Interim Results
November 06 2003 - 2:00AM
UK Regulatory
RNS Number:7410R
London Stock Exchange Plc
06 November 2003
6 November 2003
LONDON STOCK EXCHANGE plc
ANNOUNCEMENT OF RESULTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2003
London Stock Exchange plc today reports results for the six months ended 30
September 2003.
Highlights:
* Turnover in line with same period last year at #119.6 million
* Operating profit (before exceptional items and goodwill amortisation) up
three per cent to #41.7 million
* Earnings per share up four per cent to 11.5 pence per share
* Adjusted earnings per share up three per cent to 10.8 pence per share
* Interim dividend up eight per cent to 1.4 pence per share
Commenting on the six months ended 30 September 2003, Chris Gibson-Smith,
Chairman of the Exchange, said:
"The Exchange has produced a satisfactory half year performance. In continuing
difficult market conditions for the Exchange we have increased earnings and are
recommending an eight per cent increase in the interim dividend. Although the
outlook continues to be challenging, the Board is confident that the Exchange's
performance will remain resilient."
Clara Furse, Chief Executive, said:
"These first half results demonstrate the ability of the Exchange to deliver an
improved performance despite tough conditions in our markets. Cost control has
helped to underpin earnings while investment has continued to develop the
business, with recent initiatives now starting to contribute to turnover."
Further information is available from:
London Stock Exchange John Wallace - Media 020 7797 1222
Paul Froud - Investor Relations 020 7797 3322
Ruth Anagnos - Investor Relations 020 7797 3322
Finsbury James Murgatroyd 020 7251 3801
Melanie Gerlis 020 7251 3801
Chairman's statement
In a challenging environment, the Exchange continues to make progress. Low
levels of new and further issue activity impacted our Issuer Services' business
and Information Services was affected by the decline in terminals taking
Exchange data. However SETS continues to grow, helping to offset a decline in
international bargains. Performance was also supported by contributions from
recent business developments and from actions to reduce costs.
In the meantime, the Exchange continues to invest in new products and services,
and the benefits are already being seen. Our strategy to develop a low cost,
scalable and flexible technology infrastructure is producing operational cost
savings and laying the framework for the delivery of new products and services
more quickly and cost-effectively than before. These developments will add to
our existing strengths and build on our enviable market position.
Financial results
Unless otherwise stated, all figures referenced below are before exceptional
items and refer to the six months ended 30 September 2003 and the corresponding
period last year.
Financial performance in the first six months has been satisfactory. Turnover
has held steady at #119.6 million (2002: #119.5 million). Operating costs fell
one per cent to #72.4 million (2002: #73.4 million), as savings in IT costs and
reductions in other operational expenditure helped to offset cost increases
from recent initiatives. This led to a three per cent rise in operating profit
before exceptional items and goodwill amortisation to #41.7 million (2002: #40.5
million).
Adjusted earnings per share increased three per cent to 10.8 pence per share
(2002: 10.5 pence per share). Earnings per share rose to 11.5 pence per share
from 11.1 pence per share.
For the half year, operating cash flows were #54.8 million, up two per cent
(2002: #53.8 million). At 30 September 2003, cash balances were #225.6 million
(31 March 2003: #211.0 million) reflecting the cash inflow from operating
activities, reduced by the purchase consideration for EDX London (#14.0
million) and capital expenditure (#18.3 million).
Issuer Services
In a weak IPO market, Issuer Services' revenue decreased four per cent for the
half year, from #19.2 million to #18.4 million, contributing 15 per cent of
total revenue. Annual fees from companies listed on our markets increased
modestly, primarily due to tariff changes for international companies, and
accounted for 59 per cent of Issuer Services' turnover (2002: 55 per cent).
The number of companies on our markets at 30 September 2003 was 2,692 (2002:
2,849). The number of new issues on the Exchange's markets decreased 27 per
cent to 94 (2002: 128). Nonetheless, a total of #10 billion of new capital was
raised on the Exchange's markets during the half year and the Exchange
accounted for 87 per cent of the IPOs in Western Europe (2002: 77 per cent).
AIM, our international market for smaller, growing companies, continued to
attract new companies. In May, the new AIM fast track entry service was
launched, allowing companies to gain admission to AIM more easily and more
cost-effectively using their annual report and accounts as a basis. To date,
three international companies have taken advantage of this facility, with more
international companies expected to join the market following release of their
annual results in 2004. At 30 September 2003, 718 companies were traded on
AIM, up five per cent over the same period last year (2002: 686).
The Office of Fair Trading (OFT) has been investigating the increases in the
Exchange's issuer fees introduced on 1 April 2002. The Exchange is currently
negotiating a resolution of this matter with the OFT and expects an outcome
shortly.
Broker Services
Broker Services' turnover for the half year was unchanged at #43.7 million
(2002: #43.7 million) and accounted for 37 per cent of total turnover.
During the first half of the year, the total number of equity bargains rose five
per cent to 27.6 million (2002: 26.4 million), a daily average of 219,000
bargains (2002: 210,000). In the same period, the daily average number of
bargains transacted on SETS increased 30 per cent to 126,000 (2002: 97,000)
though the average value of a SETS bargain decreased 24 per cent to #22,000
(2002: #29,000).
During the half year, over 62 per cent of eligible trades (by value) were
executed on the SETS order book, contributing approximately 62 per cent of
Broker Services' income for the half year (2002: 55 per cent).
The total value of equity bargains for the period decreased 25 per cent to #1.8
trillion (2002: #2.4 trillion), the reduction being attributable in part to a
decline in the number of international bargains. The daily average number of
international bargains fell to 38,000 (2002: 59,000) while the daily average
number of off book bargains increased modestly to 55,000 (2002: 54,000).
The Exchange has recently introduced two new trading services. In September, an
"iceberg" facility was added to the SETS electronic order book. This service
enables large orders to be executed more efficiently, encouraging more orders
to be traded on SETS. At the start of November, SETSmm, an extension to the
SETS order book, was launched. This new hybrid market adds a further 200
securities capable of electronic trading, supported by liquidity from committed
market makers.
Last month, the Exchange released details of proposed trading of Dutch
securities on SETS. Initial reaction has been positive and implementation
plans are being discussed with Dutch market participants. The trading service
will be launched at the end of the first calendar quarter 2004.
Information Services
At #50.2 million (2002: #50.7 million), Information Services was the largest
contributor to turnover for the half year, representing 42 per cent of total
turnover.
During the first half of the year, the number of terminals taking the Exchange's
real time market data fell from 94,000 to 90,000 (2002: 100,000). Of those,
approximately 81,000 terminals were attributable to professional users, down
from 88,000 at the end of the last financial year (2002: 94,000). Proquote,
the Exchange's low cost trading system and market data business, has further
increased the number of customers using its service. Proquote now has over
1,500 screens, and more than 100 corporate customers. During the period,
Proquote also rolled out its new network connection allowing customers to link
up to SETS via the internet from any location.
RNS, the Exchange's financial communications service, contributed #3.6 million
to Information Services' turnover (2002: #3.4 million). RNS continues to hold
a significant share of the highly competitive regulatory news distribution
market, with 89 companies in the FTSE 100 using RNS to release regulatory
announcements.
FTSE, the Exchange's joint venture, also performed well. For the six months,
the Exchange's share of FTSE turnover was #6.2 million, an increase of 11 per
cent over the corresponding period last year (2002: #5.6 million).
During the period, the Exchange launched the first stages of the Corporate Data
Warehouse, a new technology infrastructure developed to meet the strong market
demand for Exchange originated real time and historic data. SEDOL, the
Exchange's securities numbering service is on track for launch in an improved
form in the first calendar quarter 2004, providing unique identification for
securities on a global basis. Users are already entering agreements for the
use of this new service.
Derivative Services
EDX London, our new joint owned equity derivatives business, commenced trading
on 30 June 2003 following approval as a Recognised Investment Exchange by the
Financial Services Authority. Turnover for the three months to 30 September
2003 was #1.6 million, broadly in line with our expectations, whilst operating
costs were slightly higher at #2.0 million, including #0.2 million goodwill
amortisation. During the first three months of operations, 3.7 million
contracts were traded.
Tax Credit
During the period we reached agreement with the Inland Revenue on the tax
treatment of certain exceptional expenditure incurred in a number of prior
years. This is mainly in respect of advisers' fees for corporate activity and
resulted in a one-off tax credit of #2.7 million.
Interim Dividend
The Directors have declared an interim dividend of 1.4 pence per share (2002:
1.3 pence per share) to those shareholders on the register on 5 December 2003,
for payment on 5 January 2004.
Current trading and prospects
As expected, this is proving to be a challenging year. Although various market
indices have risen since March, our financial performance is not directly
linked to the level of the market and it may therefore take a period of time
for benefits to be reflected in our main business areas. At present, we see a
continuation of trends, in particular no significant improvement in the IPO
market and terminal numbers remain under pressure.
However, SETS is expected to underpin performance in our Broker Services
division and new services are contributing to the top line. Overall, the Board
is confident that performance for the year will remain resilient.
Chris Gibson-Smith
Chairman
6 November 2003
Consolidated profit and loss account
Six months ended 30 September 2003
Six months ended 30 September Year ended
31 March
Existing
Operations Acquisition Total
2003 2003 2003 2002 2003
Continuing operations Notes #m #m #m #m #m
_____________________________________________________________________________________________________________
Turnover
Group and share of joint venture 118.0 1.6 119.6 119.5 237.3
Less: share of joint venture's turnover (6.2) - (6.2) (5.6) (11.4)
_____________________________________________________________________________________________________________
Net turnover 2 111.8 1.6 113.4 113.9 225.9
Administrative expenses - Operating costs (70.4) (2.0) (72.4) (73.4) (144.3)
- Exceptional items 3 - - - 2.3 (11.6)
------------------------------------------------
(70.4) (2.0) (72.4) (71.1) (155.9)
Operating profit - Before exceptional 41.9 (0.2) 41.7 40.5 81.7
items and goodwill
amortisation
- Before exceptional items 41.4 (0.4) 41.0 40.5 81.6
-----------------------------------------------
- After exceptional items 41.4 (0.4) 41.0 42.8 70.0
Share of operating profit of joint venture and income 0.7 0.6 1.1
from other fixed asset investments
Net interest receivable 4 3.0 4.0 8.4
______________________________________________________________________________________________________________
Profit on ordinary activities before taxation 44.7 47.4 79.5
Taxation on profit on ordinary activities 5 (11.2) (15.1) (26.8)
_____________________________________________________________________________________________________________
Profit on ordinary activities after taxation 33.5 32.3 52.7
Minority interests 0.1 - -
_____________________________________________________________________________________________________________
Profit for the financial period 33.6 32.3 52.7
Dividends (4.1) (3.7) (12.5)
Retained profit for the financial period 29.5 28.6 40.2
_____________________________________________________________________________________________________________
Earnings per share 6 11.5p 11.1p 18.1p
Diluted earnings per share 6 11.4p 11.0p 17.9p
Adjusted earnings per share 6 10.8p 10.5p 20.9p
Dividend per share 1.4p 1.3p 4.3p
There were no other recognised gains and losses during the period
Consolidated balance sheet
30 September 2003
30 September 31 March
2003 2002 2003
Notes #m #m #m
____________________________________________________________________________________________________________
Fixed assets
Intangible assets 7 27.3 - 14.1
Tangible assets 137.0 114.9 126.3
____________________________________________________________________________________________________________
164.3 114.9 140.4
Investments
Investments in joint venture 1.9 1.9 1.5
Other investments 8 7.9 10.8 10.1
-------------------------------
9.8 12.7 11.6
____________________________________________________________________________________________________________
174.1 127.6 152.0
Current assets
Debtors 66.7 49.2 64.3
Investments - term deposits 219.0 233.0 207.0
Cash at bank 6.6 4.1 4.0
-------------------------------
292.3 286.3 275.3
Creditors - amounts falling due within one year 72.4 75.6 64.0
-------------------------------
Net current assets 219.9 210.7 211.3
____________________________________________________________________________________________________________
Total assets less current liabilities 394.0 338.3 363.3
Creditors - amounts falling due after more than one year 0.5 - -
Provisions for liabilities and charges 9 41.8 28.4 41.6
Net assets 351.7 309.9 321.7
____________________________________________________________________________________________________________
Capital and reserves
Called up share capital 14.9 14.9 14.9
Reserves
Revaluation reserve 43.0 44.9 44.0
Profit and loss account 293.1 250.1 262.6
____________________________________________________________________________________________________________
Equity shareholders' funds 351.0 309.9 321.5
Equity minority interest 0.7 - 0.2
Total shareholders' funds 351.7 309.9 321.7
____________________________________________________________________________________________________________
Consolidated cashflow statement
Six months ended 31 March 2003
Six months ended Year ended
30 September 31 March
2003 2002 2003
Notes #m #m #m
____________________________________________________________________________________________________________
Net cash inflow from continuing operations:
- Ongoing operating activities 11(i) 54.8 53.8 74.8
- Exceptional items 11(i) - 9.3 10.4
____________________________________________________________________________________________________________
Net cash inflow from operating activities 54.8 63.1 85.2
Dividends from joint venture 0.7 1.2 1.2
Returns on investments and servicing of finance
Interest received 3.2 4.7 9.5
Dividends received 0.1 - -
-------------------------------
Net cash inflow from returns on investments and servicing of 3.3 4.7 9.5
finance
Taxation
Corporation tax paid (8.6) (6.7) (25.2)
Capital expenditure and financial investments
Payments to acquire tangible fixed assets (18.3) (8.4) (28.1)
Receipts from sale of fixed asset investments 1.2 0.6 0.7
-----------------------------------
Net cash outflow from capital expenditure and financial (17.1) (7.8) (27.4)
investments
Acquisitions
Acquisition of subsidiary undertaking (14.0) - (11.8)
Net cash acquired with subsidiary undertaking - - 0.5
-----------------------------------
Net cash outflow for acquisition (14.0) - (11.3)
Dividends paid (8.8) (7.3) (11.1)
_____________________________________________________________________________________________________________
Net cash inflow before use of liquid resources and financing 10.3 47.2 20.9
Management of liquid resources
Increase in term deposits 11(ii) (12.0) (47.0) (21.0)
Financing
Issue of ordinary share capital to minority interest 0.6 - 0.2
Loans received from minority shareholder
- due within one year 3.2 - -
- due after one year 0.5 - -
Increase in cash in the period 11(ii) 2.6 0.2 0.1
_____________________________________________________________________________________________________________
NOTES TO THE FINANCIAL INFORMATION
1. Basis of preparation
Basis of accounting and consolidation
The interim financial information is prepared in accordance with applicable UK
accounting standards under the historical cost convention modified by the
revaluation of certain fixed assets. The interim financial information is
prepared on the basis of the accounting policies set out in the Group's
statutory accounts for the year ended 31 March 2003 and are unaudited. The
interim financial information does not constitute statutory financial statements
within the meaning of section 240 of the Companies Act 1985.
Comparative figures for the year ended 31 March 2003 are an abridged version of
the Group's full accounts which carried an unqualified audit report and have
been delivered to the Registrar of Companies.
2. Turnover
Six months ended Year ended
30 September 31 March
2003 2002 2003
#m #m #m
____________________________________________________________________________________________________________
Continuing operations
Issuer Services 18.4 19.2 36.0
Broker Services 43.7 43.7 87.3
Information Services 50.2 50.7 102.2
Derivative Services 1.7 - -
Other income 5.6 5.9 11.8
____________________________________________________________________________________________________________
Gross turnover 119.6 119.5 237.3
Less: share of joint venture's turnover (6.2) (5.6) (11.4)
Net turnover 113.4 113.9 225.9
____________________________________________________________________________________________________________
3. Exceptional items Six months ended Year Ended
30 September 31 March
2003 2002 2003
#m #m #m
____________________________________________________________________________________________________________
VAT repayment - 9.3 10.4
Provision in respect of leasehold properties - (7.0) (22.0)
- 2.3 (11.6)
---------------------------------
Taxation effect - (0.7) (3.5)
The VAT repayment represents a recovery of VAT paid between 1990 and 2001.
Following successful negotiation with Customs and Excise, a retrospective change
in the method for calculating VAT recoverable on expenditure was agreed,
resulting in this repayment.
The increase in provision for leasehold properties was in respect of space to be
sublet in new headquarters at Paternoster Square.
4. Net interest receivable
Six months ended Year ended
30 September 31 March
2003 2002 2003
#m #m #m
______________________________________________________________________________________________________________
Interest receivable
Bank deposit and other interest 3.8 4.4 9.3
Interest payable
Interest on discounted provision for leasehold properties (0.8) (0.4) (0.9)
Net interest receivable 3.0 4.0 8.4
______________________________________________________________________________________________________________
5. Taxation
Six months ended Year ended
30 September 31 March
2003 2002 2003
#m #m #m
______________________________________________________________________________________________________________
Current tax:
Corporation tax for the period at 30% 13.7 14.3 23.9
Adjustments in respect of previous periods (3.1) - -
----------------------------------
10.6 14.3 23.9
Deferred taxation 0.4 0.6 2.5
Joint venture 0.2 0.2 0.4
Taxation charge 11.2 15.1 26.8
______________________________________________________________________________________________________________
In respect of previous periods for corporation tax are for tax assessments
now agreed with the Inland Revenue. In particular, the tax treatment of certain
exceptional expenditure incurred in prior years in respect of advisers' fees for
corporate activity has now been agreed resulting in a tax credit of #2.7m, see
note 6.
Factors affecting the tax charge for the period
The current tax assessed for the period is the same as the standard rate of
corporation tax in the UK of 30% (2002:
30%). The variations are explained below:
Six months ended Year ended
30 September 31 March
2003 2002 2003
#m #m #m
_____________________________________________________________________________________________________________
Profit on ordinary activities before tax 44.7 47.4 79.5
Profit on ordinary activities multiplied by standard rate of corporation 13.4 14.2 23.9
tax in the UK of 30%
Expenses disallowed for the purpose of tax provision (primarily professional 0.8 0.6 2.6
fees and depreciation on expenditure not subject to capital allowances)
Accounting deduction less than taxation allowances - timing difference (0.5) (0.5) (2.6)
Adjustments to tax charge in respect of previous periods (3.1) - -
Corporation tax charge 10.6 14.3 23.9
_____________________________________________________________________________________________________________
Factors that may affect future tax charges
The disposal of properties at their revalued amount would not give rise to a tax
liability.
6. Earnings per share
Earnings per share is presented on three bases: earnings per share; diluted
earnings per share; and adjusted earnings per share. Earnings per share is in
respect of all activities and diluted earnings per share takes into account the
dilution effects which would arise on the conversion or vesting of share options
and share awards under the Employee Share Ownership Plan (ESOP). Adjusted
earnings per share excludes exceptional items and amortisation of goodwill to
enable comparison of the underlying earnings of the business with prior periods.
Six months ended Year ended
30 September 31 March
2003 2002 2003
#m #m #m
____________________________________________________________________________________________________________
Earnings per share 11.5p 11.1p 18.1p
Diluted earnings per share 11.4p 11.0p 17.9p
Adjusted earnings per share 10.8p 10.5p 20.9p
Profit for the financial period 33.6 32.3 52.7
Adjustments:
Exceptional items - (2.3) 11.6
Amortisation of goodwill 0.7 - 0.1
Tax effect of exceptional items and amortisation of (2.8) 0.7 (3.5)
goodwill
Adjusted profit for the financial period 31.5 30.7 60.9
____________________________________________________________________________________________________________
Weighted average number of shares - million 292.4 291.8 291.9
Effect of dilutive share options and awards - million 2.6 2.9 3.0
Diluted weighted average number of shares - million 295.0 294.7 294.9
____________________________________________________________________________________________________________
The weighted average number of shares excludes those held in the ESOP, reducing
the weighted average number of shares to 292.4 million (September 2002: 291.8
million; March 2003: 291.9m).
The tax effect of exceptional items and amortisation of goodwill for the six
months to September 2003 includes an exceptional tax credit of #2.7m in respect
of previous periods - see note 5.
7. Intangible assets
Goodwill
#m
____________________________________________________________________________________________________________
Cost:
1 April 2003 14.2
Additions during the period (see note 12) 13.9
30 September 2003 28.1
____________________________________________________________________________________________________________
Amortisation:
1 April 2003 0.1
Charge for the period 0.7
30 September 2003 0.8
____________________________________________________________________________________________________________
Net book value:
30 September 2003 27.3
____________________________________________________________________________________________________________
8. Fixed asset investments
Other investments include #7.5m (September 2002: #10.4m; March 2003: #9.7m) in
respect of shares held in the Company. Shares held in the Company are in a
separately administered trust for the purposes of the ESOP. The difference
between the purchase price of shares and the exercise price of awards/grants is
charged to the profit and loss account over the period of service for which the
awards and options are granted.
____________________________________________________________________________________________________________
9. Provisions for liabilities and charges
Property Deferred Total
consideration
#m #m #m
1 April 2003 38.0 3.6 41.6
Utilised during the year (0.6) - (0.6)
Interest on discounted provision 0.8 - 0.8
30 September 2003 38.2 3.6 41.8
____________________________________________________________________________________________________________
Property
The property provision represents the estimated net present value of future
costs for lease rentals and dilapidation costs less the expected receipts from
sub-letting space which is surplus to business requirements. The leases have
between 11 and 25 years to expiry.
Deferred consideration
Deferred consideration relates to amounts payable to former shareholders of
Proquote Ltd, contingent upon Proquote Ltd achieving certain revenue targets.
The total deferred consideration has been estimated at #3.6m and can be up to a
maximum of #11.0m.
10. Reconciliation of movements in shareholders' funds
Six months ended Year ended
30 September 31 March
2003 2002 2003
#m #m #m
____________________________________________________________________________________________________________
Profit for the financial period 33.6 32.3 52.7
Dividends (4.1) (3.7) (12.5)
____________________________________________________________________________________________________________
Net addition to shareholders' funds 29.5 28.6 40.2
Opening equity shareholders' funds 321.5 281.3 281.3
Closing equity shareholders' funds 351.0 309.9 321.5
____________________________________________________________________________________________________________
11. Notes to the consolidated cash flow statement
Six months ended Year ended
30 September 31 March
2003 2002 2003
#m #m #m
_____________________________________________________________________________________________________________
i) Reconciliation of operating profit to net cash inflow from
operating activities
Operating profit 41.0 42.8 70.0
Depreciation of tangible assets 10.7 9.6 19.0
Amortisation of goodwill 0.7 - 0.1
Profits on disposal of fixed assets (0.1) - -
Increase in debtors (2.9) (4.5) (19.2)
Increase/(Decrease) in creditors 5.6 8.5 (1.6)
Increase in property provision - 7.0 22.0
Provisions utilised during the period (0.6) (0.7) (5.9)
Amortisation of own shares 0.4 0.4 0.8
Net cash inflow from operating activities 54.8 63.1 85.2
_____________________________________________________________________________________________________________
Comprising:
Ongoing operating activities 54.8 53.8 74.8
Exceptional items (see note 3) - 9.3 10.4
Net cash inflow 54.8 63.1 85.2
_____________________________________________________________________________________________________________
At 30
At 1 April Cash September
2003 Flows 2003
#m #m #m
_____________________________________________________________________________________________________________
ii) Analysis of changes in net funds
Cash in hand and at bank 4.0 2.6 6.6
Debt due within one year - (3.2) (3.2)
Debt due after more than one year - (0.5) (0.5)
Current asset investments 207.0 12.0 219.0
Total net funds 211.0 10.9 221.9
_____________________________________________________________________________________________________________
12. Acquisition
EDX London Ltd
On 30 June 2003, following approval as a Recognised Investment Exchange by the
Financial Services Authority, EDX London Ltd acquired the Scandinavian equity
derivatives business of OM London Exchange. The initial consideration was #12.8m
with an additional payment of up to #11.2m payable dependent on the business
achieving certain revenue targets by 31 December 2005. The book value of the
assets acquired and cost of acquisition are set out below; no fair value
adjustments were required
Fair value
at acquisition
#m
_____________________________________________________________________________________________________________
Fixed assets acquired 0.1
_____________________________________________________________________________________________________________
Purchase consideration:
Cash 12.8
Costs of acquisition 1.2
Total 14.0
_____________________________________________________________________________________________________________
Goodwill arising 13.9
_____________________________________________________________________________________________________________
Independent review report to London Stock Exchange plc
Introduction
We have been instructed by the company to review the financial information set
out on pages 4 to 11. We have read the other information contained in the interim
report and considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The directors are
responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of management and applying analytical
procedures to the financial information and underlying financial data and, based
thereon, assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities and
transactions. It is substantially less in scope than an audit performed in
accordance with United Kingdom Auditing Standards and therefore provides a lower
level of assurance than an audit. Accordingly we do not express an audit opinion
on the financial information. This report, including the conclusion, has been
prepared for and only for the company for the purpose of the Listing Rules of
the Financial Services Authority and for no other purpose. We do not, in
producing this report, accept or assume responsibility for any other purpose or
to any other person to whom this report is shown or into whose hands it may come
save where expressly agreed by our consent in writing.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September 2003.
PricewaterhouseCoopers LLP
Chartered Accountants and Registered Auditors
London
6 November 2003
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FSMFAISDSESF
