RNS Number:5355P
Abbot Group PLC
09 September 2003
9 September 2003
A Solid Foundation for Continued Growth and Prosperity
The Abbot Group is the largest offshore platform drilling contractor in the UK
sector of the North Sea, one of the largest international land drilling
operators outside North America, and a world leader in drilling rig design,
construction and operation.
Abbot Group plc ("Abbot"), announces interim results for the 6 months ended 30
June 2003 as follows:
* Operating profit, excluding goodwill amortisation and exceptional items,
#15.1 million (2002: #13.7 million) Up 10%
* Net interest payable #1.6 million (2002: #4.3 million) Down 62%
* Profit before tax, excluding goodwill amortisation and exceptional items,
#13.4 million (2002: #9.8 million) Up 37%
* Adjusted earnings per share, excluding goodwill amortisation, exceptional
items and discontinued operations, 5.2p (2002: 3.8p) Up 37%
* Interim dividend 1.4p per share (2002: 1.25p) Up 12%
* Net cash flow from operating activities #16.5 million
(2002: #9.9 million) Up 67%
* Net debt #36.6 million (2002: #95.7 million) giving gearing of 25%
Commenting on the results Alasdair Locke, Executive Chairman, said: "Overall the
Group's performance is highly satisfactory and in my view confirms and
reinforces our strategy of developing long term production related contracts in
our targeted markets of the Middle East, Caspian, North and West Africa, Russia,
the UK and mainland Europe.
The recent contract wins combined with our existing operations gives us forward
visibility of revenues for the next several years, which provides a solid
foundation for the continued growth and prosperity of the Group.
In addition we are well placed to compete for further offshore contracts
especially in Russia, the Caspian and West Africa. Similarly, we are pursuing
opportunities onshore in Southern Russia, Western Siberia and also Libya which
is particularly promising now that there are clear indications that sanctions
may be lifted soon.
Current market conditions remain favourable for the Group particularly as the
major oil companies have a need to explore new areas and develop existing
reserves.
These factors combined with the strength of our current portfolio confirm my
stated view that the current year will show a continuing improvement in our
results.
For Further Information:
Alasdair Locke Peter Willetts
Executive Chairman Justin Griffiths
Abbot Group plc Tavistock Communications Limited
Tel: 020 7920 3150 Tel: 020 7920 3150
Chairman's Interim Statement
Overview
The first half of 2003 has seen steady progress in our core drilling business,
with improved utilisation in our land rigs, sustained operations offshore, and
very significant contract wins valued at US $730 million in a number of our key
core markets which provide a high level of revenue visibility for the future.
The Group is now clearly focussed on its drilling and drilling related
businesses following the disposal of OIS to Oceaneering International Services
Ltd which was completed on 16 January 2003, and the subsequent sale of the
Surveys Division, which had been excluded from the original OIS transaction, and
which was concluded in July.
The Group continues to demonstrate a consistently good and improving safety
performance.
Overall the Group's performance is highly satisfactory particularly so when
looked at in the context of fluctuating foreign exchange rates, and the
uncertainties created by the conflict in Iraq.
In my view this confirms and reinforces our strategy of developing long term
production related contracts in our targeted markets of the Middle East,
Caspian, North and West Africa, Russia, the UK and mainland Europe.
I am also pleased to welcome to the Board Robbie Duncan, who was appointed on 1
August 2003 as Non Executive Director, and subsequently to the position of
chairman of the audit committee. Robbie will bring a wealth of experience not
only from his previous position at First Group but also from a wide ranging
career in Aberdeen.
Results
The results for the 6 months ended 30 June 2003 are as follows:
* Operating profit, excluding goodwill amortisation
and exceptional items, #15.1 million (2002: #13.7 million) Up 10%
Operating profit #11.8 million (2002: #11.1 million)
* Net interest payable #1.6 million (2002: #4.3 million) Down 62%
* Profit before tax, excluding goodwill amortisation
and exceptional items, #13.4 million (2002: #9.8 million) Up 37%
Profit before tax #10.1 million (2002: #7.3 million)
* Adjusted earnings per share, excluding goodwill
amortisation, exceptional items and discontinued
operations, 5.2p (2002: 3.8p) Up 37%
Basic earnings per share 3.6p (2002: 2.6p)
* Net cash flow from operating activities #16.5 million
(2002: #9.9 million) Up 67%
* Net debt #36.6 million (2002: #95.7 million) giving gearing of 25%
Dividend
In light of these results and the confidence with which the Directors view the
future, the Board has declared an interim dividend of 1.4p (2002: 1.25p) per
ordinary share, an increase of 12%, which will be paid on 7 November 2003 to
eligible shareholders on the register at 10 October 2003.
Operations
Land Drilling
We now have some 30 land rigs under contract, an increase of 10% from a year
ago, and we are achieving an average utilisation of 80%. This very high
utilisation factor has been brought about by contract wins for a number of rigs.
In Europe, work on geothermal wells in Denmark, Sweden and Germany was secured,
as were two wells for Enagas in Spain. A rig was released by Shell in the
Netherlands early in the year but we have been successful in contracting the
unit to Exxon Mobil in France.
A major milestone was reached in January 2003 with the spudding of the first
well in Western Siberia for Sibneft. This was two months ahead of schedule and
achieved during the coldest part of the winter.
In the Middle East and Africa, further progress was made in a number of
different markets. In Oman, one of our existing rigs had its contract renewed
for a four year period, and two further rigs were put to work in July following
upgrading in Jebel Ali. These latter two rigs were moved to the Middle East
following the closure of our Algerian operation. These contracts brought the
total number of KCA Deutag rigs in Oman to eight with the new and revised
contracts having a value of some US $56 million.
In Libya, Wintershall awarded the company a one year contract worth US $7
million to augment the continuing operation of the three land rigs for Waha and
the contract for Agip, which was also extended during the period.
Nigerian operations continued albeit with the early release of a rig by Shell.
We have avoided, to a large degree, the labour unrest experienced by some of the
offshore operators in Nigeria, and our remaining operations for Shell, Agip and
Panocean continue to perform satisfactorily. There are good prospects for
further work for the released rig in the country.
In Iran, KCA Deutag is contracted on four land rigs and manages two jack-ups in
the Persian Gulf. Technical and logistical difficulties in respect of two of the
land rigs have resulted in significantly lower returns for these units. Overall
our activities in Iran remain profitable, albeit at a level below our normal
operating margins. Whilst some issues remain in respect to the construction of
these two rigs, we are confident that we have made sufficient provision in
respect of these matters.
Iran remains, in the long term, an attractive international market and,
therefore, we remain committed to building on our strong business presence
there.
Our rig situated on Agip/KCO's artificial Island in Kazakhstan continues to
operate satisfactorily. Operations continue in Brunei with one rig, and in
Pakistan where three rigs continue to operate for BP (2) and Petronas (l). Shell
released one rig in Thailand following the completion of its current drilling
programme. We anticipate further work for the rig in that country.
Offshore Drilling
Offshore operations in the North Sea and Azerbaijan continued at a highly
satisfactory level. A key element for North Sea Operations is safety
performance, and KCA Deutag has performed beyond industry norms in this regard.
When we took over the BP operations at the time of the Deutag acquisition in
2001, performance in this area was far from satisfactory. However, with
extensive management effort, this operation is now an exemplar for others,
achieving zero injurious incidents during the half year.
During the period under review, the North Sea saw further change in our client
base. Apache Corporation acquired the Forties Field from BP, which was another
significant transition of ownership in the same mould as Talisman's and CNR's
entry to the North Sea. As the major production drilling contractor on the UKCS,
we view the entry of the independents to the North Sea as a positive and very
necessary new phase. We believe that we will see the benefits of increased
investment in production drilling activity in both the short and medium terms.
The breadth of our operations leaves us uniquely placed to meet the challenges
of the maturing North Sea, both in terms of cost reduction and managing
intermittent operations as well as associated challenges of HSE performance and
personnel retention. We are already engaged in a number of innovative dialogues
with our clients regarding their requirements for drilling and well
intervention.
The offshore division also had a number of contracts renewed or extended
including BP and Chevron Texaco, the latter being part of a competitive tender
exercise.
The long term investment which the Group has made in the Caspian area was
rewarded in the first half of 2003 with the award of the Central Azeri, Shah
Deniz, and East and West Azeri Operations contracts by BP on behalf of
Azerbaijan International Operating Company ("AIOC") in Azerbaijan. These
contract wins, valued at US $300 million, provide the Group with a series of
operational start-ups commencing in 2004 through to 2006. This presents the
Group with significant forward visibility of revenues through the primary
contract period to 2010.
The investment in the establishment of the Houston office also bore fruit with
the company being awarded a design build and operate contract from
Chevron-Texaco for the Benguela Belize Field Development in Angola valued at US
$120 million. This office is also the focus for engineering work for Exxon
Mobil's Sakhalin I Project in the Russian Far East.
The company also recommenced operations on the Molikpaq submersible platform
operated by a subsidiary of Shell in Sakhalin island, which is in addition to
Design Engineering Study work being carried out in London, relating to a further
two platforms. This was a precursor to a major contract award which we announced
last week, valued at US $250 million over seven years, and will see operations
on two new platforms commence in 2005 and 2006.
The offshore division increased its prospects of further work by continuing to
carry out engineering work on Phase III for AIOC in Azerbaijan, as well as a
number of other projects which could provide valuable opportunities for further
drilling contracts.
Engineering
The engineering function, which acts in support of our principal operations,
performed at higher activity levels than last year with the increase largely
relating to the Azerbaijan contract wins, and with improved margins.
The Group's Bentec subsidiary has experienced a variable first half with the
level of orders initially somewhat lower than anticipated. However, there has
been some pick up towards the end of the period which should result in an
improved performance in the second half. As previously reported in March 2003 a
major restructuring is underway at Bentec which has, regrettably, resulted in
some 50 redundancies. As a result of this restructuring the business is now
focussed on marketing and the manufacture of higher value products, with a
significant level of lower value activities being outsourced, thereby creating
an improving performance and a centre of excellence in Bad Bentheim. In this
regard, progress has been made in penetrating the US market for electro
mechanical products and also the setting up of a more general facility in
Kazakhstan, which should provide significant benefits for the future.
Outlook
The recent contract wins combined with our existing operations gives us forward
visibility of revenues for the next several years, which provides a solid
foundation for the continued growth and prosperity of the Group.
In addition we are well placed to compete for further offshore contracts
especially in Russia, the Caspian and West Africa. Similarly, we are pursuing
opportunities onshore in Southern Russia, Western Siberia and also Libya which
is particularly promising now that there are clear indications that sanctions
may be lifted soon.
Current market conditions remain favourable for the Group particularly as the
major oil companies have a need to explore new areas and develop existing
reserves.
These factors combined with the strength of our current portfolio confirm my
stated view that the current year will show a continuing improvement in our
results.
Alasdair Locke
Executive Chairman
9 September 2003
Consolidated Profit and Loss Account for the 6 months ended 30 June 2003
Note Before goodwill Goodwill
amortisation amortisation
and exceptional and exceptional
items items Total result Total result Total result
Unaudited Unaudited Unaudited Unaudited Audited
6 months to 6 months to 6 months to 6 months to 12 months to
30 June 2003 30 June 2003 30 June 2003 30 June 2002 31 Dec 2002
#000 #000 #000 #000 #000
-------------------------------------------------------------------------------------------------------
Group turnover
Continuing
operations 186,419 - 186,419 182,974 379,159
Discontinued
operations - - - 29,069 57,926
-------------------------------------------------------------------------------------------------------
2 186,419 - 186,419 212,043 437,085
Cost of sales (152,669) - (152,669) (179,330) (370,521)
-------------------------------------------------------------------------------------------------------
Gross profit 33,750 - 33,750 32,713 66,564
Operating
expenses
- excluding
exceptionals (18,681) (1,799) (20,480) (20,459) (39,226)
- exceptional
items 2 - (1,467) (1,467) (1,143) (2,545)
-------------------------------------------------------------------------------------------------------
Group
operating
profit 2 15,069 (3,266) 11,803 11,111 24,793
----------------------------------------------------------------------
Continuing
operations 15,069 (3,266) 11,803 11,165 25,959
Discontinued
operations - - - (54) (1,166)
----------------------------------------------------------------------
Share of operating
profit in
- joint
venture
(discontinued
operations) - - - 492 115
- associates
(continuing
operations) (59) - (59) (24) 87
-------------------------------------------------------------------------------------------------------
15,010 (3,266) 11,744 11,579 24,995
Profit on sale
of operations
(discontinued
operations) - - - - 46,074
Provision for
loss on
impending sale
of business
(discontinued
operations) - - - - (7,500)
Provision for
loss on
termination of
operations
(discontinued
operations) - - - - (2,250)
-------------------------------------------------------------------------------------------------------
15,010 (3,266) 11,744 11,579 61,319
Net interest
payable (1,650) - (1,650) (4,323) (11,088)
-------------------------------------------------------------------------------------------------------
Profit on
ordinary
activities
before
taxation 13,360 (3,266) 10,094 7,256 50,231
Taxation on
profit on
ordinary
activities 3 (4,275) 469 (3,806) (2,632) (4,960)
-------------------------------------------------------------------------------------------------------
Profit on
ordinary
activities
after taxation 9,085 (2,797) 6,288 4,624 45,271
Dividends paid
and proposed 4 (2,462) - (2,462) (2,198) (7,033)
-------------------------------------------------------------------------------------------------------
Retained
profit for the
period 6 6,623 (2,797) 3,826 2,426 38,238
=======================================================================================================
Earnings per
ordinary share
Basic 5 3.6p 2.6p 25.8p
Diluted 5 3.6p 2.6p 25.8p
Adjusted,
basic -
excluding
goodwill
amortisation,
exceptional
items and
discontinued
operations 5 5.2p 3.8p 9.7p
Statement of Group Total Recognised Gains and Losses 30 June 2003
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
30 June 2003 30 June 2002 31 Dec 2002
#000 #000 #000
Profit for the
period 6,288 4,624 45,271
Exchange
adjustments
offset in
reserves 8,493 7,838 6,022
Tax on exchange
adjustments
offset in
reserves - - (363)
----------------------------------------------------------------------------------------
Total recognised
gains for the
period 14,781 12,462 50,930
Prior period
adjustment - (2,385) (2,385)
----------------------------------------------------------------------------------------
Total recognised
gains and losses
since last annual
report 14,781 10,077 48,545
========================================================================================
Consolidated Balance Sheet 30 June 2003
Note Unaudited Unaudited Audited
30 June 30 June 31 Dec
2003 2002 2002
#000 #000 #000
--------------------------------------------------------------------------------
Fixed assets
Goodwill 66,915 50,382 64,142
Intangible assets - 472 -
Tangible assets 137,085 144,507 140,992
Investments 896 6,232 603
--------------------------------------------------------------------------------
204,896 201,593 205,737
--------------------------------------------------------------------------------
Current assets
Investment held for resale 5,414 5,290 5,585
Stocks 19,848 17,764 18,039
Debtors 113,959 107,965 123,915
Cash at bank and in hand 10,253 7,731 9,706
--------------------------------------------------------------------------------
149,474 138,750 157,245
Creditors:
Amounts falling due within one
year (93,738) (103,287) (113,915)
--------------------------------------------------------------------------------
Net current assets 55,736 35,463 43,330
--------------------------------------------------------------------------------
Total assets less current
liabilities 260,632 237,056 249,067
Creditors:
Amounts falling due after more
than one year (55,071) (100,967) (59,066)
Provision for liabilities and
charges (57,280) (37,950) (58,256)
--------------------------------------------------------------------------------
Net assets 148,281 98,139 131,745
================================================================================
Capital and reserves
Called-up share capital 6 26,375 26,375 26,375
Share premium account 6 90,123 90,123 90,123
Profit and loss account 6 30,907 (19,359) 14,274
--------------------------------------------------------------------------------
Total equity shareholders'
funds 147,405 97,139 130,772
Equity minority interests 876 1,000 973
--------------------------------------------------------------------------------
148,281 98,139 131,745
================================================================================
Consolidated Cash Flow Statement for the 6 months ended 30 June 2003
Reconciliation of operating profit to Unaudited Unaudited Audited
operating cash flows
6 months 6 months 12 months
to to to
30 June 30 June 31 Dec
2003 2002 2002
#000 #000 #000
--------------------------------------------------------------------------------
Operating profit 11,803 11,111 24,793
Goodwill amortisation 1,799 1,445 3,758
Depreciation and amortisation 9,927 8,611 17,494
Loss (profit) on sale of
tangible fixed assets 134 (325) (1,245)
(Increase) in stocks (2,519) (1,279) (3,324)
(Increase) decrease in debtors (3,146) 3,091 (12,913)
Increase (decrease) in
creditors 1,688 (13,532) (10,725)
(Decrease) in deferred income (3,453) (1,278) (3,194)
Increase in provisions for
liabilities and charges 1,061 3,391 5,589
Exchange and other non-cash
movements (810) (1,326) (2,973)
--------------------------------------------------------------------------------
Net cash inflow from operating
activities 16,484 9,909 17,260
================================================================================
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
30 June 30 June 31 Dec
Cash flow statement Note 2003 2002 2002
#000 #000 #000
--------------------------------------------------------------------------------
Net cash inflow from operating
activities 16,484 9,909 17,260
Returns on investment and
servicing of finance (5,677) (3,527) (6,044)
Taxation (2,178) (3,203) (8,907)
Capital expenditure and
financial investment (10,482) (21,302) (23,478)
Acquisition and disposals 14,998 10,025 65,149
Equity dividends paid (4,829) (4,220) (6,418)
--------------------------------------------------------------------------------
Net cash inflow (outflow)
before financing 8,316 (12,318) 37,562
--------------------------------------------------------------------------------
Financing
Increase (decrease) in debt 1,175 (3,261) (46,521)
--------------------------------------------------------------------------------
Net cash inflow (outflow) from
financing 1,175 (3,261) (46,521)
--------------------------------------------------------------------------------
Increase (decrease) in cash 7 9,491 (15,579) (8,959)
================================================================================
Notes to Accounts 30 June 2003
1 Basis of preparation
These interim financial statements have been prepared on the basis of the
accounting policies set out in the Group's 2002 statutory accounts.
The comparative figures for the year ended 31 December 2002 do not constitute
statutory accounts for the purpose of Section 240 of the Companies Act 1985 and
have been extracted from the Group's published accounts, a copy of which has
been delivered to the Registrar of Companies. The report of the auditors of
these accounts was unqualified and did not contain a statement under either
Section 237(2) or Section 237(3) of the Companies Act 1985.
2 Segmental analysis
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
30 June 30 June 31 Dec
2003 2002 2002
#000 #000 #000
--------------------------------------------------------------------------------
Turnover
Drilling - offshore and land
drilling activities (continuing
operations) 138,571 129,728 280,843
Drilling - engineering and other
services (continuing operations) 47,604 52,794 97,733
Inspection (discontinued
operations) - 29,069 57,926
Corporate and other (continuing
operations) 244 452 583
--------------------------------------------------------------------------------
186,419 212,043 437,085
================================================================================
Operating profit before goodwill
amortisation
Drilling - offshore and land
drilling activities (continuing
operations) 12,810 11,548 29,713
Drilling - engineering and other
services (continuing operations) 3,086 2,375 3,037
Inspection (discontinued
operations) - 279 (691)
Corporate and other (continuing
operations) (827) (503) (963)
--------------------------------------------------------------------------------
Total before exceptional items 15,069 13,699 31,096
Exceptional items (1,467)* (1,143) (2,545)
--------------------------------------------------------------------------------
Total after exceptional items 13,602 12,556 28,551
================================================================================
* Drilling division: exceptional items - reorganisation and restructuring costs
in respect of DEUTAG's engineering subsidiary, Bentec.
Operating profit
Drilling (continuing operations) 12,630 11,668 26,922
Inspection (discontinued
operations) - (54) (1,166)
Corporate and other (continuing
operations) (827) (503) (963)
--------------------------------------------------------------------------------
11,803 11,111 24,793
================================================================================
3 Taxation
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
30 June 2003 30 June 2002 31 Dec 2002
#000 #000 #000
--------------------------------------------------------------------------------
Current period 3,806 2,568 4,678
Adjustment relating to prior
periods - 64 282
--------------------------------------------------------------------------------
3,806 2,632 4,960
================================================================================
The charge for taxation is calculated by reference to the pre tax profits of the
Group, excluding goodwill amortisation, and applying the effective rates of
taxation expected to apply to profits earned in the main countries in which the
Group operates.
4 Dividends
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
30 June 30 June 31 Dec
2003 2002 2002
#000 #000 #000
--------------------------------------------------------------------------------
Dividends on ordinary
shares
- Proposed interim dividend
1.40p (2002: 1.25p) 2,462 2,198 2,198
- 2002 final dividend 2.75p - - 4,835
--------------------------------------------------------------------------------
2,462 2,198 7,033
================================================================================
5 Earnings per ordinary share
The calculations of earnings per share are based on the following profits and
numbers of shares:
Basic Diluted Adjusted
basic
30 June 2003 30 June 2003 30 June 2003
#000 #000 #000
-------------------------------------------------------------------------------
Profit for the financial period 6,288 6,288 6,288
Goodwill amortisation - - 1,799
Operating expenses - exceptional
items, net of any taxation
effects - - 998
-------------------------------------------------------------------------------
6,288 6,288 9,085
-------------------------------------------------------------------------------
Weighted average number of shares 175,836,246 175,836,246 175,836,246
-------------------------------------------------------------------------------
Earnings per share 3.6p 3.6p 5.2p
===============================================================================
The 30 June 2002 adjusted earnings per share figure of 3.8p (previously 4.0p)
has been restated to exclude discontinued operations.
6 Called-up share capital and reserves
Ordinary Share Profit and
share capital premium loss account
#000 #000 #000
--------------------------------------------------------------------------------
At 1 January 2003 26,375 90,123 14,274
Exchange movement on investment in
overseas subsidiaries - - 8,493
Retained profit for the period - - 3,826
Goodwill written back on disposal of
subsidiary - - 4,314
--------------------------------------------------------------------------------
At 30 June 2003 26,375 90,123 30,907
================================================================================
7 Reconciliation of net cash flow to movement in net debt
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
30 June 2003 30 June 2002 31 Dec 2002
#000 #000 #000
--------------------------------------------------------------------------------
Increase (decrease) in net cash in
the period 9,491 (15,579) (8,959)
(Increase) decrease in loans and
finance leases (1,175) 3,261 46,521
--------------------------------------------------------------------------------
Change in net debt resulting from
cash flows 8,316 (12,318) 37,562
Finance leases transferred on sale
of subsidiary 40 - -
Exchange movements 694 202 388
--------------------------------------------------------------------------------
Movement in net debt in the period 9,050 (12,116) 37,950
Net debt at beginning of period (45,647) (83,597) (83,597)
--------------------------------------------------------------------------------
Net debt at end of period (36,597) (95,713) (45,647)
================================================================================
8 Analysis of net debt
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
30 June 2003 30 June 2002 31 Dec 2002
#000 #000 #000
------------------------------------------------------------------------------
Cash in hand and at bank 10,253 7,731 9,706
Overdrafts (3,200) (16,789) (12,144)
------------------------------------------------------------------------------
7,053 (9,058) (2,438)
Debt due after 1 year (34,849) (80,105) (36,669)
Debt due within 1 year (8,801) (6,500) (6,500)
Finance leases - (50) (40)
------------------------------------------------------------------------------
(36,597) (95,713) (45,647)
==============================================================================
Copies of this statement are available from The Secretary, Abbot Group plc,
Minto Drive, Altens, Aberdeen AB12 3LW.
INDEPENDENT REVIEW REPORT TO ABBOT GROUP PLC
We have been instructed by the company to review the financial information set
out on pages 9 to 14. 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 Listing
Rules of the Financial Services Authority, 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 group 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. 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 United Kingdom Auditing Standards and therefore
provides a lower level of assurance than an audit. Accordingly, we do not
express an audit opinion on the financial information. This report, including
the conclusion, has been prepared for and only for the company for the purpose
of the Listing Rules of the Financial Services Authority and for no other
purpose. We do not, in producing this report, accept or assume responsibility
for any other purpose or to any other person to whom this report is shown or
into whose hands it may come save where expressly agreed by our prior consent in
writing.
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 2003.
PricewaterhouseCoopers LLP
Chartered Accountants
Notes:
(a) The maintenance and integrity of the Abbot Group plc website is the
responsibility of the directors; the work carried out by the auditors does not
involve consideration of these matters and, accordingly, the auditors accept no
responsibility for any changes that may have occurred to the interim report
since it was initially presented on the website.
(b) Legislation in the United Kingdom governing the preparation and
dissemination of financial information may differ from legislation in other
jurisdictions.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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