OPD Group Losses Widen
OPD Group Losses Widen
OPD Group plc, has, announces its preliminary results for the year to 31 December 2009
Peter Hearn - Chairman's Statement . In December 2009 the Group announced that it intended to sell 50.5% of its interest in International Resources Group ('Odgers') to a company controlled by the management of Odgers. Odgers, for the purpose of the sale was valued at 16 million and in addition a pre-completion dividend of 2 million was paid to the Group. This disposal completed on 8 January 2010 and within these results Odgers has been classified as a discontinuing operation.
Excluding the results of Odgers, the operating profits before non-recurring items decreased to 403,000 from 3.5 million in 2008. Odgers generated a profit after tax of 1.3 million (2008: 4.7 million) and before an impairment charge of 16.8 million was incurred in respect of goodwill arising from its acquisition.
The Group incurred a loss after tax of 17.6 million (2008: loss 2.3 million) and the basic loss per share was 66.5 pence (2008: loss 8.9 pence).
Net fee income from the Odgers business decreased by 18% to 44.6 million from 54.3 million in 2008. The Group's other businesses also experienced a decline in income with PSD's net fee income falling by 39% from 29.3 million to 18.0 million and Hoggett Bowers by 37% from 7.3 million to 4.6 million.
Net Fee Income ('NFI')
Our net fee income by brand is set out below:
Year to 31 December 2009
Year to 31 December 2008
PSD (including Portfolio)
The cost base of both the continuing group and Odgers were reduced during 2009 and both businesses are currently trading profitably.
The Board is not proposing to pay a final dividend for 2009 (2008: Nil pence) and no interim dividend was paid for 2009 (October 2008: 3 pence). It is unlikely that any dividend will be paid in respect of 2010.
The OPD Board is currently discussing with the senior management of PSD and Hoggett Bowers the possibility of the management team acquiring a significant holding in these businesses. A further announcement will be made once these discussions have been concluded.
On 17 December 2009 the Board made an announcement in respect of the company's non-compliance with the requirement of Listing Rule 9.2.15 that at least 25 per cent. of a listed company's share capital must be held in public hands. The Company remains in breach of this requirement as currently approximately 68 per cent of the company's share capital is held by Offerco and its related party and 25 per cent. by funds controlled by Schroders. The Board has held discussion with relevant parties to seek a resolution to the breach of Rule 9.2.15 but these are so far inconclusive.