Interim Results
Acal PLC
29 November 2007
FOR RELEASE 7:00AM 29 NOVEMBER 2007
ACAL plc
(Leading pan-European, value-added technology based distributor
providing specialist design-in, sales and marketing services)
Unaudited Interim Results for the six months to 30 September 2007
2007 2006 Change
(restated**)
Revenue - ongoing activities*** £77.6m £79.0m - 1.8%
EBIT* - ongoing activities £2.8m £2.7m + 3.7%
Profit before tax
- ongoing activities £2.6m £2.4m + 8.3%
- including disposed
activities £4.3m £8.8m
Basic earnings per share
- ongoing activities 6.7p 5.4p + 24%
- including disposed
activities 10.9p 28.4p
Dividends per share - relating to
period 7.2p 7.2p -
(*EBIT - Earnings before interest, tax, the Group's share of profit of
associated companies and exceptional items stated after full allocation of
central costs)
(** The restatement of the prior year's figures arises from the reclassification
of the IT Solutions Business ("ITS") as discontinued, in the light of its
proposed sale, the inclusion of the medical instrumentation business under
Electronics following that reclassification and the reallocation of central
costs)
(***Disposed activities represent the sold AC&R business together with the IT
Solutions Business, the proposed sale of which was announced on 27 September
2007, and ongoing activities represent the remaining business of the Group)
• Sale of IT Solutions Business for £41 million
• Sales of ongoing activities 1.8% lower at £77.6 million, as a result of weaker
market conditions
• Improved profitability in the first half:
- EBIT of ongoing activities up 3.7% at £2.8 million
- Profit before taxation and exceptionals from ongoing activities up
8.3% at £2.6 million
- EPS of ongoing activities up 24% reflecting, in part, the purchase
of the minority interest in CPI in October 2006
• Interim dividend maintained at 7.2p
For further information:-
Acal plc
Tony Laughton Chief Executive 01483 544500
Jim Virdee Finance Director 01483 544500
Cubitt Consulting
Brian Coleman-Smith/James Verstringhe/Nicola Krafft 020 7367 5100
Notes to Editors:
1 The Acal Group is a leading European technology based distributor providing
specialist design-in, sales, marketing and other services at present
through three divisions: Electronics, Parts Services and IT Solutions. Its
value-added philosophy and geographic coverage enables Acal to provide
specialist knowledge and support to customers on a pan-European basis.
2 Design-in is the process by which Acal's sales engineers work with
customers and suppliers to procure components which meet the specific
technical and performance needs of the customers.
3 Acal has operating companies in the UK, Netherlands, Belgium, Germany,
France, Italy, South Africa, Spain and Scandinavia. Westech Electronics, an
associated company, is based in Singapore and covers the Far East region.
ACAL plc
(Leading pan-European, value-added technology based distributor
providing specialist design-in, sales and marketing services)
Unaudited Interim Results for the six months to 30 September 2007
Chairman's Statement
On 27 September 2007 we announced the proposed sale of our IT Solutions
Business, which comprises the IT Solutions Division excluding Vertec (our
medical instrumentation business) for a cash consideration of £41m. Further
details of the disposal were set out in the circular to shareholders dated 28
September 2007, a copy of which is available at www.acalplc.co.uk. Shareholders
approved the proposed sale at an Extraordinary General Meeting held on 19
October 2007 and we are awaiting merger control clearance prior to completion.
Accordingly, for the purposes of the interim results for the half year to 30
September 2007, the IT Solutions Business has been classified as discontinued.
The Group's ongoing activities have experienced weak market conditions
throughout the first half of the current financial year. Sales from ongoing
activities at £77.6m for the six months ended 30 September 2007 were 1.8% lower
than the first half last year. However, both EBIT at £2.8m (2006: £2.7m) and
profit before taxation and exceptionals at £2.6m (2006: £2.4m) were ahead of
last year, reflecting some improvement in gross margins and continuing tight
control over operating costs. Earnings per share from ongoing activities were up
24% at 6.7p for the half year reflecting the improved profitability as well as
the purchase of the minority interest in CPI in October 2006. Net debt at 30
September 2007 was £11.1m compared to £5.4m at 31 March 2007, the increase
primarily reflecting the reversal of the previously reported short-term working
capital benefits at 31 March 2007 as well as the payment of the final dividend
in respect of 2006/7. The Group made an annualised return on average capital
employed of 30% (2006: 28%) from its ongoing activities during the half year
ended 30 September 2007.
Results
The performance of Acal's ongoing divisions in each of the half years ended 30
September 2007 and 2006 and for the year ended 31 March 2007 is set out below.
Half year ended 30 September Year ended 31 March
2007 2006 (restated**) 2007 (restated**)
£m Sales EBIT* Sales EBIT* Sales EBIT*
Electronics 53.7 1.4 54.0 1.4 112.6 3.1
Parts Services 23.9 1.4 25.0 1.3 51.9 2.5
77.6 2.8 79.0 2.7 164.5 5.6
(EBIT* - Earnings before interest, tax, the Group's share of profit of
associated companies and exceptional items stated after full allocation of
central costs)
(** The restatement of the prior year's figures arises from the reclassification
of the IT Solutions Business ("ITS") as discontinued, in the light of its
proposed sale, the inclusion of the medical instrumentation business under
Electronics following that reclassification and the reallocation of central
costs)
(Disposed activities represent the sold AC&R business together with the IT
Solutions Business, the proposed sale of which was announced on 27 September
2007, and ongoing activities represent the remaining business of the Group)
Electronics
Industry statistics from the UK and Continental Europe indicate that the market
for electronic components has weakened during the first half of the current
financial year, particularly in the lower technology passive and
electromechanical arena. Our Electronics division has not been immune from these
market conditions. However, the growing success of our strategy of focusing on
higher technology semiconductor, power, RF and wireless components continues to
be of benefit in mitigating the effects of the market conditions.
Our "demand creation" approach to distribution means that there is inevitably a
time lag, which can vary from 9 to 24 months, between introduction of a new
product line and the generation of a revenue stream from that line. Therefore,
in the short term the financial benefits of our enhanced product portfolio are
unlikely to offset entirely the effects of the weak demand referred to above.
Profitability of the Electronics division in the first half has also been
affected by the costs arising from the major investment in people made in the
second half last year to support new product lines, particularly in Germany and
Italy, which are not yet generating significant revenue.
Vertec, our medical instrumentation business, has continued to grow with a
helpful first contribution from its South African operations which were
established at the end of last year.
Parts Services
As previously reported, 2006/7 was a difficult year for the Parts Services
division as a consequence of weaker demand, some price erosion and cutbacks on a
major contract. Although levels of activity in the first half of the current
year have been similar to the first half last year, the price erosion referred
to above has resulted in revenue 4% lower at £23.9m. The EBIT arising from this
division showed a slight improvement at £1.4m, as a result of lower operating
costs.
IT Solutions
The IT Solutions Business, which as explained above, is being sold, showed
year-on-year improvement in sales with Networks and Security products and AVAS
being particularly successful. Overall margins have continued to be relatively
stable.
Dividend
The Board has declared an interim dividend of 7.2p per share unchanged from last
year. This is to be paid on 25 January 2008 to shareholders on the register on 7
December 2007.
Strategy and Future
We expect the weak market conditions being experienced, both in the Electronics
and Parts Services divisions, to continue until at least the year end.
Consequently, at present we do not expect any year-on-year growth in the
business in the second half year.
Our "funnel" of new designs in Electronics is strong and our customer base is
expanding providing confidence, both in the effectiveness of our strategy and
our ability to succeed in the longer term.
In Parts Services we are winning some new business and we continue to extend our
offerings to the supply chain in the IT infrastructure maintenance industry.
There remain a number of good opportunities going forward, but they are proving
slow to convert into contracts.
With the sale of the IT Solutions Business, Acal's strategy is to concentrate
its management and other resources on the development and growth of its
Electronics and Parts Services divisions. Both have opportunities for growth in
the areas in which they are strong. Whilst Acal's strategy is primarily based on
organic growth by gaining market share, the Board continues to consider
selective acquisition opportunities in our core business.
R Moon
Chairman
29 November 2007
condensed consolidated income statement
(unaudited)
for the six months ended 30 September 2007
six months
notes six months ended year ended
ended 30 Sept 2006 31 Mar 2007
30 Sept 2007 restated* restated*
Continuing operations £m £m £m
Revenue 3 77.6 79.0 164.5
Cost of sales (54.5) (56.0) (116.7)
Gross profit 23.1 23.0 47.8
Selling and distribution costs (11.7) (11.2) (24.0)
Administrative expenses (8.6) (9.2) (18.4)
Other operating income - 0.1 0.6
Other operating expenses - (1.8) (1.8)
Operating profit 2.8 0.9 4.2
Analysed between:
Ongoing activities:
Operating profit before
exceptional items 3 2.8 2.7 5.6
Exceptional items - - 0.4
Disposed activities:
Exceptional items - (1.8) (1.8)
Share of post-tax profits from
associates 0.5 0.3 0.6
Finance costs (0.9) (0.9) (1.5)
Finance income 0.2 0.3 0.4
Profit before tax 2.6 0.6 3.7
Analysed between:
Ongoing activities:
Profit before exceptional items 2.6 2.4 5.1
Exceptional items - - 0.4
Disposed activities:
Exceptional items - (1.8) (1.8)
Taxation (0.8) (0.2) (1.2)
Analysed between:
Ongoing activities:
Taxation before exceptional items (0.8) (0.7) (1.6)
Exceptional items - - (0.1)
Disposed activities
Exceptional items - 0.5 0.5
Profit after taxation for the
period from continuing operations 1.8 0.4 2.5
Discontinued operations
Profit for the period from
discontinued operations 4 1.1 7.3 9.4
Profit for the period 2.9 7.7 11.9
Attributable to:
Equity holders of the parent 2.9 7.5 11.7
Minority interests - 0.2 0.2
2.9 7.7 11.9
Earnings per share 7
Continuing operations
Ongoing activities:
Basic - before exceptional items 6.7p 5.4p 12.7p
Basic - after exceptional items 6.7p 5.4p 13.8p
Diluted - before exceptional items 6.7p 5.4p 12.7p
Diluted - after exceptional items 6.7p 5.4p 13.8p
Including discontinued operations
Basic 10.9p 28.4p 44.4p
Diluted 10.9p 28.4p 44.4p
Dividends
Dividends per share declared in
respect of period 7.2p 7.2p 21.9p
Dividends per share paid in period 14.7p 14.4p 21.6p
Dividends paid in period £ 3.9m £3.8m £5.7m
* see note 2
condensed consolidated statement of recognised income and expense (unaudited)
for the six months ended 30 September 2007
six months six months Year
ended ended ended
30 Sept 2007 30 Sept 2006 31 Mar 2007
£m £m £m
Actuarial gain on defined benefit
pension scheme - - 0.9
Deferred tax relating to pension scheme - (0.1) (0.5)
Foreign currency translation differences 0.3 (0.6) (0.6)
Income and expense recognised
directly in equity 0.3 (0.7) (0.2)
Profit for the period 2.9 7.7 11.9
Total recognised income and
expense for the period 3.2 7.0 11.7
Attributable to:
Equity holders of the parent 3.2 6.8 11.5
Minority interests - 0.2 0.2
3.2 7.0 11.7
condensed consolidated balance sheet (unaudited)
at 30 September 2007
at 30 at 30 at 31 March
Sept 2007 Sept 2006 2007
£m £m £m
notes
Non-current assets
Property, plant and equipment 4.4 6.6 6.3
Goodwill 53.2 48.7 53.5
Intangible assets - software 3.5 4.5 3.9
Investments in associates 5.2 4.7 5.0
Other financial assets 0.3 0.3 0.3
Deferred tax assets 4.3 4.1 4.0
70.9 68.9 73.0
Current assets
Inventories 18.8 23.2 23.7
Trade and other receivables 28.2 49.4 58.8
Current tax assets 0.6 0.7 0.4
Cash and cash equivalents 7.4 10.6 11.9
55.0 83.9 94.8
Current liabilities
Trade and other payables (23.2) (48.1) (58.9)
Short-term borrowings (8.4) (7.1) (7.2)
Current tax liabilities (2.2) (2.3) (2.8)
Provisions (1.9) (1.8) (2.1)
(35.7) (59.3) (71.0)
Net current assets 19.3 24.6 23.8
Assets of discontinued 28.4 - -
operations classified as held
for sale 4
Non-current liabilities
Long-term borrowings (10.1) (6.2) (10.1)
Pension liability (6.8) (8.9) (7.4)
Deferred tax liabilities (1.5) (1.9) (1.6)
Provisions (1.8) (1.6) (1.9)
(20.2) (18.6) (21.0)
Liabilities of discontinued (23.2) - -
operations classified as held
for sale 4
Net assets 75.2 74.9 75.8
Equity
Share capital 9 1.3 1.3 1.3
Share premium account 9 38.0 38.0 38.0
Share scheme reserve 9 0.4 0.3 0.3
Other reserves 9 1.5 1.2 1.2
Retained earnings 9 34.0 32.2 35.0
Equity attributable to equity
holders of the parent 75.2 73.0 75.8
Minority interests 9 - 1.9 -
Total equity 9 75.2 74.9 75.8
condensed consolidated cash flow statement (unaudited)
for the six months ended 30 September 2007
six months ended six months year
30 Sept 2007 ended 30 ended
Sept 2006 31 Mar 2007
£m £m £m
Profit for the period 2.9 7.7 11.9
Taxation expense 1.4 1.0 2.9
Share of results from associates (0.5) (0.3) (0.6)
Net finance costs 0.9 0.7 1.3
Depreciation of property, plant and equipment 0.8 1.0 1.9
Amortisation of intangible assets - software 0.5 0.5 1.2
Change in provisions (0.3) 1.8 2.3
Gain on disposal of business - (5.9) (6.0)
Gain on disposal of property, plant and equipment - (0.1) -
Pension scheme funding (0.6) (0.4) (1.0)
Equity-settled share-based payment expense 0.1 0.1 0.1
Operating cash flows before changes in working capital 5.2 6.1 14.0
Decrease/(increase) in inventories 0.3 (1.9) (2.5)
Decrease/(increase) in trade and other receivables 9.4 7.4 (1.9)
(Decrease)/increase in trade and other payables (14.0) (9.2) 1.6
Increase in working capital (4.3) (3.7) (2.8)
Cash generated from operations 0.9 2.4 11.2
Interest paid (1.0) (0.9) (1.5)
Income taxes paid (1.7) (1.5) (3.4)
Net cash flow from operating activities (1.8) 0.0 6.3
Cash flows from investing activities
Acquisition of shares in subsidiaries - - (6.7)
Proceeds from sale of subsidiaries - 8.3 8.3
Net overdrafts disposed of with subsidiaries - 0.2 0.4
Purchases of property, plant and equipment (0.7) (1.1) (1.8)
Proceeds from sale of property, plant and equipment 0.5 0.2 0.2
Purchases of intangible assets - software (0.1) (0.2) (0.4)
Interest received 0.2 0.2 0.4
Dividends received from associates 0.2 0.2 0.2
Net cash flow from investing activities 0.1 7.8 0.6
Cash flows from financing activities
Repayments of borrowings - (11.0) (7.1)
Dividends paid to company's shareholders (3.9) (3.8) (5.7)
Dividends paid to minority interests - (0.1) (0.1)
Net cash flow from financing activities (3.9) (14.9) (12.9)
Net decrease in cash and cash equivalents (5.6) (7.1) (6.0)
4.8 10.8 10.8
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period (0.8) 3.7 4.8
Reconciliation to cash and cash equivalents in the
balance sheet
Cash and cash equivalents shown above (0.8) 3.7 4.8
Add back overdrafts 8.2 6.9 7.1
Cash and cash equivalents shown within current assets
in the balance sheet 7.4 10.6 11.9
notes to the interim results
for the six months ended 30 September 2007
1. Corporate information
Acal plc is a company incorporated and domiciled in England and Wales. The
Company's ordinary shares are traded on the London Stock Exchange. The condensed
interim financial statements consolidate the financial statements of Acal plc,
entities controlled by the Company (its subsidiaries) and include the Group's
share of the results of associates.
2. Basis of preparation and accounting policies
The condensed consolidated interim financial statements for the six months to 30
September 2007 have been prepared in accordance with the Disclosure and
Transparency Rules of the Financial Services Authority and IAS34 'Interim
Financial Reporting' as adopted by the European Union. They do not include all
the information and disclosures required in the annual financial statements, and
should be read in conjunction with the Group's annual financial statements for
the year to 31 March 2007, which were prepared in accordance with IFRS as
adopted by the European Union. The condensed consolidated interim financial
statements are unaudited and were approved by the Board of Directors for issue
on 29 November 2007.
The results for the year to 31 March 2007 are based on full audited accounts
prepared in accordance with IFRS as adopted by the European Union. These
accounts were filed with the Registrar of Companies and contain a report of the
auditors, which does not contain a statement under sections 237 (2) or (3) of
the Companies Act 1985 and is unqualified. The consolidated financial statements
of the Group for the year ended 31 March 2007 are available on request from the
Company's registered office or on its website.
Significant accounting policies
The accounting policies adopted are consistent with those followed in the
preparation of the Group's annual financial statements for the year ended 31
March 2007.
In the current financial year, the Group will adopt International Financial
Reporting Standard 7 'Financial Instruments: Disclosures' (IFRS7) for the first
time. As IFRS 7 is a disclosure standard, there is no impact of that change in
accounting policy on the half-yearly financial report. Full details of the
change will be disclosed in our annual report for the year ending 31 March 2008.
Restatement of prior year comparatives
Following the announced conditional sale of the IT Solutions division excluding
Vertec ("the IT Solutions Business") that business has been classified as
discontinued operations, and the comparatives for the six months to 30 September
2006 and the year to 31 March 2007 restated accordingly. The assets and
liabilities of the IT Solutions Business are presented as being held for sale in
the balance sheet as at 30 September 2007.
The sale remains conditional upon merger control clearance. Therefore, no profit
on disposal and no provision for the associated costs of disposal have been
recognised.
3. Segmental reporting
Segmental information is presented in respect of the Group's business segments,
which are the primary basis of segmental reporting. This format reflects the
Group's management and internal reporting structures. Inter segment revenue is
insignificant.
Six months to 30 September 2007
Total
Parts ongoing Disposed Total
Electronics Services activities activities operations
£m £m £m £m £m
Revenue 53.7 23.9 77.6 45.8 123.4
Segment result 1.4 1.4 2.8 1.9 4.7
Net finance costs (0.7) (0.2) (0.9)
Share of post-tax
profits from associates 0.5 0.5 - 0.5
Profit before taxation 2.6 1.7 4.3
Taxation (0.8) (0.6) (1.4)
Profit for the period 1.8 1.1 2.9
The figures for total operations in the table above may be analysed between
continuing and discontinued operations as follows:
Continuing Discontinued Total
operations operations operations
£m £m £m
Revenue 77.6 45.8 123.4
Segment result 2.8 1.9 4.7
Net finance costs (0.7) (0.2) (0.9)
Share of post-tax profits from
associates 0.5 - 0.5
Profit before taxation 2.6 1.7 4.3
Taxation (0.8) (0.6) (1.4)
Profit for the period 1.8 1.1 2.9
Six months to 30 September 2006
Parts Total Disposed Total
Services ongoing activities operations
Electronics activities
£m £m £m £m £m
Revenue 54.0 25.0 79.0 49.2 128.2
Segment result 1.4 1.3 2.7 2.3 5.0
Provision for retained
obligations - (1.8) (1.8)
Profit on disposal of
business - 6.0 6.0
Net finance costs (0.6) (0.1) (0.7)
Share of post-tax 0.3 0.3 - 0.3
profits from associates
Profit before taxation 2.4 6.4 8.8
Taxation (0.7) (0.4) (1.1)
Profit for the period 1.7 6.0 7.7
The figures for total operations in the table above may be analysed between
continuing and discontinued operations as follows:
Continuing Discontinued Total
operations operations operations
£m £m £m
Revenue 79.0 49.2 128.2
Segment result 2.7 2.3 5.0
Provision for retained
obligations (1.8) - (1.8)
Profit on disposal of business - 6.0 6.0
Net finance costs (0.6) (0.1) (0.7)
Share of post-tax profits from
associates 0.3 - 0.3
Profit before taxation 0.6 8.2 8.8
Taxation (0.2) (0.9) (1.1)
Profit for the period 0.4 7.3 7.7
The results for the six months to 30 September 2006 have been restated to
reflect the IT Solutions Business within discontinued operations (see note 4),
and the inclusion of the medical instrumentation business within Electronics.
Year to 31 March 2007
Total
Parts ongoing Disposed Total
Electronics Services activities activities operations
£m £m £m £m £m
Revenue 112.6 51.9 164.5 101.7 266.2
Segment result 3.1 2.5 5.6 5.3 10.9
Exceptional item -
recovery of impaired
receivable 0.4 - 0.4
Provision for
retained obligations - (1.8) (1.8)
Profit on disposal
of business - 6.0 6.0
Net finance costs (1.1) (0.2) (1.3)
Share of post-tax
profits from
associates 0.6 0.6 - 0.6
Profit before
taxation 5.5 9.3 14.8
Taxation (1.7) (1.2) (2.9)
Profit for the year 3.8 8.1 11.9
The figures for total operations in the table above may be analysed between
continuing and discontinued operations as follows:
Continuing Discontinued Total
operations operations operations
£m £m £m
Revenue 164.5 101.7 266.2
Segment result 5.6 5.3 10.9
Exceptional item -
recovery of impaired receivable 0.4 - 0.4
Provision for retained
obligations (1.8) - (1.8)
Profit on disposal of business - 6.0 6.0
Net finance costs (1.1) (0.2) (1.3)
Share of post-tax profits
from associates 0.6 - 0.6
Profit before taxation 3.7 11.1 14.8
Taxation (1.2) (1.7) (2.9)
Profit for the year 2.5 9.4 11.9
The results for the year to 31 March 2007 have been restated to reflect the IT
Solutions Business within discontinued operations (see note 4), and the
inclusion of the medical instrumentation business within Electronics.
4. Discontinued operations
On 27 September 2007, the Company announced that it had conditionally agreed to
sell its IT Solutions Business ("ITS") to Avnet, Inc. for a cash consideration
of £41 million. Completion of the sale is expected in December 2007. The results
of ITS have been presented under discontinued operations in the consolidated
income statement and its assets and liabilities classified as held for sale. The
comparative income statements have been restated to show ITS as a discontinued
operation.
The results of the discontinued operations for the comparative periods also
include the results of the Air Conditioning and Refrigeration ("AC&R") division
which was sold in July 2006.
Profits attributable to the discontinued operations were as follows:
Six months Six months to 30 Year to 31 March
to 30 September 2006 2007
September
2007
ITS ITS AC&R Total ITS AC&R Total
£m £m £m £m £m £m £m
Revenue 45.8 43.9 5.3 49.2 96.4 5.3 101.7
Expenses (43.9) (42.0) (4.9) (46.9) (91.5) (4.9) (96.4)
Profit before financing
and tax 1.9 1.9 0.4 2.3 4.9 0.4 5.3
Finance costs (net) (0.2) (0.1) - (0.1) (0.2) - (0.2)
Profit before tax 1.7 1.8 0.4 2.2 4.7 0.4 5.1
Income tax expense (0.6) (0.6) (0.2) (0.8) (1.4) (0.2) (1.6)
Profit for the period
from trading of
discontinued
operations 1.1 1.2 0.2 1.4 3.3 0.2 3.5
Profit on disposal
of business - - 5.9 5.9 - 5.9 5.9
Profit for the period
from discontinued
operations 1.1 1.2 6.1 7.3 3.3 6.1 9.4
As at 30 September 2007, the major classes of assets and liabilities of ITS
classified as held for sale were:
£m
Property, plant and equipment 1.4
Goodwill 0.4
Inventories 4.8
Trade and other receivables 21.8
Total assets 28.4
Trade and other payables (22.4)
Current tax liabilities (0.6)
Deferred tax liabilities (0.2)
Total liabilities (23.2)
The Group will incur costs, estimated to amount in aggregate to approximately
£3.5 million, to cover certain obligations of the IT Solutions business which
will be retained by the Group following the disposal. These obligations
represent costs relating to people, properties and the impairment of IT systems
which will be met in future periods.
5. Taxation
The effective tax rate on profit before tax of ongoing activities, excluding the
share of post-tax profits from associates, for the six months to 30 September
2007 is 38.9 % (2006: 38.7 %, year to 31 March 2007: 38.4 %).
The effective rates for the period have been calculated by applying the Group's
best estimates of the effective tax rate for the current year.
6. Dividends
The directors have declared an interim dividend of 7.2 pence per share (2006:
7.2 pence) payable on 25 January 2008 to shareholders on the register at 7
December 2007. In accordance with IAS 10, this dividend has not been reflected
in the interim results. The amount of this interim dividend is £1.9 million
(2006: £1.9 million).
7. Earnings per share
The following reflects the income and share data used in the basic and diluted
earnings per share computations:
six months six months Year
ended ended ended
30 Sept 30 Sept 31 Mar
2007 2006 2007
£m £m £m
Profit for the year from ongoing
activities attributable to equity
holders of the parent - before exceptionals 1.8 1.5 3.3
Exceptional items net of tax - ongoing activities - - 0.3
Profit for the year from ongoing activities
attributable to equity holders of the parent 1.8 1.5 3.6
Profit for the year from disposed
activities attributable to equity
holders of the parent - (1.3) (1.3)
Profit for the year from
continuing operations 1.8 0.2 2.3
Profit for the year from
discontinued operations
attributable to equity holders of
the parent 1.1 7.3 9.4
Profit for the year attributable
to equity holders of the parent 2.9 7.5 11.7
Weighted average number of shares for
basic earnings per share 26.4 26.4 26.4
Effect of dilution - share options - - -
Adjusted weighted average number of
shares for diluted earnings per share 26.4 26.4 26.4
At the period end there were 1.1 million ordinary share options in issue that
could potentially dilute earnings per share in the future but are not included
in the calculation at the year end because they are currently non-dilutive
(2006: 1.2 million, 31March 2007: 1.0 million).
8. Reconciliation of movement in net debt
six months six months year ended
ended 30 Sept ended 30 Sept 31 Mar
2007 2006 2007
£m £m £m
Net decrease in cash and cash
equivalents (5.6) (7.1) (6.0)
Cash outflow from decrease in debt and
lease financing - 11.0 7.1
Translation differences (0.1) (0.1) -
(Increase)/decrease in net debt (5.7) 3.8 1.1
Net debt at beginning of the period (5.4) (6.5) (6.5)
Net debt at end of the period (11.1) (2.7) (5.4)
9. Reserves
Attributable to equity holders of the
parent
Share Share
premium scheme
Share account reserve Retained Other Minority Total
capital earnings reserves Total interests equity
£m £m £m £m £m £m £m £m
At 1 April 2007 1.3 38.0 0.3 35.0 1.2 75.8 - 75.8
Total recognised
income and expense - - - 2.9 0.3 3.2 - 3.2
Share-based
payments - - 0.1 - - 0.1 - 0.1
Equity dividends - - - (3.9) - (3.9) - (3.9)
At 30 Sept 2007 1.3 38.0 0.4 34.0 1.5 75.2 - 75.2
Attributable to equity holders of the
parent
Share Share
premium scheme
Share account reserve Retained Other Minority Total
capital earnings reserves interests equity
Total
£m £m £m £m £m £m £m £m
At 1 April 2006 1.3 38.0 0.2 28.6 1.8 69.9 1.8 71.7
Total recognised
income and expense - - - 7.4 (0.6) 6.8 0.2 7.0
Share-based
payments - - 0.1 - - 0.1 - 0.1
Equity dividends - - - (3.8) - (3.8) - (3.8)
Dividends paid to
minority interests - - - - - - (0.1) (0.1)
At 30 Sept 2006 1.3 38.0 0.3 32.2 1.2 73.0 1.9 74.9
1.3 38.0 0.2 28.6 1.8 69.9 1.8 71.7
At 1 April 2006
Total recognised - - - 12.1 (0.6) 11.5 0.2 11.7
income and expense
Share-based
payments - - 0.1 - - 0.1 - 0.1
Equity dividends - - - (5.7) - (5.7) - (5.7)
Dividends paid to
minority interests - - - - - - (0.1) (0.1)
Acquisition of
minority interests - - - - - - (1.9) (1.9)
At 31 March 2007 1.3 38.0 0.3 35.0 1.2 75.8 - 75.8
10. Other reserves
Merger Currency
reserve Translation
reserve Total
£m £m £m
At 1 April 2007 0.8 0.4 1.2
Total recognised income and expense - 0.3 0.3
At 30 September 2007 0.8 0.7 1.5
At 1 April 2006 0.8 1.0 1.8
Total recognised income and expense - (0.6) (0.6)
At 30 September 2006 0.8 0.4 1.2
At 1 April 2006 0.8 1.0 1.8
Total recognised income and expense - (0.6) (0.6)
At 31 March 2007 0.8 0.4 1.2
11. Statement of Directors' Responsibilities
The directors confirm that this condensed set of financial statements has been
prepared in accordance with IAS 34 as adopted by the European Union, and that
the condensed consolidated interim financial statements include a fair review of
the information required by DTR 4.2.7 and DTR 4.2.8.
By order of the Board
R Moon
Chairman
29 November 2007
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