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Ulster T.V. PLC (UTV)

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Monday 20 September, 2004

Ulster T.V. PLC

Interim Results


Ulster Television plc

('UTV' or 'the Company' or 'the Group')

Interim Statement

for the six months ended 30 June 2004

UTV GROUP PROFIT UP 29% FOR FIRST SIX MONTHS

Ulster Television plc, the multimedia group which broadcasts television and
radio and provides internet services throughout Ireland announces its interim
results for the six months to 30 June 2004.

Financial Highlights

  * Group profit before taxation and goodwill amortisation up by 29% to £8.0m
    (2003: £6.2m).
   
  * Profit before taxation up by 45% to £6.2m (2003: £4.3m).
   
  * Group turnover up by 17% to £30.1m (2003: £25.7m).
   
  * Television operating profit up by 32% to £7.2m (2003: £5.5m).
   
  * Diluted adjusted earnings per share up by 26% to 10.57p (2003: 8.42p).
   
  * Dividend increased by 9.8% to 4.5p.
   
Operational Highlights

  * Television advertising revenue increased by 16% compared with a 3.8%
    increase for ITV.
   
  * UTV achieved a record share of 2.67% (2003: 2.36%) of the ITV advertising
    market outperforming the network for the fifth successive year.
   
  * Radio advertising revenue grew by 4.8%.
   
  * Successful relaunch of Dublin radio station as Q102.
   
  * New Media revenue increased by 56% to £2.5m (2003: £1.6m)
   
Key Dates

  * 1 October 2004: - record date for payment of dividends
   
  * 18 October 2004: - payment of dividends.
   
Commenting on the results, John B McGuckian, Chairman, UTV said:

'I am pleased to announce another set of strong financial results with good
progress being made across all operating divisions. Television, in particular,
continued to significantly outperform peer groups, achieving yet another record
share of ITV network revenue. The excellent television advertising revenue
performance of the first half has continued into the third quarter, which is
expected to record growth of 14%, well ahead of the anticipated increase for
the ITV market of 4%.

'New media revenue grew by an impressive 56%, with strong growth continuing
into the third quarter which is expected to be up by 30%. Our experience in
introducing innovative internet and telecommunications packages for consumers
across Ireland and leveraging the UTV brand enabled us to launch on 26 August a
stand-alone telecoms product, UTV Talk, which offers customers significant
savings on their telephony costs. As with broadband, customer acquisition costs
for UTV Talk are incurred at the early stages, but initial reaction to this
product has been very positive and we would anticipate further strong revenue
growth in 2005.

'Our Dublin radio station was successfully relaunched as Q102 and the latest
research data confirmed a significant improvement in both reach and share.
Third quarter revenue at Q102 is expected to be up by 6%, almost matching the
7% increase anticipated for that quarter at our radio stations in Limerick and
Cork.'

A presentation to analysts will be held at 9.30am today. To register for the
presentation please contact Tom Kelly at Stakeholder Communications on 07767
393250.

For further information contact:

Ulster Television plc

John McCann, Group Chief Executive 028 9026 2202

Jim Downey, Group Finance Director 028 9026 2176

Orla McKibbin, Head of Press and PR 028 9026 2188

Stakeholder Communications

Tom Kelly, Managing Director 020 7493 3716

Chairman's Statement

Introduction

Your company made excellent progress in the first 6 months of 2004. A sustained
recovery in television advertising revenue gave us another record share of the
ITV market, our radio stations in Cork and Limerick performed well, listeners
responded positively to the relaunch of our Dublin radio station as Q102 and
UTV Internet continued to achieve impressive revenue growth as broadband
penetration accelerated throughout the island of Ireland.

Results and Dividend

Operating profit before goodwill amortisation was up by 22% to £8.6m (2003 : £
7.0m), with television operating profit particularly strong at £7.2m (2003 : £
5.5m). New media operating profit was maintained at £0.5m (2003 : £0.5m) while
radio operating profit was lower at £0.9m (2003 : £1.0m). With a reduced net
interest charge of £0.5m (2003 : £0.7m) and a loss of £0.1m (2003 : loss of £
0.1m) in joint ventures, the group profit before taxation and goodwill
amortisation was up by 29% to £8.0m (2003 : £6.2m).

Your Board has declared an Interim dividend of 4.50p (2003 : 4.10p) which
represents a 9.8% increase over last year. The dividend will be paid on 18
October 2004 to all shareholders on the Register at the close of business on 1
October 2004.

Television

Our television operations continued to significantly outperform the ITV network
with a 16% increase in advertising revenue for the six month period compared to
a 3.8% increase for the network as a whole, giving us a record share of 2.67%
(2003 : 2.36%) of the ITV market. Most categories of television advertising
revenue experienced good growth throughout the first half but, as expected, the
growth was particularly strong in the second quarter with the European soccer
championship stimulating additional demand. This revenue performance lifted
television operating profits by 32% in the half year to 30 June 2004.

Radio

Advertising revenue in our Cork and Limerick radio stations grew by a
creditable 9% in the first half year. This was offset by underperformance in
our Dublin radio station where the listenership decline of 2003 impacted
negatively on advertising revenue in the early months of this year. The costs
associated with the successful relaunch of this station as Q102 in February of
2004 further constrained profitability, delivering an operating profit for the
radio division as a whole which was below the comparative figure for the first
half of last year.

New Media

Revenues in this division grew by an impressive 56% in the 6 months under
review, with much of that growth driven by an increase in broadband customers.
As I have previously stated, greater broadband penetration is our key objective
but customer acquisition costs do reduce margins in the early stages. Despite
these costs and a one-off credit of £0.14m in the comparative figure new media
operating profits were maintained at the same level as last year.

Prospects

The excellent television advertising revenue performance of the first half has
continued into the third quarter which is expected to record growth of 14%,
well ahead of the anticipated increase for the ITV market of 4%. The
indications for October are that our television advertising revenue will be up
by 15%, even though the comparative figure last year benefited from the
inclusion of Rugby World Cup advertising demand. The year as a whole,
therefore, should record another significant outperformance of our television
peer group.

In radio, the turnaround in Dublin Q102's listenership performance was affirmed
by the publication of the Joint National Listenership Research (JNLR) data on
19 August. For the six months to the end of June 2004, Q102 increased its reach
from 9% to 13% and its market share from 5% to 7%. These latest figures
confirmed an improving trend in listenership performance first noted at the
publication of the interim JNLR figures in February this year. This stronger
listenership is beginning to have a positive impact on advertising revenue at
Q102 which is expected to be up by 6% in the third quarter.

Our radio stations in Cork and Limerick also recorded improvements in
listenership, further strengthening their market leading positions in those
areas. Third quarter revenue at those two stations is expected to be up by 7%.

New media revenue continues to grow strongly with turnover expected to be up by
30% in the third quarter. Broadband uptake underpins this growth but our
experience in introducing innovative internet and telecommunications packages
for consumers across Ireland and leveraging the UTV brand also enabled us to
launch on 26 August a stand-alone telecoms product, UTV Talk, which offers
customers significant savings on their telephony costs. As with broadband,
customer acquisition costs for UTV Talk are incurred at the early stages, but
initial reaction to this product has been very positive and we would anticipate
further strong revenue growth in 2005.

John B McGuckian

Chairman

20 September 2004

Group Profit & Loss Account

for the six months ended 30 June 2004

                                                   Unaudited            Audited
                                                                               
                                               Six months ended      Year ended
                                                                               
                                                    30 June         31 December
                                                                               
                                                  2004      2003           2003
                                                                               
                                         Notes   £'000     £'000          £'000
                                                                               
Turnover                                                                       
                                                                               
Group and share of joint ventures'              30,478    25,842         54,384
turnover                                                                       
                                                                               
Less share of joint ventures' turnover           (351)     (168)          (423)
                                                                               
                                                ______    ______   ____________
                                                                               
Group turnover - continuing operations     2    30,127    25,674         53,961
                                                                               
                                                ______    ______   ____________
                                                                               
Operating profit before goodwill                 8,564     7,038         15,139
amortisation                                                                   
                                                                               
Amortisation of goodwill                   3   (1,760)   (1,727)        (3,777)
                                                                               
                                                ______    ______   ____________
                                                                               
Group operating profit - continuing        2     6,804     5,311         11,362
operations                                                                     
                                                                               
Share of operating loss in joint                  (96)     (100)          (186)
ventures                                                                       
                                                                               
Share of joint venture goodwill            3      (69)         -           (42)
amortisation                                                                   
                                                                               
Amortisation of goodwill arising from                -     (270)          (270)
investment in joint venture                                                    
                                                ______    ______   ____________
                                                                               
Profit on ordinary activities before             6,639     4,941         10,864
interest and taxation                                                          
                                                                               
Net interest payable                       4     (462)     (672)        (1,328)
                                                                               
                                                ______    ______   ____________
                                                                               
Profit on ordinary activities before             6,177     4,269          9,536
taxation                                                                       
                                                                               
Taxation on profit on ordinary             5   (2,250)   (1,693)        (3,615)
activities                                                                     
                                                                               
                                                ______    ______   ____________
                                                                               
Profit on ordinary activities after              3,927     2,576          5,921
taxation                                                                       
                                                                               
Minority Interest                                   18      (62)           (48)
                                                                               
                                                ______    ______   ____________
                                                                               
Profit for the period attributable to            3,945     2,514          5,873
the group                                                                      
                                                                               
Ordinary dividends                             (2,440)   (2,193)        (5,349)
                                                                               
                                                ______    ______   ____________
                                                                               
Transfer to reserves                             1,505       321            524
                                                                               
                                                ______    ______   ____________
                                                                               
Earnings per share                         6                                   
                                                                               
Diluted                                          7.24p     4.76p         10.91p
                                                                               
Basic (FRS 14)                                   7.36p     4.77p         11.09p
                                                                               
Adjusted                                        10.77p     8.55p         18.81p
                                                                               
Diluted adjusted                                10.57p     8.42p         18.39p
                                                                               
                                                ______    ______   ____________
                                                                               
Dividend per share                               4.50p     4.10p         10.00p
                                                                               
                                                ______    ______   ____________
                                                                               
Group Statement of Total Recognised Gains and Losses                           
                                                                               
                                                 £'000     £'000          £'000
                                                                               
Profit for the financial period                  4,075     2,619          6,122
excluding joint ventures                                                       
                                                                               
Share of joint ventures' loss for the            (130)     (105)          (249)
period                                                                         
                                                                               
                                                ______    ______   ____________
                                                                               
Profit for the period attributable to            3,945     2,514          5,873
the group                                                                      
                                                                               
Exchange difference on retranslation of        (2,583)     3,478          4,320
net assets of subsidiary undertakings                                          
(excluding borrowings)                                                         
                                                                               
Exchange difference on retranslation of          1,605   (2,144)        (2,690)
borrowings                                                                     
                                                                               
                                                ______    ______   ____________
                                                                               
Total recognised gains and losses for            2,967     3,848          7,503
the period                                                                     
                                                                               
                                                ______    ______   ____________

Group Balance Sheet

at 30 June 2004

                                                 Unaudited              Audited
                                                                               
                                                  30 June           31 December
                                                                               
                                               2004        2003            2003
                                                                               
                                  Notes       £'000       £'000           £'000
                                                                               
Fixed Assets                                                                   
                                                                               
Intangible assets - goodwill        3        43,987      49,249          47,964
                                                                               
Tangible assets                               8,706       9,123           8,894
                                                                               
Investment in joint ventures                  1,001         419           1,151
                                                                               
Other investments                                 1           1               1
                                                                               
                                            _______     _______    ____________
                                                                               
                                             53,695      58,792          58,010
                                                                               
                                            _______     _______    ____________
                                                                               
Current assets                                                                 
                                                                               
Stocks                                        3,637       2,688           3,533
                                                                               
Debtors                                      11,783      10,927          11,718
                                                                               
Short-term cash deposits            7         1,330       5,179           2,413
                                                                               
Cash at bank and in hand            7         3,708         723           2,569
                                                                               
                                            _______     _______    ____________
                                                                               
                                             20,458      19,517          20,233
                                                                               
                                            _______     _______    ____________
                                                                               
Creditors - due within one year                                                
                                                                               
Creditors                                  (14,109)    (12,756)        (13,970)
                                                                               
Loans                               7       (8,266)     (6,255)         (5,681)
                                                                               
Convertible loan notes              7             -     (3,362)         (1,684)
                                                                               
                                            _______     _______    ____________
                                                                               
                                           (22,375)    (22,373)        (21,335)
                                                                               
                                            _______     _______    ____________
                                                                               
Net current liabilities                     (1,917)     (2,856)         (1,102)
                                                                               
                                            _______     _______    ____________
                                                                               
Total assets less current                    51,778      55,936          56,908
liabilities                                                                    
                                                                               
Creditors - due after one year                                                 
                                                                               
Loans                               7      (19,382)    (27,838)        (26,668)
                                                                               
Amounts due for film rights                   (156)       (159)           (170)
                                                                               
Provision for liabilities and                 (271)       (332)           (294)
charges                                                                        
                                                                               
                                            _______     _______    ____________
                                                                               
                                             31,969      27,607          29,776
                                                                               
Minority interests                               25         (8)               7
                                                                               
                                            _______     _______    ____________
                                                                               
Net assets                                   31,994      27,599          29,783
                                                                               
                                            _______     _____ _    ____________
                                                                               
Shareholders' funds                                                            
                                                                               
Called-up equity share capital                2,710       2,638           2,674
                                                                               
Share premium account                         3,873         584           2,226
                                                                               
Revenue reserves                             25,411      24,377          24,883
                                                                               
                                            _______     _______    ____________
                                                                               
Equity shareholders' funds          8        31,994      27,599          29,783
                                                                               
                                            _______     _____ _    ____________

Group Statement of Cash Flows

for the six months ended 30 June 2004

                                                   Unaudited             Audited
                                                                                
                                                Six months ended      Year ended
                                                                                
                                                    30 June          31 December
                                                                                
                                                 2004       2003            2003
                                                                                
                                       Note     £'000      £'000           £'000
                                                                                
Net cash inflow from operating           9      9,799      5,854          13,463
activities                                                                      
                                                                                
Returns on investments and servicing            (495)      (258)         (1,307)
of finance                                                                      
                                                                                
Taxation paid                                 (2,097)    (2,496)         (3,429)
                                                                                
Capital expenditure & financial                 (732)    (1,042)         (2,482)
investment                                                                      
                                                                                
Acquisitions                                     (58)    (1,206)         (1,866)
                                                                                
Equity dividends paid                         (3,156)    (2,978)         (5,171)
                                                                                
                                              _______     ______    ____________
                                                                                
Cash inflow/(outflow) before use of             3,261    (2,126)           (792)
liquid resources and financing                                                  
                                                                                
Decrease in cash on deposit                     1,038        471           2,307
                                                                                
Financing                                     (3,096)      (763)         (2,915)
                                                                                
                                              _______     ______    ____________
                                                                                
Increase/(decrease) in cash in the              1,203    (2,418)         (1,400)
period                                                                          
                                                                                
                                              _______     ______    ____________
                                                                                
Reconciliation of net cash flow to                                              
movement in net debt                                                            
                                                                                
                                                £'000      £'000           £'000
                                                                                
Increase/(decrease) in cash in the              1,203    (2,418)         (1,400)
period                                                                          
                                                                                
Cash inflow from decrease in cash on          (1,038)      (471)         (2,307)
deposit                                                                         
                                                                                
Cash outflow from repayment of loans            3,096        763           2,997
                                                                                
                                              _______     ______    ____________
                                                                                
Change in net debt arising from cash            3,261    (2,126)           (710)
flows                                                                           
                                                                                
Net debt acquired on acquisition                    -      (111)           (157)
                                                                                
Financial liability waived from a                   -        144             144
third party                                                                     
                                                                                
Conversion of loan notes                        1,684          -           1,678
                                                                                
Translation difference                          1,496    (2,035)         (2,581)
                                                                                
                                              _______     ______    ____________
                                                                                
Movement in net debt in the period              6,441    (4,128)         (1,626)
                                                                                
Opening net debt                             (29,051)   (27,425)        (27,425)
                                                                                
                                              _______     ______    ____________
                                                                                
Closing net debt                             (22,610)   (31,553)        (29,051)
                                                                                
                                              _______     ______    ____________

Notes to the Unaudited Interim Financial Information

at 30 June 2004

1. Basis of preparation

The interim financial information has been prepared on the basis of the
accounting policies set out in the Company's 2003 statutory accounts.

Although the interim results are unaudited, the auditors have carried out a
review of this Interim Statement. The results for the year ended 31 December
2003 are an abridged extract of the Company's full accounts which have been
filed with the registrar of Companies and on which the auditors have issued an
unqualified report. The financial information contained in this Statement does
not constitute full accounts within the meaning of Article 262 of the Companies
(Northern Ireland) Order 1986.

2. Segmental analysis

The group operates in three principal areas of activity - commercial
television, radio and new media - all of which are continuing operations.
Turnover is generated principally from the UK and Ireland with all radio
activity generated in the Republic of Ireland.

Turnover, group operating profit on ordinary activities before tax and net
assets are analysed as follows:

                                         Total    Intersegmental    Sales to    
                                                                                
                                         Sales             Sales           Third
                                                                         Parties
                                         £'000             £'000                
                                                                           £'000
                                                                                
(a)  Turnover                                                                   
                                                                                
     Six months ended 30 June 2004                                              
                                                                                
     Television                         23,007             (147)          22,860
                                                                                
     Radio                               4,788               (9)           4,779
                                                                                
     New Media                           2,520              (32)           2,488
                                                                                
                                       _______           _______         _______
                                                                                
     Total                              30,315             (188)          30,127
                                                                                
                                       _______           _______         _______
                                                                                
     Six months ended 30 June 2003                                              
                                                                                
     Television                         19,511             (121)          19,390
                                                                                
     Radio                               4,723              (30)           4,693
                                                                                
     New Media                           1,621              (30)           1,591
                                                                                
                                       _______           _______         _______
                                                                                
     Total                              25,855             (181)          25,674
                                                                                
                                       _______           _______         _______
                                                                                
     Year ended 31 December 2003                                                
                                                                                
     Television                         40,469             (335)          40,134
                                                                                
     Radio                              10,120              (58)          10,062
                                                                                
     New Media                           3,825              (60)           3,765
                                                                                
                                       _______           _______         _______
                                                                                
     Total                              54,414             (453)          53,961
                                                                                
                                       _______           _______         _______

(b)   Group Operating Profit                   Unaudited                Audited
                                                                               
                                           Six months ended          Year ended
                                                                               
                                                30 June             31 December
                                                                               
                                           2004           2003             2003
                                                                               
                                          £'000          £'000            £'000
                                                                               
      Group operating profit before                                            
      amortisation of goodwill                                                 
                                                                               
      Television                          7,190          5,466           11,750
                                                                               
      Radio                                 842          1,041            2,514
                                                                               
      New Media                             532            531              875
                                                                               
                                        _______        _______          _______
                                                                               
      Total                               8,564          7,038           15,139
                                                                               
      Amortisation of goodwill                                                 
                                                                               
      Television                              -              -                -
                                                                               
      Radio                             (1,370)        (1,421)          (2,883)
                                                                               
      New Media                           (390)          (306)            (894)
                                                                               
                                        _______        _______          _______
                                                                               
      Total                             (1,760)        (1,727)          (3,777)
                                                                               
      Group operating profit                                                   
                                                                               
      Television                          7,190          5,466           11,750
                                                                               
      Radio                               (528)          (380)            (369)
                                                                               
      New Media                             142            225             (19)
                                                                               
                                        _______        _______          _______
                                                                               
      Total                               6,804          5,311           11,362
                                                                               
                                        _______        _______          _______

(c)   Net Assets                             Unaudited                  Audited
                                                                               
      As at                                   30 June               31 December
                                                                               
                                  2004                   2003              2003
                                                                               
                                          £'000         £'000             £'000
                                                                               
      Television                         11,251         9,868            11,395
                                                                               
      Radio                               3,387         3,123             3,670
                                                                               
      New Media                              39            90               191
                                                                               
                                        _______       _______           _______
                                                                               
                                         14,677        13,081            15,256
                                                                               
      Unallocated Net Assets             17,317        14,518            14,527
                                                                               
                                        _______       _______           _______
                                                                               
                                         31,994        27,599            29,783
                                                                               
                                        _______       _______           _______

Unallocated net assets comprise cash, short term cash deposits, investments,
loans, loan notes, taxation, acquisition accruals, goodwill, minority interest
and proposed dividends.

3. Goodwill

Goodwill is being amortised as follows:-

-goodwill arising from the purchase of County Media Limited, Treaty Radio
Limited and City Broadcasting Limited is being amortised over estimated useful
lives of 20 years.

-goodwill arising from the purchase of UTV Internet Limited is being amortised
over an estimated useful life of 10 years.

-goodwill arising from the purchase of BOCOM International Limited is being
amortised over an estimated useful life of 2 years. This goodwill has now been
fully amortised.

4. Net interest payable

                                                Unaudited               Audited
                                                                               
                                            Six months ended         Year ended
                                                                               
                                                 30 June            31 December
                                                                               
                                              2004        2003             2003
                                                                               
                                             £'000       £'000            £'000
                                                                               
     Interest payable - group                (495)       (740)          (1,417)
                                                                               
     Interest payable - share of joint        (34)         (3)             (21)
     ventures                                                                  
                                                                               
     Interest receivable                        67          71              110
                                                                               
                                            ______     _______          _______
                                                                               
                                             (462)       (672)          (1,328)
                                                                               
                                            ______     _______          _______

5. Taxation

                                                Unaudited               Audited
                                                                               
                                             Six months ended        Year ended
                                                                               
                                                 30 June            31 December
                                                                               
                                              2004        2003             2003
                                                                               
                                             £'000       £'000            £'000
                                                                               
    Current Tax                                                                
                                                                               
    UK Corporation tax                       1,940       1,483            3,563
                                                                               
    Corporation tax overprovided in              -           -            (179)
    previous years                                                             
                                                                               
                                            ______      ______           ______
                                                                               
                                             1,940       1,483            3,384
                                                                               
    ROI Corporation tax                        310         204              288
                                                                               
    Adjustment in respect to previous            -           -              (1)
    years                                                                      
                                                                               
    Share of joint ventures' current tax         -           2                -
                                                                               
                                            ______      ______           ______
                                                                               
                                             2,250       1,689            3,671
                                                                               
    Deferred tax                                                               
                                                                               
    Origination and reversal of timing           -           4            (187)
    differences                                                                
                                                                               
    Adjustment in respect to previous            -           -              131
    years                                                                      
                                                                               
                                            ______      ______           ______
                                                                               
    Total tax on profit on ordinary          2,250       1,693            3,615
    activities                                                                 
                                                                               
                                            ______      ______           ______

6. Earnings per share

Basic earnings per share, in accordance with Financial Reporting Standard No14
(FRS 14), is calculated on the weighted average number of shares in issue
during the period being 53,589,230 (June 2003 : 52,736,067) and is based on the
profit for the financial period after taxation of £3,945,000 (June 2003 : £
2,514,000).

Diluted earnings per share is calculated on 54,830,967 shares (June 2003 :
54,482,806 shares) reflecting the dilutive potential of the convertible loan
notes of 629,348 shares (June 2003 : 1,461,739 shares) and the share option
schemes of 612,389 shares (June 2003 : 285,000 shares). The calculation is
based on profit for the period of £3,969,000 (June 2003 : £2,592,000)
reflecting an adjustment for net interest payable on convertible loan notes of
£24,000 (June 2003 : £78,000).

An adjusted earnings per share has been calculated to exclude the impact of
goodwill amortisation. The adjusted earnings per share is based on operating
profits and is intended to provide a comparable measure of historical
performance.

                                              Unaudited                 Audited
                                                                               
                                          Six months ended           Year ended
                                                                               
                                               30 June              31 December
                                                                               
                                           2004          2003              2003
                                                                               
                                              p             p                 p
                                                                               
     Diluted earnings per share            7.24          4.76             10.91
                                                                               
     Adjustments:                                                              
                                                                               
     To reflect the dilutive               0.04        (0.01)              0.09
     potential of the convertible                                              
     loan notes                                                                
                                                                               
     To reflect the dilutive               0.08          0.02              0.09
     potential of the share option                                             
     schemes                             ______        ______            ______
                                                                               
     Basic (FRS 14) earnings per           7.36          4.77             11.09
     share                                                                     
                                                                               
     Adjustments:                                                              
                                                                               
     Goodwill amortisation                 3.41          3.78              7.72
                                                                               
     Taxation relating to the above           -             -                 -
     item                                                                      
                                                                               
                                         ______        ______            ______
                                                                               
     Adjusted earnings per share          10.77          8.55             18.81
                                                                               
     Adjustments:                                                              
                                                                               
     To reflect the dilutive             (0.08)        (0.08)            (0.28)
     potential of the convertible                                              
     loan notes                                                                
                                                                               
     To reflect the dilutive             (0.12)        (0.05)            (0.14)
     potential of the share option                                             
     schemes                             ______        ______            ______
                                                                               
     Diluted adjusted earnings per        10.57          8.42             18.39
     share                                                                     
                                                                               
                                         ______        ______            ______

7. Net debt

                                               Unaudited                Audited
                                                                               
                                                30 June             31 December
                                                                               
                                            2004         2003              2003
                                                                               
                                           £'000        £'000             £'000
                                                                               
    Cash                                   3,708          723             2,569
                                                                               
    Short term deposits                    1,330        5,179             2,413
                                                                               
    Loans               (a)             (27,648)     (34,093)          (32,349)
                                                                               
    Convertible loan    (b)                    -      (3,362)           (1,684)
    notes                                                                      
                                                                               
                                         _______      _______           _______
                                                                               
                                        (22,610)     (31,553)          (29,051)
                                                                               
                                         _______      _______           _______

(a) Loans

The Company has two multi option loan facilities which each bear interest at
Euribor plus 0.8%.

(b) Convertible loan notes

On 17 May 2004 convertible loan notes amounting to £208,000 were converted into
90,434 Ordinary Shares and on 9 June 2004 the remaining convertible loan notes
amounting to £1,476,000 were converted into 641,739 Ordinary Shares.

8. Reconciliation of movements in shareholders' funds

                                                Unaudited               Audited
                                                                               
                                            Six months ended         Year ended
                                                                               
                                                 30 June            31 December
                                                                               
                                             2004         2003             2003
                                                                               
                                            £'000        £'000            £'000
                                                                               
   Opening balance                         29,783       25,862           25,862
                                                                               
   Exercise of share options                    -           82               82
                                                                               
   Shares issued on conversion of loan      1,684            -            1,678
   notes                                                                       
                                                                               
   Profit for the period                    3,945        2,514            5,873
                                                                               
   Dividends                              (2,440)      (2,193)          (5,349)
                                                                               
   Exchange difference on                 (2,583)        3,478            4,327
   retranslation of net assets of                                              
   subsidiary undertakings                                                     
                                                                               
   Exchange difference on loans             1,605      (2,144)          (2,690)
                                                                               
                                          _______      _______          _______
                                                                               
   Closing balance                         31,994       27,599           29,783
                                                                               
                                          _______      _______          _______

9. Reconciliation of operating profit to net cashflow from operating activities

                                                Unaudited               Audited
                                                                               
                                            Six months ended         Year ended
                                                                               
                                                 30 June            31 December
                                                                               
                                             2004         2003             2003
                                                                               
                                            £'000        £'000            £'000
                                                                               
    Group operating profit                  6,804        5,311           11,362
                                                                               
    Depreciation charges                      842          819            1,741
                                                                               
    Amortisation of goodwill                1,760        1,727            3,777
                                                                               
    Profit on sale of tangible fixed         (37)         (13)             (42)
    assets                                                                     
                                                                               
    (Increase)/decrease in stocks           (104)          298            (547)
                                                                               
    Increase in debtors                     (172)        (180)            (892)
                                                                               
    Increase/(decrease) in creditors          719      (2,095)          (1,909)
                                                                               
    Decrease in provisions                   (13)         (13)             (27)
                                                                               
                                           ______       ______           ______
                                                                               
    Net cash inflow from operating          9,799        5,854           13,463
    activities                                                                 
                                                                               
                                           ______       ______           ______