TIDMJIM
RNS Number : 2537O
Jarvis Securities plc
04 March 2009
4 March 2009
Jarvis Securities plc
("Jarvis" or "the Company" or "the Group")
RESULTS FOR THE YEAR ENDED 31 DECEMBER 2008
Financial Highlights:
* +8% - Daily Average Trade Volumes
* +8% - Turnover GBP4.9m (2007: GBP4.5m)
* +4% - Adjusted Profit Before Tax (excluding GBP0.5m of offer costs and bad
debts) GBP2.4m (2007: GBP2.3m)
* -15% - Profit After Tax GBP1.3m (2007: GBP1.6m)
* -17% - Basic Earnings Per Share 12.3p (2007: 14.9p)
Corporate Highlights:
* Winner - FT/Investors Chronicle Best Stockbroker for Customer Service
* Silver Award - FT/Investors Chronicle Best Execution Only Stockbroker
* 96% of client survey respondents rated Jarvis as good, very good or outstanding
* 94% of client survey respondents would recommend Jarvis
Andrew Grant, Chairman and CEO commented, "Trading volumes in 2009 have remained
strong with January and February 14% ahead year on year. We continue to win
commercial outsourced service contracts, but the current interest rate
environment will impact upon our earnings from cash deposits during the coming
year."
Enquiries:
Jarvis Securities plc Tel: 0870 224 1111
Andrew Grant
Mathew Edmett
Arbuthnot Securities Tel: 020 7012 2000
Alasdair Younie
Katie Shelton
Notes:
Jarvis Securities plc is the holding company for Jarvis Investment Management
plc (AIM: JIM.L) a stock broking company and outsourced service provider for
bespoke tailored financial administration. Jarvis was established in 1984 and is
a member of the London Stock Exchange; a broker dealer member of PLUS Markets,
authorised and regulated by the Financial Services Authority and an HM Revenue &
Customs approved ISA manager. Jarvis has more than 30,000 retail clients and a
growing number of institutional clients. As well as normal retail broking Jarvis
provides cost effective and flexible share trading facilities within ISA and
SIPP wrappers.
Jarvis provides outsourced and partnered financial administration services to a
number of third party organisations. These organisations include advisers,
stockbrokers, banks and fund managers. Jarvis can tailor its administration
processes to the requirements of each organisation and has a strong reputation
for flexibility and cost-effectiveness.
Copies of this announcement are available from the Company's registered office
and from the Company's website, www.jarvissecurities.co.uk
CHAIRMAN'S STATEMENT
The second half of 2008 was clearly very challenging for many financial services
businesses. We are all aware of the household names that have been hurriedly
sold off, been taken into partial or full State control or that simply ceased
trading. These are truly exceptional times to be operating in financial
services, or many other sectors, of the UK economy and the repercussions of the
credit situation and recession will continue for many months, possibly even
years, yet.
I would not normally be so delighted to report such modest improvements in
turnover and trading profits over the prior year. However, against such a dismal
backdrop, I am extremely pleased to be reporting a rise in revenue of 8% and
operating profit up 4%. We have long held the belief that our model is more
resilient than a traditional broking operation but now we have had the chance to
prove that claim. We have suffered a reduction in profit before income tax and
earnings per share due to the costs of the offer made for the business in early
2008 and bad debts incurred from failed commercial clients. More importantly
though, given the economic climate, we remain profitable and highly
cash-generative which is truly an enviable position.
The current interest rate environment will impact upon our earnings from cash
deposits during the coming year. However, we continue to have significant
interest in our outsourced financial administration services and I expect to be
announcing further contract wins during 2009. We are also increasing our
advertising and marketing not just in this area but to retail clients too.
Strong firms that continue to look forward and invest in the future will be well
placed to benefit when conditions improve. There is no reason to believe that
this is not a great opportunity for Jarvis to win all types of clients from
failing competitors and we fully intend to maximise this potential.
Whilst Jarvis has always aimed to offer cost-effective products to our clients,
it is the quality of service that really makes the difference. We were all very
pleased to see our efforts recognised with the firm receiving two awards from
the Financial Times/Investors Chronicle. Jarvis is not the largest
execution-only broker, so to win the Customer Service Award in a public vote is
an achievement to be proud of. We also decided to carry out a client survey to
obtain honest and impartial feedback. It is important that we are making the
right improvements to our services and for us to identify any areas that we may
have missed. When the results were collated, it was gratifying to see the
ratings and referral rates both well above 90%. We do not see this as an excuse
to be complacent and we have a number of other significant initiatives underway
for the coming year.
Due to some procedural issues relating to document filing, we need to ratify one
dividend at the Annual General Meeting and re-declare the 2007 final dividend.
Further details are given in note 21 to this announcement. As a result of this,
there will not be a final dividend declared for 2008 but such remaining
distributable reserves will form part of an interim dividend for 2009, which it
is anticipated will be paid in the first half of 2009. Thereafter the Company
will revert to its normal dividend timetable.
Without doubt, we are operating in demanding times that are beyond our control
or influence, but I remain confident in our business model, our planned
developments, our quality of service and our dedicated team. Whilst the
short-term forecast may be unpredictable, I maintain that the medium term
outlook for Jarvis remains promising.
Andrew J. Grant
Chairman
Consolidated income statement for the year ended 31 december 2008
+--------------------------------+---------+---------+--+-------------+-------------+
| | | | | Year to | Year to |
+--------------------------------+---------+---------+--+-------------+-------------+
| | | | | 31/12/08 | 31/12/07 |
+--------------------------------+---------+---------+--+-------------+-------------+
| | Notes | | | | |
+--------------------------------+---------+---------+--+-------------+-------------+
| | | | | GBP | GBP |
+--------------------------------+---------+---------+--+-------------+-------------+
| Continuing operations: | | | | | |
+--------------------------------+---------+---------+--+-------------+-------------+
| Revenue | 3 | | | 4,885,249 | 4,519,116 |
+--------------------------------+---------+---------+--+-------------+-------------+
| Administrative expenses | | | | (2,908,718) | (2,210,693) |
+--------------------------------+---------+---------+--+-------------+-------------+
| | | | | | |
+--------------------------------+---------+---------+--+-------------+-------------+
| Finance costs | 5 | | | (39,320) | (26,946) |
+--------------------------------+---------+---------+--+-------------+-------------+
| | | | | | |
+--------------------------------+---------+---------+--+-------------+-------------+
| Profit before income tax | 6 | | | 1,937,211 | 2,281,477 |
+--------------------------------+---------+---------+--+-------------+-------------+
| Income tax charge | 8 | | | (627,525) | (633,710) |
+--------------------------------+---------+---------+--+-------------+-------------+
| | | | | | |
+--------------------------------+---------+---------+--+-------------+-------------+
| Profit for the period | 19 | | | 1,309,686 | 1,647,767 |
+--------------------------------+---------+---------+--+-------------+-------------+
| | | | | | |
+--------------------------------+---------+---------+--+-------------+-------------+
| Attributable to equity holders of the | | | 1,309,686 | 1,647,767 |
| parent | | | | |
+------------------------------------------+---------+--+-------------+-------------+
| | | | | | |
+--------------------------------+---------+---------+--+-------------+-------------+
| Earnings per share | 9 | | | p | p |
+--------------------------------+---------+---------+--+-------------+-------------+
| | | | | | |
+--------------------------------+---------+---------+--+-------------+-------------+
| Basic | | | | 12.30 | 14.91 |
+--------------------------------+---------+---------+--+-------------+-------------+
| Diluted | | | | 11.36 | 13.98 |
+--------------------------------+---------+---------+--+-------------+-------------+
| | | | | | |
+--------------------------------+---------+---------+--+-------------+-------------+
Consolidated balance sheet as at 31 december 2008
+--------------------------------+---------+---------+--+------------+------------+
| | | | | 31/12/08 | 31/12/07 |
+--------------------------------+---------+---------+--+------------+------------+
| | Notes | | | | |
+--------------------------------+---------+---------+--+------------+------------+
| | | | | GBP | GBP |
+--------------------------------+---------+---------+--+------------+------------+
| Assets | | | | | |
+--------------------------------+---------+---------+--+------------+------------+
| Non-current assets | | | | | |
+--------------------------------+---------+---------+--+------------+------------+
| Property, plant and equipment | 10 | | | 333,286 | 87,347 |
+--------------------------------+---------+---------+--+------------+------------+
| Intangible assets | 11 | | | 39,396 | 38,485 |
+--------------------------------+---------+---------+--+------------+------------+
| Goodwill | 11 | | | 342,872 | 342,872 |
+--------------------------------+---------+---------+--+------------+------------+
| Investments held to maturity | 12 | | | 39,601 | 19,800 |
+--------------------------------+---------+---------+--+------------+------------+
| Available-for-sale investments | 13 | | | 57,500 | 200 |
+--------------------------------+---------+---------+--+------------+------------+
| Deferred income tax | 8 | | | 3,143 | 79,407 |
+--------------------------------+---------+---------+--+------------+------------+
| | | | | 815,798 | 568,111 |
+--------------------------------+---------+---------+--+------------+------------+
| Current assets | | | | | |
+--------------------------------+---------+---------+--+------------+------------+
| Trade and other receivables | 15 | | | 5,342,108 | 8,293,218 |
+--------------------------------+---------+---------+--+------------+------------+
| Investments held for trading | 16 | | | 50,848 | 21,599 |
+--------------------------------+---------+---------+--+------------+------------+
| Cash and cash equivalents | 17 | | | 4,697,721 | 8,962,187 |
+--------------------------------+---------+---------+--+------------+------------+
| | | | | 10,090,677 | 17,277,004 |
+--------------------------------+---------+---------+--+------------+------------+
| | | | | | |
+--------------------------------+---------+---------+--+------------+------------+
| Total assets | | | | 10,906,475 | 17,845,115 |
+--------------------------------+---------+---------+--+------------+------------+
| | | | | | |
+--------------------------------+---------+---------+--+------------+------------+
| Equity and liabilities | | | | | |
+--------------------------------+---------+---------+--+------------+------------+
| | | | | | |
+--------------------------------+---------+---------+--+------------+------------+
| Capital and reserves | 19 | | | | |
+--------------------------------+---------+---------+--+------------+------------+
| Share capital | 18 | | | 105,000 | 108,000 |
+--------------------------------+---------+---------+--+------------+------------+
| Share premium | 19 | | | 789,834 | 789,834 |
+--------------------------------+---------+---------+--+------------+------------+
| Capital redemption reserve | 19 | | | 9,845 | 6,845 |
+--------------------------------+---------+---------+--+------------+------------+
| Revaluation reserve | 19 | | | 56,401 | - |
+--------------------------------+---------+---------+--+------------+------------+
| Other reserves | 19 | | | 54,099 | 34,010 |
+--------------------------------+---------+---------+--+------------+------------+
| Retained earnings | 19 | | | 1,255,387 | 695,329 |
+--------------------------------+---------+---------+--+------------+------------+
| Own shares held in treasury | 19 | | | (83,319) | (1,930) |
+--------------------------------+---------+---------+--+------------+------------+
| Total equity | 19 | | | 2,187,247 | 1,632,088 |
+--------------------------------+---------+---------+--+------------+------------+
| | | | | | |
+--------------------------------+---------+---------+--+------------+------------+
| Current liabilities | 20 | | | | |
+--------------------------------+---------+---------+--+------------+------------+
| Trade and other payables | 20 | | | 8,135,670 | 15,609,935 |
+--------------------------------+---------+---------+--+------------+------------+
| Income tax | 20 | | | 583,558 | 603,092 |
+--------------------------------+---------+---------+--+------------+------------+
| Total liabilities | 20 | | | 8,719,228 | 16,213,027 |
+--------------------------------+---------+---------+--+------------+------------+
| Total equity and liabilities | | | | 10,906,475 | 17,845,115 |
+--------------------------------+---------+---------+--+------------+------------+
CoMPANY balance sheet as at 31 december 2008
+--------------------------------+---------+---------+--+------------+------------+
| | | | | 31/12/08 | 31/12/07 |
+--------------------------------+---------+---------+--+------------+------------+
| | Notes | | | | as |
| | | | | | restated |
+--------------------------------+---------+---------+--+------------+------------+
| | | | | GBP | GBP |
+--------------------------------+---------+---------+--+------------+------------+
| Assets | | | | | |
+--------------------------------+---------+---------+--+------------+------------+
| Non-current assets | | | | | |
+--------------------------------+---------+---------+--+------------+------------+
| Property, plant and equipment | 10 | | | 333,286 | 87,347 |
+--------------------------------+---------+---------+--+------------+------------+
| Intangible assets | 11 | | | 39,396 | 38,485 |
+--------------------------------+---------+---------+--+------------+------------+
| Goodwill | 11 | | | 342,872 | 342,872 |
+--------------------------------+---------+---------+--+------------+------------+
| Investments held to maturity | 12 | | | 39,601 | 19,800 |
+--------------------------------+---------+---------+--+------------+------------+
| Available-for-sale investments | 13 | | | 57,500 | 200 |
+--------------------------------+---------+---------+--+------------+------------+
| Investment in subsidiaries | 14 | | | 111,204 | 105,722 |
+--------------------------------+---------+---------+--+------------+------------+
| Deferred income tax | 8 | | | 3,143 | 79,407 |
+--------------------------------+---------+---------+--+------------+------------+
| | | | | 927,002 | 673,833 |
+--------------------------------+---------+---------+--+------------+------------+
| Current assets | | | | | |
+--------------------------------+---------+---------+--+------------+------------+
| Trade and other receivables | 15 | | | 1,842,509 | 428,770 |
+--------------------------------+---------+---------+--+------------+------------+
| Cash and cash equivalents | 17 | | | 1 | 4,115 |
+--------------------------------+---------+---------+--+------------+------------+
| | | | | 1,842,510 | 432,885 |
+--------------------------------+---------+---------+--+------------+------------+
| | | | | | |
+--------------------------------+---------+---------+--+------------+------------+
| Total assets | | | | 2,769,512 | 1,106,718 |
+--------------------------------+---------+---------+--+------------+------------+
| | | | | | |
+--------------------------------+---------+---------+--+------------+------------+
| Equity and liabilities | | | | | |
+--------------------------------+---------+---------+--+------------+------------+
| | | | | | |
+--------------------------------+---------+---------+--+------------+------------+
| Capital and reserves | 19 | | | | |
+--------------------------------+---------+---------+--+------------+------------+
| Share capital | 18 | | | 105,000 | 108,000 |
+--------------------------------+---------+---------+--+------------+------------+
| Share premium | 19 | | | 779,934 | 779,934 |
+--------------------------------+---------+---------+--+------------+------------+
| Capital redemption reserve | 19 | | | 9,845 | 6,845 |
+--------------------------------+---------+---------+--+------------+------------+
| Revaluation reserve | 19 | | | 56,401 | - |
+--------------------------------+---------+---------+--+------------+------------+
| Other reserves | 19 | | | 54,099 | 34,010 |
+--------------------------------+---------+---------+--+------------+------------+
| Retained earnings | 19 | | | 26,547 | 100,890 |
+--------------------------------+---------+---------+--+------------+------------+
| Own shares held in treasury | 19 | | | (83,319) | (1,930) |
+--------------------------------+---------+---------+--+------------+------------+
| Total equity | 19 | | | 948,507 | 1,027,749 |
+--------------------------------+---------+---------+--+------------+------------+
| | | | | | |
+--------------------------------+---------+---------+--+------------+------------+
| Current liabilities | 20 | | | | |
+--------------------------------+---------+---------+--+------------+------------+
| Trade and other payables | 20 | | | 1,725,056 | 75,896 |
+--------------------------------+---------+---------+--+------------+------------+
| Income tax | 20 | | | 95,949 | 3,073 |
+--------------------------------+---------+---------+--+------------+------------+
| Total liabilities | 20 | | | 1,821,005 | 78,969 |
+--------------------------------+---------+---------+--+------------+------------+
| Total equity and liabilities | | | | 2,769,512 | 1,106,718 |
+--------------------------------+---------+---------+--+------------+------------+
Consolidated statement of recognised income
and expense for the year
+--------------------------------+---------+---------+--+------------+-------------+
| | Notes | | | Year to | Year to |
+--------------------------------+---------+---------+--+------------+-------------+
| | | | | 31/12/08 | 31/12/07 |
+--------------------------------+---------+---------+--+------------+-------------+
| | | | | | |
+--------------------------------+---------+---------+--+------------+-------------+
| | | | | GBP | GBP |
+--------------------------------+---------+---------+--+------------+-------------+
| Purchase of own shares | 19 | | | (842,962) | (1,125,013) |
+--------------------------------+---------+---------+--+------------+-------------+
| Sale of shares from treasury | 19 | | | 41,250 | 252,247 |
+--------------------------------+---------+---------+--+------------+-------------+
| Deferred tax asset on share | 8 | | | (29,305) | 29,305 |
| options | | | | | |
+--------------------------------+---------+---------+--+------------+-------------+
| Net income recognised directly | | | | (831,017) | (843,461) |
| in equity | | | | | |
+--------------------------------+---------+---------+--+------------+-------------+
| | | | | | |
+--------------------------------+---------+---------+--+------------+-------------+
| Profit for the period | 19 | | | 1,309,686 | 1,647,767 |
+--------------------------------+---------+---------+--+------------+-------------+
| | | | | | |
+--------------------------------+---------+---------+--+------------+-------------+
| Total recognised income and expense for | | | 478,669 | 804,306 |
| the period | | | | |
+------------------------------------------+---------+--+------------+-------------+
| | | | | | |
+--------------------------------+---------+---------+--+------------+-------------+
| Attributable to equity holders of the | | | 478,669 | 804,306 |
| parent | | | | |
+--------------------------------+---------+---------+--+------------+-------------+
COMPANY statement of recognised income and expense for the year
+--------------------------------+---------+---------+--+------------+-------------+
| | Notes | | | Year to | Year to |
+--------------------------------+---------+---------+--+------------+-------------+
| | | | | 31/12/08 | 31/12/07 |
+--------------------------------+---------+---------+--+------------+-------------+
| | | | | | |
+--------------------------------+---------+---------+--+------------+-------------+
| | | | | GBP | GBP |
+--------------------------------+---------+---------+--+------------+-------------+
| Purchase of own shares | 19 | | | (842,962) | (1,125,013) |
+--------------------------------+---------+---------+--+------------+-------------+
| Sale of shares from treasury | 19 | | | 41,250 | 252,247 |
+--------------------------------+---------+---------+--+------------+-------------+
| Deferred tax asset on share | 8 | | | (29,305) | 29,305 |
| options | | | | | |
+--------------------------------+---------+---------+--+------------+-------------+
| Net income recognised directly | | | | (831,017) | (843,461) |
| in equity | | | | | |
+--------------------------------+---------+---------+--+------------+-------------+
| | | | | | |
+--------------------------------+---------+---------+--+------------+-------------+
| Profit for the period | 19 | | | 675,285 | 1,580,098 |
+--------------------------------+---------+---------+--+------------+-------------+
| | | | | | |
+--------------------------------+---------+---------+--+------------+-------------+
| Total recognised income and expense for | | | (155,732) | 736,637 |
| the period | | | | |
+------------------------------------------+---------+--+------------+-------------+
| | | | | | |
+--------------------------------+---------+---------+--+------------+-------------+
| Attributable to equity holders of the | | | (155,732) | 736,637 |
| company | | | | |
+--------------------------------+---------+---------+--+------------+-------------+
cashflow statementS for the year ended 31 december 2008
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| | | CONSOLIDATED | COMPANY |
+--------------------------------+--------+---------------------------+---------------------------+
| | | | | | |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| | | Year to | Year to | Year to | Year to |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| | | 31/12/08 | 31/12/07 | 31/12/08 | 31/12/07 |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| | | | | | as |
| | | | | | restated |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| | | GBP | GBP | GBP | GBP |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| Cash flow from operating | | | | | |
| activities | | | | | |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| Profit before income tax | | 1,937,211 | 2,281,477 | 2,025,988 | 1,525,361 |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| | | | | | |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| Loss on disposal of property, plant and | 13,904 | - | 13,904 | - |
| equipment | | | | |
+-----------------------------------------+-------------+-------------+-------------+-------------+
| Depreciation and amortisation | | 134,626 | 64,376 | 134,626 | 64,376 |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| Cost of share options | | 20,089 | 16,314 | 14,607 | 10,892 |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| Finance costs | | 39,320 | 26,946 | 100 | (983) |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| | | | | | |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| | | 2,145,150 | 2,389,113 | 2,189,225 | 1,599,646 |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| | | | | | |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| (Increase)/decrease in trade and other | (1,131,217) | 18,201 | (1,413,739) | 22,601 |
| receivables | | | | |
+-----------------------------------------+-------------+-------------+-------------+-------------+
| (Increase)/decrease in investments held | (29,249) | 12,587 | - | - |
| for trading | | | | |
+-----------------------------------------+-------------+-------------+-------------+-------------+
| Increase in trade payables | | 265,559 | 107,693 | 441,584 | 3,986 |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| | | | | | |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| Cash generated from operations | | 1,250,243 | 2,527,594 | 1,217,070 | 1,626,233 |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| | | | | | |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| Interest paid | | (39,320) | (26,946) | (100) | - |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| Interest received | | - | - | - | 983 |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| Income tax (paid)/received | | (600,100) | (444,550) | (5,308) | 21,000 |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| | | | | | |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| Net cash from operating | | 610,823 | 2,056,098 | 1,211,662 | 1,648,216 |
| activities | | | | | |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| | | | | | |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| Cash flows from investing | | | | | |
| activities | | | | | |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| Purchase of property, plant | | (395,381) | (24,240) | (395,381) | (24,240) |
| and equipment | | | | | |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| Purchase of other long term | | (20,700) | (20,000) | (20,700) | (20,000) |
| assets | | | | | |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| | | (416,081) | (44,240) | (416,081) | (44,240) |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| Cash flows from financing | | | | | |
| activities | | | | | |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| Proceeds from sale of treasury | | 41,250 | 252,247 | 41,250 | 252,247 |
| shares | | | | | |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| Purchase of own shares | | (842,962) | (1,125,013) | (842,962) | (1,125,013) |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| Dividends paid | | - | (730,000) | - | (730,000) |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| Net cash used in financing | | (801,712) | (1,602,766) | (801,712) | (1,602,766) |
| activities | | | | | |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| | | | | | |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
| Net (decrease)/increase in cash and | (606,970) | 409,092 | (6,131) | 1,210 |
| cash equivalents | | | | |
+-----------------------------------------+-------------+-------------+-------------+-------------+
| Cash and cash equivalents at the start | 880,591 | 471,499 | 4,115 | 2,905 |
| of the year | | | | |
+-----------------------------------------+-------------+-------------+-------------+-------------+
| Cash and cash equivalents at the end of | 273,621 | 880,591 | (2,016) | 4,115 |
| the year | | | | |
+-----------------------------------------+-------------+-------------+-------------+-------------+
| | | | | |
+-----------------------------------------+-------------+-------------+-------------+-------------+
| Cash and cash equivalents: | | | | |
+-----------------------------------------+-------------+-------------+-------------+-------------+
| Cash at bank and in hand | 275,638 | 880,591 | 1 | 4,115 |
+-----------------------------------------+-------------+-------------+-------------+-------------+
| Bank overdraft | (2,017) | - | (2,017) | - |
+-----------------------------------------+-------------+-------------+-------------+-------------+
| | 273,621 | 880,591 | (2,016) | 4,115 |
+--------------------------------+--------+-------------+-------------+-------------+-------------+
Notes forming part of the financial statements
1. Basis of preparation
The Company has adopted the requirements of International Financial Reporting
Standards (IFRS) and IFRIC interpretations endorsed by the European Union (EU)
and those parts of the Companies Act 1985 applicable to companies reporting
under IFRS. The financial statements have been prepared under the historical
cost convention as modified by the revaluation of available-for-sale financial
assets, and financial assets and liabilities at fair value through profit or
loss.
These financial statements have been prepared in accordance with the accounting
policies set out below, which have been consistently applied to all the years
presented. These accounting policies comply with applicable IFRS standards and
IFRIC interpretations issued and effective at the time of preparing these
statements.
The following IFRS standards, amendments and interpretations are effective for
the company from 1 January 2009 and hence have not been adopted within these
financial statements. The adoptions of these standards, amendments and
interpretations is not expected to have a material impact on the company's
profit for the year or equity:
IFRIC 13 Customer Loyalty Programmes
IFRIC 16 Hedges of a Net Investment in a Foreign Operation
IAS1 Presentation of Financial Statements (revised September 2007)
IFRS 8 Operating Segments
IAS 32 Financial Instruments - Presentation (Amendments)
IAS1 Presentation of Financial Statements - Puttable Financial Instruments and
Obligations Arising on Liquidation
Amendment to IFRS 2 Share Based Payment - Vesting Conditions and Cancellations
IAS 23 Borrowing Costs
IAS 27 Consolidated and Separate Financial Statements
IFRS 3 Business Combinations
IFRIC 15 Agreements for the Construction of Real Estate
IAS 39 Financial Instruments: Recognition and Measurement (Amendment) - Eligible
Hedged Items
Reclassification of Financial Assets (Amendments to IAS 39 Financial
Instruments: Recognition and Measurement and IFRS 7 Financial Instruments:
Disclosures)
IFRIC 17 Distributions of Non-cash Assets to Owners
IFRS 1 First- time Adoption of International Financial Reporting Standards
(revised)
The preparation of financial statements in accordance with IFRS requires the use
of certain accounting estimates. It also requires management to exercise
judgement in the process of applying the Company's accounting policies. The
areas involving a high degree of judgement or complexity, or areas where the
assumptions and estimates are significant to the consolidated financial
statements, are disclosed in Note 24.
2. Summary of significant accounting policies
(a) Revenue
Revenue represents net sales of services, commissions and interest excluding
value added tax. Management fees charged in arrears are accrued pro-rata for the
expired period of each charging interval. Interest is accrued on cash deposits
pro-rata for the expired period of the deposit. Commission income is recognised
as earned.
(b) Basis of consolidation
Subsidiaries are all entities over which the Group has the power to govern the
financial and operating policies generally accompanying a shareholding of more
than half of the voting rights. The existence and effect of potential voting
rights that are currently exercisable or convertible are considered when
assessing whether the Group controls another entity. Subsidiaries are fully
consolidated from the date on which control is transferred to the Group. They
are deconsolidated from the date on which control ceases. The group financial
statements consolidate the financial statements of Jarvis Securities plc, Jarvis
Investment Management plc, Sharegain Limited, JIM Nominees Limited, Galleon
Nominees Limited and Dudley Road Nominees Limited made up to 31 December 2008.
The Group uses the purchase method of accounting for the acquisition of
subsidiaries. The cost of an acquisition is measured as the fair value of the
assets given, equity instruments issued and liabilities incurred or assumed at
the date of exchange, plus costs directly attributable to the acquisition.
Identifiable assets acquired and liabilities and contingent liabilities assumed
in a business combination are measured initially at their fair values at the
acquisition date, irrespective of the extent of any minority interest. The cost
of acquisition over the fair value of the Group's share of identifiable net
assets acquired is recorded as goodwill. If the cost of acquisition is less than
the fair value of the Group's share of the net assets of the subsidiary
acquired, the difference is recognised in the income statement.
Intra-group sales and profits are eliminated on consolidation and all sales and
profit figures relate to external transactions only. No profit and loss account
is presented for Jarvis Securities plc as provided by S230(3) of the Companies
Act 1985.
(c) Property, plant and equipment
All property, plant and equipment is shown at cost less subsequent depreciation
and impairment. Cost includes expenditure that is directly attributable to the
acquisition of the items. Depreciation is provided on cost in equal annual
instalments over the lives of the assets at the following rates:
Leasehold improvements - 33% on cost
Motor vehicles - 15% on cost
Office equipment - 20% on cost
The assets' residual values and useful lives are reviewed, and adjusted if
appropriate, at each balance sheet date. Gains and losses on disposals are
determined by comparing proceeds with carrying amount. These are included in the
income statement. Impairment reviews of property, plant and equipment are
undertaken if there are indications that the carrying values may not be
recoverable or that the recoverable amounts may be less than the asset's
carrying value.
(d) Intangible assets
Intangible assets are capitalised at their fair value on acquisition and carried
at cost less accumulated amortisation. Amortisation is charged to administrative
expenses within the income statement and provided on cost in equal annual
instalments over the lives of the assets at the following rates:
Databases - 4% on cost
Software developments - 33% on cost
Website - 33% on cost
Impairment reviews of intangible assets are undertaken if there are indications
that the carrying values may not be recoverable or that the recoverable amounts
may be less than the asset's carrying value.
(e) Goodwill
Goodwill represents the excess of the fair value of the consideration given over
the aggregate fair values of the net identifiable assets of the acquired trade
and assets at the date of acquisition. Goodwill is tested annually for
impairment and carried at cost less accumulated impairment losses.
(f) Deferred income tax
Deferred income tax is provided in full, using the liability method, on
differences arising between the tax bases of assets and liabilities and their
carrying amounts in the consolidated financial statements. The deferred income
tax is not accounted for if it arises from initial recognition of an asset or
liability in a transaction, other than a business combination, that at the time
of the transaction affects neither accounting or taxable profit or loss.
Deferred income tax is determined using tax rates that have been enacted or
substantially enacted by the balance sheet date and are expected to apply when
the related deferred income tax asset is realised or the deferred income tax
liability is settled.
Deferred income tax assets are recognised to the extent that it is probable that
future taxable profit will be available against which the temporary differences
can be utilised.
Deferred income tax is provided on temporary differences arising on investments
in subsidiaries except where the timing of the reversal of the timing difference
is controlled by the Group and it is probable that the temporary differences
will not reverse in the foreseeable future.
(g) Segmental reporting
A business segment is a group of assets and operations engaged in providing
products or services that are subject to risks and returns that are different
from those of other business segments. The directors regard the operations of
the Group as a single segment.
(h) Pensions
The group operates a defined contribution pension scheme. Contributions payable
for the year are charged to the income statement.
(i) Stockbroking balances
The gross assets and liabilities of the group relating to stockbroking
transactions on behalf of clients are included in trade receivables, trade
payables and cash and cash equivalents.
(j) Operating leases and finance leases
Costs in respect of operating leases are charged on a straight line basis over
the lease term in arriving at the profit before income tax. Where the company
has entered into finance leases, the obligations to the lessor are shown as part
of borrowings and the rights in the corresponding assets are treated in the same
way as owned fixed assets. Leases are regarded as finance leases where their
terms transfer to the lessee substantially all the benefits and burdens of
ownership other than right to legal title.
(k) Finance lease interest
The finance charge is allocated to each period during the lease term so as to
produce a constant periodic rate of interest on the remaining balance of the
liability.
(l) Investments
The Group classifies its investments in the following categories: investments
held to maturity, investments held for trading and available-for-sale
investments. The classification depends on the purpose for which the investments
were acquired. Management determines the classification of its investments at
initial recognition and re-evaluates this designation at every reporting date.
Investments held to maturity
Investments held to maturity are stated at cost. Held to maturity investments
are non-derivative financial assets with fixed or determinable payments and
fixed maturity that an entity has the positive intention and ability to hold to
maturity. Assets in this category are classified as non-current.
Investment held for trading
Investments held for trading are stated at fair value. An investment is
classified in this category if acquired principally for the purpose of selling
in the short term. Assets in this category are classified as current.
Available-for-sale investments
Available-for-sale investments are stated at fair value. They are included in
non-current assets unless management intends to dispose of them within 12 months
of the balance sheet date.
Purchases and sales of investments are recognised on the trade-date - the date
on which the Group commits to purchase or sell the asset. Investments are
initially recognised at fair value. Investments are derecognised when the rights
to receive cash flows from the investments have expired or been transferred and
the Group has transferred substantially all the risks and rewards of ownership.
Realised and unrealised gains and losses arising from changes in fair value of
investments held for trading are included in the income statement in the period
in which they arise. Unrealised gains and losses arising in changes in the fair
value of available-for-sale investments are recognised in equity. When
investments classified as available-for-sale are sold or impaired, the
accumulated fair value adjustments are included in the income statement as gains
and losses from investment securities.
The fair value of quoted investments is based on current bid prices. If the
market for an investment is not active, the Group establishes fair value by
using valuation techniques. These include the use of recent arm's length
transactions, reference to other instruments that are substantially the same, or
discounted cash flow analysis refined to reflect the issuer's specific
circumstances.
The Group assesses at each balance sheet date whether there is objective
evidence that an investment is impaired. In the case of investments classified
as available-for-sale, a significant or prolonged decline in the fair value
below its cost is considered in determining whether the security is impaired.
(m) Cashflow statement
Cash movements relating to stockbroking balances derived from client trading are
excluded from the cashflow statement on the basis that these amounts do not form
part of the cashflow position of the group. DVP cash is client funds held in
trust for delivery versus payment transactions in order to pay market
counterparties for the purchase of equities and other instruments settled via
CREST, the electronic mechanism for the simultaneous and irrevocable transfer of
cash and securities operated by CRESTCo Limited. Hence such cash and cash
equivalents are not readily available for use by the company as they relate to
client transactions.
(n) Foreign Exchange
The group offers settlement of trades in sterling, US dollars, euros, Canadian
dollars, Australian dollars, South African rand and Swiss francs. The group does
not hold any assets or liabilities other than in sterling and converts client
currency on matching terms to settlement of trades realising any currency gain
or loss immediately in the income statement. Consequently the group has no
foreign exchange risk.
(o) Share Capital
Incremental costs directly attributable to the issue of new shares or options
are shown in equity as a deduction from proceeds, net of income tax.
Where the company purchases its equity share capital (treasury shares), the
consideration paid, including any directly attributable incremental costs (net
of income tax), is deducted from equity attributable to the company's equity
holders until the shares are cancelled, reissued or disposed of. Where such
shares are subsequently sold or reissued, any consideration received, net of any
directly incremental transaction costs and the related income tax effects, is
included in equity attributable to the company's equity holders.
(p) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, together
with other short-term, highly liquid investments that are readily convertible
into known amounts of cash and which are subject to an insignificant risk of
changes in value.
(q) Current income tax
Current income tax assets and/or liabilities comprise those obligations to, or
claims from, fiscal authorities relating to the current or prior reporting
periods, that are unpaid at the balance sheet date. They are calculated
according to the tax rates and tax laws applicable to the fiscal periods to
which they relate based on the taxable profit for the year.
(r) Dividend distribution
Dividend distribution to the company's shareholders is recognised as a liability
in the group's financial statements in the period in which interim dividends are
notified to shareholders and final dividends are approved by the company's
shareholders.
3. Group revenue
The revenue of the Group during the year was made in the United Kingdom and the
revenue of the Group for the year derives from the same class of business as
noted in the Directors' Report.
+--------------------------------------------------------+-----------+--+-----------+
| | 2008 | | 2007 |
+--------------------------------------------------------+-----------+--+-----------+
| | GBP | | GBP |
+--------------------------------------------------------+-----------+--+-----------+
| Interest received on stockbroking accounts net of | 2,091,042 | | 1,895,453 |
| interest paid to clients | | | |
+--------------------------------------------------------+-----------+--+-----------+
| Fees, commissions, foreign exchange gains and other | 2,794,207 | | 2,623,663 |
| revenue | | | |
+--------------------------------------------------------+-----------+--+-----------+
| | 4,885,249 | | 4,519,116 |
+--------------------------------------------------------+-----------+--+-----------+
4. Segmental information
All of the reported revenue and operational results for the period derive from
the group's continuing financial services operations.
+--------------------------------------------------------+----------+--+----------+
| 5. Finance costs | 2008 | | 2007 |
+--------------------------------------------------------+----------+--+----------+
| | GBP | | GBP |
+--------------------------------------------------------+----------+--+----------+
| Interest on bank loans, overdrafts and income tax | 39,320 | | 26,946 |
+--------------------------------------------------------+----------+--+----------+
| Interest paid to clients on cash savings products | - | | 52,664 |
+--------------------------------------------------------+----------+--+----------+
| | 39,320 | | 79,610 |
+--------------------------------------------------------+----------+--+----------+
Interest paid on cash savings products is included within administrative
expenses as the holding of client monies and the earning and paying of interest
upon these is a core part of the business activities of Jarvis Investment
Management plc. Cash savings products ceased to be offered during 2007.
+--------------------------------------------------------+----------+--+----------+
| 6. Profit before income tax | 2008 | | 2007 |
+--------------------------------------------------------+----------+--+----------+
| Profit before income tax is stated after charging: | GBP | | GBP |
+--------------------------------------------------------+----------+--+----------+
| Directors' emoluments | 403,386 | | 359,793 |
+--------------------------------------------------------+----------+--+----------+
| Depreciation - owned assets | 115,681 | | 39,564 |
+--------------------------------------------------------+----------+--+----------+
| Amortisation | 18,945 | | 24,812 |
+--------------------------------------------------------+----------+--+----------+
| Operating lease rentals - hire of machinery | 10,566 | | 8,657 |
+--------------------------------------------------------+----------+--+----------+
| Operating lease rentals - land and buildings | 63,500 | | 35,750 |
+--------------------------------------------------------+----------+--+----------+
| Loss on disposal of fixed assets | 13,905 | | - |
+--------------------------------------------------------+----------+--+----------+
| Finance costs | 39,320 | | 62,185 |
+--------------------------------------------------------+----------+--+----------+
| | | | |
+--------------------------------------------------------+----------+--+----------+
| Directors' emoluments | | | |
+--------------------------------------------------------+----------+--+----------+
| Fees | 350,215 | | 325,475 |
| Pension contributions | 18,314 | | 11,964 |
+--------------------------------------------------------+----------+--+----------+
| Cost of share options | 10,832 | | 10,892 |
+--------------------------------------------------------+----------+--+----------+
| Benefits in kind | 24,025 | | 11,462 |
+--------------------------------------------------------+----------+--+----------+
| | 403,386 | | 359,793 |
+--------------------------------------------------------+----------+--+----------+
| Details of the highest paid director are as follows: | | | |
+--------------------------------------------------------+----------+--+----------+
| Aggregate emoluments | 195,976 | | 181,001 |
+--------------------------------------------------------+----------+--+----------+
| Company contributions to personal pension scheme | 13,464 | | 11,964 |
+--------------------------------------------------------+----------+--+----------+
| Cost of share options | 6,585 | | 6,206 |
+--------------------------------------------------------+----------+--+----------+
| Benefits in kind | 12,467 | | 11,462 |
+--------------------------------------------------------+----------+--+----------+
| | 228,492 | | 210,633 |
+--------------------------------------------------------+----------+--+----------+
+--------------------------------------------------------+-----------+---+---------+
| Benefits are accruing for two directors (2007 one director) under a money |
| purchase pension scheme. |
| Staff Costs |
+----------------------------------------------------------------------------------+
| The average number of persons employed by the group, including directors, |
| during the year was as follows: |
+----------------------------------------------------------------------------------+
| | Number | | Number |
+--------------------------------------------------------+-----------+---+---------+
| Management and administration | 26 | | 23 |
+--------------------------------------------------------+-----------+---+---------+
| The aggregate payroll costs of these persons were as | GBP | | GBP |
| follows: | | | |
+--------------------------------------------------------+-----------+---+---------+
| Wages and salaries | 900,189 | | 773,134 |
+--------------------------------------------------------+-----------+---+---------+
| Pension contributions | 18,314 | | 11,964 |
+--------------------------------------------------------+-----------+---+---------+
| Social security | 97,921 | | 85,473 |
+--------------------------------------------------------+-----------+---+---------+
| Cost of share options | 16,314 | | 16,314 |
+--------------------------------------------------------+-----------+---+---------+
| | 1,032,738 | | 886,885 |
+--------------------------------------------------------+-----------+---+---------+
Key personnel
The executive directors are considered to be the key management personnel of the
company.
+--------------------------------------------------------+----------+--+--+---------+
| 7. Auditors' remuneration | |
+----------------------------------------------------------------------+------------+
| During the year the company obtained the following services from the company's |
| auditors as detailed below: |
+-----------------------------------------------------------------------------------+
| | 2008 | | 2007 |
+--------------------------------------------------------+----------+-----+---------+
| | GBP | | GBP |
+--------------------------------------------------------+----------+-----+---------+
| Fees payable to the company's auditors for the audit | 9,525 | | 8,700 |
| of the company's annual financial statements | | | |
+--------------------------------------------------------+----------+-----+---------+
| Fees payable to the company's auditors and its | | | |
| associates for other services: | | | |
+--------------------------------------------------------+----------+-----+---------+
| The audit of the company's subsidiaries, pursuant to | 8,000 | | 7,000 |
| legislation | | | |
+--------------------------------------------------------+----------+-----+---------+
| Total audit fees | 17,525 | | 15,700 |
+--------------------------------------------------------+----------+-----+---------+
| Other services relating to taxation | 2,080 | | 3,225 |
+--------------------------------------------------------+----------+-----+---------+
| All other services | 20,420 | | 12,235 |
+--------------------------------------------------------+----------+-----+---------+
| | 40,025 | | 31,160 |
+--------------------------------------------------------+----------+--+--+---------+
The audit costs of the subsidiaries were invoiced to and met by Jarvis
Securities plc.
+--------------------------------------------------------+----------+---+----------+
| | | | |
+--------------------------------------------------------+----------+---+----------+
| 8. Income and deferred tax charges | 2008 | | 2007 |
+--------------------------------------------------------+----------+---+----------+
| | GBP | | GBP |
+--------------------------------------------------------+----------+---+----------+
| Based on the adjusted results for the year: | | | |
+--------------------------------------------------------+----------+---+----------+
| UK corporation tax | 583,598 | | 697,336 |
+--------------------------------------------------------+----------+---+----------+
| Adjustments in respect of prior years | (3,032) | | (395) |
+--------------------------------------------------------+----------+---+----------+
| Total current income tax | 580,566 | | 696,941 |
+--------------------------------------------------------+----------+---+----------+
| Deferred income tax: | | | |
+--------------------------------------------------------+----------+---+----------+
| Origination and reversal of timing differences | (7,281) | | (8,991) |
+--------------------------------------------------------+----------+---+----------+
| Deferred tax on share options granted | 54,240 | | (54,240) |
+--------------------------------------------------------+----------+---+----------+
| Income tax on profit | 627,525 | | 633,710 |
+--------------------------------------------------------+----------+---+----------+
+--------------------------------------------------------+-----------+--+-----------+
| The income tax assessed for the year is lower than the standard rate of |
| corporation tax in the UK (28.5%). The differences are explained below: |
| |
+-----------------------------------------------------------------------------------+
| Profit before income tax | 1,937,211 | | 2,281,477 |
+--------------------------------------------------------+-----------+--+-----------+
| Profit before income tax multiplied by the standard | 552,105 | | 684,443 |
| rate of corporation tax in the UK of 28.5% (2007 - | | | |
| 30%) | | | |
+--------------------------------------------------------+-----------+--+-----------+
| Effects of: | | | |
+--------------------------------------------------------+-----------+--+-----------+
| Expenses not deductible for tax purposes | 24,428 | | 9,593 |
+--------------------------------------------------------+-----------+--+-----------+
| Income not taxable for tax purposes | 4,848 | | - |
+--------------------------------------------------------+-----------+--+-----------+
| Adjustments to tax charge in respect of previous years | (3,032) | | (395) |
+--------------------------------------------------------+-----------+--+-----------+
| Capital allowances in excess of depreciation | 4,300 | | - |
+--------------------------------------------------------+-----------+--+-----------+
| Marginal relief | (2,083) | | (1,594) |
+--------------------------------------------------------+-----------+--+-----------+
| Cost of share options | - | | 4,894 |
+--------------------------------------------------------+-----------+--+-----------+
| Current income tax charge for the year | 580,566 | | 696,941 |
+--------------------------------------------------------+-----------+--+-----------+
| | | | |
+--------------------------------------------------------+-----------+--+-----------+
+--------------------------------------------------------+----------+---+----------+
| Movement in provision: | | | |
+--------------------------------------------------------+----------+---+----------+
| Provision at start of year | (79,407) | | 13,130 |
+--------------------------------------------------------+----------+---+----------+
| Deferred income tax charged in the income statement | (7,281) | | (63,232) |
| for the year | | | |
+--------------------------------------------------------+----------+---+----------+
| Adjustment in respect of prior periods | 54,240 | | - |
+--------------------------------------------------------+----------+---+----------+
| Deferred income tax charged to equity for the year | 29,305 | | (29,305) |
+--------------------------------------------------------+----------+---+----------+
| Provision at end of year | (3,143) | | (79,407) |
+--------------------------------------------------------+----------+---+----------+
| Provision for deferred income tax: | | | |
+--------------------------------------------------------+----------+---+----------+
| Accelerated capital allowances | (3,143) | | 4,138 |
+--------------------------------------------------------+----------+---+----------+
| Share options granted | - | | (83,545) |
+--------------------------------------------------------+----------+---+----------+
| | (3,143) | | (79,407) |
+--------------------------------------------------------+----------+---+----------+
+----------+-----------------------------+-----+-------+------+------------+--+------------+
| 9. Earnings per share | | | 2008 | | 2007 |
+----------------------------------------------+-------+------+------------+--+------------+
| | | | | GBP | | GBP |
+----------+-----------------------------------+-------+------+------------+--+------------+
| Earnings for the purposes of basic and diluted | | | | |
| earnings per share | | | | |
+------------------------------------------------------+------+------------+--+------------+
| (profit for the period attributable to the equity | | 1,309,686 | | 1,647,767 |
| holders of the parent) | | | | |
+------------------------------------------------------+------+------------+--+------------+
| Date | Event | Number |Days | | | |
+----------+-----------------------------+-------------+------+------------+--+------------+
| Basic earnings per share: | | | | | |
+----------------------------------------+-------------+------+------------+--+------------+
| 1/1/07 | Balance at 1/1/07 | 11,350,000 | 7 | | | 217,671 |
+----------+-----------------------------+-------------+------+------------+--+------------+
| 8/1/07 | Cancellation of treasury | 11,280,000 | 73 | | | 2,256,000 |
| | shares | | | | | |
+----------+-----------------------------+-------------+------+------------+--+------------+
| 21/3/07 | Cancellation of treasury | 11,200,000 | 37 | | | 1,135,342 |
| | shares | | | | | |
+----------+-----------------------------+-------------+------+------------+--+------------+
| 27/4/07 | Cancellation of treasury | 11,000,000 | 124 | | | 3,736,986 |
| | shares | | | | | |
+----------+-----------------------------+-------------+------+------------+--+------------+
| 29/8/07 | Cancellation of treasury | 10,900,000 | 123 | | | 3,673,150 |
| | shares | | | | | |
+----------+-----------------------------+-------------+------+------------+--+------------+
|31/12/07 | Cancellation of treasury | 10,800,000 | 1 | | | 29,589 |
| | shares | | | | | |
+----------+-----------------------------+-------------+------+------------+--+------------+
| 1/1/08 | Balance at 1/1/08 | 10,800,000 | 182 | 5,370,492 | | |
+----------+-----------------------------+-------------+------+------------+--+------------+
| 30/6/08 | Cancellation of treasury | 10,500,000 | 184 | 5,278,688 | | |
| | shares | | | | | |
+----------+-----------------------------+-------------+------+------------+--+------------+
| | | | | 10,649,180 | | 11,048,738 |
+----------+-----------------------------+-------------+------+------------+--+------------+
| Diluted earnings per share: | | | | | |
+----------------------------------------+-------------+------+------------+--+------------+
| 1/1/07 | Balance at 1/1/07 | 12,000,000 | 7 | | | 230,137 |
+----------+-----------------------------+-------------+------+------------+--+------------+
| 8/1/07 | Cancellation of treasury | 11,930,000 | 73 | | | 2,386,000 |
| | shares | | | | | |
+----------+-----------------------------+-------------+------+------------+--+------------+
| 21/3/07 | Cancellation of treasury | 11,850,000 | 37 | | | 1,201,233 |
| | shares | | | | | |
+----------+-----------------------------+-------------+------+------------+--+------------+
| 27/4/07 | Cancellation of treasury | 11,650,000 | 124 | | | 3,957,808 |
| | shares | | | | | |
+----------+-----------------------------+-------------+------+------------+--+------------+
| 18/5/07 | Grant of options | 11,880,000 | 21 | | | 683,507 |
+----------+-----------------------------+-------------+------+------------+--+------------+
| 29/8/07 | Cancellation of treasury | 11,780,000 | 102 | | | 3,291,945 |
| | shares | | | | | |
+----------+-----------------------------+-------------+------+------------+--+------------+
|31/12/07 | Cancellation of treasury | 11,680,000 | 1 | | | 32,000 |
| | shares | | | | | |
+----------+-----------------------------+-------------+------+------------+--+------------+
| 1/1/08 | Balance at 1/1/08 | 11,680,000 | 182 | 5,808,087 | | |
+----------+-----------------------------+-------------+------+------------+--+------------+
| 30/6/08 | Cancellation of treasury | 11,380,000 | 184 | 5,721,093 | | |
| | shares | | | | | |
+----------+-----------------------------+-------------+------+------------+--+------------+
| | | | | 11,529,180 | | 11,782,630 |
+----------+-----------------------------+-----+-------+------+------------+--+------------+
+--------------------+-----------+-------------+--------------+-------------+-----------+-----------+----------+
| 10. Property, plant and | | Leasehold | Motor | Office | | Total |
| equipment | | Improvements | Vehicle | Equipment | | |
+--------------------------------+-------------+--------------+-------------+-----------+-----------+----------+
| Cost: | | | GBP | GBP | GBP | | GBP |
+--------------------+-----------+ +--------------+-------------+-----------+-----------+----------+
| At 1 January 2007 | | | 49,203 | 24,160 | 202,484 | | 275,847 |
+--------------------+-----------+ +--------------+-------------+-----------+-----------+----------+
| Additions | | | 7,009 | 2,897 | 11,830 | | 21,736 |
+--------------------+-----------+ +--------------+-------------+-----------+-----------+----------+
| At 31 December | | | 56,212 | 27,057 | 214,314 | | 297,583 |
| 2007 | | | | | | | |
+--------------------+-----------+ +--------------+-------------+-----------+-----------+----------+
| Additions | | | 284,561 | 36,601 | 54,363 | | 375,525 |
+--------------------+-----------+ +--------------+-------------+-----------+-----------+----------+
| Disposals | | | (52,431) | - | (31,570) | | (84,001) |
+--------------------+-----------+ +--------------+-------------+-----------+-----------+----------+
| At 31 December | | | 288,342 | 63,658 | 237,107 | | 589,107 |
| 2008 | | | | | | | |
+--------------------+-----------+ +--------------+-------------+-----------+-----------+----------+
| Depreciation: | | | | | | | |
+--------------------+-----------+ +--------------+-------------+-----------+-----------+----------+
| At 1 January 2007 | | | 31,050 | 3,926 | 135,696 | | 170,672 |
+--------------------+-----------+ +--------------+-------------+-----------+-----------+----------+
| Charge for the | | | 10,141 | 3,986 | 25,437 | | 39,564 |
| year | | | | | | | |
+--------------------+-----------+ +--------------+-------------+-----------+-----------+----------+
| At 31 December | | | 41,191 | 7,912 | 161,133 | | 210,236 |
| 2007 | | | | | | | |
+--------------------+-----------+ +--------------+-------------+-----------+-----------+----------+
| Charge for the | | | 77,006 | 9,092 | 29,583 | | 115,681 |
| year | | | | | | | |
+--------------------+-----------+ +--------------+-------------+-----------+-----------+----------+
| On Disposal | | | (42,438) | - | (27,658) | | (70,096) |
+--------------------+-----------+ +--------------+-------------+-----------+-----------+----------+
| At 31 December | | | 75,759 | 17,004 | 163,058 | | 255,821 |
| 2008 | | | | | | | |
+--------------------+-----------+ +--------------+-------------+-----------+-----------+----------+
| Net Book Value: | | | | | | | |
+--------------------+-----------+ +--------------+-------------+-----------+-----------+----------+
| At 31 December | | | 212,583 | 46,654 | 74,049 | | 333,286 |
| 2008 | | | | | | | |
+--------------------+-----------+ +--------------+-------------+-----------+-----------+----------+
| | | | | | | | |
+--------------------+-----------+ +--------------+-------------+-----------+-----------+----------+
| At 31 December | | | 15,021 | 19,145 | 53,181 | | 87,347 |
| 2007 | | | | | | | |
+--------------------+-----------+-------------+--------------+-------------+-----------+-----------+----------+
+--------------------+----------+----------+------------+-------------+------------+----------+
| 11. Intangible assets and | Goodwill | Databases | Software | Website | Total |
| goodwill | | | Development | | |
+-------------------------------+----------+------------+-------------+------------+----------+
| | | GBP | GBP | GBP | GBP | GBP |
+--------------------+ +----------+------------+-------------+------------+----------+
| Cost: | | | | | | |
+--------------------+ +----------+------------+-------------+------------+----------+
| At 1 January 2007 | | 342,872 | 25,000 | 91,017 | 70,185 | 529,074 |
+--------------------+ +----------+------------+-------------+------------+----------+
| Additions | | - | - | 2,504 | - | 2,504 |
+--------------------+ +----------+------------+-------------+------------+----------+
| At 31 December | | 342,872 | 25,000 | 93,521 | 70,185 | 531,578 |
| 2007 | | | | | | |
+--------------------+ +----------+------------+-------------+------------+----------+
| Additions | | - | - | 972 | 18,884 | 19,856 |
+--------------------+ +----------+------------+-------------+------------+----------+
| Disposals | | - | - | - | - | - |
+--------------------+ +----------+------------+-------------+------------+----------+
| At 31 December | | 342,872 | 25,000 | 94,493 | 89,069 | 551,434 |
| 2008 | | | | | | |
+--------------------+ +----------+------------+-------------+------------+----------+
| Amortisation: | | | | | | |
+--------------------+ +----------+------------+-------------+------------+----------+
| At 1 January 2007 | | - | 3,177 | 76,577 | 45,655 | 125,409 |
+--------------------+ +----------+------------+-------------+------------+----------+
| Charge for the | | - | 1,250 | 12,802 | 10,760 | 24,812 |
| year | | | | | | |
+--------------------+ +----------+------------+-------------+------------+----------+
| At 31 December | | - | 4,427 | 89,379 | 56,415 | 150,221 |
| 2007 | | | | | | |
+--------------------+ +----------+------------+-------------+------------+----------+
| Charge for the | | - | 1,250 | 2,834 | 14,861 | 18,945 |
| year | | | | | | |
+--------------------+ +----------+------------+-------------+------------+----------+
| On Disposal | | - | - | - | - | - |
+--------------------+ +----------+------------+-------------+------------+----------+
| At 31 December | | - | 5,677 | 92,213 | 71,276 | 169,166 |
| 2008 | | | | | | |
+--------------------+ +----------+------------+-------------+------------+----------+
| Net Book Value: | | | | | | |
+--------------------+ +----------+------------+-------------+------------+----------+
| At 31 December | | 342,872 | 19,323 | 2,280 | 17,793 | 382,268 |
| 2008 | | | | | | |
+--------------------+ +----------+------------+-------------+------------+----------+
| | | | | | | |
+--------------------+ +----------+------------+-------------+------------+----------+
| At 31 December | | 342,872 | 20,573 | 4,142 | 13,770 | 381,357 |
| 2007 | | | | | | |
+--------------------+----------+----------+------------+-------------+------------+----------+
In reviewing the value of goodwill for impairment, the directors have assumed an
attrition rate of 7.0% based upon the actual rate for the previous period and a
discount rate of 2.0%. The discounted cashflow is calculated over a period of 5
years. For impairment to the goodwill value to occur, the attrition rate would
need to exceed 86.7% or the discount rate would need to exceed 24.5%.
+-----------------------------+----------+--+----------+---+----------+--+----------+
| 12. Investments held to | Group | | Company |
| maturity | | | |
+-----------------------------+------------------------+---+------------------------+
| | 2008 | | 2007 | | 2008 | | 2007 |
+-----------------------------+----------+--+----------+---+----------+--+----------+
| Unlisted Investments: | GBP | | GBP | | GBP | | GBP |
+-----------------------------+----------+--+----------+---+----------+--+----------+
| Cost: | | | | | | | |
+-----------------------------+----------+--+----------+---+----------+--+----------+
| At 1 January 2008 | 19,800 | | - | | 19,800 | | - |
+-----------------------------+----------+--+----------+---+----------+--+----------+
| Additions | 19,801 | | 19,800 | | 19,801 | | 19,800 |
+-----------------------------+----------+--+----------+---+----------+--+----------+
| As at 31 December 2008 | 39,601 | | 19,800 | | 39,601 | | 19,800 |
+-----------------------------+----------+--+----------+---+----------+--+----------+
+------------+--------------+---------+--------------+
| Unlisted investments held to |
| maturity are stated at cost. |
| Unlisted investments are |
| interests held in the following |
| company registered in the United |
| Kingdom: |
| |
+----------------------------------------------------+
| |Shareholding |Holding | Business |
+------------+--------------+---------+--------------+
| Alexander | GBP39,601 | Loan |Stockbrokers |
| David | at par | notes | |
| Securities | | | |
| Group plc | | | |
+------------+--------------+---------+--------------+
+----------------------------+----------+--+----------+---+----------+--+----------+
| 13. Available-for-sale | Group | | Company |
| investments | | | |
+----------------------------+------------------------+---+------------------------+
| | 2008 | | 2007 | | 2008 | | 2007 |
+----------------------------+----------+--+----------+---+----------+--+----------+
| Listed Investments: | GBP | | GBP | | GBP | | GBP |
+----------------------------+----------+--+----------+---+----------+--+----------+
| Cost: | | | | | | | |
+----------------------------+----------+--+----------+---+----------+--+----------+
| At 1 January 2008 | 200 | | - | | 200 | | - |
+----------------------------+----------+--+----------+---+----------+--+----------+
| Additions | 899 | | 200 | | 899 | | 200 |
+----------------------------+----------+--+----------+---+----------+--+----------+
| On revaluation | 56,401 | | - | | 56,401 | | - |
+----------------------------+----------+--+----------+---+----------+--+----------+
| As at 31 December 2008 | 57,500 | | 200 | | 57,500 | | 200 |
+----------------------------+----------+--+----------+---+----------+--+----------+
+------------+--------+------------+----------+--------------+
| Listed investments are stated at their |
| market value at 31 December 2008. |
| Listed investments are interests held in |
| the following company registered in the |
| United Kingdom: |
| |
+------------------------------------------------------------+
| | Shareholding | Holding | Business |
| | | | |
+------------+---------------------+----------+--------------+
| Alexander | 2.7% | 11,500,096 | 1p |Stockbrokers |
| David | | |Ordinary | |
| Securities | | | shares | |
| Group plc | | | | |
+------------+--------+------------+----------+--------------+
+------------------------------------+---------------+---------------+--------------+--------------+
| 14. Investments in subsidiaries | | Company |
+------------------------------------+---------------+---------------------------------------------+
| | | 2008 | | 2007 |
| | | | | as restated |
+------------------------------------+ +---------------+--------------+--------------+
| Unlisted Investments: | | GBP | | GBP |
+------------------------------------+ +---------------+---------------+--------------+
| Cost: | | | | |
+------------------------------------+ +---------------+---------------+--------------+
| At 1 January 2008 | | 105,722 | | 100,300 |
+------------------------------------+ +---------------+---------------+--------------+
| Additions (capital contributions | | 5,482 | | 5,422 |
| re share option costs) | | | | |
+------------------------------------+ +---------------+---------------+--------------+
| As at 31 December 2008 | | 111,204 | | 105,722 |
+------------------------------------+---------------+---------------+--------------+--------------+
+------------+--------+------------+----------+----------------+
| | Shareholding | Holding | Business |
+------------+---------------------+----------+----------------+
| Jarvis | 100% | 10,030,000 | 1p | Financial |
| Investment | | |Ordinary |administration |
| Management | | | shares | |
| plc | | | | |
+------------+--------+------------+----------+----------------+
| Dudley | 100% | 2 | GBP1 | Dormant |
| Road | | |Ordinary | nominee |
| Nominees | | | shares | company |
| Limited* | | | | |
+------------+--------+------------+----------+----------------+
| JIM | 100% | 1 | GBP1 | Dormant |
| Nominees | | |Ordinary | nominee |
| Limited* | | | shares | company |
+------------+--------+------------+----------+----------------+
| Galleon | 100% | 2 | GBP1 | Dormant |
| Nominees | | |Ordinary | nominee |
| Limited* | | | shares | company |
+------------+--------+------------+----------+----------------+
| Sharegain | 100% | 1 | GBP1 | Dormant |
| Limited* | | |Ordinary | company |
| | | | shares | |
+------------+--------+------------+----------+----------------+
| * | | | | |
| indirectly | | | | |
| held | | | | |
+------------+--------+------------+----------+----------------+
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| 15. Trade and other receivables | Group | | Company |
+------------------------------------+-----------------------------+--+----------------------------+
| Amounts falling due within one | 2008 | | 2007 | | 2008 | | 2007 |
| year: | | | | | | | |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| | GBP | | GBP | | GBP | | GBP |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| | | | | | | | |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| Trade receivables | 2,937,120 | | 6,988,801 | | 100,384 | | 56,750 |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| Amounts owed by group undertakings | 17,319 | | 53,897 | | 156,900 | | 21,000 |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| Other receivables | 317,752 | | 172,182 | | 20,875 | | 135,089 |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| Charge against ordinary shares | 1,393,345 | | - | | 1,393,345 | | - |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| Prepayments and accrued income | 676,572 | | 1,078,338 | | 171,005 | | 215,931 |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| | 5,342,108 | | 8,293,218 | | 1,842,509 | | 428,770 |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
Trade receivables include GBP2,832,609 (2007 GBP6,914,936) in respect of
delivery versus payment transactions for the settlement of client bargains.
+---------+---------+------------+--+-------------+--+---------+---------+--+------------+
| 16. Investments | Group | | Company |
| held for trading | | | |
+-------------------+-----------------------------+--+-----------------------------------+
| | 2008 | | 2007 | | 2008 | | 2007 |
+-------------------+------------+--+-------------+--+-------------------+--+------------+
| Listed | GBP | | GBP | | GBP | | GBP |
| Investments: | | | | | | | |
+-------------------+------------+--+-------------+--+-------------------+--+------------+
| Valuation: | | | | | | | |
+-------------------+------------+--+-------------+--+-------------------+--+------------+
| At 1 January 2008 | 21,599 | | 34,186 | | - | | - |
+-------------------+------------+--+-------------+--+-------------------+--+------------+
| Additions | 655,949 | | 534,880 | | - | | - |
+-------------------+------------+--+-------------+--+-------------------+--+------------+
| Disposals | (626,700) | | (547,467) | | - | | - |
+-------------------+------------+--+-------------+--+-------------------+--+------------+
| As at 31 December | 50,848 | | 21,599 | | - | | - |
| 2008 | | | | | | | |
+-------------------+------------+--+-------------+--+-------------------+--+------------+
| Listed investments are stated at their market |
| value at 31 December 2008. |
+---------+---------+------------+--+-------------+--+---------+---------+--+------------+
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| 17. Cash and cash equivalents | Group | | Company |
+------------------------------------+-----------------------------+--+----------------------------+
| | 2008 | | 2007 | | 2008 | | 2007 |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| | GBP | | GBP | | GBP | | GBP |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| Balance at bank and in hand - | 275,638 | | 880,591 | | 1 | | 4,115 |
| group | | | | | | | |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| Balance at bank and in hand - | 4,422,083 | | 8,081,596 | | - | | - |
| client balances | | | | | | | |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| | 4,697,721 | | 8,962,187 | | 1 | | 4,115 |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
Cash at bank includes GBP4,422,083 (2007 GBP8,081,596) received in the course of
settlement of bargains. This amount is held by the company in trust on behalf of
clients and is only available to complete the settlement of outstanding
bargains.
+------------------------------------------------------------------+------------+--+------------+
| 18. Share capital | 2008 | | 2007 |
+------------------------------------------------------------------+------------+--+------------+
| | GBP | | GBP |
+------------------------------------------------------------------+------------+--+------------+
| Authorised: | | | |
+------------------------------------------------------------------+------------+--+------------+
| 16,000,000 Ordinary shares of 1p each | 160,000 | | 160,000 |
+------------------------------------------------------------------+------------+--+------------+
| Allotted, issued and fully paid: | | | |
+------------------------------------------------------------------+------------+--+------------+
| 10,500,000 (2007: 10,800,000) Ordinary shares of 1p each | 105,000 | | 108,000 |
+------------------------------------------------------------------+------------+--+------------+
During the year the company repurchased 387,000 of its own Ordinary 1p shares
into Treasury. The company held 1,000 shares in Treasury at the start of the
year and 50,000 shares from Treasury were used to satisfy the exercise of
options by Mr J S Mackay on his resignation during the period. A total of
300,000 shares with a nominal value of GBP3,000 were cancelled during the year.
Hence, 38,000 shares purchased during the year were held in treasury at the year
end.
A total of 600,000 options were granted to directors and employees on admission
of the company to trading on AIM on 23 December 2004 and a further 50,000 to a
director on 20 January 2007. These options were granted with an exercise price
of 82.5p and are first exercisable on 23 December 2009 and with a last exercise
date of 23 December 2014. In addition, 230,000 options were granted on 18 May
2007 to directors and employees with an exercise price of 175p and are first
exercisable on 17 May 2012 and with a last exercise date of 17 May 2017. The
total number of options currently unexercised and in issue is 820,000.
The following options were granted to directors:
+--------------------------------------------------+------------+----+-----------+
| | at 82.5p | | at 175p |
+--------------------------------------------------+------------+----+-----------+
| A J Grant | 273,500 | | 76,500 |
+--------------------------------------------------+------------+----+-----------+
| M J Edmett | 175,000 | | 50,000 |
+--------------------------------------------------+------------+----+-----------+
| J S Mackay (resigned 29 February 2008) | 50,000 | | - |
+--------------------------------------------------+------------+----+-----------+
19. Consolidated statement of changes in equity for the year
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| | Share | Share | Capital | Revaluation | Other | Retained | Own | Total |
| | capital | premium | redemption | reserve | reserves | earnings | shares | equity |
| | | | reserve | | | | held in | |
| | | | | | | | treasury | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| | GBP | GBP | GBP | GBP | GBP | GBP | GBP | GBP |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| At 1 January 2007 | 113,500 | 789,834 | 1,345 | - | 17,696 | 688,886 | (69,793) | 1,541,468 |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Purchase of own shares | - | - | - | - | - | - | (1,125,013) | (1,125,013) |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Sale of shares from | - | - | - | - | - | - | 252,247 | 252,247 |
| treasury | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Deferred tax charged | - | - | - | - | - | 29,305 | - | 29,305 |
| to equity | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Net income recognised | - | - | - | - | - | 29,305 | (872,766) | (843,461) |
| directly in equity | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Cancellation of own | (5,500) | - | 5,500 | - | - | (940,629) | 940,629 | - |
| shares | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Expense of employee | - | - | - | - | 16,314 | - | - | 16,314 |
| options | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Profit for the | - | - | - | - | - | 1,647,767 | - | 1,647,767 |
| financial year | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Dividends | - | - | - | - | - | (730,000) | - | (730,000) |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| At 31 December 2007 | 108,000 | 789,834 | 6,845 | - | 34,010 | 695,329 | (1,930) | 1,632,088 |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Purchase of own shares | - | - | - | - | - | - | (842,962) | (842,962) |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Sale of shares from | - | - | - | - | - | - | 41,250 | 41,250 |
| treasury | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Deferred tax charged | - | - | - | - | - | (29,305) | - | (29,305) |
| to equity | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Net income recognised | - | - | - | - | - | 29,305 | (801,712) | (831,017) |
| directly in equity | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Cancellation of own | (3,000) | - | 3,000 | - | - | (720,323) | 720,323 | - |
| shares | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Expense of employee | - | - | - | - | 20,089 | - | - | 20,089 |
| options | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Profit for the | - | - | - | - | - | 1,309,686 | - | 1,309,686 |
| financial year | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Investment revaluation | - | - | - | 56,401 | - | - | - | 56,401 |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| At 31 December 2008 | 105,000 | 789,834 | 9,845 | 56,401 | 54,099 | 1,255,387 | (83,319) | 2,187,247 |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
19. Company statement of changes in equity for the year
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| | Share | Share | Capital | Revaluation | Other | Retained | Own | Total |
| | capital | premium | redemption | reserve | reserves | earnings | shares | equity |
| | | | reserve | | | | held in | |
| | | | | | | | treasury | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| | GBP | GBP | GBP | GBP | GBP | GBP | GBP | GBP |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| At 1 January 2007 | 113,500 | 779,934 | 1,345 | - | 17,696 | 156,694 | (69,793) | 999,376 |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Purchase of own shares | - | - | - | - | - | - | (1,125,013) | (1,125,013) |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Sale of shares from | - | - | - | - | - | - | 252,247 | 252,247 |
| treasury | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Deferred tax charged | - | - | - | - | - | 29,305 | - | 29,305 |
| to equity | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Net income recognised | - | - | - | - | - | 29,305 | (872,766) | (843,461) |
| directly in equity | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Cancellation of own | (5,500) | - | 5,500 | - | - | (940,629) | 940,629 | - |
| shares | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Expense of employee | - | - | - | - | 16,314 | - | - | 16,314 |
| options | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Profit for the | - | - | - | - | - | 1,580,098 | - | 1,580,098 |
| financial year | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Dividends | - | - | - | - | - | (730,000) | - | (730,000) |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| At 31 December 2007 | 108,000 | 779,934 | 6,845 | - | 34,010 | 95,468 | (1,930) | 1,022,327 |
| as previously stated | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Capital contribution | - | - | - | - | - | 5,422 | - | 5,422 |
| re options cost of | | | | | | | | |
| subsidiary | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| At 31 December 2007 | 108,000 | 779,934 | 6,845 | - | 34,010 | 100,890 | (1,930) | 1,027,749 |
| as restated | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Purchase of own shares | - | - | - | - | - | - | (842,962) | (842,962) |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Sale of shares from | - | - | - | - | - | - | 41,250 | 41,250 |
| treasury | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Deferred tax charged | - | - | - | - | - | (29,305) | - | (29,305) |
| to equity | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Net income recognised | - | - | - | - | - | (29,305) | (801,712) | (831,017) |
| directly in equity | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Cancellation of own | (3,000) | - | 3,000 | - | - | (720,323) | 720,323 | - |
| shares | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Expense of employee | - | - | - | - | 20,089 | - | - | 20,089 |
| options | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Profit for the | - | - | - | - | - | 675,285 | - | 675,285 |
| financial year | | | | | | | | |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| Investment revaluation | - | - | - | 56,401 | - | - | - | 56,401 |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
| At 31 December 2008 | 105,000 | 779,934 | 9,845 | 56,401 | 54,099 | 26,547 | (83,319) | 948,507 |
+------------------------+---------+---------+------------+-------------+----------+-----------+-------------+-------------+
Other reserves relates to the provision for the estimated cost of employee share
options. Following the introduction of IFRIC 11 the options cost to the parent
company relating to employees of the subsidiary has been charged to the income
statement of the subsidiary for the current year and the comparative year has
also been adjusted.
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| 20. Trade and other payables | Group | | Company |
+------------------------------------+-----------------------------+--+----------------------------+
| Amounts falling due within one | 2008 | | 2007 | | 2008 | | 2007 |
| year: | | | | | | | |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| | GBP | | GBP | | GBP | | GBP |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| | | | | | | | |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| Bank loans and overdrafts | 2,017 | | - | | 2,017 | | - |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| Trade payables | 7,436,589 | | 15,449,512 | | 4,025 | | 57,196 |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| Amounts owed to group companies | 7,199 | | - | | 1,212,759 | | - |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| Other taxes and social security | 65,774 | | 78,512 | | 5,097 | | - |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| Other provisions | 610,066 | | 28,044 | | 487,133 | | - |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| Accruals | 14,025 | | 53,867 | | 14,025 | | 18,700 |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| Trade and other payables | 8,135,670 | | 15,609,935 | | 1,725,056 | | 75,896 |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| Income tax | 583,558 | | 603,092 | | 95,949 | | 3,073 |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| Total liabilities | 8,719,228 | | 16,213,027 | | 1,821,005 | | 78,969 |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
Trade payables include GBP7,254,693 (2007 GBP14,996,532) in respect of delivery
versus payment transactions for the settlement of client bargains.
+-----------------------------------------------------+----------+--+---------+
| 21. Dividends | 2008 | | 2007 |
+-----------------------------------------------------+----------+--+---------+
| | GBP | | GBP |
+-----------------------------------------------------+----------+--+---------+
| Final dividends paid on Ordinary 1p shares | - | | 282,000 |
+-----------------------------------------------------+----------+--+---------+
| Interim dividends paid on Ordinary 1p shares | - | | 448,000 |
+-----------------------------------------------------+----------+--+---------+
| | - | | 730,000 |
+-----------------------------------------------------+----------+--+---------+
| Dividend per Ordinary 1p share | - | | 6.5p |
+-----------------------------------------------------+----------+--+---------+
Amounts totalling GBP1,393,345 were paid to shareholders during the year as
dividend payments. Due to certain procedural issues, part of these distributions
require ratification by the Members at the Annual General Meeting in order to be
treated as a lawful dividend and the other part of the distributions require the
declaration of an interim dividend for 2009 to remedy the issues with their
declaration. The total amount is currently shown within trade and other
receivables. Subject to approval, the net position of shareholders will not vary
and this is not an additional dividend payment.
22. Operating lease commitments
At 31 December 2008 the group was committed to making the following payments in
respect of operating leases which expire:
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| | Equipment | | Land & buildings |
+------------------------------------+-----------------------------+--+----------------------------+
| | 2008 | | 2007 | | 2008 | | 2007 |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| | GBP | | | | | | GBP |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| Between one and five years: | 51,069 | | - | | - | | - |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
| After more than five years: | - | | 61,635 | | 555,625 | | 619,125 |
+------------------------------------+------------+--+-------------+--+------------+--+------------+
On 26 September 2007 the company entered into a lease with Sion Holdings
Limited, its parent company, for the rental of 78 Mount Ephraim, a
self-contained office building. The lease has an annual rental of GBP63,500,
being the market rate on an arm's length basis, and expires on 26 September
2017.
In addition, on 24 October 2007, Jarvis Investment Management plc entered into a
lease agreement with Neopost Finance for the rental of various items of post
management equipment. The equipment is required to support the increasing volume
of post received and sent by the group as a result of the growth of the
business. The lease has a term of 6 years.
23. Financial Instruments
The group's principal financial instruments comprise cash, short terms
borrowings and various items such as trade receivables, trade payables etc. that
arise directly from operations. The main purpose of these financial instruments
is the funding of the group's trading activities.
The main financial asset of the group is cash and cash equivalents which is
denominated in sterling and which is detailed in note 17. The group operates a
low risk investment policy and surplus funds are placed on deposit with at least
A rated banks at floating interest rates.
The group also holds investments in equities and loan notes.
Short-term receivables and payables are excluded from these disclosures.
24. Critical accounting estimates and judgements
The Group makes estimates and assumptions concerning the future. These estimates
and judgements are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the
circumstances. The resulting accounting estimates will, by definition, seldom
equal the related actual results. The estimates and assumptions that have a
significant risk of causing a material adjustment to the carrying amounts of
assets within the next financial year relate to goodwill and the expense of
employee options.
The Group tests annually whether goodwill has suffered any impairment, in
accordance with the accounting policy stated in Note 2 (e). These calculations
require the use of estimates. The assumptions and sensitivity relating to the
impairment tests are detailed in note 11.
Employee options are expensed equally in each year from issue to the date of
first exercise. The total cost is calculated on issue based on the Black Scholes
method with a volatility rate of 30% and a risk free interest rate of 3.75%. It
is assumed that all current employees with options will still qualify for the
options at the exercise date.
25. Immediate and ultimate parent undertaking
The company's immediate and ultimate parent undertaking is Sion Holdings
Limited, a company registered in England and Wales. The largest set of accounts
that Jarvis Securities plc is consolidated into is that of Sion Holdings
Limited. Sion Holdings Limited is controlled by Mr A J Grant by virtue of his
majority shareholding.
26. Related party transactions
At the year end Sion Holdings Limited had an outstanding inter-company loan
balance due from Jarvis Securities plc of GBP7,199 (2007 GBPnil). Sion Holdings
Limited owed Jarvis Securities plc GBPnil (2007 GBP5,000 for invoiced services).
On 26 September 2007 the company entered into a lease with Sion Holdings
Limited, its parent company, for the rental of 78 Mount Ephraim, a
self-contained office building. The lease has an annual rental of GBP63,500,
being the market rate on an arm's length basis, and expires on 26 September
2017. During the year the company made a management charge of GBP10,000 to Sion
Holdings Ltd for office and administrative services and paid Sion Holdings
Limited rent of GBP63,500 under the terms of the lease of 78 Mount Ephraim.
Other receivables for the group include GBP822 (2007 GBPnil) due from Mr A J
Grant, and for the company and group include GBP5,000 (2007 GBPnil) due from Mr
M J Edmett, both directors of the company.
Jarvis Investment Management plc paid a performance related management charge to
Jarvis Securities plc of GBP475,000 (2007 nil) on 31 December 2008 and owed the
company GBP1,205,560 at the year end.
In addition, Sion Holdings Limited owed Jarvis Investment Management plc
GBP17,319 (2007 GBP53,897) at the year end relating to group VAT.
27. Event after the balance sheet date
Amounts totalling GBP1,393,345 were paid to shareholders during the year as
dividend payments. Due to certain procedural issues, part of these distributions
require ratification by the Members at the Annual General Meeting in order to be
treated as a lawful dividend and the other part of the distributions require the
declaration of an interim dividend for 2009 to remedy the issues with their
declaration. Consequently the Board proposes the payment of an interim dividend
as detailed in the Notice of Meeting.
28. Capital commitments
The company had no capital commitments at 31 December 2008 (2007 GBP36,700).
29. Fair value estimation
The fair value of financial instruments traded in active markets (such as
trading and available for sale securities) is based on quoted market prices at
the balance sheet date. The quoted market price used for financial assets held
by the company is the current bid price.
The carrying value less impairment provision of trade receivables and payables
are assumed to approximate their fair values.
30. Financial risk management objectives and policies
The directors consider that their main risk management objective is to monitor
and mitigate the key risks to the Group, which are considered to be principally
credit risk, compliance risk, liquidity risk and operational risk. Several
high-level procedures are already in place to enable all risks to be better
controlled. These include detailed profit forecasts by business segment, monthly
management accounts and comparisons against forecast, regular meetings of the
full Board of Directors, and more regular senior management meetings.
The group's main credit risk is exposure to the trading accounts of clients.
This credit risk is controlled via the use of credit algorithms within the
computer systems of the subsidiary. These credit limits prevent the processing
of trades in excess of the available margin at 50% of the current portfolio
value of a client.
A further credit risk exists in respect of trade receivables. The group's policy
is to monitor trade and other receivables and avoid significant concentrations
of credit risk. Aged receivables reports are reviewed regularly and significant
items brought to the attention of senior management.
The compliance risk of the group is controlled through the use of robust
policies, procedures, the segregation of tasks, internal reviews and systems
controls. These processes are based upon the Rules and guidance notes of the
Financial Services Authority and the London Stock Exchange and are overseen by
the compliance officer together with the management team.
The group aims to fund its expansion plans mainly from existing cash balances
without making use of bank loans or overdraft facilities. Financial risk is
therefore mitigated by the maintenance of positive cash balances and by the
regular review of the banks used by the Group. Other risks, including
operational, reputational and legal risks are under constant review at senior
management level by the executive directors and senior managers at their regular
meetings, and by the full board at their regular meetings.
The directors do not consider that the Group is materially exposed to foreign
exchange risk or interest rate risk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR JJMFTMMTMBFL
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