Carphone Warehouse CPW Half Yearly Report

  Carphone Warehouse (CPW) - Half Yearly Report

RNS Number : 0517R
Carphone Warehouse Group PLC
14 November 2012




                                      



14 November 2012



Embargoed until 7am

                                      

                         Carphone Warehouse Group plc

                                      

           Interim results for the 6 months ended 30 September 2012



               Encouraging H1 performance, return to LFL growth



· Strong postpay momentum drives H1 like-for-like revenue growth of 1.6%
for CPW Europe

· Continued revenue and postpay subscriber growth for Virgin Mobile France

· Group statutory PBT up 57% to £8.3m (2011: £5.3m)

· Group Headline PBT up 30% to £8.6m (2011: £6.6m)

· Group Headline EPS of 1.6p (2011: 1.3p), 20% growth

· Interim dividend of 1.75p (2011: 1.75p) payable in December 2012

· Reiterating full year guidance (EPS range 11.5p - 13.0p)



 CPW Europe (50% joint venture)



· H1 like-for-like revenue up 1.6% (Q2 like-for-like up 5.0%)

· UK H1 like-for-like revenue up 5% (UK Q2 like-for-like up 10%)

· Headline EBIT of £12.5m (2011: £20.0m), ahead of guidance, year-on-year
affected by weak prepay market as previously highlighted

· Full year expectations in line with previous guidance (EBIT range £130m
- £150m)



Virgin Mobile France (46% joint venture)



· H1 revenue growth of 9.2% at a constant currency

· H1 postpay net adds of 80,000 (Q2 23,000)

· H1 EBIT £8.1m (2011: £8.0m), in line with expectations

· Full year guidance remains unchanged (revenue growth 5-10%; Headline
EBIT broadly flat in Euros, before investment in quad-play)



A reconciliation of Headline results to statutory results is provided in note
4 to the financial review.





Roger Taylor, CEO said:



"We have delivered a good performance in a dynamic mobile market, with sales
benefitting from our renewed focus and specific investment initiatives. As a
result, we have substantially increased our market share of UK postpay volumes
and, while the prepay market remains weak, we hope for an improvement in the
second half as the product pipeline continues to broaden. In Continental
Europe, we have also been exploring growth opportunities for the business
through potentially long-term strategic partnerships. Virgin Mobile France has
grown its revenue and postpay customer base, despite intense competition, and
is starting to benefit as it moves its customers onto its Full MVNO
infrastructure.



"Looking ahead, we reiterate our full year guidance, we continue to focus on
operational execution across the business and we remain well-placed to benefit
from a strong product cycle."





Overview



The Group has worked hard on a number of initiatives over the past 6 months.



In our core business we have continued to drive postpay volumes with
substantial market share gains in the UK, through our weekly 'Smart Deals' and
key product launches. Postpay connections for the Group grew in H1 (with a
particularly strong performance in Q2). Volume gains have been driven by
investment in the proposition and this supports our strategy of long-term
value creation through increasing scale. Although the prepay market remains
weak (down 30-40% over the past 12 months), we expect an improvement in prepay
for the second half of the year as the product pipeline continues to broaden.
Total connections for the Group were down 11.5% in H1, affected by weak
prepay, with the decline in connections abating in Q2 (down 5.6%) as compared
with Q1 (down 17.8%).



As important as the product pipeline is to our performance, our in-store
operational execution is imperative and here too we have been making
significant progress.



By Christmas we will have c.280 Wireless World stores in the UK and key
elements of the Wireless World format in the remaining 500 UK stores. Customer
satisfaction scores are at an all-time high proving that the look and feel of
our stores and the in-store service are resonating well with our customers.



We have also made significant progress with the reorganisation of CPW Europe
in order to reshape the business and focus on our core proposition. Following
the creation of an autonomous UK and Ireland business and standalone European
markets, group functions have been reduced, resulting in considerable cost
savings.



Virgin Mobile France grew revenue and its postpay customer base during the
period despite intense competition. The business continues to transfer
customers to its Full MVNO infrastructure with over 300,000 customers on this
platform at the end of September.





Outlook



    In CPW Europe we are encouraged by our market share gains and strong
    like-for-like performance in the first half and we reiterate guidance for
    the full year of £130m - £150m Headline EBIT as we continue to invest in
    the proposition and build on the momentum we are already seeing within the
    business.



    While the industry and economic environment remain challenging, we have
    reasons to be optimistic. The product pipeline in postpay continues to
    excite consumers as smartphone technology further evolves, with good
    visibility now of 4G development across Europe. We are also hopeful of
    higher penetration of smartphones into the prepay category this Christmas
    as the range broadens and prices become more attractive.

    

    CPW Europe is undergoing a restructuring process, mentioned above. We
    expect the reorganisation to bring significant benefits with annualised
    pre-tax savings of between £20m and £25m. The programme is expected to
    give rise to exceptional charges in the second half of the financial year,
    with provisional estimates of one-off pre-tax cash costs of between £20m
    and £25m, together with asset write-downs of between £5m and £10m, both of
    which will be excluded from Headline earnings.



    In Europe we have been exploring growth opportunities for the business
    through partnerships. We have a number of trial stores running with
    potential partners and we are pleased with the performance of these stores
    so far. We will continue to explore these opportunities to gain scale in a
    number of our mainland European markets.



    Virgin Mobile France's migration to Full MVNO continues to go well,
    providing the opportunity to enhance revenue, reduce costs and provide a
    more flexible strategic platform.





    Analysts' presentation and webcast



There will be a presentation for investors and analysts at 9.00 am this
morning at the offices of UBS Investment Bank, 1 Finsbury Avenue, London, EC2M
2PP.



The event will be audio webcast and the presentation slides will be available
on our website, www.cpwplc.com.



Dial-in details - UK/International: +44 (0)20 3140 8286, USA: +1 646 254 3361,
passcode 9448446

Seven day replay - UK/International: +44 (0)20 3427 0598, USA: +1 347 366
9565, passcode 9448446#.





    Next announcement

The Group will provide an interim management statement for the third quarter
of the current financial year on Thursday 24 January 2013.



    For analyst and institutional enquiries

Kate Ferry, IR
Director 07748 933
206

Kerry Becker, IR Manager
07748 910 861



    For media enquiries

Shane Conway, Head of PR, CPW Europe 07932 199 659

Anthony Carlisle (Citigate Dewe Rogerson) 07973 611
888


 020
7638 9571









Performance review



CPW Europe (50% stake)



Headline income statement (100% basis) *



                                                                   Restated *

                                    6 months ended 30        6 months ended 30
                                       September 2012           September 2011

                                                   £m                       £m
Revenue                                       1,660.0                  1,537.6
Gross margin                                    418.1                    444.4
GM %                                            25.2%                    28.9%
Operating expenses                            (365.6)                  (381.2)
EBITDA                                           52.5                     63.2
Depreciation and                               (40.0)                   (43.2)
amortisation
EBIT                                             12.5                     20.0
EBIT%                                            0.8%                     1.3%
Interest                                        (4.7)                   (10.0)
Tax                                             (1.7)                    (2.9)
PAT                                               6.1                      7.1
Group share                                       3.0                      3.5

* Prior year Headline results have been restated to exclude the results of
businesses which have been discontinued. For further details see notes 4 and
6 to the financial review.



CPW Europe generated revenues of £1,660.0m, an increase of 8.0% year-on-year
(2011: £1,537.6m). This growth was principally driven by our dealer business
which helped to offset an adverse movement on foreign exchange and the absence
of revenues from Phone House Belgium, which was sold in the second half of
last year.



Revenues also benefitted from like-for-like growth of 1.6% in the first half,
with the second quarter particularly strong at 5.0%, driven primarily by
significant postpay growth in our UK business. Continuing the pattern seen in
the second half of last year, increasingly attractive consumer propositions
drove year-on-year growth in high-end smartphones, resulting in higher revenue
per connection. Alongside this, the UK business' successful 'Smart Deal'
promotions drove volume in the low-tier postpay segment.



As anticipated, the prepay market remained subdued during the first half of
the year, reflecting reduced subsidies from network operators following
regulatory cuts to mobile termination rates in 2011. We continue to expect
increasingly attractive prepay smartphone propositions to come to market, and
hope that this will reinvigorate this segment in the second half of the year.



As a result of continued weakness in the prepay segment, connection volumes
dropped year-on-year by 11.5% from 5.0m to 4.4m.



CPW Europe opened or re-sited 69 stores and closed the same number, ending the
period at 2,393 stores, the same number as at the beginning of the year.
Within this portfolio, the number of franchise stores increased from 338 at
March 2012 to 346 at the end of the period, primarily reflecting growth in
France and Spain.



CPW Europe's gross margin percentage decreased by 370 basis points
year-on-year to 25.2% (2011: 28.9%). The majority of this reduction reflects
the increased low margin dealer activity, with gross margins on the core
business down by approximately 180 basis points. This principally reflects a
year-on-year increase in the proportion of high value smartphones, which have
a lower gross margin percentage than lower value postpay, and a continuation
of the pressure on gross margins in this category seen in the second half of
last year. As we start to annualise against these patterns, we do not expect
this reduction to be repeated in the second half of the year.



Operating expenses decreased by 4.1% year-on-year to £365.6m (2011: £381.2m)
largely reflecting the effects of a weaker Euro and the absence of operating
expenses from Phone House Belgium.



CPW Europe's Headline EBIT decreased from £20.0m to £12.5m, slightly better
than expected and principally reflecting the year-on-year deterioration in the
prepay market.



The interest charge for the period was £4.7m (2011: £10.0m). The prior period
includes the write-off of facility fees relating to a receivables financing
arrangement, which was replaced by a new revolving credit facility in July
2011. The reduction in the underlying interest charge year-on-year largely
reflects lower margins payable under the new facility, together with lower
underlying interest rates.



CPW Europe had an effective tax rate of 21.5% (2011: 29.0%). We expect the
full year effective rate to be broadly in line with the rate in the first
half, slightly higher than last year's full year rate of 18.5%, which
reflected the resolution of various uncertainties during the year.



During the first half, CPW Europe undertook a review of its UK and Group
organisational structure, with a view to simplifying group functions and
giving more autonomy and accountability to individual business units. As a
result of this exercise, we expect redundancy and other restructuring costs in
the second half of the year.



CPW Europe is also reviewing its European operations and has announced plans
to reduce its store portfolio and operating cost base in France, given the
challenging mobile market conditions there. The current intention is to exit
approximately 80 stores, subject to consultation with employee
representatives.



Our provisional estimate is that these restructuring programmes will result in
one-off pre-tax cash costs of between £20m and £25m, together with asset
write-downs of between £5m and £10m, both of which will be excluded from
Headline earnings. We expect these programmes to provide annualised pre-tax
savings of between £20m and £25m.



Cash flow (100% basis)



                                  6 months ended 30          6 months ended 30
                                     September 2012             September 2011

                                                 £m                         £m
Headline EBITDA                                52.5                       63.2
Working capital                              (91.1)                    (134.7)
Capex                                        (36.7)                     (44.2)
Operating free cash flow                     (75.3)                    (115.7)
Best Buy Mobile                                   -                       45.0
Best Buy UK                                  (22.2)                     (45.4)
Other                                        (14.2)                     (15.6)
Movement in net debt                        (111.7)                    (131.7)
Opening net (debt) funds                     (29.4)                      131.7
Closing net debt                            (141.1)                          -





Headline EBITDA reduced year-on-year to £52.5m (2011:£63.2m) forthe reasons
described above.



The business saw the usual seasonal working capital outflow in the first half.
The absorption of working capital was £91.1m inthe period, down from £134.7m
in the first half of last year, reflecting the first impact of newly
negotiated payment structures with the network operators. We expect the
benefit of these terms to build in the second half and continue to target a
working capital inflow of over £100m for the full year.



Capex spend reduced to £36.7m (2011: £44.2m) principally reflecting fewer
store openings during the period.



Cash outflows associated with Best Buy UK were £22.2m, predominantly
reflecting property exit costs, the charge for which was booked during
2011-12. We expect further cash outflows in the region of £25m in the second
half, as the remaining leases are assigned.



Other cash flows reflect interest and tax payments, and the settlement of
incentive plans associated with Best Buy Mobile, the cost of which was booked
during 2011-12.



At the end of the period, CPW Europe had net debt of £141.1m, up from £29.4m
at the start of the period, reflecting the cash flows described above.



Virgin Mobile France (46.3% stake)



Headline income statement (100% basis) *



                                    6 months ended 30        6 months ended 30
                                       September 2012           September 2011

                                                   £m                       £m
Revenue                                         191.7                    193.0
EBITDA                                           11.5                      9.8
Depreciation and                                (3.4)                    (1.8)
amortisation
EBIT                                              8.1                      8.0
EBIT %                                           4.2%                     4.1%
Interest                                        (0.8)                    (1.5)
Taxation                                        (2.6)                    (2.2)
PAT                                               4.7                      4.3
Group share                                       2.3                      2.0



* See note 6 to the financial review.



Virgin Mobile France revenue was broadly flat year-on-year on an actual
currency basis at £191.7m (2011: £193.0m) reflecting underlying revenue growth
offset by a weakening of the Euro year-on-year. Revenue at a constant currency
was up by 9.2%, driven by continued growth in the postpay base and by mobile
termination revenue, which was earned for the first time towards the endof
the prior year. These factors helped to offset the effects of downward
pressure on outbound ARPU caused by a highly competitive market.



While the total customer base was down year-on-year at 1.88m customers (2011:
2.01m) the postpay base, which is of significantly higher value, increased by
6.9% year-on-year to 1.42m (2011: 1.33m) and by 80,000 since March 2012. The
business continues to perform strongly despite intense market competition,
maintaining its focus on innovative propositions and high quality customer
service to provide differentiation.



Virgin Mobile France has deliberately reduced focus on the low value prepay
market, in which there is less visibility of returns on investment.



The level of investment in Virgin's quad-play proposition has been modest in
the first half. The proposition remains in its infancy and has to date
principally been used as a retention tool, although it provides the business
with opportunities to develop its customer reach.



During the period the business continued to develop its Full MVNO
infrastructure, which enables it to participate more fully in customer revenue
streams, including termination revenues, and to reduce its operating costs. At
the end of September over 300,000 customers were on this platform and the
business remains on track to hit its target of 50% of customers on the Full
MVNO by March 2013.



The business produced a Headline EBIT margin of 4.2% (2011: 4.1%) with an
improved EBITDA margin offsetting the effect of increased depreciation and
amortisation on the Full MVNO infrastructure.



Interest decreased year-on-year from £1.5m to £0.8m, reflecting lower average
debt following loan repayments over the last 18 months.



The tax charge increased to £2.6m (2011: £2.2m) primarily reflecting the
higher level of earnings described above.



Virgin Mobile France recorded amortisation on acquisition intangibles arising
on the acquisition of Tele2 France, of which the Group's post-tax share is
£0.3m (2011: £0.9m). This charge is excluded from Headline results to avoid
distortion of underlying performance.





Cash flow (100% basis)



                                  6 months ended 30          6 months ended 30
                                     September 2012             September 2011

                                                 £m                         £m
EBITDA                                         11.5                        9.8
Working capital                                 8.7                        7.2
Capex                                        (12.2)                      (5.9)
Operating free cash flow                        8.0                       11.1
Other                                         (1.7)                        0.2
Movement in net debt                            6.3                       11.3
Opening net debt                             (40.4)                     (63.6)
Closing net debt *                           (34.1)                     (52.3)



* Comprises shareholder loans of £44.0m (2011: £57.2m) and net cash of £9.9m
(2011: £4.9m).



EBITDA increased from £9.8m to £11.5m for the reasons described above. Capex
increased year-on-year to £12.2m (2011:£5.9m) reflecting capex relating to
the Full MVNO deferred from last year.



The business recorded a working capital inflow of £8.7m (2011: £7.2m)
reflecting timing differences around the end of the period.



Other cash flows reflect interest and tax payments and the impact of foreign
exchange.



Other Group financials



Headline income statement

                                                                     Restated

                       6 months ended 30 September 6 months ended 30 September
                                              2012                        2011

                                                £m                          £m

                                                                            

                                                 
Revenue                                        5.4                         2.8
Operating expenses                           (3.3)                       (3.0)
Joint ventures
- CPW Europe                                   3.0                         3.5
- Virgin Mobile France                         2.3                         2.0
Interest                                       1.2                         1.3
Profit before tax                              8.6                         6.6
Taxation                                     (1.2)                       (0.7)
Profit after tax                               7.4                         5.9
Earnings per share                            1.6p                        1.3p





Revenue increased to £5.4m (2011: £2.8m) reflecting consultancy income
associated with the disposal of the Group's interest in Best Buy Mobile.
Operating expenses were £3.3m (2011: £3.0m) with the increase primarily
reflecting incremental investment in Global Connect.



Net interest income for the period decreased to £1.2m (2011: £1.3m)
principally reflecting a reduction in loans to Virgin Mobile France.



A tax charge of £1.2m arose in the period (2011: £0.7m) increasing in line
with pre-tax profitability from wholly-owned operations.





Statutory results

                                           6 months ended 30 6 months ended 30
                                              September 2012    September 2011

                                                          £m                £m
Headline profit after tax                                7.4               5.9
Share of discontinued businesses within                    -             (0.4)
CPW Europe (post-tax)
Share of amortisation of acquisition                   (0.3)             (0.9)
intangibles within Virgin Mobile France
(post-tax)
Statutory profit after tax                               7.1               4.6
Earnings per share                                      1.5p              1.0p



Discontinued businesses within CPW Europe represent Best Buy Mobile and Best
Buy UK, which were respectively disposed of and closed last year. The results
of these businesses have been excluded from Headline results in order to
provide visibility of the performance of the continuing business.



The Group's post-tax share of amortisation of acquisition intangibles in
Virgin Mobile France was £0.3m (2011: £0.9m). This charge is excluded from
Headline results to avoid distortion of underlying performance.



Areconciliation between Headline results and statutory results isprovided in
note 4 to the financial review.



Net funds and dividends



The Group closed the period with net funds of £81.0m, down from £102.7m at
March 2012, and loans receivable from Virgin Mobile France of £21.2m, down
from £24.3m at March 2012. Cash outflows during the period reflect
distributions to shareholders of £48.3m, partially offset by the settlement of
receivables, primarily from CPW Europe.



The Board has declared an interim dividend of 1.75p per share, in line with
last year's interim distribution. The ex-dividend date is Wednesday 21
November 2012, with a record date of Friday 23 November 2012 and an intended
payment date of Friday 14December 2012.







FINANCIAL REVIEW



Condensed consolidated income statement (6 months ended 30 September 2012 and
30 September 2011)





                                        Restated*     Restated*         
                     Headline                          Headline
                              Non-Headline* Statutory           Non-Headline* Statutory
                     6 months ended 30 September 2012  6 months ended 30 September 2011
                                          (Unaudited)                       (Unaudited)
           Notes           £m            £m        £m        £m            £m        £m
Revenue      2            5.4             -       5.4       2.8             -       2.8
Cost of
sales                       -             -         -         -             -         -
Gross
profit                    5.4             -       5.4       2.8             -       2.8
Operating
expenses                (3.3)             -     (3.3)     (3.0)             -     (3.0)
Share of
results of
joint
ventures    2,6           5.3         (0.3)       5.0       5.5         (1.3)       4.2
Profit
before
interest,
investment
income and
taxation                  7.4         (0.3)       7.1       5.3         (1.3)       4.0
Interest
income                    1.0             -       1.0       1.4             -       1.4
Interest
expense                     -             -         -     (0.2)             -     (0.2)
Investment
income                    0.2             -       0.2       0.1             -       0.1
Profit
before
taxation                  8.6         (0.3)       8.3       6.6         (1.3)       5.3
Taxation                (1.2)             -     (1.2)     (0.7)             -     (0.7)
Net profit
for the
period                    7.4         (0.3)       7.1       5.9         (1.3)       4.6
Earnings
per share
Basic        5           1.6p                    1.5p      1.3p                    1.0p
Diluted      5           1.5p                    1.5p      1.2p                    1.0p






* Non-Headline items comprise the results of businesses which have been discontinued by
the Group's joint ventures, and amortisation of acquisition intangibles. Prior year
Headline results have been restated to exclude the results of businesses which have
been discontinued by the Group's joint ventures. A reconciliation of Headline results
to statutory results is provided in note 4.











Condensed consolidated income statement (6 months ended 30 September 2012 and
year ended 31 March 2012)





                 Headline Non-Headline* Statutory Headline Non-Headline*   
                                                                         Statutory
                 6 months ended 30 September 2012         Year ended 31 March 2012
                                      (Unaudited)                        (Audited)
           Notes       £m            £m        £m       £m            £m        £m
Revenue      2        5.4             -       5.4      6.4             -       6.4
Cost of
sales                   -             -         -        -             -         -
Gross
profit                5.4             -       5.4      6.4             -       6.4
Operating
expenses            (3.3)             -     (3.3)    (5.4)        (20.6)    (26.0)
Share of
results of
joint
ventures    2,6       5.3         (0.3)       5.0     54.4        (88.5)    (34.1)
Profit
(loss)
before
interest,
investment
income and
taxation              7.4         (0.3)       7.1     55.4       (109.1)    (53.7)
Interest
income                1.0             -       1.0      2.9             -       2.9
Interest
expense                 -             -         -    (0.2)             -     (0.2)
Investment
income                0.2             -       0.2      0.2         813.0     813.2
Profit
before
taxation              8.6         (0.3)       8.3     58.3         703.9     762.2
Taxation            (1.2)             -     (1.2)    (0.6)           0.9       0.3
Net profit
for the
period                7.4         (0.3)       7.1     57.7         704.8     762.5
Earnings
per share
Basic        5       1.6p                    1.5p    12.6p                  167.0p
Diluted      5       1.5p                    1.5p    12.1p                  159.6p






* Non-Headline items comprise exceptional items, the results of businesses which
have been discontinued by the Group's joint ventures, and amortisation of
acquisition intangibles. A reconciliation of Headline results to statutory results
is provided in note 4.

















Condensed consolidated statement of comprehensive income





                             6 months ended 30 6 months ended 30 Year ended 31
                                September 2012    September 2011    March 2012

                                   (Unaudited)       (Unaudited)     (Audited)
                                            £m                £m           £m
Net profit for the period                  7.1               4.6         762.5
Currency translation                     (7.2)             (6.6)        (11.9)
Total recognised income and              (0.1)             (2.0)         750.6
expenses for the period





Condensed consolidated statement of changes in equity



6 months ended 30 September 2012

                      Share                                     Capital
              Share premium Accumulated Translation Demerger redemption
            capital reserve     profits     reserve  reserve    reserve  Total
                 £m      £m          £m          £m       £m         £m     £m
At the         33.4   170.0       697.8         0.1  (750.2)      556.9  708.0
beginning
of the
period
Total                                                                  
recognised
income and        -       -         7.1       (7.2)        -          -  (0.1)
expenses
for the
period
Redemption   (32.9)       -      (32.9)           -        -       32.9 (32.9)
of shares
Equity            -       -      (15.4)           -        -          - (15.4)
dividends
Capital           -       -       589.8           -        -    (589.8)      -
reduction
Share of                                                               
other
reserve                                                                
movements
of joint          -       -         0.8           -        -          -    0.8
ventures
At the end      0.5   170.0     1,247.2       (7.1)  (750.2)          -  660.4
of the
period





6 months ended 30 September 2011

                      Share                                     Capital
              Share premium Accumulated Translation Demerger redemption
            capital reserve     profits     reserve  reserve    reserve  Total
                 £m      £m          £m          £m       £m         £m     £m
At the          0.5   754.0       741.7        12.0  (750.2)          -  758.0
beginning
of the
period
Total                                                                  
recognised
income and        -       -         4.6       (6.6)        -          -  (2.0)
expenses
for the
period
Equity            -       -      (22.7)           -        -          - (22.7)
dividends
Net               -       -       (7.0)           -        -          -  (7.0)
purchase of
own shares
Tax on                                                                 
items
recognised        -       -       (0.2)           -        -          -  (0.2)
directly in
reserves
Share of                                                               
other
reserve           -       -         0.5           -        -          -    0.5
movements
of joint
ventures
Net                                                                    
movement in
relation to       -       -         0.7           -        -          -    0.7
share
schemes
At the end      0.5   754.0       717.6         5.4  (750.2)          -  727.3
of the
period

        

Year ended 31 March 2012

                     Share                                     Capital
             Share premium Accumulated Translation Demerger redemption
           capital reserve     profits     reserve  reserve    reserve   Total
                £m      £m          £m          £m       £m         £m      £m
At the         0.5   754.0       741.7        12.0  (750.2)          -   758.0
beginning
of the
year
Total                                                                  
recognised
income and       -       -       762.5      (11.9)        -          -   750.6
expenses
for the
year
Issue of     589.8 (584.0)           -           -        -          -     5.8
shares
Redemption (556.9)       -     (556.9)           -        -      556.9 (556.9)
of shares
Equity           -       -     (253.6)           -        -          - (253.6)
dividends
Net              -       -      (16.0)           -        -          -  (16.0)
purchase
of own
shares
Tax on                                                                 
items
recognised       -       -       (0.2)           -        -          -   (0.2)
directly
in
reserves
Share of                                                               
other
reserve          -       -         0.7           -        -          -     0.7
movements
of joint
ventures
Net                                                                    
movement
in               -       -        19.6           -        -          -    19.6
relation
to share
schemes
At the end    33.4   170.0       697.8         0.1  (750.2)      556.9   708.0
of the
year

        

Condensed consolidated balance sheet



                              30 September 2012 30 September 2011    31 March

                                  (Unaudited)        (Unaudited)        2012

                                                                   (Audited)
                        Notes                £m                £m          £m
Non-current assets
Property, plant and
equipment                                  65.6               67.4        66.1
Non-current asset
investments                                 0.1                0.1         0.1
Interests in joint
ventures                  6               531.0              582.1       535.5
Deferred tax assets                         1.2                1.1         1.3
                                          597.9              650.7       603.0
Current assets
Trade and other
receivables                                 2.3                6.3        21.3
Cash and cash
equivalents                                81.0               97.1       102.7
                                           83.3              103.4       124.0
Total assets                              681.2              754.1       727.0
Current liabilities
Trade and other
payables                                 (10.8)             (13.5)      (10.1)
Corporation tax
liabilities                               (1.1)              (1.8)           -
Provisions                                (8.9)             (11.5)       (8.9)
Total liabilities                        (20.8)             (26.8)      (19.0)
Net assets                                660.4              727.3       708.0
Equity
Share capital                               0.5                0.5        33.4
Share premium reserve                     170.0              754.0       170.0
Accumulated profits                     1,247.2              717.6       697.8
Translation reserve                       (7.1)                5.4         0.1
Demerger reserve                        (750.2)            (750.2)     (750.2)
Capital redemption
reserve                                       -                  -       556.9
Funds attributable to
equity shareholders                       660.4              727.3       708.0

    



    Approved by the Board of Carphone Warehouse Group plc

13 November 2012



Condensed consolidated cash flow statement



                             6 months ended 30 6 months ended 30 Year ended 31
                                September 2012    September 2011    March 2012

                                   (Unaudited)       (Unaudited)     (Audited)
                                           £m               £m           £m
Operating activities
Profit (loss) before
interest, investment income
and taxation                               7.1               4.0        (53.7)
Adjustments for non-cash
items:
 Share-based payments                   -               0.7          14.9
 Non-cash movements on
joint ventures                           (5.0)             (4.2)          34.1
 Depreciation                         0.6               0.5           1.0
 Impairment                             -                 -           0.8
Operating cash flows before
movements in working
capital                                    2.7               1.0         (2.9)
Decrease (increase) in
trade and other receivables               19.0               0.2         (4.2)
Increase (decrease) in
trade and other payables                   0.7             (2.3)             -
Decrease in provisions                       -             (1.7)         (4.3)
Cash flows from operating
activities                                22.4             (2.8)        (11.4)
Taxation paid                                -                 -         (0.9)
Net cash flows from
operating activities                      22.4             (2.8)        (12.3)


Investing activities
Investment income received                 0.2               0.1         813.2
Interest received                          1.0               1.4           2.9
Acquisition of property,
plant and equipment                      (0.1)             (0.5)         (0.5)
Net receipts from joint
ventures                                   2.1               7.4           9.9
Cash flows from investing
activities                                 3.2               8.4         825.5
Financing activities
Settlement of financial
instruments                                1.0               0.8           1.5
Net purchase of own shares                   -             (7.0)        (27.7)
Equity dividends paid                   (15.4)            (22.7)       (253.6)
Shares redeemed                         (32.9)                 -       (556.9)
Interest paid                                -             (0.2)         (0.2)
Repayment of VES loans                       -                 -           5.8
Cash flows from financing
activities                              (47.3)            (29.1)       (831.1)
Net decrease in cash and
cash equivalents                        (21.7)            (23.5)        (17.9)
Cash and cash equivalents
at the start of the period               102.7             120.6         120.6
Cash and cash equivalents
at the end of the period                  81.0              97.1         102.7







1 Basis of preparation and accounting policies





General information



A copy of the Carphone Warehouse Group plc annual report for the year ended 31
March 2012 ("Annual Report") can be found on the Group's website
www.cpwplc.com and a copy has been delivered to the Registrar of Companies.
The report of the Group's auditors was unqualified, did not draw attention to
any matters by way of emphasis and did not contain a statement under section
498(2) or (3) of the Companies Act 2006. The information included in this
document for the year ended 31 March 2012 does not constitute statutory
accounts as defined in section 434 of the Companies Act 2006. The financial
statements for the 6 months ended 30 September 2012 and the 6 months ended 30
September 2011 have not been subject to audit or review by the Group's
auditors.



Basis of preparation



The financial statements of the Group are prepared in accordance with IFRS.
The condensed financial statements included in this half year report have been
prepared in accordance with IAS 34 'Interim Financial Reporting'.



Going concern



At 30 September 2012 the Group had cash and cash equivalents of £81.0m
(September 2011: £97.1m, March 2012: £102.7m).



The directors have reviewed the future cash and profit forecasts of the
Group's joint venture investments and other businesses, which they consider to
be based on prudent assumptions. The directors are of the opinion that the
forecasts, which reflect both the current uncertain economic outlook and
reasonably possible changes in trading performance, show that these businesses
and the Group should be able to operate within their facilities and comply
with their banking covenants. In arriving at this conclusion the directors
were mindful that the Group has significant cash and cash equivalents.



Accordingly the directors have a reasonable expectation that the Group has
adequate resources to continue in operation for the foreseeable future and
consequently the directors continue to adopt the going concern basis in the
preparation of the financial statements.



Accounting policies



These interim condensed financial statements have been prepared using
accounting policies and methods of computation consistent with those set out
on pages 55 to 60 of the Annual Report, along with the definitions that are
set out on page 85 of the same document.

.

  2 Segmental reporting



Segmental results are analysed as follows:



6 months ended 30 September                         Virgin
2012                                                Mobile
                                       Best Buy     France
                                         Europe
                                                (see note Wholly-owned
                                   (see note 6)         6)   operations  Total
                                             £m         £m           £m     £m
Revenue                                       -          -          5.4    5.4
Headline EBIT before share of
results of joint ventures                     -          -          2.1    2.1
Share of Headline results of
joint ventures (post-tax)                   3.0        2.3            -    5.3
Headline EBIT                               3.0        2.3          2.1    7.4
Share of amortisation of joint
venture acquisition intangibles
(post-tax)                                    -      (0.3)            -  (0.3)
Statutory EBIT (segment results)            3.0        2.0          2.1    7.1
Assets                                    517.2       13.8        150.2  681.2
Liabilities                                   -          -       (20.8) (20.8)
Net assets                                517.2       13.8        129.4  660.4



6 months ended 30 September 2011                    Virgin
(restated)                             Best Buy     Mobile
                                         Europe     France

                                      (see note (see note Wholly-owned
                                             6)         6)   operations  Total
                                             £m         £m           £m     £m
Revenue                                       -          -          2.8    2.8
Headline EBIT before share of
results of joint ventures                     -          -        (0.2)  (0.2)
Share of Headline results of joint
ventures (post-tax)                         3.5        2.0            -    5.5
Headline EBIT                               3.5        2.0        (0.2)    5.3
Share of operating results of
discontinued businesses within
joint ventures (post-tax)                 (0.4)          -            -  (0.4)
Share of amortisation of joint
venture acquisition intangibles
(post-tax)                                    -      (0.9)            -  (0.9)
Statutory EBIT (segment results)            3.1        1.1        (0.2)    4.0
Assets                                    568.3       13.8        172.0  754.1
Liabilities                                   -          -       (26.8) (26.8)
Net assets                                568.3       13.8        145.2  727.3




Year ended 31 March 2012
                                                   Virgin
                                       Best Buy     Mobile
                                        Europe     France

                                     (see note (see note Wholly-owned
                                             6)         6)   operations  Total
                                             £m         £m           £m     £m
Revenue                                       -          -          6.4    6.4
Headline EBIT before share of
results of joint ventures                     -          -          1.0    1.0
Share of Headline results of joint
ventures (post-tax)                        48.3        6.1            -   54.4
Headline EBIT                              48.3        6.1          1.0   55.4
Exceptional items                             -          -       (20.6) (20.6)
Share of operating results of
discontinued businesses within
joint ventures (post-tax)                 (9.8)          -            -  (9.8)
Share of joint venture exceptional
items (post-tax)                         (77.4)          -            - (77.4)
Share of amortisation of joint
venture acquisition intangibles
(post-tax)                                    -      (1.3)            -  (1.3)
Statutory EBIT (segment results)         (38.9)        4.8       (19.6) (53.7)



Assets        521.0 14.5  191.5  727.0
Liabilities       -    - (19.0) (19.0)
Net assets    521.0 14.5  172.5  708.0











  3 Equity dividends



The following dividends and distributions were paid during the period:



                               6 months ended 30 6 months ended 30 Year ended
                                       September         September   31 March
                                            2012              2011       2012
                                              £m                £m         £m
Final dividend for the year                    -              22.7       22.7
ended 31 March 2011 of 5.0p
per ordinary share
Interim dividend for the year                  -                 -        7.9
ended 31 March 2012 of 1.75p
per ordinary share
Dividend of 172p per C share                   -                 -      223.0
through the B/C Share Scheme
Redemption of 172p per B                    32.9                 -      556.9
share through the B/C Share
Scheme
Final dividend for the year                 15.4                 -          -
ended 31 March 2012 of 3.25p
per ordinary share
                                            48.3              22.7      810.5



The interim dividend for the year ending 31 March 2013 is 1.75p per share at
an expected cost of £8.3m.

  



  4 Reconciliation of Headline results to statutory results



6 months ended 30 September                                         Net profit
2012                                    Profit before
                                interest, investment Profit before    for the
                                  income and taxation      taxation     period
                                                   £m            £m         £m
Headline results                                  7.4           8.6        7.4
Share of amortisation of joint
venture acquisition intangibles

(post-tax)                                      (0.3)         (0.3)      (0.3)
Statutory results                                 7.1           8.3        7.1



6 months ended 30 September                                         Net profit
2011 (restated)                         Profit before
                                interest, investment Profit before    for the
                                  income and taxation      taxation     period
                                                   £m            £m         £m
Headline results                                  5.3           6.6        5.9
Share of operating results of
discontinued businesses within
joint ventures (post-tax)                       (0.4)         (0.4)      (0.4)
Share of amortisation of joint
venture acquisition intangibles

(post-tax)                                      (0.9)         (0.9)      (0.9)
Statutory results                                 4.0           5.3        4.6

  

  

Year ended 31 March 2012                                            Net profit
                                 Profit (loss) before
                                 interest, investment Profit before    for the
                                  income and taxation      taxation       year
                                                   £m            £m         £m
Headline results                                 55.4          58.3       57.7
Group exceptional items                        (20.6)         792.4      793.3
Share of operating results of                                                
discontinued businesses within
joint ventures (post-tax)                       (9.8)         (9.8)      (9.8)
Share of joint venture
exceptional items (post-tax)                   (77.4)        (77.4)     (77.4)
Share of amortisation of joint
venture acquisition
intangibles (post-tax)                         (1.3)         (1.3)      (1.3)
Statutory results                              (53.7)         762.2      762.5





Headline results are shown before exceptional items, the results of businesses
which have been discontinued by the Group's joint ventures, and amortisation
of acquisition intangibles. Non-Headline items in the year ended 31 March 2012
predominantly relate to the disposal of Best Buy Mobile and the closure of
Best Buy UK. Full details can be found in note 4 to the Annual Report.
Headline information is provided because the directors consider that it
provides assistance in understanding underlying performance.

  

  5 Earnings per share



                                                                             
                                                        Restated
                                                                            
                                                       6 months
                           6 months ended 30                     Year ended 31
                                   September ended 30 September         March

                                        2012                2011          2012
Headline earnings (£m)                   7.4                 5.9          57.7
Statutory earnings (£m)                  7.1                 4.6         762.5
Weighted average number of
shares (millions)
Average shares in issue                472.8               457.1         460.1
Less average holding by
Group ESOT                             (0.2)               (3.1)         (3.5)
For basic earnings per
share                                  472.6               454.0         456.6
Dilutive effect of share
options and other
incentive schemes                        6.7                27.1          21.1
For diluted earnings per
share                                  479.3               481.1         477.7
Basic earnings per share
Headline                                1.6p                1.3p         12.6p
Statutory                               1.5p                1.0p        167.0p



Diluted earnings per share
Headline                   1.5p 1.2p  12.1p
Statutory                  1.5p 1.0p 159.6p

  

  Dilution in prior periods relates to incentive schemes which vested in the
  prior year.

  

  Dilution in the current period relates to an incentive scheme for senior
  Best Buy Europe employees, the Group's obligations for which are expected to
  be met using the Company's shares. Under the scheme, participants have the
  opportunity to share in earnings in excess of minimum growth targets,
  against the year ended 31 March 2009.

  

  A minimum value of the pool was agreed in the year ended 31 March 2012, in
  recognition of the value that had already accrued in the scheme in relation
  to Best Buy Mobile, which was disposed of in January 2012. The dilution
  reflected in the current period relates to this minimum value.

  

  The incentive scheme has a performance period to March 2015 and vests during
  2015. The scheme is not yet considered to be dilutive beyond the minimum
  pool value, since incremental relevant earnings to date do not exceed the
  total return required over the performance period. However, based on
  relevant earnings in the three years ended 31 March 2012 and the minimum
  rate of return over the same period, the additional dilution that would have
  arisen if the scheme had vested at that date would have been 3.1m shares.

  

  6 Interests in joint ventures



  Interests in joint ventures are as follows:

  

  Business        Principal activities      30 September 30 September 31 March
                                                    2012         2011
                                                                          2012
  Best Buy        Retail, distribution,          50.0%        50.0%    50.0%
  Europe          insurance, telecoms
                  services
  Virgin Mobile   MVNO                           46.3%        47.1%    46.6%
  France

  

The Group's interest in Virgin Mobile France reduced from 46.6% to 46.3%
during the period, following the exercise of share options by management of
Virgin Mobile France. In addition to share options, management hold warrants
that give them the right to acquire new shares at a price based on the value
of existing shareholder funding and an additional amount which increases with
the quantity of shares being acquired. The maximum potential dilution to the
Group's stake if all existing share options and warrants were exercised is
approximately 5.5%, although the value of this dilution would be partially
offset by cash inflows in relation to the proceeds on exercise.



  a) Group balance sheet interests



The Group's interests in joint ventures are analysed as follows:



  30 September 2012          Net assets (liabilities) Goodwill   Loans   Total
                                                  £m       £m      £m      £m
  Opening balance                             408.3    102.9    24.3   535.5
  Share of results                              5.0        -       -     5.0
  Loans repaid (net)                              -        -   (2.1)   (2.1)
  Share of other reserve                        0.8        -       -     0.8
  movements
  Foreign exchange                            (7.2)        -   (1.0)   (8.2)
  Closing balance                             406.9    102.9    21.2   531.0
                                                                       
  Best Buy Europe                             414.3    102.9       -   517.2
  Virgin Mobile France                        (7.4)        -    21.2    13.8
  Closing balance                             406.9    102.9    21.2   531.0



  30 September 2011          Net assets (liabilities) Goodwill   Loans   Total
                                                  £m       £m      £m      £m
  Opening balance                             453.6    102.9    35.7   592.2
  Share of results                              4.2        -       -     4.2
  Loans repaid (net)                              -        -   (7.4)   (7.4)
  Share of other reserve                        0.5        -       -     0.5
  movements
  Foreign exchange                            (6.6)        -   (0.8)   (7.4)
  Closing balance                             451.7    102.9    27.5   582.1
                                                                       
  Best Buy Europe                             465.4    102.9       -   568.3
  Virgin Mobile France                       (13.7)        -    27.5    13.8
  Closing balance                             451.7    102.9    27.5   582.1

  



  31 March 2012             Net assets (liabilities) Goodwill   Loans    Total
                                                 £m       £m      £m       £m
  Opening balance                            453.6    102.9    35.7    592.2
  Share of results                          (34.1)        -       -   (34.1)
  Loans repaid (net)                             -        -   (9.9)    (9.9)
  Share of other reserve                       0.7        -       -      0.7
  movements
  Foreign exchange                          (11.9)        -   (1.5)   (13.4)
  Closing balance                            408.3    102.9    24.3    535.5
                                                                       
  Best Buy Europe                            418.1    102.9       -    521.0
  Virgin Mobile France                       (9.8)        -    24.3     14.5
  Closing balance                            408.3    102.9    24.3    535.5



At the start of the prior period, Best Buy Europe had a £350m receivables
financing arrangement provided by a number of banks. This facility was
supplemented by a revolving credit facility of £125m provided equally by the
Company and Best Buy, and letters of support through which both companies were
committed to providing further funding to a maximum of £50m each.



In July 2011, Best Buy Europe secured a new £400m revolving credit facility
from its core bank group. This facility matures in July 2015. Following this
refinancing, the receivables financing arrangement, the shareholder revolving
credit facility and the letters of support were cancelled.



Loans are provided to Virgin Mobile France under a shareholder agreement;
funding requirements are agreed between the shareholders on a regular basis
and are provided in proportion to each party's shareholding.



  b) Analysis of profits and losses



  The Group's share of the results of its joint ventures is as follows:

  

  Best Buy Europe                                                         
                                                                         
                                                  Restated 6          
                                                  months ended 30
                                 6 months ended    September 2011          
                                   30 September
                                           2012                   Year ended
                                                                    31 March
                                                                        2012
                                            £m              £m           £m
Revenue                                   1,660.0         1,537.6      3,313.1
Headline EBITDA *                            52.5            63.2        219.6
Depreciation and amortisation              (40.0)          (43.2)       (84.6)
Headline EBIT                                12.5            20.0        135.0
Net interest expense                        (4.7)          (10.0)       (16.4)
Taxation on Headline results                (1.7)           (2.9)       (22.0)
  Headline profit after taxation              6.1             7.1         96.6
                                                                 
Group share of Headline profit                3.0             3.5         48.3
after taxation
Group share of operating results                -           (0.4)        (9.8)
of discontinued businesses
(post-tax)
Group share of exceptional items                -               -       (77.4)
(post-tax)
Group share of profit (loss)                3.0             3.1       (38.9)
after taxation

  

* Headline EBITDA includes the unwinding of discounts for the time value of
money on network commissions receivable over the life of the customer. This
unwind has a value of £4.4m in the 6 months ended 30 September 2012 (September
2011: £4.5m; March 2012: £8.7m) and is treated as interest income in the joint
venture's statutory results.





  Virgin Mobile France         6 months ended 30   6 months ended          
                                  September 2012     30 September
                                                             2011 Year ended
                                                                    31 March
                                                                        2012
                                             £m             £m           £m
Revenue *                                  191.7          193.0        390.2
Headline EBITDA **                          11.5            9.8         25.7
Depreciation and amortisation              (3.4)          (1.8)        (4.2)
Headline EBIT                                8.1            8.0         21.5
Net interest expense                       (0.8)          (1.5)        (2.5)
Taxation on Headline results               (2.6)          (2.2)        (6.7)
  Headline profit after                      4.7            4.3         12.3
  taxation
                                                                        
  Group share of Headline                    2.2            2.0          5.8
  profit after taxation before
  change in share ownership
  Gain on reduction of % share               0.1              -          0.3
  ownership
  Group share of Headline                    2.3            2.0          6.1
  profit after taxation
  Group share of amortisation              (0.3)          (0.9)        (1.3)
  of acquisition intangibles
  (post-tax)
  Group share of profit after                2.0            1.1          4.8
  taxation



* Revenue excludes contributions towards subscriber acquisition costs from
network operators and customers, as the directors

consider that this provides a better representation of underlying performance.
These items, which had a value of £29.8m in the 6 months ended 30 September
2012 (September 2011: £29.9m; March 2012: £71.0m) are netted off against
acquisition costs within EBITDA. Reported revenue on a statutory basis for
the 6 months ended 30 September 2012 is £221.5m (September 2011: £222.9m;
March 2012: £461.2m).



** Virgin Mobile France have commitments in place to purchase an agreed amount
of wholesale capacity at preferential rates from network operators in return
for a fixed fee. The fixed fee has been recognised as a non-current asset and
will be amortised over the period of the commitment. The amortisation of this
asset is recognised as a cost of sales within Headline EBITDA in line with
other network-related expenses. The amortisation has a value of £8.1m in the
period ended 30 September 2012 (September 2011: nil; March 2012: £4.2m) and is
treated as amortisation in the joint venture's statutory results.





  Total Group                                        Restated             
  share
               6 months ended 30 September   6 months ended 30             
                                      2012      September 2011
                                                               Year ended 31
                                                                  March 2012
                                       £m                £m              £m
Headline                               5.3               5.5            54.4
Statutory                              5.0               4.2          (34.1)











  c) Analysis of assets and liabilities



  The Group's share of the assets and liabilities of its joint ventures is as
  follows:



  Best Buy Europe           30 September 2012   30 September   31 March 2012
                                                        2011
                                          £m             £m              £m
Non-current assets                      682.2          618.9           662.4
Cash and overdrafts (net)                52.4          101.6           165.3
Other borrowings                      (193.5)        (101.6)         (194.7)
Other assets and                        287.6          312.0           203.2
liabilities (net)
Net assets                              828.7          930.9           836.2
                                                                         
Group share of net assets               414.3          465.4           418.1

  

  

  Virgin Mobile France      30 September 2012   30 September   31 March 2012
                                                        2011
                                          £m             £m              £m
Non-current assets                      114.8           92.6           127.4
Cash and overdrafts (net)                 9.9            4.9            10.1
Loans from the Group                   (21.2)         (27.5)          (24.3)
Other borrowings                       (22.8)         (29.7)          (26.2)
Other assets and                       (96.6)         (69.3)         (107.9)
liabilities (net)
Net liabilities                        (15.9)         (29.0)          (20.9)
                                                                         
Group share of net                      (7.4)         (13.7)           (9.8)
liabilities
                                                                         

  

Total Group share                     30 September   30 September   31 March
                                              2012           2011       2012
                                               £m             £m         £m
  Total Group share of net assets and        406.9          451.7      408.3
  liabilities of joint ventures
                                                                         



  

  

  7 Related party transactions



During the period, the Group had the following disclosable transactions and
balances with its joint ventures:



                     6 months ended 30 6 months ended 30                   
                        September 2012    September 2011
                                                         Year ended 31 March
                                                                        2012
                      Best Buy  Virgin  Best Buy  Virgin   Best Buy   Virgin
                        Europe  Mobile    Europe  Mobile     Europe   Mobile
                                France            France              France
                            £m      £m        £m      £m         £m       £m
Revenue for services       1.8       -       1.6       -        3.1        - 
provided
Net interest and             -     0.4       0.3     0.7        0.3      1.2 
other finance income
Loans owed to the            -    21.2         -    27.5          -     24.3 
Group
Other amounts owed         0.4       -       0.1     0.1       15.4        - 
to the Group
Other amounts owed       (0.4)   (0.1)     (0.2)       -          -        - 
by the Group



Revenue for services provided relates to investment property rental income.





8 Risks and uncertainties



The Group is subject to a number of risks and uncertainties which could have a
material effect on its results. The Group's principal risks, and the factors
which mitigate them, are set out in the Annual Report on pages 17, 24 and 26.
These risks remain consistent in the current period, and are summarised as
follows:



Best Buy Europe

· Uncertain consumer environment

· Dependence on key suppliers and customers

· Threat of competition

· Regulatory issues

· Reliance on information technology

· Foreign exchange fluctuations



Virgin Mobile France

· Uncertain consumer environment

· Dependence on key suppliers

· Threat of competition

· Reliance on information technology



Overall Group

· Principal investments are not controlled and the Group is therefore
reliant on alignment with joint venture partners





9 Statement of directors' responsibilities



The unaudited interim condensed financial statements for the 6 months ended 30
September 2012 have been prepared in accordance with IAS 34 'Interim Financial
Reporting', as adopted by the European Union and the Disclosure and
Transparency Directive Rules ("DTR"). The interim management report herein
includes a fair review of the important events during the first 6 months and
description of principal risks and uncertainties for the remainder of the
financial period, as required by DTR 4.2.7, and a fair review of disclosure of
related party transactions and changes therein, as required by DTR 4.2.8.



The directors of Carphone Warehouse Group plc are listed on page 35 of the
Annual Report and on the Group's website www.cpwplc.com.





                            By order of the Board



Nigel Langstaff

Chief Financial Officer

13 November 2012





                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


IR BCBDBRXBBGDX -0- Nov/14/2012 07:00 GMT