 639 384
Net proceeds of share issue 300 2,476
Increase in shareholders' funds 939 2,860
Opening shareholders' funds 9,635 6,775
Closing shareholders' funds 10,574 9,635
Comprising:
Equity 10,574 9,635
6. Reconciliation of Operating Profit to Operating Cash Flows
2002 2001
# '000 # '000
Operating profit 334 350
Depreciation charges 149 109
(Profit) on disposal of tangible fixed assets (12) (4)
Amortisation of goodwill 308 262
(Increase) in debtors (206) (3,575)
Increase in creditors and provisions 944 945
Net cash inflow/(outflow) from operating activities 1,517 (1,913)
7. Analysis of Cash Flows For Headings Netted In The Cash Flow Statement
2002 2001
# '000 # '000
Returns on investment and servicing of finance
Interest received 21 34
Interest paid (14) -
Net cash inflow for returns on investments and servicing of finance 7 34
Capital expenditure and financial investment
Purchase of tangible fixed assets (113) (296)
Sale of tangible fixed assets 33 34
Net cash outflow for capital expenditure and financial investment (80) (262)
Acquisitions and disposals
Purchase of subsidiary undertaking (718) -
Overdraft acquired with subsidiary undertaking (174) -
Net cash outflow for acquisitions and disposals (892) -
8. Reconciliation Of Net Cash Flow To Movement In Net Funds
2002 2001
# '000 # '000
Increase in cash in the period 545 322
Cash inflow from decrease in debt and lease financing 7 13
Movement in net funds 552 335
Net funds at 1 January 528 193
Net funds at 29 December 1,080 528
9. Analysis of Net Funds
At 1 January Cash At 29 December
2002 Flow 2002
# # #
Cash in hand and at bank 535 547 1,082
Bank overdraft - (2) (2)
Cash 535 545 1,080
Finance leases (7) 7 -
Total 528 552 1,080
10. Preliminary Announcement
The preliminary statement, which has been agreed with the auditors, was approved
by the Board of Directors on 28 April 2003. It is not the Company's statutory
accounts. Copies of the Group's audited statutory accounts for the year ended
29 December 2002 will be despatched to shareholders, and the AIM Team, shortly.
The statutory accounts for the two years ended December 2002 and 2001 received
audit reports which were unqualified and did not contain statements under
Section 237(2) or Section 237(3) of the Companies Act 1985. The statutory
accounts for the year ended 31 December 2001 have been delivered to the
Registrar of Companies but the 29 December 2002 accounts have not yet been
filed.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UKSVROSRSUAR