Interim Results
Norcros PLC
16 November 2007
Norcros plc
("Norcros", the "Group" or the "Company")
Interim Results for the 6 months to 30 September 2007
Norcros, the home consumer products group with operations primarily in the UK
and South Africa, which was listed on the London Stock Exchange's main market on
16 July 2007, today announces a strong set of interim results for the six months
to 30 September 2007 with a significant increase in profit and cash generation.
Highlights
H1 2007 H1 2006 % change
Revenue £84.3 m £81.2 m +3.8
Trading Profits* £9.2 m £8.0 m +15.0
Profit before tax** £6.1 m*** £4.1 m +48.8
Earnings per share** 6.23 p*** 7.40 p -15.8
Net cash generated from operations £10.8 m £6.3 m +71.4
* Operating profit before exceptional costs and other operating income
** Pre-exceptionals
*** Including the effects of the new capital structure
• Strong growth in both UK and South Africa
• Good performance across all three business segments
• Net debt reduced by £68.4m to £44.5m following flotation
• Trading profit margins increased to 10.9% from 9.9%
• Interim dividend of 0.56p payable 11 January 2008
John Brown, Chairman, commented:
"I am pleased to report that the Group has made good progress during the first
six months of the year across all our business segments. We continue to invest
in both capital and revenue programmes to support the long term growth of the
business and the Board is confident that the initiatives already taken and those
planned for the second half of the year will reinforce the quality of the
business and that further progress will be made."
16 November 2007
ENQUIRIES
Norcros plc Tel: 01625 547700
Joe Matthews, Group Chief Executive
Nick Kelsall, Group Finance Director
Altium Tel: 0161 831 9133
Phil Adams
Mike Fletcher
College Hill Tel: 020 7457 2020
Mark Garraway
Matthew Gregorowski
For further information please visit the Company website:
www.norcros.com
I am pleased to report that the Group has made good progress during the six
months to 30 September 2007, recording a significant increase in trading profit
and profit before tax and exceptional items compared with the corresponding
period in 2006.
Results
The Group reported an increase in revenue of 3.8% to £84.3m (2006: £81.2m).This
result reflects growth in all three geographical segments. Reported revenue was
adversely impacted by a weakening in the South African Rand to Sterling exchange
rate. At constant exchange rates revenue increased by 7.4%.
Group trading profits increased by 15.0% to £9.2m (2006: £8.0m) with
improvements across all three geographical areas. At constant exchange rates
trading profits increased by 17.9%. Trading profit margins increased to 10.9%
from 9.9%. Group profit before tax and exceptional items increased by 48.8% to
£6.1m (2006: £4.1m), reflecting the improvements in trading performance and the
reduction in net finance costs from £4.4m to £3.3m. The latter is a result of
the reduction in net borrowings following the listing of the Company's shares on
16 July 2007 and the consequent refinancing of the previous debt facilities. The
exceptional charge of £3.8m in the period relates to the write off of
capitalised costs relating to the previous debt facilities. Group profit before
tax was £2.3m (2006: £4.1m). Basic earnings per share before exceptional items
decreased to 6.23p (2006: 7.40p) reflecting the significant increase in the
number of shares in issue following the listing.
Financial
On 16 July 2007 the Company's shares were admitted to the Official List of the
UK Listing Authority and the London Stock Exchange's main market. 128,802,669
ordinary shares were placed at 78p per share raising £100.5m in total, of which
£72.0m (after expenses) was raised for the Company. These net proceeds were
applied in reducing borrowings and repaying shareholder loans.
Norcros remains focused on maximising operating cash flows and investing in the
businesses for future growth. Net cash generated from operations in the period
was £10.8m (2006: £6.3m) and investment in capital expenditure and acquisitions
was £6.6m (2006: £2.5m) including the balance of the consideration of £3.8m
relating to the acquisition of the freehold interests in 14 and the leasehold
interests in 2 of the Tile Africa stores which were previously leased.
Consequently, net borrowings reduced from £112.9m at 31 March 2007 to £44.5m at
30 September 2007 with equity gearing of 39%.
Dividend
An interim dividend of 0.56p per share has been declared in respect of the
period 16 July to 30 September 2007. The dividend is payable on 11 January 2008
to shareholders on the register on 7 December 2007. The shares will be quoted
ex-dividend on 5 December 2007.
Operating Review
UK
Total revenues in the UK businesses increased by 3.7% from £51.6m to £53.5m with
an increase in trading profits of 7.8% from £6.4m to £6.9m. Each of the three UK
businesses recorded an uplift in revenues and trading profit.
At Triton, the market leading domestic shower operation, revenues grew by 3.8%
with UK revenues increasing by 6.5%. The growth in the UK was partially offset
by a decline in Ireland, Triton's biggest export market, which largely accounted
for the overall reduction in export revenues of 6.0%. Triton recorded UK revenue
growth in both the trade and retail channels. Volumes with national and
independent merchants were boosted by increased specification contracts. Trading
with the DIY and home shopping retail accounts showed a strong increase. Tight
cost management and selective sales price increases helped to offset input cost
pressures and sustain margins. Triton continues to invest significantly in new
product development, marketing and promotional programmes including a TV
sponsorship campaign in early September. Triton has retained its leading
position in the electric shower market as well as growing its share in the mixer
market.
In H & R Johnson, a leading UK manufacturer and supplier of ceramic tiles and
tile adhesives, overall tile revenues increased by 2.9%. UK tile revenues
increased by 8.4% reflecting strong growth in the DIY channel and continued good
progress in the trade channel. As anticipated, this was partially offset by a
decline in export tile revenues of 20.3% as the contract to supply the Dubai
International Airport nears completion.
The UK tile revenue growth reflects the benefits of the business's investment in
highly successful new product ranges and through specification gains in the
contract sector on the back of more focussed sales and marketing programmes and
the government's Decent Homes initiative. The success in the contract sector has
been supported by the launch of a new contract product range.
Excluding the Middle East market, tile revenues in the export markets increased
by 13.4%, reflecting success in the USA following cost effective local stocking
and in France where revenues have grown significantly following investment in
new product ranges and point of sale merchandise. Margins improved over the
comparable period although this advance was limited by lower than expected
manufacturing throughput. Action has been taken to improve manufacturing yield
and some modest capital investment made to reduce product cost and improve
efficiency.
In our recently established UK adhesives business, significant progress has been
made in growing revenues and achieving a profitable platform. Revenues increased
by 32% whilst the business recorded its first monthly profit earlier this year.
The core strategy of developing a Johnson Tile branded adhesive in the contract
and house builder market is proving successful. At the design stage, architects
and specifiers are finding the integrated concept attractive and a key
initiative is to focus on the contractors and fixers to ensure that the
specification is secured. Investment in an adhesive and grout manufacturing
facility at a cost of approximately £1.0m on the H & R Johnson tile
manufacturing site is progressing to plan with final commissioning anticipated
by Q1 next year. This will improve quality control, customer service and
profitability.
South Africa
Our South African operations have demonstrated strong progress with revenues
increasing by 15.0% to £27.6m and trading profits increasing by 41.2% to £2.4m
on a constant currency basis. Reported results show revenues and trading profits
increasing by 3.0% and 26.3% respectively reflecting the translation impact of
the South African Rand to Sterling exchange rate between the comparable periods.
Trading profits included a £0.2m profit on disposal of the Roodeport retail
store following its closure.
Our retail operation, Tile Africa, has made excellent progress with revenue
growth on a constant currency basis of 16.9% resulting in a significant year on
year improvement in trading profit. Considerable work has been undertaken to
improve and expand the retail estate with four additional stores secured:
Rivonia, a store with an innovative new format, was opened in August 2007;
Paarden Island opened in October 07; and Witbank commenced trading earlier this
month. A fourth store at Pomona is scheduled to be opened in March 2008. In
addition in September 2007 we purchased the George store, which was previously a
franchise operation, for a consideration of £0.25m. The improvement and
expansion of our retail estate is a priority and discussions are ongoing in
relation to other targeted sites. Simultaneously, we have upgraded three of our
existing stores and plan to complete a further four upgrades in Q4 of the
financial year. We have also invested in a new retail business information
system which will support the expansion and development of this operation.
In Johnson Tiles, our tile manufacturing operation, constant currency revenue
growth has been more modest at 4.5% reflecting disruption in trade with a number
of independent customers and delays in product development. In addition
profitability has been impacted by cost increases in energy and raw materials.
Action has been taken to expedite the product development programme and increase
the flexibility of the plant to produce larger and high specification porcelain
tiles to meet customer demand.
TAL, our adhesive operation, has continued to build sales on the back of new
product introductions. Total revenues, in constant currency, increased by 12.5%
reflecting strong growth in the tile adhesive and industrial adhesive segments
with more modest growth in the building products segment. In the industrial
segment TAL has been successful in achieving a strong market position in the
pressure sensitive and hot melt adhesive areas, largely driven by in-house
developed technology. The recent commissioning of a new hot melt plant has
secured new business in the roofing insulation field. TAL produces a number of
screeding and adhesive products for the soft flooring market and has recently
introduced its first pumpable self levelling screed product which has generated
considerable interest. Profits in TAL have been maintained in line with
expectations.
Rest of the World
Johnson Tiles, our wholly owned subsidiary in Australia selling tiles under the
Johnson brand, has continued to make substantial progress following the
reorganisation last year. Revenues on a constant currency basis increased by
10.3% and on a reported basis by 14.3%. The business recorded a trading loss of
£0.1m for the period compared with a loss of £0.3m in the comparable period last
year and in the last two months of the period the business recorded a profit. A
key success has been the launch of the "Johnson Home Heating" product range
which in addition to having sales potential in its own right has facilitated the
cross-selling of ceramic wall and floor tiles. Plans are also in place to launch
the first programmable heated towel rail following very positive customer
reaction.
Prospects
We have made good progress across all our business segments in the first half of
the year and we continue to invest in both capital and revenue programmes to
support the long term growth of the business.
Trading since the end of September has been in line with expectations.
Notwithstanding the broader economic concerns regarding the UK housing market
and the slower rate of consumer spending in both the UK and South Africa, the
Board is confident that the initiatives already taken and those planned for the
second half of the year will reinforce the quality of the business and that
further progress will be made.
A copy of the Norcros interim accounts for the 6 months to 30 September is
available on the Company's website www.norcros.com.
John Brown
Chairman
15 November 2007
Consolidated interim income statements
Notes Six months to Six months to Year to 31
30 Sept 2007 30 Sept 2006 March 2007
(unaudited) (unaudited)
£m £m £m
Revenue 84.3 81.2 162.4
Operating profit 9.3 8.2 14.1
Trading profit* 9.2 8.0 15.3
Exceptional operating items 3 - - (1.5)
Other operating income 0.1 0.2 0.3
Operating profit 9.3 8.2 14.1
Finance costs 5 (4.9) (6.1) (12.0)
Exceptional write off of costs of raising 5 (3.8) - -
previous debt finance
Finance income 5 1.6 1.7 3.4
Share of profit of associates 0.1 0.3 0.4
Profit before taxation 2.3 4.1 5.9
Taxation (0.4) (0.4) (1.0)
Profit for the period attributable to 1.9 3.7 4.9
equity shareholders
Earnings per share
Basic 2.08p 7.40p 9.80p
Diluted 2.07p 7.40p 9.80p
* Trading profit is defined as operating profit before exceptional operating
items and other operating income.
Consolidated interim statements of recognised income and expense
Six months to Six months to Year to 31
30 Sept 2007 30 Sept 2006 March 2007
(unaudited) (unaudited)
£m £m £m
Profit for the period 1.9 3.7 4.9
Actuarial losses on pension (2.2) (1.2) (7.1)
schemes
Foreign currency translation and 0.6 (6.1) (5.9)
other adjustments
Total recognised income and 0.3 (3.6) (8.1)
expense for the period
attributable to equity
shareholders
Consolidated interim balance sheets
As at
Notes 30 Sept 2007 30 Sept 2006 31 March 2007
(unaudited) (unaudited)
£m £m £m
Non-current assets
Goodwill 22.2 22.0 22.0
Investment in associates 4.3 4.1 4.1
Financial assets 4.3 4.3 4.3
Trade investments 4.4 4.4 4.4
Property, plant and equipment 46.1 41.2 42.5
Investment properties 5.8 5.8 5.8
Deferred tax asset 1.1 1.7 1.5
88.2 83.5 84.6
Current assets
Inventories 33. 8 27.9 30.8
Trade and other receivables 33.2 31.5 32.3
Derivative financial instruments 0.6 0.2 0.5
Cash and cash equivalents 4.8 3.3 4.1
72.4 62.9 67.7
Current liabilities
Trade and other payables (39.8) (32.8) (35.0)
Current tax liabilities (0.6) (0.8 (0.8)
Financial liabilities - borrowings 6 (1.9) (7.3) (5.8)
(42.3) (40.9) (41.6)
Net current assets 30.1 22.0 26.1
Total assets less current liabilities 118.3 105.5 110.7
Non-current liabilities:
Financial liabilities - borrowings 6 47.4 72.8 75.3
Shareholder loans - 34.3 35.9
Other non current liabilities 1.8 1.9 2.1
Provisions 12.3 8.2 13.6
61.5 117.2 126.9
Financed by:
Ordinary share capital 7 14.9 0.1 0.1
Share premium 8 63.4 5.5 5.5
Retained earnings and other reserves 8 (21.5) (17.3) (21.8)
Total shareholders' equity 56.8 (11.7) (16.2)
118.3 105.5 110.7
Consolidated interim cash flow statements
Notes Six months to Six months to Year to 31
30 Sept 2007 30 Sept 2006 March 2007
(unaudited) (unaudited)
£m £m £m
Cash generated from operations 9 10.8 6.3 14.1
Income taxes paid (0.2) (0.6) (1.3)
Interest received 0.2 0.2 0.3
Interest paid (3.7) (3.8) (6.9)
Net cash generated from operating activities 7.1 2.1 6.2
Cash flows from investing activities
Acquisition of businesses (0.2) - -
Dividends from associates and trade investments 0.1 0.2 0.3
Purchase of property, plant and equipment (6.4) (2.5) (6.2)
Proceeds from sale of property, plant and 0.4 0.3 0.3
equipment
Net cash (used in) investing activities (6.1) (2.0) (5.6)
Cash flows from financing activities
Repayments of borrowings (126.0) (10.6) (12.6)
Drawdown of borrowings 53.6 5.1 9.5
Net cash received from issue of shares* 72.2 - -
Net cash (used in) financing activities (0.2) (5.5) (3.1)
Net increase/(decrease) in cash at bank and in 0.8 (5.4) (2.5)
hand and bank overdrafts
Cash at bank and in hand and bank overdrafts at 2.1 5.1 5.1
beginning of the period
Exchange movements on cash and bank overdrafts - (0.6) (0.5)
Cash at bank and in hand and bank overdrafts at 2.9 (0.9) 2.1
end of period
*Includes £72.0m generated from admission of the Company to the London Stock
Exchange's main market and £0.2m from a previous sale of shares.
Notes to the Accounts
1. Accounting policies
The principal accounting policies applied in the preparation of this interim
report are included in the financial statements for the year ended 31 March 2007
and in the prospectus dated 11 July 2007. These policies have been applied
consistently to all periods presented, unless otherwise stated.
The following new standards, amendments to standards or interpretations are
mandatory for the first time for the financial year ending 31 March 2008.
- IFRIC 11, IFRS 2 - Group and treasury share transactions. This
interpretation is not relevant for the group.
- IFRIC 8, Scope of IFRS 2. This interpretation is not relevant for the
group.
- IFRIC 10,Interims and impairment. This interpretation has not had any
effect on the timing or recognition if impairment losses.
The following new standards, amendments to standards and interpretations have
been issued but are not yet effective for the financial year ending 31 March
2008, and have not been early adopted.
- IFRIC 8, Operating segments.
Basis of preparation
This condensed consolidated financial information for the six months ended 30
September 2007 has been prepared in accordance with the Disclosure and
Transparency Rules of the Financial Services Authority and with IAS 34 "Interim
financial reporting" as adopted by the European Union.
The condensed consolidated financial report should be read in conjunction with
the Annual Report and Financial Statements for the year ended 31 March 2007,
which have been prepared in accordance with IFRSs as adopted by the European
Union. This Annual Report was approved by the board on 10 July 2007 and
delivered to the registrar of Companies. The report of the auditors on the
Financial Statements was unqualified and did not contain any statement under
section 237 of the Companies Act 1985.
Accounting estimates and judgements
The preparation of condensed consolidated financial information required
management to make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amount of income, expense,
assets and liabilities. The significant estimates and judgements made by
management were consistent with those applied to the consolidated financial
statements for the year ended 31 March 2007.
2. Segmental Reporting
Six months to 30 September 2007
UK South Africa Rest of world Group
£m £m £m £m
Revenue 53.5 27.6 3.2 84.3
Trading profit 6.9 2.4 (0.1) 9.2
Other operating income - - 0.1 0.1
Operating profit 6.9 2.4 - 9.3
Finance costs (4.9)
Exceptional write off of costs of raising (3.8)
previous debt finance
Finance income 1.6
Share of profit of associates 0.1
Profit before taxation 2.3
Taxation (0.4)
Profit from continuing operations 1.9
Segment assets 109.4 45.2 6.0 160.6
Unallocated assets 1 1.1
Total assets 161.7
Segment liabilities (41.3) (12.4) (1.3) (55.0)
Unallocated liabilities 2 (49.9)
Total liabilities (104.9)
Capital expenditure 1.0 5.2 - 6.2
Depreciation 1.9 0.9 - 2.8
1 Unallocated assets include deferred tax assets.
2 Unallocated liabilities include borrowings and tax liabilities.
2. Segmental reporting continued
Six months to 30 September 2006
UK South Africa Rest of Group
world
£m £m £m £m
Revenue 51.6 26.8 2.8 81.2
Trading profit 6.4 1.9 (0.3) 8.0
Other operating income 0.2 0.2
Operating profit 6.4 1.9 (0.1) 8.2
Finance costs (6.1)
Finance income 1.7
Share of profit of associates 0.3
Profit before taxation 4.1
Taxation (0.4)
Profit from continuing operations 3.7
Segment assets 106.4 32.9 5.4 144.7
Unallocated assets 1.7
Total assets 146.4
Segment liabilities (30.8) (10.5) (1.6) (42.9)
Unallocated liabilities (115.2)
Total liabilities (158.1)
Capital expenditure 1.9 0.2 - 2.1
Depreciation 1.8 0.8 0.1 2.7
1 Unallocated assets include deferred tax assets.
2 Unallocated liabilities include borrowings and tax liabilities
2. Segmental reporting continued
Year to 31 March 2007
UK South Rest of Group
Africa world
£m £m £m £m
Revenue 105.8 51.2 5.4 162.4
Trading profit 12.1 4.0 (0.8) 15.3
Exceptional operating items (1.3) (0.2) (1.5)
Other operating income - 0.3 0.3
Operating profit 10.8 4.0 (0.7) 14.1
Finance costs (12.0)
Finance income 3.4
Share of profit of associates 0.4
Profit before taxation 5.9
Taxation (1.0)
Profit from continuing operations 4.9
Segment assets 110.3 35.6 4.9 150.8
Unallocated assets 1 1.5
Total assets 152.3
Segment liabilities (40.6) (9.3) (0.8) (50.7)
Unallocated liabilities 2 (117.8)
Total liabilities (168.5)
Capital expenditure 3.0 2.9 - 5.9
Depreciation 3.8 1.7 0.1 5.6
1 Unallocated assets include deferred tax assets
2 Unallocated liabilities include borrowings and tax liabilities.
3. Exceptional operating items
Six months to 30 Six months to 30 Year to 31
Sept 2007 Sept 2006 March 2007
(unaudited) (unaudited)
£m £m £m
Past service pension credits - - 5.0
Restructuring - - (0.1)
Property provisions - - (6.0)
Aborted transaction costs - - (0.4)
- - (1.5)
4. Earnings per share
Six months to 30 Six months to 30 Year to 31
Sept 2007 Sept 2006 March 2007
(unaudited) (unaudited)
£m £m £m
Profit for the period 1.9 3.7 4.9
Exceptional items included in the above 3.8 - 1.5
Earnings before exceptional items 5.7 3.7 6.4
Weighted average number of shares:
For basic earnings per share 91,532,769 49,984,786 49,984,786
Exercise of share options 348,308 - -
For diluted earnings per share 91,881,077 49,984,786 49,984,786
Earnings per share
Basic 2.08p 7.40p 9.80p
Diluted 2.07p 7.40p 9.80p
Earnings per share before exceptional items
Basic 6.23p 7.40p 12.80p
Diluted 6.20p 7.40p 12.80p
5. Finance income and costs
Six months to 30 Six months to 30 Year to
Sept 2007 Sept 2006 31 March 2007
(unaudited) (unaudited)
£m £m £m
Finance costs:
Interest payable on bank borrowings 3.1 3.4 6.9
Interest payable on shareholder loans 1.1 1.6 3.2
Amortisation of costs of raising debt finance 0.4 0.6 1.3
Movement on fair value of derivative financial 0.1 0.3 0.2
instruments
Discount on property lease provisions 0.2 0.2 0.4
Total finance costs 4.9 6.1 12.0
Finance income:
Bank interest receivable (0.2) (0.2) (0.5)
IAS 19 net finance income (1.2) (1.2) (2.4)
Movement on fair value of derivative financial (0.2) (0.3) (0.5)
instruments
Total finance income (1.6) (1.7) (3.4)
Finance costs - net 3.3 4.4 8.6
Exceptional write off of costs of raising 3.8 - -
previous debt finance
6. Borrowings
As at
30 Sept 30 Sept 31 March
2007 2006 2007
£m £m £m
Non-current
Bank borrowings (secured):
Bank loans 47.9 76.4 78.4
Less costs of raising finance (0.5) (3.6) (3.1)
47.4 72.8 75.3
Shareholder Loans - 34.3 35.9
Total non-current 47.4 107.1 111.2
Current
Bank borrowings(secured):
Bank overdrafts 1.9 4.2 2.0
Bank loans - 4.3 4.9
1.9 8.5 6.9
Less costs of raising finance - (1.2) (1.1)
1.9 7.3 5.8
Total borrowings 49.3 114.4 117.0
The fair value of bank loans equals their carrying amount, as they bear interest
at floating rates. The fair value of shareholder loans is not materially
different to their carrying value.
The repayment terms of borrowings are as follows: As at
30 Sept 30 Sept 31 March
2007 2006 2007
£m £m £m
Not later than one year 1.9 8.5 6.9
Costs of raising finance - (1.2) (1.1)
1.9 7.3 5.8
After more than one year:
Later than one year and not later than two years - 5.2 6.0
Later than two years and not later than five years 47.9 21.2 25.4
Later than five years - 84.3 82.9
Costs of raising finance (0.5) (3.6) (3.1)
47.4 107.1 111.2
Total borrowings 49.3 114.4 117.0
Bank borrowings are secured by the Group's assets.
7. Ordinary called up share capital
As at
30 Sept 30 Sept 31 March
2007 2006 2007
£000 £000 £000
Authorised
871,250 'A' ordinary shares of 1p each - 8 8
5,468,750 'B' ordinary shares of 1p each - 55 55
200,000,000 ordinary shares of 10p each 20,000 - -
20,000 63 63
Issued and fully paid
600,000 'A' ordinary shares of 1p each - 6 6
5,250,000 'B' ordinary shares of 1p each - 52 52
148,717,884 ordinary shares of 10p each 14,872 - -
14,872 58 58
8. Shareholders' funds and statement of changes in shareholders' equity
(i) Six months to 30 September 2007
Ordinary share Share premium Translation Retained Total
capital reserve losses
£m £m £m £m £m
At 1 March 2007 0.1 5.5 (3.6) (18.2) (16.2)
Actuarial loss on pension - - - (2.2) (2.2)
scheme
Profit for the period - - - 1.9 1.9
Issue of new shares 14.8 57.9 - - 72.7
Exchange differences - - 0.6 - 0.6
At 30 September 2007 14.9 63.4 (3.0) (18.5) 56.8
(ii) Six months to 30 September 2006
Ordinary Share premium Translation Retained Total
share capital reserve losses
£m £m £m £m £m
At 31 March 2006 0.1 5.5 2.3 (16.0) (8.1)
Actuarial loss on pension scheme - - - (1.2) (1.2)
Profit for the period - - - 3.7 3.7
Exchange differences - - (6.1) - (6.1)
At 30 September 2006 0.1 5.5 (3.8) (13.5) (11.7)
(iii) Year to 31 March 2007
Ordinary Share Translation Retained Total
share premium reserve losses
capital
£m £m £m £m £m
At 31 March 2006 0.1 5.5 2.3 (16.0) (8.1)
Actuarial loss on pension scheme - - - (7.1) (7.1)
Profit for the period - - - 4.9 4.9
Exchange differences - - (5.9) - (5.9)
At 31 March 2007 0.1 5.5 (3.6) (18.2) (16.2)
9. Consolidated cash flow statements
a) Cash generated from operations
Six months to Six months to Year to
30 Sept 2007 30 Sept 2006 31 March 2007
(unaudited) (unaudited)
£m £m £m
Profit before taxation 2.3 4.1 5.9
Adjustments for:
Exceptional items included in the above - - 1.5
Cash flows from exceptional items (1.5) (1.0) (2.1)
Other operating income (0.1) (0.2) (0.3)
Depreciation 2.8 2.7 5.6
Lump sum pension contributions (1.0) - -
(Profit)/Loss on disposal of property, plant (0.2) - -
and equipment
Finance costs 4.9 6.1 12.0
Exceptional write off of costs of raising 3.8 - -
previous debt finance
Finance income (1.6) (1.7) (3.4)
Share of profit of associates (0.1) (0.3) (0.4)
Exchange differences - (0.2) (0.2)
Operating cash flows before movement in working 9.3 9.5 18.6
capital
Changes in working capital:
(Increase) in inventories (3.0) (3.0) (5.0)
(Increase) in trade and other receivables (1.2) (2.0) (1.4)
Increase in payables 5.7 1.8 1.9
Cash generated from operations 10.8 6.3 14.1
b) Outflow related to exceptional items
This includes expenditure charged to exceptional provisions relating to business
rationalisation and restructuring including severance and other employee costs.
c) Analysis of net debt
Net cash Net debt Total
£m £m £m
At 1 April 2006 5.1 (116.1) (111.0)
Cash flow (2.5) 3.1 0.6
Other non cash movements - (4.5) (4.5)
Exchange movement (0.5) 2.5 2.0
At 31 March 2007 2.1 (115.0) (112.9)
At 1 April 2006 5.1 (116.1) (111.0)
Cash flow (5.4) 5.5 0.1
Other non cash movements - (2.3) (2.3)
Exchange movement (0.6) 2.7 2.1
At 30 September 2006 (0.9) (110.2) (111.1)
At 1 April 2007 2.1 (115.0) (112.9)
Cash flow 0.8 72.4 73.2
Other non cash movements - (4.8) (4.8)
Exchange movement - - -
At 30 September 2007 2.9 (47.4) (44.5)
This information is provided by RNS
The company news service from the London Stock Exchange
Tuesday, 14th May 2024
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