TIDMJIM
RNS Number : 9886J
Jarvis Securities plc
24 July 2013
24 July 2013
Jarvis Securities plc ("Jarvis", the "Company" or the
"Group")
Interim Results for the six months ended 30 June 2013 &
Dividend Declaration
Highlights
-- GBP510,592 (17%) increase in revenue versus six months to 30 June 2012
-- GBP473,500 (45%) increase in profit before tax versus six months to 30 June 2012
-- Cash under administration has increased GBP36,498,402 (51%) versus 30 June 2012
-- Client numbers have increased 13% versus 30 June 2012
The Board of Jarvis announces that it is declaring a third
quarterly interim dividend of 3.5 pence per share, to be paid on 12
September 2013 to shareholders on the register on 23 August
2013.
A Dividend Reinvestment Plan is being offered and the final date
for elections for reinvestment of the first quarterly interim
dividend is 30 August 2013. Any shareholder requiring further
information should contact the Company.
Enquiries:
Jarvis Securities plc tel: 01892 510 515
Andrew Grant
WH Ireland Ltd tel: 0113 394 6619
Andrew Kitchingman
James Bavister
Notes:
Jarvis Securities plc is the holding company for Jarvis
Investment Management Limited (AIM: JIM.L) a stock broking company
and outsourced service provider for bespoke tailored financial
administration. Jarvis was established in 1984 and is a member of
the London Stock Exchange; a broker dealer member of ISDX Markets,
authorised and regulated by the Financial Conduct Authority and an
HM Revenue & Customs approved ISA manager. Jarvis has more than
65,000 retail clients and a growing number of institutional
clients. As well as normal retail broking Jarvis provides cost
effective and flexible share trading facilities within ISA and SIPP
wrappers.
Jarvis provides outsourced and partnered financial
administration services to a number of third party organisations.
These organisations include advisers, stockbrokers, banks and fund
managers. Jarvis can tailor its administration processes to the
requirements of each organisation and has a strong reputation for
flexibility and cost-effectiveness.
Chairman's statement
I am pleased to report our best ever set of half year results.
Revenue has increased significantly while the cost base has
remained consistent demonstrating the scalability of Jarvis'
business model. Behind the financial numbers we continue to acquire
both retail and institutional clients. In the first half of this
year we have signed contracts to provide Model B and/or Custodian
services to Panmure Gordon, Daniel Stewart, Dartmoor Investment
Trust and two of Chelverton's Investment Trusts. We continue to
receive many enquiries attracted by our competitively priced
reputable service and have a good pipeline of new business
scheduled for the coming year.
As always we are not complacent about the status quo and are
continually looking for growth and improvements in efficiency. In
the second half of this year we will be further upgrading our IT
infrastructure. This is funded from profit not paid out as
dividends in prior periods; therefore this investment will cause no
impact on dividends in the current year. The upgrade will
facilitate improvements to our internal procedures leading to cost
savings, and the functionality we are able provide to our
clients.
Finally I would like to comment on the recent appreciation in
our share price. We have felt for some time that our shares were
undervalued. Jarvis stock has many attractive characteristics - the
business is highly cash generative and management are committed to
returning cash to shareholders in a regular and transparent
fashion. This is reflected by our policy of paying regular
quarterly dividends at 2/3(rds) of profit after tax. We have a
proven track record of continued growth, even in difficult economic
conditions. We have demonstrated an ability to acquire and retain
both retail and institutional clients; however our share of the
retail stock market remains small leaving plenty of potential
growth opportunities for the future. We operate in a highly
regulated industry with significant costs on entry thereby
restricting the number of new entrants into our market. Finally,
due to the recently announced changes in the ISA rules Jarvis stock
will shortly be ISA eligible, further increasing the breadth of
potential demand.
These are certainly exciting times for Jarvis. As always I would
like to thank every member of the Jarvis team for their continued
commitment.
Key performance indicators (KPI)
The key performance indicators (KPIs) are designed to give
stakeholders in the business a more rounded view of the Group's
performance. Further details on the KPIs and their measurement can
be found in the last Annual Report. A selection of KPIs and the
Group's results to the interim period for these are detailed below.
These results have been annualised from the position at 30 June
2013 where measurement over a year is required.
KPI: 30/6/13 30/6/12 Target
--------------------------------------- ------------ ----------- ------------
Profit before tax margin 44% 35% 20%
Revenue per employee (annualised) GBP183,200 GBP165,012 to increase
Growth in client numbers (annualised) 13.1% 5.2% 10%
Cash under administration 108,661,071 72,162,669 to increase
Company No.: 5107012
Consolidated income statement for the period ended 30 June
2013
Six months ended
Notes 30/6/13 30/6/12
-------------------------- ------ -------------------------- ----------------------------
GBP GBP
Continuing operations
Revenue 3,480,808 2,970,216
Administrative expenses (1,960,403) (1,910,114)
Finance costs - (13,197)
-------------------------- ------ -------------------------- ----------------------------
Profit before income tax 1,520,405 1,046,905
Income tax charge 4 (349,693) (258,410)
-------------------------- ------ -------------------------- ----------------------------
Profit for the period 1,170,712 788,495
========================== ====== ========================== ============================
Attributable to equity
holders of the parent 1,170,712 788,495
========================== ====== ========================== ============================
Earnings per share 5 P p
-------------------------- ------ -------------------------- ----------------------------
Basic 11.01 7.45
Diluted 10.77 7.32
Consolidated statement of financial position at 30 June 2013
Notes 30/6/13 31/12/12 30/6/12
------
GBP GBP GBP
Assets
Non-current assets
Property, plant and
equipment 259,543 268,268 257,860
Intangible assets 227,160 131,055 140,098
Goodwill 342,872 342,872 342,872
Investments held to
maturity 270,932 278,916 286,900
Deferred income tax 6,832 6,832 12,571
Available-for-sale
investments 4,445 46,055 260,323
1,111,784 1,073,998 1,300,624
Current assets
Trade and other receivables 6,583,475 4,252,336 4,982,176
Investments held for
trading 2,108 761 6,720
Cash and cash equivalents 8,758,698 3,606,577 3,001,663
----------------------------- ------ --------------------------- ----------------------- -------------------------
15,344,281 7,859,674 7,990,559
----------------------------- ------ --------------------------- ----------------------- -------------------------
Total assets 16,456,065 8,933,672 9,291,183
============================= ====== =========================== ======================= =========================
Equity and liabilities
Capital and reserves
Share capital 7 107,245 106,015 105,910
Share premium 1,007,302 862,657 854,099
Merger reserve 9,900 9,900 9,900
Capital redemption
reserve 9,845 9,845 9,845
Share option reserve 122,121 114,481 105,807
Retained earnings 1,945,150 1,469,605 1,131,988
Total equity 3,201,563 2,572,503 2,217,549
----------------------------- ------ --------------------------- ----------------------- -------------------------
Current liabilities
Trade and other payables 12,941,743 6,048,103 6,767,254
Income tax 4 312,759 313,066 306,380
----------------------------- ------ --------------------------- ----------------------- -------------------------
13,254,502 6,361,169 7,073,634
Total equity and liabilities 16,456,065 8,933,672 9,291,183
============================= ====== =========================== ======================= =========================
Consolidated statement of comprehensive income
Six months ended
30/6/13 30/6/12
------------------------------------------- ---------------------- --------
Profit for the period 1,170,712 788,495
------------------------------------------- ---------------------- --------
Deferred tax (charge) / asset - -
on share options
Net income recognised directly - -
in equity
Total comprehensive income for the period 1,170,712 788,495
------------------------------------------- ---------------------- --------
Attributable to equity holders
of the parent 1,170,712 788,495
------------------------------------------- ---------------------- --------
Consolidated statement of changes in equity for the period
Share Share Merger Capital Share Retained Attributable
capital premium reserve redemption option earnings to equity
reserve reserve holders
of the
company
----------------------- --------- ---------- --------- ------------ --------- ---------- -------------
GBP GBP GBP GBP GBP GBP GBP
Balance at 31/12/11 105,720 838,614 9,900 9,845 97,034 899,394 1,960,507
Issue of shares 190 15,485 - - - - 15,675
Expense of employee
options - - - - 8,773 - 8,773
Profit for the period - - - - - 788,495 788,495
Dividends - - - - - (555,901) (555,901)
Balance at 30/6/12 105,910 854,099 9,900 9,845 105,807 1,131,988 2,217,549
----------------------- --------- ---------- --------- ------------ --------- ---------- -------------
Issue of shares 105 8,558 - - - - 8,663
Expense of employee
options - - - - 8,674 - 8,674
Profit for the period - - - - - 973,556 973,556
Dividends - - - - - (635,939) (635,939)
Balance at 31/12/12 106,015 862,657 9,900 9,845 114,481 1,469,605 2,572,503
----------------------- --------- ---------- --------- ------------ --------- ---------- -------------
Issue of shares 1,230 144,645 - - - - 145,875
Expense of employee
options - - - - 7,640 - 7,640
Profit for the period - - - - - 1,170,712 1,170,712
Dividends - - - - - (695,167) (695,167)
Balance at 30/6/13 107,245 1,007,302 9,900 9,845 122,121 1,945,150 3,201,563
----------------------- --------- ---------- --------- ------------ --------- ---------- -------------
Consolidated statement of cashflows for the period ended 30 June
2013
Six months ended
30/6/13 30/6/12
----------------------------- --------------------------
GBP GBP
Cash flow from operating activities
-------------------------------------- ----------------------------- --------------------------
Profit before tax 1,520,405 1,046,905
Finance cost - 13,197
Depreciation charges 11,143 12,380
Amortisation charges 17,859 23,309
Impairment charges 41,610 20,226
Share options 7,640 8,773
Loss/(Profit) on disposal of fixed - -
assets
1,598,657 1,124,790
(Increase)/Decrease in receivables (2,491,139) (1,723,308)
Increase/(Decrease) in payables 6,828,640 2,437,759
(Increase)/Decrease in investments
held for trading (1,347) 13,255
Cash generated from operations 5,934,811 1,852,496
Interest paid - (13,197)
Income tax (paid)/received (350,000) (250,000)
Net cash from operating activities 5,584,811 1,589,299
Cash flows from investing activities
(Increase)/Decrease in investments
held to maturity - (99,999)
Sale of investments 160,000 -
Purchase of intangible assets (40,979) -
Purchase of tangible fixed
assets (2,419) (57,372)
116,602 (157,371)
Cash flows from financing activities
Issue of ordinary share capital 145,875 15,675
Dividends to equity shareholders (695,167) (555,901)
Net cash used in financing
activities (549,292) (540,226)
Net (decrease)/increase in cash
& cash equivalents 5,152,121 891,702
Cash and cash equivalents at
1 January 3,606,577 2,109,961
Cash and cash equivalents at
30 June 8,758,698 3,001,663
Notes forming part of the interim financial statements
1. Basis of preparation
The interim consolidated financial statements have been prepared
in accordance with International Accounting Standard (IAS) 34,
Interim Financial Reporting. These interim financial statements
have been prepared in accordance with those IFRS standards and
IFRIC interpretations issued and effective or issued and early
adopted as at the time of preparing these statements (July
2013).
These consolidated interim financial statements have been
prepared in accordance with the accounting policies set out below,
which have been consistently applied to all the periods presented.
These accounting policies comply with applicable IFRS standards and
IFRIC interpretations issued and effective at the time of preparing
these statements.
At the date of authorisation of these interim financial
statements, the following Standards and Interpretations which have
not been applied in these financial statements were in issue but
not yet effective (and in some cases had not yet been adopted by
the EU):
IFRS 7 and IAS 32 (Amendment) -"Financial Instrument
presentation"- effective January 2014
IAS 36 (Amendment) -"Impairment of assets"- effective January 2014
IFRIC 21 "Levies" - effective January 2014
IFRS 9 "Financial Instruments" - effective January 2015
Adoption of these Standards and Interpretations is not expected
to have a material impact on the financial statements of the
Company or Group.
The preparation of these interim financial statements in
accordance with IFRS requires the use of certain accounting
estimates. It also requires management to exercise judgement in the
process of applying the Company's accounting policies. The areas
involving a high degree of judgement or complexity, or areas where
the assumptions and estimates are significant to the consolidated
interim financial statements are disclosed in Note 9.
The financial information contained in this report, which has
not been audited, does not constitute statutory accounts as defined
by Section 434 of the Companies Act 2006. The auditors' report for
the 2012 accounts was unqualified and did not contain a statement
under Section 498 (2) or (3) of the Companies Act 2006.
2. Accounting policies
(a) Revenue
Income is recognised as earned in the following way:
Commission - we charge commission on a transaction basis.
Commission rates are fixed according to account type. When a client
instructs us to act as an agent on their behalf (for the purchase
or sale of securities) our commission is recognised as income. Our
commission is deducted from the cash given to us by the client in
order to settle the transaction on the client's behalf or from the
proceeds of the sale in instance where a client sells
securities.
Management fees - these are charged quarterly or bi-annually
depending on account type. Fees are either fixed or are a
percentage of the assets under administration. Fees are accrued up
to the time they are charged using a day count and most recent
asset level basis as appropriate.
Interest income - this is accrued on a day count basis up until
deposits mature and the interest income is received. The deposits
pay a fixed rate of interest. In accordance with FSA requirements,
deposits are only placed with banks that have been approved by our
compliance department.
(b) Basis of consolidation
Subsidiaries are all entities over which the Group has the power
to govern the financial and operating policies generally
accompanying a shareholding of more than half of the voting rights.
The existence and effect of potential voting rights that are
currently exercisable or convertible are considered when assessing
whether the Group controls another entity. Subsidiaries are fully
consolidated from the date on which control is transferred to the
Group. They are deconsolidated from the date on which control
ceases. The group financial statements consolidate the financial
statements of Jarvis Securities plc, Jarvis Investment Management
Limited, JIM Nominees Limited, Galleon Nominees Limited and Dudley
Road Nominees Limited made up to 30 June 2013.
The Group uses the purchase method of accounting for the
acquisition of subsidiaries. The cost of an acquisition is measured
as the fair value of the assets given, equity instruments issued
and liabilities incurred or assumed at the date of exchange.
Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are measured
initially at their fair values at the acquisition date,
irrespective of the extent of any minority interest. The cost of
acquisition over the fair value of the Group's share of
identifiable net assets acquired is recorded as goodwill. If the
cost of acquisition is less than the fair value of the Group's
share of the net assets of the subsidiary acquired, the difference
is recognised in the income statement.
Intra-group sales and profits are eliminated on consolidation
and all sales and profit figures relate to external transactions
only. No profit and loss account is presented for Jarvis Securities
plc as provided by S408 of the Companies Act 2006.
(c) Property, plant and equipment
All property, plant and equipment is shown at cost less
subsequent depreciation and impairment. Cost includes expenditure
that is directly attributable to the acquisition of the items.
Depreciation is provided on cost in equal annual instalments over
the lives of the assets at the following rates:
Leasehold improvements - 33% on cost, or over the lease period
if less than 3 years
Motor vehicles - 15% on cost
Office equipment - 20% on cost
Land & Buildings - Buildings are depreciated at 2% on cost.
Land is not depreciated.
The assets' residual values and useful lives are reviewed, and
adjusted if appropriate, at each balance sheet date. Gains and
losses on disposals are determined by comparing proceeds with
carrying amount. These are included in the income statement.
Impairment reviews of property, plant and equipment are undertaken
if there are indications that the carrying values may not be
recoverable or that the recoverable amounts may be less than the
asset's carrying value.
(d) Intangible assets
Intangible assets are carried at cost less accumulated
amortisation. If acquired as part of a business combination the
initial cost of the intangible asset is the fair value at the
acquisition date. Amortisation is charged to administrative
expenses within the income statement and provided on cost in equal
annual instalments over the lives of the assets at the following
rates:
Databases - 4% on cost
Customer relationships - 7% on cost
Software developments - 33% on cost
Website - 33% on cost
Impairment reviews of intangible assets are undertaken if there
are indications that the carrying values may not be recoverable or
that the recoverable amounts may be less than the asset's carrying
value.
(e) Goodwill
Goodwill represents the excess of the fair value of the
consideration given over the aggregate fair values of the net
identifiable assets of the acquired trade and assets at the date of
acquisition. Goodwill is tested annually for impairment and carried
at cost less accumulated impairment losses. Any negative goodwill
arising is credited to the income statement in full
immediately.
(f) Deferred income tax
Deferred income tax is provided in full, using the liability
method, on differences arising between the tax bases of assets and
liabilities and their carrying amounts in the consolidated
financial statements. The deferred income tax is not accounted for
if it arises from initial recognition of an asset or liability in a
transaction, other than a business combination, that at the time of
the transaction affects neither accounting or taxable profit or
loss. Deferred income tax is determined using tax rates that have
been enacted or substantially enacted by the balance sheet date and
are expected to apply when the related deferred income tax asset is
realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised to the extent that it
is probable that future taxable profit will be available against
which the temporary differences can be utilised.
Deferred income tax is provided on temporary differences arising
on investments in subsidiaries except where the timing of the
reversal of the timing difference is controlled by the Group and it
is probable that the temporary differences will not reverse in the
foreseeable future.
(g) Segmental reporting
A business segment is a group of assets and operations engaged
in providing products or services that are subject to risks and
returns that are different from those of other business segments.
The directors regard the operations of the Group as a single
segment.
(h) Pensions
The group operates a defined contribution pension scheme.
Contributions payable for the year are charged to the income
statement.
(i) Trading balances
Trading balances incurred in the course of executing client
transactions are measured at initial recognition at fair value. In
accordance with market practice, certain balances with clients,
Stock Exchange member firms and other counterparties are included
as trade receivables and payables. The net balance is disclosed
where there is a legal right of set off.
(j) Operating leases and finance leases
Costs in respect of operating leases are charged on a straight
line basis over the lease term in arriving at the profit before
income tax. Where the company has entered into finance leases, the
obligations to the lessor are shown as part of borrowings and the
rights in the corresponding assets are treated in the same way as
owned fixed assets. Leases are regarded as finance leases where
their terms transfer to the lessee substantially all the benefits
and burdens of ownership other than right to legal title.
(k) Investments
The Group classifies its investments in the following
categories: investments held to maturity, investments held for
trading and available-for-sale investments. The classification
depends on the purpose for which the investments were acquired.
Management determines the classification of its investments at
initial recognition and re-evaluates this designation at every
reporting date.
Investments held to maturity
Investments held to maturity are stated at cost. Held to
maturity investments are non-derivative financial assets with fixed
or determinable payments and fixed maturity that an entity has the
positive intention and ability to hold to maturity. Assets in this
category are classified as non-current.
Investments held for trading
Investments held for trading are stated at fair value. An
investment is classified in this category if acquired principally
for the purpose of selling in the short term. Assets in this
category are classified as current.
Available-for-sale investments
Available-for-sale investments are stated at fair value. They
are included in non-current assets unless management intends to
dispose of them within 12 months of the balance sheet date.
Purchases and sales of investments are recognised on the
trade-date - the date on which the Group commits to purchase or
sell the asset. Investments are initially recognised at fair value.
Investments are derecognised when the rights to receive cash flows
from the investments have expired or been transferred and the Group
has transferred substantially all the risks and rewards of
ownership. Realised and unrealised gains and losses arising from
changes in fair value of investments held for trading are included
in the income statement in the period in which they arise.
Unrealised gains and losses arising in changes in the fair value of
available-for-sale investments
are recognised in equity. When investments classified as
available-for-sale are sold or impaired, the accumulated fair value
adjustments are included in the income statement as gains and
losses from investment securities.
The fair value of quoted investments is based on current bid
prices. If the market for an investment is not active, the Group
establishes fair value by using valuation techniques. These include
the use of recent arm's length transactions, reference to other
instruments that are substantially the same, or discounted cash
flow analysis refined to reflect the issuer's specific
circumstances.
The Group assesses at each balance sheet date whether there is
objective evidence that an investment is impaired. In the case of
investments classified as available-for-sale, a significant or
prolonged decline in the fair value below its cost is considered in
determining whether the security is impaired.
Investments in subsidiaries
Investments in subsidiaries are stated at cost less provision
for any impairment in value.
(l) Foreign exchange
The group offers settlement of trades in sterling, US dollars,
euros, Canadian dollars, Australian dollars, South African rand and
Swiss francs. The group does not hold any assets or liabilities
other than in sterling and converts client currency on matching
terms to settlement of trades realising any currency gain or loss
immediately in the income statement. Consequently the group has no
foreign exchange risk.
(m) Share capital
Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction from proceeds,
net of income tax. Where the company purchases its equity share
capital (treasury shares), the consideration paid, including any
directly attributable incremental costs (net of income tax), is
deducted from equity attributable to the company's equity holders
until the shares are cancelled, reissued or disposed of. Where such
shares are subsequently sold or reissued, any consideration
received, net of any directly incremental transaction costs and the
related income tax effects, is included in equity attributable to
the company's equity holders.
(n) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand
deposits, together with other short-term, highly liquid investments
that are readily convertible into known amounts of cash and which
are subject to an insignificant risk of changes in value.
(o) Current income tax
Current income tax assets and/or liabilities comprise those
obligations to, or claims from, fiscal authorities relating to the
current or prior reporting periods, that are unpaid at the balance
sheet date. They are calculated according to the tax rates and tax
laws applicable to the fiscal periods to which they relate based on
the taxable profit for the year.
(p) Dividend distribution
Dividend distribution to the company's shareholders is
recognised as a liability in the group's financial statements in
the period in which interim dividends are notified to shareholders
and final dividends are approved by the company's shareholders.
(q) Share based payments
The Group applies the requirements of IFRS 2 Share-based Payment
and IFRIC 11.
The Group issues equity-settled share-based payments to certain
employees and other personnel. Equity-settled share-based payments
are measured at fair value (excluding the effect of
non-market-based vesting conditions) at the date of grant. The fair
value determined at the grant date of the equity-settled
share-based payments is expensed on a straight-line basis over the
vesting period, based on the Group's estimate of shares that will
eventually vest and adjusted for the effects of non market-based
vesting conditions.
Fair value is measured by use of a Black-Scholes option pricing
model. The expected life used in the model has been adjusted, based
on management's best estimate, for the effects of
non-transferability, exercise restrictions and behavioural
considerations.
3. Segmental information
All of the reported revenue and operational results for the
period derive from the Group's continuing financial services
operations.
4. Income tax charge
Interim period income tax is accrued based on an estimated
average annual effective income tax rate of 23%.
5. Earnings per share
Six months ended 30/6/13 Six months ended 30/6/12
Earnings Weighted Per share Earnings Weighted Per share
average amount average amount
no. of no. of
shares shares
---------------------------- ------------ ------------- ---------- ---------- ------------- ----------
GBP GBP p GBP GBP p
Earnings attributable
to ordinary shareholders 1,170,712 10,636,158 11.01 788,495 10,581,500 7.45
Dilutive effect of options 232,142 187,778
Diluted earnings per
share 1,170,712 10,868,300 10.77 788,495 10,769,278 7.32
6. Dividends
During the interim period dividends totalling 6.5p per ordinary
share were declared and paid.
7. Share capital
During the interim period 123,000 new Ordinary 1p shares in the
company were issued to satisfy the exercise of options by employees
of the Group.
8. Interim measurement
Costs that incur unevenly during the financial year are
anticipated or deferred in the interim report only if it would also
be appropriate to anticipate or defer such costs at the end of the
financial year.
9. Critical accounting estimates and judgements
The Group makes estimates and assumptions concerning the future.
These estimates and judgements are based on historical experience
and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. The resulting
accounting estimates will, by definition, seldom equal the related
actual results. The estimates and assumptions that have a
significant risk of causing a material adjustment to the carrying
amounts of assets within the next financial year relate to
goodwill, intangible assets and the expense of employee
options.
The Group tests annually whether goodwill has suffered any
impairment, in accordance with the accounting policy stated in Note
2 (e). These calculations require the use of estimates.
The Group considers at least annually whether there are
indications that the carrying values of intangible assets may not
be recoverable, or that the recoverable amounts may be less than
the asset's carrying value, in which case an impairment review is
performed. These calculations require the use of estimates.
Employee options are expensed equally in each year from issue to
the date of first exercise. The total cost is calculated on issue
based on the Black Scholes method with a volatility rate of 30% and
a risk free interest rate of 3.75%. It is assumed that all current
employees with options will still qualify for the options at the
exercise date.
10. Related party transactions
The company has a lease with Sion Holdings Limited, a company
controlled by A J Grant by virtue of his majority shareholding, for
the rental of 78 Mount Ephraim, a self-contained office building.
The lease has an annual rental of GBP63,500, being the market rate
on an arm's length basis, and expires on 26 September 2017.
Jarvis Securities plc owed Jarvis Investment Management Limited
GBP133,343 at the period end.
As at 30 June 2013 Sion Securities, the company's immediate and
ultimate parent undertaking, had GBP84,393 (2012: GBP32,673)
deposited with Jarvis Investment Management Limited. Sion Holdings
Limited, a company controlled by A J Grant by virtue of his
majority shareholding, had GBP959 (2012: GBP6,279) deposited with
Jarvis Investment Management Limited at 30 June 2013. Sion Property
Developments Limited, a company controlled by A J Grant by virtue
of his majority shareholding, had no cash (2012: 4,303) deposited
with Jarvis Investment Management Limited at 30 June 2013. Sion
Properties Limited, a company controlled by A J Grant by virtue of
his majority shareholding, had no cash (2012: GBP167,157) deposited
with Jarvis Investment Management Limited at 30 June 2013.
11. Capital commitments
During the period the directors signed contracts committing to
approximately GBP113,000 of capital expenditure exclusive of VAT.
This relates to an upgrade of the IT infrastructure of the
company.
12. Event after the statement of financial position date
The Board propose the payment of a third interim dividend for
the year to 31 December 2013 of 3.5p per Ordinary share to holders
on the register at 21st August 2013 and payable on 12(th) September
2013.
13. Assets impairment review
During the interim period an impairment review of intangible
assets was undertaken. No impairment charge resulted from the
review (2012: nil). In reviewing the value of intangible assets for
impairment, the directors have assumed attrition rates based on the
actual attrition rates of the previous 12 months. These are
calculated individually for each group of acquired clients. A
discount rate of 2.0% has also been assumed. The discounted
cashflow is calculated over a period of 5 years. A 1% decrease in
the attrition rates applied to each group of clients results in a
GBP74 reduction in the value of the intangible assets. A 1%
increase in the assumed discount rate results in a GBP5,790
decrease in the value of the intangible assets. For impairment to
occur a discount rate of 6.4% would need to be assumed.
Available for sale assets have been marked to market where a
market price is readily available. Where the market price has
fallen below the purchase price the loss has been charged to the
income statement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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