REG - Close Bros Grp PLC - Half Yearly Report <Origin Href="QuoteRef">CBRO.L</Origin> - Part 2
10/03/2015 07:12
- Part 2: For the preceding part double click ID:nRSJ9551Ga
Employees The calibre and expertise of our employees is critical to the success of the group. The loss of key individuals or teams may have an adverse impact on the group's operations and ability to deliver its strategy.
Funding Access to funding remains key to support our lending activities and to manage the liquidity requirements of the group.
Exposure to markets Volatility or a sudden dislocation in financial markets may impact the group's profitability particularly in our trading operations. Changes in interest and exchange rates have the potential to impact the group's earnings although the majority of these exposures are hedged.
Directors' Responsibility Statement
We confirm that to the best of our knowledge:
· The condensed set of consolidated financial statements has been prepared in accordance with International Accounting
Standard 34 "Interim Financial Reporting";
· The Interim Report 2015 includes a fair review of the information required by Disclosure and Transparency Rule 4.2.7R
(indication of important events during the first six months and description of principal risks and uncertainties for the
remaining six months of the year); and
· The Interim Report 2015 includes a fair review of the information required by Disclosure and Transparency Rule 4.2.8R
(disclosure of related parties' transactions and changes therein).
On behalf of the board
P.S.S. MacphersonChairman P. PrebensenChief Executive
10 March 2015
Independent Review Report
Independent Review Report to Close Brothers Group plc
We have been engaged by the company to review the condensed set of consolidated financial statements in the Interim Report
2015 for the six months ended 31 January 2015 which comprises the Consolidated Income Statement, the Consolidated Statement
of Comprehensive Income, the Consolidated Balance Sheet, the Consolidated Statement of Changes in Equity, the Consolidated
Cash Flow Statement and related notes 1 to 16. We have read the other information contained in the Interim Report 2015 and
considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed
set of consolidated financial statements.
This report is made solely to the company in accordance with International Standard on Review Engagements (UK and Ireland)
2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board. Our work has been undertaken so that we might state to the company those matters we are required to state
to it in an independent 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 conclusions we
have formed.
Directors' responsibilities
The Interim Report 2015 is the responsibility of, and has been approved by, the directors. The directors are responsible
for preparing the Interim Report 2015 in accordance with the Disclosure and Transparency Rules of the United Kingdom's
Financial Conduct Authority.
As disclosed in note 1, the annual financial statements of the group are prepared in accordance with International
Financial Reporting Standards as adopted by the European Union. The condensed set of consolidated financial statements
included in this Interim Report 2015 has been prepared in accordance with International Accounting Standard 34, "Interim
Financial Reporting", as adopted by the European Union.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed set of consolidated financial statements in
the Interim Report 2015 based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of
Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board
for use in the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland)
and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of consolidated
financial statements in the Interim Report 2015 for the six months ended 31 January 2015 is not prepared, in all material
respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and
Transparency Rules of the United Kingdom's Financial Conduct Authority.
Deloitte LLP
Chartered Accountants and Statutory Auditor
London, United Kingdom
10 March 2015
Consolidated Income Statement
for the six months ended 31 January 2015
Six months ended Year ended
31 January 31 July
2015 2014 2014
Unaudited Unaudited Audited
Note £ million £ million £ million
Interest income 264.5 241.5 491.2
Interest expense (67.1) (70.9) (139.1)
Net interest income 197.4 170.6 352.1
Fee and commission income 88.8 86.8 177.9
Fee and commission expense (14.7) (14.1) (27.4)
Gains less losses arising from dealing in securities 30.6 45.0 87.3
Other income 28.3 18.5 38.0
Non-interest income 133.0 136.2 275.8
Operating income 2 330.4 306.8 627.9
Administrative expenses (202.5) (190.1) (390.1)
Impairment losses on loans and advances 7 (19.3) (22.7) (44.1)
Total operating expenses before amortisation of intangible assets on acquisition (221.8) (212.8) (434.2)
Operating profit before amortisation of intangible assets on acquisition 108.6 94.0 193.7
Amortisation of intangible assets on acquisition (2.4) (2.4) (4.9)
Operating profit before tax 106.2 91.6 188.8
Tax 3 (22.2) (21.1) (43.2)
Profit after tax for the period from continuing operations 84.0 70.5 145.6
Profit for the period from discontinued operations, net of tax 11.2 2.1 4.6
Profit after tax for the period 95.2 72.6 150.2
(Loss)/profit attributable to non-controlling interests from continuing operations (0.1) 0.2 0.4
Profit attributable to shareholders 95.3 72.4 149.8
From continuing operations
Basic earnings per share 5 56.9p 47.7p 98.4p
Diluted earnings per share 5 56.2p 47.1p 96.9p
From continuing and discontinued operations
Basic earnings per share 5 64.5p 49.2p 101.5p
Diluted earnings per share 5 63.7p 48.5p 100.0p
Ordinary dividend per share for the period 6 18.0p 16.5p 32.5p
Consolidated Statement of COMPREHENSIVE INCOME
for the six months ended 31 January 2015
Six months ended Year ended
31 January 31 July
2015 2014 2014
Unaudited Unaudited Audited
£ million £ million £ million
Profit after tax for the period 95.2 72.6 150.2
Other comprehensive (expense)/income that may be reclassified to income statement from continuing operations
Currency translation losses (1.7) (1.2) (1.7)
(Losses)/gains on cash flow hedging (7.6) 2.7 4.7
(Losses)/gains on equity shares classified as available for sale (0.5) 1.4 0.4
Available for sale investment gains transferred to income statement on disposal (6.7) - -
Tax relating to items that may be reclassified 2.4 (0.9) (0.8)
(14.1) 2.0 2.6
Other comprehensive (expense)/income that will not be reclassified to income statement from continuing operations
Defined benefit pension scheme losses (4.7) (3.2) (1.6)
Tax relating to items that will not be reclassified 1.0 0.6 0.3
(3.7) (2.6) (1.3)
Comprehensive (expense)/income for the period, net of tax from continuing operations (17.8) (0.6) 1.3
Comprehensive expense for the period, net of tax from discontinued operations (1.2) (1.8) (2.5)
Total comprehensive income for the period 76.2 70.2 149.0
Attributable to
Non-controlling interests (0.1) 0.2 0.4
Shareholders 76.3 70.0 148.6
76.2 70.2 149.0
Consolidated Balance Sheet
at 31 January 2015
31 January 31 July
2015 2014 2014
Unaudited Unaudited Audited
Note £ million £ million £ million
Assets
Cash and balances at central banks 1,041.4 864.0 1,171.8
Settlement balances 436.9 606.3 465.8
Loans and advances to banks 83.8 94.6 87.4
Loans and advances to customers 7 5,461.0 4,855.5 5,289.7
Debt securities 8 46.5 119.1 94.2
Equity shares 9 45.0 79.4 76.1
Loans to money brokers against stock advanced 64.1 58.2 63.9
Derivative financial instruments 49.5 56.3 27.8
Intangible assets 141.6 142.8 146.3
Property, plant and equipment 125.1 105.8 117.0
Deferred tax assets 36.8 29.3 31.7
Prepayments, accrued income and other assets 108.0 124.9 128.7
Total assets 7,639.7 7,136.2 7,700.4
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