TIDMFPT
RNS Number : 0707Y
Forth Ports PLC
27 August 2009
27th August 2009
RESULTS FOR THE HALF YEAR ENDED 30TH JUNE 2009
Reported results
* Group revenue down 4% to GBP86.6m (2008: GBP90.1m)
* Group operating profit down 14% to GBP19m (2008: GBP22m)
* Port operating profit down 15% to GBP19.1m (2008: GBP22.4m)
* Profit before tax up 38% to GBP12.4m (2008: GBP9.0m)
* Basic earnings per share up 80% to 18.7p (2008: 10.4p)
* Interim dividend of 9.5p per share in line with change announced in March (2008:
16.6p)
Underlying results (1)
* Underlying profit before tax down 10% to GBP14.8m (2008: GBP16.5m)
* Underlying earnings per share down 11% at 24.6p (2008: 27.5p)
Operational Highlights
Ports
* Resilient performance with strong cash generation - trading results for Tilbury
and Scottish ports in line with last year
*
* Tilbury - strong growth in ro-ro traffic, grain tonnages up by over 60%
* Scotland - strong performance at the Port of Leith and tight control of
operating costs
* Signs of improvement at Tilbury Container Services and Nordic after a difficult
first half
Property
* Positioning the business for market recovery: strong asset management, control
of costs, pursuing planning consents and public funding for infrastructure
* Signed three new tenants at Ocean Terminal including a 6,000 sq.ft. Superdry
store
* Further reduction in value of Ocean Terminal reflecting yield movement
Forth Energy
* Plans revealed to site four 100MW biomass plants within our Scottish ports
* Significant value opportunity for Group
________________________________
(1) See Note 18 of the Interim Statement
Charles Hammond, Group Chief Executive, said:
"The resilience of our results shows the benefit of the significant breadth of
our business which is underpinned by quality contracts, fundamental requirements
and tonnage-related volume guarantees. We expect the ports performance in the
second half to be robust. In property, we will continue to minimise expenditure
whilst creating a growth platform to allow us to crystallise value when
conditions improve. With secure revenue flows, new business initiatives and a
strong asset base, we are well placed to take advantage of any upturn in the
economy."
Enquiries:
+------------------------------------+--------------------+----------------------------+
| Charles Hammond, Group Chief | Forth Ports PLC | Tel: 0207 404 5959 on |
| Executive | | 27.8.09 |
+------------------------------------+--------------------+----------------------------+
| Wilson Murray, Group Finance | | Thereafter 0131 555 8700 |
| Director | | |
+------------------------------------+--------------------+----------------------------+
| | | |
+------------------------------------+--------------------+----------------------------+
| Jon Coles/Kate Miller | Brunswick | Tel: 0207 404 5959 |
+------------------------------------+--------------------+----------------------------+
Notes to Editors:
Forth Ports PLC owns and operates seven commercial ports in the UK - Tilbury on
the Thames, Dundee in the Firth of Tay and five in the Firth of Forth - Leith,
Grangemouth, Rosyth, Methil and Burntisland. We also operate out of Chatham in
Kent under the Nordic banner.
Within and around the Firths of Forth and Tay, Forth Ports manages and operates
an area of 280 square miles of navigable waters, including two specialised
marine terminals for oil and gas export and provides other marine services, such
as towage and conservancy.
The Group also has significant property interests which it continues to develop
as part of its commitment to increase shareholder value.
CHAIRMAN AND GROUP CHIEF EXECUTIVE'S REPORT
The Group's first half financial performance has been robust in the face of a
difficult economic climate. Our broad spread of port activities, secure
contracts and tight control of costs have allowed our own port business to trade
in line with 2008. The weaker economic situation, however, has impacted
our Nordic Recycling business and our associated company Tilbury Container
Services ("TCS") resulting in the overall lower financial performance compared
with 2008. Group revenue amounted to GBP86.6m (2008 - GBP90.1m). Group
operating profit amounted to GBP19m compared with GBP22m in 2008.
In March, our joint venture company, Ocean Terminal Limited, completed a
refinancing which involved converting shareholder loans into equity together
with an injection of a further GBP5m of new loans from the Group. Rental income
at Ocean Terminal remains good and new lettings have been concluded. As a result
of a continuing softening in commercial property yields, the Group's share of
the value of Ocean Terminal was reduced by GBP4.4m (2008 - a reduction of
GBP7.5m) at 30th June 2009 although only GBP2.4m of this reduction has been
included in the Accounts (see Note 9).
Basic earnings per share amounted to 18.7p (2008 - 10.4p) with underlying
earnings per share down 11% at 24.6p (2008 - 27.5p).
Cash generation remained strong and our net debt position at 30th June was
GBP197.3m, a reduction of GBP10.7m since 31st December 2008.
The Board has approved an interim dividend of 9.5p per share (2008 - 16.6p)
which is consistent with the rebasing of the full year dividend announced in
March. The full year dividend for 2008 was 28.6p. The interim dividend will be
paid on 6th November 2009 to shareholders on the register at 9th October 2009.
Review of Ports Business
The trading result for Tilbury and Scotland for the first half of the year was
in line with the equivalent period in 2008. As highlighted previously, the
performance at Nordic and TCS was significantly below last year. As a result,
revenue reduced from GBP89.4m to GBP85.8m in the first half of the year.
Underlying port operating profit amounted to GBP19.5m compared with GBP22.7m
last year. Increased costs in wages and utilities were more than offset by
operating efficiencies and other cost savings.
Total tonnage fell marginally to 24.2 million tonnes. Within this figure, liquid
bulks increased by 2% to 17.6 million tonnes (2008 - 17.3 million tonnes). Dry
cargo tonnage fell by 6% to 6.6 million tonnes.
Tilbury
Tilbury's financial performance contributed strongly to the overall ports
performance in the first half of 2009. Despite an overall decline in volumes of
5% to 3.9 million tonnes, the mix of cargo benefited the financial performance
with strong growth in ro-ro traffic offsetting the fall in forest products
traffic. Grain tonnages were up by over 60% with both imports and exports doing
well.Volumes through the Enterprise Distribution Centre increased by 6%. Tight
control of costs was maintained and reductions more than offset the increase in
utility costs where the like for like increases were nearly 100%. The Short Sea
Container Terminal saw throughput reduced by 23% with a volume of 58,600 boxes;
two new services were introduced in 2009.
The volume of Hyundai cars imported through Tilbury continues to increase and
customer enquiries for facilities remain active despite the economic climate.
Work has now been completed on the new Cemex grinding and blending facility and
Tilbury is benefiting from enhanced revenues under a new long-term contract.
Tilbury is working closely with the London Organising Committee for the Olympic
Games to deliver a waterborne supply chain for many of the goods and materials
to be stored and then distributed to the Olympic sites.
As expected, TCS saw an overall reduction in its volumes of 21% with a
throughput of 140,900 boxes (2008 - 179,300 boxes). Nevertheless the trend in
the financial position has improved since March.
Last year we acquired 65 acres of land outside the port for future port use. We
have been closely involved in discussions with Thurrock Council and Thurrock
Thames Gateway Development Corporation as part of the review of the proposed
South East Thurrock Masterplan. We are confident that the proposals being put
forward will recommend rezoning the land for port use which would give a
significant economic boost to the area.
We have progressed discussions on our proposals to provide "green power" through
four wind turbines on land within the port. We expect a conclusion of these
discussions in the second half of the year.
We are also in advanced discussions with Tilbury Green Power Limited
("TGP") which has submitted a planning application to build a 60 megawatt
biomass multifuel facility on our land. TGP is confident that planning approval
will be granted shortly for this project.
Nordic
The first six months of 2009 have been difficult for Nordic. There has been a
significant decrease in the consumption and supply of recyclable materials and
recovered paper. Commodity prices remained very low in the first three months
of this year but the trend in the succeeding three month period has been
positive.This improvement has continued into the second half and machinery
changes have been made to the Materials Recycling Facility at Tilbury which will
improve its efficiency and separation capability.
A new Managing Director, Peter Hathaway, joined the Nordic Group on 1st June
2009. He has extensive experience in the waste industry.
Scottish Ports
Overall, activity levels at our Scottish ports were lower than the equivalent
period in 2008, mainly due to reduced demand for construction materials
particularly through Rosyth and Grangemouth. Container volumes at Grangemouth
were down 5% although this was offset by a strong first half at the Port of
Leith and tight control of operating costs.The total throughput amounted to 5.5
million tonnes (2008 - 6 million tonnes). Within the total figure, liquid bulks
at Grangemouth fell by 0.4 million tonnes and dry cargo was marginally lower at
2.4 million tonnes (2008 - 2.5 million tonnes).
Grangemouth
The total throughput at Grangemouth amounted to 4.1 million tonnes (2008 - 4.5
million tonnes). Container volumes amounted to 71,000 boxes. Timber and paper
and pulp tonnages fell by more than 50% to 52,000 tonnes. Although liquid bulks
tonnages also fell in the first half, LPG volumes increased by 36%.
Leith
Leith's performance showed an improvement over the equivalent period in
2008. Volumes remained steady at 0.9 million tonnes of which 0.6 million tonnes
related to coal traffic for both Scottish Power and Scottish Coal. There was a
significant increase in steel pipes and iron ore traffic for Bredero Shaw where
the volume reached 0.2 million tonnes. As expected, aggregates and cement
tonnages were lower.Bredero Shaw will be bidding for several new contracts which
should see volumes increase by the end of 2009 and into 2010. Scottish Coal has
successfully completed trial shipments of coal for blending and subsequent
distribution; these shipments should continue this year and next.
Dundee
Dundee's overall performance remained steady with a tonnage of 0.4
million tonnes, a reduction of 0.1 million tonnes on the equivalent period in
2008 principally due to a reduction in liquid bulks. Timber and agripods were
also down on last year but North Sea oil revenue saw a good increase.
Rosyth and Fife Ports
Volumes at these ports were lower due to the fall in construction materials at
Rosyth. The new Norfolkline Ferry Service between Rosyth and Zeebrugge
commenced operation in late May 2009 and early traffic levels on the service
have been encouraging. Oceaneering Multiflex UK extended its presence in Rosyth
and have taken on an additional leased area within the port. We are pursuing
enquiries in relation to vacant facilities at the port.
Marine
The throughput at Hound Point amounted to 13.1 million tonnes, up 8% on the
first half of last year. The throughput at Braefoot Bay fell by 0.3 million
tonnes to 1.4 million tonnes. Overall, the performance of our Marine business
was steady.
Property
Our approach is to create a growth platform through strong asset management,
control of costs, securing viable planning consents and pursuing public funding
for infrastructure. This will position the business for a market recovery and
allow us to crystallise value when conditions improve.
The property team has reviewed the infrastructure spend requirements on the
various developments to reduce the cash outflow consistent with obtaining
planning consent for The Harbour, Leith Docks. The Harbour Outline Planning
Application and Masterplan was submitted to City of Edinburgh Council ("CEC") in
December 2008 and we have been working with the planning officials to address
the matters raised. We hope that this planning application will be formally
considered by the Planning Committee in the second half of this year. CEC are in
discussions with the Scottish Government and others on a plan for public funding
of infrastructure within the city. Various projects on the Waterfront have been
identified as part of this review including proposals for a boardwalk beside
Ocean Terminal, a new lock entrance for leisure craft and ferries alongside the
existing lock entrance and a new east-west link road. We welcome these
proposals.
Ocean Terminal Limited has signed up Superdry for a large 6,000 sq.ft. new store
which will open in September 2009. We have also signed up two other tenants and
are in discussions with several others as we are able to offer competitive terms
in comparison to other locations within Edinburgh.
At the half year, we discussed the valuation of Ocean Terminal with Drivers
Jonas, our independent valuers. Although no formal valuation has been produced,
the Directors are of the view that in the six months since 31st December 2008,
yields on shopping centres have eased further, and so have reduced the value of
Ocean Terminal to GBP81.75m. This decrease in value is reflected in the Income
Statement by a reduction of GBP2.4m (see Note 9). As part of the refinancing
which was concluded in March of this year, the date of the first test of the
Loan to Value covenant on Ocean Terminal is by reference to the valuation at
31st March 2010. Cash generation and cash flow cover remain good.
We have also had discussions with Debenham Tie Leung on their view of the
property market generally. As a result of those discussions, the Directors have
concluded that there is no need to make any further provisions against the
carrying value of the property inventory costs at 30th June 2009.
Following a review of costs, we have reduced the resource level within property.
Energy
As part of our strategic joint venture with Scottish and Southern Energy plc, we
have identified opportunities to site four 100MW biomass plants within our
Scottish ports and we are assembling the necessary information to support
appropriate planning applications. We believe that achieving planning consents
for these plants could add significant value to the Group, including adding
revenue and earnings to our ports business. The plants could also make a major
contribution to Scotland's renewable energy needs. We have also erected
monitoring equipment at Grangemouth and Dundee to obtain wind data to determine
the suitability of these sites for further onshore wind installations.
Finance
With the signing of the new lease with Oceaneering Multiflex UK, the underlying
assets covered by the lease were transferred from operational land and buildings
to investment property producing an uplift in value of GBP2.4m which was put
through the Consolidated Statement of Comprehensive Income.
The Directors, having received advice from Bidwells LLP on the fair value of the
Group's investment property, do not believe that there has been a material
change in the overall fair value of the investment property between 31st
December 2008 and 30th June 2009. The properties within this category are nearly
all held for the long-term and are an integral part of the ports business. A
more detailed review will be carried out at the end of the year.
Net debt at the half year amounted to GBP197.3m compared with GBP208m at 31st
December 2008. The level of gearing at 30th June 2009 amounted to 91% (31st
December 2008 - 90%). After adjusting for the increase in pension scheme
liabilities, the like for like gearing level at 30th June 2009 was 84%.
The Directors have reviewed the financial covenants and concluded that the
headroom was comfortable at the half year. The effective corporation tax rate
for the half year was 28.6%.
The actuarial deficit in the Pension Scheme at the half year under IAS 19
(Employee Benefits) amounted to GBP29.1m compared with GBP5.1m at 31st December
2008 and GBP24.9m at 30th June 2008. The increase in the deficit reflects the
change in the liability assumptions on discount rate (reduced from 6.4% at
December 2008 to 6.2% at 30th June 2009), an increase in assumed price inflation
from 2.75% to 3.2% and an increase in assumed salary growth from 4% to 4.45%.
With effect from 1st May 2009, the active members of the Forth Ports Group
Pension Scheme ("the Scheme") agreed to increase their contribution rate by 2%.
The full year effect of this measure will be to reduce the Company's annual
special contribution to the Scheme from GBP3.3m to GBP2.7m.
Cash flow generated from operations amounted to GBP25.1m (2008 - GBP32.1m).
Capital expenditure spend in the first half of 2009 amounted to GBP4.3m compared
with GBP14.6m in 2008. Property infrastructure spend in the same period was
GBP0.7m (2008 - GBP2.5m).
Prospects
The results for the first half of the year are in line with our expectations.
They show the benefit of the significant breadth of our business which is
underpinned either by quality contracts, fundamental requirement (base
commodities of grain, coal, animal feeds, containers and liquid bulks) or by
tonnage-related volume guarantees (paper, coal, liquid bulks and forest
products). We expect the ports performance in the second half to be robust; the
trading performance of this business has traditionally been weighted towards the
second half of the year. The monthly trend in the Nordic and TCS businesses is
expected to improve in the second half but will fall short of the equivalent
full year's figures for last year. Although the economic climate is still
challenging, we are pursuing a number of enquiries in the ports business which
should increase secure revenue streams. Our property business will continue to
minimise its expenditure for the rest of this year. In energy, we hope to
conclude negotiations with an energy supplier by the end of this year to build
and operate the four wind turbines at Tilbury. We also hope to make good
progress through our strategic joint venture with the planning applications for
the biomass plants in Scotland.
With secure revenue flows, business initiatives and a strong asset base, the
Group is well placed to take advantage of any upturn in the economy.Overall, we
remain optimistic that the Group will produce a satisfactory performance this
year.
+------------------------------------------------------------------------+-------------------------------------+
| Christopher Collins | Charles Hammond |
+------------------------------------------------------------------------+-------------------------------------+
| CHAIRMAN | GROUP CHIEF EXECUTIVE |
+------------------------------------------------------------------------+-------------------------------------+
27th August 2009
CONDENSED CONSOLIDATED INCOME STATEMENT
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| | | Before | Exceptional | Unaudited | Before | Exceptional | Unaudited | Audited |
| | | Exceptional | Items and | six | Exceptional | | six | year |
| | | Items and | Revaluations | months to | Items and | Items and | months | to |
| | | Revaluations | | 30.6.09 | Revaluations | Revaluations | to | 31.12.08 |
| | | | | Total | | | 30.6.08 | |
| | | | | | | | Total | |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| | Notes | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| | | | | | | | | |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| Group revenue | 5,9 | 86.6 | - | 86.6 | 90.1 | - | 90.1 | 185.9 |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| Cost of sales | 9 | (55.3) | - | (55.3) | (56.1) | - | (56.1) | (144.3) |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| | | | | | | | | |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| Gross profit | | 31.3 | - | 31.3 | 34.0 | - | 34.0 | 41.6 |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| Administrative | | (12.3) | - | (12.3) | (12.0) | - | (12.0) | (24.1) |
| expenses | | | | | | | | |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| Other expenses | 9 | - | - | - | - | - | - | (16.4) |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| | | | | | | | | |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| Group operating profit | 5 | 19.0 | - | 19.0 | 22.0 | - | 22.0 | 1.1 |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| Finance income | 5,6 | 0.5 | - | 0.5 | 1.0 | - | 1.0 | 2.2 |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| Finance costs | 5,6 | (5.8) | - | (5.8) | (7.3) | - | (7.3) | (14.1) |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| Share of post-tax | 5,7,9 | 0.6 | (2.4) | (1.8) | (0.8) | (7.5) | (8.3) | (21.4) |
| results of | | | | | | | | |
| joint ventures | | | | | | | | |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| Share of post-tax | 5,8,9 | 0.5 | - | 0.5 | 1.6 | - | 1.6 | 1.5 |
| results of associate | | | | | | | | |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| | | | | | | | | |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| Profit/(loss) before | | 14.8 | (2.4) | 12.4 | 16.5 | (7.5) | 9.0 | (30.7) |
| tax | | | | | | | | |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| Taxation | 9,10 | (3.9) | - | (3.9) | (4.4) | - | (4.4) | (20.5) |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| | | | | | | | | |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| Profit/(loss) for the | | 10.9 | (2.4) | 8.5 | 12.1 | (7.5) | 4.6 | (51.2) |
| period | | | | | | | | |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| | | | | | | | | |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| Loss attributable to | | (0.0) | - | (0.0) | (0.1) | - | (0.1) | (2.2) |
| minority interest | | | | | | | | |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| Profit/(loss) | | 10.9 | (2.4) | 8.5 | 12.2 | (7.5) | 4.7 | (49.0) |
| attributable to equity | | | | | | | | |
| shareholders | | | | | | | | |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| | | | | | | | | |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| | | 10.9 | (2.4) | 8.5 | 12.1 | (7.5) | 4.6 | (51.2) |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| | | | | | | | | |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| Earnings per share | | | | | | | | |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| Basic earnings/(loss) | 11 | | | 18.7p | | | 10.4p | (107.8p) |
| per share | | | | | | | | |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| Diluted | 11 | | | 18.5p | | | 10.3p | (107.8p) |
| earnings/(loss) per | | | | | | | | |
| share | | | | | | | | |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
| | | | | | | | | |
+------------------------+-------+--------------+--------------+-----------+--------------+--------------+-----------+----------+
Details of dividends are shown in Note 15.
All results relate to continuing activities.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
+------------------------------------------------+-----------+-----------+------------+
| | Unaudited | Unaudited | Audited |
| | six | six | year |
| | months | months | to |
| | to | to | 31.12.08 |
| | 30.6.09 | 30.6.08 | |
+------------------------------------------------+-----------+-----------+------------+
| | GBPm | GBPm | GBPm |
+------------------------------------------------+-----------+-----------+------------+
| | | | |
+------------------------------------------------+-----------+-----------+------------+
| Share of joint venture's movement on cash flow | 1.0 | 0.2 | (4.1) |
| hedge | | | |
+------------------------------------------------+-----------+-----------+------------+
| Share of associate's movement on cash flow | 0.0 | 0.0 | (0.1) |
| hedge | | | |
+------------------------------------------------+-----------+-----------+------------+
| Corporation tax on excess pension | 0.2 | 0.4 | 1.8 |
| contributions | | | |
+------------------------------------------------+-----------+-----------+------------+
| Deferred tax on excess pension contributions | (0.2) | (0.4) | (1.8) |
+------------------------------------------------+-----------+-----------+------------+
| Actuarial loss in defined benefit pension | (24.7) | (26.0) | (10.9) |
| scheme | | | |
+------------------------------------------------+-----------+-----------+------------+
| Deferred tax on actuarial loss | 6.9 | 7.3 | 3.1 |
+------------------------------------------------+-----------+-----------+------------+
| Interest rate hedge | (1.3) | - | - |
+------------------------------------------------+-----------+-----------+------------+
| Revaluation of investment property transferred | 2.4 | 24.5 | 24.9 |
| from operational land and buildings | | | |
+------------------------------------------------+-----------+-----------+------------+
| Deferred tax on revaluation | (0.6) | (6.9) | (6.9) |
+------------------------------------------------+-----------+-----------+------------+
| Share of associate's actuarial gain/(loss) in | 0.0 | (0.0) | (0.1) |
| defined benefit pension scheme | | | |
+------------------------------------------------+-----------+-----------+------------+
| Deferred tax on associate's actuarial | (0.0) | 0.0 | 0.0 |
| gain/(loss) | | | |
+------------------------------------------------+-----------+-----------+------------+
| | | | |
+------------------------------------------------+-----------+-----------+------------+
| (Expense)/income recognised directly in equity | (16.3) | (0.9) | 5.9 |
+------------------------------------------------+-----------+-----------+------------+
| Profit/(loss) for the period | 8.5 | 4.6 | (51.2) |
+------------------------------------------------+-----------+-----------+------------+
| | | | |
+------------------------------------------------+-----------+-----------+------------+
| Total comprehensive (expense)/income for the | (7.8) | 3.7 | (45.3) |
| period | | | |
+------------------------------------------------+-----------+-----------+------------+
| | | | |
+------------------------------------------------+-----------+-----------+------------+
| Attributable to: | | | |
+------------------------------------------------+-----------+-----------+------------+
| Minority interest | (0.0) | (0.1) | (2.2) |
+------------------------------------------------+-----------+-----------+------------+
| Equity shareholders | (7.8) | 3.8 | (43.1) |
+------------------------------------------------+-----------+-----------+------------+
| | | | |
+------------------------------------------------+-----------+-----------+------------+
| | (7.8) | 3.7 | (45.3) |
+------------------------------------------------+-----------+-----------+------------+
| | | | |
+------------------------------------------------+-----------+-----------+------------+
CONDENSED CONSOLIDATED BALANCE SHEET
+-------------------------------------------------+----------+------------+----------+
| | | Unaudited | Audited |
| | | as at | as at |
| | | 30.6.09 | 31.12.08 |
+-------------------------------------------------+----------+------------+----------+
| | Notes | GBPm | GBPm |
+-------------------------------------------------+----------+------------+----------+
| ASSETS | | | |
+-------------------------------------------------+----------+------------+----------+
| Non-current assets | | | |
+-------------------------------------------------+----------+------------+----------+
| Property, plant and equipment | 12 | 214.5 | 219.3 |
+-------------------------------------------------+----------+------------+----------+
| Investment property | 12 | 208.6 | 205.7 |
+-------------------------------------------------+----------+------------+----------+
| Intangible assets | 12 | 39.6 | 40.3 |
+-------------------------------------------------+----------+------------+----------+
| Investment in associate | | 10.1 | 9.6 |
+-------------------------------------------------+----------+------------+----------+
| Deferred tax assets | | 8.1 | 1.4 |
+-------------------------------------------------+----------+------------+----------+
| | | | |
+-------------------------------------------------+----------+------------+----------+
| | | 480.9 | 476.3 |
+-------------------------------------------------+----------+------------+----------+
| Current assets | | | |
+-------------------------------------------------+----------+------------+----------+
| Inventories | | 28.3 | 27.4 |
+-------------------------------------------------+----------+------------+----------+
| Trade and other receivables | | 37.1 | 35.8 |
+-------------------------------------------------+----------+------------+----------+
| Current tax receivable | | - | 4.5 |
+-------------------------------------------------+----------+------------+----------+
| Cash and cash equivalents | 14 | 6.4 | 4.7 |
+-------------------------------------------------+----------+------------+----------+
| | | | |
+-------------------------------------------------+----------+------------+----------+
| | | 71.8 | 72.4 |
+-------------------------------------------------+----------+------------+----------+
| LIABILITIES | | | |
+-------------------------------------------------+----------+------------+----------+
| Current liabilities | | | |
+-------------------------------------------------+----------+------------+----------+
| Trade and other payables | | (27.9) | (28.9) |
+-------------------------------------------------+----------+------------+----------+
| Current tax liabilities | | (4.7) | - |
+-------------------------------------------------+----------+------------+----------+
| Derivative financial instruments | | (0.5) | - |
+-------------------------------------------------+----------+------------+----------+
| Borrowings | 14 | (0.1) | (0.1) |
+-------------------------------------------------+----------+------------+----------+
| Provisions | | (0.3) | (0.4) |
+-------------------------------------------------+----------+------------+----------+
| | | | |
+-------------------------------------------------+----------+------------+----------+
| | | (33.5) | (29.4) |
+-------------------------------------------------+----------+------------+----------+
| | | | |
+-------------------------------------------------+----------+------------+----------+
| Net current assets | | 38.3 | 43.0 |
+-------------------------------------------------+----------+------------+----------+
| | | | |
+-------------------------------------------------+----------+------------+----------+
| Non-current liabilities | | | |
+-------------------------------------------------+----------+------------+----------+
| Borrowings | 14 | (203.6) | (212.6) |
+-------------------------------------------------+----------+------------+----------+
| Investment in joint ventures | | - | (3.5) |
+-------------------------------------------------+----------+------------+----------+
| Deferred tax liabilities | | (67.8) | (67.6) |
+-------------------------------------------------+----------+------------+----------+
| Retirement benefit obligations | 17 | (29.1) | (5.1) |
+-------------------------------------------------+----------+------------+----------+
| Derivative financial instruments | | (0.8) | - |
+-------------------------------------------------+----------+------------+----------+
| Provisions | | (0.3) | (0.3) |
+-------------------------------------------------+----------+------------+----------+
| | | | |
+-------------------------------------------------+----------+------------+----------+
| | | (301.6) | (289.1) |
+-------------------------------------------------+----------+------------+----------+
| | | | |
+-------------------------------------------------+----------+------------+----------+
| Total assets less total liabilities | | 217.6 | 230.2 |
+-------------------------------------------------+----------+------------+----------+
| | | | |
+-------------------------------------------------+----------+------------+----------+
| SHAREHOLDERS' EQUITY | | | |
+-------------------------------------------------+----------+------------+----------+
| Share capital | | 22.8 | 22.8 |
+-------------------------------------------------+----------+------------+----------+
| Share premium | | 19.2 | 19.2 |
+-------------------------------------------------+----------+------------+----------+
| Own shares held | | (4.9) | (4.9) |
+-------------------------------------------------+----------+------------+----------+
| Fair value and other reserves | | 13.2 | 13.5 |
+-------------------------------------------------+----------+------------+----------+
| Retained earnings | | 167.0 | 179.3 |
+-------------------------------------------------+----------+------------+----------+
| | | | |
+-------------------------------------------------+----------+------------+----------+
| Total shareholders' equity | | 217.3 | 229.9 |
+-------------------------------------------------+----------+------------+----------+
| Minority interest in equity | | 0.3 | 0.3 |
+-------------------------------------------------+----------+------------+----------+
| | | | |
+-------------------------------------------------+----------+------------+----------+
| Total equity | | 217.6 | 230.2 |
+-------------------------------------------------+----------+------------+----------+
| | | | |
+-------------------------------------------------+----------+------------+----------+
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| | Attributable to equity holders of the | Minority | Total |
| | Company | Interest | equity |
+------------------+--------------------------------------------------+-----------+--------+
| | Share | Share | Own | Fair | Retained | | |
| | capital | premium | shares | value | Earnings | | |
| | | | held | and | | | |
| | | | | other | | | |
| | | | | reserves | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Balance | 22.8 | 19.2 | (5.2) | 17.7 | 238.3 | 2.5 | 295.3 |
| at 1st | | | | | | | |
| January | | | | | | | |
| 2008 | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Share | - | - | - | 0.2 | - | - | 0.2 |
| of | | | | | | | |
| joint | | | | | | | |
| venture's | | | | | | | |
| movement | | | | | | | |
| on cash | | | | | | | |
| flow | | | | | | | |
| hedge | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Share | - | - | - | 0.0 | - | - | 0.0 |
| of | | | | | | | |
| associate's | | | | | | | |
| movement on | | | | | | | |
| cash flow | | | | | | | |
| hedge | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Revaluation | - | - | - | - | 24.5 | - | 24.5 |
| of | | | | | | | |
| investment | | | | | | | |
| property | | | | | | | |
| transferred | | | | | | | |
| from | | | | | | | |
| operational | | | | | | | |
| land and | | | | | | | |
| buildings | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Deferred | - | - | - | - | (6.9) | - | (6.9) |
| tax on | | | | | | | |
| revaluation | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Corporation | - | - | - | - | 0.4 | - | 0.4 |
| tax on | | | | | | | |
| excess | | | | | | | |
| pension | | | | | | | |
| contributions | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Deferred | - | - | - | - | (0.4) | - | (0.4) |
| tax on | | | | | | | |
| excess | | | | | | | |
| pension | | | | | | | |
| contributions | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Actuarial | - | - | - | - | (26.0) | - | (26.0) |
| loss on | | | | | | | |
| defined | | | | | | | |
| benefit | | | | | | | |
| pension | | | | | | | |
| scheme | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Deferred | - | - | - | - | 7.3 | - | 7.3 |
| tax on | | | | | | | |
| actuarial | | | | | | | |
| loss | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Share | - | - | - | - | (0.0) | - | (0.0) |
| of | | | | | | | |
| associate's | | | | | | | |
| actuarial | | | | | | | |
| loss on | | | | | | | |
| defined | | | | | | | |
| benefit | | | | | | | |
| pension | | | | | | | |
| scheme | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Deferred | - | - | - | - | 0.0 | - | 0.0 |
| tax on | | | | | | | |
| associate's | | | | | | | |
| actuarial | | | | | | | |
| loss | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Net | - | - | - | 0.2 | (1.1) | - | (0.9) |
| income/(expense) | | | | | | | |
| recognised | | | | | | | |
| directly in | | | | | | | |
| equity | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Profit/(loss) | - | - | - | - | 4.7 | (0.1) | 4.6 |
| for the | | | | | | | |
| period | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Total | - | - | - | 0.2 | 3.6 | (0.1) | 3.7 |
| comprehensive | | | | | | | |
| income/(expense) | | | | | | | |
| for the period | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| LTIP | - | - | - | - | 0.6 | - | 0.6 |
| shares | | | | | | | |
| - | | | | | | | |
| value | | | | | | | |
| of | | | | | | | |
| services | | | | | | | |
| provided | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| SAYE | - | - | - | - | 0.1 | - | 0.1 |
| scheme | | | | | | | |
| - | | | | | | | |
| value | | | | | | | |
| of | | | | | | | |
| services | | | | | | | |
| provided | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Consideration | - | - | 0.3 | - | - | - | 0.3 |
| received for | | | | | | | |
| own shares | | | | | | | |
| held | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Dividends | - | - | - | - | (14.5) | - | (14.5) |
| (less | | | | | | | |
| dividends | | | | | | | |
| received | | | | | | | |
| by ESOP) | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Balance | 22.8 | 19.2 | (4.9) | 17.9 | 228.1 | 2.4 | 285.5 |
| at 30th | | | | | | | |
| June | | | | | | | |
| 2008 | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Share | - | - | - | (4.3) | - | - | (4.3) |
| of | | | | | | | |
| joint | | | | | | | |
| venture's | | | | | | | |
| movement | | | | | | | |
| on cash | | | | | | | |
| flow | | | | | | | |
| hedge | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Share | - | - | - | (0.1) | - | - | (0.1) |
| of | | | | | | | |
| associate's | | | | | | | |
| movement on | | | | | | | |
| cash flow | | | | | | | |
| hedge | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Revaluation | - | - | - | - | 0.4 | - | 0.4 |
| of | | | | | | | |
| investment | | | | | | | |
| property | | | | | | | |
| transferred | | | | | | | |
| from | | | | | | | |
| operational | | | | | | | |
| land and | | | | | | | |
| buildings | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Corporation | - | - | - | - | 1.4 | - | 1.4 |
| tax on | | | | | | | |
| excess | | | | | | | |
| pension | | | | | | | |
| contributions | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Deferred | - | - | - | - | (1.4) | - | (1.4) |
| tax on | | | | | | | |
| excess | | | | | | | |
| pension | | | | | | | |
| contributions | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Actuarial | - | - | - | - | 15.1 | - | 15.1 |
| gain on | | | | | | | |
| defined | | | | | | | |
| benefit | | | | | | | |
| pension | | | | | | | |
| scheme | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Deferred | - | - | - | - | (4.2) | - | (4.2) |
| tax on | | | | | | | |
| actuarial | | | | | | | |
| gain | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Share | - | - | - | - | (0.1) | - | (0.1) |
| of | | | | | | | |
| associate's | | | | | | | |
| actuarial | | | | | | | |
| loss on | | | | | | | |
| defined | | | | | | | |
| benefit | | | | | | | |
| pension | | | | | | | |
| scheme | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Deferred | - | - | - | - | 0.0 | - | 0.0 |
| tax on | | | | | | | |
| associate's | | | | | | | |
| actuarial | | | | | | | |
| loss | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Net | - | - | - | (4.4) | 11.2 | - | 6.8 |
| (expense)/income | | | | | | | |
| recognised | | | | | | | |
| directly in | | | | | | | |
| equity | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Loss | - | - | - | - | (53.7) | (2.1) | (55.8) |
| for | | | | | | | |
| the | | | | | | | |
| period | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Total | - | - | - | (4.4) | (42.5) | (2.1) | (49.0) |
| comprehensive | | | | | | | |
| expense for | | | | | | | |
| the period | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| LTIP | - | - | - | - | 1.1 | - | 1.1 |
| shares | | | | | | | |
| - | | | | | | | |
| value | | | | | | | |
| of | | | | | | | |
| services | | | | | | | |
| provided | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| SAYE | - | - | - | - | 0.1 | - | 0.1 |
| scheme | | | | | | | |
| - | | | | | | | |
| value | | | | | | | |
| of | | | | | | | |
| services | | | | | | | |
| provided | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Consideration | - | - | 0.0 | - | - | - | 0.0 |
| received for | | | | | | | |
| own shares | | | | | | | |
| held | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Dividends | - | - | - | - | (7.5) | - | (7.5) |
| (less | | | | | | | |
| dividends | | | | | | | |
| received | | | | | | | |
| by ESOP) | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Balance | 22.8 | 19.2 | (4.9) | 13.5 | 179.3 | 0.3 | 230.2 |
| at 31st | | | | | | | |
| December | | | | | | | |
| 2008 | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Balance | 22.8 | 19.2 | (4.9) | 13.5 | 179.3 | 0.3 | 230.2 |
| at 1st | | | | | | | |
| January | | | | | | | |
| 2009 | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Share | - | - | - | 1.0 | - | - | 1.0 |
| of | | | | | | | |
| joint | | | | | | | |
| venture's | | | | | | | |
| movement | | | | | | | |
| on cash | | | | | | | |
| flow | | | | | | | |
| hedge | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Share | - | - | - | 0.0 | - | - | 0.0 |
| of | | | | | | | |
| associate's | | | | | | | |
| movement on | | | | | | | |
| cash flow | | | | | | | |
| hedge | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Interest | - | - | - | (1.3) | - | - | (1.3) |
| rate | | | | | | | |
| hedge | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Revaluation | - | - | - | - | 2.4 | - | 2.4 |
| of | | | | | | | |
| investment | | | | | | | |
| property | | | | | | | |
| transferred | | | | | | | |
| from | | | | | | | |
| operational | | | | | | | |
| land and | | | | | | | |
| buildings | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Deferred | - | - | - | - | (0.6) | - | (0.6) |
| tax on | | | | | | | |
| revaluation | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Corporation | - | - | - | - | 0.2 | - | 0.2 |
| tax on | | | | | | | |
| excess | | | | | | | |
| pension | | | | | | | |
| contributions | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Deferred | - | - | - | - | (0.2) | - | (0.2) |
| tax on | | | | | | | |
| excess | | | | | | | |
| pension | | | | | | | |
| contributions | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Actuarial | - | - | - | - | (24.7) | - | (24.7) |
| loss on | | | | | | | |
| defined | | | | | | | |
| benefit | | | | | | | |
| pension | | | | | | | |
| scheme | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Deferred | - | - | - | - | 6.9 | - | 6.9 |
| tax on | | | | | | | |
| actuarial | | | | | | | |
| loss | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Share | - | - | - | - | 0.0 | - | 0.0 |
| of | | | | | | | |
| associate's | | | | | | | |
| actuarial | | | | | | | |
| gain on | | | | | | | |
| defined | | | | | | | |
| benefit | | | | | | | |
| pension | | | | | | | |
| scheme | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Deferred | - | - | - | - | (0.0) | - | (0.0) |
| tax on | | | | | | | |
| associate's | | | | | | | |
| actuarial | | | | | | | |
| gain | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Net | - | - | - | (0.3) | (16.0) | - | (16.3) |
| expense | | | | | | | |
| recognised | | | | | | | |
| directly | | | | | | | |
| in equity | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Profit/(loss) | - | - | - | - | 8.5 | (0.0) | 8.5 |
| for the | | | | | | | |
| period | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Total | - | - | - | (0.3) | (7.5) | (0.0) | (7.8) |
| comprehensive | | | | | | | |
| expense for | | | | | | | |
| the period | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| LTIP | - | - | - | - | 0.5 | - | 0.5 |
| shares | | | | | | | |
| - | | | | | | | |
| value | | | | | | | |
| of | | | | | | | |
| services | | | | | | | |
| provided | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| SAYE | - | - | - | - | 0.1 | - | 0.1 |
| scheme | | | | | | | |
| - | | | | | | | |
| value | | | | | | | |
| of | | | | | | | |
| services | | | | | | | |
| provided | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Consideration | - | - | (0.0) | - | - | - | (0.0) |
| paid for own | | | | | | | |
| shares held | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Dividends | - | - | - | - | (5.4) | - | (5.4) |
| (less | | | | | | | |
| dividends | | | | | | | |
| received | | | | | | | |
| by ESOP) | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| Balance | 22.8 | 19.2 | (4.9) | 13.2 | 167.0 | 0.3 | 217.6 |
| at 30th | | | | | | | |
| June | | | | | | | |
| 2009 | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
| | | | | | | | |
+------------------+---------+---------+--------+----------+----------+-----------+--------+
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
+---------------------------------------+--------+-------------+-------------+------------+
| | | Unaudited | Unaudited | Audited |
| | | six months | six months | year |
| | | to 30.6.09 | to 30.6.08 | to |
| | | | | 31.12.08 |
+---------------------------------------+--------+-------------+-------------+------------+
| | Notes | GBPm | GBPm | GBPm |
+---------------------------------------+--------+-------------+-------------+------------+
| Cash flows from operating activities | | | | |
+---------------------------------------+--------+-------------+-------------+------------+
| Cash generated from operations | 13 | 25.1 | 32.1 | 58.8 |
+---------------------------------------+--------+-------------+-------------+------------+
| Interest paid | | (4.6) | (7.5) | (12.1) |
+---------------------------------------+--------+-------------+-------------+------------+
| Interest received | | 0.1 | 0.2 | 0.4 |
+---------------------------------------+--------+-------------+-------------+------------+
| Tax repaid/(paid) | | 5.0 | (3.6) | (8.6) |
+---------------------------------------+--------+-------------+-------------+------------+
| Dividend received from associated | | - | - | 1.0 |
| company | | | | |
+---------------------------------------+--------+-------------+-------------+------------+
| Dividend received from joint venture | | - | - | 0.1 |
| company | | | | |
+---------------------------------------+--------+-------------+-------------+------------+
| | | | | |
+---------------------------------------+--------+-------------+-------------+------------+
| Net cash generated from operating | | 25.6 | 21.2 | 39.6 |
| activities | | | | |
+---------------------------------------+--------+-------------+-------------+------------+
| | | | | |
+---------------------------------------+--------+-------------+-------------+------------+
| Cash flows from investing activities | | | | |
+---------------------------------------+--------+-------------+-------------+------------+
| Purchase of property, plant and | | (4.3) | (14.6) | (23.1) |
| equipment, intangibles and investment | | | | |
| property | | | | |
+---------------------------------------+--------+-------------+-------------+------------+
| Loan to joint venture company | | (5.0) | - | - |
+---------------------------------------+--------+-------------+-------------+------------+
| Sale of property, plant and equipment | | 0.0 | 0.1 | 3.0 |
| and investment property | | | | |
+---------------------------------------+--------+-------------+-------------+------------+
| | | | | |
+---------------------------------------+--------+-------------+-------------+------------+
| Net cash used in investing activities | | (9.3) | (14.5) | (20.1) |
+---------------------------------------+--------+-------------+-------------+------------+
| | | | | |
+---------------------------------------+--------+-------------+-------------+------------+
| Net cash inflow before financing | | 16.3 | 6.7 | 19.5 |
| activities | | | | |
+---------------------------------------+--------+-------------+-------------+------------+
| | | | | |
+---------------------------------------+--------+-------------+-------------+------------+
| Cash flows from financing activities | | | | |
+---------------------------------------+--------+-------------+-------------+------------+
| New loans advanced | | 50.0 | 50.0 | 50.0 |
+---------------------------------------+--------+-------------+-------------+------------+
| Arrangement fees for new loans | | (0.2) | (0.1) | (0.3) |
+---------------------------------------+--------+-------------+-------------+------------+
| Loan repayments | | (59.0) | (43.0) | (50.0) |
+---------------------------------------+--------+-------------+-------------+------------+
| Capital element of finance leases | | (0.0) | (0.0) | (0.0) |
+---------------------------------------+--------+-------------+-------------+------------+
| Equity dividends paid | 15 | (5.4) | (14.6) | (22.1) |
+---------------------------------------+--------+-------------+-------------+------------+
| Proceeds from sale of own shares held | | 0.0 | 0.3 | 0.3 |
+---------------------------------------+--------+-------------+-------------+------------+
| | | | | |
+---------------------------------------+--------+-------------+-------------+------------+
| Net cash used in financing activities | | (14.6) | (7.4) | (22.1) |
+---------------------------------------+--------+-------------+-------------+------------+
| | | | | |
+---------------------------------------+--------+-------------+-------------+------------+
| Increase/(decrease) in cash and cash | 13 | 1.7 | (0.7) | (2.6) |
| equivalents | | | | |
+---------------------------------------+--------+-------------+-------------+------------+
| | | | | |
+---------------------------------------+--------+-------------+-------------+------------+
| Cash and cash equivalents at start of | | 4.7 | 7.3 | 7.3 |
| period | | | | |
+---------------------------------------+--------+-------------+-------------+------------+
| | | | | |
+---------------------------------------+--------+-------------+-------------+------------+
| Cash and cash equivalents at end of | 14 | 6.4 | 6.6 | 4.7 |
| period | | | | |
+---------------------------------------+--------+-------------+-------------+------------+
| | | | | |
+---------------------------------------+--------+-------------+-------------+------------+
NOTES:
1. General information
Forth Ports PLC is a company incorporated in Scotland under the Companies Act
1985. The nature of the Group's operations and its principal activities are the
provision of port and related services and facilities. The Group also has
extensive property interests.
These condensed consolidated interim financial statements have been approved for
issue by the Board of Directors on 27th August 2009.
2. Basis of preparation
The condensed consolidated interim financial statements for the six months ended
30th June 2009 have been prepared in accordance with the Disclosure and
Transparency Rules of the Financial Services Authority and with IAS 34 (Interim
Financial Reporting) as adopted by the European Union. The condensed
consolidated interim financial statements should be read in conjunction with the
annual financial statements for the year ended 31st December 2008 which have
been prepared in accordance with IFRSs as adopted by the European Union.
The Directors have made an assessment of the going concern basis of preparation
of the Group financial statements at 30th June 2009 and have concluded that this
basis is appropriate.
3. Accounting policies
The accounting policies applied are consistent with those of the annual
financial statements for the year ended 31st December 2008.
The following new standards and amendments to standards are mandatory for the
first time for the financial year beginning 1st January 2009:
* IAS 1 (revised) (Presentation of Financial Statements). The revised standard
prohibits the presentation of items of income and expenses (that is "non-owner
changes in equity") in the Statement of Changes in Equity, requiring "non-owner
changes in equity" to be presented separately from owner changes in equity. All
"non-owner changes in equity" are required to be shown in a performance
statement.
Entities can choose whether to present one performance statement (the Statement
of Comprehensive Income) or two statements (the Income Statement and Statement
of Comprehensive Income).
The Group has elected to present two statements: an Income Statement and a
Statement of Comprehensive Income. The interim financial statements have been
prepared under the revised disclosure requirements.
* IFRS 8 (Operating Segments). IFRS 8 replaces IAS 14 (Segment Reporting). It
requires a "management approach" under which segment information is presented on
the same basis as that used for internal reporting purposes.
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision-maker. The chief operating
decision-maker has been identified as the Board of Directors.
The following new standards, amendments to standards and interpretations are
mandatory for the first time for the financial year beginning 1st January 2009,
but have no material impact on the results of the Group:
* Amendment to IFRS 7 (Financial Instruments: Disclosures)
* IFRIC 13 (Customer Loyalty Programmes)
* IFRIC 14 (IAS 19, The Limit on a Defined Benefit Asset, Minimum Funding
Requirements and their Interaction)
* IFRIC 15 (Agreements for the Construction of Real Estate)
* IFRIC 16 (Hedges of a Net Investment in a Foreign Operation)
The following new standards, amendments to standards and interpretations have
been issued but are not effective for the financial year beginning 1st January
2009 and have not been early adopted:
* IAS 39 (amendment) (Financial Instruments: Recognition and Measurement)
* IFRS 3 (revised) (Business Combinations) and consequential amendments to IAS 27
(Consolidated and Separate Financial Statements), IAS 28 (Investments in
Associates) and IAS 31 (Interests in Joint Ventures), effective prospectively to
business combinations for which the acquisition date is on or after the
beginning of the first annual reporting period beginning on or after 1st July
2009. Management is assessing the impact of the new requirements regarding
acquisition accounting, consolidation, associates and joint ventures on the
Group.
The revised standard continues to apply the acquisition method to business
combinations, with some significant changes. For example, all payments to
purchase a business are to be recorded at fair value at the acquisition date,
with contingent payments classified as debt subsequently re-measured through the
Statement of Comprehensive Income. There is a choice on an
acquisition-by-acquisition basis to measure the minority interest in the
acquiree either at fair value or at the minority interest's proportionate share
of the acquiree's net assets. All acquisition-related costs should be expensed.
The Group will apply IFRS 3 (revised) to all business combinations from 1st
January 2010, subject to endorsement by the EU.
* IFRIC 17 (Distributions of Non-Cash Assets to Owners) effective for annual
periods beginning on or after 1st July 2009. This is not currently applicable to
the Group, as it has not made any non-cash distributions.
* IFRIC 18 (Transfers of Assets from Customers) effective for transfers of assets
received on or after 1st July 2009. This is not relevant to the Group, as it has
not received any assets from customers.
4. Risk
The principal risks and uncertainties which affect the Group have not changed
since 31st December 2008. A detailed explanation of these risks and
uncertainties can be found in the Business Review section of the Annual Report
and Accounts for the year ended 31st December 2008. The Directors consider that
this properly reflects the risks and uncertainties in respect of the second six
months of 2009.
5. Segment information
The chief operating decision-maker has been identified as the Board of
Directors. The Board reviews the Group's internal reporting in order to assess
performance and allocate resources. Management has determined the operating
segments based on these reports.
The Board assesses the performance of the operating segments based on a measure
of operating profit before interest and tax.
For management purposes, the Group is organised into two business segments:
(1) Port operations; and
(2) Property.
The segment results for the period ended 30th June 2009 were as follows:-
+----------------------------------+--------------+--------------+--------------+
| | Port | Property | Unaudited |
| | Operations | | six months |
| | | | to 30.6.09 |
+----------------------------------+--------------+--------------+--------------+
| | GBPm | GBPm | GBPm |
+----------------------------------+--------------+--------------+--------------+
| | | | |
+----------------------------------+--------------+--------------+--------------+
| Total gross segment revenue | 85.8 | 0.8 | 86.6 |
+----------------------------------+--------------+--------------+--------------+
| Inter-segment revenue | (0.0) | (0.0) | (0.0) |
+----------------------------------+--------------+--------------+--------------+
| | | | |
+----------------------------------+--------------+--------------+--------------+
| Total revenue | 85.8 | 0.8 | 86.6 |
+----------------------------------+--------------+--------------+--------------+
| | | | |
+----------------------------------+--------------+--------------+--------------+
| Operating profit/(loss)/Segment | 19.1 | (0.1) | 19.0 |
| result before elimination of | | | |
| inter-segment charge | | | |
+----------------------------------+--------------+--------------+--------------+
| Inter-segment charge eliminated | (0.0) | 0.0 | - |
+----------------------------------+--------------+--------------+--------------+
| | | | |
+----------------------------------+--------------+--------------+--------------+
| Operating profit/(loss)/Segment | 19.1 | (0.1) | 19.0 |
| result | | | |
+----------------------------------+--------------+--------------+--------------+
| Finance income (Note 6) | 0.1 | 0.4 | 0.5 |
+----------------------------------+--------------+--------------+--------------+
| Finance costs (Note 6) | (3.7) | (2.1) | (5.8) |
+----------------------------------+--------------+--------------+--------------+
| Net share of results of joint | - | (1.8) | (1.8) |
| ventures (Note 7) | | | |
+----------------------------------+--------------+--------------+--------------+
| Net share of results of | 0.5 | - | 0.5 |
| associate (Note 8) | | | |
+----------------------------------+--------------+--------------+--------------+
| | | | |
+----------------------------------+--------------+--------------+--------------+
| Profit/(loss) before tax | 16.0 | (3.6) | 12.4 |
+----------------------------------+--------------+--------------+--------------+
| Taxation | | | (3.9) |
+----------------------------------+--------------+--------------+--------------+
| | | | |
+----------------------------------+--------------+--------------+--------------+
| Profit for the period | | | 8.5 |
+----------------------------------+--------------+--------------+--------------+
| | | | |
+----------------------------------+--------------+--------------+--------------+
The segment results for the period ended 30th June 2008 were as follows:-
+----------------------------------+--------------+--------------+--------------+
| | Port | Property | Unaudited |
| | Operations | | six months |
| | | | to 30.6.08 |
+----------------------------------+--------------+--------------+--------------+
| | GBPm | GBPm | GBPm |
+----------------------------------+--------------+--------------+--------------+
| | | | |
+----------------------------------+--------------+--------------+--------------+
| Total gross segment revenue | 89.4 | 0.7 | 90.1 |
+----------------------------------+--------------+--------------+--------------+
| Inter-segment revenue | (0.0) | (0.0) | (0.0) |
+----------------------------------+--------------+--------------+--------------+
| | | | |
+----------------------------------+--------------+--------------+--------------+
| Total revenue | 89.4 | 0.7 | 90.1 |
+----------------------------------+--------------+--------------+--------------+
| | | | |
+----------------------------------+--------------+--------------+--------------+
| Operating profit/(loss)/Segment | 22.4 | (0.4) | 22.0 |
| result before elimination of | | | |
| inter-segment charge | | | |
+----------------------------------+--------------+--------------+--------------+
| Inter-segment charge eliminated | (0.0) | 0.0 | - |
+----------------------------------+--------------+--------------+--------------+
| | | | |
+----------------------------------+--------------+--------------+--------------+
| Operating profit/(loss)/Segment | 22.4 | (0.4) | 22.0 |
| result | | | |
+----------------------------------+--------------+--------------+--------------+
| Finance income (Note 6) | 0.2 | 0.8 | 1.0 |
+----------------------------------+--------------+--------------+--------------+
| Finance costs (Note 6) | (5.6) | (1.7) | (7.3) |
+----------------------------------+--------------+--------------+--------------+
| Net share of results of joint | - | (8.3) | (8.3) |
| ventures (Note 7) | | | |
+----------------------------------+--------------+--------------+--------------+
| Net share of results of | 1.6 | - | 1.6 |
| associate (Note 8) | | | |
+----------------------------------+--------------+--------------+--------------+
| | | | |
+----------------------------------+--------------+--------------+--------------+
| Profit/(loss) before tax | 18.6 | (9.6) | 9.0 |
+----------------------------------+--------------+--------------+--------------+
| Taxation | | | (4.4) |
+----------------------------------+--------------+--------------+--------------+
| | | | |
+----------------------------------+--------------+--------------+--------------+
| Profit for the period | | | 4.6 |
+----------------------------------+--------------+--------------+--------------+
| | | | |
+----------------------------------+--------------+--------------+--------------+
The underlying port operating profit of GBP19.5m (2008 - GBP22.7m) excludes
GBP0.4m for the amortisation of goodwill arising from the Nordic acquisition
(2008 - GBP0.3m).
Inter-segment transfers and transactions are entered into under the normal
commercial terms and conditions that would also be available to unrelated third
parties.
Other segment items included in the Condensed Consolidated Income Statement are
as follows:-
+-----------------------------+------------+----------+-----------+------------+-----------+-----------+
| | Port | Property | Unaudited | Port | Property | Unaudited |
| | Operations | | six | Operations | | six |
| | | | months | | | months |
| | | | to | | | to |
| | | | 30.6.09 | | | 30.6.08 |
+-----------------------------+------------+----------+-----------+------------+-----------+-----------+
| | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm |
+-----------------------------+------------+----------+-----------+------------+-----------+-----------+
| | | | | | | |
+-----------------------------+------------+----------+-----------+------------+-----------+-----------+
| Depreciation of property, | (7.1) | (0.0) | (7.1) | (7.0) | (0.0) | (7.0) |
| plant and equipment | | | | | | |
+-----------------------------+------------+----------+-----------+------------+-----------+-----------+
| Amortisation of intangibles | (0.7) | - | (0.7) | (0.7) | - | (0.7) |
+-----------------------------+------------+----------+-----------+------------+-----------+-----------+
| Amortisation of capital | 0.4 | - | 0.4 | 0.3 | - | 0.3 |
| grants | | | | | | |
+-----------------------------+------------+----------+-----------+------------+-----------+-----------+
| Impairment of trade | (0.1) | (0.0) | (0.1) | (0.0) | (0.0) | (0.0) |
| receivables | | | | | | |
+-----------------------------+------------+----------+-----------+------------+-----------+-----------+
| | | | | | | |
+-----------------------------+------------+----------+-----------+------------+-----------+-----------+
The segment assets and liabilities were as follows:-
+----------------------------------+--------------+--------------+--------------+
| | Port | Property | Unaudited |
| | Operations | | six months |
| | | | to 30.6.09 |
+----------------------------------+--------------+--------------+--------------+
| | GBPm | GBPm | GBPm |
+----------------------------------+--------------+--------------+--------------+
| | | | |
+----------------------------------+--------------+--------------+--------------+
| Assets | | | |
+----------------------------------+--------------+--------------+--------------+
| Segment assets | 506.6 | 36.0 | 542.6 |
+----------------------------------+--------------+--------------+--------------+
| Associates | 10.1 | - | 10.1 |
+----------------------------------+--------------+--------------+--------------+
| | | | |
+----------------------------------+--------------+--------------+--------------+
| Total assets | 516.7 | 36.0 | 552.7 |
+----------------------------------+--------------+--------------+--------------+
| | | | |
+----------------------------------+--------------+--------------+--------------+
| Liabilities | | | |
+----------------------------------+--------------+--------------+--------------+
| Segment liabilities | 214.2 | 48.4 | 262.6 |
+----------------------------------+--------------+--------------+--------------+
| Tax liabilities | 72.2 | 0.3 | 72.5 |
+----------------------------------+--------------+--------------+--------------+
| Joint ventures | - | - | - |
+----------------------------------+--------------+--------------+--------------+
| | | | |
+----------------------------------+--------------+--------------+--------------+
| Total liabilities | 286.4 | 48.7 | 335.1 |
+----------------------------------+--------------+--------------+--------------+
| | | | |
+----------------------------------+--------------+--------------+--------------+
+----------------------------------+--------------+--------------+--------------+
| | Port | Property | Unaudited |
| | Operations | | six months |
| | | | to 30.6.08 |
+----------------------------------+--------------+--------------+--------------+
| | GBPm | GBPm | GBPm |
+----------------------------------+--------------+--------------+--------------+
| | | | |
+----------------------------------+--------------+--------------+--------------+
| Assets | | | |
+----------------------------------+--------------+--------------+--------------+
| Segment assets | 525.4 | 85.6 | 611.0 |
+----------------------------------+--------------+--------------+--------------+
| Associates | 10.9 | - | 10.9 |
+----------------------------------+--------------+--------------+--------------+
| | | | |
+----------------------------------+--------------+--------------+--------------+
| Total assets | 536.3 | 85.6 | 621.9 |
+----------------------------------+--------------+--------------+--------------+
| | | | |
+----------------------------------+--------------+--------------+--------------+
| Liabilities | | | |
+----------------------------------+--------------+--------------+--------------+
| Segment liabilities | 222.4 | 52.0 | 274.4 |
+----------------------------------+--------------+--------------+--------------+
| Tax liabilities | 53.0 | 0.4 | 53.4 |
+----------------------------------+--------------+--------------+--------------+
| Joint ventures | - | 8.6 | 8.6 |
+----------------------------------+--------------+--------------+--------------+
| | | | |
+----------------------------------+--------------+--------------+--------------+
| Total liabilities | 275.4 | 61.0 | 336.4 |
+----------------------------------+--------------+--------------+--------------+
| | | | |
+----------------------------------+--------------+--------------+--------------+
Segment information for the year ended 31st December 2008 is as disclosed in the
full financial statements.
The Group operates solely in the UK.
6. Finance costs - net
Finance income and costs analysed by business segment are as follows:
+---------------------------------------+--------------+--------------+--------------+
| | Unaudited | Unaudited | Audited |
| | six months | six months | year |
| | to 30.6.09 | to 30.6.08 | to 31.12.08 |
+---------------------------------------+--------------+--------------+--------------+
| | GBPm | GBPm | GBPm |
+---------------------------------------+--------------+--------------+--------------+
| Finance income | | | |
+---------------------------------------+--------------+--------------+--------------+
| Port operations | | | |
+---------------------------------------+--------------+--------------+--------------+
| - on bank and other deposits | 0.0 | 0.1 | 0.4 |
+---------------------------------------+--------------+--------------+--------------+
| - interest on overpaid corporation | 0.1 | 0.1 | - |
| tax | | | |
+---------------------------------------+--------------+--------------+--------------+
| - interest receivable on overpaid | - | - | 0.3 |
| VAT | | | |
+---------------------------------------+--------------+--------------+--------------+
| Property | | | |
+---------------------------------------+--------------+--------------+--------------+
| - on bank and other deposits | 0.0 | 0.1 | 0.2 |
+---------------------------------------+--------------+--------------+--------------+
| - unwinding of discount on zero | 0.4 | 0.7 | 1.3 |
| coupon loan stock | | | |
| at amortised cost | | | |
+---------------------------------------+--------------+--------------+--------------+
| | | | |
+---------------------------------------+--------------+--------------+--------------+
| Total finance income | 0.5 | 1.0 | 2.2 |
+---------------------------------------+--------------+--------------+--------------+
| | | | |
+---------------------------------------+--------------+--------------+--------------+
| Finance costs | | | |
+---------------------------------------+--------------+--------------+--------------+
| Port operations | | | |
+---------------------------------------+--------------+--------------+--------------+
| - on bank loans | (3.5) | (5.4) | (10.5) |
+---------------------------------------+--------------+--------------+--------------+
| - on other loans | (0.0) | (0.0) | (0.0) |
+---------------------------------------+--------------+--------------+--------------+
| - on finance leases and hire | (0.0) | (0.0) | (0.0) |
| purchase contracts | | | |
+---------------------------------------+--------------+--------------+--------------+
| - amortisation of loan arrangement | (0.2) | (0.1) | (0.2) |
| fees | | | |
+---------------------------------------+--------------+--------------+--------------+
| - interest on underpaid corporation | - | (0.1) | (0.1) |
| tax | | | |
+---------------------------------------+--------------+--------------+--------------+
| Property | | | |
+---------------------------------------+--------------+--------------+--------------+
| - write down of zero coupon loan | (1.1) | - | - |
| stock to | | | |
| amortised cost | | | |
+---------------------------------------+--------------+--------------+--------------+
| - on bank loans | (1.0) | (1.7) | (3.3) |
+---------------------------------------+--------------+--------------+--------------+
| | | | |
+---------------------------------------+--------------+--------------+--------------+
| Total finance costs | (5.8) | (7.3) | (14.1) |
+---------------------------------------+--------------+--------------+--------------+
| | | | |
+---------------------------------------+--------------+--------------+--------------+
| Net finance costs | | | |
+---------------------------------------+--------------+--------------+--------------+
| Port operations | (3.6) | (5.4) | (10.1) |
+---------------------------------------+--------------+--------------+--------------+
| Property | (1.7) | (0.9) | (1.8) |
+---------------------------------------+--------------+--------------+--------------+
| | | | |
+---------------------------------------+--------------+--------------+--------------+
| | (5.3) | (6.3) | (11.9) |
+---------------------------------------+--------------+--------------+--------------+
| | | | |
+---------------------------------------+--------------+--------------+--------------+
7.Share of post-tax results of joint ventures
+---------------------------------------+--------------+--------------+--------------+
| | Unaudited | Unaudited | Audited |
| | six months | six months | year |
| | to 30.6.09 | to 30.6.08 | to 31.12.08 |
+---------------------------------------+--------------+--------------+--------------+
| | GBPm | GBPm | GBPm |
+---------------------------------------+--------------+--------------+--------------+
| | | | |
+---------------------------------------+--------------+--------------+--------------+
| Property | | | |
+---------------------------------------+--------------+--------------+--------------+
| Operating profit | 1.2 | 1.4 | 2.5 |
+---------------------------------------+--------------+--------------+--------------+
| Revaluation | (2.4) | (7.5) | (19.7) |
+---------------------------------------+--------------+--------------+--------------+
| Finance costs | (0.6) | (2.2) | (4.2) |
+---------------------------------------+--------------+--------------+--------------+
| Taxation | - | - | - |
+---------------------------------------+--------------+--------------+--------------+
| | | | |
+---------------------------------------+--------------+--------------+--------------+
| Group's share of post-tax results | (1.8) | (8.3) | (21.4) |
+---------------------------------------+--------------+--------------+--------------+
| | | | |
+---------------------------------------+--------------+--------------+--------------+
8. Share of post-tax results of associate
+---------------------------------------+--------------+--------------+--------------+
| | Unaudited | Unaudited | Audited |
| | six months | six months | year |
| | to 30.6.09 | to 30.6.08 | to 31.12.08 |
+---------------------------------------+--------------+--------------+--------------+
| | GBPm | GBPm | GBPm |
+---------------------------------------+--------------+--------------+--------------+
| Port operations | | | |
+---------------------------------------+--------------+--------------+--------------+
| Operating profit | 0.8 | 2.4 | 3.7 |
+---------------------------------------+--------------+--------------+--------------+
| Finance costs | (0.1) | (0.2) | (0.2) |
+---------------------------------------+--------------+--------------+--------------+
| Taxation | (0.2) | (0.6) | (2.0) |
+---------------------------------------+--------------+--------------+--------------+
| | | | |
+---------------------------------------+--------------+--------------+--------------+
| Group's share of post-tax results | 0.5 | 1.6 | 1.5 |
+---------------------------------------+--------------+--------------+--------------+
| | | | |
+---------------------------------------+--------------+--------------+--------------+
9. Exceptional items and revaluations
Exceptional items and revaluations have been disclosed separately because of
their quantum or incidence so as to give a clearer understanding of the Group's
financial performance and are charged/(credited) to the Income Statement as
follows:-
+-----------------------------------------+--------------+--------------+--------------+
| | Unaudited | Unaudited | Audited |
| | six months | six months | year |
| | to 30.6.09 | to 30.6.08 | to 31.12.08 |
+-----------------------------------------+--------------+--------------+--------------+
| | GBPm | GBPm | GBPm |
+-----------------------------------------+--------------+--------------+--------------+
| | | | |
+-----------------------------------------+--------------+--------------+--------------+
| Revenue | | | |
+-----------------------------------------+--------------+--------------+--------------+
| Amount receivable from a guarantor of a | - | - | (1.9) |
| port tenant | | | |
+-----------------------------------------+--------------+--------------+--------------+
| | | | |
+-----------------------------------------+--------------+--------------+--------------+
| Cost of sales | | | |
+-----------------------------------------+--------------+--------------+--------------+
| Write-down of property inventory | - | - | 27.7 |
+-----------------------------------------+--------------+--------------+--------------+
| Provision for property bad debt | - | - | 3.9 |
+-----------------------------------------+--------------+--------------+--------------+
| Costs relating to amount receivable | - | - | 0.2 |
| from a guarantor | | | |
| of a port tenant | | | |
+-----------------------------------------+--------------+--------------+--------------+
| | | | |
+-----------------------------------------+--------------+--------------+--------------+
| | - | - | 31.8 |
+-----------------------------------------+--------------+--------------+--------------+
| | | | |
+-----------------------------------------+--------------+--------------+--------------+
| Other expenses | | | |
+-----------------------------------------+--------------+--------------+--------------+
| Change in fair value of investment | - | - | 19.2 |
| properties | | | |
+-----------------------------------------+--------------+--------------+--------------+
| Gain on disposal of port asset | - | - | (2.8) |
+-----------------------------------------+--------------+--------------+--------------+
| | | | |
+-----------------------------------------+--------------+--------------+--------------+
| | - | - | 16.4 |
+-----------------------------------------+--------------+--------------+--------------+
| | | | |
+-----------------------------------------+--------------+--------------+--------------+
| Share of results of joint ventures | | | |
+-----------------------------------------+--------------+--------------+--------------+
| Group's share of change in fair value | 2.4 | 7.5 | 19.7 |
| of | | | |
| investment property (Note 7) | | | |
+-----------------------------------------+--------------+--------------+--------------+
| | | | |
+-----------------------------------------+--------------+--------------+--------------+
| Share of results of associate | | | |
+-----------------------------------------+--------------+--------------+--------------+
| Group's share of effect on taxation | - | - | 1.0 |
| charge as a result of withdrawal of | | | |
| Industrial Buildings Allowances | | | |
+-----------------------------------------+--------------+--------------+--------------+
| | | | |
+-----------------------------------------+--------------+--------------+--------------+
| Taxation | | | |
+-----------------------------------------+--------------+--------------+--------------+
| Current taxation: | | | |
+-----------------------------------------+--------------+--------------+--------------+
| Tax effect of amount receivable less | - | - | 0.5 |
| costs from a guarantor of a port tenant | | | |
+-----------------------------------------+--------------+--------------+--------------+
| Tax effect of write-down of property | - | - | (7.9) |
| inventory | | | |
+-----------------------------------------+--------------+--------------+--------------+
| Tax effect of provision for property | - | - | (1.1) |
| bad debt | | | |
+-----------------------------------------+--------------+--------------+--------------+
| Tax effect of gain on disposal of port | - | - | 0.2 |
| asset | | | |
+-----------------------------------------+--------------+--------------+--------------+
| | | | |
+-----------------------------------------+--------------+--------------+--------------+
| | - | - | (8.3) |
+-----------------------------------------+--------------+--------------+--------------+
| | | | |
+-----------------------------------------+--------------+--------------+--------------+
| Deferred taxation: | | | |
+-----------------------------------------+--------------+--------------+--------------+
| Tax effect of gain on disposal of port | - | - | (0.0) |
| asset | | | |
+-----------------------------------------+--------------+--------------+--------------+
| Tax effect of change in fair value of | - | - | (8.6) |
| investment property | | | |
+-----------------------------------------+--------------+--------------+--------------+
| Tax effect of withdrawal of Industrial | - | - | 27.2 |
| Buildings | | | |
| Allowances | | | |
+-----------------------------------------+--------------+--------------+--------------+
| | | | |
+-----------------------------------------+--------------+--------------+--------------+
| | - | - | 18.6 |
+-----------------------------------------+--------------+--------------+--------------+
| | | | |
+-----------------------------------------+--------------+--------------+--------------+
| Total taxation | - | - | 10.3 |
+-----------------------------------------+--------------+--------------+--------------+
| | | | |
+-----------------------------------------+--------------+--------------+--------------+
The Group has restricted its share of the reduction in fair value of the Ocean
Terminal Shopping Centre to GBP2.4m in accordance with IAS 28 and the Group's
accounting policy. At 30th June 2009, the Group's net investment in Ocean
Terminal Limited is nil. If the Group was to reflect its full share of the
movement in fair value, this reduction of GBP2.4m would increase by GBP2m.
10. The taxation charge for the six months to 30th June 2009 has been provided
on the basis of the estimated effective tax rate for the year to 31st December
2009 being 28.6% (2008 - 28.5%).
11. The basic earnings per share calculation is based on the weighted average of
Ordinary Shares in issue in the six months ended 30th June 2009 of 45.5 million
(2008 - 45.5 million). The diluted earnings per share figure is based on the
weighted average of Ordinary Shares in issue adjusted for potential dilutive
Ordinary Shares in the six months ended 30th June 2009 of 45.9 million (2008 -
45.8 million). Underlying earnings are defined in Note 18. Underlying earnings
per share divides underlying earnings attributable to shareholders by the
weighted average number of shares in issue during the period as per the
calculation for basic earnings per share.
12. Movements in property, plant and equipment, investment property and
intangible assets
+----------------------------------------+-------------+--------------+--------------+
| | Property, | Investment | Intangible |
| | plant and | property | assets |
| | equipment | | |
+----------------------------------------+-------------+--------------+--------------+
| | GBPm | GBPm | GBPm |
+----------------------------------------+-------------+--------------+--------------+
| | | | |
+----------------------------------------+-------------+--------------+--------------+
| Six months ended 30th June 2008 | | | |
+----------------------------------------+-------------+--------------+--------------+
| Opening net book amount at 1st January | 223.1 | 182.9 | 41.6 |
| 2008 | | | |
+----------------------------------------+-------------+--------------+--------------+
| Additions | 14.6 | 0.2 | 0.0 |
+----------------------------------------+-------------+--------------+--------------+
| Transfers between asset categories | (13.5) | 13.5 | - |
+----------------------------------------+-------------+--------------+--------------+
| Depreciation and amortisation (net of | (6.7) | - | (0.7) |
| grant amortisation) | | | |
+----------------------------------------+-------------+--------------+--------------+
| Disposals | (0.1) | (0.0) | - |
+----------------------------------------+-------------+--------------+--------------+
| Increase in fair value - to reserves | - | 24.5 | - |
+----------------------------------------+-------------+--------------+--------------+
| | | | |
+----------------------------------------+-------------+--------------+--------------+
| Closing net book amount at 30th June | 217.4 | 221.1 | 40.9 |
| 2008 | | | |
+----------------------------------------+-------------+--------------+--------------+
| | | | |
+----------------------------------------+-------------+--------------+--------------+
| Year ended 31st December 2008 | | | |
+----------------------------------------+-------------+--------------+--------------+
| Opening net book amount at 1st January | 223.1 | 182.9 | 41.6 |
| 2008 | | | |
+----------------------------------------+-------------+--------------+--------------+
| Additions | 24.4 | 0.0 | 0.1 |
+----------------------------------------+-------------+--------------+--------------+
| Transfers between asset categories | (14.9) | 17.2 | - |
+----------------------------------------+-------------+--------------+--------------+
| Depreciation and amortisation (net of | (13.2) | - | (1.4) |
| grant amortisation) | | | |
+----------------------------------------+-------------+--------------+--------------+
| Disposals | (0.1) | (0.1) | - |
+----------------------------------------+-------------+--------------+--------------+
| Increase in fair value - to Income | - | (19.2) | - |
| Statement | | | |
+----------------------------------------+-------------+--------------+--------------+
| - to reserves | - | 24.9 | - |
+----------------------------------------+-------------+--------------+--------------+
| | | | |
+----------------------------------------+-------------+--------------+--------------+
| Closing net book amount at 31st | 219.3 | 205.7 | 40.3 |
| December 2008 | | | |
+----------------------------------------+-------------+--------------+--------------+
| | | | |
+----------------------------------------+-------------+--------------+--------------+
| Six months ended 30th June 2009 | | | |
+----------------------------------------+-------------+--------------+--------------+
| Opening net book amount at 1st January | 219.3 | 205.7 | 40.3 |
| 2009 | | | |
+----------------------------------------+-------------+--------------+--------------+
| Additions | 2.4 | - | 0.0 |
+----------------------------------------+-------------+--------------+--------------+
| Transfers between asset categories | (0.5) | 0.5 | - |
+----------------------------------------+-------------+--------------+--------------+
| Depreciation and amortisation (net of | (6.7) | - | (0.7) |
| grant amortisation) | | | |
+----------------------------------------+-------------+--------------+--------------+
| Disposals | (0.0) | (0.0) | - |
+----------------------------------------+-------------+--------------+--------------+
| Increase in fair value - to reserves | - | 2.4 | - |
+----------------------------------------+-------------+--------------+--------------+
| | | | |
+----------------------------------------+-------------+--------------+--------------+
| Closing net book amount at 30th June | 214.5 | 208.6 | 39.6 |
| 2009 | | | |
+----------------------------------------+-------------+--------------+--------------+
| | | | |
+----------------------------------------+-------------+--------------+--------------+
Consideration was given to the carrying value of the intangible assets due to
the effects of the economic downturn. It was concluded that their carrying value
remained appropriate as at 30th June 2009.
13. Reconciliation of profit before tax to cash generated from operations
+---------------------------------------------+-------------+-------------+-------------+
| | Unaudited | Unaudited | Audited |
| | six months | six months | year |
| | to 30.6.09 | to 30.6.08 | to 31.12.08 |
+---------------------------------------------+-------------+-------------+-------------+
| | GBPm | GBPm | GBPm |
+---------------------------------------------+-------------+-------------+-------------+
| | | | |
+---------------------------------------------+-------------+-------------+-------------+
| Profit/(loss) before tax | 12.4 | 9.0 | (30.7) |
+---------------------------------------------+-------------+-------------+-------------+
| Adjustments for: | | | |
+---------------------------------------------+-------------+-------------+-------------+
| - decrease in fair value of investment | - | - | 19.2 |
| properties | | | |
+---------------------------------------------+-------------+-------------+-------------+
| - net finance costs | 5.3 | 6.3 | 11.9 |
+---------------------------------------------+-------------+-------------+-------------+
| - write-down of property inventory | - | - | 27.7 |
+---------------------------------------------+-------------+-------------+-------------+
| - provision for property bad debts | - | - | 3.9 |
+---------------------------------------------+-------------+-------------+-------------+
| - amounts receivable from guarantor of a | - | - | (1.7) |
| port tenant less costs | | | |
+---------------------------------------------+-------------+-------------+-------------+
| - share of results of joint ventures | 1.8 | 8.3 | 21.4 |
+---------------------------------------------+-------------+-------------+-------------+
| - share of results of associates | (0.5) | (1.6) | (1.5) |
+---------------------------------------------+-------------+-------------+-------------+
| - depreciation of property, plant and | 7.4 | 7.4 | 14.6 |
| equipment and | | | |
| amortisation of intangibles | | | |
+---------------------------------------------+-------------+-------------+-------------+
| - gain on sale of property, plant and | (0.0) | (0.0) | (2.8) |
| equipment | | | |
+---------------------------------------------+-------------+-------------+-------------+
| - (decrease)/increase in provisions | (0.1) | (0.1) | 0.9 |
+---------------------------------------------+-------------+-------------+-------------+
| - decrease in retirement benefit | (0.5) | (1.2) | (6.3) |
| obligations | | | |
+---------------------------------------------+-------------+-------------+-------------+
| - transfer to property, plant and | - | - | (2.3) |
| equipment from inventories | | | |
+---------------------------------------------+-------------+-------------+-------------+
| - share based payment | 0.6 | 0.7 | 1.9 |
+---------------------------------------------+-------------+-------------+-------------+
| | | | |
+---------------------------------------------+-------------+-------------+-------------+
| Movement in working capital: | | | |
+---------------------------------------------+-------------+-------------+-------------+
| Increase in inventories | (0.9) | (2.9) | (4.4) |
+---------------------------------------------+-------------+-------------+-------------+
| (Increase)/decrease in receivables | (1.3) | 5.5 | 8.5 |
+---------------------------------------------+-------------+-------------+-------------+
| Increase/(decrease) in payables | 0.9 | 0.7 | (1.5) |
+---------------------------------------------+-------------+-------------+-------------+
| | | | |
+---------------------------------------------+-------------+-------------+-------------+
| Cash generated from operations | 25.1 | 32.1 | 58.8 |
+---------------------------------------------+-------------+-------------+-------------+
| | | | |
+---------------------------------------------+-------------+-------------+-------------+
Reconciliation of increase/(decrease) in cash and cash equivalents to movement
in net debt
+---------------------------------------+------+-------------+-------------+-------------+
| | | | | |
+---------------------------------------+------+-------------+-------------+-------------+
| Increase/(decrease) in cash and cash | | 1.7 | (0.7) | (2.6) |
| equivalents | | | | |
+---------------------------------------+------+-------------+-------------+-------------+
| Cash outflow/(inflow) from | | 9.2 | (6.9) | 0.3 |
| decrease/(increase) in borrowings | | | | |
+---------------------------------------+------+-------------+-------------+-------------+
| | | | | |
+---------------------------------------+------+-------------+-------------+-------------+
| Change in net debt resulting from | | 10.9 | (7.6) | (2.3) |
| cash flows | | | | |
+---------------------------------------+------+-------------+-------------+-------------+
| Amortisation of loan arrangement fees | | (0.2) | (0.1) | (0.2) |
+---------------------------------------+------+-------------+-------------+-------------+
| | | | | |
+---------------------------------------+------+-------------+-------------+-------------+
| Movement in net debt | | 10.7 | (7.7) | (2.5) |
+---------------------------------------+------+-------------+-------------+-------------+
| Opening net debt | | (208.0) | (205.5) | (205.5) |
+---------------------------------------+------+-------------+-------------+-------------+
| | | | | |
+---------------------------------------+------+-------------+-------------+-------------+
| Closing net debt | | (197.3) | (213.2) | (208.0) |
+---------------------------------------+------+-------------+-------------+-------------+
| | | | | |
+---------------------------------------+------+-------------+-------------+-------------+
14. Analysis of changes in net debt
+-----------------------------+-----------+-----------+------------+-----------+
| | | | | |
+-----------------------------+-----------+-----------+------------+-----------+
| | | Cash | Other | |
+-----------------------------+-----------+-----------+------------+-----------+
| | At 1.1.09 | flow | movement | At |
| | | | | 30.6.09 |
+-----------------------------+-----------+-----------+------------+-----------+
| | GBPm | GBPm | GBPm | GBPm |
+-----------------------------+-----------+-----------+------------+-----------+
| | | | | |
+-----------------------------+-----------+-----------+------------+-----------+
| Cash at bank and on deposit | 4.7 | 1.7 | - | 6.4 |
+-----------------------------+-----------+-----------+------------+-----------+
| Debt due outwith one year | (212.6) | 9.2 | (0.2) | (203.6) |
+-----------------------------+-----------+-----------+------------+-----------+
| Borrowings - finance leases | (0.1) | 0.0 | - | (0.1) |
+-----------------------------+-----------+-----------+------------+-----------+
| | | | | |
+-----------------------------+-----------+-----------+------------+-----------+
| Total net debt | (208.0) | 10.9 | (0.2) | (197.3) |
+-----------------------------+-----------+-----------+------------+-----------+
| | | | | |
+-----------------------------+-----------+-----------+------------+-----------+
The other movement relates to the amortisation of arrangement fees for bank
facilities.
15. Dividends per share
+---------------------------------------+--------------+--------------+--------------+
| | Unaudited | Unaudited | Audited |
| | six months | six months | year |
| | to 30.6.09 | to 30.6.08 | to 31.12.08 |
+---------------------------------------+--------------+--------------+--------------+
| | pence | pence | pence |
+---------------------------------------+--------------+--------------+--------------+
| Dividends per share | | | |
+---------------------------------------+--------------+--------------+--------------+
| Final dividend 2007 | - | 31.95 | 31.95 |
+---------------------------------------+--------------+--------------+--------------+
| Final dividend 2008 | 12.0 | - | - |
+---------------------------------------+--------------+--------------+--------------+
| Interim dividend 2008 | - | - | 16.6 |
+---------------------------------------+--------------+--------------+--------------+
| | | | |
+---------------------------------------+--------------+--------------+--------------+
| | 12.0 | 31.95 | 48.55 |
+---------------------------------------+--------------+--------------+--------------+
| | | | |
+---------------------------------------+--------------+--------------+--------------+
| | GBPm | GBPm | GBPm |
+---------------------------------------+--------------+--------------+--------------+
| Total paid in respect of dividends | | | |
| (less dividends received by employee | | | |
| share option plan trust) | | | |
+---------------------------------------+--------------+--------------+--------------+
| Final dividend 2007 | - | 14.5 | 14.5 |
+---------------------------------------+--------------+--------------+--------------+
| Final dividend 2008 | 5.4 | - | - |
+---------------------------------------+--------------+--------------+--------------+
| Interim dividend 2008 | - | - | 7.5 |
+---------------------------------------+--------------+--------------+--------------+
| | | | |
+---------------------------------------+--------------+--------------+--------------+
| | 5.4 | 14.5 | 22.0 |
+---------------------------------------+--------------+--------------+--------------+
| | | | |
+---------------------------------------+--------------+--------------+--------------+
A dividend of 9.5p per share totalling GBP4.3m is proposed as the interim
dividend for 2009. This has not been provided for in the condensed financial
statements.
16. Related party transactions
During the six month period ended 30th June 2009, the Group entered into
material transactions with related parties as follows:
+---------------------+-----------------+--------------+--------------+------------+------------+
| | | Value of | Value of | Amount | Amount |
+---------------------+-----------------+--------------+--------------+------------+------------+
| Nature of | Nature of | Transactions | Transactions | Receivable | Receivable |
| Transactions | | | | | |
+---------------------+-----------------+--------------+--------------+------------+------------+
| And Related Party | Relationship | 2009 | 2008 | at | at |
| | | | | 30.6.09 | 30.6.08 |
+---------------------+-----------------+--------------+--------------+------------+------------+
| | | GBPm | GBPm | GBPm | GBPm |
+---------------------+-----------------+--------------+--------------+------------+------------+
| Management charges, | | 1.8 | 1.1 | 0.5 | 0.1 |
| port And other | | | | | |
| charges | | | | | |
+---------------------+-----------------+--------------+--------------+------------+------------+
| Tilbury Container | Associated | | | | |
| Services Limited | company | | | | |
+---------------------+-----------------+--------------+--------------+------------+------------+
| | | | | | |
+---------------------+-----------------+--------------+--------------+------------+------------+
| Interest and loans | | 0.4 | 0.7 | 3.9 | 22.0 |
+---------------------+-----------------+--------------+--------------+------------+------------+
| Ocean Terminal | Joint venture | | | | |
| Limited | company | | | | |
+---------------------+-----------------+--------------+--------------+------------+------------+
| | | | | | |
+---------------------+-----------------+--------------+--------------+------------+------------+
The Group has taken advantage of the exemption from disclosing intra-Group
transactions as permitted by IAS 24 (Related Party Disclosures).
17. Retirement benefit obligations - changes in assumptions
The revised material assumptions used to arrive at the retirement benefit
obligation liability are as follows:
+-------------+---------+----------+
| | As at | As at |
| | 30.6.09 | 31.12.08 |
+-------------+---------+----------+
| Main | | |
| actuarial | | |
| assumptions | | |
+-------------+---------+----------+
| | | |
+-------------+---------+----------+
| Discount | 6.20% | 6.40% |
| rate | | |
+-------------+---------+----------+
| Price | 3.20% | 2.75% |
| inflation | | |
+-------------+---------+----------+
| Salary | 4.45% | 4.00% |
| growth | | |
+-------------+---------+----------+
| | | |
+-------------+---------+----------+
Assumptions regarding mortality have not changed since 31st December 2008.
18. Definition of "underlying"
The definition of the word "underlying" in the context of an adjustment to a
reported number is as follows:-
1) Underlying group/port/property operating profit refers to the reported
group/port/property operating profit adjusted to exclude the effect of any
revaluation of the investment properties, amortisation charge arising from
acquisitions and any exceptional items.
2) Underlying profit before tax, underlying profit after tax and underlying
earnings per share refer to reported profit before tax, reported profit after
tax and reported basic earnings per share adjusted as above together with an
adjustment for any revaluation of joint venture's investment property.
19. Condensed consolidated interim financial statements
The condensed consolidated interim financial statements are unaudited but have
been formally reviewed by the Auditors and their report to the Company is set
out on page 25. The financial information contained in this statement does not
comprise statutory accounts within the meaning of the phrase as referred to in
section 434 of the Companies Act 2006. Full accounts for the year ended 31st
December 2008 have been filed with the Registrar of Companies. The report of the
Auditors on these accounts was unqualified and did not contain a statement under
either section 237(2) or section 237(3) of the Companies Act 1985.
The maintenance and integrity of the Forth Ports PLC website is the
responsibility of the Directors; the work carried out by the Auditors does not
involve consideration of these matters and, accordingly, the Auditors accept no
responsibility for any changes that may have occurred to the Interim Report
since it was initially presented on the website.
Legislation in the United Kingdom governing the preparation and dissemination of
financial information may differ from legislation in other jurisdictions.
20. The interim statement will be posted to shareholders on 4th September 2009.
Copies will be available from the Company's registered office, Forth Ports PLC,
1 Prince of Wales Dock, Leith, Edinburgh EH6 7DX.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors confirm that this condensed consolidated interim financial
information has been prepared in accordance with IAS 34 as adopted by the
European Union and that the interim management report includes a fair review of
the information required by DTR 4.2.7 and DTR 4.2.8 namely:
* an indication of important events that have occurred during the first six months
and their impact on the condensed set of financial statements, and a description
of the principal risks and uncertainties for the remaining six months of the
financial year; and
* material related-party transactions in the first six months and any material
changes in the related-party transactions described in the last annual report.
The Directors of Forth Ports PLC are listed in the Forth Ports PLC Annual Report
for 31st December 2008.
BY ORDER OF THE BOARD
+---------------------------------------------------------+----------------------------------------------------+
| C.G. Hammond | W.W. Murray |
+---------------------------------------------------------+----------------------------------------------------+
| GROUP CHIEF EXECUTIVE | GROUP FINANCE DIRECTOR |
+---------------------------------------------------------+----------------------------------------------------+
INDEPENDENT REVIEW REPORT TO FORTH PORTS PLC
Introduction
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30th
June 2009, which comprises the income statement, balance sheet, statement of
comprehensive income, statement of changes in equity, statement of cash flows
and related notes. We have read the other information contained in the
half-yearly financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the condensed
set of financial statements.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the Directors. The Directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.
As disclosed in note 2, the annual financial statements of the Group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard
34, "Interim Financial Reporting", as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review. This report, including the conclusion, has been prepared for and only
for the company for the purpose of the Disclosure and Transparency Rules of the
Financial Services Authority and for no other purpose. We do not, in producing
this report, accept or assume responsibility for any other purpose or to any
other person to whom this report is shown or into whose hands it may come save
where expressly agreed by our prior consent in writing.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 30th June 2009 is not prepared, in all material
respects, in accordance with International Accounting Standard 34 as adopted by
the European Union and the Disclosure and Transparency Rules of the United
Kingdom's Financial Services Authority.
PricewaterhouseCoopers LLP
Chartered Accountants
Edinburgh
27th August 2009
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR QQLFLKVBFBBB
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