RNS Number:4616E
Claims People Group PLC
26 September 2007
26 SEPTEMBER 2007
The Claims People Group plc
("Claims People" or "the Group")
INTERIM RESULTS
FOR THE PERIOD TO JUNE 2007
The Board of Claims People, the AIM quoted insurance claims facility provider,
announces today Interim Results for the period to June 2007 - reflecting both
growth in revenues and a return to profit.
HIGHLIGHTS
* Profit before tax of #10,778 (2006: loss #66,565);
* Revenues up 47% to #1,929,729 (2006: #1,311,397);
* Successful share placing of #500,000;
* Improved cash balances #216,582 (2006: #235,281 overdrawn);
* Two new divisions launched - creating first mover advantage;
* Board strengthened through appointments and realignment;
* i-Team consultancy revenues substantially increased by 150%; and
* Increase in loss adjusting revenues in the second half of the year as a
result of floods across England.
Commenting, John French, Chairman, said: "The year has started well with the
Group achieving a profit during the period despite the increased costs of
strengthening the Board and the launching of two new divisions.
"With the appointment of Geoff Somervail as Chief Executive, Barry Whyte moving
to the position of Group Managing Director and Robert Mitchell of Bluehone
Investments joining as a Non-Executive Director, the future looks increasingly
positive and the Board looks forward to updating all shareholders on progress in
due course."
ENQUIRIES:
The Claims People Group plc
John French, Chairman Mobile: 07836 722 482
Daniel Stewart & Company plc Tel: 020 7776 6550
Lindsay Mair
Bishopsgate Communications Ltd Tel: 020 7562 3350
Dominic Barretto
Nick Farmer
CHAIRMAN'S STATEMENT
I am pleased to report to shareholders today on the Group's Interim Results for
the period to 30 June 2007. In short, the year has started well with the Group
achieving a profit during the period despite the increased costs of
strengthening the Board, the launching of two new divisions and increased
marketing expenditure. The Group expects to benefit greatly from these
activities in the second half of the year.
Financials
The Board is delighted to report pre-tax profits of #10,778 - a marked
improvement on a loss of #66,565 reported for the equivalent period last year.
Revenues are up 47% to #1,929,729 (2006: #1,311,397); demonstrating the Board's
commitment to building shareholder value. The Group's cash position has greatly
improved in the period under review and our current cash and cash equivalents
stand at #216,582 (2006: #235,281 overdrawn).
Placing of New Shares
The Group completed a successful Placing of new shares at 1.5p raising a total
of #500,000 from subscriptions by new and existing Directors. New Chief
Executive Geoff Somervail subscribed for 11,121,667 shares, representing 8.16
per cent. of the issued share capital of the Company. Bluehone Investments
subscribed for 4,423,333 new ordinary shares, increasing its holding to
18,089,330 shares, representing 13.27% of the issued share capital of the
Company. Cornhill Shareholders Limited subscribed for 11,121,667 new ordinary
shares, representing 8.16 per cent. of the issued share capital of the Company.
Founding Directors Barry Whyte and David Croston each subscribed for 3,333,333
new ordinary shares taking their holdings to 8,850,014 shares (6.49 per cent.)
and 6,835,014 shares (5.02 per cent.) respectively.
Board strengthened through appointment and realignment
The Group appointed to the Board Geoff Somervail as Chief Executive, with Barry
Whyte moving to the position of Group Managing Director and Robert Mitchell of
Bluehone Investments has been appointed as a Non-Executive Director.. Both bring
with them experience which will be of tremendous value to the Group moving
forward through the upcoming year end and beyond into 2008.
Divisional Update
In 2006, the Board made a strategic decision to shift 'upmarket' within the loss
adjusting sector - in the form of lower volume but higher value 'technical'
claims, whilst simultaneously pursuing a policy of exploring niche areas of the
claims market that had been largely unrecognised.
With the successful launch of two new operations, a claims-specific recruitment
agency (Claims People Recruitment) and a motor collision investigation service
(Motor Forensic), the Group now has four divisions adding to Claims People
Adjusting and i-Team. Furthermore, the Group now has achieved critical 'first
mover' advantage in the potentially valuable 'implant support team' market and
in the fields of its two new operations.
All divisions continue to perform strongly:
* i-Team continues to go from strength to strength, and with a widened
client base the Board expects continued good performance moving forward;
* Claims People loss adjusting division, has gained new clients since April
2007 (including DAS, Facilitas and AIG) and is set to increase revenues
from the activity resulting from the much publicised flooding in the UK, as
well as new client wins; and
* Investment in the two new divisions has impacted positively on the Group
performance and new clients have been gained for all divisions - including
Endsleigh, Allianz, St. Paul, MSL, Tradex and Primary Group.
There has been increased marketing and sales activity, including cross selling
of services between the divisions . The Board also remains focused on looking
for additional opportunities to further enhance and widen the Group's range of
services and client base.
Outlook
The Board continues to evaluate complementary acquisitions and is in a strong
position with the support of a range of blue chip clients including CAPITA,
HSBC and BT plus several major UK insurers - and the Board hopes to continue to
build on the overall profile of all activities.
With new clients in the insurance sector being gained by each division, the
future looks increasingly positive and the Board looks forward to updating all
shareholders on progress in due course at the time of the full year results, to
be reported next year.
John French
Chairman
Date 26 September 2007
INDEPENDENT REVIEW REPORT TO THE CLAIMS PEOPLE GROUP PLC
Introduction
We have been instructed by the company to review the financial information for
the six months ended 30 June 2007 on pages 5 to 12 which comprises the income
statement, the balance sheet, the cash flow statement and the related notes. We
have read the other information contained in the interim report and considered
whether it contains any apparent misstatements or material inconsistencies with
the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The directors
are responsible for preparing the interim report in accordance with the AIM
Rules of the London Stock Exchange which require that the accounting policies
and presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes, and
the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of management and applying analytical
procedures to the financial information and underlying financial data and, based
thereon, assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. This report, including the
conclusion, has been prepared for and only for the company for the purpose of
the AIM Rules of the London Stock Exchange and for no other purpose. A review
excludes audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with International Standards on Auditing and therefore
provides a lower level of assurance than an audit. Accordingly we do not
express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2007.
Saffery Champness
Chartered Accountants
Lion House
Red Lion Street
London
WC1R 4GB
26 September 2007
THE CLAIMS PEOPLE GROUP PLC
CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2007
6 months ended 6 months ended Year ended
30 June 2007 30 June 2006 31 December 2006
Unaudited Unaudited Audited
# # #
Revenue 1,929,729 1,311,397 2,824,784
Administrative expenses (1,915,408) (1,377,974) (2,876,935)
Profit/(loss) from operations 14,321 (66,577) (52,151)
Finance costs - net
Interest receivable 3,303 1,078 1,079
Interest payable (6,846) (1,066) (11,075)
(3,543) 12 (9,996)
Profit/(loss) before tax 10,778 (66,565) (62,147)
Taxation 3
- - -
Profit/(loss) for the period 10,778 (66,565) (62,147)
Profit/(loss) per share 4 0.01p (0.06p) (0.06p)
Fully diluted profit/(loss) per share 4 0.01p (0.06p) (0.06p)
THE CLAIMS PEOPLE GROUP PLC
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2007
Share Share Retained
capital premium Earnings
account
# # #
Balance at 1 January 2006 1,544,062 877,841 (1,196,457)
Loss for the period - - (66,565)
____________ ____________ ____________
Balance at 30 June 2006 1,544,062 877,841 (1,263,022)
Balance at 1 July 2006 1,544,062 877,841 (1,263,022)
Profit for the period
- - 4,418
Balance at 31 December 2006 1,544,062 877,841 (1,258,604)
Balance at 1 January 2007 1,544,062 877,841 (1,258,604)
Profit for the period - - 10,778
Issue of equity share capital 500,000 - -
Share issue costs - (5,000) -
Balance at 30 June 2007 2,044,062 872,841 (1,247,826)
THE CLAIMS PEOPLE GROUP PLC
CONSOLIDATED BALANCE SHEET
30 JUNE 2007
30 June 2007 30 June 2006 31 December 2006
Unaudited Unaudited Audited
# # #
ASSETS
Non-current assets
Goodwill 265,661 265,661 265,661
Property, plant and equipment 78,852 96,206 85,369
344,513 361,867 351,030
Current assets
Work in progress 386,790 417,399 379,077
Trade and other receivables 1,133,292 931,134 1,274,290
Cash and cash equivalents 216,582 1,093 272
____________ ____________ ____________
1,736,664 1,349,626 1,653,639
Total assets 2,081,177 1,711,493 2,004,669
EQUITY
Capital and reserves attributable to
the Company's equity shareholders
Share capital 2,044,062 1,544,062 1,544,062
Share premium account 872,841 877,841 877,841
Retained earnings (1,247,826) (1,263,022) (1,258,604)
Total equity 1,669,077 1,158,881 1,163,299
LIABILITIES
Current liabilities 412,100 552,612 841,370
Non-current liabilities
- - -
Total liabilities 412,100 552,612 376,447
____________ ____________ ____________
Total equity and liabilities 2,081,177 1,711,493 2,004,669
THE CLAIMS PEOPLE GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2007
6 months ended 6 months Year ended
30 June 2007 ended 31 December 2006
Unaudited 30 June 2006 Audited
Unaudited
# # #
Cash flows from operating activities
Profit/(loss) from operation 14,321 (66,577) (52,151)
Adjustments for:
Depreciation of property, plant and equipment 21,167 41,214 72,934
Operating cash flows before movements
In working capital 35,488 (25,363) 20,783
Increase in work in progress (7,713) (44,052) (5,730)
Decrease/(increase) in receivables 140,998 (239,871) (583,027)
Increase/(decrease) in payables 34,480 (53,218) 17,659
____________ ____________ ____________
Cash used in operations 203,253 (362,504) (550,315)
Interest paid
(6,846) (1,066) (11,075)
Net cash used in operating activities 196,407 (363,570) (561,390)
Cash flows from investing activities
Interest received 3,303 1,078 1,079
Purchase of property, plant
and equipment (14,650) (9,391) (30,274)
Net cash flows used in investing activities (11,347) (8,313) (29,195)
Cash flows from financing activities
Issue of equity share capital 500,000 - -
Cost of issue of equity share capital (5,000) - -
Repayments of bank loan (2,504) (3,755) (7,510)
Repayment of obligations under finance lease - (3,236) (6,472)
Net cash from/(used in) financing activities 492,496 (6,991) (13,982)
Net decrease in cash and cash equivalents 677,556 (378,874) (604,567)
Cash and cash equivalents at beginning of year (460,974) 143,593 143,593
Cash and cash equivalents at end of year 216,582 (235,281) (460,974)
THE CLAIMS PEOPLE GROUP PLC
NOTES TO THE INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2007
1. Accounting Policies
Basis of accounting
The financial statements have been prepared under the historical cost convention
and in accordance with applicable accounting standards. The most significant
accounting policies are described below.
Basis of consolidation
The consolidated financial statements incorporate the results of the Company and
all its subsidiary undertakings as if they were a single entity. Subsidiary
undertakings are consolidated from the date of acquisition using the acquisition
method of accounting.
Turnover
Turnover represents the invoiced amount of services provided in the period and
is stated net of VAT.
Tangible fixed assets
Tangible fixed assets are stated at cost less provision for depreciation.
Depreciation is provided on all tangible fixed assets at rates calculated to
write off the cost of each asset less its estimated residual value evenly over
its estimated useful life, as follows:
Claims software over five years
Office equipment and fittings over three to five years
Website development over three years
Goodwill
Goodwill is stated at cost prior to adoption of International Accounting
Standards and is reviewed at each period end for impairment.
Work in progress
Revenue arising from the rendering of services is recognised only to the extent
of the expenses recognised that are recoverable. Work in progress is valued at
its recoverable amount.
Leasing and finance lease commitments
Assets obtained under hire purchase contracts and finance leases are capitalised
in the balance sheet and depreciated over their useful economic lives. The
interest element of the rental obligations is charged to the profit and loss
account over the period of the contract and represents a constant proportion of
the balance of capital payments outstanding. Rentals paid under operating leases
are charged to the profit and loss account on a straight line basis over the
term of the lease.
THE CLAIMS PEOPLE GROUP PLC
NOTES TO THE INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2007
1. Accounting Policies (continued)
Deferred taxation
Deferred tax is recognised in respect of all timing differences that have
originated but not reversed at the balance sheet date where transactions or
events that result in an obligation to pay more tax in the future or a right to
pay less tax in the future have occurred at the balance sheet date. Timing
differences are differences between the Group's taxable profits and its results
as stated in the financial statements that arise from the inclusion of gains and
losses in tax assessments in periods different from those in which they are
recognised in the financial statements. A net deferred tax asset is regarded as
recoverable and therefore recognised only when, on the basis of all available
evidence, it can be regarded as more likely than not that there will be suitable
taxable profits from which the future reversal of the underlying timing
differences can be deducted. Deferred tax is measured on a non-discounted basis
at the average tax rates that are expected to apply in the periods in which the
timing differences are expected to reverse.
Pension costs
The Group contributes to two Group Personal Pension Schemes for Directors and
senior employees. Pension contributions are charged to the profit and loss
account as they are incurred.
2. Financial Information
The financial information above does not constitute statutory accounts within
the meaning of Section 240 of the Companies Act 1985. The interim financial
information has not been audited but has been reviewed by the Company's
auditors.
The interim financial statements have been prepared in accordance with IAS 34,
Interim Financial Reporting. These interim statements have been prepared in
accordance with those IFRS standards and IFRIC interpretations issued and
effective as at the time of preparing these statements.
THE CLAIMS PEOPLE GROUP PLC
NOTES TO THE INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2007
3. Taxation
No liability to taxation arises due to tax losses available from previous
periods. The company has approximately #954,000 of tax losses available for
relief against future trading profits.
6 months ended 6 months ended Year ended
30 June 2007 30 June 2006 31 December 2006
Unaudited Unaudited Audited
# # #
Current
UK corporation tax - - -
Deferred tax
Charge arising on valuation of deferred
tax assets - - -
Credit arising on recognition of
deferred tax asset - - -
______________ ______________ _____________
- - -
Deferred tax asset comprises:
Accelerated capital allowances 34,729 35,681 34,729
Short term timing differences 2,837 2,837 2,837
Trading losses 95,992 95,040 95,992
133,558 133,558 133,558
Factors affecting the tax charge for the period:
Profit/(loss) on ordinary activities
before taxation 10,778 (66,565) (62,147)
Corporation tax at 30% 3,233 (19,970) (18,644)
Effects of:
Disallowed expenditure 3,580 8,984 6,374
Depreciation and amortisation 6,350 12,364 21,880
Capital allowances (3,663) (9,877) (25,367)
Losses Utilised (9,500) - 15,757
Other tax adjustments - (11,471) -
______________ ______________ _____________
- - -
THE CLAIMS PEOPLE GROUP PLC
NOTES TO THE INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2007
4. Earnings per share
The earnings per share is based on the profit for the period and the weighted
average number of ordinary shares in issue and ranking for dividend.
6 months ended 6 months ended Year ended
30 June 2007 30 June 2006 31 December 2006
Unaudited Unaudited Audited
# # #
Profit/(loss) for the period 10,778 (66,565) (62,147)
Weighted average number of shares 125,405,271 102,937,500 102,937,500
Fully diluted average number of shares 136,270,833 102,937,500 102,937,500
5. Cash and cash equivalents
6 months ended 6 months ended Year ended
30 June 2007 30 June 2006 31 December 2006
Unaudited Unaudited Audited
# # #
Cash and bank balances 216,582 1,093 272
Bank overdraft - (236,374) (461,246)
_____________ _____________ ________________
216,582 (235,281) (460,974)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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