TIDMCOL

RNS Number : 2428P

Colliers International UK PLC

30 September 2011

30 September 2011

COLLIERS INTERNATIONAL UK PLC

("Colliers International UK" or "the Group")

HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2011

Colliers International UK (AIM: COL), one of the leading commercial real estate consultancy groups in the UK, announces its half year results for the six months to 30 June 2011.

 
 Financial highlights: 
 --   Group revenues up 2% to GBP31.02m (2010: GBP30.33m) 
 --   Operating loss (before exceptional items) of GBP3.47m 
       (2010: loss of GBP3.05m as restated) 
 --   Loss before tax of GBP3.99m (2010: GBP5.14m) 
 
 
 Operational highlights: 
 --   Recruitment of senior individuals in key growth areas 
 --   More client facing organisation 
 --   Increasing levels of cross-selling and referral of instructions 
 --   Improving number of opportunities for new business pitches 
 

Commenting on the results, Sir John Ritblat, Chairman said:

"We have restructured, refocused and rebranded our businesses. I remain confident about our medium and longer term prospects"

For further information, please visit www.colliers.com/uk or contact:

 
 Colliers International UK plc   Tavistock Communications 
 020 7344 6706                   020 7920 3150 
 Sally Hooker                    Simon Hudson / Amy Walker 
 
 Panmure Gordon 
 020 7459 3600 
 Tim Linacre / Fred Walsh 
 

CHAIRMAN'S STATEMENT

Earlier this year, I commented that, following a return to revenue growth in 2010, we were looking forward to improved economic conditions from which our business would be a substantial beneficiary. However, growth expectations for the UK economy have since been downgraded and the outlook in the short term remains clouded although I remain confident about our medium/longer term prospects.

Results

Group revenue for the six months to 30 June 2011 was GBP31.02m representing a 2% increase on the comparable period last year (GBP30.33m). Operating expenses, excluding exceptional items, were 4% higher at GBP34.82m (2010: GBP33.56m) as we continued with our planned recruitment programme. As a consequence, the Group's operating loss before exceptional items of GBP3.47m was higher than the equivalent figure last year of GBP3.05m.

Exceptional items include a profit of GBP0.62m on the sale of the Group's 24% shareholding in associated company Paladin Group Limited which was completed in June for an initial consideration of GBP0.69m with a potential further deferred payment of up to GBP0.31m dependent upon the trading performance of Paladin in its year ending 31 March 2012. This exceptional profit has been offset by re-organisation costs of GBP0.57m as we continue to rationalise certain areas of our UK business. Group loss before tax was GBP3.99m, down from GBP5.14m in the previous year. Basic and diluted loss per share was 2.45p (2010: loss of 3.39p) reflecting the reduced loss for the period.

Since the end of the half year, our markets have continued to be impacted by the wider economic environment. The riots in various cities in August also introduced additional temporary uncertainties although these now seem to be behind us. Overall, we now expect our businesses to break even in the second half of the year although this will result in an operating loss for the full year. At a pre-tax level, the absence of various exceptional costs incurred in the second half of 2010 should result in a much reduced deficit position.

Market review

UK Occupier Market

We anticipate that the remainder of 2011 and 2012 will see an extension of the current experience of recent months. London occupier markets will remain firm, but rental growth will be driven by lack of supply, rather than the strength of demand. Regional markets will continue to see slow recovery as political and economic uncertainty discourages expansionary investment and corporate consolidations, despite considerable cash reserves held by many corporates. The risk of further regional rental declines is limited as rents may be reaching base levels, but we do not expect significant rental growth in regional markets to materialise until 2013. Corporate administrations have stabilised, but the rate of company liquidations remains high relative to the pre-recession period.

UK Property Investment Market

The property investment market is also likely to remain flat with transactions in 2011 and 2012 struggling to reach 2010 levels. Transaction volumes by value were down by 25% in the second quarter of this year compared to the equivalent quarter in 2010. The annual year-end surge may not arise this year. Capital values, however, are likely to remain stable with the weight of both international and domestic money looking to invest in prime assets counterbalancing the weak economic outlook and the limited risk appetite of institutions for non-prime. Few truly prime assets are expected on the market but banks, having had time to write down assets to realistic levels, are now more likely to sell good quality secondary assets.

Tertiary assets on the market are not likely to attract much interest; debt is generally not available, tenants are vulnerable, and alternate uses are uncertain. Unless there is a sea-change in investor outlook or strategy, the total value of UK property investment transactions in 2011 will be lower than in 2010.

Business review

Notwithstanding the slowdown in the rate of growth, we continue to actively advise clients from all sectors on a wide range of projects and initiatives. Despite a reduction in investment transaction volumes in the market place, our National Investment team increased its revenues by 30% compared to the first half of 2010. We advised on the sale of 17 Virgin Active health and racquet clubs from Societe Generale to British Land for GBP178.5m.

We also advised Hines, who have teamed up with Ballymore, to progress the previously stalled Two Snowhill development in Birmingham and continued to advise the Football Association on the development of a National Football Centre at Burton-on-Trent, which is now under construction.

Our Building Consultancy department has won a commission to project manage the repairs, maintenance and new construction work across Siemens' entire UK portfolio and we were recently named Property Advisor of the Year for Scotland in the Estates Gazette Regional Awards.

On the international stage, our Healthcare team secured a contract to provide Union Life Insurance of Beijing with consultancy advice for the Wuhan Health Valley, a new health city in China and our Consulting team provided advice to Petronas, the Malaysian National Oil Company, on the potential development of land around the Petronas Towers in Kuala Lumpur.

The importance of adding to the knowledge and experience of our teams is paramount and we remain active recruiters in markets that we consider key to our future growth. Recently, we have appointed a new Head of Retail, a Head of Shopping Centre Leasing, a Head of South East Offices as well as two new directors into our Central London team. We still employ nearly seven hundred people in thirteen offices around the UK and a further fifty in our subsidiary companies in Ireland and Spain. We continue, nevertheless, to closely monitor our cost base in order to improve productivity and increase operational efficiency.

For the benefit of clients, we continue to actively participate in the integration and leverage of Colliers International, now the world's third largest commercial real estate advisory organisation with a global footprint comprising 512 offices in 61 countries.

Board change

We announced in our trading update in July that, after four years' service as a Non-Executive Director, Christopher Newell had resigned his position. We extend to him our thanks and our best wishes for the future.

At the same time, we were pleased to announce that Colin Wagman had agreed to re-join the Board as a Non-Executive Director. Colin is a Chartered Accountant and Deputy Chairman and Finance Director of Delancey, a leading specialist real estate and advisory group. He is also Chairman of Minerva plc. Colin previously served as a Non-Executive Director of the Company between August 2001 and October 2009.

Outlook

Although significant political and economic uncertainties remain, the level of activity within commercial real estate markets, which is the most important metric for us, is relatively stable albeit at much lower levels than experienced four to five years ago. Despite disappointing results whilst we have restructured, refocused and rebranded our businesses, I remain confident about our medium and longer term prospects.

Sir John Ritblat

Chairman

30 September 2011

 
 Unaudited Condensed Consolidated Income 
 Statement 
 
                                      Six months    Six months       Year to 
                                      to 30 June    to 30 June   31 December 
                              Note          2011          2010          2010 
                                     (unaudited)   (unaudited)     (audited) 
                                                     restated*     restated* 
                                          GBP000        GBP000        GBP000 
 --------------------------         ------------  ------------  ------------ 
 Revenue                       5          31,018        30,326        65,927 
 Operating expenses                     (34,818)      (33,556)      (69,933) 
 Other operating income                      333           180           601 
---------------------------         ------------  ------------  ------------ 
 Operating loss before 
  exceptional items            5         (3,467)       (3,050)       (3,405) 
 
 Exceptional items 
  Profit on sale of 
  investments                                615             -             - 
  Rebranding and 
   reorganisation costs                    (571)         (806)       (2,038) 
  Provision against loans 
   and receivables                             -         (395)         (466) 
  Other exceptional items      6               -          (45)         (477) 
 
 Operating loss                          (3,423)       (4,296)       (6,386) 
 
 Finance income                              104           129           234 
 Finance costs                             (680)         (756)       (1,598) 
 
                                         (3,999)       (4,923)       (7,750) 
 
 Share of profit/(loss) in 
  associates                                  13         (220)          (71) 
 Share of exceptional 
  losses in associate                          -             -         (623) 
 
 Loss before taxation          5         (3,986)       (5,143)       (8,444) 
 
 Income tax credit/(charge)    3              81          (42)         (393) 
 
 Loss for the period                     (3,905)       (5,185)       (8,837) 
===========================         ============  ============  ============ 
 
 Attributable to: 
 Owners of the parent                    (3,586)       (4,924)       (8,115) 
 Non-controlling interests                 (319)         (261)         (722) 
 
                                         (3,905)       (5,185)       (8,837) 
 ==========================         ============  ============  ============ 
 
 Basic loss per share (p)      7          (2.45)        (3.39)        (5.58) 
---------------------------         ------------  ------------  ------------ 
 
 Diluted loss per share (p)    7          (2.45)        (3.39)        (5.58) 
---------------------------         ------------  ------------  ------------ 
 
 * 2010 comparative figures have been restated to include share-based 
  payment charges of GBP302,000 for the 6 months ended 30 June 
  2010 and GBP517,000 for the year ended 31 December 2010, previously 
  disclosed as exceptional items, within operating expenses. This 
  restatement has a nil effect on the operating loss of the Group. 
 Turnover and operating loss all derive from 
  continuing operations. 
 
 
 Unaudited Condensed Consolidated Statement of Comprehensive 
  Income 
 
                                        Six months    Six months       Year to 
                                        to 30 June    to 30 June   31 December 
                                              2011          2010          2010 
                                       (unaudited)   (unaudited)     (audited) 
                                            GBP000        GBP000        GBP000 
------------------------------------  ------------  ------------  ------------ 
 
 Loss for the period                       (3,905)       (5,185)       (8,837) 
 
 Actuarial gains/(losses) on defined 
  benefit 
  pension scheme                             1,039       (2,235)           600 
 Foreign exchange translation 
  differences                                 (86)           (9)          (30) 
 Fair value gains on 
  available-for-sale investments net 
  of tax                                         3            39           237 
------------------------------------  ------------  ------------  ------------ 
 Other comprehensive income for the 
  period                                       956       (2,205)           807 
 
 Total comprehensive income for the 
  period                                   (2,949)       (7,390)       (8,030) 
====================================  ============  ============  ============ 
 
 Attributable to: 
 Owners of the parent                      (2,608)       (7,118)       (7,294) 
 Non-controlling interests                   (341)         (272)         (736) 
 
                                           (2,949)       (7,390)       (8,030) 
====================================  ============  ============  ============ 
 
 
 
 Unaudited Condensed Consolidated Statement of Financial Position 
 
                                           As at         As at         As at 
                                         30 June       30 June   31 December 
                                            2011          2010          2010 
                              Note   (unaudited)   (unaudited)     (audited) 
                                          GBP000        GBP000        GBP000 
 --------------------------         ------------  ------------  ------------ 
 Non-current assets 
  Goodwill                                29,552        29,552        29,552 
  Other intangible assets                    386           574           498 
  Property, plant and 
   equipment                               3,051         3,443         3,396 
  Investment in associates     8             565         1,127           653 
  Other investments                          868           941         1,128 
  Loans and receivables                    2,871         2,688         3,091 
 --------------------------         ------------  ------------  ------------ 
                                          37,293        38,325        38,318 
 --------------------------         ------------  ------------  ------------ 
 Current assets 
  Trade and other 
   receivables                            22,201        22,159        21,828 
  Current income tax assets                    -           307            22 
  Cash and cash equivalents    9             437         1,476         1,428 
 --------------------------         ------------  ------------  ------------ 
                                          22,638        23,942        23,278 
 --------------------------         ------------  ------------  ------------ 
 
 Total assets                             59,931        62,267        61,596 
---------------------------         ------------  ------------  ------------ 
 Current liabilities 
  Trade and other payables                 9,811         9,787        11,700 
  Obligations under finance 
   leases                      9             233           160           257 
  Bank overdrafts              9           1,035           767           240 
                                          11,079        10,714        12,197 
 --------------------------         ------------  ------------  ------------ 
 Non-current liabilities 
  Bank loans and other 
   loans                       9          17,697        12,695        13,951 
  Provisions                                 270             -           150 
  Obligations under finance 
   leases                                      -            88             - 
  Retirement benefit 
   obligations                             5,125         9,604         6,557 
 --------------------------         ------------  ------------  ------------ 
                                          23,092        22,387        20,658 
 --------------------------         ------------  ------------  ------------ 
 
 Total liabilities                        34,171        33,101        32,855 
---------------------------         ------------  ------------  ------------ 
 
 NET ASSETS                               25,760        29,166        28,741 
===========================         ============  ============  ============ 
 
 Capital and reserves 
  Called up share capital                  1,499         1,494         1,494 
  Deferred share capital                  22,975        22,975        22,975 
  Share premium account                      359        29,420             - 
  Share capital to be 
   issued                                      -           364           364 
  Own shares held by ESOP                (2,705)       (3,218)       (3,205) 
  Special reserve                         29,420             -        29,420 
  Translation reserve                        183           265           247 
  Other reserves                           1,798         2,046         2,208 
  Retained earnings                     (27,026)      (24,242)      (24,360) 
 
 Equity attributable to owners of 
  the parent                              26,503        29,104        29,143 
 
  Non-controlling interests                (743)            62         (402) 
 
 TOTAL EQUITY                             25,760        29,166        28,741 
===========================         ============  ============  ============ 
 
 
 Unaudited Condensed Consolidated Statement 
  of Changes in Equity 
 
                                                                                                                        Attributable 
                       Ordinary   Deferred             Shares                                                                     to          Non- 
 For the six months 
 to 30 June 2011                                                                                                              owners 
 (unaudited)              Share      Share     Share    to be      ESOP   Special   Translation      Other   Retained             of   controlling 
                                                                                                                                 the 
                        Capital    Capital   premium   issued   reserve   reserve       reserve   reserves   earnings         parent      interest     Total 
                         GBP000     GBP000    GBP000   GBP000    GBP000    GBP000        GBP000     GBP000     GBP000         GBP000        GBP000    GBP000 
--------------------  ---------  ---------  --------  -------  --------  --------  ------------  ---------  ---------  -------------  ------------  -------- 
 
 At 1 January 2011        1,494     22,975         -      364   (3,205)    29,420           247      2,208   (24,360)         29,143         (402)    28,741 
 
 Comprehensive 
 income 
 Loss for the year            -          -         -        -         -         -             -          -    (3,586)        (3,586)         (319)   (3,905) 
 
 Other comprehensive 
 income 
 Actuarial gain on 
  defined benefit 
  pension scheme              -          -         -        -         -         -             -          -      1,039          1,039             -     1,039 
 Foreign exchange 
  translation 
  differences                 -          -         -        -         -         -          (64)          -          -           (64)          (22)      (86) 
 Fair value gain on 
  available-for-sale 
  investments                 -          -         -        -         -         -             -          -          3              3             -         3 
 
 Total comprehensive 
  income for the 
  period                      -          -         -        -         -         -          (64)          -    (2,544)        (2,608)         (341)   (2,949) 
--------------------  ---------  ---------  --------  -------  --------  --------  ------------  ---------  ---------  -------------  ------------  -------- 
 
 Transactions with 
 owners 
 Share issues during 
  the year                    5          -       359    (364)         -         -             -          -          -              -             -         - 
 Share-based payment          -          -         -        -         -         -             -       (32)          -           (32)             -      (32) 
 Share options 
  exercised                   -          -         -        -       500         -             -      (378)      (122)              -             -         - 
 
 Total transactions 
  with owners                 5          -       359    (364)       500         -             -      (410)      (122)           (32)             -      (32) 
--------------------  ---------  ---------  --------  -------  --------  --------  ------------  ---------  ---------  -------------  ------------  -------- 
 
 At 30 June 2011          1,499     22,975       359        -   (2,705)    29,420           183      1,798   (27,026)         26,503         (743)    25,760 
====================  =========  =========  ========  =======  ========  ========  ============  =========  =========  =============  ============  ======== 
 
 
 
 Unaudited Condensed Consolidated Statement 
  of Changes in Equity 
 
                                                                                                              Attributable 
                       Ordinary   Deferred             Shares                                                           to          Non- 
 For the six months 
 to 30 June 2010                                           to                                                       owners 
 (unaudited)              Share      Share     Share       be      ESOP   Translation      Other   Retained             of   controlling 
                                                                                                                       the 
                        Capital    Capital   premium   issued   reserve       reserve   reserves   earnings         parent      interest     Total 
                         GBP000     GBP000    GBP000   GBP000    GBP000        GBP000     GBP000     GBP000         GBP000        GBP000    GBP000 
--------------------  ---------  ---------  --------  -------  --------  ------------  ---------  ---------  -------------  ------------  -------- 
 
 At 1 January 2010        1,486     22,975    28,992      728   (3,479)           263      1,993   (17,136)         35,822           360    36,182 
 
 Comprehensive 
 income 
 Loss for the year            -          -         -        -         -             -          -    (4,924)        (4,924)         (261)   (5,185) 
 
 Other comprehensive 
 income 
 Actuarial loss on 
  defined benefit 
  pension scheme              -          -         -        -         -             -          -    (2,235)        (2,235)             -   (2,235) 
 Foreign exchange 
  translation 
  differences                 -          -         -        -         -             2          -          -              2          (11)       (9) 
 Fair value gain on 
  available-for-sale 
  investments                 -          -         -        -         -             -          -         39             39             -        39 
--------------------  ---------  ---------  --------  -------  --------  ------------  ---------  ---------  -------------  ------------ 
 Total other 
  comprehensive 
  income                      -          -         -        -         -             2          -    (2,196)        (2,194)          (11)   (2,205) 
 
 Total comprehensive 
  income for the 
  period                      -          -         -        -         -             2          -    (7,120)        (7,118)         (272)   (7,390) 
--------------------  ---------  ---------  --------  -------  --------  ------------  ---------  ---------  -------------  ------------  -------- 
 
 Transactions with 
 owners 
 Share issues during 
  the year                    8          -       428    (364)         -             -          -          -             72             -        72 
 Share-based payment          -          -         -        -         -             -        302          -            302             -       302 
 Share options 
  exercised                   -          -         -        -       261             -      (249)       (12)              -             -         - 
                                                                                                                                          -------- 
 Total contributions 
  by and 
  distributions to 
  owners                      8          -       428    (364)       261             -         53       (12)            374             -       374 
 
 Changes in 
 ownership interests 
 in subsidiaries 
 that do not result 
 in a loss of 
 control 
 Additional 
  non-controlling 
  interest arising 
  on part disposal            -          -         -        -         -             -          -         26             26          (26)         - 
 
 Total transactions 
  with owners                 8          -       428    (364)       261             -         53         14            400          (26)       374 
--------------------  ---------  ---------  --------  -------  --------  ------------  ---------  ---------  -------------  ------------  -------- 
 
 At 30 June 2010          1,494     22,975    29,420      364   (3,218)           265      2,046   (24,242)         29,104            62    29,166 
====================  =========  =========  ========  =======  ========  ============  =========  =========  =============  ============  ======== 
 
 
 
 Unaudited Condensed Consolidated Statement of 
  Changes in Equity 
 
                                                                                                                        Attributable 
                       Ordinary   Deferred              Shares                                                                    to          Non- 
 For the year ended 
 31 December 2010                                           to                                                                owners 
 (audited)                Share      Share      Share       be      ESOP   Special   Translation     Other   Retained             of   controlling 
                                                                                                                                 the 
                        Capital    Capital    premium   issued   reserve   reserve       reserve   reserve   earnings         parent      interest     Total 
                         GBP000     GBP000     GBP000   GBP000    GBP000    GBP000        GBP000    GBP000     GBP000         GBP000        GBP000    GBP000 
--------------------  ---------  ---------  ---------  -------  --------  --------  ------------  --------  ---------  -------------  ------------  -------- 
 
 At 1 January 2010        1,486     22,975     28,992      728   (3,479)         -           263     1,993   (17,136)         35,822           360    36,182 
 
 Comprehensive 
 income 
 Loss for the year            -          -          -        -         -         -             -         -    (8,115)        (8,115)         (722)   (8,837) 
 
 Other comprehensive 
 income 
 Actuarial gain on 
  defined benefit 
  pension scheme              -          -          -        -         -         -             -         -        600            600             -       600 
 Foreign exchange 
  translation 
  differences                 -          -          -        -         -         -          (16)         -          -           (16)          (14)      (30) 
 Fair value gain on 
  available-for-sale 
  investments                 -          -          -        -         -         -             -         -        237            237             -       237 
--------------------  ---------  ---------  ---------  -------  --------  --------  ------------  --------  ---------  -------------  ------------  -------- 
 Total other 
  comprehensive 
  income                      -          -          -        -         -         -          (16)         -        837            821          (14)       807 
 
 Total comprehensive 
  income for the 
  period                      -          -          -        -         -         -          (16)         -    (7,278)        (7,294)         (736)   (8,030) 
--------------------  ---------  ---------  ---------  -------  --------  --------  ------------  --------  ---------  -------------  ------------  -------- 
 
 Transactions with 
 owners 
 Share issues during 
  the year                    8          -        428    (364)         -         -             -         -          -             72             -        72 
 Cancellation of 
  share premium 
  account                     -          -   (29,420)        -         -    29,420             -         -          -              -             -         - 
 Share-based payment          -          -          -        -         -         -             -       517          -            517             -       517 
 Share options 
  exercised                   -          -          -        -       274         -             -     (302)         28              -             -         - 
--------------------  ---------  ---------  ---------  -------  --------  --------  ------------  --------  ---------  -------------  ------------  -------- 
 Total contributions 
  by and 
  distributions to 
  owners                      8          -   (28,992)    (364)       274    29,420             -       215         28            589             -       589 
 
 Changes in 
 ownership interests 
 in subsidiaries 
 that do not result 
 in a loss of 
 control 
 Additional 
  non-controlling 
  interest arising 
  on part disposal            -          -          -        -         -         -             -         -         26             26          (26)         - 
 
 Total transactions 
  with owners                 8          -   (28,992)    (364)       274    29,420             -       215         54            615          (26)       589 
--------------------  ---------  ---------  ---------  -------  --------  --------  ------------  --------  ---------  -------------  ------------  -------- 
 
 At 31 December 2010      1,494     22,975          -      364   (3,205)    29,420           247     2,208   (24,360)         29,143         (402)    28,741 
====================  =========  =========  =========  =======  ========  ========  ============  ========  =========  =============  ============  ======== 
 
 
 
 Unaudited Condensed Consolidated Statement 
  of Cash Flows 
 
                                        Six months    Six months       Year to 
                                                           to 30 
                                        to 30 June          June   31 December 
                                              2011          2010          2010 
                                Note   (unaudited)   (unaudited)     (audited) 
                                            GBP000        GBP000        GBP000 
-----------------------------         ------------  ------------  ------------ 
 
 Cash flow from operations       10        (5,825)       (3,634)       (3,318) 
 Interest received                              85           107           190 
 Interest paid                               (311)         (597)         (639) 
 Tax received                                  111           300           261 
-----------------------------         ------------  ------------  ------------ 
 Net cash outflow from 
  operating activities                     (5,940)       (3,824)       (3,506) 
-----------------------------         ------------  ------------  ------------ 
 
 Cash flow from investing 
 activities 
 Dividends received from 
  associates                                   264           159           159 
 Purchase of property, plant 
  and equipment                              (195)         (271)         (837) 
 Purchase of intangible 
  assets                                      (46)          (95)         (200) 
 Loans repaid by/(to) 
  available-for-sale 
  investments                                  239            52         (402) 
 Proceeds from the sale of 
 available-for-sale investments                687             -             - 
 Deferred consideration paid 
  in respect of the 
  acquisition of businesses                  (505)         (505)         (505) 
 Deferred consideration paid 
  in respect of the 
  acquisition of subsidiaries 
  net of cash acquired                           -          (73)          (73) 
-----------------------------         ------------  ------------  ------------ 
 Net cash inflow/(outflow) 
  from investing activities                    444         (733)       (1,858) 
-----------------------------         ------------  ------------  ------------ 
 
 Cash flow from financing 
 activities 
 New bank loans                              3,750         3,500         4,750 
 Bank loan repayments                         (17)             -             - 
 Other loan repayments                           -          (15)          (15) 
 Finance lease repayments                     (37)          (64)          (65) 
-----------------------------         ------------  ------------  ------------ 
 Net cash inflow from 
  financing activities                       3,696         3,421         4,670 
-----------------------------         ------------  ------------  ------------ 
 
 Net decrease in cash, cash 
 equivalents 
 and bank overdrafts                       (1,800)       (1,136)         (694) 
 
 Cash, cash equivalents and 
  bank overdrafts at 
  beginning of period                        1,188         1,946         1,946 
 
 Effects of foreign exchange                    14         (101)          (64) 
 
 Cash, cash equivalents and 
  bank overdrafts at end of 
  period                         9           (598)           709         1,188 
=============================         ============  ============  ============ 
 
 Consisting of: 
 Cash in hand                                   37         1,476         1,428 
 Bank overdraft                            (1,035)         (767)         (240) 
 
                                             (598)           709         1,188 
                                      ============  ============  ============ 
 

Unaudited Condensed Notes to the Financial Statements

1. General information

The Group principally trades as property consultants Colliers International UK plc, providing a comprehensive range of agency, strategic, advisory and implementation services to property owners, investors, developers and occupiers.

The Company is a public limited company, incorporated and domiciled in England and quoted on the London Stock Exchange's AIM.

2. Basis of preparation

The condensed consolidated interim financial information for the six months ended 30 June 2011 has been prepared in accordance with IAS 34 'Interim Financial Reporting'.

This unaudited half yearly report does not constitute statutory accounts of the Group within the meaning of section 434 of the Companies Act 2006.

Statutory accounts for the year ended 31 December 2010, which were prepared in accordance with International Financial Reporting Standards (IFRS) and IFRIC interpretations adopted for use in the European Union, have been filed with the Registrar of Companies. The auditor's report on those accounts was unqualified and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

The accounting policies applied in these unaudited half yearly condensed financial statements are consistent with those that the Group used in the Annual Report for the year ended 31 December 2010 and expects to apply in its annual financial statements for the year ending 31 December 2011, which will be prepared in accordance with International Financial Reporting Standards (IFRS), and those parts of the Companies Act 2006 that remain applicable to companies reporting under IFRS.

The current economic environment remains uncertain and the group reported an operating loss for the period albeit at a lower level that in 2010. Having considered the availability of bank facilities and expected future cashflows, the Directors believe that the Company and the Group is able to manage its business risks successfully and they therefore continue to adopt the going concern basis of accounting in preparing these financial statements.

The preparation of the interim financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the application of policies and reported amounts. The estimates are based on historical experience and other factors considered relevant and are consistent with those that applied to the consolidated financial statements for the year ended 31 December 2010. Actual results may differ from these estimates.

The unaudited half yearly financial statements are presented in pounds sterling as this is the currency of the primary economic environment in which the Group operates. All values are rounded to the nearest thousand pounds (GBP'000) except where otherwise stated.

3. Taxation

The Group has accumulated losses available to carry forward against future trading profits. The taxation credit reflected in the Consolidated Income Statement relates to an over provision of tax in respect of the prior years.

No deferred tax asset has been recognised in respect of tax losses as it is uncertain that there will be sufficient short term profits available to allow all or part of the asset to be recovered.

4. Dividend

As the Company does not currently have any distributable reserves, the Directors are unable to recommend the payment of a dividend (2010: nil).

5. Segmental reporting

IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker.

Information reported to the Group's chief operating decision maker for the purposes of resource allocation and assessment of segment performance is specifically focussed on the geographical segments within the Group. The principal categories of these segments are the UK, Spain and Ireland.

Information relating to the Group's operating segments is presented below:

 
                                       Six months    Six months       Year to 
                                       to 30 June    to 30 June   31 December 
                                             2011          2010          2010 
                                      (unaudited)   (unaudited)     (audited) 
                                           GBP000        GBP000        GBP000 
-----------------------------------  ------------  ------------  ------------ 
 
 Revenue 
 United Kingdom                            29,254        28,989        62,442 
 Spain                                        889           528         1,787 
 Ireland                                      875           809         1,698 
 
 Total revenue                             31,018        30,326        65,927 
===================================  ============  ============  ============ 
 
 Revenue reported above represents revenue generated from 
  external customers. 
 
 Operating loss before exceptional 
  items 
 United Kingdom                           (2,771)       (2,291)       (2,625) 
 Spain                                      (454)         (765)         (729) 
 Ireland                                    (242)             6          (51) 
 
 Total operating loss before 
  exceptional items                       (3,467)       (3,050)       (3,405) 
===================================  ============  ============  ============ 
 
 Loss before taxation 
 United Kingdom                           (3,275)       (4,380)       (7,179) 
 Spain                                      (446)         (752)       (1,177) 
 Ireland                                    (265)          (11)          (88) 
 
 Total loss before taxation               (3,986)       (5,143)       (8,444) 
===================================  ============  ============  ============ 
 

6. Other exceptional items

 
                                      Six months    Six months       Year to 
                                      to 30 June    to 30 June   31 December 
                                            2011          2010          2010 
                                     (unaudited)   (unaudited)     (audited) 
                                                      restated      restated 
                                          GBP000        GBP000        GBP000 
----------------------------------  ------------  ------------  ------------ 
 
 Other exceptional items include: 
 Impairment of available-for-sale 
  investments                                  -          (45)          (57) 
 Commercial litigation costs                   -             -         (420) 
 
                                               -          (45)         (477) 
==================================  ============  ============  ============ 
 

7. Loss per share

 
                                       Six months    Six months       Year to 
                                       to 30 June    to 30 June   31 December 
                                             2011          2010          2010 
                                      (unaudited)   (unaudited)     (audited) 
                                           GBP000        GBP000        GBP000 
-----------------------------------  ------------  ------------  ------------ 
 
 Loss attributable to owners 
  of the parent                           (3,586)       (4,924)       (8,115) 
===================================  ============  ============  ============ 
 
                                           Number        Number        Number 
                                             '000          '000          '000 
 Weighted average number of shares 
 
 Total number of shares in issue 
  in the period                           149,648       148,864       149,137 
 less: average number of shares 
  held by 
  ESOP trust                              (3,458)       (3,809)       (3,740) 
 
 
 Weighted average number of shares 
  for 
  basic loss per share                    146,190       145,055       145,397 
 Dilutive effect of share options               -             -             - 
 
 Weighted average number of shares 
  for 
  diluted loss per share                  146,190       145,055       145,397 
===================================  ============  ============  ============ 
 
 Basic loss per share (p)                  (2.45)        (3.39)        (5.58) 
===================================  ============  ============  ============ 
 Diluted loss per share (p)                (2.45)        (3.39)        (5.58) 
===================================  ============  ============  ============ 
 

8. Investment in associates

On the 10 June 2011 the Group disposed of its 23.59% interest in Paladin Group Limited for GBP687,000. The profit on the disposal of the investment was GBP615,000 which has been disclosed as an exceptional item (note 6). A potential further deferred payment of up to GBP310,000 is receivable dependant on the performance of Paladin in its year ended 31 March 2012.

9. Analysis of changes in net debt

 
                              1 January                Non cash    30 June 
                                   2011   Cash flow   movements       2011 
                                 GBP000      GBP000      GBP000     GBP000 
---------------------------  ----------  ----------  ----------  --------- 
 
 Cash at bank and in hand         1,428     (1,021)          30        437 
 Bank overdraft                   (240)       (778)        (17)    (1,035) 
 
                                  1,188     (1,799)          13      (598) 
 
 Bank loans due after more 
  than one year                (13,951)     (3,733)        (13)   (17,697) 
 Finance leases due within 
  one year                        (257)          37        (13)      (233) 
 
                               (13,020)     (5,495)        (13)   (18,528) 
===========================  ==========  ==========  ==========  ========= 
 

10. Cash flow used in operating activities

 
                                        Six months    Six months       Year to 
                                        to 30 June    to 30 June   31 December 
                                              2011          2010          2010 
                                       (unaudited)   (unaudited)     (audited) 
                                            GBP000        GBP000        GBP000 
------------------------------------  ------------  ------------  ------------ 
 
 Loss before taxation                      (3,986)       (5,143)       (8,444) 
 Adjustments for: 
 Finance costs                                 680           756         1,598 
 Finance income                              (104)         (129)         (234) 
 Share of (profit)/loss in 
  associates                                  (13)           220            71 
 Share of exceptional losses 
  in associate                                   -             -           623 
 Profit on sale of investments               (615)             -             - 
 Impairment of available-for-sale 
  investments                                   29            45            57 
 Provision against loans and 
  receivables                                    -           395           466 
 Share based payment (credit)/charge          (32)           302           517 
 Depreciation of plant, property 
  and equipment                                563           583         1,227 
 Amortisation of intangible assets             154           179           360 
 Pension costs                               (479)         (409)         (862) 
 
 
 Operating cash flows before 
  movement in working capital              (3,803)       (3,201)       (4,621) 
 
 Increase in receivables                     (599)         (861)         (633) 
 (Decrease)/increase in payables           (1,423)           428         1,936 
 
 Cash outflow from operations              (5,825)       (3,634)       (3,318) 
====================================  ============  ============  ============ 
 

11. Approval of the half-year unaudited condensed consolidated financial statements

These half year unaudited condensed consolidated financial statements were approved and authorised for issue by the Board of Directors on 29 September 2011.

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR PGUBWBUPGGQB

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