text:
Skip to comments.Fast and Furious Noose Tightens Around Justice Department
Posted on 06/29/2012 3:33:52 PM PDT by jazusamo
Explosive reports are now surfacing that Justice Department officials clearly knew about the Fast and Furious gunwalking tactic, in which the federal government actually, a task force comprised of Justice Department agencies and led by ATF, a Justice Department agency allowed upwards of 1400 illegally purchased firearms to be routed to violent Mexican drug gangs. This recklessness led, quite foreseeably, to the murder of at least one federal agent, Border Patrol Agent Brian Terry, and probably a second, Homeland Security Agent Jaime Zapata. There are reportedly also scores of victims in Mexico.
The reports, including this one from Stephen Dinan of the Washington Times, explain that this gunwalking information was contained in applications the Justice Department made to the court for wiretapping authorization beginning no later than March 2010 (i.e., over eight months before Agent Terry was killed). Readers of Ordered Liberty will not be surprised to hear this. As I explained in a post last week:
[T]here were wiretaps in the F&F investigation, and when the government seeks a wiretap, federal law requires it to explain what investigative tactics have been used in the case, an explanation that is vetted by top DOJ officials because the government cannot apply for the wiretap without the approval of the attorney general or his designee (a high Justice Department official) it seems highly unlikely, assuming DOJ complied with wiretap law, that top Justice Department officials did not know about the gun-walking tactic until late in the game.
In fact, those who have been following the story here and elsewhere may recall that I started urging the wiretap applications as likely a fruitful source of evidence of the Justice Departments awareness of gunwalking nearly a year ago (see, e.g.,here and here). The required disclosures about investigative techniques are undoubtedly the reason why the Justice Department has stonewalled House Oversight Committee Chairman Darrell Issas demands that the wiretap applications be turned over.
Issa, however, has whistleblower sources inside DOJ. Hes thus been supplied with at least some of the application materials. He has now made some of that public. Though at least some of the documents are sealed, he published some of their contents during the House debate over the vote to hold Attorney General Eric Holder in contempt. That means he acted under the protection of the Constitutions Speech and Debate Clause, which immunizes members of Congress for statements and acts connected to legislative activity.
The attorney general, of course, has adamantly denied that he and other top Obama DOJ officials were aware of the use of gunwalking in the Fast and Furious operation until weeks after Agent Terrys murder. Indeed, in a letter to the Committee in March 2011 (about three months after Agent Terrys murder), the Justice Department falsely denied that gunwalking had even been used. Holder subsequently retracted that falsehood. Moreover, as the public began to be educated about the federal laws requirements for wiretapping applications, the Justice Department changed its story on that, too. It began claiming that, while it is true the wiretap applications were reviewed by DOJs office of enforcement operations, the Departments top political appointees only perused summaries of the applications which, it was implied, did not allude to gunwalking.
Having worked on and supervised numerous wiretapping investigations in eighteen years as a federal prosecutor in New York, I found these claims implausible. In my experience, the Justice Department reviews wiretap applications from the district U.S. attorneys offices extremely carefully Justice is mortally embarrassed if wiretap evidence gets suppressed due to misstatements, errors, or omissions in applications that the Justice Department headquarters has reviewed. Further, because wiretaps are resource-intensive and thus expensive and burdensome to conduct, they tend to be approved only in very important cases the cases that get a lot of DOJ attention. Finally, Fast & Furious was an OCDETF case: the investigation qualified for extraordinary funding and resources under Justices Organized Crime Drug Enforcement Task Force a coveted designation reserved for the Departments most significant organized crime cases, the cases DOJ tracks most closely. (See here.) It has been inconceivable to me that top DOJ officials would have been unaware of what was happening in Fast and Furious.
In any event, Chairman Issas disclosures, as reported by Mr. Dinan, appear to put the lie to much of what Holder and his minions have been claiming. That includes the bit about summaries; quite apart from the extreme unlikelihood that wiretap application summaries were top officials only source for Fast and Furious information, it appears that even the summaries describe the gunwalking tactic:
The summary of a March 2010 wiretap application shows that federal agents repeatedly lost track of guns they knew were being trafficked back to cartels in Mexico a violation of Justice Department policy that should have raised red flags with top department officials who signed off on the wiretaps, said Mr. Issa, California Republican and chairman of the oversight committee that is looking into the operation. Mr. Issa introduced the summary as part of the Houses debate Thursday before lawmakers held a historic vote to to hold Attorney General Eric H. Holder Jr. in contempt of Congress.
Mr. Issa contends the wiretap application contradicts Mr. Holders claim that nothing in there would have shown gunwalking was going on. The affidavit explicitly describes the most controversial tactic of all: abandoning surveillance of known straw purchasers, resulting in the failure to interdict arms, Mr. Issa said in a letter he placed in the Congressional Record. It appears on pages H4409 through H4411 of Thursdays official chronicle of its debates.
[Yes, that's right: All of these remarkable revelations happened yesterday, but we are just waking up to them now because, as observed here at Ordered Liberty yesterday, Republican leadership chose to go forward with yesterday's historic contempt finding -- the first ever against a sitting cabinet member -- on the day of the Obamacare ruling, when it was sure to get close to zero attention. Nice work, guys.]
Issas revelations, coupled with the contempt holding, will ratchet up the pressure on the Obama administration to quit stonewalling. The committee has been shown only a small fraction of the documents turned over to an internal DOJ inspector general. And, as noted here yesterday, DOJ officials this week after repeatedly insisting they had already given Issa all relevant information offered to show the committee more materials, but only on the absurd conditions that investigators not make copies and not take notes, an offer Issa wisely refused.
Also pressing is the question of why President Obama invoked executive privilege to obstruct the investigation if, as he insists, he had no knowledge of Fast and Furious until after Holder shut it down following Agent Terrys death. It is true, of course, that if new disclosures confirm that the attorney general has been systematically misleading Congress, this will be very damaging to the president who chose Holder and has stood by him during this scandal. But that is nothing compared to the firestorm that would flow from any indications that the White House was clued in to Fast & Furious while the investigation was underway.
What did 0bama know and when did he know it?
He knew he was a moslim usurper and he knew it before he was mis-sworn in by Roberts.
With all due respect my friend; SO WHAT??? The House voted to hold Eric Holder in Contempt of Congress. And........ what the hell happened? NOTHING.... N-O-T-H-I-N-G.... NOTHING!!! He is sitting behind his big desk in his big office laughing at those naive Republicans. The bastards got away with it because we have a crybaby Speaker of the House with the 'nads of a gnat.
They look like criminals.
It's clear Holder has lied and it looks like Chairman Issa has the evidence to prove it,
I also doubt he regrets anything. He probably believes he's above living in a jail cell. Top bunk would then be suitable for him in prison.
Quote without credit: To regret something is to hang yourself with your own noose. Mental suicide.
"What did 0bama know and when did he know it?"
From effing jump.
And if he's reelected...or elections are cancelled...he's coming for 2A.
In my view both Obama and Holder knew about F&F from the start but I doubt it'll be proved.
Molon Labe.
Amen to that...Both he and his boss don't regret a thing.
A clearly racist 'noose' headline....ping.
This is going on his "permanent record".
"With all due respect my friend; SO WHAT??? "
So What? While at the end of the day, you may well correct, the citation was voted yesterday! Just what, with these Marxists in charge, did you think would happen over night? Holder calling up Issa and saying please Massa, don be hittn me no mo? Boner allowed Issa to light the fuse on this issue, and now he has to go along with Issa or be laughed out of the Speaker's Chair. No one, and certainly not Issa, knew this wasn't going to be easy, so I'd say let's give the Pubbies a few days to see where they can take this. Issa, in all probability, has more stuff on Holder. Let's see what comes out next.
The next step may be for the House to hire a special prosecutor to pursue a civil suit in the courts, as was done against Nixon, where the court ordered the administration to release tapes and documents it had tried to protect under executive privilege.
This all would take us beyond the election but it can still be played out.
The next step may be for the House to hire a special prosecutor to pursue a civil suit in the courts, as was done against Nixon, where the court ordered the administration to release tapes and documents it had tried to protect under executive privilege.
This all would take us beyond the election but it can still be played out.
So Barry...that's somewhat unexpected....were you lying before or are you lying now...?
And Scribe....kindly record our request to the Chief Interrogator to measure young Barry here for a stay in the dungeons......I think most of our implements are on the large size.....
When you feel discourage, check out this video.
Congressman Trey Gowdy giving his final statement before the contempt vote.
We need to be thankful Issa and Gowdy are speaking the truth.
Without the MSM there is NO issue
They control what the sheeple see and hear and believe
Thanks for linking that, Atlantan.
Absolutely outstanding presentation by Congressman Trey Gowdy!!!
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text:
Hogg Robinson
HOGG ROBINSON | Half Yearly Report | RNS
30 November 2011
Hogg Robinson Group plc
('HRG', 'the Company' or 'the Group')
Results for the six months ended 30 September 2011
Strong first-half results
Continuing good prospects
Summary of results
Six months ended 30 September
2011 2010 Change
Revenue 186.8m 169.2m +10%
Underlying earnings (1)
- Operating profit 23.4m 19.5m +20%
- Operating profit margin 12.5% 11.5% +1.0 pp
- Profit before tax 18.7m 15.3m +22%
- Earnings per share 4.1p 3.3p +24%
Reported earnings
- Operating profit 21.3m 17.5m +22%
- Profit before tax 16.6m 13.3m +25%
- Earnings per share 3.6p 2.8p +29%
Interim dividend per share 0.6p 0.5p +20%
Net debt 68.9m 85.8m -16.9m
Free cash outflow (2) (0.7m) (6.1m) +5.4m
Financial Highlights
Revenue up 10% to 187m, up 6% at constant currency (2010: up 6% at constant
currency) with growth across all travel regions and Spendvision
Underlying operating profit margin up from 11.5% to 12.5%
Profitability up across all travel regions and Spendvision
Cost management demonstrates continued flexibility
Underlying EPS up by 24% to 4.1p
Free cash flow (2) improvement of 5.4m for the six months
Net debt down 16.9m from September 2010 at 68.9m; equivalent to 1.2x EBITDA
(3) (2010: 1.6x)
New UK triennial pension valuation finalised with a modest increase in cash
Interim dividend up 20% to 0.6p per share (2010: 0.5p per share)
Full-year dividend to be at least 1.8p per share (+20% over last year)
Operational Highlights
Client travel transaction activity up 7% (2010: up 18%)
Client travel spend up 13%, up 9% at constant currency (2010: up 18% at
constant currency)
Client retention rate remains above 90%
HRG enters exploratory discussions with American Airlines on 'direct connect'
New business wins including AIG, Allianz, CGI, CSL, MMG and Posten Norge
New sales pipeline provides further support for growth
David Radcliffe, Chief Executive of Hogg Robinson Group plc, said:
"The strong first-half performance continues the momentum we reported earlier
in the year. This steady and consistent growth serves to highlight the
strength of our business model, which is underpinned by our ability to help
clients maximise the value of their corporate travel budgets.
"Our strong cash flow has reduced net debt over the last 12 months and recently
we have reached a positive agreement with the UK pension trustees which
provides greater certainty regarding funding.
"We remain mindful of prevailing macroeconomic uncertainty but have confidence
that our compelling customer proposition, strong foundations and momentum will
see HRG deliver a full year in line with expectations."
(1) Before amortisation of acquired intangibles
(2) Free cash flow is the change in net debt before acquisitions and disposals,
Employee Benefits Trust purchases, dividends and the impact of foreign exchange
(3) Earnings before interest, tax, depreciation and amortisation (EBITDA)
For further information contact:
Hogg Robinson Group +44 (0)1256 312 600
David Radcliffe, Chief Executive
Julian Steadman, Group Finance Director
Angus Prentice, Head of Investor Relations
Tulchan Communications +44 (0)20 7353 4200
David Allchurch
Stephen Malthouse
Martin Robinson
A briefing by conference call for analysts and institutional investors will be
held at 0900h GMT today. For conference call details, please contact Tulchan
Communications on +44 (0)20 7353 4200. The presentation slides used in this
briefing will be available at http://investors.hoggrobinsongroup.com/hrg/en/
investor-relations/presentation from 0845h today.
A replay recording of the conference call will be available via audio webcast
and podcast at http://investors.hoggrobinsongroup.com/hrg/en/investor-relations
/presentation later today.
Notes to Editors
Hogg Robinson Group plc (HRG) is the award-winning international corporate
services company. Established in 1845 and headquartered in Basingstoke,
Hampshire, UK, HRG specialises in travel, expense and data management
underpinned by proprietary technology solutions and products. With a worldwide
network that comprises over 120 countries, HRG provides unparalleled local
knowledge and global expertise in North America, Europe, Asia Pacific, Africa,
Latin America and MEWA.
This announcement may contain forward-looking statements with respect to
certain of the plans and current goals and expectations relating to the future
financial conditions, business performance and results of Hogg Robinson Group
Plc (HRG). By their nature, all forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances that are
beyond the control of HRG, including amongst other things, HRG's future
profitability, competition with the markets in which the Company operates and
its ability to retain existing clients and win new clients, changes in economic
conditions generally or in the travel and airline sectors, terrorist and
geopolitical events, legislative and regulatory changes, the ability of its
owned and licensed technology to continue to service developing demands,
changes in taxation regimes, exchange rate fluctuations, and volatility in the
Company's share price. As a result, HRG's actual future financial condition,
business performance and results may differ materially from the plans, goals
and expectations expressed or implied in these forward-looking statements. HRG
undertakes no obligation to publicly update or revise forward-looking
statements, except as may be required by applicable law and regulation
(including the Listing Rules). No statement in this announcement is intended
to be a profit forecast or be relied upon as a guide to future performance.
Chief Executive's Statement
I am pleased to report that HRG has produced another strong set of results.
The good momentum that we achieved last financial year has continued despite
the uncertain macroeconomic conditions. We have delivered steady and
consistent growth, providing further testament to the strength of the Group's
business model and strategy. This good performance is even more creditable
given the tougher year-on-year comparatives.
The corporate travel market has continued to recover from the effects of the
recession. Following growth of 8% in 2010, industry forecasts are for a
similar growth rate in 2011. We have seen our own business expand during the
first six months of our financial year, with client spend increasing by 13%.
As our interim results indicate, our clients are travelling more frequently and
spending more on their travel than they did a year ago. However, their focus
remains one of cost consciousness balanced with a stated aim of maximising the
overall value of their travel-related expenditure. With this has come a more
mandatory approach to travel policy compliance and a geographic consolidation
of service. The application of HRG's proprietary technology and its ease of
connectivity with third-party systems continues to play an important role here,
and the increasing use of lower-cost online self-booking tools is one example
of how clients are gaining better value in their travel spend.
We have maintained our client retention rate of over 90%. Amongst several new
clients secured during the first half were AIG, Allianz, CGI, CSL, MMG and
Posten Norge.
The breadth of the Group's service offering has widened as it has grown in
recent years. HRG is an international corporate services company specialising
in travel, expense and data management underpinned by proprietary technology
solutions and products. We remain focused on delivering value through
excellent service that is tailored to the specific needs of each client. This
approach enforces our reputation as a leading international corporate services
company and will help sustain a business which delivers value to all
Financial results
Revenue of 186.8m was up 10% as reported, or up 6% at constant exchange
rates. Underlying operating profit, which is stated before charging the
amortisation of acquired intangibles, rose by 20% (3.9m) to 23.4m, showing a
margin improvement from 11.5% to 12.5% as a result of our continued focus on
operational efficiency and cost control. Favourable movements in exchange
rates contributed 0.8m to the operating profit improvement. Underlying profit
before tax was up by 22% to 18.7m and underlying EPS increased by 24% to
After reflecting the amortisation of acquired intangibles, reported operating
profit was higher by 22% at 21.3m, profit before tax was up by 25% to 16.6m
and EPS rose by 29% from 2.8p to 3.6p.
We continue to demonstrate strong cash flow generation. Net debt of 68.9m was
16.9m lower than September 2010 and represented 1.2x EBITDA for the last 12
months. This improvement has been achieved at the same time as reducing our
active working capital programme by 7.2m since September 2010.
We have noted in the past that inflation and discount rates are volatile and
that the current low interest rate environment increases the accounting
valuation of pension liabilities, even in our principal UK scheme which has
been closed to new entrants for several years and has benefit caps in place.
On an accounting basis, the Group-wide pre-tax pension deficits have increased
by 30.1m since the year end to 144.8m as the impact of a further reduction in
the discount rate and weak investment performance was only partially offset by
inflation rate changes. Importantly, the actuary for the principal UK scheme
estimates that the actuarial deficit at March 2011 was 21.5m lower than the
equivalent accounting basis and, therefore, in our latest triennial valuation
we have agreed a new ten-year recovery plan with the Trustees with annual
deficit reduction payments increasing by 0.7m to 7.3m in the current
financial year and in line with RPI thereafter. This relatively small increase
in cash contributions provides greater certainty for the funding requirements
whilst allowing HRG to retain balance sheet flexibility.
In line with our progressive dividend policy and in recognition of our
continued strong performance and improved financial position, the Board has
declared an interim dividend of 0.6p per share, up 20% on the interim payout a
year ago. This dividend will be paid on 5 January 2012 to shareholders on the
register at the close of business on 9 December 2011. We expect the full-year
dividend to be at least 1.8p per share which would represent a 20% increase
over the 1.5p per share paid last year.
Whilst we are mindful of the prevailing economic uncertainty, the Board is
confident that HRG will continue to progress and deliver profit before tax for
the full year in line with expectations.
David Radcliffe
Chief Executive
Operational Review
Market overview
The recovery in corporate travel which began in late calendar 2009 continued
during the first six months of our financial year. As we have stated before,
HRG's fee-based business model is not as cyclical as that of suppliers such as
airlines and hotel groups.
In its latest forecast, the IMF projects that global growth will be about 4% in
2011 and 2012, down from 5% in 2010, and notes that the outlook is for
continuing, but bumpy, expansion.
According to IATA, air travel expanded more strongly than expected during the
first half of this calendar year and airlines managed to restore asset
utilisation during the second quarter. For the six months to the end of
September, IATA figures show that the overall growth rate in passenger traffic,
which includes leisure travel, was 7%. HRG's client transactions were up 7%
during the period. IATA's forward view shows a weaker picture than this.
The hotel industry has shown greater robustness during the first six months of
our financial year, according to data published by STR Global. Globally,
year-on-year growth in monthly revenue per available room averaged 9% during
the period, similar to the growth of 10% in the same period last year.
Generally, room rates in Europe have risen sharply since last year while, in
contrast, those in the Middle East and Africa have fallen.
Following growth of 8% in 2010, the Global Business Travel Association
forecasts that global spending on corporate travel will grow by 9% in calendar
2011, while the World Travel & Tourism Council forecasts a 6% increase for the
same period.
IATA currently forecasts airline industry profitability of $6.9 billion in 2011
(2010: $16 billion) reducing to $4.9 billion in 2012.
Client activity
In general, business confidence has held up well across our global and
diversified portfolio of clients. While there remains a keen focus on
optimising travel expenditure and reducing costs, a majority of our clients are
keen to use our value-adding services to manage their total travel spend and
HRG continues to play a pivotal role in helping them achieve these objectives.
Client spend rose by 13%, or 9% at constant currency, during the first six
months of the financial year, while transaction activity rose by 7%. In the
prior year, spend rose by 22% (18% at constant currency) and transactions rose
by 18%.
There is increasing evidence of clients seeking to consolidate their travel
management through fewer locations. This is often part of a general move by
companies to move to a more centralised model for all outsourced services. In
the case of travel management, this trend is increasing as companies look for
greater policy compliance, security monitoring, consistency of service and
economies of scale. We anticipated this trend and continue to develop our
multi-country service capability through fewer locations.
Risk and security advice has also become a priority for many of our clients,
especially since the earthquakes and tsunami in Asia Pacific and during the
period of ongoing civil unrest in certain countries in the Middle East and
North Africa region.
Costs associated with corporate meetings have often been overlooked and we are
now helping our clients gain better control of this expenditure.
Demand for relevant data and analysis to manage these issues has increased.
These trends represent additional revenue opportunities for HRG and enable us
to demonstrate the true breadth of the Group's service offering using HRG's
proprietary tools and solutions.
HRG's business model is centred on providing excellent bespoke travel
management solutions to each of its clients. Our value proposition, delivered
through superior client service, has once again been rewarded in terms of
client retention and new business as our client retention rate remained above
We are very focused on our clients and value all of our relationships. One of
our key assets is the diversification of our client portfolio and the fact that
no one client has a material effect on our financial performance. Inevitably,
we lose some clients each year but we continue to attract new clients and
expand our relationships with existing clients.
We were pleased to welcome several new clients during the period including AIG,
Allianz, CGI, CSL, MMG and Posten Norge. These new client wins have added to
the great diversity of HRG's client base, in terms of both sector and
geography. In addition, we secured expanded contracts with existing clients
such as BG Group, Polarcus and Sweco. Notable amongst many clients renewing
their contracts with HRG in the first half were ABB, Agilent, Bloomberg, Ergon
Energy, Liebherr, Timberland, Weatherford and Wells Fargo. Earlier this month,
we were also awarded Lot 1 of the UK Central Government business which
represents those departments with predominance in international travel. This
renewal of our existing business also brings four new Government departments.
Corporate Travel Management
Six months ended 30 September 2011 2010 Change
Revenue 125.1m 115.1m +8.7%
Operating profit 13.4m 12.1m +10.7%
Underlying operating profit (1) 15.0m 13.6m +10.3%
Underlying margin (1) 12.0% 11.8% +0.2 pp
(1) Before amortisation of acquired intangibles
Revenue was up by 3.4% at constant currency. Underlying operating profit rose
by 1.4m, including a 0.7m benefit from currency movements. Client travel
spend rose by 6% year-on-year in real terms and travel activity was up 4%.
Our business in Europe returned another good set of results with strong
performances in each of our key businesses in the UK, Germany and Switzerland.
Our continuing commitment to improve efficiency has enabled the uplift in
revenue to help improve our operating margin.
We continue to rationalise our service network in Europe to focus, where
appropriate, on fewer service points or strategic hubs, and to seek further
service and cost efficiencies without compromising the excellent service
quality that is core to our business. Our investment in online self booking
offers scope for further efficiency.
In the UK, overall client transaction activity and spending was broadly
unchanged as we focused on delivering excellent service for our clients.
Client activity and spend rose sharply in Germany during the period, driven by
existing clients and Volkswagen, a major new client that commenced trading with
us in October 2010. HRG's sports-related business performed well against a
prior year that benefitted from the success of the national team in the
football World Cup and the Bundesliga teams in the Champions league.
Our business in Switzerland returned a typically robust performance, with a
majority of existing clients increasing their activity and spend. A key
development was the initiation of service for new client Novartis in June 2010.
North America
Six months ended 30 September 2011 2010 Change
Revenue 39.0m 38.0m +2.6%
Operating profit 6.4m 5.2m +23.1%
Underlying operating profit (1) 6.8m 5.6m +21.4%
Underlying margin (1) 17.4% 14.7% +2.7 pp
(1) Before amortisation of acquired intangibles
Revenue was up by 4.7% at constant currency. Underlying operating profit rose
by 1.2m with little currency impact. Underlying operating profit margin
showed strong improvement, up from 14.7% to 17.4%, with client spend up by 8%
in real terms and activity up by 6%.
Our business in North America performed steadily during the first half, with
top-line growth resulting from increased client activity and the provision of
additional travel management products and services to existing clients.
Meetings management is one example of a specialist area that is gaining
popularity with clients in this region, particularly with those with limited
internal resource. Our online self-booking solutions, using HRG's proprietary
technology or third-party booking tools, continue to prove attractive and
account for more than half of all client air transactions.
Our loyalty business in Canada, which manages the redemption of credit card
loyalty points programmes, continued to perform well. This business is
currently being restructured to take account of a significant move into an
online environment in cooperation with another supplier. We have recently
entered the loyalty market in the USA with new client Miles and More.
The North American travel market remains very competitive and we are continuing
to look for additional productivity opportunities to mitigate pressure on
margins. Our ongoing investment in efficient systems is enabling us to handle
high volumes of lower-priced transactions while continuing to grow our
operating margin.
Asia Pacific
Six months ended 30 September 2011 2010 Change
Revenue 15.6m 10.1m +54.5%
Operating profit / (loss) 0.7m (0.1m) +0.8m
Underlying operating profit / (loss) (1) 0.7m (0.1m) +0.8m
Underlying margin (1) 4.5% (1.0%) +5.5%
(1) Before amortisation of acquired intangibles
Revenue was up by 42% at constant currency with good growth across the region
while underlying operating margin climbed 5.5% into positive territory. Client
travel spend rose by 38% year-on-year in real terms and activity was up 49%.
Growth in Australia has been fuelled in recent years by the boom in its
resources sector with strong demand coming from the emerging economies of China
and India. Our business performed well during the period as we expanded our
service to existing clients and won several new clients. As in other parts of
the world, we are seeing a desire for more detailed data and analysis and this
is offering scope for additional revenue. Self booking of travel now accounts
for more than 50% of all bookings, and we continue to refine our service
configurations to take advantage of the opportunities that this trend offers.
Singapore has shown strong recovery in corporate travel since the end of the
global recession, with clients in the financial sectors leading the way. With
Singapore a natural key hub for client travel consolidation in the region, we
opened a regional after-hours service during the period. We also expanded our
events and meetings service to cope with a rise in demand.
Our joint ventures in China and Hong Kong also performed strongly benefiting
from a background of good economic growth. As associates, their results are
not included in the table above.
Six months ended 30 September 2011 2010 Change
Revenue 7.1m 6.0m +18.3%
Operating profit 0.8m 0.3m +166.7%
Underlying operating profit (1) 0.9m 0.4m +125.0%
Underlying margin (1) 12.7% 6.7% +6.0 pp
(1) Before amortisation of acquired intangibles
Revenue was up 16.6% at constant currency, largely driven by increased business
with clients in the banking sector. Underlying operating profit rose by 0.5m,
aided by 0.1m impact from currency movements. The sharp rise in underlying
margin is encouraging and has come as a result of much sharper focus within the
Spendvision is a leading innovator in the development and support of
transaction management solutions, including end-to-end expense management and
payables automation. The online platform makes it easy for companies to
capture, pay for, manage and understand all their corporate transactions,
giving complete control over spend and increased cost efficiency. It also
automates expense claims processing for employees. The solution is available
to corporate clients directly and through banking partners. Spendvision
handles over 100 million transactions a year and its platform is accessed by
users in nearly 130 countries and is available in 16 languages.
The uptake of the Visa IntelliLink Spend Management solution, a white-label
version of the Spendvision platform provided through an alliance with Visa, has
been a major focus during the period with 65 issuers signed up for the
product. Spendvision has provided consultative support to assist Visa with the
roll-out to issuers and their customers.
Spendvision has a strong pipeline of new business opportunities, particularly
in the banking sector through white-label offerings. As part of an end-to-end
travel management and expenses solution, we see good opportunities for
contactless payments and eMoney, together with our payables financing
The thirst for more and more information delivered in a convenient and timely
manner shows little sign of being quenched in the area of corporate travel as
in any other part of corporate life. Both travel managers and travellers
continue to seek more relevant information delivered faster, and the phenomenal
growth of smartphone usage, particularly in the corporate environment, is
testament to this trend. Our clients' dependence on HRG's technology was
heightened during the recession as they sought to manage their expenditure, and
we have seen many of the practices adopted during that period retained as
conditions have improved. HRG's technology is flexible and independent, and
focused on the needs of our clients. It is our ability to develop and adapt
our technology to changes in client requirements that is one of the key
attractions of our technology offering.
During the first half of the year, we released upgrades to several of our
technology products. HRG OnlineTM, our in-house developed online booking tool,
was enhanced with many client-driven new features and further integration.
This integration includes access to additional content from low-cost carriers
and high-speed rail providers through the new Travelport Universal application
programming interface as a complement to its core GDS content. The latest
version of HRG i-SuiteTM, our online portal offering clients access to both HRG
and third-party products, enables users within a company to share and write
reviews on their hotel stay with this social content only available to fellow
Provision of travel information and functionality via smartphone mobile devices
continued during the period. Pilot testing of TripCase, a mobile itinerary
management application developed through our partnership with Sabre Travel
Network, was extended to include clients in Australia and Germany in addition
to those in the UK. A version for Sabre and Amadeus is being developed.
One of the important debates in the travel industry is that of 'direct
connect', whereby an airline sells its inventory directly rather than via a
global distribution system. HRG's systems capability gives us an important
role in that debate. In August, American Airlines and HRG announced an
agreement to explore a long-term arrangement for the benefit of their corporate
clients, in which HRG would receive guaranteed direct long-term access to
American Airlines's fares, schedules, and customised travel products and
services. At this point, these are exploratory discussions.
Technology is a key element of our strategy and we continue to develop products
and processes that best serve the needs of our clients and HRG itself. We
believe HRG's technology is best in class amongst the global travel management
Additional Financial Disclosures
Reported revenue increased by 10.4% to 186.8m, comprised of an increase of
6.4% at constant exchange rates and an increase of 4.0% from favourable
currency movements.
Revenue per Employee
Reported revenue per employee increased by 5.2%, from 32.6k to 34.3k. At
constant exchange rates, the increase was 1.5%.
Operating expenses
Reported operating expenses increased by 9.1% to 165.5m.
Underlying operating expenses, which are before amortisation of acquired
intangibles and exceptional items, increased by 9.2% from 149.7m to 163.4m,
or by 5.2% at constant exchange rates. The 5.2% increase comprised of a 7.9%
increase for staff costs and a 0.2% decrease for other expenses; the increase
in staff costs reflects an increase of 5.1% in staff numbers and higher average
Underlying operating profit
Underlying operating profit, which is before amortisation of acquired
intangibles, increased by 20% from 19.5m to 23.4m, including a benefit of
0.8m from favourable currency movements. The underlying operating profit
margin, which has not been materially affected by currency movements, increased
from 11.5% to 12.5%.
Exceptional items
There were no exceptional items reported in the current or prior period income
Net finance costs
Net finance costs increased from 4.3m to 5.1m, as a result of a refinancing
of the Group's credit facilities in November 2010. Higher lenders' margins
contributed to the increase of 1.9m in net external interest costs, partly
offset by a return to normal amortisation of bank fees following the
accelerated amortisation in the prior year ahead of the refinancing. The IAS
19 pension charge, which is based on the 31 March position, decreased by 0.7m.
The tax charge of 5.0m for the current period represents an effective tax rate
of 30% compared to an effective tax rate of 31% last year, including a 0.1m
charge relating to the impact of a reduction in the UK corporation tax rate
from 26% to 25%. There was an additional charge of 1.3m in the Consolidated
Statement of Comprehensive Income in respect of the impact of this UK
corporation tax rate change on deferred tax assets. We anticipate an effective
tax rate for the full year of approximately 30%.
Cash flow
Free cash outflow, which is the change in net debt before acquisitions and
disposals, dividends and the impact of foreign exchange movements on net debt
balances, was 0.7m and represented an improvement of 5.4m from the prior
The normal seasonal cash outflow from working capital improved by 3.3m over
the prior year. This improvement is despite 3.4m of lower cash flow in the
current year from the active working capital management programme described
below. The cash outflow related to borrowings was 3.4m (2010: 1.4m). Tax
paid in cash was 2.3m (2010: 2.3m) and capital expenditure, which is
primarily internal software development and office equipment, was 5.3m (2010:
3.9m). Cash costs for additional pension funding was 3.1m (2010: 3.0m).
In addition to free cash flow, the other major cash flow items are related to
dividends paid to shareholders during the period of 2.8m (2010: 2.4m) in
respect of the year ended March 2011 and share purchases made by the Employee
Benefits Trust of 2.4m (2010: nil).
Funding and net debt
The Group completed the refinancing of its 220m committed credit facilities in
November 2010. The principal borrowing is a 190m multi-currency revolving
credit facility (RCF) that is committed until November 2014. The facilities
are used for loans, letters of credit and guarantees, with interest based on
LIBOR/EURIBOR plus a margin and costs. In addition, we have a 30m fixed rate
loan that is repayable by 2018 and uncommitted facilities, amounting to around
23m at 30 September 2011.
The principal covenants are measured semi-annually, at the end of March and the
end of September, and require that net debt is less than 3.0 times EBITDA and
net external interest is covered at least 4.0 times by EBITDA, both on a
rolling 12-month basis. The definition of EBITDA for covenant purposes is not
materially different to the definition used in these financial statements. At
the end of September, net debt represented 1.2 times EBITDA (2010: 1.6 times)
and net external interest was covered 8.6 times by EBITDA (2010: 18.3 times).
At 30 September 2011, net debt of 68.9m was 16.9m lower than the prior year
and compares to 61.1m at 31 March 2011. This translates into gearing of 37%
(31 March 2011: 36%). Average net debt during the period, measured on a weekly
basis, was 21m lower than the first half of last year.
The Group has an active programme to reduce working capital requirements at the
end of each half-year reporting period. This programme reduced working capital
requirements by 18.6m in September 2011, compared to 25.8m in September 2010
and 31.1m in March 2011.
The Group pension deficits under IAS19 have increased by 30.1m from 31 March
2011 to 144.8m before tax.
The UK scheme deficit increased by 30.2m to 134.3m over the same period, with
a lower discount rate adding 21.1m, a lower inflation rate reducing
liabilities by 9.7m and a reduction in assets of 11.1m. For several years,
the UK defined benefit scheme has been closed to new entrants and has capped
increases in pensionable salary. At 30 September 2011 there was a deferred tax
asset of 33.6m (31 March 2011: 27.0m) related to the UK deficit and a
liability of 0.9m (31 March 2011: 0.9m) related to the overseas schemes.
Foreign currency
The following principal exchange rates have been used in the financial
Income Statement Balance Sheet
2011 2010 Change 2011 2010* Change
Euro 1.13 1.19 +5% 1.16 1.13 -3%
Swiss Franc 1.37 1.61 +15% 1.41 1.47 +4%
US Dollar 1.63 1.53 -7% 1.56 1.60 +3%
Canadian Dollar 1.58 1.59 +1% 1.62 1.56 -4%
* As at 31 March 2011.
Going concern
The Board believes that the Group has access to adequate resources for the
foreseeable future and has continued to prepare the Consolidated Financial
Statements on a going concern basis.
Summary income statement
Six months ended 30 September 2011 2010
m m
Revenue 186.8 169.2
EBITDA before exceptional items 28.7 24.3
Depreciation and amortisation (1) (5.3) (4.8)
Underlying operating profit 23.4 19.5
Amortisation of acquired intangibles (2.1) (2.0)
Operating profit 21.3 17.5
Share of associates and joint ventures 0.4 0.1
Net finance costs (5.1) (4.3)
Profit before tax 16.6 13.3
Taxation (5.0) (4.1)
Profit for the period 11.6 9.2
Summary balance sheet
30 September 31 March
2011 2011
m m
Goodwill and other intangible assets 247.9 249.9
Property, plant, equipment and investments 16.8 15.3
Working capital (83.6) (99.8)
Current tax liabilities (net) (6.3) (4.7)
Deferred tax assets (net) 44.7 38.9
Net debt (68.9) (61.1)
Pension liabilities (pre-tax) (144.8) (114.7)
Provisions and other items (1.9) (2.8)
Net assets 3.9 21.0
Summary cash flow statement
Six months ended 30 September 2011 2010
m m
EBITDA before exceptional items 28.7 24.3
Cash flow from exceptional items - (0.9)
Working capital movements (16.1) (19.4)
Interest paid (3.4) (1.4)
Tax paid (2.3) (2.3)
Capital expenditure (5.3) (3.9)
Pension funding in excess of EBITDA charge (3.1) (3.0)
Other movements 0.8 0.5
Free cash inflow/(outflow) (0.7) (6.1)
Acquisitions and disposals (1.4) (0.3)
Employee Benefits Trust purchases (2.4) -
Dividends paid to external shareholders (2.8) (2.4)
Currency translation (0.5) 0.5
Decrease/(increase) in net debt (7.8) (8.3)
Excluding amortisation of acquired intangibles
Hogg Robinson Group plc
Consolidated Income Statement
For the period ended 30 September 2011
Notes Half year ended 30 September
2011 2010
m m
Revenue 7 186.8 169.2
Operating expenses 8 (165.5) (151.7)
Operating profit 7 21.3 17.5
Analysed as:
Underlying operating profit 7 23.4 19.5
Amortisation of acquired intangibles (2.1) (2.0)
Operating profit 21.3 17.5
Share of results of associates and joint ventures 0.4 0.1
Finance income 10 0.1 0.1
Finance costs 10 (5.2) (4.4)
Profit before tax 16.6 13.3
Income tax expense 11 (5.0) (4.1)
Profit for the period from continuing operations 11.6 9.2
Profit attributable to:
Equity shareholders of the Company 12 10.8 8.5
Non-controlling interests 0.8 0.7
11.6 9.2
Notes Half year ended 30 September
2011 2010
pence pence
Earnings per share 12
Basic 3.6 2.8
Diluted 3.4 2.7
Hogg Robinson Group plc
Consolidated Statement of Comprehensive Income
For the period ended 30 September 2011
Notes Half year ended 30 September
2011 2010
m m
Profit for the period 11.6 9.2
Other comprehensive income
Currency translation differences 19 0.4 (1.2)
Actuarial loss on pension schemes (32.2) (30.2)
Deferred tax movement on pension liability 8.4 8.4
Deferred tax movement on pension liability
attributable to impact of UK rate change (1.3) (1.4)
Other comprehensive loss for the period, net of tax (24.7) (24.4)
Total comprehensive loss for the period (13.1) (15.2)
Total comprehensive loss attributable to:
Equity shareholders of the Company (13.8) (15.9)
Non-controlling interests 0.7 0.7
(13.1) (15.2)
Hogg Robinson Group plc
Consolidated Balance Sheet
As at 30 September 2011
Notes 30 31
September March
2011 2011
m m
Non current assets
Goodwill and other intangible assets 14 247.9 249.9
Property, plant and equipment 15 12.9 12.9
Investments accounted for using the equity method 3.9 2.4
Trade and other receivables 0.1 0.1
Deferred tax assets 46.6 40.9
311.4 306.2
Current assets
Trade and other receivables 106.3 114.7
Financial assets - derivative financial instruments 0.4 -
Current tax assets 0.7 0.7
Cash and cash equivalent assets 16 47.4 70.5
154.8 185.9
Total assets 466.2 492.1
Non current liabilities
Financial liabilities - borrowings 16 (112.7) (128.0)
Deferred tax liabilities (1.9) (2.0)
Retirement benefit obligations 17 (144.8) (114.7)
Provisions (4.0) (4.2)
(263.4) (248.9)
Current liabilities
Financial liabilities - borrowings 16 (0.7) (0.3)
Financial liabilities - derivative financial (0.1) (0.3)
Current tax liabilities (7.0) (5.4)
Trade and other payables (190.0) (214.6)
Provisions (1.1) (1.6)
(198.9) (222.2)
Total liabilities (462.3) (471.1)
Net assets 3.9 21.0
Capital and reserves
Share capital 18 3.1 3.1
Share premium 18 172.3 172.2
Other reserves 19 12.2 14.0
Retained earnings (188.0) (171.9)
Attributable to owners of Hogg Robinson Group plc (0.4) 17.4
Attributable to non-controlling interests 4.3 3.6
Total equity 3.9 21.0
Hogg Robinson Group plc
Consolidated Statement of Changes in Equity
As at 30 September 2011
Attributable to equity holders of the Company
Share Share Other Retained Non-controlling Total
capital premium reserves earnings Total interests equity
m m m m m m m
Balance at 1 April 2010 3.1 172.2 13.4 (191.4) (2.7) 3.4 0.7
Retained profit for the period - - - 8.5 8.5 0.7 9.2
Other comprehensive income:
Actuarial loss on pension - - - (30.2) (30.2) - (30.2)
Deferred tax movement on - - - 8.4 8.4 - 8.4
pension liability
Deferred tax movement on
pension liability
attributable to impact of - - - (1.4) (1.4) - (1.4)
UK rate change
Currency translation - - (1.2) - (1.2) - (1.2)
Total comprehensive income - - (1.2) (14.7) (15.9) 0.7 (15.2)
Transactions with owners:
Dividends - - - (2.4) (2.4) (0.3) (2.7)
Share-based incentives - - - 1.0 - 1.0 - 1.0
charge for period
Total transactions with owners - - 1.0 (2.4) (1.4) (0.3) (1.7)
Balance at 30 September 2010 3.1 172.2 13.2 (208.5) (20.0) 3.8 (16.2)
Balance at 1 April 2010` 3.1 172.2 13.4 (191.4) (2.7) 3.4 0.7
Retained profit for the year - - - 19.1 19.1 0.7 19.8
Other comprehensive income:
Actuarial gain on pension - - - 8.5 8.5 - 8.5
Deferred tax movement on - - - (2.4) (2.4) - (2.4)
pension liability
Deferred tax movement on
pension liability
attributable to impact of - - - (2.1) (2.1) - (2.1)
UK rate change
Deferred tax movement on
share-based incentives cost - - - 0.3 0.3 - 0.3
Currency translation - - (1.6) - (1.6) 0.1 (1.5)
Total comprehensive income - - (1.6) 23.4 21.8 0.8 22.6
Transactions with owners:
Dividends - - - (3.9) (3.9) (0.6) (4.5)
Share-based incentives - - - 2.2 - 2.2 - 2.2
charge for year
Total transactions with owners - - 2.2 (3.9) (1.7) (0.6) (2.3)
Balance at 31 March 2011 3.1 172.2 14.0 (171.9) 17.4 3.6 21.0
Balance at 1 April 2011 3.1 172.2 14.0 (171.9) 17.4 3.6 21.0
Retained profit for the period - - - 10.8 10.8 0.8 11.6
Other comprehensive income:
Actuarial loss on pension - - - (32.2) (32.2) - (32.2)
Deferred tax movement on - - - 8.4 8.4 - 8.4
pension liability
Deferred tax movement on pension liability
attributable to impact of - - - (1.3) (1.3) - (1.3)
UK rate change
Transfer from exchange reserve - - (0.9) 0.9 - - -
to retained earnings
Currency translation - - 0.5 - 0.5 (0.1) 0.4
Total comprehensive income - - (0.4) (13.4) (13.8) 0.7 (13.1)
Transactions with owners:
Dividends - - - (2.8) (2.8) - (2.8)
New shares issued to satisfy - 0.1 - - 0.1 - 0.1
share-based incentives
Transfer from share based incentives reserve
to retained earnings - - (2.5) 2.5 - - -
Shares purchased by Employee - - - (2.4) (2.4) - (2.4)
Benefits Trust
Share-based incentives - - - 1.2 - 1.2 - 1.2
charge for period
Share-based incentives - - - (0.1) - (0.1) - (0.1)
exercise of CSOP options
Total transactions with owners - 0.1 (1.4) (2.7) (4.0) - (4.0)
Balance at 30 September 2011 3.1 172.3 12.2 (188.0) (0.4) 4.3 3.9
Hogg Robinson Group plc
Consolidated Cash Flow Statement
For the period ended 30 September 2011
Notes Half year ended 30 September
2011 2010
m m
Cash flows from operating activities
Cash generated from operations 20 10.3 1.8
Interest paid (3.6) (1.5)
Tax paid (2.3) (2.3)
Cash flows from operating activities - net 4.4 (2.0)
Cash flows from investing activities
Acquisition of subsidiaries, net of cash acquired - (0.3)
Acquisition of associates, joint ventures and other investments (1.4) -
Purchase of property, plant and equipment (2.7) (1.1)
Purchase and internal development of intangible assets (2.6) (2.8)
Interest received 0.1 0.1
Dividends received from associates and joint ventures 0.1 -
Cash flows from investing activities - net (6.5) (4.1)
Cash flows from financing activities
Repayment of borrowings (35.0) (3.3)
New borrowings 18.7 6.5
Cash effect of currency swaps (0.1) 0.6
Employee Benefits Trust (2.4) -
Dividends paid to external shareholders (2.8) (2.4)
Dividends paid to non-controlling interests - (0.3)
Cash flows from financing activities - net (21.6) 1.1
Net decrease in cash and cash equivalents (23.7) (5.0)
Cash and cash equivalents at the beginning of the period 70.4 58.2
Exchange rate effects (0.8) (1.0)
Cash and cash equivalents at the end of the period 45.9 52.2
Cash and cash equivalent assets 47.4 53.3
Overdrafts (1.5) (1.1)
45.9 52.2
Hogg Robinson Group plc
Notes to the Consolidated Half-Year Financial Information
For the period ended 30 September 2011
1 General information
Hogg Robinson Group plc is an international corporate services company and
specialises in travel, expense and data management underpinned by proprietary
technology solutions and products.
The Company is a public limited company, incorporated in the UK under the
Companies Act 2006. The address of its registered office is Global House,
Victoria Street, Basingstoke, Hampshire, RG21 3BT, United Kingdom.
The Company is listed on the Official List of the UK Listing Authority and the
London Stock Exchange, and its registered number is 3946303.
This condensed consolidated half-yearly financial information was approved for
issue on 30 November 2011.
This condensed consolidated half-yearly financial information does not comprise
statutory accounts within the meaning of Section 434 of the Companies Act 2006.
Statutory accounts for the year ended 31 March 2011 were approved by the Board
of Directors on 25 May 2011 and delivered to the Registrar of Companies. The
report of the auditors on those accounts was unqualified, did not contain an
emphasis of matter paragraph and did not contain any statement under section
498 of the Companies Act 2006.
This condensed consolidated half-yearly financial information has been
reviewed, not audited.
2 Basis of preparation
This condensed consolidated half-yearly financial information for the half-year
ended 30 September 2011 has been prepared in accordance with the Disclosure and
Transparency Rules of the Financial Services Authority and with IAS 34, Interim
Financial Reporting, as adopted by the European Union. The half-yearly
condensed consolidated financial report should be read in conjunction with the
Annual Report and Financial Statements for the year ended 31 March 2011, which
have been prepared in accordance with International Financial Reporting
Standards (IFRSs) as adopted by the European Union.
The Directors consider that, taking into account the assets and revenue of the
Group, the Group has adequate resources to continue in operational existence
for the foreseeable future. For this reason, the Directors adopt the going
concern basis for the condensed consolidated half-yearly financial information.
3 Accounting policies
The accounting policies adopted are consistent with those of the Annual
Consolidated Financial Statements for the year ended 31 March 2011, as
described in those statements.
Exceptional items are disclosed and described separately in the financial
statements where it is necessary to do so to provide further understanding of
the financial performance of the Group. They are material items of income or
expense that have been shown separately due to the significance of their nature
or amount.
Income tax expense in the half-year period is accrued using the tax rate that
would be applicable to expected total annual earnings.
The following amended standards and interpretations to existing standards are
mandatory for the first time for the financial year beginning 1 April 2011.
The adoption of these amendments and interpretations does not have a material
impact on the condensed consolidated half-yearly financial information:
IAS 24 (revised), Related Party Disclosures, effective for accounting periods
beginning on or after 1 January 2011. The revised standard clarifies and
simplifies the definition of a related party.
IFRIC 14 (amendments), Prepayments of a Minimum Funding Requirement, effective
for accounting periods beginning on or after 1 January 2011 and applies
retrospectively to the earliest comparative period presented. The amendments
correct an unintended consequence of IFRIC 14, IAS 19 - The Limit on a Defined
Benefit Asset, Minimum Funding Requirements and their Interaction. Without the
amendments, entities are not permitted to recognise as an asset some voluntary
prepayments for minimum funding contributions.
IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments,
effective for accounting periods beginning on or after 1 July 2010, clarifies
the accounting by an entity when the terms of a financial liability are
renegotiated and result in the entity issuing equity instruments to a creditor
of the entity to extinguish all or part of the financial liability (debt for
equity swap).
The Group has not early adopted any standard, interpretation or amendment that
has been issued but is not yet effective.
4 Estimates
The preparation of condensed consolidated half-yearly financial information
requires management to make judgements, estimates and assumptions that affect
the application of accounting policies and the reported amounts of assets and
liabilities, income and expense. Actual results may differ from these
In preparing this condensed consolidated half-yearly financial information, the
significant judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty were the same as those
that applied to the Consolidated Financial Statements for the year ended 31
March 2011, with the exception of changes in estimates that are required in
determining the provision for income tax expense.
5 Principal risks and uncertainties
The principal risks and uncertainties affecting the Group were identified as
part of the Business Review and the Financial risk management note set out on
pages 10 to 11 and 48 to 49 respectively of the Hogg Robinson Group plc Annual
Report and Financial Statements 2011, a copy of which is available on the
Group's website www.hoggrobinsongroup.com. The Board's view is that these
risks and the risk management policies in place remain substantially unchanged
for the second half of the current financial year. These risks and
uncertainties can be summarised as follows:
Operational risks
Loss of a major client
Volatility of client activity
Loss of a key supplier
Loss of key staff
Corruption or reputation risk
Technology or systems failure
Financial risks
The reported results of the Group could be adversely affected by:
Lack of access to adequate funding
Lack of cost and capital control
Increased pension funding
Foreign currency risk
Interest rate risk
Credit risk
Liquidity risk
External risks
Significant economic or other crisis
Competitive environment
There may be additional risks unknown to the Group and other risks, currently
believed to be immaterial, which could turn out to be material. These risks,
whether they materialise individually or simultaneously, could significantly
affect the Group's business and financial results.
6 Seasonality
The Group's revenue and operating profit are affected by the seasonality of
corporate travel business, with travel declining during the summer and
Christmas holiday periods and, to a lesser extent, during Easter holidays,
which are times when many corporate travellers are on holiday. Typically, the
Group experiences the highest levels of revenue in the last months of its
financial year, principally reflecting increased travel activity by its clients
during this period.
7 Operating segments
The chief operating decision maker has been identified as the Executive
Management Team, which reviews the Group's internal reporting in order to
assess performance and allocate resources. The Executive Management Team has
determined the operating segments based on these reports.
The Executive Management Team considers the business from the perspective of
two core activities, Corporate Travel Management, which is analysed into three
distinct geographic segments, and Spendvision. The Group's internal reporting
processes do not distinguish between the numerous sources of income that
comprise revenue for Corporate Travel Management. The performance of the
operating segments is assessed based on a measure of operating profit excluding
items of an exceptional nature. Finance income and costs and income tax
expense are not included in the result for each operating segment that is
reviewed by the Executive Management Team. Other information provided to the
Executive Management Team, except as noted below, is measured in a manner
consistent with that in the condensed consolidated half-yearly financial
Total segment assets exclude cash and cash equivalent assets, current tax
assets and deferred tax assets which are managed on a central basis. These are
included as part of the reconciliation to total Consolidated Balance Sheet
Corporate Travel Management
North Asia
Europe America Pacific Total Spendvision Total
m m m m m m
Half year ended 30 September 2011
Revenue from external customers 125.1 39.0 15.6 179.7 7.1 186.8
Underlying operating profit 15.0 6.8 0.7 22.5 0.9 23.4
Amortisation of acquired intangibles (1.6) (0.4) - (2.0) (0.1) (2.1)
Operating profit 13.4 6.4 0.7 20.5 0.8 21.3
Underlying margin 12.0% 17.4% 4.5% 12.5% 12.7% 12.5%
Half year ended 30 September 2010
Revenue from external customers 115.1 38.0 10.1 163.2 6.0 169.2
Underlying operating profit 13.6 5.6 (0.1) 19.1 0.4 19.5
Amortisation of acquired intangibles (1.5) (0.4) - (1.9) (0.1) (2.0)
Operating profit 12.1 5.2 (0.1) 17.2 0.3 17.5
Underlying margin 11.8% 14.7% (1.0%) 11.7% 6.7% 11.5%
There is no material inter-segment revenue.
External revenue from clients by origin (where the Group's operations are
located) is not materially different from external revenue from clients by
geographical area (where the client is located) disclosed above.
A reconciliation of operating profit to total profit before income tax expense
is provided in the Consolidated Income Statement.
Corporate Travel Management
North Asia
Europe America Pacific Total Spendvision Total
m m m m m m
Total segment assets
30 September 2011 260.3 87.7 16.4 364.4 7.1 371.5
31 March 2011 268.2 89.4 15.8 373.4 6.6 380.0
Reportable segments' assets are reconciled to total assets as follows:
30 September 31 March
2011 2011
m m
Total segment assets 371.5 380.0
Cash and cash equivalent assets 47.4 70.5
Current tax assets 0.7 0.7
Deferred tax assets 46.6 40.9
466.2 492.1
8 Operating expenses
Half year ended 30 September
2011 2010
m m
Underlying operating expenses:
Staff costs (note 9) 111.0 98.8
Amortisation of intangible assets, other than acquired intangible 2.6 2.2
Depreciation of property, plant and equipment 2.7 2.6
Operating lease rentals - buildings 7.3 7.3
Operating lease rentals - other assets 0.9 0.9
Currency translation differences - 0.1
Other expenses 38.9 37.8
163.4 149.7
Amortisation of acquired intangibles:
Amortisation of client relationships 2.0 1.9
Amortisation of other acquired intangible assets 0.1 0.1
2.1 2.0
Total operating expenses 165.5 151.7
9 Staff costs
Half year ended 30 September
2011 2010
m m
Salaries 93.6 82.7
Social security costs 10.5 9.4
Pension costs 5.4 5.1
Redundancy and termination costs 0.3 0.6
Share-based incentives 1.2 1.0
111.0 98.8
Pension costs comprise:
Defined benefit schemes 1.9 2.0
Defined contribution schemes 3.5 3.1
5.4 5.1
Half year ended 30 September
2011 2010
number number
Average monthly number of staff employed by the Group 5,446 5,183
10 Finance income and finance costs
Half year ended 30 September
2011 2010
m m
Finance income - bank interest 0.1 0.1
Interest on bank loans and overdrafts (3.0) (1.5)
Amortisation of issue costs on bank loans (0.4) (0.8)
Expected return on pension scheme assets less
interest cost on pension scheme liabilities (1.2) (1.9)
Other finance charges (0.4) (0.2)
Interest on derivative financial instruments (0.2) -
Finance costs (5.2) (4.4)
Net finance costs (5.1) (4.3)
11 Income tax expense
The tax charge is split as follows:
Half year ended 30 September
2011 2010
m m
United Kingdom 1.2 2.0
Overseas 3.7 1.9
Change in headline tax rate 0.1 0.2
5.0 4.1
Taxes on income in the half-year periods to 30 September are accrued using the
tax rate that would be applicable to the expected total annual earnings by
country. An effective tax rate of approximately 30% is anticipated for the year
ended 31 March 2012 (2011: 31%).
Tax rate change
The UK government is reducing the rate of corporation tax from 26% to 25% with
effect from 1 April 2012. Consequently, the Group is required to revalue all
of its recognised UK deferred tax assets and liabilities. The revaluation is
anticipated to result in a full year deferred tax charge to the Consolidated
Income Statement of 0.1m, together with a charge to the Consolidated Statement
of Comprehensive Income of 1.3m in respect of deferred tax assets on pension
liabilities. The Group is reflecting the full impact of 1.4m in the first half
of the year.
Further proposals to reduce the UK rate by 1% per annum to 23% by April 2014
have not been substantively enacted at the balance sheet date and, therefore,
are not reflected in this condensed consolidated half-yearly financial
12 Earnings per share
Earnings per share attributable to equity holders of the Company were as
Half year ended 30 September
2011 2010
pence pence
Earnings per share
Basic 3.6 2.8
Diluted 3.4 2.7
Half year ended 30 September
2011 2010
m m
Earnings for the purposes of earnings
per share
Profit for the period 11.6 9.2
Less: amounts attributable to (0.8) (0.7)
non-controlling interests
Total 10.8 8.5
Half year ended 30 September
2011 2010
number number
m m
Weighted average number of Ordinary shares in issue
Issued (for basic EPS) 302.0 300.7
Dilutive potential ordinary shares 14.7 11.7
For diluted EPS 316.7 312.4
Underlying earnings per share
Underlying earnings per share attributable to equity holders of the Company
were as follows:
Half year ended 30 September
2011 2010
pence pence
Underlying earnings per share
Basic 4.1 3.3
Diluted 3.9 3.2
Half year ended 30 September
2011 2010
m m
Earnings for the purposes of underlying earnings per share
Profit before tax from continuing operations 16.6 13.3
Add: amortisation of acquired intangibles 2.1 2.0
Underlying profit before tax 18.7 15.3
Underlying income tax expense (5.6) (4.7)
Underlying profit for the financial year 13.1 10.6
Less: amounts attributable to non-controlling interests (0.8) (0.7)
Total 12.3 9.9
Underlying earnings are earnings before amortisation of acquired intangibles
and exceptional items and related income tax expense.
13 Dividends
A dividend that related to the year ended 31 March 2011 amounting to 1.0p per
ordinary share (3,022,355) was paid on 1 August 2011. The dividend was paid
to shareholders who were on the register at 1 July 2011. The Employee Benefits
Trust has waived its rights to dividends in respect of 6,490,647 shares held in
the Company and subsequently repaid an amount of 0.2m in respect of previous
The Directors have declared an interim dividend in respect of the six months
ended 30 September 2011 of 0.6p payable on 5 January 2012 to shareholders who
are on the register at 9 December 2011. This interim dividend, amounting to
1.8m has not been recognised as a liability in this half-yearly financial
report, in accordance with IAS 10, Events after the Balance Sheet Date.
14 Goodwill and other intangible assets
30 September 31 March
2011 2011
m m
Goodwill 221.1 221.0
Other intangible assets 26.8 28.9
247.9 249.9
Computer software
Externally Internally Client
Goodwill acquired generated relationships Total
m m m m m
At 1 April 2010 248.2 16.2 17.9 37.4 319.7
Additions - 0.8 4.6 - 5.4
Exchange differences (0.8) - 0.1 0.7 -
At 31 March 2011 247.4 17.0 22.6 38.1 325.1
Additions - 0.3 2.3 - 2.6
Disposals - (0.1) - - (0.1)
Exchange differences 0.1 (0.3) (0.1) 0.4 0.1
At 30 September 2011 247.5 16.9 24.8 38.5 327.7
Accumulated amortisation
At 1 April 2010 26.4 11.2 7.0 21.6 66.2
Amortisation charge for the - 1.5 3.2 3.7 8.4
Exchange differences - 0.1 (0.1) 0.6 0.6
At 31 March 2011 26.4 12.8 10.1 25.9 75.2
Amortisation charge for the - 0.8 1.9 2.0 4.7
Disposals - (0.1) - - (0.1)
Exchange differences - (0.2) - 0.2 -
At 30 September 2011 26.4 13.3 12.0 28.1 79.8
Carrying amount
At 1 April 2010 221.8 5.0 10.9 15.8 253.5
At 31 March 2011 221.0 4.2 12.5 12.2 249.9
At 30 September 2011 221.1 3.6 12.8 10.4 247.9
15 Property, plant and equipment
Plant and
Properties equipment Total
m m m
At 1 April 2010 10.5 49.8 60.3
Additions for the year 0.8 3.0 3.8
Disposals for the year (0.7) (0.8) (1.5)
Exchange differences - 0.3 0.3
At 31 March 2011 10.6 52.3 62.9
Additions for the period 0.1 2.6 2.7
Disposals for the period - (2.2) (2.2)
Exchange differences (0.1) (0.5) (0.6)
At 30 September 2011 10.6 52.2 62.8
Accumulated depreciation
At 1 April 2010 7.2 38.3 45.5
Depreciation charge for the year 0.8 4.5 5.3
Disposals for the year (0.3) (0.7) (1.0)
Exchange differences (0.1) 0.3 0.2
At 31 March 2011 7.6 42.4 50.0
Depreciation charge for the period 0.4 2.3 2.7
Disposals for the period - (2.2) (2.2)
Exchange differences (0.1) (0.5) (0.6)
At 30 September 2011 7.9 42.0 49.9
Carrying amount
At 1 April 2010 3.3 11.5 14.8
At 31 March 2011 3.0 9.9 12.9
At 30 September 2011 2.7 10.2 12.9
The Group does not have any material capital commitments in respect of the
purchase of property, plant and equipment.
16 Financial liabilities - borrowings
30 September 31 March
2011 2011
m m
At amortised cost
Current (due within one year)
Overdrafts 1.5 0.1
Bank loans - -
Unamortised loan issue costs (0.9) -
Finance leases 0.1 0.2
0.7 0.3
Non-current (due after more than one year)
Bank loans 114.6 131.2
Unamortised loan issue costs (2.0) (3.3)
Finance leases 0.1 0.1
112.7 128.0
113.4 128.3
Net debt
Total financial liabilities - borrowings 113.4 128.3
Add back: Unamortised loan issue costs 2.9 3.3
Cash and cash equivalent assets (47.4) (70.5)
Net debt 68.9 61.1
17 Retirement benefit obligations
Defined benefit pension arrangements
The Group's principal defined benefit pension arrangement is the Hogg Robinson
(1987) Pension Scheme (the UK Scheme). The UK Scheme was available to most UK
employees until it was closed to new members in March 2003, with benefits based
on final pensionable salary. The increase in final pensionable salary since 31
March 2003 is predominantly limited to the lower of the increase in the Retail
Prices Index and 5% per annum.
The Group also operates defined benefit schemes in Norway, Switzerland,
Germany, Italy and France.
The provision in the Consolidated Balance Sheet arising from obligations in
respect of defined benefit schemes is as follows:
30 September 31 March
2011 2011
m m
UK scheme:
Defined benefit obligations (343.4) (324.3)
Fair value of plan assets 209.1 220.2
Deficit - UK Scheme (134.3) (104.1)
Deficit - Overseas Schemes (10.5) (10.6)
(144.8) (114.7)
The following amounts have been included in the Consolidated Income Statement
in respect of the UK Scheme:
Half year ended 30 September
2011 2010
m m
Current service charge 1.1 1.3
Expected return on scheme assets (7.7) (7.1)
Charge to finance costs 8.8 8.7
Total charge to the Consolidated Income Statement 2.2 2.9
The current service charge is computed based on the actuarial assumptions in
place at the beginning of the financial year and translates to 18.4% of
pensionable salaries (2010: 20.6%).
The key assumptions used for the UK Scheme were:
30 September 31 March
2011 2011
Rate of increase in final pensionable salary 3.00% 3.40%
Rate of increase in pensions in payment - accrued before 5.00% 5.00%
Rate of increase in pensions in payment - accrued after 1999 3.00% 3.40%
Discount rate 5.20% 5.50%
Inflation - RPI 3.00% 3.40%
Inflation - CPI 2.50% 2.90%
Expected rate of return on plan assets:
Equity instruments 8.00% 8.00%
Debt instruments 4.95% 4.50%
Property 8.00% 8.00%
Other assets 3.65% 4.90%
18 Share capital and share premium account
Share capital
30 September
Ordinary shares of 1p each 513,808,171
Issued, called up and fully paid
At 1 April 2011 307,781,171
Shares issued in the year 1,028,194
At 30 September 2011 308,809,365
30 September
Issued, called up and fully paid
Ordinary shares of 1p each 3.1
The Company issued 1,028,194 shares for a total consideration of 131,403
during the period ending 30 September 2011 on the exercise of options under the
Company Share Option Plan (CSOP).
The HRG Employee Benefits Trust acquired 3,784,111 of the Company's Ordinary
shares through purchases on the London Stock Exchange in the period. The total
amount paid to acquire the shares in the period ended 30 September 2011 was
2.4m and has been deducted from retained earnings. The total number of Ordinary
shares in the Company held by the HRG Employee Benefits Trust as at 30
September 2011 was 6,490,647 (31 March 2011: 6,302,678) with a market value of
3.3m (31 March 2011: 3.7m). 3,596,142 shares have been used during the period
to satisfy vesting of certain share-based incentives.
Share premium account
At 1 April 2011 172.2
Shares issued in the year 0.1
At 30 September 2011 172.3
19 Other reserves
Share-based Exchange other
incentives reserve reserves
m m m
Balance at 1 April 2010 3.2 10.2 13.4
Other comprehensive income:
Currency translation differences - (1.2) (1.2)
Share-based incentives - charge for period 1.0 - 1.0
Balance at 30 September 2010 4.2 9.0 13.2
Balance at 1 April 2010 3.2 10.2 13.4
Other comprehensive income:
Currency translation differences - (1.6) (1.6)
Transactions with owners:
Share-based incentives - charge for year 2.2 - 2.2
Balance at 31 March 2011 5.4 8.6 14.0
Balance at 1 April 2011 5.4 8.6 14.0
Other comprehensive income:
Transfer from exchange reserve to retained - (0.9) (0.9)
Currency translation differences - 0.5 0.5
Transactions with owners:
Transfer from share-based incentives reserve (2.5) - (2.5)
to retained earnings
Share-based incentives - charge for period 1.2 - 1.2
Share-based incentives - exercise of CSOP (0.1) - (0.1)
Balance at 30 September 2011 4.0 8.2 12.2
20 Cash generated from operations
Half year ended 30 September
2011 2010
m m
Profit before tax from continuing operations 16.6 13.3
Adjustments for:
Depreciation and amortisation (notes 14 and 15) 7.4 6.8
Net increase in provisions 0.2 0.7
Share of results of associates and joint ventures (0.4) (0.1)
Net finance costs (note 10) 5.1 4.3
Other timing differences 1.4 1.2
30.3 26.2
Cash expenditure charged to provisions (0.8) (2.0)
Change in trade and other receivables 6.4 6.1
Change in trade and other payables (22.5) (25.5)
Pension funding in excess of charge to operating profit (3.1) (3.0)
Cash generated from operations 10.3 1.8
21 Related party transactions
There have been no material changes in the nature of related party transactions
since 31 March 2011 as reported in note 28 of the Group's 31 March 2011 Annual
Report and Consolidated Financial Statements.
22 Contingent assets and contingent liabilities
No change has taken place in the contingent assets and contingent liabilities
as reported in note 26 of the Group's 31 March 2011 Annual Report and
Consolidated Financial Statements.
Hogg Robinson Group plc
Statement of Directors' Responsibilities
The Directors confirm that, to the best of their knowledge, this condensed
consolidated half-yearly financial information has been prepared in accordance
with IAS 34 as adopted by the European Union and that the Interim Management
Report herein includes a fair review of the information required by DTR 4.2.7
and DTR 4.2.8, namely:
an indication of important events that have occurred during the first six
months and their impact on the condensed set of consolidated financial
information, and a description of the principal risks and uncertainties for the
remaining six months of the financial year; and
material related-party transactions in the first six months and any material
changes in the related-party transactions described in the last annual report.
The Directors of Hogg Robinson Group plc are as follows:
J D Coombe(1) Chairman
D J C Radcliffe Chief Executive
J A Steadman Group Finance Director
K A Ruffles Chief Operating Officer
A E Isaac(1) (2)
P Williams(1)
(1) Non-Executive Directors
(2) Senior Independent Director
By Order of the Board
Keith Burgess
Company Secretary
30 November 2011
Hogg Robinson Group plc
Independent review report to Hogg Robinson Group plc
We have been engaged by the Company to review the condensed set of Consolidated
Financial Statements in the half-yearly financial report for the six months
ended 30 September 2011, which comprises the Consolidated Income Statement,
Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet,
Consolidated Statement of Changes in Equity, Consolidated Statement of Cash
Flows and related notes. We have read the other information contained in the
half-yearly financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the condensed
set of Consolidated Financial Statements.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been
approved by, the Directors. The Directors are responsible for preparing the
half-yearly financial report in accordance with the Disclosure and Transparency
Rules of the United Kingdom's Financial Services Authority.
As described in note 2, the annual financial statements of the Group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of Consolidated Financial Statements included in this half-yearly
financial report has been prepared in accordance with International Accounting
Standard 34, 'Interim Financial Reporting', as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of Consolidated Financial Statements in the half-yearly financial report
based on our review. This report, including the conclusion, has been prepared
for and only for the Company for the purpose of the Disclosure and Transparency
Rules of the Financial Services Authority and for no other purpose. We do not,
in producing this report, accept or assume responsibility for any other purpose
or to any other person to whom this report is shown or into whose hands it may
come save where expressly agreed by our prior consent in writing.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity', issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of Consolidated Financial Statements in the
half-yearly financial report for the six months ended 30 September 2011 is not
prepared, in all material respects, in accordance with International Accounting
Standard 34 as adopted by the European Union and the Disclosure and
Transparency Rules of the United Kingdom's Financial Services Authority.
PricewaterhouseCoopers LLP
Chartered Accountants
30 November 2011
(a) The maintenance and integrity of the Hogg Robinson Group plc web site is
the responsibility of the Directors; the work carried out by the auditors does
not involve consideration of these matters and, accordingly, the auditors
accept no responsibility for any changes that may have occurred to the
half-yearly financial report since it was initially presented on the web site.
(b) Legislation in the United Kingdom governing the preparation and
dissemination of the financial information may differ from legislation in other
Hogg Robinson Group plc is a United Kingdom-based holding company. The Company is an international corporate services company, which provides cloud-based software to help clients in travel, expense, payments and data management. It has two core activities: Travel Management, which is analyzed into three geographic segments, including Fraedom Travel, and Technology, which includes the Fraedom Payments and Expense operations. The Company is an international business-to-business (B2B) service company. The Company has three geographical corporate travel segments: Europe, North America and Asia Pacific. The Company's subsidiaries are engaged in the holding and financing, Technology, Travel Management and Support services. The Company's subsidiaries include HRG Debtco Limited, Farnborough Limited, Hogg Robinson plc, Hogg Robinson (Travel) Limited, Hogg Robinson Money Matters Limited, Farnborough Finance (2007) Limited, Fraedom Holdings Limited, Fraedom UK Limited and Wilson Albany Limited. more »

subset: commoncrawl


text:
Marcia Johnson, PhD
Sterling Professor Emeritus of Psychology; Department Chair, Psychology
Research Summary
My lab group studies human memory and considers such issues as the
component processes of reflection and consciousness, mechanisms of
veridical and distorted memory, and the relation between emotion and
cognition. Ongoing research questions include:
- A component processes analysis of memory and cognition. What are the basic "processing units" underlying memory? How are these component processes organized, and how do they interact?
- Memory binding. How are individual features of experience (e.g., color, shape, location, emotion) bound together to create complex memories? What processes are needed in addition to perceptual binding?
- Reality monitoring/source monitoring. How are the memory representations of perception and thought (imagination, dreams, fantasies) alike, and how are they different; and why are they sometimes confused? What is the role of emotion in memory distortions? More generally, what is the relation between our attributions about the sources of memories, knowledge, and beliefs, and their actual origins?
- Aging and memory. We are exploring age-related changes in memory in all of the above—in identifying component processes of cognition, in binding the attributes of memories, and in source monitoring. We use cognitive/behavioral and neuroimaging (fMRI) techniques to investigate these questions.
Selected Publications
- Ebner, N.C., & Johnson, M.K. (2009). Young and older emotional faces: Are there age group differences in expression identification and memory? Emotion, 9, 329-339.
- He, Y., Johnson, M.K., Dovidio, J.F., & McCarthy, G. (2009). The relation between race-related implicit associations and scalp-recorded neural activity evoked by faces from different races. Social Neuroscience, 4, 426-442.
- Bloise, S.M. and Johnson, M.K. (2007). Memory for emotional and neutral information: Gender and individual differences in emotional sensitivity. Memory 15:192-204.
- Raye, C.L., Johnson, M.K., Mitchell, K.J., Greene, E.J., and Johnson, M.R. (2007). Refreshing: A minimal executive function. Cortex 43:135-145


text:
Transformer for a tube amp question
I am using a Hammond 261c6 power transformer for my tube pre amp and I only need 110v out of it (it is a 220V centertapped). If I just use the centertap and one end of the winding can I clip the other end of the winding short and just tape it?
Primary 1___.......___+110V
.................) || (
.................) || (
Primary 2___) || (____-110V
Thanks for the help.
edit: formatting
What is it you're trying to do? Maybe there's a better approach.
The tube pre amp that I am building is much like the Morgan Jones one over on Headwize, except it uses a 12au7 and two 6Dj8's insted of three 6dj8's. In the power supply section of the schematic it calls for a 110V secondary winding and a 6.3V secondary winding. The transformer that I have on hand is the 261c6 which is setup to give 220V but I though that because of the center tap I could use it for the 110V required by the schematic.
The Preamp is a clone of the Radii HAP-03 incase that helps. I could email you the schematic if you are interested.
Thanks for your help.
Yes, I'd like to see a schematic. Thanks!
mebbe is better solution to use both halves ?
CT to ground,and wo diodes (one per half) to + output-just like good ole vacuum rectifier?
in that case your tranny will run colder
I agree with this
better not to leave floating windings ;)
Yes, you should use a full wave rectifier, then you only need 2 diodes! Less sand in your system! :D
Ok, here is the schematic. I know that there are better ways to do this but Im trying to stay as close to "cloning" the amp as possible. I plan to use 4 FREDS for the fullwave rectifier, each is rated to 12A and 1200V so even if I parallel the winding I won't be heating up the FREDS. Is there a problem with supplying twice the amperage to the amp, or will it only draw what it needs anyway?
Thanks for your help guys.
edit: spelling
oops, here it is.
2 Attachment(s)
That looks alot like a headphone amp I've seen on Headwize.
Runeight, was that yours?
An anode follower DC coupled into a WCF, nice.
It's very easy to add a bigger cap on the output and a jack so you'll be driving your cans with it as well.
Here's something similar I toyed with a while ago:
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text:
Paris, France
Trip Start Jan 13, 2005
24Trip End Ongoing
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I got up Saturday morning and checked out of the hostel and made my way the Louvre Museum. I was so excited to see the museum because I really enjoyed the DaVinci code and was anxious to see things for myself that he described in the book. The actual museum is an old Castle that Henry the III among others lived in. Napoleon also had an apartment there in the 1800s even though it was already a museum at that point in history. He is responsible for most of the Egyptian artifacts currently in the museum. It was about 8.50 Euro to get inside, but once in you have free reign of the place. I spent almost six hours there and saw an incredibly diverse array of ancient artifacts and beautiful paintings and statues. It was astounding to see the Mona Lisa because it is such a famous work of art. Even after being there Im not sure why this painting above others is so famous, but it was cool to see it none the less. I was also able to see the French Crown Jewels, but your not suppose to take pictures so I didn't. I could go on and on about the statues and paintings that I saw but I think that it would just be easier to show the pictures when I get back. It is truly an incredible museum and I would highly reccomend it if anybody finds themselves in France someday.
After I left the Louvre, I wondered around town for awhile and slowly made my way to the train station. I got there about six in the evening and had to wait around until about 9 for my train to leave. I was exhausted and slept the whole way back. Paris was great, but now Im looking forward to Munich and Oktoberfest. I will have another update this time next week,... Which is Tuesday.


text:
This Buckaroo style of boot is designed for the working cowboy/cowgirl. The heels are under
slung with a long base that gives you the stability and comfort you need
for ground work. The heel rands are extended, just right, for heavy
banded spurs and the shafts are taller for leg protection. The welts and
midsoles are extended towards the waists to function properly for
cowboys who rides oxbows. If you work feed lots you'll be happy to know
that the out sole is bonded, which eliminates the probability of feed
lot stuff rotting the welt threads. We think this is the best using
boot made for working cowboys and cowgirls.


text:
Jackson death highlights Twitter power – for good and bad!
Like most people my age, I was very saddened to hear about Michael Jackson's death last week. And like most people of my technological inclination, I first heard the news through Twitter. Actually, to be fair I *first* heard it through a text message from my brother – but his message was pointing me towards Twitter anyway, and it was the …Continue Reading


text:
Deer Hunting Forums (http://www.deerhuntersclub.com/forums/)
- Handgun Hunting (http://www.deerhuntersclub.com/forums/handgun-hunting/)
- - Not Really A Handgun Shooter... (http://www.deerhuntersclub.com/forums/handgun-hunting/8916-not-really-handgun-shooter.html)
Not Really A Handgun Shooter...
but I did go on an intersting handgun hunt one time. They flew some of out to Wyoming to shoot plains rats (p. dogs) with pistols. I had a ball and even hit a couple. We were shooting up to 100 yards. Since I went to college there, it was kinda like an old homecoming for me.
What are you shooting? Looks a lot like my Ruger single six in 17 HMR.
Reminds me of hunting prairie rats er, prairie dogs many, many years ago outside of Dillon, MT. An army buddy invited me to visit his home town. We used Ruger Mk II's with 4 or 6 inch barrel and were hitting the crazy critters out to 100 yards.
The local ranchers didn't seem to mind, as long as it was the prairie rats we were hitting and not the cows. The rat holes were a nuisance to both cattle and horses, causing many broken legs, so we availed ourselves of several boxes of .22 long rifle apiece before heading out to pasture. At times, we saw only the heads sticking above ground. Hitting something the size of a half dollar from 75 to 100 yards was something we were never certain about, not until seeing the dust and dirt flying thereby confirming a hit.
Those were the days . . . . . . . . . .
Lotta fun for sure. They tear the heck out of grazing land. When I lived in WY, we use to go out regularly with .22 rifles and a case of something and spend an afternoon in the hot sun. My then B-I-L had 22,000 acres near Glenrock and we really worked on the vile things.
At night, we worked on the jackrabbits. We got .15 for blacktail and .25 for whitetail. They used them for mink food and glove linings. We hunted them from the truck when it was cold and when we had a truck load frozen in the truck, I took them to Casper and sold them. Paid for the shells and gas.
Side benefit was, I became one heck of a rifle shot. Elk, antelope and mulies out to 350 yards were in serious trouble if I had a solid rest.
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text:
Gooey Peanut Treats RecipeRead Reviews Be the first to add a review
- 2 cups (12 ounces) semisweet chocolate chips
- 1 can (14 ounces) sweetened condensed milk
- 1 jar (16 ounces) salted dry roasted peanuts
- 1 package (10-1/2 ounces) miniature marshmallows
- In a microwave, melt and chocolate chips with milk; stir until blended. Stir in the peanuts and marshmallows. Pat into a greased 13-in. x 9-in. pan. Cool completely before cutting. Yield: 2 to 2-1/2 dozen.
Originally published as Gooey Peanut Treats in Quick Cooking March/April 1998, p41
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text:
Vanguard's At Cost Cafe Drives Cost Matters Message to Investors
VALLEY FORGE, PA (May 13, 2013)—Vanguard today kicked off a campaign to emphasize the importance that costs play in long-term investing. The centerpiece of the campaign is the mobile At-Cost Café, which sells hot and cold cups of coffee for $0.26, or one-fifth the average price. The café is designed to raise awareness among investors about the impact of costs and help them understand how minimizing costs in their investment portfolios can potentially enable them to save more.
The café starts its seven-week U.S. tour today in San Diego, with scheduled stops in five other cities, including San Francisco; Chicago; Washington, D.C.; New York; and Boston. It will spend three days in each city in prominent, well-traveled locations. The full schedule and locations appear on the at-cost cafe website.
In addition to the café, Vanguard plans to increase its cost education efforts through its multiple online and social media channels during the next two months. Vanguard will tweet and post cost-centric content for its 88,000 Twitter followers, 280,000 Google+ followers, and nearly 125,000 Facebook fans. The company plans to elevate new content to its website (vanguard.com), focusing on how saving a little can go a long way, how costs can affect overall portfolio returns, and how investors are increasingly recognizing the power of broadly diversified, low-cost portfolios, the adoption of which has increased 400% since 1995.
Vanguard also recently published its Principles for Investing Success, which outlines four key fundamental tenets: 1) Create clear and appropriate goals, 2) develop a suitable asset allocation using broadly diversified funds, 3) minimize cost, and 4) maintain perspective and long-term discipline. Cost is significant because every dollar paid in management fees or trading commissions is simply a dollar less that potentially could be earning return.
"Planning for a financially secure retirement is a huge challenge that many individuals face in this country," said Paul Heller, managing director and head of Vanguard's Retail Investor Group. "Low costs are a critical factor in determining retirement readiness, and Vanguard believes that educating investors about cost will give them a better chance of investment success."
Newly updated Vanguard research affirms that individual investors, financial advisors, and defined contribution plan sponsors are beginning to understand the key role cost plays in a portfolio. In Costs matters: Are fund investors voting with their feet?, Vanguard researchers found that in the last ten years, investors continue to commit the largest amount in assets to low-cost products, largely due to the popularity of low-cost index funds and ETFs. The researchers also found that the asset-weighted expense ratio for U.S. equity funds dropped by 31% from 2003 to 2013, to 0.64%. For U.S. taxable bond funds, the asset-weighted expense ratio dropped by 28%, to 0.47%.
Vanguard: The low-cost leader
Vanguard has championed low-cost investing since its founding in 1975. The average expense ratio for Vanguard funds decreased in 2012 by one basis point, to 0.19%—about one-fifth the industry average expense ratio of 1.11% (sources: Vanguard and Lipper, Inc.). Over the past four months, the company has reported expense ratio reductions for many of its largest, most widely held mutual funds, as well as more than 50 ETFs.
About Vanguard
Vanguard, headquartered in Valley Forge, Pennsylvania, is one of the world's largest investment management companies and a leading provider of company-sponsored retirement plan services. Vanguard manages nearly $2.2 trillion in U.S. mutual fund assets, including nearly $280 billion in ETF assets. The firm offers more than 170 funds to U.S. investors and more than 70 additional funds in non-U.S. markets.
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All asset figures are as of April 30, 2013.
Vanguard provides its services to the Vanguard funds and ETFs at cost.
Mutual funds are subject to risks, including possible loss of principal. Investments in bond funds are subject to interest rate, credit, and inflation risk.
Vanguard ETF Shares are not redeemable with the issuing Fund other than in Creation Unit aggregations. Instead, investors must buy or sell Vanguard ETF Shares in the secondary market with the assistance of a stockbroker. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.
For more information on Vanguard funds, visit www.vanguard.com, or call 800-662-7447, to obtain a prospectus. Visit our website, call 800-662-7447, or contact your broker to obtain a prospectus for Vanguard ETF Shares. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.
Vanguard Marketing Corporation, Distributor.
© 2013 The Vanguard Group, Inc. All rights reserved.


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Book Reviews Page 2
Voice Of The Spirit: Notes Of Wisdom From Indian Country, USA;
photographs by Marilyn "Angel" Wynn, published by Tomahawk
Publishing, distributed by Xlibris Corp.; 80 pages; $32.99; (ISBN 1-4134-6777-6)
This beautiful book was crafted from the artist's personal collection of over 100,000 color images. Marilyn "Angel" Wynn is a stock photographer who specializes in capturing the magnificence of Native American Indian cultural traditions both past and present. These heartfelt shots reveal a people with a deep passion for their culture and sheds light on how these ancient traditions are being carried on by future generations. The images are paired with inspirational quotes inspired by Native people and the use of informative captions bring the photos to life.
Searchings: Secret Landscapes Of Flowers Volume III; photographs
by Barbara Bordnick, Welcome Books; 132 pages; $40; (ISBN 1-932183-82-5)
Barbara Bordnick has earned international acclaim as a fashion and portrait photographer whose work has appeared in numerous magazines in both America and Europe. This book is graced with a lovely collection of 70 of her full color images that reveal the delicate beauty, fragility, and complexity of these gifts from nature that we call flowers. Her close-up photos emphasize each curling petal and every subtle shift of color the way only a butterfly might perceive it. This is a visual treat you are certain to enjoy and I highly recommend adding this title to your personal library.
Portrait Photography: Secrets Of Posing & Lighting; by
Mark Cleghorn, Lark Books/Sterling Publishing; 128 pages; $29.95; (ISBN 1-57990-548-X)
Mark Cleghorn has transformed an in depth course on posting and lighting into an easy to follow guide that will help you create professional quality portraits with ease. His carefully structured course includes information on various forms of lighting and camera equipment from soft boxes to umbrellas and beyond. He also offers advice on posing your subject, expressing relationships between subjects, finding the best viewpoint, and tips on trouble-shooting common problems. With his expert assistance you will soon be able to capture all varieties of portraits from dramatic to carefree.
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- Get Started in Fashion Photography with These Great Tips from Top Pro Clinton Lubbe (VIDEO)
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- Do Photographs Suck When You Put a Gigantic $80 1000mm Lens on a Sony A6500? Watch the VIDEO