Final Results
Mothercare PLC
22 May 2003
22 May 2003
Mothercare plc
Results for the 52 weeks ended 29 March 2003
Key Financials
• Group sales up 1.1% to £431.7m (2002: £426.9m)
• Gross margins up 0.2 percentage point to 41.8%, with a 1.3 percentage
point improvement in the second half year
• Adjusted operating loss* £10.4m (2002: £3.0m)
• Exceptional charges and one-off items totalling £14.5m
• Loss before tax of £24.8m (2002: profit before tax of £0.1m)
• Balance sheet cash positive: operating cash inflow of £8.3m (2002:
outflow of £10.5m)
• Strong performances from Mothercare Direct and Mothercare International
• Basic loss per share 22.0p (2002: earnings per share 0.2p)
• No dividend (2002: 2.5p per share)
*Adjusted operating loss refers to the operating loss excluding exceptional
charges and one-off items of £14.5m. (See Results Summary).
Current Trading
• Encouraging current trading with UK like-for-like sales for the seven
weeks to 16 May 2003 up 2.8% and an increase in gross margins.
Ian Peacock, Chairman, said:
'Since joining Mothercare as Chief Executive in December 2002, Ben Gordon and
his management team have moved quickly to stabilise the business. While much
remains to be done to restore Mothercare to proper levels of profitability,
encouraging progress is being made.'
Ben Gordon, Chief Executive, said:
'The business is now on a stable platform and we have developed a plan to turn
Mothercare around. We are focusing on five key areas:- the store proposition,
product and sourcing, supply chain, customer service and infrastructure. While
the turnaround programme will take some three years to complete, we are making
good progress in delivering our plan.
'During the fourth quarter of the year trading strengthened. We have continued
to build on this performance in the current year and, whilst it is too early to
say whether it is the start of a sustained improvement, the first seven weeks
have been encouraging.'
Enquiries to:
Mothercare plc
Ben Gordon, Chief Executive 01923 206001
Steven Glew, Finance Director 01923 206140
Brunswick Group Limited
Susan Gilchrist/ Philippa Power 020 7404 5959
RESULTS SUMMARY
Group sales for the year rose by 1.1% to £431.7m (2002: £426.9m). The gross
margin before exceptional items for the year increased by 0.2 percentage point
to 41.8%. The loss before tax was £24.8m (2002: £0.1m profit). The Group
adjusted operating loss before exceptional and one-off items was £10.4m. The
reduction in adjusted operating performance of £13.4m, from a profit of £3.0m in
2002 to a loss of £10.4m in 2003, was primarily caused by an £11m increase in
distribution costs due to the problems encountered with the distribution network
in the year.
The results for the second half of the year show an operating loss of £1.5m
before exceptional and one-off items, compared to an operating loss of £8.9m
before exceptional items in the first half. The gross margin in the second half
year was up 1.3 percentage points to 42.7%. Mothercare had a disappointing
start to the second half, leading to the profit warning in January 2003.
However performance improved in the final quarter with like for like sales up
2.4%. The sales performance, combined with margin improvements and reducing
distribution costs, were the major causes of the adjusted operating performance
being ahead of our expectations in January.
The results can be summarised as follows:
2003 2002
£m £m
Turnover (ex VAT) 431.7 426.9
====== ======
Adjusted operating (loss)/profit (10.4) 3.0
One-off items (9.3) -
Exceptional operating charges (2.8) -
______ ______
Operating (loss)/profit (after exceptional operating charges) (22.5) 3.0
Non-operating exceptional charges (2.4) (4.1)
Interest 0.1 1.2
______ ______
(Loss)/profit on ordinary activities before tax (24.8) 0.1
====== ======
Group turnover and operating (loss)/profit before exceptional operating charges
and one off items:
Turnover Operating
(Loss)/Profit
2003 2002 2003 2002
£m £m £m £m
UK Stores 369.3 374.7 (15.9) (1.0)
Mothercare Direct 16.2 13.3 0.7 -
Mothercare International 46.2 38.9 4.8 4.0
______ ______ ______ ______
Total 431.7 426.9 (10.4) 3.0
====== ====== ====== ======
UK Stores
Turnover was 1.4% down on last year at £369.3m together with a 1.0% reduction in
like-for-like sales. The primary cause of this reduction being the poor product
availability to customers caused by the distribution problems during the year.
Five new stores opened in the year adding 2.1% to sales, however, this was
offset by nine closures in the year to give a net 0.5% sales decline due to
space changes. The operating loss (before exceptional operating charges and
one-off items) was £15.9m compared to a loss of £1m last year.
Mothercare Direct
Mothercare Direct, which includes our catalogue and website businesses, had a
successful year generating its first operating profit in its third year of
operation. Sales grew by 21.9% to £16.2m with an operating profit of £0.7m
compared to breakeven last year.
The Direct platform is also being used to support stores, by providing a home
delivery service for larger products, and offering a wider range to customers
served by smaller Mothercare stores. Sales of £8.5m were ordered through stores
for home delivery.
Mothercare International
Mothercare International achieved another strong sales and profit performance,
despite a short term set-back in the last quarter due to the impact of the Gulf
War, with sales up 19% to £46.2m and operating profit up 20% to £4.8m.
The Franchise model continues to work successfully with all our core partners
investing in the brand either with refurbishments or new stores during the
coming year. We currently have 174 franchise stores open, of which 19 were
opened in the year, and a further 20 are planned to open in the current
financial year.
Adjusted operating loss (before exceptional items)
The reported operating loss (before exceptional charges) of £19.7m includes a
number of one-off items which do not fall within the accounting definition of
exceptional items and have therefore been included within the operating loss.
These one-off items amount to £9.3m and are analysed as follows:
£m
Pensions 3.0
Fixed asset impairment 2.5
Clearance stock 1.7
Business stabilisation costs 1.1
Other 1.0
_______
Total 9.3
=======
Additional pension costs of £3.0m are described in more detail under 'Pension
Accounting' below. The fixed asset impairment provision of £2.5m resulted from a
review of the accounting policies and practices of the Group. This review did
not identify any material accounting policies that were considered
inappropriate. A provision of £1.7m has been taken against the value of
exceptional levels of old season clothing stock held for clearance. Business
stabilisation costs of £1.1m are principally the cost of consulting services
provided to support stabilisation of the business and the start of the
turnaround. Other items of £1.0m comprise a number of smaller items including an
adjustment to the stock valuation methodology.
Adjusting for the above items reduces the operating loss to £10.4m.
Exceptional items
Exceptional operating charges of £2.8m comprise redundancy costs of £2.0m and
exceptional distribution costs of £0.8m. The redundancy costs of £2.0m
represent the severance payments made to Board members and other employees,
including the redundancy costs arising from store closures in the year. The
exceptional distribution costs relate to one-off costs incurred in renegotiating
the Group's warehouse and distribution contract during the year.
Net non-operating exceptional charges of £2.4m have also been incurred. These
comprise provisions for losses on disposal of stores of £3.1m, off-set by a
£0.7m profit on stores closed during the year.
Interest and Taxation
Net interest income decreased to £0.1m from £1.2m last year, as a result of
lower average cash balances. There was no overall tax charge in either year due
to the tax losses brought forward from prior years. The effective rate of tax
will therefore remain below the standard rate of corporation tax until the group
has used all of these losses. The losses carried forward at the end of the year
are approximately £58m.
The £10.0m exceptional tax credit relates to lease back arrangements made in
1996/1997, the treatment for tax purposes having been finally agreed during the
year resulting in the release of the prior year provision held.
Dividends
The Board have recommended no final dividend for the year be paid (last year
1.5p per share).
Cash Flow and Financing
The Group had a net cash inflow from trading of £8.3m (2002: outflow of £10.5m).
This net inflow arose from the operating loss before exceptional items of
£19.7m plus exceptional cash costs of £3.8m, adjusted for depreciation of
£14.3m, and favourable working capital improvements of £17.5m. The working
capital improvement was due to a reduction in stock levels of £3.8m, a reduction
in debtors of £4.7m, and an increase in creditors of £9.0m.
Capital expenditure in the year was £13.4m (2002: £10.7m). The largest element
of this capital expenditure related to the five new stores opened in the early
part of the year at a cost of £4.3m.
Taking account of the payment of the final dividend for 2002 of £1.0m, this
resulted in a net cash outflow of £4.6m (2002: outflow of £22.5m).
In May 2003 the Group agreed a new three year committed bank facility of £20.0m
which is secured by a fixed and floating charge over the assets of the Group.
We anticipate that this facility, combined with the underlying cash generation
of the business, will provide sufficient funding to complete the turnaround of
the business and commence the future development.
Pension Accounting
A full actuarial valuation of the Group defined benefit pension schemes is being
undertaken as at 31 March 2003, the previous full valuation was at 31 March
2000, which showed a net surplus of £24.1m. The full results of the 31 March
2003 valuation are not yet known, but early estimates suggest that the schemes
will be close to 100% funded. In accordance with SSAP 24, the Board considers it
appropriate for the last valuation to be adjusted for this change in the
valuation of the schemes' assets. This has given rise to the £3.0m pension
charge in the year due to the elimination of the prepayment held on the Company
balance sheet. The Group is planning to increase its cash pension contributions
to some £2.0m per annum, from £1.5m in 2002, with effect from the new financial
year to ensure the pension fund continues to be adequately funded.
A valuation on an FRS17 basis has also been prepared at 30 March 2003. This
showed a net deficit at 31 March 2003 of £31.7m. On an FRS17 basis the charge
to profits would have been £1.2m. At 31 March 2002 the FRS17 basis showed a net
surplus of £9.4m.
CHIEF EXECUTIVE'S REVIEW
BUSINESS STABILISATION
In December 2002, the Company was still suffering from the poor performance of
the distribution centre, working capital was not being managed sufficiently
tightly and the underlying strategy had fragmented with the UK stores business
delivering unacceptable returns. The supply chain was generating significant
availability problems and costs were unacceptably high.
Urgent priorities were identified to stabilise the business performance, and to
provide the foundation for delivery of the necessary turnaround. These were to:
(i) Address the distribution issues
A review of our Daventry warehouse was undertaken that identified areas of
significant performance improvement. We have re-negotiated our contract with
Tibbett & Britten, who operate the Daventry warehouse for us, which has
increased our flexibility and will drive down costs. Product availability has
improved by some 10%. However our more rigorous measurements show that
availability on our top 100 lines is currently still well below industry
averages at 75%. Costs have reduced from 8.0% of sales in the last year to a
current running rate of some 7% of sales. We anticipate a further reduction of
the running rate to some 6.5% by March 2004.
(ii) Strengthen the cash position
Changes to cash management were introduced that have resulted in a significant
uplift in our cash position together with a much tighter control over working
capital and costs. The effect of these initiatives has been to improve the
Company's cash position by some £12 million since December 2002, resulting in
net cash balances at the year end of £7.7 million.
(iii) Re-invigorate trading
In January 2003 new ranges were introduced that, coupled with an increase in
availability and the early results of our enhanced sourcing relationships,
improved performance. Our focus on full price trading together with buying our
best sellers in greater depth has resulted in the like for like sales increases
and improved margins which we have experienced for the first four months of the
calendar year.
TURNAROUND
In addition to working to stabilise the business, we have carried out an
operational review. The review looked at every aspect of the business in order
to define the turnaround programme which is now fully underway. Our plans are
focused on five key priorities: Store Proposition, Product and Sourcing, Supply
Chain, Customer Service and our Infrastructure.
Store Proposition
Over the last few years, Mothercare has invested time and resources in the
development of our out of town portfolio, which has performed well. However, at
the same time, the high street stores have suffered from a lack of attention and
clarity of the customer proposition. We have developed two merchandise
propositions Mother and Baby and Mothercare Lite. These are currently being
trialled together with different refit concepts.
Although the trials only started in April, customer feedback has been positive
and, from a financial perspective, the signs are also encouraging. A full
evaluation of the trials will be conducted before finally deciding on both the
merchandise proposition and store refit concept to rollout. We would anticipate
investing some £4m this year on the second stage of the trials programme this
Summer and the start of the roll out next Spring. We will anticipate the cost
of our high street refit programme will cost some £15m over the next three
years, this amount is included within our capital expenditure and funding plans.
Our out-of-town stores remain a key part of our store portfolio. Whilst our
current focus is on improving the high street, we do not need to invest
significant further capital in our out of town stores in the short term.
However, we expect the improvements we are making in the areas of product and
supply chain to lead to an enhanced performance of both the high street and
out-of-town stores.
Product and Sourcing
Improving our clothing range is critical to the successful development of the
business. We have taken urgent steps to improve our offer to meet customer
needs in design and quality and ensuring that the pricing strategy is right.
Our aim is to ensure we provide high quality basic items whilst reinvigorating
the contemporary and premium element of the range.
This strategy, supported by improved availability, and buying best sellers in
greater depth, is giving greater choice and clarity to the customer. Customer
response to the later phases of our Spring/Summer 2003 range shows that these
actions are having a beneficial impact. The nature of the clothing business
with seasonal ranges and lengthy lead times between design of product and its
availability to customers means that this process will take time. We continue
to focus on improving quality within our Home and Travel ranges, and Toys remain
an important part of the product offer.
Mothercare currently sources product from over 200 suppliers in 45 countries.
In order to simplify the process and improve efficiency, we will reduce our
global supply base progressively over the next three years.
Supply Chain
We have already taken urgent action to resolve the short-term distribution
issues. Our focus now is on designing and implementing a supply chain which
will support the future development of the business and significantly and
consistently improve our availability.
Mothercare currently has an overly complex supply chain. To address this, we
are undertaking a review to define the best route by product category from
factory to store, so that we can achieve seamless and cost-effective delivery of
products. Once this review is complete, we will then design a supply chain to
meet these requirements. This will be a challenging programme as it will
involve changes to our core logistics infrastructure and therefore we expect it
will take three years to fully implement. In the meantime, we are addressing
the cost base through efficiency and productivity improvements and implementing
measures to increase product availability and enhance data integrity.
Customer Service
Significantly improving our customer service is a vital step in turning round
Mothercare's performance. Following a review of what matters to our customers,
we have a clear view of the service they want. We are developing and putting in
place the procedures and providing our staff the necessary training, to deliver
these service levels in a consistent way.
Our objective is to provide enhanced customer service levels without additional
staff costs. Our analysis shows that our staff spend only some 40% of their
time on 'customer-facing' tasks. To address this imbalance we will eliminate
unnecessary tasks and improve their work processes. In the short term we will
need to invest in staff costs to make a difference to our customers whilst the
improvements in our underlying processes are made.
Infrastructure
Underpinning all these areas is the need to support the business through
appropriate management practices. We need to ensure they are best in class and
to upgrade our management disciplines to achieve consistent performance levels.
As part of this process we are looking at ways to apply the right resources and
management focus to the turnaround programme to ensure that the changes are
fully delivered to plan. In addition, because our core systems have lacked
investment, we are investing in new systems and planning to improve data
accuracy and to support the changes we need to make our business operate more
effectively.
To achieve a successful turnaround the business has to be more cost effective.
We are conducting a full review of the cost base of our business. Central costs
have already been reduced by some £2m on a full year basis and further savings
will come as we challenge all that we spend. In addition we have reviewed our
store portfolio and identified a limited number of stores that are loss making
and, despite all the improvements to trading we are making, will not achieve
acceptable levels of profitability. These stores are to be closed, further
reducing our cost base. The cost of making these changes, together with the
ongoing support of our turnaround programme, is expected to result in further
restructuring costs of approximately £1m in the year.
THE LONGER TERM FUTURE
We anticipate that it will take some three years to realise the full benefits of
the turnaround programme. The decisions we have taken will lead to sustainable
business performance improvements in the long term. Whilst our focus in the
medium term is on the turnaround, looking ahead, we believe there is
considerable opportunity to improve the profitability of the UK portfolio and
drive the potential of our International and Direct businesses.
CURRENT TRADING
Current trading is encouraging with UK like-for-like sales for the seven weeks
to 16 May 2003 up 2.8%. Gross margins have continued the improvement in
performance experienced in the second half of last year, reflecting the benefits
of better availability and our focus on full price trading.
Preliminary announcement of audited results
Group profit and loss account
For the 52 weeks ended 29 March 2003
52 weeks ended 29 March 2003 52 weeks ended 30 March 2002
__________________________________ __________________________________
Before Exceptional Before Exceptional
exceptional items exceptional items
items (note 1) Total items (note 1) Total
Note £ million £ million £ million £ million £ million £ million
________________________________________________________________________________________________________________
Turnover 431.7 - 431.7 426.9 - 426.9
Cost of sales (425.9) (0.9) (426.8) (401.9) - (401.9)
________________________________________________________________________________________________________________
Gross profit 5.8 (0.9) 4.9 25.0 - 25.0
Administrative expenses (25.5) (1.9) (27.4) (22.0) - (22.0)
________________________________________________________________________________________________________________
(Loss)/profit from retail (19.7) (2.8) (22.5) 3.0 - 3.0
operations
Exceptional items:
Loss on disposal of stores 1 - (2.4) (2.4) - - -
Provision for costs of 1 - - - - (4.1) (4.1)
separation
Interest (net) 2 0.1 - 0.1 1.2 - 1.2
________________________________________________________________________________________________________________
(Loss)/profit on ordinary
activities before taxation (19.6) (5.2) (24.8) 4.2 (4.1) 0.1
Taxation 3 - 10.0 10.0 - - -
________________________________________________________________________________________________________________
(Loss)/profit on ordinary
activities after taxation (19.6) 4.8 (14.8) 4.2 (4.1) 0.1
_______________________ _______________________
Dividends 4 - (1.7)
_______ ________
Retained loss for the financial (14.8) (1.6)
year
_______ ________
________________________________________________________________________________________________________________
(Loss)/earnings per share 5 (22.0p) 0.2p
(Loss)/earnings per share 5 (22.0p) 0.2p
diluted
________________________________________________________________________________________________________________
Group balance sheet
As at 29 March 2003 (30 March 2002)
_________ _________
2003 2002
£ £
Note million million
__________________________________________________________________________________________________
Fixed assets
Tangible assets 85.6 88.6
Investments 4.9 5.0
__________________________________________________________________________________________________
90.5 93.6
__________________________________________________________________________________________________
Current assets
Stocks 48.0 55.1
Debtors 25.6 35.2
Cash at bank and in hand 7.7 12.3
__________________________________________________________________________________________________
81.3 102.6
Creditors - amounts falling due within one year 6 (54.3) (65.3)
__________________________________________________________________________________________________
Net current assets 27.0 37.3
__________________________________________________________________________________________________
Total assets less current liabilities 117.5 130.9
Creditors - amounts falling due after one year 6 (2.2) (2.8)
Provisions for liabilities and charges 7 (4.7) (2.7)
__________________________________________________________________________________________________
Net assets 110.6 125.4
__________________________________________________________________________________________________
Capital and reserves attributable to equity interests
Called up share capital 35.3 35.3
Profit and loss account 75.3 90.1
__________________________________________________________________________________________________
Shareholders' funds 8 110.6 125.4
__________________________________________________________________________________________________
Group cash flow statement
For the 52 weeks ended 29 March 2003 (52 weeks ended 30 March 2002)
Note 2003 2003 2002 2002
£ £ £ £
million million million million
______________________________________________________________________________________________________________
Reconciliation of net cash inflow/(outflow)
from operating activities
(Loss)/profit from retail operations before
exceptional items (19.7) 3.0
Depreciation 14.3 11.6
Decrease/(increase) in stocks 3.8 (11.5)
Decrease/(increase) in debtors 4.7 (2.8)
Increase in creditors 9.0 2.8
Net cash outflow in respect of exceptional (3.8) (13.6)
costs
______________________________________________________________________________________________________________
Net cash inflow/(outflow) from operating 8.3 (10.5)
activities
______________________________________________________________________________________________________________
Net cash inflow/(outflow) from operating 8.3 (10.5)
activities
Returns on investments and servicing of finance
Interest received 0.5 1.3
Interest paid (0.4) (0.1)
______________________________________________________________________________________________________________
0.1 1.2
Taxation
Corporation tax - (0.1)
Capital expenditure
Purchase of tangible fixed assets (13.4) (10.7)
Sale of tangible fixed assets 1.4 -
______________________________________________________________________________________________________________
(12.0) (10.7)
______________________________________________________________________________________________________________
Trading cash outflow (3.6) (20.1)
______________________________________________________________________________________________________________
Acquisitions and disposals
Acquisition of own shares - (0.7)
Equity dividends paid (1.0) (1.7)
Management of liquid resources 6.1 3.9
Financing
Decrease in debt - (2.0)
______________________________________________________________________________________________________________
Increase/(decrease) in cash in the year 1.5 (20.6)
______________________________________________________________________________________________________________
Reconciliation of net cash flow to movement in
net funds
Increase/(decrease) in cash in the year 1.5 (20.6)
Cash flow from management of liquid resources (6.1) (3.9)
Cash flow from financing - 2.0
______________________________________________________________________________________________________________
Movement in net funds in the year (4.6) (22.5)
Net cash at the beginning of the year 12.3 34.8
______________________________________________________________________________________________________________
Net cash at the end of the year 7.7 12.3
______________________________________________________________________________________________________________
Analysis of net cash
2001 Cash 2002 Cash 2003
flow flow
£ £ £ £ £
million million million million million
________________________________________________________________________________________________________
Cash 26.8 (20.6) 6.2 1.5 7.7
Overdrafts - - - - -
________________________________________________________________________________________________________
Net cash 26.8 (20.6) 6.2 1.5 7.7
________________________________________________________________________________________________________
Cash flow from management of liquid
resources
Time deposits 10.0 (3.9) 6.1 (6.1) -
________________________________________________________________________________________________________
Decrease in debt
Obligations under finance leases
Due within one year (2.0) 2.0 - - -
________________________________________________________________________________________________________
Net cash 34.8 (22.5) 12.3 (4.6) 7.7
________________________________________________________________________________________________________
1 Exceptional items
The group incurred £2.8 million exceptional costs charged to profit from retail
operations during the year. These costs related to directors and head office
staff redundancy costs £1.9 million, store staff redundancies £0.1 million and
£0.8m one off costs incurred in renegotiating the group's warehouse and
distribution contract during the year.
The directors have conducted a full review of store profitability and identified
a number of stores which are not expected to achieve acceptable levels of
profitability. As a result, actions to close these stores commenced in February
2003. An exceptional charge of £3.1 million has been recognised to provide for
the loss on disposal of these stores. This has been offset by £0.7 million
profit on stores disposed during the year. The net exceptional cost of £2.4
million has been charged to loss before taxation.
In the 52 weeks ended 30 March 2002 exceptional costs of £4.1 million were
charged to profit before taxation in relation to the additional costs incurred
as a result of the warehouse transition. This was the last stage of the
reorganisation in relation to the disposal of Bhs that occurred in May 2000.
The tax effect of the above exceptional items is £nil (2002 - £nil).
A corporation tax provision of £10.0 million made in a prior year has been
released in the 52 weeks ended 29 March 2003 as an exceptional credit to the
profit and loss account. This provision related to outstanding tax issues from
the reorganisation of various property interests conducted in 1996/7. These
have now been resolved with the Inland Revenue.
2 Interest (net)
2003 2002
£ £
million million
______________________________________________________________________________________________________
Interest payable:
Bank loans and overdrafts (repayable within five years, not by instalments) (0.4) -
Obligations under finance leases (repayable within five years by instalments) - (0.1)
Interest receivable 0.5 1.3
______________________________________________________________________________________________________
0.1 1.2
______________________________________________________________________________________________________
3 Taxation
The credit for tax on loss/(profit) on ordinary activities
comprises:
2003 2002
£ £
million million
______________________________________________________________________________________________________
UK corporation tax at 30% (2002 - 30%) - -
Deferred tax - -
Exceptional release of prior year tax provision 10.0 -
(note 1)
______________________________________________________________________________________________________
10.0 -
______________________________________________________________________________________________________
The group had tax losses carried forward of approximately £58 million as at 29
March 2003 (2002 - £35 million).
4 Dividends
2003 2002
£ £
million million
_________________________________________________________________________________________________________
Interim paid of nil pence per ordinary share (2002 - 1.0p) - 0.7
Final proposed of nil pence per ordinary share (2002 - 1.5p) - 1.0
_________________________________________________________________________________________________________
- 1.7
_________________________________________________________________________________________________________
5 (Loss)/earnings per share
2003 2002
_______________________________________________________________________________________________________
Weighted average number of shares in issue 67.2m 67.2m
Dilution - option schemes - 0.9m
_______________________________________________________________________________________________________
Diluted weighted average number of shares in issue 67.2m 68.1m
_______________________________________________________________________________________________________
(Loss)/profit after tax (£14.8m) £0.1m
Exceptional items (net of tax) (£4.8m) £4.1m
_______________________________________________________________________________________________________
(Loss)/profit after tax before exceptional items (£19.6m) £4.2m
Basic (loss)/earnings per share (22.0p) 0.2p
(Loss)/earnings per share before exceptional items (29.2p) 6.3p
Diluted (loss)/earnings per share (22.0p) 0.2p
_______________________________________________________________________________________________________
6 Creditors - amounts falling due within one year and after one year
____________________
2003 2002
£ million £ million
________________________________________________________________________________________________________
Amounts falling due within one year
Trade creditors 27.8 27.0
Proposed dividend - 1.0
Corporation tax 0.9 10.9
Payroll and other taxes, including social security 3.1 1.4
Accruals and deferred income 20.7 23.6
Landlords' contributions 1.3 1.2
Other creditors 0.5 0.2
________________________________________________________________________________________________________
54.3 65.3
________________________________________________________________________________________________________
Amounts falling due after one year
Landlords' contributions 2.2 2.8
________________________________________________________________________________________________________
7 Provisions for liabilities and charges
Group
_________
2003 2002
£ million £ million
________________________________________________________________________________________________________
Deferred taxation (note 3) - -
Property provisions 4.7 2.7
________________________________________________________________________________________________________
4.7 2.7
________________________________________________________________________________________________________
The movement on property provisions can be analysed as follows:
Property
provisions
£ million
_________________________________________________________________________________________________________
Balance at 31 March 2002 2.7
Utilised in year (0.8)
Charged in year 2.8
_________________________________________________________________________________________________________
Balance at 29 March 2003 4.7
_________________________________________________________________________________________________________
Property provisions principally represent the costs of store disposals. Details
of the amount charged during the year are given in Note 1.
8 Reconciliation of movement in shareholders' funds
2003 2002
£ million £ million
_________________________________________________________________________________________________________
(Loss)/profit for the financial year (14.8) 0.1
Dividends - (1.7)
_________________________________________________________________________________________________________
Net decrease in shareholders' funds (14.8) (1.6)
Shareholders' funds at beginning of the year 125.4 127.0
_________________________________________________________________________________________________________
Shareholders' funds at end of the year 110.6 125.4
_________________________________________________________________________________________________________
Notes:
a. The results for the year have been prepared using accounting policies
which are consistent with the previous year.
b. The financial information set out above does not constitute the
Company's statutory accounts for the 52 weeks periods ended 29 March 2003 or 30
March 2002, but it is derived from those accounts. Statutory accounts for 2002
have been delivered to the Registrar of Companies and those for 2003 will be
delivered following the Company's annual general meeting. The auditors have
reported on those accounts; their reports were unqualified and did not contain
statements under s237 (2) or (3) Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 31st May 2024
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