Interim Results
2008 Half Year Results
Robust business model delivers strong results
Inchcape plc, the world's leading car retailer, announces its half year results for the period ended 30 June 2008.
Operational & strategic highlights:
* Musa Motors Group acquisition completed 8 July 2008
** Constant currency
Financial highlights:
-
Sales up 5.1% at £3.3bn; -0.9% in constant currency (2007: £3.1bn)
-
Headline PBT** up 8.6% to £130.3m, -0.1% in constant currency (2007: £120.0m)
-
Reported PBT up 4.4% to £130.3m (2007: £124.8m)
-
Headline EPS** up 9.5% to 20.7p (2007: 18.9p)
-
Reported EPS up 4.0% to 20.7p (2007: 19.9p)
-
Proposed interim dividend up 4.0% at 5.46p per share (2007: 5.25p)
** Before exceptional items
Peter Johnson, Chairman of Inchcape plc, commented:
'I am pleased to report another set of strong results from the Group, demonstrating the continued successful execution of our strategy and the commitment of our people to deliver outstanding Customer service.
'The execution of our strategy remains on track as we benefit from an increased exposure to Emerging Markets following the acquisition of Musa Motors Group in Russia. We continue to focus on creating a differentiated Customer experience for our brand partners in all of our markets.
'We have a robust business model with an excellent geographic portfolio diversification and scale relationships with our brand partners. We also have a strong balance sheet and sufficient facilities in place to support our growth plans.
Despite deteriorating economic conditions in a number of our markets, we expect our results to be broadly in line with 2007.'
For further information, please contact:
Group Communications, Inchcape plc
+44 (0) 20 7546 0022
Investor Relations, Inchcape plc
+44 (0) 20 7546 8432
Financial Dynamics (Jonathon Brill/Billy Clegg)
+44 (0) 20 7831 3113
Notes to editors
About Inchcape
Inchcape plc is the leading independent, international automotive retailer, with scale operations in Australia, Belgium, Greece, Hong Kong, Singapore and the UK. The Group also has operations in a number of other markets, including Eastern Europe, the Baltics, China, Russia and South America. In addition to growing its core businesses, Inchcape is looking to develop scale operations in new and emerging regions. It represents leading automotive brands and operates either a retail, or a vertically integrated retail model (i.e. exclusive distribution and retail), depending on the market. Inchcape's current key manufacturer partners are Toyota/Lexus, Subaru, BMW, Mazda, Mercedes-Benz, Volkswagen, Audi and Honda.
For further information, visit us at www.inchcape.com
Chairman's statement
I am pleased to report another set of strong results from the Group, demonstrating the continued successful execution of our strategy and the commitment of our people to deliver outstanding Customer service.
Overall sales grew by 5.1% to £3.3bn and profit before tax and exceptional items increased by 8.6% to £130.3m.
Earnings per share before exceptional items rose by 9.5% and basic EPS, which includes exceptional items rose by 4.0%. The Board has declared an interim dividend of 5.46p per share, an increase of 4.0% on 2007.
When reviewing the performance of our business units, trading profit is a key measure and is defined as operating profit excluding the impact of exceptional items and central costs.
The retail segment delivered trading profit of £45.3m, flat in constant currency terms and was up 2.0% at actual rates of exchange. Strong growth in our Emerging Markets businesses has compensated for the worsening trading conditions in the UK and Belgium towards the end of the second quarter.
Trading profit in the first half in our Distribution segment grew by £4.6m, up 4.2% in constant currency terms and was up £14.0m, 14.0% at actual rates of exchange. Performances in our Hong Kong and Singapore markets have been ahead of expectations and these, together with continued strong trading profit growth in the Emerging Markets, have compensated for a softer performance in Belgium.
In the first six months, we have benefited from the strengthening of a number of currencies against sterling, particularly the Euro and Australian dollar, which have added £11.1m to trading profit.
Strategy update
As we have previously stated, our strategy is to strengthen our existing businesses and to expand in Emerging Markets.
To strengthen the business we have focused on deriving full benefit from our multiple value drivers (vehicle sales, finance and insurance, parts and service), particularly the highly profitable aftersales segment, as well as the roll out of Customer service retail initiatives and the sharing of Gold Standard best practices across the Group. Moreover, we have benefited in some of our markets from new model introductions. The ongoing improvements we are making are reflected in the like for like sales and profit growth achieved in the first half of 2008, resulting in a solid margin improvement.
Our expansion strategy is also progressing well with £60m invested in acquisitions and greenfield projects over the first half of 2008.
In addition, we have initiated a five year global IT programme to implement SAP across the Group to increase productivity and enable our people to spend more time on Customer related initiatives.
In the UK, we have made further progress with the disposal of non core businesses. We have sold five Vauxhall retail centres for a total consideration of £14.3m. We are also announcing today the decision to retain our Jaguar and Land Rover retail centres in the UK, now that these marques have a stable ownership. These businesses have continued to perform well in the first half of 2008 and we welcome Tata Motors ownership as the investment committed to the development of these brands will strengthen their position in the premium segment. Our strategy in the UK remains to focus on the premium segment of the market, which has over time consistently outperformed the rest of the new car market.
In the first half of 2008, we acquired the remaining 24.9% stake in our St Petersburg business for a total cash consideration of £27.7m. As a result, Inchcape now has 100% ownership of one of the largest automotive retail businesses in St Petersburg, the second largest city in Russia, where the car market has grown by 47% in the first half of the year.
In April, we announced our intention to acquire an initial 75.1% shareholding in Musa Motors Group, another of the largest car retailing groups operating in Russia, for an initial consideration of £100.3m with additional potential consideration payable based on Musa Motors performance in 2008. The acquisition, which completed on 8th July, provides Inchcape with a significant scale position in Moscow with multiple brand partners and complements our existing operations in St Petersburg. Inchcape has entered into an agreement to purchase the remaining 24.9% in 2011.
In addition, we have committed £32m to greenfield expansion with new retail centres in Eastern Europe, Russia, China and South America. In China, the second largest car market in the world, we opened our second retail centre in January 2008. We now have one Toyota and one Lexus retail centre and have plans to open a third, which will retail Lexus in Shanghai, by the end of this year.
In Emerging Markets, following the acquisition of Musa Motors Group, we expect our 2008 revenues to be approaching £1bn.
Finally, in line with the Group's strategy to focus on markets where we can develop a scale position with core brand partners, we announce the sale of our French operation to the current management team for a total expected consideration of £25m, satisfied by a pre-completion reduction in capital of £18m and disposal proceeds of £7m.
We intend to continue to invest in the fast growing Emerging Markets, where acquisitions to date are integrating well. We have a strong balance sheet with debt/ebitda of 0.9x and sufficient committed debt facilities, at competitive rates, to support our growth plans.
Operational review
Group key performance indicators*
|
|
Six months
|
Six months
|
|
|
to 30.06.08
|
to 30.06.07
|
|
|
£m
|
£m
|
|
Sales
|
3,297.9
|
3,136.5
|
|
Like for like sales growth (%)
|
6.7
|
0.5
|
|
Trading profit
|
159.0
|
144.1
|
|
Like for like trading profit (%)
|
9.7
|
2.0
|
Regional analysis*
|
|
2008
|
2008
|
2008
|
2007
|
2007
|
2007
|
|
|
Operating
|
Exceptional
|
Trading
|
Operating
|
Exceptional
|
Trading
|
|
|
profit
|
items
|
profit
|
profit
|
items
|
profit
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Australia
|
22.2
|
-
|
22.2
|
20.5
|
-
|
20.5
|
|
Europe
|
27.5
|
-
|
27.5
|
24.3
|
-
|
24.3
|
|
Hong Kong
|
17.3
|
-
|
17.3
|
25.2
|
(12.0)
|
13.2
|
|
Singapore
|
27.3
|
-
|
27.3
|
25.6
|
-
|
25.6
|
|
United
|
|
|
|
|
|
|
|
Kingdom
|
32.7
|
-
|
32.7
|
28.6
|
7.2
|
35.8
|
|
Emerging
|
|
|
|
|
|
|
|
Markets
|
17.8
|
-
|
17.8
|
12.4
|
-
|
12.4
|
|
Rest of World
|
14.2
|
-
|
14.2
|
12.3
|
-
|
12.3
|
|
Central Costs
|
(7.9)
|
|
|
(10.9)
|
|
|
|
Operating
|
|
|
|
|
|
|
|
Profit
|
151.1
|
|
|
138.0
|
|
|
* At actual rates
Inchcape reports its results in the Condensed financial statements on a statutory basis using actual rates of exchange. To enhance comparability, the Operational review reports results in a form that isolates the impact of currency movements from period to period by applying the June 2008 exchange rates to both periods' results (constant currency). It also adjusts for the impact of exceptional items. Where exceptional items and central costs are excluded from operating profit the results are referred to as trading profit. Unless otherwise stated, all sales and trading profit figures in the Operational review commentary are provided in constant currency.
Like for like sales and trading profit excludes the impact of acquisitions from the date of acquisition until the thirteenth month of ownership, and businesses that are sold or closed. It further removes the impact of retail centres that are relocated. This is from the date of opening until the thirteenth month of trading in the new location.
Australia
|
|
2008
|
2007
|
% change
|
% change
|
|
|
£m
|
£m
|
|
constant currency
|
|
Sales
|
380.6
|
326.9
|
16.4
|
2.1
|
|
Like for like sales
|
371.6
|
321.4
|
15.6
|
1.5
|
|
Trading profit
|
22.2
|
20.5
|
8.3
|
(5.5)
|
|
Like for like trading profit
|
22.4
|
21.0
|
6.7
|
(6.7)
|
In Australia, the market grew by 3.5% in the first six months. Trading remains competitive with numerous consumer offers available across brands, supported by continued high levels of sales support and marketing activities.
We have improved market share in the first half with the launch of new models. Overall sales grew by 2.1% compared to last year, but with the marketing costs to support new model launches, overall trading profits were down by 5.5% in the first half. The new Subaru Impreza model has performed in line with expectations and the new Forester model, launched in March, has also performed well.
We expect the market to remain competitive for the rest of 2008. We expect to benefit in the second half from the marketing investment we made in the first six months behind the launch of the new Forester model and the ongoing marketing of the Impreza launched towards the end of 2007. We will also launch the new Impreza Sedan in the second half of 2008.
Europe
|
|
2008
|
2007
|
% change
|
% change
|
|
|
£m
|
£m
|
|
constant currency
|
|
Sales
|
711.4
|
662.2
|
7.4
|
(5.6)
|
|
Like for like sales
|
711.4
|
657.6
|
8.2
|
(5.0)
|
|
Trading profit
|
27.5
|
24.3
|
13.2
|
(0.7)
|
|
Like for like trading profit
|
27.5
|
24.5
|
12.2
|
(1.8)
|
In an increasingly challenging trading environment, our strategy remains in place, to drive organic growth in our Distribution business and to continue the turnaround plan for Retail.
In Greece the market was flat while in Belgium the impact of the biennial Motor Show has been lower than expected, however the market grew by 7.2% in the first six months. In Finland the expected growth following the tax changes introduced in January has materialised, although it has been slightly lower than anticipated.
Our European Retail businesses have continued to demonstrate the success of the turnaround plan, delivering trading profit growth of 126% versus 2007. Greece in particular has delivered excellent results, turning a significant first half loss last year into breakeven in the first half of 2008. In Finland, we have turned a first half loss last year to a profit in 2008, improving trading margins by 1.4ppts. In Belgium, the lack of new models has resulted in trading profits being down versus last year.
In Greece, our Distribution business has held share and retained its market leadership, improving trading margins by 1.7ppts and delivering trading profit growth of 19.0%. In our Finnish Distribution business we have achieved a 2.7ppts growth in trading margins to deliver trading profit growth of 19.2%. In Belgium, extremely competitive pricing has impacted share and trading margins and as a result trading profit declined by 45% versus 2007.
We expect demand to weaken in Continental European markets in the second half based on lower consumer confidence. In Greece, we are well placed to maintain market leadership. In Finland, we should benefit from the impact of the new Mazda6, whilst in Belgium, we expect the lack of new Toyota models until 2009 to continue to impact performance in the second half.
Hong Kong
|
|
2008
|
2007
|
% change
|
% change
|
|
|
£m
|
£m
|
|
constant currency
|
|
Sales
|
140.6
|
110.3
|
27.5
|
27.9
|
|
Like for like sales
|
134.1
|
96.3
|
39.3
|
39.7
|
|
Trading profit
|
17.3
|
13.2
|
31.1
|
32.1
|
|
Like for like trading profit
|
15.9
|
12.1
|
31.4
|
31.4
|
The economic recovery in Hong Kong has driven significant growth in the market with total registrations up by 30% versus 2007. The luxury and MPV segments were the key drivers of the growth.
Our focus continues to be on the luxury segment and we are increasing our offering in the MPV segment which now accounts for 22% of the market. We also continue to drive aftersales as a key element of growth.
Like for likes sales growth in the first half has been excellent, up 40% versus 2007, and with trading profit margins 0.4ppts ahead of last year, trading profits grew by 32%. Our Lexus range has performed very well with trading profits growing by 60%. The new Toyota Corolla, launched last year continues to perform well.
We expect the overall market growth to continue in the second half and the MPV segment to be a key growth driver. We will launch the new Toyota Alphard and Noah models to leverage growth in this segment and will continue to drive share and margin in the luxury segment with upgraded Lexus models.
Singapore
|
|
2008
|
2007
|
% change
|
% change
|
|
|
£m
|
£m
|
|
constant currency
|
|
Sales
|
229.7
|
269.1
|
(14.6)
|
(22.0)
|
|
Like for like sales
|
229.6
|
268.1
|
(14.4)
|
(21.7)
|
|
Trading profit
|
27.3
|
25.6
|
6.6
|
(2.8)
|
|
Like for like trading profit
|
27.2
|
25.2
|
7.9
|
(1.4)
|
The total market has declined, as expected, in the first six months by 12.6% versus 2007 and within this parallel imports now account for 26% of the market.
Despite this, we have delivered a better than expected performance as we focus on the retention of market leadership with healthy margins. We have supported this with the launch of the new Toyota Corolla Altis and strong commercial vehicles registrations.
The development of other revenue streams continues to be a core initiative and we have supported aftersales and finance penetration with specific marketing activities in the first half.
Sales in Singapore were 22% below last year. However, this has been mitigated by better trading margins, which have improved by 2.3ppts, resulting in trading profits which were down 2.8% on a constant currency basis and 6.6% up on actual rates of exchange. Commercial vehicle margins have been a key contributor to this performance.
We expect the market to continue to track below last year for the remainder of 2008. With the new Altis, the launch of the Toyota Wish and a continuing strong performance from commercial vehicles, we expect the second half to be similar to the first in Singapore.
UK
|
|
2008
|
2007
|
% change
|
% change
|
|
|
£m
|
£m
|
|
constant currency
|
|
Sales
|
1,334.1
|
1,440.8
|
(7.4)
|
(7.4)
|
|
Like for like sales
|
1,258.4
|
1,243.9
|
1.2
|
1.2
|
|
Trading profit
|
32.7
|
35.8
|
(8.7)
|
(8.7)
|
|
Like for like trading profit
|
32.4
|
34.4
|
(5.8)
|
(5.8)
|
The UK vehicle market slowed significantly in the latter part of May and through June, resulting in new car sales in the first half being 1.6% down on 2007, with both private cars and business registrations impacted. Our strategy in the UK remains to focus on the premium segment of the market which has, over time, consistently outperformed the rest of the new car market.
Our UK Retail business has delivered a performance ahead of the market with like for like sales of £1,247m, 1.5% up on 2007.
We have continued to see significant pressure on used car margins; however overall like for like trading margins have declined only twenty basis points from 2.6% to 2.4%. Total trading profits in the Retail business declined versus 2007 by 8.6%.
Our UK Distribution segment comprising Inchcape Fleet Solutions saw trading profits improve versus 2007 as we begin to see the benefits of new contract hire business written in 2007.
We expect market conditions to continue to soften in the second half with the new car market falling further. We will focus on all our value drivers to mitigate the impact of this fall and continue to outperform the overall market.
Emerging Markets
|
|
2008
|
2007
|
% change
|
% change
|
|
|
£m
|
£m
|
|
constant currency
|
|
Sales
|
362.5
|
209.0
|
73.4
|
54.3
|
|
Like for like sales
|
266.4
|
209.0
|
27.5
|
13.4
|
|
Trading profit
|
17.8
|
12.4
|
43.5
|
28.1
|
|
Like for like trading profit
|
15.9
|
12.4
|
28.2
|
13.6
|
Overall we continue to see outstanding growth in the Emerging Markets, with the exception of Estonia and Latvia, in the Baltics, which have experienced a slowdown.
In Russia, we continue to build scale in a market which grew by 47% in the first six months of the year. Total sales growth of 33% has been achieved in the face of some supply constraints from Toyota, while trading profit increased by 14.0%. Margins were below the exceptionally high levels achieved last year but were still above our medium term expectations.
In the Balkans, we continue to focus on market share growth in Romania and expansion of our Retail presence in Bulgaria, whilst in the Baltics, recent acquisitions are integrating well. We delivered trading profit growth of 27% in the Balkans and of 123% in the Baltics, including acquisitions.
In China, we are actively pursuing further growth in a market which grew by 18.0% in the first six months. We continue to trade slightly ahead of expectations in this market and have delivered a smaller loss than expected.
The Emerging Markets will continue to be a key source of growth for the Group and will represent an increasing proportion of the Group's earnings. Growth continues in most Eastern European countries and in Russia we will benefit in the second half from the contribution of the Musa Motors Group acquisition and from the expected easing of supply constraints from Toyota.
Rest of World
|
|
2008
|
2007
|
% change
|
% change
|
|
|
£m
|
£m
|
|
constant currency
|
|
Sales
|
139.0
|
118.2
|
17.6
|
13.7
|
|
Like for like sales
|
139.0
|
118.2
|
17.6
|
13.7
|
|
Trading profit
|
14.2
|
12.3
|
15.4
|
14.5
|
|
Like for like trading profit
|
14.2
|
12.3
|
15.4
|
14.5
|
In the Rest of the World, we continue to focus on operational excellence whilst continuing to grow through acquisitions where opportunities arise.
We have seen good growth in most of the markets in which we trade. South America was up by 16.7%. The Brunei and New Zealand markets also recorded growth. In Ethiopia, the market declined due to inflation and currency restrictions leading to trading profits being 1.1% down on last year. In South America, better trading margins and market growth have delivered a 57% growth in trading profits and we remain confident of a good performance from South America for the rest of the year. The Ethiopian market, together with Guam, will continue to be challenging in 2008.
Financial review
Net Financing Costs
The net financing cost of £21.9m was £7.0m higher than 2007 and is a reflection of our expansion strategy in 2007 and 2008. The majority of the cost increase relates to acquisitions in the second half of 2007 (Lithuania / Latvia, and the Audi / Peugeot business in Russia) along with the acquisition of the minority share of our St Petersburg business in March 2008.
Tax
The effective tax rate for the Group was 25%, in line with the prior year and our expectations.
Minority Interests
Profits attributable to minority interests increased to £3.1m in 2008 from £3.0m in 2007. This was impacted by the inclusion of the 33% minority in our Lithuanian business acquired in July 2007, and only three months profits from our St. Petersburg business following the purchase of the minority share in March 2008.
Cash flow and financing
The Group generated £49.0m of cash from operating activities in the first half. Funding of net capital expenditure amounted to £56.2m and for net acquisitions was £5.7m.
In July, the Group increased its committed banking facilities by £225m with a tenure of three years at competitive rates, in order to provide the Group with further flexibility going forward.
Dividends
The 2007 final dividend of £48.1m was paid in June. The interim dividend will be paid on 4th September 2008 to shareholders on the register at 8th August 2008.
Pensions
During the first half and in line with the funding programme agreed with the Trustees, the Group made additional cash contributions to the UK defined benefit schemes amounting to £11.0m. These payments, together with changes in the long term interest rates, have contributed to the net pension surplus of £46.6m at 30th June 2008.
People
The success of Inchcape is, above all else, due to the passion and dedication of our people. I would like, on behalf of the Board, to express our thanks to our colleagues across the Group for their ongoing commitment to delivering an outstanding Customer service and on the delivery of another set of strong results.
Outlook
The execution of our strategy remains on track as we benefit from an increased exposure to Emerging Markets following the acquisition of Musa Motors Group in Russia. We continue to focus on creating a differentiated Customer experience for our brand partners in all of our markets.
We have a robust business model with an excellent geographic portfolio diversification and scale relationships with our brand partners. We also have a strong balance sheet and sufficient facilities in place to support our growth plans.
Despite deteriorating economic conditions in a number of our markets, we expect our results to be broadly in line with 2007.
Peter Johnson
Chairman
28 July 2008
|
|
Six months
|
Six months
|
Year to
|
|
|
to 30.06.08
|
to 30.06.07
|
31.12.07
|
|
|
£m
|
£m
|
£m
|
|
Revenue (note 2)
|
3,297.9
|
3,136.5
|
6,056.8
|
|
Cost of sales
|
(2,815.2)
|
(2,696.5)
|
(5,174.3)
|
|
Gross profit
|
482.7
|
440.0
|
882.5
|
|
Net operating expenses before exceptional items
|
(331.6)
|
(306.8)
|
(617.5)
|
|
Exceptional items (note 3)
|
-
|
4.8
|
4.9
|
|
|
|
|
|
|
Total net operating expenses
|
(331.6)
|
(302.0)
|
(612.6)
|
|
Operating profit (note 2)
|
151.1
|
138.0
|
269.9
|
|
Share of profit after tax of joint ventures and associates
|
1.1
|
1.7
|
3.5
|
|
Profit before finance and tax
|
152.2
|
139.7
|
273.4
|
|
Finance income (note 4)
|
34.5
|
26.7
|
57.3
|
|
Finance costs (note 5)
|
(56.4)
|
(41.6)
|
(90.7)
|
|
Profit before tax
|
130.3
|
124.8
|
240.0
|
|
Tax (note 6)
|
(32.3)
|
(29.5)
|
(57.9)
|
|
Profit for the period
|
98.0
|
95.3
|
182.1
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
- Equity holders of the parent
|
94.9
|
92.3
|
176.4
|
|
- Minority interests
|
3.1
|
3.0
|
5.7
|
|
|
98.0
|
95.3
|
182.1
|
|
|
|
|
|
|
Basic earnings per share (pence) (note 7)
|
20.7p
|
19.9p
|
38.0p
|
|
Diluted earnings per share (pence) (note 7)
|
20.6p
|
19.8p
|
37.8p
|
|
|
Six months
|
Six months
|
Year to
|
|
|
|
to 30.6.08
|
to 30.6.07
|
31.12.07
|
|
|
|
£m
|
£m
|
£m
|
|
|
Cash flow hedges
|
(13.6)
|
(19.6)
|
33.0
|
|
|
Net investment hedge
|
-
|
0.5
|
-
|
|
|
Fair value losses on available for sale financial assets
|
(0.3)
|
(0.3)
|
(0.2)
|
|
|
Effect of foreign exchange rate changes
|
39.5
|
(2.9)
|
30.3
|
|
|
Actuarial gains on defined benefit pension schemes
|
3.6
|
31.2
|
32.1
|
|
|
Tax recognised directly in shareholders’ equity
|
6.8
|
(7.0)
|
(22.2)
|
|
|
Net gains recognised directly in shareholders’ equity
|
36.0
|
1.9
|
73.0
|
|
|
Profit for the period
|
98.0
|
95.3
|
182.1
|
|
|
Total recognised income and expense for the period
|
134.0
|
97.2
|
255.1
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
- Equity holders for the parent
|
129.5
|
94.2
|
248.4
|
|
|
- Minority interests
|
4.5
|
3.0
|
6.7
|
|
|
|
134.0
|
97.2
|
255.1
|
|
|
|
As at
|
As at
|
As at
|
|
|
30.06.08
|
30.06.07
|
31.12.07
|
|
|
£m
|
£m
|
£m
|
|
Non-current assets
|
|
|
|
|
Intangible assets
|
444.0
|
324.5
|
400.5
|
|
Property, plant and equipment
|
601.5
|
444.7
|
519.3
|
|
Investments in joint ventures and associates
|
16.7
|
14.1
|
15.3
|
|
Available for sale financial assets
|
16.3
|
14.1
|
15.6
|
|
Trade and other receivables
|
24.5
|
22.7
|
24.2
|
|
Deferred tax assets
|
15.2
|
17.8
|
10.2
|
|
Retirement benefit assets
|
52.8
|
51.6
|
51.9
|
|
|
1,171.0
|
889.5
|
1,037.0
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
Inventories
|
956.7
|
663.2
|
797.5
|
|
Trade and other receivables
|
306.4
|
264.9
|
262.6
|
|
Available for sale financial assets
|
0.5
|
1.1
|
1.1
|
|
Derivative financial instruments
|
5.1
|
-
|
12.9
|
|
Current tax assets
|
1.6
|
1.3
|
2.9
|
|
Cash and cash equivalents
|
455.0
|
367.7
|
343.4
|
|
|
1,725.3
|
1,298.2
|
1,420.4
|
|
Assets held for sale and disposal group (note 11)
|
58.9
|
203.6
|
168.6
|
|
|
1,784.2
|
1,501.8
|
1,589.0
|
|
Total assets
|
2,955.2
|
2,391.3
|
2,626.0
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
(1,077.4)
|
(841.3)
|
(940.2)
|
|
Derivative financial instruments
|
(19.1)
|
(70.5)
|
(8.3)
|
|
Current tax liabilities
|
(49.1)
|
(43.6)
|
(42.2)
|
|
Provisions
|
(28.4)
|
(24.0)
|
(31.3)
|
|
Borrowings
|
(244.6)
|
(205.2)
|
(155.3)
|
|
|
(1,418.6)
|
(1,184.6)
|
(1,177.3)
|
|
Non-current liabilities
|
|
|
|
|
Trade and other payables
|
(46.9)
|
(36.6)
|
(41.4)
|
|
Derivative financial instruments
|
-
|
(13.4)
|
-
|
|
Provisions
|
(42.5)
|
(36.8)
|
(39.4)
|
|
Deferred tax liabilities
|
(22.5)
|
(2.8)
|
(18.5)
|
|
Borrowings
|
(488.2)
|
(279.0)
|
(409.6)
|
|
Retirement benefit liabilities
|
(6.2)
|
(31.7)
|
(23.4)
|
|
|
(606.3)
|
(400.3)
|
(532.3)
|
|
Liabilities directly associated with the disposal group (note 11)
|
(29.9)
|
(97.4)
|
(78.6)
|
|
Total liabilities
|
(2,054.8)
|
(1,682.3)
|
(1,788.2)
|
|
|
|
|
|
|
Net assets
|
900.4
|
709.0
|
837.8
|
|
|
|
|
|
|
Shareholders’ equity
|
|
|
|
|
Share capital (note 8)
|
121.9
|
121.2
|
121.6
|
|
Share premium (note 8)
|
126.0
|
121.6
|
123.4
|
|
Capital redemption reserve (note 8)
|
16.4
|
16.4
|
16.4
|
|
Other reserves (note 8)
|
40.7
|
(54.7)
|
12.7
|
|
Retained earnings (note 8)
|
576.2
|
493.2
|
539.5
|
|
Equity attributable to equity holders of the parent
|
881.2
|
697.7
|
813.6
|
|
Minority interests (note 8)
|
19.2
|
11.3
|
24.2
|
|
|
|
|
|
|
Total shareholders’ equity
|
900.4
|
709.0
|
837.8
|
|
|
Six months
|
Six months
|
Year to
|
|
|
to 30.06.08
|
to 30.6.07
|
31.12.07
|
|
|
£m
|
£m
|
£m
|
|
Cash generated from operating activities
|
|
|
|
|
Cash generated from operations (note 9a)
|
98.1
|
176.7
|
293.0
|
|
Tax paid
|
(24.9)
|
(22.2)
|
(49.8)
|
|
Interest received
|
9.8
|
5.9
|
12.4
|
|
Interest paid
|
(34.0)
|
(18.8)
|
(49.5)
|
|
Net cash generated from operating activities
|
49.0
|
141.6
|
206.1
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
Acquisition of businesses, net of cash and overdrafts required
|
(25.7)
|
(256.6)
|
(329.6)
|
|
Net cash inflow from sale of businesses
|
20.0
|
70.6
|
85.5
|
|
Purchase of tangible and intangible assets
|
(63.8)
|
(33.7)
|
(80.1)
|
|
Proceeds from disposal of property, plant and equipment
|
7.6
|
11.3
|
47.3
|
|
Net disposal of available for sale financial assets
|
0.5
|
-
|
-
|
|
Dividends received from joint ventures and associates
|
-
|
1.5
|
2.6
|
|
Net cash used in investing activities
|
(61.4)
|
(206.9)
|
(274.3)
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
Proceeds from issue of ordinary shares
|
2.9
|
6.3
|
8.5
|
|
Share buy back programme
|
(16.0)
|
-
|
(18.5)
|
|
Net purchase of own shares by ESOP Trust
|
(3.0)
|
(2.1)
|
(2.0)
|
|
Cash inflow from Private Placement
|
-
|
277.1
|
277.1
|
|
Net cash inflow (outflow) from borrowings other than Private
|
|
|
|
|
Placement
|
77.7
|
(174.5)
|
(95.5)
|
|
Payment of capital element of finance leases
|
(0.1)
|
(0.1)
|
(0.6)
|
|
Settlement of derivatives
|
8.3
|
1.0
|
(4.3)
|
|
Equity dividends paid
|
(48.1)
|
(46.6)
|
(71.1)
|
|
Minority dividends paid
|
(2.1)
|
(1.6)
|
(1.8)
|
|
Net cash from financing activities
|
19.6
|
59.5
|
91.8
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents (note 9b)
|
7.2
|
(5.8)
|
23.6
|
|
Cash and cash equivalents at beginning of the period
|
198.6
|
166.2
|
166.2
|
|
Effect of foreign exchange rate changes
|
14.4
|
2.1
|
8.8
|
|
Cash and cash equivalents at end of the period
|
220.2
|
162.5
|
198.6
|
|
|
|
|
|
|
Cash and cash equivalents consist of:
|
|
|
|
|
- Cash and cash equivalents
|
328.2
|
270.8
|
273.0
|
|
- Short-term bank deposits
|
126.8
|
96.9
|
70.4
|
|
- Bank overdrafts
|
(234.8)
|
(205.2)
|
(144.8)
|
|
|
220.2
|
162.5
|
198.6
|
|
|
|
Average rates
|
|
|
|
Period end rates
|
|
|
30.6.08
|
30.6.07
|
31.12.07
|
30.6.08
|
30.6.07
|
31.12.07
|
|
Australian dollar
|
2.15
|
2.45
|
2.39
|
2.07
|
2.36
|
2.27
|
|
Euro
|
1.30
|
1.48
|
1.46
|
1.26
|
1.49
|
1.36
|
|
Hong Kong dollar
|
15.49
|
15.43
|
15.63
|
15.52
|
15.69
|
15.52
|
|
Singapore dollar
|
2.76
|
3.02
|
3.02
|
2.70
|
3.07
|
2.87
|
The geographical segments disclosed align them with the risks and rewards associated with different territories. Emerging Markets, which is defined as those countries in which the Group operates that have started to grow but have yet to reach a mature stage of development and accordingly are in the growth phase of the development cycle. These currently comprise Russia, China, Balkans, Baltics and Poland.
|
2008
|
Australia
|
Europe
|
Hong Kong
|
|
Six months to 30.06.08
|
£m
|
£m
|
£m
|
|
Revenue
|
|
|
|
|
Revenue from third parties
|
380.6
|
711.4
|
140.6
|
|
Results
|
|
|
|
|
Operating profit before exceptional items
|
22.2
|
27.5
|
17.3
|
|
Exceptional items
|
-
|
-
|
-
|
|
Segment result
|
22.2
|
27.5
|
17.3
|
|
Share of profit after tax of joint ventures and associates
|
-
|
0.9
|
-
|
|
Profit before finance and tax
|
22.2
|
28.4
|
17.3
|
|
|
|
|
|
|
|
|
United
|
Emerging
|
|
2008
|
Singapore
|
Kingdom
|
Markets
|
|
Six months to 30.06.08
|
£m
|
£m
|
£m
|
|
Revenue
|
|
|
|
|
Revenue from third parties
|
229.7
|
1,334.1
|
362.5
|
|
Results
|
|
|
|
|
Operating profit before exceptional items
|
27.3
|
32.7
|
17.8
|
|
Exceptional items
|
-
|
-
|
-
|
|
Segment result
|
27.3
|
32.7
|
17.8
|
|
Share of profit after tax of joint ventures and associates
|
-
|
0.2
|
-
|
|
Profit before finance and tax
|
27.3
|
32.9
|
17.8
|
|
|
Rest of
|
Total
|
|
|
|
2008
|
World
|
Pre Central
|
Central
|
Total
|
|
Six months to 30.06.08
|
£m
|
£m
|
£m
|
£m
|
|
Revenue
|
|
|
|
|
|
Revenue from third parties
|
139.0
|
3,297.9
|
-
|
3,297.9
|
|
Results
|
|
|
|
|
|
Operating profit before exceptional items
|
14.2
|
159.0
|
(7.9)
|
151.1
|
|
Exceptional items
|
-
|
-
|
-
|
-
|
|
Segment result
|
14.2
|
159.0
|
(7.9)
|
151.1
|
|
Share of profit after tax of joint ventures and associates
|
-
|
1.1
|
-
|
1.1
|
|
Profit before finance and tax
|
14.2
|
160.1
|
(7.9)
|
152.2
|
|
2007
|
Australia
|
Europe
|
Hong Kong
|
|
Six months to 30.06.07
|
£m
|
£m
|
£m
|
|
Revenue
|
|
|
|
|
Revenue from third parties
|
326.9
|
662.2
|
110.3
|
|
Results
|
|
|
|
|
Operating profit before exceptional items
|
20.5
|
24.3
|
13.2
|
|
Exceptional items
|
-
|
-
|
12.0
|
|
Segment result
|
20.5
|
24.3
|
25.2
|
|
Share of profit after tax of joint ventures and associates
|
-
|
0.8
|
0.2
|
|
Profit before finance and tax
|
20.5
|
25.1
|
25.4
|
|
|
|
United
|
Emerging
|
|
2007
|
Singapore
|
Kingdom
|
Markets
|
|
Six months to 30.06.07
|
£m
|
£m
|
£m
|
|
Revenue
|
|
|
|
|
Revenue from third parties
|
269.1
|
1,440.8
|
209.0
|
|
Results
|
|
|
|
|
Operating profit before exceptional items
|
25.6
|
35.8
|
12.4
|
|
Exceptional items
|
-
|
(7.2)
|
-
|
|
Segment result
|
25.6
|
28.6
|
12.4
|
|
Share of profit after tax of joint ventures and associates
|
-
|
0.6
|
-
|
|
Profit before finance and tax
|
25.6
|
29.2
|
12.4
|
|
|
Rest of
|
Total
|
|
|
|
2007
|
World
|
Pre Central
|
Central
|
Total
|
|
Six months to 30.06.07
|
£m
|
£m
|
£m
|
£m
|
|
Revenue
|
|
|
|
|
|
Revenue from third parties
|
118.2
|
3,136.5
|
-
|
3,136.5
|
|
Results
|
|
|
|
|
|
Operating profit before exceptional items
|
12.3
|
144.1
|
(10.9)
|
133.2
|
|
Exceptional items
|
-
|
4.8
|
-
|
4.8
|
|
Segment result
|
12.3
|
148.9
|
(10.9)
|
138.0
|
|
Share of profit after tax of joint ventures and associates
|
0.1
|
1.7
|
-
|
1.7
|
|
Profit before finance and tax
|
12.4
|
150.6
|
(10.9)
|
139.7
|
|
|
|
|
Hong
|
|
United
|
|
|
Australia
|
Europe
|
Kong
|
Singapore
|
Kingdom
|
|
Year to 31.12.07
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
Revenue from third parties
|
657.5
|
1,203.9
|
241.5
|
480.3
|
2,713.5
|
|
Results
|
|
|
|
|
|
|
Operating profit before exceptional items
|
43.8
|
50.1
|
28.3
|
46.0
|
69.6
|
|
Exceptional items
|
-
|
-
|
12.0
|
-
|
(7.1)
|
|
Segment result
|
43.8
|
50.1
|
40.3
|
46.0
|
62.5
|
|
Share of profit after tax of joint ventures and associates
|
-
|
1.8
|
0.2
|
-
|
0.9
|
|
Profit before finance and tax
|
43.8
|
51.9
|
40.5
|
46.0
|
63.4
|
|
|
Emerging
|
Rest of
|
Total pre
|
|
|
|
|
Markets
|
World
|
Central
|
Central
|
Total
|
|
Year to 31.12.07
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Revenue
|
|
|
|
|
|
|
Revenue from third parties
|
518.6
|
241.5
|
6,056.8
|
-
|
6,056.8
|
|
Results
|
|
|
|
|
|
|
Operating profit before exceptional items
|
29.6
|
25.1
|
292.5
|
(27.5)
|
265.0
|
|
Exceptional items
|
-
|
-
|
4.9
|
-
|
4.9
|
|
Segment result
|
29.6
|
25.1
|
297.4
|
(27.5)
|
269.9
|
|
Share of profit after tax of joint ventures and associates
|
-
|
0.6
|
3.5
|
-
|
3.5
|
|
Profit before finance and tax
|
29.6
|
25.7
|
300.9
|
(27.5)
|
273.4
|
|
|
Australia
|
Europe
|
Hong Kong
|
Singapore
|
|
Six months to 30.06.08
|
£m
|
£m
|
£m
|
£m
|
|
Distribution
|
|
|
|
|
|
Revenue from third parties
|
235.4
|
476.4
|
140.6
|
229.7
|
|
Results
|
|
|
|
|
|
Operating profit before exceptional items
|
17.7
|
25.5
|
17.3
|
27.3
|
|
Exceptional items
|
-
|
-
|
-
|
-
|
|
Segment result
|
17.7
|
25.5
|
17.3
|
27.3
|
|
Share of profit after tax of joint ventures and associates
|
-
|
0.9
|
-
|
-
|
|
Profit before finance and tax
|
17.7
|
26.4
|
17.3
|
27.3
|
|
|
|
|
|
|
|
|
United
|
Emerging
|
Rest of
|
Total
|
|
|
Kingdom
|
Markets
|
World
|
Distribution
|
|
Six months to 30.06.08
|
£m
|
£m
|
£m
|
£m
|
|
Distribution
|
|
|
|
|
|
Revenue from third parties
|
11.8
|
161.1
|
135.3
|
1,390.3
|
|
Results
|
|
|
|
|
|
Operating profit before exceptional items
|
1.6
|
10.2
|
14.1
|
113.7
|
|
Exceptional items
|
-
|
-
|
-
|
-
|
|
Segment result
|
1.6
|
10.2
|
14.1
|
113.7
|
|
Share of profit after tax of joint ventures and associates
|
0.2
|
-
|
-
|
1.1
|
|
Profit before finance and tax
|
1.8
|
10.2
|
14.1
|
114.8
|
|
|
|
|
United
|
Emerging
|
Rest of
|
|
|
Australia
|
Europe
|
Kingdom
|
Markets
|
World
|
|
Six months to 30.06.08
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Retail
|
|
|
|
|
|
|
Revenue from third parties
|
145.2
|
235.0
|
1,322.3
|
201.4
|
3.7
|
|
Results
|
|
|
|
|
|
|
Operating profit before exceptional items
|
4.5
|
2.0
|
31.1
|
7.6
|
0.1
|
|
Exceptional items
|
-
|
-
|
-
|
-
|
-
|
|
Segment result
|
4.5
|
2.0
|
31.1
|
7.6
|
0.1
|
|
Share of profit after tax of joint ventures and associates
|
-
|
-
|
-
|
-
|
-
|
|
Profit before finance and tax
|
4.5
|
2.0
|
31.1
|
7.6
|
0.1
|
|
|
Total
|
Total pre
|
|
|
|
|
Retail
|
Central
|
Central
|
Total
|
|
Six months to 30.06.08
|
£m
|
£m
|
£m
|
£m
|
|
Retail
|
|
|
|
|
|
Revenue from third parties
|
1,907.6
|
3,297.9
|
-
|
3,297.9
|
|
Results
|
|
|
|
|
|
Operating profit before exceptional items
|
45.3
|
159.0
|
(7.9)
|
151.1
|
|
Exceptional items
|
-
|
-
|
-
|
-
|
|
Segment result
|
45.3
|
159.0
|
(7.9)
|
151.1
|
|
Share of profit after tax of joint ventures and associates
|
-
|
1.1
|
-
|
1.1
|
|
Profit before finance and tax
|
45.3
|
160.1
|
(7.9)
|
152.2
|
|
|
|
|
|
|
|
|
Australia
|
Europe
|
Hong Kong
|
Singapore
|
|
Six months to 30.06.07
|
£m
|
£m
|
£m
|
£m
|
|
Distribution
|
|
|
|
|
|
Revenue from third parties
|
206.8
|
458.7
|
110.3
|
269.1
|
|
Results
|
|
|
|
|
|
Operating profit before exceptional items
|
17.0
|
23.5
|
13.2
|
25.6
|
|
Exceptional items
|
-
|
-
|
12.0
|
-
|
|
Segment result
|
17.0
|
23.5
|
25.2
|
25.6
|
|
Share of profit after tax of joint ventures and associates
|
-
|
0.8
|
0.2
|
-
|
|
Profit before finance and tax
|
17.0
|
24.3
|
25.4
|
25.6
|
|
|
|
|
|
|
|
|
United
|
Emerging
|
Rest of
|
Total
|
|
|
Kingdom
|
Markets
|
World
|
Distribution
|
|
Six months to 30.06.07
|
£m
|
£m
|
£m
|
£m
|
|
Distribution
|
|
|
|
|
|
Revenue from third parties
|
43.0
|
88.3
|
116.9
|
1,293.1
|
|
Results
|
|
|
|
|
|
Operating profit before exceptional items
|
1.8
|
6.3
|
12.3
|
99.7
|
|
Exceptional items
|
(6.9)
|
-
|
-
|
5.1
|
|
Segment result
|
(5.1)
|
6.3
|
12.3
|
104.8
|
|
Share of profit after tax of joint ventures and associates
|
0.6
|
-
|
0.1
|
1.7
|
|
Profit before finance and tax
|
(4.5)
|
6.3
|
12.4
|
106.5
|
|
|
|
|
United
|
Emerging
|
|
|
Australia
|
Europe
|
Kingdom
|
Markets
|
|
Six months to 30.06.07
|
£m
|
£m
|
£m
|
£m
|
|
Retail
|
|
|
|
|
|
Revenue from third parties
|
120.1
|
203.5
|
1,397.8
|
120.7
|
|
Results
|
|
|
|
|
|
Operating profit before exceptional items
|
3.5
|
0.8
|
34.0
|
6.1
|
|
Exceptional items
|
-
|
-
|
(0.3)
|
-
|
|
Segment result
|
3.5
|
0.8
|
33.7
|
6.1
|
|
Share of profit after tax of joint ventures and associates
|
-
|
-
|
-
|
-
|
|
Profit before finance and tax
|
3.5
|
0.8
|
33.7
|
6.1
|
|
|
Rest of
|
Total
|
Total pre
|
|
|
|
|
World
|
Retail
|
Central
|
Central
|
Total
|
|
Six months to 30.06.07
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Retain
|
|
|
|
|
|
|
Revenue from third parties
|
1.3
|
1,843.4
|
3,136.5
|
-
|
3,136.5
|
|
Results
|
|
|
|
|
|
|
Operating profit before exceptional items
|
-
|
44.4
|
144.1
|
(10.9)
|
133.2
|
|
Exceptional items
|
-
|
(0.3)
|
4.8
|
-
|
4.8
|
|
Segment result
|
-
|
44.1
|
148.9
|
(10.9)
|
138.0
|
|
Share of profit after tax of joint ventures and associates
|
-
|
-
|
1.7
|
-
|
1.7
|
|
Profit before finance and tax
|
-
|
44.1
|
150.6
|
(10.9)
|
139.7
|
|
|
|
|
Hong
|
|
|
|
|
Australia
|
Europe
|
Kong
|
Singapore
|
|
|
Year to 31.12.07
|
£m
|
£m
|
£m
|
£m
|
|
|
Distribution
|
|
|
|
|
|
|
Revenue from third parties
|
416.6
|
824.1
|
241.5
|
480.3
|
|
|
Results
|
|
|
|
|
|
|
Operating profit before exceptional items
|
35.0
|
49.3
|
28.3
|
46.0
|
|
|
Exceptional items
|
-
|
-
|
12.0
|
-
|
|
|
Segment result
|
35.0
|
49.3
|
40.3
|
46.0
|
|
|
Share of profit after tax of joint ventures and associates
|
-
|
1.8
|
0.2
|
-
|
|
|
Profit before finance and tax
|
35.0
|
51.1
|
40.5
|
46.0
|
|
|
|
|
|
|
|
|
|
|
United
|
Emerging
|
Rest of
|
Total
|
|
|
|
Kingdom
|
Markets
|
World
|
Distribution
|
|
|
Year to 31.12.07
|
£m
|
£m
|
£m
|
£m
|
|
|
Distribution
|
|
|
|
|
|
|
Revenue from third parties
|
67.5
|
242.0
|
237.5
|
2,509.5
|
|
|
Results
|
|
|
|
|
|
|
Operating profit before exceptional items
|
4.9
|
16.4
|
25.0
|
204.9
|
|
|
Exceptional items
|
(8.8)
|
-
|
-
|
3.2
|
|
|
Segment result
|
(3.9)
|
16.4
|
25.0
|
208.1
|
|
|
Share of profit after tax of joint ventures and associates
|
0.9
|
-
|
0.6
|
3.5
|
|
|
Profit before finance and tax
|
(3.0)
|
16.4
|
25.6
|
211.6
|
|
|
|
|
|
United
|
Emerging
|
Rest of
|
|
|
Australia
|
Europe
|
Kingdom
|
Markets
|
World
|
|
Year to 31.12.07
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Retail
|
|
|
|
|
|
|
Revenue from third parties
|
240.9
|
379.8
|
2,646.0
|
276.6
|
4.0
|
|
|
|
|
|
|
|
|
Results
|
|
|
|
|
|
|
Operating profit before exceptional items
|
8.8
|
0.8
|
64.7
|
13.2
|
0.1
|
|
Exceptional items
|
-
|
-
|
1.7
|
-
|
-
|
|
Segment result
|
8.8
|
0.8
|
66.4
|
13.2
|
0.1
|
|
Share of profit after tax of joint ventures and associates
|
-
|
-
|
-
|
-
|
-
|
|
Profit before finance and tax
|
8.8
|
0.8
|
66.4
|
13.2
|
0.1
|
|
|
Total
|
Total pre
|
|
|
|
|
Retail
|
Central
|
Central
|
Total
|
|
Year to 31.12.07
|
£m
|
£m
|
£m
|
£m
|
|
Retail
|
|
|
|
|
|
Revenue from third parties
|
3,547.3
|
6,056.8
|
-
|
6,056.8
|
|
|
|
|
|
|
|
Results
|
|
|
|
|
|
Operating profit before exceptional items
|
87.6
|
292.5
|
(27.5)
|
265.0
|
|
Exceptional items
|
1.7
|
4.9
|
-
|
4.9
|
|
Segment result
|
89.3
|
297.4
|
(27.5)
|
269.9
|
|
Share of profit after tax of joint ventures and associates
|
-
|
3.5
|
-
|
3.5
|
|
Profit before finance and tax
|
89.3
|
300.9
|
(27.5)
|
273.4
|
|
|
Six months
|
Six months
|
Year to
|
|
|
to 30.6.08
|
to 30.6.07
|
31.12.07
|
|
|
£m
|
£m
|
£m
|
|
Profit on disposal of Inchroy joint venture
|
-
|
12.0
|
12.0
|
|
Loss on disposal of Inchcape Automotive Limited
|
-
|
(6.9)
|
(5.8)
|
|
Loss on disposal of other UK businesses
|
-
|
(0.3)
|
(1.3)
|
|
Total exceptional items
|
-
|
4.8
|
4.9
|
|
|
Six months
|
Six months
|
Year to
|
|
|
to 30.6.08
|
to 30.6.07
|
31.12.07
|
|
|
£m
|
£m
|
£m
|
|
Bank interest receivable
|
8.5
|
5.2
|
11.6
|
|
Expected return on post retirement plan assets
|
24.7
|
20.6
|
43.8
|
|
Other interest receivable
|
1.3
|
0.9
|
1.9
|
|
Total finance income
|
34.5
|
26.7
|
57.3
|
|
|
Six months
|
Six months
|
Year to
|
|
|
to 30.6.08
|
to 30.6.07
|
31.12.07
|
|
|
£m
|
£m
|
£m
|
|
Bank and loan interest payable
|
13.7
|
10.9
|
17.4
|
|
Private Placement interest payable
|
8.5
|
1.8
|
11.3
|
|
Fair value gains on cross currency interest rate swaps
|
1.6
|
13.4
|
(8.0)
|
|
Fair value adjustment on Private Placement
|
(0.9)
|
(13.1)
|
8.3
|
|
Stock holding interest
|
9.8
|
8.1
|
18.2
|
|
Interest expense on post-retirement plan liabilities
|
21.5
|
18.7
|
39.1
|
|
Other interest payable
|
3.0
|
1.8
|
4.4
|
|
|
57.2
|
41.6
|
90.7
|
|
Less: interest capitalised
|
(0.8)
|
-
|
-
|
|
Total finance costs
|
56.4
|
41.6
|
90.7
|
|
|
Six months
|
Six months
|
Year to
|
|
|
to 30.6.08
|
to 30.6.07
|
31.12.07
|
|
|
£m
|
£m
|
£m
|
|
Current tax - UK
|
0.2
|
0.6
|
8.9
|
|
- Overseas
|
30.8
|
28.3
|
53.7
|
|
|
31.0
|
28.9
|
62.6
|
|
Deferred tax - UK
|
1.7
|
0.5
|
(3.5)
|
|
- Overseas
|
(0.4)
|
0.1
|
(1.2)
|
|
Total tax
|
32.3
|
29.5
|
57.9
|
|
|
Six months
|
Six months
|
Year to
|
|
|
to 30.6.08
|
to 30.6.07
|
31.12.07
|
|
|
£m
|
£m
|
£m
|
|
Profit for the period
|
98.0
|
95.3
|
182.1
|
|
Minority interests
|
(3.1)
|
(3.0)
|
(5.7)
|
|
Basic earnings
|
94.9
|
92.3
|
176.4
|
|
Exceptional items
|
-
|
(4.8)
|
(4.9)
|
|
Headline earnings
|
94.9
|
87.5
|
171.5
|
|
Basic earnings per share
|
20.7p
|
19.9p
|
38.0p
|
|
Diluted earnings per share
|
20.6p
|
19.8p
|
37.8p
|
|
Basic Headline earnings per share
|
20.7p
|
18.9p
|
37.0p
|
|
Diluted Headline earnings per share
|
20.6p
|
18.8p
|
36.8p
|
|
|
Six months
|
Six months
|
Year to
|
|
|
to 30.6.08
|
to 30.6.07
|
31.12.07
|
|
|
number
|
number
|
number
|
|
Weighted average number of fully paid ordinary
|
|
|
|
|
shares in issue during the period
|
486,476,096
|
483,371,751
|
484,498,889
|
|
Weighted average number of fully paid ordinary
|
|
|
|
|
shares in issue during the period:
|
|
|
|
|
- Held by the ESOP Trust
|
(1,408,423)
|
(1,734,109)
|
(1,760,001)
|
|
- Repurchase as part of the share buy back programme
|
(26,282,846)
|
(17,880,606)
|
(18,625,305)
|
|
Weighted average number of fully paid ordinary
|
|
|
|
|
shares for the purposes of basic EPS
|
458,784,827
|
463,757,036
|
464,113,583
|
|
Dilutive effect of potential ordinary shares
|
1,039,346
|
2,689,766
|
2,285,346
|
|
Adjusted weighted average number of fully paid
|
|
|
|
|
ordinary shares in issue during the period for the
|
|
|
|
|
purposes of diluted EPS
|
459,824,173
|
466,446,802
|
466,398,929
|
|
|
Six months
|
Six months
|
Year to
|
|
|
to 30.6.08
|
to 30.6.07
|
31.12.07
|
|
|
£m
|
£m
|
£m
|
|
Share capital
|
0.3
|
0.6
|
1.0
|
|
Share premium
|
2.6
|
5.7
|
7.5
|
|
|
2.9
|
6.3
|
8.5
|
|
|
Six months
|
Six months
|
Year to
|
|
|
to 30.6.08
|
to 30.6.07
|
31.12.07
|
|
|
£m
|
£m
|
£m
|
|
Interim dividend for the six months ended 30 June 2007
|
|
|
|
|
of 5.25p per share
|
-
|
-
|
24.5
|
|
Final dividend for the year ended 31 December 2007
|
|
|
|
|
of 10.5p per share (2006 - 10.0p per share)
|
48.1
|
46.6
|
46.6
|
|
|
48.1
|
46.6
|
71.1
|
|
|
|
|
Capital
|
|
|
|
Share
|
Share
|
redemption
|
Other
|
|
|
capital
|
premium
|
reserves
|
reserves
|
|
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
At 1 January 2007
|
120.6
|
115.9
|
16.4
|
(37.7)
|
|
Total recognised income and expense for the year
|
-
|
-
|
-
|
(17.0)
|
|
Share-based payments charge
|
-
|
-
|
-
|
-
|
|
Net purchase of own shares by ESOP Trust
|
-
|
-
|
-
|
-
|
|
Share buy back programme
|
-
|
-
|
-
|
-
|
|
Dividends:
|
|
|
|
|
|
- Equity holders of the parent
|
-
|
-
|
-
|
-
|
|
- Minority interests
|
-
|
-
|
-
|
-
|
|
Issue of ordinary share capital
|
0.6
|
5.7
|
-
|
-
|
|
Acquisition of business
|
-
|
-
|
-
|
-
|
|
At 30 June 2007
|
121.2
|
121.6
|
16.4
|
(54.7)
|
|
|
|
Equity
|
|
|
|
|
|
attributable to
|
|
Total
|
|
|
Retained
|
equity holders
|
Minority
|
shareholders’
|
|
|
earnings
|
of the parent
|
interest
|
equity
|
|
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
At 1 January 2007
|
428.6
|
643.8
|
7.2
|
651.0
|
|
Total recognised income and expense for the year
|
111.2
|
94.2
|
3.0
|
97.2
|
|
Share-based payments charge
|
2.1
|
2.1
|
-
|
2.1
|
|
Net purchase of own shares by ESOP Trust
|
(2.1)
|
(2.1)
|
-
|
(2.1)
|
|
Share buy back programme
|
-
|
-
|
-
|
-
|
|
Dividends:
|
|
|
|
|
|
- Equity holders of the parent
|
(46.6)
|
(46.6)
|
-
|
(46.6)
|
|
- Minority interests
|
-
|
-
|
(1.6)
|
(1.6)
|
|
Issue of ordinary share capital
|
-
|
6.3
|
-
|
6.3
|
|
Acquisition of business
|
-
|
-
|
2.7
|
2.7
|
|
At 30 June 2007
|
493.2
|
697.7
|
11.3
|
709.0
|
|
|
|
|
Capital
|
|
|
|
Share
|
Share
|
redemption
|
Other
|
|
|
capital
|
premium
|
reserves
|
reserves
|
|
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
At 1 January 2007
|
120.6
|
115.9
|
16.4
|
(37.7)
|
|
Total recognised income and expense for the year
|
-
|
-
|
-
|
50.4
|
|
Share-based payments charge
|
-
|
-
|
-
|
-
|
|
Net purchase of own shares by ESOP Trust
|
-
|
-
|
-
|
-
|
|
Share buy back programme
|
-
|
-
|
-
|
-
|
|
Dividends:
|
|
|
|
|
|
- Equity holders of the parent
|
-
|
-
|
-
|
-
|
|
- Minority interests
|
-
|
-
|
-
|
-
|
|
Issue of ordinary share capital
|
1.0
|
7.5
|
-
|
-
|
|
Acquisition of business
|
-
|
-
|
-
|
-
|
|
At 1 January 2008
|
121.6
|
123.4
|
16.4
|
12.7
|
|
|
|
Equity
|
|
|
|
|
|
attributable to
|
|
Total
|
|
|
Retained
|
equity holders
|
Minority
|
shareholders’
|
|
|
earnings
|
of the parent
|
interest
|
equity
|
|
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
At 1 January 2007
|
428.6
|
643.8
|
7.2
|
651.0
|
|
Total recognised income and expense for the year
|
198.0
|
248.4
|
6.7
|
255.1
|
|
Share-based payments charge
|
4.5
|
4.5
|
-
|
4.5
|
|
Net purchase of own shares by ESOP Trust
|
(2.0)
|
(2.0)
|
-
|
(2.0)
|
|
Share buy back programme
|
(18.5)
|
(18.5)
|
-
|
(18.5)
|
|
Dividends:
|
|
|
|
|
|
- Equity holders of the parent
|
(71.1)
|
(71.1)
|
-
|
(71.1)
|
|
- Minority interests
|
-
|
-
|
(1.8)
|
(1.8)
|
|
Issue of ordinary share capital
|
-
|
8.5
|
-
|
8.5
|
|
Acquisition of business
|
-
|
-
|
12.1
|
12.1
|
|
At 1 January 2008
|
539.5
|
813.6
|
24.2
|
837.8
|
|
|
|
|
Capital
|
|
|
|
Share
|
Share
|
redemption
|
Other
|
|
|
capital
|
premium
|
reserves
|
reserves
|
|
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
Total recognised income and expense for the year
|
-
|
-
|
-
|
28.0
|
|
Share-based payments charge
|
-
|
-
|
-
|
-
|
|
Net purchase of own shares by ESOP Trust
|
-
|
-
|
-
|
-
|
|
Share buy back programme
|
-
|
-
|
-
|
-
|
|
Dividends:
|
|
|
|
|
|
- Equity holders of the parent
|
-
|
-
|
-
|
-
|
|
- Minority interests
|
-
|
-
|
-
|
-
|
|
Issue of ordinary share capital
|
0.3
|
2.6
|
-
|
-
|
|
Acquisition of minority interest
|
-
|
-
|
-
|
-
|
|
At 30 June 2008
|
121.9
|
126.0
|
16.4
|
40.7
|
|
|
|
Equity
|
|
|
|
|
|
attributable to
|
|
Total
|
|
|
Retained
|
equity holders
|
Minority
|
shareholders’
|
|
|
earnings
|
of the parent
|
interest
|
equity
|
|
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
Total recognised income and expense
|
|
|
|
|
|
for the year
|
101.5
|
129.5
|
4.5
|
134.0
|
|
Share-based payments charge
|
2.3
|
2.3
|
-
|
2.3
|
|
Net purchase of own shares by ESOP Trust
|
(3.0)
|
(3.0)
|
-
|
(3.0)
|
|
Share buy back programme
|
(16.0)
|
(16.0)
|
-
|
(16.0)
|
|
Dividends:
|
|
|
|
|
|
- Equity holders of the parent
|
(48.1)
|
(48.1)
|
-
|
(48.1)
|
|
- Minority interests
|
-
|
-
|
(2.1)
|
(2.1)
|
|
Issue of ordinary share capital
|
-
|
2.9
|
-
|
2.9
|
|
Acquisition of minority interest
|
-
|
-
|
(7.4)
|
(7.4)
|
|
At 30 June 2008
|
576.2
|
881.2
|
19.2
|
900.4
|
|
|
Six months
|
Six months
|
Year to
|
|
|
to 30.6.08
|
to 30.6.07
|
31.12.07
|
|
|
£m
|
£m
|
£m
|
|
Cash flows from operating activities
|
|
|
|
|
Operating profit
|
151.1
|
138.0
|
269.9
|
|
Exceptional items
|
-
|
(4.8)
|
(4.9)
|
|
Amortisation
|
1.6
|
3.0
|
6.5
|
|
Depreciation
|
17.6
|
14.7
|
27.2
|
|
Profit on disposal of property,
|
|
|
|
|
plant and equipment
|
(1.5)
|
(3.2)
|
(9.0)
|
|
Share-based payments charge
|
2.3
|
2.1
|
4.5
|
|
(Increase) decrease in inventories
|
(72.1)
|
66.5
|
(13.9)
|
|
Increase in trade and other receivables
|
(25.6)
|
(46.8)
|
(2.3)
|
|
Increase in trade and other payables
|
41.3
|
18.0
|
30.8
|
|
(Decrease) increase in provisions
|
(3.4)
|
4.2
|
8.1
|
|
Decrease in post-retirement defined benefits
|
(11.0)
|
(10.4)
|
(15.4)
|
|
Movement in vehicles subject to residual
|
|
|
|
|
value commitments
|
(4.8)
|
(2.8)
|
(7.0)
|
|
Other items
|
2.6
|
(1.8)
|
(1.5)
|
|
Cash generated from operations
|
98.1
|
176.7
|
293.0
|
|
|
Six months
|
Six months
|
Year to
|
|
|
to 30.6.08
|
to 30.6.07
|
31.12.07
|
|
|
£m
|
£m
|
£m
|
|
Net increase (decrease) in cash and cash equivalents
|
7.2
|
(5.8)
|
23.6
|
|
Net cash outflow from borrowings and lease financing
|
(77.6)
|
(102.5)
|
(181.0)
|
|
Change in net cash and debt resulting from cash flows
|
(70.4)
|
(108.3)
|
(157.4)
|
|
Effect of foreign exchange rate changes
|
|
|
|
|
on net cash and debt
|
13.1
|
2.6
|
8.0
|
|
Loan notes raised on acquisition
|
-
|
(4.5)
|
(4.5)
|
|
Movement in fair value
|
1.0
|
-
|
(7.5)
|
|
Net loans and finance leases relating to acquisitions
|
-
|
(0.7)
|
(41.1)
|
|
Movement in net debt
|
(56.3)
|
(110.9)
|
(202.5)
|
|
Opening net debt
|
(221.5)
|
(19.0)
|
(19.0)
|
|
Closing net debt
|
(277.8)
|
(129.9)
|
(221.5)
|
|
|
Six months
|
Six months
|
Year to
|
|
|
to 30.6.08
|
to 30.6.07
|
31.12.07
|
|
|
£m
|
£m
|
£m
|
|
Assets directly associated with the disposal group
|
54.9
|
203.6
|
163.5
|
|
Assets held for sale
|
4.0
|
-
|
5.1
|
|
Assets held for sale and disposal group
|
58.9
|
203.6
|
168.6
|
|
Liabilities directly associated with the disposal group
|
(29.9)
|
(97.4)
|
(78.6)
|
|
|
Six months
|
Six months
|
Year to
|
|
|
to 30.6.08
|
to 30.6.07
|
31.12.07
|
|
|
£m
|
£m
|
£m
|
|
Goodwill
|
5.2
|
12.0
|
11.1
|
|
Property, plant and equipment
|
13.6
|
62.1
|
48.6
|
|
Inventories
|
24.8
|
97.2
|
81.0
|
|
Trade and other receivables
|
11.3
|
32.3
|
22.8
|
|
Assets directly associated with the disposal group
|
54.9
|
203.6
|
163.5
|
|
Trade and other payables
|
(29.9)
|
(97.4)
|
(78.6)
|
|
Liabilities directly associated with the disposal group
|
(29.9)
|
(97.4)
|
(78.6)
|
The Interim Management Report is available on www.inchcape.com
This information is provided by RNS
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