Interim Results
November 20 2003 - 2:01AM
UK Regulatory
RNS Number:2824S
SSL International PLC
20 November 2003
20 November, 2003
INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2003
6 Months To:
30/9/03 30/9/02
#'m #'m
Sales 317.7 308.5
Operating Profit* 32.8 30.5
Operating Margin* 10.3% 9.9%
Pre-Tax Profit 9.5 10.6
Free Cashflow 13.9 (2.4)
Basic EPS* 7.9 7.0
Basic EPS 3.2 3.5
*Before charging exceptional costs of #12.0m (2002: #8.4m)
*Sales up 3% to #318 million; Durex grows strongly and currency movements are
positive
*Gross and operating margins improved as underlying cost reductions are
achieved
*Free cashflow generated of #14 million
*Interim dividend maintained at 3.9 pence
*Marigold Industrial gloves business sold on 31st October
*Medical division divestment is on track
Ian Martin, Chairman, commented:
"The transformation of SSL into a focused consumer products group continues.
Marigold industrial gloves has been sold and we are now in the final stages of
selling our medical division. Extensive due diligence has been completed, and
discussions are underway with a view to reaching an agreement soon. We remain on
track to achieve our expectations."
Brian Buchan, Chief Executive, added:
"In an extraordinarily busy and challenging period we have continued to drive
growth in Durex across all our markets. The rejuvenation of Scholl, which was
hit by the downturn in the Far East, is underway and has the potential to
generate similar returns in the future."
For further information, please contact:
SSL International plc 020 7367 5760
Brian, Buchan, Chief Executive
Garry Watts, Group Finance Director
Jan Young, Head of Investor Relations
The Maitland Consultancy 020 7379 5151
William Clutterbuck
Brian Hudspith
OUTLOOK
Our prospects for the remainder of the year remain broadly in line with original
expectations, recognising however, that the disposal of the Marigold industrial
gloves business will reduce operating profits by some #3 million in the second
half (#6 million on a full year basis). We expect to see increased Scholl sales
in the second half, whilst Durex's improved level of sales will be maintained;
we will continue with our programme of cost reductions. Before adjusting for the
effects of disposals our underlying operating margin expectations for the full
year are in line with last year.
STRATEGY & BUSINESS DISPOSAL PROGRAMME
At the beginning of the current year we explained our strategy of focusing on
the consumer business and our decision to divest the medical division in
addition to our industrial gloves operations. Our rationale was, and remains, to
allow each of the businesses to receive the resources and attention required to
maximise growth. Once the disposal programme is complete, our strategy will be
to focus on the three key principles of growing sales, cutting costs and
launching new products.
On 3rd November this year we announced the sale of the Marigold industrial
gloves business to a French company, Comasec, for up to #22 million. We have
arranged a supply agreement with Comasec for Marigold housegloves, which we will
continue to distribute through our existing consumer channels. The disposal of
Marigold industrial is another step in simplifying the Group's range of
businesses so that SSL becomes focused on its consumer brands.
Our medical division is an attractive asset comprising a worldwide surgical
gloves/infection control business and a UK based wound management business and
both are generating growth. We received substantial levels of interest from a
number of parties. Extensive due diligence has been performed and we are now
progressing discussions with a view to reaching agreement on the disposals. We
remain on track to achieve our expectations and we will make further
announcements in due course.
SALES
Sales in half year grew 3% overall, as a result of consumer sales growth of 5.4%
and medical sales growth of 2.3%. Both divisions' sales were affected by
currency movements. The consumer business benefited from the strength of the
Euro against sterling and the medical business suffered from the weakness of the
US dollar. Adjusting for currency, consumer sales grew by 1.3% and medical by
3.8%. The rest of our continuing business declined by 9.4%. Sales are summarised
below.
As Reported Adjusted For Growth
Foreign
Exchange
30/9/03 30/9/02 30/9/02 Reported Adjusted
#'m #'m #'m % %
Branded 189.0 179.4 186.6 5.4% 1.3%
Consumer
- Family 71.1 63.7 65.6 11.6% 8.4%
Planning
-Footcare 46.1 43.0 45.4 7.2% 1.5%
-Footwear 33.5 32.8 34.5 2.1% (2.9%)
- Other 38.3 39.9 41.1 (4.0%) (6.8%)
Consumer
Medical 92.6 90.5 89.2 2.3% 3.8%
- Surgical 51.3 49.8 48.5 3.0% 5.8%
Gloves
- Hibi 10.7 11.6 11.8 (7.8%) (9.3%)
- Wound 23.1 22.2 22.5 4.1% 2.7%
Management
-Silipos 7.5 6.9 6.4 8.7% 17.2%
Other 21.2 22.5 23.4 (5.8%) (9.4%)
Continuing 302.8 292.4 299.2 3.6% 1.2%
Activities
Industrial 14.9 16.1 16.4 (7.5%) (9.1%)
Gloves
Total 317.7 308.5 315.6 3.0% 0.7%
CONSUMER HEALTHCARE
DUREX
The Durex brand grew by 8.4% in the period as innovative and focused marketing
enabled us to grow the condom category and our market share in our principal
markets. We are also pleased with the relaunch of our personal lubricant
business, Durex 'Play'.
Our strategy for Durex focuses on attracting new customers within the 16-24 age
group. Recent product launches underpin this strategy, for example the
youth-focused sub-brands, 'Love' in Italy and 'Fun' in Spain. Tactical product
launches, such as 'Play Mix' in Europe and 'Pleasure Pack' in the US, which
contain assorted condoms and lubricants, continue to expand the fun element of
sex.
New products to be launched in Europe and the US over the next six months are
Comfort Extra Large ("Comfort XL") and Pleasuremax, which is ribbed and dotted
to maximise stimulation for both partners.
The Durex Sex Survey undertaken earlier this year was the most successful yet
with over 150,000 responses worldwide. This type of research provides valuable
data to assist in positioning Durex in its various markets and helps create
focused, effective marketing and appropriate product development.
SCHOLL
Scholl has remained broadly flat over the same period last year. There was some
growth in Europe, as we maintained market share in the principal markets, with
the exception of the UK where, despite flat sales, our market share declined as
overall market growth was driven by sub-categories which are not in the Scholl
range. This growth was offset by a decline in the Asia Pacific region due to
poor economic conditions and the continued impact of the SARS epidemic. We are
not satisfied with this performance and it remains our objective to accelerate
the growth of Scholl.
To do this, we must simplify the existing range. We are working towards this by
reducing the number of individual product lines currently available and creating
a consistent product range and pack design. Our brand strategy is becoming more
focused and co-ordinated on a global scale. Alongside this, manufacturing and
distribution efficiencies will drive profitability, and growth will be achieved
as new product launches are made simpler and more effective. We believe these
initiatives are providing a solid platform for future growth.
However, continued product innovation is critical for future success. As
previously highlighted, a brand rejuvenation strategy is underway to improve
awareness and to redefine the image of Scholl among younger consumers. The
launch of Scholl 'Party Feet' in the pre-Christmas party season is part of this
strategy. 'Party Feet', targeted specifically at women, are clear gel cushions
to help prevent the burning pain in the balls of the feet resulting from wearing
high-heeled shoes.
The insoles range is being further developed, for example, by 'Spring Action
Inserts' which provide superior cushioning, comfort and support to help relieve
tired, aching legs and feet.
OTC
The OTC portfolio is sold predominantly in the UK, which is a relatively mature
market with underlying sales growth of 1.5%. The best performing OTC category is
the oral analgesic range comprising Syndol, Cuprofen and Paramol. The growth in
the UK has been outweighed by a decline in the local Italian OTC brands, Sauber
and Mister Baby resulting from continued de-stocking by pharmacies.
MEDICAL
Despite the obvious disruption to the medical business brought by the disposal
process, we are pleased with the division's underlying growth rate of 3.8%,
resulting from good growth in the Biogel surgical gloves business and a small
improvement in wound management product sales.
The US is our largest market for Biogel surgical gloves, accounting for almost
60% of category turnover and has shown underlying growth of 8%. The US
wholesaler de-stocking of surgical gloves evident in last year's results has
ceased as expected and continued volume gains have more than offset continued
competitive price pressure. Overall, Biogel surgical gloves achieved an
underlying growth rate of 5.8%.
Sales of Hibi declined by 9.3% relative to the same period last year. This is
largely a legacy of supply issues in the European market, offset partially by
growth in the Asia Pacific region.
The wound management business achieved sales of #23.1 million in the period,
some 2.7% ahead of the comparable period on a constant currency basis, as a
result of stable sales in the UK NHS.
OTHER
Sales of the remainder of our continuing business fell #2 million in the period.
This is due to a decline in unbranded 'bid' condom sales outweighing increased
sales of distributor products in the Far East.
COSTS
In parallel with the Group's corporate restructuring, the company is undertaking
a number of initiatives to reduce the cost structure and improve its operating
platform. These include an upgrade of computer systems, outsourcing of hardware
support to IBM, rationalisation of purchasing procedures in not-for-stock
expenditure categories and a continual improvement focus in the supply chain. As
a direct consequence of these initiatives our gross margin has improved to 59.5%
from 58.5% in the period despite flat sales. We estimate that we have generated
underlying cost savings within gross margin in the region of #7 million.
Advertising and promotional expenditure of #42.1 million in the first half of
the year is consistent with last year's levels, whilst variable selling expense
increases were principally as a result of growth in the US business. As a result
the group generated brand contribution of #123.1 million, at the same margin as
last year.
Overhead expenditure, including R&D expense, divisional operating expenditure
and central costs of #92.6 million were marginally lower than last year despite
increased expenditure on IT of #3 million and increases in the pension charge
following actuarial review of the schemes of #1 million. Adjusting for these and
salary increases, we estimate that underlying cost savings of #3 million have
been achieved in the period.
As the result of these cost savings and increased contribution from the Group's
associated operations in India, the overall operating margin grew to 10.3% from
9.9%.
Our drive for cost efficiency is ongoing and forms an integral part of our
consumer focused strategy. As we complete our divestiture programme, further
opportunities will be taken to simplify our entire supply chain and streamline
our business support processes. The gains realised will be used both to improve
profitability and to invest in the future growth of our brand portfolio.
CASH, INTEREST & TAXATION
Free cashflow of #13.9 million was generated in the period. Proceeds from the
Marigold industrial disposal will be reflected in the second half. Interest
costs were #11.3 million (2002: #11.5 million) with net debt at #294 million
(2002: #323 million). Interest in the period was covered 4.9 times by EBITDA.
The effective rate of taxation remains at 30%.
EXCEPTIONAL ITEMS
Exceptional items charged in the period were #12 million, consisting of #5.1
million relating to business process improvements, manufacturing costs of #3.4
million, merger and commercial costs of #0.5 million and #3.0 million of
professional fees.
DIVIDENDS
The Board has declared an interim dividend of 3.9 pence per ordinary share,
which is the same level as in the previous year. This will be payable on 2nd
March 2004 to shareholders on the register on 6th February 2004.
SERIOUS FRAUD OFFICE INVESTIGATION
On 5th November, the SFO announced the outcome of its investigation into past
misstatement of results and we are pleased that the SFO has concluded that there
is no action to be taken against SSL or any of its current employees.
BOARD CHANGES
Eric Anstee, a non-executive director, resigned from the Board on 11th September
2003 as a consequence of his appointment as Chief Executive of the Institute of
Chartered Accountants in England & Wales. We wish him well in his new role.
In his place we are pleased to welcome Richard Adam as Non-Executive Director
and Chairman of the Board's Audit Committee with effect from 13th November.
Richard is currently Group Finance Director of Associated British Port Holdings.
Unaudited Consolidated Profit and Loss Account
for the 6 months ended 30 September 2003
6 months to 6 months to 6 months to 6 months to 6 months to 6 months to
30 Sept 30 Sept 30 Sept 30 Sept 30 Sept 30 Sept
2003 2003 2003 2002 2002 2002
Total Exceptional Before Before Exceptional Total
items exceptional exceptional items
items items
#'m #'m #'m #'m #'m #'m
-------- -------- -------- -------- -------- --------
Turnover
Continuing
operations 302.8 - 302.8 292.4 - 292.4
Discontinued
operations 14.9 - 14.9 16.1 - 16.1
-------- -------- -------- -------- -------- --------
Total turnover 317.7 - 317.7 308.5 - 308.5
-------- -------- -------- -------- -------- --------
Operating
profit
Continuing
operations 17.6 (12.0) 29.6 27.1 (8.4) 18.7
Discontinued
operations 0.9 - 0.9 1.9 - 1.9
-------- -------- -------- -------- -------- --------
Group
operating
profit 18.5 (12.0) 30.5 29.0 (8.4) 20.6
Share of
operating
profit in
associated
undertakings 2.3 - 2.3 1.5 - 1.5
-------- -------- -------- -------- -------- --------
Total
operating
profit: Group
and share of
associated 20.8 (12.0) 32.8 30.5 (8.4) 22.1
undertakings
Exceptional
items:
Continuing
operations
Sale of fixed - - - - - -
assets
(Loss) on - - - - - -
disposal of
subsidiary
undertakings,
businesses and
brands
-------- -------- -------- -------- -------- --------
Profit on
ordinary
activities
before finance
charges 20.8 (12.0) 32.8 30.5 (8.4) 22.1
Finance
charges (net) (11.3) - (11.3) (11.5) - (11.5)
-------- -------- -------- -------- -------- --------
Profit on
ordinary
activities
before
taxation 9.5 (12.0) 21.5 19.0 (8.4) 10.6
Tax on profit
on ordinary
activities (3.5) 3.0 (6.5) (5.7) 1.7 (4.0)
-------- -------- -------- -------- -------- --------
Profit for the
period after
taxation 6.0 (9.0) 15.0 13.3 (6.7) 6.6
Equity - - - - - -
minority
interests
-------- -------- -------- -------- -------- --------
Profit for the
financial
period 6.0 (9.0) 15.0 13.3 (6.7) 6.6
-------- -------- -------- -------- -------- --------
Dividends paid
and proposed
on equity
shares (7.4) - (7.4) (7.4) - (7.4)
-------- -------- -------- -------- -------- --------
Retained
(loss)/
profit for the
period (1.4) (9.0) 7.6 5.9 (6.7) (0.8)
Earnings per
share (pence):
Basic 3.2 7.9 7.0 3.5
Basic (adjusted) 4.8 9.6 8.5 5.3
Diluted 3.2 7.9 7.0 3.5
-------- --------
12 months to 12 months to 12 months to
31 March 31 March 31 March
2003 2003 2003
Before Exceptional Total
exceptional items
items
#'m #'m #'m
--------- --------- ---------
Turnover
Continuing operations 591.3 - 591.3
Discontinued operations 32.6 - 32.6
--------- --------- ---------
Total turnover 623.9 - 623.9
--------- --------- ---------
Operating profit
Continuing operations 73.9 (21.0) 52.9
Discontinued operations 4.0 - 4.0
--------- --------- ---------
Group operating profit 77.9 (21.0) 56.9
Share of operating
profit in associated
undertakings 4.1 (0.2) .3.9
--------- --------- ---------
Total operating profit:
Group and share of
associated 82.0 (21.2) 60.8
undertakings
Exceptional items:
Continuing operations
Sale of fixed assets - 1.2 1.2
(Loss)/profit on
disposal of subsidiary
undertakings,
businesses and brands - (0.4) (0.4)
--------- --------- ---------
Profit on ordinary
activities before
finance charges 82.0 (20.4) 61.6
Finance charges (net) (22.5) - (22.5)
--------- --------- ---------
Profit on ordinary
activities before
taxation 59.5 (20.4) 39.1
Tax on profit on
ordinary activities (17.9) 3.6 (14.3)
--------- --------- ---------
Profit for the period
after taxation 41.6 (16.8) 24.8
Equity minority interests - - -
--------- --------- ---------
Profit for the
financial period 41.6 (16.8) 24.8
--------- --------- ---------
Dividends paid and
proposed on equity
shares (23.3) - (23.3)
--------- --------- ---------
Retained (loss/
profit for the period 18.3 (16.8) 1.5
Earnings per share (pence):
Basic 22.0 13.1
Basic (adjusted) 25.1 16.2
Diluted 22.0 13.1
---------
Unaudited Consolidated Balance Sheet
as at 30 September 2003
30 Sept 30 Sept 31 March
2003 2002 2003
#'m #'m #'m
--------- --------- ---------
Fixed assets
Intangible assets
Brands , trademarks, patents 74.6 74.5 74.9
Goodwill 72.2 73.4 75.6
--------- --------- ---------
146.8 147.9 150.5
Tangible assets 150.9 155.2 158.2
Investments 11.7 7.9 9.6
--------- --------- ---------
309.4 311.0 318.3
Current assets
Stocks 102.9 111.9 106.9
Debtors 181.3 174.0 192.5
Cash and deposits 98.5 52.8 70.0
--------- --------- ---------
382.7 338.7 369.4
Creditors:
Amounts falling due within one year (339.7) (297.7) (327.3)
--------- --------- ---------
Net current assets 43.0 41.0 42.1
--------- --------- ---------
Total assets less current liabilities 352.4 352.0 360.4
Creditors:
Amounts falling due after more than one (231.8) (237.8) (236.4)
year
Provisions for liabilities and charges (31.1) (28.0) (31.8)
--------- --------- ---------
Net assets 89.5 86.2 92.2
--------- --------- ---------
Capital and reserves - equity
Called up share capital 18.9 18.9 18.9
Share premium account 40.3 40.3 40.3
Other reserves 136.8 136.8 136.8
Profit and loss account (106.6) (109.9) (103.9)
--------- --------- ---------
Shareholders' funds 89.4 86.1 92.1
Equity minority interests 0.1 0.1 0.1
--------- --------- ---------
Total capital employed 89.5 86.2 92.2
--------- --------- ---------
Unaudited Consolidated Cash Flow Statement
for the 6 months ended 30 September 2003
6 months to 6 months to 12 months to
30 Sept 30 Sept 31 March
2003 2002 2003
#'m #'m #'m
--------- --------- ---------
Net cash inflow from
operating activities
after exceptional items 34.4 14.8 87.8
--------- --------- ---------
Returns on investments and
servicing of finance
Interest paid (net) (11.1) (11.0) (22.7)
--------- --------- ---------
Net cash outflow from returns
on
investments and servicing of (11.1) (11.0) (22.7)
finance --------- --------- ---------
Taxation (1.9) (3.0) (7.8)
--------- --------- ---------
Capital expenditure and
financial investment
Intangible assets and
investments 0.1 (2.2) (5.9)
(net)
Purchase of tangible fixed (7.7) (4.9) (18.6)
assets
Sale of OTC brands and assets - - 0.1
Sale of tangible fixed assets 0.1 3.9 6.3
--------- --------- ---------
Net cash outflow from capital
expenditure and financial
investment (7.5) (3.2) (18.1)
--------- --------- ---------
Acquisitions and disposals
Payment of deferred (0.1) - -
consideration
Investment in associated
undertakings - - (0.1)
--------- --------- ---------
Net cash outflow from
acquisitions (0.1) - (0.1)
and disposals --------- --------- ---------
Equity dividends paid (15.9) (15.9) (23.2)
--------- --------- ---------
Cash (outflow) / inflow
before use (2.1) (18.3) 15.9
of liquid resources and
financing
Management of liquid (5.5) 4.9 1.7
resources --------- --------- ---------
Financing
Issue of ordinary share - 0.3 0.3
capital
Net advance of borrowings 22.7 26.3 9.9
Repayment of capital element
of (0.4) (0.2) (0.6)
finance leases --------- --------- ---------
Net cash inflow from 22.3 26.4 9.6
financing --------- --------- ---------
Increase in cash in the 14.7 13.0 27.2
period --------- --------- ---------
The accompanying notes are an integral part of this cash flow statement
Unaudited Reconciliation of Operating Profit to Net Cash Inflow from
Operating Activities for the 6 months ended 30 September 2003
6 months to 6 months to 12 months to
30 Sept 30 Sept 31 March
2003 2002 2003
#'m #'m #'m
--------- --------- ---------
Group operating profit before
exceptional items 30.5 29.0 77.9
Depreciation and amortisation 13.2 12.0 24.2
Loss on sale of tangible
fixed 0.1 0.1 0.1
assets
Exchange differences 0.8 2.5 -
Movement in working capital 1.9 (20.1) 2.5
Increase/(decrease) in 0.1 (0.4) (0.5)
provisions --------- --------- ---------
Net cash inflow from
operating activities
pre-exceptional items 46.6 23.1 104.2
--------- --------- ---------
Cash effect of operating
exceptional items (12.2) (8.3) (16.4)
--------- --------- ---------
Net cash inflow from
operating activities
After exceptional items 34.4 14.8 87.8
--------- --------- ---------
Cash effect of operating exceptional items for the periods to 31 March 2003 and
30 September 2002 exclude proceeds from the sale of fixed assets which had been
treated as exceptional per the profit and loss account. The proceeds from sale
of fixed assets are shown within the consolidated cash flow statement in the
capital expenditure and investment category. The net exceptional cash flow after
taking into account disposal proceeds was #10.7 million for the year to 31 March
2003 and #5.0 million for the period to 30 September 2002.
Unaudited Reconciliation of Net Cash Inflow to Movement in Net Debt for the 6
months ended 30 September 2003
6 months to 6 months to 12 months to
30 Sept 30 Sept 31 March
2003 2002 2003
#'m #'m #'m
-------- -------- --------
Increase in cash in the 14.7 13.0 27.2
period
Cash (inflow) from increase
in debt (22.7) (26.3) (9.9)
Cash outflow from payment of
finance leases 0.4 0.2 0.6
Cash inflow/(outflow) from
changes 5.5 (4.9) (1.7)
in liquid resources -------- -------- --------
Changes in net debt resulting
from (2.1) (18.0) 16.2
cash flows
New finance leases (0.3) (0.3) (0.5)
Exchange differences - 3.4 0.2
-------- -------- --------
Movement in net debt in the (2.4) (14.9) 15.9
period
Opening net debt (292.0) (307.9) (307.9)
-------- -------- --------
Closing net debt (294.4) (322.8) (292.0)
-------- -------- --------
Included within closing net debt is #80.5m cash (March 2003 #57.6m; September
2002 #43.8m), liquid resources #18.0m (March 2003 #12.4m; September 2002 #9.0m)
overdrafts and loans within one year of #166.2 m (March 2003 #129.7m; September
2002 #141.9m), loans due over more than one year #225.9m (March 2003 #231.3m;
September 2002 #232.6m) and finance leases #0.8m (March 2003 #1.0m; September
2002 #1.1m).
Unaudited Consolidated Statement of Total Recognised Gains and Losses for the 6
months ended 30 September 2003
6 months to 6 months to 12 months to
30 Sept 30 Sept 31 March
2003 2002 2003
#'m #'m #'m
-------- -------- --------
Profit for the period 6.0 6.6 24.8
Currency translation
differences on (1.8) (1.2) (0.2)
foreign currency net
investments
Taxation on gains taken
directly to 0.5 - 2.3
reserves -------- -------- --------
Total recognised gains
relating to 4.7 5.4 26.9
the period -------- -------- --------
Unaudited Consolidated Reconciliation of Movements in Shareholders' Funds for
the 6 months ended 30 September 2003
6 months to 6 months to 12 months to
30 Sept 30 Sept 31 March
2003 2002 2003
#'m #'m #'m
-------- -------- --------
Profit for the period 6.0 6.6 24.8
Dividends (7.4) (7.4) (23.3)
-------- -------- --------
Retained (loss)/ profit for
the (1.4) (0.8) 1.5
period -------- -------- --------
Taxation on gains and losses
taken 0.5 - 2.3
directly to reserves
Other recognised (losses) for
the (1.8) (1.2) (0.2)
period
Share capital and share
premium - 0.3 0.3
issued
Goodwill on disposals
previously - - 0.4
written off to reserves -------- -------- --------
Net movement in shareholders' (2.7) (1.7) 4.3
funds
Opening shareholders' funds 92.1 87.8 87.8
-------- -------- --------
Closing shareholders' funds 89.4 86.1 92.1
-------- -------- --------
Notes to the Unaudited Financial Statements
for the 6 months ended 30 September 2003
1.Segmental analysis of turnover
(a) Analysis of Turnover by Geographical Destination:
6 months to 6 months to 12 months to
30 Sept 30 Sept 31 March
2003 2002 2003
#'m #'m #'m
-------- ------- --------
Continuing operations:
United Kingdom and Eire 81.6 79.5 160.3
Continental Europe 126.4 116.5 237.3
Americas 52.0 56.8 108.9
Asia Pacific and Rest of 42.8 39.6 84.8
the World -------- ------- --------
302.8 292.4 591.3
Discontinued operations:
United Kingdom and Eire 4.1 4.5 12.4
Continental Europe 7.4 7.0 12.2
Americas 3.3 4.5 7.9
Asia Pacific and Rest of 0.1 0.1 0.1
the World
317.7 308.5 623.9
-------- ------- --------
(b) Analysis of turnover by principal class of business:
6 months to 6 months to 12 months to
30 Sept 30 Sept 31 March
2003 2002 2003
#'m #'m #'m
-------- ------- --------
Continuing operations:
Consumer Healthcare- 189.0 179.4 365.7
branded
Household gloves 6.6 6.6 13.6
Medical 92.6 90.5 181.8
Other 14.6 15.9 30.2
-------- ------- --------
302.8 292.4 591.3
Discontinued operations:
Industrial gloves 14.9 16.1 32.6
-------- ------- --------
317.7 308.5 623.9
-------- ------- --------
Prior year comparatives have been reclassified to reflect the fact that
Sauber and Scholl Medical compression hosiery(previously reported in
Medical) are now reported in Consumer Healthcare-branded. Unbranded Consumer
Healthcare sales, previously disclosed in Consumer are now included within
Other sales. Prior year comparatives have been adjusted to reflect this.
Discontinued operations comprises of the industrial gloves division (sold in
October 2003).Prior year comparatives have been adjusted to reflect this.
2.Exceptional Items and Discontinued Operations
Exceptional items
The #12.0 million pre-tax exceptional charge includes business processes review
and associated consultancy costs of #5.1 million, manufacturing costs of #3.4
million, merger integration and commercial restructuring costs of #0.5 million
and #3.0 million of professional fees and other costs.
Discontinued operations
Discontinued operations relate to the industrial gloves business which was
disposed of in October 2003. The Marigold industrial gloves business was sold in
October 2003 for up to #22 million, including cash of #15 million, #5 million
loan note and up to #2 million which may be paid by way of an earn out. It is
estimated that the transaction generated a pre- tax loss of up to #15 million.
3. Earnings per share
Earnings per share has been calculated by dividing the profit attributable to
ordinary shareholders by the weighted average number of ordinary shares in issue
during the period. An adjusted earnings per share figure has been shown in order
to achieve comparability period on period. The calculation uses the basic
weighted average number of shares together with basic earnings adjusted to
exclude the impact of amortisation of goodwill and intangibles.
The profit attributable to ordinary shareholders is calculated as follows:
6 months to 6 months to 6 months to 6 months to 12 months to 12 months to
30 Sept 30 Sept 30 Sept 30 Sept 31 March 31 March
2003 2003 2002 2002 2003 2003
Before Before Before
Total exceptional exceptional Total exceptional Total
items Items Items
#'m #'m #'m #'m #'m #'m
-------- -------- -------- -------- -------- --------
Profit for
the period:
For basic
earnings per
share 6.0 15.0 13.3 6.6 41.6 24.8
Amortisation
of goodwill
and
intangibles 3.1 3.1 2.7 3.4 5.9 5.9
-------- -------- -------- -------- -------- --------
For adjusted
earnings per
share 9.1 18.1 16.0 10.0 47.5 30.7
-------- -------- -------- -------- -------- --------
The calculation of diluted earnings per share uses basic earnings as defined
above, and the basic weighted average number of ordinary shares in issue during
the period, adjusted as follows:
6 months to 6 months to 6 months to 6 months to 12 months to 12 months to
30 Sept 30 Sept 30 Sept 30 Sept 31 March 31 March
2003 2003 2002 2002 2003 2003
Before Before Before
Total exceptional exceptional Total exceptional Total
items Items Items
-------- -------- -------- -------- -------- --------
Weighted
average
number of
shares(millions):
For basic
earnings
per 189.2 189.2 189.2 189.2 189.2 189.2
share
Dilutive
effect of
share 0.6 0.6 0.2 0.2 0.2 0.2
options -------- -------- -------- -------- -------- --------
For diluted
earnings
per 189.8 189.8 189.4 189.4 189.4 189.4
share -------- -------- -------- -------- -------- --------
4. Listing Rules note for Preliminary Results Announcements
The financial information set out above does not constitute full financial
statements within the meaning of section 240 of the Companies Act 1985.
The financial information has been prepared on the basis of the accounting
policies set out in the 2003 financial statements.
The comparative figures for the financial year ended 31 March 2003 are not the
Company's statutory accounts for that financial year. Those accounts have been
reported on by the Company's auditors and delivered to the registrar of
companies. The report of the auditors was unqualified and did not contain a
statement under section 237 (2) or (3) of the Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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