Notes

1.   Basis of preparation

These condensed financial statements have been prepared in accordance with IAS 34 ‘Interim Financial Reporting as adopted by the EU’.  They do not include all the information required for full annual financial statements, and should be read in conjunction with the financial statements of the Group as at and for the year ended 31 March 2011.

These condensed financial statements are unaudited and were approved by the Board of Directors on 23 November 2011.

The information for the year ended 31 March 2011 does not constitute statutory financial statements as defined by section 435 of the Companies Act 2006.  Those financial statements have been reported on by the Group’s auditors and delivered to the Registrar of Companies.  The report of the auditors was unqualified and did not contain statements under section 498(2) or (3) of the Companies Act 2006.

The accounting policies applied by the Group in these condensed financial statements are the same as those applied by the Group in its consolidated financial statements for the year ended 31 March 2011, other than as disclosed in note 2.

2.    Changes in accounting policies

From 1 April 2011 the following standards, amendments and interpretations became effective and were adopted by the Group:

 

§  Revised IAS24; related party disclosure.

 

The adoption of the above has not had a significant impact on the Group’s profit for the period or equity.

 

3.         Discontinued operation

 

The Group has disposed of operations, as follows:

 

§  The Roof Truss Company (Northern) Limited – on 26 May 2011;

§  Hastie Limited – on 20 April 2011; and

§  D J McGough Limited – on 15 September 2010

 

The comparative statement of comprehensive income has been re-presented to show the discontinued operations separately from continuing operations.

 

Results from discontinued operations – 6 months ended 30 September 2011

 

	D J McGough £000	Hastie £000	Roof Truss £000	Total £000
Revenue	–	–	–	–
Expenses	–	–	–	–
Exceptional expenses	–	–	(106)	(106)
	_______	_______	_______	_______
Loss before income tax	–	–	(106)	(106)
Income tax	–	–	–	–
	_______	_______	_______	_______
Loss for the period	–	–	(106)	(106)
	_______	–_______	_______	_______
Basic loss per share				(0.6)p
				_______
Adjusted (pre-exceptional) loss per share				– _______

 

Results from discontinued operations – 6 months ended 30 September 2010

 

	D J McGough £000	Hastie £000	Roof Truss £000	Total £000
Revenue	436	1,576	927	2,939
Expenses	(525)	(1,599)	(896)	(3,020)
Exceptional expenses	–	–	–	–
	_______	_______	_______	_______
(Loss)/profit before income tax	(89)	(23)	31	(81)
Income tax	25	6	(9)	22
	_______	_______	_______	_______
(Loss)/profit for the period	(64)	(17)	22	(59)
	_______	—_______	_______	_______
Basic loss per share				(0.3)p
				_______
Adjusted (pre-exceptional) loss per share				(0.3)p
				_______

 

3.         Discontinued operation (continued)

Results from discontinued operations – year ended 31 March 2011

	D J McGough £000	Hastie £000	Roof Truss £000	Total £000
Revenue	479	2,523	1,551	4,553
Expenses	(568)	(2,624)	(1,528)	(4,720)
Exceptional expenses	(50)	(470)	(192)	(712)
	_______	_______	_______	_______
Loss before income tax	(139)	(571)	(169)	(879)
Income tax	26	(2)	(1)	23
	_______	_______	_______	_______
Loss for the year	(113)	(573)	(170)	(856)
	_______	–_______	_______	_______
Basic loss per share				(4.6)p
				_______
Adjusted (pre-exceptional) loss per share				(0.8)p
				_______

Effect of disposal on financial position of the Group

	D J McGough £000	Hastie £000	Roof Truss £000	Total £000
Property, plant and equipment	89	58	658	805
Investments	–	–	11	11
Inventories	97	10	109	216
Trade and other receivables	398	338	170	906
Prepayments for current assets	31	17	26	74
Cash and cash equivalents	9	–	–	9
Loans and borrowings	(4)	(8)	(16)	(28)
Trade and other payables	(226)	(420)	(76)	(722)
Current tax	21	–	(5)	16
Deferred tax (liabilities)/assets	(5)	5	(11)	(11)
	_______	_______	_______	_______
Net assets and liabilities	410	–	866	1,276
	_______	—_______	_______	_______
Consideration received
–       satisfied in cash	–	–	639	639
–       deferred	–	–	227	227
Cash disposed of	(9)	–	–	(9)
	_______	–_______	_______	_______

4.    Taxation

The taxation charge for the six months ended 30 September 2011 is calculated by applying the Directors’ best estimate of the annual effective tax rate to the profit for the period.

 

5.         Earnings per share

 

The calculation of basic earnings/(loss) per share was based on the profit/(loss) for the period and on the weighted average number of ordinary shares outstanding, calculated as follows:

 

					6 months ended	6 months ended	Year ended
					30 September 2011	30 September 2010	31 March 2011
Profit/(loss) for the period (£000) –       continuing operations					483	317	639
–      discontinued operations					(106)	(59)	(856)
–       total					377	258	(217)
Weighted average number of ordinary shares (000)					18,420	18,919	18,663
Earnings/(loss) per share
–       continuing operations					2.6p	1.7p	3.4p
–       discontinued operations					(0.6)p	0.3p	(4.6)p
–       total					2.0p	1.4p	(1.2)p

 

The calculation of adjusted earnings/(loss) per share was based on the profit/(loss) for the period, adjusted for exceptional charges, and on the weighted average number of ordinary shares outstanding, calculated as follows:

					6 months ended	6 months ended	Year ended
					30 September 2011	30 September 2010	31 March 2011
Profit for the period (£000) – continuing operations					483	317	639
Exceptional expenses (£000)					30	156	285
Profit for the period before exceptionals (£000) – continuing operations					513	473	924
Loss for the year (£000) – discontinued operations					(106)	(59)	(856)
Exceptional expenses (£000)					106	–	712
Loss for the period before exceptionals (£000) – discontinued operations					–	(59)	(144)
Profit/(loss) for the period (£000) – total					377	258	(217)
Exceptional expenses (£000)					136	156	997
Profit for the period before exceptionals (£000) – total					513	414	780
Weighted average number of ordinary shares (000)					18,420	18,919	18,663
Adjusted earnings/(loss) per share –       continuing operations					2.8p	2.5p	5.0p
–       discontinued operations					–	(0.3)p	(0.8)p
–       total					2.8p	2.2p	4.2p

 

Share options in issue do not have a dilutive impact on the earnings per share calculation.

 

6.    Principal risks and uncertainties

 

The directors consider that the principal risks and uncertainties which could have a material impact on the Group’s performance in the remaining six months of the financial year remain the same as those stated on pages 5 and 6, and 47 to 50 of our Annual Report and Accounts for the year ended 31 March 2011, which are available on our website, www.northern-bear.com.

 

7.    Related party transactions

 

There have been no related party transactions in the first six months of the current financial year which have materially affected the financial position or performance of the Group.

 

8.    Half year report

 

The condensed financial statements were approved by the Board of Directors on 23 November 2011 and are available on the Company’s website, www.northern-bear.com.  Copies will be sent to shareholders and are available on application to the Company’s registered office.

 

9.    Statement of directors’ responsibilities

 

The directors named below confirm on behalf of the Board of Directors that to the best of their knowledge:

 

§  the condensed set of financial statements has been prepared in accordance with IAS 34 ‘Interim Financial Reporting’ as adopted by the EU; and

§  the interim management report includes a fair review of the information required by:

§  DTR4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

§  DTR4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the financial year and that have materially affected the financial position or performance of the Group during the period; and any changes in the related party transactions described in the last annual report that could do so.

 

The Directors of Northern Bear Plc are listed in the Annual Report and Financial Statements for the year ended 31 March 2011, subject to the subsequent resignations of Graham Forrest and Keith Soulsby.

 

For and on behalf of the Board of Directors

 

 

 

 

 

 

Steven Roberts

Finance Director

 

28^th November 2011