IFG Group plc: Preliminary Statement
Revenue was 12% higher than the prior year at £87.6 million (2017: £78.4 million), with James Hay improving by 15% from £46.2 million to £53.3 million, and Saunderson House increasing by 7% from £32.2 million to £34.3 million. In James Hay, the repricing undertaken in H2 2017 and the Bank of England interest rate increases both contributed to increased revenue, though this impact was partly offset by a reduction in cash balances over the period, signalling a behavioural change in investment strategy. The increase in interest rates in late 2018, positions the business well for further revenue growth in 2019. Saunderson House saw revenue improve by 7% and the demand for Discretionary Management Services contributed 60% of client wins during the year and an increase in DMS revenue of 68% from £1.4 million in 2017 to £2.4 million in 2018. Adjusted operating profitAdjusted operating profit, before amortisation of intangibles and exceptional costs, increased by 18% from £10.5 million to £12.4 million. This was principally driven by the increased revenues in James Hay which saw its contribution increase by 69% from £6.1 million to £10.3 million, and adjusted operating margin return to prior year levels. The contribution from Saunderson House decreased by 18% from £8.6 million to £7.1 million, excluding one-off retention payments of £3.0 million, as compensation returned to prior year levels reversing a significant reduction in 2017. Group costs include costs associated with our London based Group teams, the Board of Directors, governance and oversight committees and other costs associated with being a publicly listed company. Group costs increased from £4.2 million to £5.0 million as a result of increased costs in H1 2018 related to interim resources in senior roles. Group costs normalised in H2 2018 with further cost savings to be delivered during H1 2019 in line with the overall cost saving initiatives previously announced.
Exceptional costsExceptional costs of £9.9 million (2017: £8.8 million), comprise remediation costs in relation to the ongoing investigation and resolution of legacy issues in James Hay of £5.5 million, retention payments of £3.0 million to Saunderson House staff following the cancelled sale, settlement costs of £0.7 million associated with the departure of the former CEO, £0.6 million relating to the full and final settlement of the matter relating to the sale of the international business and legal costs associated with the cancelled sale process of £0.1 million. Legacy costs are net of actual and/or assumed recoveries under the Group's insurance arrangements. Operating profitAn operating profit of £0.3 million, after amortisation of intangibles of £2.1 million and exceptional costs of £9.9 million, was a marginal improvement on the prior year (2017 loss: (£0.4 million)). Amortisation of intangibles, principally related to the James Hay acquisition in 2010, remained in line with 2017 at £2.1 million. TaxThe effective tax rate for the Group increased significantly to 312% from 11.3% in the prior year. The effective increase in rate is primarily due to significant non-allowable costs in UK subsidiaries, primarily settlement costs and sanction charges, combined with increased Group plc costs. The prior year effective tax rate benefited from prior year tax adjustments relating to dilapidations and amortisation. While mindful of our obligations to Shareholders to ensure tax efficiency, we use only legitimate tax reliefs for the purposes for which they were intended and do not take part in aggressive tax planning or condone tax avoidance as both would contravene our cultural values. See the table below for a reconciliation of the effective tax rate on results and note 5 for a full reconciliation of the income tax expense. Reconciliation of effective tax rate:
*Other non-allowable items related to non-qualifying depreciation, client entertainment and losses in Ireland and Netherlands with no tax-benefit. Adjusted EPS and adjusted earningsThe Group uses adjusted operating profit and adjusted earnings as measures of performance to eliminate the impact of items it does not consider indicative of ongoing underlying performance due to their unusual, exceptional or non-recurring nature. The table below provides a reconciliation of how the group calculates adjusted and basic operating profit.
The table above shows how we calculate adjusted EPS and adjusted earnings. The above amounts are net of tax, if applicable. An amount of £45,000 related to prior year tax adjustments is included in exceptional items above.
Cash flowsThe Group generated £10.7 million (2017: £10.1 million) from operations, reflecting adjusted operating profits, offset by movements in working capital. The Group paid a net corporate tax payment of £1.1 million in 2018 (2017: £2.3 million) and invested a total of £4.0 million in capital expenditure (2017: £4.4 million), compared to depreciation and amortisation of £6.4 million (2017: £5.3 million). Total dividends paid during 2018 were £nil (2017: £5.2 million), resulting in an increase in net cash of £3.1 million to £27.7million. Free cash flow generated in the year is an alternative performance measure used by management to represent the cash flow generated from adjusted operating activities less cash used in relation to capital expenditure. Free cash flow improved by 16% from £5.7 million to £6.6 million, partly due to lower net capital expenditure combined with improved operating cash flows. Free cash flow was reduced due to unusually high balances over the year-end period, used to fund settlement of client trades which adversely impacted working capital by £2.0 million in James Hay, combined with higher working capital outflows in Saunderson House which resulted from a requirement to realign work-in-progress billing, as detailed in cash generated from operations (note 8). The negative impact caused by mis-matched settlement of client trades in James Hay was subsequently reversed in January 2019. Management continues to closely monitor the Group's liquidity and ability to meet obligations as they fall due. The Group's total cash is restricted due to regulatory capital requirements within its subsidiaries and a desire to ensure we retain sufficient cash to cover worst-case outcomes in relation to the known legacy issues. We expect the businesses to continue to generate cash to fund ongoing investment, subject to the resolution of a number of legacy matters. The dividend policy will be kept under review and, subject to retaining cover for our legacy issues, the Board will seek to resume the payment of dividends at the earliest possible date.
Use of alternative performance measuresThe Group has identified certain measures that it believes will assist in the understanding of the performance of the business. These measures are not defined under IFRS but can be used, subject to appropriate disclosure in conformance with the guidance issued by the European Securities and Markets Association (ESMA). These alternative performance measures are; adjusted operating profit, adjusted earnings per share, adjusted operating margin, Return on Capital Employed and free cash flow as set out in note 2. Adjusted operating profit, Adjusted EPS and Adjusted operating margin, exclude acquisition-related amortisation, exceptional items and discontinued operations. Management believes excluding these items from the calculation of basic operating profit, Basic EPS and Basic operating margin is useful because management excludes items that are not comparable when measuring operating profitability, evaluating performance trends and setting performance objectives. It allows investors to evaluate the Group's performance for different periods on a more comparable basis. The reconciliation of adjusted operating profit to profit before income tax is disclosed in note 3. Return on capital employedReturn On Capital Employed is an alternative performance measure used by management to measure how efficiently the Group generates profits from its capital employed by comparing it to net profit, is calculated as earnings before finance income and/or costs and tax, divided by capital employed. The return on capital employed in 2018 has improved marginally to 0.4% (2017: -0.6%), which was impacted by the material exceptional costs in both James Hay and Saunderson House. Financial and capital positionThe Group's Consolidated Statement of Financial Position is set out below. The Consolidated Statement of Financial Position remains strong and highly liquid. Net cash increased from £24.6 million to £27.7 million in the year (see note 9). The Pillar 1 capital resource requirement for the Group has been calculated in accordance with the Financial Conduct Authority regulations and is £5.1 million (2017: £6.6 million). The Group has recently reviewed its approach to calculating capital resources, increasing the level of deductions from its allowable capital based on a more conservative interpretation of the capital requirements regulation. This revised approach results in a more prudent assessment of regulatory capital resources of £25.6 million (2017: £49.5 million). In spite of the reduction, the group has a coverage of 502% (2017: 750%) of its Pillar 1 requirement. The Group has also assessed its Pillar 2 capital resource requirements and confirms that it has sufficient capital resources to meet these requirements for the foreseeable future and maintains surplus regulatory capital in line with the Group's risk appetite. Resolution of legacy matters will impact the actual capital position of the Group, but will also reduce Pillar 2 requirements going forward, as the assessment of potential capital requirements will reduce when these legacy matters are resolved. Financial risk managementThe Group's Finance function oversees the management of the Group's exposure to exchange risk, credit risk, liquidity and interest rate risk, in line with defined policies and procedures. The Group does not trade in financial instruments, except as necessary to hedge foreign currency exposures. The Group does not enter into leveraged derivative transactions. Under the management of the Group Financial Controller, working closely with the divisional finance teams, treasury including Group funding and liquidity requirements are managed. The Group's financial reporting currency is Sterling, reflecting the primary economic environment in which the businesses operate. The Group's revenue is principally earned in Sterling, and the majority of its expenditure is incurred in Sterling. The Group incurs certain Euro-denominated costs, principally related to its Irish subsidiary. Share price and market capitalisationThe Company's shares traded in a range of between 123 pence and 190 pence during the year. The share price at 31 December 2018 was 131 pence (31 December 2017: 184 pence), a decrease of 29% in the year. The market capitalisation at 31 December 2018 was £138.1 million (2017: £194.0 million). There were 105,405,665 shares in issue at 31 December 2018.
Extract from operational review - James HayHIGHLIGHTS
Industry overview - platformWe operate in an industry with a favourable long-term outlook. Assets in the advised platform market have grown from £463 billion (Q3 2017) to £540 billion (Q3 2018) (Platforum's Adviser Guide Q3 2018) - an increase of 16.6%. Industry forecasts predict the platform market will double in size in the next five years and we expect our segment of the market to grow broadly in line with this (Fundscape Q3 2018). 2018 has seen a number of challenges impacting the sector. SIPP new business was impacted by increased scrutiny of Defined Benefit ("DB") transfers which resulted in financial advisers taking time to ensure that their processes are robust and that transfers continue to deliver good outcomes for consumers. The regulatory landscape continued to develop with the Markets in Financial Instruments Directive (MiFID) II and General Data Protection Regulation (GDPR) recently implemented and the new Senior Managers and Certification Regime (SMCR) due to come into force in late 2019. The FCA's final report for their Investment Platform Market Study (IPMS) has recently been published and consultation with the industry is ongoing for the FCA's Retirement Outcome review. Both of these are likely to have implications for the market. Platform providers have experienced significant merger, acquisition and IPO activity. Nucleus, Transact and AJ Bell completed their listings to either the AIM or LSE. Interactive Investor purchased ATS and FNZ, a technology provider for many platforms, was purchased by Al Gore's Generation Fund in a deal valuing the business at £1.7 billion. Political uncertainty in the UK and the continuing Brexit negotiations along with an emerging global economic slow-down has led to increased market volatility which is likely to continue into 2019. GoalOur goal is to be a successful, sustainable and profitable business by supporting financial advisers and delivering good outcomes to investors as they accumulate, preserve and manage their wealth up to, through and beyond retirement. Our platform facilitates this by enabling investors and their advisers to manage their retirement wealth safely and securely via an easy-to-use digital interface and supporting services. Business strategyJames Hay has a strong position as a SIPP specialist, recognised for its capability at the complex end of the market. This is yet to be reflected in adjacent ISA and General Investment Account (GIA) markets, and we will continue to invest in enhancing our capability in these areas. The platform space continues to see consolidation of pension and savings assets from those with multiple products/pensions, and we see an opportunity to attract incremental pension and non-pension assets from our existing client base. Our distribution strategy focuses on high quality Independent Financial Advisor ('IFA') relationships, and we continue to invest in enhancements to our client services. We will continue to increase efficiency by making better use of digital and self-serve capabilities. Our focus remains on creating a 'digital platform' for the future and responding to adviser and investor demand. This contributes to increasing scalability and supports our journey to becoming a fully functional platform for retirement wealth management. Our Insight programme has provided valuable information on what advisers and clients expect from a platform. One of our responses to this was to introduce more simplified language in our communication with clients. Business Review2018 saw softer markets and a significant reduction of DB flows, with new business flows of 4,651 (24% lower than 2017). Customer retention across JHP remains unchanged at 93%, with retention in our core product slightly higher at 94% and higher attrition among the legacy products. We now administer assets for 58,753 clients across our business, of which 55,200 are in SIPPs, (35,744 in MiPlan), and the remaining 3,553 are in Small-Self Administered Schemes 'SSAS' and Wrap products.
Assets under Administration (AuA) decreased by 1% on 2017 at £25.3 billion with net inflows of £0.8 billion offset by market movements in Q4 2018 amidst political uncertainty and fears of global market slow down. James Hay is now the 8th largest platform in the UK by AuA (Platforum's Adviser Guide Q3 2018).
*Net inflows include withdrawals and exits 2018 revenue of £53.3 million was 15% higher than 2017 (£46.2 million) due to the full year impact of re-pricing undertaken in 2017 combined with the interest rate increases in Q4 2017 and Q3 2018. Our revenue is analysed in note 3 and shows that asset-based fees account for 25% of revenue, annual and transaction fees 52% and margin on cash 23%. This year saw significant improvement in adjusted operating profit up 69% on last year at £10.3 million (2017: £6.1 million) despite costs increasing by 7% as we invested in people and efficiency programmes. Operating profit after exceptional items improved from a loss of £2.3 million in 2017 to a profit of £2.7 million. Exceptional items of £5.5 million relate primarily to the ongoing legacy review of the dual-trustee book, previously highlighted (2017: £6.3 million).
LEgacy mattersWe received protective assessments from HMRC in relation to client investments in Elysian Fuels in H1 2018. We have appealed the assessments and attempted to seek further information from HMRC to better understand their position and inform our application against the assessments. We have submitted an application under s268 Finance Act 2004 for the discharge of James Hay's alleged liability assessed by HMRC in respect of tax years ended 5 April 2012 and 5 April 2013 and expect to submit applications in relation to later tax years in due course. We currently expect that a process involving appeals to tribunal would be unlikely to complete before late 2019 or mid-2020. The 2017 year-end provision of £1.3 million to cover the legal costs of such an appeal process remains unchanged other than amounts utilised during the year. Based on advice from the Group's legal advisers, the directors are confident that the outcome at tribunal and/or settlement with HMRC would be substantially lower than the maximum potential sanction charge. The Group and James Hay Boards remain confident that any settlement with HMRC would be materially lower than the c.£20 million included in HMRC's assessments, together with any interest payable at HMRC's standard rate, and that any financial exposure would be fundable from the Group's cash resources. Dialogue with HMRC in relation to the Elysian Fuels matter is ongoing, but there remains significant uncertainty as to the timing of a conclusion and the impact of any negotiated settlement, which could be material. Given the uncertainties regarding the fact of any liability and the size of any potential sanction charge, we remain unable to make a provision and continue to include this as a contingent liability. We continue our review of other legacy business, to ensure that any other exposures are identified and remediated where necessary. We have made considerable progress in our review of Non-Standard Investments and we are in ongoing discussions with HMRC in relation to a small number of cases which may result in sanction charges. We continue to review these areas for client detriment where redress may be applicable, however, we expect the majority of this would be recoverable from insurance. We expect to conclude these matters during 2019 and within the existing provision. Review of the dual-trustee book which is now closed to new business is underway. The complexity and structure of the book contribute to a greater degree of risk inherent within the book and a high reliance on the control environment in place. We have now reviewed approximately 20% of the SSAS book and work continues to complete the review. This work may identify further cases in need of remediation (which we would expect to be significantly recoverable from insurance) and/or subject to sanction charges. We are retaining significant costs in the business in relation to this review, in the region of £1.0 million in each of 2018 and 2019, which is delaying the emergence of efficiencies. On completion of this stage, we believe all material legacy risk areas in James Hay will have been reviewed for financial exposure and client detriment. On the basis of the cases reviewed to date, we have made a provision of £4.9 million in 2018 in relation to potential sanction charges and legal fees relating to the dual trustee book. This provision is our estimate of the costs across the entire SSAS book and includes an extrapolation from the findings to date. A level of significant management judgement is required in our provision estimates which may change as we progress further with the review. investment in our peopleWe continue to invest in our people to ensure successful delivery of our strategic goals and good client outcomes. The recent staff survey showed continued improvement in employee engagement with a response rate of 87%, the highest we have achieved. There was a clear desire to focus on training and development and this will be an area of focus for 2019 and beyond. In addition, we have further strengthened the senior management team with Iain McCoo moving over to the role of Chief Commercial Officer with Gavin Howard joining as CFO in November alongside his IFG Group role and Stephen Mohan joining as Operations Director in December. OUR CLIENtsWe support clients as they accumulate and maintain wealth for the later phases of their financial lives. Our proposition is designed for retail clients, that are financially secure, typically with at least £200,000 to invest (our average client portfolio size is £450,000) and looking to aggregate their investments in one place, through tax wrappers, to maximise tax efficiency for both saving and managing income. We offer a range of investments giving clients the ability to meet their financial needs over time. Our proposition is predominantly aimed at clients who are advised. We have a targeted approach to the advisers we do business with, ensuring their clients are aligned with our target market and seek to meet the needs of these advisers through our overall service proposition. We believe that meeting client expectations is central to our success as a business. We strive to improve outcomes for clients through our service and on-going client insight reviews. We use insight reviews to monitor our clients understanding of James Hay products, how they align with our target market and how they are using our products. Our review of client understanding of the cooling off period has resulted in a rewrite of our communications on cancellation rights, which saw a marked positive increase in client insight scores in this area while insight into product charges has resulted in a redesign of how we construct our charges schedules. We also regularly take the opportunity to remind clients of how our products are intended to be used to ensure they remain fit for their needs. 2018 brought about a strong focus on the timeliness of our service to clients, with a significant improvement seen in meeting our published service levels. As at the end of 2018, clients gave us a positive NPS score of +14 and Customer Satisfaction (CSAT) score of 90%. 2019 will be focused on improving the client and adviser experience further with newly appointed resource in this area. culture and valuesJames Hay's culture is founded on our values and behaviours. We aim to behave in a way that is Confident, Professional, Positive and Engaging and espouse the following values:
brexitIn light of the current political uncertainties, in particular in relation to Brexit and its timing and impact, the year ahead is expected to continue with the regulatory challenges, political uncertainty and market volatility that impacted the tail end of 2018. In the event of a "hard" Brexit or a "no deal" Brexit, there could be significant knock on impacts across the UK economy and markets which would also impact James Hay. Market volatility, or market declines, could adversely affect James Hay's revenue (in relation to revenue earned on an ad valorem basis) and could impact clients' willingness to make investment decisions. Furthermore, a sustained economic downturn in the UK could result in higher unemployment and, potentially, a need for clients to access their pension savings and reduce assets held on platform. Given the political uncertainty surrounding Brexit, we have undertaken extensive planning for a range of scenarios including 'hard' or 'no-deal' Brexit, an agreed deal with an implementation period, early General election and extension of Article 50. James Hay has limited direct business with Europe, but uncertainty around Brexit could increase trading activity, cause volatility in margins and reduce new business volumes. Both James Hay's asset based and margin on cash revenue, which accounts for approximately 48% of revenue, is vulnerable to market volatility. We believe that we are well positioned given our preparation and have added information to our website to keep advisers and investors informed. Despite this uncertainty, we remain confident in the long-term structural drivers of the business and the demand for platform services. OUtlookHaving completed a comprehensive review of our longer-term strategy, James Hay will continue its commitment to the platform market delivering an expanded ISA/GIA proposition, focused on high net worth clients who are advised by our strategic partners. James Hay continues to view the medium-term sector outlook as positive. The August 2018 interest rate increase will have a full year impact on 2019, however overall cash balances have been at lower levels signalling a behavioural change in investment strategy, while market volatility may impact revenue earnings. A 5% movement in cash balances would impact revenue by approximately £700,000 p.a., while a 5% movement in assets held in James Hay's investment centre would impact revenue by approximately £550,000 p.a. We are focused on resolving legacy matters, which continue to absorb significant management time and focus. We believe that on completion of the dual-trustee review, all material legacy risk areas in James Hay will have been reviewed for financial exposure and client detriment and the reduction of costs relating to this work is likely to lead to increased efficiency and will allow us to focus on growing the core business.
Extract from operational review - Saunderson HouseHIGHLIGHTS
|
|
|
|
|
|||
|
Notes |
2018 |
2017 |
|||
|
|
£'000 |
£'000 |
|||
From operations |
|
|
|
|||
Revenue |
3 |
87,633 |
78,394 |
|||
Staffing expense |
|
(54,578) |
(49,265) |
|||
Depreciation and amortisation |
|
(6,426) |
(5,330) |
|||
Expected credit loss on trade receivables/impairment allowance |
|
(56) |
(64) |
|||
Other operating expenses |
|
(26,250) |
(24,299) |
|||
Other gains |
|
4 |
131 |
|||
Operating profit/(loss) |
|
327 |
(433) |
|||
|
|
|
|
|||
Analysed as: |
|
|
|
|||
Operating profit before exceptional items |
10,250 |
8,362 |
|
|||
Exceptional items |
4 |
(9,923) |
(8,795) |
|||
Operating profit/(loss) |
|
327 |
(433) |
|||
|
|
|
|
|||
Finance income |
|
123 |
52 |
|||
Profit/(loss) before income tax |
|
450 |
(381) |
|||
|
|
|
|
|||
Income tax (expense)/credit |
5 |
(1,404) |
43 |
|||
Loss for the financial year |
|
(954) |
(338) |
|||
|
|
|
|
|||
|
|
|
|
|||
The expected credit loss recognised in 2018 was calculated in accordance with IFRS 9: Financial Instruments in comparison to the prior year allowance which was calculated in line with IAS 39 Financial Instruments: Recognition and Measurement. The impairment allowance in the prior year was disclosed as part of other operating expenses. Earnings per share from continuing operations attributable to the owners of the Company during the year: |
||||||
|
|
2018 |
2017 |
|||
|
|
|
|
|||
Loss per ordinary share (pence) |
|
|
|
|||
Basic |
6 |
(0.90) |
(0.32) |
|||
Diluted |
6 |
(0.90) |
(0.32) |
|||
|
|
|
|
|||
Year ended 31 December 2018
|
|
2018 |
2017 |
|
|
£'000 |
£'000 |
|
|
|
|
Loss for the financial year |
|
(954) |
(338) |
|
|
|
|
Other comprehensive income: |
|
|
|
Items that may be reclassified subsequently to profit or loss: |
|
|
|
Exchange differences on translation of foreign currency operations |
|
29 |
143 |
Other comprehensive income |
|
29 |
143 |
Total comprehensive loss for the financial year |
|
(925) |
(195) |
|
|
|
|
Year ended 31 December 2018
|
|
2018 |
2017
|
|
|
£'000 |
£'000 |
ASSETS |
|
|
|
Non-current assets |
|
|
|
Property, plant and equipment |
|
3,814 |
4,181 |
Intangible assets |
|
51,682 |
53,720 |
Deferred income tax asset |
|
156 |
703 |
Total non-current assets |
|
55,652 |
58,604 |
|
|
|
|
Current assets |
|
|
|
Trade and other receivables |
|
23,840 |
18,054 |
Income tax asset |
|
134 |
133 |
Cash and cash equivalents |
|
27,694 |
24,572 |
Total current assets |
|
51,668 |
42,759 |
Total assets |
|
107,320 |
101,363 |
|
|
|
|
LIABILITIES |
|
|
|
Non-current liabilities |
|
|
|
Deferred income tax liabilities |
|
1,817 |
2,252 |
Provisions for other liabilities |
|
471 |
449 |
Total non-current liabilities |
|
2,288 |
2,701 |
|
|
|
|
Current liabilities |
|
|
|
Trade and other payables |
|
20,581 |
19,239 |
Income tax liabilities |
|
288 |
168 |
Provisions for other liabilities |
|
10,138 |
4,539 |
Total current liabilities |
|
31,007 |
23,946 |
Total liabilities |
|
33,295 |
26,647 |
Net assets |
|
74,025 |
74,716 |
|
|
|
|
EQUITY |
|
|
|
Ordinary share capital presented as equity |
|
10,093 |
10,093 |
Share premium |
|
82,404 |
82,404 |
Other reserves |
|
(14,093) |
(14,118) |
Retained earnings |
|
(4,379) |
(3,663) |
Total equity |
|
74,025 |
74,716 |
Year ended 31 December 2018
|
Notes |
2018 |
2017 |
|||
|
|
£'000 |
£'000 |
|||
Cash flows from operating activities |
|
|
|
|||
Cash generated from operations |
8 |
10,665 |
10,132 |
|||
Exceptional items paid |
|
(2,550) |
(6,650) |
|||
Interest received |
|
113 |
48 |
|||
Income tax paid |
|
(1,087) |
(2,261) |
|||
Net cash generated from operating activities |
|
7,141 |
1,269 |
|||
|
|
|
|
|||
Cash flows from investing activities |
|
|
|
|||
Purchase of property, plant and equipment |
|
(1,039) |
(1,622) |
|||
Sale of property, plant and equipment |
|
- |
550 |
|||
Disposal of subsidiaries |
|
- |
4,037 |
|||
Acquisition of intangible assets |
|
(2,983) |
(2,766) |
|||
Net cash (used)/generated in investing activities |
|
(4,022) |
199 |
|||
|
|
|
|
|||
Cash flows from financing activities |
|
|
|
|||
Dividends paid |
|
- |
(5,217) |
|||
Cash settlement of vested share options |
|
- |
(35) |
|||
Net cash used in financing activities |
|
- |
(5,252) |
|||
|
|
|
|
|||
Net increase/(decrease) in cash and cash equivalents |
|
3,119 |
(3,784) |
|||
|
|
|
|
|||
Cash and cash equivalents at the beginning of the financial year |
|
24,572 |
28,226 |
|||
Effect of foreign exchange rate changes |
|
3 |
130 |
|||
Cash and cash equivalents at end of financial year |
|
27,694 |
24,572 |
|||
|
|
|
|
|||
Cash and cash equivalents for the purpose of the statement of cash flows are comprised of cash and short-term deposits net of bank overdrafts. For the purpose of the cash flow statement cash and cash equivalents include the following:
|
|
|
|
|||
|
|
|
|
|||
|
|
|
|
|||
|
Notes |
2018 |
2017 |
|||
|
|
£'000 |
£'000 |
|||
Cash and short-term deposits |
|
|
|
|||
- as disclosed on the Consolidated Statement of Financial Position |
9 |
27,694 |
24,572 |
|||
Cash and cash equivalents at end of financial year |
|
27,694 |
24,572 |
|||
|
|
|
|
|||
|
Share capital £'000 |
Share premium £'000 |
Other reserves £'000 |
Retained earnings £'000 |
Total equity £'000 |
At 1 January 2017 |
10,093 |
82,404 |
(14,054) |
1,763 |
80,206 |
|
|
|
|
|
|
Loss for financial year |
- |
- |
- |
(338) |
(338) |
Other comprehensive income |
|
|
|
|
|
Currency translation: |
|
|
|
|
|
- arising in the financial year |
- |
- |
143 |
- |
143 |
Total comprehensive loss for the financial year |
- |
- |
143 |
(338) |
(195) |
|
|
|
|
|
|
Dividends |
- |
- |
- |
(5,217) |
(5,217) |
Transfer of vested share-based payment |
- |
- |
(164) |
164 |
- |
Share-based payment compensation: |
|
|
|
|
|
- value of employee services - share options |
- |
- |
(43) |
- |
(43) |
- Cash settlement of vested share options |
- |
- |
- |
(35) |
(35) |
Transaction with owners |
- |
- |
(207) |
(5,088) |
(5,295) |
At 31 December 2017 |
10,093 |
82,404 |
(14,118) |
(3,663) |
74,716 |
|
|
|
|
|
|
Loss for financial year |
- |
- |
- |
(954) |
(954) |
Other comprehensive income |
|
|
|
|
|
Currency translation: |
|
|
|
|
|
- arising in the financial year |
- |
- |
29 |
- |
29 |
Total comprehensive loss for the financial year |
- |
- |
29 |
(954) |
(925) |
Dividends |
- |
- |
- |
- |
- |
Transfer of vested share-based payment |
- |
- |
(238) |
238 |
- |
Reclassification of exchange reserve upon strike-off of subsidiaries |
- |
- |
- |
- |
- |
Share-based payment compensation: |
|
|
|
|
|
- value of employee services - share options |
- |
- |
234 |
- |
234 |
- Cash settlement of vested share options |
- |
- |
- |
- |
- |
Transaction with owners |
- |
- |
(4) |
238 |
234 |
At 31 December 2018 |
10,093 |
82,404 |
(14,093) |
(4,379) |
74,025 |
IFG Group plc is a public company, listed on the Irish and London Stock Exchanges and is registered and domiciled in the Republic of Ireland (registration number 21010). The Group's registered address is 70 Sir John Rogerson's Quay, Grand Canal Dock, Dublin 2, Ireland. These consolidated statements comprise the Company and its subsidiaries. The Group provides a range of financial solutions including full platform services, pension administration and independent financial advice.
These consolidated financial statements are presented in Sterling, which is the Company's functional currency. All amounts have been rounded to the nearest thousand, unless otherwise indicated.
The Group financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the EU (IFRS), IFRIC interpretations and those parts of the Companies Act 2014 applicable to companies reporting under IFRS.
The financial information in this report has been prepared in accordance with the listing rules of the Euronext Dublin Stock Exchange and in accordance with Group accounting policies. Full details of the accounting policies adopted by the Group are contained in the consolidated financial statements included in the Company's annual report for the year ended 31 December 2018, which will be available on the Group's website at www.ifggroup.com.
The preliminary accounts are prepared to provide shareholders and investors with reliable and timely information on the performance of the Group for the year.
The Group financial statements have been prepared on a basis consistent with that reported for the year ended 31 December 2017 with the exception of changes in the recognition of Impairment allowances in accordance with IFRS 9: Financial Instruments and the presentation of revenue in the segmental analysis in accordance with IFRS 15: Revenue from contracts with customers. No other new standards, amendments or interpretations, which became effective in 2018, have had a material effect on the Group financial statements.
The financial information presented in this preliminary release does not constitute "full group accounts" under Regulation 40(1) of the European Communities (Companies: Group Accounts) Regulations, 1992. The preliminary release was approved by the Board of Directors. The annual report and accounts have also been approved by the Board of Directors with an unqualified report from the external auditor. The financial information has been extracted from the audited annual report and accounts. The full Group accounts will be laid before the AGM and distributed to Shareholders in advance. They will be filed with the Irish Registrar of Companies following the AGM.
Full Group accounts for the year ended 31 December 2017 received an unqualified audit report and have been filed with the Irish Registrar of Companies.
The Group has identified certain measures that it believes will assist in the understanding of the performance of the business. These measures are not defined under IFRS and they may not be directly comparable with other companies' adjusted measures. These non-IFRS measures are not intended to be a substitute for, or superior to, any IFRS measures of performance but management have included them as they consider them to be important comparables and key measures used within the business for assessing performance.
The following are key alternative performance measures identified by the Group and used in the Group financial statements and in the financial information presented herein.
Adjusted operating profit is defined as operating profit, excluding acquisition-related amortisation, exceptional items and discontinued operations. Management believes excluding these items from the calculation of operating profit is useful because management excludes items that are not comparable when measuring operating profitability, evaluating performance trends and setting performance objectives. It allows investors to evaluate the Group's performance for different periods on a more comparable basis.
The reconciliation of adjusted operating profit to profit before income tax is disclosed in note 3.
Adjusted earnings is defined as profit attributable to owners of the Parent Company before amortisation of acquisition related intangible assets, exceptional items, discontinued operations and unwinding of discount applicable to contingent consideration, net of tax where applicable.
Adjusted EPS is defined as the continuing basic earnings per ordinary share adjusted for amortisation of acquired intangibles, exceptional items, discontinued operations and unwinding of discount applicable to contingent consideration, net of tax where applicable.
The Group uses adjusted operating profit, adjusted earnings and adjusted EPS as measures of performance to eliminate the impact of items it does not consider indicative of ongoing operating performance due to their inherent unusual, exceptional, or non-recurring nature or because they result from an event of a similar nature.
A table showing the reconciliation from basic EPS to adjusted EPS and a reconciliation from profit attributable to owners of the Parent Company to adjusted earnings is included in the financial review.
Free cash flow represents the cash flow generated from adjusted operating activities less cash used in relation to capital expenditure.
Management considers free cash flow an important measure of the Group's ability to generate cash and profits. It is an accurate measure of how much cash the Group has generated to service its debts, pay dividends and further invest in its operations. The financial review includes a reconciliation of free cash flow to the net cash flow in the period.
Return on capital employed is calculated as earnings before interest and tax divided by capital employed. It measures how efficiently the Group generates profits from its capital employed by comparing it to net profit.
In line with the requirements of IFRS 8, 'Operating segments', the Group has identified the Group Chief Executive of the Company as its Chief Operating Decision Maker ('CODM'). The Group Chief Executive reviews the Group's internal reporting in order to assess the performance of the Group and allocate resources. The operating segments have been identified based on these reports.
Throughout the year, the Group Chief Executive considered the business line perspective, based on three reporting segments: platform, independent wealth management and Group. The segments were managed by senior executives who reported to The Group Chief Executive and the Board of Directors. These segments are described in the strategic report.
The Group Chief Executive assesses the performance of the segments based on a measure of adjusted earnings. She reviews working capital and overall balance sheet performance at both a business level and on a Group wide basis, in addition, she also receives reports on all measures at an individual business level.
The Group earns its revenues in these segments by way of fees from the provision of services and commissions earned in the intermediation of financial service products. In line with the requirements of IFRS 15, further disaggregation of revenue within the operating segments have been disclosed to provide a more comprehensive understanding of the nature of different revenue streams, with prior year comparatives being presented on a disaggregated basis.
Goodwill is allocated to cash-generating units on a reporting segment level and that is the level at which it is assessed for impairment.
Income tax is managed on a centralised basis and therefore the item is not allocated between operating segments for the purpose of presenting information to the CODM and accordingly is not included in the detailed segmental analysis.
Intersegment revenue is not material and thus not subject to separate disclosure.
The information provided to the Group Chief Executive for the reportable segments, for the year ended 31 December 2018, is as follows:
|
Platform |
Independent wealth management |
Group/ other |
Total |
|
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
|
|
Annual fees |
24,682 |
- |
- |
24,682 |
Transaction fees |
3,216 |
- |
- |
3,216 |
Asset based fees (includes DMS) |
13,347 |
2,382 |
- |
15,729 |
Margin on cash |
12,050 |
- |
- |
12,050 |
Advisory fees |
- |
31,956 |
- |
31,956 |
Total revenue |
53,295 |
34,338 |
- |
87,633 |
|
|
|
|
|
|
|
|
|
|
Adjusted operating profit/(loss) |
10,293 |
7,092 |
(5,007) |
12,378 |
Amortisation of acquired intangibles |
(2,128) |
- |
- |
(2,128) |
Exceptional items |
(5,508) |
(2,996) |
(1,419) |
(9,923) |
Operating profit/(loss) |
2,657 |
4,096 |
(6,426) |
327 |
|
|
|
|
|
Finance income |
94 |
28 |
1 |
123 |
Profit/(loss) before income tax |
2,751 |
4,124 |
(6,425) |
450 |
Income tax expense |
|
|
|
(1,404) |
Loss for the year |
|
|
|
(954) |
For the year ended 31 December 2017 comparatives are as follows:
|
Platform |
Independent wealth management |
Group/ other |
Total |
|
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
|
|
Annual fees |
24,066 |
- |
- |
24,066 |
Transaction fees |
4,102 |
- |
- |
4,102 |
Asset based fees (includes DMS) |
11,274 |
1,420 |
- |
12,694 |
Margin on cash |
6,727 |
- |
- |
6,727 |
Advisory fees |
- |
30,805 |
- |
30,805 |
Total revenue |
46,169 |
32,225 |
- |
78,394 |
|
|
|
|
|
Adjusted operating profit/(loss) |
6,079 |
8,599 |
(4,179) |
10,499 |
Amortisation of acquired intangibles |
(2,137) |
- |
- |
(2,137) |
Exceptional items |
(6,262) |
(1,425) |
(1,108) |
(8,795) |
Operating (loss)/profit |
(2,320) |
7,174 |
(5,287) |
(433) |
|
|
|
|
|
Finance income |
35 |
17 |
- |
52 |
(Loss)/profit before income tax |
(2,285) |
7,191 |
(5,287) |
(381) |
Income tax credit |
|
|
|
43 |
Loss for the year |
|
|
|
(338) |
Assets and liabilities - 2018 |
|
|
|
|
|
Platform |
Independent wealth management |
Group/ other |
Total |
|
£'000 |
£'000 |
£'000 |
£'000 |
ASSETS |
|
|
|
|
|
|
|
|
|
Segment assets |
76,607 |
26,026 |
4,397 |
107,030 |
Deferred income tax asset |
|
|
|
156 |
Income tax asset |
|
|
|
134 |
Total assets as reported on the Consolidated Statement of Financial Position |
|
|
|
107,320 |
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
Segment liabilities |
(17,963) |
(10,125) |
(3,102) |
(31,190) |
Deferred income tax liabilities |
|
|
|
(1,817) |
Current income tax liabilities |
|
|
|
(288) |
Total liabilities as reported on the Consolidated Statement of Financial Position |
|
|
|
(33,295) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The 2017 comparatives are as follows: |
Platform |
Independent wealth management |
Group/ other |
Total |
ASSETS |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
|
|
Segment assets |
69,812 |
23,855 |
6,860 |
100,527 |
Deferred income tax asset |
|
|
|
703 |
Income tax asset |
|
|
|
133 |
Total assets as reported on the Consolidated Statement of Financial Position |
|
|
|
101,363 |
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
Segment liabilities |
(12,251) |
(9,519) |
(2,457) |
(24,227) |
Deferred income tax liabilities |
|
|
|
(2,252) |
Current income tax liabilities |
|
|
|
(168) |
Total liabilities as reported on the Consolidated Statement of Financial Position |
|
|
|
(26,647) |
|
|
|
|
|
Other segmental information - 2018 |
Platform |
Independent wealth management |
Group/ other |
Total |
|
£'000 |
£'000 |
£'000 |
£'000 |
Property, plant and equipment - additions |
586 |
441 |
12 |
1,039 |
Intangible assets - additions |
2,229 |
754 |
- |
2,983 |
Property, plant and equipment - depreciation |
(835) |
(500) |
(71) |
(1,406) |
Intangible assets - amortisation |
(2,303) |
(589) |
- |
(2,892) |
Acquired intangible assets - amortisation |
(2,128) |
- |
- |
(2,128) |
|
|
|
|
|
The 2017 comparatives are as follows: |
Platform |
Independent wealth management |
Group/ other |
Total |
|
£'000 |
£'000 |
£'000 |
£'000 |
Property, plant and equipment - additions |
586 |
1,011 |
25 |
1,622 |
Intangible assets - additions |
1,974 |
792 |
- |
2,766 |
Property, plant and equipment - depreciation |
(819) |
(327) |
(120) |
(1,266) |
Intangible assets - amortisation |
(1,570) |
(413) |
- |
(1,983) |
Acquired intangible assets - amortisation |
(2,137) |
- |
- |
(2,137) |
Included In depreciation for the year ending 31 December 2017 were £54,000 of costs relating to the Dublin head office closure which were treated as exceptional costs
The Group is domiciled in the Republic of Ireland, however all revenue is derived in the UK in both the current and prior financial years.
During the year, there were no revenues derived from a single customer that represent 10% or more of total revenues, in line with 2017.
The total non-current assets (excluding deferred income tax assets), at the year end, were all held in the United Kingdom, £55.5 million (2017: £57.9 million).
Exceptional items charged against operating profit |
2018 |
2017 |
|
£'000 |
£'000 |
Redundancy and restructuring costs |
722 |
1,385 |
Legal, Remediation and governance fees |
5,574 |
5,375 |
Retention payments |
3,000 |
- |
Consultancy costs |
- |
1,566 |
Loss on disposal of International division |
627 |
469 |
Total |
9,923 |
8,795 |
Costs of £0.7 million relating to the departure of the former Group CEO have been recognised in the year.
Remediation and sanction costs relating to James Hay's ongoing review of the dual-trustee book of £4.9 million, in addition to £0.6 million of costs related to ongoing legacy products review has been recognised in the year. Legal costs in relation to the Saunderson House cancelled sale process for £0.1 million have also been recognised during the year.
A one-off cost of £3.0 million related to the previously announced retention arrangements for senior management and employees of Saunderson House following the cancelled sale process.
Costs of £0.6 million were provided in the year, relating to the notice of claim under the indemnities provided in association with the sale of the International business. The increase in the provision was full and final settlement of the matter and payment was settled in January 2019.
Redundancy costs relating to the restructure of the James Hay business of £1.3 million, and a cost of £0.1 million related to the impairment of the Swavesey office and the delayed closure of the Dublin office.
A cost of £5.4 million has been recognised in relation to remediation and legal costs. Costs incurred include £2.0 million in relation to the ongoing Elysian Fuels investigation (which includes £1.3 million of provisions for legal costs), £1.6 million of costs relating to the historical pension transfers review in Saunderson House, where there are safeguarded benefits (which includes a provision of £0.9 million for potential client remediation) and £1.8 million of costs associated with the review of other legacy matters in James Hay, (including a provision of £1.5 million for potential remediation).
Consultants costs of £1.6 million relating to the detailed review associated with the ongoing legacy matters detailed above were treated as exceptional during the year.
The exceptional loss of £0.5 million relates to the legal costs paid in relation to the First Names claim under the indemnities provided in the sale of the International Segment of which £0.3 million relates to interim assessment of costs awarded by the judge and £0.1 million relates to legal costs provided for.
|
2018 |
2017 |
|
£'000 |
£'000 |
Current tax |
|
|
Ireland (at 12.5%): |
|
|
- current year |
20 |
46 |
- prior year |
(1) |
- |
UK and other (primarily at 19.00% (2017: 19.25%)): |
|
|
- current year |
1,786 |
1,278 |
- prior year |
(513) |
(602) |
Total current tax expense |
1,292 |
722 |
|
|
|
|
|
Deferred tax |
|
|
|
|
Ireland: |
|
|
|
|
- current year |
|
|
- |
3 |
- prior year |
|
|
6 |
- |
UK and other:
|
|
|
|
|
- current year |
|
|
(338) |
(987) |
- prior year |
|
|
444 |
219 |
Total deferred tax expense/(credit) |
|
|
112 |
(765) |
Total income tax expense/(credit) |
|
|
1,404 |
(43) |
The tax on the Group's profit before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to the profits of the consolidated entities as follows:
|
2018 |
2017 |
|
£'000 |
£'000 |
|
|
|
Profit/(loss) before income tax |
450 |
(381) |
|
|
|
Tax calculated at domestic tax rates applicable to results in the respective country |
86 |
(73) |
Adjustment in respect of prior years |
(64) |
(383) |
Re-measurement of deferred tax - impact of change in UK tax rate |
(5) |
79 |
Non-taxable gain |
(1) |
(9) |
Differences in overseas tax rates |
(11) |
(19) |
Current year losses for which no deferred tax asset was recognised |
48 |
60 |
Others including expenses not deductible for tax purposes |
1,351 |
302 |
Income tax expense/(credit) |
1,404 |
(43) |
The weighted average applicable tax rate for the year was 312% (2017:11.3 %). Increased Group plc costs, settlement costs associated with the sale of the International business and sanction charges arising from the ongoing legacy reviews, which are not allowable for tax, has resulted in a higher effective tax rate. During the year, the Company re-measured relevant deferred tax balances that were impacted by the change in the UK rate substantively enacted at the balance sheet date. In accordance with the IFRS provisions, the rate of 17% is used as a basis for the calculation of UK deferred taxes.
|
2018 |
2017 |
Basic |
|
|
Loss after income tax (£'000) |
|
|
From operations |
(954) |
(338) |
Total |
(954) |
(338) |
|
|
|
Weighted average number of ordinary shares in issue for the |
|
|
calculation of earnings per share |
105,405,665 |
105,405,665 |
|
|
|
Basic loss per share (pence) |
|
|
From operations |
(0.90) |
(0.32) |
From loss for the year |
(0.90) |
(0.32) |
|
|
|
|
|
|
|
2018 |
2017
|
Diluted |
|
|
Loss after income tax (£'000) |
|
|
From operations |
(954) |
(338) |
Total |
(954) |
(338) |
|
|
|
Weighted average number of ordinary shares in issue for the |
|
|
calculation of earnings per share |
105,405,665 |
105,405,665 |
Dilutive effect of share options |
108,724 |
246,069 |
|
|
|
Weighted average number of ordinary shares for the calculation of |
|
|
diluted earnings per share |
105,514,389 |
105,651,734 |
|
|
|
Diluted loss per share (pence) |
|
|
From operations |
(0.90) |
(0.32) |
From loss for the year |
(0.90) |
(0.32) |
Given the nature of the business the Group undertakes, it may from time to time receive complaints against it. The Group has procedures in place to assess the veracity of the claims and provision has been made to cover its best estimate of the exposure in respect of these matters which requires significant judgement and subjective assumptions. No provisions have been recorded for other contingencies, as the Group's obligations under them are not probable and estimable.
Following the Group's ongoing review initiated in 2017, the Group has identified a number of legacy matters which are still under consideration as set out below.
As previously disclosed, the Group is incurring material legal and remediation costs relating to James Hay's inception of Elysian Fuels investments between 2011-2015. James Hay received notices of assessment arising from Elysian Fuels for tax years 2011-2012 and 2012-2013 and protective notices of assessment in respect of 2013-2014 and 2014-2015, all of which have been appealed. James Hay has applied to HMRC for the assessments in respect of tax years 2011-2012 and 2012-2013 to be discharged and intends to submit further applications to apply for the discharge of the assessments in respect of tax years 2013-2014 and 2014-2015. Our discussions with HMRC seeking an acceptable resolution of James Hay's inception of Elysian Fuels investments over the overall 2011-2015 period are on-going.
James Hay is committed to working collaboratively with HMRC to resolve this matter and will continue to do so. However, James Hay will pursue appeals to the Tax Tribunals as necessary to protect its position. The maximum potential sanction charge for the overall 2011-2015 period is approximately £20m, plus interest at HMRC's standard rate, assuming all Elysian Fuels shares are deemed valueless at inception, and no underlying clients discharge their own tax liabilities.
Based on advice from the Group's legal advisers, the directors are confident that the outcome at Tribunal and/or any settlement with HMRC would be substantially lower than the maximum potential sanction charge and would be fundable from the Group's cash resources at the time an obligation is anticipated to crystallise. As a result of a range of disputed facts regarding our actions, any resulting liability, which would be a function of investment valuations and the level of any charge or client liability/recovery, is highly uncertain and unquantifiable and is expected to remain so whilst discussions with HMRC and/or any Tribunal proceedings continue. Therefore no provision, other than for legal fees expected to be incurred in relation to this matter, are provided for as the liability remains contingent. The Group believes James Hay acted appropriately and in accordance with its clients' instructions in relation to these investments.
Review of the dual-trustee book which is now closed to new business is underway. We have now reviewed approximately 20% of the SSAS book and work continues to complete the review. While we have provided for our best estimate of costs in relation to the whole book of business, the provision is based on extrapolation from the sample reviewed to date based on the incidence of issues and the cost per issue from that sample. As such, there is a significant level of judgement in reaching our estimates and further issues may come to light in future as work progresses. A 10% change in either incidence or cost per issue would change the provision by £485,000. The provision made is largely in relation to potential HMRC sanction charges as a result of unauthorised payments from SSAS schemes and hence is not covered by insurance. The ongoing review may identify further cases in need of remediation (which we would expect to be significantly recoverable from insurance) and/or subject to sanction charges.
The Group has continued its reviews of other legacy business, to ensure that any other contingent exposures are identified and remediated. Over time these may result in further remediation costs, including legal costs for legacy claims and HMRC sanction charges, however, the exposures remain uncertain. These reviews remain in progress although some matters have been provided in exceptional costs in respect of 2017 and 2018, to the extent such liabilities have been deemed likely and capable of being estimated with reasonable certainty.
James Hay received a protective assessment in relation to pension relief at source for the tax years 2013/14 and 2014/15 where the contributions in question were underpinned by the transfer of an asset. The maximum potential exposure for these tax years is c.£0.4 million. James Hay does not consider that any relief at source paid to it during the period to which the assessment relates is properly repayable to HMRC and has appealed the assessment.
In last year's decision involving Sippchoice and HMRC, the Tribunal found that a contribution in kind to a self-invested pension plan was a payment which gave rise to an income tax deduction. The Tribunal also observed that HMRC's attempt to deny relief at source in respect of asset contributions clearly contradicted the position set out in HMRC's Pensions Tax Manual. HMRC disagrees with the Sippchoice decision and has appealed the decision. The outcome of the Sippchoice appeal may have an impact on James Hay's appeal against the assessment.
Given the uncertainty around the appeals, we have included this as a contingent liability.
|
2018 |
2017 |
From operations |
£'000 |
£'000 |
Profit/(loss) before income tax |
450 |
(381) |
Depreciation and amortisation |
6,427 |
5,332 |
Finance income |
(123) |
(52) |
Foreign exchange movement |
32 |
35 |
Non-cash share based payment compensation charges |
6 |
(43) |
(Increase)/decrease in trade and other receivables |
(5,786) |
750 |
Increase in current and provisions |
9,659 |
4,491 |
Cash generated from continuing operations |
10,665 |
10,132 |
|
|
|
The increase in trade receivables in the year primarily relates to an increase in work-in-progress balances in Saunderson House and the short-term funding of client trades in James Hay at the year end, which reduced year end cash balances and subsequently reversed in January 2019. The increase in liabilities is primarily due to provisions made in relation to legacy matters, which are expected to be paid during 2019.
|
Opening |
Cash |
Other |
Closing |
|
Balance |
flow |
movements |
balance |
|
£'000 |
£'000 |
£'000 |
£'000 |
Cash and short-term deposits |
24,572 |
3,119 |
3 |
27,694 |
Total |
24,572 |
3,119 |
3 |
27,694 |
Other movements of £3,000 include the impact of exchange rate movements arising on balances denominated in currencies other than Sterling.
The Board has reluctantly taken a prudent decision that no final dividend will be paid in respect of 2018.
This preliminary announcement was approved by the Board of Directors on 22 March 2019.
ISIN: | IE0002325243 |
Category Code: | ACS |
TIDM: | IFP |
LEI Code: | 213800DDLICUJ14JTY47 |
OAM Categories: | 1.1. Annual financial and audit reports |
Sequence No.: | 7924 |
EQS News ID: | 790973 |
End of Announcement | EQS News Service |