REG - Share PLC - Preliminary Results <Origin Href="QuoteRef">LGEN.L</Origin> <Origin Href="QuoteRef">SHRE.L</Origin> - Part 2
04/03/2015 07:12
- Part 2: For the preceding part double click ID:nRSD4584Ga
2014 2013(audited)
(unaudited)
£'000 £'000
Non-current assets
Intangible assets 64 18
Property, plant and equipment 248 227
Available-for-sale investments 9,010 6,447
Deferred tax assets 83 29
9,405 6,721
Current assets
Trade and other receivables 8,398 14,641
Cash and cash equivalents 12,655 13,626
Current tax asset 226 -
21,279 28,267
Total assets 30,684 34,988
Current liabilities
Trade and other payables (8,352) (14,386)
Current tax liabilities - (8)
(8,352) (14,394)
Net current assets 12,927 13,873
Non-current liabilities
Deferred tax liabilities (1,594) (1,187)
Total liabilities (9,946) (15,581)
Net assets 20,738 19,407
Equity share capital 718 718
Capital redemption reserve 104 104
Share premium account 1,064 1,064
Employee benefit reserve (805) (561)
Retained earnings 13,551 13,696
Revaluation reserve 6,106 4,386
Equity shareholders' funds 20,738 19,407
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital Capital redemption reserve Share premium account Employee benefit reserve Retained earnings Revaluation reserve Attributable to equity holders of the company
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2013 719 104 1,098 (649) 12,977 2,230 16,479
Total comprehensive income for the period - - - - 1,340 2,156 3,496
Adjustments to previous share buy-backDividends (1) - - - (34) - - - - (606) - - (35) (606)
Purchase of Employee Share Ownership Plan (ESOP) shares - - - (290) - - (290)
Sales of ESOP shares - - - 176 - - 176
Cost of matching & free shares in the Share Incentive Plan - - - 172 (172) - -
Profit on sale of ESOP shares and dividends received - - - 30 (56) - (26)
Share-based payment credit - - - - 208 - 208
Deferred tax on share-based payment - - - - (4) - (4)
Share-based payment current year taxation - - - - 9 - 9
Balance at 31 December 2013 718 104 1,064 (561) 13,696 4,386 19,407
Total comprehensive income for the period - - - - 504 1,720 2,224
Dividends - - - - (736) - (736)
Purchase of ESOP shares - - - (1,642) - - (1,642)
Sales of ESOP shares - - - 878 - - 878
Cost of matching & free shares in the Share Incentive Plan - - - 230 (230) - -
Profit on sale of ESOP shares and dividends received - - - 290 (258) - 32
Share-based payment credit - - - - 477 - 477
Deferred tax on share-based payment - - - - 18 - 18
Share-based payment current year taxation - - - - 80 - 80
Balance at 31 December 2014 718 104 1,064 (805) 13,551 6,106 20,738
CONSOLIDATED CASH FLOW STATEMENT
YEAR ENDED 31 DECEMBER
Notes 2014 2013
£'000 £'000
Net cash received from operating activities 8 199 1,878
Investing activities
Interest received 110 131
Dividend received from investments 198 180
Purchase of property, plant and equipment (125) (143)
Purchase of available-for-sale investments (618) -
Proceeds of disposal of available-for-sale investments 60 -
Purchase of intangible investments (59) -
Net cash (used in) / received from investing activities (434) 168
Financing activities
Equity dividends paid 6 (736) (606)
Net cash used in financing activities (736) (606)
Net (decrease) / increase in cash and cash equivalents (971) 1,440
Cash and cash equivalents at the beginning of the year 13,626 12,186
Cash and cash equivalents at the end of the year 12,655 13,626
NOTES TO THE PRELIMINARY ANNOUNCEMENT
1 GENERAL INFORMATION
Share plc is a company incorporated in the United Kingdom under the Companies
Act. The address of the registered office is Oxford House, Oxford Road,
Aylesbury, Buckinghamshire, HP21 8SZ. The nature of the Group's operations and
its principal activities will be set out the in Strategic Report in the
Group's Annual Report for 2014, which will be available as set out in note 9
below.
The financial statements are presented in pounds Sterling which is the
currency of the primary economic environment in which the Group operates.
2 BASIS OF PREPARATION
The financial information contained in this preliminary announcement does not
constitute statutory accounts as defined in Section 434 of the Companies Act
2006. The financial information is extracted from the 2014 Group financial
statements which have yet to be signed and which have been prepared in
accordance with International Financial Reporting Standards (IFRSs) adopted by
the International Accounting Standards Board (IASB) and interpretations issued
by the International Financial Reporting Interpretations Committee (IFRIC) of
the IASB (together "IFRS") as endorsed by the European Union.
In the current year, the following new and revised Standards and
Interpretations have been adopted and have had no impact on these financial
statements:
- Amendments to IAS 1 'Presentation of items of other comprehensive income'
- Amendments to IAS 19 'Employee benefits'
- Amendments to IFRS 7 and IAS 32 'Offsetting financial assets and financial
liabilities'
- IFRS 10 Consolidated Financial Statements
- IFRS 11 'Joint arrangements'
- IFRS 12 Disclosure of Interests in Other Entities
- Amendments to IAS 36
- Amendments to IAS 39
At the date of authorisation of these financial statements, the following
Standards and Interpretations which have not yet been applied in these
financial statements were in issue but not yet effective (and in some cases
had not yet been adopted by the EU):
- Amendments to IAS 12 "Deferred Tax: Recovery of Underlying Assets"
- IFRS 9 'Financial Instruments'
- IFRS 15 'Revenue from Contracts with Customers'
- IAS 27 'Separate financial statements'
- IAS 28 'Investments in associates and joint ventures'
- IFRIC 21 'Levies'
- Improvements 2012 - Annual Improvements to IFRSs: 2010-2012 Cycle
- Improvements 2013 - Annual Improvements to IFRSs: 2011-2013 Cycle
- Improvements 2014 - Annual Improvements to IFRSs: 2012-2014 Cycle
- Amendments to IFRS 11 - Accounting for Acquisitions of Interests in Joint
Operations (Amendments to IFRS 11)
- Amendments to IAS 16 & 38 - Clarification of Acceptable Methods of
Depreciation and Amortisation
- Amendments to IFRS 15 - Revenue from Contracts with Customers
- Amendments to IAS 27 - Equity Method in Separate Financial Statements
(Amendments to IAS 27)
- IFRS 14 "Regulatory Deferral Accounts"
Other than to expand certain disclosures within the financial statements, the
directors do not expect that the adoption of the standards and interpretations
listed above will have a material impact on the financial statements of the
Group in future periods.
The Group accounts consolidate the financial statements of the Company and its
subsidiaries, The Share Centre Limited, The Share Centre (Administration
Services) Limited, The Shareholder Limited, and Sharefunds Limited, which all
make up their annual financial statements to 31 December. Other subsidiaries
are not included in the Share plc consolidation as they are not trading and
not material to the Group. All intra-group transactions, balances, income and
expenses are eliminated on consolidation.
The Group has considerable financial resources and no external debt. With a
diversified customer base and core recurring revenue streams along with large
elements of discretionary spending in the Group's cost base, the directors
believe that the Group is well placed to manage its business risks
successfully despite the uncertain economic outlook. Therefore, after making
enquiries, the Directors have a reasonable expectation that the Company and
the Group have adequate resources to continue in operational existence for the
foreseeable future. Accordingly, the going concern basis has continued to be
used in the preparation of these financial statements.
The Group's detailed accounting policies are as detailed in the full financial
statements which will be published shortly as per Note 11 below. These
policies are consistent with those applied in the financial statements for the
year ended 31 December 2013.
3 BUSINESS AND GEOGRAPHICAL SEGMENTS
IFRS 8 requires operating segments to be identified on the basis of internal
reports about components of the Group that are regularly reviewed by the Chief
Executive to allocate resources to the segments and to assess their
performance. The reportable segments are therefore represented by the
following two business divisions:
The Share Centre - this is the main trading business and provides stockbroking
and custodian services to retail investors. Operating wholly in the UK, the
great majority of this business is done directly with those retail customers,
though in some cases the relationship is through a third party, typically on a
white-labelled basis.
Sharefunds - this is the division which operates a fund administration
service. The division's customers are authorised funds for whom a range of
administration services may be provided. This can include taking on the role
of Authorised Corporate Director. In addition to external third party funds,
Sharefunds acts as investment manager to Sharefunds' three Funds of Funds.
During 2014, the Group made changes to its transfer pricing arrangements in
order to enhance the visibility of the trading performance of Sharefunds which
resulted in higher revenue in the year.
The split of revenues and operating profit are therefore as below.
The Share Centre Sharefunds Total
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