REG - Non-Standard Fin - Half-year Report <Origin Href="QuoteRef">NSF.L</Origin> - Part 3

Non-Standard FinanceAnnouncement

03/08/2016 07:06

- Part 3: For the preceding part double click  ID:nRSC0523Gb 

the receivables book at the acquisition date               
 (c)  An adjustment of £732,000 to accruals has been made for a recognised dilapidations provision on the properties owned by Loans at Home.           
 (d)  £4,806,000 of deferred tax liability has been recognised on the intangibles and the fair value adjustment of the receivable book at acquisition  
 
 
The fair value measurement of acquired assets is based upon financial
forecasts, which are categorised as level 3 within the IFRS 13 fair value
hierarchy. 
 
15.  Net cash used in operating activities 
 
 Six months ended 30 June                       2016      2015   
                                                £000      £000   
                                                                 
 Loss before interest and tax                   (4,701)   (910)  
 Taxation paid                                  (1,503)   -      
 Depreciation                                   251       2      
 Amortisation of intangible assets              4,807     -      
 Fair value unwind on acquired loan book        2,192     -      
 Increase in amounts receivable from customers  (3,259)   -      
 Increase in receivables                        (6,050)   (314)  
 (Decrease)/ increase in payables               (6,550)   677    
 Cash used in operating activities              (14,813)  (545)  
 
 
16.  Related party transactions 
 
There have been no changes in the nature of related party transactions as
described in note 26 to the 2015 Annual Report & Financial Statements and
there have been no new related party transactions which have had a material
effect on the financial position or performance of the Group in the six months
ended 30 June 2016. 
 
Appendix - Regulatory overview 
 
During the first half of 2016 there have been a number of regulatory
developments that may have a bearing on the Group's activities and business
operations in the future. Some of the more pertinent developments are
summarised below. 
 
 ·  On 26 May 2016 the FCA responded to the Competition and Markets Authority (CMA) recommendations on high-cost, short-term credit (HCSTC) and stated that it would make only minor changes to its suggested rules in this area. The new rules come into force on 1 December 2016.        
 ·  The FCA is monitoring the impact of the price cap imposed on HCSTC and is expected to review the current cap in 2017. The FCA has said that it believes it remains inappropriate to apply price-caps to other high cost products but intends to keep the matter under review6.         
 ·  On 30 June 2016 new rules on dispute resolution came into force extending the length of time that firms have to handle complaints from "next business day" to the close of business three days after the date of receipt. All complaints must be reported within three business days.  
 ·  As at June 2016 the FCA had authorised 30,309 firms and a further 3,544 Interim Permissions are still awaiting to complete the process. In home collected credit, 386 firms have been authorised so far.                                                                               
 ·  As at June 2016 the FCA had authorised 30,309 firms and a further 3,544 Interim Permissions are still awaiting to complete the process. In home collected credit, 386 firms have been authorised so far.                                                                               
 
 
6 http://www.fca.org.uk/your-fca/documents/consultation-papers/cp14-10 
 
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