RNS Number:8574T
Woolworths Group PLC
28 March 2007
Woolworths Group plc
Preliminary Results Announcement
28 March 2007
for year ended 3 February 2007
Embargoed until 07.00hrs on 28 March 2007
Financial Highlights
* Total Group revenue from continuing operations #2,737.0 million, up
4.0 per cent.
* Like-for-like sales down 6.6 per cent. Third party sales in
Entertainment Wholesale and Publishing up 29.7 per cent.
* Adjusted profit* #21.8 million compared with #57.7 million last year.
* Profit before tax #16.0 million compared with #61.5 million.
* Adjusted basic earnings per share ** 1.2 p (2006: 2.8p).
* Proposed final dividend maintained at 1.34 p per share.
* Average net debt increased to #113 million compared with #37 million
last year.
* Capital expenditure #76.4 million (2006: #59.6 million).
Operating Highlights
* Woolworths' gross margin increased by 105 basis points.
* Entertainment Wholesale and Publishing business strengthened by
acquisition of THE and Bertram Group and contract to supply Virgin Retail.
* Multichannel revenue increased to #77.2 million.
* Successful launch of 'Big Red Book' Catalogue.
Trevor Bish-Jones, Chief Executive of Woolworths Group said:
"Last year was difficult for the Woolworths Group, particularly for the Retail
business. But we made some important investments which we believe will deliver
benefits for the business in the future. At EUK we have made extremely good
progress and have more than offset the loss of the Tesco contract with a number
of acquisitions and new contract wins. At Woolworths, our multichannel offer
has proved popular with customers who appreciate the option of being able to
shop on line, in store or through a catalogue as well as having access to a
wider range of products.
The retail environment is likely to remain challenging in the current year. The
first seven weeks of the new financial year have begun positively, but it is
early days and we will continue to manage the business tightly."
*Adjusted profit is calculated before tax, exceptional items, adjustment for
fixed rental uplifts and amortisation of certain intangible assets.
**Adjusted basic earnings is calculated before exceptional items, adjustment for
fixed rental uplifts and amortisation of certain intangible assets.
For further information contact:
Stephen East, Group Finance Director 020 7479 5179
Susanna Voyle, Tulchan Communications 020 7353 4200
Celia Gordon-Shute, Tulchan Communications 020 7353 4200
Overview of Financial Performance
Profit from continuing operations before tax and exceptional items fell from
#43.7 million to #7.3 million.
Adjusted profit (which is before tax, exceptional items, adjustment for fixed
rental uplifts and amortisation of certain intangible assets) fell from #57.7
million to #21.8 million. The results have benefited from a review of
accounting methodologies, which improved profits by #9 million. In addition,
there have been a number of one-off costs and benefits, which approximately
offset each other. These changes are fully detailed in the Financial Review.
Basic earnings per share improved from 0.7 pence to 0.9 pence. Adjusted
earnings per share, which removes the effect of exceptional items, and adjusts
for fixed rental uplifts and amortisation of certain intangible assets, fell
from 2.8 pence to 1.2 pence.
The results reflect a highly challenging retail environment, a year of
investment in our multichannel capability and store estate and a year of change
for our Entertainment Wholesale and Publishing business.
In the 53 weeks ended 3 February 2007, total Group revenue from continuing
operations was #2,737.0 million. This represents an increase of 4.0 %. There was
a marked contrast between the performance of the Retail business and that of our
Entertainment Wholesale and Publishing businesses. Overall Retail sales
decreased by 5.5% as we continued to experience decline in core markets and
increasing competition. Sales in the Entertainment Wholesale and Publishing
businesses increased by 29.7 % as our customer base outperformed the market and
we saw the benefit of acquisitions made during the year.
The Group's average net debt increased to #113 million from #37 million in the
prior year. The year-end net debt was #103.3 million compared to net cash of
#147.7 million in the prior year. This reflects the effects of the 53rd week,
with approximately #100 million of supplier payments which would not usually be
due until after the balance sheet date, together with the completion of the
acquisition of Bertram Group Limited on 1 February 2007, the earlier acquisition
of THE and the working capital needs of the Entertainment Wholesale business.
In the retail business, capital expenditure was #62.4 million, reflecting the
acceleration of the store refit programme and investment in multichannel
capability which together more than offset the benefits from reduced stock
levels.
A maintained final dividend of 1.34 pence per share has been recommended by the
Board. This will be paid, subject to shareholder consent, on 21 June 2007 to
shareholders on the register at close of business on 10 April 2007. This
proposed dividend together with the interim dividend of 0.43 pence per share
paid on 12 December 2006 brings the total dividend for the year to 1.77 pence
per share, compared to a total of 1.75 pence per share in the prior year.
Retail
During the year, like-for-like Retail sales fell by 6.6%. The adjusted loss from
the continuing retail operations was #12.9 million against a profit in the prior
year of #17.1 million. It is obviously disappointing that Retail moved into a
loss. The key driver was not failure to control margins or costs but rather the
underlying sales performance, which was worse than anticipated. A combination of
factors held back the sales performance, the most material of which were:
significant price deflation in the entertainment market; continued expansion of
the supermarkets into non food markets; and declining levels of High Street
footfall particularly in the summer.
Across the categories, trading performance was variable. The strongest area was
the Toys and Stationery business unit. Here, absolute sales increased
year-on-year, evidencing the value of a differentiated product offer. Our Chad
Valley brand continues to underpin performance.
The weakest sales performances were in the Entertainment sectors and the
Confectionery product categories. A recurrent theme in these markets is the
increasingly commoditised nature of the product. A chart CD or a Christmas tin
of confectionery provide very visible price points to customers where retailers
can offer little or no differentiation. As a consequence, these types of product
are used selectively to give a headline price from which a retailer hopes to
convey an overall perception of low prices. This dynamic has resulted in
significant retail price deflation compounded by volume decline in some markets.
The opportunity going forward is to reduce exposure to these types of markets
and further differentiate our product offering.
When considering the "Entertainment" markets it is important however not to view
all formats in the same way. The music market is the most challenged not only
because of increasing commoditisation but also from the impact of digital
downloading and sales through Internet retailers.
The overall DVD market continues to show volume growth and should benefit from
the stimulus of High Definition formats. In this market we accepted a loss in
share as we chose to compete selectively on the major new releases over the
Christmas period.
At the start of the 06/07 financial year, we expected that both Sony and
Nintendo would launch new Games formats in the autumn, with good product
availability expected at Christmas. This proved not to be the case, with Sony
delaying PS3 until March 2007 and Nintendo launching Wii in November with
insufficient product to meet demand. Despite these factors, across the year our
Games share has grown and gives us a good base from which to capitalise on what
we expect to be a growth market in 2007.
Of all Entertainment markets, Books has been the most predictable and less
exposed than others to the vagaries of the technology cycle, whilst consistently
delivering annual sales growth of 2-3%. The Books offer in Woolworths was
expanded during the year and produced good year-on-year sales increases off a
small base.
Along with Toys and Stationery, our Clothing business generated more cash profit
than the prior year. The Clothing performance reflects the strength of the
Ladybird brand which benefited from the introduction of "Ladybird" shops into 92
stores in the autumn. Since the relaunch, volume market share on clothing has
started to grow. Another strong part of the business was Outdoor helped by
firstly, the very hot weather over the summer and secondly by the success of the
multichannel strategy, which enabled us to offer what can be very large items
like swing sets and trampolines.
The Home area was relatively encouraging and is benefiting in particular from
higher availability levels in standard listed basic lines, following work on the
supply chain.
Multichannel
An area of particular focus continued to be the enhancement of our multichannel
capability. During the year we introduced new capabilities which allow customers
to have access to over 260,000 products which are now available to be ordered
either at home or instore with delivery to either the customer's home or for
collection instore. This service has been very well received by customers and in
our peak week the service generated over 155,000 orders and #6.4 million of
sales. Sales were driven in particular by the first "Big Red Book ", our new
catalogue that featured 5000 products. As this part of the Woolworths
proposition was new to customers, it was important to provide a good first
experience of the service. To facilitate this, we incurred some additional costs
of circa #4-5 million on new warehouse capability and supporting delivery lead
times. These extra costs will not recur in 07/08. For the full year, our
multichannel sales were #77.2 million and it is on this base that we build in 07
/08.
Store Refurbishment
Significant investment in the store estate has continued. This year saw the
effective completion of the 10/10 store refurbishment programme. During the year
we re-refitted a further 93 stores bringing the total number of stores to 203.
The sales uplift from these 93 stores was 4% ahead of the control group. The
majority of the larger and medium size stores in highly competed markets have
now been refitted. This has been a necessary action as non-refitted stores
looked increasingly dated as the rest of the High Street is upgraded. Going
forward, aside from the obvious customer benefit of better looking, easier to
shop stores, our performance will benefit from reduced pre-opening costs of
circa #5.5 million and reduced levels of maintenance capital reflecting the
improved condition of the estate.
The 5/5 programme for smaller stores continued to evolve during the year. Many
of the learnings from the early 5/5 conversions were introduced across the
entire estate. Indeed, the entry into multichannel and the use of catalogues was
the original basis for the 5/5 concept. The performance of the most recent
generation of 5/5 stores is delivering an uplift of 5.5 % against the control
stores. This is in part due to the introduction of intensified planograms and
reallocation of space. As with the multichannel offer, we endeavour to identify
ways to access these benefits on a chain-wide basis that does not require
significant capital expenditure or time delay.
A further development of our customer proposition has been trialled in 4 stores
where we have completely focussed the offer on Children's products. In what we
term "Kids +", we have endeavoured to do this in a way that provides a more
exciting store environment. The trial has provided us with a lot of learning in
terms of what customers respond to. As with 5/5, there are some clear lessons
which we plan to roll out to as many stores as possible during 2007.
Evolving the Supply Chain
Given the changing demands of customers and the need to deploy stock in the most
effective manner, the work to evolve our physical distribution network has
continued. Ultimately, the network will need to deliver, cost effectively, the
ability to move an individual customer-ordered item alongside bulk replenishment
orders with increased frequency. The benefit of the systems and distribution
network changes already made are beginning to be seen. Stock levels have on
average been #5.1 million below the prior year whilst availability has been
improved. We plan to rationalise the network further and access some step
changes in cost levels.
Costs
Keeping costs controlled during the year was an important theme particularly as
sales were weak. Total comparable costs increased by #12.4 million, reflecting
cost increases in some areas such as rents, rates and energy, where there was
little management action that could be taken to mitigate increases. These three
cost lines accounted for #12.5 million of the increase, partly offset by net
cost savings in other areas.
Stock
Stock levels were well controlled during the year particularly in light of the
sales shortfall. This was achieved on the back of improved information systems
and the introduction of more robust control processes. It was not just the level
of stock that was improved but also stock quality.
Improved stock control was also a factor in helping to improve gross margin
delivery in the business. Total gross margin improved by 105 basis points
following a series of initiatives across all business units. Of the total gain,
19 basis points are due to the mix effect of reduced sales in Entertainment. The
rest of the gain reflects better cost price and other margin support
negotiation, sourcing more product from our established Hong Kong and recently
opened Shanghai offices and reducing exposure to markdown through more accurate
forecasting. The phasing of the margin gain across the year saw margin flat in
the first half and an improvement in the second half of 190 basis points. We
thus enter the New Year with the benefit of a higher run rate on our margin as
compared to last year.
Retail Summary
Summarising the Retail performance, the underlying sales and profit numbers are
disappointing. It was a year in which we radically enhanced our customer offer
albeit with some attached one-off costs. Looking forward, we plan to restore
the business to profitability through further expansion of our multichannel
business, better margins from our supplier review programme and lower costs and
markdown. In addition, supply chain enhancements designed to improve on shelf
product availability and the launch of the "Worth it!" brand, featuring several
hundred items offering really competitive entry price points, should underpin
the 07/08 sales performance.
Entertainment Wholesale and Publishing
This has been a transformative year in the Entertainment Wholesale and
Publishing businesses where the underlying quality of and prospects for the
division have been materially enhanced. Adjusted profits from Entertainment
Wholesale and Publishing amounted to #53.1 million compared to #56.4 million in
the previous year. This reflects stable profitability from 2 entertain, our
joint venture with BBC Worldwide and a similar level of releases of historic
accruals to the prior year. The adjusted profits of Entertainment UK together
with THE and Bertram from their respective dates of acquisition, after a #2.4
million provision in relation to Music Zone (a THE customer which went into
administration in January 2007) were down #2.7 million on the previous year.
This reflects a very active year in which the impact of improved trading terms
granted to retain the Tesco business until April 2007 were largely offset by
growth and efficiency improvements.
Entertainment UK (EUK)
At the start of the financial year EUK was grappling with the confirmed
termination of the core supply contract with Tesco in April 2007. With Tesco
representing over 40% of EUK's turnover there were potentially far reaching
consequences attached to this change. As a result, a key focus in the past year
has been to replace the Tesco business. We have sought to do this by widening
both the customer base and spread of markets in which we operate. Three pivotal
actions now place us in a position where we have succeeded in creating a much
broader customer base, a significant exposure to the growing Books business and
replaced all the Tesco sales volume:
Firstly, the acquisition of Total Home Entertainment (THE) in September 2006
gave access to a significant number of new customers and an entree into primary
distribution.
Secondly, the acquisition of Bertram Group in January 2007. Bertram is a large
books wholesaler servicing most sectors of the market including library services
and international markets. We expect to hear the OFT's decision as to whether
or not to refer the acquisition to the Competition Commission in early April.
Finally, securing a contract to buy and supply product to Virgin Retail for a
three year term with effect from May 2007.
The above acquisitions and contract win now offer the opportunity to rationalise
the physical infrastructure of the business and thereby access an array of
combination benefits. Planning for this is now well under way.
This activity has required considerable management focus and it is to the credit
of the EUK and THE operational teams that they have continued to maintain good
levels of service to existing customers. They have done this at a time when
sales for the year have continued to grow. Total third party EUK and THE sales
in 2006/7 were #861.4 million, an increase of 33% (8.3% excluding THE).
EUK continues to develop its digital capability and now has some 600,000 tracks
on its digital database. Revenues generated from digital downloading remain
small. The relationship with the juke box network operator, Inspired, continues
to develop with 1,290 boxes installed and plans to increase this to 2,700 by
2008.
The immediate challenge facing EUK is the realisation of permissible combination
benefits from its acquisitions in a manner that protects customer service
levels. Over the longer term we will continue to build EUK's position in
providing retailers with supply chain solutions in markets where there is a
clear need for a point of consolidation.
2 entertain
2 entertain had another successful year. Sales have grown slightly to #194.9
million, and our dividend flow from the joint venture increased to #11.6
million.
There was a reduction in sales achieved by the Demon Music Group business, where
price erosion in the full price new release market ate into Demon's core mid
price market. Christmas DVD performance was evenly spread across the release
schedule without a clear "runaway success".
The absence of a "runaway success" exposes an attractive feature of the rights
that 2 entertain has access to. The business has secured access to some enduring
franchises that will sell over a sustained period of time. Examples are Dr Who,
the Planet Earth documentaries and Top Gear.
Now in its second full year of trading, the joint venture is well past its
integration period and is increasingly looking to new opportunities. We continue
to forge relationships with the best of the independent production base.
International sales and revenues have also progressed well rising by 16.7%. This
remains an area of opportunity, particularly where broadcast programming is
reaching wider audiences and driving DVD sales.
Outlook
We enter 2007 having completed a number of major investments. We can see
opportunity both in the multichannel arena and in the chain wide deployment of
learnings from our store development work. With tight control of costs and a
higher gross margin this provides the opportunity to drive improved financial
performance in the retail business notwithstanding the challenging retail
environment which we expect to continue.
For EUK the agenda for the coming year is clear. It must manage the permitted
integration of the acquired businesses, the Virgin contract and the departure of
Tesco. This will result in some one-off costs to deliver synergy benefits.
2entertain continues to trade robustly.
Sales for the short 7 week period to 24 March 2007 are reasonably comparable to
the prior year. In the period, Woolworths like-for-like sales were up 0.8%. We
will provide a further update on trading in our Interim Management Statement at
the time of our AGM in June.
Financial Review
Earnings per Share and Dividend
Basic earnings per share was 0.9 pence per share compared to 0.7 pence per share
in the previous year. Adjusted basic earnings per share (which removes the
effect of fixed rental uplifts, amortisation of certain intangible assets and
exceptional items) was 1.2 pence per share compared with 2.8 pence per share
last year.
A maintained final dividend of 1.34 pence per share has been recommended by the
Board. This will be paid, subject to shareholder consent, on 21 June 2007 to
shareholders on the register at close of business on 10 April 2007. This
proposed dividend together with the interim dividend of 0.43 pence per share
paid on 12 December 2006 brings the total dividend for the year to 1.77 pence
per share, compared to a total of 1.75 pence per share in the prior year.
Balance Sheet
Overall Group stock increased by #32.9 million to #377.1 million. This reflects
the growth of EUK's business including the acquisitions of THE and Bertram. The
Woolworths retail stock was down #8 million. Overall the quality of the Group
stock improved during the year reducing the need for provisions.
During the year 7 store freeholds were purchased at a cost of #9.3 million.
Profits of #6.4 million were earned on the assignment of 3 store leases during
the year.
A review of the expected economic life of tenant's fixtures and fittings was
carried out in the light of experience and the store refurbishment programme.
This resulted in a reduction of depreciation of #5.8 million in the second half
of the year.
A review was also carried out of the liability for unredeemed gift vouchers in
the light of historic experience and this resulted in a reduction in creditors
and a one-off credit to the income statement of #3.2 million.
Cash Flow and Net Debt
The Group's average net debt increased to #113 million from #37 million in the
prior year. The main drivers of this increase were the growth of the
Entertainment UK business whose working capital requirements increased by
approximately #50 million and the acquisition of THE in September 2006 for #20.3
million. In the retail business capital expenditure was #62.4 million,
reflecting the acceleration of the store refit programme and investment in
multichannel capability which together more than offset the benefits from
reduced stock levels.
The year-end net debt was #103.3 million compared with net funds of #147.7
million in the prior year. This reflects the effect of the 53rd week, with
approximately #100 million of supplier payments which would not usually be due
until after the balance debt date; completion of the acquisition of Bertram
Group Limited on 1 February 2007; the earlier acquisition of THE and the working
capital needs of the growing EUK business.
Woolworths' capital expenditure in 07/08 will be at a much reduced level of
approximately #35 million, reflecting the completion of the 10/10 store refit
programme. This, together with working capital improvements in Entertainment UK
and reduced stocks in Woolworths, will partly offset the full year effect on
average net debt of funding the THE and Bertram acquisitions.
Exceptional Items
Previously, no benefit has been taken in the actuarial estimates for
commutation. The evidence, however, is that most people do commute as much of
their pension as possible and we have therefore changed the assumptions to make
a prudent estimate of the likely level of commutation. This reduces the
anticipated cost of meeting the pension scheme's ongoing obligations. A #13.1
million reduction in the estimated pension fund liability arising from this
change in assumptions based on pre 'A-day' commutation limits has been taken to
the Statement of Recognised Income and Expense.
The exceptional credit of #8.7 million reflects the effect of the 'A-Day'
reforms to pensions in relation to the increased amount of future pension which
can be commuted into a lump sum on retirement.
Taxation
The effective tax rate on current year profits from continuing operations is 15
per cent compared to 32.8 per cent in the prior year. This was lower than usual
because of the effect of a #5.6 million prior year tax credit which primarily
arose as a number of historic tax provisions were identified as no longer
required following agreement of a number of historic queries. This was slightly
offset by the effect of a fixed level of non-deductible expenses being spread
over a lower level of Group profits. Under existing tax legislation it is
anticipated that the effective Group tax rate will be marginally above the main
UK Corporation Tax rate.
Acquisitions
On 5 September 2006, the Group acquired AMP Enterprises Limited, the holding
company for Total Home Entertainment Distribution Limited ('THE') for #20.3
million.
On 17 January 2007 the Group announced the proposed acquisition of Bertram Group
Limited for #28.9 million plus debt of #12.2 million. Completion in relation to
all except a small balance of shares occurred on 1 February 2007 and the
compulsory acquisition of the remaining shares is expected to be completed by
mid-April 2007. As required the results of Bertram Group Limited are
consolidated from 17 January 2007 at which time a binding commitment to acquire
was in place.
Pensions
The Group retains a Final Salary Pension scheme open to all employees who have
been with the Group for a minimum period of 12 months.
The Scheme was created at the time of demerger and only comprised active members
at that time. It is therefore a much less mature scheme than most. It has 5638
active members, 3304 deferred members but only 956 current pensioners and
therefore the Scheme receives more in contributions from the Group and members
than it pays out in pensions. This is likely to continue to be the case for
approximately 12 years.
The assets of the Scheme are managed by external Fund Managers and at 3 February
2007 were #316.0 million (2006 #285.9 million). The allocation of Scheme assets
is kept under regular review by the Trustees of the Scheme. The liabilities
calculated at the current level of fixed rate bond yields were #400.0 million
(2006: #416.8 million) giving an IAS 19 deficit of #58.8 million (2006: #91.6
million) net of tax relief. However, the proportion of current active members
and the timescales until pensions are due to be payable does not make the
calculation particularly relevant. The full triennial actuarial valuation at 31
March 2005 showed that the Scheme was 89 per cent funded with a deficit of #28.9
million. Recent information indicates that this has continued to improve and on
those assumptions the Scheme would now be fully funded. The contribution rate
paid by participating companies remains at 13.5 per cent of pensionable
salaries. The next triennial actuarial valuation is due to be carried out at 31
March 2008.
Reconciliation of Adjusted Profit
53 weeks to 3 February 2007 52 weeks to 28 January 2006
#m #m
Profit before tax and exceptional items 7.3 43.7
Add back:
- amortisation of certain intangible assets 3.9 3.0
*
- fixed rental uplifts 10.6 11.0
Adjusted profit before tax 21.8 57.7
Adjusted Segmental Analysis for the 53 weeks to 03
February 2007
Continuing Operations Retail Entertainment Unallocated Interest Total
Wholesaling &
Publishing
#m #m #m #m #m
Reported (loss)/profit before taxation (14.8) 49.2 (7.7) (10.7) 16.0
Adjust for:
exceptional items (8.7) (8.7)
(Loss)/Profit before exceptional items (23.5) 49.2 (7.7) (10.7) 7.3
Add back:
- amortisation of certain intangible assets * 3.9 3.9
- fixed rental uplifts 10.6 10.6
Adjusted (loss)/profit before tax (12.9) 53.1 (7.7) (10.7) 21.8
Adjusted Segmental Analysis for the 52 weeks to 28
January 2006
Continuing Operations Retail Entertainment Unallocated Interest Total
Wholesaling &
Publishing
#m #m #m #m #m
Reported (loss)/profit before taxation 30.3 48.2 (7.6) (9.4) 61.5
Adjust for:
exceptional items (24.2) 5.2 1.2 - (17.8)
Profit before exceptional items 6.1 53.4 (6.4) (9.4) 43.7
Add back:
- amortisation of certain intangible assets* - 3.0 - - 3.0
- fixed rental uplifts 11.0 - - - 11.0
Adjusted (loss)/profit before tax 17.1 56.4 (6.4) (9.4) 57.7
*Excludes amortisation of certain intangible assets arising on consolidation
namely underlying rights, customer relationships and trade names.
Group Income Statement
for the 53 weeks ended 3 February 2007 and 52 weeks ended 28 January 2006
53 weeks to 3 February 2007 52 weeks to 28 January 2006
Before Exceptional Before Exceptional
exceptional items exceptional items
items (Note 3) Total items (Note 3) Total
Note #m #m #m #m #m #m
Continuing operations
Revenue 2 2,737.0 - 2,737.0 2,630.7 - 2,630.7
Cost of goods sold (2,045.8) - (2,045.8) (1,940.7) 6.0 (1,934.7)
Gross profit 691.2 - 691.2 690.0 6.0 696.0
Selling and marketing costs (571.6) 3.9 (567.7) (534.1) - (534.1)
Administrative expenses (125.1) 4.8 (120.3) (124.7) 11.8 (112.9)
Other operating income 23.5 - 23.5 21.9 - 21.9
Operating profit 18.0 8.7 26.7 53.1 17.8 70.9
Finance cost (14.5) - (14.5) (13.7) - (13.7)
Finance income 3.8 - 3.8 4.3 - 4.3
Profit before taxation 7.3 8.7 16.0 43.7 17.8 61.5
Taxation 4 0.2 (2.6) (2.4) (13.3) (6.9) (20.2)
Profit for the year from continuing
operations after taxation
7.5 6.1 13.6 30.4 10.9 41.3
Discontinued operations
Loss after taxation for the year from
discontinued operations
- - - (5.1) (26.0) (31.1)
Profit/(loss) for the year 7.5 6.1 13.6 25.3 (15.1) 10.2
Attributable to:
Equity shareholders 7.4 6.1 13.5 25.2 (15.1) 10.1
Minority interest 0.1 - 0.1 0.1 - 0.1
7.5 6.1 13.6 25.3 (15.1) 10.2
5
Earnings per share attributable to
the ordinary equity holders (pence)
Basic 0.9 0.7
Diluted 0.9 0.7
Earnings per share attributable to
the ordinary equity holders from
continuing operations (pence) 5
Basic 0.9 2.8
Diluted 0.9 2.8
53 weeks to 52 weeks to
3 February 2007 28 January 2006
Dividends paid and proposed (note 6) #m #m
Final dividend paid 2005/06: 1.34 pence (2004/05: 1.26 pence) 19.4 18.4
Interim paid 2006/07: 0.43 pence (2005/06: 0.41 pence) 6.2 5.9
Paid during the year 25.6 24.3
Dividend proposed 2006/07: 1.34 pence (2005/06: 1.34 pence) 19.4 19.4
Group Statement of Recognised Income and Expense
for the 53 weeks ended 3 February 2007 and 52 weeks ended 28 January 2006
53 weeks to 3 February 2007 52 weeks to 28 January 2006
Before Before
exceptional Exceptional exceptional Exceptional
items items Total items items Total
#m #m #m #m #m #m
Profit/(loss) for the year 7.5 6.1 13.6 25.3 (15.1) 10.2
Actuarial gain/(loss) on defined benefit
scheme net of tax
27.7 - 27.7 (21.8) - (21.8)
Deferred tax on share based payments (0.1) - (0.1) (0.2) - (0.2)
Cash flow hedges:
- Fair value (losses)/gains net of tax (6.2) - (6.2) 2.9 - 2.9
- Transfer to stock net of tax 4.1 - 4.1 (1.5) - (1.5)
Net gains/(losses) not recognised in income
statement
25.5 - 25.5 (20.6) - (20.6)
Total gains/(losses) recognised in the year 33.0 6.1 39.1 4.7 (15.1) (10.4)
Adoption of IAS 32 and 39 (4.1) - (4.1)
Of the total recognised gain/(loss) for the year #39.0 million (2006: loss #10.5
million) is attributable to the equity shareholders of the parent company.
Group Balance Sheet
at 3 February 2007 and 28 January 2006
3 February 28 January
Note 2007 2006
#m #m
Assets
Non-current assets
Goodwill 60.7 31.9
Other intangible assets 84.0 63.8
Property, plant and equipment 311.7 274.2
Fixed asset investments 0.2 0.2
Deferred tax assets 1.0 22.8
457.6 392.9
Current assets
Inventories 377.1 344.2
Trade and other receivables 9 303.5 211.0
Financial assets
- Derivative financial instruments - 1.0
Cash and cash equivalents 10 28.4 247.3
709.0 803.5
Current liabilities
Financial liabilities
- Borrowings 11 (129.8) (98.6)
- Derivative financial instruments (27.5) (22.1)
Trade and other payables (490.4) (524.6)
Current tax liabilities (1.4) (12.8)
Provisions (8.5) (12.2)
(657.6) (670.3)
Net current assets 51.4 133.2
Non-current liabilities
Financial liabilities
- Borrowings 11 (1.9) (1.0)
Trade and other payables (72.4) (61.8)
Retirement benefit obligations 12 (84.0) (130.9)
Provisions (33.1) (29.8)
(191.4) (223.5)
Net assets 317.6 302.6
Shareholders' equity
Ordinary shares 182.4 182.1
Share premium 9.7 9.3
Other reserves 22.0 24.1
Retained earnings 103.5 87.0
Total shareholders' equity 317.6 302.5
Minority interests - 0.1
Total equity 13 317.6 302.6
Group Cash Flow Statement
for the 53 weeks ended 3 February 2007 and 52 weeks ended 28 January 2006
53 weeks to 52 weeks to
3 February 28 January
2007 2006
Note #m #m
Cash flows from operating activities
Cash (utilised by)/generated from operations 7 (39.6) 129.5
Interest paid (12.6) (10.5)
Interest received 2.5 4.5
Tax paid (13.4) (16.6)
Net cash (utilised in)/generated from operating activities (63.1) 106.9
Cash flows from investing activities
Acquisition of subsidiaries (net of cash acquired) (63.0) -
Purchase of intangible assets (7.3) (10.6)
Purchase of property, plant and equipment (69.1) (49.0)
Costs associated with the formation of joint venture - (0.1)
Proceeds from sale of subsidiary (net of costs) - 3.5
Cash forgone with sale of subsidiary - (0.4)
Purchase of minority (2.8) -
Net cash used in investing activities (142.2) (56.6)
Cash flows from financing activities
Net proceeds from issue of ordinary shares 0.7 6.8
Repayment of Senior notes (97.8) (1.8)
Proceeds from bank borrowings 109.7 -
Debt issue costs - (0.4)
Finance lease principal repayments (1.2) (0.1)
Net transactions in own shares held in Trust (0.1) 1.0
Dividends paid to Company's shareholders (25.6) (24.3)
Net cash used in financing activities (14.3) (18.8)
Net (decrease)/increase in cash and cash equivalents (219.6) 31.5
Cash and cash equivalents at beginning of the year 246.7 215.2
Cash and cash equivalents at end of the year 8 27.1 246.7
Cash and cash equivalents consist of:
Cash 28.4 247.3
Bank overdrafts (1.3) (0.6)
Cash and cash equivalents at end of the year 8 27.1 246.7
Notes to the Accounts
1. Accounting Policies for the year ended 3 February 2007
Basis of Preparation
The preliminary results for the 53 week period ended 3 February 2007 and the
results for the 52 week period ended 28 January 2006 are prepared in accordance
with International Financial Reporting Standards ('IFRS's) and the International
Financial Reporting Interpretations Committee ('IFRIC') interpretations endorsed
by the European Union, together with those parts of the Companies Act 1985
applicable to companies reporting under IFRS. The principal accounting policies
adopted in the preparation of the preliminary results are set out in the 2006
Annual Report and Accounts.
The consolidated financial statements include the financial statements of the
Company, its subsidiary undertakings, joint ventures and associated
undertakings. The joint venture has been proportionately consolidated.
The Board of Woolworths Group plc approved the release of this preliminary
announcement on 27 March 2007.
The consolidated financial statements have been prepared under the historical
cost convention, as modified by the revaluation of certain financial assets and
financial liabilities (derivative financial instruments). The preparation of
financial statements in conformity with IFRS requires the use of certain
critical accounting estimates. It also requires management to exercise its
judgement in the process of applying the Group's accounting policies.
2. Segmental Analysis
The Group considers that business segmental analysis is its primary reporting
basis. The Group's business is divided into a Retail segment and an
Entertainment Wholesale and Publishing segment. Woolworths plc, WMS Jersey
Limited and Flogistics Limited are included within the Retail segment, with
Entertainment UK Limited, THE Distribution Limited (THE), Bertram Group Limited
(Bertram), Disc Distribution Limited and 2entertain Limited being the
constituents of Entertainment Wholesale and Publishing. MVC Entertainment
Limited was disposed of on 30 July 2005 and was shown as a discontinued
operation in the year ending 28 January 2006. No material trading is undertaken
outside the UK and consequently no geographic segmentation has been shown.
53 weeks to 3 February 2007 52 weeks to 28 January 2006
Entertainment Entertainment
Wholesale and Wholesale and
Retail Publishing Unallocated Total Retail Publishing Unallocated Total
#m #m #m #m #m #m #m #m
Continuing operations
Group
- Gross sales 1,813.2 1,331.7 - 3,144.9 1,918.5 1,184.3 - 3,102.8
- Intersegment - (407.9) - (407.9) - (472.1) - (472.1)
Revenue 1,813.2 923.8 - 2,737.0 1,918.5 712.2 - 2,630.7
Operating profit after
exceptional items
(14.8) 49.2 (7.7) 26.7 30.3 48.2 (7.6) 70.9
Finance cost (14.5) (13.7)
Finance income 3.8 4.3
Profit before taxation 16.0 61.5
Taxation (2.4) (20.2)
Profit for the year from continuing operations after taxation 13.6 41.3
At 3 February 2007 At 28 January 2006
Entertainment Entertainment
Wholesale and Wholesale and
Retail Publishing Unallocated Total Retail Publishing Unallocated Total
#m #m #m #m #m #m #m #m
Total assets 785.9 614.9 560.3 1,961.1 804.9 468.6 588.3 1,861.8
Total liabilities 822.4 505.1 316.0 1,643.5 802.5 394.3 362.4 1,559.2
Unallocated costs represent corporate expenses. Segment assets include property,
plant and equipment, goodwill, inventories debtors and operating cash. Segment
liabilities comprise operating liabilities. Unallocated total assets
predominantly consist of cash and bank deposits, and unallocated total
liabilities predominantly represent corporate borrowings and other sundry
creditors.
3. Exceptional items
53 weeks to 3 February 52 weeks to 28 January
2007 2006
#m #m
Continuing operations
'A-Day' pension credit 8.7 -
Reorganisation of big W - 28.1
Other restructuring costs - (3.9)
Cost associated with aborted Apax approach - (1.2)
Recognition of liability arising from joint venture - (5.2)
guarantee
8.7 17.8
Taxation (2.6) (6.9)
Exceptional items after taxation 6.1 10.9
Discontinued operations
Loss on disposal of MVC business - (25.6)
Costs associated with store closures - (2.7)
- (28.3)
Taxation - 2.3
Exceptional items after taxation - (26.0)
Total exceptional items after taxation 6.1 (15.1)
The exceptional credit of #6.1 million (net of tax) reflects the effect of the
'A day' reforms to pensions in relation to the increased amount of future
pension which can be commuted into a lump sum on retirement. This reduces the
anticipated cost of meeting the pension scheme's ongoing obligations.
Previously, no benefit had been taken in the actuarial estimates for
commutation. The evidence, however, is that most people do commute as much of
their pension as possible and therefore the underlying assumptions have been
changed to make a prudent estimate of the likely level of commutation.
Discontinued operations in the prior year relate to the conclusion of the sale
of MVC Entertainment Limited to a group of retail investors on 30 July 2005 for
a cash consideration of #5.5 million. The pre-tax exceptional item relating to
this discontinued operation was #28.3 million, which consisted of a #25.6
million loss on disposal of the business (after deducting the #5.5 million
proceeds, and providing for stock losses) and #2.7 million of costs associated
with the closure of a number of MVC stores before completion of the disposal.
4. Taxation
53 weeks to 3 February 2007 52 weeks to 28 January 2006
Before Before
exceptional Exceptional exceptional Exceptional
items items Total items items Total
#m #m #m #m #m #m
Current tax
- Continuing operations (1.4) - (1.4) (15.6) (7.8) (23.4)
- Discontinued operations - - - 0.5 2.3 2.8
(1.4) - (1.4) (15.1) (5.5) (20.6)
Deferred tax - continuing operations 1.6 (2.6) (1.0) 2.3 0.9 3.2
Taxation 0.2 (2.6) (2.4) (12.8) (4.6) (17.4)
The taxation charge comprises:
3 February 2007 28 January 2006
Before Before
exceptional Exceptional exceptional Exceptional
items items Total items items Total
#m #m #m #m #m #m
Total taxation (charge)/credit -
continuing operations
0.2 (2.6) (2.4) (13.3) (6.9) (20.2)
Total taxation credit - discontinued
operations
- - - 0.5 2.3 2.8
Taxation 0.2 (2.6) (2.4) (12.8) (4.6) (17.4)
The taxation charge for the year is lower than the standard rate of corporation
tax in the UK (30 per cent). The differences are explained below:
53 weeks to 52 weeks to
3 February 2007 28 January 2006
#m #m
Profit before taxation - continuing operations 16.0 61.5
Profit multiplied by rate of corporation tax in the UK of 30% (2006: 30%) (4.8) (18.4)
Effects of:
Adjustments to tax in respect of prior periods 5.6 2.6
Adjustments in respect of foreign tax rates (0.5) (0.5)
Expenses not deductible for tax purposes (2.7) (3.9)
Total taxation - continuing operations (2.4) (20.2)
5. Earnings per Share
Basic
Basic earnings per share is calculated by dividing the profit attributable to
equity shareholders of the Company by the weighted average number of ordinary
shares in issue during the year, excluding ordinary shares purchased by the
Company and held as treasury shares (including shares held by a trust which are
accounted for as treasury shares).
Diluted
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares outstanding to assume conversion of all dilutive
potential ordinary shares. The Company has only one category of dilutive
potential shares - share options. For the share options, a calculation is
undertaken to determine the number of shares that could have been acquired at
fair value (determined as the average annual market share price of the Company's
shares) based on the monetary value of the subscription rights attached to the
outstanding share options. The number of shares calculated is then compared with
the number of shares that would have been issued assuming the exercise of the
share options to arrive at the number of dilutive shares.
Adjusted
Adjusted earnings per share excludes the effect of exceptional items, the
amortisation of certain intangible assets and the fixed rental uplift
adjustment. An IFRIC pronouncement in September 2005 required the total minimum
payments across the entire lease term to be recognised on a straight-line basis
across the life of the lease.
Reconciliations of the earnings and weighted average number of shares used in
the calculations are set out below:
2007 Weighted 2006 Weighted
average average
number of Per share number of Per share
Earnings shares amount Earnings shares amount
#m m (pence) #m m (pence)
Basic EPS
Earnings attributable to ordinary shareholders 13.5 1,448.9 0.9 10.1 1,445.3 0.7
Effect of dilutive securities - 0.8 - - 6.7 -
Diluted EPS 13.5 1,449.7 0.9 10.1 1,452.0 0.7
Earnings per share from continuing operations
Basic EPS 13.5 1,448.9 0.9 10.1 1,445.3 0.7
Loss on sale of subsidiary - - - 26.0 - 1.8
Pre-tax losses from discontinued operations - - - 5.6 - 0.3
Tax relating to discontinued operations - - - (0.5) - -
Basic EPS from continuing operations 13.5 1,448.9 0.9 41.2 1,445.3 2.8
Diluted EPS 13.5 1,449.7 0.9 10.1 1,452.0 0.7
Loss on sale of subsidiary - - - 26.0 - 1.8
Pre-tax losses from discontinued operations - - - 5.6 - 0.3
Tax relating to discontinued operations - - - (0.5) - -
Diluted EPS from continuing operations 13.5 1,449.7 0.9 41.2 1,452.0 2.8
Earnings per share from discontinued operations
Basic EPS
Loss on sale of subsidiary - 1,448.9 - (26.0) 1,445.3 (1.8)
Pre-tax losses from discontinued operations - - - (5.6) - (0.3)
Tax relating to discontinued operations - - - 0.5 - -
Basic EPS from discontinued operations - 1,448.9 - (31.1) 1,445.3 (2.1)
Diluted EPS
Loss on sale of subsidiary - 1,449.7 - (26.0) 1,452.0 (1.8)
Pre-tax losses from discontinued operations - - - (5.6) - (0.3)
Tax relating to discontinued operations - - - 0.5 - -
Diluted EPS from discontinued operations - 1,449.7 - (31.1) 1,452.0 (2.1)
Adjusted EPS
Earnings per share from continuing operations
Basic EPS 13.5 1,448.9 0.9 10.1 1,445.3 0.7
Fixed rent adjustment (net of tax) 7.4 - 0.5 7.7 - 0.6
Amortisation of certain intangible assets (net of 2.7 - 0.2 1.8 - 0.1
tax)
Exceptional items (net of tax) (6.1) - (0.4) (10.9) - (0.7)
Total loss on discontinued operations (net of tax) - - - 31.1 - 2.1
Adjusted basic EPS from continuing operations 17.5 1,448.9 1.2 39.8 1,445.3 2.8
Diluted EPS 13.5 1,449.7 0.9 10.1 1,452.0 0.7
Fixed rent adjustment (net of tax) 7.4 - 0.5 7.7 - 0.6
Amortisation of certain intangible assets (net of 2.7 - 0.2 1.8 - 0.1
tax)
Exceptional items (net of tax) (6.1) - (0.4) (10.9) - (0.7)
Total loss on discontinued operations (net of tax) - - - 31.1 - 2.1
Adjusted diluted EPS from continuing operations 17.5 1,449.7 1.2 39.8 1,452.0 2.8
6. Dividends
The Directors are proposing a final dividend in respect of the financial year
ending 3 February 2007 of 1.34 pence (2006: 1.34 pence) per share which will
absorb an estimated #19.4 million of shareholders' funds. Subject to shareholder
approval, it will be paid on 21 June 2007 to members registered at the close of
business on 10 April 2007. These financial statements do not reflect this
recommended dividend.
7. Cash Generated from Operations
53 weeks to 52 weeks to
3 February 28 January
2007 2006
#m #m
Continuing operations
Profit for the year 13.6 41.3
Adjustments for:
- Taxation 2.4 20.2
- Depreciation, amortisation and impairments 53.2 65.6
- Share based payments 1.2 1.0
- Loss/(profit) on sale of property, plant and equipment 1.7 (0.1)
- Interest income (3.8) (4.3)
- Interest expense 14.5 13.4
- 'A-day' pension credit (8.7) -
Changes in working capital (excluding the effect of acquisitions):
- Inventories 7.4 (19.3)
- Trade and other receivables (37.9) (14.0)
- Trade payables and provisions (83.2) 29.9
Total cash (utilised in)/generated from continuing operations (39.6) 133.7
Discontinued operations - excluding loss on disposal
Loss for the year - (5.5)
Adjustments for:
- Taxation - (2.8)
- Depreciation - 0.9
- Loss on sale of property, plant and equipment - 1.0
- Interest expense - 0.3
Changes in working capital (excluding the effect of business disposal):
- Inventories - 9.1
- Trade and other receivables - 2.8
- Trade payables and provisions - (10.0)
Total cash utilised in discontinued operations - (4.2)
Cash (utilised in)/generated from operations (39.6) 129.5
8. Net (Debt)/Funds
Group net (debt)/funds comprise the following:
3 February 28 January
2007 2006
#m #m
Cash and cash equivalents 28.4 247.3
Bank overdraft (1.3) (0.6)
Finance leases (3.0) (1.2)
Senior notes - (97.8)
Bank borrowings (115.4) -
Collateralised borrowing (12.0) -
Net (debt)/funds at end of year (103.3) 147.7
9. Trade and Other Receivables
3 February 2007 28 January 2006
#m #m
Amounts due within one year:
Trade receivables 249.4 149.6
Less: provision for impairment of trade receivables (7.6) (8.3)
Trade receivables - net 241.8 141.3
Receivables from joint venture 2.0 -
Other receivables 22.9 33.1
Prepayments and accrued income 36.8 36.6
10. Cash and Cash Equivalents
3 February 2007 28 January 2006
#m #m
Cash at bank and in hand - 49.7
Short-term bank deposits 4.3 74.8
Short-term liquidity fund investments 24.1 122.8
28.4 247.3
11. Borrowings
3 February 2007 28 January 2006
#m #m
Current
Bank loans and overdrafts due within one year or on demand:
Unsecured:
Bank overdraft 1.3 0.6
Senior notes - 97.8
Bank borrowings 115.4 -
Secured:
Obligations under finance leases 1.1 0.2
Collateralised borrowing 12.0 -
Total due within one year 129.8 98.6
Non-current
Secured:
Obligations under finance leases 1.9 1.0
Total due after more than one year 1.9 1.0
Total borrowings 131.7 99.6
12. Retirement benefit obligations
3 February 2007 28 January 2006
#m #m
Present value of funded obligations (400.0) (416.8)
Fair value of scheme assets 316.0 285.9
Present value of unfunded deficit (84.0) (130.9)
The movement in the liability recognised in the balance sheet is as follows:
53 weeks to 52 weeks to
3 February 2007 28 January 2006
#m #m
Beginning of the year (130.9) (97.5)
Net actuarial gains/(losses) on scheme assets/liabilities 39.5 (31.1)
Total expenses charged in the income statement (12.1) (16.5)
Contributions paid by employer 19.5 14.2
End of the year (84.0) (130.9)
The key financial assumptions applied in the actuarial report of the Woolworths
Group Pension Scheme have been reviewed in the preparation of the annual
accounts and new mortality rates have been used. The main financial assumption
is the real discount rate. If this assumption increased/decreased by 0.1%, the
pension obligation would decrease/increase by approximately #9.7m (before tax)
and the annual service cost would decrease/increase by approximately #0.6m.
In addition, an assumption has now been made that scheme members will choose to
commute part of their pension for a cash lump sum at retirement. No allowance
for commutation was previously assumed. The impact of introducing an allowance
for commutation has resulted in a reduction in the defined benefit obligation as
at 3 February 2007. This reduction reflects both the historic experience of
commutation rates and the impact of an increase in the proportion of pensions
that scheme members can commute following the introduction of new legislation
effective from 6 April 2006 (commonly known as 'A-Day' legislation).
13. Group Statement of Changes in Shareholders' Equity
Attributable to equity holders of the company
Share Share Other Shares Retained Total Minority Total
capital premium reserves held by earnings interest equity
trust
#m #m #m #m #m #m #m #m
At 30 January 2005 179.4 5.2 22.7 (4.1) 125.1 328.3 - 328.3
Profit for the year - - - - 10.1 10.1 0.1 10.2
Dividends - - - - (24.3) (24.3) - (24.3)
Issue of shares 2.7 4.1 - - - 6.8 - 6.8
Cash flow hedges:
- fair value of gains net of tax - - 2.9 - - 2.9 - 2.9
- transfer to stock net of tax - - (1.5) - - (1.5) - (1.5)
Actuarial loss arising on defined - - - - (21.8) (21.8) - (21.8)
benefit scheme
Share based payments - - - - 1.0 1.0 - 1.0
Sale of own shares held by Trust - - - 1.0 - 1.0 - 1.0
At 28 January 2006 182.1 9.3 24.1 (3.1) 90.1 302.5 0.1 302.6
Profit for the year - - - - 13.5 13.5 0.1 13.6
Dividends - - - - (25.6) (25.6) - (25.6)
Issue of shares 0.3 0.4 - - - 0.7 - 0.7
Cash flow hedges:
- fair value of gains net of tax - - (6.2) - - (6.2) - (6.2)
- transfer to stock net of tax - - 4.1 - - 4.1 - 4.1
Actuarial loss arising on defined - - - - 27.7 27.7 - 27.7
benefit scheme
Share based payments net of tax - - - - 1.0 1.0 - 1.0
Purchase of minority interest - - - - - - (0.2) (0.2)
Net transactions in own shares held - - - (0.1) - (0.1) - (0.1)
by Trust
At 3 February 2007 182.4 9.7 22.0 (3.2) 106.7 317.6 - 317.6
During the year, as part of the joint venture with BBC Worldwide Limited, the
Group funded a #2.8 million acquisition of the minority interest in Banana Split
Productions Limited by 2entertain Limited.
14. Contingent Liabilities
On the formation of 2entertain Limited, the Group agreed to guarantee the value
of the business transferred to 2entertain Limited for a period of three years to
September 2007. No liability was incurred in respect of the first year and a
provision of #5.2 million had been recognised during 2005/06 in respect of the
second and third years. During 2006/07 the second year liability has been
calculated as #3.5 million and will be settled in 2007/08. The balance of the
provision, #1.7 million, is felt to be sufficient to cover the third year
liability.
15. Acquisitions
On 5 September 2006 the Group acquired the entire share capital of AMP
Enterprises Limited, the holding company for Total Home Entertainment
Distribution Limited (THE).
On 17 January 2007 the Group entered into an irrevocable offer for Bertram Group
Limited (Bertram), and by 3 February 2007 had acquired substantially all the
share capital.
Bertram THE Total
#m #m #m
Net (liabilities)/assets carrying value (2.6) 4.7 2.1
Fair value adjustments 14.5 6.4 20.9
Provisional fair value of net assets 11.9 11.1 23.0
Goodwill 18.3 10.7 29.0
Purchase consideration including direct costs 30.2 21.8 52.0
Overdrafts of subsidiaries acquired 2.5 8.5 11.0
Cash outflow on acquisitions 32.7 30.3 63.0
This news release contains forward looking statements based on current
assumptions and forecasts made by Woolworths Group plc management. Various
known and unknown risks, uncertainties and other factors could lead to
substantial differences between the actual future results, financial
situation, development or performance of the Group and the estimates given here.
The Group accepts no obligation to continue to report or update these
forward-looking statements or adjust them to future events or developments.
Further copies of this announcement can be obtained from the office of the Group
Finance Director on 020 7706 5502 or downloaded from the Group website
www.woolworthsgroupplc.com
The enclosed financial information is derived from the full Group Financial
Statements for the 53 weeks ended 3 February 2007 and does not constitute the
full statutory statements of Woolworths Group plc for the 53 weeks ended 3
February 2007 or the 52 weeks ended 28 January 2006. The financial information
for the 52 weeks ended 28 January 2006 is derived from the Annual Report for
that year which has been delivered to the Registrar of Companies. The
independent auditors reported on those accounts: their report was unqualified
and did not contain a statement under either Section 237(2) or Section 237(3) of
the Companies Act 1985. The Group Financial Statements for 53 weeks ended 3
February 2007, on which the independent auditors have given an unqualified
report which does not contain a statement under either Section 237(2) or Section
237(3) of the Companies Act 1985 will be delivered to the Registrar of Companies
in due course and posted to shareholders in advance of the Annual General
Meeting to be held on 6 June 2007. Following this posting, copies will be
available from the Company Secretary, Woolworths Group plc, Woolworth House,
242-246 Marylebone Road, London NW1 6JL and will be available on the Group
website www.woolworthsgroupplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SESSFASWSEED
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