Interim Results
Computacenter PLC
07 September 2004
For Release at 0700hrs on Tuesday 7th September, 2004
COMPUTACENTER PLC
Interim Results Announcement
Computacenter plc, the European IT infrastructure services provider, today
announces interim results for the six months ended 30 June 2004.
Financial Highlights:
• Group revenues unchanged at £1.25 billion
• Profit before tax up 3.7% to £33.2 million (2003: £32.0 million)
• Earnings per share up 6.8% to 12.6p (2003: 11.8p)
• Interim dividend increased to 2.3p per share (2003: 2.0p)
• Strong operating cashflow and balance sheet with net cash of £62.4
million
Operational Highlights:
• UK Managed Services revenue growth of 18.7% (2003: 12.3%)
• Encouraging pipeline of Managed Services opportunities
• Further product price decline, though not as severe as 2003 as a whole
• Continuing programme of operational improvements in Germany and France
Ron Sandler, Chairman of Computacenter plc, commented:
'Computacenter continued to make steady progress in the first half of 2004. Our
Managed Services revenues in the UK grew by 18.7% in the period, and we secured
a number of significant new contracts.
'The outlook for the full year remains in line with market expectations. Looking
further ahead, the core UK franchise remains healthy, with continued growth
prospects in Managed Services. We are working hard to deliver the turnaround of
our European operations. With a strong balance sheet and a cash generative
business, we have confidence in our future prospects.'
For further information, please contact:
Computacenter plc.
Mike Norris, Chief Executive 01707 631 601
Tessa Freeman, Investor Relations 01707 631 514
www.computacenter.com
Tulchan Communications 020 7353 4200
Julie Foster/ Tim Lynch
www.tulchangroup.com
High resolution images are available for the media to view and download free of
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Chairman's Statement
Computacenter continued to make steady progress in the first half of 2004.
A core part of our strategy in recent years has been to develop and grow our
higher margin services businesses, with a particular emphasis on contracted
desktop Managed Services. This continues to progress well. Our Managed Services
revenues in the UK grew by 18.7% in the period, and we secured a number of
significant new contracts.
We began to see modest signs of recovery in corporate IT capital expenditure,
particularly in the UK. However, continued product price erosion, driven by
intense competition between vendors has counteracted the impact of higher volume
sales, and kept product margins under pressure.
Against this background, I am pleased with overall Group performance. In the
first half of 2004, Computacenter delivered increased profit before tax of £33.2
million (2003: £32.0 million) on unchanged revenues of £1.25 billion (2003:
£1.25 billion). Earnings per share for the period grew 6.8% to 12.6p (2003:
11.8p). The balance sheet remains strong, with £10.6 million of cash generated
during the period, and net cash of £62.4 million at the period end.
Reflecting our policy of seeking to keep the interim dividend at a level equal
to one-third of the preceding year's total dividend, Computacenter has approved
an interim dividend of 2.3p per share (2003: 2.0p) on 15 October, 2004 to
shareholders on the register as at 17 September, 2004.
We are continuing to take steps to reduce the cost base and improve the
efficiency of our core Technology Sourcing activities. We are also leveraging
our longstanding investment in logistics and warehousing by successfully
extending our reach to the small and medium-size business sector, providing a
sales model tailored for organisations of less than 2,000 employees.
CC CompuNet, our German subsidiary acquired in early 2003, saw operating profit
decline to £2.5 million (2003: £3.2 million). This is attributable to market
conditions. The programme of integrating CC CompuNet into the Group has
continued well and we have made further investments in financial systems and
logistics technology to ensure a basis for future profit growth.
The financial performance of Computacenter France remains a challenge, with an
operating loss of £1.5 million (2003 loss: £1.7 million) in the period. Costs
have been reduced, management changes have been made, and we continue to devote
considerable time and attention to improving the performance of the business.
Much remains to be done, but I am confident that these measures will produce
positive results.
The outlook for the full year remains in line with market expectations. Looking
further ahead, the core UK franchise remains healthy, with continued growth
prospects in Managed Services. We are working hard to deliver the turnaround of
our European operations. With a strong balance sheet and a cash generative
business, we have confidence in our future prospects.
As ever, it is the staff of Computacenter who are responsible for the continuing
success of the Group and to whom I should like to express my appreciation for
all their hard work and commitment.
Review of Operations
UK
Computacenter's focus on providing a range of infrastructure services to
complement its customers' in-house IT capabilities continued to be well-received
by the market, with H1 2004 UK operating profit growing by 2.4%, from £31.4
million to £32.2 million.
Market conditions remained challenging. We saw an increase in IT expenditure
from financial services organisations, although this only served to offset a
decline in central government department spending. The principal feature of the
market in H1 was the continuation of intense price competition in our Technology
Sourcing business, driven by the increasing commoditisation of computer
products. We are seeking to address this long-term trend and protect our margins
through the further streamlining of our sales process, improving efficiency and
reducing costs.
Our profit growth in the period owes much to the continued success of our
Managed Services business, which has grown steadily in recent years irrespective
of general market conditions. Our Managed Services revenues increased by 18.7%
in H1 2004, compared with overall growth of 10.9% in 2003. Managed Services
successes included the award of a significant contract with a leading investment
bank. This contract is valued at £15 million over three years and covers 4,500
users in the UK and a further 1,000 across Europe. Computacenter will be
responsible for a range of services including request management, the provision
of on-site helpdesks, and desktop and server maintenance. We were also awarded a
Managed Services contract by Henderson Global Investors, a leading international
investment management company, for desktop and server maintenance covering
approximately 1,000 users.
We were successful in winning a number of significant extensions to existing
Managed Services contracts. These include BAA, where we were awarded additional
business worth £1.2 million per year on our current five-year contract. Under
the terms of the contract, which has now been extended to 2010, we will provide
an increased on-site service, including second-line user support.
We have an encouraging pipeline of Managed Services opportunities for the
remainder of the year, which bodes well for sustained contracted revenue growth
in 2004 and beyond.
We saw a weakening of demand for Infrastructure Integration projects. However we
are currently in the discovery and planning phases for a number of large
integration projects and there are signs that the continuing product price
decline is helping to stimulate demand for these services. Major Infrastructure
Integration wins in the first half of the year include the UK Government's
Prescription Pricing Authority, for which we deployed a consolidated enterprise
storage, server and support solution.
Due to intense competition, the market experienced continuing price erosion,
although this was not as severe as for 2003 as a whole. As a result, overall
product revenues declined by 1.2%. However, we delivered a record number of
servers in H1 2004, with volumes increasing by over 50% on H1 2003, as
organisations sought to establish sound IT infrastructures for Microsoft XP
deployments. Significant Technology Sourcing successes included a contract with
Scottish Power to supply enterprise technology worth approximately £7 million
over three years.
Revenues of CCD, our trade distribution division, declined by 5.1%, due mainly
to rebates now being claimed by customers through CCD rather than direct to
vendors. However this has had no impact on CCD profitability.
RDC, our re-cycling and re-marketing arm, recorded its best ever half-year
profit performance. Following on from RDC's success, we have invested in new
premises and internal IT infrastructure, to help consolidate its position as a
leading UK provider of end-of-life IT asset management.
Germany
CC CompuNet operating profit declined to £2.5 million (2003: £3.2 million) on
revenues that were 1.3% lower than in H1 2003. Even allowing for the continuing
weakness of the German market, we were disappointed not to see the successful
integration of the business deliver further revenue growth in the first half.
However we are broadly satisfied with our progress in Germany and continue to
invest in initiatives, such as enhanced financial management systems and
logistics technology, designed to establish a basis for future profit growth.
Consistent with our approach of seeking to share senior management expertise
across the Group, we appointed Colin Brown as CEO of CC CompuNet during the
period. Colin previously ran the highly successful UK Government business.
Significant recent successes in Germany include the renewal of our Managed
Services contract with BMW Group for three years. We also won a two-year
extension on our running contract with BMW Group for Helpdesk and Desktop
Managed Services, which has resulted in significant service improvements and
cost savings for the client.
In H2 2004, CC CompuNet will be renamed Computacenter.
France
Our French business saw revenue decline of less than 1% compared to 2003 and
operating losses, excluding the release of positive goodwill, declined to £2.0
million (2003: £3.8 million). Including positive goodwill, the loss decreased to
£1.5 million (2003: £1.7 million).
Whilst the profitability of our French operation remains unsatisfactory, we have
succeeded in reducing operating costs and the measures we have put in place to
restore Computacenter France to profitability are beginning to take effect. As
part of a major French transformation project, we are focusing on our three core
French businesses of product logistics, implementation and maintenance. In these
areas we are seeking to improve service levels and delivery times, developing
our capability for large project roll-outs and investing in training to ensure
we have the right mix of skills to support future growth. Many of these
initiatives employ best practices that have already proved successful in the UK,
and UK management is increasingly involved in their implementation.
We continue to review our cost base and are putting in place improved mechanisms
for business reporting. We are also in the process of introducing customer
satisfaction measurement, already in place for sales functions, across the
business. In general, we are seeking to introduce a more customer-focused
culture, in which employees are more directly accountable for performance.
However, it is apparent that this is a long-term project with no quick fixes,
and we do not expect a return to profit this year.
Computacenter France continued to win significant new business. This included a
Managed Services contract with Aventis Pasteur, covering 4,000 users in France
and 700 worldwide, Infrastructure Integration consultancy for the French
government's Agence Centrale des Organismes de Securite Sociale, and a major
laptop and server roll-out for Renault Europe Automobiles.
Other businesses
Our Austrian business showed improved performance on H2 2003, securing some
important new business. This included an extension of its existing services
management contract with BAWAG-PSK, a leading Austrian bank, to cover the
roll-out and ongoing support of 4,500 desktop PCs. We also won a contract with
Kremsmuller, Austria's leading supplier of engineering and contracting services,
for the migration of its entire infrastructure to a common Microsoft platform.
We were pleased with the performance of our Belgium and Luxembourg (BeLux)
operation, which became profitable in the first half of the year. Operating
profits grew to £68,000 on the back of strong revenue growth of 55.4%. Our
success was in part due to our strengthening ability to work together across the
Group to win multi-national business out of BeLux. For example, close
co-operation between the BeLux and UK operations was instrumental in securing a
major Technology Sourcing contract with BT Global Services.
Business development
The Group continues to invest in systems and processes to support business
growth. The market for infrastructure services continues to be challenging, but
our investment in Managed Services is driving the business forward.
The next version of our integrated Services Management Tool Suite (SMTS v3.0),
which we use to track and manage customer support requests, will begin to be
deployed with UK Managed Services customers next year and will ultimately be
made available across the Group. SMTSv3.0 will significantly enhance our Managed
Services offering, improving our ability to audit and manage our customers'
technology assets on their behalf.
In our Technology Sourcing business we are making good progress in extending our
market coverage to the small and medium-size business sector, using a
'light-touch' sales model for organisations of less than 2,000 employees. We
have also embarked upon a major upgrade of our e-commerce capability that will
make our product sales far more web-enabled.
Overall, I am satisfied with Group performance in the first half. We will
continue to take advantage of the many opportunities we see in the market whilst
maintaining a rigorous control over our cost base.
Group profit and loss account
For the six months ended 30 June 2004
Restated Restated
Unaudited unaudited audited
six months six months year
ended ended ended
30 June 2004 30 June 2003 31 Dec 2003
£'000 £'000 £'000
Turnover: Group and share
of joint venture's turnover 1,255,436 1,255,599 2,482,713
Less: share of joint
venture's turnover (518) (937) (1,418)
Continuing operations:
Ongoing 1,254,918 911,291 1,797,133
Acquisitions - 343,371 684,162
Group turnover 1,254,918 1,254,662 2,481,295
Cost of sales (1,083,683) (1,076,903) (2,136,647)
---------- ---------- ---------
Gross profit 171,235 177,759 344,648
Other operating expenses
(net) (138,200) (145,308) (278,710)
---------- ---------- ---------
Operating profit
Continuing operations:
Ongoing 33,035 29,530 58,712
Acquisitions - 2,921 7,226
---------- ---------- ---------
Group operating profit 33,035 32,451 65,938
Share of operating loss in
joint venture (205) (69) (333)
Share of operating profit
in associate 135 163 510
---------- ---------- ---------
Total operating profit:
Group and share of
associate and joint venture 32,965 32,545 66,115
Interest receivable and
similar income 1,996 1,569 3,249
Interest payable and
similar charges (1,743) (2,094) (4,203)
---------- ---------- ---------
Profit on ordinary
activities before taxation 33,218 32,020 65,161
Tax on profit on ordinary
activities (9,850) (10,377) (18,902)
---------- ---------- ---------
Profit on ordinary
activities after taxation 23,368 21,643 46,259
Minority interests 30 20 45
---------- ---------- ---------
Profit attributable to
members of the parent
company 23,398 21,663 46,304
Dividends - ordinary
dividends on equity shares (4,316) (3,775) (13,011)
---------- ---------- ---------
Retained profit for the
period 19,082 17,888 33,293
========== ========== =========
Earnings per share
- Basic 12.6p 11.8p 25.0p
- Diluted 12.3p 11.6p 24.6p
Dividends per ordinary
share 2.3p 2.0p 7.0p
Group statement of total recognised gains and losses
For the six months ended 30 June 2004
Unaudited Unaudited Audited
six months six months Year
ended ended ended
30 June 2004 30 June 2003 31 Dec 2003
£'000 £'000 £'000
Profit for the financial period
excluding share of joint venture
and associate 23,406 21,581 46,231
Share of joint venture's loss for
the period (143) (48) (233)
Share of associate's profit for
the period 135 130 306
---------- ---------- ---------
Profit attributable to members of
the parent company for the
financial period 23,398 21,663 46,304
Exchange differences on
retranslation of net assets of
associated and subsidiary
undertakings (1,945) 1,271 4,159
---------- ---------- ---------
Total recognised gains for the
period 21,453 22,934 50,463
========== ========== =========
Group balance sheet
At 30 June 2004
Restated
Unaudited unaudited Audited
six months six months Year
ended ended ended
30 June 2004 30 June 2003 31 Dec 2003
£'000 £'000 £'000
Fixed assets
Intangible assets
Goodwill 4,646 4,899 4,755
Negative goodwill - (2,663) (532)
---------- ---------- ---------
4,646 2,236 4,223
Tangible assets 94,925 106,237 100,549
Investments 11,146 10,312 11,036
---------- ---------- ---------
110,717 118,785 115,808
---------- ---------- ---------
Current assets
Stocks 121,005 117,616 134,133
Debtors : gross 485,729 422,652 520,701
Less non returnable proceeds (55,643) - (78,390)
---------- ---------- ---------
Debtors 430,086 422,652 442,311
Cash at bank and in hand 101,032 65,834 96,997
---------- ---------- ---------
652,123 606,102 673,441
Creditors: amounts falling due
within one year (433,614) (429,299) (466,816)
---------- ---------- ---------
Net current assets 218,509 176,803 206,625
---------- ---------- ---------
Total assets less current
liabilities 329,226 295,588 322,433
Creditors: amounts falling due
after more than one year (3,547) (326) (13,923)
Provision for joint venture
deficit
Share of gross assets 272 725 385
Share of gross liabilities (7,702) (7,685) (7,609)
---------- ---------- ---------
(7,430) (6,960) (7,224)
Provision for liabilities and
charges (17,962) (22,190) (18,403)
---------- ---------- ---------
Total assets less liabilities 300,287 266,112 282,883
========== ========== =========
Capital and reserves
Called up share capital 9,447 9,400 9,441
Share premium account 71,778 69,781 71,486
Capital redemption reserve 100 100 100
Investment in own shares (2,503) (2,503) (2,503)
Profit and loss account 221,382 189,215 204,244
---------- ---------- ---------
Shareholders' funds - equity 300,204 265,993 282,768
Minority interests - equity 83 119 115
---------- ---------- ---------
300,287 266,112 282,883
========== ========== =========
Group statement of cash flows
For the six months ended 30 June 2004
Unaudited Unaudited Audited
six months six months Year
ended ended ended
30 June 2004 30 June 2003 31 Dec 2003
£'000 £'000 £'000
Cash inflow from operating
activities 31,529 10,553 53,521
Returns on investments and
servicing of finance (428) (608) (954)
Taxation
Corporation tax paid (6,365) (10,253) (22,456)
Capital expenditure and financial
investment (5,122) (10,866) (14,562)
Acquisitions and disposals - (37,821) (37,303)
Equity dividends paid (9,305) (10,731) (14,437)
---------- ---------- ---------
Cash inflow/(outflow) before
financing 10,309 (59,726) (36,191)
Financing
Issue of shares 298 940 2,686
Net repayment of capital element
of finance leases - (240) (479)
---------- ---------- ---------
Increase/(decrease) in cash in the
period 10,607 (59,026) (33,984)
========== ========== =========
Reconciliation of net cash flow to movement in net funds
For the six months ended 30 June 2004
Unaudited Unaudited Audited
six months six months Year
ended ended ended
30 June 2004 30 June 2003 31 Dec 2003
£'000 £'000 £'000
Net funds at 1 January 2004 49,925 83,430 83,430
Increase/(decrease) in cash in the
year 10,607 (58,786) (33,984)
Cash outflow from repayment of
debt and lease finance - (240) 479
---------- ---------- ---------
Change in net cash resulting from
net funds 10,607 (59,026) (33,505)
Exchange movement 1,896 - -
---------- ---------- ---------
Net funds at 30 June 2004 62,427 24,404 49,925
========== ========== =========
Analysis of changes in net funds
At 1 January Cash flows in Exchange At 30 June
2004 year movement 2004
£'000 £'000 £'000 £'000
Cash at bank and in
hand 96,997 4,237 (202) 101,032
Bank overdrafts (46,535) 6,370 2,098 (38,067)
---------- ---------- --------- ---------
50,462 10,607 1,896 62,965
Finance leases (211) - - (211)
Debt due after one
year (326) - - (326)
---------- ---------- --------- ---------
Total 49,925 10,607 1,896 62,427
========== ========== ========= =========
Notes to the accounts
1 Accounting policies
Basis of preparation
The unaudited interim financial information has been prepared on the basis of
the accounting policies set out in the Group's statutory accounts for the year
ended 31 December 2003. The taxation charge is calculated by applying the
Directors' best estimate of the annual tax rate to the profit for the period.
Other expenses are accrued in accordance with the same principles used in the
preparation of the annual accounts.
The format of the Group Profit and Loss Account has been changed to Format 1 of
schedule 4 of the Companies Act 1985 for the current period and all subsequent
periods. Operating costs, as reported in prior years under Format 2, have been
split between cost of sales and other operating expenses (net). It is the
Directors' opinion that a change in the format is appropriate to provide
additional disclosure of gross profit and that the allocation between cost of
sales and other operating expenses (net) is sufficiently consistent across the
Group.
2 Turnover and segmental analysis
The Group operates in one principal activity, that of the provision of
information technology and related services. Turnover represents the amounts
derived from the provision of goods and services which fall within the Group's
ordinary activities, stated net of VAT.
An analysis of turnover, gross profit and operating profit by origin is given
below:
Unaudited Unaudited Audited
six months six months Year
ended ended ended
30 June 2004 30 June 2003 31 Dec 2003
£'000 £'000 £'000
Turnover by Origin
UK 758,425 755,785 1,455,296
Germany 311,937 316,008 635,150
France 147,065 148,097 324,517
Austria 25,977 27,362 49,012
Belgium & Luxembourg 11,514 7,410 17,320
---------- ---------- ---------
Total 1,254,918 1,254,662 2,481,295
========== ========== =========
Turnover by destination is not materially different to turnover by origin and
has, therefore, not been disclosed.
2 Turnover and segmental analysis (continued)
Restated Restated
Unaudited unaudited audited
six months six months year
ended ended ended
30 June 2004 30 June 2003 31 Dec 2003
£'000 £'000 £'000
Gross Profit
UK 107,904 106,135 201,573
Germany 42,440 48,784 95,695
France 16,583 18,648 39,793
Austria 3,115 3,319 5,663
Belgium & Luxembourg 1,193 873 1,924
----------- --------- ---------
Total 171,235 177,759 344,648
=========== ========= =========
The gross profit for 2003 has been restated to account for distribution costs
within other operating expenses, as prescribed in Format 1 of schedule 4 of the
Companies Act 1985. Previously these amounts were included in the calculation of
gross profit, as described in note1.
Operating profit / (loss)
UK 32,185 31,434 61,829
Germany 2,537 3,228 8,728
France (1,473) (1,689) (2,727)
Austria (282) (308) (1,502)
Belgium & Luxembourg 68 (214) (390)
----------- --------- ---------
Total group excluding
associate & joint venture
undertakings 33,035 32,451 65,938
Share of operating result
of associate and joint
venture (70) 94 177
----------- --------- ---------
Total operating profit 32,965 32,545 66,115
=========== ========= =========
3 Cost of sales and operating expenses
Restated
Unaudited Unaudited Audited
six months six months Year
ended ended ended
30 June 2004 30 June 2003 31 Dec 2003
£'000 £'000 £'000
Cost of sales 1,083,683 1,076,903 2,136,647
----------- --------- ---------
Distribution costs 9,953 11,616 22,606
Administrative costs 128,247 133,692 256,104
----------- --------- ---------
138,200 145,308 278,710
=========== ========= =========
4 Interest receivable and similar income
Unaudited Unaudited Audited
six months six months Year
ended ended ended
30 June 2004 30 June 2003 31 Dec 2003
£'000 £'000 £'000
Bank interest 1,787 1,284 2,773
Other interest receivable 209 285 476
---------- ---------- ---------
1,996 1,569 3,249
========== ========== =========
5 Interest payable and similar charges
Unaudited Unaudited Audited
six months six months Year
ended ended ended
30 June 2004 30 June 2003 31 Dec 2003
£'000 £'000 £'000
Bank loans and overdraft 706 704 3,448
Other loans 1,037 1,390 755
---------- ---------- ---------
1,743 2,094 4,203
========== ========== =========
6 Tax on profit on ordinary activities
The charge based on the profit for the period comprises:
Unaudited Unaudited Audited
six months six months Year
ended ended ended
30 June 2004 30 June 2003 31 Dec 2003
£'000 £'000 £'000
UK Corporation tax
- Current 10,550 10,083 17,612
- Prior (868) - (621)
- Deferred tax 229 - 1,991
Foreign tax - 315 20
---------- ---------- ---------
9,911 10,398 19,002
Share of joint venture's tax (61) (21) (100)
---------- ---------- ---------
9,850 10,377 18,902
========== ========== =========
7 Earnings per share
The calculation of earnings per ordinary share is based on profit attributable
to members of the holding Company of £23,398,000 (2003: £21,663,000) and on
186,032,000 (2003: 183,396,000) ordinary shares, being the weighted average
number of ordinary shares in issue during the period after excluding the shares
owned by the Computacenter Employee Share Trust, Computacenter Trustees Limited
and the Computacenter Quest.
The diluted earnings per share is based on the same earnings figure of
£23,398,000 (2003: £21,663,000) and on 189,762,000 (2003: 186,743,000) ordinary
shares, calculated as the basic average number of ordinary shares, plus
3,730,000 (2003: 3,347,000) dilutive share options.
8 Investments
Update on Acquisitions - Germany and Austria
On 2 January 2003, the Group acquired the trade and assets of GE CompuNet in
Germany and GECITS in Austria for an initial consideration of £38,134,000.
There has been no change in circumstances that has resulted in a change to the
Board's view of the provisional fair value to Group of the assets and
consideration.
Because the audited value of the net assets at completion was lower than
stipulated in the purchase agreement, Computacenter anticipates receiving a
repayment of £32,448,000 from GE Capital, the vendors, resulting in a net
consideration for the acquisition of £5,686,000. Elements of this repayment
calculation continue to be disputed by GE Capital and in accordance with the
purchase agreement, PricewaterhouseCoopers has been appointed, as an independent
expert, to settle the matter. The Board has reviewed the likely outcome and is
confident that this is properly reflected in the Group's accounts.
The assets of each of the acquired companies have been included in the Group's
balance sheet at their fair values at the date of acquisition. In the view of
the Board, there has been no change in circumstances to change the assessment of
provisional fair values reported in the 2003 Annual Report.
Further consideration may be payable to the vendor, contingent on the result of
the acquired businesses in 2004. No provision has been made for further
payments, based on the actual performance in 2003 and the likely performance for
2004.
Update on contingent liability
On 15 October 2003 the vendors claimed that the Group had breached a provision
of the German purchase agreement concerning an adjustment relating to tax
assets, and have issued a claim for €52,165,292 (£36,762,000), plus interest,
for upfront payment for the tax assets as opposed to payment as the assets are
utilised. The Group rejects this claim and legal proceedings are in progress
between the parties. On the basis of legal advice received, the Board continues
to be confident that this claim is without merit and will be defended
accordingly. No provision for this claim has been made in the Group's accounts.
9 Reconciliation of operating profit to operating cash flows
Unaudited Unaudited Audited
six months six months Year
ended ended ended
30 June 2004 30 June 2003 31 Dec 2003
£'000 £'000 £'000
Operating profit 33,035 32,545 65,938
Depreciation 9,488 12,008 22,665
Revaluation of listed
investment - - (292)
Amortisation of positive
goodwill 109 142 544
Impairment of positive
goodwill - - 46
Amortisation of negative
goodwill (532) (2,130) (4,261)
Loss on disposal of fixed
assets 503 (1,143) 914
Decrease/(increase) in
debtors 4,276 (28,938) (16,963)
Decrease/(increase) in
stocks 10,173 13,176 (4,908)
Decrease in creditors (25,841) (15,994) (8,432)
Currency and other
adjustments 318 887 (1,730)
---------- ---------- ---------
Net cash flow from operating
activities 31,529 10,553 53,521
========== ========== =========
10 Publication of non-statutory accounts
The financial information contained in the interim statement does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985. The
financial information for the full preceding year is based on the statutory
accounts for the financial year ended 31 December 2003. Those accounts, upon
which the auditors issued an unqualified opinion have been delivered to the
Registrar of Companies.
This information is provided by RNS
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