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Lighthouse Group PLC  -  LGT   

Interim Results

Released 07:00 04-Sep-2018

RNS Number : 6319Z
Lighthouse Group PLC
04 September 2018
 

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014

 

 

 

 

Press Release

4 September 2018

Lighthouse Group plc

("Lighthouse" or "the Group")

Interim Results

 

Lighthouse Group plc (AIM: LGT), the national financial advisory group, today announces its interim results for the six months ended 30 June 2018.

 

Highlights

Revenues for the six months to 30 June 2018 increased by 5 per cent. to £26.88  million (H1 2017: £25.67 million);

Average annualised revenue production per adviser increased by 6 per cent. to £124,000 (H1 2017: £117,000);

Other operating expenses reduced by 3 per cent. to £5.54 million (H1 2017: £5.68 million);

Underlying EBITDA* increased by 26 per cent. to £1.65 million (H1 2017: £1.31 million);

Pre-tax profits increased by 12 per cent. to £1.26 million (H1 2017: £1.13 million);

Basic earnings per share increased by 13 per cent. to 0.99 pence per share (H1 2017: 0.88 pence per share);

Net cash balances £9.6 million (31 December 2017: £8.7 million, 30 June 2017: £8.1 million);

Interim dividend declared of 0.20 pence per share, an increase of 67 per cent. (H1 2017: 0.12 pence per share); and

Affinity contracts renewed with the General Federation of Trades Unions, Parliament Hill, the Royal College of Nursing, the Public and Commercial Services Union, the Money Advice Service and FosterTalk and extended for mortgage and protection services for Unison during the period. Since 30 June 2018 contracts with Prospect union and the Association of School and College Leaders have been renewed.

*Earnings Before Interest, Tax, Depreciation and Amortisation and non-cash share-based payments charge

Commenting on the results, Richard Last, Chairman of Lighthouse Group plc, said:

"The unaudited results for the six months ended 30 June 2018 illustrate the continued progression of the Group's activities, with underlying EBITDA (before non-cash share-based charges) for the six months increasing by 26 per cent. to £1.65million. Continued progress in the Group's affinity operations and in developing proprietary financial products for both the individual and corporate markets is expected to contribute to future growth in profits."

 

 

For further information, please contact:

Lighthouse Group plc

 

Richard Last, Chairman

Malcolm Streatfield, Chief Executive

Tel: +44 (0) 20 7065 5640

 

Peter Smith, Finance Director

 

 

investorenquiries@lighthousefs.uk

 

www.lighthousegroup.plc.uk

 

finnCap Limited

 

Tel: +44 (0) 20 7220 0500

(Nominated Adviser and Broker to the Company)

Corporate

 

Julian Blunt/ Emily Watts/ Hannah Boros

 

ECM

Alice Lane

 

 

Media enquiries:

 

IFC Advisory Limited

 

Graham Herring/Heather Armstrong/Florence Chandler

Tel: +44 (0) 20 3934 6630

heather.armstrong@investor-focus.co.uk

www.investor-focus.co.uk

 

 

 

Chairman's statement for the six months ended 30 June 2018

Trading highlights   

 

Unaudited

Unaudited

 

6 months to 30 June 2018

6 months to 30 June 2017

 

 

 

Revenue

£26.88 million

£25.67 million

Gross profit

£7.19 million

£6.99 million

Operating costs

£5.54 million

£5.68 million

Underlying EBITDA *

£1.65 million

£1.31 million

Profit before taxation

£1.26 million

£1.13 million

Basic earnings per share

0.99p

0.88p

Adjusted basic earnings per share

0.80p

0.71p

Diluted earnings per share

0.91p

0.83p

Adjusted diluted earnings per share

0.73p

0.67p

 

* Earnings Before Interest, Tax, Depreciation and Amortisation and non-cash share-based payments charge

** Adjusted basic and diluted earnings per share calculated after deduction of a standard tax charge of 19 per cent. (2017: 19.25 per cent.) and disclosed to aid comparability of results

 

Financial performance

I am pleased to report that Lighthouse has continued to progress in the six months to 30 June 2018. Revenues increased by £1.21 million or 5 per cent. to £26.88 million reflecting an increase in income generation from our affinity relationships (revenues in the period up £0.85 million or 20 per cent. to £5.13 million from the £4.28 million achieved in the comparable period in 2017). Average annualised revenue production per adviser increased by £7,000 or 6 per cent. to £124,000 from £117,000 in the first half of 2017.

 

Recurring revenue accounted for 51 per cent. of all Group revenue derived from customers and amounted to £13.19 million in the period to 30 June 2018 (2017: 49 per cent. or £11.92 million). The increase in recurring revenue of 11 per cent. was twice the increase in total Group revenues, reflecting the benefit in 2018 of on-going charges in respect of new business written in 2017.

 

Gross margin at 27 per cent. was broadly in line with the comparator period in 2017, with increased revenues in the Group's higher margin businesses - affinities and professional connections being offset by the higher introducer payments from the increase in affinity-sourced business and continuing investment in the Group's nascent Luceo Asset management business. Gross margin increased in financial terms to £7.19 million from £6.99 million in 2017.

 

Operating costs (before non-cash share-based payments charge) reduced by £143,000 to £5.54 million in comparison with £5.68 million in 2017, reflecting the Group's on-going focus on improving operational and cost efficiency.

 

Underlying EBITDA for the period amounted to £1.65 million, an increase of £340,000 or 26 per cent. from the £1.31 million recorded in the comparative period in 2017. Underlying EBITDA is stated before deduction of depreciation, amortisation and non-cash share-based payment charges as these are all non-cash costs and in the opinion of the Board the underlying EBITDA more accurately presents the performance of the Group. The Group continued to invest and expensed £335,000 in the period in the development of its asset management business and specialist service offerings (2017: £400,000). 

 

After deduction of depreciation, amortisation, share-based payments and net finance costs, the Group recorded a profit before and after taxation of £1.26 million (2017: £1.13 million), with basic earnings per ordinary share of 0.99 pence (2017: 0.88 pence) and diluted earnings per share of 0.91 pence (2017: 0.83 pence). Adjusted basic earnings per share, stated after deduction of a standard tax charge of 19 per cent. (2017: 19.25 per cent.) to aid comparability, were 0.80 pence (2017: 0.71 pence) and adjusted diluted earnings per share were 0.73 pence (2017: 0.67 pence)

 

Financial position and cash flow

The Group continues to maintain a strong balance sheet with cash reserves of £9.6 million at 30 June 2018 (31 December 2017: £8.7 million, 30 June 2017: £8.1 million) and no debt. With c50 per cent. of the cash balances being required to underpin regulatory capital requirements, the Group has c£5 million available to fund both internal and external expansion opportunities should they present themselves.

 

Business relationships and developments

Affinity relationships continue to be an important component of the Group's operations, particularly in Lighthouse Financial Advice (our National division). The gross revenues derived from such sources noted under "Financial performance" above included new business revenues of £2.6 million, an increase of £0.8 million over the £1.8 million recorded in the six months to 30 June 2017. Total revenues from affinity sources amounted to 20 per cent. of revenues generated from customers by the Group in the half year (2017: 18 per cent.).

 

The Group continues to maintain its affinity relationships with contract renewals secured for the General Federation of Trades Unions, Parliament Hill, the Royal College of Nursing, the Public and Commercial Services Union, the Money Advice Service and FosterTalk, as well as extension of the existing Unison agreement to include specialist mortgage advice, during the period. The affinity contracts with the Prospect union and the Association of School and College Leaders have also been renewed since 30 June 2018. The Group currently has 21 contracted affinity agreements with organisations representing more than 6 million members.

 

The Group continues to focus on increasing client engagement within its affinity relationships with access to individuals in professions such as education, medical and engineering providing considerable scope for further growth, based on carefully targeted recruitment, marketing and adviser support.

 

Divisional performance

Lighthouse Financial Advice ("LFA"), the Group's National advisory division servicing affinity-based clients, continued to progress with gross revenues increasing by £0.82m or 9 per cent. to £10.06 million from £9.25 million. The division's contribution (profit before allocated indirect operating expenses) remained broadly constant at £2.53 million (2017: £2.54 million) as a result of the non-recurrence of a credit for past regulatory fees (2017: £0.11 million) and further investment into the division's infrastructure.

 

The Group's Wealth Advisory division, comprising LighthouseCarrwood (employed advisers working with accountancy connections) and LighthouseWealth (self-employed advisers), saw revenues grow by £0.75m or 16 per cent. to £5.35 million (2017: £4.60 million) in the period to 30 June 2018. Contribution increased marginally to £0.39 million from £0.38 million. The division continues to deliver professional advice to high net worth individuals and business owners.

 

 

The Group continues to support its community-based Network members in developing client relationships whilst focusing on improved customer outcomes and risk minimisation. The Network accounted for £10.66 million of Group revenue in the first half of 2018 (2017: £11.25 million), the reduction arising from certain member firms going directly authorised, but the division increased its contribution by £0.02 million to £1.20 million (2017: £1.18 million).

 

Lighthouse Mortgage and Protection Solutions ("LMPS"), the Group's dedicated division for customers requiring mortgage and protection advice and included within the Communities division for segment reporting purposes, increased its revenues by £0.11 million or 21 per cent. from £0.52 million to £0.63 million and its contribution by £0.05 million to £0.06 million (2017: £0.01 million). LMPS is now the preferred supplier of such advice to 15 of the Group's affinity partners.

 

The Group's asset management business, Luceo Asset Management ("LAM"), launched in September 2016, continued to build steadily in the period, with assets under management having increased from £37 million at 31 December 2017 to £53 million as at 30 June 2018. Gross investment flows from the actively managed fund of fund products (managed by Octopus Investments) remain healthy at an average inflow (excluding market corrections) of £714,000 per week.  LAM recorded revenues of £0.2 million in the period (2017: £0.05 million) and absorbed £0.2 million at the contribution level (2017: £0.2 million). The Group will continue to look at potential new fund products to enhance the Luceo range once the existing funds have reached the level necessary to contribute after fixed costs.

 

The Group has continued to add employers and members into its proprietary workplace pensions product offering the Lighthouse Pensions Trust ("LPT"). At 30 June 2018 555 employers with 5,966 active members had used the Corporate Pensions Trust (which incorporates the LPT) to satisfy their auto-enrolment obligations and assets under management amounted to £9.6 million. The Group is undertaking a strategic review of this business area, as part of a Group-wide assessment designed to focus resources on key growth areas, which is expected to be completed by the end of the current financial year. Updates will be provided to shareholders in due course. 

 

Dividends

The Board is pleased to announce an interim dividend of 0.20 pence per ordinary share (2017: 0.12 pence) which will be payable on 19 October 2018 to shareholders on the register as at 14 September 2018. The Group's ordinary shares will go ex-dividend on 13 September 2018. The last day to make an election in respect of the dividend reinvestment plan operated by Link Market Services Trustees Limited will be 28 September 2018.

 

General economic background

The on-going uncertainties re the shape of any deal for Brexit and potential disruption to global trading from political differences between the US and other developed economies continue to impact on volatilities in both UK and global stock markets. However, the Group's focus on the UK retail financial services market continues to enable the Group and its advisers to engage with and advise customers.

 

Regulatory developments

Regulatory developments continue to make demands across the entire spectrum of the financial advice market in the UK, with MiFID II and GDPR having come into effect in the first half of 2018 and the Insurance Distribution Directive and the extension of the Senior Persons Regime scheduled to come into effect on 1 October 2018 and 9 December 2019 respectively. The Board is satisfied that the Group has and will continue to deal appropriately with the various requirements introduced by the aforementioned new and amended regulations.

 

Strategy and Outlook

The Group remains positive as to achieving market expectations for the full year and continues with its strategy of developing its own proprietary product offerings in the asset management and workplace solutions markets whilst at the same time focusing on opportunities within its affinity and wealth advisory businesses that provide higher margins. With cash resources available, the Group is well placed to fund both internal growth strategies and external opportunities. In addition the Group will continue to look for operational efficiencies across its businesses.

 

 

Prospective Board Changes

I have advised the Board that, in the light of current guidance on Corporate Governance and my having served as a Director of the Company since July 2007 and as Chairman since August 2012, it is my intention to stand down from the Board of the Company and not stand for re-election as a Director at the next Annual General Meeting of the Company in May 2019.

I should like to thank my colleagues on the Board and the excellent executive team led by Malcolm Streatfield for all their help and support over the years. It has been a pleasure to work with such a professional and dedicated team and I wish the Company and my fellow Directors well in working towards what we all believe should be a rewarding future. The Nominations Committee will start the process of looking for a new Chairman and Non-Executive Director in the near future.

 

Richard Last

Chairman

 

3 September 2018

 

Lighthouse Group plc

Consolidated statement of comprehensive income

for the six months ended 30 June 2018

 

 

Unaudited

6 months ended 30 June 2018

Unaudited

6 months ended 30 June 2017

Audited

Year ended 31 December

2017

 

£'000

£'000

£'000

 

 

 

 

Revenue

26,876

25,673

54,111

Cost of sales

(19,686)

(18,680)

(39,439)

Gross profit

7,190

6,993

14,672

 

 

 

 

Administrative expenses

 

 

 

Other operating expenses

(5,543)

(5,686)

(11,485)

Underlying earnings before interest, tax, depreciation, amortisation and non-cash share-based payments

 

 

1,647

 

 

 

1,307

 

 

 

3,187

Depreciation and amortisation

(178)

(137)

(274)

Non-cash share-based payments

(183)

(39)

(385)

Total administrative expenses

(5,904)

(5,862)

(12,144)

Operating profit

1,286

1,131

2,528

Finance revenues

7

1

3

Finance costs

(29)

(7)

(10)

Profit before taxation

1,264

1,125

2,521

Tax charge

-

-

200

Profit for the period

1,264

1,125

2,721

 

Total comprehensive income for the period

 

1,264

 

1,125

 

2,721

 

 

 

 

Profit for the period attributable to:

 

 

 

Equity holders of the parent

1,264

1,125

2,721

 

 

 

 

Total comprehensive income for the period attributable to:

 

 

 

Equity holders of the parent

1,264

1,125

2,721

 

Basic earnings per share

 

0.99p

 

0.88p

 

2.13p

 

Adjusted (*) basic earnings per share

0.80p

0.71p

1.59p

 

Diluted earnings per share

 

0.91p

 

0.83p

 

1.98p

 

Adjusted (*) diluted earnings per share

0.73p

0.67p

1.49p

 

 

(*) Adjusted basic and diluted earnings per share calculated after deduction of a standard tax

charge of 19 per cent. (2017: 19.25 per cent.) to aid comparability                      
 

 

Lighthouse Group plc

Consolidated statement of changes in equity

for the six months ended 30 June 2018

 

 

 

Share capital

Special non- distributable reserve

Reserves arising from share based payments

Retained earnings

Total attributable to equity shareholders

 

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

 

 

 

At 1 January 2018

1,277

1,999

1,487

6,924

11,687

 

Total recognised income and expense for the period

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

1,264

 

 

 

 

 

1,264

 

Dividends paid

 

-

-

-

(383)

(383)

Share-based payment

-

-

183

-

183

 

 

 

 

 

 

At 30 June 2018

1,277

1,999

1,670

7,805

12,751

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1 January 2017

1,277

1,999

1,102

4,586

8,964

 

Total recognised income and expense for the period

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

1,125

1,125

 

Dividends paid

 

-

 

-

 

 

 

(230)

 

(230)

 

Share-based payment

 

 

-

 

-

 

39

 

-

 

39

At 30 June 2017

1,277

1,999

1,141

5,481

9,898

 

 

 

 

 

 

 

 

 

 

Lighthouse Group plc

Consolidated statement of financial position

at 30 June 2018

 

 

Unaudited

30 June 2018

Unaudited

30 June 2017

Audited

31 December 2017

 

£'000

£'000

£'000

Assets

 

 

 

Non-current assets

 

 

 

Intangible assets

5,198

5,170

5,131

Property, plant and equipment

Deferred Tax

1,400

950

1,180

750

1,397

950

 

7,548

7,100

7,478

Current assets

 

 

 

Trade and other receivables

6,236

8,279

8,187

Cash and cash equivalents

9,571

8,508

8,733

 

15,807

16,787

16,920

Total assets

23,355

23,887

24,398

Current liabilities

 

 

 

Trade and other payables

(8,001)

(8,394)

(8,789)

Provisions

(1,714)

(3,214)

(2,846)

 

(9,715)

(11,608)

(11,635)

Non-current liabilities

 

 

 

Trade and other payables

-

(389)

-

Provisions

(889)

(1,992)

(1,076)

 

(889)

(2,381)

(1,076)

Total liabilities

(10,604)

(13,989)

(12,711)

 

 

 

 

Net assets

12,751

9,898

11,687

 

 

 

 

Capital and reserves

 

 

 

Called up share capital

1,277

1,277

1,277

Special non-distributable reserve

1,999

1,999

1,999

Other reserves - share-based payments

1,670

1,141

1,487

Retained earnings

7,805

5,481

6,924

Total equity attributable to equity holders of the Company being total equity

 

12,751

 

9,898

 

11,687

 

 

The interim financial information was approved by the Board of Directors on 3 September 2018 and was signed on its behalf by

 

Malcolm Streatfield                                                                                                    

Chief Executive                                                                                                       

 

Peter Smith

Finance Director

 

 

 

 

 

 

 

Lighthouse Group plc

Consolidated statement of cash flows

For the six months ended 30 June 2018

 

 

Unaudited 6 months ended 30 June 2018

Unaudited 6 months ended 30 June 2017

Audited year ended 31 December 2017

 

£'000

£'000

£'000

Operating activities

 

 

 

Profit before tax for the period

1,264

1,125

2,521

 

 

 

 

Adjustments to reconcile profit for the period to net cash outflows from operating activities

 

 

 

Finance revenues

(7)

(1)

(3)

Finance costs

29

7

10

Depreciation of property, plant and equipment

120

77

150

Amortisation of intangible assets

58

60

124

Share-based payments

183

39

385

Change in trade and other receivables

1,951

725

817

Change in trade and other payables

(788)

(907)

(479)

Change in provisions

(1,319)

(848)

(2,132)

Cash generated by operations

1,491

277

1,393

Finance costs paid

(29)

(7)

(10)

Net cash inflow from operating activities

1,462

270

1,383

 

 

 

 

Investing activities

Purchase of property, plant and equipment

 

(123)

 

(17)

 

(307)

Purchase of intangible assets               

(125)

-

(25)

Finance revenues received

7

1

3

Net cash outflow from investing activities

(241)

(16)

(329)

 

 

 

 

Financing activities

 

 

 

Bank loan

Dividends paid to equity shareholders

-

(383)

(17)

(230)

(439)

(383)

Net cash outflow from financing activities

(383)

(247)

(822)

 

 

 

 

Increase in cash and cash equivalents

838

7

232

Cash and cash equivalents at the beginning of the period

 

8,733

 

8,501

 

8,501

 

 

 

 

Cash and cash equivalents at the end of the period

9,571

8,508

8,733

 

 

 

 

 

 

 

 

 

Lighthouse Group plc

Notes to the financial information

for the six months ended 30 June 2018

 

1.   Basis of preparation

The interim financial information, which comprises the consolidated statement of comprehensive income, consolidated statement of changes in equity, consolidated statement of financial position and consolidated statement of cash flows and the related explanatory notes has been prepared on the basis of the accounting policies set out in the Group accounts for the year ended 31 December 2017. It is unaudited but has been reviewed by the auditor.

 

This information does not constitute statutory accounts for the purpose of section 435 of the Companies Act 2006. A copy of the statutory accounts for the year ended 31 December 2017, prepared under International Financial Reporting Standards, as adopted for use in the European Union, has been delivered to the Registrar of Companies and contained an unqualified auditors' report.

 

2.   Earnings per share

The calculation of the basic and diluted earnings per share attributable to equity shareholders of the parent company is based on the following data:

 

 

Unaudited

6 months ended 30 June 2018

Unaudited

6 months ended 30 June 2017

Audited

Year ended 31 December 2017

 

 

 

 

 

Earnings for the purposes of basic and dilutive earnings per share (£'000)

 

 

 

1,264

 

 

 

 

1,125

 

 

 

 

2,721

 

Weighted average number of ordinary shares for the purpose of basic earnings per share

 

 

 

127,700,298

 

 

 

 

127,700,298

 

 

 

 

127,700,298

 

Effect of the dilutive potential on ordinary shares: share options

 

 

11,620,095

 

 

7,258,833

 

 

9,378,939

 

Weighted average number of ordinary shares for the purpose of diluted earnings per share

 

 

 

139,320,393

 

 

 

 

134,959,131

 

 

 

 

137,079,237

 

As at 30 June 2018 there were nil (30 June 2017: 548,936; 31 December 2017: 52,554) options that existed which could potentially dilute basic earnings per share in the future, but were regarded as being anti-dilutive and therefore were not included in the calculation of dilutive shares, as their exercise price was higher than the average mid-market price of the Company's ordinary shares during the period.

 

 

 

3,   Segment information

Segment information for the Group for the six months ended 30 June 2018 is set out below:

 

     

 

Six months ended 30 June 2018

 

National

Communities

Wealth advisory

Other segments

Total

 

£'000

£'000

£'000

£'000

£'000

Total revenues

10,064

26,707

5,349

168

42,288

Less: inter-segment revenues

-

(15,412)

-

-

(15,412)

External revenues

10,064

11,295

5,349

168

26,876

Cost of sales

(6,420)

(9,415)

(3,583)

(268)

(19,686)

Gross profit

3,644

1,880

1,766

(100)

7,190

Directly allocated operating expenses

(1,113)

(617)

(1,372)

(60)

(3,162)

Segment profit before allocated indirect operating expenses

2,531

1,263

394

(160)

4,028

Allocated indirect operating expenses

 

 

 

 

(2,381)

Underlying EBITDA

 

 

 

 

1,647

Depreciation and amortisation

 

 

 

 

(178)

Non-cash share-based payments charge

 

 

 

 

(183)

Operating profit

 

 

 

 

1,286

Finance revenues

 

 

 

 

7

Finance costs

 

 

 

 

(29)

Profit before taxation

 

 

 

 

1,264

     

 

Six months ended 30 June 2017

 

National

Communities

Wealth advisory

Other segments

Total

 

£'000

£'000

£'000

£'000

£'000

Total revenues

9,248

25,620

4,598

53

39,519

Less: inter-segment revenues

-

(13,846)

-

-

(13,846)

External revenues

9,248

11,774

4,598

53

25,673

Cost of sales

(5,781)

(9,775)

(3,030)

(94)

(18,680)

Gross profit

3,467

1,999

1,568

(41)

6,993

Directly allocated operating expenses

(930)

(808)

(1,188)

(136)

(3,062)

Segment profit before allocated indirect operating expenses

2,537

1,191

380

(177)

3,931

Allocated indirect operating expenses

 

 

 

 

(2,624)

Underlying EBITDA

 

 

 

 

1,307

Depreciation and amortisation

 

 

 

 

(137)

Non-cash share-based payments charge

 

 

 

 

(39)

Operating profit

 

 

 

 

1,131

Finance revenues

 

 

 

 

1

Finance costs

 

 

 

 

(7)

Profit before taxation

 

 

 

 

1,125

 

      Assets and liabilities information by segment is not provided as the Directors reviewed such information at an aggregated level during the period. Luceo Asset Management is included within the Other Segments information above and further information is set out in the Chairman's Statement.

 

4.   A copy of the Interim Statement is being sent to all shareholders and copies are available for collection indefinitely from the Group's Head Office (address: Lighthouse Group plc, 26 Throgmorton Street, London, EC2N 2AN) or at the Group's website (www.lighthousegroup.plc.uk).

 

 

 

 

INDEPENDENT REVIEW REPORT TO LIGHTHOUSE GROUP PLC 

Conclusion

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly report for the six months ended 30 June 2018 which comprises the condensed consolidated statement of comprehensive income, the consolidated statement of changes in equity, the condensed consolidated statement of financial position, the consolidated statement of cash flows and the related explanatory notes.  

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly report for the six months ended 30 June 2018 is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting as adopted by the EU and the AIM Rules. 

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 UK.  A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.  We read the other information contained in the half-yearly report and consider whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements. 

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) 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. 

Directors' responsibilities 

The half-yearly report is the responsibility of, and has been approved by, the directors.  The directors are responsible for preparing the half-yearly report in accordance with the AIM Rules. 

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards as adopted by the EU.  The directors are responsible for preparing the condensed set of financial statements included in the half-yearly financial report in accordance with IAS 34 as adopted by the EU. 

Our responsibility 

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly report based on our review

The purpose of our review work and to whom we owe our responsibilities

This report is made solely to the Company in accordance with the terms of our engagement.  Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this 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 reached. 

 

Ravi Lamba

 

for and on behalf of KPMG LLP 

Chartered Accountants 

15 Canada Square

London

E14 5GL

 

3 September 2018 


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Interim Results - RNS