RNS Number:0008Q
Sumus plc
23 January 2007


The following amends the release by Sumus Plc of its preliminary results for the
year ended 30th September 2006 made today at 0700 under RNS number 9506P

The release has been amended to include the following statement:
"The final dividend of 0.46pence per share will be proposed at the forthcoming
Annual General Meeting and will be paid on 27th February 2007 to shareholders 
on the register as at 2nd February 2007." 


23rd January 2007


For immediate release

                                   Sumus Plc

           Preliminary results for the year ended 30th September 2006


                      Delivering on the 'growth strategy'



Sumus Plc ('Sumus' or 'the Company'), the AIM listed holding company for IFA 
businesses providing investment and financial advisory services and network 
support services to IFA firms, today announces their preliminary results for 
the year ended 30th September 2006.


Commenting on the results, Paul Bradshaw, Chairman, said;


2006 was a significant year for Sumus Plc. The Group has once again proved that
it can grow organically whilst maintaining the quality of its earnings; adding
to its 23 year history of sustained compound growth. It has also proved that it
can make substantial, immediately earnings enhancing acquisitions, without
compromising its balance sheet strength. The combination of the two elements is
extremely powerful and puts Sumus in a commanding position in today's IFA market
place.



Key Financials


Key performance indicator       2006 (#000)     2005 (#000)     Change

Turnover                        15,196          12,521          +21.4%

Gross profit                    2,534           2,060           +23.0%

Operating profit                622             492             +26.4%

Profit before tax               840             628             +33.8%

Net assets                      4,877           3,823           +27.6%

Operating margin                4.1%            3.9%            +5.1%

Net operating cash flow         1,031           270             +281.9%

Earnings per share - basic      2.11 pence      1.78 pence      +18.5%

Dividends paid / proposed       0.68p/share     0.527p/share    +29.0%



Highlights


Number of advisers up by 140% to 315                            (2005: 131)
Average revenue per adviser breaks #100,000 per year            (2005: #96,000)

Acquisition of FSAS, the leading Scottish IFA network, for up to #2m -
immediately earnings enhancing

Addition of some #700m assets under advice, taking the group total to in excess
of #2bn funds under advice

Development of Brunel Funds 'Fund of Funds' investment proposition to be
launched in February 2007

Substantial cash resources of #3m available to fund strategic opportunities by
acquisition, joint venture, partnership and organic expansion

Continuing investment in senior management and infrastructure out of operating
cash flow

The final dividend of 0.46pence per share will be proposed at the forthcoming
Annual General Meeting and will be paid on 27th February 2007 to shareholders 
on the register as at 2nd February 2007.



Contact


Allan Rosengren                             0117 9330777
CEO - Sumus Plc                             07973 511941


Paul Bradshaw
Chairman - Sumus Plc                        07931 511936


Peter Smith                                 0117 9330777
FD - Sumus Plc                              07713 885286


Tom Cooper / Paul Vann                      0117 9200092
Winningtons Financial






CHAIRMAN'S STATEMENT

I was delighted to accept the Chairmanship of Sumus in December 2006 and these
sparkling results justify fully my enthusiasm for the group. During the year,
the group made its first major acquisition (FSAS) and has also begun the move
into added-value investment services. These are all excellent achievements and
the strong management team together with my Board predecessors are to be
congratulated on another year of solid progress.


Financial performance

Pre-tax profits have increased by 34% to #840,000 and net operating cash flow
exceeded #1 million for the first time, with cash balances rising by 9% to #4.3
million. We are recommending a final dividend of 0.46p per share, making a total
dividend for the year of 0.68p, an increase of 29% compared with last year and
covered 3 times.


Brunel Funds

A significant and well-received development in our product offering is the
Brunel Funds investment proposition which was approved by the FSA in December
2006 and which will be formally launched next month. This product gives Sumus an
opportunity to participate more actively and derive more value from offering
Independent Financial Advice and associated investment management services. We
anticipate that this will ensure both a fairer value distribution but, much more
fundamentally, an integrated incentive to the group to ensure quality over the
long term.


Market dynamics

Sumus is well-placed to benefit from the deep-seated and profound drivers of
growth in our market - ever increasing individual wealth, the demographic
inevitability of retirement for the 'baby boomer' generation and an appropriate
cynicism from younger people on the adequacy of State pensions and benefits. Our
industry is undergoing significant restructuring, not only with the
liberalisation of polarisation rules, but in more fundamental ways also.
Technology has had a significant impact in the IFA market and there are clearly
productivity gains and significant enhancements to the product offering for our
clients yet to come in all of our markets. The group's track record of strong
management and a strategy that works leaves us well placed to take advantage of
the many opportunities that the market dynamics will yield.


Current trading

Progress in the current year is satisfactory with turnover and profits
(including full contributions from FSAS) in line with expectations. Your Board
is currently assessing a number of exciting quality opportunities across all of
its corporate activity - organic expansion of existing operations, acquisitions,
joint ventures and partnership arrangements - which bodes well for the future
development of the group.

2007 promises to be exciting and dynamic for Sumus and I know that the whole
group relishes the challenges and the opportunities ahead.


Paul Bradshaw
Chairman
23rd January 2007





CHIEF EXECUTIVE'S REVIEW

We have continued to grow organically, strengthened our executive team,
increased the scope and geographic reach of the group through the acquisition of
FSAS in Scotland and broadened our wealth management offering with the imminent
launch of the Brunel Funds. Sumus has delivered on all of its objectives for the
year under review and we are delighted to present an excellent set of results
for the year ended 30th September 2006. As mentioned in the Chairman's
Statement set out on page 3, all the indicators of corporate health are
extremely positive. Group turnover and pre tax profit have increased by a
creditable 21% and 34% to #15.2 million and #840,000 respectively. Cash balances
are #4.3 million and the group has no debt.


I will comment on the main operating areas of the group as follows:


Acquisition of Financial Services Advisory and Support Limited (FSAS)

We acquired the total issued share capital of FSAS on 7th September 2006. FSAS
is a fellow founder member of the IFA Consortium and comprises an excellent fit
with our existing operations. Like Falcon Group, FSAS is committed to providing
independent financial advice, employing a somewhat different but complementary
operating model to that of Falcon. The integration of FSAS is proceeding well
and we warmly welcome all of our colleagues at FSAS to the group. This
acquisition, which is likely to add over #12 million of annual turnover, is
immediately earnings enhancing and provides a firm platform to further expand
our operations in a cost effective and profitable manner. The enlarged group
brings together in excess of 300 Independent Financial Advisers across the UK.


Board and Group Structure

Following completion of the FSAS acquisition, Andrew Snowball, Commercial
Director of FSAS, joined the Sumus Board as a Non-executive Director. We were
also delighted to appoint Paul Bradshaw as our Non-executive Chairman in
December 2006. Both Paul and Andrew have many years' financial services
experience in senior roles and we greatly look forward to working with them in
the years to come. Michael Innes and Iain Black resigned from the Board in
December 2006 and we thank them for their input and the quality of their counsel
over the last few years.

Sumus Plc owns 100% of Falcon Group Plc, 100% of Financial Services Advisory and
Support Limited and 70% of Financial Synergies Plc. We also work with other
large independent financial advisory businesses through the IFA Consortium,
which was launched in September 2005.


The Brunel Funds OEIC

A key objective for 2006 was to develop an asset management capability to
enhance returns on the assets advised upon. To this end we appointed Piers Denne
to review the positioning of the assets we have under advice and to develop
alternatives based on a value added management proposition.

This has led to our developing an exciting Fund of Funds capability in
conjunction with Premier Asset Management Plc. The Brunel Funds OEIC will be
formally launched in February 2007 with both Growth and Distribution sub-funds.
We believe these funds will offer an attractive, carefully risk managed
investment for clients, whilst enabling the group to start participating in
asset management revenues. The group continues to encourage the growth of
recurring income to reduce the dependency on initial commissions and advice
fees. We view the Brunel Funds as an important enabler for achieving this
objective.


Growth and Group Development

During 2006 we steadily increased our team of advisers, with the number of
Registered Individuals reaching 149 in Falcon and 166 in FSAS as at 30th
September 2006 (2005: 131 in Falcon only). Average annual revenues generated per
adviser at Falcon increased from #96,000 to over #100,000.

We have strengthened our senior management resources to manage this level of
growth. In addition to Piers Denne, we appointed Stephen Gazard as Head of Group
Development in July 2006. Stephen has considerable experience of network
operations at Director level and has already contributed significantly in
identifying and developing a number of key opportunities for future growth.

We have also added to the operations side of our businesses. Effective risk
management and the proactive provision of high levels of client care are of
central importance to the group.

We have continued to upgrade our systems and processes during the year under
review and have recently initiated a remotely hosted, web based server IT
environment which, once completed in the first quarter of 2007, will enable us
to deliver significantly increased functionality and data access for advisers
whilst enhancing security and data integrity features. Client demand for
appropriate and properly advised financial products and services remains high,
with particular emphasis being placed on investments and pensions and on tax
mitigation strategies, including inheritance tax planning. Overall some 76% of
our gross revenue in 2006 was derived from investment and pension products,
continuing the trend in recent years towards those areas, with some 24% being
from mortgage and protection products. Approximately 80% of all revenue is now
earned on a non-indemnified basis, and some 20% of all income is now derived
from client fees and recurring income from renewals, trail and fund based
sources.


Strategy and Prospects

The market for financial products in the UK was relatively benign during the
year under review and recent market commentaries indicate that the environment
in the current year should prove comparable, notwithstanding recent fiscal
tightening and current stock market levels. Such factors may become more
important in subsequent years, in which case the group(1)s demonstrable skills
in mitigating client risk and providing holistic and truly independent financial
advice across the whole of the market should stand us in good stead. Cash
resources remain substantial at #4.3 million having increased from #3.9 million
in 2005 - this despite the #416,000 initial net cash outlay in respect of the
FSAS acquisition and the move to payment of corporation tax on an instalment
basis. Allowing for the group(1)s capital adequacy requirements, significant
sums remain available for further acquisition and joint venture activity. Sumus
is profitable and self-sustaining and has no debt. The group is also used to
growing its revenues by on average 25% per annum or more, as it has done since
1994. Our aim is to be a cost effective and efficient provider of services and
associated benefits to those high quality advisers and businesses that are
looking to offer excellent client service manage their risks for the long-term
and build value. We will continue to focus on delivering transactions that fit
our business strategy, which means they should be earnings enhancing from an
early stage with strong growth prospects. Where new product and distribution
opportunities are identified - such as the Brunel Funds offering - we will
develop them in ways that maintain and enhance our existing operations whilst
always focusing on what is appropriate for the client. We intend to maintain our
core principles of sustainable profitable growth, effective risk management and
providing independent financial advice across the whole of the market in order
to serve the best interests of the group, our clients and stakeholders.


The Future

The Board is excited by the opportunities we see for developing the business
during the coming year and with the scale and capabilities we have within the
group, I am confident that we will enjoy continued success in 2007.

Our achievements are made possible by the efforts of a great many people across
the group. I thank them all for doing what they do so well.


Allan Rosengren
Chief Executive
23rd January 2007





SUMUS PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2006

                                                   Year                 Year
                                                   ended                ended
                                               30 September         30 September
                                                     2006                 2005
                             Notes                   #000                 #000

Turnover                        2
Continuing operations                14,425                  12,519
Acquisitions                            771                       2
                                     ------                  ------
                                                   15,196               12,521

Cost of sales                                     (12,662)             (10,461)
                                                   --------             --------
Gross profit                                        2,534                2,060

Administrative expenses                            (1,912)              (1,568)
                                                   --------             --------
Operating profit                6                     622                  492
Continuing operations                   614                     495
Acquisitions                              8                      (3)
                                      ------                 ------
                                        622                     492
                                      ------                 ------

Other interest receivable
and similar                                           218                  146
income
Interest payable and similar    7                       -                  (10)
charges
                                                    -------               ------
Profit on ordinary
activities before                                     840                  628
taxation

Tax on profit on ordinary       9                    (259)                (190)
activities
                                                    -------               ------
Profit on ordinary
activities after                                      581                  438
taxation
Minority interest                                      (1)                   -

                                                    -------               ------
Profit for the financial       10                     580                  438
year
                                                    -------               ------

Basic earnings per share        8                    2.11p                1.78p
Fully diluted earnings per      8                    2.02p                1.78p
share                                               =======              =======
There are no recognised gains and losses other than those passing through the
profit and loss account.




SUMUS PLC
BALANCE SHEET
AS AT 30 SEPTEMBER 2006

                                          Group                  Company
                                    2006          2005      2006         2005
                                             As restated            As restated
                         Notes      #000          #000      #000         #000

Fixed assets
Intangible assets           12     1,716             6         -            -
Tangible assets             13        52            42         -            -
Investments                 14        27            27     1,918          109
                                   -----         -----     -----        -----
                                   1,795            75     1,918          109
                                   -----         -----     -----        -----
Current assets
Debtors                     16     1,286         1,091        20          149
Cash at bank and in hand           4,283         3,947     2,396        2,961
                                   -----         -----     -----        -----
                                   5,569         5,038     2,416        3,110
Creditors: amounts
falling due within one
year                        17    (1,932)       (1,192)     (137)         (28)
                                   -----         -----     -----        -----
Net current assets                 3,637         3,846     2,279        3,082
                                   -----         -----     -----        -----
Total assets less current
liabilities                        5,432         3,921     4,197        3,191

Creditors: amounts
falling due after more
than one year               18      (408)            -      (408)           -

Provisions for
liabilities and charges     19      (147)          (98)        -            -
                                   -----         -----     -----        -----
Net assets                         4,877         3,823     3,789        3,191
                                   -----         -----     -----        -----

Capital and reserves
Called up share capital     21       141           137       141          137
Shares to be issued         15       408             -       408            -
Share premium account       22     2,674         2,463     2,674        2,463
Other reserves              22       160           160         -            -
Profit and loss account     22     1,493         1,063       566          591
                                   -----         -----     -----        -----
Shareholders' funds -
equity interests            24     4,876         3,823     3,789        3,191

Minority interest           23         1             -         -            -
                                   -----         -----     -----        -----
Net assets                         4,877         3,823     3,789        3,191
                                   -----         -----     -----        -----




SUMUS PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2006

                                                 Year                   Year
                                                ended                  ended
                                           30 September           30 September
                                                 2006                   2005
                           Notes                 #000                   #000

Net cash inflow from
operating                   27                  1,031                    270
activities

Returns on investments and
servicing of finance
Interest received                   218                    136
Interest paid                         -                    (10)
                                  -----                   -----
Net cash inflow for
returns on                                        218                    126
investments and servicing
of finance

Taxation                                         (325)                  (140)

Capital expenditure
Payments to acquire                 (22)                   (31)
tangible assets
                                  -----                   -----
Net cash outflow for
capital                                           (22)                   (31)
expenditure

Acquisitions and disposals
Purchase of subsidiary
undertakings                       (416)                    (6)
(net of cash acquired) 15
                                  -----                   -----
Net cash outflow from
acquisitions and                                 (416)                    (6)
disposals

Equity dividends paid                            (150)                  (255)

                                                -----                  -----
Net cash inflow/(outflow)
before
management of liquid                              336                    (36)
resources and
financing

Financing
Issue of ordinary share capital       -                  3,000
Cost of share issue                   -                   (500)
                                  -----                  -----
Issue of shares                       -                  2,500
Repayment of other long term          -                   (100)
loans
                                  -----                  -----
Net cash inflow from                                -                  2,400
financing
                                                -----                  -----
Increase in cash in the              28           336                  2,364
year
                                                -----                  -----



SUMUS PLC
NOTES TO THE PRELIMINARY ANNOUNCEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2006

    1   Accounting policies

  1.1   Accounting convention
        The financial statements are prepared under the historical cost 
        convention.

  1.2   Basis of consolidation
        The consolidated profit and loss account and balance sheet include the 
        financial statements of the company and its subsidiary undertakings made 
        up to 30 September 2006. The results of subsidiaries sold or acquired 
        are included in the profit and loss account up to, or from, the date 
        effective control passes.  The results and net assets of other subsidiary 
        undertakings acquired are included using the acquisition basis of 
        accounting except for the Falcon Group Plc, which was consolidated using 
        the merger basis of accounting.

  1.3   Change in accounting policy
        The group has adopted Financial Reporting Standard 21 'Events after the 
        balance sheet date' in these financial statements. This represents a 
        change in accounting policy in relation to the treatment of proposed 
        dividends and has resulted in a prior year adjustment. Further details 
        are set out in note 32 to the financial statements.

  1.4   Turnover
        Turnover represents fees and commissions receivable, excluding VAT.
        Income is recognised on a receivable basis net of any claw backs, where 
        applicable, except for renewals where the income is recognised when it 
        is received.  Commission earned on indemnity terms is included in the 
        financial statements when it is considered due. A provision for lapses 
        on commission received on an indemnity basis is included within the 
        financial statements, net of recoveries available from third parties 
        where reasonably certain.  Turnover recognised but not yet received at 
        the year end is included as accrued income, when due from providers or 
        clients, or as trade debtors when due from Appointed Representatives.

  1.5   Goodwill
        Purchased goodwill arising on acquisitions is capitalised as an 
        intangible asset and is amortised to the profit and loss account in 
        equal annual instalments over its estimated useful economic life, which 
        can vary up to a maximum of 20 years.

  1.6   Tangible fixed assets and depreciation
        Tangible fixed assets are stated at cost less depreciation. Depreciation 
        is provided at rates calculated to write off the cost less estimated 
        residual value of each asset over its expected useful economic life, 
        as follows:

        Leasehold improvements                 Over the period of the lease
        Fixtures, fittings & equipment         25% straight line

  1.7   Investments
        Fixed asset investments are stated at cost less any necessary provision 
        for impairment.

  1.8   Leasing
        Rentals payable under operating leases are charged against income on a 
        straight line basis over the lease term.

  1.9   Pensions
        The group operates two defined contribution schemes for the benefit of 
        its employees. Contributions payable are charged to the profit and loss 
        account in the period to which they relate. Contributions are invested 
        separately from the group's assets.

 1.10   Taxation
        Current tax is provided at amounts expected to be paid (or recovered) 
        using the tax rates and laws that have been enacted or substantively 
        enacted by the balance sheet date.
        Deferred tax is recognised in respect of all timing differences that 
        have originated but not reversed at the balance sheet date. Timing 
        differences are differences between the group's taxable profits and its 
        results as stated in the financial statements and arise primarily from 
        the difference between accelerated capital allowances and depreciation. 
        The provision is not discounted.

 2      Turnover
        The total turnover of the group for the year has been derived from its 
        principal activity wholly undertaken in the United Kingdom.
        United Kingdom.

 3      Costs of acquired undertakings included within cost of sales and net 
        operating expenses.  The total figures for continuing operations in 2006 
        include cost of sales of #704,742 (2005: #Nil) and administrative 
        expenses of #58,113 (2005: #4,492) in respect of subsidiary undertakings 
        acquired during the year.

 4      Directors' emoluments                                   2006        2005
                                                                #000        #000

        Emoluments for qualifying services                       301         238
        Less amount capitalised as part of the cost of the       (35)          -
        acquisition of subsidiary undertakings
        Less amount charged to share premium account for services -         (12)
        re listing
                                                               -----       -----
        Net emoluments charged to profit and loss account        266         226
        Company pension contributions to money purchase schemes   60          60
                                                               -----       -----
                                                                 326         286
                                                               

        Emoluments disclosed above include the following amounts paid to the 
        highest paid director:

        Emoluments for qualifying services                       101          97
        Company pension contributions to money purchase schemes   30          30
                                                               -----       -----
 5      Employees

        Number of employees
        The average monthly number of employees (including executive directors) 
        during the year was:
                                                                2006        2005
                                                              Number      Number

        Management and administration                             25          17
                                                               -----       ----- 

        Employment costs                                        2006        2005
                                                                #000        #000
        Wages and salaries                                       707         505
        Social security costs                                     66          48
        Other pension costs                                       64          65
                                                               -----       -----
                                                                 837         618
                                                               -----       -----

 6      Operating profit                                        2006        2005
                                                                #000        #000
        Operating profit is stated after charging:
        Amortisation of goodwill (note 12)                        17           -
        Depreciation of tangible fixed assets                     28          31
        Operating lease rentals - land and buildings              97         108
                                -fixtures, fittings and equipment  1           -
        Auditors' remuneration (company #6,000; 2005: #3,500)
        Audit                                                     28          21
        Other services relating to taxation                        8           -
        Services relating to corporate finance transactions       14
        (2006: an additional #20,000 has been capitalised)
                                                                               -
        All other services                                         8           -
        Remuneration of prior auditors for non-audit work -        -          46
        other services
                                                               -----       -----

 7      Interest payable                                        2006        2005
                                                                #000        #000

        Other interest (see note 26 for further details)           -          10
                                                               -----       -----



  8     Earnings per share

        Basic earnings per share has been calculated based on the profit for the 
        year (after tax and minority interest) of #580,000 (2005 - #438,000) and 
        on the weighted average number of shares in issue during the year of 
        27,544,660 (2005 - 24,643,836).  Fully diluted earnings per share has 
        been calculated based on the profit for the year (after tax and minority 
        interest) of #580,000 (2005 - #438,000) and on the weighted average 
        number of shares in issue and potential shares to be issued during the 
        year of 28,744,660 (2005 - 24,643,836).

  9     Taxation                                              2006          2005
                                                              #000          #000

        U.K. corporation tax                                   259           193
        Adjustment for prior years                              -            (3)
                                                             -----         -----
        Current tax charge                                     259           190
                                                             -----         -----

        Factors affecting the tax charge for the year
        Profit on ordinary activities before taxation          840           628
                                                             -----         -----

        Profit on ordinary activities before taxation 
        multiplied by standard rate of UK corporation tax      252           188
        of 30.00% (2004:30.00%)
                                                             -----         -----
        Effects of:
        Non deductible expenses                                  2             2
        Amortisation of goodwill on acquisition                  5             -
        Excess of depreciation over capital allowances           1             2
        Utilisation of unrelieved losses brought forward        (1)            -
        Losses not available for group relief                    -             1
        Adjustments to previous periods                          -            (3)
                                                             -----         ----- 
                                                                 7             2
                                                             -----         ----- 
        Current tax charge                                     259           190
                                                             -----         -----
 10     Profit for the financial year

        As permitted by section 230 of the Companies Act 1985, the holding 
        company's profit and loss account has not been included in these 
        financial statements. The profit for the financial year is made up as 
        follows:
                                                              2006          2005
                                                              #000          #000

        Holding company's profit for the financial year        125           846
                                                             -----         -----
 11     Dividends                                             2006          2005
                                                                     As restated
                                                              #000          #000

        Special interim dividend paid - #nil 
                                    (2005: 1p per share)         -           200
        Final dividend re 2005 at 0.327p per share 
                                    (re 2004: nil)              90             -
        Interim dividend paid at 0.22p per share 
                                    (2005: 0.2p per share)      60            55
       
                                                             -----         -----
                                                               150           255
                                                             -----         -----

        The directors propose a final divided for 2006 of #130,000, at 0.46 
        pence per share. This dividend is subject to approval by shareholders at 
        the Annual General Meeting on 22 February 2007 and, in accordance with 
        Financial Reporting Standard 21, has not been included as a liability in 
        these financial statements.



 12     Intangible fixed assets - Group
                                                                        Goodwill
                                                                            #000
        Cost
        At 1 October 2005                                                      6
        Addition in year (note 15)                                         1,727
                                                                           -----
        At 30 September 2006                                               1,733
                                                                           -----
        Amortisation
        At 1 October 2005                                                      -
        Amortisation in the year                                              17
                                                                           -----        
        At 30 September 2006                                                  17
                                                                           -----
        Net book value
        At 30 September 2006                                               1,716
                                                                           -----
        At 30 September 2005                                                   6
                                                                           -----




 13     Tangible fixed assets
        Group
                                                     Leasehold  Fixtures,  Total
                                                  improvements fittings &
                                                                equipment
                                                        #000       #000     #000
        Cost
        At 1 October 2005                                 22       125       147
        Acquisition of subsidiary undertaking (note 15)    -        25        25
        Additions                                          -        22        22
                                                       -----      -----    -----
        At 30 September 2006                              22       172       194
                                                       -----      -----    -----
        Depreciation
        At 1 October 2005                                 17        88       105
        Acquisition of subsidiary undertaking (note 15)    -         9         9
        Charge for the year                                4        24        28
                                                       -----      -----    -----
        At 30 September 2006                              21       121       142
                                                       -----      -----    -----
        Net book value
        At 30 September 2006                               1        51        52
                                                       -----      -----    -----
        At 30 September 2005                               5        37        42
                                                       -----      -----    -----
    
 14     Fixed asset investments
        Group                                                 Listed investments
                                                                            #000
        Cost
        At 30 September 2005 and 30 September 2006                            27
                                                                           -----

                                                                    Market value
                                                                            #000
        At 30 September 2006                                                 113
                                                                           -----
        At 30 September 2005                                                  97
                                                                           -----



        Company                                                  Shares in group
                                                                    undertakings
                                                                            #000
        Cost
        At 1 October 2005                                                    109
        Additions (see note 15)                                            1,809
                                                                           -----
        At 30 September 2006                                               1,918
                                                                           -----
        In the opinion of the directors, the aggregate value of the company's 
        investment in subsidiary undertakings is not less than the amount 
        included in the balance sheet.

        Holdings of 20% or more
        The company holds 20% or more of the share capital of the following 
        companies:

        Company                      Country of                      Shares held
                                   registration or
                                   incorporation
                                                          Class           %
        Subsidiary undertakings
        The Falcon Group Plc       England and Wales      Ordinary       100
        Financial Services
        Advice and Support Ltd     Scotland               Ordinary       100
        Financial Synergies Plc    England and Wales      Ordinary        70

 15     Acquisition of subsidiary undertaking
        On 7 September 2006 the company acquired 100% of the ordinary share 
        capital of Financial Services Advice and Support Limited ("FSAS"). 
        This was acquired for an initial consideration of #859,000 in cash and 
        shares, and further deferred consideration up to a maximum #1,141,000 
        in cash and shares.  The amount of goodwill arising on the acquisition 
        is being amortised through the profit and loss account on a straight 
        line basis over a period of 10 years, being the estimated useful 
        economic life of the investment.  The fair values of the identifiable 
        assets and liabilities of the new subsidiary at the date of acquisition 
        were as follows:

        Net assets acquired     Book value   Accounting     Other     Fair value
                                               policy    adjustments
                                             adjustments
                                   #000         #000         #000         #000

        Intangible
        fixed assets                 53          (53)           -            -
        Tangible fixed
        assets                       16            -            -           16
        Debtors                     215            -            -          215
        Cash at bank
        and in hand                 362            -            -          362
        Current liabilities
        excluding corporation
        tax                        (484)           -            -         (484)
                                  -----        -----        -----        -----
        Corporation tax             (12)           -            4           (8)
        Provisions for
        liabilities
        and cha                     (19)           -            -          (19)
                                  -----        -----        -----        -----
        Net assets
        acquired                    131          (53)           4           82
                                  -----        -----        -----        -----

        Estimated total consideration
        (see below)                                                      1,675
        Acquisition costs                                                  134
                                                                         -----
        Total cost of investment                                         1,809
                                                                         -----
        Goodwill arising on acquisition                                  1,727
                                                                         -----

        Satisfied by                                                      #000

        Initial consideration:
        Cash                                                               644
        Shares issued                                                      215
        Deferred consideration:
        Cash                                                               408
        Shares to be issued                                                408
                                                                         -----
                                                                         1,675
                                                                         -----


        The following adjustments to the values of the net assets of FSAS were 
        made to arrive at fair values on acquisition: #53,000 in respect of the 
        write off of software development costs capitalised as an intangible 
        asset in FSAS, to bring the treatment into line with group policy, and 
        #4,000 being an adjustment to corporation tax provision to establish the 
        correct pre-acquisition position.  The deferred consideration is capped 
        at #1,141,000, to be calculated based on the Earnings Before Interest 
        and Taxation ("EBIT") of FSAS for the year ending 30 September 2007 
        after deducting the initial consideration paid, and is to be 
        satisfied as to 50 per cent. in cash and as to the remaining 50 per cent. 
        by the issue of new ordinary shares of 0.5p each in Sumus Plc, issued as 
        fully paid and valued at the average closing mid-market price in the 
        five days immediately prior to the date of issue. The estimated deferred 
        consideration is based on the latest forecast of EBIT for FSAS.

        The summarised profit and loss account of the acquired entity for the 
        period from the beginning of its financial year on 1st November 2005 to 
        the effective date of acquisition, and for its previous financial year, 
        is set out below:

                                                    44 weeks to       Year ended
                                                    7 September  31 October 2005
                                                       2006
                                                       #000             #000

        Turnover                                     10,039            7,523
        Cost of sales                                (9,203)          (6,745)
                                                   ----------       ----------
        Gross profit                                    836              778
        Administrative expenses                        (761)            (735)
                                                   ----------       ----------
        Operating profit                                 75               43
        Net interest payable                             (1)               -
                                                   ----------       ----------
        Profit on ordinary activities 
        before taxation                                  74               43
        Taxation                                        (24)               -
                                                   ----------       ----------
        Profit on ordinary activities
        after taxation                                   50               43
        Dividends paid                                  (57)               -
                                                   ----------       ----------
        (Loss)/profit for the period
        transferred to reserves                          (7)              43
                                                   ----------       ----------

        The above information has been extracted from the audited financial
        statements of FSAS for 2005 and 2006, and is stated after reclassifying
        professional indemnity premiums and FSA fees paid from costs of sales to
        administrative expenses, in order to be consistent with the presentation 
        in the group's consolidated profit and loss account.

 16     Debtors
                                            Group                   Company
                                       2006       2005         2006        2005
                                       #000       #000         #000        #000

        Trade debtors                    90          -            -           -
        Amounts owed by subsidiary        -          -            3          86
        undertaking
        Group relief receivable           -          -            -          45
        Other debtors                   100        111            -           -
        Prepayments                     178        119           17          18
        Accrued income - commission     918        861            -           -
        receivable
                                      -----      -----        -----        -----
                                      1,286      1,091           20         149
                                      -----      -----        -----        -----

   17   Creditors: amounts falling due within one year

                                             Group                  Company
                                        2006       2005         2006      2005
                                                    As                     As 
                                                 restated               restated

                                        #000       #000         #000      #000

        Trade creditors                  910        711            -         9
        Amounts owed to subsidiary         -          -           86         -
        undertaking
        Corporation tax                  135        193            -         -
        Taxes and social security         31         17            8         8
        costs
        Accruals and deferred            538        271           43        11
        income
        Other creditors                  318          -            -         -
                                       -----      -----        -----     -----
                                       1,932      1,192          137        28
                                       -----      -----        -----     -----

   18   Creditors: amounts falling due after more than one year

                                             Group                  Company
                                        2006       2005         2006      2005
                                        #000       #000         #000      #000

        Deferred cash                    408          -          408         -
        consideration (note 15)
                                       -----      -----        -----     -----

        The deferred consideration represents the director's best estimate of 
        the additional cash amount payable in respect of the acquisition of 
        Financial Services Advice and Support Limited. Further details are set 
        out in note 15 above.




 19     Provisions for liabilities and charges
        Group
                                                  Client      Lapses     Total
                                               compensation
                                                  claims
                                                   #000        #000       #000

        Balance at 1 October 2005                    50          48         98
        Acquisition of subsidiary undertaking         -          19         19
        (note 15)
        Utilised during the year                    (41)       (276)      (317)
        Movement in provision                        71         276        347
                                                  -----       -----      -----
        Balance at 30 September 2006                 80          67        147
                                                  -----       -----      -----
        Client compensation claims
        A provision is held in relation to current and future client complaints 
        across all product types. The assumptions used have been based on 
        previous experience and factors prevailing currently in the financial 
        services industry. The amount provided is the net obligation, taking 
        into consideration recovery from financial advisers and insurers where 
        it is reasonably certain.

        Lapses for indemnity commissions
        The provision for lapses reflects the estimated clawback of indemnity
        commissions by product providers for future policy lapses. The provision 
        is recognised net of any recovery available from financial advisers and 
        insurers where that recovery is reasonably certain.

        Deferred taxation
        Neither the company nor the group had any liability to deferred taxation 
        at either 30th September 2005 or 2006. The potential deferred tax asset, 
        which comprised excess accelerated capital allowances and is not 
        recognised in the financial statements, at 30th September 2006 was 
        #4,597 (2005:#4,940).

 20     Pension costs

        Defined contribution
        The group operates two defined contribution pension schemes for its
        directors and employees. The assets of the schemes are held separately 
        from those of the company in an independently administered fund. The 
        pension cost charge represents contributions payable by the group to the 
        funds.

                                                                 2006       2005
                                                                 #000       #000

        Contributions payable by the group for the year            64         65
                                                                -----      -----




 21     Share capital                                            2006       2005
                                                                 #000       #000
        Authorised
        200,000,000 Ordinary shares of 0.5p each                1,000      1,000
                                                                -----      -----

        Allotted, called up and fully paid
        28,208,745 Ordinary shares of 0.5p each (2005:            141        137
        27,500,000)
                                                                -----      -----
        On 7th September 2006 708,745 new ordinary shares of 0.5p each were 
        issued,fully paid, at a price of 30.3 pence per share pursuant to the 
        acquisition of Financial Services Advice and Support Limited 
        (see note 15). The nominal value of these shares (#3,544) has been 
        credited to share capital and the resultant premium on issue (#211,206) 
        has been credited to the share premium account.

 22     Statement of movements on reserves
        Group
                                 Share premium  Capital reserve  Profit and loss
                                    account        on merger         account
                                     #000            #000             #000
 
        Balance at 1 October 2005   2,463             160              973
        Prior year adjustment 
        (note 32)                       -               -               90
      
                                    -----           -----            -----
        Restated balance at 
        1 October 2005              2,463             160            1,063
      
        Profit for the financial 
        year                            -               -              580
        Dividends paid                  -               -             (150)
        Premium on shares issued      211               -                -
        during the year
                                    -----           -----            -----
        Balance at 
        30 September 2006           2,674             160            1,493
                                    -----           -----            -----

        Company                                Share premium     Profit and loss
                                                   account            account
                                                    #000                #000

        Balance at 1 October 2005                  2,463                 501
        Prior year adjustment (note 32)                -                  90
                                                   -----               -----
        Restated balance at 1 October 2005         2,463                 591
        Profit for the financial year                  -                 125
        Dividends paid                                 -                (150)
        Premium on shares issued during the year     211                   -
                                                   -----               -----
                                                   2,674                 566
                                                   -----               -----




 23     Minority interest                               2006               2005
                                                        #000               #000
        Minority interest share of net assets and liabilities in a subsidiary 
        undertaking is:

        At 1 October 2005                                  -                  -
        On acquisition                                     -                  1
        Less share of post acquisition profits /(losses)   1                 (1)
                                                       -----               -----
        At 30 September 2006                               1                  -
                                                       -----               -----

 24     Reconciliation of movements in         Group                Company
        shareholders' funds
                                          2006       2005       2006       2005
        Group                             #000       #000       #000       #000

        Profit for the financial year      580        438        125        846 
        Dividends                         (150)      (345)      (150)      (345)
        Prior year adjustment (note 32)      -         90          -         90
                                         -----      -----      -----       -----
        Retained profit/(loss) for the     430        183        (25)       591
        financial year
        Proceeds from issue of shares      215      3,000        215      3,000
        Cost of share issue written 
        off to share premiun account         -       (500)         -       (500)
                                         -----      -----      -----      -----
        Net addition to shareholders' 
        funds                              645      2,683        190      3,091
        Shares to be issued (note 15)      408          -        408          -
        Opening shareholders' funds      3,823      1,140      3,191        100
                                         -----      -----      -----      -----
        Closing shareholders' funds      4,876      3,823      3,789      3,191
                                         -----      -----      -----      -----
                                                                 
 25     Financial commitments

        At 30 September 2006 the group had annual commitments under 
        non-cancellable operating leases as follows:
                                          Other               Land and buildings
                                     2006       2005            2006       2005
                                     #000       #000            #000       #000
        Expiry date:
        Between two and five years     11          -              11          -
        In over five years              -          -              96         96
                                    -----      -----           -----      -----
        Total                          11          -             107         96
                                    -----      -----           -----      -----




 26   Related party transactions

      The group paid SMS Advisory Ltd, a company in which Peter Smith owns a
      significant shareholding, fees and expenses totalling #95,051 including
      VAT (2005:#46,010) in respect of director's services supplied and in
      connection with advisory work undertaken in respect of the acquisition of
      Financial Services Advice and Support Limited (2005: AIM admission). At
      the year end the amount due to SMS Advisory Ltd was #4,554 (2005: #nil).
      The group paid rents to Capitecs Limited, a company under common ownership
      and of which A Rosengren and J P Telling are directors. The total paid
      during the period in respect of properties occupied by the group was
      #96,000 (2005: #89,260).
      There was no balance due to or from Capitecs Limited as at 30 September
      2006 (2005: #19,259 within other debtors).
      In 2005 interest of #9,320 was paid in respect of a loan provided to the
      group, amounting to #100,000, by a pension scheme to which the group
      contributes and of which A Rosengren and J P Telling are beneficiaries.
      The loan was repaid in full in December 2004.


 27   Reconciliation of operating profit to net cash
      inflow from operating activities
                                                                 2006      2005
                                                                 #000      #000
      Operating profit                                            622       492
      Depreciation of tangible assets*                             28        31
      Amortisation of goodwill                                     17         -
      Decrease/(increase) in debtors*                              20      (193)
      Increase/(decrease) in creditors within one year*           314       (74)
      Movement in provisions*                                      30        14
                                                                -----     -----      
      Net cash inflow from operating activities                 1,031       270
                                                                -----     -----
      *net of balances acquired in Financial Services Advice and Support Limited.


 28   Analysis of net funds                   1 October  Cash flow  30 September
                                                  2005                     2006
                                                  #000        #000         #000
      Cash at bank and in hand being net         3,947         336        4,283
      funds
                                                 -----       -----        -----

 29   Non cash consideration
      708,745 new ordinary shares of 0.5 pence each were issued during the year
      fully paid in part consideration for the acquisition of Financial Services
      Advice and Support Limited (see note 15 for further details).



 30   Reconciliation of net cash flow to movement in net          2006     2005
      funds
                                                                  #000     #000

      Increase in cash in the year                                 336    2,364
      Net funds inflow from decrease in debt                         -      100
                                                                 -----    -----
      Increase in net funds in the year                            336    2,464
      Opening net funds                                          3,947    1,483
                                                                 -----    -----
      Closing net funds                                          4,283    3,947
                                                                 -----    ----- 

 31   Client money
      The total balance on client bank accounts managed by the group at 30
      September 2006 was #217,285 (2005 - #632,945).


 32   Prior year adjustment
      Financial Reporting Standard 21, Events After the Balance Sheet Date, 
      became applicable for the current year, and accordingly proposed dividends 
      are now not included as liabilities in the financial statements. The prior 
      year figures have been restated for this adjustment, with the result of
      decreasing dividends payable in the prior year by #90,000.


33    Statutory accounts

      The financial information set out in this announcement does not constitute 
      the Group's statutory financial statements for the year ended 30 September 
      2006. The financial information for the year ended 30 September 2005 is 
      derived from the financial statements of the group for that period, which 
      were reported on by the auditors without qualification and such report did 
      not contain any statement under section 237(2) or (3) of the Companies Act 
      1985.

      The financial statements for the year ended 30 September 2005 have been
      delivered to the Registrar of Companies; those for the year ended 30 
      September 2006 will be finalised on the basis of the financial information 
      contained in this preliminary announcement and will be delivered to the 
      Registrar of Companies after the forthcoming Annual General Meeting.







                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
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