REG-Matchtech Group PLC Final Results - Part 2

Released : 08/10/09 06:01

Part 2 : For preceding part double-click [nRn1H4314A]  
  Dividends paid in the year                                                         0               0                             (3,626)             (3,626)  
  At 31 July 2009                                                                    232             3,045                         65                  3,342    
A dividend will be declared from Matchtech Group UK Limited prior to the payment 
of the proposed dividend outlined in note 6.  
BALANCE SHEETS as at 31 July 2009  
                                                GROUP                 COMPANY        
                                                2009       2008       2009    2008   
                                         Note   £'000      £'000      £'000   £'000  
  NON-CURRENT ASSETS                                                                 
  Intangible assets                      10     151        170        0       0      
  Property, plant and equipment          11     1,546      1,809      0       0      
  Investments                            13     0          0          272     250    
  Deferred tax asset                     12     99         292        0       0      
  Total Non-Current Assets                      1,796      2,271      272     250    
  CURRENT ASSETS                                                                     
  Trade and other receivables            14     32,903     38,565     2,989   2,880  
  Cash and cash equivalents                     307        297        82      211    
  Total Current Assets                          33,210     38,862     3,071   3,091  
  TOTAL ASSETS                                  35,006     41,133     3,343   3,341  
  Current Liabilities                                                                
  Trade and other payables               15     (10,933)   (18,930)   0       0      
  Current tax liability                         (1,368)    (1,788)    (1)     (5)    
  Bank loans and overdrafts              20     (1,470)    (3,349)    0       0      
                                                (13,771)   (24,067)   (1)     (5)    
  Non-current liabilities                                                            
  Long term borrowings                          0          0          0       0      
  TOTAL LIABILITIES                             (13,771)   (24,067)   (1)     (5)    
  NET ASSETS                                    21,235     17,066     3,342   3,336  
  Called-up equity share capital         18     232        232        232     232    
  Share premium account                         3,045      3,045      3,045   3,045  
  Merger reserve                                224        224        0       0      
  Share based payment reserve                   550        794        0       0      
  Profit and loss account                       17,184     12,771     65      59     
  TOTAL EQUITY                                  21,235     17,066     3,342   3,336  
These financial statements were approved by the directors on the 7th October 
2009, and signed on its behalf by:    
Tony Dyer  
Chief Financial Officer  
CONSOLIDATED CASH FLOW STATEMENT for the year ended 31 July 2009  
                                                                              GROUP                COMPANY            
                                                                              2009      2008       2009      2008     
                                                                              £'000     £'000      £'000     £'000    
  CASH FLOWS FROM OPERATING ACTIVITIES                                                                                
  Profit after taxation                                                       7,990     9,092      3,632     3,321    
  Adjustments for:                                                                                                    
                  Depreciation                                                626       643        0         0        
                  Loss on disposal of property, plant and equipment           2         27         0         0        
                  Interest income                                             (9)       (79)       (4)       (16)     
                  Interest expense                                            376       1,074      0         0        
                  Taxation expense recognised in profit and loss              3,288     3,705      2         5        
                  Decrease/ (increase) in trade and other receivables         5,662     (6,385)    (109)     (678)    
                  (Decrease)/ increase in trade and other payables            (7,997)   6,313      0         0        
                  Share based payment (credit)/ charge                        (156)     540        0         0        
                  Investment income                                           0         0          (3,626)   (3,309)  
  Cash generated from operations                                              9,782     14,930     (105)     (677)    
  Interest paid                                                               (376)     (1,074)    0         0        
  Income taxes paid                                                           (3,554)   (3,241)    (6)       (2)      
  NET CASH FROM OPERATING ACTIVITIES                                          5,852     10,615     (111)     (679)    
  CASH FLOWS FROM INVESTING ACTIVITIES                                                                                
  Purchase of plant and equipment                                             (340)     (794)      0         0        
  Purchase of intangible assets                                               (39)      (86)       0         0        
  Investment in subsidiaries                                                  0         0          (22)      0        
  Proceeds from sale of plant                                                 33        62         0         0        
  Interest received                                                           9         79         4         16       
  Dividend received                                                           0         0          3,626     3,309    
  NET CASH USED IN INVESTING ACTIVITIES                                       (337)     (739)      3,608     3,325    
  CASH FLOWS FROM FINANCING ACTIVITIES                                                                                
  Proceeds from issue of share capital                                        0         218        0         218      
  Repayments to invoice discounting facility                                  (1,769)   (7,257)    0         0        
  Dividends paid                                                              (3,626)   (3,309)    (3,626)   (3,309)  
  NET CASH USED IN FINANCING                                                  (5,395)   (10,348)   (3,626)   (3,091)  
  NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS                        120       (472)      (129)     (445)    
  CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                            187       659        211       656      
  CASH AND CASH EQUIVALENTS AT END OF PERIOD                                  307       187        82        211      
                                                  GROUP           COMPANY        
                                                  2009    2008    2009    2008   
                                                  £'000   £'000   £'000   £'000  
  ANALYSIS OF CASH AND CASH EQUIVALENTS                                          
  Cash                                            307     297     82      211    
  Bank overdraft                                  0       (110)   0       0      
                                                  307     187     82      211    
NOTES forming part of the financial statements  
i The business and address of the Group  
Matchtech Group plc is a human capital resources business dealing with contract 
and permanent recruitment in the Private and Public sector. The Company is 
incorporated in the United Kingdom. The Group is organised in three sectors, 
Engineering, Built Environment and Professional Services, with niche activities 
within each sector. The Group's address is: Matchtech Group plc, 1450 Parkway, 
Whiteley, Fareham PO15 7AF.  
ii Basis of preparation of the financial statements  
The financial statements have been prepared in accordance with applicable 
International Financial Reporting Standards as adopted by the European Union 
(EU) and which are effective at 31 July 2009.  
These financial statements have been prepared under the historical cost 
convention. The accounting policies have been applied consistently throughout 
both the Group and the Company for the purposes of preparation of these 
financial statements. A summary of the principal accounting policies of the 
group are set out below.  
The directors have reviewed forecasts and budgets for the coming year, which 
have been drawn up with appropriate regard for the current macroeconomic 
environment and the particular circumstances in which the Group operates. These 
were prepared with reference to historic and current industry knowledge, taking 
future strategy of the Group into account.  As a result, at the time of 
approving the financial statements, the directors consider that the Company and 
the Group have sufficient resources to continue in operational existence for the 
foreseeable future, and accordingly, that it is appropriate to adopt the going 
concern basis in the preparation of the financial statements.  As with all 
business forecasts, the Directors' statement cannot guarantee that the going 
concern basis will remain appropriate given the inherent uncertainty about 
future events.  
iii Basis of consolidation  
The group financial statements consolidate those of the company and all of its 
subsidiary undertakings drawn up to the balance sheet date. Subsidiaries are 
entities over which the group has power to control the financial and operating 
policies so as to obtain benefits from its activities. The group obtains and 
exercises control through voting rights.  
Acquisitions of subsidiaries are dealt with by the purchase method. The purchase 
method involves the recognition at fair value of all identifiable assets and 
liabilities, including contingent liabilities of the subsidiary, at the 
acquisition date, regardless of whether or not they were recorded in the 
financial statements of the subsidiary prior to acquisition. On initial 
recognition, the assets and liabilities of the subsidiary are included in the 
consolidated balance sheet at their fair values, which are also used as the 
bases for subsequent measurement in accordance with group accounting policies.  
Transactions between group companies are eliminated on consolidation.  
iv Revenue  
Revenue is measured by reference to the fair value of consideration received or 
receivable by the group for services provided, excluding VAT and trade 
discounts. Revenue on temporary placements is recognised upon receipt of a 
client approved timesheet or equivalent. Revenue from permanent placements, 
which is based on a percentage of the candidate's remuneration package, is 
recognised when candidates commence employment at which point it is probable 
that the economic benefits associated with the transaction will be transferred.  
v Property, plant and equipment  
Property, plant and equipment is stated at cost, net of depreciation and any 
provision for impairment.  
Depreciation is calculated so as to write off the cost of an asset, less its 
estimated residual value, over the useful economic life of that asset as 
  Motor Vehicles       25.00%   Reducing balance  
  Computer equipment   25.00%   Straight line     
  Equipment            12.50%   Straight line     
Residual value estimates are updated as required, but at least annually, whether 
or not the asset is revalued.  
vi Intangible assets  
Separately acquired software licences are included at cost and amortised on a 
straight-line basis over the useful economic life of that asset at 20%-33%. 
Provision is made against the carrying value of intangible assets where an 
impairment in value is deemed to have occurred. Amortisation is recognised in 
the income statement under administrative expenses.  
vii Disposal of assets  
The gain or loss arising on the disposal of an asset is determined as the 
difference between the disposal proceeds and the carrying amount of the asset 
and is recognised in the income statement.  
viii Operating lease agreements  
Rentals applicable to operating leases are charged against profits on a straight 
line basis over the lease term. Lease incentives are spread over the term of the 
ix Taxation  
Current tax is the tax currently payable based on taxable profit for the year.  
Deferred income taxes are calculated using the liability method on temporary 
differences. Deferred tax is generally provided on the difference between the 
carrying amounts of assets and liabilities and their tax bases. However, 
deferred tax is not provided on the initial recognition of goodwill, nor on the 
initial recognition of an asset or liability unless the related transaction is a 
business combination or affects tax or accounting profit.  
Deferred tax liabilities are provided in full, with no discounting. Deferred tax 
assets are recognised to the extent that it is probable that the underlying 
deductible temporary differences will be able to offset against future taxable 
income. Current and deferred tax assets and liabilities are calculated at tax 
rates that are expected to apply to their respective period of realisation, 
provided they are enacted or substantively enacted at the balance sheet date.  
Deferred tax on temporary differences associated with shares in subsidiaries is 
not provided if these temporary differences can be controlled by the group and 
it is probable that reversal will not occur in the foreseeable future.  
Changes in deferred tax assets or liabilities are recognised as a component of 
tax expense in the income statement, except where they relate to items that are 
charged or credited directly to equity (such as share based payments) in which 
case the related deferred tax is also charged or credited directly to equity.  
x Pension costs  
The company operates a defined contribution pension scheme for employees. The 
assets of the scheme are held separately from those of the company. The annual 
contributions payable are charged to the income statement as they accrue.  
xi Share based payment  
The transitional arrangements of IFRS 1 have been applied to all grants of 
equity instruments after 7 November 2002 that were unvested at 1 August 2006. 
All share-based remuneration is ultimately recognised as an expense in the 
income statement with a corresponding credit to "share-based payment reserve". 
All goods and services received in exchange for the grant of any share-based 
remuneration are measured at their fair values. Fair values of employee services 
are indirectly determined by reference to the fair value of the share options 
awarded. Their value is appraised at the grant date and excludes the impact of 
non-market vesting conditions (for example, profitability and sales growth 
If vesting periods or other non-market vesting conditions apply, the expense is 
allocated over the vesting period, based on the best available estimate of the 
number of share options expected to vest. Estimates are subsequently revised if 
there is any indication that the number of share options expected to vest 
differs from previous estimates. Any cumulative adjustment prior to vesting is 
recognised in the current period. No adjustment is made to any expense 
recognised in prior periods if share options ultimately exercised are different 
to that estimated on vesting. Upon exercise of share options, proceeds received 
net of attributable transaction costs are credited to share capital and share 
The group operates a Share Incentive Plan (SIP) which is HMRC approved and 
enables employees to purchase company shares out of pre-tax salary. For each 
share purchased the company grants an additional share at no cost to the 
employee. The expense in relation to these 'free' shares is recorded as employee 
remuneration and measured at fair value of the shares issued as at the date of 
xii Business combinations completed prior to date of transition to IFRS  
The group has elected not to apply IFRS 3 Business Combinations retrospectively 
to business combinations prior to 1 August 2006.  
Accordingly the classification of the combination (merger) remains unchanged 
from that used under UK GAAP. Assets and liabilities are recognised at date of 
transition if they would be recognised under IFRS and are measured using their 
UK GAAP carrying amount immediately post-acquisition as deemed cost under IFRS, 
unless IFRS requires fair value measurement. Deferred tax is adjusted for the 
impact of any consequential adjustments after taking advantage of the 
transitional provisions.  
xiii Financial assets  
All financial assets are recognised when the group becomes a party to the 
contractual provisions of the instrument. Financial assets are recognised at 
fair value plus transaction costs.  
In the company financial statements, investment in the subsidiary company is 
measured at cost, and a provision is made where an impairment value is deemed to 
have occurred.  
Loans and receivables are non-derivative financial assets with fixed or 
determinable payments that are not quoted in an active market. Trade receivables 
are classified as loans and receivables. Loans and receivables are measured 
subsequent to initial recognition at amortised cost using effective interest 
method, less provision for impairment. Any change in their value through 
impairment or reversal of impairment is recognised in the income statement.  
Provision against trade receivables is made when there is objective evidence 
that the group will not be able to collect all amounts due to it in accordance 
with the original terms of those receivables. The amount of the write-down is 
determined as the difference between the asset's carrying amount and the present 
value of estimated future cash flows.  
A financial asset is derecognised only where the contractual rights to cash 
flows from the asset expire, or the financial asset is transferred and that 
transfer qualifies for derecognition. A financial asset is transferred if the 
contractual rights to receive the cash flows of the asset have been transferred 
or the group retains the contractual rights to receive the cash flows of the 
asset but assumes a contractual obligation to pay the cash flows to one or more 
recipients. A financial asset that is transferred qualifies for derecognition if 
the group transfers substantially all the risks and rewards of ownership of the 
asset, or if the group neither retains nor transfers substantially all the risks 
and rewards of ownership but does transfer control of that asset.  
Trade receivables subject to the invoice discounting facility are recognised in 
the balance sheet until they are settled by the customer.  
xiv Financial liabilities  
Financial liabilities are obligations to pay cash or other financial assets and 
are recognised when the group becomes a party to the contractual provisions of 
the instrument and comprise trade and other payables and bank loans. Financial 
liabilities are recorded initially at fair value, net of direct issue costs and 
are subsequently measured at amortised cost using the effective interest rate 
A financial liability is derecognised only when the obligation is extinguished, 
that is, when the obligation is discharged or cancelled or expires.  
xv Cash and cash equivalents  
Cash and cash equivalents comprise cash on hand, on demand deposits and bank 
xvi Dividends  
Dividend distributions payable to equity shareholders are included in "other 
short term financial liabilities" when the dividends are approved in general 
meeting prior to the balance sheet date.  
xvii Equity  
Equity comprises the following:  
- "Share capital" represents the nominal value of equity shares.  
- "Share premium" represents the excess over nominal value of the fair value of 
consideration received for equity shares, net of expenses of the share issue.  
- "Share based payment reserve" represents equity-settled share-based employee 
remuneration until such share options are exercised.  
- "Merger reserve" represents the equity balance arising on the merger of 
Matchtech Engineering and Matchmaker Personnel.  
- "Profit and loss reserve" represents retained profits.  
Foreign currencies  
Transactions in foreign currencies are translated at the exchange rate ruling at 
the date of the transaction. Monetary assets and liabilities in foreign 
currencies are translated at the rates of exchange ruling at the balance sheet 
date. Non-monetary items that are measured at historical cost in a foreign 
currency are translated at the exchange rate at the date of the transaction. 
Non-monetary items that are measured at fair value in a foreign currency are 
translated using the exchange rates at the date when the fair value was 
Any exchange differences arising on the settlement of monetary items or on 
translating monetary items at rates different from those at which they were 
initially recorded are recognised in the profit or loss in the period in which 
they arise.    
The assets and liabilities in the financial statements of foreign subsidiaries 
are translated at the rate of exchange ruling at the balance sheet date. Income 
and expenses are translated at the actual rate. The exchange differences arising 
from the retranslation of the opening net investment in subsidiaries are taken 
directly to the "Foreign currency reserve" in equity. On disposal of a foreign 
operation the cumulative translation differences are transferred to the income 
statement as part of the gain or loss on disposal.  
As permitted by IFRS 1, the balance on the cumulative translation adjustment on 
retranslation of subsidiaries' net assets has been set to zero at the date of 
transition to IFRS.  
xix Employee Benefit Trust  
The Employee Benefit Trust was wound up during the year.  
xx Significant accounting estimates and judgements  
Estimates, assumptions concerning the future and judgments are made in the 
preparation of the financial statements. They affect the application of the 
Group's accounting policies, reported amounts of assets, liabilities, income and 
expenses and disclosures made. They are assessed on an on-going basis and are 
based on experience and relevant factors, including expectations of future 
events that are believed to be reasonable under the circumstances.  
Critical judgements  
The judgments made which, in the opinion of the Directors, are critical in 
drawing up the financial statements are as follows:  
Invoice discounting facility  
The terms of this arrangement are judged to be such that the risk and rewards of 
ownership of the trade receivables do not pass to the finance provider. As such 
the receivables are not derecognised on draw-down of funds against this 
facility. This facility is recognised as a liability for the amount drawn.  
Key sources of estimation uncertainty  
The key assumptions concerning the future and other key sources of estimation 
uncertainty at the balance sheet date are discussed below. These are included 
for completeness, although it is the Directors' view that none of these have 
significant risk of causing a material adjustment to the carrying amounts of 
assets and liabilities within the next financial year.  
Estimated useful lives of property, plant and equipment  
The cost of equipment is depreciated on a straight line basis and the cost of 
motor vehicles is depreciated on a reducing balance basis over their useful 
lives. Management estimates the useful lives of property, plant and equipment to 
be within 2 to 4 years. These are common life expectances applied in the 
industry in which the Group operates. Changes in the expected level of usage and 
technological development could impact the economic useful lives and the 
residual values of these assets, therefore future depreciation charges could be 
Impairment loss of trade and other receivables  
The Group's policy for doubtful receivables is based on the on-going evaluation 
of the collectability and aging analysis of the trade and other receivables and 
on management's judgments. Considerable judgment is required in assessing the 
ultimate realisation of these receivables, including the current 
creditworthiness and the past collection history of each debtor. If the 
financial conditions of the Group's receivables were to deteriorate, resulting 
in an impairment of their ability to make payments, additional impairment loss 
of trade and other receivables may be required. The carrying amounts of these 
assets are shown in note 14.  
Share based payments  
The key assumptions used in estimating the fair values of options granted to 
employees under IFRS 2 are detailed under Note 18.  
xxi Employee benefits  
The financial liability in relation to outstanding holiday pay is recognised in 
the income statement and held as a provision.  
The revenue, gross profit and profit before tax are attributable to the one 
principal activity of the group. The group's primary segment is industry segment 
and its secondary is geographical.  
A segmental analysis of revenue is given below:  
                                  2009      2008     
                                  £'000     £'000    
  Engineering                     153,170   147,977  
  Built Environment               68,706    69,186   
  Professional Services           47,705    41,667   
  Total                           269,581   258,830  
A segmental analysis of gross profit is given below:  
                                          2009     2008    
                                          £'000    £'000   
  Engineering                             15,864   16,786  
  Built Environment                       7,441    9,039   
  Professional Services                   6,962    7,409   
  Total                                   30,267   33,234  
A segmental analysis of operating profit is given below:  
                                          2009     2008    
                                          £'000    £'000   
  Engineering                             6,853    7,562   
  Built Environment                       3,013    3,977   
  Professional Services                   1,779    2,253   
  Total                                   11,645   13,792  
The Group operates from a single site with assets being centrally held. For this 
reason a segmental analysis of assets and liabilities has not been presented.  
The Directors consider that the group does not generate material profits from 
overseas operations and have therefore not presented geographic information.   
                                                                                                  2009    2008   
                                                                                                  £'000   £'000  
  Operating profit is stated after charging:                                                                     
  Depreciation                                                                                    568     594    
  Amortisation                                                                                    58      49     
  Loss on disposal of property, plant and equipment                                               2       31     
  Auditors' remuneration:     - fees payable for the audit of the financial statements            40      39     
                              - taxation                                                          5       4      
                              - other services pursuant to legislation                            18      14     
  Operating lease costs:      - Plant and machinery                                               11      12     
                              - Land and buildings                                                510     536    
  Net loss/ (profit) on foreign currency translation                                              5       (6)    
The average number of staff employed by the group during the financial year 
amounted to:  
                                 2009   2008  
                                 No.    No.   
  Selling                        229    215   
  Administration                 60     60    
  Directors                      7      7     
  Total                          296    282   
The aggregate payroll costs of the above were:  
                                  2009     2008    
                                  £'000    £'000   
  Wages and salaries              11,217   11,394  
  Social security costs           1,207    1,325   
  Other pension costs             899      744     
  Total                           13,323   13,463  
Disclosure of the remuneration of Key Management Personnel, as required by IAS 
24, is covered by the audited part of the Directors' Remuneration Report, since 
only the statutory Directors are considered to be key management personnel.  
                                     2009    2008   
                                     £'000   £'000  
  Bank interest payable              376     1,074  
                                                                             2009    2008   
                                                                             £'000   £'000  
  Equity dividends paid during the year at 15.6 pence per share (2008:       3,626   3,310  
  Equity dividends proposed after the year-end (not recognised as a          2,467   2,462  
  liability) at 10.6 pence per share (2008: 10.6p)                                          
Between 1 December 2003 and 30 June 2009, the Company paid dividends amounting 
to £20.2m. Although the company had sufficient distributable reserves to make 
each dividend payment, the relevant interim accounts reflecting these profits 
were not prepared and filed at the appropriate time with the Registrar of 
Companies as required by the Companies Acts 1985 and 2006. Consequently payment 
of £15.7m of those dividends, including the £3.626m paid in the year to 31 July 
2009, did not comply with the technical requirements of the Companies Acts 1985 
and 2006. Since 31 July 2009, as a matter of good governance and to reflect the 
adequacy of distributable reserves, interim accounts have been filed with the 
Registrar of Companies, and the Company will put a resolution to the 
shareholders at the forthcoming AGM for their approval to take the necessary 
steps to remedy the situation. Further information will be provided in the 
notice of the AGM. These accounts have been drawn up on the basis that the 
infringement referred to above is regularised by the actions to be proposed to 
shareholders at the forthcoming AGM. The proposals do not affect the results of 
the Group for the year to 31 July 2009, its net assets at 31 July 2009, nor its 
ability to pay future dividends.  
                                                                          2009    2008   
                                                                          £'000   £'000  
  The amount of profit dealt with in the accounts of the company is       3,632   3,321  
The company has taken advantage of the exemption in S408 of the Companies Act 
2006 not to present the parent company's income statement.  
                                                                        2009    2008   
                                                                        £'000   £'000  
  Current Tax:                UK corporation tax                        3,128   3,932  
                              Prior year under/ (over) provision        6       (77)   
                                                                        3,134   3,855  
  Deferred tax (note 12)                                                154     (150)  
  Income tax expense                                                    3,288   3,705  
UK corporation tax has been charged at 28% (2008 - 29.33%). The standard rate of 
UK Corporation Tax was changed from 30% to 28% on 1 April 2008 therefore in the 
prior year the hybrid rate of 29.33% was applied.  
The charge for the year can be reconciled to the profit as per the income 
statement as follows:    
                                                                          2009     2008    
                                                                          £'000    £'000   
  Profit before tax                                                       11,278   12,797  
  Profit on ordinary activities multiplied by the standard rate of        3,158    3,753   
  corporation tax in the UK of 28% (2008: 29.33%)                                          
  Expenses not deductible for tax purposes                                23       18      
  Deferred tax asset not provided for due to fall in share price          155      0       
  Enhanced R&D tax relief                                                 (54)     0       
  Change in deferred tax rate                                             0        11      
  Adjustments to tax charge in respect of previous periods                6        (77)    
  Total tax charge for period                                             3,288    3,705   
Tax charge/(Credit) recognised directly in equity:  
                                                         2009    2008   
                                                         £'000   £'000  
  Current tax recognised directly in equity              0       (91)   
  Deferred tax recognised directly in equity             (39)    387    
  Total tax recognised directly in equity                (39)    296    
Earnings per share has been calculated by dividing the consolidated profit after 
taxation attributable to ordinary shareholders by the weighted average number of 
ordinary shares in issue during the period.  
Diluted earnings per share has been calculated, on the same basis as above, 
except that the weighted average number of ordinary shares that would be issued 
on the conversion of all the dilutive potential ordinary shares (arising from 
the Group's share option schemes) into ordinary has been added to the 
denominator. There are no changes to the profit (numerator) as a result of the 
dilutive calculation. The number of dilutive shares has fallen significantly due 
to; the share price falling below the exercise price of the EMI options granted 
in 2005; the lapse of the November 2006 and January 2007 LTIP options due to 
performance conditions not being met; and as at the date of this report the 
November 2007 and November 2008 LTIP options performing below the required TSR 
The earnings per share information has been calculated as follows:  
                                                                          2009     2008    
                                                                          £'000    £'000   
     Profit after tax attributable to ordinary shareholders               7,990    9,092   
                                                                          2009     2008    
                                                                          '000s    '000s   
     Weighted average number of ordinary shares in issue                  23,244   23,111  
     Effect of dilutive potential ordinary shares                         14       660     
     Total                                                                23,258   23,771  
                                                        2009    2008   
                                                        pence   pence  
     Earnings per ordinary share            - basic     34.37   39.34  
                                            - diluted   34.35   38.25  
  COST             At 1 August 2007              187       
                   Additions                     86        
                   At 1 August 2008              273       
                   Additions                     39        
                   At 31 July 2009               312       
  AMORTISATION     At 1 August 2007              54        
                   Charge for the year           49        
                   At 1 August 2008              103       
                   Charge for the year           58        
                   At 31 July 2009               161       
  NET BOOK VALUE   At 31 July 2008               170       
                   At 31 July 2009               151       
                                             Motor      Office      Computer           
                                             Vehicles   Equipment   Equipment   Total  
                                             £'000      £'000       £'000       £'000  
  COST             At 1 August 2007          1,407      1,311       744         3,462  
                   Additions                 472        190         131         793    
                   Disposals                 (155)      (114)       (11)        (280)  
                   At 1 August 2008          1,724      1,387       864         3,975  
                   Additions                 271        26          43          340    
                   Disposals                 (140)      (11)        (272)       (423)  
                   At 31 July 2009           1,855      1,402       635         3,892  
  DEPRECIATION     At 1 August 2007          643        697         423         1,763  
                   Charge for the year       275        174         145         594    
                   Released on disposal      (105)      (75)        (11)        (191)  
                   At 1 August 2008          813        796         557         2,166  
                   Charge for the year       285        151         132         568    
                   Released on disposal      (105)      (11)        (272)       (388)  
                   At 31 July 2009           993        936         417         2,346  
  NET BOOK VALUE   At 31 July 2008           911        591         307         1,809  
                   At 31 July 2009           862        466         218         1,546   
More to follow, for following part double-click [nRn3H4314A]