RNS Number:6925L
Fuller,Smith&Turner PLC
30 May 2003
STRICTLY EMBARGOED
UNTIL 7AM FRIDAY 30 MAY 2003
PRESS RELEASE
FULLER SMITH & TURNER P.L.C.
Preliminary results for the year ended 29 March 2003
Financial Highlights
* Turnover up 4% to #137.6 million (2002: #132.4 million)
* Normalised profit before tax** up 10% to #16.4 million (2002: #14.9 million)
* EBITDA up 7% to #27.0 million (2002: #25.1m)
* Normalised earnings per share* up 14% to 45.59p (2002: 40.07p)
* Basic earnings per share* up 110% to 48.04p (2002: 22.90p)
* Final dividend per share* increased 6% to 11.37p (2002: 10.70p)
* Net assets per share* up 8% to #6.52 (2002: #6.04)
* Gearing broadly unchanged at 14.5% (2002: 12.7%)
Corporate Progress
* Reassuringly good results in a difficult year for the Industry
* Increased gross margins in Managed Pubs and Bars by focusing on quality
and service
* Difficult trading conditions, particularly in the City, continued to
affect Managed Pubs and Bars
* Good results from the Tenanted Division: average profit per house up 7%
reflecting the improving quality of the estate
* Hotels turnover up 31% in a challenging market: RevPar up 11% and like
for like profits up 4%
* Strong performance by the Beer Company: profits up 18%; own beer
volumes up 6%
* Share buy-back programme added 2.12p to 2003 earnings per share
* Calculated on the #1 'A' ordinary share
** Profits after interest before exceptional operating and non-operating costs/
profits
Commenting on the results, Anthony Fuller, Chairman, said:
"In these difficult times for the Industry, Fuller's is reporting a healthy
increase in profits and a commitment to invest across all areas of the business.
The good results are a testament to our financial prudence, our balanced
business portfolio and our determination to establish a premium position with a
reputation for quality and excellence in everything we do.
Our focus is on growing underlying earnings and delivering the best returns for
shareholders over the long term. In line with that strategy, we have continued
to invest in buying our own shares. We believe that this has represented a
significantly more attractive investment proposition for shareholders,
especially when compared to the present substantial under-valuation of our own
assets and what we consider to be an overpriced market for new freehold and
leasehold properties. We have simultaneously maintained the strength of our
balance sheet and the high quality of our 90% freehold property portfolio.
At a time when many companies are cutting back on investment, we have started an
extensive refurbishment programme across our estate. This will leave us in a
strong position to benefit when economic conditions improve.
Trading in the early weeks of the current financial year has been satisfactory
taking into account the impact of a late Easter. The hotel market is challenging
at the moment, and it is still too early to tell how long the present downturn
in the City will last. However, we are confident that our long-term investments
in these areas, and indeed across the business as a whole, are well placed to
produce in the future the excellent results they have delivered in the past. The
Beer Company and Tenanted Division are continuing to make good progress, with a
healthy start to the new financial year.
The underlying strength of the Company's premium brands and the quality of the
predominantly freehold retail estate continue to stand us in good stead for
driving future growth."
- Ends -
For further information, please contact:
Fuller Smith & Turner P.L.C.
Press Office 020 8996 2175/2198/2048
Mobile 07748 657854
E-mail: pr@fullers.co.uk
Michael Turner - Press 020 8996 2048
Paul Clarke - Analysts 020 8996 2048
Merlin Financial 020 7606 1244
Paul Downes 07900 244 888 (mobile)
Vanessa Maydon 07802 961 902 (mobile)
Notes to Editors Photographs for the media are available at NewsCast
Online - www.newscast.co.uk
Tel. 020 7608 1000
Copies of this statement, the Annual Report and results presentation will be
available on the Company's web site, www.fullers.co.uk.
Attached: Chairman's Statement
Financial Highlights
Unaudited Group Profit and Loss Account
Unaudited Group Balance Sheet
Unaudited Group Cash Flow Statement
Other Unaudited Group Primary Statements
Notes to the Financial Statements
FULLER SMITH & TURNER P.L.C.
PRELIMINARY RESULTS FOR THE YEAR
ENDED 29 MARCH 2003
CHAIRMAN'S STATEMENT
Whatever You Do, Take Pride
I am delighted to present reassuringly good results from Fuller's in what has
been a difficult time for the Industry. Our strategy continues to be one of
focusing on quality and service. We have been looking to grow the business, but
not at the expense of margins and gearing. Normalised profits of #16.4 million
are 10% up on last year (2002: #14.9 million) on a 4% increase in turnover to
#137.6 million (2002: #132.4 million).
Normalised earnings per share increased 14% to 45.59p (2002: 40.07p), which
reflects in part the impact of a 4% reduction in the weighted average number of
shares following a series of share buybacks.
There were no exceptional operating charges this year compared to an exceptional
operating charge of #1.4 million for property impairments last year. A few minor
property disposals this year resulted in an exceptional non-operating profit of
#0.6 million compared to #3.8 million exceptional loss on disposals last year.
As a result, post-exceptional profits before tax of #17.0 million are 74% higher
than last year's #9.8 million.
Tax has been provided for at an effective rate for the year of 32.5% (2002:
32.0%). This comprises 28.3% current tax and 4.2% deferred tax.
EBITDA increased by 7% to #27.0 million compared to #25.1 million last year.
Fuller's accounting policies remain prudent, the average annual depreciation
rate across the estate as a whole was 3.6% (on cost), for an estate that is 90%
freehold.
Total capital expenditure for the year was #12.0 million (2002: #26.2 million),
over two thirds of which related to enhancing the existing business. Most of
last year's total capital expenditure related to the hotel and brewery expansion
programmes, which are both now generating good returns for the Company.
Following the initial purchase of 100,000 'A' ordinary shares in December 2001,
the Company has bought back a further 2,474,000 shares at a total cost this year
of #11.5 million. Together, this represents over 10% of the Company's ordinary
share capital. The average price paid during the year was #4.62, which is a
considerable discount to our net assets per share . We believe strongly that
purchasing our own shares in the market represents sound sense at times when
they are undervalued, particularly against the assets they represent. The
current buyback programme has already increased this year's normalised earnings
per share and net assets per share by 5% and 3% respectively. In spite of the
large investment in buybacks, gearing is broadly unchanged at a prudent 14.5%
(2002: 12.7%) and we retain the financial ability to make significant
acquisitions where appropriate.
We will be seeking to renew the current authority to buy back 'A' ordinary
shares at the forthcoming Annual General Meeting. We will also be seeking
shareholder approval to buy back up to 10% of the issued unquoted 'B' ordinary
shares. The Company considers it appropriate to make a tender offer to
shareholders who may wish to dispose of some of their 'B' shares. The
off-market purchase procedure is complex, and full details will be provided to
shareholders today.
The Directors will be recommending an increase in the final dividend of 6% to
11.37p per 'A' and 'C' #1 ordinary share, and 1.137p per 'B' 10p ordinary share.
The final dividend will be paid on Tuesday 22 July 2003 to shareholders on the
Share Register as at Friday 20 June 2003.
Fuller's Inns
Fuller's Inns' turnover increased by 3% to #97.0 million. This is a result of
increases in turnover from the Tenanted and Hotels Divisions with a small
reduction from Managed Pubs and Bars. Normalised profit (excluding the impact of
exceptional charges last year) was up 5% to #16.0 million. Cash generation
remains significant with EBITDA of #22.7 million up 5% on last year.
Managed Pubs and Bars
It has been a challenging year for many pub retail businesses, especially those
with a significant London base. A number of our competitors have sought to
compete aggressively on price, at the expense of margins. Our strategy is to
avoid short term discounting and concentrate on the quality of our business
using food, wine and excellent cask ale as key levers for longer-term growth. As
a result, although like for like sales are down by 1.7% (unchanged from the
half-year), gross margins have improved. Our like for like numbers are based on
properties that have been trading for the whole of the current and previous year
and have had less than #50,000 invested in either period.
As reported at the half-year, the overall decline in like for like sales is due
to continuing difficult conditions in the City. Elsewhere, trading has been
broadly in line with last year with a particularly good performance from the
destination food business, English Inns, where total like for like sales are up
4%. During the year we opened two new pubs, Grove Lock on the Grand Union Canal
near Leighton Buzzard and The Bishop on the Bridge in Winchester, both of which
are trading very well. Since the year-end, we have opened a further English Inn,
The Mill at Elstead, near Godalming. This food-orientated freehold pub is in a
wonderful location next to water with several acres of land. The current total
number of sites is 115, one higher than in March 2002.
There were eight major refurbishments in the year. Sales in these pubs have
increased 22% since reopening and continue to grow. The success of these
redevelopments will be followed in 2004 by a further 19 projects which will
improve our offering and broaden the customer appeal of our pubs. In addition,
we believe it is important to maintain standards across the managed estate as a
whole with repairs and maintenance costs increasing by over 11% this year.
One of our key aims is to improve the contribution from food in our estate.
Investments, training and the acquisition of new sites are focused towards
driving food sales. In September 2002 we introduced All Day Food across the
whole managed estate and food sales have increased by 4% in the year (1.4% like
for like).
Tenanted Pubs
The tenanted estate continues to improve in terms of quality and contribution to
the Company. Profits are up 9% in spite of a marginal decrease in the number of
pubs. There have been no acquisitions, one transfer from the managed estate and
three disposals during the year. Average turnover and profit per house have
increased by 4% and 7% respectively, reflecting the gradual churning and
improvement of the estate.
We are continuing to convert new and existing tenancies to the Fuller's 10-year
lease and currently have 36 tenants signed up. We hope to have increased this
number to 50 by the end of the current year. The lack of suitable acquisitions
has allowed us to devote resources to enhancing the existing estate and during
the year we spent over #2.1 million (2002: #1.9 million) on capital projects and
repairs, with a similar amount planned again for this year.
Fuller's Hotels
Fuller's Hotels have done well in a difficult market. Turnover has grown by 31%
and profit has doubled, largely as a result of a full year's trade from The
Brigstow and The Chamberlain, which opened in the previous year. The new hotels
have traded well with increasing occupancy levels. The performance of the
existing hotels has been maintained with like for like sales up 3% and like for
like profit up 4%, ahead of most competitors. Total revenue per available room
(RevPar) has increased by 11% to #44.19. This increase is largely a result of
the higher room rates and occupancy being achieved at the new hotels. We have
taken a longer-term view and sought to maintain our premium position rather than
reducing rates to achieve a short-term benefit.
To support the Fuller's Hotels brand, a dedicated website www.fullershotels.com
was launched in September. In addition our hotels are featured on over 120 other
websites, including some of the market leaders.
The hotel investment programme is continuing. We are due to spend #4.5 million
on the new 55 bedroom hotel at The Red Lion in Hillingdon. Construction work
started this month and the hotel is due to open in mid 2004.
We are confident that, given the high quality and longstanding reputation of our
hotels, we are in a good position to see increased levels of return from our
Hotels Division when economic conditions improve.
The Fuller's Beer Company
It has been another excellent year of progress for the Beer Company with
turnover up 3% to #62.7 million, profits up 18% to #6.8 million and EBITDA up
15% to #8.1 million. Own beer barrelage was up 6% to 191,000 barrels.
Sales outside the tied estate now represent over 84% of our own beer sales.
Volumes in the key free on-trade area are up 10% to 123,000 barrels and
take-home sales are up 5% to 27,000 barrels, demonstrating the ever-increasing
popularity of Fuller's beer brands across the UK. These increases have been
achieved without deterioration in margins. The continued success of the Beer
Company has been driven by London Pride, now over 150,000 barrels, which has
consolidated its position as the number two brand in the premium cask ale
market. We have also seen good growth in a number of our other brands,
especially Organic Honey Dew. All our brands continue to be received well, with
an enviable collection of awards and prizes this year. These include
unprecedented gold, silver and bronze medals at the Great British Beer Festival,
and gold and bronze medals at the International Beer and Cider Awards. Fuller's
was also voted Brewer of the Year by the Good Pub Guide 2003.
Investment in the Beer Company has continued with the first phase of a major
expansion in the brewery's fermentation and maturation tank capacity, which came
on line in April 2002. This has helped us increase peak capacity by around
30,000 barrels. The second phase of this expansion is due to be completed by
October 2003 at a cost of #1.6 million and will increase capacity by around a
further 50,000 barrels to 260,000 barrels. In addition, we are in the process of
upgrading and modernising our fleet of drays. These projects, together with
other substantial investments in plant at the Brewery, continue to improve both
the quality and consistency of product and operational efficiency.
The Fuller's Wine Division sources and distributes a varied selection of wines
and spirits, some of which are exclusive to Fuller's, to our own tied estate and
to a growing free trade customer base, which now represents over a third of our
wholesale wine business. Wine in particular has performed very well in this
period with volumes up 8%. Overall, profits from the Wine Division are up 15%.
Prospects
In these difficult times for the Industry, Fuller's is reporting a healthy
increase in profits and a commitment to invest across all areas of the business.
The good results are a testament to our financial prudence, our balanced
business portfolio and our determination to establish a premium position with a
reputation for quality and excellence in everything we do.
Our focus is on growing underlying earnings and delivering the best returns for
shareholders over the long term. In line with that strategy, we have continued
to invest in buying our own shares. We believe that this has represented a
significantly more attractive investment proposition for shareholders,
especially when compared to the present substantial under-valuation of our own
assets and what we consider to be an overpriced market for new freehold and
leasehold properties. We have simultaneously maintained the strength of our
balance sheet and the high quality of our 90% freehold property portfolio.
At a time when many companies are cutting back on investment, we have started an
extensive refurbishment programme across our estate. This will leave us in a
strong position to benefit when economic conditions improve.
Trading in the early weeks of the current financial year has been satisfactory
taking into account the impact of a late Easter. The hotel market is challenging
at the moment, and it is still too early to tell how long the present downturn
in the City will last. However, we are confident that our long-term investments
in these areas, and indeed across the business as a whole, are well placed to
produce in the future the excellent results they have delivered in the past. The
Beer Company and Tenanted Division are continuing to make good progress, with a
healthy start to the new financial year.
The underlying strength of the Company's premium brands and the quality of the
predominantly freehold retail estate continue to stand us in good stead for
driving future growth.
A.G.F. Fuller CBE
Chairman
FULLER SMITH & TURNER P.L.C.
FINANCIAL HIGHLIGHTS
FOR THE 52 WEEKS ENDED 29 MARCH 2003
52 weeks to 52 weeks to
29 March 30 March Change
2003 2002 2003/2002
#000 #000
_____________________________________________________________ ____________ ____________ ____________
Turnover 137,643 132,395 4.0%
Normalised profits(1) 16,420 14,948 9.8%
EBITDA(2) 26,950 25,141 7.2%
Normalised earnings per share(3) 45.59p 40.07p 13.8%
Basic earnings per share(3) 48.04p 22.90p 109.8%
Dividend per share(3) 16.12p 15.17p 6.3%
Net assets per share(3) #6.52 #6.04 7.9%
Gearing ratio 14.5% 12.7% N/A
_____________________________________________________________ ____________ ____________ ____________
(1) Profits after interest before exceptional operating and non-operating
profits/costs.
(2) Earnings before interest, tax, depreciation and amortisation.
(3) Calculated on the #1 'A' ordinary share.
FULLER SMITH & TURNER P.L.C.
UNAUDITED GROUP PROFIT AND LOSS ACCOUNT
FOR THE 52 WEEKS ENDED 29 MARCH 2003
52 weeks to 52 weeks to
29 March 30 March
2003 2002
#000 #000
TURNOVER 137,643 132,395
Operating costs (119,264) (116,969)
-------------------- --------------------
OPERATING PROFIT
-------------------- --------------------
Before operating exceptional costs 18,379 16,776
Operating exceptional costs - (1,350)
-------------------- --------------------
TOTAL OPERATING PROFIT 18,379 15,426
Non-operating exceptional profits/(losses) 584 (3,799)
Interest payable (net) (1,959) (1,828)
-------------------- --------------------
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 17,004 9,799
Taxation (5,326) (3,935)
-------------------- --------------------
PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION 11,678 5,864
Preference dividends (120) (120)
-------------------- --------------------
ATTRIBUTABLE TO EQUITY SHAREHOLDERS 11,558 5,744
Ordinary dividends (3,694) (3,814)
-------------------- --------------------
RETAINED PROFIT FOR THE FINANCIAL YEAR 7,864 1,930
==================== ====================
EARNINGS PER SHARE*
Basic 48.04p 22.90p
Diluted 47.92p 22.80p
Normalised basis 45.59p 40.07p
*Calculated on the #1 'A' ordinary share.
FULLER SMITH & TURNER P.L.C.
UNAUDITED GROUP BALANCE SHEET
29 MARCH 2003
At At
29 March 30 March
2003 2002
#000 #000
FIXED ASSETS
Freehold and leasehold properties 148,521 144,488
Plant, machinery and vehicles 8,547 7,577
Containers, fixtures and equipment 31,632 32,978
Capital work in progress 2,007 3,240
-------------------- --------------------
190,707 188,283
FIXED ASSET INVESTMENTS 411 527
-------------------- --------------------
191,118 188,810
CURRENT ASSETS
Stocks 3,840 3,838
Debtors 10,528 11,419
Current asset investments 635 2,050
Cash, at bank and in hand 4,403 5,275
-------------------- --------------------
19,406 22,582
CREDITORS: amounts falling due within one year 27,962 26,156
-------------------- --------------------
NET CURRENT LIABILITIES (8,556) (3,574)
-------------------- --------------------
TOTAL ASSETS LESS CURRENT LIABILITIES 182,562 185,236
CREDITORS: amounts falling due after more than one year
Debenture stock 26,985 26,974
PROVISION FOR LIABILITIES AND CHARGES 4,422 3,745
-------------------- --------------------
151,155 154,517
==================== ====================
CAPITAL AND RESERVES
Called up share capital:
Equity 22,921 25,323
Non equity 1,600 1,600
Share premium account 3,350 3,144
Capital redemption reserve 2,574 100
Revaluation reserve 28,303 28,794
Profit and loss account 92,407 95,556
-------------------- --------------------
TOTAL SHAREHOLDERS' FUNDS 151,155 154,517
==================== ====================
FULLER SMITH & TURNER P.L.C.
UNAUDITED GROUP CASH FLOW STATEMENT
FOR THE 52 WEEKS ENDED 29 MARCH 2003
52 weeks to 52 weeks to
29 March 30 March
2003 2002
#000 #000
NET CASH INFLOW FROM OPERATING ACTIVITIES 28,597 24,642
------------------- -------------------
RETURNS ON INVESTMENT AND SERVICING OF FINANCE
Preference dividends paid (120) (120)
Interest received 216 501
Interest paid (2,091) (2,234)
------------------- -------------------
(1,995) (1,853)
TAXATION
Corporation tax paid (4,354) (4,942)
CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
Payments to acquire tangible fixed assets (11,973) (26,980)
Payments to acquire fixed asset investments - (328)
Receipts from sales of tangible fixed assets 1,595 3,684
------------------- -------------------
(10,378) (23,624)
EQUITY DIVIDENDS PAID (3,801) (3,631)
------------------- -------------------
TOTAL NET CASH INFLOW/(OUTFLOW) BEFORE THE USE OF LIQUID RESOURCES 8,069
AND FINANCING
(9,408)
MANAGEMENT OF LIQUID RESOURCES* 1,415 11,391
FINANCING
Issue of equity shares 278 719
Repurchase of equity shares (10,634) (498)
------------------- -------------------
(10,356) 221
------------------- -------------------
MOVEMENT IN CASH IN THE YEAR (872) 2,204
=================== ===================
* Management of liquid resources is the movement in cash on short-term deposit
at financial institutions.
FULLER SMITH & TURNER P.L.C.
UNAUDITED GROUP CASH FLOW STATEMENT (CONTINUED)
FOR THE 52 WEEKS ENDED 29 MARCH 2003
RECONCILIATION OF OPERATING PROFIT TO NET 52 weeks to 52 weeks to
CASH INFLOW FROM OPERATING ACTIVITIES 29 March 30 March
2003 2002
#000 #000
Operating profit 18,379 15,426
Depreciation 8,521 8,287
Loss on disposal of tangible fixed assets 50 78
Impairment of fixed assets - 1,350
------------------- -------------------
EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION 26,950 25,141
(INCREASE)/DECREASE IN WORKING CAPITAL
Stocks (2) 191
Debtors 890 (941)
Creditors 759 251
------------------- -------------------
NET CASH INFLOW FROM OPERATING ACTIVITIES 28,597 24,642
=================== ===================
FULLER SMITH & TURNER P.L.C.
OTHER UNAUDITED GROUP PRIMARY STATEMENTS
FOR THE 52 WEEKS ENDED 29 MARCH 2003
GROUP STATEMENT OF RECOGNISED GAINS 52 weeks to 52 weeks to
AND LOSSES 29 March 30 March
2003 2002
#000 #000
Profit on ordinary activities after taxation 11,678 5,864
Prior year adjustment - (3,176)
-------------------- ---------------------
Total recognised gains since the last annual report 11,678 2,688
==================== =====================
GROUP HISTORICAL COST PROFITS AND LOSSES
Reported profit on ordinary activities before taxation 17,004 9,799
Realisation of property revaluation movements of previous years 491 (181)
-------------------- ---------------------
Historical cost profit on ordinary activities before taxation 17,495 9,618
-------------------- ---------------------
Historical cost profit for the year retained after taxation 8,355 1,749
==================== =====================
RECONCILIATION OF NET CASH FLOW TO
MOVEMENT IN NET DEBT
Movement in cash in the year (872) 2,204
Cash inflow from movement in liquid resources (1,415) (11,391)
Amortisation of issue costs (11) (11)
-------------------- ---------------------
Movement in net debt in the year (2,298) (9,198)
Net debt at the beginning of the year (19,649) (10,451)
-------------------- ---------------------
Net debt at the end of the year (21,947) (19,649)
==================== =====================
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS'
FUNDS
Shareholders' funds brought forward 154,517 152,366
Profit on ordinary activities after taxation 11,678 5,864
Dividends - preference (120) (120)
- ordinary (3,694) (3,814)
New share capital subscribed 278 719
Shares repurchased and cancelled (11,504) (498)
-------------------- ---------------------
Net movement in shareholders' funds (3,362) 2,151
-------------------- ---------------------
Shareholders' funds at the end of the year 151,155 154,517
==================== =====================
Shareholders' funds comprise:
Equity interests 149,555 152,917
Non-equity interests 1,600 1,600
-------------------- ---------------------
151,155 154,517
==================== =====================
Non-equity interests reflect the cost of non-redeemable cumulative preference
shares.
FULLER SMITH & TURNER P.L.C.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 MARCH 2003
1. PRELIMINARY STATEMENT
This statement does not constitute full financial statements as defined by S.240
of the Companies Act 1985. Full financial statements for the year ended 30
March 2002, including an unqualified auditors' report, have been delivered to
the Registrar of Companies. The unaudited financial information in this
statement has been prepared in accordance with applicable accounting standards.
The accounting policies used have been applied consistently and are described in
full in the statutory financial statements for the year ended 29 March 2003,
which will be mailed to shareholders on or before Monday 16 June 2003 and
delivered to the Registrar of Companies. The financial statements will also be
available from the Company's registered office: Griffin Brewery, Chiswick,
London W4 2QB from that date.
2. SEGMENTAL ANALYSIS
52 weeks to 29 March 2003 Fuller's Inns Beer Company Total
#000 #000 #000
TOTAL SALES 96,972 62,695 159,667
Inter-segment sales - (22,024) (22,024)
----------- ----------- -----------
Sales to third parties 96,972 40,671 137,643
----------- ----------- -----------
SEGMENTAL PROFIT 16,010 6,840 22,850
----------- -----------
Net central costs (4,471)
-----------
Operating profit 18,379
Non-operating exceptional profits 584
Interest payable (net) (1,959)
-----------
Profit on ordinary activities before taxation 17,004
-----------
ASSETS EMPLOYED ----------- ----------- -----------
Segmental assets 164,197 18,585 182,782
----------- -----------
Unallocated net liabilities* (31,627)
-----------
Total net assets 151,155
-----------
2. SEGMENTAL ANALYSIS (CONTINUED)
52 weeks to 30 March 2002 Fuller's Inns Beer Company Total
#000 #000 #000
TOTAL SALES 94,362 60,764 155,126
Inter-segment sales - (22,731) (22,731)
----------- ----------- -----------
Sales to third parties 94,362 38,033 132,395
----------- ----------- -----------
Segmental profit before FRS 11 15,178 5,806 20,984
Impairment of properties (FRS 11) (1,350) - (1,350)
----------- ----------- -----------
SEGMENTAL PROFIT 13,828 5,806 19,634
----------- -----------
Net central costs (4,208)
-----------
Operating profit 15,426
Non-operating exceptional losses (3,799)
Interest payable (net) (1,828)
-----------
Profit on ordinary activities before taxation 9,799
-----------
ASSETS EMPLOYED ----------- ----------- -----------
Segmental assets 162,263 16,993 179,256
----------- -----------
Unallocated net liabilities* (24,739)
-----------
Total net assets 154,517
-----------
* Unallocated net liabilities represent the net of dividends, debentures,
corporation tax, cash at bank and assets held under central management.
3. TAXATION
Corporation tax and deferred tax has been provided as follows:
2003 2002
Tax on normalised profits #000 #000
Current tax 4,649 3,962
Deferred tax 684 815
------------------ ------------------
Total tax on normalised profits 5,333 4,777
Tax on exceptional items
Deferred tax credit (7) (842)
------------------ ------------------
Total tax charge 5,326 3,935
------------------ ------------------
Effective rate on normalised profits 32.5% 32.0%
Normalised profits are profits after interest before exceptional operating and
non-operating costs/profits. There is no tax payable on exceptional items owing
to the availability of rollover relief.
4. ORDINARY DIVIDENDS
2003 2002
pence pence
Interim 4.75 4.47
Final 11.37 10.70
------------------- -------------------
16.12 15.17
------------------- -------------------
The pence figures above are for the #1 'A' ordinary shares and unquoted #1 'C'
ordinary shares. The unquoted 10p 'B' shares carry dividend rights of 1/10 of
those applicable to the #1 'A' ordinary shares.
5. EARNINGS PER SHARE
2003 2002
#000 #000
Profit attributable to equity shareholders 11,558 5,744
Non-operating exceptional items net of tax (591) 2,957
Impairment of fixed assets - 1,350
------------------- -------------------
Normalised earnings attributable to equity shareholders 10,967 10,051
------------------- -------------------
Weighted average share capital 24,057,000 25,081,000
Dilutive outstanding options 64,000 110,000
------------------- -------------------
Adjusted weighted average share capital 24,121,000 25,191,000
------------------- -------------------
Basic earnings per share* 48.04p 22.90p
Diluted earnings per share* 47.92p 22.80p
Normalised earnings per share * 45.59p 40.07p
*Calculated on the #1 'A' ordinary share or unquoted #1 'C ' ordinary share.
Earnings on the unquoted 'B' 10p ordinary shares are 1/10 of the figures for the
#1 'A' ordinary shares.
The calculation is based on earnings (after deducting preference dividends) and
on the average weighted ordinary share capital. Normalised earnings exclude all
exceptional operating and non-operating costs/profits.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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