Interim Results
Barr(A.G.) PLC
28 September 2004
28 September 2004
A.G.BARR p.l.c.
INTERIM RESULTS
A.G.Barr p.l.c. the Scottish based manufacturer of soft drinks including the
popular Irn-Bru, Tizer and Orangina brands, announces its interim results today
for the 6 months ended 31st July 2004.
Key Points
• Profit on ordinary activities before tax increased by 10% to £7.9 million
(2003: £7.2 million).
• Despite poor summer weather turnover advanced marginally to £66.3 million
(2003: £65.9 million).
• Interim dividend increased by 9% to 9.25p per share (2003: 8.50p).
• Resilient performance in core brands and markets. Irn-Bru and Tizer grow
value market share in the period.
Commenting Roger White, Chief Executive, said:
'We have made excellent progress across the business in what has been a
challenging market.
Our continued strong financial performance indicates both the fundamental
strength of our core brands and the improving trends in almost all the key areas
of the business.
We have exciting plans for the second half and believe that regardless of market
conditions we should continue to deliver improved performance across the
Company.
Trading in the first 7 weeks of the second half sees our revenue already 3% up
on the same period last year.'
For further information:
A.G.Barr
Robin Barr, Chairman
Roger White, Chief Executive
Iain Greenock, Finance Director Tel: 0141 554 1899
Buchanan Communications
Tim Thompson/Nicola Cronk Tel: 020 7466 5000
A.G.BARR p.l.c.
Chairman's Statement
Profit on ordinary activities before taxation for the six months to 31 July 2004
was £7.9 million compared with £7.2 million for the same period last year. This
10% increase in pre-tax profit reflects both the underlying fundamental strength
of the business and further success achieved within our business improvement
plans in the last six months.
Turnover for the period, although only marginally up, reflects a strong
performance - particularly in Scotland - given the very poor year-on-year
weather comparison. The retail market has also been highly competitive across
all channels and specifically in our flavoured carbonates sector. However, we
are pleased to be able to report that the UK market share by value, as measured
by A C Nielsen, has improved for both Irn-Bru and Tizer in the period.
Irn-Bru - and particularly its Diet variant - performed well in Scotland with
sales revenue up 4% year-on-year during the first half. A planned change this
year in promotional phasing in England will see a higher proportion of
investment in Irn-Bru during the second half.
The launch of the Tizer Colourz range in the period has proved successful with
revenue growth of 25% year-on-year in the total Tizer brand. On a less positive
note, Orangina volumes were, as a consequence of changes in promotional
activity, significantly below the levels achieved last year.
Margins in the first 6 months have continued to trend upwards in line with our
value based strategy and have been further supported by continuing improvements
in product and customer mix as well as limited price rises across the portfolio.
Costs have been well controlled across the business and progress continues to
be made in improving supply chain efficiency.
Consistent with our improved financial performance in the current half year your
directors have declared an interim dividend of 9.25p per share, payable on 29
October 2004. This is a 9% increase on the interim dividend paid last year.
Planning for future growth of the business in both sales and operations is
progressing well and major capital investment plans will be at the heart of our
future development. However, actual capital spend in the first half of this
year was modest as we take time to ensure that our future plans are soundly
based.
We have now moved through the months when weather has a significant effect on
the market. Our improved performance has been achieved despite the unfavourable
weather and lower promotional activity. Following the poor summer we can
anticipate heavyweight competitor reaction during the second half of the year
but we ourselves have strong marketing and promotional plans for this period.
These include an exciting new advertising positioning for Irn-Bru which will be
launched in early October.
We expect to maintain our margins during the second half of the year despite
some increases in costs which we plan to offset with further efficiency gains
across the business.
Total turnover for the first seven weeks of the second half of the year is 3% up
on the same period last year and remains on track to achieve our full year plan.
Having delivered a strong first half performance in a difficult market, we will
continue for the remainder of this year and beyond to support the development of
our core brands, bring new products successfully to market and drive the
efficiency of the overall business operation.
Robin Barr, Chairman 28 September, 2004
A.G.BARR p.l.c.
Consolidated Profit and Loss Account
6 months 6 months Year
ended ended ended
31.07.04 26.07.03 31.01.04
£000 £000 £000
Turnover (note 2) 66,272 65,885 125,235
Operating profit 7,398 6,922 13,198
Interest 518 259 599
Profit on ordinary activities before taxation 7,916 7,181 13,797
Taxation (note 3) 2,373 2,247 4,085
Profit on ordinary activities after taxation 5,543 4,934 9,712
No separate Statement of Total Recognised Gains and Losses has been presented as
all such gains and losses have been dealt with in the Consolidated Profit and
Loss Account.
Earnings per share on issued share capital (note 4) 28.48 p 25.35 p 49.90 p
Basic earnings per share 29.66 p 26.41 p 51.98 p
Fully diluted earnings per share 27.85 p 24.95 p 49.33 p
Dividend per share 9.25 p 8.50 p 25.50 p
Dividend (£000) 1,800 1,654 4,963
Record date: 8 October, 2004
Ex-div date: 6 October, 2004
Payment date of dividend: 29 October, 2004
A.G.BARR p.l.c.
Consolidated Balance Sheet
Restated Restated
As at As at As at
31.07.04 26.07.03 31.01.04
£000 £000 £000
Fixed assets
Tangible assets (note 5) 38,010 41,150 39,545
Current assets
Stocks 9,843 10,370 10,418
Debtors 26,128 26,746 20,126
Cash at bank 31,983 18,168 24,937
67,954 55,284 55,481
Creditors: Due within one year 34,535 29,981 27,225
Net current assets 33,419 25,303 28,256
Total assets less current liabilities 71,429 66,453 67,801
Provisions for liabilities and charges
Deferred credit 624 632 628
Deferred taxation 4,722 4,866 4,757
5,346 5,498 5,385
66,083 60,955 62,416
Capital and reserves
Called up share capital 4,865 4,865 4,865
Share premium account 905 905 905
Profit and loss account 63,139 57,927 59,396
Own shares held (2,826) (2,742) (2,750)
66,083 60,955 62,416
A.G.BARR p.l.c.
Notes to the Consolidated Accounts
1. Non-statutory accounts
These interim financial statements, which have been prepared on the basis of the
accounting policies set out in the company's 2004 published accounts, do not
constitute statutory accounts and are unaudited. Comparative figures for the
year ended 31 January, 2004 have been extracted from the statutory accounts of
the company on which the auditors gave an unqualified report and which have been
filed with the Registrar of Companies.
UITF 38 (Accounting for ESOP trusts) has been adopted in the current period. As
a result of the adoption of UITF 38 own shares held, previously shown as
investments, are now disclosed as a deduction from shareholders' funds. A prior
year adjustment has been made to restate the comparative figures. The adoption
of UITF 38 has not affected profits.
A copy of this announcement is distributed to all registered shareholders of the
company and is available for members of the public upon application to the
Company Secretary at 1306 Gallowgate, Glasgow G31 4DS and on our corporate
website at www.agbarr.co.uk.
2. Turnover
The figure for turnover includes exports of £348,000 (2003 - £418,000 ; Year
2004 - £591,000).
3. Taxation
Corporation tax is provided at the anticipated rate of taxation for the group's
current financial period.
4. Earnings per share
The calculation is based on the group profit after taxation and the number of
ordinary shares of 25p each in issue at 31 July, 2004.
5. Movement in tangible fixed assets 6 months 6 months Year
ended ended ended
31.07.04 26.07.03 31.01.04
£000 £000 £000
Beginning of period 39,545 42,255 42,255
Additions 1,372 1,995 3,435
Disposals (102) (129) (185)
Depreciation (2,805) (2,971) (5,960)
End of period 38,010 41,150 39,545
A.G.BARR p.l.c.
Consolidated Cash Flow Statement
Restated Restated
6 months 6 months Year
ended ended ended
31.07.04 26.07.03 31.01.04
£000 £000 £000
Net cash flow from operating activities 13,595 8,712 20,075
(note 1)
Returns on investment and servicing of finance
Interest received 520 260 603
Interest paid (2) (1) (4)
518 259 599
Taxation
Corporation tax paid (2,069) (1,853) (3,873)
Capital expenditure and financial investment
Purchase of tangible fixed assets (1,707) (1,936) (3,306)
Sale of tangible fixed assets 110 172 274
(1,597) (1,764) (3,032)
Dividends paid (3,308) (3,065) (4,720)
Financing
(Purchase)/disposal of own shares (76) 350 342
Increase in cash 7,063 2,639 9,391
A.G.BARR p.l.c.
Notes to the Consolidated Cash Flow Statement
Restated Restated
1. Net cash inflow from operating activities 6 months 6 months Year
ended ended ended
31.07.04 26.07.03 31.01.04
£000 £000 £000
Operating profit 7,398 6,922 13,198
Depreciation 2,805 2,971 5,960
(Gain) on sale of tangible assets (8) (43) (89)
Government grants written back (4) (4) (8)
Decrease in stocks 576 1,815 1,766
(Increase) in debtors (5,858) (6,886) (126)
Increase/(decrease) in creditors 8,686 3,803 (760)
Pension provision release - 134 134
13,595 8,712 20,075
2. Reconciliation of net cash flow to movement in net funds
Increase in cash in the period 7,063 2,639 9,391
Net funds at 31 January, 2004 24,920 15,529 15,529
Net funds at 31 July, 2004 31,983 18,168 24,920
3. Analysis of changes in net funds At 31.01.04 Cash At
Flows 31.07.04
£000 £000 £000
Cash in hand and at bank 24,937 7,046 31,983
Overdrafts (17) 17 -
Total 24,920 7,063 31,983
This information is provided by RNS
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Monday, 20th May 2024
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