Interim Results
Hays PLC
5 March 2002
5th March 2002
Hays plc
INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2001
Financial Highlights:
Six months to 31 December (unaudited) 2001 2000
(restated)
Turnover from continuing operations £1,198.5m £1,172.9m
Operating profit* £122.8m £137.8m
Profit before tax* £115.1m £125.8m
Earnings per share** 4.65p 5.29p
Dividend per share 1.52p 1.32p
* Before goodwill amortisation, exceptional items and discontinued
operations.
** Before goodwill amortisation and exceptional items.
Business Highlights:
Personnel
_________
- Excellent result with £62 million operating profit, (only 12% lower than
the same period last year) in depressed market conditions.
- Continued investment in the organic development of our European specialist
recruitment network in France, Spain and Belgium.
- Landmark contract win with Liverpool and Victoria Assurance for outsourced
HR services.
- Haysworks (our HR portal) shows rapid growth and is now actively used by
60,000 jobseekers and clients each week.
- Highly attractive growth prospects in the medium-term.
Business Process Outsourcing
____________________________
- Strong top line growth with sales up by 16%.
- Five year contract to develop and operate a performance statistics and
management information system for the Department of Health.
- New web-enabled call centre at Chalons-sur-Saone, France, will accelerate
our development across Europe.
Mail and Express
________________
- To the door business mail delivery service launched in central London,
Manchester and Edinburgh covering the time critical premium mail market.
- Investment in our network reach and customer marketing to take advantage of
new opportunities in the deregulating UK mail market.
Logistics
_________
- Increased profits from our Continental European operations.
- New business wins with Carrefour, Scotts and Auchan and successful contract
renewals including Scottish Courage.
- Retail Crates business continues to grow strongly in the UK.
Bob Lawson, Chairman, commented:
'The Group has continued to make progress in developing and focussing its
businesses against the backcloth of tough market conditions. The reduction in
our earnings per share was as expected being driven principally by the
sensitivity to the economy of our Personnel business and by the weak
performance of our UK logistics activity. In recent months our Personnel
business has performed better than was predicted last Autumn but against
this, parts of our Commercial division are performing below expectation.
Our balance sheet remains strong with net debt £42 million lower than last
year and interest costs covered twelve times.
The first priority is to maintain and develop our existing customer
relationships and to continue our organic development. We are continuing to
invest in our businesses through the downturn and this investment will
position the Group to benefit when the economies of Europe begin to improve.'
Enquiries:
Bob Lawson Chairman + 44 (0)1483 302203
Hays plc
Neil McLachlan Group Finance Director + 44 (0)1483 302203
Hays plc
Jon Coles Brunswick + 44 (0)20 7404 5959
Conference call:
Bob Lawson, Neil McLachlan and Graham Williams of Hays plc will conduct a
conference call for analysts and institutional shareholders at 15:30 UK time
on 5 March 2002. The dial-in details are as follows:
UK/European dial-in number: +44 (0)20 8781 0562
USA dial-in number: 1 800 482 2239
Password: Hays
The call will be recorded and available for playback for 10 working days as
follows:
UK/European replay dial-in number: +44 (0)20 8288 4459
UK/European Freephone Number 0500 637 880
UK/European access code: 649162
USA dial-in number: 1 800 625 5288
USA access code: 1520916
The Instant Replay will be available until 19 March 2002.
Presentation on the web-site and delayed web-cast:
The presentation to analysts will be available to view on the Hays website
from 14:15 UK time on 5 March 2002 - www.hays-plc.com
The presentation will also be filmed and distributed by RAW Communications to
those who subscribe to that service.
CHAIRMAN'S STATEMENT
____________________
Introduction
In the six months to 31 December 2001 the Group has continued to make
progress in developing and focusing its businesses against the backcloth of
tough market conditions. Group sales were broadly similar to last year with
sales growth in Continental Logistics and BPO offset by reduced levels of
activity in our Personnel business, and turnover surrendered to Consignia
within Mail. Earnings per share before goodwill amortisation and exceptional
items decreased by 12% compared with the same period last year. This decline
was as expected being driven principally by the sensitivity to the economy of
Personnel and a weak performance in UK Logistics. In recent months our
Personnel business has performed better than was predicted last Autumn but
against this parts of our Commercial division are performing below
expectation.
Cash generation, a prime management focus in these poor economic conditions,
has been good and has further reinforced our strong balance sheet with net
debt £42 million lower than last year. Interest was covered 12 times before
goodwill amortisation.
Interim Dividend
The interim dividend is being increased by 15% to 1.52p and will be paid on
31 May 2002 to shareholders on the register on 26 April 2002. The dividend is
covered 2.6 times and reflects the Board's progressive dividend policy.
Personnel
Hays Personnel continues to demonstrate its resilience and ability to perform
in a difficult market. Market leadership, active management of costs and our
concentration on the temporary staff market has resulted in a 1% sales
increase and operating profit of £62.0 million, only 12% below the same
period last year with the decline largely attributable to our Australian and
City of London operations.
Inevitably at this stage of the cycle the proportion of lower margin
temporary placements has risen resulting in a decrease in the overall margin
to 12.2%. Cost management is demonstrated by the careful control of headcount
down 10.5% from a peak of 4,238 to the current level of 3,791.
Hays Montrose, our technical agency specialising in the construction
industry, continued to grow its profit year on year by over 10%.
Haysworks, (our HR Portal), is becoming an increasingly important channel to
market for job seekers and client advertisers. In the last three months
visitors actively using the site have risen to 60,000 per week, job searches
have increased by over 50%, and on line applications have increased by over
60%. The integration of Haysworks into our business has been an outstanding
success, giving us competitive advantage.
Despite the market conditions we are continuing to invest in the organic
development of our European specialist recruitment network with new branches
opened in France, Spain and Belgium. We are also investing heavily in the
provision of integrated HR Solutions and were pleased to announce a landmark
contract win in this area with Liverpool & Victoria Assurance in November to
provide a complete range of outsourced HR services, in addition to winning a
number of comprehensive recruitment management contracts. The medium term
growth prospects for our Personnel business remain highly attractive.
Commercial
Sales were up 8% but profit decreased by 6%.
a) Business Process Outsourcing
Our Business Process Outsourcing offer has been simplified during the year
and the division has continued to generate strong top line growth with sales
up by 16%. Profits are being held back by reduced systems project activity
and by slower than expected installation of NMIS (our Business Intelligence
Solution) with Police Forces across England. Our core Business Intelligence
software has been developed for use in a number of sectors and we have
recently signed a five-year contract to develop and operate a similar system
to provide hospital performance statistics and management information for the
Department of Health. The development of Hays Business Process Outsourcing
across Europe is seen as a critical area to drive future profit growth. We
are investing in a new web-enabled call centre facility in Chalons-sur-Saone,
France, which will provide the platform to accelerate our development in the
coming months.
We announced last September that we would be investing in the modernisation
of our Information Management and Document Storage business (Hays IMS) to
substantially improve our service to customers. Whilst work to date has been
cash positive the disruption to the business has been greater than
anticipated and will continue to have a significant impact on sales growth as
well as profits. The business will emerge stronger and fitter on completion
of the project.
b) Mail & Express
Volumes in our core DX business grew by circa 4% on a like for like basis,
but profits remain broadly similar to last year after surrendering the final
elements of our Mailine business to Consignia and costs incurred as we invest
to take advantage of future deregulation.
The potential for this division is exciting. Postcomm, the independent
regulator charged with liberalising the mail market, has shown strong
commitment to introducing effective competition. In September Postcomm
granted three interim licences to Hays to introduce innovative new services
covering the time critical premium mail market with a business to business
focus. These new services are being introduced progressively and 'to the
door' delivery services have been launched by Hays in Central London,
Edinburgh and Manchester. We already handle more mail volume than any other
private mail operator and have state of the art sortation equipment
compatible with Consignia. We are now investing in our network reach and
customer marketing to take advantage of the new market opportunities.
Logistics
Sales were up 1% and operating profit was 16% lower. This was as expected in
a difficult market, particularly in the U.K. Year on year profits in our
Continental European operation improved compared with the same period last
year, although the division's total operating profit was held back by a
decline in our UK network businesses and investment in our infrastructure to
deliver Fourth Party Solutions (4PS).
Our contract base remains strong and has been supported by renewals with
Scottish Courage and new wins with Carrefour, Scotts and Auchan amongst
others. We continue to win new business at good margins primarily due to our
ability to add value to our customers via the use of our in-house IT and
consulting expertise. In the first six months of this year we have
implemented our Logistar supply chain management software for Auchan and
Nestle (e-tracking). Our retail crates business continues to grow strongly in
the UK with two new wash sites opened for Sainsbury to support the existing
crate management contract. Critical for our crate development in the US is
the spring growing season and we expect to receive significant contracts
shortly to launch the US operations.
Management
The search for a new Chief Executive continues to be the priority. The
Nomination Committee is not prepared to compromise on quality and high
calibre people are proving very difficult to prise away from their current
companies in this climate. Meanwhile our Executive team has responded to the
challenge to develop the Group and is providing outstanding support for my
dual role as Chairman and acting CEO.
Prospects
The economic outlook for the major European economies continues to be a
concern and it is difficult to judge when an upturn will occur. Against this
background, attempting to create temporary profit improvements by cutting the
essential infrastructure of the Group or failing to invest in the development
of the Group is not, we believe, in shareholders' interests. In all of our
businesses the first priority is to maintain and develop existing customer
relationships and to continue our organic development.
We believe that our Personnel business will continue to demonstrate its
resilience in a difficult market. The number of temporary workers restarting
contracts in January was similar to the level working in the final quarter of
last year, but permanent fees remain sensitive to the current economic
weakness. Early indications for January and February suggest that our
temporary fees have continued to grow by circa 3% compared to the same period
last year, whilst permanent placements are down circa 21% on a like for like
basis. In total the Personnel division's turnover is similar to the same
periods of last year. The broad coverage and market leadership of Personnel,
combined with its continuing geographic development, positions the division
to continue its out-performance.
Our Commercial and Logistics divisions are less affected by changes in
business confidence or the economic environment. However, the logistics
market remains competitive and we do not see this improving in the second
half whilst Commercial's profits will continue to be impacted by the cost of
the reorganisation of our Information Management business.
Cash generation remains a central focus providing us with the financial
strength to continue investment through the downturn. This investment will
position the Group to benefit when the economies of Europe begin to improve.
Bob Lawson, Chairman
5 March 2002
INDEPENDENT REVIEW REPORT TO HAYS PLC
INTRODUCTION
We have been instructed by the Company to review the financial information
for the six months ended 31 December 2001 which comprises a consolidated
profit and loss account, a consolidated summarised balance sheet, a
consolidated summarised cash flow statement and related notes 1 to 12. We
have read the other information contained in the interim report and
considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.
DIRECTORS' RESPONSIBILITIES
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the Directors. The Directors
are responsible for preparing the interim report in accordance with the
Listing Rules of the Financial Services Authority which require that the
accounting policies and presentation applied to the interim figures should be
consistent with those applied in preparing the preceding annual accounts
except where any changes, and the reasons for them, are disclosed.
REVIEW WORK PERFORMED
We conducted our review in accordance with guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board for use in the United Kingdom.
A review consists principally of making enquiries of group management and
applying analytical procedures to the financial information and underlying
financial data and based thereon, assessing whether the accounting policies
and presentation have been consistently applied unless otherwise disclosed. A
review excludes audit procedures such as tests of controls and verification
of assets, liabilities and transactions. It is substantially less in scope
than an audit performed in accordance with United Kingdom Auditing Standards
and therefore provides a lower level of assurance than an audit. Accordingly,
we do not express an audit opinion on the financial information.
REVIEW CONCLUSION
On the basis of our review we are not aware of any material modifications
that should be made to the financial information as presented for the six
months ended 31 December 2001.
Deloitte & Touche Hill House
Chartered Accountants 1 Little New Street
5 March 2002 London EC4A 3TR
RESULTS
For the half year ended 31 December 2001
(In £'s million) Half year to Half year to Year to
31 December 31 December 30 June
2001 2000 2001
(Unaudited) (Unaudited and (Restated)
restated)
Turnover
Continuing operations 1,198.5 1,172.9 2,453.3
Discontinued operations - 91.6 181.0
_____________ ____________ _________
1,198.5 1,264.5 2,634.3
Profit from operations
Continuing operations 122.8 137.8 288.4
Discontinued operations - 4.2 9.6
_____________ ____________ _________
122.8 142.0 298.0
Exceptional operating costs - - (22.5)
Goodwill amortisation (12.5) (9.0) (18.5)
_____________ ____________ _________
Operating profit 110.3 133.0 257.0
Share of operating profit of associated
company 2.7 - -
_____________ ____________ _________
113.0 133.0 257.0
Exceptional items 0.4 - (64.9)
Net interest payable (10.4) (12.0) (26.3)
_____________ ____________ _________
Profit on ordinary activities
before taxation 103.0 121.0 165.8
Tax on profit on ordinary activities (35.7) (39.9) (73.5)
_____________ ____________ _________
Profit on ordinary activities after
taxation 67.3 81.1 92.3
Equity minority interests (0.1) (0.1) (0.2)
_____________ ____________ _________
Profit for the period 67.2 81.0 92.1
Dividends (26.0) (22.2) (69.2)
_____________ ____________ _________
Transferred to reserves 41.2 58.8 22.9
============= ============ =========
Earnings per ordinary share before
exceptional items and goodwill
amortisation 4.65p 5.29p 11.01p
Basic earnings per share 3.94p 4.76p 5.41p
Diluted earnings per share 3.91p 4.71p 5.35p
Dividend per share 1.52p 1.32p 4.07p
Interest cover 12X 12X 11X
SUMMARISED BALANCE SHEET
As at 31 December 2001
(In £'s million) 31 December 31 December 30 June
2001 2000 2001
(Unaudited) (Unaudited and (Restated)
Restated)
Goodwill and intangible 275.5 316.5 286.7
fixed assets
Tangible fixed assets 503.7 512.4 555.2
Investments 102.5 56.2 54.3
Net current 28.7 9.6 (27.4)
assets/(liabilities)
Other creditors due after (7.9) (29.3) (25.6)
more than one year
Provisions for liabilities (75.5) (52.5) (60.0)
and charges
____________ ______________ _________
827.0 812.9 783.2
============ ============== =========
Called up share capital 17.3 17.3 17.3
Share premium account 367.5 362.4 365.5
Profit and loss account 119.8 67.8 78.7
____________ ______________ _________
Equity shareholders' 504.6 447.5 461.5
interests
Minority interests 0.9 1.5 0.8
____________ ______________ _________
505.5 449.0 462.3
Net debt 321.5 363.9 320.9
____________ ______________ _________
827.0 812.9 783.2
============ ============== =========
Net debt as a % of shareholders' 64% 81% 69%
and minority interests
SUMMARISED CASH FLOW STATEMENT
For the half year ended 31 December 2001
(In £'s million) Half year to Half year to Year to
31 December 31 December 30 June
2001 2000 2001
(Unaudited) (Unaudited)
Operating activities
Total operating profit 110.3 133.0 257.0
Depreciation and amortisation 43.7 40.0 84.0
Other operating activities 0.5 0.8 (8.1)
Increase in working capital (62.9) (80.3) (31.9)
____________ ____________ _______
Net cash inflow from operating activities 91.6 93.5 301.0
Returns on investment and servicing of (10.4) (12.7) (27.0)
finance
Tax paid (26.7) (27.1) (83.1)
Net capital expenditure (35.2) (41.7) (111.7)
____________ ____________ _______
Cash inflow before acquisitions and disposals 19.3 12.0 79.2
Net acquisitions and disposals 29.8 (34.3) (46.8)
Equity dividends paid (47.5) (40.7) (63.1)
____________ ____________ _______
Cash inflow / (outflow) before financing 1.6 (63.0) (30.7)
Financing (17.2) 69.8 68.4
____________ ____________ _______
(Decrease) / increase in cash (15.6) 6.8 37.7
============ ============ =======
Reconciliation of net cash flow
to movement in net debt
(Decrease)/increase in cash (15.6) 6.8 37.7
Cash flow from financing 19.7 (83.6) (77.8)
____________ ____________ _______
Change in net debt resulting from cash flows 4.1 (76.8) (40.1)
Borrowings acquired with subsidiaries - - 0.1
Loan notes issued - (10.6) (13.6)
Exchange adjustment and other (4.7) 0.5 9.7
____________ ____________ _______
Movement in net debt in the period (0.6) (86.9) (43.9)
Opening net debt (320.9) (277.0) (277.0)
____________ ____________ _______
Closing net debt (321.5) (363.9) (320.9)
============ ============ =======
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the half year ended 31 December 2001
(In £'s million) Half year to Half year to Year to
31 December 31 December 30 June
2001 2000 2001
(Unaudited) (Unaudited and (Restated)
restated)
Profit for the period 67.2 81.0 92.1
Currency translation
differences on foreign
currency net
investments (0.1) (0.2) (2.5)
____________ ______________ __________
67.1 80.8 89.6
Prior period
adjustment in respect
of FRS 19 (23.0) - -
____________ ______________ __________
Total recognised gains
and losses 44.1 80.8 89.6
============ ============== ==========
RECONCILIATION OF MOVEMENTS IN EQUITY SHAREHOLDERS' INTERESTS
For the half year ended 31 December 2001
Profit for the period 67.2 81.0 92.1
Dividends (26.0) (22.2) (69.2)
_________ ________ ______
41.2 58.8 22.9
Exchange differences on translation (0.1) (0.2) (2.5)
New share capital subscribed 2.0 3.2 6.3
Goodwill written back - - 49.1
_________ ________ ______
Net increase in shareholders' interests 43.1 61.8 75.8
Opening shareholders' interests as previously
reported 484.5 407.3 407.3
Prior period adjustment (23.0) (21.6) (21.6)
_________ ________ ______
Closing shareholders' interests as restated 504.6 447.5 461.5
========= ======== ======
The results, summarised balance sheet, statement of total recognised gains
and losses and movement in equity shareholders' interests for the periods
ended 31st December 2000 and 30th June 2001 have been restated as a result of
the adoption of FRS 19 'Deferred Tax'.
NOTES
1 STATEMENT UNDER S240 - PUBLICATION OF NON STATUTORY ACCOUNTS
The financial information contained in this interim statement does not
constitute statutory accounts as defined in section 240 of the Companies
Act1985. The financial information for the full preceding year is based on
the statutory accounts for the financial year ended 30th June 2001 as
restated following adoption of FRS 19. Those accounts, upon which the
auditors issued an unqualified opinion, have been delivered to the
Registrar of Companies.
2 BASIS OF PREPARATION OF INTERIM FINANCIAL INFORMATION
The 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 30 June 2001, except that the Group has now adopted FRS 19. Following
the adoption of FRS 19, the Group now provides for deferred tax in respect
of assets and liabilities arising from timing differences between the
recognition of gains and losses in the financial statements and their
recognition in a tax computation.
3 SEGMENTAL INFORMATION
Half year to Half year to Year to
(In £'s 31 December 2001 31 December 2000 30 June 2001
million)
Turnover Operating Turnover Operating Turnover Operating
Profit Profit Profit
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
BEFORE GOODWILL AMORTISATION AND EXCEPTIONAL OPERATING COSTS
BY BUSINESS SECTOR
__________________
Continuing Operations
Commercial 243.0 37.6 224.9 40.0 476.3 89.0
Personnel 506.9 62.0 502.3 70.1 1,084.0 146.0
Logistics 448.6 23.2 445.7 27.7 893.0 53.4
_______________________ _____________________ ___________________
1,198.5 122.8 1,172.9 137.8 2,453.3 288.4
Discontinued
Operations - - 91.6 4.2 181.0 9.6
_______________________ _____________________ ___________________
1,198.5 122.8 1,264.5 142.0 2,634.3 298.0
======================= ===================== ===================
BY GEOGRAPHIC AREA
Continuing Operations
United Kingdom 789.1 98.9 775.2 110.2 1,617.4 232.4
Other Europe 345.6 18.2 325.0 17.5 686.9 37.1
Rest of the 63.8 5.7 72.7 10.1 149.0 18.9
World
_______________________ _____________________ ___________________
1,198.5 122.8 1,172.9 137.8 2,453.3 288.4
Discontinued - - 91.6 4.2 181.0 9.6
Operations
_______________________ _____________________ ___________________
1,198.5 122.8 1,264.5 142.0 2,634.3 298.0
======================= ===================== ===================
AFTER GOODWILL AMORTISATION AND EXCEPTIONAL OPERATING COSTS
BY BUSINESS SECTOR
__________________
Continuing Operations
Commercial 243.0 31.4 224.9 36.6 476.3 67.4
Personnel 506.9 59.1 502.3 67.7 1,084.0 138.3
Logistics 448.6 19.8 445.7 24.7 893.0 42.1
_______________________ _____________________ ___________________
1,198.5 110.3 1,172.9 129.0 2,453.3 247.8
Discontinued - - 91.6 4.0 181.0 9.2
Operations
_______________________ _____________________ ___________________
1,198.5 110.3 1,264.5 133.0 2,634.3 257.0
======================= ===================== ===================
BY GEOGRAPHIC AREA
Continuing Operations
United Kingdom 789.1 90.4 775.2 104.2 1,617.4 203.2
Other Europe 345.6 14.2 325.0 14.7 686.9 25.7
Rest of the 63.8 5.7 72.7 10.1 149.0 18.9
World
_______________________ _____________________ ___________________
1,198.5 110.3 1,172.9 129.0 2,453.3 247.8
Discontinued - - 91.6 4.0 181.0 9.2
Operations
_______________________ _____________________ ___________________
1,198.5 110.3 1,264.5 133.0 2,634.3 257.0
======================= ===================== ===================
4 EXCEPTIONAL ITEMS
The Group disposed of its non-core chemicals activities on 27th July 2001.
The goodwill attributable to the business was written off in the year ended
30th June 2001 as described in the notes to the financial statements for that
period. After providing for disposal costs and certain retained liabilities,
the disposal gave rise to a gain of £0.4 million.
5 INTEREST PAYABLE AND SIMILAR CHARGES
(In £'s million) Half year to Half year to Year to
31 December 2001 31 December 2000 30 June 2001
(Unaudited) (Unaudited)
Interest payable
and similar
charges
Bank overdrafts
and other loans (11.6) (12.0) (26.1)
Finance leases (1.4) (0.8) (2.2)
Share of interest
payable of
associate (1.7) - -
____________ ____________ ____________
(14.7) (12.8) (28.3)
Interest
receivable and
similar income
Deposits 2.5 0.8 2.0
Interest
receivable on loan
to associate 1.8 - -
____________ ____________ ____________
4.3 0.8 2.0
____________ ____________ ____________
(10.4) (12.0) (26.3)
============ ============ ============
6 TAX ON PROFIT ON ORDINARY ACTIVITIES
The tax charge for the six months to 31st December 2001 is based on the
estimated effective rate for the full year before goodwill amortisation and
exceptional items of 31.0%. Following adoption of FRS 19 the comparative
figures have been restated. A tax credit of £10.6 million was attributable to
exceptional items in the period ended 30th June 2001.
7 EARNINGS PER SHARE
Earnings per share (EPS) is based on profits from ordinary activities after
taxation and minority interests of £67.2 million and a weighted average of
1,705.8 million shares. To enable comparisons with previous periods, EPS has
also been calculated before goodwill and exceptional items using earnings of
£79.3 million. The weighted average number of shares in issue excludes shares
held by the Hays Employee Share Trust Ltd and the Hays plc Qualifying
Employee Share Ownership Trust. The dilution effect of share options issued
to employees but not yet exercised is 11.6 million shares and diluted EPS is
3.91p.
8 DIVIDENDS
(pence) Half year to Half year to Year to
31 December 2001 31 December 2000 30 June 2001
(Unaudited) (Unaudited)
Interim - pence
per ordinary share 1.52 1.32 1.32
Final - pence per -
ordinary share - 2.75
____________ ____________ ____________
1.52 1.32 4.07
============ ============ ============
(In £'s million)
Interim 26.0 22.2 22.2
Final - - 47.0
____________ ____________ ____________
26.0 22.2 69.2
============ ============ ============
9 INVESTMENTS
(In £'s million) 31 December 2001 31 December 2000 30 June 2001
(Unaudited) (Unaudited)
Associated companies 51.6 2.2 2.1
Own shares 50.8 52.7 51.2
Other investments 0.1 1.3 1.0
____________ ____________ ___________
102.5 56.2 54.3
============ ============ ===========
Investments in associated companies include £49.8 million in relation to
Albion Chemicals Ltd including principal and accrued interest on the loan
made on disposal of £48.5 million, as described in note 11.
10 PROVISIONS FOR LIABILITIES AND CHARGES
(In £'s million) Pensions Deferred Property Deferred Other Total
taxation employee
benefits
At 1 July
2001 as
reported 5.8 0.8 3.6 11.6 15.2 37.0
Prior period
adjustment - 23.0 - - - 23.0
______ ______ ______ ______ ______ ______
At 1 July
2001 as
restated 5.8 23.8 3.6 11.6 15.2 60.0
Exchange
retranslation - - - 0.1 - 0.1
Charged to
P&L account 0.6 4.7 - 0.6 14.3 20.2
Utilised (0.1) - (0.6) (1.0) (3.1) (4.8)
______ ______ ______ ______ ______ ______
At 31
December 2001
(unaudited) 6.3 28.5 3.0 11.3 26.4 75.5
====== ====== ====== ====== ====== ======
Other provisions include £13.9 million of potential liabilities retained
following the disposal of Hays Chemicals Ltd and its subsidiaries in the
period and £8.3 million in respect of the reorganisation of the Information
Management business.
11 ACQUISITIONS AND DISPOSALS
No acquisitions were completed in the period.
On 27th July 2001 the Group completed the disposal of its non-core chemical
activities for a consideration of £106.8 million. £60.1 million of the sale
price was paid in cash at completion, with the balance of £46.7 million being
settled by a loan carrying a coupon of 9% for the first three years rising to
15% by year five. Net assets disposed, plus transaction costs, totalled £92.5
million, including £17.9 million of cash. After providing for retained
liabilities, the disposal gave rise to a gain on disposal of £0.4 million. As
part of the transaction, the Group invested £0.7 million in a 49% stake in
Albion Chemicals Ltd, the purchase vehicle.
On 29th August 2001 the Group disposed of its retail installation services
business for a net consideration of £0.7 million. The transaction gave rise
to no gain or loss on disposal in the period.
12 MOVEMENT IN NET DEBT
(In £'s million) Cash Debt Net debt
At 1 July 2001 130.4 (451.3) (320.9)
Foreign exchange movements 0.7 (5.4) (4.7)
Movement during period (15.6) - (15.6)
Borrowings repaid - 19.7 19.7
_______ ________ _________
At 31 December 2001 (unaudited) 115.5 (437.0) (321.5)
======= ======== =========
Cash comprises cash at bank and in hand, less overdrafts. Debt includes
borrowings and finance lease liabilities.
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 7 hours ago Marlowe
- 7 hours ago Haleon
- 7 hours ago TUI AG Reg Shs (DI)
- 7 hours ago Georgia Capital
- 7 hours ago Weir Group