RNS Number:6671J
Claims People Group PLC
29 September 2006
THE CLAIMS PEOPLE GROUP PLC
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2006
CHAIRMAN'S STATEMENT
Highlights
* Consultancy revenues substantially increased
* Personal lines loss adjusting market continues to contract
* Improving outlook for 2007 trading
As anticipated, the first 6 months of 2006 proved to be a challenging period for
the UK loss adjustment sector with a significant reduction in weather-related
claims. Against this background and in line with our diversification strategy,
we have succeeded in maintaining our overall revenue levels by significantly
growing our consultancy services as well as diversifying our loss adjusting
services into both the liability and commercial areas. Our consultancy services
include 'i-Team' which is provided to clients to facilitate them with the
maintenance of consistent service standards. These services continue to
out-perform the prior year. Turnover was marginally down on 2005 although, as
expected, expenditure increased due to costs associated with the diversification
strategy. As a result, a small loss of #67,000 was incurred at the half year on
a turnover of #1,311,000 compared to a pre-tax profit of #20,000 for the same
period last year.
Looking towards the second half of the year, we are very pleased to have already
secured significant extensions to existing consultancy contracts and, after
addressing costs wherever necessary, we expect to achieve an improved second
half performance.
Early indications are that the company's strategic shift towards the development
and expansion of consultancy activities will result in further enhanced
prospects for 2007.
John French
Chairman
29 September 2006
Further information contact:
The Claims People Group plc
John French, Chairman - Tel: 07836 722482.
Dominic Boyce, Finance Director - Tel: 020 7357 6636
Seymour Pierce Limited
Mark Percy / Liam O'Donoghue - Tel: 020 7107 8000
THE CLAIMS PEOPLE GROUP PLC
CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2006
6 months ended 6 months ended Year ended
30 June 2006 30 June 2005 31 December
2005
Unaudited Unaudited Audited
# # #
Turnover 1,311,397 1,355,721 2,714,937
Administrative
expenses (1,377,974) (1,336,296) (2,663,052)
_________ _________ ________
Operating (loss)/
profit (66,577) 19,425 51,885
Finance costs - net
Interest receivable 1,078 1,280 1,958
Interest payable (1,066) (525) (1,902)
_________ _________ ________
12 755 56
_________ _________ ________
(Loss)/profit before
taxation (66,565) 20,180 51,941
Taxation 2 - - -
_______ _______ ________
(Loss)/profit after
taxation and for the
period (66,565) 20,180 51,941
_______ _______ ________
(Loss)/profit per 3
share (0.06p) 0.02p 0.05p
_______ _______ ________
Fully diluted (loss)/ 3 (0.06p) 0.02p 0.05p
profit per share
THE CLAIMS PEOPLE GROUP PLC
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2006
Share Share Retained
capital premium account earnings
# # #
Balance at 1 January 2005 1,500,000 833,778 (1,248,398)
Profit for the period - - 20,180
Issue of equity share capital 44,062 44,063 -
________ ________ _________
Balance at 30 June 2005 1,544,062 877,841 (1,228,218)
________ ________ _________
Balance at 1 July 2005 1,544,062 877,841 (1,228,218)
Profit for the period - - 31,761
________ ________ __________
Balance at 31 December 2005 1,544,062 877,841 (1,196,457)
________ ________ __________
Balance at 1 January 2006 1,544,062 877,841 (1,196,457)
Loss for the period - - (66,565)
________ ________ _________
Balance at 30 June 2006 1,544,062 877,841 (1,263,022)
________ ________ _________
THE CLAIMS PEOPLE GROUP PLC
CONSOLIDATED BALANCE SHEET
30 JUNE 2006
30 June 2006 30 June 2005 31 December 2005
Unaudited Unaudited Audited
# # #
ASSETS
Non-current assets
Property, plant and 96,206 122,721 128,029
equipment
Goodwill 265,661 265,661 265,661
_______ ________ _______
361,867 388,382 393,690
_______ _______ ________
Current assets
Inventories and work
in progress 417,399 368,844 373,347
Trade and other
receivables 931,134 640,678 691,263
Cash and cash
equivalents 1,093 90,935 143,593
_______ _______ ________
1,349,626 1,100,457 1,208,203
________ ________ ________
Total assets 1,711,493 1,488,839 1,601,893
EQUITY
Capital and reserves
attributable to the
Company's equity
shareholders
Share capital 1,544,062 1,544,062 1,544,062
Share premium
account 877,841 877,841 877,841
Retained earnings (1,263,022) (1,228,218) (1,196,457)
_________ _________ _________
Total equity 1,158,881 1,193,685 1,225,446
_________ _________ _________
LIABILITIES
Current liabilities 552,612 285,666 373,944
Non-current
liabilities - 9,488 2,503
_________ _________ _________
Total liabilities 552,612 295,154 376,447
_________ _________ _________
Total equity and
liabilities 1,711,493 1,488,839 1,601,893
_________ _________ _________
THE CLAIMS PEOPLE GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2006
Notes 6 months ended 6 months ended Year ended
30 June 2006 30 June 2005 31 December 2005
Unaudited Unaudited Audited
# # #
Cash flows from
operating activities
Cash used in 4
operations (362,504) (134,402) (29,313)
Cash flows from
investing activities
Interest received 1,078 1,280 1,958
Interest paid (1,066) (370) (1,902)
Purchase of property,
plant
and equipment (9,391) (1,957) (46,541)
_________ _________ _________
Net cash flows used in (9,379) (1,047) (46,485)
investing activities
Cash flows from
Financing activities
Issue of equity share
capital - 88,125 88,125
Capital element of
finance lease rental
payments (3,236) (5,103) (8,340)
Capital element of
loan repayments (3,755) (3,755) (7,511)
________ __________ __________
Net cash flows (used
in)/ generated from
financing activities (6,991) 79,267 72,274
________ __________ __________
Net decrease in cash (378,874) (56,182) (3,524)
________ __________ __________
NOTES TO THE INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2006
1. Accounting Policies
Basis of accounting
The financial statements have been prepared under the historical cost convention
and in accordance with applicable accounting standards. The most significant
accounting policies are described below.
Basis of consolidation
The consolidated financial statements incorporate the results of the Company and
all its subsidiary undertakings as if they were a single entity. Subsidiary
undertakings are consolidated from the date of acquisition using the acquisition
method of accounting.
Turnover
Turnover represents the invoiced amount of services provided in the period and
is stated net of VAT.
Tangible fixed assets
Tangible fixed assets are stated at cost less provision for depreciation.
Depreciation is provided on all tangible fixed assets at rates calculated to
write off the cost of each asset less its estimated residual value evenly over
its estimated useful life, as follows:
Claims software - over five years
Office equipment and fittings - over three to five years
Website development - over three years
Goodwill
Goodwill is stated at cost prior to adoption of International Accounting
Standards and is reviewed at each period end for impairment.
Work in progress
Revenue arising from the rendering of services is recognised only to the extent
of the expenses recognised that are recoverable. Work in progress is valued at
its recoverable amount.
Leasing and finance lease commitments
Assets obtained under hire purchase contracts and finance leases are capitalised
in the balance sheet and depreciated over their useful economic lives. The
interest element of the rental obligations is charged to the profit and loss
account over the period of the contract and represents a constant proportion of
the balance of capital payments outstanding. Rentals paid under operating leases
are charged to the profit and loss account on a straight line basis over the
term of the lease.
Deferred taxation
Deferred tax is recognised in respect of all timing differences that have
originated but not reversed at the balance sheet date where transactions or
events that result in an obligation to pay more tax in the future or a right to
pay less tax in the future have occurred at the balance sheet date. Timing
differences are differences between the Group's taxable profits and its results
as stated in the financial statements that arise from the inclusion of gains and
losses in tax assessments in periods different from those in which they are
recognised in the financial statements. A net deferred tax asset is regarded as
recoverable and therefore recognised only when, on the basis of all available
evidence, it can be regarded as more likely than not that there will be suitable
taxable profits from which the future reversal of the underlying timing
differences can be deducted. Deferred tax is measured on a non-discounted basis
at the average tax rates that are expected to apply in the periods in which the
timing differences are expected to reverse.
Pension costs
The Group contributes to two Group Personal Pension Schemes for Directors and
senior employees. Pension contributions are charged to the profit and loss
account as they are incurred.
Financial Information
The financial information above does not constitute statutory accounts within
the meaning of Section 240 of the Companies Act 1985. The interim financial
information has not been audited but has been reviewed by the Company's
auditors.
The interim financial statements have been prepared in accordance with IAS 34,
Interim Financial Reporting. These interim statements have been prepared in
accordance with those IFRS standards and IFRIC interpretations issued and
effective as at the time of preparing these statements.
2. Taxation
No liability to taxation arises due to tax losses available from previous
periods. The company has approximately #1,157,000 of tax losses available for
relief against future trading profits.
6 months ended 6 months ended Year ended
30 June 2006 30 June 2005 31 December 2005
Unaudited Unaudited Audited
# # #
Current
UK corporation tax - - -
Deferred tax
Charge arising on
valuation of
deferred tax assets - - -
Credit arising on
recognition of
deferred tax asset - - -
________ __________ ___________
- - -
________ ___________ ___________
Deferred tax asset
comprises:
Accelerated capital
allowances 35,681 35,681 35,681
Short term timing
differences 2,837 2,837 2,837
Trading losses 95,040 95,040 95,040
_______ ______ ________
133,558 133,558 133,558
_______ ______ ________
Factors affecting the tax charge for the period:
6 months ended 6 months ended Year ended
30 June 2006 30 June 2005 31 December 2005
Unaudited Unaudited Audited
# # #
(Loss)/profit on
ordinary activities
before taxation (66,565) 20,180 51,941
_______ ______ _______
Corporation tax at 30% (19,970) 6,054 15,582
Effects of:
Disallowed
expenditure 8,984 10,723 8,554
Depreciation and
amortisation 12,364 11,645 23,428
Capital allowances (9,877) (10,444) (24,380)
Losses Utilised - (17,978) (23,184)
Other tax
adjustments (11,471) - -
_________ ________ _________
3. Earnings per share
The earnings per share is based on the profit for the period and the weighted
average number of ordinary shares in issue and ranking for dividend.
6 months ended 6 months ended Year ended
30 June 2006 30 June 2005 31 December 2005
Unaudited Unaudited Audited
# # #
(Loss)/profit for
the period (66,565) 20,180 51,941
__________ __________ __________
Weighted average
number of shares 102,937,500 102,840,659 102,848,973
Fully diluted
average number of
shares 102,937,500 100,250,000 102,876,641
__________ __________ __________
4. Reconciliation of profit to net cash generated from operations
6 months ended 6 months ended Year ended
30 June 2006 30 June 2005 31 December 2005
Unaudited Unaudited Audited
# # #
(Loss)/profit for
the period (66,577) 19,425 51,885
Adjustments for:
Depreciation 41,214 38,816 78,093
Amortisation - - -
Changes in working
capital:
Inventories and work
in progress (44,052) 33,832 29,329
Trade and other
receivables (239,871) 8,287 (42,298)
Trade and other
payables (53,218) (234,762) (146,322)
________ ________ ________
Cash used in
operations (362,504) (134,402) (29,313)
________ ________ ________
INDEPENDENT REVIEW REPORT TO THE CLAIMS PEOPLE GROUP PLC
Introduction
We have been instructed by the company to review the financial information for
the six months ended 30 June 2006 set out above which comprises the income
statement, the balance sheet, the cash flow statement and the related notes. We
have read the other information contained in the interim report and considered
whether it contains any apparent misstatements or material inconsistencies with
the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The directors are
responsible for preparing the interim report in accordance with the AIM Rules of
the London Stock Exchange which require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes, and
the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of management and applying analytical
procedures to the financial information and underlying financial data and, based
thereon, assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. This report, including the
conclusion, has been prepared for and only for the company for the purpose of
the AIM Rules of the London Stock Exchange and for no other purpose. A review
excludes audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with International Standards on Auditing and therefore
provides a lower level of assurance than an audit. Accordingly we do not express
an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2006.
Saffery Champness
Chartered Accountants
Lion House
Red Lion Street
London
WC1R 4GB
29 September 2006
This information is provided by RNS
The company news service from the London Stock Exchange
END
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