Bristol & West PLC
16 November 2006
BRISTOL & WEST GROUP RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2006
Commentary
The branch network of Bristol & West plc was sold in September 2005, accordingly
the results have been split between 'continuing' and 'discontinued' operations.
The latter element shown in the period ending 30 September 2005 represents the
gain on disposal of the business and its operating result up to the date of
disposal.
The continuing operations of the Bristol and West Group (the 'Group') have seen
very strong growth in profit before taxation of 38% for the six months ended 30
September 2006 compared to the equivalent period last year. Following the sale
described above, continuing operations now primarily represent residential
mortgage lending.
The main driver of the increase in profit before taxation has been the strength
of residential mortgage lending, where the book has grown by 15% from its
September 2005 level. This increase has been associated in particular with
growth in the specialised categories of buy-to-let and self-certified lending,
which has driven net interest income ahead of the levels achieved at September
2005.
The overall result for the period has benefited from a reduced operating cost
base compared with last year, as a consequence of successful cost reduction
programmes. The continuation of low levels of impairment charge on loans and
advances which reflects the high quality of the loan book has also been a
feature of this period's performance.
Unaudited Unaudited
6 months to 6 months to
30/09/06 30/09/05
£m £m
Continuing operations
Interest and similar income 645.5 454.9
Interest expense and similar charges (548.0) (362.1)
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Net interest income 97.5 92.8
Fee and commission income 5.3 5.4
Fee and commission expense (0.1) (0.4)
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Net fee and commission income 5.2 5.0
Net trading income 1.8 (2.9)
Other operating income 2.7 5.6
Impairment losses on loans and advances 0.1 (0.1)
Operating expenses (53.9) (61.8)
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Profit before taxation from continuing
operations 53.4 38.6
Taxation (14.8) (11.3)
---------- ---------
Profit for the period from continuing
operations 38.6 27.3
Discontinued operations
Result for the period from discontinued
operations - 125.3
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Profit for the period attributable to
equity shareholders 38.6 152.6
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Earnings per share expressed in pence per
share
- Basic 6.3p 24.9p
- Diluted 5.5p 21.8p
Earnings per share from continuing
operations
- Basic 6.3p 4.5p
- Diluted 5.5p 3.9p
--------------------------------- ---------- ---------
BRISTOL & WEST GROUP BALANCE SHEET AS AT 30 SEPTEMBER 2006
Unaudited Unaudited
30/09/06 30/09/05
£m £m
Assets
Cash and balances with central banks - 8.1
Loans and advances to banks 2,301.7 2,051.3
Loans and advances to customers 22,677.0 19,655.6
Financial assets at fair value 332.4 334.5
Derivative financial instruments 112.6 79.1
Intangible assets 36.4 36.7
Property, plant and equipment 52.5 70.1
Other assets 51.2 44.0
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Total assets 25,563.8 22,279.4
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LIABILITIES
Deposits from other banks 20,282.2 17,838.0
Other deposits 443.1 414.8
Derivative financial instruments and other
trading liabilities 68.6 69.0
Due to customers 3,316.7 2,551.6
Debt securities in issue 53.9 69.2
Other borrowed funds 78.6 78.6
Other liabilities 375.5 296.1
Provisions 34.2 39.7
Current tax liabilities 21.9 25.1
Deferred tax liabilities 8.6 2.0
Retirement benefit obligations 53.8 69.4
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Total liabilities 24,737.1 21,453.5
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EQUITY
Share capital 306.6 306.6
Retained earnings 494.5 494.2
Other reserves 25.6 25.1
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Total equity 826.7 825.9
---------- ---------
---------- ---------
Total equity and liabilities 25,563.8 22,279.4
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BRISTOL & WEST GROUP CASHFLOW FOR THE SIX MONTHS TO 30 SEPTEMBER 2006
Unaudited Unaudited
6 months to 6 months to
30/09/06 30/09/05
£m £m
Net cash flow from operating activities
Profit before tax 53.4 168.1
Adjusted for
Depreciation and amortisation 4.4 2.2
Impairment losses on loans and advances to
customers (0.1) 0.1
Cash inflow relating to sale of branch network
included in investing activities - (124.2)
Profit on disposal of intangible assets and
property, plant and equipment (0.2) -
Other non-cash movements 17.8 14.9
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75.3 61.1
Changes in operating assets and liabilities
Loans and advances to banks (474.2) (457.7)
Loans and advances to customers (1,135.5) (2,139.5)
Other assets (12.7) 52.8
Deposits from other banks 1,303.9 7,068.3
Due to customers 399.1 (4,159.5)
Debt securities in issue (7.4) (10.0)
Other liabilities 32.6 32.1
Provisions (8.8) (2.3)
---------- ---------
97.0 384.2
Taxes paid (6.1) (9.8)
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Net cash from operating activities 90.9 374.4
Cash flows from investing activities
Net investment in intangible assets and property,
plant and equipment (2.1) (1.7)
Cash inflow from sale of branch network - 146.0
Subordinated liabilities (21.8) (22.1)
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Net cash (used in) / from investing activities (23.9) 122.2
Cash flows from financing activities
Subordinated debt issue 30.0 -
Capital repayment of finance lease (0.2) (0.2)
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Net cash from / (used in) financing activities 29.8 (0.2)
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Net increase in cash and cash equivalents 172.1 557.5
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BRISTOL & WEST GROUP RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2006
NOTES
This report is compiled to meet UK Listing Authority requirements for Bristol &
West plc preference shareholders. The most recent dividend was paid to
preference shareholders on 15 November 2006 for the period from 15 May 2006 to
14 November 2006 inclusive. The dividend rate is fixed at 8.125%.
From 1 January 2005 all listed companies in the EU are required to produce
consolidated accounts prepared under IFRS. The Group has fully implemented IFRS
from 1 April 2005 and has produced its first full IFRS accounts for the year
ending 31 March 2006. The accounting policies followed in this interim statement
are the same as the accounting policies followed in the accounts for the year
ended 31 March 2006.
Certain amounts have been restated as at 30 September 2005 as a result of
finalisation of IFRS transitional adjustments and reclassifications.
This information is provided by RNS
The company news service from the London Stock Exchange