Annual Report for the year ended 31 December 2008

Balance Sheet strength and cash balances
Current market conditions support our long standing strategy of
maintaining a strong and liquid Balance sheet. At the year end, the
Group had net assets of £147.2m (2007: £155.3m) and of this,
the Group’s cash balances were £125.3m (2007: £122.7m), £10.4m
of this cash balance relates to third party investors within the WDB
Capital uK Equity Fund limited. This strategy provides strength in times
of market uncertainty and supports our ability to grasp opportunities
should they present themselves. Cash balances are maintained through
the effective management of working capital in trading portfolio assets
and net trade receivables.
Adjusted Profit
Results have been impacted by the continued presence of non-recurring
costs of £2.3m (2007: £7.6m) relating to the acquisition, restructuring
and integration of singer & Friedlander and the new Edinburgh teams,
as well as redundancy costs in existing operations. The Board believes
a truer reflection of profitability for the year is afforded by the measure
of adjusted operating profit, including the exclusion of share options
costs. This is defined on pages 10 and 11.
dividend
The Board recommends the payment of a final dividend of 1.27p per
share (2007: £1.25p). This follows the interim dividend payment of
0.75p per share paid on the 24 October 2008 to shareholders on the
register at 26 september 2008 (2007: 0.67p). The overall dividend
increased by 5% and is consistent with our progressive dividend policy.
This confirms our continued confidence in the Group’s businesses, but
at the same time recognises the existing business environment.
Share buyback
The Board wishes to maintain the capability to continue this programme
during the remainder of 2009 and will be seeking approval from
shareholders at this year’s Annual General Meeting.
The Group employees
We can only prosper if we have people of the highest quality employed
in our businesses. During the year we have continued to recruit very
high calibre people and will continue to do so. We have also taken a
conscious decision to reward (both to retain and motivate) those people
we need for the future. Our staff have managed our business in a very
impressive way through unprecedented market conditions. i thank them
all for their professionalism.
Outlook
We believe the challenging market and economic conditions will
continue for some time, certainly over the course of this year and
probably into 2010. However, the Group has made significant strategic
and operational progress and has maintained a strong and liquid
Balance sheet and a more stable income base. This will enable us
to take advantage of opportunities as they arise, continue to recruit
quality people and invest in new income streams.
We will continue to follow this strategic policy and believe the Group is
capable of riding out the challenging economic environment and is well
positioned for the future.
martin Gray
Chairman
8 April 2009
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