Preliminary results For the year ended 30 April 2006

1
Preliminary results For the year ended 30 April
2006

• July 2006

2
Presentation team

• Paul Jackson Chief Executive
• Paul Ashton Director

3
Overview - 1

• Vantis provides a broad range of value added
  accountancy,
• advisory and professional services mainly to
  SMEs and higher net worth individuals
• From the founding cornerstone firm turning over
  c.10m at listing on 1 May 2002, Vantis has grown
  organically and through
• acquisitions and recruitment to a turnover of
  71m for 2006
• Full year operating profits increasing from the
  first years (2003)
• c.3.8m to c.12.8m for 2006
• Staff numbers have risen from 152 at listing to
  c.1000 now of
• which c.700 are fee earners
  
• Operating margins have increased consistently
  from 14.8 at listing and are now stabilising at
  18 at 30 April 2006.

Prior to goodwill amortisation, exceptional
items and discounting charges
4
Overview - 2

• Market capitalisation has risen from 26m at
  listing on 1 May 2002 to c.116m
• Vantis eps has grown consistently to 16.9 pence
  per share at 30 April 2006
• Vantis has raised c.9m (net of expenses) since
  listing to support acquisitions and to augment
  working capital
• Established the Vantis model and business plan to
  integrate acquisitions and new recruits
• Established the risk profile of the group
• Vantis is now approximately the 13th largest UK
  accounting and professional services firm
• Member of HLB International, covering c.120
  countries, making it approximately the 14th
  largest international network

Based on Accountancy Age 2006 Top 50 firms
survey Based on IAB 2005 survey
5
Financial highlights Year ended 30 April 2006

• Turnover on continuing operations
  Up 83 to 71m
• Operating profit and margin on continuing
• operations before goodwill amortisation
• and exceptionals Up 97 to
  12.8m at 18 (200513)
• Profit on ordinary activities Up 169 to
  10.7m
• Final dividend proposed Up 22 to 3.3
  pence per share
• Full year dividend proposed Up 23 to
  4.8 pence per share
• Adjusted earnings on continuing operations
  Up 78 to 16.9 pence per share
• Net assets Up 48 to 31.5m
• Total bank debt Up 84 to 31.3m
• Total bank facilities Up 60 to
  33.5m
• Net cash inflow from operating activities
  Up 114 to 11.1m
• Interest cover Static at 7.2 times

6
Profit and loss account

• Year ended
  Year ended
• 30 April 2006 30 April 2005
• 000s 000s
  000s 000s
• Turnover continuing operations 70,706
  38,889
• Trading profit 18, 590
  10,067
• Central overheads
  3,777 2,039
• Plc costs 2,017 5,794
  1,594 3,633
• EBITA 12,796
  6,434
• Exceptional items 4,001
  -
• Discontinuing operations 433 4,434
  - -
• Interest (net) 2,052
  1,001
• Discount finance charge
  74
  170
• Amortisation 1,782 3,908
  1,274 2,445
• Profit before tax 4,454
  3,989

7
Balance sheet

• 30 April 2006
  30
  April 2005
• 000s 000s
  000s 000s
• Fixed assets
• Tangible 3,543 1,988
• Goodwill 38,423
  22,838
• Investment
  13
  5
• 41,979
  24,831
• Current assets 50,043
  29,316
  
• Current liabilities 42,301
  23,977
• Net current assets
  7,742
  5,339
• Total assets less current liabilities
  49,721
  30,170
• Creditors in more than 1 year
  16,747
  8,858

8
Cash flow statement

• 
  
  Year ended Year
  ended
• 
  30
  April 2006 30 April
  2005
• 
  
  000s
  000s
• Cash flow from operating profit 11,063
  5,160
• Non cash items and investment in working capital
  457 821
• of existing business
• Net inflow from operating activities 11,520
  5,981
• Servicing of finance (2,052) (1,001)
• Investment in acquisitions and fixed
  assets (6,706) (8,499)
• Taxation paid (1,124) 8
• Dividend paid (1,760) (1,468)

9
A well balanced business
Percentage of turnover

Core practice
48
49
50
55
52
51
50
62
45
38
Higher margin consultancy
10
Revenue split
At 30 April 2006
At 30 April 2005
Source Company Data (unaudited).
11
The story at April 2006
12
Integration during the year ended 30 April 2006
Example

• Three acquisitions Numerica Group plc, Booth
• Anderson Chester LLP and Rouse Partners
• Overhead reduction
• Implementation of internal controls
• Rationalisation of property
• Rebranding
• Location directors and service line heads
  appointed
• Specialist divisions consolidated
• Adoption of the Vantis strategy, ambition and
• planning
• Adoption of the Vantis model and methods

13
Staff retention

• Reward structures including equity participation
• Dynamic working environment
• Corporate environment
• Focus on fee earning, not administration
• Earn outs locked in
• Career development programmes
• Training programmes

14
Continuing goals

• Increase geographic reach where appropriate
• Acquisition/recruitment of fee portfolios to
  enhance existing successful client service groups
  and ensure the focus on fee earning
• Identify and adhere to the acquisition and
  recruitment criteria
• Continue search for more premium and niche
  products and higher value engagements
• Further develop the marketing of services for
  professionals
• Further strengthening of consultancy divisions
  and teams generally, especially tax and business
  recovery, but also in our corporate finance and
  ifa divisions
• Continue to grow margins where possible
• Continue networking development and the driving
  of organic growth
• Continue to progressively reduce risk and
  increase cash generation whilst sourcing
  defensive growth
• Enhancing shareholder value

15
Future plans

• Invest in the most profitable and successful
  locations
• Invest in the most profitable and successful
  specialist divisions
• Acquire successful and complementary businesses
• Continue improvements to cash generation
• Continue to evolve reward structures from earners
  to shareholders. Share ownership to be a
  requirement of all leaders in their rewards
• Continue to monitor the balance between debt and
  equity funding
• Continue our existing successful strategy

16
Appendices
1. Specialist divisions 2. Growth drivers
3. Business drivers 4. Geographic spread
5. Helping at all business stages
17
Appendix 1Specialist divisions

• Tax consultancy in every important specialism
• Comprehensive corporate finance services
• Specialist customs duty advisory and recovery
• Business recovery and turnaround restructuring
• Personal insolvency and the iva sector
• Management consultancy
• Sports and entertainment consultancy
• Financial services and wealth management
• Business outsource
• Forensic accounting and dispute resolution

18
Appendix 2Growth drivers

• Satisfy the growing appetite of SMEs
  requirements for expansion and growth
• Growing need for specialist best advice
• Weakness of the partnership model
• Expansion into higher margin, higher value added
  services
• Growing ability to compete for larger tenders
• Continuing growth of core accountancy services
  and products
• Continuing to acquire businesses and recruit new
  teams to complement our existing resources and to
  add new skills
• Acquisition opportunities from a fragmented
  market
• Vantis proven scalable business model

19
Appendix 3Business drivers

• Acquisition Specialist
• Team Recruitment
• accountancy businesses
• specialist businesses
• new team members

• Integration
• economies of scale
• cross selling
• enhanced earnings

• Focus on Value Added Services
• new products
• new services to acquired clients
• premium services

• Organic Growth
• networking
• new clients
• new transactions

20
Appendix 4Geographic spread of professional
services now and in prospect
Now
Prospects later

• Beaconsfield
• Birmingham
• Bristol
• Darlington
• Epsom
• Hartlepool
• Hornchurch
• Jersey
• Leicester
• London (Head Office)
• Loughton
• Manchester
• Marlow
• Middlesbrough
• St Albans
• Sidcup
• Tonbridge
• Wokingham
• Worthing

• Edinburgh
• Glasgow
• Newcastle
• Southampton/Portsmouth

21
Appendix 5Helping at all business stages

• Optimising Growth Profitability
• Management of business drivers KPIs
• Optimising financial management
• Optimising tax efficiency
• Re-financing
• Finding and buying businesses and handling joint
  ventures
• FD recruitment
• Management incentive schemes
• Employees benefit consultancy
• Personal financial planning.

• Making the Transition
• Business and personal strategy
• Optimising financial processes controls
• Managing IR, VAT, Companies House compliance
• Raising funds for growth
• Outsourcing accounting services
• Financial team recruitment training
• Asset finance solutions

• Where Next?
• Strategic review
• Acquisitions and merger advice
• Preparation for listing
• Inheritance preparations and tax planning
• succession and exit planning

• Starting Out
• Business financial planning
• Establishing sound financial processes and
  controls
• Early tax planning
• Setting up IR VAT practices
• Company formation
• HR compliance advice support

• Exiting
• Selling your business maximising the value
• MBOs MBIs
• Personal financial management, pensions
  investment counselling
• Tax management

Start-up
Growth
Maturity
22
Legal Notice
The information given in this presentation is
based upon sources we believe to be reliable, but
its accuracy cannot be guaranteed. The
information does not constitute advice or a
personal recommendation and you are recommended
to seek advice concerning suitability from your
investment advisor. Charles Stanley Co. Ltd.
and connected companies, their directors,
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may have positions in the securities mentioned.
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is not necessarily a guide to the future and that
the price of shares, and the income derived from
them, may fall as well as rise and the amount
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