Interim Results
Senior PLC
08 August 2002
Thursday 8 August 2002
Senior plc
Interim Results for the half-year ended 30 June 2002
HIGHLIGHTS Half-year to 30 June
2002 2001
TURNOVER FROM CONTINUING OPERATIONS £208.5m £240.3m
OPERATING PROFIT FROM CONTINUING OPERATIONS
- BEFORE GOODWILL AMORTISATION £12.6m £20.7m
- AFTER GOODWILL AMORTISATION £9.6m £17.6m
PROFIT BEFORE TAXATION £5.7m £9.7m
FREE CASHFLOW - PRE DIVIDENDS AND DISPOSAL OF BUSINESSES £10.6m £6.5m
NET BORROWINGS £109.3m £148.3m
EARNINGS PER SHARE BASED ON PROFIT BEFORE GOODWILL
AMORTISATION AND DISPOSAL OF BUSINESSES 2.35p 3.83p
INTERIM DIVIDEND PER SHARE 0.65p 1.84p
Commenting on the results, James Kerr-Muir, Chairman of Senior plc, said:
'Despite difficult market conditions, particularly in aerospace, the Group
achieved another substantial reduction in its debt level and continued to
improve the underlying performance of its businesses. This strengthening
position means the Group is now in much better condition to benefit from any
improvement in market conditions.'
For further information please contact:
Senior plc
Graham Menzies, Group Chief Executive 01923 714702
Mark Rollins, Group Finance Director 01923 714738
Finsbury Group
Charlotte Festing/Gordon Simpson 020 7251 3801
Internet users will be able to view this announcement on the web site:
www.seniorplc.com
Note to Editors:
Senior is an international manufacturing group with annual sales of around £425m
and with operations in 15 countries.
Senior designs, manufactures and markets high technology components and systems
for the principal original equipment producers in the worldwide aerospace,
automotive and specialised industrial markets.
Senior's policy is to enhance shareholder value by improving operating
performance and customer service levels and by developing its market positions
in the global aerospace and automotive industries.
Chairman's Statement
The aerospace and automotive markets remain the focus for Senior. Whilst these
markets continued to be challenging during the first half of 2002, particularly
in the Aerospace Division where the Group's exposure to declining levels of
commercial aircraft production adversely impacted performance, both the
automotive and aerospace markets provide excellent long term growth
opportunities for the Group. The Group's stated strategy of focusing on these
markets and reducing net debt through operational cashflows, supplemented by the
proceeds from the sale of operations within the Specialised Industrial Division,
remains unaltered.
In the six months to 30 June 2002, Group sales from continuing operations
declined to £208.5m (2001:£240.3m), broadly in line with expectations. The
Aerospace Division was responsible for the majority of the reduction. Operating
profits, from continuing operations before goodwill amortisation, declined to
£12.6m (2001:£20.7m) and underlying earnings per share to 2.35p (2001:3.83p) -
but this was ahead of the 1.68p achieved in the second half of 2001. Strong free
cash flow of £10.6m (2001:£6.5m), combined with the weakening US$, reduced the
Group's net debt to £109.3m (June 2001:£148.3m). The continuing net debt
reduction, £53m since the arrival of the current management team, demonstrates
the success of the policies put in place and also the transparent nature of the
Group's reported profits.
As indicated to shareholders at the end of 2001, the Board intends to pay an
interim dividend of approximately one-third of the total dividend expected for
the year. Accordingly, the Board has declared an interim dividend of 0.65p per
share (2001:1.84p), which will be paid on 29 November 2002 to shareholders on
the register on 1 November 2002.
I am pleased to announce the appointment of Mike Sheppard to the Board with
effect from 1 September 2002. Mike, a citizen of the United States, has worked
for Senior for a number of years, most recently as the Chief Executive of the
Automotive Division and the North American industrial operations.
Outlook
We expect the aerospace industry to remain close to its current level for at
least the next year, with increased demand in the military sector being offset
in the short term by further weakening in commercial aircraft production. The
automotive market and the industrial markets in which we operate are anticipated
to remain volatile due to the current global economic uncertainty. We remain
committed to our strategy of business improvement with cash generation and debt
reduction a continuing focus.
James Kerr-Muir
Chairman
7 August 2002
Chief Executive's Review
Overview
The first half of 2002 saw little sign of any significant economic recovery in
the two principal markets in which Senior operates. Airline passenger volumes
did improve during the period but they remained depressed compared with the
prior year and the majority of airlines reported increasing losses.
Consequently, and as anticipated, the demand for new commercial aircraft fell
dramatically. In Automotive, sales of light vehicles in North America declined
from an annualised rate of 17.0m vehicles in the first half of 2001 to 16.4m in
the first half of 2002. However, much lower inventory levels meant that
production levels were actually around 4% ahead of last year. In Europe, diesel
engines continued to gain market share but vehicle sales came under increasing
pressure during the period, with Germany particularly affected.
Against this background, the Group continues to focus on Aerospace and
Automotive, improving operational performance, developing new products for
future organic growth and reducing the level of debt. We are particularly
pleased to report that the Group's net debt has fallen by £39.0m (26%) in the
past 12 months despite the difficult trading conditions.
Financial Results
Sales from continuing operations fell 13.2% to £208.5m (2001:£240.3m),
reflecting the steep decline in the production of new commercial aircraft and
the previously reported ending of two North American automotive programmes in
the middle of last year. The £31.8m sales decline, partly offset by continued
cost reduction initiatives, resulted in operating profits from continuing
operations before goodwill amortisation declining to £12.6m (2001:£20.7m). The
resultant operating margin declined to 6.0% (2001:8.6%). There were no
exceptional costs in the period (2001:nil).
The net interest cost reduced by 33.3% to £3.6m (2001:£5.4m) as a result of
lower borrowing levels and reduced interest rates. Interest cover, calculated on
operating profits from continuing operations before goodwill amortisation, was
3.5 times (2001:3.8 times).
Profit on ordinary activities before taxation for the period was £5.7m (2001:
£9.7m) after interest, goodwill amortisation of £3.0m (2001:£3.1m), the absence
of any loss on disposal of businesses (2001:£2.8m loss) and other charges
totalling £0.3m (2001:£0.3m income).
With an underlying tax charge of 19.9% of taxable profits (2001:25.0%),
underlying earnings per share (excluding goodwill amortisation and losses on
disposal of businesses) was 2.35p, well down on the first half of 2001 (3.83p),
but ahead of the second half of 2001 (1.68p).
Free cashflow (cashflow from operations after net capital expenditure, interest
and tax but before acquisitions, disposals and dividend payments) was an inflow
of £10.6m (2001:£6.5m). Total cashflow was £9.7m (2001:£3.0m).
The majority of the Group's borrowings are denominated in US$, to match the
Group's US$ assets. The weakening US$ (June 2002 $1.52:£; December 2001 $1.46:
£), resulted in a beneficial net debt currency impact of £3.7m in the six month
period. This, and the strong operating cash inflow, resulted in Group net debt
declining to £109.3m at the period end (June 2001:£148.3m) representing gearing
of 86% (June 2001:116%).
Aerospace
Sales in the Aerospace Division, which fell by 18.9% to £82.4m (2001:£101.6m),
represented 40% of the Group's sales from continuing businesses. The
year-on-year sales decline was broadly as anticipated and mainly due to the
sharp reductions in production of commercial aircraft and engines, in particular
Boeing where deliveries for 2002 are forecast at around 380 aircraft compared to
the 527 delivered in 2001. A strike at Bombardier during April and the lack of a
substantial recovery in the semi-conductor market also adversely impacted the
Division. More positively, military activity was modestly ahead and the new
facility in Mexico, whilst not yet profitable, continued to attract much
interest.
The Division's operating profit, before goodwill amortisation, fell to £3.0m
(2001:£10.2m) as three of the more profitable operations saw the steepest sales
declines and Ketema's recovery plateaued. Despite the general industry turmoil,
Ermeto (France) and Composites (USA) recorded modest profit improvements and the
ongoing managerial and operational improvement initiatives at SSP (USA) began to
deliver results.
BWT (UK) moved into its new factory at Easter with little disruption, and plans
remain on schedule for Ermeto to do likewise in August. These investments,
together with broad operational improvements and the growing market presence of
Senior Aerospace, will benefit the Group in the future, particularly when the
aerospace industry returns to its long term growth trend.
Automotive
Sales in the Automotive Division declined by 11.5% to £79.5m (2001:£89.8m). As
indicated at the 2001 year end, the Automotive Division now includes the results
of the Group's German operation, Senior Automotive Kassel, whose industrial base
is being used as a platform for future automotive activity. It also includes the
results of the industrial business in Bartlett, Chicago, following its merger,
in late 2001, with its much larger Automotive business already operating on the
same site. The effect of these moves was to increase the first half 2001 sales
comparative by £16.9m from the £72.9m reported at the interim stage last year.
The Division now represents 38% of the Group's sales from continuing activities.
Although a sales decline was anticipated, because of the ending of two North
American programmes in the middle of last year, continuing interest-free
incentives offered by the North American motor manufacturers supported sales of
finished vehicles such that the Division's sales decline was less than planned.
The operations in India, South Africa and France each saw sales improvements as
the industry moved to lower cost locations and diesel engines again increased
market share. The Brazilian business, however, had lower sales, as the South
American economy struggled, and volumes at the new plant in the Czech Republic
were disappointing.
The Division's operating profit, before goodwill amortisation, was £7.6m (2001:
£8.9m) as the £10.3m sales decline was largely offset by cost savings, much of
which arose as a result of the merger of the two Bartlett operations. The prior
year operating profit comparative includes £1.2m in respect of the Kassel and
Bartlett industrial businesses.
Product development is important for the future of the Division and work in this
area was maintained particularly in relation to exhaust gas recycling coolers
and fuel applications such as high pressure fuel lines, flexible fuel rails and
fuel rail dampers, for which the first North American order was booked.
Specialised Industrial
Sales for the Division, which now exclude the two businesses transferred to the
Automotive Division, declined on a comparative basis by 5.8% to £46.8m (2001:
£49.7m) and represent 22% of the Group's sales from continuing businesses.
Despite the sales decline, Divisional operating profits, on continuing
operations before goodwill amortisation, increased by 25.0% to £2.0m (2001:
£1.6m) as two of the larger operations, Pathway and Hargreaves, reported
improved performances. The general industrial markets in Europe, however,
remained difficult.
Whilst no disposals were made in the period, the Group's strategy of focusing on
Aerospace and Automotive remains unchanged and potential disposal discussions
continue.
Future Prospects
Although the volume of commercial aircraft being manufactured has declined
significantly in 2002, with a further decline likely in 2003, the longer term
prospects for the industry are good with passenger volumes expected to increase
on average by around 5% per annum. Senior's Aerospace operations generally have
little after-market business, because of the non-wearing nature of their parts,
and hence they largely depend on the new-build market. This exposure is
currently causing a number of challenges but, longer term, it offers excellent
prospects. In the near term, the growing market presence of Senior Aerospace,
continued operational improvements, increasing profitability in the Mexican
operation and stronger defence activity all offer profit improvement
opportunities. It is expected that the second half of 2002 will begin to benefit
from some of these factors.
Automotive production volumes were relatively healthy in the first half of 2002,
particularly in diesel engines and in North America (supported by the zero
interest rate initiatives). More recently there have been some signs of weakness
in continental Europe and there is a growing concern that the American consumer
may become more cautious. This, and the occurrence of Summer and Christmas
shutdowns, is likely to result in the second half being quieter than the first.
The longer term prospects for the Division are encouraging with the Group's low
cost operations, in particular South Africa and India, proving of interest to
its customers and the product development pipeline beginning to show results.
In the Specialised Industrial Division efforts continue to improve the
performance of each and every business regardless of the ongoing disposal
activity.
After a period of relative stability, the US$ has shown recent signs of
weakening. If the recent rate of $1.57:£ were to remain for the rest of the year
then, on translation into sterling and when compared to the rates seen in the
first half of 2002, the Group's reported operating profits for the whole of 2002
would be adversely affected by approximately £0.8m but the reported net debt
would see a further reduction of some £3.0m.
Irrespective of market conditions, management is focused on finding ways to grow
the business long term and to improve the quality, performance and value of the
Group.
Graham Menzies
Chief Executive
7 August 2002
Group Profit and Loss Account
for the half-year ended 30 June 2002 (unaudited)
Half-year Half-year Year
Notes June 2002 June 2001 2001
£m £m £m
Turnover
Total continuing operations 208.5 240.3 452.8
Discontinued operations 2 - 9.8 10.9
1 208.5 250.1 463.7
Operating profit before exceptional items
Continuing operations 12.6 20.7 34.3
Amortisation of goodwill (3.0) (3.1) (6.2)
Total continuing operations 9.6 17.6 28.1
Discontinued operations 2 - - 0.1
9.6 17.6 28.2
Exceptional items
Reorganisation and rationalisation charges - continuing
operations - - (2.9)
Impairment of goodwill - - (4.0)
1 - - (6.9)
Total operating profit
Continuing operations 9.6 17.6 21.2
Discontinued operations 2 - - 0.1
1 9.6 17.6 21.3
Share of operating profit in associated undertaking - 0.3 0.3
Amortisation of goodwill on associated undertaking - (0.1) (0.1)
(Loss)/profit on sale of fixed assets - continuing (0.3) 0.1 0.1
operations
Loss on disposal of discontinued operations 3 - (1.1) (0.8)
Loss on disposal of associated undertaking - 4 - (1.7) (1.5)
discontinued
Profit on ordinary activities before interest and 9.3 15.1 19.3
taxation
Other interest receivable and similar income 0.4 0.2 0.7
Interest payable and similar charges (4.0) (5.6) (10.5)
Profit on ordinary activities before taxation 5.7 9.7 9.5
Tax on profit on ordinary activities 5 (1.8) (3.9) (5.1)
Profit for the financial period 3.9 5.8 4.4
Dividends (2.0) (5.6) (6.1)
Profit/(loss) for the period 1.9 0.2 (1.7)
Earnings per share 6
Basic 1.28p 1.90p 1.46p
Diluted 1.28p 1.89p 1.45p
Underlying 2.35p 3.83p 5.51p
Dividends per share 0.65p 1.84p 2.00p
Group Balance Sheet
as at 30 June 2002 (unaudited)
30 June 30 June 31 Dec
2002 2001 2001
restated
£m £m £m
Fixed assets
Intangible assets - goodwill 93.1 111.2 98.4
Tangible assets 99.1 106.1 102.7
Investments 0.2 0.2 0.2
192.4 217.5 201.3
Current assets
Stocks 52.4 58.7 52.2
Debtors: amounts falling due after more than one year 3.4 3.5 3.6
Debtors: amounts falling due within one year 77.3 107.9 75.1
Cash at bank and in hand 6.1 10.8 14.9
139.2 180.9 145.8
Creditors: amounts falling due within one year (88.8) (116.4) (92.0)
Net current assets 50.4 64.5 53.8
Total assets less current liabilities 242.8 282.0 255.1
Creditors: amounts falling due after more than one (113.4) (150.3) (127.5)
year
Provisions for liabilities and charges (2.7) (3.4) (2.5)
Net assets 126.7 128.3 125.1
Capital and reserves
Called-up share capital 30.7 30.7 30.7
Share premium 3.5 3.5 3.5
Other reserves 17.7 17.7 17.7
Profit and loss account 74.8 76.4 73.2
Equity shareholders' funds 126.7 128.3 125.1
Reconciliation of Movements in Shareholders' Funds
for the half-year ended 30 June 2002 (unaudited)
Notes Half-year Half-year Year
June 2002 June 2001 2001
Restated
£m £m £m
At beginning of period as previously reported 125.1 123.6 123.6
Prior year adjustment (FRS19 'Deferred Tax') 8 - 0.4 0.4
At beginning of period as restated 125.1 124.0 124.0
Profit for the financial period 3.9 5.8 4.4
Dividends (2.0) (5.6) (6.1)
Goodwill previously written off - 3.5 3.6
Currency variations (0.3) 0.6 (0.8)
At end of period 126.7 128.3 125.1
Group Cash Flow Statement
for the half-year ended 30 June 2002 (unaudited)
Half-year Half-year Year
Notes June 2002 June 2001 2001
£m £m £m
Net cash inflow from operating activities 7 a) 21.2 16.2 46.9
Dividend income from associated undertaking - 0.1 0.2
Returns on investments and servicing of finance
Interest received 0.3 0.4 0.7
Interest paid (4.1) (5.3) (10.4)
Net cash outflow from returns on investments and servicing (3.8) (4.9) (9.7)
of finance
Taxation
UK corporation tax recovered/(paid) 0.1 (0.3) (0.4)
Overseas tax (paid)/recovered (0.9) 2.6 7.4
(0.8) 2.3 7.0
Capital expenditure and financial investments
Purchase of tangible fixed assets (6.7) (8.0) (16.5)
Sale of property, plant and equipment 0.7 0.9 0.9
Net cash outflow from capital expenditure and financial (6.0) (7.1) (15.6)
investments
Acquisitions and disposals
Purchase of subsidiary undertakings - deferred consideration (0.4) (0.5) (0.6)
Sale of subsidiary undertakings - 6.3 6.6
Sale of associated undertaking - - 5.9
Net cash disposed on sale of subsidiary undertakings - (0.1) (0.4)
Net cash (outflow)/inflow from acquisitions and disposals (0.4) 5.7 11.5
Dividends paid on ordinary shares (0.5) (9.3) (15.0)
Net cash inflow before financing 9.7 3.0 25.3
Financing
New loans initiated by Group 7 b) 2.4 33.8 32.3
Repayments of existing loans 7 b) (20.0) (41.6) (57.6)
(17.6) (7.8) (25.3)
Decrease in cash in the period 7 c) (7.9) (4.8) -
Group Statement of Total Recognised Gains and Losses
for the half-year ended 30 June 2002 (unaudited)
Half-year Half-year Year
June 2002 June 2001 2001
£m £m £m
Profit for the financial period 3.9 5.8 4.4
Currency translation differences on overseas assets and (0.3) 0.6 (1.3)
goodwill
Tax benefits on foreign exchange losses - - 0.5
Total recognised gains and losses relating to the period 3.6 6.4 3.6
Prior year adjustment (FRS 19 'Deferred Tax') 0.4
Total gains and losses recognised since last annual accounts 4.0
There is no material difference between the profits as reported and those profits restated on an historical cost basis.
Notes to the Interim Financial Statements
for the half-year ended 30 June 2002 (unaudited)
1. Segmental information in respect of turnover and operating profit:
a) By class of business
Turnover Operating profit
Half-year Half-year Year Half-year Half-year Year
June June 2001 June June 2001
2002 2001 2002 2001
£m £m £m £m £m £m
Aerospace 82.4 101.6 196.8 1.2 8.4 12.8
Automotive 79.5 89.8 160.0 7.1 8.3 6.6
Specialised Industrial 46.8 49.7 97.0 1.3 0.9 1.8
Total 208.7 241.1 453.8 9.6 17.6 21.2
Inter-segment sales (0.2) (0.8) (1.0) - - -
Total continuing 208.5 240.3 452.8 9.6 17.6 21.2
operations
Discontinued operations - 9.8 10.9 - - 0.1
208.5 250.1 463.7 9.6 17.6 21.3
Operating profits shown above are stated after charging £nil (2001 half-year - £nil; 2001 year - £6.9m) of exceptional
items and £3.0m (2001 half-year - £3.1m; 2001 year - £6.2m) of goodwill amortisation. These are attributed to the
segments as follows:
Exceptional items Goodwill amortisation
Half-year Half-year Year Half-year Half-year Year
June June 2001 June June 2001
2002 2001 2002 2001
£m £m £m £m £m £m
Aerospace - - 1.6 1.8 1.8 3.6
Automotive - - 5.1 0.5 0.6 1.1
Specialised Industrial - - 0.2 0.7 0.7 1.5
Total continuing operations - - 6.9 3.0 3.1 6.2
Discontinued operations - - - - - -
- - 6.9 3.0 3.1 6.2
b) By geographical market
Turnover by origin Operating profit by origin
Half-year Half-year Year Half-year Half-year Year
June June 2001 June June 2001
2002 2001 2002 2001
£m £m £m £m £m £m
North America 132.7 158.0 295.0 8.6 13.2 19.9
United Kingdom 33.6 40.3 76.7 0.6 3.1 5.5
Rest of Europe 38.6 38.1 73.4 (0.4) 0.3 (2.1)
Rest of World 8.1 9.1 16.3 0.8 1.0 (2.1)
Total 213.0 245.5 461.4 9.6 17.6 21.2
Inter-segment sales (4.5) (5.2) (8.6) - - -
Total continuing 208.5 240.3 452.8 9.6 17.6 21.2
operations
Discontinued operations - 9.8 10.9 - - 0.1
208.5 250.1 463.7 9.6 17.6 21.3
Operating profits shown above are stated after charging £nil (2001 half-year - £nil; 2001 year - £6.9m) of
exceptional items and £3.0m (2001 half-year - £3.1m; 2001 year - £6.2m) of goodwill amortisation. These are
attributed to the segments as follows:
Exceptional items Goodwill amortisation
Half-year Half-year Year Half-year Half-year Year
June June 2001 June June 2001
2002 2001 2002 2001
£m £m £m £m £m £m
North America - - 2.4 1.5 1.6 3.2
United Kingdom - - 0.2 1.2 1.2 2.4
Rest of Europe - - 0.3 0.1 0.1 0.2
Rest of World - - 4.0 0.2 0.2 0.4
Total continuing operations - - 6.9 3.0 3.1 6.2
Discontinued operations - - - - - -
- - 6.9 3.0 3.1 6.2
c) Total exceptional items
Half-year Half-year Year
June 2002 June 2001 2001
£m £m £m
Reorganisation and rationalisation charges - continuing - - 2.9
operations
Impairment of goodwill previously recognised on acquisition of
Brazilian
operations - - 4.0
- - 6.9
2. 2001 discontinued operations reflect the turnover and operating results of Polenz GmbH, Senior Air Systems,
Senior Flexonics Australia Pty. Limited and Senior Flexonics New Zealand Limited, all of which were sold during 2001,
and Senior Flexonics (Singapore) Pte. Limited which was closed in 2001.
3. The 2001 loss on disposal of discontinued operations relates to the disposal of Polenz GmbH in March 2001, of
the Senior Air Systems business in June 2001 and of Senior Flexonics Australia Pty. Limited and Senior Flexonics New
Zealand Limited in October 2001.
4. The 2001 loss on disposal of associated undertaking relates to the disposal of the Group's total investment in
associated undertakings, a 20% shareholding in Techno Flex Company Limited, in June 2001.
5. Tax on profit on ordinary activities for the half-year to 30 June 2002 has been charged at 19.9% on profit
before amortisation and impairment of goodwill and losses on disposal of discontinued operations, being the estimated
rate applicable for the year ended 31 December 2002 (2001 half-year - 25.0%; 2001 year - 23.2%), and includes £1.8m in
respect of overseas taxation (2001 half-year - £3.9m; 2001 year - £4.8m).
6. The calculations of basic earnings per share and underlying earnings per share are shown below and have been
based on the weighted average number of ordinary shares in issue and ranking for dividend during the period.
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue on
the assumption of conversion of all dilutive potential ordinary shares. The Group has only one category of
dilutive potential ordinary shares, being those share options granted where the exercise price is less than the
average price of the Company's ordinary shares during the period.
The provision of an underlying earnings per share has been included to identify the performance of operations
before amortisation and impairment of goodwill, profit or loss on sale of fixed assets and losses on disposal of
discontinued operations and associated undertakings.
Earnings per share Earnings
Half-year Half-year Year Half-year Half-year Year
June June 2001 June June 2001
2002 2001 2002 2001
p p p £m £m £m
Basic profit on ordinary
activities
after taxation 1.28 1.90 1.46 3.9 5.8 4.4
Adjust:
Amortisation of goodwill 0.97 1.01 2.01 3.0 3.1 6.2
Amortisation of goodwill on
associated undertaking - 0.04 0.03 - 0.1 0.1
Impairment of goodwill - - 1.30 - - 4.0
Loss/(profit) arising on sale
of fixed
assets 0.10 (0.05) (0.03) 0.3 (0.1) (0.1)
Loss on disposal of
discontinued
operations - 0.38 0.26 - 1.1 0.8
Loss on disposal of associated
undertaking - 0.55 0.48 - 1.7 1.5
Taxation attributable to above
adjustments - - - - - -
Underlying earnings 2.35 3.83 5.51 7.2 11.7 16.9
Weighted average number of
shares
- basic 306.5m 306.5m 306.5m
- diluted 306.7m 307.6m 307.1m
- underlying 306.5m 306.5m 306.5m
Earnings per share
- basic 1.28p 1.90p 1.46p
- diluted 1.28p 1.89p 1.45p
- underlying 2.35p 3.83p 5.51p
7. Group Cash Flow Statement
a) Reconciliation of operating profit to net cash inflow from operating activities
Half-year Half-year Year
June 2002 June 2001 2001
£m £m £m
Group operating profit 9.6 17.6 21.3
Depreciation of tangible fixed assets 9.2 9.5 18.4
Amortisation of goodwill 3.0 3.1 6.2
Impairment of goodwill - - 4.0
Increase in working capital (0.6) (14.0) (3.0)
Net cash inflow from operating activities 21.2 16.2 46.9
b) New loans initiated by Group include new draw downs under the existing revolving credit facility.
Likewise, repayments of existing loans include the repayment of amounts previously drawn down under the same
facility.
c) Analysis of net debt
At 1 Jan Cashflow Exchange At 30 June
2002 movement 2002
£m £m £m £m
Cash 14.9 (8.9) 0.1 6.1
Overdrafts (1.5) 1.0 - (0.5)
13.4 (7.9) 0.1 5.6
Debt due within one year (9.8) 7.6 (0.2) (2.4)
Debt due after one year (125.7) 11.3 3.9 (110.5)
Finance leases (0.6) (1.3) (0.1) (2.0)
Total (122.7) 9.7 3.7 (109.3)
8. These Interim Financial Statements, which were approved by the Board of Directors on 7 August 2002, have
been prepared in accordance with the accounting policies set out in the Group's 2001 Annual Accounts.
Comparative figures for the half-year to 30 June 2001 have been restated to reflect the early adoption of
Financial Reporting Standard No. 19 'Deferred Tax' in the Group's 2001 Annual Accounts. The effect on the
Group's previously reported results for the first half of 2001 and the net assets as at 30 June 2001 has been
immaterial in respect of the profit for the period but to increase net assets by £0.4m.
These Interim Financial Statements have neither been audited nor reviewed by the Auditors.
9. The financial information for the year ended 31 December 2001 has been extracted from the statutory
accounts which have been filed with the Registrar of Companies. The Auditors' report on these accounts was
unqualified and did not contain any statement under Section 237 (2) or (3) of the Companies Act 1985.
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- 1 hour ago Earnz
- 1 hour ago Wetherspoon (J.D.)
- 1 hour ago Informa
- 2 hours ago Dowlais Group