Caffyns PLC
24 November 2006
INTERIM RESULTS
for the half year ended 30 September 2006
Caffyns plc, the leading motor distributor covering fifteen car franchises in
the south-east of England, announces its interim results for the half year ended
30 September 2006.
2006 2005
£'000 £'000
Turnover 85,484 81,503
Operating profit before exceptional items 1,213 1,188
Underlying profit before tax 643 637
Exceptional items 186 285
Profit before tax 829 922
Earnings per share 19.6p 22.3p
Underlying earnings per share 15.0p 15.4p
Interim dividend per share 8.0p 8.0p
Commenting on the results the Chairman, Brian Carte, said:
"The physical restructuring of the properties affected by MG Rover is now
complete and we can enjoy our first six month period free from the disruption of
refranchising programmes. We are still some way from delivering the full
potential of our new franchises but can now concentrate on doing so without
distraction, which should lead to an improved trading performance for the year".
Enquiries:
Simon Caffyn Chief Executive
Mark Harrison Finance Director
Tel: 01323 730201
CHAIRMAN'S STATEMENT
RESULTS
In the six months to September 2006 turnover has increased from £81.5 million to
£85.5 million. Profit before tax and exceptional items are in line with last
year at £643,000 against £637,000 but after exceptional items the profit before
tax is £829,000 against £922,000 last year after exceptionals of £285,000.
REFRANCHISING
In September we opened our new Audi Centre in Worthing which marked the end of
the physical restructuring of the Company following the collapse of MG Rover.
Our retained former MG Rover dealerships are now refranchised and we are
concentrating on rebuilding business at these sites. Although many are already
contributing positively, to fully develop the potential of these dealerships can
take up to three years.
ACQUISITIONS
In August 2006 we acquired the Volvo business for Brighton which borders onto
our Volvo business in Eastbourne, giving us significant benefits derived from
adjoining markets.
PROPERTY
Planning issues have continued to delay the sale of our properties in Hythe and
Hove. As announced in October we have remarketed our site in Hove following
planning refusal on a conditional sale and have received substantial new
interest.
The property in Hythe is sold, subject to planning, which is likely to be
granted before the end of the year.
DEVELOPMENTS SINCE THE PERIOD END
Since the end of the half year we decided to close our bodyshop in Worthing, our
wholesale parts business in Hove and our Vauxhall dealership in East Grinstead.
The sites in Worthing and East Grinstead will be sold.
The parts business has been transferred to our wholesale operation in Hailsham
and the Vauxhall business to our dealerships in Tunbridge Wells and Brighton.
This additional business will have a beneficial effect at these sites.
The proceeds from the sale of the freeholds in East Grinstead and Worthing will
be used to reduce borrowings.
THE FUTURE
The physical restructuring of the properties affected by the MG Rover collapse
is now complete and we can enjoy our first six month period free from the
disruption of refranchising programmes. We are still some way from delivering
the full potential of our new franchises but can now concentrate on doing so
without distraction, which should lead to an improved trading performance for
the year.
Your Directors have agreed to an unchanged interim dividend of 8.0p per ordinary
share. This will be paid on 10 January 2007 to shareholders on the register at
5.00pm on 8 December 2006.
Brian A Carte
Chairman
24 November 2006
CONSOLIDATED INCOME STATEMENT
for the half year ended 30 September 2006
Note Half year to Half year to Year to
30 September 30 September 31 March 2006
2006 2005
£'000 £'000 £'000 £'000 £'000 £'000
------ ------ ------ ------ ------ ------
Revenue 85,484 81,503 160,076
------ ------ ------ ------ ------ ------
Operating profit
Before exceptional
items 1,213 1,188 1,172
Exceptional items 2 186 285 972
------ ------ ------ ------ ------ ------
Total operating
profit 1,399 1,473 2,144
Finance costs (570) (551) (1,114)
------ ------ ------ ------ ------ ------
Profit before tax
From normal
trading
operations 643 637 58
Arising from
exceptional items 2 186 285 972
------ ------ ------ ------ ------ ------
829 922 1,030
------ ------ ------ ------ ------ ------
Tax
On normal trading
operations (211) (194) 20
On exceptional
items (54) (85) (294)
------ ------ ------ ------ ------ ------
3 (265) (279) (274)
------ ------ ------ ------ ------ ------
Profit for the
period 564 643 756
------ ------ ------ ------ ------ ------
Earnings per share 4 19.6p 22.3p 26.3p
------ ------ ------ ------ ------ ------
Dividend per
ordinary share 5 8.0p 8.0p 24.0p
------ ------ ------ ------ ------ ------
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
for the half year ended 30 September 2006
Half year to Half year to Year to
30 September 30 September 31 March 2006
2006 2005
£'000 £'000 £'000
----------- ----------- -----------
Profit for the period 564 643 756
Actuarial
(losses)/gains
recognised in defined
benefit pension
scheme (2,690) (1,058) 108
Deferred tax on
actuarial
(losses)/gains 807 317 (31)
----------- ----------- -----------
Total recognised
income and expense
for the period (1,319) (98) 833
----------- ----------- -----------
CONSOLIDATED BALANCE SHEET
at 30 September 2006
Note 30 September 30 September 31 March
2006 2005 2006
£'000 £'000 £'000
--------- --------- ---------
Non-current assets
Goodwill 481 481 481
Intangible assets 43 65 54
Property, plant and equipment 31,549 32,243 31,203
Deferred tax asset 2,668 2,222 1,939
--------- --------- ---------
34,741 35,011 33,677
--------- --------- ---------
Current assets
Inventories 23,965 22,880 22,694
Trade and other receivables 8,999 8,311 8,897
Current tax assets - - 186
Cash and cash equivalents 62 45 39
--------- --------- ---------
33,026 31,236 31,816
--------- --------- ---------
Non-current assets held for
sale 1,645 - -
--------- --------- ---------
Total assets 69,412 66,247 65,493
--------- --------- ---------
Current liabilities
Bank overdrafts and loans 11,309 10,582 7,981
Trade and other payables 20,814 18,814 21,057
Tax liabilities 159 85 -
Obligations under finance
leases 29 34 28
Short-term provisions 276 423 341
--------- --------- ---------
32,587 29,938 29,407
--------- --------- ---------
Net current assets 2,084 1,298 2,409
--------- --------- ---------
Non-current liabilities
Bank loans 3,000 3,000 3,000
Preference shares 1,237 1,237 1,237
Retirement benefit obligation 5,725 4,381 3,190
Deferred tax liabilities 2,139 1,858 2,140
Obligations under finance
leases 63 93 78
--------- --------- ---------
12,164 10,569 9,645
--------- --------- ---------
Total liabilities 44,751 40,507 39,052
--------- --------- ---------
Net assets 24,661 25,740 26,441
--------- --------- ---------
EQUITY
Share capital 1,439 1,439 1,439
Share premium account 272 272 272
Capital redemption reserve 282 282 282
Revaluation reserve 3,961 4,698 3,971
Retained earnings 6 18,707 19,049 20,477
--------- --------- ---------
Total equity attributable to
shareholders of Caffyns plc 24,661 25,740 26,441
--------- --------- ---------
CONSOLIDATED CASH FLOW STATEMENT
for the half year ended 30 September 2006
Half year ended Half year ended Year ended
30 September 30 September 31 March 2006
2006 2005
£'000 £'000 £'000
----------- ----------- -----------
Cash flows from operating
activies
Profit from operations 1,399 1,473 2,144
Non-cash adjustments 514 280 164
----------- ----------- -----------
Operating cash flows
before movements in
working capital 1,913 1,753 2,308
Movements in working
capital (3,047) (2,252) 1,019
----------- ----------- -----------
Cash
(absorbed)/generated
by operations (1,134) (499) 3,327
Net interest (570) (551) (1,114)
Income taxes
received/(paid) 158 - (50)
----------- ----------- -----------
Net cash (used
in)/from operating
activities (1,546) (1,050) 2,163
----------- ----------- -----------
Investing activities
Proceeds on disposal
of property, plant and
equipment 1,476 783 1,959
Purchases of property,
plant and equipment (2,584) (1,967) (3,510)
Acquisition of business (176) - -
----------- ----------- -----------
Net cash used in
investing activities (1,284) (1,184) (1,551)
----------- ----------- -----------
Financing activities
Dividends paid (461) (461) (691)
Repayments of
obligations under
finance leases (14) (20) (41)
----------- ----------- -----------
Net cash used in
financing activities (475) (481) (732)
----------- ----------- -----------
Net decrease in cash
and cash equivalents (3,305) (2,715) (120)
Cash and cash
equivalents at
beginning of period (7,942) (7,822) (7,822)
----------- ----------- -----------
Cash and cash
equivalents at end of
period (11,247) (10,537) (7,942)
----------- ----------- -----------
NOTES TO THE INTERIM RESULTS
for the half-year ended 30 September 2006
1. BASIS OF PREPARATION
The interim financial statements for the half year to 30 June 2006 are unaudited
and have been prepared under International Financial Reporting Standards (IFRS)
in accordance with the accounting policies set out in the Annual Report for
2006. The figures for the year ended 31 March 2006 have been extracted from the
statutory accounts, filed with the Registrar of Companies on which the auditors
gave an unqualified opinion. These interim financial statements have been
reviewed by the Company's auditors. A copy of their review report is set out at
the end of these statements.
These interim statements comply with IAS 34 'Interim Financial Reporting' and
were approved by the Directors on 24 November 2006. The directors approved this
interim statement on 24 November 2006.
2. EXCEPTIONAL ITEMS
Half year to Half year to Year to
30 September 30 September 31 March
2006 2005 2006
£'000 £'000 £'000
Net profit on disposal of property,
plant and equipment - 155 858
Reverse goodwill received on
acquisition (net of costs) 186 - -
Credit associated with failure of MG
Rover Group - 319 317
Other restructuring costs - (189) (203)
---------- ---------- ----------
Total before tax 186 285 972
Less: tax thereon (54) (85) (294)
---------- ---------- ----------
132 200 678
---------- ---------- ----------
3. TAXATION
Half year to Half year to Year to
30 September 30 September 31 March
2006 2005 2006
£'000 £'000 £'000
Current UK corporation tax at 30%
Charge for the period 219 245 22
Advance corporation tax recovered (31) (31) -
Over-provision in respect of prior
years - (5) (26)
---------- ---------- ----------
Total corporation tax 188 209 (4)
Deferred tax at 30%
Origination and reversal of timing
differences 77 70 278
---------- ---------- ----------
265 279 274
---------- ---------- ----------
Taxation for the half year has been provided at the effective rate of taxation
expected to apply to the whole year on ordinary trading. Tax on exceptional
items is provided at the actual rate applicable.
4. EARNINGS PER SHARE
Half year to Half year to Year to
30 September 30 September 31 March
Basic 2006 2005 2006
£'000 £'000 £'000
Profit before tax 829 922 1,030
Taxation (265) (279) (274)
---------- ---------- ----------
Earnings 564 643 756
---------- ---------- ----------
Earnings per share 19.6p 22.3p 26.3p
---------- ---------- ----------
Half year to Half year to Year to
30 September 30 September 31 March
Underlying 2006 2005 2006
£'000 £'000 £'000
Profit before tax 829 922 1,030
Adjustments: Exceptional items (Note
2) (186) (285) (972)
---------- ---------- ----------
Underlying profit before tax 643 637 58
Taxation (211) (194) 20
---------- ---------- ----------
Underlying earnings 432 443 78
---------- ---------- ----------
Earnings per share 15.0p 15.4p 2.7p
---------- ---------- ----------
The number of ordinary shares in issue during each period was 2,879,298.
5. DIVIDENDS
Ordinary shares of 50p each
The interim dividend proposed at the rate of 8.0p per share (2005: 8.0p) is
payable on 10 January 2007 to shareholders on the register at the close of
business on 8 December 2006. The shares will be marked ex-dividend on 6 December
2006.
Preference shares
Preference dividends have been paid in October 2006. The next preference
dividends are payable in April 2007. The cost of the preference dividends has
been included within finance costs.
6. RETAINED EARNINGS
Half year to Half year to Year to
30 September 30 September 31 March
2006 2005 2006
£'000 £'000 £'000
At the beginning of period 20,477 19,469 19,469
Total recognised income and expense
for the period (1,319) (98) 833
Transfer from revaluation reserve 10 139 866
Dividends paid (461) (461) (691)
---------- ---------- ----------
At end of period 18,707 19,049 20,477
---------- ---------- ----------
INDEPENDENT REVIEW REPORT
to Caffyns plc
INTRODUCTION
We have been instructed by the company to review the financial information for
the six months ended 30 September 2006 which comprises the consolidated interim
balance sheet at 30 September 2006, the consolidated profit and loss account,
the consolidated cashflow statement, the statement of recognised income and
expense for the six months then ended and the related notes 1 to 6. We have read
the other information contained in the interim report which comprises only the
chairman's statement and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information. Our
responsibilities do not extend to any other information.
This report is made solely to the company in accordance with guidance contained
in APB Bulletin 1999/4 "Review of Interim Financial Information". Our review
work has been undertaken so that we might state to the company those matters we
are required to state to them in a review report and for no other purpose. To
the fullest extent permitted by law, we do not accept or assume responsibility
to anyone other than the company for our review work, for this report, or for
the conclusion we have formed.
DIRECTORS' RESPONSIBILITIES
The interim report including the financial information contained therein is the
responsibility of, and has been approved by, the directors. The Listing Rules of
the Financial Services Authority require. They are responsible for preparing the
interim report and ensuring 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
"Review of Interim Financial Information" 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
International Standards of Auditing (UK & Ireland) and therefore provides a
lower level of assurance than an audit. Accordingly, we do not express an audit
opinion on the financial information.
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 2006.
Grant Thornton UK LLP
Chartered Accountants
London
24 November 2006
This information is provided by RNS
The company news service from the London Stock Exchange
24 November 2006
INTERIM RESULTS
for the half year ended 30 September 2006
Caffyns plc, the leading motor distributor covering fifteen car franchises in
the south-east of England, announces its interim results for the half year ended
30 September 2006.
2006 2005
£'000 £'000
Turnover 85,484 81,503
Operating profit before exceptional items 1,213 1,188
Underlying profit before tax 643 637
Exceptional items 186 285
Profit before tax 829 922
Earnings per share 19.6p 22.3p
Underlying earnings per share 15.0p 15.4p
Interim dividend per share 8.0p 8.0p
Commenting on the results the Chairman, Brian Carte, said:
"The physical restructuring of the properties affected by MG Rover is now
complete and we can enjoy our first six month period free from the disruption of
refranchising programmes. We are still some way from delivering the full
potential of our new franchises but can now concentrate on doing so without
distraction, which should lead to an improved trading performance for the year".
Enquiries:
Simon Caffyn Chief Executive
Mark Harrison Finance Director
Tel: 01323 730201
CHAIRMAN'S STATEMENT
RESULTS
In the six months to September 2006 turnover has increased from £81.5 million to
£85.5 million. Profit before tax and exceptional items are in line with last
year at £643,000 against £637,000 but after exceptional items the profit before
tax is £829,000 against £922,000 last year after exceptionals of £285,000.
REFRANCHISING
In September we opened our new Audi Centre in Worthing which marked the end of
the physical restructuring of the Company following the collapse of MG Rover.
Our retained former MG Rover dealerships are now refranchised and we are
concentrating on rebuilding business at these sites. Although many are already
contributing positively, to fully develop the potential of these dealerships can
take up to three years.
ACQUISITIONS
In August 2006 we acquired the Volvo business for Brighton which borders onto
our Volvo business in Eastbourne, giving us significant benefits derived from
adjoining markets.
PROPERTY
Planning issues have continued to delay the sale of our properties in Hythe and
Hove. As announced in October we have remarketed our site in Hove following
planning refusal on a conditional sale and have received substantial new
interest.
The property in Hythe is sold, subject to planning, which is likely to be
granted before the end of the year.
DEVELOPMENTS SINCE THE PERIOD END
Since the end of the half year we decided to close our bodyshop in Worthing, our
wholesale parts business in Hove and our Vauxhall dealership in East Grinstead.
The sites in Worthing and East Grinstead will be sold.
The parts business has been transferred to our wholesale operation in Hailsham
and the Vauxhall business to our dealerships in Tunbridge Wells and Brighton.
This additional business will have a beneficial effect at these sites.
The proceeds from the sale of the freeholds in East Grinstead and Worthing will
be used to reduce borrowings.
THE FUTURE
The physical restructuring of the properties affected by the MG Rover collapse
is now complete and we can enjoy our first six month period free from the
disruption of refranchising programmes. We are still some way from delivering
the full potential of our new franchises but can now concentrate on doing so
without distraction, which should lead to an improved trading performance for
the year.
Your Directors have agreed to an unchanged interim dividend of 8.0p per ordinary
share. This will be paid on 10 January 2007 to shareholders on the register at
5.00pm on 8 December 2006.
Brian A Carte
Chairman
24 November 2006
CONSOLIDATED INCOME STATEMENT
for the half year ended 30 September 2006
Note Half year to Half year to Year to
30 September 30 September 31 March 2006
2006 2005
£'000 £'000 £'000 £'000 £'000 £'000
------ ------ ------ ------ ------ ------
Revenue 85,484 81,503 160,076
------ ------ ------ ------ ------ ------
Operating profit
Before exceptional
items 1,213 1,188 1,172
Exceptional items 2 186 285 972
------ ------ ------ ------ ------ ------
Total operating
profit 1,399 1,473 2,144
Finance costs (570) (551) (1,114)
------ ------ ------ ------ ------ ------
Profit before tax
From normal
trading
operations 643 637 58
Arising from
exceptional items 2 186 285 972
------ ------ ------ ------ ------ ------
829 922 1,030
------ ------ ------ ------ ------ ------
Tax
On normal trading
operations (211) (194) 20
On exceptional
items (54) (85) (294)
------ ------ ------ ------ ------ ------
3 (265) (279) (274)
------ ------ ------ ------ ------ ------
Profit for the
period 564 643 756
------ ------ ------ ------ ------ ------
Earnings per share 4 19.6p 22.3p 26.3p
------ ------ ------ ------ ------ ------
Dividend per
ordinary share 5 8.0p 8.0p 24.0p
------ ------ ------ ------ ------ ------
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
for the half year ended 30 September 2006
Half year to Half year to Year to
30 September 30 September 31 March 2006
2006 2005
£'000 £'000 £'000
----------- ----------- -----------
Profit for the period 564 643 756
Actuarial
(losses)/gains
recognised in defined
benefit pension
scheme (2,690) (1,058) 108
Deferred tax on
actuarial
(losses)/gains 807 317 (31)
----------- ----------- -----------
Total recognised
income and expense
for the period (1,319) (98) 833
----------- ----------- -----------
CONSOLIDATED BALANCE SHEET
at 30 September 2006
Note 30 September 30 September 31 March
2006 2005 2006
£'000 £'000 £'000
--------- --------- ---------
Non-current assets
Goodwill 481 481 481
Intangible assets 43 65 54
Property, plant and equipment 31,549 32,243 31,203
Deferred tax asset 2,668 2,222 1,939
--------- --------- ---------
34,741 35,011 33,677
--------- --------- ---------
Current assets
Inventories 23,965 22,880 22,694
Trade and other receivables 8,999 8,311 8,897
Current tax assets - - 186
Cash and cash equivalents 62 45 39
--------- --------- ---------
33,026 31,236 31,816
--------- --------- ---------
Non-current assets held for
sale 1,645 - -
--------- --------- ---------
Total assets 69,412 66,247 65,493
--------- --------- ---------
Current liabilities
Bank overdrafts and loans 11,309 10,582 7,981
Trade and other payables 20,814 18,814 21,057
Tax liabilities 159 85 -
Obligations under finance
leases 29 34 28
Short-term provisions 276 423 341
--------- --------- ---------
32,587 29,938 29,407
--------- --------- ---------
Net current assets 2,084 1,298 2,409
--------- --------- ---------
Non-current liabilities
Bank loans 3,000 3,000 3,000
Preference shares 1,237 1,237 1,237
Retirement benefit obligation 5,725 4,381 3,190
Deferred tax liabilities 2,139 1,858 2,140
Obligations under finance
leases 63 93 78
--------- --------- ---------
12,164 10,569 9,645
--------- --------- ---------
Total liabilities 44,751 40,507 39,052
--------- --------- ---------
Net assets 24,661 25,740 26,441
--------- --------- ---------
EQUITY
Share capital 1,439 1,439 1,439
Share premium account 272 272 272
Capital redemption reserve 282 282 282
Revaluation reserve 3,961 4,698 3,971
Retained earnings 6 18,707 19,049 20,477
--------- --------- ---------
Total equity attributable to
shareholders of Caffyns plc 24,661 25,740 26,441
--------- --------- ---------
CONSOLIDATED CASH FLOW STATEMENT
for the half year ended 30 September 2006
Half year ended Half year ended Year ended
30 September 30 September 31 March 2006
2006 2005
£'000 £'000 £'000
----------- ----------- -----------
Cash flows from operating
activies
Profit from operations 1,399 1,473 2,144
Non-cash adjustments 514 280 164
----------- ----------- -----------
Operating cash flows
before movements in
working capital 1,913 1,753 2,308
Movements in working
capital (3,047) (2,252) 1,019
----------- ----------- -----------
Cash
(absorbed)/generated
by operations (1,134) (499) 3,327
Net interest (570) (551) (1,114)
Income taxes
received/(paid) 158 - (50)
----------- ----------- -----------
Net cash (used
in)/from operating
activities (1,546) (1,050) 2,163
----------- ----------- -----------
Investing activities
Proceeds on disposal
of property, plant and
equipment 1,476 783 1,959
Purchases of property,
plant and equipment (2,584) (1,967) (3,510)
Acquisition of business (176) - -
----------- ----------- -----------
Net cash used in
investing activities (1,284) (1,184) (1,551)
----------- ----------- -----------
Financing activities
Dividends paid (461) (461) (691)
Repayments of
obligations under
finance leases (14) (20) (41)
----------- ----------- -----------
Net cash used in
financing activities (475) (481) (732)
----------- ----------- -----------
Net decrease in cash
and cash equivalents (3,305) (2,715) (120)
Cash and cash
equivalents at
beginning of period (7,942) (7,822) (7,822)
----------- ----------- -----------
Cash and cash
equivalents at end of
period (11,247) (10,537) (7,942)
----------- ----------- -----------
NOTES TO THE INTERIM RESULTS
for the half-year ended 30 September 2006
1. BASIS OF PREPARATION
The interim financial statements for the half year to 30 June 2006 are unaudited
and have been prepared under International Financial Reporting Standards (IFRS)
in accordance with the accounting policies set out in the Annual Report for
2006. The figures for the year ended 31 March 2006 have been extracted from the
statutory accounts, filed with the Registrar of Companies on which the auditors
gave an unqualified opinion. These interim financial statements have been
reviewed by the Company's auditors. A copy of their review report is set out at
the end of these statements.
These interim statements comply with IAS 34 'Interim Financial Reporting' and
were approved by the Directors on 24 November 2006. The directors approved this
interim statement on 24 November 2006.
2. EXCEPTIONAL ITEMS
Half year to Half year to Year to
30 September 30 September 31 March
2006 2005 2006
£'000 £'000 £'000
Net profit on disposal of property,
plant and equipment - 155 858
Reverse goodwill received on
acquisition (net of costs) 186 - -
Credit associated with failure of MG
Rover Group - 319 317
Other restructuring costs - (189) (203)
---------- ---------- ----------
Total before tax 186 285 972
Less: tax thereon (54) (85) (294)
---------- ---------- ----------
132 200 678
---------- ---------- ----------
3. TAXATION
Half year to Half year to Year to
30 September 30 September 31 March
2006 2005 2006
£'000 £'000 £'000
Current UK corporation tax at 30%
Charge for the period 219 245 22
Advance corporation tax recovered (31) (31) -
Over-provision in respect of prior
years - (5) (26)
---------- ---------- ----------
Total corporation tax 188 209 (4)
Deferred tax at 30%
Origination and reversal of timing
differences 77 70 278
---------- ---------- ----------
265 279 274
---------- ---------- ----------
Taxation for the half year has been provided at the effective rate of taxation
expected to apply to the whole year on ordinary trading. Tax on exceptional
items is provided at the actual rate applicable.
4. EARNINGS PER SHARE
Half year to Half year to Year to
30 September 30 September 31 March
Basic 2006 2005 2006
£'000 £'000 £'000
Profit before tax 829 922 1,030
Taxation (265) (279) (274)
---------- ---------- ----------
Earnings 564 643 756
---------- ---------- ----------
Earnings per share 19.6p 22.3p 26.3p
---------- ---------- ----------
Half year to Half year to Year to
30 September 30 September 31 March
Underlying 2006 2005 2006
£'000 £'000 £'000
Profit before tax 829 922 1,030
Adjustments: Exceptional items (Note
2) (186) (285) (972)
---------- ---------- ----------
Underlying profit before tax 643 637 58
Taxation (211) (194) 20
---------- ---------- ----------
Underlying earnings 432 443 78
---------- ---------- ----------
Earnings per share 15.0p 15.4p 2.7p
---------- ---------- ----------
The number of ordinary shares in issue during each period was 2,879,298.
5. DIVIDENDS
Ordinary shares of 50p each
The interim dividend proposed at the rate of 8.0p per share (2005: 8.0p) is
payable on 10 January 2007 to shareholders on the register at the close of
business on 8 December 2006. The shares will be marked ex-dividend on 6 December
2006.
Preference shares
Preference dividends have been paid in October 2006. The next preference
dividends are payable in April 2007. The cost of the preference dividends has
been included within finance costs.
6. RETAINED EARNINGS
Half year to Half year to Year to
30 September 30 September 31 March
2006 2005 2006
£'000 £'000 £'000
At the beginning of period 20,477 19,469 19,469
Total recognised income and expense
for the period (1,319) (98) 833
Transfer from revaluation reserve 10 139 866
Dividends paid (461) (461) (691)
---------- ---------- ----------
At end of period 18,707 19,049 20,477
---------- ---------- ----------
INDEPENDENT REVIEW REPORT
to Caffyns plc
INTRODUCTION
We have been instructed by the company to review the financial information for
the six months ended 30 September 2006 which comprises the consolidated interim
balance sheet at 30 September 2006, the consolidated profit and loss account,
the consolidated cashflow statement, the statement of recognised income and
expense for the six months then ended and the related notes 1 to 6. We have read
the other information contained in the interim report which comprises only the
chairman's statement and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information. Our
responsibilities do not extend to any other information.
This report is made solely to the company in accordance with guidance contained
in APB Bulletin 1999/4 "Review of Interim Financial Information". Our review
work has been undertaken so that we might state to the company those matters we
are required to state to them in a review report and for no other purpose. To
the fullest extent permitted by law, we do not accept or assume responsibility
to anyone other than the company for our review work, for this report, or for
the conclusion we have formed.
DIRECTORS' RESPONSIBILITIES
The interim report including the financial information contained therein is the
responsibility of, and has been approved by, the directors. The Listing Rules of
the Financial Services Authority require. They are responsible for preparing the
interim report and ensuring 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
"Review of Interim Financial Information" 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
International Standards of Auditing (UK & Ireland) and therefore provides a
lower level of assurance than an audit. Accordingly, we do not express an audit
opinion on the financial information.
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 2006.
Grant Thornton UK LLP
Chartered Accountants
London
24 November 2006
This information is provided by RNS
The company news service from the London Stock Exchange
