Preliminary Results - 53 Week

RNS Number : 2276X

Britvic plc

02 December 2010

Britvic plc Preliminary Results

2^nd December 2010

Britvic plc ("Britvic") today announces its preliminary results for the 53 weeks ended 3^rd October 2010 ("the period"). Numbers in this announcement are all quoted before exceptional and other items, except where stated otherwise. Year-on-year comparatives are quoted on a 52 week vs. 52 week basis and therefore exclude the incremental impact of the additional week in 2010. Britvic France was acquired on 28^th May 2010. Prior year Profit and Loss numbers are stated on a constant currency basis to eliminate performance variations driven by foreign exchange translation.

	53 weeks ended 3^rd October 2010 £m	52 weeks ended 26^th September 2010 £m	52 weeks ended 27^th September 2009 £m	% change
Group Revenue	1,138.6	1,121.1	978.5	14.6%
Ex-France	1,053.4	1,035.9	978.5	5.9%
France	85.2	85.2	-	-

Group EBIT	134.6	129.6	109.7	18.1%
EBIT Margin
Group	11.8%	11.6%	11.2%	40bps
Ex-France	12.1%	11.8%	11.2%	60bps

Group Profit Before Tax	109.1	104.6	86.1	21.5%
Group Profit After Tax	80.0	76.8	63.8	20.4%
Group Profit After Tax, After Exceptional And Other Items	(48.2)	(51.4)	46.3	(211.0)%

Group EBITA ⁽¹⁾	144.1	139.1	118.3	17.6%
Adjusted Group Net Debt ⁽²⁾	(451.2)	-	(366.4)	23.1%

Adjusted Earnings Per Share ⁽³⁾	39.8p	-	33.7p	18.1%
Full year Dividend Per Share	16.7p	-	15.0p	11.3%

Underlying Free Cash flow ⁽⁴⁾	67.8	-	69.7	(2.7)%
Underlying ROIC ⁽⁵⁾	22.4%	-	17.9%	450bps

Financial Highlights (53 week unless stated):

· Group (ex-France) 52 week revenue growth of 5.9%, driven by GB/International, up by 8.6%;

· Ex-France, a 52 week EBIT margin improvement of 60 basis points;

· Adjusted (for amortisation) EPS growth of 18.1% to 39.8p;

· Full year dividend per share up 11.3% to 16.7p;

· Adjusted Group Net Debt to EBITDA ratio of 2.4x, on a pro-rata basis;

· A non-cash exceptional impairment charge of £104.2m on the carrying value of Britvic Ireland's

intangible and property assets.

Business Highlights:

· Continued market share gains across the GB brand portfolio;

· A successful innovation programme, including the GB launch of Mountain Dew Energy;

· Further expansion into mainland Europe with the successful acquisition of Britvic France for €237.0m, completed at the end of May;

· Major new launches in 2011 of Fruit Shoot in Australia, Belgium and an extension of Fruit Shoot trials in the U.S.

The Board is proposing a final dividend per share of 12.0p bringing the full year dividend per share to 16.7p, an increase of 11.3% on the prior year. This reflects the Board's continuing confidence in the future prospects of the business, as well as the underlying cash generative nature of its activities.

Paul Moody, Chief Executive commented:

"Britvic has again demonstrated its ability to grow the business despite the difficult conditions in the wider economy. This performance was achieved through the breadth and quality of our brand portfolio, strong delivery of innovation and a targeted and focused programme to grow our business internationally.

We are delighted that Britvic France is performing well and its integration into the Group is on plan. We are taking further steps to restructure our business in Ireland and believe that this, along with our strong brands and leading market positions will create a platform to enable us to rebuild the profitability of this business.

Whilst we expect the consumer and cost environment to remain challenging, we are confident in our ability to compete strongly in the markets in which we operate. The Group's extensive brand and innovation plans, combined with satisfactory trading in the first few weeks of the new financial year, mean we are in good shape to deliver another robust set of results for the year ahead."

For further information please contact:

Investors:

Craig Marks +44 (0)1245 504 330

Media:

Marisa Fitch +44 (0)7808 098 292

Tom Buchanan/Zoë Bird (Brunswick) +44 (0)20 7404 5959

There will be a live-webcast of the presentation given today at 9.30am by Paul Moody (Chief Executive) and John Gibney (Group Finance Director). The webcast will be available at http://ir.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 3140 0668
UK Toll Free	0800 368 1950
US Access Number	+1 631 510 7490
US Toll Free	1866 928 6049
Participant PIN Code	143013#

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

UK Toll Access Number	+44 (0)20 3140 0698
UK Toll Free Number	0800 368 1890
US Toll Free Number	+1 877 846 3918
Conference Reference	375238#

Notes to editors

Britvic is one of the leading branded soft drinks businesses in Europe. Britvic is the largest supplier of branded still soft drinks in Great Britain ("GB"), and the number two supplier of branded carbonated soft drinks in GB. The Company leverages its leading brand portfolio including Robinsons, Tango, Drench, J₂O and Fruit Shoot as well as PepsiCo brands such as Pepsi and 7UP which Britvic produces and sells in GB and Ireland under exclusive PepsiCo agreements.

Britvic is an industry leader in the island of Ireland with brands such as MiWadi and Ballygowan, and in France with brands such as Teisseire and Fruité. Britvic is growing its reach into other territories through export, licensing and franchising. Britvic's Management team has successfully developed the business through a clear strategy of organic growth and international expansion based on creating and building scale brands. Britvic is listed on the London Stock Exchange under the code BVIC. Its market capitalisation as at 3^rd October 2010 was £1.2bn.

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 Group 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 GB and Britvic International's 2010 year runs from 28^th September 2009 to 3^rd October 2010. 2010 is an infrequent 53 week period.

Britvic Ireland and Britvic France report on a monthly basis to 30^th September 2010.

The acquisition of Britvic France was completed on 28^th May 2010, and the full year data for the Group shown in the performance table above reflects the period from 28^th May to 30^th September 2010 for Britvic France.

Market Data

GB take-home market data referred to in this announcement is supplied by Nielsen and runs to 2^nd October 2010. Britvic GB Pubs and Clubs market data referred to in this announcement is supplied by CGA and runs to 31^st August 2010. ROI grocery market data referred to in this announcement is supplied by Nielsen and runs to 3^rd October 2010. French market data is supplied by IRI and runs to 26^th September 2010.

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) EBITA is defined as operating profit before exceptional and other items and amortisation.

(2) Adjusted Group Net Debt is defined as Group net debt, adding back the impact of derivatives hedging the Balance Sheet debt.

(3) Adjusted Earnings Per Share amounts are calculated by dividing the (loss)/profit for the period attributable to ordinary equity holders before exceptional and other items and adding back amortisation, by the weighted average number of ordinary shares outstanding during the period excluding any owned shares held by Britvic that are used to satisfy various employee share-based incentive programmes. The weighted average number of ordinary shares in issue for adjusted earnings per share for the period was 224.9m (2009:214.9m).

(4) Underlying Free Cash flow is defined as net cash flow excluding movements in borrowings, dividend payments, exceptional and other items and the acquisition of Britvic France.

(5) Underlying Return on Invested Capital (ROIC) - ROIC is a performance indicator used by Management and defined as operating profit after tax before exceptional and other 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. The measure also excludes the first-time impact of Britvic France and the impact of intangible asset impairments in Ireland in 2010.

All numbers in this announcement other than where stated or included within the Financial Statements are disclosed before exceptional and other items.

Reconciliation from Statutory to Constant Currency Comparatives

Constant currency basis retranslates foreign currency denominated results of the Group at current period exchange rates to aid comparability.

	2009 Reported £m	Change £m	2009 Constant Currency £m
Group Revenue	978.8	(0.3)	978.5
Group EBIT	110.1	(0.4)	109.7
Group Profit Before Tax	86.5	(0.4)	86.1
Group Profit After Tax (PAT)	64.2	(0.4)	63.8
Group PAT, After Exceptional And Other Items	46.8	(0.5)	46.3
Group EBITA	118.7	(0.4)	118.3
Adjusted Earnings Per Share	33.9p	(0.2)p	33.7p

The Preliminary Results announcement for the 53 week period ended 3^rd October 2010 has been prepared in accordance with International Financial Reporting Standards as adopted by the European Union. Preliminary Results do not constitute Statutory Accounts within the meaning of Section 434 of the Companies Act 2006. They have, however, been extracted from the Statutory Accounts for the 53 week period ended 3^rd October 2010 on which an unqualified report which did not contain an emphasis of matter reference or a statement under Section 498 (2) or (3) of Companies Act 2006 has been made by the Company's Auditors.

Business Review

Chief Executive's Review

In 2010 our GB business delivered revenue growth in both our carbonates and stills portfolios, and our International division again drove double-digit revenue growth. The combined GB and International business is up 8.6% by revenue on last year.

The 4 building blocks for revenue growth in GB continued to underpin our performance in 2010:

· Market volume growth of 2-3% in an average year

o Actual GB market growth of 2.3%

· Innovation expected to add 1-2% to the GB top line over a full year

o 2010 saw this figure exceeded

· Driving On-The-Go distribution

o On-The-Go value share up 0.6% this year (Source: Nielsen MAT October 2010)

· ARP up by at least 1% in an average year

o An average increase of 1.2% over the last two years in GB.

The increasingly important Britvic International business unit saw revenue growth of 15.2%, driven by an expanded portfolio, plus account wins in the export and travel sectors. Margins continue to expand, and today we are pleased to unveil exciting new franchising developments for the Fruit Shoot brand in both the U.S. and Australia.

2010 proved to be a challenging year for businesses in Ireland and we were not immune to this pressure. The Irish soft drinks market continued to decline in value and this impacted Britvic Ireland at both a revenue and profit level. As a result of these long-term changes to the market the Board has decided to take a £104.2m write-down on the carrying value of intangible and property assets. In addition, we are reviewing the scale and go-to-market effectiveness of operations in Ireland, and will report on the outcome of this review in due course. We remain fully committed to the Irish business and firmly believe the strength of our portfolio will deliver growth when market recovery begins.

In the last year we have seen Britvic expand its operations into mainland Europe with the acquisition of Fruité Entreprises SA in May. We believe this to be an excellent acquisition for Britvic and given the strong post-acquisition trading, that was in line with our expectations, we look forward to developing the Britvic France business over the next twelve months and beyond.

The Soft Drinks Market

2010 saw a return to growth for the GB take-home market following the 0.9% volume decline in 2009. The GB take-home market was up 2.3% in volume and 6.3% in value. Both carbonates and stills experienced similar levels of volume growth but carbonates drove the value growth with an impressive 9.2% improvement on last year.

Within carbonates the Cola, Fruit and Glucose/Stimulant sub-categories all enjoyed growth. Glucose/Stimulant again saw double-digit growth, up 17.7% on last year. Encouragingly all carbonate sub-categories delivered value growth in the year.

Nearly all stills sub-categories in GB enjoyed growth in 2010. For example, Squash, and Juice Drinks saw strong value growth of 5.6% and 7.4% respectively. Dairy was the only stills sub-category in value decline, albeit by only 0.1%.

Once again it is branded soft drinks that have driven GB market growth in 2010 as private label share continues to decline.

The GB Pub & Club soft drinks market faced continuing challenges in the year, with a quarterly and MAT (to July) volume decline of 5.0%. The football World Cup failed to deliver a favourable impact, and the uncertain consumer environment looks set to continue within this channel into 2011.

In France market value grew by 3.8%, with all categories except Flavoured Water in growth. Britvic France currently materially operates only in the Syrup and Pure Juice categories, which were up by 3.3% and 3.8% in value respectively.

As Irish consumers seek value in their spending the larger grocers and European discounters have enjoyed growth. The combination of this shift in spending habits and the increasingly competitive landscape can be highlighted by the total grocery market data where volumes are up 4.3% but value is down 5.4%. In the last year we have seen significant shifts in consumer-shopping behaviours. Channels that have traditionally been a strength of the Irish business such as the licensed and convenience channels have continued to decline, losing value ahead of volume.

Britvic's Strategy Execution

Management action this year has continued to focus on five main areas:

1. Supporting And Growing Our Core GB Brands

Brand creation and development are at the heart of what we do at Britvic. Britvic GB's six core brands are Pepsi, 7UP, Robinsons Squash, Tango, Fruit Shoot and J₂O, and 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 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:

· Pepsi continued to grow its share of the Cola category this year, gaining both volume and value share in all of the regular, diet and Max variants. The campaign based around the FIFA football World Cup finals saw another engaging consumer campaign that was the platform to gain share despite the brand not being a primary sponsor of the tournament. The successful introduction of the upsized 600ml carbonates pack for the non-sugar variants led to significant growth in volume, revenue, rate of sale and points of distribution for the brand.

· Robinsons maintained its position as the number one Squash in GB, growing in both volume and value. 2010 saw the 75th anniversary of its association with Wimbledon tennis and consumer campaigns that leveraged this heritage and our recently established association with the pantomime season.

· The Fruit Shoot brand remains the number one kids drink brand (Source: Nielsen MAT to October 2010) with its range offering kids and parents a choice of variants and pack sizes to meet all occasions. The addition of the premium offering, My-5, attracted shoppers and parents who were engaged with the high-juice and quality attributes of the proposition.

· Both Tango and 7UP enjoyed double-digit market value growth this year reflecting our strength within the Fruit Carbonates category. The introduction of the 600ml pack for both brands, the reintroduction of the 440ml can for Tango and relevant campaigns for the consumer helped to deliver this growth.

2. Innovation and Product Launches

The 2010 innovation stream saw the introduction of a new brand, brand extensions and new pack formats designed to deliver ARP, revenue and margin accretion.

The iconic North American brand Mountain Dew was introduced with a new energy formulation developed specifically for the UK consumer. Initially only available in 500ml for the "on-the-go" occasion it has been especially successful, driving 70% of forecourt glucose-energy growth and 90% of overall Glucose/Stimulant category growth (Source: Synovate 12 weeks to Aug 2010). Although it is still early in its development it has surpassed our high expectations and we are very optimistic for its prospects in 2011.

The 600ml pack for the low / no sugar carbonates brands, referenced earlier, was introduced to provide a bigger bottle with better value across Pepsi Max, Diet Pepsi, Tango and 7UP-Free. This has been well received and has played a major part in driving our carbonates ARP and revenue growth.

The J₂O brand has been extended with the introduction of the White Blend sub-brand. The formulation has been specially developed for the "with-food" occasion and recently won a Gold Award at The Publican Licensees' Choice Awards in the "Best New Drink" category which covers both alcoholic and non-alcoholic drinks.

Robinsons Squash saw the development of "Select", aimed at older consumers with a range of more exotic flavour combinations. This new 850ml pack has again supported our aim of growing ARP and margin through innovation.

This year has seen a focus on the nurture of our innovation launches from 2008 and 2009. Lipton Ice Tea, Juicy Drench and Robinsons Be Natural continue to grow and establish themselves with consumers. As an example, Juicy Drench has become the most successful soft-drink launch within the Impulse channel in the last three years (Source: Nielsen March 2010).

The Gatorade brand has not fully met our expectations, and learning from this, we are undertaking a substantial relaunch of the brand in 2011, with a refocus on packaging, flavour profiles and brand equity.

3. Britvic International

Our International business has seen particular success in recent years with our products available in over 50 countries. Britvic International is now embarking on a three-pronged growth strategy across export, travel and licensing/franchising.

Its performance in the year was driven by an expanded portfolio including J₂O, Tango and Drench, plus account wins in the export and travel sectors such as Virgin Atlantic. Margins continue to expand, and we today are pleased to unveil exciting new franchising developments for the Fruit Shoot brand in both the U.S. and Australia.

As part of its licensing and franchising ambitions, we have recently entered into a long-term manufacturing and distribution agreement with Bickford's Australia for Fruit Shoot, a brand that is increasingly demonstrating that it has worldwide potential. Bickford's is an Adelaide-based manufacturer of premium soft drink brands. Bickford's has complete national go-to-market capability and has a proven track record of building premium brands. Bickford's therefore represents an ideal partner for Britvic in this market.

Under the agreement, Bickford's will manufacture, market and sell the brand, with Britvic supplying key juice and flavour ingredients. Specific formulations and packaging solutions have been designed for the Australian market, following extensive market research.

Britvic will also be making financial contributions to the A&P campaign to deliver consumer awareness and increase demand, consistent with the approach taken in Europe.

There is a well established and clearly defined kids' drink category in Australia. Our long-term ambition is to establish Fruit Shoot as one of the leading brands in the category, with the express intention of adding value to a category that has, certainly in the recent past, been promotionally led.

Over the past couple of years, we have also been trialling Fruit Shoot in the South-Eastern U.S. with Buffalo Rock, one of the largest independent Pepsi bottlers in the US, as part of a long-term distribution arrangement.

We are also very excited about further trialling and distribution of Fruit Shoot on the Eastern Seaboard of the U.S. in recent months with an additional bottling partner. We have been in discussion about the brand with a number of bottlers in the U.S. this year and a strong trial performance has ensured a positive response. We anticipate that the recent success will lead to a full commercial roll-out in these additional states in 2011. This performance bodes well for further expansion and engagement with other bottlers and, importantly, the potential for the local manufacture of Fruit Shoot.

Britvic has a portfolio of brands which have the potential to create value on a wider platform and we are committed to exploiting these opportunities through developing local relationships with suitable bottling partners around the world.

Finally, the exciting forthcoming full launch of Fruit Shoot in Belgium, launched under the Teisseire brand as an export-based operation, has the potential to match the success of the brand in the Netherlands. We will disclose further details of this launch in due course.

4. Britvic Ireland

The economic challenges in Ireland are well documented and have had a material impact on the performance of the Ireland business unit. Both revenue and margin have come under severe pressure as retailers and manufacturers respond to the changing consumer environment.

We believe some of these factors will have a longer-term impact on the market and this has led us to write-down the carrying value of intangible assets and properties by £104.2m as a non-cash exceptional charge. Management has been focused on ensuring that we have the appropriate business model in place to deliver future growth and ensure we are in the right shape to take advantage of the opportunities that will develop in the medium-term. We will announce details on this new significant go-to-market structure in due course.

5. The Acquisition of Fruité Entreprises SA

In May 2010 we successfully concluded the acquisition of Fruité Entreprises SA and its brands such as Teisseire - a syrup, or dilutables brand that is as familiar to French households as Robinsons is in GB. This represents our first acquisition in mainland Europe and creates the opportunity to develop both the existing French brands as well as introduce new brands. The renamed Britvic France business produces both syrups and pure juices under the Teisseire, Moulin de Valdonne, Pressade and Fruité brands as well as having a significant private-label business. In the French market private label has a bigger role to play than in GB and gives us the economies of scale to compete effectively.

The integration and trading since acquisition have performed in line with our high expectations, and we remain confident of delivering the announced €17m of synergies by 2013. The French Management team have been retained and bring with them years of experience of selling soft drinks in France, and we are delighted to welcome our new colleagues to the Britvic Group.

Summary

We have delivered continued strong growth across our core GB and International businesses, consolidating our brands' leading positions in the sub-categories where they compete. The rapidly growing International division has now entered an exciting new phase in its development, and we are confident that we start the 2011 financial year with a fresh and relevant go-to-market structure in Ireland. With the acquisition of Britvic France, we are now established as a leading European soft drinks business that continues to build on its proven track record of growth.

Financial Review

The following discussion is based on Britvic's results for the 52 weeks ended 26^th September 2010 ("the period") compared with the same period last year, and all numbers exclude exceptional and other items. Therefore the benefit of the 53^rd week in 2010 is excluded.

Key performance indicators

The principal key performance indicators that Management use to assess the performance of the Group 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 and other items, divided by revenue. As a more appropriate measure, the Group will focus on EBITA as its operating profit measure from 2011 and will report each business unit's performance down to the brand contribution level. EBITA will be reported only at a Group level.

· Underlying free cash flow - is defined as net cash flow excluding movements in borrowings, dividend payments, exceptional and other items and the acquisition of Britvic France.

· Underlying return on invested capital (ROIC) - ROIC is a performance indicator used by Management and defined as operating profit after tax before exceptional and other 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. The measure also excludes the first-time impact of Britvic France and the impact of intangible asset impairments in Ireland in 2010.

Overview

Britvic produced 2.0bn litres of soft drinks in 2010.

In that period the Group grew underlying volumes by 7.4% to 1.9bn litres and underlying revenue by 5.9% to £1.0bn. ARP in the GB business grew by 0.2p whilst in Ireland it fell by 3.7p.

Operating profit (EBIT) before exceptional and other items for the period was up 18.1% to £129.6m in part due to the acquisition of Britvic France. The acquisition of Britvic France contributed £85.2m to revenue with the acquisition being completed ahead of the key summer trading period.

Britvic's guidance on operating profit margin now takes account of the acquired Britvic France, and is therefore now defined as an average 0.5% per annum increase in the Group EBITA margin over the medium term. This is in line with previous Group EBIT margin improvement guidance.

GB Stills	52 weeks ended 26 Sep 2010 £m	52 weeks ended 27 Sep 2009 £m	% change
Volume (million litres)	514.4	496.8	3.5
ARP per litre	70.5p	70.5p	-
Revenue	362.7	350.2	3.6
Brand contribution	169.0	156.5	8.0
Brand contribution margin	46.6%	44.7%	190bps

In GB Stills the volume growth of 3.5% meant an outperformance of the stills take-home market which grew by 2.5%. A flat ARP sees revenue growth of 3.6% to £362.7m. Performance highlights included:

· Fruit Shoot maintaining its position as the number one kids soft drink;

· Juicy Drench continuing to establish itself in its first full year;

· Robinsons reinforcing its position as the number one Squash brand, and;

· The launch of Robinsons Select and Fruit Shoot My-5, adding new consumers to the brands.

Our GB stills portfolio outperformed the market by 1.0%, with particular growth from Fruit Shoot and Robinsons. ARP was flat partly due to channel mix, though the strength of Robinsons, a lower than average ARP brand, had the biggest impact on overall ARP. With a rise in the brand contribution margin by 190bps, we saw overall brand contribution up 8.0%, with value protected. Part of this margin success was due to the significant below-the-line investment we continued to make in our go-to-market capability this year.

GB Carbonates	52 weeks ended 26 Sep 2010 £m	52 weeks ended 27 Sep 2009 £m	% change
Volume (million litres)	1,097.4	995.7	10.2
ARP per litre	42.7p	41.8p	2.2
Revenue	468.4	416.7	12.4
Brand contribution	183.5	151.2	21.4
Brand contribution margin	39.2%	36.3%	290bps

We delivered a volume outperformance of the market of over 8% in 2010 in GB Carbonates. Alongside this, we achieved an overall ARP growth of 2.2% and this combination of volume and pricing growth means we drove revenue growth of 12.4%.

Brand contribution of £183.5m represents growth of 21.4% on the previous year, with the brand contribution margin accelerating by 290bps, in part due to the success of our On-The-Go strategic plan and innovations launched earlier this year. This was all despite the ongoing pressures from the Pubs and Clubs channel and a football-led promotional summer. The revenue and market share success in the year did not come at the expense of value or profitability.

The margin growth of 290bps was in part due to the substantial investment we have made below-the-line in direct selling costs and overheads. This has included continued investment in our customer management team, supporting business functions as well as increasing investment at the point of purchase.

International	52 weeks ended 26 Sep 2010 £m	52 weeks ended 27 Sep 2009 £m	% change
Volume (million litres)	35.0	28.8	21.5
ARP per litre	73.7p	77.8p	(5.3)
Revenue	25.8	22.4	15.2
Brand contribution	9.0	7.6	18.4
Brand contribution margin	34.9%	33.9%	100bps

2010 was another year of double-digit revenue growth for Britvic International. This increasingly important part of the Group saw revenue growth of 15.2%, with a particularly strong volume performance, driven by an expanded portfolio and account wins in the export and travel sectors, such as Virgin Atlantic. ARP was diluted mainly due to the one-off impact of scale introduction of water brands into the airline sector.

As we establish our presence in core markets, the margin continues to expand, this time by a further 100 basis points. As part of the integration of our French business the Britvic International division will manage the export element of our French brand portfolio.

We are actively exploring other franchise and export opportunities across the world as noted in the Business Review above, principally with Fruit Shoot and Robinsons propositions, and we continue to invest ahead of growth in this area.

Ireland	52 weeks ended 30 Sep 2010 £m	52 weeks ended 30 Sep 2009 £m	% change
Volume (million litres)	229.1	226.1	1.3
ARP per litre	58.4p	62.1p	(6.0)
Revenue	179.0	189.2	(5.4)
Brand contribution	64.1	70.7	(9.3)
Brand contribution margin	35.8%	37.4%	(160)bps
EBITA	8.4	13.5	(37.8)
EBIT	6.8	11.8	(42.4)

Note: Volumes and ARP include own-brand soft drinks sales and do not include third party drink sales included within total revenue and brand contribution. EBITA and EBIT are disclosed this year for the last time to show the impact of the synergies generated from the acquisition of Britvic Ireland in 2007.

It has been another tough year for the Irish soft drinks market, though this year's Britvic Ireland volume growth of 1.3% is in stark comparison to last year's 10.7% fall. The structural category deflation seen this year, as well as unprecedented levels of promotion in the market, have had an impact at both a pricing and margin level.

As a result of the shrinking Ireland market, we have utilised the spare capacity in our Irish assets to produce stock for the GB business, principally the Mountain Dew Energy and Robinson's brands.

We have regularly kept the carrying value of Irish tangible and intangible assets under review and, reflective of a rebased business model and market, we are recognising a one-off, exceptional non-cash impairment charge of £104.2m this year. This charge includes a significant write-down of the value of goodwill, intangible assets such as trade names and commercial relationships, plus write-downs for properties.

France	28 May 2010 to 30 Sep 2010 £m
Volume (million litres)	104.5
ARP per litre	81.5p
Revenue	85.2
Brand contribution	24.1
Brand contribution margin	28.3%

Fruité Entreprises SA was acquired by Britvic on 28^th May 2010 for a consideration of €237.0m, funded through a combination of debt and equity. Since that time, the Company traded strongly through favourable summer weather conditions, and generated £85.2m of revenue. Partly due to the substantial element of private label sales, the brand contribution margin is lower than the Group average, though the delivery of the previously stated €17m of cost and revenue synergies by 2013 will benefit the French margin.

Fixed Costs	52 weeks ended 26 Sep 2010 £m	52 weeks ended 27 Sep 2009 £m	% change
Non-brand A&P	(10.4)	(8.1)	(28.4)
Fixed supply chain	(94.9)	(87.3)	(8.7)
Selling costs	(116.2)	(102.6)	(13.3)
Overheads and other	(98.6)	(78.3)	(25.9)

Total	(320.1)	(276.3)	(15.9)

Total A&P investment	(56.7)	(52.6)	(7.8)
A&P as a % of net revenue*	5.3%	5.7%	(40)bps

(* excludes 3^rd Party revenue)

Fixed costs increased by 15.9% in the period, though the ex-France increase is a reduced 9.8%. There have been a number of drivers of the increase, with the following examples:

· We have continued to invest in the below-the-line costs to support the growth in the top-line and margin. This year we have continued investment in direct selling costs, and this investment in customer management resource and point-of-purchase spend has been crucial to the success in GB.

· Within overheads there is an increase in the cost of performance incentives, foreign exchange movements and Irish pension costs. We will again invest for growth in 2011 around Group capability, appropriate structures and global ambitions for Britvic International.

Another strong top-line performance meant that A&P as a percentage of sales has fallen. It is also worth noting that the private label element of Britvic France's sales drives a lower percentage spend, though the GB business has again invested a higher pound spend on A&P this year, this time by a further £3.2m, with the GB percentage remaining level at 5.6%. Britvic has certainly benefitted from a stronger return on A&P in recent years by using more effective channels such as viral and digital media.

Strong brands need strong investment, and the focus of our marketing strategy has evolved towards marketing at the point of purchase, with investment in customer and channel marketing activity increasing by 70% since 2007.

Exceptional And Other Items

During the 53 week period, Britvic incurred pre-tax exceptional and other costs and profits which netted to £137.9m in total, with cash exceptional items comprising £13.1m. The main exceptional and other items include:

· The £89.6m write-down in the carrying value of Britvic Ireland's intangible assets;

· The £14.6m write-down in the carrying value of Britvic Ireland's property assets;

· The £11.4m write-down in the carrying value of several non-core GB brands. Our focus on Mountain Dew Energy as our lead Glucose/Stimulant brand means that the small GB Red Devil brand will not be a growth brand of the future. In light of this we have written- down the value of this brand that was acquired in 2002. Also we have written-down the value of the Amé and Aqua Libra brands that we acquired from Orchid drinks some years ago;

· Britvic Ireland restructuring costs of £5.7m;

· Britvic France acquisition and integration costs of £8.5m.

Interest

The net finance charge before exceptional and other items for the 52 week period for the Group was £25.0m compared with £23.6m in the same period in the prior year. A low interest environment and another year of reduction in ex-France net debt have been outweighed by the debt-based funding of the French acquisition in May 2010.

Taxation

The 52 week tax charge of £27.8m before exceptional and other items represents an effective tax charge of 26.6%, an increase on last year actual of 0.8% primarily due to the profit mix effect from the performance of Britvic Ireland, as well as the higher tax regime in France.

Adjusted Earnings Per Share

Adjusted basic EPS for the period (53 week basis), excluding exceptional and other items and amortisation, was 39.8p, up 18.1% on the same period last year of 33.7p. Basic EPS (after exceptional and other items) for the period was (21.4)p compared with the actual 21.8p for the same period last year.

Dividends

The Board is recommending a final dividend for 2010 of 12.0p per share. Together with the interim dividend of 4.7p per share paid on 2^nd July 2010, this gives a total dividend for the year of 16.7p per share, an increase of 11.3% on the dividend paid last year. Subject to approval at the AGM, the total cost of the dividend for the Financial Year is estimated to be £40.0m and the final dividend will be paid on 11^th February 2011 to shareholders on record as at 10^th December 2010.

Cash Flow and Net Debt

Underlying free cash flow, defined above, was £67.8m in 2010, only £1.9m behind the prior year number despite the adverse working capital effect of a 53^rd week.

Additional contributions were made to the defined benefit pension schemes of £13.2m in the year as part of the ongoing programme agreed with Trustees.

At 3^rd October 2010, the Group's non-adjusted net debt was £515.9m compared to £411.0m at 27^th September 2009, impacted by the debt element of the Fruité acquisition. The adjusted net debt (taking into account the foreign exchange movements on the derivatives hedging our U.S. Private Placement debt) at 3^rd October 2010 is £451.2m.

Capital Employed

Non-current assets increased in the period from £576.1m to £680.0m due in the main to the acquisition of Britvic France, offset by the asset write-downs in Ireland, but also underlying capital expenditure, and an increase in the fair value of derivatives hedging the Balance Sheet debt.

Depreciation increased in the period by £2.8m to £32.9m. The increase on the prior year relates primarily to the acquisition of Britvic France. Current assets also increased from £272.3m to £366.1m. At the same time current liabilities increased from £303.3m to £366.4m driven principally by an increase in trade and other payables.

Underlying ROIC, which excludes France and the impairment of Ireland, has improved to 22.4% from 17.9% in 2009. Overall ROIC, including the part-year contribution from France and the impairment of the Irish asset base, has improved by 40bps to 18.3%.

Share Price And Market Capitalisation

At 3^rd October 2010 the closing share price for Britvic plc was 481.2p. The Group is a member of the FTSE 250 index with a market capitalisation of approximately £1.2bn on 3^rd October 2010.

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 that are managed by Treasury include exposures to movements in interest rates and foreign exchange. The Treasury department is responsible for the management of the Group's debt and liquidity, currency risk, interest rate 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 3^rd October 2010, the Group's non-adjusted net debt of £515.9m (excluding derivative hedges) consisted of £126.3m drawn under the Group's committed bank facilities, £445.7m of private placement notes and £1.5m of finance leases. This was netted off with around £54.0m of surplus cash and £3.6m of issue costs of loans.

In September 2010, the Group reached agreement with a number of investors in the U.S. private placement market to raise an additional $175m equivalent of funding for terms of between 7 and 12 years. This funding is subject to documentation and due diligence which is scheduled to be completed in December 2010. Where this funding is dollar-denominated this is hedged using cross-currency interest rate swaps to meet the Group's desired funding profile and to manage the associated foreign currency risk to the Profit and Loss account.

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 to new members on 1^st 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^st March 2007 with a further valuation carried out at 31^st March 2010 currently being finalised. The amount recognised as an expense in relation to the BPP defined contribution scheme in the Income Statement for 2010 was £3.6m (2009:£2.9m).

In September 2010, the Group announced that it was entering into consultation with GB employees about a proposal to close the defined benefit section of the BPP to future accrual for active members with effect from 10^th April 2011.

In Northern Ireland, the Britvic Northern Ireland Pension Plan (BNIPP) was closed to new members on 28^th February 2006, and since this date new employees have been eligible to join a Stakeholder Plan with Legal & General. The latest actuarial valuation was carried out as at 31^st December 2008, and as a result shortfall contributions of £90k per month until 31^st December 2010, and £125k per month from 1^st January 2011 to 31^st December 2019 are being paid in accordance with the Recovery Plan.

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^st September 2008. Both Plans are held under Trust and operated by Britvic Ireland Pension Trust Limited as Trustee. The first formal actuarial valuation was carried out at 31^st December 2009 and is still being finalised.

The amount recognised as an expense in relation to the Irish Defined Contribution Schemes in the Income Statement for 2010 was £0.4m (2009: £0.3m).

Corporate Responsibility

Corporate Responsibility ("CR") is increasingly central to the way that Britvic runs its business, not just in terms of recognising and minimising the impacts of our manufacturing operations, but also in acknowledging that through our brands and their connections with people, we are well placed to help address public issues.

Below is a snapshot of how we have performed against the targets listed in our last Corporate Responsibility Report. A comprehensive overview of our achievements last year can be found in the 2010 Corporate Responsibility Report published on the 11^th December 2010. It is available in hard copy or on our Company website at www.britvic.com

n Remove 5000 tonnes of packaging by December 2010 based on 07/08 volumes	n Green
n Send zero food and waste to landfill by 2015	n Orange
n Complete rPET trial using UK only recycled content by 2010	n Green
n Reduce CO2 emissions by 20% by 2010 compared to 1990 (by tonne of product) and aspire to 30% by 2020	n Orange
n Complete trials on more energy efficient chillers and dispense equipment by 2010	n Green
n Contribute to an industry-wide absolute target to reduce water use by 20% by 2020 compared to 2007	n Orange
n Increase community investment in line with three year strategy	n Red
n Achieve full compliance from packaging and ingredients suppliers to our Ethical Trading Policy and complete planned audits by December 2010	n Green
n Achieve full compliance by indirect suppliers to our Ethical Trading Policy by December 2014	n Orange
n Complete evaluation of accreditation options for fruit available in commercial quantities by end of 2010	n Green
n Promote healthy and enriched lifestyles through marketing initiatives and working with partners	n Green
n Improve work-life-balance as measured by our Employee Opinion Survey	n Green
n Further reduce accident frequency rate across the business by 10%	n Green
n Improve occupational health services through increased support for musculoskeletal problems	n Green

Since our last Report, we have evolved our strategy in a way that we believe will enable us to be more focused on the areas in which we can have the most impact.

The new strategy is also intended to fully embed CR into the business. As such, it has been developed by means of an engagement programme.

We have been able to summarise this new strategic view in three words: Progressive, Sustainable and Responsible.

What will this mean in practice?

As a Progressive business, Britvic will increasingly seek to harness the power of its brands to help address relevant social and environmental issues. Britvic is a brand-led and marketing-driven Company, and we believe that we are in a good position to influence consumer behaviour - for example, through the promotion of healthy lifestyles and sustainable attitudes in areas such as the recycling of packaging.

Creating a Sustainable business means what it says. Britvic's business operations require large amounts of energy - directly in our own manufacturing and distribution, and indirectly throughout our supply chain. Our packaging uses valuable resources - glass, plastics and metals such as steel and aluminium. These all contribute to our carbon footprint. Without water, Britvic could not operate or make its brands and so we need to use all of these resources wisely. A sustainable business is one that invests and innovates to minimise its impacts in order to ensure that it has a long-term future.

Britvic itself employs more than 2,000 people across Great Britain, and our business supports many thousands more individuals and their families throughout the world. We are Responsible for their welfare and for the health of the communities in which they live and in which we operate. Our new strategy seeks to make a positive contribution to the lives of our employees and the communities around us.

Business Resources

Britvic is one of the leading branded soft drinks businesses in Europe. Britvic is the largest supplier of branded still soft drinks in Great Britain ("GB"), and the number two supplier of branded carbonated soft drinks in GB. Britvic is an industry leader in the island of Ireland and in France. Britvic is rapidly growing its reach into other geographies through export, licensing and franchising.

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

· An extensive 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. Britvic Ireland owns a number of leading brands in the Republic of Ireland and Northern Ireland, including Club, Ballygowan, Britvic, Cidona, MiWadi and Energise Sport, as well as the rights to the Pepsi and 7UP brands. In France the portfolio includes the leading syrup brand Teisseire as well as Moulin de Valdonne, Fruité and Pressade.

· 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 carbonates portfolio in 2010 with Mountain Dew Energy, having been appointed in recent years as the exclusive GB bottler of Gatorade, Lipton Ice Tea and V Water.

· A strong customer base. For example, in the British take-home market, Britvic's customers include the "Big 4" supermarkets (Tesco, J Sainsbury's, Asda and Wm Morrisons) 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 Group production capability and distribution network that enables its soft drinks to be made available to consumers across its operating territories.

Risks and Uncertainties

Risk Management Process

Britvic's risk management process has been adapted to support its growth strategy, focusing on growing the business through both acquisition and organic growth opportunities. Risk is an inherent part of doing business. The intention of the risk management process is not to avoid all risk as success comes from managing risk through the assessment of the balance of risk versus reward set against Britvic's risk appetite. The system of internal controls and risk management used to identify and manage the principal risks the Group faces is described in the Corporate Governance Report. In assessing risk both the financial and reputational impact are considered, as Britvic is a brand-led business. The principal risks and corresponding mitigation set out below represent the principal uncertainties that may impact on our ability to effectively deliver our strategy in the future.

(A) Risks Relating To The Group

1. An over-reliance on any specific customer or brand.

Risk - A major retailer, on-trade or off-trade, may decide to remove our products from its range and stock alternative products instead;

Mitigation - Britvic sells its products through a wide-range of channels and retailers. This broad mix of customers reduces our dependency on any one of these relationships. Likewise our portfolio and innovation launches further diversify our range thereby reducing the dependency on any one brand.

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

Risk - At the end of the bottling agreements or earlier in specific circumstances PepsiCo may terminate our right to sell their brands;

Mitigation - Britvic reduces this risk in two ways. Firstly, the majority of its revenues are generated by its wholly-owned brands. Its brand marketing focus and innovation pipeline are balanced between its wholly-owned brands and the PepsiCo franchised brands. Secondly, Britvic places significant emphasis on developing its relationship with PepsiCo through both extending bottling agreements and maintaining an appropriate level of communication between the two businesses to deal with on-going operational issues.

3. Increasing commodity prices.

Risk - Prices for commodities used in the production of our products may fluctuate widely and have increased significantly over the last year mainly due to poor crops and scarcity. Therefore the risk is two-fold, one of not being able to source enough, and one of having to pay more than expected;

Mitigation - Britvic sources much of its planned requirements through forward contracts and hedging arrangements and is developing new sources of supply. Through this process it aims to minimise the impact of price fluctuations.

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

Risk - Failure to maintain these rights could result in the value of our brands being eroded by copycat products;

Mitigation - Through our legal team we proactively look to protect these rights by registering the relevant trademarks and enforcing these in court when a resolution cannot be reached with other parties.

5. Any increase in the Group's funding needs or obligations in respect of its pension scheme.

Risk - The required revaluations of the pension schemes may highlight a worsening deficit position that requires the Company to provide additional cash contributions to meet future needs;

Mitigation - The Group pensions function works closely with the pension Trustees to ensure an appropriate portfolio is in place to fund pension requirements and spread risk as best as possible. New employees of the Company are enrolled into a Defined Contribution Scheme that limits future liabilities. The GB Defined Benefit Scheme for existing members has been proposed for closure from April 2011.

6. Inadequate IT disaster recovery plans.

Risk - As Britvic has grown, both through acquisition and organically, so has its reliance on IT systems to function, a failure of which could halt production or the ability to deliver goods;

Mitigation - Britvic has out-sourced the management of its data centre to a professional provider with both a robust disaster recovery and business continuity planning capable of meeting both its current needs and those as it continues to grow.

7. Failure to deliver the proposed synergies in France.

Risk - Failure to deliver the cost and revenue synergies from the acquisition of Fruité Entreprises SA;

Mitigation - An integration plan has been adopted with dedicated resources to oversee the integration, reporting regularly to the Board.

(B) Risks Relating To The Market

1. A change in consumer preferences and spending on soft drinks.

Risk - Consumers may decide to switch or spend less on soft drinks;

Mitigation - By offering a range of everyday value to premium products across a range of sub-categories, Britvic is not dependant on any single brand. The range has been developed to offer consumers choice in terms of flavour, cost and formulation.

2. Potential impact of regulatory developments.

Risk - Legislation may impact our ability to market or sell certain products or engage with specific consumers;

Mitigation - Britvic proactively engages with the relevant authorities through a number of organisations such as the British Soft Drinks Association (BSDA) to ensure it can fully participate in the future development of legislation.

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

1. Actions by the Group's competitors.

Risk - Competitors outperform Britvic in the market and so grow their business at the expense of Britvic;

Mitigation - Britvic benchmarks its operations and processes against recognised best practice and invests in its people resources, processes and assets to maximise performance.

2. U.S. Holders potentially not being able to exercise pre-emptive rights.

Risk - Under certain circumstances U.S. shareholders may not be able to take part in equity rights issues;

Mitigation - Britvic Investor Relations actively markets the Britvic investment case across both European and North American markets in order to promote diversification of where shares are held, thereby reducing the concentration in any one country.

Consolidated income statement

For the 53 weeks ended 3 October 2010

53 Weeks

Ended 3 October 2010

52 Weeks

Ended 27 September 2009

		Before exceptional & other items	Exceptional & other items*	Total	Before exceptional & other items	Exceptional & other items*	Total
	Note	£m	£m	£m	£m	£m	£m
Revenue		1,138.6	-	1,138.6	978.8	-	978.8
Cost of sales		(509.2)	(2.4)	(511.6)	(450.9)	-	(450.9)
Gross profit		629.4	(2.4)	627.0	527.9	-	527.9
Selling and distribution costs		(338.2)	-	(338.2)	(294.3)	-	(294.3)
Administration expenses		(156.6)	(134.7)	(291.3)	(123.5)	(20.3)	(143.8)
Operating profit / (loss)	6	134.6	(137.1)	(2.5)	110.1	(20.3)	89.8
Finance costs	9	(25.5)	(0.8)	(26.3)	(23.6)	-	(23.6)
Profit/(loss) before tax		109.1	(137.9)	(28.8)	86.5	(20.3)	66.2
Taxation	10	(29.1)	9.7	(19.4)	(22.3)	2.9	(19.4)
Profit/(loss) for the period attributable to the equity shareholders		80.0	(128.2)	(48.2)	64.2	(17.4)	46.8

Earnings per share
Basic earnings per share	11			(21.4p)			21.8p
Diluted earnings per share	11			(21.4p)			21.2p
Adjusted basic earnings per share**	11			39.8p			33.9p
Adjusted diluted earnings per share**	11			38.6p			33.0p
See note 5 * Basic and diluted earnings per share measures have been adjusted by adding back exceptional & other items (see note 5) and intangible assets amortisation (see note 14). This reconciliation is shown in note 11.

All activities relate to continuing operations

Consolidated STATEMENT OF COMPREHENSIVE INCOME

For the 53 weeks ended 3 October 2010

	53 Weeks Ended 3 October 2010	52 Weeks Ended 27 September 2009
	£m	£m
(Loss) / profit for the period attributable to the equity shareholders	(48.2)	46.8

Actuarial losses on defined benefit pension schemes	(49.0)	(72.0)
Current tax on additional pension contributions	2.8	2.8
Deferred tax on actuarial losses on defined benefit pension schemes	8.3	16.9
Amounts reclassified to the income statement in respect of cash flow hedges	(3.0)	(34.6)
Gains in the period in respect of cash flow hedges	4.5	33.8
Deferred tax in respect of cash flow hedges accounted for in the hedging reserve	(0.3)	-
Tax on exchange differences accounted for in the translation reserve	1.9	-
Exchange differences on translation of foreign operations	(13.7)	17.1
Other comprehensive income for the period net of tax	(48.5)	(36.0)

Total comprehensive income for the period attributable to the equity shareholders	(96.7)	10.8

Consolidated BALANCE SHEET

As at 3 October 2010

		2010	2009
	Note	£m	£m

Assets
Non-current assets
Property, plant and equipment	13	248.6	226.1
Intangible assets	14	341.5	293.1
Other receivables	17	2.3	2.4
Other financial assets	27	81.4	51.9
Deferred tax assets	10e	6.2	2.6
		680.0	576.1

Current assets
Inventories	18	83.1	52.9
Trade and other receivables	19	228.0	177.9
Other financial assets	27	1.0	1.8
Cash and cash equivalents	20	54.0	39.7
		366.1	272.3

Non-current assets held for sale	21	-	5.1
Total assets		1,046.1	853.5

Current liabilities
Trade and other payables	25	(348.9)	(291.6)
Other financial liabilities	27	(1.4)	(0.4)
Current income tax payable		(16.1)	(11.3)
		(366.4)	(303.3)
Non-current liabilities
Interest bearing loans and borrowings	23	(569.9)	(450.7)
Deferred tax liabilities	10e	(14.1)	(16.9)
Pension liability	24	(118.3)	(85.1)
Other financial liabilities	27	(3.9)	-
Other non-current liabilities	28	(4.2)	-
		(710.4)	(552.7)
Total liabilities		(1,076.8)	(856.0)
Net liabilities		(30.7)	(2.5)

Capital and reserves
Issued share capital	22	48.0	43.4
Share premium account		10.6	5.0
Own shares reserve		(1.9)	(4.6)
Share scheme reserve		9.7	7.3
Hedging reserve		7.4	6.2
Translation reserve		22.5	34.3
Merger reserve		87.3	-
Retained losses		(214.3)	(94.1)
Total equity		(30.7)	(2.5)

The financial statements were approved by the Board of Directors and authorised for issue on 1 December 2010. They were signed on its behalf by:

Consolidated statement of cash flows

For the 53 weeks ended 3 October 2010

		2010	2009
	Note	£m	£m

Cash flows from operating activities
(Loss) / profit before tax		(28.8)	66.2
Net finance costs	9	26.3	23.6
Financial instruments		1.5	-
Impairment of property, plant and equipment and intangible assets		116.7	4.2
Depreciation	13	32.9	30.1
Amortisation	14	9.5	8.6
Share based payments		7.8	6.9
Net pension charge less contributions	24	(16.0)	(13.4)
Decrease / (increase) in inventory		1.3	(1.0)
Decrease / (increase) in trade and other receivables		10.4	(18.9)
(Decrease) / increase in trade and other payables		(16.6)	41.8
Loss on disposal of tangible assets		1.3	1.7
Income tax paid		(21.8)	(18.9)
Net cash flows from operating activities		124.5	130.9

Cash flows from investing activities
Proceeds from sale of property, plant and equipment		4.7	9.5
Purchases of property, plant and equipment		(40.2)	(38.3)
Purchases of intangible assets		(9.8)	(11.9)
Acquisition of subsidiary net of cash acquired	15	(151.9)	-
Net cash flows used in investing activities		(197.2)	(40.7)

Cash flows from financing activities
Finance costs		(1.8)	(4.3)
Interest paid		(23.1)	(20.9)
Issue of US$ notes		149.8	-
Repayment of €100.0m loan		(90.1)	-
Interest bearing loans repaid		(4.9)	(7.3)
Issue of shares		93.4	-
Purchase of own shares		(0.9)	(3.3)
Dividends paid to equity shareholders	12	(34.9)	(27.8)
Net cash flows from financing activities		87.5	(63.6)

Net increase in cash and cash equivalents		14.8	26.6
Cash and cash equivalents at beginning of period		39.7	12.9
Exchange rate differences		(0.5)	0.2
Cash and cash equivalents at the end of the period	20	54.0	39.7

ConsolidateD STATEMENT OF CHANGES IN EQUITY

For the 53 weeks ended 3 October 2010

	Issued share capital	Share premium account	Own shares reserve	Share scheme reserve	Hedging reserve	Translation reserve	Merger reserve	Retained losses	Total
	£m	£m	£m	£m	£m	£m	£m	£m	£m
At 28 September 2008	43.2	2.5	(7.9)	7.3	7.0	17.2	-	(60.0)	9.3
Total comprehensive income for the period	-	-	-	-	(0.8)	17.1	-	(5.5)	10.8
Issue of shares	0.2	2.5	(2.6)	-	-	-	-	-	0.1
Own shares purchased for share schemes	-	-	(3.3)	-	-	-	-	-	(3.3)
Own shares utilised for share schemes	-	-	9.2	(6.9)	-	-	-	(2.3)	-
Movement in share based schemes	-	-	-	6.9	-	-	-	-	6.9
Current tax on share based payments	-	-	-	-	-	-	-	0.1	0.1
Deferred tax on share based payments	-	-	-	-	-	-	-	1.4	1.4
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)
Total comprehensive income for the period	-	-	-	-	1.2	(11.8)	-	(86.1)	(96.7)
Issue of shares	4.6	5.6	(4.1)	-	-	-	89.3	-	95.4
Transaction costs relating to placement of ordinary shares	-	-	-	-	-	-	(2.0)	-	(2.0)
Own shares purchased for share schemes	-	-	(0.9)	-	-	-	-	-	(0.9)
Own shares utilised for share schemes	-	-	7.7	(5.3)	-	-	-	(2.4)	-
Movement in share based schemes	-	-	-	7.7	-	-	-	-	7.7
Current tax on share based payments	-	-	-	-	-	-	-	1.0	1.0
Deferred tax on share based payments	-	-	-	-	-	-	-	2.2	2.2
Payment of dividend	-	-	-	-	-	-	-	(34.9)	(34.9)
At 3 October 2010	48.0	10.6	(1.9)	9.7	7.4	22.5	87.3	(214.3)	(30.7)

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, Republic of Ireland and France.

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

The financial statements were authorised for issue by the Board of Directors on 1 December 2010.

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

The financial statements have been prepared on a going concern basis. For further detail, please refer to note 33.

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 3 October 2010 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 the fair value of consideration paid. 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 definite 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 then transferred to the income statement or to the initial carrying amount of a non-financial asset or liability as above.

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 any cumulative gain or loss is recycled through the income statement.

Fair value hedges

For fair value hedges, the gain or loss on the fair value of the hedging instrument is recognised in the income statement. The gain or loss on the hedged item attributable to the hedged risk shall adjust the carrying amount of the hedged item and will be recognised in the income statement. If the hedge relationship was ineffective the hedged item would no longer be adjusted and the fair value gain or loss on the hedging instrument would continue to be recorded in 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 to new members 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 Defined Contribution Pension Plan and the Britvic Ireland Defined Benefit 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 comprehensive income.

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.

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

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 income and finance cost.

Foreign currencies

Functional and presentation currency

The consolidated financial statements are presented in pounds sterling. The presentation currency of the consolidated financial statements is the same as the functional currency of the ultimate parent company.

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 or equity. On disposal of a foreign operation accumulated exchange differences previously recognised in equity are included in the consolidated income statement.

Segmental reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the board of directors.

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.

Nature and purpose of other reserves

Share premium account

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

Own shares reserve

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.

Merger reserve

The movement on merger reserve was the result of the non pre-emptive share placement which took place on 21 May 2010. It was executed using a structure which created a merger reserve arising under Section 612-3 of Companies Act 2006. Further details are given in note 22.

Own shares

The cost of own shares held in employee share trusts and in treasury is 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 and other 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. 'Other' items include fair value movements on financial instruments where hedge accounting cannot be applied. These items have been included within exceptional and other items because they are one off in nature and non-cash.

Key judgements and sources of estimation uncertainty

The preparation of financial statements requires management to make judgements, estimates and assumptions that effect 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 effect 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 16.

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/interest 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 amounts recognised in the financial statements.

New standards adopted in the current period

IAS 1 (Revised) 'Presentation of financial statements' was adopted by the Group on 28 September 2009, effective for financial years beginning on or after 1 January 2009. The Group has elected to present two performance statements: an income statement and a statement of comprehensive income. The consolidated financial information has been prepared under the revised disclosure requirements. There was no impact on the results or net assets of the Group.

IFRS 8 'Operating Segments', effective for annual periods beginning on or after 1 January 2009, replaced IAS 14 'Segment Reporting'. IFRS 8 requires operating segments to be reported in a manner consistent with the internal reporting provided to the chief operating decision-maker, who is responsible for resource allocation and assessing performance of the operating segments. Refer to note 4 for information regarding the determination of the Group's operating segments.

IFRS 7 (Amended) 'Financial instruments: Disclosure' adopted on 28 September 2009, effective for financial years beginning on or after 1 January 2009, requires enhanced disclosures about fair value measurements and liquidity risk. Adoption of the amendment does not require the restatement of comparative information.

IFRS 3 'Business Combinations (revised)' applies prospectively to all business combinations on or after 28 September 2009. 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.

IAS 27 'Consolidated and Separate Financial Statements (revised)'. The revisions to this standard have not had any impact on the consolidated financial statements.

The Group also adopted IFRS 2 'Amendment: Vesting conditions and cancellations' and IAS 39 'Amendments: Eligible hedged items', these did not have a material impact on the Group.

New standards and interpretations not applied

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

		Effective date - periods commencing
International Financial Reporting Standards (IFRS)
IFRS 2	Amendment - Group cash-settled share-based payment transactions	1 January 2010
IFRS 7	Amendment to IFRS 7- Disclosures - Transfers of financial assets	1 July 2011
IFRS 9	Financial Instruments - Classification and measurement	1 January 2013

International Accounting Standards (IAS)
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 19	Extinguishing financial liabilities with equity instruments	1 July 2010
IFRIC 14	Amendment - Prepayments of a minimum funding requirement	1 January 2011

The Directors do not anticipate that the adoption of these standards will have a material impact on the Group's reported income or net assets in the period of adoption.

4. Segmental reporting

For management purposes, the Group is organised into business units and has five operating segments as follows:

· GB Stills - United Kingdom excluding Northern Ireland

· GB Carbs - United Kingdom excluding Northern Ireland

· International

· Ireland

· France

These business units sell soft drinks into their respective markets.

The Ireland and France businesses are disclosed as amalgamated reporting segments in accordance with IFRS 8.

Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on brand contribution. This is defined as revenue less material costs and all other marginal costs that management considers to be directly attributable to the sale of a given product. Such costs include brand specific advertising and promotion costs, raw materials and marginal production and distribution costs. However, Group financing (including finance costs and finance income) and income taxes are managed on a Group basis and are not allocated to operating segments.

Transfer prices between operating segments are on an arm's length basis in a manner similar to transactions with third parties.

53 weeks ended 3 October 2010	GB Stills	GB Carbs	International	Total GB & International	Ireland	France	Adjustments	Total
	£m	£m	£m	£m	£m	£m	£m	£m
Revenue
- External	369.2	477.6	27.6	874.4	179.0	85.2	-	1,138.6
- Inter-segment***	12.2	8.2	-	20.4	5.6	-	(26.0)	-
	381.4	485.8	27.6	894.8	184.6	85.2	(26.0)	1,138.6
Brand contribution	172.5	187.1	9.9	369.5	64.1	24.1	-	457.7
Non-brand advertising & promotion *								(10.4)
Fixed supply chain**								(94.9)
Selling costs**								(117.2)
Overheads and other costs*								(100.6)
Operating profit before exceptional & other items								134.6
Finance costs								(25.5)
Exceptional & other items								(137.9)
Loss before tax								(28.8)

52 weeks ended 27 September 2009	GB Stills	GB Carbs	International	Total GB & International	Ireland	France	Adjustments	Total
	£m	£m	£m	£m	£m	£m	£m	£m
Revenue
- External	350.2	416.7	22.4	789.3	189.5	-	-	978.8
- Inter-segment***	11.2	5.8	-	17.0	1.1	-	(18.1)	-
	361.4	422.5	22.4	806.3	190.6	-	(18.1)	978.8
Brand contribution	156.5	151.2	7.6	315.3	70.8	-	-	386.1
Non-brand advertising & promotion *								(8.1)
Fixed supply chain**								(87.1)
Selling costs**								(102.5)
Overheads and other costs*								(78.3)
Operating profit before exceptional & other items								110.1
Finance costs								(23.6)
Exceptional & other items								(20.3)
Profit before tax								66.2

* Included within 'Administration expenses' in the Consolidated Income Statement. Costs included within 'Overheads and other' relate to central costs including salaries, IT maintenance and depreciation.

** Included within 'Selling and distribution costs' in the Consolidated Income Statement

*** Inter-segment revenues are eliminated on consolidation

Geographic information

Revenues from external customers

The analysis below is based on the location where the sale originated.

	2010	2009
	£m	£m
United Kingdom	899.9	815.5
Other	238.7	163.3
Total revenue	1,138.6	978.8

Non-current assets

	2010	2009
	£m	£m
United Kingdom	260.1	284.2
Republic of Ireland	131.5	237.4
France	200.8	-
Total	592.4	521.6

Non-current assets for this purpose consist of property, plant and equipment, intangible assets and other receivables.

5. Exceptional and other items

		2010	2009
		£m	£m
Impairments*	(a)	(116.1)	-
Costs in relation to the purchase of Britvic France*	(b)	(8.5)	-
Restructuring costs*	(c)	(5.7)	(16.6)
Onerous leases*	(d)	(3.1)	(2.4)
Cost of incentive schemes directly associated with the flotation*	(e)	-	(0.8)
Costs in relation to the purchase of Britvic Ireland*	(f)	-	(0.5)
Other fair value movements**	(g)	(4.5)	-
		(137.9)	(20.3)

*Included within administration expenses in the consolidated income statement

**£2.4m included within cost of sales, £1.3m within administration expenses and £0.8m included within finance costs in the consolidated income statement

a) Impairments can be analysed as follows:

· Impairments of goodwill in the GB segment (Red Devil £5.0, Orchid £6.4m). Further details are provided in notes 14 and 16.

· Impairments of intangible assets in the Ireland segment (£89.6m). Further details are provided in notes 14 and 16.

· Impairments of land and buildings in the Ireland segment (£14.6m), £0.5m relates to assets previously held for sale. Further details are provided in note 13.

· Impairments of plant and equipment in the GB segment (£0.5m). Further details are provided in note 13.

In respect of tangible fixed assets, 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.

Note 16 details the method for calculating the impairments on intangible assets.

b) Costs relating to the purchase and integration of Britvic France. Primarily these costs relate to advisors fees.

c) Restructuring costs includes the costs of major restructuring programmes undertaken.

The current year costs relate to:

· Redundancy costs arising in the Ireland segment; and

· Costs in relation to the Business Transformation project in the Ireland segment.

The prior year costs relate to:

· 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 (property, plant and equipment: £1.1m, non-current assets held for sale: £3.1m).

d) The onerous leases relate to two sites within the Ireland business segment where, in addition to accruals made in previous years, incremental future lease commitments have been accrued for in the current year based on our experience of the deterioration in the Irish property market during 2009/10. The properties relate to depot space which is no longer required as a result of a project which has delivered the synergies in the Ireland segment. The prior year cost also includes an accrual in respect of the rationalisation of office space in the GB segment.

e) In the prior year, cost of incentive schemes directly associated with the flotation included all-employee share schemes and management incentives. The cost related 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.

f) In the prior year, costs in relation to the purchase of Britvic Ireland related to the costs incurred in acquiring the business which cannot be included in the cost of the business combination and therefore cannot be capitalised. Costs related to professional fees incurred in respect of establishing new pension schemes in the Britvic Ireland business.

g) Other fair value movements can be analysed as follows:

· The fair value movement of financial instruments where hedge accounting cannot be applied; and

· The amortisation of fair value adjustments applied on the acquisition of Britvic France (see note 15). Specifically this relates to:

o The fair value movement of financial instruments where hedge accounting cannot be applied; and

o The amortisation of the inventory fair value adjustment of £2.4m which recognised the profit margin of the inventory acquired as part of the business combination.

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

6. Operating profit

This is stated after charging:

	2010	2009
	£m	£m

Cost of inventories recognised as an expense	509.2	450.9

Write-down of inventories to net realisable value	2.9	2.6

Research and development expenditure written off	1.7	1.5

Net foreign currency differences	4.0	3.4

Depreciation of property, plant and equipment	32.9	30.1

Amortisation of intangible assets	9.5	8.6

Operating lease payments
- minimum lease payments	14.9	16.3

7. Auditors' remuneration

	2010	2009
	£m	£m
Auditors' remuneration - audit of the Group financial statements	0.4	0.3
Other fees to auditors
- local statutory audits for subsidiaries	0.1	0.1
- Other services	0.2	-

The fees in the other services category are £0.15m of audit related fees and £0.05m of tax related fees.

8. Staff costs

	2010	2009
	£m	£m
Wages and salaries*	123.9	126.8
Social security costs	14.1	11.2
Pension costs (note 24)	12.3	9.5
Expense of share based compensation**	9.4	7.7
	159.7	155.2

* £2.6m (2009: £8.8m) of this is included within "restructuring costs" in exceptional and other items (note 5).

** £nil (2009: £0.8m) of this is included within exceptional and other 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:

	2010	2009
Distribution	395	525
Production	1,244	1,107
Sales and marketing	983	899
Administration	435	505
	3,057	3,036

9. Finance costs

	2010	2009
	£m	£m
Bank loans, overdrafts and loan notes	25.5	23.6
Fair value movement on interest rate swap (see note 5)	0.8	-
Total finance costs	26.3	23.6

10. Taxation

a) Tax on loss on ordinary activities

	2010
	Before
	exceptional	Exceptional
	& other items	& other items	Total
	£m	£m	£m
Income statement

Current income tax
Current income tax (charge) / credit	(33.2)	2.0	(31.2)
Amounts overprovided in previous years	1.6	0.8	2.4
Total current income tax (charge) / credit	(31.6)	2.8	(28.8)

Deferred income tax
Origination and reversal of temporary differences	2.6	6.9	9.5
Amounts underprovided in previous years	(0.1)	-	(0.1)
Total deferred tax credit	2.5	6.9	9.4

Total tax (charge) / credit in the income statement	(29.1)	9.7	(19.4)

Statement of other comprehensive income
Current tax on additional pension contributions			2.8
Deferred tax on actuarial losses on defined benefit pension schemes			8.3
Deferred tax in respect of cash flow hedges accounted for in the hedging reserve			(0.3)
Tax on exchange differences accounted for in the translation reserve			1.9
Total tax credit in the statement of comprehensive income			12.7

Statement of changes in equity
Current tax on share options exercised			1.0
Deferred tax on share options granted to employees			2.2
Total tax credit in the statement of changes in equity			3.2

	2009
	Before
	exceptional	Exceptional
	& other items	& other 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 comprehensive income
Current tax on additional pension contributions			2.8
Deferred tax on actuarial losses on defined benefit pension schemes			16.9
Total tax credit in the statement of comprehensive income			19.7

Statement of changes in equity
Current tax on share options exercised			0.1
Deferred tax on share options granted to employees			1.4
Total tax credit in the statement of changes in equity			1.5

a) Reconciliation of the total tax charge

The tax expense in the income statement is higher (2009: higher) than the standard rate of corporation tax in the UK of 28% (2009: 28%). The differences are reconciled below:

	2010
	Before
	exceptional	Exceptional
	& other items	& other items	Total
	£m	£m	£m

Profit / (loss) before tax	109.1	(137.9)	(28.8)

Profit / (loss) multiplied by the UK average rate of corporation tax of 28%	(30.5)	38.6	8.1
Expenditure not deductible for income tax purposes	(0.5)	(12.4)	(12.9)
Tax relief on share-based payments	0.1	-	0.1
Tax overprovided in previous years	1.5	0.8	2.3
Overseas tax rates	0.3	(17.3)	(17.0)
	(29.1)	9.7	(19.4)
Effective income tax rate	26.7%		(67.4%)

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

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

Profit / (loss) 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%

c) Unrecognised tax items

The temporary differences associated with investments in subsidiaries for which a deferred tax liability has not been recognised aggregates to £11.6m (2009: £11.7m). No deferred tax has been provided in respect of these differences, since the timing of the reversals can be controlled and it is probable that the temporary differences will not reverse in the future.

The Group expects that future remittances of earnings from its overseas subsidiaries will be covered by the UK dividend exemption and so the un-remitted earnings of these subsidiaries are not disclosed above.

d) Impact of rate change

The Finance (No 2) Act 2010 reduced the main rate of UK Corporation Tax from 28% to 27% from 1 April 2011. The effect of the new rate is to reduce the UK deferred tax asset by a net £0.4m, comprising a credit of £0.5m to the income statement and a charge of £0.9m to the consolidated statement of comprehensive income.

Additional changes to the main rate of UK Corporation Tax are proposed, to reduce the rate by 1% per annum to 24% by 1 April 2014. These changes had not been substantively enacted at the balance sheet date and consequently are not included in these financial statements. The effect of these proposed reductions would be to reduce the UK net deferred tax asset by £1.1m. Further UK tax changes, subject to enactment, are a reduction from 1 April 2012 in the rate of capital allowances applicable to plant and machinery and to integral features from 20% to 18% and from 10% to 8% respectively.

Manufacturing relief on profits earned in Ireland is no longer available for the accounting period commencing 4 October 2010. The effect of the removal of the relief is to increase the net deferred tax asset by a net £0.4m, comprising a charge of £0.3m to the Income Statement and a credit of £0.7m to the consolidated statement of comprehensive income.

e) Deferred tax

The deferred tax included in the balance sheet is as follows:

	2010	2009
	£m	£m
Deferred tax liability
Accelerated capital allowances	(19.7)	(20.3)
Acquisition fair value adjustments	(21.3)	(13.3)
Other temporary differences	(3.1)	(4.1)
Employee incentive plan	-	(0.2)
Deferred tax liability	(44.1)	(37.9)

Deferred tax asset
Employee incentive plan	6.7	4.0
Post employment benefits	27.5	19.6
Other temporary differences	2.0	-
Deferred tax asset	36.2	23.6

Net deferred tax liability	(7.9)	(14.3)

Certain deferred tax assets and liabilities have been offset. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

	2010	2009
	£m	£m
Net deferred tax assets	6.2	2.6
Net deferred tax liabilities	(14.1)	(16.9)
	(7.9)	(14.3)

The deferred tax included in the income statement is as follows:

	2010	2009
	£m	£m
Employee incentive plan	0.7	0.2
Accelerated capital allowances	1.0	3.9
Post employment benefits	(0.4)	(0.6)
Acquisition fair value adjustments	6.3	-
Other temporary differences	1.8	-
Deferred tax credit	9.4	3.5

£6.9m of the deferred tax credit in the current period relates to exceptional items (2009: none of the deferred tax credit in the prior period related to exceptional items).

11. Earnings per share

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

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 period 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:

		2010	2009
		£m	£m
	Basic earnings per share
	(Loss) / profit for the period attributable to equity shareholders	(48.2)	46.8
	Weighted average number of ordinary shares in issue for basic earnings per share	224.9	214.9

	Basic earnings per share	(21.4p)	21.8p

	Diluted earnings per share
	(Loss) / profit for the period attributable to equity shareholders	(48.2)	46.8
	Weighted average number of ordinary shares in issue for diluted earnings per share	231.8	220.9

	Diluted earnings per share	(21.4p)*	21.2p
* The diluted earnings per share is unchanged from the basic earnings per share, as the inclusion of the dilutive ordinary shares would reduce the loss per share and is therefore not dilutive in accordance with IAS 33 'Earnings per Share'.
	The Group presents as exceptional and other 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 with the amortisation of intangible assets also added back using the weighted average number of ordinary shares for both basic and diluted amounts as per the table below:
		2010	2009
		£m	£m
	Adjusted basic earnings per share
	(Loss) / profit for the period attributable to equity shareholders	(48.2)	46.8
	Add: Net impact of exceptional and other items	128.2	17.4
	Add: Intangible assets amortisation	9.5	8.6
		89.5	72.8
	Weighted average number of ordinary shares in issue for basic earnings per share	224.9	214.9

	Adjusted basic earnings per share	39.8p	33.9p

	Adjusted diluted earnings per share
	Profit for the period attributable to equity shareholders before exceptional and other items and intangible assets amortisation	89.5	72.8
	Weighted average number of ordinary shares in issue for diluted earnings per share	231.8	220.9

	Adjusted diluted earnings per share	38.6p	33.0p

12. Dividends paid and proposed

	2010	2009
	£m	£m
Declared and paid during the period
Equity dividends on ordinary shares
Final dividend for 2009: 10.9p per share (2008: 8.8p per share)	23.6	19.0
Interim dividend for 2010: 4.7p per share (2009: 4.1p per share)	11.3	8.8
Dividends paid	34.9	27.8
Proposed for approval by the shareholders at the AGM
Final dividend for 2010: 12.0p per share (2009: 10.9p per share)	28.7	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 28 September 2008, net of accumulated depreciation	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 re-classified as held for sale - cost**	(1.5)	-	-	-	(1.5)
Assets re-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
Exchange differences	(0.5)	(0.6)	(0.7)	(0.7)	(2.5)
Acquisitions	18.0	-	18.3	0.6	36.9
Additions	1.6	1.0	18.0	17.4	38.0
Disposals at cost	-	-	(12.0)	(14.4)	(26.4)
Depreciation eliminated on disposals	-	-	7.2	13.2	20.4
Assets transferred which were previously held for sale**	4.7	-	-	-	4.7
Depreciation charge for the year	(1.3)	(0.7)	(14.7)	(16.2)	(32.9)
Impairment*	(8.8)	(5.8)	(1.1)	-	(15.7)
At 3 October 2010, net of accumulated depreciation and impairment	61.7	28.9	101.6	56.4	248.6

At 3 October 2010
Cost (gross carrying amount)	79.2	40.3	257.9	185.7	563.1
Accumulated depreciation and impairment	(17.5)	(11.4)	(156.3)	(129.3)	(314.5)
Net carrying amount	61.7	28.9	101.6	56.4	248.6

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

* The impairment in the current period principally relates to the write down of land and buildings within the Britvic Ireland segment, following re-assessment of recoverable amounts as a result of the sustained economic downturn. The impairment to plant and machinery relates to assets in the GB segment. It is not possible to split the impairment between the GB segments due to the nature of the assets being impaired. The prior period impairment relates to the write down of land and buildings following the closure of two sites within the Britvic Ireland segment.

Of the current period impairments, £15.1m are included within exceptional and other items (see note 5) (2009: £1.1m).

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 21.

Finance leases

The net book value of freehold land and buildings / plant and machinery includes £0.5m / £0.9m respectively (2009: £nil) in respect of assets held under finance leases. The assets are pledged as security for the finance lease liabilities.

14. Intangible assets

	Trademarks	Franchise rights	Customer lists	Software costs	Goodwill	Total
	£m	£m	£m	£m	£m	£m
Cost as at 28 September 2008, net of accumulated amortisation	63.1	22.7	13.8	22.8	141.4	263.8
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 period	(0.1)	(0.7)	(0.9)	(6.9)	-	(8.6)
Cost as at 27 September 2009,	73.3	25.6	15.1	27.0	152.1	293.1
net of accumulated amortisation
Exchange differences	(4.3)	(1.3)	(0.6)	0.2	(5.4)	(11.4)
Acquisitions (see note 15)	62.4	-	35.2	1.2	61.9	160.7
Additions	-	-	-	9.6	-	9.6
Disposals at cost	-	-	-	(0.6)	-	(0.6)
Amortisation eliminated on disposals	-	-	-	0.6	-	0.6
Amortisation charge for the period	-	(0.8)	(1.4)	(7.3)	-	(9.5)
Impairment (see note 16)	(29.8)	-	(5.1)	-	(66.1)	(101.0)
At 3 October 2010	101.6	23.5	43.2	30.7	142.5	341.5

At 3 October 2010
Cost (gross carrying amount)	131.5	25.7	51.5	64.7	208.6	482.0
Accumulated amortisation and impairment	(29.9)	(2.2)	(8.3)	(34.0)	(66.1)	(140.5)
Net carrying amount	101.6	23.5	43.2	30.7	142.5	341.5

At 27 September 2009
Cost (gross carrying amount)	73.4	27.0	16.9	54.3	152.1	323.7
Accumulated amortisation and impairment	(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

Trademarks

Britvic France

The following trademarks have been recognised on the acquisition of Britvic France (note that all fair values are provisional as detailed in note 15):

· Teisseire (€57.1m);

· Moulin de Valdonne (€4.7m);

· Pressade (€5.4m); and

· Fruité (€5.0m).

All trademarks have been allocated an indefinite life by management.

Britvic Ireland

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 was being amortised over 5 years and has been written off as part of the impairment taken in the current period. A list of the trademarks held in respect of the Britvic Ireland segment is shown in note 16. Certain trademarks have been impaired in the current period, details of which are also provided in note 16.

It is expected, and in line with existing well-established trademarks within the Group, that the trademarks with indefinite lives in respect of Britvic France and Britvic Ireland will be held and supported for an indefinite period of time and are expected to generate economic benefits . The Group is committed to supporting its trademarks by investing in significant consumer marketing promotional spend.

Franchise rights

Franchise rights represent the franchise agreements acquired as part of the Britvic Ireland business combination which provide the long term right to distribute certain soft drinks. These agreements have been allocated a 35 year useful economic life. As at 3 October 2010 these intangible assets have a remaining useful life of 32 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

Britvic France

Customer lists recognised on the acquisition of Britvic France relate to those customer relationships acquired. These intangible assets have been allocated useful economic lives of 20 years.

Britvic Ireland

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 3 October 2010 these intangible assets have a remaining useful life of between 7 and 17 years. Impairments have been taken in the current period in respect of these customer lists, as detailed in note 16.

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 3 October 2010 these intangible assets have a remaining useful life of up to 7 years.

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'. Details of the impairment losses recognised in the current period are detailed in note 16.

Goodwill was recognised on the acquisition of Britvic France in the current period. Further details are provided in note 15.

Intangible assets recognised on the acquisition of Britvic Ireland and Britvic France are valued in euros and translated to sterling at the reporting date.

15. Business combinations

Acquisition of Britvic France

On 28 May 2010, the Group acquired 100% of the issued share capital of the companies detailed below for a cash consideration of €186.4m (translated at £160.5m). The acquisition is in line with the strategic direction of the Group, specifically to increase its presence in Europe.

Company name	Status	Principal activity
Star Command SAS	Trading	Holding company
Fruité Entreprises SA	Trading	Holding company
Fruité SAS	Trading	Manufacture and sale of juice-based soft drinks
Bricfruit SAS	Trading	Manufacture and sale of juice-based soft drinks
Unisource SAS	Trading	Manufacture and sale of juice-based soft drinks
Teisseire SAS	Trading	Manufacture and sale of syrup-based soft drinks
Teisseire Benelux SA	Trading	Marketing and distribution of syrup-based soft drinks

From the date of acquisition to 3 October 2010, the acquired businesses contributed £85.2m to revenue and £24.1m to brand contribution for the period. Britvic France had an operating cash inflow of £4.4m from acquisition to the year end.

Due to non coterminous year end dates and on the basis that pre-acquisition financial information in relation to Britvic France includes discontinued operations not acquired, it is impracticable to state what the contribution to revenue and net profit would have been if the business combination had been completed on the first day of the financial period.

Due to the timing of the acquisition of Britvic France, the initial fair value / acquisition accounting has been determined provisionally. In accordance with IFRS 3, adjustments to the fair value of assets acquired and liabilities assumed can be made during the twelve months from the date of acquisition. The difference between the fair value of the consideration paid and the fair value of the identifiable net assets acquired is recognised as goodwill. Included in goodwill are certain intangible assets that cannot be individually separated and reliably measured due to their nature. These items include the favourable market presence which Britvic France enjoys, an assembled workforce and anticipated future operating synergies from the combination. None of the goodwill recognised is expected to be deductible for income tax purposes.

The sterling carrying value shown of the net assets acquired shown in the table below has been calculated using the exchange rate on the date of acquisition which was £1: €1.1611.

	Book value	Provisional fair value adjustments	Fair value	Fair value
	€m	€m	€m	£m
Intangible assets	81.4	33.3	114.7	98.8
Property, plant and equipment	27.2	15.7	42.9	36.9
Other financial assets	2.3	-	2.3	2.0
Inventories	35.7	1.6	37.3	32.1
Trade and other receivables	73.2	-	73.2	63.0
Cash and cash equivalents	10.0	-	10.0	8.6
Trade and other payables	(86.2)	(0.5)	(86.7)	(74.7)
Pension liability	(1.2)	-	(1.2)	(1.0)
Interest bearing loans and borrowings	(53.4)	-	(53.4)	(46.0)
Other non-current liabilities	(3.8)	-	(3.8)	(3.3)
Other financial liabilities	(0.9)	-	(0.9)	(0.8)
Deferred tax liability	-	(17.6)	(17.6)	(15.1)
Current income tax payable	(1.8)	(0.5)	(2.3)	(1.9)
Net assets acquired	82.5	32.0	114.5	98.6
Purchased goodwill			71.9	61.9
Cost of investment satisfied by cash consideration			186.4	160.5

Net cash outflow arising on acquisition of shares in Britvic France				£m
Cash consideration				160.5
Cash and cash equivalents acquired				(8.6)
Cash flow on acquisition of shares in Britvic France net of cash acquired				151.9

In addition to the cost of investment outlined above, acquisition costs of £5.3m (excluding integration costs) have been incurred in the current period. These have been included within exceptional and other items (see note 5).

The selling shareholders of the Fruité business have contractually agreed to indemnify Britvic plc for specific historic claims being brought against the business. Due to the nature of these items it is not possible to accurately estimate the likely outcome or magnitude of the matters. No provision has been recognised in the consolidated financial statements, however, the Group is not exposed as any amounts payable in respect of these items would be fully settled by the vendor.

16. Impairment testing of intangible assets

Goodwill

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

· Red Devil;

· Orchid;

· Tango;

· Robinsons;

· Britvic Soft Drinks business;

· Water Business;

· Britvic Ireland; and

· Britvic France.

With the exception of Britvic Ireland and Britvic France, all other goodwill amounts were recognised on acquisitions made within Britvic GB.

Carrying amount of goodwill

	Red Devil	Orchid	Tango	Robinsons	BSD	Water	Britvic Ireland	Britvic France	Total
	£m	£m	£m	£m	£m	£m	£m	£m	£m
At 3 October 2010	-	6.0	8.9	38.6	7.8	1.7	16.8	62.7	142.5
At 27 September 2009	5.0	12.4	8.9	38.6	7.8	1.7	77.7	-	152.1

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

Movements in the carrying amounts from the prior year primarily relate to impairment losses in the GB carbs segment for the Red Devil and Orchid trademarks, and to Britvic Ireland.

Trademarks with indefinite lives

As part of the fair value exercise regarding the 2007 acquisition of Britvic Ireland, certain trademarks with indefinite lives were recognised. These Britvic Ireland 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 trademarks with indefinite lives in the Ireland segment


	Britvic	Cidona	Mi-Wadi	Ballygowan	Club	TK
	£m	£m	£m	£m	£m	£m
At 3 October 2010	6.5	5.8	8.9	2.5	14.8	-
At 27 September 2009	10.8	8.7	9.4	28.1	15.6	0.6

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

Carrying amount of trademarks with indefinite lives in the France segment

Additional trademarks with indefinite lives have been recognised as part of the fair value exercise on the acquisition of Britvic France. These are shown in the table below:


	Teisseire	Moulin de Valdonne	Pressade	Fruité
	£m	£m	£m	£m
At 3 October 2010	49.9	4.1	4.7	4.4
At 27 September 2009	-	-	-	-

Further details are contained within notes 14 and 15.

Method of impairment testing

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 Group has considered the impact of the current economic climate in determining the appropriate discount rate to use in impairment testing. The pre-tax discount rate applied to pre-tax cash flow projections is 11 per cent (2009: 11 per cent) for goodwill excluding Britvic Ireland, 10 per cent (2009: 9 per cent) for the Britvic Ireland goodwill and trademarks recognised on the acquisition of Britvic Ireland and 11 per cent for the Britvic France goodwill and trademarks recognised on the acquisition of Britvic France.

Cash flows beyond a one year period are extrapolated based on senior management forecasts. No growth besides inflationary increases is assumed beyond five years. Senior management expectations are formed in line with performance to date 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 growth achieved to date, current strategy and expected market trends. No growth besides inflationary growth increases is assumed beyond five years.

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 the Britvic plc board. 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 increase in consumer price indices of 2.0 per cent (2009: 3.0 per cent). This has been used in all value in use calculations performed.

Conclusions

Red Devil Goodwill

Management no longer consider that the goodwill value carried in respect of Red Devil, within the GB business segment, is appropriate given market trends and the successful launch of Mountain Dew Energy during the period. As a result, the goodwill value of £5.0m has been fully written down in the current period.

Orchid Goodwill

Management have revised the future cash flow expectations for the Orchid cash generating unit, within the GB business segment, to reflect the Group's strategic portfolio priorities and an impairment loss of £6.4m has been recognised in the current period.

Britvic Ireland Goodwill and Trademarks with indefinite lives

As a result of the difficult trading conditions experienced in Ireland due to the sustained economic downturn, future cash flow expectations across the cash generating units under the Britvic Ireland business segment have been revised. Impairment losses have been recognised in respect of Britvic Ireland goodwill (£54.7m) and in respect of the Britvic (£3.5m), Cidona (£2.4m), Ballygowan (£23.3m) and TK (£0.5m) trademarks.

With regards to all of the remaining CGUs, there are no reasonably possible changes in key assumptions other than a further, currently unforecast material decline in the prospects for the economies in which the group operates, which would cause the value of the goodwill or any of the intangible assets with indefinite lives to materially fall short of their carrying value.

Intangible assets with finite lives

Trademarks

A trademark in respect of the 'C&C' brand, within the Britvic Ireland business segment, was recognised as part of the fair value exercise on the acquisition of Britvic Ireland. This trademark was being amortised over a 5 year licence period. Use of this trademark has now ceased and as a result its remaining carrying value has been fully written down and an impairment loss of £0.1m has been recognised in the current period.

Franchise rights

Franchise rights represent the franchise agreements acquired, as a result of the acquisition of Britvic Ireland, which provide the long term right to distribute certain soft drinks. Management have reviewed the performance of those products since acquisition and no indicators of impairment have been identified.

Customer lists

As part of the fair value exercise regarding the acquisition of Britvic Ireland in 2007, customer list assets with finite lives were recognised. Management have reviewed trading levels with those customers since acquisition and identified a number of material reductions which have been directly attributed to the difficult trading conditions experienced in Ireland due to the sustained economic downturn. Management have therefore proportionately reduced the carrying value of these assets and impairment losses of £5.1m have been recognised in the current period.

No impairment is required for the customer lists recognised on the acquisition of Britvic France.

Recognition of impairment losses

Impairment losses, in respect of intangible assets as detailed above, totalling £101.0m (2009: nil) have been recognised in the income statement within exceptional administration expenses. £11.4m relates to the GB carbs business segment and £89.6m relates to the Britvic Ireland business segment.

Sensitivity to changes in assumptions

Britvic Ireland goodwill and intangible assets

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 it could continue to decline. On this basis the cash flows that have been used for the value in use calculations have been risk adjusted. Based on these risk adjusted cash flows, the table below shows the sensitivity of all the Britvic Ireland impairment losses to each of the principal assumptions used:

Assumption	Change of assumption applied (%)	Increase / (decrease) in impairment losses (£m)


Discount rate	+1%	8.8

Inflation rate	+1%	(9.0)

Growth rate	-1%	3.7

Orchid goodwill

The table below shows the sensitivity of the Orchid goodwill impairment loss to each of the principal assumptions used:

Assumption	Change of assumption applied (%)	Increase / (decrease) in impairment losses (£m)


Discount rate	+1%	0.7

Inflation rate	+1%	(0.8)

Growth rate	-1%	0.4

Other

Other than those sensitivities outlined above, there are no further reasonably 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.

Any changes in key assumptions relating to the intangibles recognised on the acquisition of Britvic France would be adjusted as part of the fair value adjustments detailed in note 15.

17. Other receivables (non current)

	2010	2009
	£m	£m
Operating lease premiums	2.3	2.4

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

18. Inventories

	2010	2009
	£m	£m
Raw materials	22.9	13.4
Finished goods	50.3	29.3
Consumable stores	6.0	5.3
Returnable packaging	3.9	4.9
Total inventories at lower of cost and net realisable value	83.1	52.9

19. Trade and other receivables (current)

	2010	2009
	£m	£m
Trade receivables	184.4	145.5
Other receivables	8.8	8.1
Prepayments	34.8	24.3
	228.0	177.9

Trade receivables are non-interest bearing and are generally on credit terms usual for the markets in which the Group operates. As at 3 October 2010, trade receivables at nominal value of £1.2m (2009: £1.3m) were impaired and fully provided against. Movements in the provision for impairment of receivables were as follows:

			Total
			£m
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
Exchange differences			-
Acquisition			0.5
Charge for year			0.8
Utilised			(0.6)
Unused amounts reversed			(0.8)
At 3 October 2010			1.2

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 3 October 2010, 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

2010	184.4	172.2		7.5	2.1	1.7	0.9	-

2009	145.5	134.1		8.2	1.6	0.8	0.8	-

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.

20. Cash and cash equivalents

	2010	2009
	£m	£m
Cash at bank and in hand	54.0	39.7

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 3 October 2010, the Group had available £213.0m (2009: £154.7m) of un-drawn committed borrowing facilities in respect of which all conditions precedent had been met.

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

21. Non-current assets held for sale

	2010	2009
	£m	£m
Net transfer from property, plant and equipment	-	5.1

In the prior period, non-current assets held for sale related to three sites within the Britvic Ireland segment which are being disposed of as a result of the ongoing restructuring programme in that business. Due to the continued deterioration of the economy in the Republic of Ireland, conditions for a successful sale have been very challenging in the current period. As such the assets have been transferred back into property, plant and equipment during the current period (see note 13).

22. Issued share capital

The issued share capital as at 3 October 2010 comprised 239,906,178 ordinary shares of £0.20 each (2009: 216,779,996 ordinary shares), totalling £47,981,236 (2009: £43,355,999).

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.

	2010	2009
	£m	£m

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

Issued, called up and fully paid ordinary shares
239,906,178 (2009: 216,779,996) ordinary shares of £0.20 each	48.0	43.4

Share issues in the current and prior periods relating to incentive schemes for employees are detailed below:


53 weeks ended 3 October 2010	No of shares issued	Value £
25 November 2009	103,102	20,620
30 November 2009 7 December 2009 14 January 2010 28 January 2010 22 February 2010 5 March 2010 29 March 2010 9 April 2010 1 June 2010 19 August 2010 1 October 2010	134,684 34,837 57,749 131,140 57,789 50,039 46,118 406,083 12,244 300,000 12,244	26,937 6,967 11,550 26,228 11,558 10,008 9,224 81,217 2,449 60,000 2,449
	1,346,029	269,207

52 weeks ended 27 September 2009	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

Shares were also issued under a non pre-emptive placing as follows:

No of shares issued

Par value

21 May 2010

21,780,153

4,356,031

Consideration received from the non pre-emptive placing, net of costs incurred, was £91,647,000 which was used in the acquisition of Britvic France.

Of the issued and fully paid ordinary shares, 466,343 shares (2009: 1,410,338 shares) are treasury shares. This equates to £93,269 (2009: £282,068) 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.

23. Interest bearing loans and borrowings

	2010	2009
	£m	£m
Non-current
Finance leases	(1.5)	-
Unsecured bank loans	(126.3)	(180.2)
Private placement notes	(445.7)	(274.6)
Less unamortised issue costs	3.6	4.1
Total non-current	(569.9)	(450.7)

The table below provides an analysis of amounts included within interest bearing loans and borrowings:

	2010	2009
	£m	£m
Finance leases	(1.5)	-
2007 Notes	(275.0)	(273.1)
2009 Notes	(167.9)	-
Unsecured bank loans	(125.3)	(178.7)
Accrued interest	(3.8)	(3.0)
Capitalised issue costs	3.6	4.1
	(569.9)	(450.7)

Analysis of changes in interest-bearing loans and borrowings

	2010	2009
	£m	£m
Current liabilities	-	(11.6)
Non-current liabilities	(450.7)	(402.7)
At the beginning of the period	(450.7)	(414.3)
Acquisition of Britvic France	(46.0)	-
Repayment of €100.0m loan	90.1	-
Issue of 2009 Notes	(149.8)	-
Issue costs	1.2	4.1
Amortisation of issue costs	(1.7)	(1.0)
Unsecured loans	4.9	7.3
Net translation loss	(17.1)	(45.4)
Accrued interest	(0.8)	(1.4)
At the end of the period (non-current liabilities)	(569.9)	(450.7)
Derivatives hedging balance sheet debt*	64.7	44.6
Debt translated at contracted rate	(505.2)	(406.1)

*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.

Bank loans

The committed facilities available to the Group reduced from £333.3m to £283.3m in May 2010. However an additional £50.0m bi-lateral facility was negotiated at this time preserving the level of committed facilities at £333.3m. These are revolving multi-currency facilities and mature in May 2012.

The unsecured bank loans classified as non-current are repayable in May 2012 (2009: May 2012).

Loans outstanding at 3 October 2010 attract interest at an average rate of 3.04% for euro denominated loans (2009: 1.52%). There were no sterling denominated loans outstanding at 3 October 2010 (2009: 1.50%). Interest on bank loans is re-priced at regular intervals based off LIBOR. For further details, please refer to note 26.

Private placement notes

2007 Notes

On 20 February 2007, Britvic plc issued US$375m and £38m of Senior Notes ('the 2007 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 interest rate 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 downwards movement in the credit rating as defined in the Note purchase agreement.

2009 Notes

On 17 December 2009, Britvic plc issued US$250m of Senior Notes in the United States Private Placement market ('the 2009 Notes'). The 2009 Notes are additional borrowings to the 2007 Notes. The proceeds from the 2009 Notes were principally used to repay amounts drawn on the Group's existing borrowings, including the repayment of €100m of the revolving credit facility. Issue costs incurred in the period relate to the issue of the 2009 Notes.

Britvic plc makes semi-annual interest payments in US dollars, with the first payment made on 17 June 2010. The 2009 Notes are unsecured and rank pari passu in right of repayment with other senior unsecured indebtedness of the Group.

In order to manage foreign exchange risk, interest rate risk and to ensure an appropriate mix of sterling and euro funding, the Group has entered into a number of new cross currency interest rate swaps. The 2009 Notes were swapped into floating rate sterling and euro liabilities through a series of US dollar to sterling and sterling to euro swap instruments. These new cross currency interest rate swap contracts have the same duration and other critical terms as the relevant borrowings they hedge and are designated as part of effective hedge relationships (see note 27).

The amount, maturity and interest terms of the 2009 Notes are shown in the table below:

Series	Tranche	Maturity date	Amount	Interest terms	Swap terms
A	5 year	17 December 2014	US$30m	US$ fixed at 4.07%	UK£ LIBOR + 1.44%
B	7 year	17 December 2016	US$75m	US$ fixed at 4.77%	EURIBOR + 1.69%
C	8 year	17 December 2017	US$25m	US$ fixed at 4.94%	EURIBOR + 1.70%
D	10 year	17 December 2019	US$120m	US$ fixed at 5.24%	EURIBOR + 1.75%

As detailed in the table above, the 2009 USPP cross currency swaps converted an amount of US dollar borrowings into a €147.0m floating rate euro liability. To mitigate exposure to changes in euro interest rates on this liability, €75.0m of interest rate swaps were transacted. These 5-year fixed rate swaps have an effective start date in December 2010.

2010 Notes

In September 2010, the Company reached agreement with a number of investors in the US private placement market to raise an additional $163m and £7.5m of funding for terms between 7 and 12 years ('the 2010 Notes'). The funding is subject to final documentation and due diligence which is scheduled to be completed in December 2010. The dollar funding has been hedged using forward starting 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.

24. Pensions

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, with a further valuation carried out at 31 March 2010 currently being finalised. As a result of the latest formal valuation, an annual contribution of £10.0m in respect of the funding shortfall outlined in the Recovery Plan will be made by 31 December 2010. These arrangements will be reviewed with the Trustee after the 31 March 2010 valuation is completed.

The amount recognised as an expense in relation to the BPP defined contribution scheme in the income statement for 2010 was £3.6m (2009: £2.9m).

In Northern Ireland, the Britvic Northern Ireland Pension Plan (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. Employees of C&C Group transferred out of BNIPP on 30 June 2008 with the bulk transfer of assets for the C&C employees taking place in December 2009. The latest formal actuarial valuation for contribution purposes was carried out as at 31 December 2008 and as a result shortfall correction additional contributions of £90,000 per month until 31 December 2010, and £125,000 per month from 1 January 2011 to 31 December 2019 are being paid in accordance with the Recovery Plan dated December 2009.

In the Republic of Ireland, employees continued to participate in a number of C&C Group pension schemes 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 new employees have been offered membership of the defined contribution plan in the first instance, with the ability to transfer into the defined benefit plan for future service benefits after a period of 5 years. The Company continues to pay instalments of €200,000 for each monthly pay period, in addition to normal on-going contributions, relating to the supplementary cost of the reorganisation programme that took place at the end of 2008. The first formal actuarial valuation was carried out at 31 December 2009 and is still being finalised.

The amount recognised as an expense in relation to the Irish defined contribution schemes in the Income Statement for 2010 was £0.4m (2009: £0.3m).

All Group pension schemes 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 3 October 2010 by Towers Watson (BPP) and Mercer (BIPP and BNIPP).

Included within the pension liability on the consolidated balance sheet is an accrual of £1.1m for retirement indemnities in respect of Britvic France. This liability is considered to be immaterial and no further disclosure is included within this note.

Principal Assumptions

Financial Assumptions

	2010	2010	2010	2009	2009	2009
	%	%	%	%	%	%
	ROI	NI	GB	ROI	NI	GB
Discount rate	4.90	5.00	5.05	5.75	5.50	5.65
Rate of compensation increase	3.00	4.50	4.50	3.30-3.80	4.50	4.40
Expected long term return on plan assets	6.00	6.65	5.82	7.00	7.32	6.75
Pension increases	3.00	2.30-3.40	2.30-3.40	3.00	2.30-3.40	2.25-3.30
Inflation assumption	2.00	3.50	3.50	2.30	3.50	3.40

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:

	2010 Years	2010 Years	2010 Years	2009 Years	2009 Years	2009 Years
	ROI	NI	GB	ROI	NI	GB
Current pensioners (at age 65) - males	22.7	20.9	21.9	20.7	20.8	20.0
Current pensioners (at age 65) - females	24.4	23.7	24.2	23.8	23.6	23.0
Future pensioners currently aged 45 (at age 65) - males	25.6	22.6	24.1	21.8	22.6	21.2
Future pensioners currently aged 45 (at age 65) - females	26.7	25.1	26.6	24.8	25.1	24.0

The mortality assumptions used to calculate the GB pension obligation were revised in 2010 following a mortality analysis carried out as part of the ongoing actuarial valuation of the Britvic Pension Plan at 31 March 2010.

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 £1.7m	Decrease/increase by £0.5m	Decrease/increase by £11.4m

Inflation rate	Increase/decrease by 0.1%	Increase/decrease by £0.8m	Increase/decrease by £0.3m	Increase/decrease by £6.8m

Mortality rate	Increase in life expectancy by one year	Increase by £1.6m	Increase by £0.6m	Increase by £15.2m

Net benefit expense

				2010
	ROI	NI	GB	Total
	£m	£m	£m	£m
Current service cost	(2.0)	(0.3)	(4.2)	(6.5)
Interest cost on benefit obligation	(3.0)	(1.3)	(26.3)	(30.6)
Expected return on plan assets	2.6	1.1	24.1	27.8
Curtailment gain	0.8	0.2	-	1.0
Net expense	(1.6)	(0.3)	(6.4)	(8.3)
	ROI	NI	GB	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)

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 curtailments in the year were triggered by the redundancies of employees resulting in a significant number of members moving from active to deferred status in the period.These employees no longer accrue future entitlement, which gave rise to the curtailment gain.

Taken to the statement of comprehensive income

				2010
	ROI	NI	GB	Total
	£m	£m	£m	£m
Actual return on scheme assets	4.3	1.5	49.2	55.0
Less: Expected return on scheme assets	(2.6)	(1.1)	(24.1)	(27.8)
	1.7	0.4	25.1	27.2
Other actuarial losses	(15.3)	(2.4)	(58.5)	(76.2)
Actuarial losses taken to the statement of comprehensive income	(13.6)	(2.0)	(33.4)	(49.0)

				2009
	ROI	NI	GB	Total
	£m	£m	£m	£m
Actual (loss) / 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 comprehensive income	(1.9)	(1.6)	(68.5)	(72.0)

Net liability

				2010
	ROI	NI	GB	Total
	£m	£m	£m	£m
Present value of benefit obligation	(69.6)	(26.8)	(544.6)	(641.0)
Fair value of plan assets	45.7	18.8	459.3	523.8
Net liability	(23.9)	(8.0)	(85.3)	(117.2)

				2009
	ROI	NI	GB	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)

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

				2010
	ROI	NI	GB	Total
	£m	£m	£m	£m
At 27 September 2009	(52.4)	(23.8)	(470.8)	(547.0)
Exchange differences	2.6	-	-	2.6
Curtailment gain	0.8	0.2	-	1.0
Current service cost	(2.0)	(0.3)	(4.2)	(6.5)
Member contributions	(0.6)	-	(1.5)	(2.1)
Interest cost on benefit obligation	(3.0)	(1.3)	(26.3)	(30.6)
Benefits paid	0.3	0.8	16.7	17.8
Actuarial losses	(15.3)	(2.4)	(58.5)	(76.2)
At 3 October 2010	(69.6)	(26.8)	(544.6)	(641.0)

				2009
	ROI	NI	GB	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)

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

				2010
	ROI	NI	GB	Total
	£m	£m	£m	£m
At 27 September 2009	34.0	16.2	411.7	461.9
Exchange differences	(1.7)	-	-	(1.7)
Expected return on plan assets	2.6	1.1	24.1	27.8
Actuarial gains	1.7	0.4	25.1	27.2
Employer contributions	8.8	1.9	13.6	24.3
Member contributions	0.6	-	1.5	2.1
Benefits paid	(0.3)	(0.8)	(16.7)	(17.8)
At 3 October 2010	45.7	18.8	459.3	523.8

				2009
	ROI	NI	GB	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

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

				2010	2010
	ROI	NI	GB	Total	Total
	£m	£m	£m	£m	%
Equities	30.6	15.4	260.2	306.2	59
Bonds and gilts	14.6	1.9	194.7	211.2	40
Cash	0.5	1.5	4.4	6.4	1
Total	45.7	18.8	459.3	523.8	100

				2009	2009
	ROI	NI	GB	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

Analysis of expected return on assets by categories of scheme assets

				2010	2010
	ROI	NI	GB	Total	Total
	£m	£m	£m	£m	%
Equities	2.2	1.0	16.6	19.8	71
Bonds and gilts	0.4	0.1	7.5	8.0	29
Cash	-	-	-	-	-
Total	2.6	1.1	24.1	27.8	100

				2009	2009
	ROI	NI	GB	Total	Total
	£m	£m	£m	£m	%
Equities	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

History of experience gains and losses

	2010	2009	2008	2007	2006
	£m	£m	£m	£m	£m
Fair value of schemes assets	523.8	461.9	424.5	479.3	388.7
Present value of defined benefit obligations	(641.0)	(547.0)	(448.4)	(484.9)	(454.5)
Deficit in the schemes	(117.2)	(85.1)	(23.9)	(5.6)	(65.8)
Experience adjustments arising on plan liabilities	36.7	2.0	3.3	(17.2)	(2.0)
Experience adjustments arising on plan assets	27.2	(2.7)	(98.9)	13.6	10.0

The cumulative amount of actuarial gains and losses recognised since 4 October 2004 in the Group statement of comprehensive income is an overall loss of £103.5m (2009: loss of £54.5m). 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 comprehensive income before 4 October 2004.

Normal contributions of £4.7m and additional contributions of £13.5m are expected to be paid into the pension schemes during the 2011 financial year.

25. Trade and other payables (current)

	2010	2009
	£m	£m
Trade payables	232.4	187.0
Other payables	11.3	19.9
Accruals and deferred income	74.8	68.6
Other taxes and social security	30.4	16.1
	348.9	291.6

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 and share price exposure arising under the Group's employee incentive schemes. Other financial instruments which arise directly from the Group's operations include trade receivables and payables (see notes 19 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 interest rate risk, foreign currency risk, credit risk and liquidity risk. Additionally, the Group is exposed to commodity price risk and share price risk. The Board of Directors review and agree policies for managing these risks as summarised below.

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 rate debt. The Group's policy is to keep between 25% and 80% of its borrowings at fixed rates of interest over a three year time horizon. To manage this, the Group enters into interest rate swaps, cross currency swaps and forward rate agreements which are designated to hedge underlying debt obligations. At 3 October 2010, after taking into account the effect of these instruments, approximately 63% of the Group's borrowings are at a fixed rate of interest (2009: 62%).

Interest rate risk table

The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with all other variables held constant, of the Group's loss before tax (through the impact on floating rate borrowings) and equity for changes in the fair values of applicable derivative instruments.

	Increase / (decrease) in basis points	Effect on loss before tax	Effect on equity
		£m	£m
2010
Sterling	200	(0.9)	26.4
	(200)	0.9	(30.4)
Euro	200	2.3	8.5
	(200)	(3.1)	(10.5)

2009
Sterling	200	(2.1)	24.6
	(200)	2.1	(28.6)
Euro	200	(2.1)	-
	(200)	2.1	-

Foreign currency risk

Foreign currency risk is primarily in respect of exposure to fluctuations to the sterling-euro, sterling-US dollar and euro-US dollar rates of exchange. The Group has operations in euro-denominated countries and finances these partly through the use of foreign currency borrowings and cross currency swaps 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 capital expenditure 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 3 October 2010, the Group has hedged 68% (2009: 48%) of forecast net 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
2010
Sterling / euro	10	(0.1)	3.5
	(10)	0.1	(3.5)
Sterling / US dollar	10	(0.1)	0.7
	(10)	0.1	(0.7)
Euro / US dollar	10	-	1.4
	(10)	-	(1.4)

2009
Sterling / euro	10	(1.7)	2.4
	(10)	1.4	(2.2)
Sterling / US dollar	10	-	1.0
	(10)	-	(0.8)
Euro / US dollar	-	-	-
	-	-	-

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 19. 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.

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.

Share schemes equity price risk

The Group operates several employee incentive share schemes. It has an exposure to the share price for the schemes in which shares are purchased in the market to satisfy the requirements of the plan. To hedge this risk the Group has entered into a number of total return share swaps against schemes maturing in 2010, 2011 and 2012.

Liquidity risk

The Group monitors its risk of a shortage of funds using rolling cash flow forecasts. These forecasts consider 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 3 October 2010, none of the Group's debt will mature in less than one year (2009: 0%) 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 3 October 2010 based on contractual undiscounted payments:

				2010
	Less than 1 year	1 to 5 years	> 5 years	Total
	£m	£m	£m	£m
Unsecured bank loans	3.8	128.1	-	131.9

Private placement notes	23.6	195.3	375.4	594.3
Derivatives hedging private placement notes - payments	16.7	139.6	431.9	588.2
Derivatives hedging private placement notes - receipts	(23.3)	(179.4)	(483.7)	(686.4)
	17.0	155.5	323.6	496.1

Interest rate swap - payments	0.7	5.9	0.7	7.3
Interest rate swap - receipts	(0.4)	(3.1)	(0.4)	(3.9)
	0.3	2.8	0.3	3.4

Trade and other payables	318.5	-	-	318.5
Finance leases	-	0.7	0.8	1.5
Other financial liabilities	1.4	-	-	1.4
	341.0	287.1	324.7	952.8
				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	275.5	-	-	275.5
Other financial liabilities	0.4	-	-	0.4
	292.5	312.6	183.5	788.6

In respect of the private placement notes, the periods when the cash flows are expected to occur (as shown by the tables above) and when they are expected to affect the income statement are the same.

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

Fair value hierarchy

The Group uses the following valuation hierarchy to determine the carrying value of financial instruments that are measured at fair value:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data.

2010	Assets £000	Liabilities £000
Level 1	-	-

Level 2
- Derivatives used for hedging	82.0	(4.3)
- Financial instruments at fair value through profit or loss	0.1	(0.9)

Level 3	-	-

Total	82.1	(5.2)

2009	Assets £000	Liabilities £000
Level 1	-	-

Level 2
- Derivatives used for hedging	53.7	(0.4)

Level 3	-	-

Total	53.7	(0.4)

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 capital 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 3 October 2010 the net debt / EBITDA ratio was 2.4 (2009: 2.4).

27. Derivatives and hedge relationships

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
	2010	2010	2009	2009
	£m	£m	£m	£m
Financial assets
Cash	54.0	54.0	39.7	39.7
Cross currency interest rate swaps*	81.3	81.3	51.9	51.9
Share swaps*	0.1	0.1	-	-
Favourable contracts recognised on the acquisition of Britvic France**	0.3	0.3	-	-
Forward currency contracts**	0.7	0.7	1.8	1.8
	136.4	136.4	93.4	93.4

Financial liabilities
Interest-bearing loans and borrowings (bank loans and private placement notes):
Fixed rate borrowings	(433.5)	(481.2)	(264.6)	(272.7)
Floating rate borrowings	(134.9)	(134.9)	(186.1)	(186.1)
Finance leases	(1.5)	(1.5)	-	-
Forward currency contracts***	(1.3)	(1.3)	(0.4)	(0.4)
Unfavourable contracts recognised on the acquisition of Britvic France***	(0.1)	(0.1)	-	-
Cross currency interest rate swaps****	(3.0)	(3.0)	-	-
Interest rate swap****	(0.9)	(0.9)	-	-
	(575.2)	(622.9)	(451.1)	(459.2)

* Included within 'Non-current assets: Other financial assets' on the consolidated balance sheet

** Included within 'Current assets: Other financial assets' on the consolidated balance sheet

*** Included within 'Current liabilities: Other financial liabilities' on the consolidated balance sheet

**** Included within 'Non-current liabilities: Other financial liabilities' on the consolidated sheet

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 to 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.

Interest rate swap

The 2009 USPP cross currency swaps converted an amount of US dollar borrowings into a €147.0m floating rate euro liability. To mitigate exposure to changes in euro interest rates on this liability, €75.0m of interest rate swaps were transacted. These 5-year fixed rate swaps have an effective start date in December 2010.

Hedging activities

The Group has a number of derivative contracts which are designated as part of effective hedge relationships. These are included in other financial assets and liabilities as follows:

	2010	2009
	£m	£m
Consolidated balance sheet

Non-current assets: Other financial assets
Fair value of the 2007 cross currency interest rate swaps¹	58.0	51.9
Fair value of the 2009 USD GBP cross currency interest rate swaps³	23.3	-

Current assets: Other financial assets
Fair value of forward currency contracts¹	0.7	1.8

Current liabilities: Other financial liabilities
Fair value of forward currency contracts¹	(1.3)	(0.4)

Non-current liabilities: Other financial liabilities
Fair value of the 2009 GBP euro cross currency interest rate swaps²	(0.4)	-
Fair value of the 2010 GBP euro cross currency interest rate swaps²	(1.2)	-
Fair value of the 2010 USD GBP cross currency floating interest rate swaps³	(0.7)	-
Fair value of the 2010 USD GBP cross currency fixed interest rate swaps¹	(0.7)	-


¹ Instruments designated as part of a cash flow hedge relationship
² Instruments designated as part of a net investment hedge relationship
³ Instruments designated as part of a fair value hedge relationship

As at the 3 October 2010 these hedging relationships are categorised as follows:

Cash flow hedges

Forward currency contracts

At 3 October 2010, the Group held 60 (2009: 44) US dollar and 30 (2009: 67) euro forward exchange contracts (the 'forward currency contracts') designated as hedges of expected future purchases from suppliers in US dollars and euros 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 forward currency contracts hedge the expected future purchases in the period to 2 October 2011 and have been assessed as part of effective cash flow hedge relationships. At the period end there is a net unrealised loss of £0.6m (2009: net unrealised gain of £1.3m), with a related deferred tax asset of £0.1m (2009: related deferred tax liability of £0.4m), which has been included in equity in respect of these contacts.

The terms of these forward contracts are detailed in the table below.

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

2010
£ / US$10.3m	Oct 10 to Sept 11	£ / US$1.54
£ / €40.2m	Oct 10 to Jul 11	£ / €1.15
€ / US$21.3m	Oct 10 to Sept 11	€ / US$1.31

2009
£ / US$14.1m	Sept 09 to Aug 10	£ / US$1.57
£ / €26.5m	Sept 09 to Aug 10	£ / €1.17

Cross currency interest rate swaps

2007 Notes / 2007 cross currency interest rate swaps

The Group continues to have a number of cross currency interest rate swaps relating to the 2007 Notes. These cross currency interest rate swaps (the '2007 cross currency interest rate swaps') have the effect of fixing the borrowings and interest payable on the 2007 Notes into sterling. The 2007 cross currency interest rate swap instruments have the same duration and other critical terms as the 2007 Notes and continue to be designated as part of a cash flow hedge relationship with the 2007 Notes. This has been assessed to be a highly effective relationship as at 3 October 2010. The fair value of the 2007 cross currency interest rate swap instruments at 3 October 2010, included within 'Non-current assets: Other financial assets' on the balance sheet, was £58.0m (2009: £51.9m). The movement in the fair value has been taken to equity. A total of £1.9m (2009: £31.6m) has been recycled to the Income Statement to match the foreign exchange movement on the 2007 Notes. Within equity there is a net unrealised gain of £11.4m (2009: net unrealised gain of £7.3m) with a related deferred tax liability of £3.1m (2009: deferred tax liability of £2.1m) in respect of the 2007 cross currency interest rate swap instruments.

2010 Notes / 2010 USD GBP cross currency fixed interest rate swaps

As detailed in note 23, the Company has reached agreement with a number of investors in the US private placement market to raise an additional $163m and £7.5m of funding for terms between 7 and 12 years. The funding is subject to final documentation and due diligence which is scheduled to be completed in December 2010 but the receipt of funds is considered a highly probable transaction. Cross currency interest rate swaps have already been entered into to hedge the 2010 Notes. These instruments swap the principal and interest from US dollar into sterling (the '2010 USD GBP cross currency fixed interest rate swaps'). The 2010 USD GBP cross currency interest rate swaps which swap interest from fixed US dollar to fixed sterling are designated as part of a cash flow hedge relationship with the future cashflows associated with the 2010 Notes. The fair value of these instruments at 3 October 2010, included within 'Non-current liabilities: Other financial liabilities' on the balance sheet, was £0.7m with a related deferred tax asset of £0.2m. The movement in fair value has been taken to equity.

Fair value hedges

2009 Notes / 2009 USD GBP cross currency interest rate swaps

Further to the detail provided in note 23, the Group has entered into new cross currency interest rate swaps in respect of the 2009 Notes. These instruments swap the principal and interest from fixed US dollar into floating sterling (the '2009 USD GBP cross currency interest rate swaps'). The 2009 USD GBP cross currency interest rate swaps are designated as part of a fair value hedge relationship with the 2009 Notes. The fair value movements on the 2009 USD GBP cross currency interest rate instruments are recorded in the income statement, as is the fair value movement in the 2009 Notes. The 2009 USD GBP cross currency interest rate swap contracts have the same duration and other critical terms as the 2009 Notes they hedge. The 2009 USD GBP cross currency interest rate swaps have been assessed as part of a highly effective hedge relationship as at 3 October 2010. The fair value of the swap instruments at 3 October 2010, included within 'Non-current assets: Other financial assets' on the balance sheet, was £23.3m.

2010 Notes / 2010 USD GBP cross currency floating interest rate swaps

The Group has entered into swap instruments which swap the principal and fixed rate interest of the 2010 Notes to floating sterling ('2010 USD GBP cross currency floating interest rate swaps'). These instruments are designated as part of a fair value hedge relationship with the 2010 Notes. As at 3 October 2010 the 2010 Notes had not been received. Within this hedge relationship the hedged item as at the period end is the firm commitment for the receipt of the 2010 Notes. The firm commitment is recorded at fair value (see note 28). The fair value movements on the 2010 USD GBP cross currency floating interest rate swaps are recorded in the income statement, as is the fair value movement of the hedged item. The fair value of the 2010 USD GBP cross currency floating interest rate swaps at 3 October 2010, included within 'Non-current liabilities: Other financial liabilities' on the balance sheet, was £0.7m.

Net investment hedges

The Group has entered into new cross currency interest rate swaps in the period. These are detailed below:

2009 GBP euro cross currency interest rate swaps

These new instruments swap floating sterling liabilities into floating euro liabilities. They have been designated as part of an effective hedge of the net investment in Britvic Ireland. The 2009 GBP euro cross currency interest rate swaps, along with the underlying loan instruments, are being used to hedge the Group's exposure to foreign exchange risk on this euro investment. Movements in the fair value of the 2009 GBP euro cross currency interest rate swaps are taken to equity where they offset foreign exchange movements on the translation of the net investment in Britvic Ireland. The fair value of the 2009 GBP euro cross currency interest rate swaps at 3 October 2010, is a liability of £0.4m included within 'Non-current liabilities: Other financial liabilities' on the balance sheet.

2010 GBP euro cross currency interest rate swaps

These new instruments swap fixed sterling liabilities into fixed euro liabilities and have been designated as part of an effective hedge of the net investment in Britvic France. The 2010 GBP euro cross currency interest rate swaps, along with the underlying loan instruments, are being used to hedge the Group's exposure to foreign exchange risk on this euro investment. Movements in the fair value of the 2010 GBP euro cross currency interest rate swaps are taken to equity where they offset foreign exchange movements on the translation of the net investment in Britvic France. The fair value of the 2010 GBP euro cross currency interest rate swaps at 3 October 2010, is a liability of £1.2m included within 'Non-current liabilities: Other financial liabilities' on the balance sheet.

Other

As at 3 October 2010, unsecured bank loans included an amount of €55.0m (£47.9m) which was designated as an effective hedge of the net investment in Britvic France.

As at 27 September 2009, unsecured bank loans included an amount of €100.0m (£92.1m) which was designated as an effective hedge of the net investment in Britvic Ireland. This loan was repaid during the period (see note 23).

The impact on the consolidated statement of comprehensive income of the derivatives and hedge relationships described above is summarised in the table below.


	2010	2009
	£m	£m
Consolidated statement of comprehensive income

Amounts recycled to the income statement in respect of cash flow hedges
Forward currency contracts*	(1.1)	(3.0)
2007 cross currency interest rate swaps**	(1.9)	(31.6)
	(3.0)	(34.6)
Gains/(losses) in the period in respect of cash flow hedges
Forward currency contracts*	(0.9)	4.1
2007 cross currency interest rate swaps**	6.1	29.7
2010 cross currency fixed interest rate swaps**	(0.7)	-
	4.5	33.8
Exchange differences on translation of foreign operations
Movement on 2009 GBP euro cross currency interest rate swaps**	(0.4)	-
Movement on 2010 GBP euro cross currency interest rate swaps**	(1.2)	-
Exchange movements on translation of the euro net investment**	(12.1)	17.1
	(13.7)	17.1

* Amounts recorded in cost of sales

** Amounts recorded in finance costs

28. Other non-current liabilities

	2010	2009
	£m	£m
Firm Commitment	4.2	-

A firm commitment has been created in respect of the receipt of the 2010 Notes. Further details are provided in note 27.

29. Share-based payments

The expense recognised for share-based payments in respect of employee services received during the 53 weeks ended 3 October 2010, including national insurance of £0.9m (2009: £0.5m) and dividend equivalents of £0.7m (2009: £0.3m), is £9.4m (2009: £7.7m). 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
	2010	2009
Annual free shares award	406,083	675,573
Matching shares award - 1 free share for every ordinary share purchased	287,132	464,205

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% (2009: 25%) 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 option holder 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 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 as at 27 September 2009	6,564,530	251.8
Granted during the period	1,785,576	387.0
Exercised during the period	(639,946)	245.0
Forfeited during the period	(162,077)	285.1
Outstanding at 3 October 2010	7,548,083	283.7
Exercisable at 3 October 2010	2,054,747	245.0

The weighted average share price at the date of exercise for share options exercised during the period was 412.7p (2009: 317.1p).

The share options outstanding as at 3 October 2010 had a weighted average remaining contractual life of 7.6 years (2009: 8.0 years) and the range of exercise prices was 221.0p - 387.0p (2009: 221.0p - 347.0p).

The weighted average fair value of options granted during the period was 81.6p (2009: 52.3p).

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 53 weeks ended 3 October 2010.

	2010	2009
Dividend yield (%)	4.2	4.3
Expected volatility (%)	32.3	33.1
Risk-free interest rate (%)	2.5	2.9
Expected life of option (years)	5.0	5.0
Share price at date of grant (pence)	380.0	224.0
Exercise price (pence)	387.0	221.0

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 or nil cost options to be made to selected employees subject to the satisfaction of a performance condition. Different performance conditions apply to different groups of employees. Awards up to and including 2008 were made in respect of ordinary shares. Awards granted in 2009 were made in respect of nil cost options. Nil cost options become exercisable on the satisfaction of the performance conditions and remain exercisable until 10 years / 7 years after the date of grant for employees based in the UK / Ireland respectively.

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. Prior to 2008, 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% (2009: 25%) 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 23.2% (2009: 18.8%) over the three year performance period for the award to vest in full. If ROIC is 21.9% (2009: 16.8%) over the performance period, 25% (2009: 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 are 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% (2009: 25%) 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 was 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 tables illustrate the movements in the number of shares and nil cost options 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 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 as at 27 September 2009	1,716,624	2,336,861	620,591
Vested during the period*	(625,594)	(489,791)	-
Lapsed during the period	(38,041)	(191,019)	(28,919)
Outstanding at 3 October 2010	1,052,989	1,656,051	591,672

* The share price on the date of vesting was 370.6p (2009: 228.0p).

	Number of nil cost options subject to TSR condition	Number of nil cost options subject to EPS condition	Number of nil cost options subject to ROIC condition
Outstanding as at 27 September 2009	-	-	-
Granted during the period	396,578	816,207	396,578
Forfeited during the period	-	(69,349)	-
Outstanding at 3 October 2010	396,578	746,858	396,578

There were no nil cost options exercisable at 3 October 2010.

The nil cost options outstanding as at 3 October 2010 had a weighted average remaining contracted life of 9.0 years (TSR condition), 8.7 years (EPS condition) and 9.0 years (ROIC condition).

The weighted average fair value of nil cost options granted during the period was 208.5p (TSR condition) (2009: 121.6p), 336.3p (EPS condition) (2009: 197.7p) and 336.3p (ROIC condition) (2009: 197.7p).

The fair value of equity-settled shares and nil cost options 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 and nil cost options were granted.

The following table lists the inputs to the models used for the 53 weeks ended 3 October 2010.


	Nil cost options subject to TSR condition	Nil cost options subject to EPS condition	Nil cost options 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 (%)	4.2	4.2	4.2
Expected volatility (%)	32.3	N/A	N/A
Share price at date of grant (pence)	380.0	380.0	380.0

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

30. Notes to the consolidated cash flow statement

Analysis of net debt

	2009	Cash flows	Exchange Differences	Other movement	2010
	£m	£m	£m	£m	£m
Cash at bank and in hand	39.7	14.8	(0.5)	-	54.0
Net cash	39.7	14.8	(0.5)	-	54.0

Debt due after more than one year	(450.7)	(53.6)	(17.1)	(48.5)***	(569.9)
Debt	(450.7)	(53.6)**	(17.1)	(48.5)	(569.9)

Derivatives hedging the balance sheet debt*	44.6	-	20.1	-	64.7
Adjusted net debt	(366.4)	(38.8)	2.5	(48.5)	(451.2)

	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
Adjusted net debt	(388.4)	38.0	(13.6)	(2.4)	(366.4)

* 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 paid on new loans received during the period of £1.2m (2009: £4.1m). This has been included in the 'Finance costs' in the Consolidated Statement of Cash Flows.

*** This includes debt assumed on the acquisition of Britvic France of £46.0m. Refer to note 15 for further details.

31. Commitments and contingencies

Operating lease commitments

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

	2010
	Land and buildings	Other	Total
	£m	£m	£m

Within one year	2.8	8.9	11.7
After one year but not more than five years	8.0	18.5	26.5
More than five years	32.5	2.2	34.7
	43.3	29.6	72.9

	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

Finance lease commitments

Future minimum lease payments under finance leases are as follows:


	2010	2009
	£m	£m

Within one year	-	-
After one year but not more than five years	0.7	-
More than five years	0.8	-
	1.5	-

Due to the timing of the expiry of the finance lease commitments, there is no material difference between the total future minimum lease payments and their fair value.

Capital commitments

At 3 October 2010, the group has commitments of £12.6m (2009: £3.2m) relating to the acquisition of new plant and machinery.

Contingent liabilities

The Group had no material contingent liabilities at 3 October 2010.

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	Principal activity	Country of incorporation	% equity interest
Directly held
Britannia Soft Drinks Limited	Holding company	England and Wales	100
Britvic Finance No 2 Limited	Financing company	Jersey	100
Indirectly held
Britvic Finance Limited	Financing company	Jersey	100
Britvic Holdings Limited	Holding company	England and Wales	100
Britvic Overseas Limited	Holding company	England and Wales	100
Britvic International Limited	Marketing and distribution of soft drinks	England and Wales	100
Britvic Soft Drinks Limited	Manufacture and sale of soft drinks	England and Wales	100
Robinsons Soft Drinks Limited	Non-trading	England and Wales	100
Orchid Drinks Limited	Non-trading	England and Wales	100
Red Devil Energy Drinks Limited	Non-trading	England and Wales	100
Britvic Irish Holdings Limited	Holding company	Republic of Ireland	100
Robinsons (Finance) Limited	Financing company	Republic of Ireland	100
Robinsons (Finance) No 2 Limited	Financing company	England and Wales	100
Britvic Ireland Limited	Manufacture and marketing of soft drinks	Republic of Ireland	100
Britvic Northern Ireland Limited	Marketing and distribution of soft drinks	Republic of Ireland	100
Aquaporte Limited	Supply of water-coolers and bottled water	Republic of Ireland	100
Star Command SAS	Holding company	France	100
Fruité Entreprises SA	Holding company	France	100
Fruité SAS	Manufacture and sale of soft drinks	France	100
Bricfruit SAS	Manufacture and sale of soft drinks	France	100
Unisource SAS	Manufacture and sale of soft drinks	France	100
Teisseire SAS	Manufacture and sale of soft drinks	France	100
Teisseire Benelux SA	Marketing and distribution of soft drinks	France	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 period is detailed below.

	2010	2009
	£m	£m
Short-term employee benefits	5.1	4.6
Post-employment benefits	0.6	0.5
Share-based payment	2.0	1.6
	7.7	6.7

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 3 October 2010, the Consolidated Balance Sheet is showing a net liabilities position of £30.7m (27 September 2009: net liabilities of £2.5m).

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 in the prior period as well as the 2009 Notes secured in the current period and the 2010 Notes which will be secured in December 2010 subject to documentation and due diligence (see note 23).

This information is provided by RNS

The company news service from the London Stock Exchange

END

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