Final Results

RNS Number : 0318D

Britvic plc

25 November 2009

Britvic plc Preliminary Results

25th November 2009

Britvic plc ("Britvic") today announces its Preliminary Results for the 52 weeks ended 27th September 2009 ("the period"). Numbers in this announcement are all quoted before exceptional items, except where stated otherwise.

	52 weeks ended 27th September 2009 £m	52 weeks ended 28th September 2008 £m	% change

Group revenue	978.8	926.5	5.6
GB & International revenue	789.3	725.8	8.7
Britvic Ireland revenue	189.5	200.7	(5.6)

Group operating profit	110.1	96.7	13.9
Group operating profit margin	11.2%	10.4%	80bps

GB & International operating profit GB & International operating profit margin	97.9 12.4%	82.0 11.3%	19.4 110bps

Britvic Ireland operating profit	12.2	14.7	(17.0)
Britvic Ireland operating profit margin	6.4%	7.3%	(90)bps

Group profit before tax	86.5	70.1	23.4
Group profit after tax	64.2	53.0	21.1
Group profit after tax, after exceptional items	46.8	31.8	47.2

Group EBITDA (1)	150.5	142.9	5.3
Adjusted net group debt (2)	(366.4)	(388.4)	5.7
Basic earnings per share (3)	29.9p	24.8p	20.6
Full year dividend per share Free cashflow (4) Return on invested capital	15.0p 69.7 17.9%	12.6p 66.2 16.3%	19.0 5.3 160bps

Financial Highlights:

●	Group revenue growth of 5.6%;

●	Group operating profit margin improvement of 80 basis points;

●	EPS growth of 20.6% to 29.9p;

●	Free cashflow up 5.3% to £69.7m;

●	Final dividend per share up 23.9% to 10.9p;

●	Adjusted net debt to EBITDA of 2.4x, down from 2.7x in 2008 and 3.2x in 2007;

●	Agreement with investors in the US private-placement market for the issuance of a further $250m, subject to documentation and due diligence, in order to rebalance the group's debt structure;

●	Return on Invested Capital of 17.9%, up from 16.3% in 2008;

●	GB & International revenue growth of 8.7%;

●	GB & International operating profit margin improvement of 110 basis points;

●	Britvic Ireland delivers cumulative synergies of €15.3m in line with guidance.

Business Highlights:

●	In GB, we continued to outperform the soft drinks market in all key categories with volume and value share gains by each of our six core brands, namely Pepsi, 7Up, Tango, Robinsons, J2O and Fruit Shoot;

●	Strong through-the-line execution and brand-equity programmes, as well as a successful new product launch programme, which focused on brand extensions and driving pack mix within the existing portfolio;

●	A further addition to our brand portfolio in conjunction with PepsiCo, this time cover Lipton Ice Tea;;

●	Right-sizing of Britvic Ireland's infrastructure leads to cumulative synergies of €27m by the end of 2011 as per guidance..

Margin Enhancement:

●	GB & International have delivered a 170 basis-point improvement in operating profit margin since 2006;

●	Guidance is now upgraded to an average annual group margin increase of 50 basis points each year to 2013.

The Board is proposing a final dividend per share of 10.9p bringing the full year dividend per share to 15.0p, an increase of 19.0% on the prior year. This reflects the two-times dividend-cover policy, the Board's continuing confidence in the future prospects of the business and the underlying cash-generative nature of its activities.

Paul Moody, Chief Executive commented:

"Britvic's very strong performance has delivered double-digit operating profit and earnings growth. The GB & International business has now achieved eight consecutive quarters of revenue growth since 2006, resulting in revenue CAGR of 6% and operating profit CAGR of 11%.

Over the last year our brands have grown market share across all key categories and our portfolio has been strengthened by successful innovation. We are successfully re-engineering our business in Ireland to take advantage of eventual market recovery, whilst realising expected synergies.

Recent conditions in the GB soft drink market have shown some signs of improvement, although visibility in both GB and Ireland beyond the short term remains limited and we take a cautious view of consumer spending. However, we are encouraged by our strong group performance in the early weeks of the new financial year, building on our track record of top-line, margin and quality earnings growth".

For further information please contact:

Investors:
Craig Marks/Steve Nightingale	+44 (0)1245 504 330
Media:
Tom Buchanan/Giles Croot (Brunswick)	+44 (0)20 7404 5959

There will be a live-webcast of the presentation given today at 11.00am by Paul Moody (Chief Executive) and John Gibney (Group Finance Director). The webcast will be available at www.britvic.com, with a transcript available in due course. There will also be a conference call today at 2.30pm (9.30am Eastern Standard Time) for investors and analysts with an opportunity to ask questions.

UK Access Number

+44 (0)20 8609 0205

UK Toll Free

0800 358 2705

Pin Number

566466#

A recording of the call will be available for seven days.

UK Toll Access Number	+44 (0)20 8609 0289
UK Toll Free Access Number	0800 358 2189
US Toll Free Access Number	+1 866 676 5865
Conference References	276551#

Notes to editors

Britvic is one of the two leading branded soft drinks businesses in the UK and the Republic of Ireland. The Company is the largest supplier of branded still soft drinks in Great Britain, and the number two supplier of branded carbonates. Britvic's broad portfolio of leading brands includes established names with high brand recognition such as Robinsons, Tango, J2O and Fruit Shoot. Included within the portfolio are the PepsiCo brands which Britvic produces, markets, sells and distributes under its exclusive appointments from PepsiCo. This brand and product portfolio enables Britvic to target and satisfy a wide range of consumer demands in all major soft drinks categories, via all available routes to market.

Cautionary note regarding forward-looking statements

This announcement includes statements that are forward-looking in nature. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Except as required by the Listing Rules and applicable law, Britvic undertakes no obligation to update or change any forward-looking statements to reflect events occurring after the date such statements are published.

Reporting Periods

Britvic Ireland reports on a monthly basis in comparison to the rest of the Britvic group of companies which report on thirteen 4-week periods. There are no immediate plans to change this reporting structure.

Market Data

Take-home market data referred to in this announcement is supplied by AC Nielsen and runs to 26th September 2009.

Britvic Ireland

Please note: Irish volumes and ARP shown throughout this announcement refer only to owned brands. Revenue also includes that derived from the sale of third-party brands within the licensed & wholesale division.

Definitions

(1)	EBITDA is defined as operating profit before exceptional items, depreciation, amortisation and any impairment of or gain / loss on disposal of fixed assets.

(2)	Adjusted net debt is defined as net group debt, adding back the foreign exchange impact of derivatives hedging the balance sheet debt.

(3)	Earnings Per Share is based on the number of issued shares excluding any own shares held by Britvic that are used to satisfy various employee share-based incentive programmes. For the financial year 2009, this number of available shares was 214.9m. For the financial year 2008, this number of shares was 214.0m shares.

(4)	Free cashflow is defined as net cashflow excluding movements in borrowings, dividend payments and exceptional items.

(5)	Return on invested capital (ROIC) - ROIC is a performance indicator used by Management and defined as operating profit after tax before exceptional items as a percentage of invested capital. Invested capital is defined as non-current assets plus current assets less current liabilities, excluding all balances relating to interest bearing liabilities and all other assets or liabilities associated with the financing and capital structure of the group and excluding any deferred tax balances and effective hedges relating to interest-bearing liabilities. Our previous definition of ROIC included within assets the impact of cross currency interest rate swaps. This has now been adjusted to align with our adjusted net debt definition, giving a more accurate reflection of the true position. This change does not significantly impact on the trends we have seen previously.

All numbers in this announcement other than where stated or included within the financial statements are disclosed before exceptional items.

This is not intended to be the group's full annual report.

The auditors have reported on the 2009 and 2008 accounts. Their reports for both years were unqualified and did not contain statements under section 237 (2) or (3) of the Companies Act 1985 or section 498 (2) or (3) of the Companies Act 2006.

Business Review

Chief executive's review

In the 52 weeks ended 27th September 2009, Britvic's GB brands have again performed extremely well, growing in revenue and taking both volume and value share in key categories. This is despite the small decline in the soft drinks market, driven by subdued consumer confidence. The GB & International businesses underpinned the performance of the group, with revenue growth of 8.7% to £789.3m. Poor local trading conditions drove a 5.6% revenue decline in Ireland, though the strength of the GB & International businesses delivered total group revenue of £978.8m, up by 5.6% on the prior year.

We have continued to deliver on our point-of-purchase and innovation strategies, delivering another healthy top line whilst maintaining our proactive focus on the cost base. Group operating profit before exceptional items is up 13.9% while profit after tax (PAT) and basic earnings per share (EPS) are both up by more than 20%. These strong results build on our strong and accelerating track record, ensuring repeated delivery of shareholder returns.

Free cashflow was £69.7m, £3.5m ahead of the prior year number, driven by the ongoing focus on disciplined cash and capital expenditure management. Return on Invested Capital (ROIC) including Britvic Ireland has increased by 160 basis points reflecting the strong management of the group's asset and cost base. The Board is proposing a final dividend per share of 10.9p bringing the full year dividend per share to 15.0p, an increase of 19.0% on the prior year.

The GB Take-Home Soft-Drinks Market

Though relatively resilient, the soft drinks market has not been immune to the slowdown in consumer spending in 2009, with a 0.9% decline in volume over the period.

The move out of carbonates by the UK consumer experienced in 2006 was again countered in 2009 by the ongoing gradual return into carbonates by consumers taking a rational and balanced approach to their soft-drinks repertoire. This was accentuated by consumers looking for enhanced-value propositions, particularly in large-pack carbonates and resulted in the carbonates market increasing in volume terms by 0.8%, driven by the cola and glucose/stimulant categories. Every carbonates category showed value growth in the period.

The stills category declined by 2.5% this year. Notable sub-categories in material decline were smoothies and pure juice. However, there was substantial volume growth within the water plus and dairy categories, and value growth within squash. Plain water also recovered to only a minor decline in the year, with strong growth in the last quarter.

The GB Licensed On-Premise Soft-Drinks Market

The GB Licensed On-Premise soft-drinks market experienced a volume decline of 1.9% for the year to September 2009, though the most recent quarter encouragingly saw a 0.6% volume increase. However, given the pressures within the overall Licensed On-Premise market, we remain cautious on the prospects for a fuller and sustained recovery in the channel.

GB Brand Performance

Against this general background, Britvic has again outperformed the market in its key categories during the period, with Britvic's GB stills volumes up 3.6% and GB carbonates volumes up 7.9%. A description of the performance of some of the core brands is shown below:

●	The cola market was up by 3.3% by volume and up 3.5% in value. Pepsi outperformed this with a 0.7 percentage point increase in market volume share and a 0.5 percentage point increase in market value share.

●	The squash market was down 3.1% by volume and up 5.6% in value. Market volumes remain subdued due to the increasing preponderance for own-label squash to be sold in 'double-concentrate' form. Robinsons squash outperformed the market again with a 0.7 percentage point increase in market volume share and a 0.2 percentage point increase in market value share.

●	The fruit carbonates market was down by 2.3% by volume and up 1.8% in value. 7Up outperformed this with a 0.7 percentage point increase in market value share. Tango also benefited from its award-winning campaign with 0.7 percentage point increase in market volume share and a 0.3 percentage point increase in market value share.

Corporate Responsibility

Our Corporate Responsibility programme has been further developed in the past year and we have developed a revised vision - progressive brands, responsible business, dedicated people - that reflects our values as a business and is underpinned by four strategic goals that address the most pressing sustainability issues facing Britvic. Environmental performance is a key part of this programme and we continue to build our positive track record. For example, we have achieved year on year reductions in energy and water use (per litre produced), all GB manufacturing sites now operate Environmental Management Systems to ISO 14000, and packaging optimisation remains a priority, such as the light-weighting of our J2O bottles, saving 4,000 tonnes of glass per year. Further details of the Britvic Corporate Responsibility Programme are provided later in this statement.

Britvic's strategy

Management action has focused on five main areas:

1.	Supporting and growing our core brand

Britvic GB's six core brands are Pepsi, 7Up, Robinsons squash, Tango, Fruit Shoot and J2O. They are the key profit drivers of our current GB business and therefore the brands to which we allocate greatest resource. Other supporting brands help to leverage customer relationships with scale and account wins. We continue to invest in our strong total portfolio of brands through both innovation and media, to ensure that they are preferred by consumers. Examples of our successful core GB brand performances are shown below:

The Pepsi brand has continued its volume and value share gains of the cola market, an increase of 0.7 and 0.5 percentage points on last year respectively. The success enjoyed by the brand in the period reflects repeated strong promotional execution across all key customers and the highly successful 'Max-It-For-A-Million' and 'Comes-With-Music' campaigns that, in conjunction with the increased in-store distribution from the successful investment in trade-ready display units has led to real sucess for the brand again this year. The growth in market share was also achieved against a background of increased competitor activity this summer, though our promotion management meant no adverse impact on our own ARP, despite our continually-growing presence in the discounters sector. Our close working relationship with the brand owner, PepsiCo, has been instrumental in achieving this performance.

Robinsons squash has consolidated its number one position further with volume and value share gains in the squash market, an increase of 0.7 and 0.2 percentage points on last year respectively. Robinsons' best ever Wimbledon, plus excellent brand equity programmes and in-store execution mean that the brand goes from strength to strength as the 10th most valued grocery brand within the GB take-home market. Innovation in the form of 'Robinsons Be Natural', plus brand-equity programmes such as the sponsorship of British pantomimes during Christmas 2009, mean that further share gains are well within our grasp.

2.	Innovating / Developing new products

The focus of this year's innovation programme in GB was brand extensions and new packaging concepts and flavours to continually match consumer needs and drive an increase in ARP as well as margin for both Britvic and the retailer.

All launches are performing in line with our expectations. The two major new innovation launches this year were Juicy Drench and Robinsons Be Natural. Packaging also plays a significant part of the innovation and product launch programme, with ARP and margin-enhancing new SKUs including:

●	J2O mixers in the Licensed On-Premise channel;

●	250ml multipacks and 1 litre packs for core brands such as Pepsi;

●	Pepsi Raw into single-serve can within the Impulse channel, as well as four-pack glass in take-home grocery.

New pack designs for J2O, Pepsi, 7Up, Fruit Shoot and Tango drove material consumer engagement this year, and these successful initiatives helped build both momentum and Britvic's record of great brand management.

To illustate the success of this year's innovation & product launch progarmme, all three Juicy Drench SKUs now reside in the top 10 best selling juice drinks in Impulse (Source: AC Nielsen, 12 weeks to w/e 17.10.09).

Britvic signed a further Exclusive Bottling Agreement ("EBA") in Great Britain with PepsiCo covering the Lipton Ice Tea brand. Cold/Hot drinks is one of the world's largest soft-drink categories, and is another example of a catgeory which Britvic can take the lead in building within GB in the medium term.

3.	Managing efficiency - improving margins and free cash flow

Against the background of the tough cost environment, we continue to drive costs out of the business.

We have repeated the success of the Product Value Optimisation (PVO) programme, delivering a further £2m of savings in the year in GB, in additon to the £2m delivered in each of 2006, 2007 and 2008. We anticipate delivering a further £2m incremental saving in the 2010 financial year.

Added to this we realised the final incremental annualised savings as a consequence of the outsourcing of the secondary distribution network and vending and chiller re-manufacturing operations outlined in March 2008. We have also realised some of the benefits of the business review in GB and most notably in Ireland, delivering group savings of around £3m this year.

4.	Britvic Ireland

In the extremely challenging macro-economic environment, the Irish soft drinks market shows no indication of a return to growth in the short term. ROI grocery market volumes are down 5% in the year, whilst the Licensed On-Premise market is down 19% in the year to August.

Despite the trading conditions, Britvic Ireland continues to deliver on a synergy programme that was enhanced during the year. Total achieved cumulative synergies to date now amount to €15.3m, with further planned synergies of over €9m coming in 2010 and €2.0m in 2011. These already-guided synergy gains are primarily a result of:

●	The implementation of our Business Transformation Programme, begun during the first half of the 2009 financial year;

●	The outcome of the January 2009 business review, which restructured and right-sized operations on the island of Ireland. The measures were designed to underpin sustainable business growth and enhance group integration.

The business fundamentals remain strong:

●	No. 1 in the Licensed On-Premise market (now >40% volume share) and No. 2 in the ROI Grocery market

●	Alignment of business model and systems with Britvic GB from the implementation of the Business Transformation Programme

●	From January 2009, investment in the Kylemore production facility in Dublin facilitated the production of Robinsons squash for the Irish market for the first time

In a tough Irish market, core brands have played a significant part in the robust performance of the business. 7Up retains its position as the number two soft drinks brand in the market, whilst Pepsi has become the fastest-growing carbonate brand, up 14% in the period, according to Nielsen.

5.	Expansion into Europe

Britvic's European presence centres around Britvic International's main focus of export into the Netherlands and Scandinavia. Our International division delivered another strong performance of 18.5% revenue growth, despite a backdrop of significant double-digit decline in the euro-flight travel sector and traditional tourist markets. The performance was driven by strong in-market activity in Holland where we delivered our highest ever market shares during the summer, strong Robinsons squash activity in the Nordics, and the launch of Fruit Shoot in Sweden in August. In addition we saw volumes materialising from new travel contracts in the airline and shipping sectors, and rapid growth in some new, though opportunistic, export markets such as Turkey and Bulgaria.

Britvic International continues to look at opportunities to further establish Britvic's international presence. Aside from traditional sales into the travel industry and via export, the business remains focused on developing its licensing and franchising arm through brands such as Fruit Shoot and Robinsons. As an example of this strategic intention, the sale of Fruit Shoot in the southern United States through Buffalo Rock continues to meet expectations, albeit within the depressed convenience & gas channel.

Medium-Term Revenue Growth Drivers

Given the strong track record of growth, it is worth noting a number of previous revenue drivers that are likely to continue driving the top-line over the medium to long term:

Britvic intends to grow within GB, Ireland, as well as internationally:

· In GB, the drivers of future growth will to be:

1.	Market volume growth
	Estimated by Britvic to average 2-3% per year in the medium and long term. We expect this growth will marginally be led by the stills category as consumers renew their focus on health, wellbeing and a 'natural' agenda. Per capita consumption of purchased soft drinks will be in turn driven by:

●

Cohorting

Younger generations drink more purchased soft drinks and less tea, coffee, alcohol, dairy drinks and tap water than previous generations;

●

Population Growth

Over the next 20-25 years, the British population is expected to reach 70m from the current population of around 60m;

●

Continuing Trends

According to Canadean, per-capita soft-drink consumption continues to increase. This is against 10-year declines of 2% for dairy drinks,, 4% for hot drinks, and 8% for alcoholic drinks.

2.	Innovation
	Typically adds 1.0-2.0% to Britvic GB's revenue line in a full year;

3.	ARP Growth
	Derived from promotional management, product/channel mix and headline price increases;
4.	Distribution Opportunities
	Britvic does not yet have anywhere near-ubiquitous distribution within the GB soft drinks market and particularly under-trades in attractive routes to market such as Convenience, Impulse and Leisure/Catering. With Britvic's balanced and extensive brand portfolio, as well as market-leading consumer insight, there are significant opportunities for GB growth over the medium to long term within other channels.

●	In Ireland, the structure of the business is now appropriate for a resized soft-drinks market. Commanding presence in routes to market such as Licensed On-Premise is juxtaposed with significant opportunities in other channels. Category gaps also provide room for material growth, and a strong brand portfolio can only benefit from potential innovation and product launches of GB, PepsiCo and Ireland-specific brands and products. While the soft-drinks market remains challenged in the near term, group-wide systems, processes and infrastructure will keep the synergy programme on track and give Britvic Ireland the right platform to grow when conditions ease.

●	Internationally, Britvic is focused on two main routes to build its global presence:

	o	Through the already-successful Britvic International business that not only concentrates on export and the travel industry, but is also exploring ways to extend the availability of Britvic's wholly-owned brands worldwide through licensing and franchising arrangements;

	o	Through European acquisition of soft-drink businesses and assets in order to drive Britvic's current portfolio and unlock material cost synergies and revenue opportunities across the Continent.

By concentrating on brand management purely within the soft drinks category, a clear growth strategy has led to a material track record of growth that positions us well for longer-term prospects.

Summary

We have grown market share and revenue across all of the categories with a strong performance from both our core and seed brands, despite continued difficult trading conditions.

Our robust top-line performance has again translated into double-digit operating-profit and earnings growth, with another material increase in operating-profit margins. Revenue growth will continue to be driven by an expanding market, successful innovation, management of ARP, as well as significant distribution opportunities. Indeed, our GB & International operating-profit margin increase of 170 basis points over the last three years gives us the confidence required to enhance our margin guidance, given the strength of our delivery to date.

Together with cost reduction and operating leverage, Britvic is better-equipped to anticipate and react to competitor activity, and we are therefore well-placed to build on our successful track record in the short, medium and long term.

Financial Review

The following discussion is based on Britvic's results for the 52 weeks ended 27th September 2009 ("the period") compared with the same period last year, and all numbers exclude exceptional items.

Key performance indicators

The principal key performance indicators that Management uses to assess the performance of the group in addition to income statement measures of performance are as follows:

●	Volume growth - increase in number of litres sold by the group relative to prior period.

●	Average Realised Price (ARP) - average revenue per litre sold.

●	Revenue growth - increase in sales achieved by the group relative to prior period.

●	Brand contribution margin - revenue less material costs and all other marginal costs that Management considers to be directly attributable to the sale of a given product, divided by revenue. Such costs include brand specific advertising and promotion costs, raw materials, and marginal production and distribution costs. Management uses the brand contribution margin to analyse Britvic's financial performance, because it provides a measure of contribution at brand level.

●	Operating profit margin - operating profit before exceptional items and before the deduction of interest and taxation divided by revenue.

●	Free cashflow - net cash flow excluding movements in borrowings, dividend payments and non cash exceptional items.

●	Return on invested capital (ROIC) - ROIC is a performance indicator used by Management and defined as operating profit after tax before exceptional items as a percentage of invested capital. Invested capital is defined as non-current assets plus current assets less current liabilities, excluding all balances relating to interest bearing liabilities and all other assets or liabilities associated with the financing and capital structure of the group and excluding any deferred tax balances and effective hedges relating to interest-bearing liabilities. Our previous definition of ROIC included within assets the impact of cross currency interest rate swaps. This has now been adjusted to align with our adjusted net debt definition, giving a more accurate reflection of the true position. This change does not significantly impact on the trends we have seen previously.

Overview

In the period Britvic outperformed the UK soft drinks market in its key categories and channels with strong revenue growth of 5.6% to £978.8m, driven by a volume increase of 3.9% to 1.7bn litres and an ARP increase of 2.9% to 53.2p. GB & International revenue growth was 8.7% to £789.3m with volumes up 6.5%.

Operating profit before exceptional items for the period was up 13.9% to £110.1m with group operating profit margin up 0.8%. GB & International operating profit was up 19.4% at £97.9m with operating profit margin up to 12.4%, increasing strongly by 110 basis points on the prior year. This takes the GB & International operating profit margin increase over the last three years to 170 basis points. Pre-exceptional Profit After Tax for the 2009 period was £64.2m, up 21.1% on the prior period.

GB Stills	52 weeks ended 27 Sep 2009 £m	52 weeks ended 28 Sep 2008 £m	% change
Volume (millions litres)	496.8	479.6	3.6
ARP per litre	70.5p	69.1p	2.0
Revenue	350.2	331.4	5.7
Brand contribution	156.5	146.7	6.7
Brand contribution margin	44.7%	44.3%	0.4% pts

In stills we have seen an outstanding outperformance against the market across the key categories and channels during the period with revenue growth of 5.7% to £350.2m. Volumes were up 3.6% against a market which was down 2.5%, having been impacted by the recession seen in the UK through most of the year.

This strong performance in Britvic's stills portfolio was driven by:

●	The core brands of Fruit Shoot and Robinsons squash consolidating their positions as market leading brands;

●	J2O taking 3.6% value share in the year in the Take-Home market alone;

●	The major launches of the brand extensions, namely Juicy Drench and Robinsons Be Natural

ARP was up 2.0% with this growth accelerating through the year. This reversal of direction was due to a weak comparable period when consumers moved from the more expensive Licensed On-Premise environment to consuming more soft drinks at home. 2009 also saw the anniversary of the successful launch of lower-than-average priced Drench water, and ARP-accretive innovation launches, and new packs also drove pricing in the year.

Despite a 6.1% increase in direct stills costs and an overall raw material price increase of 4.2%, brand contribution margin increased by 40 basis points due to lower stills A&P compared to the launch-led stronger spend in the previous year.

We continue to minimise both variable and fixed costs using a variety of tools including the PVO programme where product cost is reduced with no detriment to brand quality or equity. PVO saved around £1.0m in 2009 stills, on top of the previous cumulative total across carbonates and stills over 2006-2008 of £6m.

GB Carbonates	52 weeks ended 27 Sep 2009 £m	52 weeks ended 28 Sep 2008 £m	% change
Volume (millions litres)	995.7	922.8	7.9
ARP per litre	41.8p	40.7p	2.7
Revenue	416.7	375.5	11.0
Brand contribution	151.2	143.6	5.3
Brand contribution margin	36.3%	38.2%	(1.9)%pts

Carbonates have delivered an excellent performance over the period with revenue growth of 11.0% to £416.7m. Increasingly effective through-the-line execution and brand-equity programmes have led to double-digit revenue growth this year for each of the core carbonates brands, namely Pepsi, 7Up and Tango brands. Each of these brands increased both volume and value share this year.

ARP was also up by 2.7%, driven mainly by ever-more-effective management of our promotional programmes. Part of this effectiveness has come from improving in-store point of sale delivery.

Brand contribution margin decreased by 1.9%pts. The decrease is mainly a result of the growth of large pack PET and dispense, which have an inherently lower margin. Brand contribution margins were also impacted by the final switch of some fixed costs to variable costs as part of the completion of the outsourcing of the secondary retail distribution network, outlined in March 2008.

Again, we continue to minimise costs using a variety of tools including the PVO programme, which in itself saved around £1.0m in 2009 carbonates on top of the previous cumulative total across carbonates and stills over 2006-2008 of £6m.

International	52 weeks ended 27 Sep 2009 £m	52 weeks ended 28 Sep 2008 £m	% change
Volume (millions litres)	28.8	26.1	10.3
ARP per litre	77.8p	72.4p	7.5
Revenue	22.4	18.9	18.5
Brand contribution	7.6	4.9	55.1
Brand contribution margin	33.9%	25.9%	8.0%pts

Our International division delivered another strong performance of 18.5% revenue growth, despite a backdrop of significant double-digit decline in the euro-flight Travel sector and traditional tourist markets. The performance was driven by strong in-market activity in Holland where we delivered our highest ever market shares during the summer, strong Robinsons squash activity in the Nordics, and the launch of Fruit Shoot in Sweden in August.

In addition we saw volumes materialising from new travel contracts in the airline and shipping sectors, and rapid growth in some new, though opportunistic, export markets such as Turkey and Bulgaria. In addition to the flow-through from the volume and ARP growth, the stark increase in brand contribution has come as a result of lower A&P spend in the Nordics due to the Robinsons brand now establishing itself in the region.

Ireland (GBP)	52 weeks ended 27 Sep 2009 £m	52 weeks ended 28 Sep 2008 £m	% change
Volume (millions litres)	226.1	253.1	(10.7)
ARP per litre	62.2p	56.9p	9.3
Total Revenue	189.5	200.7	(5.6)
Brand contribution	70.8	70.2	0.9
Brand contribution margin	37.4%	35.0%	2.4%pts
EBIT	12.2	14.7	(17.0)
EBIT margin	6.4%	7.3%	(0.9)%pts

Ireland (Euros)	52 weeks ended 27 Sep 2009 €m	52 weeks ended 28 Sep 2008 €m	% change
Volume (millions litres)	226.1	253.1	(10.7)
ARP per litre	71.6c	74.3c	(3.6)
Total Revenue	218.1	262.3	(16.9)
Brand contribution	81.5	91.8	(11.2)
Brand contribution margin	37.4%	35.0%	2.4%pts
EBIT	14.0	19.0	(26.3.)
EBIT margin	6.4%	7.2%	(0.8)%pts

Note: Volumes and ARP include own-brand soft drinks sales and do not include 3rd-party drink sales included within total revenue and brand contribution. Britvic Ireland shows trading-entity results only and excludes the associated holding company shown in GB.

Britvic Ireland was challenged by the severe declines in the Irish soft drinks market, seen most notably with the Licensed On-Premise channel, where Britvic Ireland now has over a 40% share. An operating profit of £12.2m was achieved through the cumulative delivery of €15.3m of synergies, which drove a brand contribution margin increase of 240 basis points.

Fixed Costs	52 weeks ended 27 Sep 2009 £m	52 weeks ended 28 Sep 2008 £m	% change
Non-brand A&P	(8.1)	(7.7)	(5.2)
Fixed supply chain	(87.1)	(92.9)	6.2
Selling costs	(102.5)	(101.5)	(1.0)
Overheads and other	(78.3)	(66.6)	(17.6)

Total	(276.0)	(268.7)	(2.7)

Total A&P spend	(52.5)	(54.6)	3.8
A&P as a % of net revenue	5.6%	6.3%	(0.7)%pts

The group's A&P spend was 5.6% of branded revenue (5.7% in GB & International). The reduction was driven by Britvic taking advantage of lower media rates and a higher proportion of activity through less expensive advertising media such as digital and viral marketing. Share of voice increased in the year as Britvic led with major brand equity programmes across not just its six core brands, but with also with seed brands such as Drench and Gatorade. The spend shown does not include that of PepsiCo on their brands franchised with Britvic.

The reduction in fixed supply chain costs of around £6m is due to the completion of the outsourcing of the secondary distribution network, outlined in March 2008, where related fixed supply chain costs are now treated as variable costs. Additionally, the depreciation shown within fixed supply chain costs has declined due to the expiry of the depreciation of the Business Transformation Programme in GB.

Overall therefore, we have maintained very strong and disciplined control over our cost base in response to challenging trading conditions.

Overheads have increased by around £12m, being primarily driven by an increase in performance-related employee bonuses. In addition, we have invested further into the GB business as part of the group restructuring announced earlier in the year, designed to build group capability in line with our expansion plans. There is also a foreign exchange impact, relating to both currency balances in GB and the increased sterling costs on translating flows derived from the Irish business.

Exceptional items

During the period, Britvic incurred pre-tax exceptional operating costs and profits which netted to £20.3m in total. The main elements of this comprised:

Cash items of £12.9m were mainly related to group and business-unit restructuring costs as part of the group business review announced on 23rd January 2009.

Non-cash items of £7.4m primarily relate to onerous leases and the impairment of properties relating to the closure of three sites in the Britvic Ireland business.

Interest

The net finance charge before exceptional items for the period for the group was £23.6m compared with £26.6m in the same period in the prior year. The reduction was for two reasons, namely lower debt balances compared to the previous year, closing adjusted net debt is down by £22.0m, as well as a lower weighted average interest rate, down by nearly 100 basis points to below 5%. The fall in LIBOR and EURIBOR more than compensated for the higher margin paid on refinanced bank facilities secured during the period.

Taxation

The tax charge of £22.3m before exceptional items represents an effective tax charge of 25.8%. The effective tax rate as reported in the accounts for the previous year was 24.4%. Including the effect of exceptional items, the effective tax rate was 29.3%, which is lower than last year's rate of 38.6% as 2008 saw the one-off impact from the abolishment of IBAs.

Earnings per share

Basic EPS for the period, excluding exceptional items, was 29.9p, up 20.6% on the same period last year of 24.8p. Basic EPS (after exceptional items) for the period was 21.8p compared with 14.9p for the same period last year.

Dividends

The Board is recommending a final dividend for 2009 of 10.9p per share. Together with the interim dividend of 4.1p per share paid on 3rd July 2009, this gives a total dividend for the year of 15.0p per share, an increase of 19.0% on the dividend paid last year. Subject to approval at the AGM, the total cost of the dividend for the financial year will be £32.3m and the final dividend will be paid on 12th February 2010 to shareholders on record as at 4th December 2009.

Cash flow and net debt

Free cash flow was £69.7m, £3.5m ahead of the prior year number, driven by a continued focus on cash and capital expenditure management. Additional contributions were made to the defined benefit pension scheme of £10.0m in the year as part of the ongoing programme agreed with trustees. At 27th September 2009, the group's net debt was £411m compared to £401.4m at 28th September 2008 impacted by an £45.4m adverse movement due to the revaluation of foreign currency-denominated debt. However, this accounting treatment is offset to the tune of £31.6m due to the effective hedging in place on our US-dollar denominated debt. In addition, the majority of the remainder of the adverse movement relates to euro-denominated borrowings which act as a net investment hedge against our euro-investment in Britvic Ireland. The adjusted net debt (taking into account the foreign exchange movements on the derivatives hedging our US Private Placement debt) at 27th September 2009 is £366.4m.

Capital employed

Non-current assets increased in the year from £519.1m to £576.1m due in the main to the retranslation of euro-based intangible assets recognised on the acquisition of Britvic Ireland and the fair value of derivatives.

Depreciation decreased in the year by £5.3m to £30.1m. The reduction on the prior year reflects the level of disposals made in the year and older assets reaching the end of their economic life.

Current assets also increased from £216.3m to £272.3m.

At the same time current liabilities increased from £266.5m to £303.3m driven principally by an increase in trade and other payables.

ROIC, including Britvic Ireland, has improved to 17.9% from 16.3% in 2008 reflecting the continued focus on costs, cash flow and the proactive management of the group's asset base.

Share price and market capitalisation

At 27th September 2009 the closing share price for Britvic plc was 352p. The Group is a member of the FTSE 250 index with a market capitalisation of approximately £764m at the period end.

Treasury management

The financial risks faced by the group are identified and managed by a central Treasury department. The activities of the Treasury department are carried out in accordance with Board approved policies and are subject to regular audit and Treasury Committee reviews. The department does not operate as a profit centre.

Key financial risks faced by the group include exposures to movement in:

●	Interest rates
●	Foreign exchange
●	Commodity prices.

The Treasury department is also responsible for the management of the group's debt & liquidity, currency risk and cash management.

The group uses financial instruments to hedge against interest rate and foreign currency exposures in line with policies set by the Treasury department and approved by the Board of Directors. No derivative is entered into for trading or speculative purposes.

At 27 September 2009, the group's net debt of £411.0m consisted of £180.2m drawn under the Group's committed bank facility and £274.6m of private placement notes. This was netted off with around £39.7m of surplus cash and £4.1m of issue costs of loans.

In November 2009, the Company reached agreement with a number of investors in the U.S. private placement market to raise an additional $250m of funding for terms of between 5-years and 10-years. This funding is subject to documentation and due diligence which is scheduled to be completed in December 2009. This dollar funding is hedged using cross currency interest rate swaps to meet the Company's desired funding profile and to remove any associated foreign currency risk from the P&L.

Pensions

The principal group pension scheme, the Britvic Pension Plan (BPP), has both a defined benefit and a defined contribution section. The defined benefit section of the BPP was closed on 1 August 2002, and since this date new employees have been eligible to join the defined contribution section of the BPP. The latest formal actuarial valuation for contribution purposes was carried out as at 31 March 2007. The amount recognised as an expense in relation to the BPP defined contribution scheme in the income statement for 2009 was £2.9m (2008: £2.0m).

As a result of the acquisition of Britvic Ireland on 29 August 2007, in Northern Ireland the Group inherited a further pension scheme in which its employees participated, the C&C Pension Fund. The name of this scheme has subsequently been changed to the Britvic Northern Ireland Pension Plan (BNIPP), with employees of C&C Group transferring out on 30 June 2008. The BNIPP was closed to new members on 28 February 2006, and since this date new employees have been eligible to join a Stakeholder plan with Legal & General. An actuarial valuation was carried out on 31 December 2008, and is still being finalised.

The amount recognised as an expense in relation to the Irish defined contribution schemes in the Income Statement for 2009 was £0.3m (2008: £0.1m).

Corporate Responsibility

In May of this year we published our second Corporate Responsibility Report demonstrating our achievements in 2008/09 and highlighting our future plans for 2009/10. We have continued to make good progress in the six months that have passed; testimony to the commitment of the business as a whole and our individual employees to drive forward on this important agenda.

Our Strategy

Our vision for CR - progressive brands, responsible business, dedicated people - reflects our values as a business and is underpinned by four strategic goals, that reflect the most pressing sustainability issues facing Britvic.

Optimising the environmental performance of our packaging

We work hard to reduce the environmental impact of our packaging whilst maintaining stringent quality standards. Our packaging strategy focuses on minimising waste, using recycled materials and supporting recycling.

We have removed 11,000 tonnes per year from our total packaging waste. This year we have already beaten our target of reducing a further 5000 tonnes of packaging by December 2010, totaling 8000 tonnes reduced so far. This was achieved through, removing 4000 tonnes of glass from our J2O bottle - a 20g reduction in weight and the equivalent to 20 million bottles of J2O a year. These reductions have also led to improvements in filling line efficiencies, energy savings of around 10% and the lighter bottles require less fuel to transport too. We will continue our important work in this area further reducing our impacts on the environment.

In May, we announced plans to complete an rPET trial using UK-only recycled content. Initial bottle-manufacturing trials have taken place and further refinement is required. Our target to achieve over 10% UK only rPET average content across all our GB manufactured brands by December 2012 is well under way and could be delivered as early as December 2010.

We are continuing to roll out the easy to understand 'Recycle Now' across all our packs, to help consumers improve their understanding of which packaging can be recycled and to encourage them to recycle more.

We were the first soft drinks company to sign up to WRAP and our post-2010 targets will focus on carbon footprint, for which rPET will have a significant impact.

Increasing the efficiency of our operations

In the past year, we have strengthened our commitments to the environment in a number of areas and our full environment policy is available via our corporate website.

We have continued to deliver a strong performance against our targets, continually driving improvements.

Targets	2009 Target	2009 Result	2008 Result
Energy kWh per tonne produced	-2%	-9.2%	-1.5%
* Effluent M3 per tonne produced	-2%	+2.5%	-15.8%
Water M3 per tonne produced	-2%	-4.1%	-3.6%
Landfill solid waste Kg per tonne produced	-7%	-23.5%	-19.5%
Accidents frequency rate Per 100,000 hours worked	-10%	-44.5%	-23.2%

NB:

●	Since reporting last year we have discovered a calibration issue with our meter readings, which over- stated our 2008 result.

●	These figures are in line with the Climate Change Levy.

We are proud of these achievements and some of the work that has gone in at our sites to ensure their success, including power factor correction at both our Rugby and Huddersfield sites, numerous lighting reduction projects, involving the removal of unnecessary lighting and installing movement sensors and our drive on recycling found a solution for plastic cups meaning a reduction of one landfill skip collection per week.

We remain fully committed and on course to deliver our future goals, which include a 20% reduction in CO2 emissions by 2010 compared to 1990 (by tonne of product) and a 20% water reduction by 2020 compared to 2007. By January 2010 all our single door chillers will be Hyrdocarbon (HCO) and by mid 2010 our double door and the rest of our range will follow. We have also been trialing EMS (energy management system) plugs in pilot on-premise accounts and are expecting successful results.

Support our local and global communities

We are committed to supporting the communities in which we operate and we do this locally via our community investment programme and globally by committing to high ethical standards throughout our supply chain. Both our community investment and our ethical trading policies are available via our website.

Our charitable giving has grown by 400% since 2006 when we joined the London Benchmarking Group and we are committed to increasing this investment over the next three years through relationships with a number of charitable partners as well as supporting employee fundraising and volunteering. In the past year we have donated the equivalent of £415,000 to charitable organisations, through a combination of funding and in-kind donations. Many of our employees donate via volunteering and giving up their time to their local communities and our IT department made a huge commitment recently at Shire Country Park in Solihull, constructing 286 metres of footpaths and helping the Rangers get the park fit for winter. Our brands too have invested in community projects such as Robinsons Be Natural support of the Woodland Trust offering a number of free memberships to the Woodland Trust Nature Detective Club and raising much needed awareness of their cause.

In terms of our global commitments, since reporting in May the percentage of direct suppliers (those that supply either ingredients or packaging) who have signed up to our ethical trading policy, has increased from 95% to 97% and we remain committed to achieving full compliance by December 2010.

We are also investigating and evaluating accreditation options for our fruit sourcing and conducting a number of audits in those countries we have identified as higher risk in order to make continuous improvements. We have also started work on our indirect supply chain (all other suppliers) in order to gain compliance with our ethical trading policy.

Supporting healthy lifestyles and employee wellbeing

Health and wellbeing continues to be a significant public issue and we want to continue to support both our consumers and our employees to lead healthy, balanced lifestyles.

In the past year we have re-launched Fruit Shoot NAS as Low Sugar following consumer feedback and to help make the differences between the Fruit Shoot variants easier to understand. We launched Robinsons Be Natural containing only naturally sourced ingredients and free from artificial colours, flavours, sweeteners and preservatives. In addition we have promoted active and healthy lifestyle programmes through brand activity such as Gatorade's support for the triathlon and Robinsons' association with the Wimbledon Championships. Fruit Shoot launched a campaign encouraging 8 year olds to learn and practice fun mental and physical new skills and brought this to life via a new factual entertainment programme for kids called 'Skillicious.' Our in-house Nutritionist has worked with Robinsons and NetMums to provide regular on line information on healthy drinking for young children.

Our employee policies are available via our website and are designed to support and develop employees and promote flexibility for all. Recognising that this is particularly important to those with parental and caring challenges this year we increased both our paternity leave and the number of additional holidays available via our benefits programme.

Going forward we have started exploring a range of healthy lifestyle initiatives through Business4Life - a coalition of industry partners supporting the government's Change4Life programme. We have already supported a 'play4life' initiative with the Play Providers Association and funded 30,000 frisbees encouraging children to get active via play. We have also funded research into MEND's (Mind, Exercise, Nutrition Do-it), new 5-7's programme working with families with children who have been identified as overweight or obese.

This year, two of our factory sites were especially recognised for health & safety by certification and awards. We beat our target to reduce accident frequency rates by 10% achieving a result of 44.5% accident reduction across the business. Our Huddersfield site obtained certification to OHSAS 18000 and our Rugby site achieved a British Safety Council International Safety Award and RoSPA Gold Award for Safety.

A strong performance

We have made great strides in many areas of our corporate responsibility programme, but acknowledge there is still more work to be done. It was good to see our progress recognised in the FTSE4Good Index for the second time and we are committed to maintaining this momentum going forward.

Business Resources

Britvic is one of the two leading branded soft drinks businesses in GB and Ireland. It is one of the top two branded soft drinks businesses in the GB take-home channel, is the leading branded soft drinks supplier to the GB licensed on-premise channel and is a significant player with a growing presence in the leisure and catering channel.

The main resources the Group uses to achieve its results are:

●	an extensive and balanced portfolio of stills and carbonates brands, including Robinsons, Pepsi, 7Up, Tango, J2O and Fruit Shoot. The breadth and depth of Britvic's portfolio enables it to target consumer demand across a wide range of consumption occasions, in all the major soft drinks categories and across all relevant routes to market. The strength of Britvic's brand portfolio is underpinned by its consumer insight and product development capability which has consistently enabled it to produce innovative products, packaging formats and promotional activity designed to meet evolving consumer tastes and preferences. Britvic Ireland owns a number of leading brands in the Republic of Ireland and Northern Ireland, including Club, Ballygowan water, Britvic, Cidona, MiWadi, and Energise Sport, as well as the rights to the Pepsi and 7Up brands.

●	a successful long-standing relationship with PepsiCo that resulted in the Exclusive Bottling Agreement (EBA) being renewed in Great Britain in 2003 for a further 15 years, with an extension to 2023 on Admission to the London Stock Exchange. The EBA for Ireland lasts until 2015. This relationship gives Britvic the exclusive right to distribute the Pepsi and 7Up brands in Great Britain and Ireland, access to all new carbonated drinks developed by PepsiCo for distribution in Great Britain and Ireland and, to support the development of its carbonates offering, access to PepsiCo's consumer and customer insight, competitor intelligence, marketing best practice, brand and product development expertise and technological know-how. Britvic has added to its stills portfolio in 2008 with Gatorade and V Water, and in 2009 with Lipton Ice Tea.

●	a strong customer base. In take-home, Britvic's customers include the "Big 4" supermarkets (Tesco, J Sainsbury, Asda and Wm Morrison) together with a number of other important grocery retailers. The group has significant supply arrangements with a number of key players in the GB pub sector and leisure and catering channels. Through Britvic International, the group has built on the success of the Robinsons and Fruit Shoot brands by introducing these products into markets outside GB.

●	Britvic also has a well-invested and flexible production capability and a recently outsourced distribution network that, according to AC Nielsen, enabled its soft drinks to be made available to consumers at over 96% of the points of sale (on a sterling-weighted value basis) in the GB take-home and over 90% of the points of sale of the GB Licensed On-Trade channels in 2009.

Risks and Uncertainties

Risk management process

There is in place an ongoing process for identifying, evaluating and managing the significant risks faced by the group, which has operated throughout the financial year. This process involves a quarterly assessment of functional risk registers, which is then reviewed and signed off by the Group Risk Committee. The group's risk management framework is designed to support this process and is the responsibility of the Group Risk Committee, chaired by the Group Finance Director. The risk framework governs the management and control of both financial and non-financial risks. The adoption of this policy throughout the group enables a consistent approach to the management of risk at both regional and business unit level. The Internal Audit function runs regular workshops throughout the group to ensure a consistent deployment of the framework and test compliance with the policy.

In addition, during the 52 weeks ended 27th September 2009, the Audit Committee this year received:

●	Reports from the Head of Internal Audit and Risk on the work carried out under the annual internal audit plan;

●	Risk management reports, including the status of actions to mitigate major risks and the quantification of selected risks; and

●	Reports from the external Auditors.

Through the monitoring processes set out above, the Board conducted a review of the effectiveness of the system of internal control during the 52 weeks ended 27th September 2009. The system of internal control is designed to manage, rather than eliminate, the risk of failure to achieve business objectives and it must be recognised that it can only provide reasonable and not absolute assurance against material misstatement or loss. In that context, the review, in the opinion of the Board, did not indicate that the system was ineffective or unsatisfactory and the Board is not aware of any change to this status up to the approval of this report.

The group's results of operations could be materially adversely affected by:

Risks relating to the Group

A decline in certain key brands;

A termination or variation of its bottling and distribution arrangements with PepsiCo or an adverse development in the PepsiCo relationship;

The relationship with Pepsi as the UK bottler is key to the long-term success of the business. If the contract is severed, then the business would be under severe financial difficulty;

A further consolidation in the customer base;

Credit risk from companies becoming insolvent with significant debt outstanding;

Any interruption in, or change in the terms of, the group's supply of packaging and raw materials;

Any failure in the processes or the IT systems implemented as part of the Business Transformation Programme;

Any inability to protect the intellectual property rights associated with its current and future brands;

Contamination of raw materials or finished products;

Litigation, complaints or adverse publicity in relation to products;

Loss of key employees;

Any increase in the group's funding needs or obligations in respect of its pension scheme;

The Final Salary Pension schemes are inappropriately managed resulting in significant deficits.;the company would need to fund these deficits;

Any failure or unavailability of the group's operational and IT infrastructure;

Loss or interruption of water supply to factory or part thereof effecting production;

Changes in accounting principles or standards;

An epidemic outbreak causes business interruption;

Any failure of a third party to provide contractual services;

Increased recessionary pressures impact negatively on the banking syndicate leading to reduced facilities and increased costs;

A bank defaulting may lead to inability to retrieve deposits. There may also be significant replacement cost of derivatives and foreign exchange contracts.

Risks relating to the market

A change in consumer preferences, perception and/or spending;

Poor economic conditions and weather;

Potential impact of regulatory developments;

Actions taken by competition authorities or private actions in respect of supply or customer arrangements;

Actions by the group's competitors;

Loss of Britvic's ability to promote either due to better terms offered by competitors or even other non-soft drink promotions.

Risks relating to the Ordinary Shares

There are risks arising out of an investment in Ordinary Shares because of:

Actions by the group's competitors;

US Holders potentially not being able to exercise pre-emptive rights;

Potential share price volatility;

Sterling dividend payments giving rise to currency exposure for investors whose principal currency is not sterling;

PepsiCo's right to terminate the EBAs on a change of control which may affect the ability of a third party to make a general offer for the Ordinary Shares.

Consolidated income statement

For the 52 weeks ended 27 September 2009

52 Weeks

Ended 27 September 2009

52 Weeks

Ended 28 September 2008

		Before exceptional items	Exceptional items*	Total	Before exceptional items	Exceptional items*	Total
	Note	£m	£m	£m	£m	£m	£m
Revenue		978.8	-	978.8	926.5	-	926.5
Cost of sales		(450.9)	-	(450.9)	(426.1)	-	(426.1)
Gross profit		527.9	-	527.9	500.4	-	500.4
Selling and distribution costs		(294.3)	-	(294.3)	(290.8)	-	(290.8)
Administration expenses		(123.5)	(20.3)	(143.8)	(112.9)	(18.3)	(131.2)
Operating profit / (loss)	6	110.1	(20.3)	89.8	96.7	(18.3)	78.4
Finance revenue	9	-	-	-	0.4	-	0.4
Finance costs	9	(23.6)	-	(23.6)	(27.0)	-	(27.0)
Profit/(loss) before tax		86.5	(20.3)	66.2	70.1	(18.3)	51.8
Taxation	10	(22.3)	2.9	(19.4)	(17.1)	(2.9)	(20.0)
Profit/(loss) for the period attributable to the equity shareholders		64.2	(17.4)	46.8	53.0	(21.2)	31.8
Earnings per share
Basic earnings per share	11	29.9p	(8.1p)	21.8p	24.8p	(9.9p)	14.9p
Diluted earnings per share	11	29.1p	(7.9p)	21.2p	24.3p	(9.7p)	14.6p
* See note 5

All activities relate to continuing operations

Consolidated balance sheet
At 27 September 2009
		2009	2008
	Note	£m	£m
Assets
Non-current assets
Property, plant and equipment	13	226.1	228.1
Intangible assets	14	293.1	263.8
Trade and other receivables	16	2.4	2.4
Other financial assets	27	51.9	22.2
Deferred tax assets	10d	2.6	2.6
		576.1	519.1
Current assets
Trade and other receivables	18	177.9	152.7
Inventories	17	52.9	49.4
Other financial assets	27	1.8	0.3
Cash and cash equivalents	19	39.7	13.9
		272.3	216.3

Non-current assets held for sale	20	5.1	5.9
Total assets		853.5	741.3

Current liabilities
Trade and other payables	25	(291.6)	(244.3)
Interest bearing loans and borrowings	23	-	(11.6)
Other financial liabilities	27	(0.4)	(1.0)
Current income tax payable		(11.3)	(9.6)
		(303.3)	(266.5)
Non-current liabilities
Interest bearing loans and borrowings	23	(450.7)	(402.7)
Deferred tax liabilities	10d	(16.9)	(37.7)
Pension liability	24	(85.1)	(23.9)
Other non-current liabilities	28	-	(1.2)
		(552.7)	(465.5)
Total liabilities		(856.0)	(732.0)
Net assets		(2.5)	9.3

Capital and reserves
Issued share capital	21	43.4	43.2
Share premium	22	5.0	2.5
Own shares	22	(4.6)	(7.9)
Share scheme reserve	22	7.3	7.3
Hedging reserve	22	6.2	7.0
Translation reserve	22	34.3	17.2
Retained earnings	22	(94.1)	(60.0)
Total equity		(2.5)	9.3

Consolidated statement of cash flows
For the 52 weeks ended 27 September 2009
		2009	2008
	Note	£m	£m

Cash flows from operating activities
Profit before tax		66.2	51.8
Net finance costs	9	23.6	26.6
Impairment of property, plant and equipment		4.2	4.8
Depreciation	13	30.1	35.4
Amortisation	14	8.6	7.2
Share based payments		6.9	7.8
Net pension charge less contributions	24	(13.4)	(12.4)
Increase in inventory		(1.0)	(2.0)
Increase in trade and other receivables		(18.9)	(15.3)
Increase in trade and other payables		41.8	44.4
Loss on disposal of tangible assets		1.7	3.0
Income tax paid		(18.9)	(8.1)
Net cash flows from operating activities		130.9	143.2

Cash flows from investing activities
Proceeds from sale of property, plant and equipment		9.5	6.1
Interest received		-	0.3
Purchases of property, plant and equipment		(38.3)	(45.3)
Purchases of intangible assets		(11.9)	(5.9)
Acquisition of subsidiary net of cash acquired		-	(6.8)
Net cash flows used in investing activities		(40.7)	(51.6)

Cash flows from financing activities
Finance costs		(4.3)	(0.2)
Interest paid		(20.9)	(26.7)
Net interest bearing loans repaid		(7.3)	(45.5)
Purchase of own shares		(3.3)	(8.1)
Dividends paid to equity shareholders	12	(27.8)	(24.7)
Net cash flows from financing activities		(63.6)	(105.2)

Net increase / (decrease) in cash and cash equivalents		26.6	(13.6)
Cash and cash equivalents at beginning of period		12.9	27.3
Exchange rate differences		0.2	(0.8)
Cash and cash equivalents at the end of the period	19	39.7	12.9

Consolidated statement of recognised income and expense
For the 52 weeks ended 27 September 2009
		2009	2008
	Note	£m	£m
Actuarial losses on defined benefit pension scheme	24	(72.0)	(29.9)
Current tax on additional pension contributions	10	2.8	2.9
Deferred tax on movement in pension liabilities	10	16.9	3.6
Movement in cash flow hedges net of deferred tax		(0.8)	5.1
Deferred tax on share options granted to employees	10	1.4	(1.4)
Current tax on share options exercised	10	0.1	0.5
Exchange differences on translation of foreign operations		17.1	14.3
Net expense recognised directly in equity attributable to equity shareholders		(34.5)	(4.9)
Profit for the period attributable to equity shareholders		46.8	31.8
Total recognised income and expense for the period		12.3	26.9

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1.	General information

Britvic plc (the "Company") is a company incorporated in the United Kingdom under the Companies Act 2006. It is a public limited company domiciled in England & Wales and its ordinary shares are traded on the London Stock Exchange. Britvic plc and its subsidiaries (together the "Group") operate in the soft drinks manufacturing and distribution industry, principally in the United Kingdom and Republic of Ireland.

The operating companies of the Group are disclosed within note 32.

The financial statements were authorised for issue by Board of Directors on 24 November 2009.

2.	Statement of compliance

The financial information has been prepared on the basis of applicable International Financial Reporting Standards (IFRS) as adopted by the European Union, as they apply to the financial statements of the Group.

3.	Accounting policies

Basis of preparation

On conversion to IFRS on 3 October 2005, the Group took the following exemptions available under IFRS 1 'First-time Adoption of International Financial Reporting Standards':

a)	Not to restate the comparative information disclosed in the 2005 financial statements (being the financial statements for the 52 weeks ended 2 October 2005) in accordance with IAS 32 'Financial Instruments: Disclosure and Presentation' and IAS 39 'Financial Instruments: Recognition and Measurement'.
b)	Not to restate business combinations occurring before 4 October 2004.
c)	To recognise all actuarial gains and losses on pensions and other post-retirement benefits directly in shareholders' equity at 4 October 2004.
d)	Not to apply IFRS 2 'Share-based Payment' to grants of equity instruments on or before 7 November 2002 that had vested prior to 1 January 2005.

The consolidated financial statements have been prepared on a historical cost basis except where measurement of balances at fair value is required as explained below. The consolidated financial statements are presented in sterling and all values are rounded to the nearest million except where otherwise indicated.

Basis of consolidation

The consolidated financial information incorporates the financial information of Britvic plc and the entities controlled by the Company (its subsidiaries).

The Group financial statements consolidate the accounts of Britvic plc and all its subsidiary undertakings drawn up to 27 September 2009 in accordance with IAS 27 'Consolidated and Separate Financial Statements'.

While the original acquisition of Britannia Soft Drinks Limited was accounted for under the merger method, in subsequent financial periods the acquisition method of accounting has been used, under which the results of subsidiary undertakings acquired or disposed of in the year are included in the Consolidated Income Statement from the date of acquisition or up to the date of disposal.

On acquisition, the assets and liabilities and contingent liabilities of a subsidiary are measured at their fair values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognised as goodwill. Any deficiency of the cost of acquisition below the fair values of the identifiable net assets acquired (discount on acquisition) is credited to the income statement in the period of acquisition.

Control comprises the power to govern the financial and operating policies of the investee so as to obtain benefit from its activities and is achieved through direct or indirect ownership of voting rights; currently exercisable or convertible potential voting rights; or by way of contractual agreement. The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All intra-group transactions, balances, income and expenses are eliminated on consolidation.

Revenue recognition

Revenue is the value of sales, excluding transactions with or between subsidiaries, and after deduction of sales related discounts and rebates, value added tax and other sales related taxes. Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer and the amount can be measured reliably.

Sales related discounts are calculated based on the expected amounts necessary to meet claims by the Group's customers in respect of these discounts and rebates.

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and any impairment losses. Cost comprises the aggregate amount paid and the fair value of any other consideration given to acquire the asset and includes costs directly attributable to making the asset capable of operating as intended. Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, on a straight-line basis, over the useful economic life of that asset as follows:

Plant and machinery	3 to 20 years
Vehicles (included in plant and machinery)	5 to 7 years
Equipment in retail outlets (included in fixtures, fittings, tools and equipment)	5 to 10 years
Other fixtures and fittings (included in fixtures, fittings, tools and equipment)	3 to 10 years

Land is not depreciated.

Freehold properties are depreciated over 50 years.

Leasehold properties are depreciated over 50 years, or over the unexpired lease term when this is less than 50 years.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Gains and losses on disposals are determined by comparing proceeds with carrying amount, and are included in the income statement in the period of derecognition.

The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable and are written down immediately to their recoverable amount. Useful lives and residual amounts are reviewed annually and where adjustments are required these are made prospectively.

Goodwill

Business combinations on or after 4 October 2004 have been accounted for under IFRS 3 using the acquisition method. On acquisition, the assets, liabilities and contingent liabilities of a subsidiary are measured at their fair values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognised as goodwill. Any deficiency of the cost of acquisition below the fair values of the identifiable net assets acquired (discount on acquisition) is credited to the income statement in the period of acquisition.

Following initial recognition, goodwill is measured at cost less accumulated impairment losses. Goodwill is not amortised.

Goodwill is reviewed for impairment at least annually and whenever events or changes in circumstances indicate that their carrying value may be impaired. As at the acquisition date, any goodwill acquired is allocated to the Group of cash-generating units expected to benefit from the combination's synergies by management. Impairment is determined by assessing the recoverable amount of the group of cash-generating units to which the goodwill relates. Where the recoverable amount of the cash-generating unit is less than the carrying amount, an impairment loss is recognised immediately in the income statement.

On disposal of a subsidiary the attributable amount of goodwill is included in the determination of the profit or loss on disposal.

Intangible assets

Trademarks, franchise rights and customer lists

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation or impairment losses. An intangible asset acquired as part of a business combination is recognised outside goodwill, at fair value at the date of acquisition, if the asset is separable or arises from contractual or other legal rights and its fair value can be measured reliably.

The useful lives of intangible assets are assessed to be either finite or indefinite. Amortisation is charged on assets with finite lives on a straight-line basis over a period appropriate to the asset's useful life.

The carrying values of intangible assets with finite and indefinite lives are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.

Intangible assets with indefinite useful lives are also tested for impairment annually either individually or at the cash generating unit level. Such intangibles are not amortised. The useful life of an intangible asset with an indefinite life is reviewed annually to determine whether indefinite life assessment continues to be supportable. If not, the change in the useful life assessment from indefinite to finite is made on a prospective basis.

Software Costs

Software expenditure is recognised as an intangible asset only after its technical feasibility and commercial viability can be demonstrated. Acquired computer software licences and software developed in-house are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortised over their estimated useful lives of three to seven years.

Impairment of assets

The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects senior management's estimate of the cost of capital. Impairment losses of continuing operations are recognised in the income statement in those expense categories consistent with the function of the impaired asset.

An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset's recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Goodwill impairment losses cannot subsequently be reversed.

Inventories and work in progress

Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing inventories to their present location and condition. Cost is determined using the weighted average cost method. Net realisable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

Financial assets

The Group determines the classification of its financial assets at initial recognition and re-evaluates this designation at each financial period-end. When financial assets are recognised initially, they are measured at fair value, being the transaction price plus directly attributable transaction costs. The Group assesses at each balance sheet date whether a financial asset or group of financial assets is impaired.

The Group has financial assets that are classified as loans and receivables. The Group measures these as follows:

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, do not qualify as trading assets and have not been designated as either fair value through profit or loss or available for sale. Such assets are carried at amortised cost using the effective interest method if the time value of money is significant. Gains and losses are recognised in income when the loans and receivables are derecognised or impaired, as well as through the amortisation process.

Derivative financial instruments and hedging

The Group uses derivative financial instruments such as forward currency contracts and interest rate swaps to hedge its risks associated with foreign currency and interest rate fluctuations. All derivative financial instruments are initially recognised and subsequently remeasured at fair value. Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative.

The fair value of forward currency contracts is calculated by reference to current forward exchange rates for contracts with similar maturity profiles. The fair value of interest rate swap contracts is determined by reference to market values for similar instruments.

For those derivatives designated as hedges and for which hedge accounting is appropriate, the hedging relationship is documented at its inception. This documentation identifies the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how effectiveness will be measured throughout its duration. Such hedges are expected at inception to be highly effective.

For the purpose of hedge accounting, hedges are classified as cash flow hedges when hedging exposure to variability in cash flows that is either attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction.

Any gains or losses arising from changes in the fair value of derivatives that do not qualify for hedge accounting are taken to the income statement. The treatment of gains and losses arising from revaluing derivatives designated as hedging instruments depends on the nature of the hedging relationship, as follows:

Cash flow hedges

For cash flow hedges, the effective portion of the gain or loss on the hedging instrument is recognised directly in equity, while the ineffective portion is recognised in the income statement. Amounts taken to equity are transferred to the income statement when the hedged transaction affects profit or loss, such as when a forecast sale or purchase occurs.

If a forecast transaction is no longer expected to occur, amounts previously recognised in equity are transferred to the income statement. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its designation as a hedge is revoked, amounts previously recognised in equity remain in equity until the forecast transaction occurs and are transferred to the income statement or to the initial carrying amount of a non-financial asset or liability as above. If the related transaction is not expected to occur, the amount is taken to the income statement.

Net investment hedges

Financial instruments are classified as net investment hedges when they hedge the Group's net investment in foreign operations. The Group's foreign currency borrowings qualify as hedging instruments that hedge foreign currency net investment balances. Gains or losses on translation of borrowings are recognised in equity. Upon disposal of the associated investment in foreign operations cumulative gain or loss is recycled through the income statement.

Derecognition of financial instruments

The derecognition of a financial instrument takes place when the Group no longer controls the contractual rights that comprise the financial instrument, which is normally the case when the instrument is sold, or all the cash flows attributable to the instrument are passed through to an independent third party.

Share-based payments

The cost of equity-settled transactions with employees is measured by reference to the fair value at the date at which they are granted. Fair value is determined by an external valuer using an appropriate pricing model. In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions linked to the price of the shares ('market conditions').

The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award ('vesting date'). The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the number of equity instruments that, in the opinion of the Directors and based on the best available estimate at that date, will ultimately vest (or in the case of an instrument subject to a market condition, be treated as vesting as described below). The income statement charge or credit for a period represents the movement in cumulative expense recognised as at the beginning and end of that period.

No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition, which are treated as vesting irrespective of whether or not the market condition is satisfied, provided that all other performance conditions are satisfied.

The Group has taken advantage of the transitional provisions of IFRS 2 in respect of equity-settled awards and has applied IFRS 2 only to equity-settled awards granted after 7 November 2002 that had not vested before 1 January 2005.

Taxation

The current income tax expense is based on taxable profits for the period, after any adjustments in respect of prior periods. It is calculated using taxation rates enacted or substantively enacted by the balance sheet date and is measured at the amount expected to be recovered from or paid to the taxation authorities.

Provision is made for deferred tax liabilities, or credit taken for deferred tax assets, on all material temporary differences between the tax base of assets and liabilities and their carrying values in the consolidated financial statements.

The principal temporary differences arise from accelerated capital allowances, provisions for pensions and other post-retirement benefits, provisions for share-based payments and employee profit share schemes and other short-term temporary differences.

Deferred tax assets are recognised to the extent that it is regarded as probable that future taxable profits will be available against which the temporary differences can be utilised.

Deferred tax is calculated at the tax rates that are expected to apply in the periods in which the asset or liability will be settled based on the tax rates enacted or substantively enacted by the balance sheet date.

Pensions and post retirement benefits

The Group operates a number of pension schemes. The Britvic Pension Plan ('BPP') has both a defined benefit fund and a defined contribution fund. The defined benefit section of the BPP was closed on 1 August 2002, and since this date new employees have been eligible to join the defined contribution section of the BPP.

As a result of the acquisition of Britvic Ireland on 29 August 2007, in Northern Ireland the Group inherited a further pension scheme in which its employees (at the date of the transfer) participated, the C&C Pension Fund. The name of this scheme has subsequently been changed to the Britvic Northern Ireland Pension Plan (BNIPP). The BNIPP was closed to new members on 28 February 2006 and since this date new employees have been eligible to join a Stakeholder plan with Legal & General. Since 1 September 2008, employees in the Republic of Ireland have been able to participate in two newly formed pension plans called the Britvic Ireland DC Pension Plan and the Britvic Ireland DB Pension Plan (BIPP).

Under defined benefit pension plans, plan assets are measured at fair value and plan liabilities are measured on an actuarial basis, using the projected unit credit method and discounted at an interest rate equivalent to the current rate of return on a high quality corporate bond of equivalent currency and term to the plan liabilities.

The service cost of providing pension benefits to employees for the period is charged to the income statement. The cost of making improvements to pensions is recognised in the income statement on a straight-line basis over the period during which the increase in benefits vests. To the extent that the improvements in benefits vest immediately, the cost is recognised immediately. These costs are recognised as an expense.

Past service costs are recognised in profit or loss on a straight-line basis over the vesting period or immediately if the benefits have vested. When a settlement (eliminating all obligations for benefits already accrued) or a curtailment (reducing future obligations as a result of a material reduction in the scheme membership or a reduction in future entitlement) occurs the obligation and related plan assets are re-measured using current actuarial assumptions and the resultant gain or loss is recognised in the income statement during the period in which the settlement or curtailment occurs.

A charge representing the unwinding of the discount on the plan liabilities during the year is included within administrative expenses.

A credit representing the expected return on the plan assets during the year is included within administrative expenses. This credit is based on the market value of the plan assets, and expected rates of return, at the beginning of the year.

Actuarial gains and losses may result from: Differences between the expected return and the actual return on plan assets; differences between the actuarial assumptions underlying the plan liabilities and actual experience during the year; or changes in the actuarial assumptions used in the valuation of the plan liabilities. Actuarial gains and losses, and taxation thereon, are recognised in the consolidated statement of recognised income and expense.

For defined contribution plans, contributions payable for the year are charged to the income statement as an operating expense.

The defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less any past service cost not yet recognised and less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information and in the case of quoted securities is the published bid price.

Employee benefits

Wages, salaries, bonuses and paid annual leave are accrued in the year in which the associated services are rendered by the employees of the Group.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Leases in which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases.

Rentals payable under operating leases are charged to income on a straight-line basis over the term of the relevant lease.

Lease incentives received are credited to the income statement on a straight-line basis over the term of the leases to which they relate.

Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less, which are readily convertible into known amounts of cash and subject to insignificant risk of changes in value. For the purposes of the statement of cash flows, bank overdrafts repayable on demand are a component of cash and cash equivalents.

Trade and other receivables

Trade receivables, which generally have 30-90 day terms, are recognised at the lower of their original invoiced value and recoverable amount.

Provision is made when collection of the full amount is no longer considered probable. Balances are written off when the probability of recovery is assessed as being remote.

Interest bearing loans and borrowings

Interest bearing loans and borrowings are initially recognised in the balance sheet at fair value less directly attributable transaction costs and are subsequently measured at amortised cost using the effective interest rate method.

Finance costs arising from the outstanding loan balance and finance charges are charged to the income statement using an effective interest rate method.

Gains and losses arising on the repurchase, settlement or otherwise cancellation of liabilities are recognised respectively in finance revenue and finance cost.

Foreign currencies

Functional and presentation currency

The consolidated financial information is presented in pounds sterling, which is the Group's presentational currency.

Transactions and balances

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. All differences are taken to the income statement other than those differences relating to financial instruments treated as a net investment hedge.

These are taken directly to equity until the disposal of the net investment, at which time they are recognised in profit and loss.

Foreign operations

The income statement and statement of cash flows of foreign operations are translated at the average rate of exchange during the period. The balance sheet is translated at the rate ruling at the reporting date. Exchange differences arising on opening net assets and arising on the translation of results at an average rate compared to a closing rate are both dealt with through reserves. On disposal of a foreign operation accumulated exchange differences previously recognised in equity are included in the income statement.

Segmental reporting

A business segment is a distinguishable component of the Group engaged in providing products and services that are subject to risks and returns that are different from those of other business segments. A geographical segment is engaged in providing products and services within a particular economic environment that are subject to risks and returns that are different from those of segments operating in other economic environments. Segment reporting reflects the internal management structure and the way the business is managed.

Issued share capital

Ordinary shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Own shares

The cost of own shares held in employee share trusts and in treasury are deducted from shareholders' equity until the shares are cancelled, reissued or disposed. Where such shares are subsequently sold or reissued, the fair value of any consideration received is also included in shareholders' equity.

Exceptional items

The Group presents as exceptional items on the face of the income statement those significant items of income and expense which, because of the nature and infrequency of the events giving rise to them, merit separate presentation to allow shareholders to understand better the elements of financial performance in the year, so as to facilitate comparison with prior periods and to assess trends in financial performance more readily.

Key judgements and sources of estimation uncertainty

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that the actual outcomes could differ from those estimates. In the process of applying the Group's accounting policies, management has made the following judgements which have the most significant affect on the amounts recognised in the financial statements.

Post retirement benefits

The determination of the pension and other post retirement benefits cost and obligation is based on assumptions determined with independent actuarial advice. The assumptions include discount rate, inflation, pension and salary increases, expected return on scheme assets, mortality and other demographic assumptions. These key assumptions are disclosed in note 24.

Impairment of goodwill and intangible assets with indefinite lives

Determining whether goodwill and intangible assets with indefinite lives are impaired requires an estimation of the value in use of the cash generating units to which the goodwill / intangible asset has been allocated. The value in use calculation requires an estimate of the future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate present value. Further details, including sensitivity analysis of key assumptions, are given in note 15.

Deferred tax

Deferred tax assets and liabilities require management's judgement in determining the amounts to be recognised. In particular, significant judgement is used when assessing the extent to which deferred tax assets should be recognised which is dependent on the generation of sufficient future taxable profits. The Group recognises deferred tax assets to the extent it is probable that the benefit will be realised.

Cross currency interest rate swaps

The Group measures cross currency interest rate swaps at fair value at each balance sheet date. The fair value represents the net present value of the difference between the projected cash flows at the swap contract rate and the relevant exchange rate for the period from the balance sheet date to the contracted expiry date. The calculation therefore uses estimates of present value, future foreign exchange rates and interest rates.

Other

The Group also makes estimations and judgements in the valuation of share-based payments. However, the value of this item is such that any variation in the estimates used is unlikely to have a significant effect on the amount recognised in the financial statements.

New standards and interpretations not applied

The Group has not applied the following IFRSs and IFRIC Interpretations, which will be applicable to the Group, that have been issued but are not yet effective:

		Effective date - periods commencing
International Financial Reporting Standards (IFRS)
IFRS 8	Operating Segments	1 January 2009
IFRS 2	Amendment to IFRS 2 - Vesting Conditions & Cancellation	1 January 2009
Annual Improvements	Improvements to IFRSs	1 January 2009
IFRS 3	Business Combinations (revised January 2008)	1 July 2009
IFRS 9	Financial Instruments - Classification and measurement	1 January 2013

International Accounting Standards (IAS)
IAS 1	Amendment - Presentation of Financial Statements (revised September 2007)	1 January 2009
IAS 23	Borrowing Costs (revised March 2007)	1 January 2009
IAS 27	Consolidated and Separate Financial Statements (revised January 2008)	1 July 2009
IAS 39	Amendment - Eligible Hedged Items	1 July 2009
IAS 24	Amendment to IAS 24 - Disclosure requirements for government related entities and definition of a related party	1 January 2011

International Financial Reporting Interpretations Committee (IFRIC)
IFRIC 16	Hedges of a Net Investment in a Foreign Operation	1 October 2008

IFRS 8 requires disclosure based on information presented to the board. Management has not yet determined the potential impact of this standard.

The amendment to IFRS 2 restricts the definition of vesting conditions to include only service conditions (requiring a specified period of service to be completed) and performance conditions (requiring the other party to achieve a personal goal or contribute to achieving a corporate target). All other features are not vesting conditions, and whereas failure to achieve such a condition was previously regarded as a forfeiture (giving rise to a reversal of amounts previously charged to profit) it must be reflected in the grant date fair value of the award and treated as a cancellation, which results in either an acceleration of the expected charge, or a continuation over the remaining vesting period, depending on whether the condition is under the control of the entity or counterparty. The amendment is mandatory for periods beginning on or after 1 January 2009 and the Group is currently assessing its impact on the financial statements, although it is not expected to be material.

The Group does not anticipate early adopting the revised IFRS 3 and so will apply it prospectively to all business combinations on or after 28 September 2009. Whilst it is not possible to estimate the outcome of adoption, the key features of the revised IFRS 3 include a requirement for acquisition-related costs to be expensed and not included in the purchase price; and for contingent consideration to be recognised at fair value on the acquisition date (with subsequent changes recognised in the income statement and not as a change to goodwill). The standard also changes the treatment of non-controlling interests (formerly minority interests) with an option to recognise these at full fair value as at the acquisition date and a requirement for previously held non-controlling interests to be fair valued as at the date control is obtained, with gains and losses recognised in the income statement.

Whilst the revised IAS 1 will have no impact on the measurement of the Group's results or net assets it is likely to result in certain changes in the presentation of the Group's financial statements from the 53 weeks ended 3 October 2010 onwards.

The remaining new standards, interpretations and amendments to published standards that have an effective date of after these financial statements detailed above have not been early adopted by the Group and the Directors do not anticipate that the adoption of these standards and interpretations will have a material impact on the Group's reported income or net assets in the period of adoption.

4.	Segmental reporting

The Directors consider that the Group's primary reporting segment is geographical, as this is the basis on which the Group is organised and managed. The geographical segments are: United Kingdom excluding Northern Ireland ('GB') and Republic of Ireland & Northern Ireland ('ROI & NI'). Britvic International is included within the GB segment.

Analysis by geography:

			2009			2008
	GB	ROI & NI	TOTAL	GB	ROI & NI	TOTAL
	£m	£m	£m	£m	£m	£m

Gross revenue	793.5	190.6	984.1	729.5	200.7	930.2
Inter-segment revenue*	(4.2)	(1.1)	(5.3)	(3.7)	-	(3.7)
Segment revenue	789.3	189.5	978.8	725.8	200.7	926.5

Segment result
Gross profit	450.2	77.7	527.9	425.5	74.9	500.4
Operating profit before exceptional items	99.0	11.1	110.1	83.7	13.0	96.7
Operating profit after exceptional items	93.6	(3.8)	89.8	75.5	2.9	78.4

Other non-cash expenses
Depreciation of property, plant and equipment	26.2	3.9	30.1	29.5	5.9	35.4
Amortisation of intangible assets	6.9	1.7	8.6	5.7	1.5	7.2
Impairment of property, plant and equipment	-	4.2	4.2	3.3	1.5	4.8
Share-based payments	7.7	-	7.7	8.4	-	8.4

Segment assets
Gross assets	516.6	624.9	1,141.5	474.3	569.2	1,043.5
Inter-segment assets	(18.1)	(312.2)	(330.3)	(15.7)	(302.9)	(318.6)
Unallocated assets			42.3			16.4
Total segment assets			853.5			741.3

Segment liabilities
Gross liabilities	604.8	102.5	707.3	504.2	83.8	588.0
Inter-segment liabilities	(312.2)	(18.1)	(330.3)	(302.9)	(15.7)	(318.6)
Unallocated liabilities			479.0			462.6
Total segment liabilities			856.0			732.0

Capital expenditure
Capital expenditure	39.3	7.1	46.4	36.5	15.5	52.0
* Inter-segment transactions are performed using arm's length prices.

5.	Exceptional items

		2009	2008
		£m	£m
Cost of incentive schemes directly associated with the flotation	(a)	(0.8)	(2.8)
Restructuring costs	(b)	(16.6)	(11.6)
Costs in relation to the purchase of Britvic Ireland	(c)	(0.5)	(2.1)
Onerous leases	(d)	(2.4)	-
Returnable bottle line closure and associated costs	(e)	-	(0.7)
IT equipment impairment	(f)	-	(1.1)
		(20.3)	(18.3)

a)	Cost of incentive schemes directly associated with the flotation include all-employee share schemes and management incentives. The cost relates to a transitional award granted to members of both the senior leadership team and senior management team shortly after flotation, the purpose of which was to compensate these individuals for the loss of existing long-term incentive bonuses which were discontinued upon flotation.

b)	Restructuring costs includes the costs of major restructuring programmes undertaken. In the current year these are principally:

●	Redundancy costs arising in both the GB and Ireland segments;
●	Other costs associated with delivering the synergies within the Ireland segment; and
●	Impairments of property, plant and equipment relating to the closure of three sites in the Britvic Ireland business. Impairments amount to £4.2m.

c)	Costs in relation to the purchase of Britvic Ireland relate to the costs incurred in acquiring the business which cannot be included in the cost of the business combination and therefore cannot be capitalised. In the current year costs relate to professional fees incurred in respect of establishing new pension schemes in the Britvic Ireland business. The 2008 number principally relates to compensation paid to a distributor formerly used in Ireland prior to the acquisition of Britvic Ireland.

d)	The onerous leases relate to two sites within the business where future lease commitments have been accrued for. These are the closure of depot space as a result of the project to deliver the synergies in the Ireland segment and the rationalisation of office space in the GB segment.

e)	Returnable bottle line closure and associated costs in the prior year related primarily to a write-down of inventories for returnable glass bottle stocks which became redundant due to the move to non-returnable bottles in the GB segment.

f)	The IT equipment impairment in the prior year related to the write down of servers which have now been replaced to accommodate increased business requirements following the acquisition of Britvic Ireland.

Details of the tax implications of exceptional items are given in note 10a.

All impairments have been calculated based on fair value less costs to sell, where the fair value is determined by reference to an active market.

6.	Operating profit

This is stated after charging:

	2009	2008
	£m	£m

Cost of inventories recognised as an expense	450.9	426.1

Write-down of inventories to net realisable value*	2.6	2.6

Research and development expenditure written off	1.5	2.0

Net foreign currency differences	3.4	0.1

Depreciation of property, plant and equipment	30.1	35.4

Amortisation of intangible assets	8.6	7.2

Operating lease payments
- minimum lease payments	16.3	15.7

* This excludes the write-down of returnable bottle stocks included in note 5.

7.	Auditor's remuneration

	2009	2008
	£m	£m
Auditor's remuneration - audit of the Group financial statements	0.3	0.2
Other fees to auditors
- local statutory audits for subsidiaries	0.1	0.1

8. Staff costs
	2009	2008
	£m	£m
Wages and salaries*	126.8	108.6
Social security costs	11.2	9.5
Pension costs (note 24)	9.5	9.0
Expense of share based compensation**	7.7	8.4
	155.2	135.5

* £8.8m (2008: £5.4m) of this is included within "restructuring costs" in exceptional items (note 5).

** £0.8m (2008: £2.8m) of this is included within exceptional items (see note 5 and note 29).

Directors' emoluments which are included above are detailed in the Directors' Remuneration Report.

The average monthly number of employees during the period was made up as follows:

	2009	2008
Distribution	525	533
Production	1,107	1,177
Sales and marketing	899	958
Administration	505	485
	3,036	3,153

9.	Finance revenue/(costs)

	2009	2008
	£m	£m
Finance revenue

Bank interest receivable	-	0.3
Other interest receivable	-	0.1
Total finance income	-	0.4

Finance costs

Bank loans, overdrafts and loan notes	(23.6)	(27.0)
Total finance costs	(23.6)	(27.0)

10.

Taxation

a)	Tax on profit on ordinary activities

	2009
	Before
	exceptional	Exceptional
	items	items	Total
	£m	£m	£m
Income Statement

Current income tax
Current income tax (charge) / credit	(24.3)	2.9	(21.4)
Amounts underprovided in previous years	(1.5)	-	(1.5)
Total current income tax (charge) / credit	(25.8)	2.9	(22.9)

Deferred income tax
Origination and reversal of temporary differences	0.8	-	0.8
Amounts overprovided in previous years	2.7	-	2.7
Total deferred tax credit	3.5	-	3.5

Total tax (charge) / credit in the income statement	(22.3)	2.9	(19.4)

Statement of Recognised Income and Expense
Current tax on additional pension contributions			2.8
Current tax on share options exercised			0.1
Deferred tax on movement in pension liabilities			16.9
Deferred tax on share options granted to employees			1.4
Net tax benefit reported in equity			21.2

	2008
	Before
	exceptional	Exceptional
	items	items	Total
	£m	£m	£m
Income Statement

Current income tax
Current income tax (charge) / credit	(17.0)	2.7	(14.3)
Amounts underprovided in previous years	(0.1)	-	(0.1)
Total current income tax (charge) / credit	(17.1)	2.7	(14.4)

Deferred income tax
Origination and reversal of temporary differences	-	(5.6)	(5.6)
Total deferred tax credit	-	(5.6)	(5.6)

Total tax charge in the income statement	(17.1)	(2.9)	(20.0)

Statement of Recognised Income and Expense
Current tax on additional pension contributions			2.9
Deferred tax on movement in pension liabilities			3.6
Deferred tax on movement in cash flow hedges			(1.6)
Deferred tax on share options granted to employees			(1.4)
Current tax on share options exercised			0.5
Net tax expense reported in equity			4.0

b)	Reconciliation of the total tax charge

The tax expense in the Income Statement is higher (2008: higher) than the standard rate of corporation tax in the UK of 28% (2008: 29%). The differences are reconciled below:

	2009
	Before
	exceptional	Exceptional
	items	items	Total
	£m	£m	£m

Profit / (loss) before tax	86.5	(20.3)	66.2

Profit multiplied by the UK average rate of corporation tax of 28%	(24.2)	5.7	(18.5)
Expenditure not deductible for income tax purposes	(1.8)	(0.1)	(1.9)
Tax relief on share-based payments	0.2	(0.2)	-
Tax overprovided in previous years	1.2	-	1.2
Overseas tax rates	2.3	(2.5)	(0.2)
	(22.3)	2.9	(19.4)
Effective income tax rate	25.8%		29.3%

	2008
	Before
	exceptional	Exceptional
	items	items	Total
	£m	£m	£m

Profit / (loss) before tax	70.1	(18.3)	51.8

Profit multiplied by the UK average rate of corporation tax of 29%	(20.3)	5.3	(15.0)
Expenditure not deductible for income tax purposes	(0.7)	(0.1)	(0.8)
Abolition of UK industrial buildings allowance	-	(5.9)	(5.9)
Tax relief on share-based payments	-	0.8	0.8
Accounting charge for share-based payments	(0.4)	(1.1)	(1.5)
Tax underprovided in previous years	(0.1)	-	(0.1)
Tax relief on intra-group transactions eliminated on consolidation	1.6	-	1.6
Overseas tax rates	2.7	(1.9)	0.8
Impact of foreign exchange translation	0.1	-	0.1
	(17.1)	(2.9)	(20.0)
Effective income tax rate	24.4%		38.6%

c)	Unrecognised tax items

The temporary differences associated with investments in subsidiaries for which a deferred tax liability has not been recognised aggregates to £11.7m (2008: £27.5m).

d)	Deferred tax

The deferred tax included in the Balance Sheet is as follows:

	2009	2008
	£m	£m
Deferred tax liability
Accelerated capital allowances	(20.3)	(25.1)
Acquisition fair value adjustments	(13.3)	(13.1)
Other temporary differences	(4.1)	(3.5)
Employee incentive plan	(0.2)	-
Impact of retranslation of opening balance	-	(0.2)
Deferred tax liability	(37.9)	(41.9)

Deferred tax asset
Employee incentive plan	4.0	2.4
Post employment benefits	19.6	4.1
Other temporary differences	-	0.3
Deferred tax asset	23.6	6.8

Net deferred tax liability	(14.3)	(35.1)

The net deferred tax liability has been presented on the Balance Sheet by jurisdiction as follows:

	2009	2008
	£m	£m
Net deferred tax assets - Overseas	2.6	2.6
Net deferred tax liabilities - UK	(16.9)	(37.7)
	(14.3)	(35.1)

The deferred tax included in the Income Statement is as follows:

	2009	2008
	£m	£m
Employee incentive plan	0.2	(0.1)
Accelerated capital allowances	3.9	(4.1)
Post employment benefits	(0.6)	(1.4)
Deferred tax credit / (charge)	3.5	(5.6)

None of the deferred tax credit in the current period relates to exceptional items (2008: all of the deferred tax charge in the prior period related to exceptional items).

11	Earnings per share

Basic earnings per share amounts are calculated by dividing profit for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year.

Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.

The following table reflects the income and share data used in the basic and diluted earnings per share computations:

	2009	2008
	£m	£m
Basic earnings per share
Profit for the period attributable to equity shareholders	46.8	31.8
Weighted average number of ordinary shares in issue for basic earnings per share	214.9	214.0

Basic earnings per share	21.8p	14.9p

Diluted earnings per share
Profit for the period attributable to equity shareholders	46.8	31.8
Weighted average number of ordinary shares in issue for diluted earnings per share	220.9	218.0

Diluted earnings per share	21.2p	14.6p

The Group presents as exceptional items on the face of the Income Statement, those significant items of income and expense which, because of the nature and infrequency of the events giving rise to them, merit separate presentation to allow shareholders to understand better the elements of financial performance in the period, so as to facilitate comparison with prior periods and to assess better trends in financial performance more readily. To this end, basic and diluted earnings per share are also presented on this basis using the weighted average number of ordinary shares for both basic and diluted amounts as per the table below:
	2009	2008
	£m	£m
Basic earnings per share before exceptional items
Profit for the period attributable to equity shareholders	46.8	31.8
Add: Net impact of exceptional items	17.4	21.2
Profit for the period attributable to ordinary shareholders before exceptional items	64.2	53.0
Weighted average number of ordinary shares in issue for basic earnings per share	214.9	214.0

Basic earnings per share before exceptional items	29.9p	24.8p

Diluted earnings per share before exceptional items
Profit for the period attributable to equity shareholders before exceptional items	64.2	53.0
Weighted average number of ordinary shares in issue for diluted earnings per share	220.9	218.0

Diluted earnings per share before exceptional items	29.1p	24.3p

12	Dividends paid and proposed

	2009	2008
	£m	£m
Declared and paid during the year
Equity dividends on ordinary shares
Final dividend for 2007: 7.70p per share	-	16.6
Interim dividend for 2008: 3.80p per share	-	8.1
Final dividend for 2008: 8.80p per share	19.0	-
Interim dividend for 2009: 4.10p per share	8.8	-
Dividends paid	27.8	24.7
Proposed for approval by the shareholders at the AGM
Final dividend for 2008: 8.80p per share	-	18.8
Final dividend for 2009: 10.90p per share	23.5	-

13	Property, plant and equipment

	Freehold land and buildings	Leasehold land and buildings	Plant and machinery	Fixtures, fittings, tools and equipment	Total
	£m	£m	£m	£m	£m
At 30 September 2007, net of accumulated depreciation	52.9	28.9	81.5	64.1	227.4
Exchange differences	1.7	1.0	1.7	0.3	4.7
Additions	1.3	1.7	28.2	15.3	46.5
Disposals at cost	-	-	(6.4)	(22.9)	(29.3)
Depreciation eliminated on disposals	-	-	4.7	20.2	24.9
Assets classified as held for sale - cost**	(6.0)	-	-	-	(6.0)
Assets classified as held for sale - depreciation**	0.1	-	-	-	0.1
Depreciation charge for the year	(0.9)	(0.6)	(17.0)	(16.9)	(35.4)
Impairment*	-	-	(3.0)	(1.8)	(4.8)
At 28 September 2008, net of accumulated depreciation and impairment	49.1	31.0	89.7	58.3	228.1
Reclassifications	-	-	0.8	(0.8)	-
Exchange differences	1.3	1.7	3.0	0.8	6.8
Additions	0.5	3.1	17.2	14.4	35.2
Disposals at cost	-	-	(23.5)	(12.8)	(36.3)
Depreciation eliminated on disposals	-	-	13.8	11.1	24.9
Assets classified as held for sale - cost**	(1.5)	-	-	-	(1.5)
Assets classified as held for sale - depreciation**	0.1	-	-	-	0.1
Depreciation charge for the year	(0.4)	(0.8)	(14.4)	(14.5)	(30.1)
Impairment*	(1.1)	-	-	-	(1.1)
At 27 September 2009, net of accumulated depreciation and impairment	48.0	35.0	86.6	56.5	226.1

At 27 September 2009
Cost (gross carrying amount)	55.4	39.9	234.3	182.8	512.4
Accumulated depreciation and impairment	(7.4)	(4.9)	(147.7)	(126.3)	(286.3)
Net carrying amount	48.0	35.0	86.6	56.5	226.1

At 28 September 2008
Cost (gross carrying amount)	55.1	35.1	236.8	181.2	508.2
Accumulated depreciation and impairment	(6.0)	(4.1)	(147.1)	(122.9)	(280.1)
Net carrying amount	49.1	31.0	89.7	58.3	228.1

* The impairment in the current period relates to the write down of land and buildings following the closure of two sites in the Ireland segment. This impairment is included in exceptional items (see note 5). Of the prior period impairment, £4.2m is included within exceptional items. The remaining impairment in the prior period of £0.6m relates to a write down of commercial asset equipment. These impairments have been calculated based on fair value less costs to sell, where the fair value has been determined by reference to an active market.

**Further details are given in note 20.

14.	Intangible assets

	Trademarks	Franchise rights	Customer lists	Software costs	Goodwill	Total
	£m	£m	£m	£m	£m	£m
Cost as at 30 September 2007, net of accumulated amortisation	55.6	20.7	12.8	23.2	133.8	246.1
Exchange differences	7.5	2.7	1.8	-	7.4	19.4
Additions	-	-	-	5.3	0.2	5.5
Amortisation charge for the year	-	(0.7)	(0.8)	(5.7)	-	(7.2)
Cost as at 28 September 2008,	63.1	22.7	13.8	22.8	141.4	263.8
net of accumulated amortisation
Exchange differences	10.3	3.6	2.2	-	10.7	26.8
Additions	-	-	-	11.2	-	11.2
Disposals at cost	-	-	-	(0.3)	-	(0.3)
Amortisation eliminated on disposals	-	-	-	0.2	-	0.2
Amortisation charge for the year	(0.1)	(0.7)	(0.9)	(6.9)	-	(8.6)
At 27 September 2009	73.3	25.6	15.1	27.0	152.1	293.1

At 27 September 2009
Cost (gross carrying amount)	73.4	27.0	16.9	54.3	152.1	323.7
Accumulated amortisation	(0.1)	(1.4)	(1.8)	(27.3)	-	(30.6)
Net carrying amount	73.3	25.6	15.1	27.0	152.1	293.1

At 28 September 2008
Cost (gross carrying amount)	63.1	23.4	14.7	43.4	141.4	286.0
Accumulated amortisation	-	(0.7)	(0.9)	(20.6)	-	(22.2)
Net carrying amount	63.1	22.7	13.8	22.8	141.4	263.8
Goodwill

Goodwill is not amortised. Instead it is subject to an impairment review at each reporting date in accordance with IAS 36 'Impairment of Assets'. These reviews have been and will continue to be carried out at each reporting date or more frequently if there are indicators of impairment.

Trademarks, franchise rights and customer lists

These are the intangible assets recognised as a result of the acquisition of Britvic Ireland. They are valued in euros and translated at the reporting date.

Trademarks represent those trade names acquired which the Group plans to maintain. All trademarks have been allocated an indefinite life by management with the exception of a minor brand that is amortised over 5 years (net carrying value of £0.1m). A list of the trademarks acquired is shown in note 15. It is expected, and in line with existing well-established trademarks within the Group, that the trademarks with indefinite lives will be held and supported for an indefinite period of time and are expected to generate economic benefits for an indefinite period of time. The Group is committed to supporting its trademarks by investing in significant consumer marketing promotional spend.

Franchise rights represent the franchise agreements acquired which provide the long term right to distribute certain soft drinks. These agreements have been allocated a 35 year useful economic life. As at 27 September 2009 these intangible assets have a remaining useful life of 33 years. The franchise agreement itself has a contract life less than the useful economic life. The useful economic life has been determined on the basis that the renewal of the contract is highly probable.

Customer lists represent those customer relationships acquired which are valued in respect of the grocery and wholesale businesses. These customer lists have been allocated useful economic lives of between 10 and 20 years. At 27 September 2009 these intangible assets have a remaining useful life of between 8 and 18 years.

Software costs

Software is capitalised at cost. These intangible assets have been assessed as having finite lives and are amortised using the straight-line method over a period of 3 to 7 years. These assets are tested for impairment where an indicator of impairment arises. As at 27 September 2009 these intangible assets have a remaining useful life of up to 7 years.

15.	Impairment testing of goodwill and trademarks with indefinite lives

Goodwill

Goodwill acquired through business combinations has been allocated by senior management to seven individual cash-generating units for impairment testing as follows:

		●	Red Devil;
		●	Orchid;
		●	Tango;
		●	Robinsons;
		●	Britvic Soft Drinks business;
		●	Water Business; and
		●	Britvic Ireland

Carrying amount of goodwill

							Britvic
	Red Devil	Orchid	Tango	Robinsons	BSD	Water	Ireland	Total
	£m	£m	£m	£m	£m	£m	£m	£m
At 27 September 2009	5.1	12.4	8.9	38.6	7.8	1.7	77.6	152.1
At 28 September 2008	5.1	12.4	8.9	38.6	7.8	1.7	66.9	141.4

The Britvic Ireland goodwill is valued in euros and translated at the reporting date.

Intangible assets with indefinite lives

As part of the fair value exercise regarding the acquisition of Britvic Ireland, certain trademarks with indefinite lives were recognised. These trademarks have been allocated by senior management to six individual cash-generating units for impairment testing as follows:

		●	Britvic;
		●	Cidona;
		●	Mi-Wadi;
		●	Ballygowan;
		●	Club; and
		●	TK.

Carrying amount of intangible assets with indefinite lives


	Britvic	Cidona	Mi-Wadi	Ballygowan	Club	TK
	£m	£m	£m	£m	£m	£m
At 27 September 2009	10.8	8.7	9.4	28.1	15.6	0.6
At 28 September 2008	9.3	7.5	8.1	24.2	13.4	0.5

The trademarks are valued in euros and translated at the reporting date. The movement in the carrying amount from the prior year relates to translation movements.

The recoverable amount of the goodwill and intangible assets allocated to the cash-generating units detailed above has been determined based on a value in use calculation. To calculate this, 20 year cash flow projections are based on financial budgets prepared by senior management and approved by the Board of Directors. A 20 year cash flow period has been used to reflect the considered longevity of the cash-generating units. The pre-tax discount rate applied to pre-tax cash flow projections for the cash generating units associated with the goodwill excluding Britvic Ireland is 11 per cent (2008: 11 per cent) and for the Britvic Ireland goodwill and intangible assets recognised on the acquisition of Britvic Ireland is 9 per cent (2008: 9 per cent). Cash flows beyond the one year period are extrapolated based on forecast growth rates in line with senior management expectations of growth. No growth in real terms is assumed beyond five years. Senior management expectations are formed in line with historical performance and experience as well as available external market data.

Key assumptions used in value in use calculation

The following describes each key assumption on which management has based its cash flow projections to undertake impairment testing of goodwill.

Growth rates - reflect senior management expectations of volume growth based on historical growth, current strategy and expected market trends.

Discount rates - reflect senior management's estimate of the pre-tax cost of capital. The estimated pre-tax cost of capital is the benchmark used by management to assess operating performance and to evaluate future capital investment proposals.

Marginal contribution - being revenue less material costs and all other marginal costs that management considers to be directly attributable to the sale of a given product. Marginal contribution is based on financial budgets approved by senior management. Key assumptions are made within these budgets about pricing, discounts and costs based on historical data, current strategy and expected market trends.

Advertising and promotional spend - financial budgets approved by senior management are used to determine the value assigned to advertising and promotional spend. This is based on the planned spend for year one and strategic intent thereafter.

Raw materials price, production and distribution costs, selling costs and other overhead inflation - the basis used to determine the value assigned to inflation is forecast consumer price indices of 3.0 per cent (2008: 2.5 per cent).

Sensitivity to changes in assumptions

Management consider that whilst the expectation is that the Irish economy will begin to show some recovery over the medium term, it is possible that the Irish economy could continue to decline. In that circumstance, assumptions used in the value in use calculation could change and give rise to an impairment of the Britvic Ireland goodwill. The table below shows the sensitivity of the goodwill to each of the applicable assumptions separately:

Assumption	Assumption used in value in use calculation	Assumption causing impairment


Discount rate	9.0%	11.4%

Inflation rate	3.0%	0.6%

Growth rate	0.0%	(6.3%)

There are no further reasonable possible changes in key assumptions which would cause the value of the goodwill or any of the intangibles with indefinite lives to materially fall short of their carrying value.

16.	Trade and other receivables (non current)

	2009	2008
	£m	£m
Operating lease premiums	2.4	2.4

This amount relates to the un-amortised element of lease premiums paid on inception of operating leases.

17.	Inventories

	2009	2008
	£m	£m
Raw materials	13.4	13.0
Finished goods	29.3	27.7
Consumable stores	5.3	5.7
Returnable packaging	4.9	3.0
Total inventories at lower of cost and net realisable value	52.9	49.4

18.	Trade and other receivables (current)

	2009	2008
	£m	£m
Trade receivables	145.5	132.2
Other receivables	8.1	2.9
Prepayments	24.3	17.6
	177.9	152.7

Trade receivables are non-interest bearing and are generally on credit terms usual for the business in which the Group operates. As at 27 September 2009, trade receivables at nominal value of £1.3m (2008: £1.4m) were impaired and fully provided for. Movements in the provision for impairment of receivables were as follows:

			Total
			£m
At 30 September 2007			1.2
Exchange differences			0.1
Charge for year			0.7
Utilised			(0.1)
Unused amounts reversed			(0.5)
At 28 September 2008			1.4
Exchange differences			0.1
Charge for year			1.1
Utilised			(0.9)
Unused amounts reversed			(0.4)
At 27 September 2009			1.3

The Group takes the following factors into account when considering whether a provision for impairment should be made for trade receivables:


		●	Payment performance history; and
		●	External information available regarding credit ratings.

As at 27 September 2009, the ageing analysis of trade receivables is as follows:

			Past due but not impaired
	Total	Neither past due nor impaired	<30 days	30 - 60 days	60 - 90 days	90 - 120 days	> 120 days
	£m	£m	£m	£m	£m	£m	£m

2009	145.5	134.1	8.2	1.6	0.8	0.8	-

2008	132.2	121.4	7.4	1.3	1.3	0.6	0.2

The credit quality of trade receivables that are neither past due nor impaired is considered good. The Group does however monitor the credit quality of trade receivables by reference to credit ratings available externally.

19.	Cash and cash equivalents

	2009	2008
	£m	£m
Cash at bank and in hand	39.7	13.9

During the year short-term deposits are made for varying periods of between one day and one month depending on the immediate cash requirements of the Group, and earn interest at the respective short-term deposit rates. The fair value of cash and cash equivalents is equal to the book value.

At 27 September 2009, the Group had available £154.7m (2008: £139.5m) of un-drawn committed borrowing facilities in respect of which all conditions precedent had been met.

For the purposes of the consolidated statement of cash flows, cash and cash equivalents comprise the following:

	2009	2008
	£m	£m
Cash at bank and in hand	39.7	13.9
Bank overdraft included in financial liabilities (see note 27)	-	(1.0)
	39.7	12.9

Where available, the Group operates cash pooling arrangements whereby the net cash position across a number of accounts is recognised for interest purposes.

20.	Non-current assets held for sale

	2009	2008
	£m	£m
Net transfer from property, plant and equipment	5.1	5.9

Non-current assets held for sale relates to three sites within the Britvic Ireland business which are being disposed of as a result of the ongoing restructuring programme in that business segment. One of the sites included in the current period as held for sale was also classified as such in the prior period. Deterioration of the economy in the Republic of Ireland made conditions for a successful sale in the period very challenging. This site has been impaired in the current period to its fair value less costs to sell and the impairment is included within exceptional items (see note 5). The fair value has been determined by reference to current market values. All three sites are currently being actively marketed for sale and it is expected that they will be sold in the forthcoming year.

21.	Issued share capital

The issued share capital as at 27 September 2009 comprised 216,779,996 ordinary shares of £0.20 each (2008: 216,037,795 ordinary shares), totalling £43,355,999 (2008: £43,207,559).

The ordinary shares carry voting rights of one vote per share. There are no restrictions placed on the distribution of dividends, or the return of capital on a winding up or otherwise.

	2009	2008
	£m	£m

Authorised
327,500,000 ordinary shares of £0.20 each	65.5	65.5

Called up, issued and fully paid ordinary shares
216,779,996 (2008: 216,037,795) ordinary shares of £0.20 each	43.4	43.2

There have been several share issues during the period relating to incentive schemes for employees. These are detailed below:

	No of shares issued	Value £
14 July 2009	29,333	5,867
1 September 2009	7,868	1,574
25 September 2009	705,000	141,000
	742,201	148,441

Of the issued and fully paid ordinary shares, 1,410,338 shares (2008: 2,376,138 shares) are treasury shares. This equates to £282,068 (2008: £475,228) at £0.20 par value of each ordinary share. These shares are held for the purpose of satisfying the share schemes detailed in note 29.

An explanation of the Group's capital management process and objectives is set out in note 26.

22.	Reconciliation of movements in equity

	Issued share capital	Share premium account	Own shares	Share scheme reserve	Hedging reserve	Translation reserve	Retained earnings	Total
	£m	£m	£m	£m	£m	£m	£m	£m
At 30 September 2007	43.2	2.5	(10.3)	5.3	1.9	2.9	(41.2)	4.3
Total recognised income for the year	-	-	-	-	5.1	14.3	7.5	26.9
Own shares purchased for share schemes	-	-	(5.0)	-	-	-	-	(5.0)
Own shares issued for share schemes	-	-	7.4	(5.8)	-	-	(1.6)	-
Movement in share based schemes	-	-	-	7.8	-	-	-	7.8
Payment of dividend	-	-	-	-	-	-	(24.7)	(24.7)
At 28 September 2008	43.2	2.5	(7.9)	7.3	7.0	17.2	(60.0)	9.3
Total recognised income for the year	-	-	-	-	(0.8)	17.1	(4.0)	12.3
Issue of shares	0.2	2.5	(2.6)	-	-	-	-	0.1
Own shares purchased for share schemes	-	-	(3.3)	-	-	-	-	(3.3)
Own shares issued for share schemes	-	-	9.2	(6.9)	-	-	(2.3)	-
Movement in share based schemes	-	-	-	6.9	-	-	-	6.9
Payment of dividend	-	-	-	-	-	-	(27.8)	(27.8)
At 27 September 2009	43.4	5.0	(4.6)	7.3	6.2	34.3	(94.1)	(2.5)

Nature and purpose of other reserves

Share premium

The share premium account is used to record the excess of proceeds over nominal value on the issue of shares.

Own shares

The own shares account is used to record purchases by the Group of its own shares, which will be distributed to employees as and when share awards made under the Britvic employee share plans vest.

Share scheme reserve

The share scheme reserve is used to record the movements in equity corresponding to the cost recognised in respect of equity-settled share based payment transactions and the subsequent settlement of any awards that vest either by issue or purchase of the Group's shares.

Hedging reserve

The hedging reserve records movements in the fair value of forward exchange contracts and interest rate and cross currency swaps.

Translation reserve

The translation reserve includes cumulative net exchange differences on translation into the presentational currency (sterling) of items recorded in group entities with a non-sterling functional currency net of amounts accounted for as net investment hedges.

23.	Interest bearing loans and borrowings

	2009	2008
	£m	£m

Current
Unsecured bank loans	-	(11.6)


Non-current
Unsecured bank loans	(180.2)	(160.7)
Private placement notes	(274.6)	(243.0)
Less unamortised issue costs	4.1	1.0
Total non-current	(450.7)	(402.7)

Bank loans

On 9 April 2009, the refinancing of the Group's committed facility was successfully completed. The new six bank £283.3m revolving multi-currency facility will be effective from May 2010 and will mature in May 2012. An additional £33.3m bilateral bank facility was also entered into on 9 April 2009 increasing the committed bank facilities available to the Group to £333.3m until May 2010.

The unsecured bank loans classified as non-current are repayable in May 2012 (2008: May 2010) and attract interest at an average rate of 1.50% for sterling denominated loans (2008: 6.32%) and 1.52% for euro denominated loans (2008: 5.18%). Interest on bank loans is re-priced at regular intervals. For further details, please refer to note 26.

Private placement notes

On 20 February 2007, Britvic plc issued US$375m and £38m of Senior Notes ('the Notes') in the United States Private Placement market. The proceeds of the issue were used to repay and cancel a £150m term loan, with the remainder being used to repay the amounts drawn on the Group's revolving credit facility. The amount, maturity and interest terms of the Notes are shown in the table below:

Series	Tranche	Maturity date	Amount	Interest terms	Swap interest
A	7 year	20 February 2014	US$87m	US$ fixed at 5.80%	UK£ fixed at 6.10%
B	7 year	20 February 2014	US$15m	US$ LIBOR + 0.5%	UK£ fixed at 6.07%
C	7 year	20 February 2014	£25m	UK£ fixed at 6.11%	n/a
D	10 year	20 February 2017	US$147m	US$ fixed at 5.90%	UK£ fixed at 5.98%
E	12 year	20 February 2019	US$126m	US$ fixed at 6.00%	UK£ fixed at 5.98%
F	12 year	20 February 2019	£13m	UK£ fixed at 5.94%	n/a

Britvic plc makes quarterly and semi-annual interest payments in the currency of issue. The Notes are unsecured and rank pari passu in right of repayment with other senior unsecured indebtedness of the Company. In order to manage the risk of foreign currency and interest rate fluctuations, the Group has entered into currency swaps whereby fixed / floating US dollar interest is swapped for fixed sterling interest. The swap contracts have the same duration and other critical terms as the borrowings which they hedge and are considered to be effective.

Covenants on these Notes include a term which states that Britvic plc must offer to repay the Notes should a change in control of the Group occur which results in a credit rating downwards as defined in the Note purchase agreement.

Analysis of changes in interest-bearing loans and borrowings

	2009	2008
	£m	£m
Current liabilities	(11.6)	(13.1)
Non-current liabilities	(402.7)	(417.8)
At the beginning of the period	(414.3)	(430.9)
Issue costs of new loans	4.1	-
Amortisation of issue costs	(1.0)	(0.2)
Net new unsecured loans	7.3	45.5
Net translation loss	(45.4)	(28.8)
Accrued interest	(1.4)	0.1
At the end of the period	(450.7)	(414.3)
Derivatives hedging balance sheet debt*	44.6	13.0
Debt translated at contracted rate	(406.1)	(401.3)

*Represents the element of the fair value of interest rate currency swaps hedging the balance sheet value of the Notes. This amount has been disclosed separately to demonstrate the impact of foreign exchange movements which are included in interest bearing loans and borrowings.

24.

Pensions

The Group principal pension scheme, the Britvic Pension Plan (BPP), has both a defined benefit and a defined contribution section. The defined benefit section of the BPP was closed on 1 August 2002, and since this date new employees have been eligible to join the defined contribution section of the BPP.

Contributions are paid into the Plan in accordance with the recommendations of an independent actuary and as outlined in the Schedule of Contributions. The latest formal actuarial valuation for contribution purposes was carried out as at 31 March 2007 under the Scheme Specific Requirements and as a result, annual contributions of £10.0m in respect of the funding shortfall outlined in the Recovery Plan will continue to be made by 31 December in each of the years 2009 and 2010 in order to eliminate the funding deficit in the Plan.

The amount recognised as an expense in relation to the BPP defined contribution scheme in the income statement for 2009 was £2.9m (2008: £2.0m).

As a result of the acquisition of Britvic Ireland on 29 August 2007, in Northern Ireland the Group inherited a further pension scheme in which its employees participated, the C&C Pension Fund. The name of this scheme has subsequently been changed to the Britvic Northern Ireland Pension Plan (BNIPP), with employees of C&C Group transferring out on 30 June 2008. Shortfall correction additional contributions of at least £90,000 per month from April 2007 to December 2015 inclusive are being paid in accordance with the Recovery Plan dated March 2007. An actuarial valuation was carried out at 31 December 2008, and is still being finalised. At present, the bulk transfer out of assets for the C&C employees has also to be finalised.

The BNIPP was closed to new members on 28 February 2006, and since this date new employees have been eligible to join a Stakeholder plan with Legal & General.

In the Republic of Ireland (ROI), employees continued to participate in a number of C&C Group pension funds following the acquisition until transferring into two newly formed pension plans called the Britvic Ireland Defined Contribution Pension Plan and the Britvic Ireland Defined Benefit Pension Plan (BIPP) on 1 September 2008. Both Plans are held under trust and operated by Britvic Ireland Pension Trust Limited as trustee. Since 1 March 2006 under the previous C&C arrangements, and continuing under the new BIPP arrangements, new employees are offered membership of the defined contribution plan in the first instance, with the ability to transfer into the defined benefit plan after a period of 5 years. The Company continues to pay instalments of €200,000 for each monthly pay period relating to the supplementary cost of the reorganisation programme that took place at the end of 2008. The next actuarial valuation will be carried out at 31 December 2009.

The amount recognised as an expense in relation to the Irish defined contribution schemes in the Income Statement for 2009 was £0.3m (2008: £0.1m).

All Group pension funds are administered by trustees who are independent of the Group's finances.

The assets and liabilities of the pension schemes were valued on an IAS 19 basis at 27 September 2009 by Watson Wyatt (BPP) and Mercer (BIPP and BNIPP).

Principal Assumptions

Financial Assumptions

	2009	2009	2009	2008	2008	2008
	%	%	%	%	%	%
	ROI	NI	GB	ROI	NI	GB
Discount rate	5.75	5.50	5.65	6.00	6.70	6.70
Rate of compensation increase	3.30-3.80	4.50	4.40	4.50	5.10	5.10
Expected long term return on plan assets	7.00	7.32	6.75	7.00	7.32	6.60
Pension increases (LPI)	3.00	2.30-3.40	2.25-3.30	3.00	2.50 - 3.60	2.30 - 3.45
Inflation assumption	2.30	3.50	3.40	2.50	3.60	3.60

To develop the expected long term rate of return on assets assumption, the Group considered the level of expected returns on risk free investments (primarily government bonds), the historical level of the risk premium associated with the other asset classes in which the portfolio is invested and the expectations for future returns of each asset class. The expected return for each asset class was then weighted based on the target asset allocation to develop the expected long term rate on assets assumption for the portfolio.

Demographic assumptions

The most significant non-financial assumption is the assumed rate of longevity. This is based on standard actuarial tables known as PA92. An allowance for future improvements in longevity has also been included. The following life expectancy assumptions have been used:

	2009 Years	2009 Years	2009 Years	2008 Years	2008 Years	2008 Years
	ROI	NI	GB	ROI	NI	GB
Current pensioners (at age 65) - males	20.7	20.8	20.0	20.7	20.8	19.9
Current pensioners (at age 65) - females	23.8	23.6	23.0	23.8	23.6	22.8
Future pensioners currently aged 45 (at age 65) - males	21.8	22.6	21.2	21.8	22.6	21.1
Future pensioners currently aged 45 (at age 65) - females	24.8	25.1	24.0	24.8	25.1	24.0

The mortality assumptions used to calculate the GB pension obligation were revised in 2007 following a mortality investigation carried out as part of the ongoing actuarial valuation of the Britvic Pension Plan at 31 March 2007. They were reviewed by the actuary during the year and updated in light of the improvements experienced.

Sensitivities

The value of plan assets is sensitive to market conditions, particularly equity values. Changes in assumptions used for determining retirement benefit costs and obligations may have a material impact on the income statement and balance sheet. The main assumptions are the discount rate, the rate of inflation and the assumed mortality rate. The following table provides an estimate of the potential impact of each of these variables on the principal pension plans.

Assumption	Change in assumption	Impact on ROI plan liabilities	Impact on NI plan liabilities	Impact on GB plan liabilities


Discount rate	Increase/decrease by 0.1%	Decrease/increase by £1.2m	Decrease/increase by £0.5m	Decrease/increase by £9.8m

Inflation rate	Increase/decrease by 0.1%	Increase/decrease by £0.7m	Increase/decrease by £0.3m	Increase/decrease by £10.2m

Mortality rate	Increase in life expectancy by one year	Increase by £1.2m	Increase by £0.5m	Increase by £14.8m

Net benefit expense

				2009
	BIPP	BNIPP	BPP	Total
	£m	£m	£m	£m
Current service cost	(2.2)	(0.3)	(3.5)	(6.0)
Interest cost on benefit obligation	(3.0)	(1.3)	(25.5)	(29.8)
Expected return on plan assets	2.3	1.0	26.2	29.5
Net expense	(2.9)	(0.6)	(2.8)	(6.3)

				2008
	BIPP	BNIPP	BPP	Total
	£m	£m	£m	£m
Current service cost	(2.6)	(0.3)	(8.1)	(11.0)
Interest cost on benefit obligation	(2.4)	(1.4)	(24.8)	(28.6)
Expected return on plan assets	2.9	1.0	28.8	32.7
Net expense	(2.1)	(0.7)	(4.1)	(6.9)

The net expense detailed above is all recognised in arriving at net profit from continuing operations before tax and finance costs / income, and is included within cost of sales, selling and distribution costs and administration expenses.

The pension curtailment in the prior year was triggered by the transfer of Group employees under the outsourcing arrangements of the secondary distribution network. Those employees that are members of the BPP no longer accrued future entitlement, which gave rise to the curtailment gain.

Taken to the statement of recognised income and expense

				2009
	BIPP	BNIPP	BPP	Total
	£m	£m	£m	£m
Actual return on scheme assets	(1.9)	2.2	26.4	26.7
Less: Expected return on scheme assets	(2.3)	(1.0)	(26.2)	(29.5)
	(4.2)	1.2	0.2	(2.8)
Other actuarial gains / (losses)	2.3	(2.8)	(68.7)	(69.2)
Actuarial losses taken to the statement of recognised income and expense	(1.9)	(1.6)	(68.5)	(72.0)

				2008
	BIPP	BNIPP	BPP	Total
	£m	£m	£m	£m
Actual return on scheme assets	(14.2)	(1.6)	(50.4)	(66.2)
Less: Expected return on scheme assets	(2.9)	(1.0)	(28.8)	(32.7)
	(17.1)	(2.6)	(79.2)	(98.9)
Other actuarial gains	8.2	4.3	56.5	69.0
Actuarial (losses) / gains taken to the statement of recognised income and expense	(8.9)	1.7	(22.7)	(29.9)

Net (liability) / surplus

				2009
	BIPP	BNIPP	BPP	Total
	£m	£m	£m	£m
Present value of benefit obligation	(52.4)	(23.8)	(470.8)	(547.0)
Fair value of plan assets	34.0	16.2	411.7	461.9
Net liability	(18.4)	(7.6)	(59.1)	(85.1)

				2008
	BIPP	BNIPP	BPP	Total
	£m	£m	£m	£m
Present value of benefit obligation	(42.5)	(20.0)	(385.9)	(448.4)
Fair value of plan assets	27.2	13.0	384.3	424.5
Net liability	(15.3)	(7.0)	(1.6)	(23.9)

Movements in the present value of benefit obligation are as follows:

				2009
	BIPP	BNIPP	BPP	Total
	£m	£m	£m	£m
At 28 September 2008	(42.5)	(20.0)	(385.9)	(448.4)
Exchange differences	(7.2)	-	-	(7.2)
Current service cost	(2.2)	(0.3)	(3.5)	(6.0)
Member contributions	(0.7)	-	(1.6)	(2.3)
Interest cost on benefit obligation	(3.0)	(1.3)	(25.5)	(29.8)
Benefits paid	0.9	0.6	14.4	15.9
Actuarial gains / (losses)	2.3	(2.8)	(68.7)	(69.2)
At 27 September 2009	(52.4)	(23.8)	(470.8)	(547.0)

				2008
	BIPP	BNIPP	BPP	Total
	£m	£m	£m	£m
At 30 September 2007	(39.7)	(23.0)	(422.2)	(484.9)
Exchange differences	(5.3)	-	-	(5.3)
Current service cost	(2.6)	(0.3)	(8.1)	(11.0)
Member contributions	(0.7)	-	(1.7)	(2.4)
Interest cost on benefit obligation	(2.4)	(1.4)	(24.8)	(28.6)
Benefits paid	-	0.4	14.4	14.8
Actuarial gains	8.2	4.3	56.5	69.0
At 28 September 2008	(42.5)	(20.0)	(385.9)	(448.4)

The current service cost excludes contributions made by employees of £2.3m (2008: £2.4m).

Movements in the fair value of plan assets are as follows:

				2009
	BIPP	BNIPP	BPP	Total
	£m	£m	£m	£m
At 28 September 2008	27.2	13.0	384.3	424.5
Exchange differences	4.6	-	-	4.6
Expected return on plan assets	2.3	1.0	26.2	29.5
Actuarial (losses) / gains	(4.2)	1.2	0.2	(2.8)
Employer contributions	4.3	1.6	13.8	19.7
Member contributions	0.7	-	1.6	2.3
Benefits paid	(0.9)	(0.6)	(14.4)	(15.9)
At 27 September 2009	34.0	16.2	411.7	461.9

				2008
	BIPP	BNIPP	BPP	Total
	£m	£m	£m	£m
At 30 September 2007	34.3	13.7	431.3	479.3
Currency movement	4.5	-	-	4.5
Expected return on plan assets	2.9	1.0	28.8	32.7
Actuarial losses	(17.1)	(2.6)	(79.2)	(98.9)
Employer contributions	1.9	1.3	16.1	19.3
Member contributions	0.7	-	1.7	2.4
Benefits paid	-	(0.4)	(14.4)	(14.8)
At 28 September 2008	27.2	13.0	384.3	424.5

Categories of scheme assets as a percentage of the fair value of total scheme assets

				2009	2009
	BIPP	BNIPP	BPP	Total	Total
	£m	£m	£m	£m	%
Equities	24.2	12.5	236.8	273.5	59
Bonds and gilts	9.5	2.1	174.1	185.7	40
Cash	0.3	1.6	0.8	2.7	1
Total	34.0	16.2	411.7	461.9	100

				2008	2008
	BIPP	BNIPP	BPP	Total	Total
	£m	£m	£m	£m	%
Equities	20.4	10.0	202.5	232.9	55
Bonds and gilts	3.0	1.7	181.0	185.7	44
Cash	3.8	1.3	0.8	5.9	1
Total	27.2	13.0	384.3	424.5	100

Categories of scheme assets as a percentage of the expected return on assets

				2009	2009
	BIPP	BNIPP	BPP	Total	Total
	£m	£m	£m	£m	%
Equities	1.9 1.9	0.9	16.2	19.0	64
Bonds and gilts	0.2	0.1	10.0	10.3	35
Cash	0.2	-	-	0.2	1
Total	2.3	1.0	26.2	29.5	100

				2008	2008
	BIPP	BNIPP	BPP	Total	Total
	£m	£m	£m	£m	%
Equities	2.7	0.9	19.0	22.6	69
Bonds and gilts	0.2	0.1	9.7	10.0	31
Cash	-	-	0.1	0.1	-
Total	2.9	1.0	28.8	32.7	100

History of experience gains and losses

	2009	2008	2007	2006	2005
	£m	£m	£m	£m	£m
Fair value of schemes assets	461.9	424.5	479.3	388.7	327.6
Present value of defined benefit obligations	(547.0)	(448.4)	(484.9)	(454.5)	(412.2)
Deficit in the schemes	(85.1)	(23.9)	(5.6)	(65.8)	(84.6)
Experience adjustments arising on plan liabilities	2.0	3.3	(17.2)	(2.0)	-
Experience adjustments arising on plan assets	(2.7)	(98.9)	13.6	10.0	32.6

The cumulative amount of actuarial gains and losses recognised since 4 October 2004 in the Group statement of recognised income and expense is an overall loss of £54.5m (2008: gain of £17.5m). The Directors are unable to determine how much of the pension scheme deficit recognised on transition to IFRS and taken direct to equity of £1.3m is attributable to actuarial gains and losses since the inception of those pension schemes. Consequently, the Directors are unable to determine the amount of actuarial gains and losses that would have been recognised in the Group statement of recognised income and expense before 4 October 2004.

Normal contributions of £6.5m and additional contributions of £13.4m are expected to be paid into the pension schemes during the 2010 financial year.

25.	Trade and other payables (currently)

	2009	2008
	£m	£m
Trade payables	187.0	143.7
Other payables	19.9	9.7
Accruals and deferred income	68.6	72.6
Other taxes and social security	16.1	18.3
	291.6	244.3

Trade payables are non-interest bearing and are normally settled on 60 - 90 day terms.

26.	Financial risk management objectives and policies

Overview

The Group's principal financial instruments comprise derivatives, borrowings and overdrafts, cash and cash equivalents. These financial instruments are used to manage interest rate and currency exposures, funding and liquidity requirements. Other financial instruments which arise directly from the Group's operations include trade receivables and payables (see notes 18 and 25 respectively).

It is, and has always been, the Group's policy that no derivative is entered into for trading or speculative purposes.

The main risks arising from the Group's financial instruments are commodity price risk, interest rate risk, foreign currency risk, credit risk and liquidity risk. The Board of Directors review and agree policies for managing these risks as summarised below.

Commodity price risk

The main commodity price risk arises in the purchases of prime materials, being PET, sugar, cans and frozen concentrated orange juice. Where it is considered commercially advantageous, the Group enters into fixed price contracts with suppliers to hedge against unfavourable commodity price changes.

Interest rate risk

The Group's exposure to the risk of changes in market interest rates relates primarily to the Group's long-term debt obligations with floating interest rates.

The Group's policy is to manage its interest cost by maintaining a mix of fixed and variable debt. The Group's policy is to keep between 25% and 70% of its borrowings at fixed rates of interest over a three year time horizon. To manage this, the Group enters into interest rate and cross currency swaps which are designated to hedge underlying debt obligations. At 27 September 2009, after taking into account the effect of interest rate swaps, approximately 62% of the Group's borrowings are at a fixed rate of interest (2008: 57%).

Interest rate risk table

The following table demonstrates the sensitivity to a reasonable possible change in interest rates, with all other variables held constant, of the Group's profit before tax (through the impact on floating rate borrowings).

	Increase / (decrease) in basis points	Effect on profit before tax
		£m
2009
Sterling	200	(2.1)
	(200)	2.1
Euro	200	(2.1)
	(200)	2.1

2008
Sterling	200	(2.6)
	(200)	2.6
Euro	200	(1.6)
	(200)	1.6

Foreign currency risk

Foreign currency risk is primarily in respect of exposure to fluctuations to the sterling-euro and sterling-US dollar rates of exchange. The Group has operations in euro-denominated countries and finances these partly through the use of foreign currency borrowings which hedge the net investment in foreign operations. Additionally cash generation from euro-denominated operations can be utilised to meet euro payment obligations in sterling denominated companies, providing a natural hedge.

The Group also has transactional exposures arising from purchases of prime materials and commercial assets in currencies other than the functional currency of the individual Group entities. Such purchases are made in the currencies of US dollars and euros. As at 27 September 2009, the Group has hedged 48% (2008: 71%) of forecast exposures 12 months in advance using forward foreign exchange contracts.

Where funding is raised in a currency other than the currency ultimately required by the Group, cross currency interest rate swaps are used to convert the cash flows to the required currency. These swaps have the same duration and other critical terms as the underlying borrowing.

The following table demonstrates the sensitivity to a reasonably possible change in the US dollar and euro exchange rates, with all other variables held constant, of the Group's profit before tax (due to changes in the fair value of monetary assets and liabilities) and the Group's equity (due to changes in fair value of forward exchange contracts).

	Increase / (decrease) in currency rate	Effect on profit before tax	Effect on equity
	%	£m	£m
2009
Euro	10	(1.7)	2.4
	(10)	1.4	(2.2)
US dollar	10	-	1.0
	(10)	-	(0.8)

2008
Euro	10	-	0.3
	(10)	-	(0.2)
US dollar	10	-	0.8
	(10)	-	(0.6)

Credit risk

The Group trades only with recognised creditworthy third parties. It is the Group's policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on an ongoing basis with the result that the Group's exposure to bad debts is not significant. The maximum exposure is the carrying amount disclosed in note 18. For transactions that do not occur in the country of the relevant operating unit, the Group does not offer credit terms without the approval of the Head of Finance Shared Services. There are no significant concentrations of credit risk within the Group.

The Group maintains a policy on counterparty credit exposures with banks and financial institutions arising from the use of derivatives and financial instruments. This policy restricts the investment of surplus funds and entering into derivatives to counterparties with a minimum credit rating maintained by either Moody's, Standard & Poors or Fitch. The level of exposure with counterparties at various ratings levels is also restricted under this policy. The level of exposure and the credit worthiness of the Group's banking counterparties is reviewed regularly to ensure compliance with this policy.

Liquidity risk

The Group monitors its risk of a shortage of funds using a recurring liquidity planning tool. This tool considers the maturity of both its financial investments and financial assets (e.g. accounts receivable, other financial assets) and projected cash flows from operations.

The objective of the Group's liquidity policy is to maintain a balance between continuity of funds and flexibility through the use of bank loans and overdrafts and long term private placement issuance. The bank loans entered into by the Group are unsecured. At 27 September 2009, none of the Group's debt will mature in less than one year (2008: 3%) based on the carrying value of borrowings reflected in the financial statements.

The table below summarises the maturity profile of the Group's financial liabilities at 27 September 2009 based on contractual undiscounted payments:

				2009
	Less than 1 year	1 to 5 years	> 5 years	Total
	£m	£m	£m	£m
Unsecured bank loans	2.8	183.0	-	185.8

Private placement notes	15.7	149.5	222.5	387.7
Derivatives hedging private placement notes - payments	11.5	96.1	167.1	274.7
Derivatives hedging private placement notes - receipts	(13.4)	(116.0)	(206.1)	(335.5)
	13.8	129.6	183.5	326.9

Trade and other payables	284.4	-	-	284.4
Other financial liabilities	0.4	-	-	0.4
	301.4	312.6	183.5	797.5
				2008
	Less than 1 year	1 to 5 years	> 5 years	Total
	£m	£m	£m	£m
Unsecured bank loans	21.4	169.8	-	191.2

Private placement notes	14.1	56.5	287.0	357.6
Derivatives hedging private placement notes - payments	11.5	45.8	207.7	265.0
Derivatives hedging private placement notes - receipts	(11.8)	(47.3)	(218.7)	(277.8)
	13.8	55.0	276.0	344.8

Other non-current liabilities	-	1.2	-	1.2
Trade and other payables	226.0	-	-	226.0
Other financial liabilities	1.0	-	-	1.0
	262.2	226.0	276.0	764.2

Details with regard to derivative contracts are included in note 27.

Capital management

The Group defines 'capital' as being net debt plus equity.

The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern and maintain an appropriate capital structure to balance the needs of the Group to grow, whilst operating with sufficient headroom within its bank covenants.

The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group has a number of options available to it including modifying dividend payments to shareholders, returning capital to shareholders or issuing new shares. In this way, the Group balances returns to shareholders between long term growth and current returns whilst maintaining discipline in relation to investing activities and taking any necessary action on costs to respond to the current environment.

The Group monitors capital on the basis of the net debt / EBITDA ratio. Net debt is calculated as being the net of cash and cash equivalents, interest bearing loans and borrowings and the element of the fair value of interest rate currency swaps hedging the balance sheet value of the US private placement Notes. Net debt is shown in note 30. The net debt / EBITDA ratio enables the Group to plan its capital requirements in the medium term. The Group uses this measure to provide useful information to financial institutions and investors. The Group believes that a net debt / EBITDA ratio in the range of 2.0 - 3.0 provides an efficient capital structure and an appropriate level of financial flexibility. At 27 September 2009 the net debt / EBITDA ratio was 2.4 (2008: 2.7).

27.	Financial instruments

Fair values of financial assets and financial liabilities

Set out below is a comparison by category of carrying amounts and fair values of all of the Group's financial instruments, except trade and other receivables and payables.

	Book value	Fair value	Book value	Fair value
	2009	2009	2008	2008
	£m	£m	£m	£m
Financial assets
Cash	39.7	39.7	13.9	13.9
Forward currency contracts	1.8	1.8	0.3	0.3
Cross currency interest rate swaps	51.9	51.9	22.2	22.2
	93.4	93.4	36.4	36.4

Financial liabilities
Interest-bearing loans and borrowings (bank loans and private placement notes):
Fixed rate borrowings	(264.6)	(272.7)	(234.1)	(202.6)
Floating rate borrowings	(186.1)	(186.1)	(180.2)	(180.2)
Bank overdraft	-	-	(1.0)	(1.0)
Forward currency contracts	(0.4)	(0.4)	-	-
	(451.1)	(459.2)	(415.3)	(383.8)

Non-derivative financial assets are categorised as loans and receivables as defined in IAS 39. Non-derivative financial liabilities are all carried at amortised cost.

The fair value of derivatives has been calculated by discounting the expected future cash flows at prevailing interest rates.

The fair value of the current trade and other receivables and payables approximate their book value.

The fair value of fixed rate borrowings has been derived from the sum of future cash flows to maturity discounted back to present values at a market rate.

Hedging activities

Cash flow hedges

At 27 September 2009, the Group held 44 (2008: 32) US dollar and 67 (2008: 8) euro forward exchange contracts designated as hedges of expected future purchases from overseas suppliers in US dollars and euros for which the Group believe to be 'highly probable' transactions. The forward currency contracts are being used to hedge the foreign currency risk of these 'highly probable' transactions. The terms of these contracts are as follows:

		Average
Forward contracts to hedge expected future purchases	Maturity range	exchange rate

2009
US$14,085,000	Sept 09 to Aug 10	£ / US$1.57
€26,515,000	Sept 09 to Aug 10	£ / €1.17

2008
US$13,003,417	Oct 08 to Sept 09	£ / US$1.89
€3,045,235	Oct 08 to Mar 09	£ / €1.27

The terms of the forward currency contracts have been negotiated to match the terms of the commitments.

The cash flow hedges of the expected future purchases in the period to August 2010 have been assessed to be effective and a net unrealised gain of £1.3m (2008: unrealised gain of £0.3m), with a related deferred tax liability of £0.4m (2008: related deferred tax liability of £0.1m), has been included in equity in respect of these contracts. During the period a gain of £3.0m (2008: £0.3m) was removed from equity and included in the Group Income Statement.

In February 2007, Britvic plc issued US$375m and £38m of Senior Notes in the United States Private Placement market.

As a result of this transaction further cash flow hedges were entered into. These are detailed in note 23.

Hedge of net investments in foreign operations

Included in unsecured bank loans at 27 September 2009 was a borrowing of €100.0m (2008: €100.0m) which has been designated as a hedge of the net investment in Britvic Ireland and is being used to hedge the Group's exposure to foreign exchange risk on this investment. Gains or losses on the retranslation of this borrowing are transferred to equity to offset any gains or losses on translation of the net investment in Britvic Ireland.

28. Other non-current liabilities
	2009	2008
	£m	£m
Deferred consideration	-	1.2

The prior period amount relates to the element of additional deferred consideration due to the vendors of Red Devil payable after one year. This deferred consideration is held within current trade and other payables in the current period.

29.	Share-based payments

The expense recognised for share-based payments in respect of employee services received during the 52 weeks ended 27 September 2009, including national insurance, is £7.7m (2008: £8.4m). All of that expense arises from transactions which are expected to be equity-settled share-based payment transactions.

The Britvic Share Incentive Plan ("SIP")

The SIP is an all-employee plan approved by HMRC. The plan allows for annual awards of free ordinary shares with a value of 3% of salary (subject to HMRC maximum limits) together with an offer of matching shares on the basis of one free matching share for each ordinary share purchased with a participant's savings, up to a maximum of £75 per four week pay period. Employees are entitled to receive the annual free share award provided they are employed by the Company on the last day of each financial year and on the award date. There are no cash settlement alternatives.

Awards made during the period are shown in the table below. The fair value of these awards is equivalent to the intrinsic value of the shares.

	No of shares
	2009	2008
Annual free shares award	675,573	477,862
Matching shares award - 1 free share for every ordinary share purchased	464,205	422,225

The Britvic Executive Share Option Plan ("Option Plan")

The Option Plan allows for options to buy ordinary shares to be granted to selected employees. The option price is the average market price of Britvic plc's shares on the three business days before the date of grant. Options become exercisable on the satisfaction of the performance condition and remain exercisable until ten years after the date of grant.

The performance condition requires average growth in EPS of 7% pa over a three year period in excess of the growth in RPI over the same period for the options to vest in full. If EPS growth averages 3% per annum in excess of RPI growth, 25% (2008: 40%) of the options will vest. Straight-line apportionment will be applied between these two levels to determine the number of options that vest and no options will vest if average EPS growth is below the lower threshold.

In some circumstances, at the discretion of the Company, an optionholder who exercises his/her option may receive a cash payment rather than the Ordinary shares under option. The cash payment would be equal to the amount by which the market value of the ordinary shares under option exceeds the option price. However, it is expected that this plan will be equity-settled and as a consequence has been accounted for as such.

The following table illustrates the movements in the number of share options during the period.


	Number of share options	Weighted average exercise price (pence)
Outstanding as at 30 September 2007	3,115,132	245.0
Granted during the period	1,169,621	347.0
Forfeited during the period	(127,211)	245.0
Outstanding as at 28 September 2008	4,157,542	273.7
Granted during the period	2,978,518	221.0
Exercised during the period	(37,201)	245.0
Forfeited during the period	(534,329)	250.7
Outstanding at 27 September 2009	6,564,530	251.8
Exercisable at 27 September 2009	1,201,539	245.0

There were no options exercisable at 28 September 2008.

The weighted average share price at the date of exercise for share options exercised during the period was 317.1p.

The share options outstanding as at 27 September 2009 had a weighted average remaining contractual life of 8.0 years (2008: 8.1 years) and the range of exercise prices was 221.0p - 347.0p (2008: 245.0p - 347.0p).

The weighted average fair value of options granted during the period was 52.3p (2008: 67.1p).

The fair value of equity-settled share options granted is estimated as at the date of grant using a binomial model, taking account of the terms and conditions upon which the options were granted.

The following table lists the inputs to the model used for the 52 weeks ended 27 September 2009.

	2009	2008
Dividend yield (%)	4.3	2.9
Expected volatility (%)	33.1	23.0
Risk-free interest rate (%)	2.9	4.5
Expected life of option (years)	5.0	5.0
Share price at date of grant (pence)	224.0	339.0
Exercise price (pence)	221.0	347.0

The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may also not necessarily be the actual outcome.

The Britvic Performance Share Plan ("PSP")

The PSP allows for awards of ordinary shares to be made to selected employees subject to the satisfaction of a performance condition. Different performance conditions apply to different groups of employees.

The total number of awards granted to members of the senior leadership team during the current period is divided equally between the total shareholder return ("TSR") and return on invested capital ("ROIC") performance conditions described below. In prior years, all of the awards granted to this group were subject to the TSR condition.

Awards granted to members of the senior leadership team are subject to a performance condition which measures the Company's TSR relative to the TSR of a comparator group (consisting of 22 companies) over a three year performance period. The awards will not vest unless the Company's position in the comparator group is at least median. At median 25% (2008: 40%) will vest, rising on a straight-line basis to 100% vesting at upper quartile.

Awards granted to members of the senior leadership team are subject to a performance condition which requires the Company's ROIC to be at least 18.8% over the three year performance period for the award to vest in full. If ROIC is 16.8% over the performance period, 25% of the award will vest. Straight-line apportionment will be applied between these two levels to determine the percentage of awards that vest and no awards will vest if ROIC is below the lower threshold.

Awards granted to members of the senior management team will be subject to a performance condition which requires average growth in EPS of 7% pa over a three year period in excess of the growth in RPI over the same period for the awards to vest in full. If EPS growth averages 3% pa in excess of RPI growth, 25% (2008: 40%) of the awards will vest. Straight-line apportionment will be applied between these two levels to determine the number of awards that vest and no awards will vest if average EPS growth is below the lower threshold.

In addition, a transitional award has been made to members of both the senior leadership team and the senior management team shortly after flotation, at levels varying according to seniority. These awards will vest in tranches over a period of up to three years, subject to the satisfaction of a performance condition. The performance condition requires the Company's ROIC to be at least 17% over the performance period for the award to vest in full. If ROIC is 15% over the performance period, 50% of the award will vest. Straight-line apportionment will be applied between these two levels to determine the percentage of awards that vest and no awards will vest if ROIC is below the lower threshold.

In some circumstances, at the discretion of the Company, vested awards may be satisfied by a cash payment rather than a transfer of ordinary shares. However, it is expected that this plan will be equity-settled and as a consequence has been accounted for as such.

The following table illustrates the movements in the number of shares during the period.

	Number of Shares subject to TSR condition	Number of Shares subject to EPS condition	Number of Shares subject to ROIC condition
Outstanding as at 30 September 2007	1,322,034	1,160,635	2,138,466
Granted during the period	522,013	579,125	-
Vested during the period*	-	-	(1,244,804)
Lapsed during the period	(42,050)	(115,309)	(33,557)
Outstanding as at 28 September 2008	1,801,997	1,624,451	860,105
Granted during the period	680,874	1,389,503	680,873
Vested during the period*	(391,887)	(445,730)	(860,105)
Lapsed during the period	(374,360)	(231,363)	(60,282)
Outstanding at 27 September 2009	1,716,624	2,336,861	620,591
Weighted average fair value of shares granted during the period	121.6p	197.7p	197.7p

* The share price on the date of vesting was 228.0p (2008: 346.5p).

The fair value of equity-settled shares granted is estimated as at the date of grant using separate models as detailed below, taking account of the terms and conditions upon which the shares were granted.

The following table lists the inputs to the models used for the 52 weeks ended 27 September 2009.

	Shares subject to TSR condition	Shares subject to EPS condition	Shares subject to ROIC condition
Valuation model used	Monte Carlo simulation	Share price at date of grant adjusted for dividends not received during vesting period	Share price at date of grant adjusted for dividends not received during vesting period

Dividend yield (%)	4.3	4.3	4.3
Expected volatility (%)	33.1	N/A	N/A
Share price at date of grant (pence)	224.0	224.0	224.0

The following table lists the inputs to the models used for the 52 weeks ended 28 September 2008.

	Shares subject to TSR condition	Shares subject to EPS condition
Valuation model used	Monte Carlo simulation	Share price at date of grant adjusted for dividends not received during vesting period

Dividend yield (%)	2.9	2.9
Expected volatility (%)	23.0	N/A
Share price at date of grant (pence)	339.0	339.0

Share agreement

In addition to the above schemes, the Company's Chairman entered into a share agreement with the Company. Further details are set out in the Directors' Remuneration Report.

30	Notes to the consolidated cash flow statement

Analysis of net debt

	2008	Cash flows	Exchange Differences	Other movement	2009
	£m	£m	£m	£m	£m
Cash at bank and in hand	13.9	25.6	0.2	-	39.7
Bank overdraft	(1.0)	1.0	-	-	-
Net cash	12.9	26.6	0.2	-	39.7

Debt due within one year	(11.6)	11.6	-	-	-
Debt due after more than one year	(402.7)	(0.2)	(45.4)	(2.4)	(450.7)
Debt	(414.3)	11.4**	(45.4)	(2.4)	(450.7)

Derivatives hedging the balance sheet debt*	13.0	-	31.6	-	44.6
Net debt	(388.4)	38.0	(13.6)	(2.4)	(366.4)

	2007	Cash flows	Exchange Differences	Other movement	2008
	£m	£m	£m	£m	£m
Cash at bank and in hand	27.3	(12.6)	(0.8)	-	13.9
Bank Overdraft	-	(1.0)	-	-	(1.0)
Net cash	27.3	(13.6)	(0.8)	-	12.9

Debt due within one year	(13.1)	1.5	-	-	(11.6)
Debt due after more than one year	(417.8)	44.0	(28.8)	(0.1)	(402.7)
Debt	(430.9)	45.5	(28.8)	(0.1)	(414.3)

Derivatives hedging the balance sheet debt*	(6.4)	-	19.4	-	13.0
Net debt	(410.0)	31.9	(10.2)	(0.1)	(388.4)

* Represents the element of the fair value of interest rate currency swaps hedging the balance sheet value of the Notes. This amount has been disclosed separately to demonstrate the impact of foreign exchange movements which are included in debt due after more than one year.

** This includes issue costs on new loans paid during the period of £4.1m. This has been included in the 'Finance costs' in the Consolidated Statement of Cash Flows.

31.	Commitments and contingencies

Operating lease commitments

Future minimum lease payments under non-cancellable operating leases are as follows:

	2009
	Land and buildings	Other	Total
	£m	£m	£m

Within one year	2.3	8.5	10.8
After one year but not more than five years	6.0	17.0	23.0
More than five years	33.0	2.9	35.9
	41.3	28.4	69.7

	2008
	Land and buildings	Other	Total
	£m	£m	£m

Within one year	4.3	8.1	12.4
After one year but not more than five years	11.6	15.5	27.1
More than five years	32.0	1.4	33.4
	47.9	25.0	72.9

Capital commitments

At 27 September 2009, the Group has commitments of £3.2m (2008: £0.8m) relating to the acquisition of new plant and machinery.

Contingent liabilities

As reported in the 2008 Annual Report, on 28 April 2008 Britvic plc received a request for information from the Office of
Fair trading ("OFT") in connection with the OFT's investigation into potential co-ordination of retail prices between the UK's major supermarkets in breach of competition law. Britvic provided the information requested within a timeframe agreed with the OFT and will continue to cooperate with the OFT. No assumption should be made that there has been a breach of law. Britvic's policy is to comply with all laws and regulations including competition law.

The Group had no material contingent liabilities at 27 September 2009.

32.	Related party disclosures

The consolidated financial statements include the financial statements of Britvic plc and the subsidiaries listed in the table below. Particulars of dormant and non-trading subsidiaries which do not materially affect the Group results have been excluded.

Name	Country of incorporation	% equity interest
Directly held
Britannia Soft Drinks Limited	England & Wales	100
Indirectly held
Britvic Holdings Limited	England & Wales	100
Britvic International Limited	England & Wales	100
Britvic Soft Drinks Limited	England & Wales	100
Robinsons Soft Drinks Limited	England & Wales	100
Orchid Drinks Limited	England & Wales	100
Red Devil Energy Drinks Limited	England & Wales	100
Britvic Irish Holdings Limited	Republic of Ireland	100
Robinsons (Finance) Limited	Republic of Ireland	100
Britvic Ireland Limited	Republic of Ireland	100
Britvic Northern Ireland Limited	Republic of Ireland	100
Britvic Licensed Wholesale Limited	Republic of Ireland	100
Britvic Logistics Limited	Republic of Ireland	100
Ballygowan Limited	Republic of Ireland	100
Aquaporte Limited	Republic of Ireland	100
William J Dwan & Sons Limited	Republic of Ireland	100

Key management personnel are deemed to be the Executive and Non-Executive Directors of the Company and members of the Executive Committee. The compensation payable to key management in the year is detailed below.

	2009	2008
	£m	£m
Short-term employee benefits	4.6	3.2
Post-employment benefits	0.5	0.4
Share-based payment	1.6	2.3
	6.7	5.9

There were no other related party transactions requiring disclosure in these financial statements.

33.	Going concern

The Directors are confident that it is appropriate for the going concern basis to be adopted in preparing the financial statements despite the fact that, as at 27 September 2009, the Consolidated Balance Sheet is showing a net liabilities position of £2.5m (28 September 2008: net assets of £9.3m).

Group reserves are low due to the capital restructuring undertaken at the time of flotation. This does not impact on Britvic plc's ability to make dividend payments.

The liquidity of the Group remains strong in particular in light of the refinancing of the Group's committed facility during the period as well as the additional funding proposed in note 34.

34.	Post balance sheet event

In November 2009, the Company reached agreement with a number of investors in the US private placement market to raise an additional $250m of funding for terms between 5 and 10 years. The funding is subject to documentation and due diligence which is scheduled to be completed in December 2009. This dollar funding is hedged using cross currency interest rate swaps to meet the Company's desired funding profile and to remove any associated foreign currency risk from the Income Statement.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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Britvic (BVIC)

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