PLUS Markets Group plc reports its interim results for the six months ended 30
June 2007.
HIGHLIGHTS
* Revenue at GBP1.68 million (2006 - GBP0.93 million), up 80% on the same
period last year, with loss of GBP0.80 million (2006 - GBP0.81million);
* Completion of Placing to raise GBP25 million, reflected in significantly
increased net assets, being invested to deliver the Company's broadened
competitive ambitions;
* Contract secured with OMX for delivery of new trading and surveillance
technology for the implementation of the Markets in Financial Instruments
Directive ("MiFID") in November 2007 and to support extended trading
offering in EU liquid shares; and
* Application to the Financial Services Authority ("FSA") to become a
Recognised Investment Exchange ("RIE"), which was granted shortly after
the period end.
Commenting on the results, Simon Brickles, Chief Executive Officer of the
Company said:
"Following the Company's successful placing in January, we have been investing
to build the foundations necessary to launch a wider challenge to the
traditional exchange monopoly. We have strengthened our management team and
concluded a significant technology contract with OMX for the delivery of a
world-class trading and surveillance platform by MiFID. We also submitted our
application to the Financial Services Authority for Recognised Investment
Exchange status, which we were delighted to receive shortly after the period
end. Important progress has been made towards our becoming a fully competitive
stock exchange for London and the wider European markets".
Enquiries to:
Brian Taylor / Nemone Wynn-Evans 020 7553 2000
PLUS Markets Group plc
John Parry 020 7490 8062
Rostron Parry (PR Enquiries)
Nick Westlake 020 7260 1000
Charles Farquhar
Numis Securities Ltd (Nominated Advisor)
CHAIRMAN'S STATEMENT
The first six months of 2007 have been another extremely busy period for PLUS
Markets Group. We have made important progress following our GBP25 million
Placing, which completed in January, delivering on a number of key milestones
in relation to our wider business plans as laid out at that time. The
Company's interim results for the half year to 30 June 2007 are entirely in
line with expectations and reflect the increased level of investment in our
expanding business model.
During the period, we strengthened our management team significantly,
commencing with the appointment of Brian Taylor as our Chief Financial Officer
following the EGM on 8 January. We have now been joined by a new Head of
Information Technology John Crackett, Director of Regulation Peter Jackson,
Head of Trading Services Stuart Rutherford and Head of Company Services Paul
Haddock, bringing us the additional skills we need to develop and promote our
wider stock exchange offering. Our Board has also welcomed two new Non-
executive Directors, Ian Salter and Giles Vardey.
We announced on 30 April that we have entered into an agreement with OMX
Technology Ltd, a subsidiary of OMX AB ("OMX"), under which OMX will provide
trading, surveillance and facilities management technology services to our
Company. This will support the expansion of our trading services, including
widening our stock coverage into EU liquid shares, through a highly scalable
trading platform, combined with an integrated real time market surveillance
solution. Our integration exercise with key participants is progressing well,
with a view to launching our enlarged trading offering in time for the
implementation of MiFID on 1 November 2007. The total value of the contract is
GBP6.7million, to be paid out of the proceeds of the Placing and expected
future cash flows. There is a severance charge of GBP0.5 million at the end of
three years if the Company does not continue the contract for a further two
years.
We are also seeking to widen our stock coverage in less-liquid small and mid-
cap shares and the prospect of our providing competitive trading services for
all AIM companies has become a step closer. We welcomed a statement by HM
Treasury on 20 February which instigated a review by the Financial Services
Authority ("FSA") about whether to liberalise the trade reporting regime in
relation to unlisted shares, and an FSA discussion paper was released on this
subject a few days after the period end. We believe there is clear market
demand for a wider range of trading services for AIM securities. In the over
60 AIM securities now dual-traded on PLUS, consistently 40% of trading activity
consistently takes place on PLUS defying the old adage that liquidity does not
move.
During the period, we submitted our application to the Financial Services
Authority to become a Recognised Investment Exchange. On 19 July, shortly
after the period end, we were pleased to confirm that our operating subsidiary,
PLUS Markets plc, had been granted this status, elevating our market to a fully
competitive UK-based stock exchange. This was followed by confirmation on the
same day that our new "PLUS-listed" market, an EU Regulated Market for listed
securities, had been designated by HM Revenue & Customs as a Recognised Stock
Exchange. I am pleased to confirm that we have now opened this market, to
serve the needs of issuers seeking full access to the deep pools of capital in
London via an Admission to Trading on an RIE, in conjunction with an Official
Listing by the FSA. This will bring an additional source of revenue to our
Company Services offering, alongside our PLUS-quoted market for quality small
and mid-cap companies.
Revenues of GBP1.68 million (2006 - GBP0.93 million), up 80% on the same period
last year, reflects the additional sales generated from providing Trading
Services and Market Data Services in our secondary market, following the
extension of our business model in 2006 into trading small and mid-cap
companies. During the period, over 400,000 bargains, worth nearly GBP2.5
billion, representing over 4 billion shares, took place on our trading
platform. In our primary market, 29 companies joined our PLUS-quoted market
and this segment now exceeds 200 out of 1,000 securities trading on PLUS today.
The operating loss of GBP1.47million (2006 - GBP0.88million) reflects our
increased cost base, as we invest in our trading and surveillance capacity and
expand our operations in line with our proposals as laid out at the time of the
Placing. As the Company made clear in its last annual report and in other
announcements, these costs precede any additional revenue and it is not
anticipated that the Company will become profitable in the current year.
However, this investment will greatly improve the capacity to generate profit
in future years.
These are exciting times for the Company as we focus on the substantial
extension of our trading offering in time for MiFID, to support trading in over
7,500 securities wherein we will achieve full UK equity stock coverage and EU
liquid shares. We have also recently published a new tariff framework to take
effect on 1 November, which relates to our Trading Services and Market Data
Services. This will provide the market with a truly innovative method of
charging, removing many old cross subsidies prevalent in the market. The tariff
principles will enhance the quality of the PLUS market while placing greater
emphasis on deriving revenues from the sale of our proprietary market data.
Your Company continues to evolve at a rapid pace towards its ambition to become
a fully competitive stock exchange for London.
STEPHEN HAZELL-SMITH
CHAIRMAN
21 September, 2007
CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2007
Note SIX MONTHS SIX MONTHS YEAR
ENDED 30 ENDED 30 ENDED 31
JUNE 2007 JUNE 2006 DECEMBER
UNAUDITED UNAUDITED 2006
GBP'000 GBP'000 UNAUDITED
GBP'000
Revenue 1,675 929 2,169
Administrative expenses
Operating expenses 2 (2,931) (1,709) (3,429)
Charge in relation to share based (214) (53) (106)
payments
-----------------------------------------------------------------------------
Operating loss (1,470) (833) (1,366)
Finance income 668 67 121
-----------------------------------------------------------------------------
LOSS ON ORDINARY ACTIVITIES BEFORE (802) (766) (1,245)
TAXATION
Taxation - - -
-----------------------------------------------------------------------------
LOSS FOR THE PERIOD ATTRIBUTABLE TO (802) (766) (1,245)
EQUITY HOLDERS OF THE PARENT
-----------------------------------------------------------------------------
Loss per share
Basic and diluted (0.26) (0.57) (0.92)
-----------------------------------------------------------------------------
The above all derive from continuing
operations.
CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2007
Note AS AT 30 AS AT 30 AS AT 31
JUNE 2007 JUNE 2006 DECEMBER 2006
UNAUDITED UNAUDITED UNAUDITED
GBP'000 GBP'000 GBP'000
NON-CURRENT ASSETS
Intangible fixed assets 2,774 720 642
Tangible fixed assets 97 173 108
Available-for-sale investments 1 1 1
-----------------------------------------------------------------------------
2,872 894 751
CURRENT ASSETS
Trade and other receivables 715 519 1,591
Cash and cash equivalents 25,060 2,705 2,348
-----------------------------------------------------------------------------
25,775 3,224 3,939
TOTAL ASSETS 28,647 4,118 4,690
CURRENT LIABILITIES
Trade and other payables (1,824) (363) (509)
Deferred income (923) (752) (1,595)
-----------------------------------------------------------------------------
(2,747) (1,115) (2,104)
NET CURRENT ASSETS 23,078 2,144 1,878
-----------------------------------------------------------------------------
NET ASSETS 25,900 3,003 2,586
-----------------------------------------------------------------------------
EQUITY
Share capital 15,694 6,729 6,731
Share premium account 16,463 1,517 1,524
Retained deficit (6,257) (5,243) (5,669)
-----------------------------------------------------------------------------
EQUITY ATTRIBUTABLE TO EQUITY 25,900 3,003 2,586
HOLDERS OF THE PARENT
-----------------------------------------------------------------------------
These financial statements were approved by the Board of Directors and
authorised for issue on 21 September 2007.
Signed on behalf of the Board of Directors
STEPHEN HAZELL-SMITH
CHAIRMAN
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2007
SIX MONTHS SIX MONTHS YEAR
ENDED 30 ENDED 30 ENDED 31
JUNE 2007 JUNE 2006 DECEMBER 2006
UNAUDITED UNAUDITED UNAUDITED
GBP'000 GBP'000 GBP'000
LOSS FOR THE (802) (766) (1,245)
PERIOD
Adjustments for:
Finance income (668) (67) (121)
Depreciation of 120 139 282
property, plant
and equipment
Share-based 214 53 106
payment expense
-------------------------------------------------------------------------------
Operating cash (1,136) (641) (978)
flows before
movements in
working capital
Decrease / 876 83 (1,017)
(increase) in
trade and other
receivabes
Increase / 643 (174) 843
(decrease) in
trade and other
payables
-------------------------------------------------------------------------------
NET CASH 383 (732) (1,152)
INFLOW/(OUTFLOW)
FROM OPERATING
ACTIVITIES ("A")
-------------------------------------------------------------------------------
Investing
activities
Interest received 668 67 121
Investment in (258) - -
intangible fixed
asset
Purchase of (1,983) (90) (90)
property, plant
and equipment
-------------------------------------------------------------------------------
NET CASH (USED (1,573) (23) 31
IN) / GENERATED
BY INVESTING
ACTIVITIES ("B")
-------------------------------------------------------------------------------
FINANCING
ACTIVITIES
Net proceeds from 23,902 11 20
issue of equity
shares
-------------------------------------------------------------------------------
NET CASH 23,902 11 20
GENERATED BY
FINANCING
ACTIVITIES ("C")
-------------------------------------------------------------------------------
NET INCREASE / 22,712 (744) (1,101)
(DECREASE) IN
CASH AND CASH
EQUIVALENTS
("A"+"B"+"C")
CASH AND CASH 2,348 3,449 3,449
EQUIVALENTS AT
BEGINNING OF
PERIOD
-------------------------------------------------------------------------------
CASH AND CASH 25,060 2,705 2,348
EQUIVALENTS AT
END OF PERIOD
-------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
UNAUDITED FOR THE SIX MONTHS ENDED 30 JUNE 2006, YEAR ENDED 31 DECEMBER 2006
AND SIX MONTHS ENDED 30 JUNE 2007
SHARE SHARE PREMIUM RETAINED EARNINGS TOTAL
CAPITAL GBP GBP
GBP GBP
Attributable to equity 6,727 1,508 (4,530) 3,705
holders of the parent at 1
January 2006
Shares issued 2 9 - 11
Credit arising on share - - 53 53
options
Loss for the half year - - (766) (766)
-------------------------------------------------------------------------------
ATTRIBUTABLE TO EQUITY 6,729 1,517 (5,243) 3,003
HOLDERS OF THE PARENT AT 30
JUNE 2006
-------------------------------------------------------------------------------
Attributable to equity 6,727 1,508 (4,530) 3,705
holders of the parent at 1
January 2006
Shares issued 4 16 - 20
Credit arising on share - - 106 106
options
Loss for the year - - (1,245) (1,245)
-------------------------------------------------------------------------------
ATTRIBUTABLE TO EQUITY 6,731 1,524 (5,669) 2,586
HOLDERS OF THE PARENT AT 31
DECEMBER 2006
-------------------------------------------------------------------------------
Attributable to equity 6,731 1,524 (5,669) 2,586
holders of the parent at 1
January 2007
Shares issued 8,963 16,088 - 25,051
Share admission expenses - (1,149) - (1,149)
Credit arising on share - - 214 214
options
Loss for the half year - - (802) (802)
-------------------------------------------------------------------------------
ATTRIBUTABLE TO EQUITY 15,694 16,463 (6,257) 25,900
HOLDERS OF THE PARENT AT 30
JUNE 2007
-------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2007
1 ACCOUNTING POLICIES
GENERAL INFORMATION
PLUS Markets Group plc ("the Company") is a company incorporated in the United
Kingdom under the Companies Act 1985. The Company's principal activity is that
of a holding company, owning 100% of PLUS Markets plc, which is engaged in the
operation of the PLUS market and is authorised and regulated by the Financial
Services Authority. These financial statements are presented in Pounds Sterling
being the currency of the primary economic environment in which the group
operates.
BASIS OF ACCOUNTING
The consolidated financial information contained within these financial
statements, which are unaudited, has been prepared in accordance with
accounting policies which will be adopted in presenting the full year annual
report and accounts. The full year annual report and accounts will be prepared
for the first time in accordance with International Financial Reporting
Standards ("IFRS") as adopted by the European Union.
The financial information contained in this interim report does not constitute
the Company's statutory accounts within the meaning of section 240 of the
Companies Act 1985. The comparative information contained in this report for
the year ended 31 December 2006 does not constitute the statutory accounts for
that financial period. Those accounts (which were prepared under UK Generally
Accepted Accounting Practice) have been reported on by the company's auditors,
Deloitte & Touche LLP, and delivered to the Registrar of Companies. The report
of the auditors was unqualified and did not contain a statement under section
237 (2) or (3) of the Companies Act 1985.
The Group has applied IFRS as adopted by the EU for the six month period ended
30 June 2007, with comparative figures for the six month period ended 30 June
2006 also presented under IFRS as adopted by the EU.
The financial statements are prepared under the historical cost convention,
with the exception of investments which have been fair valued under IAS 39.
The preparation of financial statements in conformity with generally accepted
accounting principles requires the use of estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Although these estimates are based on management's best
knowledge of the amount, event or actions, actual results ultimately may differ
from those of estimates.
NEW ACCOUNTING STANDARDS AND INTERPRETATIONS
At the date of authorisation of this Consolidated Additional Financial
Information, the following accounting standards and interpretations relevant to
the Group's operations were in issue but not yet mandatory:
IFRS 7 - Financial instruments: Disclosures; and the related amendment to IAS1
on capital disclosures.
The directors anticipate that the adoption of this standard in future periods
will have no material impact on the financial statements of the Group except
for additional disclosures on capital and financial instruments when the
standard comes into effect (for periods commencing on or after 1 January 2007).
Amendment to International Accounting Standards ("IAS") 1 'Presentation of
Financial Statements' on capital disclosures. This was issued by the
International Accounting Standards Board ('IASB') in August 2005 for
application in accounting periods beginning on or after 1 January 2007. This
amendment will be adopted by the Group for year ending 31 December 2007
IFRS 8 Operating Segments. This was issued by the IASB in November 2006 for
application in accounting periods beginning on or after 1 January 2009; early
application is permitted. This accounting standard will be adopted by the
Group following its adoption by the EU.
BASIS OF CONSOLIDATION
The consolidated financial statements incorporate the financial statements of
the company and entities controlled by the company (its subsidiaries) made up
to the reporting date. Control is achieved where the company has the power to
govern the financial and operating policies of an investee entity so as to
obtain benefits from its activities.
All intra-group transactions, balances, income and expenses are eliminated on
consolidation.
FINANCIAL INSTRUMENTS
AVAILABLE-FOR-SALE INVESTMENTS
Investments designated as available-for-sale are initially measured at cost.
At subsequent reporting dates they are measured at fair value, with gains and
losses arising from changes in fair value being recognised directly in equity.
TRADE AND OTHER RECEIVABLES
Trade debtors are measured at fair value which is the invoice value less any
provisions for bad debts.
All other debtors are measured at amortised cost. Appropriate allowance for
estimated irrecoverable amounts is recognised in the income statement when
there is objective evidence that the asset is impaired. The allowance
recognised is measured as the difference between the asset's carrying amount
and the present value of estimated future cash flows discounted at the
effective interest rate computed at initial recognition.
TRADE AND OTHER PAYABLES
Trade and other payables are measured at fair value which is the invoice value.
EQUITY INSTRUMENTS
Equity instruments issued by the Company are recorded at the proceeds
receivable, net of direct issue costs.
FINANCIAL LIABILITIES AND EQUITY
Financial liabilities and equity instruments are classified according to the
substance of the contractual arrangements entered into. An equity instrument
is any contract that evidences a residual interest in the assets of the Group
after deducting all of its liabilities.
FOREIGN CURRENCIES
Transactions in foreign currencies are recorded at the rates of exchange at the
dates of the transactions. Monetary assets and liabilities denominated in
foreign currencies at the balance sheet date are reported at the rates of
exchange prevailing at that date. Gains and losses arising during the period
on transactions denominated in foreign currencies are treated as normal items
of income and expenditure in the income statement.
INTANGIBLE FIXED ASSETS
The right to operate the PLUS market is valued at its cost of acquisition less
provision for any impairment.
The Group's status as a Recognised Investment Exchange (RIE) is valued at the
cost of the application to the Financial Services Authority plus the legal and
other costs associated with preparing and presenting the application less any
provision for any impairment.
Both the PLUS market and RIE status are considered to have an infinite life and
therefore no amortisation is provided.
Costs relating to the development, installation and testing of the Company's
trading platforms have been capitalized. They will be amortised over a three
year period from the date of the launch of the platform.
On an annual basis, the Company carries out an impairment testing of its
intangible assets by comparing their recoverable amounts with their carrying
amounts.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are stated at cost, net of depreciation and any
provision for impairment. Depreciation is provided at rates calculated to
write off the cost, less estimated residual value, of each asset evenly over
its estimated useful life as follows:
Office equipment Three Years
Furniture and fittings Three Years
IT equipment: Three Years
The carrying values of property, plant and equipment are subject to annual
review and any impairment is charged to the income statement.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash on hand and demand deposits, and other
short-term highly liquid investments that are readily convertible to a known
amount of cash and are subject to an insignificant risk of changes in value.
DEFERRED TAXATION
Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable
profit, and is accounted for using the balance sheet liability method.
Deferred tax liabilities are generally recognised for all taxable temporary
differences and deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which deductible
temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at each balance sheet
date and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be
recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset is realised. Deferred tax is
charged or credited in the income statement, except when it relates to items
charged or credited directly to equity, in which case the deferred tax is also
dealt with in equity.
REVENUE RECOGNITION
Revenue is measured at the fair value of the consideration received or
receivable and represents amounts receivable for services provided in the
normal course of business, net of discounts, VAT and other sales related taxes.
Revenue comprises amounts derived from the provision of services which fall
within the Company's ordinary activities after deduction of value added tax,
all of which arise in one business segment and one geographical region, the
United Kingdom. The turnover and pre-tax loss are attributable to the operation
of the PLUS market. Deferred income arises on annual issuer and membership fees
of the market and the trading service that are invoiced in advance of the
service being provided.
Finance income is recognised at the effective interest rate applicable, which
is the rate that discounts estimated future cash receipts through the expected
life of the financial asset to that asset's net carrying amount.
SHARE BASED PAYMENTS
In accordance with IFRS 1, the Company has adopted IFRS 2 and applied it to
share options and equity instruments granted after 7 November 2002 that have
not vested by 30 June 2007. IFRS 2 requires the recognition of share-based
payments to employees at fair value at the date of grant.
The Company issues equity-settled share-based payments to certain employees.
Equity-settled share-based payments are measured at fair value (excluding the
effect of non market-based vesting conditions) at the date of grant. The fair
value determined at the grant date of the equity-settled share-based payments
is expensed over the vesting period, based on the Company's estimate of shares
that will eventually vest and adjusted for the effect of non market-based
vesting conditions. Fair value is measured by use of the QCA-IRS Option
Valuer(TM) (based on the Black-Scholes-Merton model). The expected life used
in the model has been adjusted, based on management's best estimate, for the
effects of non-transferability, exercise restrictions, and behavioural
considerations.
OPERATING LEASES
Rentals payable under operating leases are charged to income on a straight-line
basis over the term of the relevant lease.
CRITICAL ACCOUNTING JUDGEMENT AND KEY SOURCES OF ESTIMATION UNCERTAINTY
EQUITY-SETTLED SHARE-BASED PAYMENTS
The fair value of share based payments is calculated by reference to a Black-
Scholes-Merton model. Inputs into the model are based on management's best
estimates of appropriate volatility, discount rate and share price growth.
2 OPERATING EXPENSES
Other operating charges for the first half of 2007 included one off costs of
GBP101,000 being the compensation for loss of office for the previous Chief
Financial Officer, Darren Francis. In the first half of 2006 one-off costs
comprised rebranding costs of GBP37,000 and legal costs of GBP96,000.
3 POST BALANCE SHEET EVENTS
RECOGNISED INVESTMENT EXCHANGE STATUS
On 19 July 2007, the Financial Services Authority granted PLUS Markets plc
("PLUS") Recognised Investment Exchange (RIE) status, conferring on it exactly
the same rights and privileges as London Stock Exchange plc and other European
Market Operators. On 23 July 2007, PLUS was also granted Recognised Stock
Exchange status.
4 EXPLANATION OF TRANSITION TO IFRS
[A] RESTATEMENT OF GROUP FINANCIAL STATEMENTS ON ADOPTION OF IFRS
This is the first period for which the Group has presented its financial
statements under IFRS, as adopted for use in the European Union. The
following disclosures are required in the period of transition. The last
financial statements prepared under UK GAAP were for the year ended 31
December 2006 and the date of transition to IFRSs was therefore 1 January
2006.
[B] RECONCILIATION OF EQUITY AT 1 JANUARY 2006.
At the date of transition, the difference between the Company's balance sheet
under UK GAAP and IFRS was a reduction of GBP28,000 due to the amortisation
of the rent free period against the full life excluding the break period.
[C] INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2006 - EFFECT OF IAS
1 "PRESENTATION OF FINANCIAL STATEMENT" ON UK GAAP BALANCES
UK GAAP NOTE UK GAAP EFFECT OF IFRSS IFRS BALANCES IN IFRS FORMAT
BALANCES IN GBP'000s TRANSITION GBP'000s
UK GAAP TO IFRSS
FORMAT GBP'000s
TURNOVER 929 - 929 REVENUE
Staff costs (736) - (736) Administrative expenses
Share based 1 (96) 43 (53) Charge in relation of share
payments based payments
Other 2 (966) (7) (973) Other operating expenses
operating
charges
-------------------------------------------------------------------------------
(1,798) 36 (1,762)
OPERATING (869) 36 (833) OPERATING LOSS
LOSS
Interest 67 - 67 Finance income
receivable
-------------------------------------------------------------------------------
LOSS ON (802) 36 (766) LOSS ON ORDINARY ACTIVITIES
ORDINARY BEFORE TAXATION
ACTIVITIES
Tax on loss - - - Taxation
on ordinary
activities
-------------------------------------------------------------------------------
RETAINED (802) 36 (766) LOSS FOR THE PERIOD
LOSS FOR ATTRIBUTABLE TO EQUITY HOLDERS
THE PERIOD OF THE PARENT
-------------------------------------------------------------------------------
Equity holders of the parent
Loss per Loss per share
share
Basic and (0.60) 0.03 (0.57) Basic
diluted
Notes
1 Revision of share based payment calculation
2 Amortisation of the rent free period against the full life
of the lease, rather than the period up to the first break.
[D] INCOME STATEMENT FOR THE TWELVE MONTHS ENDED 31 DECEMBER 2006 - EFFECT
OF IAS 1 "PRESENTATION OF FINANCIAL STATEMENT" ON UK GAAP BALANCES
UK GAAP NOTE UK GAAP EFFECT OF IFRSS IFRS BALANCES IN IFRS FORMAT
BALANCES IN GBP'000s TRANSITION GBP'000s
UK GAAP TO IFRSS
FORMAT GBP'000s
TURNOVER 2,169 - 2,169 REVENUE
Share based 1 (209) 103 (106) Charge in relation of share
payments based payments
Other 2 (3,414) (15) (3,429) Other operating expenses
operating
charges
-------------------------------------------------------------------------------
(3,623) 88 (3,535)
OPERATING (1,454) 88 (1,366) OPERATING LOSS
LOSS
Interest 121 - 121 Finance income
receivable
-------------------------------------------------------------------------------
LOSS ON (1,333) 88 (1,245) LOSS ON ORDINARY ACTIVITIES
ORDINARY BEFORE TAXATION
ACTIVITIES
Tax on loss Taxation
on ordinary
activities
-------------------------------------------------------------------------------
RETAINED (1,333) 88 (1,245) LOSS FOR THE PERIOD
LOSS FOR ATTRIBUTABLE TO EQUITY HOLDERS
THE PERIOD OF THE PARENT
-------------------------------------------------------------------------------
Equity holders of the parent
Loss per Loss per share
share
Basic and (0.99) 0.07 (0.92) Basic
diluted
Notes
1 Revision of share based payment calculation
2 Amortisation of the rent free period against the full life
of the lease, rather than the period up to the first break.
[E] BALANCE SHEET AS AT 30 JUNE 2006 - EFFECT OF IAS 1 "PRESENTATION OF
FINANCIAL STATEMENTS" ON UK GAAP BALANCES
UK GAAP BALANCES NOTE UK GAAP EFFECT OF IFRSS IFRS BALANCES IN IFRS
IN UK GAAP FORMAT GBP'000s TRANSITION GBP'000s FORMAT
TO IFRSS
GBP'000s
FIXED ASSETS NON-CURRENT ASSETS
Intangible - 1 500 220 720 Intangible assets
Intellectual
Property Rights
Tangible 1 393 (220) 173 Property, plant and
equipment
Investments 1 - 1 Available-for-sale
investments
-------------------------------------------------------------------------------
894 - 894
CURRENT ASSETS CURRENT ASSETS
Debtors and 519 - 519 Trade and other
prepayments receivables
Cash at bank and 2,705 - 2,705 Cash and cash
in hand equivalents
-------------------------------------------------------------------------------
3,224 - 3,224
CREDITORS: AMOUNTS CURRENT LIABILITIES
FALLING DUE WITHIN
ONE YEAR
Creditors and 2 (328) (35) (363) Trade and other
accruals payables
Deferred income (752) - (752) Deferred income
-------------------------------------------------------------------------------
(1,080) - (1,115)
-------------------------------------------------------------------------------
NET CURRENT ASSETS 2,144 - 2,109 NET CURRENT ASSETS
-------------------------------------------------------------------------------
NET ASSETS 3,038 - 3,003 NET ASSETS
-------------------------------------------------------------------------------
CAPITAL AND EQUITY
RESERVES
Called up share 6,729 - 6,729 Share capital
capital
Share premium 1,517 - 1,517 Share premium account
Profit & loss 2 (5,208) (35) (5,243) Retained earnings
account
-------------------------------------------------------------------------------
EQUITY 3,038 - 3,003 EQUITY ATTRIBUTABLE TO
SHAREHOLDERS FUNDS EQUITY HOLDERS OF THE
PARENT
-------------------------------------------------------------------------------
Notes
1 Reclassification of trading platform development from
tangibles to intangibles
2 Amortisation of the rent free period against the full
life of the lease, rather than the period up to the
first break.
[F] BALANCE SHEET AS AT 31 DECEMBER 2006 - EFFECT OF IAS 1 "PRESENTATION OF
FINANCIAL STATEMENTS" ON UK GAAP BALANCES
UK GAAP BALANCES NOTE UK GAAP EFFECT OF IFRSS IFRS BALANCES IN IFRS
IN UK GAAP FORMAT GBP'000s TRANSITION GBP'000s FORMAT
TO IFRSS
GBP'000s
FIXED ASSETS NON-CURRENT ASSETS
Intangible - 1 500 142 642 Intangible assets
Intellectual
Property Rights
Tangible 1 250 (142) 108 Property, plant and
equipment
Investments 1 - 1 Available-for-sale
investments
-------------------------------------------------------------------------------
751 - 751
CURRENT ASSETS CURRENT ASSETS
Debtors and 1,591 - 1,591 Trade and other
prepayments receivables
Cash at bank and 2,348 - 2,348 Cash and cash
in hand equivalents
-------------------------------------------------------------------------------
3,939 - 3,939
CREDITORS: AMOUNTS CURRENT LIABILITIES
FALLING DUE WITHIN
ONE YEAR
Creditors and 2 (466) (43) (509) Trade and other
accruals payables
Deferred income (1,595) - (1,595) Deferred income
-------------------------------------------------------------------------------
(2,061) - (2,104)
-------------------------------------------------------------------------------
NET CURRENT ASSETS 1,878 - 1,835 NET CURRENT ASSETS
-------------------------------------------------------------------------------
NET ASSETS 2,629 - 2,586 NET ASSETS
-------------------------------------------------------------------------------
CAPITAL AND EQUITY
RESERVES
Called up share 6,731 - 6,731 Share capital
capital
Share premium 1,524 - 1,524 Share premium account
Profit & loss 2 (5,626) (43) (5,669) Retained earnings
account
-------------------------------------------------------------------------------
EQUITY 2,629 - 2,586 EQUITY ATTRIBUTABLE TO
SHAREHOLDERS FUNDS EQUITY HOLDERS OF THE
PARENT
-------------------------------------------------------------------------------
Notes
1 Reclassification of trading platform development from
tangibles to intangibles
2 Amortisation of the rent free period against the full
life of the lease, rather than the period up to the
first break.
[G] RESTATEMENT OF CONSOLIDATED CASH FLOW STATEMENT ON ADOPTION OF IFRS
The presentation of the cash flow statement as specified by IAS 7 differs from
UK GAAP requirements. A number of items have been reclassified, but there is no
impact on cash flows. There is no change to the level of Cash and cash
equivalents at either the start or end of the year.
INDEPENDENT REVIEW REPORT TO PLUS MARKETS GROUP PLC
INTRODUCTION
We have been instructed by the Company to review the financial information for
the six months ended 30 June 2007 which comprises the Consolidated income
statement, the Consolidated balance sheet, the Consolidated cash flow
statement, the Consolidated statement of changes in equity and related notes 1
to 4. 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.
This report is made solely to the Company, in accordance with Bulletin 1999/4
issued by the Auditing Practices Board. Our work has been undertaken so that
we might state to the Company those matters we are required to state to them in
an independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other
than the Company, for our review work, for this report, or for the conclusions
we have formed.
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 also responsible for ensuring that the accounting policies and presentation
applied to the interim figures are consistent with those applied in preparing
the preceding annual accounts except where any changes, and the reasons for
them, are disclosed.
FIRST-TIME ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS
As disclosed in note 1, the next annual financial statements of the Group will
be prepared in accordance with International Financial Reporting Standards as
adopted for use in the EU. Accordingly, the interim report has been prepared
in accordance with the recognition and measurement criteria of IFRS and the
disclosure requirements of the Listing Rules that would be applicable if the
company were admitted to the Official List.
REVIEW WORK PERFORMED
We conducted our review in accordance with the 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 group 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. 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 (UK and
Ireland) 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.
DELOITTE & TOUCHE LLP
CHARTERED ACCOUNTANTS
London, United Kingdom
21st September, 2007
FTSE Mondo Visione Exchanges Index:
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PLUS Markets Group Plc - Interim Results: Interim Statement For The Six Months From 1 January To 30 June 2007
Date 21/09/2007
