RNS Number:6696I
Alvis PLC
13 March 2003
13 March 2003
ALVIS plc
RESULTS FOR THE YEAR
ENDED 31 DECEMBER 2002
HIGHLIGHTS
2002 2001
Turnover #225.7m #149.4m
Profit before exceptional items and tax #16.5m #11.8m
Profit before tax #14.5m #28.2m
Earnings per share before exceptional items 10.4p 6.3p
Basic earnings per share 9.1p 18.2p
Dividend per share (full year) 6.0p 5.5p
Order book #781.1m #562.6m
* Turnover up 51%
* Profit before exceptional items and tax up 40%
* Earnings per share before exceptional items up 65%
* Final dividend up 9%
* Net funds #65m
* Vickers integration on plan
Nick Prest, Chairman and Chief Executive of Alvis, commented:
"The strong order book and the additional opportunities brought by the Vickers
acquisition mean that the outlook for further progress at Alvis is favourable."
Enquiries:
Alvis plc +44 (0)20 7808 8888
Nick Prest, Chairman and Chief Executive
Martin Greenslade, Finance Director
Smithfield Financial +44 (0)20 7360 4900
Rupert Trefgarne
ALVIS plc
PRELIMINARY RESULTS FOR THE YEAR
ENDED 31 DECEMBER 2002
CHAIRMAN'S STATEMENT
Results
In the 12 months ended 31 December 2002 Group sales were #225.7m (2001:
#149.4m), profit before tax and exceptional items was #16.5m (2001: #11.8m) and
profit before tax was #14.5m (2001: #28.2m). Group profit after tax was #10.1m
(2001: #21.0m) and earnings per ordinary share were 10.4p before exceptional
items (2001: 6.3p) and 9.1p after exceptional items (2001: 18.2p).
The main changes to the composition of the pre-exceptional profit before tax in
2002 as compared with 2001 were:
* an increase in trading profit at Alvis Hagglunds from #5.8m in 2001 to
#11.2m in 2002.
* an increase in trading profit at Alvis Vickers (formerly Alvis Vehicles)
from #2.2m in 2001 to #5.3m in 2002.
* A reduction in Group interest received from #5.6m in 2001 to #2.1m in 2002
The large improvement in trading profit arose from increased sales at both Alvis
Vickers and Alvis Hagglunds.
At Alvis Vickers sales increased to #97.2m (2001: #69.6m) as the bulk of the
deliveries under the Oman Piranha contract were effected during the year. At
Alvis Hagglunds sales increased to #111.7m (2001: #79.8m) as deliveries
commenced on the major new CV90 programmes for Switzerland and Finland.
An exceptional charge of #2.0m was taken in respect of reorganisation at Alvis
Vickers following the acquisition of the former Vickers Defence businesses.
The reduction in net interest receivable resulted primarily from lower cash
balances arising from the redemption of outstanding convertible preference
shares for #31.5m in April 2002 and the application of advance payments to
working capital. Lower interest rates also affected interest earnings. The
Group's net funds position at the end of 2002 was #65.3m (2001: #141.7m),
reflecting the initial cost of the Vickers Defence acquisition (#18.0m) as well
as the above factors. The Group's own net funds position, that is to say after
deducting unapplied customer advances, was #5.1m (2001: #38.7m).
Acquisition of Vickers Defence
The acquisition of the Vickers Defence businesses on 30 September 2002 was a
major development for the Group. Vickers Defence Systems, based at Newcastle,
was combined with the former Alvis Vehicles business at Telford, and has been
operating as Alvis Vickers under unified management since 1 October.
Alvis Bridging (formerly Vickers Bridging), based at Wolverhampton, reports into
Alvis Vickers. Alvis South Africa (formerly Vickers OMC) reports to Alvis plc.
At the same time as completing the Vickers acquisition we changed the names of
Hagglunds Vehicle and Hagglunds Moelv to Alvis Hagglunds and Alvis Moelv
respectively. We made these changes in order to promote a coherent international
identity for the enlarged Group around the Alvis name, whilst preserving the
individual company identities.
The acquisition of Vickers Defence Systems brought a valuable order book, some
advanced and complementary technology, and the potential for cost savings. In
order to exploit these opportunities, Alvis Vickers has established a unified
management structure and announced a reorganisation under which Newcastle will
become the main site. Significant facilities will be retained in Leeds and
Telford. In addition to the exceptional charge taken in 2002, further costs will
arise in 2003 and 2004. We expect the overall cash cost of the reorganisation to
be contained within the #7.5m figure announced at the time of the acquisition.
The acquired businesses made a loss in the final quarter of 2002, but turnover
in Newcastle was unusually low in this period and margin treatment on long-term
contracts was conservative. Order intake at the acquired businesses in the final
quarter was encouraging at #48.6m. General customer reaction to the acquisition
has been extremely favourable, and it is clear that the overall market position
of our UK company has been significantly enhanced.
Operations and Technology
At Alvis Vickers vehicle output in 2002 comprised more than 70 Piranhas for
Oman, and Tactica and Supacat vehicles and Scorpion upgrades for other overseas
customers.
Domestic vehicle revenues were derived primarily from development projects. Work
continued throughout the year on the development of the tri-national MRAV, which
has now been named Boxer. The first Boxer prototype was officially unveiled to
the international customer base in Germany late in 2002. The first UK prototype
is now under assembly at Alvis Vickers.
The major work at the Newcastle site comprised development of the new Engineer
Tank System. Under this #240m project, Trojan, an Armoured Engineering Vehicle,
and Titan, an Armoured Bridgelaying Vehicle, are being developed on the
Challenger 2 chassis. The work is proceeding well and the first prototype was
recently unveiled to a senior UK MoD audience.
Alvis Vickers commenced work in 2002 under contract from General Dynamics on the
installation design and certification of the Bowman digital communications
system for the British Army vehicles of Alvis Vickers design. This is a
substantial task.
Product support is a major element of the Alvis Vickers business, contributing
sales in 2002 of #31.9m. In the final quarter sales were #11.6m, implying an
annualised level of around #50m. The acquisition of Vickers Defence has brought
some innovative long-term contracts for spares support and repair of Challenger
2 tanks. The potential exists to emulate these for other British Army vehicles
of Alvis Vickers design.
Building on the partnership which characterises the relationship between Alvis
Vickers and the UK MoD, the company has fully supported the MoD in its
contingency planning in the Gulf region. Recent armoured vehicle upgrade
contracts to the value of approximately #20m have been awarded to Alvis Vickers.
The MoD has congratulated the company on its speedy response to these urgent
needs.
At Alvis Hagglunds, vehicle output comprised final deliveries of CV9040s and
Leopard 2 tanks to the Swedish Army and the initial deliveries of CV9030 to
Finland and Switzerland. In addition, the first CV9040 upgraded for
international missions was delivered for Sweden.
CV9030 is the most modern infantry fighting vehicle in the world, making
extensive use of information technology for vehicle management, situational
awareness and interaction with other fighting elements. This technology will
become increasingly important in future vehicle projects.
The first two BvS10 All Terrain Vehicles delivered to the UK Royal Marines in
2001 continued trials in 2002. The results were good, and the UK MoD has now
approved serial production at Alvis Hagglunds.
Alvis Hagglunds also had a good year in product support, achieving sales of
#29.0m.
Both Alvis Vickers and Alvis Hagglunds applied significant resources to
technology development in 2002. Private venture research expenditure amounted to
#5.4m, in addition to significant customer-funded work. As well as addressing
future requirements in vehicle propulsion, mobility and survivability, work has
gone into the software architectures which will contribute substantially to the
future effectiveness of vehicle systems.
Personnel and Organisation
The composition of the Alvis Board has remained unchanged during 2002. Sven
Kagevall continued as President of Alvis Hagglunds. Following the acquisition
of Vickers Defence Systems, Trevor Harrison, formerly Group Director of
Marketing, was appointed Managing Director of Alvis Vickers. Trevor Harrison is
an engineer with deep experience of the armoured vehicle industry, having spent
periods of his career with Royal Ordnance and Vickers Defence, as well as Alvis.
Chris Rowe, previously Managing Director of Alvis Vehicles, left the business
following the merger. The Board is very grateful to him for his contribution.
A number of senior executives have joined the Group following the purchase of
Vickers Defence. They are very welcome, as are all the employees who have joined
us as a result of the acquisition.
John Horton, Operations Director of Alvis Vehicles until his retirement in 2002,
was awarded the OBE in the Birthday Honours List in 2002 for his services to the
UK Defence Industry. John had a key role in the successful production of Warrior
vehicles over many years. Warrior has played a major part in many British Army
operations for the last 15 years, and the people who designed, built and
supported it have thereby contributed to the success of the British Army.
Knowing that our work serves a serious purpose, and that equipment quality and
reliability is critical to the soldiers who use it, is an important motivating
force for all our Group staff.
Whilst keeping alternatives under review Alvis continues to believe that
offering a defined benefit pension scheme to all its UK employees is in the
interests of the company. At 31 December 2002, the deficit on the Alvis Pension
Scheme amounted to #9.7m on the FRS 17 basis. A triennial actuarial valuation of
the Alvis pension scheme as at 5th April 2003 will be conducted during the year
and future contribution rates will be assessed in the light of this.
Following the Vickers Defence acquisition the Group employs over 2,800 people
around the world. The Board would like to take this opportunity to thank them
all for their efforts.
Orders
The Group's order intake in the year was #149.7m (2001: #127.7m) and an order
stock of #248.6m was acquired with the Vickers purchase. The Group's order book
at 31 December 2002 stood at #781.1m (2001: #562.6m). Of this #435.6m was at
Alvis Hagglunds and #298.2m at Alvis Vickers, with the balance at Alvis
Bridging and Alvis South Africa.
The Group order intake of #149.7m consisted of a large number of smaller orders.
The only individual order over #10m was from Malaysia for bridging systems
valued at #19m. It is encouraging to attain this level without a single, large
programme win.
Prospects
Based on existing deliverable orders and the level of annual recurring business
which the Group is now receiving, the outlook for growth in Group sales and
profit before tax and exceptional items in 2003 is encouraging. The outlook for
2004 and 2005 also looks favourable, based on the existing order stock. Profit
development in the period could be enhanced by additional export orders. Whilst
progress on our key export campaigns from the UK has been frustratingly slow,
none has been lost, and some of the opportunities have advanced. We remain
optimistic that export orders at Alvis Vickers will be stronger in the next
three years than they have been in the previous three years. Prospects for
future export business on all terrain vehicles at Hagglunds look good, and we
are working hard on CV90 opportunities which could ensure production continuity
beyond 2005.
In the UK we are working on a number of new projects for the Ministry of
Defence. The most important of these is the Future Rapid Effects System (FRES),
which is a programme for a range of new air-portable armoured platforms. FRES
will be at the heart of the British Army's future rapid reaction capability for
worldwide operations, and of the drive to use information technology as a force
multiplier.
FRES is expected to start with an assessment phase this year, and Alvis Vickers
is well placed to play a major role. A decision on the Future Command Liaison
Vehicle (FCLV) is also expected to be made this year. A number of vehicle
upgrade programmes are also under consideration. In total we estimate that the
accessible UK market available to us over the next 10 years exceeds #3 billion,
and Alvis Vickers is well placed to win a significant slice of this business. In
Sweden there is strong interest in developing a new light armoured vehicle (SEP
programme) with similarities to FRES. Linkages between FRES and SEP may provide
benefits to both programmes.
For these reasons the Group's medium and long-term prospects look encouraging,
as well as the short-term position based on the firm order book. The Board is
recommending a final dividend of 3.7p (2001: 3.4p). This makes a total dividend
of 6.0p (2001: 5.5p), representing an increase of 9% over the previous year.
Nick Prest
Chairman and Chief Executive
GROUP PROFIT AND LOSS ACCOUNT
Year ended 31 December 2002
Year ended Year ended
31 December 31 December
2002 2001
Notes #'000 #'000
Turnover 1
Ongoing operations, including joint ventures 216,762 158,787
Share of turnover of ongoing joint ventures (7,798) (9,372)
208,964 149,415
Acquired operations 16,750 -
Continuing operations 225,714 149,415
Trading profit/(loss) 1
Ongoing operations 14,748 5,859
Acquired operations (351) -
14,397 5,859
Operating exceptional items 2
Ongoing operations (1,498) -
Acquired operations (550) -
(2,048) -
Operating profit/(loss)
Ongoing operations 13,250 5,859
Acquired operations (901) -
12,349 5,859
Share of results of:
Continuing joint venture undertakings 15 16
Discontinued associated undertakings - 317
Group operating profit 12,364 6,192
Non-operating exceptional items 3
Continuing operations 71 251
Discontinued operations - 16,101
Profit on ordinary activities before interest 12,435 22,544
Net interest receivable 2,108 5,628
Profit on ordinary activities before taxation 14,543 28,172
Taxation 4 (4,515) (7,188)
Profit on ordinary activities after taxation 10,028 20,984
Minority interests 42 -
Profit attributable to shareholders 10,070 20,984
Dividends, including non-equity shares 5 (6,809) (7,689)
Transfer to reserves 3,261 13,295
Basic earnings per ordinary share before
all exceptional items 6 10.4p 6.3p
Basic earnings per ordinary share 6 9.1p 18.2p
Diluted earnings per ordinary share 6 8.6p 17.4p
Diluted earnings per ordinary share before
all exceptional items 6 9.9p 6.0p
GROUP BALANCE SHEET
At 31 December 2002
31 December 31 December
2002 2001
Notes #'000 #'000
Fixed assets
Intangible assets 7 255 -
Tangible assets 49,266 35,176
Investments 8
Interest in assets of joint ventures 3,093 784
Interest in liabilities of joint ventures (3,018) (718)
75 66
Investment in associates 30 286
Other investments 5,533 5,406
Total investments 5,638 5,758
55,159 40,934
Current assets
Stocks 38,148 31,004
Debtors due within one year 59,622 27,159
Debtors due after one year 5,734 8,175
Cash at bank and in hand 88,336 156,902
191,840 223,240
Creditors due within one year (137,377) (84,653)
Net current assets 54,463 138,587
Total assets less current liabilities 109,622 179,521
Creditors due after one year (38,063) (90,225)
Provisions for liabilities and charges (32,918) (25,576)
Minority (3) -
Net assets employed 38,638 63,720
Capital and reserves
Equity share capital 27,265 27,140
Non-equity share capital - 31,462
Called up share capital 27,265 58,602
Share premium account 1,164 694
Capital redemption reserve 37,014 5,552
Profit and loss account (26,805) (1,128)
Shareholders' funds 38,638 63,720
GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Year ended 31 December 2002
Year ended Year ended
31 December 31 December
2002 2001
#'000 #'000
Profit attributed to shareholders, excluding share
of profits of joint ventures and associates 10,066 20,733
Share of joint ventures profit for the year 4 35
Share of associates profit for the year - 216
Profit attributable to shareholders 10,070 20,984
Other recognised gains and losses relating to the
year (exchange) 2,524 (1,331)
Total recognised gains and losses relating
to the year 12,594 19,653
GROUP RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
Year ended 31 December 2002
Year ended Year ended
31 December 31 December
2002 2001
#'000 #'000
Profit attributable to shareholders 10,070 20,984
Dividends (6,809) (7,689)
3,261 13,295
Purchase and cancellation of Convertible Cumulative
Non-Voting Redeemable Preference shares - (5,479)
Redemption of Convertible Cumulative
Non-Voting Redeemable Preference shares (31,462) -
Issue of new shares 595 105
Other recognised gains and losses relating to the
year (exchange) 2,524 (1,331)
Write-back of previously written off goodwill, charged
to profit and loss account on disposal of
shares in Avimo Group Limited - 2,930
Net (decrease)/increase in shareholders' funds (25,082) 9,520
Shareholders' funds at beginning of the year 63,720 54,200
Shareholders' funds at end of the year 38,638 63,720
Shareholders' funds at 31 December 2002 are all in respect of equity interests.
Included in shareholders' funds at 31 December 2001 is an amount of #31,462,000
relating to non-equity interests.
GROUP CASH FLOW STATEMENT
Year ended 31 December 2002
Year ended Year ended
31 December 31 December
2002 2001
Notes #'000 #'000
Net cash (outflow)/inflow from operating activities 9 (16,076) 87,196
Returns on investments and servicing of finance 1,775 3,162
Taxation paid (5,982) (2,513)
Capital expenditure and financial investment (5,527) (3,946)
Acquisitions and disposals 10 (18,955) 25,598
Dividends paid on ordinary shares (5,941) (5,446)
Management of liquid resources 77,817 (104,728)
Net cash flow before financing 27,111 (677)
Financing 11 (25,594) (20,682)
Increase/(decrease) in cash in the year 1,517 (21,359)
Reconciliation of net cash flow to movement in net funds
Increase/(decrease) in cash in the year 1,517 (21,359)
Add back/(deduct):
(Drawdown)/repayment of debt and lease financing (5,274) 15,308
Cash (taken off)/placed onto short term deposits (77,817) 104,728
Change in net funds resulting from cash flows (81,574) 98,677
Exchange differences 5,258 (3,598)
Net funds at beginning of the year 141,651 46,572
Net funds at end of the year 65,335 141,651
At 31 Dec. At 31 Dec.
Analysis of changes in net funds 2001 Cash flow Exchange 2002
#'000 #'000 #'000 #'000
Cash at bank and in hand 21,064 2,541 1,349 24,954
Overdrafts - (1,024) (334) (1,358)
21,064 1,517 1,015 23,596
Time deposits 135,838 (77,817) 5,361 63,382
Loans (15,000) (5,383) (1,099) (21,482)
Finance leases (251) 109 (19) (161)
Net funds 141,651 (81,574) 5,258 65,335
NOTES TO THE ACCOUNTS
Year ended 31 December 2002
1 Turnover, trading profit and net operating assets by origin and activity
Year ended Year ended At Year ended Year ended At
31 December 31 December 31 December 31 December 31 December 31 December
2002 2002 2002 2001 2001 2001
Turnover Trading profit Net assets Turnover Trading profit Net assets
#'000 #'000 #'000 #'000 #'000 #'000
Ongoing operations:
UK 97,246 5,346 (5,895) 69,628 2,236 3,587
Scandinavia 111,718 11,153 34,973 79,787 5,777 28,239
208,964 16,499 29,078 149,415 8,013 31,826
Acquired
operations:
UK 10,183 (426) (6,792) - - -
South Africa 6,567 75 8,529 - - -
16,750 (351) 1,737 - - -
Continuing 225,714 16,148 30,815 149,415 8,013 31,826
operations
Unallocated - (1,751) 7,718 - (2,154) 31,542
7,798 75 9,372 66
Continuing joint
ventures
Continuing 30 286
associates
233,512 14,397 38,638 158,787 5,859 63,720
All operations are in respect of specialist vehicles. Unallocated costs comprise
head office costs and consolidation adjustments. Unallocated net assets comprise
non-operating and interest bearing assets and liabilities which include the
Group's cash, advance receipts and loans.
2. Operating exceptional items
The charge in the period is in respect of reorganisation costs at
Alvis Vickers following the acquisition of Vickers Defence on 30 September
2002. This charge was all in respect of continuing operations.
3. Non-operating exceptional items
Year ended Year ended
31 December 31 December
2002 2001
#'000 #'000
Continuing operations:
Profits on the disposal of fixed assets 71 251
71 251
Discontinued operations:
Profit on disposal of the businesses of Alvis Logistics - 44
Profit on the disposal of shareholding in - 16,057
Avimo Group Limited
- 16,101
71 16,352
4. Taxation
Year ended Year ended
31 December 31 December
2002 2001
#'000 #'000
UK corporation tax 2,233 3,831
UK deferred taxation (1,232) 1,309
Overseas corporation tax 2,856 1,530
Overseas deferred taxation 643 447
Share of joint ventures' tax 15 -
Share of associates' tax - 71
4,515 7,188
The tax credit on operating exceptional items was #614,000 for the year ended 31
December 2002 (year ended 31 December 2001: #nil).
The tax charge on non-operating exceptional items for the year ended 31 December
2002 was #22,000 (year ended 31 December 2001: #3,924,000).
5. Dividends
Year ended Year ended
31 December 31 December
2002 2001
#000 #000
Ordinary shares
Interim: 2.3p per share (2001: 2.1p) 2,399 2,187
Proposed final: 3.7p per share (2001: 3.4p) 3,873 3,544
Total: 6.0p per share (2001: 5.5p) 6,272 5,731
Preference shares
Convertible preference dividend paid and accrued 537 1,958
6,809 7,689
The proposed final dividend of 3.7 pence per ordinary share is to be paid on 28
April 2003 to shareholders on the register at close of business on 21 March
2003.
6. Earnings per ordinary share
Weighted average number of Earnings per share
Profit for the year shares
Year ended Year ended Year ended Year ended Year ended Year ended
31 December 31 December 31 December 31 December 31 December 31 December
2002 2001 2002 2001 2002 2001
#'000 #'000 No. No. Pence Pence
Basic earnings per share
before all exceptional
items 10,918 6,598 104,212,752 104,499,015 10.4 6.3
Operating exceptional
items (2,048) -
Tax on operating
exceptional items 614 -
Non-operating exceptional
items 71 16,352
Tax on non-operating (22) (3,924)
exceptional items
Basic earnings per
share 9,533 19,026 104,212,752 104,499,015 9.1 18.2
Effect of dilutive
securities:
Employee share option 1,459,045 805,961
schemes
Alvis Employee Benefit 4,444,463 4,032,230
Trust
Diluted earnings per
share 9,533 19,026 110,116,260 109,337,206 8.6 17.4
Operating exceptional 2,048 -
items
Tax on operating (614) -
exceptional items
Non-operating exceptional (71) (16,352)
items
Tax on non-operating 22 3,924
exceptional items
Diluted earnings per share
before non-operating
exceptional items 10,918 6,598 110,116,260 109,337,206 9.9 6.0
The calculation of the basic earnings per share is based upon profit
attributable to shareholders of #10,070,000 (2001: #20,984,000) less convertible
preference dividends of #537,000 (2001: #1,958,000).
The earnings per ordinary share before all exceptional items have been
calculated in addition to the earnings per ordinary share required by Financial
Reporting Standard 14 as, in the opinion of the Directors, this will allow
shareholders to consider the results of the Group on a comparable basis. In
calculating the basic earnings per ordinary share, the weighted average number
of shares in issue excludes the shares held by the Alvis Employee Benefit Trust
at 31 December 2002 of 4,444,463 (2001: 4,407,230). The convertible preference
shares were non-dilutive for the year ended 31 December 2001.
7. Intangible fixed assets
Net goodwill created on the acquisition of the Vickers Defence businesses was
#257,000. This is to be amortised over a period of 20 years. The charge in 2002
in respect of goodwill amortisation and included within the trading profit is
#2,000.
8. Fixed asset investments
Included in other investments is #5,533,000 in respect of own shares purchased
by the Alvis Employee Benefit Trust. These are held for the continuing benefit
of the Company through the reward of its employees. The shares have yet to vest
unconditionally with the employees and as such have been recognised as a fixed
asset of the Company. The market value of the shares in Alvis plc held by the
Alvis Employee Benefit Trust at 31 December 2002 was #6,822,251 (31 December
2001: #5,509,038).
9. Reconciliation of operating profit to net cash (outflow)/inflow from
operating activities
Year ended Year ended
31 December 31 December
2002 2001
#'000 #'000
Operating profit 12,349 5,859
Depreciation and amortisation 5,557 4,681
Decrease in stocks 3,948 1,412
Decrease/(increase) in debtors 4,984 (2,580)
Increase/(decrease) in creditors 6,760 (4,513)
(Decrease)/increase in customer advances (51,927) 81,461
Increase in provisions for liabilities and charges 2,253 876
Net cash (outflow)/inflow from operating activities (16,076) 87,196
10. Acquisition of Vickers Defence
The Group acquired Vickers Defence on 30 September 2002 from Vickers Engineering
plc, a wholly owned subsidiary of Rolls-Royce plc. Vickers Defence comprised the
businesses of Vickers Defence Systems, Vickers Bridging and a 75% interest in
Vickers OMC.
Acquisition Fair Value Fair Value
Balance Sheet Adjustments Balance Sheet
#'000 #'000 #'000
Net assets acquired:
Intangible assets 775 (775) -
Tangible fixed assets 11,643 (65) 11,578
Other net current assets 10,225 238 10,463
Net overdrafts (1,252) - (1,252)
Deferred tax 465 (871) (406)
Other provisions for liabilities and charges (2,061) - (2,061)
19,795 (1,473) 18,322
Consideration
Initial consideration paid 16,026
Deferred consideration 432
Costs 2,121
18,579
Goodwill 257
Of the above costs, #2.0m were settled in cash at 31 December 2002. The exchange
rate on acquisition in respect of the net assets of and consideration for Alvis
South Africa (Pty) Limited (formerly Vickers OMC) included within the above
table was ZAR 16.58: #1.
The goodwill on this transaction is based upon estimated working capital levels
whilst finalisation of completion issues remains outstanding with the vendor.
The fair values and consequently goodwill will be finalised during the year
ended 31 December 2003.
11. Financing
The net cash outflow from financing in the year ended 31 December 2002 included
#31,462,000 in respect of the redemption of the Convertible Cumulative
Non-Voting Redeemable Preference shares.
12. General
The financial statements have been prepared in accordance with the accounting
policies set out in the statutory accounts for the period ended 31 December 2001
and after adopting new accounting standards which came into effect during the
period ended 31 December 2002.
The financial information does not constitute statutory accounts as defined by
section 240 of the Companies Act 1985. It is an extract from the 2002 statutory
accounts approved by a duly constituted committee of the Board of Directors on
12 March 2003, but which have not yet been delivered to the Registrar of
Companies. The report of the auditors on those accounts was unqualified.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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