RNS Number:5848G
Ashcourt Holdings PLC
20 December 2004
20 December 2004
Ashcourt Holdings plc
Interim Results for the six months to 31 October
Highlights
* Turnover increased by 40% to #2.73m (same period in 2003: #1.95m)
* Profit before taxation and amortisation increased by 434% to #196,845
(same period in 2003: #36,862)
* Funds under management increased from #364m to #569m (56%) since 31
October 2003
* Successful integration of Horder & Company, acquired June 2004
* Inland Revenue approval for the new Ashcourt SIPP
Announcing the unaudited Interim Results, Geoffrey Dearing, Chairman, commented:
"I am very pleased to present our figures following our Admission to AIM in June
2004. Our policy of seeking organic growth together with making value-enhancing
acquisitions continues to bear fruit.
"We now have a wider range of products to offer our clients, most recently the
Ascourt SIPP which has been marketed since mid-November. Our funds under
management continue to grow as a result not only of the revival in world stock
markets but also because of new funds attracted to our asset management
business.
"The costs of acquisitions are reflected in the increased administration
expenses of the business, however these should start to pay for themselves as
the acquired businesses become fully integrated to the Group.
"The Board is pleased with the progress made over the past six months and looks
forward with confidence to the future."
The full text of the Chairman's statement, together with the unaudited figures,
appear below.
Ends
For further information, please contact:
Ashcourt Holdings Plc Parkgreen Communications
Geoffrey Dearing, Chairman Justine Howarth or
John Morton, Chief Executive Officer Ana Ribeiro
Tel: 01732 520780 Tel: 020 7493 3713
Chairman's Statement
I am pleased to report our first set of interim figures since joining the AIM
market in June 2004. During the six months to 31st October 2004 Group turnover
increased by 40% from #1.95m to #2.73m compared to the same period in 2003.
Your Company increased profit before taxation and amortisation of goodwill by
434% from #36,862 to #196,845 compared to the same period last year.
The increase is due both to the continued recovery in world stock markets and
the company's policy of expansion through organic growth and acquisitions, most
recently that of Horder & Company ("Horder"), a specialist financial planning
and pensions adviser, in June of this year.
Since the 31st October 2003 funds under management by the Group have increased
from #364m to #569m as at 31st October 2004, an increase of 56%. During the
period under review in excess of #10m has been attracted to Ashcourt Asset
Management (AAM) from new clients, which has supported the growth of funds under
management by acquisition. We continue to see a steady flow of new business
from both existing sources and new professional introducers of business. Over
the last six months we have increased the number of introducers of business to
the Group and considerably increased the awareness of Ashcourt within the market
place as a result of the establishment of a centralised marketing function.
Ashcourt Investment Advisers
The performance of Ashcourt Investment Advisers (AIA) has been bolstered by the
recent acquisition of Horder which has further consolidated AIA's position
within the pensions and financial planning industry. Since this acquisition the
Group has been able to offer advice on mortgages, not previously a
specialisation offered to Ashcourt clients. The Horder team has successfully
combined with the AIA advisers based in our new London offices in Bucklersbury
House. Whilst maintaining adviser offices close to our clients, AIA continues
to develop a centralised back office function based at the company's
headquarters at Kings Hill in Kent so as to reduce operating costs through
economies of scale.
The range of services available to our clients has further been expanded by the
launch of the Ashcourt Self Invested Personal Pension (SIPP). I am pleased to
report that approval from the Inland Revenue was received in October and the
marketing of the SIPP started in the middle of November. It is anticipated that
the Group will be administering over 100 SIPPs within the first twelve months
through a newly established subsidiary, Ashcourt Administration Limited.
Ashcourt Asset Management
AAM has continued to benefit from a recovery in confidence amongst clients
together with a steady flow of new business. Turnover within AAM over the
period under review increased by 16%, from #1.5m to #1.7m. This increase is as
a result of the rise we have seen in global stock markets, together with the new
funds attracted. Significant progress has been made over the last six months in
streamlining the administration functions within AAM aided by the continued
development of computer systems.
Outlook
The policy of growing Ashcourt will continue to put pressure on our
administrative team, however your Board remains committed to ensuring that the
Group is run as efficiently as possible commensurate with maintaining good
regulatory compliance and client service within the challenging environment in
which it continues to operate. The recent acquisition, together with the
development of products and services offered by Ashcourt, has inevitably put
pressure on the running costs of the Group. However, your Board is confident
that further rationalisation can be achieved over the medium term enabling
additional funds under management to be handled without the normal additional
back office expenses.
The financial services industry in the UK is continuing to go through a period
of significant change. Not only is the Financial Services Authority ("FSA")
extending the range of business which falls under its regulation, resulting in
increased compliance costs, but rationalisation within the sector is continuing.
Your Board believes that following the company's recent transition from OFEX
to AIM and because of the significant strengthening of the balance sheet,
Ashcourt remains in a strong position to benefit from industry rationalisation
and the acquisition opportunities this will throw up together with the
anticipated continued recovery in world stock markets.
G. G. Dearing
Chairman
Unaudited Group Profit and Loss Account
for the six months ended 31 October 2004
Six months Six months
ended ended
Notes 31.10.04 31.10.03
# #
TURNOVER 2,727,956 1,951,865
Operating expenses
Amortisation of goodwill (93,015) (60,949)
Other operating expenses (2,528,488) (1,899,655)
OPERATING PROFIT/(LOSS) 106,453 (8,739)
Net interest payable (2,623) (15,298)
OPERATING PROFIT/(LOSS) ON ORDINARY ACTIVITIES 103,830 (24,037)
BEFORE TAXATION
Tax on profit/(loss) on ordinary activities (11,596) (50)
PROFIT/(LOSS) ON ORDINARY ACTIVITIES AFTER 92,234 (24,087)
TAXATION
Dividends paid and proposed 2 - -
RETAINED PROFIT/(LOSS) FOR THE PERIOD 92,234 (24,087)
EARNINGS/(LOSS) PER SHARE
Basic 3 1.68p (-0.51)p
Fully diluted 3 1.65p (-0.51)p
Unaudited Group Balance Sheet
as at 31 October 2004
31.10.04 31.10.03
Fixed Assets Notes # #
Intangible assets - goodwill 3,506,506 2,784,435
Tangible assets 240,810 100,828
Other investments 200 203
3,747,516 2,885,466
Current Assets
Debtors 1,216,090 1,193,553
Cash at bank and in hand 240,214 76,510
1,456,304 1,270,063
Creditors: amounts falling due within one year (550,544) (485,056)
NET CURRENT ASSETS 905,760 785,007
TOTAL ASSETS LESS CURRENT LIABILITIES 4,653,276 3,670,473
Creditors: amounts falling due after one year (376,510) (311,859)
Provision for liabilities and charges (9,183) (6,066)
NET ASSETS 4,267,583 3,352,548
CAPITAL AND RESERVES
Called-up ordinary share capital 116,173 94,796
Preference shares 523,802 523,802
Merger reserve 2,667,377 2,317,295
Share premium account 1,263,187 797,959
Profit and loss account (302,956) (386,396)
SHAREHOLDERS' FUNDS 4,267,583 3,347,456
Minority interest (including non-equity interests) 0 5,092
TOTAL CAPITAL EMPLOYED 4,267,583 3,352,548
Unaudited Group Cash Flow Statement
for the six months ended 31 October 2004
Six months Six months
ended ended
31.10.04 31.10.03
# #
Net cash inflow/(outflow) from operating activities (40,808) (115,153)
Returns on investments and servicing of finance (2,623) (15,298)
Taxation paid or received 0 0
Capital expenditure and financial investment (54,686) (32,894)
Acquisitions
Net cash on acquisition of subsidiary undertakings (208,762) (9,587)
Cash inflow/(outflow) before management of liquid resources
and financing (306,879) (172,932)
Financing 300,047 116,945
Increase/(decrease) in cash in the period (6,832) (55,987)
Notes to the Accounts
for the six months ended 31 October 2004
1. Basis of consolidation
The interim results for the six months ended 31 October 2004 have been prepared
under the historical cost convention and are in accordance with the group's
accounting policies as set out in the financial statements for the year ended 30
April 2004 and comprise the consolidated results of the company and its
subsidiary undertakings. The results of subsidiaries acquired are consolidated
for the periods from the date on which control passed.
The financial information contained in this interim statement does not
constitute accounts as defined by Section 240 of the Companies Act 1985.
On 3 June 2004 the company acquired 100% of the issued share capital of Horder &
Company Limited, a London based financial consultancy, for a maximum
consideration of #600,000, with #200,000 provided on completion in June 2004 in
cash and the remainder payable over the next five years subject to operating
performance.
2. Dividend
The directors have not proposed an interim dividend
3. Earnings per share
Six months Six months
to 31.10.04 to 31.10.03
The calculation of earnings per share is based on the following
number of shares
Basic earnings per share:
Number of shares 5,495,452 4,687,109
Fully diluted earnings per share:
Number of shares 5,598,817 4,734,259
This information is provided by RNS
The company news service from the London Stock Exchange
END
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