TIDMWCW
RNS Number : 7593U
Walker Crips Group plc
27 November 2019
27 November 2019
Walker Crips Group plc
("Walker Crips", the "Company" or the "Group")
Results for the six months ended 30 September 2019
Walker Crips Group plc today announces its interim results for
the six months ended 30 September 2019
Walker Crips Group plc is a long-established business delivering
investment management, stockbroking and wealth management services
to UK retail and intermediary clients. We continue to embed
technology in our core services to enhance our customers'
experience, broaden our product offerings, empower our staff and
pursue business efficiencies.
HIGHLIGHTS
-- Group revenues increased by 3.3% to GBP15.6 million (2018: GBP15.1 million).
-- Profit before tax GBP620,000 (2018: GBP213,000).
-- Operating profit before exceptional item GBP408,000 (2018: GBP188,000).
-- Operating profit GBP617,000 inclusive of GBP209,000 exceptional (2018: GBP188,000).
-- Assets under Management and Administration GBP5.1 billion (31 March 2019: GBP5.0 billion).
-- Interim dividend increased to 0.60 pence per share (2018
interim dividend: 0.58 pence per share).
David Gelber, Chairman of Walker Crips Group plc, says:
"Against the ongoing uncertainty surrounding the terms for the
United Kingdom's exit from the EU, I report that nervousness of
markets has resulted in continued lower levels of volume driven
broking commission revenue during the period. However, we are
making progress implementing our strategy and the resulting
increase in investment management fee income, interest margin on
managed deposits and revenue from our trading book has driven an
encouraging increase in operating profit before exceptional item of
GBP408,000 (2018: GBP188,000).
"Revenues from the Investment Management division increased by
2.7% during the period to GBP14.51 million (2018: GBP14.13
million), with an increase of 7.4% in management fee revenues from
GBP9.4 million to GBP10.1 million, partly offsetting a decrease of
19.1% in commission income from GBP4.7 million to GBP3.8
million.
"Assets under Management and Administration remain marginally
above our targeted milestone of GBP5 billion.
"The improved results for the first half year are an important
step in the right direction as the business and newly shaped
leadership team looks to build on our core investment management,
wealth management and technology competencies."
For further information, please contact:
Walker Crips Group plc Tel: +44 (0)20 3100 8000
Khadeeja Paul, Media Relations
Four Communications Tel: +44 (0)20 3697 4200
Mark Knight
walkercrips@fourcommunications.com
Cantor Fitzgerald Europe Tel: +44 (0)20 7894 7000
Philip Davies/Will Goode
Further information on Walker Crips Group is available on the
Company's website: www.wcgplc.co.uk
Chairman's Statement
Introduction
Against the ongoing uncertainty surrounding the terms for the
United Kingdom's exit from the EU, I report that nervousness of
markets has resulted in continued lower levels of volume-driven
broking commission revenue during the period. However, we are
making progress implementing our strategy and the resulting
increases in investment management fee income, interest margin on
managed deposits and revenue from our trading book has driven an
encouraging increase in operating profit before exceptional item of
GBP408,000 (2018: GBP188,000). Profit before tax for the six months
is GBP620,000 (2018: GBP213,000), having benefitted from the
recovery of a longstanding disputed insurance claim of GBP209,000
referenced below (note 6).
Trading
Total revenue in the period increased by 3.3% to GBP15.58
million (2018: GBP15.07 million), reflecting the net impact of the
changing components of our income stream supported by higher
structured investment and investor immigration revenues.
Non-broking income as a proportion of total income is now 76%
(2018: 69%), reflecting the impact of declining trading volumes and
increasing recurring fees, arbitrage profits and interest margin.
Our arbitrage trading desk exploited several timing differences in
international markets to produce increased gains during the period
without any material increase in exposure.
Assets under Management and Administration at 30 September 2019
were GBP5.1 billion (31 March 2019: GBP5.0 billion).
Management continue to focus on managing the cost base, given
upward pressures on salaries and other operating expenses. It is
therefore disappointing to report that pre-exceptional item
administrative expenses of GBP10.49 million have increased by 5.5%
compared to GBP9.94 million in the prior period. Not all of this is
within our control, with notable drivers including a substantial
increase of GBP195,000 in our contribution to the Financial
Services Compensation Scheme and an GBP11,000 adverse operating
expense impact due to the adoption of IFRS 16 (together with a
further GBP81,000 included within finance costs) (see below and
note 1). The reported exceptional item mitigates these increases in
the period, but is viewed as non-recurring because it represents a
disputed insurance recovery of GBP209,000 relating to a historic
claim expensed in prior periods that was resolved in the period
following arbitration proceedings (note 6).
Dividend
The Board has approved an interim dividend of 0.60 pence per
share (2018: 0.58 pence per share) payable on 20 December 2019 to
those shareholders on the register at the close of business on 6
December 2019. The Board will continue to set the final dividend in
light of the Group's business performance, capital headroom, market
outlook and cash flow considerations.
Investment Management
Revenues from the Investment Management division increased by
2.7% during the period to GBP14.51 million (2018: GBP14.13
million), with an increase of 7.4% in management fee revenues from
GBP9.4 million to GBP10.1 million partly offsetting a decrease of
19.1% in commission income from GBP4.7 million to GBP3.8 million.
The fall in commission income principally reflects lower trading
volumes, but is also partly explained by clients switching from
commission-based to fixed fee tariffs.
Wealth Management
Our clients continue to require and request fee-based wealth
management advice. Our York Wealth Management division has seen
overall turnover increase by 11% to GBP755,000 (2018: GBP680,000).
The Wealth team are continuing with their strategy of securing
clients under an ongoing service proposition, which has seen
recurring revenues increase by 17% to GBP567,000 and Assets under
Management by 10% to just short of GBP197 million. Part of this
success was taking full ownership of the previous joint venture
with a local firm of Accountants, JWP Creers, securing over
GBP70,000 of recurring annual revenue and Assets under Management
of approximately GBP11 million. In line with our continued
investment in technology, we have implemented a new back office
system that will further streamline business processes and improve
client communication.
Our pension management team, following a full review of our SIPP
fee tariffs, now have a fully transparent and competitive product
supported by robust back office systems, leaving us ideally placed
to expand our client base. Our SSAS client book remains consistent
and we see growth in this market through our introducers and
potential acquisition of smaller competitors. Recurring revenue has
remained stable, increasing slightly to GBP300,000 compared to the
prior period.
Acquisition
As referred to above, the Group acquired full ownership of JWP
Creers Wealth Management Limited on 1 April 2019, which was
previously a joint venture. This completed on 1 April 2019 for cash
consideration of GBP47,000. JWP Creers Wealth Management Limited
has changed its name to Walker Crips Ventures Limited.
Technology
EnOC, our technology subsidiary, aims to close the technology
gap by engineering out complexities. During the period EnOC Pro
Platform (www.enoc.pro) was launched, which is a cloud service that
helps industry practitioners address the administration of the new
SM&CR regulatory regime. This service seeks to disrupt the
established regulation technology space by providing a
comprehensive and user-friendly solution on a low-cost subscription
basis. It is too early to report on the traction and support the
product will receive as financial services businesses look to
streamline and improve their compliance solutions.
IFRS 16 accounting treatment
The Group has adopted IFRS 16 "Leases" from 1 April 2019. The
first-time adoption of the accounting standard has had the impact
of increasing the Group's net assets by GBP601,000 and the reported
expenses for the period of GBP92,000. All long-term lease
commitments are now recognised as "right-of-use assets" and
corresponding liabilities as "lease liabilities" on the statement
of financial position. Note 1 provides a comprehensive explanation
of the impact of this new financial reporting standard.
Directors, Account Executives and Staff
I would like to thank all my fellow directors, investment
managers and advisers and members of staff for their continued
commitment to the highest levels of client service, support and
diligence during the period.
I am very pleased to confirm the appointment of Nick Hansen(*)
as CEO of Walker Crips Investment Management Limited ("WCIM"), our
main operating subsidiary. Nick built and has led our successful
Structured Products business since 2007. As he embarks on the
challenges ahead of growing the core business, his progress will be
enhanced by the simultaneous appointment of Chris Darbyshire(*) ,
as Chief Investment Officer. Chris brings his extensive industry
experience to a new era of leadership at the heart of the Group's
activities.
I am also very pleased to confirm the promotion of Sanath
Dandeniya to Group Finance Director. Sanath, Finance Director of
WCIM, steps into the place of Rodney Fitzgerald on the Parent
Board.
With these management appointments, we believe that we now have
in place a new generation of skilled senior management team, with
the energy and skills to manage and grow our business into the
future.
Outlook
Assets under Management and Administration remain marginally
above our targeted milestone of GBP5 billion and the growing
diversity of our service offerings has stood our revenue base in
good stead with a further increase during the period.
The improved results for the first half year are an important
step in the right direction as the business looks to build on its
in-house strengths and capabilities. With healthy liquid resources
and a new senior management team, we look forward with confidence
to continuing to implement strategic priorities.
David Gelber
Chairman
27 November 2019
Walker Crips Group plc
* Awaiting approval from the FCA
Walker Crips Group plc
Condensed Consolidated Income Statement
For the six months ended 30 September 2019
Unaudited Unaudited Audited
September September March
2019 2018 2019
Notes GBP'000 GBP'000 GBP'000
------------------------------------ ------ ----------------- ------------------ ---------
Revenue 2 15,581 15,072 30,458
Commission and fees paid (4,686) (4,955) (9,673)
Share of after tax profit from
joint venture - 9 14
------------------------------------- ------ ----------------- ------------------ ---------
Gross profit 10,895 10,126 20,799
Administrative expenses (10,487) (9,938) (20,365)
Exceptional items 6 209 - (32)
------------------------------------- ------ ----------------- ------------------ ---------
Operating profit 617 188 402
Investment revenue 94 27 90
Finance costs (91) (2) (3)
------------------------------------- ------ ----------------- ------------------ ---------
Profit before tax 620 213 489
Taxation (118) (41) (156)
------------------------------------- ------
Profit for the period attributable
to equity holders of the Parent
Company 502 172 333
------------------------------------- ------ ----------------- ------------------ ---------
Earnings per share 3
Basic 1.18p 0.41p 0.78p
Diluted 1.18p 0.41p 0.78p
------------------------------------- ------ ----------------- ------------------ ---------
Walker Crips Group plc
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 September 2019
Unaudited Unaudited Audited
September September March
2019 2018 2019
GBP'000 GBP'000 GBP'000
Profit for the period 502 172 333
--------------- --------------- -------------
Total comprehensive income for the
period attributable to equity holders
of the Parent Company 502 172 333
--------------- --------------- -------------
Walker Crips Group plc
Condensed Consolidated Statement of Financial Position
As at 30 September 2019
Unaudited Unaudited Audited
September September March
2019 2018 2019
Notes GBP'000 GBP'000 GBP'000
---------------------- ------------------- ----------------
Non-current assets
Goodwill 4,413 4,388 4,388
Other intangible assets 7,036 7,550 7,262
Property, plant and equipment 2,010 2,705 2,520
Right-of-use assets 1 5,048 - -
Interest in Joint Venture - 40 44
Investments - fair value through profit
or loss 7 51 52 51
------------------- ----------------
18,558 14,735 14,265
---------------------- ------------------- ----------------
Current assets
Trade and other receivables 23,823 30,362 35,785
Investments - fair value through profit
or loss 8 963 1,667 1,005
Cash and cash equivalents 7,552 5,016 6,916
------------------- ----------------
32,338 37,045 43,706
---------------------- ------------------- ----------------
Total assets 50,896 51,780 57,971
---------------------- ------------------- ----------------
Current liabilities
Trade and other payables (21,921) (27,910) (34,095)
Current tax liabilities (314) (78) (178)
Deferred tax liabilities (303) (237) (317)
Bank overdrafts (3) (115) (127)
Provisions (183) (461) (484)
Lease liabilities 1 (1,067) - -
---------------------- ------------------- ----------------
(23,791) (28,801) (35,201)
---------------------- ------------------- ----------------
Net current assets 8,547 8,244 8,505
---------------------- ------------------- ----------------
Non-current liabilities
Deferred cash consideration (47) (137) (47)
Lease liabilities 1 (3,833) - -
Dilapidation provision (542) (543) (542)
Landlord contribution to leasehold
improvements 1 - (492) (460)
---------------------- ------------------- ----------------
(4,422) (1,172) (1,049)
---------------------- ------------------- ----------------
Net assets 22,683 21,807 21,721
---------------------- ------------------- ----------------
Equity
Share capital 10 2,888 2,888 2,888
Share premium account 3,763 3,818 3,763
Own shares (312) (312) (312)
Retained earnings 11,621 10,745 10,659
Other reserves 4,723 4,668 4,723
Equity attributable to equity holders of the
Parent Company 22,683 21,807 21,721
---------------------- ------------------- ----------------
Walker Crips Group plc
Condensed Consolidated Statement of Cash Flows
For the six months ended 30 September 2019
Unaudited Unaudited Audited
September September March
2019 2018 2019
Notes GBP'000 GBP'000 GBP'000
------------------------- ------------------------- ---------
Operating activities
Cash generated / (used) by operations 11 1,463 (2,251) (631)
Tax received - - 66
Net cash generated / (used) by operating
activities 1,463 (2,251) (565)
------------------------- ------------------------- ---------
Investing activities
Purchase of property, plant and equipment (193) (296) (382)
Sale of investments held for trading - 207 789
Sale of investments held at fair value 140 - -
through profit and loss
Consideration paid on acquisition of client
lists (53) (2) (111)
Consideration paid on acquisition of 21 - -
subsidiary net of cash acquired
Deferred consideration paid on acquisition
of subsidiary - (600) (600)
Dividends received 10 6 23
Interest received 73 21 67
Net cash used by investing activities (2) (664) (214)
------------------------- ------------------------- ---------
Financing activities
Dividends paid (141) (549) (796)
Interest paid (10) (2) (3)
Repayment of lease liabilities (469) - -
Repayment of lease interest (81) - -
Net cash used by financing activities (701) (551) (799)
------------------------- ------------------------- ---------
Net increase / (decrease) in cash and cash
equivalents 760 (3,466) (1,578)
Net cash and cash equivalents at beginning
of period 6,789 8,367 8,367
Net cash and cash equivalents at end of
period 7,549 4,901 6,789
========================= ========================= =========
Cash and cash equivalents 7,552 5,016 6,916
Bank overdrafts (3) (115) (127)
7,549 4,901 6,789
========================= ========================= =========
Walker Crips Group plc
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 September 2019
Own
Share Share premium shares Total
capital account held Capital redemption Other Retained earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Equity as at 31
March 2018 2,861 3,674 (312) 111 4,557 11,122 22,013
--------------------- --------------------- --------------------- --------------------- --------------------- --------------------- ---------------------
Total
comprehensive
income for the
period - - - - - 172 172
--------------------- --------------------- --------------------- --------------------- --------------------- --------------------- ---------------------
Contributions by
and distributions
to owners
Dividends paid - - - - - (549) (549)
Issue of shares
on acquisition
of intangibles
and as deferred
consideration 27 144 - - - - 171
--------------------- --------------------- --------------------- --------------------- --------------------- --------------------- ---------------------
Total
contributions by
and
distributions to
owners 27 144 - - - (549) (378)
--------------------- --------------------- --------------------- --------------------- --------------------- --------------------- ---------------------
Equity as at 30
September 2018 2,888 3,818 (312) 111 4,557 10,745 21,807
--------------------- --------------------- --------------------- --------------------- --------------------- --------------------- ---------------------
Total
comprehensive
income for the
period - - - - - 161 161
--------------------- --------------------- --------------------- --------------------- --------------------- --------------------- ---------------------
Contributions by
and distributions
to owners
Dividends paid - - - - - (247) (247)
Reclassification
of premium on
shares issued - (55) - - 55 - -
Total
contributions by
and
distributions to
owners - (55) - - 55 (247) (247)
--------------------- --------------------- --------------------- --------------------- --------------------- --------------------- ---------------------
Equity as at 31
March 2019 2,888 3,763 (312) 111 4,612 10,659 21,721
--------------------- --------------------- --------------------- --------------------- --------------------- --------------------- ---------------------
Total
comprehensive
income for the
period - - - - - 502 502
--------------------- --------------------- --------------------- --------------------- --------------------- --------------------- ---------------------
Contributions by
and distributions
to owners
Dividends paid - - - - - (141) (141)
Effect of
adoption of IFRS
16 (see note 1) - - - - - 601 601
Total
contributions by
and
distributions to
owners - - - - - 460 460
--------------------- --------------------- --------------------- --------------------- --------------------- --------------------- ---------------------
Equity as at 30
September 2019 2,888 3,763 (312) 111 4,612 11,621 22,683
--------------------- --------------------- --------------------- --------------------- --------------------- --------------------- ---------------------
Walker Crips Group plc
Notes to the condensed consolidated financial statements for the
six months ended 30 September 2019
1. Basis of preparation and significant accounting policies
Basis of preparation
The Group's consolidated financial statements are prepared in
accordance with International Financial Reporting Standards as
adopted by the EU (IFRS). These condensed financial statements are
presented in accordance with IAS 34 Interim Financial
Reporting.
The condensed consolidated financial statements have been
prepared on the basis of the accounting policies and methods of
computation set out in the Group's consolidated financial
statements for the year ended 31 March 2019 except for those that
relate to new standards and interpretations effective for the first
time for periods beginning on or after 1 April 2019.
The condensed consolidated financial statements should be read
in conjunction with the Group's audited financial statements for
the year ended 31 March 2019. The interim financial information is
unaudited and does not constitute statutory accounts as defined in
section 434 of the Companies Act 2006. The Group's financial
statements for the year ended 31 March 2019 have been reported on
by the auditors and delivered to the Registrar of Companies. The
report of the auditors was unqualified and did not draw attention
to any matters by way of emphasis. They also did not contain a
statement under section 498 (2) or (3) of the Companies Act 2006.
The interim financial information has neither been audited nor
reviewed pursuant to guidance issued by the Audit Procedures
Board.
Changes in reporting standards and interpretations
This is the first set of the Group's financial statements where
IFRS 16 "Leases" has been applied. This new standard was adopted on
1 April 2019. Under the transition method chosen, comparative
information is not restated. Changes to significant accounting
policies are described further below in this note.
IFRS 16 "Leases"
This note explains the impact of the adoption of IFRS 16 on the
Group's interim financial statements and discloses the new
accounting policy that has been applied from 1 April 2019.
IFRS 16 provides a single lessee accounting model by removing
the IAS 17 classification of leases as either operating or finance
leases. The standard introduces a single, on-balance sheet
accounting model, which requires:
-- recognition of a right-of-use asset and corresponding lease
liability with respect to all lease arrangements in which the Group
is the lessee, except for short term leases and leases of low value
assets.
-- recognition of a depreciation charge on the right-of-use
asset on a straight-line basis over the shorter of the expected
life of the asset and the lease term.
-- recognition of an interest charge arising from the unwinding
of the discounted lease liability over the lease term.
Transition method and practical expedients utilised
The Group has adopted IFRS 16 retrospectively from 1 April 2019
but has not restated comparatives for prior year ending 31 March
2019, as permitted under the specific transitional provisions in
the standard. The reclassifications and the adjustments arising
from the new leasing rules are therefore recognised in the opening
statement of financial position on 1 April 2019.
The Group elected to apply the practical expedient to not
reassess whether a contract is, or contains, a lease at the date of
initial application. Contracts entered into before the transition
date that were not identified as leases under IAS 17 and IFRIC 4
were not reassessed. The definition of a lease under IFRS 16 was
applied only to contracts entered into or changed on or after 1
April 2019.
IFRS 16 provides for certain optional practical expedients,
including those related to the initial adoption of the standard.
The Group applied the following practical expedients when applying
IFRS 16 to leases previously classified as operating leases under
IAS 17:
-- Apply a single discount rate to a portfolio of leases with
reasonably similar characteristics.
-- Exclude initial direct costs from the measurement of
right-of-use assets at the date of initial application for leases
where the right-of-use asset was determined as if IFRS 16 had been
applied since the commencement date.
-- Reliance on previous assessments on whether leases are
onerous as opposed to preparing an impairment review under IAS 36
as at the date of initial application.
-- Applied the exemption not to recognise right-of-use assets
and liabilities for leases with less than 12 months of lease term
remaining as of the date of initial application.
-- The use of hindsight in determining the lease term where the
contract contains options to extend or terminate the lease.
Adjustments recognised on adoption of IFRS 16
As a lessee, the Group previously classified leases as operating
or finance leases based on its assessment of whether the lease
transferred substantially all of the risks and rewards of
ownership. Under IFRS 16, the Group recognises right-of-use assets
and lease liabilities for most leases. However, the Group has
elected not to recognise right-of-use assets and lease liabilities
for some leases of low value assets based on the value of the
underlying asset when new or for short-term leases with a lease
term of 12 months or less.
On adoption of IFRS 16, the Group recognised right-of-use assets
and lease liabilities in relation to leases of property, software
and hire of equipment, which had previously been classified as
operating leases. The lease liabilities were measured at the
present value of the remaining lease payments, discounted using the
Group's incremental borrowing rate as at 1 April 2019. The Group's
incremental borrowing rate is the rate at which a similar borrowing
could be obtained from an independent creditor under comparable
terms and conditions. The incremental borrowing rates used by the
Group to measure lease liabilities at 1 April 2019 are listed in
the table below
Incremental Borrowing
Rate
Leased property 3.23%
----------------------
Hire of equipment 2.87%
----------------------
Software licenses 2.87%
----------------------
In the context of transition to IFRS 16, right-of-use assets of
GBP5,501,000 and lease liabilities of GBP5,370,000 were recognised
as at 1 April 2019. Of these lease liabilities, GBP1,061,000 was
due within one year and were captured within current liabilities in
the statement of financial position. In addition, the Group has
decided not to apply the new IFRS 16 guidance to leases whose lease
term will end within 12 months of the date of initial application.
In such cases, the leases are accounted for as short-term leases
and the lease payments associated with them are recognised as an
expense from short term leases.
The following table reconciles the minimum lease commitments
disclosed in the Group's 31 March 2019 annual financial statements
to the amount of lease liabilities recognised on 1 April 2019:
As at
1 April
2019
GBP'000
Operating lease commitments disclosed as at 31 March
2019 (see note 30 of the Annual Report and Accounts
2019) 7,214
Less: Service & Maintenance element included within
lease commitments (997)
---------
Adjusted operating lease commitments 6,217
=========
Discounted using the lessee's incremental borrowing
rate of at the date of initial application 5,237
Add: finance lease liabilities recognised as at 1
April 2019 142
Less: short-term leases recognised on a straight-line
basis as expense (9)
---------
Lease liability recognised as at 1 April 2019 5,370
=========
Of which were due:
Current lease liabilities 1,061
Non-current lease liabilities 4,309
---------
5,370
=========
The Group's leasing activities
The Group leases various offices, software and equipment that
were recognised as right-of use assets on the application of IFRS
16. Group's lease contracts are typically made for fixed periods of
2 to 10 years and extension and termination options are included in
a number of property and software leases across the Group. These
terms are used to maximise operational flexibility in terms of
managing contracts.
The extensions to leases are exercisable only by the Group and
not by the respective lessor. Lease terms are negotiated on an
individual basis and contain a wide range of different but
comparable terms and conditions. The lease agreements do not impose
any covenants, but leased assets may not be used as security for
borrowing purposes.
Prior to the implementation of IFRS 16, payments made under
operating leases (net of any incentives received from the lessor)
were charged to profit or loss on a straight-line basis over the
period of the lease. From 1 April 2019, leases are recognised as a
right-of-use asset and a corresponding liability at the date at
which the leased asset is available for use by the Group. Each
lease payment is allocated between the liability and finance cost.
The finance cost is charged to profit or loss over the lease period
so as to produce a constant periodic rate of interest on the
remaining balance of the liability for each period. The
right-of-use assets are depreciated over the shorter of the asset's
useful life and the lease term on a straight-line basis.
Assets and liabilities arising from a lease are initially
measured on a present value basis. Lease liabilities include the
net present value of the following lease payments:
-- fixed payments (including in-substance fixed payments), less
any lease incentives receivable;
-- variable lease payment that are based on an index or a rate;
-- amounts expected to be payable by the lessee under residual value guarantees;
-- the exercise price of a purchase option if the lessee is
reasonably certain to exercise that option; and
-- payments of penalties for terminating the lease, if the lease
term reflects the lessee exercising that option.
The Group, as permitted under IFRS 16 has used the incremental
borrowing rate, being the rate that the Group estimates that it
would have to pay to borrow funds necessary to obtain an asset of
similar value in a similar economic environment with similar terms
and conditions.
Right-of-use assets are measured at cost comprising the
following:
-- the amount of the initial measurement of lease liability;
-- any lease payments made at or before the commencement date
less any lease incentives received;
-- any initial direct costs; and
-- restoration costs.
Payments associated with short-term leases and leases of
low-value assets are recognised on a straight-line basis as an
expense in profit or loss. Short-term leases are leases with a
lease term of 12 months or less. Low-value assets comprise IT
equipment and small items of office furniture.
The Group does not have any leasing activities acting as a
lessor.
Impact on Financial Statements on adoption
Right-of use assets were initially measured at the amount equal
to the lease liability, adjusted by the amount of any prepaid or
accrued lease payments relating to that lease recognised in the
balance sheet as at 31 March 2019. There were no onerous lease
contracts that would have required an adjustment to the
right-of-use assets at the date of initial application.
The following illustrates the impact on the income statement on
the adoption of IFRS 16:
30 September 2019 Rents Finance costs Depreciation Other adjustments 30 September 2019
as reported under IAS 17
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- -------------------------- -------------------------- -------------------------- -------------------------- -------------------------
Revenue 15,581 - - - - 15,581
Commission and
fees paid (4,686) - - - - (4,686)
Share of after - - - - - -
tax profit from
joint venture
-------------------------- -------------------------- -------------------------- -------------------------- -------------------------- -------------------------
Gross profit 10,895 - - - - 10,895
Administrative
expenses (10,487) (420) - 423 * 8 ** (10,476)
Exceptional
items 209 - - - - 209
-------------------------- -------------------------- -------------------------- -------------------------- -------------------------- -------------------------
Operating
profit 617 (420) - 423 8 628
Investment
revenue 94 - - - - 94
Finance costs (91) - 81 - - (10)
-------------------------- -------------------------- -------------------------- -------------------------- -------------------------- -------------------------
Profit before
tax 620 (420) 81 423 8 712
Taxation (118) - - - - (118)
Profit for the
period
attributable
to equity
holders of the
Parent Company 502 (420) 81 423 8 594
-------------------------- -------------------------- -------------------------- -------------------------- -------------------------- -------------------------
* This depreciation is the net effect of the depreciation
charges relating to the new right-of-use assets and the existing
depreciation treatment of items adjusted for as a result of the
application of IFRS 16.
** This adjustment relates to the revised treatment of
irrecoverable VAT on certain rental invoices as a result of the
application of IFRS 16.
The recognised right-of-use assets relate to the following types
of assets:
30 September 2019 1 April 2019
GBP'000 GBP'000
Property 4,680 5,041
Equipment 85 95
Computer software 283 365
Total right-of-use assets 5,048 5,501
================== =============
The change in accounting policy affected the following items in
the statement of financial position on 1 April 2019:
-- Property, plant and equipment - decrease by GBP435,000
regarding the net book value of dilapidation provisions;
-- Right-of-use assets - increase by GBP5,501,000;
-- Prepayments - decrease by GBP239,000 regarding rental prepayments;
-- Accrued expenses - decrease by GBP621,000 regarding the rent-free period;
-- Current liabilities - decrease by GBP63,000 regarding the landlord contribution;
-- Non-current Lease liabilities - decrease by GBP460,000
regarding the landlord contribution;
-- Current liabilities - increase by GBP1,061,000 regarding
lease liabilities within one year;
-- Non-current Lease liabilities - increase by GBP4,309,000
regarding lease liabilities after one year.
The net impact on retained earnings on 1 April 2019 was an
increase of GBP601,000.
The table below presents the impact of adopting IFRS 16 on the
statement of financial position as at 1 April 2019:
As at 1 April 2019
GBP'000
Right-of-Use Assets on 1 April 2019 (based on lease liabilities) 5,370
Adjustments:
Derecognition of Landlord Contribution (523)
Reclassification of Property Plant and Equipment 435
Reclassification of prepaid expenses 219
-------------------
Total right-of-use Assets on 1 April 2019 after all adjustments 5,501
===================
As at 1 April 2019
GBP'000
Irrecoverable VAT reversal of prepayments (20)
Reduction in accrued expenses (derecognition of rent-free period) 621
Net increase in retained earnings 601
===================
Included in profit or loss for the period are GBP453,000 of
depreciation of right-of-use assets and GBP81,000 of finance
expenses on lease liabilities. Short-term lease costs of GBP9,000
were expensed in the period.
The lease liabilities outstanding as at 30 September 2019 were
as follows:
GBP'000
Current lease liabilities 1,067
Non-current lease liabilities 3,833
4,900
=====================
Judgements and estimates
IFRS 16 requires certain judgements and estimates to be made and
those significant judgements are explained below.
-- Following a review of all leases, the Group has opted to use
single discount rates for leases with reasonably similar
characteristics. The discount rates used, which are listed within
the above disclosure, have had an impact on the right of use assets
values, lease liabilities on initial recognition and lease finance
costs included within the income statement.
-- IFRS 16 defines a lease term as the non-cancellable period of
a lease, together with the options to extend or terminate a lease,
if the lessee is reasonably certain to exercise the lease options
available at the time of reporting. Where a lease includes the
option for the Group to extend the lease term, the Group has
exercised the judgement, based on current information, that such
leases will be extended to the full length available, and this is
included in the calculation of the value of the right of use assets
and lease liabilities on initial recognition and valuation at the
reporting date.
Significant accounting policies
Revenue recognition
Revenue is measured at a fair value of the consideration or
receivable and represents gross commissions, interest receivable
and fees in the course of ordinary investment business, net of
discounts, VAT and sales related taxes.
Revenues recognised under IFRS 15
Revenue from contracts with customers:
- Gross commissions on stockbroking activities are recognised on
those transactions whose trade date falls within the financial
year, with the execution of the trade being the performance
obligation at that point in time.
- In Walker Crips Investment Management, fees earned from
managing various types of client portfolios are accrued daily over
the period to which they relate with the performance obligation
fulfilled over the same period.
- Fees in respect of financial services activities of Walker
Crips Wealth Management are accrued evenly over the period to which
they relate with the performance obligation fulfilled over the same
period.
- Fees earned from structured investments are recognised on the
date the underlying security of the structured investment is traded
and settled, with the execution of the trade being the performance
obligation at that point in time.
Other incomes:
- Interest is recognised as it accrues in respect of the financial year.
- Dividend income is recognised when:
o the Group's right to receive payment of dividends is
established;
o when it is probable that economic benefits associated with the
dividend will flow to the Group; and
o the amount of the dividend can be reliably measured.
- Gains or losses arising on disposal of trading book
instruments and changes in fair value of securities held for
trading are both recognised in profit and loss.
The Group does not have any long-term contract assets in
relation to customers of any fixed and/or considerable lengths of
time which require the recognition of financing costs or incomes in
relation to them.
Going Concern
As both the net asset base and cash position remain healthy, the
directors are satisfied that the Group has sufficient resources to
continue in operation for the foreseeable future, a period of at
least 12 months from the date of this report. Accordingly, they
also conclude in accordance with guidance from the Financial
Reporting Council, that the use of the going concern basis for the
preparation of the financial statements continues to be
appropriate.
Interests in joint ventures
The Group's share of the assets, liabilities, income and
expenses of jointly controlled entities are accounted for in the
consolidated financial statements under the equity method.
Income from the sale or use of the Group's share of the output
of jointly controlled assets, and its share of the joint venture
expenses, are recognised when it is probable that the economic
benefits associated with the transactions will flow to/from the
Group and their amount can be measured accurately.
Exceptional items
To assist in understanding its underlying performance, the Group
identifies certain items of pre-tax income and expenditure and
discloses them separately in the consolidated income statement.
Such items would include:
1. profits or losses on disposal, closure or impairment of assets or businesses;
2. corporate transaction and restructuring costs;
3. changes in the fair value of contingent consideration; and
4. non-recurring items considered individually for
classification as exceptional by virtue of their nature or
size.
The separate disclosure of these items allows a clearer
understanding of the Group's trading performance on a consistent
and comparable basis, together with an understanding of the effect
of non-recurring or large individual transactions upon the overall
profitability of the Group.
Goodwill
Goodwill arising on consolidation represents the excess of the
cost of acquisition over the Group's interest in the fair value of
the identifiable assets and liabilities of a subsidiary or jointly
controlled entity at the date of acquisition. Goodwill is initially
recognised as an asset at cost and reviewed for impairment at least
annually. Any impairment is recognised immediately in the income
statement and is not subsequently reversed in future periods.
Operating expenses
Operating expenses and other charges are provided for in full up
to the statement of financial position date on an accruals
basis.
Intangible assets
At each period end date, the Group reviews the carrying amounts
of its intangible assets to determine whether there is any
indication that those assets have suffered an impairment loss. If
any such indication exists, the recoverable amount of the asset is
estimated in order to determine the extent of the impairment loss
(if any). Where the asset does not generate cash flows that are
independent from other assets, the Group estimates the recoverable
amount of the cash generating unit to which the asset belongs.
Financial instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognised when
the Group becomes a party to the contractual provisions of the
instrument.
At initial recognition, the Group measures a financial asset or
financial liability at its fair value plus or minus transaction
costs. Transaction costs of financial assets and financial
liabilities carried at fair value through profit or loss ("FVPL")
are expensed in the statement of comprehensive income. Immediately
after initial recognition, an expected credit loss allowance
("ECL") is recognised for financial assets measured at amortised
cost, which results in an accounting loss being recognised in
profit or loss when an asset is newly originated.
The Group does not use hedge accounting.
a) Financial assets
Classification and subsequent measurement
The Group classifies its financial assets in the following
measurement categories:
- Fair value through profit or loss ("FVPL"); or
- Amortised cost.
Financial assets are classified as current or non-current
depending on the contractual timing for recovery of the asset.
i) Debt instruments
Classification and subsequent measurement of debt instruments
depend on:
- The Group's business model for managing the asset; and
- The cash flow characteristics of the asset.
Business model: The business model reflects how the Group
manages the assets in order to generate cash flows. That is,
whether the Group's objective is solely to collect the contractual
cash flows from the assets, to collect both the contractual cash
flows and cash flows arising from the sale of assets, or solely or
mainly to collect cash flows arising from the sale of assets.
Factors considered by the Group include past experience on how the
contractual cash flows for these assets were collected, how the
assets' performance is evaluated, and how risks are assessed and
managed.
Cash flow characteristics of the asset: Where the business model
is to hold assets to collect contractual cash flows, the Group
assesses whether the financial instruments' contractual cash flows
represent solely payments of principal and interest ("the SPPI
test"). In making this assessment, the Group considers whether the
contractual cash flows are consistent with a basic lending
instrument.
Based on these factors, the Group classifies its debt
instruments into one of two measurement categories:
1. Amortised cost: Assets that are held for collection of
contractual cash flows where those cash flows represent solely
payments of principal and interest ("SPPI"), and that are not
designated at FVPL, are measured at amortised cost. Amortised cost
is the amount at which the financial asset is measured at initial
recognition minus the principal repayments, plus or minus the
cumulative amortisation using the effective interest rate method of
any difference between that initial amount and the maturity amount,
adjusted by any ECL recognised. The effective interest rate is the
rate that exactly discounts estimated future cash payments or
receipts through the expected life of the financial asset to the
gross carrying amount. Interest income from these financial assets
is included within investment revenues using the effective interest
rate method.
2. FVPL: Assets that do not meet the criteria for amortised cost
or Fair value through other comprehensive income ("FVOCI") are
measured at fair value through profit or loss. Interest income is
included within investment revenues using the effective interest
rate method.
Reclassification
The Group reclassifies debt instruments when and only when its
business model for managing those assets changes. The
reclassification takes place from the start of the first reporting
period following the change.
Impairment
The Group assesses on a forward-looking basis the ECL associated
with its debt instruments held at amortised cost. The Group
recognises a loss allowance for such losses at each reporting date.
On initial recognition, the Group recognises a 12-month ECL. At the
reporting date, if there has been a significant increase in credit
risk, the loss allowance is revised to the lifetime expected credit
loss.
The measurement of ECL reflects:
- An unbiased and probability weighted amount that is determined
by evaluating a range of possible outcomes;
- The time value of money; and
- Reasonable and supportable information that is available
without undue cost or effort at the reporting date about past
events, current conditions and forecasts of future economic
conditions.
ii) Equity instruments
Investments are recognised and derecognised on a trade date
basis where a purchase or sale of an investment is under a contract
whose terms require delivery of the instrument within the timeframe
established by the market concerned, and are initially measured at
fair value.
The Group subsequently measures all equity investments at fair
value through profit and loss. Changes in the fair value of
financial assets at FVPL are recognised in revenue within the
consolidated income statement.
iii) Trade and other receivables
Trade and other receivables are recognised initially at fair
value and subsequently measured at amortised cost using the
effective interest method, less loss allowance.
For trade receivables, the Group applies the simplified approach
permitted by IFRS 9, which requires lifetime ECL to be recognised
from initial recognition of the receivables.
iv) Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held
at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less
that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value, and bank
overdrafts. Bank overdrafts are shown within current liabilities in
the statement of financial position.
Derecognition
Financial assets are derecognised when the rights to receive
cash flows from the financial assets have expired or have been
transferred and the Group has transferred substantially all the
risks and rewards of ownership.
b) Financial liabilities
Classification and subsequent measurement
Financial liabilities are classified and subsequently measured
at amortised cost.
Financial liabilities are derecognised when they are
extinguished.
Trade and other payables
Trade payables represent liabilities for goods and services
provided to the Group prior to the end of financial year which are
unpaid. The amounts are unsecured and are usually paid within 30
days of recognition. Trade and other payables are presented as
current liabilities unless payment is not due within 12 months
after the reporting period. They are recognised initially at their
fair value and subsequently measured at amortised cost using the
effective interest method.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on
differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in
the computation of taxable profits, and is accounted for using the
balance sheet liability method. Deferred tax liabilities are
generally recognised for all taxable temporary differences and
deferred tax assets are recognised to the extent that is probable
that taxable profits will be available against which deductible
temporary differences can be utilised.
Principal risks and uncertainties
Under the Financial Conduct Authority's Disclosure and
Transparency Rules, the Directors are required to identify those
material risks to which the company is exposed and take appropriate
steps to mitigate those risks. The principal risks and
uncertainties faced by the Group are discussed in detail in the
Annual Report for the year ended 31 March 2019.
Related party transactions
No transactions took place in the period that would materially
or significantly affect the financial position or performance of
the Group.
2. Segmental analysis
Investment
management Wealth management Total
Revenue GBP'000 GBP'000 GBP'000
6m to 30
September
2019 14,515 1,066 15,581
---------------------------------- -------------------------- ------------------------------ ---------------
6m to 30
September
2018 * 14,135 937 15,072
---------------------------------- -------------------------- ------------------------------ ---------------
Year to 31
March 2019 27,857 2,601 30,458
---------------------------------- -------------------------- ------------------------------ ---------------
Operating Unallocated Operating
profit Costs Profit
GBP'000 GBP'000 GBP'000 GBP'000
6m to 30
September
2019 1,161 56 (600) 617
---------------------------------- -------------------------- ------------------------------ ---------------
6m to 30
September
2018 * 832 14 (658) 188
---------------------------------- -------------------------- ------------------------------ ---------------
Year to 31
March 2019 1,013 348 (959) 402
---------------------------------- -------------------------- ------------------------------ ---------------
* During the year, a business segment was transferred from
Wealth Management to Investment Management and prior year
comparatives (income of GBP281,000 and operating profits of
GBP89,000) have been adjusted to improve comparability.
Timing of revenue recognition
The following table presents operating income analysed by the
timing of revenue recognition of the operating segment providing
the service:
Investment Management Wealth Management Total
6m to 30
September
2019 GBP'000 GBP'000 GBP'000
Revenue from
contracts
with
customers
Products and
services
transferred
at a point in
time 4,595 193 4,788
Products and
services
transferred
over time 8,314 873 9,187
Other revenue
Products and
services
transferred
at a point in
time 362 - 362
Products and
services
transferred
over time 1,244 - 1,244
14,515 1,066 15,581
------------------------------ -------------------------------- -----------------------------
6m to 30
September
2018 (*)
Revenue from
contracts
with
customers
Products and
services
transferred
at a point in
time 5,270 152 5,422
Products and
services
transferred
over time 7,433 785 8,218
Other revenue
Products and
services
transferred
at a point in
time 188 - 188
Products and
services
transferred
over time 1,244 - 1,244
13,135 937 15,072
------------------------------ -------------------------------- -----------------------------
Year to 31
March 2019
Revenue from
contracts
with
customers
Products and
services
transferred
at a point in
time 10,360 459 10,819
Products and
services
transferred
over time 15,477 2,082 17,559
Other revenue
Products and
services
transferred
at a point in
time 234 60 294
Products and
services
transferred
over time 1,786 - 1,786
27,857 2,601 30,458
------------------------------ -------------------------------- -----------------------------
* During the year, a business segment was transferred from
Wealth Management to Investment Management and prior year
comparatives (income of GBP281,000 and operating profits of
GBP89,000) have been adjusted to improve comparability.
Contract assets Contract liabilities
March
September 2019 September 2018 March 2019 September 2019 September 2018 2019
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Brought
forward 4,623 4,005 4,346 (4) (3) (15)
Amounts
included in
contract
liabilities
that was
recognised
as revenue
during the
period - - - 4 3 15
Settlement
of contract
assets
brought
forward (4,623) (4,005) (4,346) - - -
Cash
received in
advance of
performance
and not
recognised
as revenue
during the
period - - - (3) (15) (4)
Amounts
included in
contract
assets that
was
recognised
as revenue
during the
period 4,679 4,346 4,623 - - -
At 30
September 4,679 4,346 4,623 (3) (15) (4)
------------------------ ------------------------ ------------------------ ------------------------- ------------------------- ------------------------
3. Earnings per share
The calculation of basic earnings per share for continuing
operations is based on the post-tax profit for the period of
GBP502,000 (2018: GBP172,000) and on 42,577,328 (2018: 42,443,034)
ordinary shares of 6 2/3p, being the weighted average number of
ordinary shares in issue during the period. There is no dilution
applicable to the current period.
4. Dividends
The interim dividend of 0.60 pence per share (2018: 0.58 pence
per share) is payable on 20 December 2019 to shareholders on the
register at the close of business on 6 December 2019. The interim
dividend has not been included as a liability in this interim
report.
5. Total revenue
Six months ended Six months ended Year ended
30 September 2019 30 September 31 March 2019
2018
GBP'000 GBP'000 GBP'000
Revenue from Contracts with Customers 13,975 13,640 28,378
Other revenue 1,606 1,432 2,080
Investment revenues 94 27 90
15,675 15,099 30,548
-------------------- ------------------ ----------------
The Group's income can also be categorised as follows for the
purpose of measuring a Key Performance Indicator; the ratio of
non-broking income to total income.
Six months ended % Six months % Year %
30 September 2019 ended ended
30 September 31 March
2018 2019
Income GBP'000 GBP'000 GBP'000
Broking 3,780 24 4,653 31 8,667 28
Non-Broking 11,895 76 10,446 69 21,881 72
15,675 100 15,099 100 30,548 100
------------------- -------- -------------- -------- ------------ --------
6. Exceptional items
As a result of their materiality, the Directors in prior periods
decided to disclose certain amounts separately in order to present
results which were not distorted by significant non-recurring
events.
Six months Six months Year ended
ended ended 30 September 31 March
30 September 2018 2019
2019
GBP'000 GBP'000 GBP'000
Changes in the value of
deferred
consideration - - (102)
Transaction cost in
relation
to a launch of a public
issuance - - 134
Insurance recovery of (209) - -
historical
claim against the Group
(209) - 32
-------------------------------- ----------------------------------- --------------
During the period to 30 September 2019, the Group received
GBP209,000 in respect of a disputed insurance recovery. This
related to an historic claim expensed in prior periods that was
resolved in the current period, following arbitration
proceedings.
During the year to 31 March 2019, cash consideration payable for
acquired client relationships over a number of years is estimated
at the outset based on the expected number of clients and
associated revenue which will be acquired. Each year these amounts
are re-assessed based on the actual values of these metrics and
accordingly, an exceptional credit, being one-off and exceptional
in nature and size, was recorded in the year representing the
reversal of an over-estimation of GBP102,000 of such
consideration.
As part of the expansion of its short-term lending facility
business, the Group has invested in a planned launch of a listed
bond available to retail investors. This launch has currently been
delayed due to political uncertainty which is impacting investor
sentiment and therefore provisions totalling GBP134,000 have been
made for related costs in the year to 31 March 2019.
7. Non-current investments - fair value through profit or
loss
Investments at
fair value through
profit or loss Total
GBP'000 GBP'000
At 30 September 2018 52 52
--------------------------------- ---------------------------- ----------------------------
Disposals in the period (1) (1)
At 31 March 2019 51 51
--------------------------------- ---------------------------- ----------------------------
Disposals in the period - -
At 30 September 2019 51 51
--------------------------------- ---------------------------- ----------------------------
Investments at fair value through profit or loss
The Group's unregulated collective investment scheme (UCIS)
investments are held in relation to a number of customer
complaints. The fair value is based upon the market price as at 30
September 2019.
The Group's life policy investments are held in relation to a
number of customer complaints. The fair value is based upon the
life company's forecast terminal value.
8. Current investments
As at As at As at
30 September 30 September 31 March
2019 2018 2019
GBP'000 GBP'000 GBP'000
Trading investments
Investments - fair value through
profit or loss 963 1,667 1,005
------------------ ------------------ ------------------------
Trading investments represent investments in equity securities
and collectives that present the Group with opportunity for return
through dividend income, interest and trading gains. The fair
values of these securities are based on quoted market prices.
9. Fair values
The following provides an analysis of financial instruments that
are measured subsequent to initial recognition at fair value,
grouped into Levels 1 to 3 based on the degree to which the fair
value is observable:
- Level 1 fair value measurements are those derived from quoted
prices (unadjusted) in active markets for identical assets or
liabilities. The trading investments fall within this category;
- Level 2 fair value measurements are those derived from inputs
other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices). The Group does
not hold financial instruments in this category; and
- Level 3 fair value measurements are those derived from
valuation techniques that include inputs for the asset or liability
that are not based on observable market data (unobservable inputs).
The Group's Investments held in non-current assets fall within this
category.
Further IFRS 13 disclosures have not been presented here as the
balance represents 1.892% (2018: 0.582%) of total assets.
The following tables analyse within the fair value hierarchy the
Group's Investments measured at fair value.
Level 1 Level 3 Total
GBP'000 GBP'000 GBP'000
At 30 September 2019
Financial assets held at fair value through profit and loss 963 51 1,014
963 51 1,014
-------------- ----------- ------------
At 30 September 2018
Financial assets held at fair value through profit and loss 1,667 52 1,719
1,667 52 1,719
-------------- ----------- ------------
At 31 March 2019
Financial assets held at fair value through profit and loss 1,005 51 1,056
1,005 51 1,056
-------------- ----------- ------------
There have been no transfers of financial instruments between
levels during the period.
The fair value of UCIS and Life Policy investments have fair
values determined by reference to prices supplied from the
administrator and provider respectively.
In all cases, the unrealised gains or losses in the investments
are recognised within revenue on the income statement.
10. Issue of share capital
During the period to 30 September 2019, no new shares were
issued. During the six-month period ending 30 September 2018,
409,598 new Ordinary Shares were issued and allotted to the sellers
of Barker Poland Asset Management LLP (BPAM) in order to satisfy
the Group's obligation in connection with the payment of year three
deferred consideration. The BPAM business had met the targets
required to trigger a payment by the Group of the full amount of
the third and final payment. During the six-month period ending 31
March 2019, no new shares were issued.
11. Cash generated from operations
Unaudited Unaudited Audited
September September March 2019
2019 2018
GBP'000 GBP'000 GBP'000
Operating profit
for the period 617 188 402
Adjustments
for:
Amortisation of
intangibles 279 274 558
Changes in the
fair value
of deferred
consideration - - (102)
Loss on sale of
tangible fixed
asset - 2 4
Net change in
fair value of
financial
instruments at
fair value
through
profit or loss (71) (22) 91
Share of joint
venture income - (9) (14)
Depreciation of
property,
plant and
equipment 267 301 593
Depreciation 453 - -
of right of
use
assets
Decrease in
debtors 11,736 7,152 1,642
Decrease in
creditors (11,777) (10,137) (3,805)
Change in
working
capital
as a result of
net of effects
of acquiring a
subsidiary
and disposal
of joint
venture:
Derecognition (44) - -
of joint
venture
asset now
fully acquired
Trade and (6) - -
other payables
Trade and 9 - -
other
receivables
Net cash inflow
/ (outflow)
from operations 1,463 (2,251) (631)
=================================== =================================== ==========================
12. Contingent liability
During a prior year, two Group companies, Walker Crips Group plc
("WCG") and Walker Crips Investment Management Limited ("WCIM")
received draft proceedings in respect of a potential claim, from a
former listed corporate client of Keith Bayley Rogers & Co
("KBR") a former subsidiary of the Group. The Directors have heard
nothing further from the former KBR client since then and as there
is no date of expiry for the claim it will remain a contingent
liability.
Directors' Responsibility Statement
The Directors confirm that to the best of their knowledge:
(a) The condensed set of financial statements contained within
the half yearly financial report has been prepared in accordance
with IAS 34 'Interim Financial Reporting' as adopted by the EU;
(b) The half yearly report from the Chairman (constituting the
interim management report) includes a fair review of the
information required by DTR 4.2.7R; and
(c) The half yearly report from the Chairman includes a fair
review of the information required by DTR 4.2.8R as far as
applicable.
On Behalf of the Board
Sean Lam
Chief Executive Officer
27 November 2019
Walker Crips Group plc
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR LLFVDLSLRFIA
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November 27, 2019 02:00 ET (07:00 GMT)
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