TIDMCB.
RNS Number : 8758O
CBG Group Plc
16 March 2009
16 MARCH 2009
CBG GROUP PLC
(AIM: CB.)
PRELIMINARY ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2008
CBG Group plc ("CBG" or the "Group"), the Manchester based insurance broker and
financial services specialist, is pleased to announce full year results for the
year to 31 December 2008.
HIGHLIGHTS
* 49.9% increase in revenue to GBP11,148,000 (2007: GBP7,436,000);
* 21.2% increase in adjusted * EBITDA to GBP2,602,000 (2007: GBP2,146,000);
* 17.5 % rise in adjusted * pre-tax profits to GBP2,246,000 (2007: GBP1,912,000);
* 7.2% increase in diluted adjusted * earnings per share to 11.00p (2007: 10.26p);
* 10.0% increase in final dividend proposed to 0.66p per share (2007: 0.6p);
* Two Acquisitions, Barclay Brown and EDN were completed in the year and fully
integrated;
* Successfully raised GBP1.65m via oversubscribed placing at 120p; and
* New head office with over 100 staff transferred to Southmoor House, Manchester
resulting in significant cost savings and increased cross selling opportunities.
* Adjusted to add back exceptional operating expenses, amortisation, negative
goodwill credited and share option charges.
Laurie Turnbull, Chairman of CBG said: "We are pleased to announce another set
of very impressive results, especially in the current economic climate. CBG has,
for the past six years, demonstrated continual growth organically and through
acquisition. Last year we successfully completed two acquisitions in the North
West and we're continuing to look for further opportunities.
"We have a solid business model of organic growth augmenting a selective
acquisition program. This enables us to deliver a complete service to our
clients including insurance broking, financial services and healthcare. Our
management teams are dedicated to enhancing shareholder and customer value.
Having invested in infrastructure and technology we are now in a solid position
to take the business forward across the Group and delivered another year of
excellent results.
=--ENDS---
Enquiries:
CBG Group plc
0161 920 0200
Mike Askew, Group Managing Director
07720 400356
Laurie Turnbull, Chairman 07768 641141
www.cbg-group.co.uk
Bishopsgate Communications Ltd 020 7562 3350
Nick Rome
Gemma O'Hara
Zeus Capital
0161 831 1512
Alex Clarkson
Bobby Fletcher
CHAIRMAN'S STATEMENT
I am pleased to report another year of improved performance as our robust
business model matures and our strategy of build, invest and grow has delivered
impressive results for the year.
I am immensely proud of our staff who have again raised the bar, got on with
their job and delivered an impressive result for the year despite the
exceptional market conditions. We remain focused on improving our service and
controlling our costs with efficient working conditions and technology
improvements across our businesses. While our clients and competitors are
finding business conditions difficult, we believe that our continued
development, which is supplemental to our integration of acquisitions ensures
that we continue to be at the forefront of delivering value to our shareholders
and clients.
The Group has delivered a 21.2% increase in adjusted * EBITDA to GBP2,602,000
(2007: GBP2,146,000) and revenue is up with a 49.9% increase to GBP11,148,000
(2007: GBP7,436,000). Shareholders are, with good reason, particularly
interested in growth in earnings per share, and the increase in our diluted
adjusted * earnings per share is an impressive 7.2% to 11.00p (2007: 10.26p).
This is particularly impressive when taken into account with our increased
shares in issue following the successful and oversubscribed share placing in
November of 1,375,000 shares (raising GBP1,650,000 at GBP1.20 per share).
Adjusted * pre-tax profits were again increased by double digits with a 17.5%
increase to GBP2,246,000.
During the year the group carried out a significant reorganisation incurring
expenditure of GBP466,000 considered outside the normal course of business.
Accounting treatments have meant that a further GBP675,000 (2007: GBP242,000)
has been charged to the income and expenditure accounts for the amortisation of
customer related intangible assets. Due to the exceptional nature of these costs
we have concentrated our review on the adjusted earnings figures which give a
better appreciation and presentation of the underlying business.
+--------------------------------------------+-----------+-----------+-----------+
| | 2008 | 2007 | % |
+ +-----------+-----------+-----------+
| | GBP'000 | GBP'000 | Growth |
+--------------------------------------------+--------------------------------------------+-----------+-----------+
| Revenue | 11,148 | 7,436 | 49.9% |
+--------------------------------------------+-----------+-----------+-----------+
| Adjusted * EBITDA | 2,602 | 2,146 | 21.2% |
+--------------------------------------------+-----------+-----------+-----------+
| Adjusted * pre tax profit | 2,246 | 1,912 | 17.5% |
+--------------------------------------------+-----------+-----------+-----------+
| Adjusted * earnings per share - diluted | 11.00 | 10.26 | 7.2% |
| (pence) | | | |
+--------------------------------------------+-----------+-----------+-----------+
| Earnings per share - diluted (pence) | 4.26 | 9.31 | -54.2% |
+--------------------------------------------+-----------+-----------+-----------+
* Adjusted to add back exceptional operating expenses, amortisation, negative
goodwill credited and share option charges.
Board and staff
I would like to take this opportunity to thank all our staff for their diligence
and work ethic which has become synonymous with CBG and due to their dedication
I am delighted to report our sixth consecutive year of impressive growth in our
results.
I would also like to record my thanks to all my fellow Board members and the
Directors of our subsidiary companies, who have led from the front in 2008 and
who, without exception, were dedicated to ensuring the success of our Group. I
would like to record a special thanks to Martin Lewis who had until recently
been a main Board Director and indeed one of the founders of the Group. Martin
had a particularly difficult year in 2008 with a severe back condition that
resulted in the need for an operation. This unfortunately has not proved to be
as successful as had hoped and his debilitating condition continues. Under the
circumstances he tendered his resignation from the Board and we hope that we
will soon be able to see him return to the business.
Dividends
It is proposed to increase the final dividend by 10% to 0.66p per share (2007:
0.6p) in respect of the year ended 31 December 2008, which, subject to
shareholder approval, will be paid on 29 May 2009 to all shareholders on the
register on 1 May 2009.
Our dividend policy is to pay a nominal final dividend recognising the
acquisitive nature of the Group and the need to retain most of the free cash
within the business to grow and develop. We recognise the fact that the
financial markets have been devastated by the virtual collapse of the banking
system and in our view shareholders should have some return from the success of
their Group.
Acquisitions
Our acquisition strategy of building a strong platform in the North West has
resulted in us completing two selected acquisitions during the period. The
first, Barclay Brown, a business dedicated to providing Insurance broking
services was acquired with its Manchester hub and three regional offices. We
integrated the business and reduced the cost base by closing their main local
office and transferring staff to our Manchester operation, and similarly with
their offices in Mold and Preston where we transferred business to our Group
operations. Our second acquisition was EDN, a provider of general insurance
broking services and financial services which we reorganised by transferring the
financial services business to Group operations from Oldham.
As a result of these acquisitions our senior management team was further
enhanced. We are delighted to welcome two excellent teams of people who have
already demonstrated their desires, ambitions and skills to our Group.
Our acquisition activity has enhanced the scale and breadth of our activities,
and we continue to look for further additions. We are prudent in spending
shareholders' money and we retain a discipline that acquisitions must add value
and have the appropriate profile to improve our business at several levels.
A further enhancement to our business operations has been made. From the 1st of
January this year we operate from a new head office at Southmoor House,
Manchester where we have centralised three of our Manchester offices to bring
about further efficiencies in our business.
Strategy
CBG is dedicated to remain at the forefront of delivering value to its
shareholders by providing a first class and competitive service to our
clients. The dynamics continue to change in the insurance broking market where
we have seen a number of larger consolidators in the private and public sector
develop over the last few years. This activity would appear to have slowed as
margins come under pressure from the suppliers and acquisition prices driven up.
Whilst we do not enjoy the substantial improved commissions that the larger
consolidators obtain we compensate by efficient and prudent management. Our
suppliers recognise that our growth is built carefully and selectively in
partnership and they look to our record and to the future. This differential is
important as we further strengthen our position and grow the gap between
ourselves and the smaller regional brokers.
We will continue to be selective in our acquisition strategy and look for value,
simultaneously working on our cost base and improvements in margin. Our sales
and service teams in insurance broking and financial services work closely
together to provide a complete solution to our clients. The cross selling of
insurance, financial services and healthcare products provides us with
considerable growth potential which, aided by centralisation, remains a
cornerstone of our growth strategy.
Outlook
We are well prepared to drive our business forward as a result of the
investments we have made across the board in the last year. The investment in
facilities and technology as well as the integration of our businesses has
helped further grow the efficiency of the organisation. At all levels our teams
of staff are dedicated to capture growth both internally and from further
acquisitions. There is no doubt that 2009 will continue to see changes in the
sector and in UK businesses, however, we remain well positioned to capitalise
and deliver enhanced value to our clients and shareholders. We have clear
objectives to drive our business forward, raising the bar at every opportunity
remaining vigilant and focused on ensuring that CBG continues, as it has done
for over six years, in growing and delivering value.
We live and work in interesting times and situations evolve and change as do
market conditions, reporting our results for 2008 one cannot help but reflect on
the changes from the commencement of the year which are totally different from
the way it ended. In CBG we responded to the changes and maintained our drive to
excel. We are well placed to continue to deliver value to our clients and
shareholders and look forward not with trepidation but with an appetite to notch
the bar up again.
Laurie Turnbull
Chairman
16 March 2009
GROUP MANAGING DIRECTOR'S REVIEW
CBG has had a successful 2008, both in terms of another strong set of results
but also in carrying through our acquisition strategy and reducing our overall
cost base for the future. Our business model is sound and we continue to
maintain tight financial management.
Looking ahead, trading conditions and the economy as a whole will no doubt
remain volatile. However, we are confident of delivering sustainable profits and
I see exciting opportunities to continue to build and grow CBG.
Group Performance
The Group has recorded a 21.2% rise in EBITDA, adjusted to add back exceptional
operating expenses, amortisation, negative goodwill credited and share option
charges and a 7.2% rise in diluted earnings per share, adjusted to add back
exceptional operating expenses, amortisation, negative goodwill credited and
share option charges. Our focus remains on ensuring that our core businesses
perform and deliver growth, to complement the benefits brought in via our
acquisition programme.
We continually examine our business in order to identify improvements that can
be made, reviewing and implementing change as required, and we have to thank our
staff who have had much asked of them during the year and have responded
admirably.
Acquisitions
On 18 January 2008 we acquired Barclay Brown Holdings Limited and its trading
subsidiaries ("Barclay Brown"), a provider of general insurance broking
services, with offices in Manchester, Mold, Preston and Waterfoot. Since
acquisition all areas of the business have been integrated and three of the
existing offices closed with the operations transferred to other offices of the
Group.
On 4 April 2008 we acquired Howgud Limited and its trading subsidiaries, EDN
(Insurance Services) Ltd, E Davies (Northern) Ltd and EDN (Financial Services)
Ltd ("EDN"). The financial services business was integrated within our existing
operations within days of completion and immediately traded under the CBG brand.
The acquisitions detailed have been integrated rapidly in order to reduce costs
and maximise opportunities more quickly. Both businesses are trading in line
with our expectations.
Further details of acquisitions are given in note six in this preliminary
announcement.
Business Operations
Each of our core trading divisions continue to operate with dedicated Boards who
have responsibility for the day to day management of their division and are
accountable for the financial performance to the main Board.
A key strength to overall performance continues to be our highly skilled Group
finance function. We pride ourselves in the controls we have in place, with the
quality and timeliness of the management information to allow us to monitor and
manage our business sectors effectively. As a centralised function it also
allows us to evaluate and manage our corporate governance obligations.
A centralised ICT function coupled with a continually developing CRM capability
enables us to focus and specialise in each trading sector but to also identify
and take advantage of the synergies and selling opportunities across the Group,
which is a vital key to our ongoing success.
Financial information on the Group's three core operating divisions is given in
note two to this preliminary announcement.
> Insurance
The Group's insurance broking services are delivered through CBG Insurance
Brokers Limited and CBG London Limited; together the Insurance Broking division.
The Insurance Broking operating division is a provider of general insurance
broking services to corporate, SME and private individuals. Much work has been
concluded during 2008 to further segment this Division thereby allowing a more
focused, cost effective client offering, without detracting from our strengths
of a broad based bespoke solution.
CBG Insurance Brokers Limited will continue to develop its position as insurance
advisors to the larger corporate businesses and our Corporate Transactions Team
allows us to attract an increasing number of existing acquisitive clients and
their professional advisors.
We have made much progress in the development of a technologically led offering
to the SME sector allowing highly competitive premiums on a least cost basis
enabling CBG to maintain our market position, but at higher margins.
As part of our continual review of our business the private client offering has
been split between the transactional client and the high and mid net worth
clients. At the transactional end of the business it is very much technology led
whereas our Private Client Team, which also now incorporates our CBG Sports
business are able to offer far more sophisticated offerings due to the enhanced
focus.
The general insurance business continues to operate in an environment where
market rates remain weak. There does however appear to be the signs of some
hardening of rates as would be expected on the basis of previous pricing cycles.
Nevertheless, we remain cautious in our budgeting as undoubtedly it will take
some time to see these early indicators develop into an overall market change.
> Financial Services
The Group's financial services offering is delivered through CBG Financial
Services Limited.
At the end of 2008 we merged our Healthcare business with that of Benefit
Consulting so that the Financial Services division operates two distinct areas
in Private Client and Benefit Solutions.
The consolidation within Benefit Solutions has allowed us to reduce
administrative costs and sharpen the focus of our cross selling opportunities
between the Healthcare and Benefit Consulting executives.
Our Private Client offering sets us apart from the conventional financial
adviser as we generally work on an agreed fee basis as our focus is on providing
a holistic financial planning solution rather than selling products. This
distinction has helped sustain our position through the challenges of the
current investment climate albeit we have reduced operating costs and scaled
back heavily on mortgage advice.
> Exius
The Group's premium finance division operates through Exius Limited.
Exius continues to provide in-house finance capability through our committed
banking lines, principally insurance premium finance, to a significant
percentage of our Insurance Broking client base. This business continues to grow
as our client base expands, both organically and as further acquisitions are
added, and our revenues increase.
Organisational Consolidation
2008 has seen the implementation of two key integration projects. Firstly during
the autumn we were able to close our Blackpool and Preston offices bringing
these operations into our Poulton le Fylde office.
In January 2009, an even more ambitious consolidation occurred with our three
Manchester offices relocating to a modern specifically designed open plan head
office at Southmoor House.
Both projects saw us exit existing premises at nil or minimal cost and the
benefits of bringing larger teams together has allowed us to restructure and
reduce costs as well as develop enhanced cross selling opportunities.
Compliance
Compliance is a significant and increasingly demanding obligation across the
core areas of the Group through the single regulatory body of the Financial
Services Authority (FSA). We ensure uniformity across all areas of the business
by applying in depth knowledge of the regulatory obligations.
Employees
The Board and I wish yet again to express our thanks to all our staff, as they
are so critical to our business. Their contribution throughout the year and
their hard work is a key to our success and is very much valued by us.
CBG's commitment as an accredited Investor in People is undiminished and has
seen our accreditation renewed in February 2009. The key drivers of IiP are
fundamental to us and allow us to attract, retain and encourage development of
our people, sustaining a motivated highly skilled team.
All of our qualifying employees are members of our Enterprise Management
Incentive Scheme, a scheme that has Group performance triggers attached to
ensure all efforts are focused on the achievement of Group objectives.
Outlook
As with any business operating in the current economic climate CBG recognises
the many challenges it faces. However, much work has been done and continues to
be done in ensuring our cost base is efficient and our sales efforts focused and
energetic.
We remain responsive to the changes we will face from both within and outside
our business, but have complete confidence in the robustness of our core
activities and our operational and managerial capabilities to deliver that
strategy.
Mike Askew
Group Managing Director
16 March 2009
Consolidated Income Statement
Year ended 31 December 2008
+------------------------------------+-----+----------+----------+----------+----------+
| | | 2008 | | 2007 |
+ +----------------+----------+ +----------+
| | Note | | | GBP'000 |
| | | GBP'000 | | |
+ +------------------------------------------+----------+ +----------+
| | | | | |
+------------------------------------+------------------------------------------+----------+----------+----------+
| | | | | |
+------------------------------------+----------------+----------+----------+----------+
| Revenue | 2 | | | |
+------------------------------------------+----------+----------+----------+----------+
| Continuing operations | | 8,576 | | 7,436 |
+------------------------------------------+----------+----------+----------+----------+
| Acquisitions | | 2,572 | | - |
+------------------------------------------+----------+----------+----------+----------+
| | | 11,148 | | 7,436 |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+ +----------+ +----------+
| Net administrative expenses | | (9,873) | | (5,722) |
+------------------------------------------+----------+----------+----------+----------+
| | | | | | |
+------------------------------------+-----+----------+----------+----------+----------+
| Operating profit before amortisation, exceptional | | | |
| operating expenses, negative goodwill credited and | | | |
| share option charges | | | |
+ +----------+----------+----------+
| | | | |
+-----------------------------------------------------+------------------------------------+-----+----------+
| Continuing operations | | | 2,080 | | 2,016 |
+------------------------------------+-----+----------+----------+----------+----------+
| Acquisitions | | | 348 | | - |
+------------------------------------+-----+----------+----------+----------+----------+
| | | | | | |
+------------------------------------+-----+----------+----------+----------+----------+
| | | | 2,428 | | 2,016 |
+------------------------------------+-----+----------+----------+----------+----------+
| | | | | | |
+------------------------------------+-----+----------+----------+----------+----------+
| Amortisation | | | (675) | | (242) |
+------------------------------------+-----+----------+----------+----------+----------+
| Exceptional operating expenses | 3 | (466) | | (42) |
+------------------------------------------+----------+----------+----------+----------+
| Negative goodwill credited | 6 | 48 | | - |
+------------------------------------------+----------+----------+----------+----------+
| Share option charges | | (60) | | (18) |
+------------------------------------------+----------+----------+----------+----------+
| | | | | | |
+------------------------------------+-----+----------+----------+----------+----------+
| Operating profit | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Continuing operations | | 1,233 | | 1,714 |
+------------------------------------------+----------+----------+----------+----------+
| Acquisitions | | 42 | | - |
+------------------------------------------+----------+----------+----------+----------+
| | | 1,275 | | 1,714 |
+------------------------------------------+----------+----------+----------+----------+
| | | | | | |
+------------------------------------+-----+----------+----------+----------+----------+
| Investment income | | 120 | | 64 |
+------------------------------------------+----------+----------+----------+----------+
| Finance charges | | (302) | | (168) |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+ +----------+ +----------+
| Profit on ordinary activities before | | 1,093 | | 1,610 |
| taxation | | | | |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Taxation | | (467) | | (395) |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+ +----------+ +----------+
| Profit attributable to ordinary | | 626 | | 1,215 |
| shareholders in respect of continuing | | | | |
| operations | | | | |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+ +----------+ +----------+
| Earnings per share: | | Pence | | Pence |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+----------+----------+ +----------+
| Earnings per share - basic | 4 | 4.33 | | 9.79 |
+------------------------------------------+----------+----------+----------+----------+
| Earnings per share - diluted | | 4.26 | | 9.31 |
+------------------------------------------+----------+----------+----------+----------+
| | | | | | |
+------------------------------------+-----+----------+----------+----------+----------+
Consolidated Balance Sheet
31 December 2008
+------------------------------------+--------+----------+---+----------+
| | | 2008 | | 2007 |
+------------------------------------+--------+----------+---+----------+
| | Note | | | GBP'000 |
| | | GBP'000 | | |
+------------------------------------+--------+----------+---+----------+
| Non-current assets | | | | |
+------------------------------------+--------+----------+---+----------+
| Goodwill | | 13,573 | | 8,523 |
+------------------------------------+--------+----------+---+----------+
| Other intangible assets | | 3,611 | | 2,099 |
+------------------------------------+--------+----------+---+----------+
| Property, plant and equipment | | 607 | | 304 |
+------------------------------------+--------+----------+---+----------+
| Deferred tax asset | | 9 | | 9 |
+------------------------------------+--------+----------+---+----------+
| | | 17,800 | | 10,935 |
+------------------------------------+--------+----------+---+----------+
| | | | | |
+------------------------------------+--------+----------+---+----------+
| Current assets | | | | |
+------------------------------------+--------+----------+---+----------+
| Trade and other receivables | | 8,420 | | 6,902 |
+------------------------------------+--------+----------+---+----------+
| Cash and cash equivalents | | 3,302 | | 1,918 |
+------------------------------------+--------+----------+---+----------+
| | | 11,722 | | 8,820 |
+------------------------------------+--------+----------+---+----------+
| | | | | |
+------------------------------------+--------+----------+---+----------+
| Current liabilities | | | | |
+------------------------------------+--------+----------+---+----------+
| Trade and other payables | | (7,806) | | (4,810) |
+------------------------------------+--------+----------+---+----------+
| Deferred consideration | | (2,101) | | (1,460) |
+------------------------------------+--------+----------+---+----------+
| Current tax | | (554) | | (237) |
+------------------------------------+--------+----------+---+----------+
| Borrowings | | (456) | | (150) |
+------------------------------------+--------+----------+---+----------+
| | | (10,917) | | (6,657) |
+------------------------------------+--------+----------+---+----------+
| | | | | |
+------------------------------------+--------+----------+---+----------+
| Net current assets | | 805 | | 2,163 |
+------------------------------------+--------+----------+---+----------+
| | | | | |
+------------------------------------+--------+----------+---+----------+
| Non-current liabilities | | | | |
+------------------------------------+--------+----------+---+----------+
| Deferred consideration | | (1,418) | | (732) |
+------------------------------------+--------+----------+---+----------+
| Deferred tax | | (924) | | (603) |
+------------------------------------+--------+----------+---+----------+
| Borrowings | | (3,985) | | (2,230) |
+------------------------------------+--------+----------+---+----------+
| | | | | |
+------------------------------------+--------+----------+---+----------+
| | | (6,327) | | (3,565) |
+------------------------------------+--------+----------+---+----------+
| | | | | |
+------------------------------------+--------+----------+---+----------+
| Net assets | | 12,278 | | 9,533 |
+------------------------------------+--------+----------+---+----------+
| | | | | |
+------------------------------------+--------+----------+---+----------+
| Equity | | | | |
+------------------------------------+--------+----------+---+----------+
| Ordinary shares | 7 | 620 | | 549 |
+------------------------------------+--------+----------+---+----------+
| Share premium account | | 7,675 | | 6,010 |
+------------------------------------+--------+----------+---+----------+
| Merger reserve | | 449 | | - |
+------------------------------------+--------+----------+---+----------+
| Equity reserve | | - | | 100 |
+------------------------------------+--------+----------+---+----------+
| Retained earnings | | 3,534 | | 2,874 |
+------------------------------------+--------+----------+---+----------+
| | | | | |
+------------------------------------+--------+----------+---+----------+
| Equity shareholders' funds | | 12,278 | | 9,533 |
+------------------------------------+--------+----------+---+----------+
| | | | | |
+------------------------------------+--------+----------+---+----------+
Consolidated Statement of Changes in Shareholders' Equity
Year ended 31 December 2008
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| | Share | Share | Merger | Equity | Retained | Total |
| | capital | premium | reserve | reserve | earnings | equity |
| | | account | | | | |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| | | | | | | |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| Balance at 1 January 2007 | 440 | 2,719 | - | 230 | 1,696 | 5,085 |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| | | | | | | |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| Net profit for the period | | | | | | |
| attributable to equity | | | | | | |
| shareholders | | | | | | |
+ +-----------------------------+---------+---------+---------+----------+---------+
| | - | - | - | - | 1,215 | 1,215 |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| | | | | | | |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| Total recognised income and | 440 | 2,719 | - | 230 | 2,911 | 6,300 |
| expense | | | | | | |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| Dividends paid | - | - | - | - | (55) | (55) |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| Issue of ordinary shares | 109 | 3,291 | - | - | - | 3,400 |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| Shares to be issued | - | - | - | (130) | - | (130) |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| Other reserves movement due | | | | | | |
| to share options charge | | | | | | |
+ +-----------------------------+---------+---------+---------+----------+---------+
| | - | - | - | - | 18 | 18 |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| | | | | | | |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| Balance at 31 December 2007 | 549 | 6,010 | - | 100 | 2,874 | 9,533 |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| | | | | | | |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| Net profit for the period | | | | | | |
| attributable to equity | | | | | | |
| shareholders | | | | | | |
+ +-----------------------------+---------+---------+---------+----------+---------+
| | - | - | - | - | 626 | 626 |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| | | | | | | |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| Total recognised income and | 549 | 6,010 | - | 100 | 3,500 | 10,159 |
| expense | | | | | | |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| Dividends paid | - | - | - | - | (85) | (85) |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| Issue of ordinary shares | 71 | 1,665 | 449 | - | - | 2,185 |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| Shares to be issued | - | - | - | (100) | - | (100) |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| Other reserves movement due | | | | | | |
| to share options charge | | | | | | |
+ +-----------------------------+---------+---------+---------+----------+---------+
| | - | - | - | - | 60 | 60 |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| Impact of deferred tax on | | | | | | |
| share option charge | | | | | | |
+ +-----------------------------+---------+---------+---------+----------+---------+
| | - | - | - | - | 59 | 59 |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| | | | | | | |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| Balance at 31 December 2008 | 620 | 7,675 | 449 | - | 3,534 | 12,278 |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
| | | | | | | |
+-----------------------------+-----------------------------+---------+---------+---------+----------+---------+
Consolidated Cash Flow Statement
Year ended 31 December 2008
+----------------------------------------+-----------+-----------+-----------+
| | | |
+ +-----------------------+-----------+
| | | |
+ +----------------------------------------------------+-----------+
| | 2008 | 2007 |
+ +----------------------------------------------------+-----------+
| | Note | GBP'000 | GBP'000 |
+----------------------------------------+----------------------------------------+-----------+-----------+
| | | | |
+----------------------------------------+-----------+-----------+-----------+
| Operating Activities | | | |
+----------------------------------------+-----------+-----------+-----------+
| Cash generated by operations | 8 | 3,377 | 1,490 |
+----------------------------------------+-----------+-----------+-----------+
| | | | |
+----------------------------------------+-----------+-----------+-----------+
| Income taxes paid | | (542) | (351) |
+----------------------------------------+-----------+-----------+-----------+
| Interest paid | | (302) | (175) |
+----------------------------------------+-----------+-----------+-----------+
| | | | |
+----------------------------------------+-----------+-----------+-----------+
| Net cash inflow from operating | | 2,533 | 964 |
| activities | | | |
+----------------------------------------+-----------+-----------+-----------+
| | | | |
+----------------------------------------+-----------+-----------+-----------+
| Investing activities | | | |
+----------------------------------------+-----------+-----------+-----------+
| Interest received | | 120 | 64 |
+----------------------------------------+-----------+-----------+-----------+
| Purchases of property, plant and | | (465) | (103) |
| equipment | | | |
+----------------------------------------+-----------+-----------+-----------+
| Deferred consideration paid | | (1,332) | (430) |
+----------------------------------------+-----------+-----------+-----------+
| Acquisition of subsidiaries and | 6 | (2,679) | (2,100) |
| businesses | | | |
+----------------------------------------+-----------+-----------+-----------+
| | | |
+----------------------------------------------------+-----------+-----------+
| Net cash used in investing activities | (4,356) | (2,569) |
+----------------------------------------------------+-----------+-----------+
| | | | |
+----------------------------------------+-----------+-----------+-----------+
| Financing activities | | | |
+----------------------------------------+-----------+-----------+-----------+
| Dividends paid | | (85) | (55) |
+----------------------------------------+-----------+-----------+-----------+
| Proceeds from issue of shares (net of expenses) | 1,587 | 2,910 |
+----------------------------------------------------+-----------+-----------+
| Receipt of bank loans | | 3,500 | 2,000 |
+----------------------------------------+-----------+-----------+-----------+
| Receipt of other loans | | 900 | 361 |
+----------------------------------------+-----------+-----------+-----------+
| Repayment of bank loans | | (2,000) | (2,306) |
+----------------------------------------+-----------+-----------+-----------+
| Repayment of other loans | | (610) | (248) |
+----------------------------------------+-----------+-----------+-----------+
| Repayment of hire purchase obligations | | (85) | (2) |
+----------------------------------------+-----------+-----------+-----------+
| | | | |
+----------------------------------------+-----------+-----------+-----------+
| | | | |
+----------------------------------------+-----------+-----------+-----------+
| Net cash generated by financing | | 3,207 | 2,660 |
| activities | | | |
+----------------------------------------+-----------+-----------+-----------+
| | | | |
+----------------------------------------+-----------+-----------+-----------+
| Net increase in cash and cash | | 1,384 | 1,055 |
| equivalents | | | |
+----------------------------------------+-----------+-----------+-----------+
| | | | |
+----------------------------------------+-----------+-----------+-----------+
| Cash and cash equivalents at start of | | 1,918 | 863 |
| period | | | |
+----------------------------------------+-----------+-----------+-----------+
| | | | |
+----------------------------------------+-----------+-----------+-----------+
| | | | |
+----------------------------------------+-----------+-----------+-----------+
| Cash and cash equivalents at end of | | 3,302 | 1,918 |
| period | | | |
+----------------------------------------+-----------+-----------+-----------+
1. Results and accounting policies
While the financial information included in this preliminary announcement has
been computed in accordance with International Financial Reporting Standards
("IFRS"), this announcement does not itself contain sufficient information to
comply with IFRS. The Group expects to publish full financial statements which
comply with IFRS on or before 15 May 2009.
The accounting polices used in preparation of this preliminary announcement have
remained unchanged from those set out in the Group's 2007 annual report and
financial statements and are consistent with those in the full financial
statements which have yet to be published. The preliminary results for the year
ended 31 December 2008 were approved by the Board of Directors on 16 March 2009.
The financial information set out above does not constitute the group's
statutory accounts for the year ended 31 December 2008 or 2007 as detailed in
sections 240 of the Companies Act 1985, but is derived from those accounts.
Statutory accounts for 2007 under IFRS have been delivered to the Registrar of
Companies and those for the year ended 31 December 2008, under IFRS, will be
delivered to the Registrar of Companies following the Company's annual general
meeting. The auditors have reported on these accounts; their report was
unqualified and did not contain a statement under s237 (2) or (3) of the
Companies Act 1985.
2.Segment information
For management purposes, the Group is organised into three divisions; Insurance
Broking, Financial Services and Premium Finance. These divisions are the basis
on which the Group reports its primary segment information and is reported as
follows:
+------------------------------------+------------------------------------+-----------+----------+-----------+
| | Year ended | Year ended |
+ +------------------------------------------------+----------------------+
| | 31 December 2008 | 31 December 2007 |
+------------------------------------+------------------------------------------------+----------------------+
| | Revenue | Operating | Revenue | Operating |
| | | profit | | profit |
+ +------------------------------------+-----------+----------+-----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------+------------------------------------+-----------+----------+-----------+
| | | | | |
+------------------------------------+ + + + +
| By class of business: | | | | |
+------------------------------------+------------------------------------+-----------+----------+-----------+
| | | | | |
+------------------------------------+------------------------------------+-----------+----------+-----------+
| Insurance Broking | 8,181 | 2,134 | 4,877 | 1,456 |
+------------------------------------+------------------------------------+-----------+----------+-----------+
| | | | | |
+------------------------------------+------------------------------------+-----------+----------+-----------+
| Financial Services | 2,465 | 543 | 2,150 | 746 |
+------------------------------------+------------------------------------+-----------+----------+-----------+
| | | | | |
+------------------------------------+------------------------------------+-----------+----------+-----------+
| Premium Finance | 472 | 418 | 367 | 312 |
+------------------------------------+------------------------------------+-----------+----------+-----------+
| | | | | |
+------------------------------------+------------------------------------+-----------+----------+-----------+
| Other | 30 | 30 | 42 | 42 |
+------------------------------------+------------------------------------+-----------+----------+-----------+
| | | | | |
+ +------------------------------------+-----------+----------+-----------+
| | 11,148 | 3,125 | 7,436 | 2,556 |
+------------------------------------+------------------------------------+-----------+----------+-----------+
| | | | | |
+------------------------------------+ +-----------+ +-----------+
| Amortisation | | (675) | | (242) |
+------------------------------------+ +-----------+ +-----------+
| Exceptional operating expenses and | | (418) | | (42) |
| negative goodwill credited | | | | |
+------------------------------------+ +-----------+ +-----------+
| Central costs | | (757) | | (558) |
+------------------------------------+------------------------------------+-----------+----------+-----------+
| | | | | |
+------------------------------------+ +-----------+ +-----------+
| Profit from operations | | 1,275 | | 1,714 |
+------------------------------------+------------------------------------+-----------+----------+-----------+
| | | | | |
+------------------------------------+------------------------------------+-----------+----------+-----------+
Assets and liabilities
+------------------------------------+------------------------------------+------------------------------------+----------+-------------+
| | Year ended | Year ended |
+ +-------------------------------------------------------------------------+------------------------+
| | 31 December 2008 | 31 December 2007 |
+------------------------------------+-------------------------------------------------------------------------+------------------------+
| | Assets | Liabilities | Assets | Liabilities |
| | GBP'000 | | GBP'000 | |
+ + +------------------------------------+ +-------------+
| | | GBP'000 | | GBP'000 |
+------------------------------------+------------------------------------+------------------------------------+----------+-------------+
| | | | | |
+------------------------------------+ + + + +
| By segment: | | | | |
+------------------------------------+------------------------------------+------------------------------------+----------+-------------+
| | | | | |
+------------------------------------+------------------------------------+------------------------------------+----------+-------------+
| Insurance Broking | 11,777 | (9,208) | 8,023 | (4,980) |
+------------------------------------+------------------------------------+------------------------------------+----------+-------------+
| | | | | |
+------------------------------------+------------------------------------+------------------------------------+----------+-------------+
| Financial Services | 2,080 | (1,136) | 1,512 | (943) |
+------------------------------------+------------------------------------+------------------------------------+----------+-------------+
| | | | | |
+------------------------------------+------------------------------------+------------------------------------+----------+-------------+
| Premium Finance | 2,727 | (2,362) | 4,479 | (4,263) |
+------------------------------------+------------------------------------+------------------------------------+----------+-------------+
| | | | | |
+------------------------------------+------------------------------------+------------------------------------+----------+-------------+
| Eliminations | (5,233) | 5,233 | (2,425) | 2,425 |
+------------------------------------+------------------------------------+------------------------------------+----------+-------------+
| | | | | |
+------------------------------------+------------------------------------+------------------------------------+----------+-------------+
| Segment assets and liabilities | 11,351 | (7,473) | 11,589 | (7,761) |
+------------------------------------+------------------------------------+------------------------------------+----------+-------------+
| | | | | |
+------------------------------------+------------------------------------+------------------------------------+----------+-------------+
| Unallocated corporate | 18,171 | (9,771) | 8,166 | (2,461) |
+------------------------------------+------------------------------------+------------------------------------+----------+-------------+
| | | | | |
+------------------------------------+------------------------------------+------------------------------------+----------+-------------+
| Consolidated assets and | 29,522 | (17,244) | 19,755 | (10,222) |
| liabilities | | | | |
+------------------------------------+------------------------------------+------------------------------------+----------+-------------+
| | | | | |
+------------------------------------+------------------------------------+------------------------------------+----------+-------------+
3. Exceptional operating expenses
+----------------------------------------+-------+-------------+-------------+
| | | 2008 | 2007 |
+----------------------------------------+-------+-------------+-------------+
| | Note | GBP'000 | GBP'000 |
+----------------------------------------+-------+-------------+-------------+
| | | | |
+----------------------------------------+-------+-------------+-------------+
| Redundancy costs | | 12 | 42 |
+----------------------------------------+-------+-------------+-------------+
| Reorganisation costs | | 454 | - |
+----------------------------------------+-------+-------------+-------------+
| | | | |
+----------------------------------------+-------+-------------+-------------+
| | | 466 | 42 |
+----------------------------------------+-------+-------------+-------------+
| | | | |
+----------------------------------------+-------+-------------+-------------+
All redundancy and reorganisation costs have been charged against operating
profit derived from continuing operations.
4. Earnings per share
The calculation of basic earnings per share for the year ended 31 December 2008
is based on the profit attributable to ordinary shareholders of GBP626,000
(2007: GBP1,215,000) divided by the weighted average number of shares in issue
of 14,454,978 (2007: 12,412,161).
At 31 December 2008, there were 805,250 (2007: 575,000) share options in issue
of which 254,548 (2007: 301,929) were dilutive potential ordinary shares on
average during the year. At the year end there were 292,362 (2007: 68,998)
shares to be issued in respect of deferred consideration for acquisitions made
during or prior to the current year, and there were nil (2007: 331,299) dilutive
potential ordinary shares on average during the year. At 31 December 2008, there
were therefore a total of 254,548 (2007: 633,228) dilutive potential ordinary
shares on average during the year. The calculation of diluted earnings per share
for the year ended 31 December 2008 is based on the profit attributable to
ordinary shareholders of GBP626,000 (2007: GBP1,215,000) divided by the weighted
average number of diluted shares in issue of 14,709,526 (2007: 13,045,389).
The adjusted earnings per share is based on the profit attributable to ordinary
shareholders, after adding back amortisation, exceptional operating expenses,
negative goodwill credited, share option charges and reflecting an ongoing tax
charge of 28% (2007: 30%), as follows:
+------------------------------------+-----------+-----------+-----------+-----------+
| | | |
+------------------------------------+-----------------------+-----------------------+
| | 2008 | 2007 |
+------------------------------------+-----------------------+-----------------------+
| | GBP000 | Pence | GBP000 | Pence |
+------------------------------------+-----------+-----------+-----------+-----------+
| | | | | |
+------------------------------------+-----------+-----------+-----------+-----------+
| Profit for the year | 626 | 4.33 | 1,215 | 9.79 |
+------------------------------------+-----------+-----------+-----------+-----------+
| | | | | |
+------------------------------------+-----------+-----------+-----------+-----------+
| Amortisation | 675 | 4.67 | 242 | 1.95 |
+------------------------------------+-----------+-----------+-----------+-----------+
| | | | | |
+------------------------------------+-----------+-----------+-----------+-----------+
| Exceptional operating charges and | 418 | 2.89 | 42 | 0.34 |
| negative goodwill credited | | | | |
+------------------------------------+-----------+-----------+-----------+-----------+
| | | | | |
+------------------------------------+-----------+-----------+-----------+-----------+
| Share option charge | 60 | 0.42 | 18 | 0.14 |
+------------------------------------+-----------+-----------+-----------+-----------+
| | | | | |
+------------------------------------+-----------+-----------+-----------+-----------+
| Adjustment to reflect an ongoing | (161) | (1.12) | (179) | (1.44) |
| tax charge of 28% (2007: 30%) | | | | |
+------------------------------------+-----------+-----------+-----------+-----------+
| Adjusted earnings per share | 1,618 | 11.19 | 1,338 | 10.78 |
+------------------------------------+-----------+-----------+-----------+-----------+
| | | | | |
+------------------------------------+-----------+-----------+-----------+-----------+
| Diluted adjusted earnings per | 1,618 | 11.00 | 1,338 | 10.26 |
| share | | | | |
+------------------------------------+-----------+-----------+-----------+-----------+
| | | | | |
+------------------------------------+-----------+-----------+-----------+-----------+
There have been no changes to the shares in issue since 31 December 2008.
5. Dividends
Amounts recognised as distributions to equity shareholders in the year:
+----------------------------------------+-------------+-------------+
| | | |
+----------------------------------------+-------------+-------------+
| | 2008 | 2007 |
+----------------------------------------+-------------+-------------+
| | GBP'000 | GBP'000 |
+----------------------------------------+-------------+-------------+
| | | |
+----------------------------------------+-------------+-------------+
| Dividend paid per share in the period | 85 | 55 |
| 0.6 pence (2007: 0.5p) | | |
+----------------------------------------+-------------+-------------+
A final dividend of 0.66p per share (2007: 0.6p per share) amounting to
GBP102,000 (2007: GBP85,000) in respect of the year ended 31 December 2008 is
proposed. If approved at the Annual General Meeting, it will be paid on 29 May
2009 to those shareholders on the register on 1 May 2009.
6. Acquisitions
During the year, the Company acquired the whole of the issued share capital and
voting rights of the following companies:
+--------------------+----------------------------------------+
| 23 January 2008 | PenMc plc |
+--------------------+----------------------------------------+
| 18 January 2008 | Barclay Brown (Holdings) Limited |
+--------------------+----------------------------------------+
| 4 April 2008 | Howgud Limited |
+--------------------+----------------------------------------+
The acquisitions may be summarised as follows:
+------------------------------------+-----------+------------+-----------+-----------+------------------------------------+
| | PenMc plc | Barclay | Howgud | Total |
| | | Brown | Limited | |
| | | (Holdings) | | |
| | | Limited | | |
+ + + + + +
| | | | | | |
+ + + + + +------------------------------------+
| | | | | | |
+------------------------------------+-----------+------------+-----------+-----------+------------------------------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------+-----------+------------+-----------+-----------+
| Property, plant and equipment | - | 13 | 38 | 51 |
+------------------------------------+-----------+------------+-----------+-----------+
| Trade and other receivables | - | 1,351 | 528 | 1,879 |
+------------------------------------+-----------+------------+-----------+-----------+
| Cash and cash equivalents | 261 | (135) | 394 | 520 |
+------------------------------------+-----------+------------+-----------+-----------+
| Trade and other payables | (4) | (1,988) | (519) | (2,511) |
+------------------------------------+-----------+------------+-----------+-----------+
| Current tax | - | (76) | (86) | (162) |
+------------------------------------+-----------+------------+-----------+-----------+
| | | | | |
+------------------------------------+-----------+------------+-----------+-----------+
| Fair value of net assets acquired | 257 | (835) | 355 | (223) |
+------------------------------------+-----------+------------+-----------+-----------+
| Goodwill - positive | - | 3,464 | 1,752 | 5,216 |
+------------------------------------+-----------+------------+-----------+-----------+
| Goodwill - negative (see below) | (48) | - | - | (48) |
+------------------------------------+-----------+------------+-----------+-----------+
| Other intangible assets | - | 1,226 | 961 | 2,187 |
+------------------------------------+-----------+------------+-----------+-----------+
| Deferred tax on other intangible | - | (343) | (269) | (612) |
| assets | | | | |
+------------------------------------+-----------+------------+-----------+-----------+
| | | | | |
+------------------------------------+-----------+------------+-----------+-----------+
| Consideration | 209 | 3,512 | 2,799 | 6,520 |
+------------------------------------+-----------+------------+-----------+-----------+
| | | | | |
+------------------------------------+-----------+------------+-----------+-----------+
| Comprising: | | | | |
+------------------------------------+-----------+------------+-----------+-----------+
| Cash | 11 | 1,650 | 1,229 | 2,890 |
+------------------------------------+-----------+------------+-----------+-----------+
| Shares issued | 101 | - | 360 | 461 |
+------------------------------------+-----------+------------+-----------+-----------+
| Deferred consideration: | | | | |
+------------------------------------+-----------+------------+-----------+-----------+
| Cash | - | 1,585 | 905 | 2,490 |
+------------------------------------+-----------+------------+-----------+-----------+
| Cash or shares | - | 150 | 220 | 370 |
+------------------------------------+-----------+------------+-----------+-----------+
| Acquisition costs | 97 | 127 | 85 | 309 |
+------------------------------------+-----------+------------+-----------+-----------+
| | | | | |
+------------------------------------+-----------+------------+-----------+-----------+
| | 209 | 3,512 | 2,799 | 6,520 |
+------------------------------------+-----------+------------+-----------+-----------+
| | | | | |
+------------------------------------+-----------+------------+-----------+-----------+
| Purchase consideration settled in | 108 | 1,777 | 1,314 | 3,199 |
| cash | | | | |
+------------------------------------+-----------+------------+-----------+-----------+
| | | | | |
+------------------------------------+-----------+------------+-----------+-----------+
| Cash and cash equivalents acquired | (261) | 135 | (394) | (520) |
+------------------------------------+-----------+------------+-----------+-----------+
| | | | | |
+------------------------------------+-----------+------------+-----------+-----------+
| Cash inflow/(outflow) on | (153) | 1,912 | 920 | 2,679 |
| acquisitions | | | | |
+------------------------------------+-----------+------------+-----------+-----------+------------------------------------+
The assets and liabilities included in net assets acquired are stated at book
values which are equivalent to their fair values. The only fair value
adjustments made are in respect of intangible assets acquired. The initial
accounting for the acquisitions made during the year ended 31 December 2008 has
only been provisionally determined at the balance sheet date as adjustments may
be necessary to book values following assessment after a further period of
ownership.
The goodwill paid in respect of current period acquisitions relates to expected
synergies to be achieved. Synergies to be achieved are as a result of a stronger
presence in the market and synergies in sourcing and selling.
Negative goodwill in respect of the acquisition of PenMC plc has been credited
to the income statement during the year.
7. Share capital
+-------------------------------+-------------+-------------+-------------+-------------+
| Authorised share capital: |
+---------------------------------------------------------------------------------------+
| | 2008 | 2007 | | |
+-------------------------------+-------------+-------------+-------------+-------------+
| | GBP'000 | GBP'000 | | |
+-------------------------------+-------------+-------------+-------------+-------------+
| | | | | |
+-------------------------------+-------------+-------------+-------------+-------------+
| 20,000,000 (2007: 20,000,000) | 800 | 800 | | |
| Ordinary shares of GBP0.04 | | | | |
| each | | | | |
+-------------------------------+-------------+-------------+-------------+-------------+
| | | | | |
+-------------------------------+-------------+-------------+-------------+-------------+
| Allotted, called up and fully paid: |
+---------------------------------------------------------------------------------------+
| | 2008 | 2007 |
+-------------------------------+---------------------------+---------------------------+
| | No | GBP'000 | No | GBP'000 |
+-------------------------------+-------------+-------------+-------------+-------------+
| | | | | |
+-------------------------------+-------------+-------------+-------------+-------------+
| Ordinary shares of GBP0.04 | 15,497,006 | 620 | 13,730,930 | 549 |
| each | | | | |
+-------------------------------+-------------+-------------+-------------+-------------+
| | | | | |
+-------------------------------+-------------+-------------+-------------+-------------+
| Allotted, called up and fully paid: |
+---------------------------------------------------------------------------------------+
| | 2008 | 2007 | | |
+-------------------------------+-------------+-------------+-------------+-------------+
| | GBP'000 | GBP'000 | | |
+-------------------------------+-------------+-------------+-------------+-------------+
| | | | | |
+-------------------------------+-------------+-------------+-------------+-------------+
| At 1 January | 549 | 440 | | |
+-------------------------------+-------------+-------------+-------------+-------------+
| | | | | |
+-------------------------------+-------------+-------------+-------------+-------------+
| Issued in the year: | | | | |
+-------------------------------+-------------+-------------+-------------+-------------+
| Acquisitions | 16 | 21 | | |
+-------------------------------+-------------+-------------+-------------+-------------+
| Fund raising | 55 | 85 | | |
+-------------------------------+-------------+-------------+-------------+-------------+
| Share option exercises | - | 3 | | |
+-------------------------------+-------------+-------------+-------------+-------------+
| | | | | |
+-------------------------------+-------------+-------------+-------------+-------------+
| At 31 December | 620 | 549 | | |
+-------------------------------+-------------+-------------+-------------+-------------+
8. Reconciliation of profit before taxation to net cash inflow from operating
activities
+----------------------------------------+-------------+-------------+
| | 2008 | 2007 |
+----------------------------------------+-------------+-------------+
| | GBP'000 | GBP'000 |
+----------------------------------------+-------------+-------------+
| | | |
+----------------------------------------+-------------+-------------+
| Profit before taxation | 1,093 | 1,610 |
+----------------------------------------+-------------+-------------+
| Depreciation and loss on disposal of | 213 | 130 |
| property plant and equipment | | |
+----------------------------------------+-------------+-------------+
| Amortisation | 675 | 242 |
+----------------------------------------+-------------+-------------+
| Negative goodwill | (48) | - |
+----------------------------------------+-------------+-------------+
| Share option charge | 60 | 18 |
+----------------------------------------+-------------+-------------+
| Investment income | (120) | (64) |
+----------------------------------------+-------------+-------------+
| Finance charges | 302 | 168 |
+----------------------------------------+-------------+-------------+
| Movements in working capital: | | |
+----------------------------------------+-------------+-------------+
| Decrease / (increase) in receivables | 361 | (888) |
+----------------------------------------+-------------+-------------+
| Increase in payables | 841 | 274 |
+----------------------------------------+-------------+-------------+
| | | |
+----------------------------------------+-------------+-------------+
| Net cash inflow from operating | 3,377 | 1,490 |
| activities | | |
+----------------------------------------+-------------+-------------+
| | | |
+----------------------------------------+-------------+-------------+
9. Reconciliation of net cash flow to movement in net debt
+--------------------------------------------+-------------+-------------+
| | 2008 | 2007 |
+--------------------------------------------+-------------+-------------+
| | GBP'000 | GBP'000 |
+--------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------+-------------+-------------+
| Net debt at 1 January | (462) | (1,712) |
+--------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------+-------------+-------------+
| Increase in cash in the period | 1,384 | 1,055 |
+--------------------------------------------+-------------+-------------+
| Cash (outflow)/inflow from | (1,705) | 195 |
| (decrease)/increase in debt financing | | |
+--------------------------------------------+-------------+-------------+
| Loans acquired with subsidiary | (235) | - |
| undertakings | | |
+--------------------------------------------+-------------+-------------+
| Hire purchase obligations acquired with | (121) | - |
| subsidiary undertakings | | |
+--------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------+-------------+-------------+
| Net debt at 31 December | (1,139) | (462) |
+--------------------------------------------+-------------+-------------+
10. Annual Report
The annual report will be posted to shareholders on or around the 15 May 2009
and will also be available from the Group's website (www.cbg-group.co.uk) or
from the Company Secretary at the Company's registered office: Southmoor House,
Southmoor Road, Manchester M23 9XD.
16 March 2009
END
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR CKPKKABKDAND
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