Pointon York Group Limited

September 12, 2011 12:41 ET

Annual Financial Report

Pointon York Group Ltd                  Newstrack Announcements                                     12/9/2011


Chairman's statement

The past 14 month period to 31 March 2011 has seen the Group take a number of significant steps towards a  period of 
sustained  growth, including changes in business strategy, solution development, acquisitions and financing. The Group
has now changed its year end to 31 March.

The Group's principal trading subsidiary Pointon York SIPP Solutions Limited ("PYSS"), provides administration for Self
Invested  Personal Pension Schemes ("SIPPs"). During the period PYSS has continued to invest heavily in improving its
proposition, developing and launching a considerably expanded range of new solutions as extensions of its core fully
flexible SIPP, and now provides a full range of SIPPs. The Corporate SIPP was relaunched on a new technology platform 
in conjunction with Praemium, allowing companies to provide employees at different levels with pension provision 
through one provider. This  solution  is already compliant with the forthcoming rules which will apply when the 
National Employment Savings Trust ("NEST") is introduced from 2012. New products launched in the period include a low-
price e-SIPP utilising our Corporate SIPP technology, a mid-price single investment SIPP and a premium family trust 
arrangement launched in January for very-high net worth members needing a more bespoke arrangement with enhanced tax-
planning capability.

Since the beginning of 2011 PYSS has changed its distribution strategy to seek partnerships with IFA networks and
platforms with a view to providing much greater reach and penetration into the intermediary market place. A number of
agreements are already in place with others in the pipeline.

It is not surprising that the Group's progress has been noticed in the marketplace. As a result, the Board has 
received several confidential approaches and therefore intends to undertake a formal sale process in order to seek 
potential offerors  for the entire issued and to be issued share capital of the Company. An announcement to this 
effect has been made today.

On 31 March PYSS acquired Bridgewater Pension Trustees Limited and Halcyon Financial Services Limited from EFG Private
Bank Limited, adding 571 SIPPs to the existing portfolio. In the year to 31 March 2012 Bridgewater will make a
substantial contribution to Group results. The migration of those SIPP portfolios into our existing operations should
be fully completed by November 2011.

During the period the Group improved its financing situation. Between July and September 2010 the Group issued loan
stock and equity raising gross funds of £775,000. The loan stock is repayable in 2015, meaning that the Group's
financing is now secured on a long term basis. In April 2011 the Group also arranged a new 3 year bank loan to replace
the existing annual revolving credit arrangement, providing longevity of funding.

In the 14 months to 31 March 2011 revenues grew by 27% (a 3% increase on an annualised basis for continuing business)
while operating costs rose by 19% (a 1% reduction on an annualised basis for continuing business), resulting in a 66%
reduction in operating losses. We have continued to work hard to improve service standards throughout the business  and
this  has been reflected in a reduction in complaints. Overall in the period the Group recorded a reduced loss after
tax  of £249,968 (loss per share of 11.6p), compared with an after-tax loss of £371,793 (loss per share of 17.9p) in 
the preceding year.

The Directors look forward to a period of growth for the Group with new income from scaleable, more profitable 
solutions and expect to benefit from enhanced distribution via new partnerships. The acquisition of Bridgewater is 
expected to significantly enhance revenues and  profitability of the Group in the current period and this, together 
with the stability brought by the new financing arrangements, should ensure a solid platform for growth and future 

We have seen the Financial Services Authority becoming more interventionist in the SIPP market and expect that this may
lead to further  opportunities for consolidation of smaller SIPP operators. We have worked hard in  recent years to
ensure  that we are adopting  the  regulations and guidance and we believe that  our propositions deliver customer
expectations in line with the key principle of Treating Customers Fairly ("TCF").

The Group's employees and management have worked very hard to deliver improvements in performance and to launch new
solutions successfully. I would like to thank everyone for their continuing efforts during the period just ended and
look forward to the current year with growing confidence.

Geoffrey Pointon
12 September 2011

Consolidated profit and loss account for the 14 months ended 31 March 2011
                                                                          2011            2010
                                                                         £'000           £'000
Turnover                                                                 3,922           3,090
Administrative expenses                                                 (4,020)         (3,390)
Other operating income                                                       -               8
                                                                         -----           ----- 
Group operating loss being loss on ordinary activities before interest     (98)           (292)
Net interest payable and similar charges                                  (175)            (80)
                                                                         -----           -----                                                                                                
Loss on ordinary activities before taxation                               (273)           (372)
Tax on loss on ordinary activities                                          23               -
                                                                         -----           ----- 
Loss on ordinary activities after taxation and for the financial year     (250)           (372)
                                                                         -----           -----  
                                                                         -----           -----
Loss per share (pence): basic                                            (11.6)p         (17.9)p
                        diluted                                          (11.2)p         (17.9)p

No dividend will be paid in respect of the 14 months to 31 March 2011 (2010: £nil)

Consolidated balance sheet at 31 March 2011
                                                                         2011             2010
                                                                        £'000            £'000
Fixed assets                                                                             
Intangible assets                                                         659              459
Tangible assets                                                           415              510
                                                                        -----            -----   
                                                                        1,075              969
Current assets                                                                           
Debtors                                                                 1,039              567
Cash at bank and in hand                                                  202              114
                                                                        -----            -----    
                                                                        1,241              681
Creditors: amounts falling due within one year                         (2,425)          (2,145)
                                                                        -----            -----    
Net current liabilities                                                (1,184)          (1,464)
                                                                        -----            -----     

Total assets less current liabilities                                    (109)            (495)
Creditors: amounts falling due after more than one year                  (515)             (54)
                                                                        -----            -----   
Net liabilities                                                          (624)            (549)
                                                                        -----            -----    
                                                                        -----            -----   
Capital and reserves                                                                     
Called up share capital                                                   113              105
Warrants in issue                                                          39                -
Share premium account                                                     127                -
Other reserves:                                                                          
   Non Revenue reserve                                                    137              137
Profit and loss account                                                (1,040)            (791)
                                                                         -----            -----    
Equity shareholders' funds                                               (624)            (549)
                                                                        -----            -----     
                                                                        -----            -----   
    1.  The above figures are an abridged version of the Company's audited consolidated accounts which carried an
        unqualified audit report. The auditors have drawn attention by way of emphasis of matter to the assumptions 
        underlying the use of the going concern principle in preparation of these accounts. The financial information 
        included in this document does not comprise statutory accounts within the meaning of s.434 of the Companies 
        Act 2006.
    2.  Full statutory audited accounts are available on the PLUS Markets website and have today been filed with the
        Registrar of Companies.
    3.  The Directors of Pointon York Group Limited accept responsibility for this announcement.
    4.  Loeb Aron & Company Limited is acting as the Company's corporate advisor.

Contact Information

  • Pointon York Group Limited