Final Results - Year Ended 31 December 1999
Antofagasta PLC
20 March 2000
Antofagasta plc
PRELIMINARY RESULTS ANNOUNCEMENT
FOR THE YEAR ENDED 31 December 1999
Commissioning of the US$1.36 billion Los Pelambres mine
completed within budget and ahead of schedule, with expected
production of 275,000 tonnes of payable copper in concentrates
in 2000.
Construction of the US$296 million El Tesoro project began
in November 1999, with expected annual production of 75,000
tonnes of copper cathodes from May 2001.
Record year for the Railway with transport volumes
increasing from 2.7 million tons in 1998 to 3.1 million tons in
1999.
Dividend income of approximately US$30 million expected in
May 2000 from the Group's interest in Quinenco, based on results
announced for 1999.
Group profit before tax and exceptional items for 1999 of
US$31.8 million (1998 - US$64.6 million); after exceptional
items US$13.2 million (1998 - US$60.5 million).
Final dividend increased by 0.75p per share to 5.75p,
giving a total dividend for 1999 of 8.0p (1998 - 7.25p).
The Group's interests, which are based in Chile, include copper
mining and rail and road transport. Results in 1999 were
adversely affected by low copper prices and a lower dividend
received from the Group's 33.6% investment in Quinenco S.A.,
partly offset by maintained results from rail and transport
services and interest income from the Group's strong cash
position.
Commissioning of the Los Pelambres mine began in November 1999,
with 55,000 tonnes of payable copper in concentrates produced in
the first ten weeks of 2000. The El Tesoro project is fully
financed and construction began in November 1999 with first
production planned for May 2001. These two low cost mines when
fully operational will increase the Group's annual copper
production to more than 400,000 tonnes (attributable production
255,000 tonnes) compared with 60,500 tonnes (attributable
production 45,000 tonnes) in 1999. Jean-Paul Luksic, Director
and CEO of the mining division commented 'Antofagasta is one of
the fastest growing mining companies with a strong asset base and
a proven ability to develop large scale projects'.
Enquiries to: Hussein Barma
Chief Financial Officer
Tel: +44 20 7374 8091
Email: hbarma@antofagasta.co.uk
Issued by: Keith Irons
Bankside Consultants Ltd
Tel: +44 20 7220 7477
Email: keith@bankside.com
Directors' Comments on the Preliminary Results to 31 December 1999
Mining
The Group achieved a major strategic goal with the successful
commissioning of the low-cost Los Pelambres mine at the end of
1999. Copper production from existing operations in 1999 was
60,500 tonnes (1998 - 71,000 tonnes) reflecting the closure of
high cost operations during 1998 as part of the Los Pelambres
development. Operating results from the mining division showed a
loss before exceptional items of US$9.4 million compared to a
loss of US$5.6 million in 1998. During the year, the average
copper price was 71 cents per lb compared to 75 cents in 1998.
Copper prices have since recovered to an average above 80 cents
per lb in 2000, when first sales from Los Pelambres began.
Los Pelambres
The project made exceptional progress during the year and
production of concentrates began ahead of schedule in November
1999 with first shipments from the newly built Punta Chungo port
facility starting in January 2000. Los Pelambres completed its
ramp-up phase on 28 January, a week earlier than anticipated and
is now operating at its planned capacity of 85,000 tpd. In the
first ten weeks of 2000, approximately 124,000 tonnes of
concentrate containing 55,000 tonnes of payable copper were
produced and 97,000 tonnes of concentrates shipped. Full
production has been recently achieved and the completion test is
now underway. This is expected to be concluded by June, and as a
result funds held in escrow amounting to approximately US$130
million will be released to the Group. The mine plan for 2000
anticipates production of 275,000 tonnes of fine copper at
estimated cash costs of 38 cents per pound. Over the first five
years, production will average 285,000 tonnes at estimated cash
costs of 41 cents per pound. Los Pelambres has now taken its
place among the world's major low cost copper producers after
completing the project ahead of schedule and within the original
budget of US$1.36 billion.
El Tesoro
Financing agreements were signed in July to develop the US$296
million El Tesoro copper cathode project. Mine construction
began in November, with first production expected in May 2001.
El Tesoro is owned by Antofagasta controlling 61% and Equatorial
Mining, a subsidiary of AMP, the largest institutional investor
in Australia, holding 39%. El Tesoro will be developed as a heap-
leach SX-EW operation with a planned production of 75,000 tonnes
per year. Cash operating costs are expected to average
approximately 40 cents per lb in the first 5 years. This places
the mine in the lowest quartile of world-wide copper production
costs.
Michilla
Michilla benefited from the cost-cutting programme which began in
1998, enabling it to reduce cash costs in 1999 to 55 cents per lb
(1998 - 61 cents per lb). Copper production during 1999 was
60,500 tonnes of copper compared with 62,100 tonnes in 1998. In
February 2000, the small concentrator on the coast, which
produced 9,200 tonnes of fine copper during 1999, was mothballed.
Michilla continued its exploration programme during 1999 which
identified an additional 20 million tonnes of 1.0% copper ore in
the area adjacent to the existing open pit. A feasibility study
is currently under preparation to develop Michilla's mine plan
which is expected to extend the life of both the underground
operation and open pit to 2008 and so maintain annual copper
output at the existing 50,000 tonne level.
Exploration
The Group continued its exploration programme on its Peruvian
mining properties, concentrating on Cotabambas and Magistral.
The drilling programme at Magistral began following the signing
of an option agreement with Inca Pacific Resources Inc. in
October 1999 which enables the Group to earn a 51% joint venture
interest by completing a defined exploration programme over a
three year period. Further exploration also continued in Chile
at Santa Carmen, Esperanza and Tesoro-NE properties, all located
near El Tesoro.
Transport and other services
The Railway and its road haulage subsidiary Train Limitada had
another record year for tonnage carried. Traffic increased from
2.7 million tonnes in 1998 to 3.1 million tonnes in 1999.
During the year, FCAB concluded a six year agreement with its
unions. This was a landmark achievement in Chile where labour
agreements are normally for a two year term. The Railway is well
positioned to take advantage of new opportunities in northern
Chile, the world's largest copper producing region.
Investments
The Group holds a 33.6% investment in Quinenco S.A., a
diversified industrial and financial group listed in Santiago and
New York with interests in the Southern Cone and Brazil.
Dividends from Quinenco are accounted for in the year in which
they are received and during 1999 the Group received US$5.3
million (1998 - US$23.5 million).
Quinenco reported net profit for 1999 of US$302.4 million (1998 -
US$51.0 million). The 1999 results included the profit on sale
of its banking interests and also of the cable television
interests of its telecommunications subsidiary. Quinenco is
required under Chilean company law to pay a dividend of at least
30% of its net profit and the Group expects to receive a dividend
of approximately US$30 million in May 2000. The market value of
the Group's holding in Quinenco was US$406 million at 31 December
1999 and US$408 million at 15 March 2000.
Dividends
The Board is recommending a final dividend of 5.75p per ordinary
share (1998 - 5.0p) payable on 9 June 2000 to shareholders on the
Register at the close of business on 12 May 2000, giving a total
dividend for 1999 of 8.0p (1998 - 7.25p).
Current trading prospects
The outlook for the world economy is encouraging with sustained
growth in the United States, improving industrial production in
Europe, Japan and China and evident recovery in most emerging
Asian countries. Growth has also returned to the Chilean economy
following the 1998-99 recession and an up-turn in neighbouring
countries' performance is expected to stimulate exports. Copper
prices have recovered since mid-1999 and have averaged over 80
cents per lb to date. Group copper production is expected to be
325,000 tonnes of payable copper in the current year, increasing
to more than 400,000 tonnes when El Tesoro is fully operational.
With its move to low cost production, the Group should be well
placed to benefit from any improvement in metal prices during
2000.
Group Profit and Loss Account - US Dollars
Unaudited year to Unaudited year to
31.12.99 31.12.98
Before Except Before Except
except ional except ional
ional items Total ional items Total
Notes items Note 3 items Note 3 US$'m
US$'m US$'m US$'m US$'m US$'m US$'m
Turnover 2 145.5 - 145.5 184.9 - 184.9
Operating 2 10.0 (18.6) (8.6) 14.6 (5.1) 9.5
profit/(loss)
Share of operating 1.7 - 1.7 2.8 - 2.8
profit in associates
Profit on disposal of - - - - 1.0 1.0
fixed assets
Income from other 5.4 - 5.4 23.6 - 23.6
fixed asset
investments
Net interest
receivable-
Group 14.4 - 14.4 23.4 - 23.4
Associates 0.3 - 0.3 0.2 - 0.2
Profit before tax 2, 31.8 (18.6) 13.2 64.6 (4.1) 60.5
3
Tax
Group 4 (4.2) 2.8 (1.4) (4.1) 0.2 (3.9)
Associates 4 (0.5) - (0.5) (0.6) - (0.6)
Profit after tax 27.1 (15.8) 11.3 59.9 (3.9) 56.0
Minority interests - (0.9) 5.5 4.6 (1.0) 1.3 0.3
equity
Profit for the 26.2 (10.3) 15.9 58.9 (2.6) 56.3
financial year
Dividends:
Preference-non equity (0.2) - (0.2) (0.1) - (0.1)
Ordinary-equity (25.4) - (25.4) (23.7) - (23.7)
Retained 0.6 (10.3) (9.7) 35.1 (2.6) 32.5
profit/(loss)
Earnings per share 5 8.1c 29.6c
Earnings per share 5 13.5c 30.9c
before exceptional items
Other Recognised Gains and Losses
Other recognised gains and losses in the period (exchange differences and
Chilean inflation) amounted to a gain of US$3.9 million (1998 - a
loss of US$5.2 million), and are shown in Note 11 together with
other movements in shareholders' funds. The effect on prior year
comparatives of adopting FRS 12 'Provisions, Contingent Liabilities
and Contingent Assets' is shown in Note 1.
Group Profit and Loss Account - Sterling
Unaudited year to Restated year to
31.12.99 31.12.98
Before Except Before Except
except ional except ional
onal items Total ional items Total
Notes items Note 3 items Note 3
£'m £'m £'m £'m £'m £'m
Turnover 2 89.8 - 89.8 111.4 - 111.4
Operating 2 6.2 (11.5) (5.3) 8.8 (3.1) 5.7
profit/(loss)
Share of operating 1.0 - 1.0 1.7 - 1.7
profit in associates
Profit on disposal of - - - - 0.6 0.6
fixed assets
Income from other 3.3 - 3.3 14.2 - 14.2
fixed asset investments
Net interest receivable
Group 8.9 - 8.9 14.1 - 14.1
Associates 0.2 - 0.2 0.1 - 0.1
Profit before tax 2,3 19.6 (11.5) 8.1 38.9 (2.5) 36.4
Tax
Group 4 (2.7) 1.8 (0.9) (2.4) 0.1 (2.3)
Associates 4 (0.3) - (0.3) (0.4) - (0.4)
Profit after tax 16.6 (9.7) 6.9 36.1 (2.4) 33.7
Minority interests - (0.6) 3.4 2.8 (0.7) 0.8 0.1
equity
Profit for the 16.0 (6.3) 9.7 35.4 (1.6) 33.8
financial year
Dividends:
Preference - (0.1) - (0.1) (0.1) - (0.1)
non equity
Ordinary - equity (15.8) - (15.8) (14.3) - (14.3)
Retained profit/(loss) 0.1 (6.3) (6.2) 21.0 (1.6) 19.4
Earnings per share 5 5.0p 17.8p
Earnings per share 5 8.2p 18.6p
before exceptional items
Dividend per share 6 8.0p 7.25p
Other Recognised Gains and Losses
Other recognised gains and losses in the year (exchange differences and
Chilean inflation) amounted to a gain of £8.5 million (1998 - a loss
of £4.4 million), and are shown in Note 11 together with other movements
in shareholders' funds. The effect on prior year comparatives of
adopting FRS 12 'Provisions, Contingent Liabilities and Contingent Assets'
is shown in Note 1.
Group Balance Sheet
US Dollars Sterling
Notes Unaudited Unaudited Unaudited Restated
31.12.99 31.12.98 31.12.99 31.12.98
US$'m US$'m £'m £'m
Fixed assets
Tangible fixed assets 8 1,635.8 950.8 1,016.6 575.1
Investments in 9 20.6 20.4 13.2 13.1
associates
Other investments 10 185.8 185.8 108.3 108.3
1,842.2 1,157.0 1,138.1 696.5
Current assets
Stocks 32.4 11.5 20.1 6.9
Debtors 76.1 108.3 47.3 65.3
Current asset 328.4 385.2 204.0 232.1
investments (including
time deposits)
Cash at bank and in hand 3.2 4.2 2.0 2.5
440.1 509.2 273.4 306.8
Creditors - amounts
falling due within one year
Trade and other (79.0) (101.7) (49.2) (61.5)
creditors
Loans (64.8) (3.3) (40.1) (2.0)
Dividends (18.3) (17.3) (11.3) (10.4)
(162.1) (122.3) (100.6) (73.9)
Net current assets 278.0 386.9 172.8 232.9
Total assets less 2,120.2 1,543.9 1,310.9 929.4
current liabilities
Loans due after more (1,006.3) (511.1) (625.0) (307.9)
than one year
Provisions for (10.3) (9.5) (6.4) (5.7)
liabilities and charges
1,103.6 1,023.3 679.5 615.8
Capital and reserves
Called up share capital 19.1 19.1 11.9 11.5
Share premium 272.8 243.4 169.4 146.6
Reserves 595.4 601.2 363.8 361.5
Shareholders' funds 11 887.3 863.7 545.1 519.6
Minority interests 216.3 159.6 134.4 96.2
1,103.6 1,023.3 679.5 615.8
Approved by the Board on 17 March 2000
Group Cash Flow Statement
US Dollars Sterling
Unaudited Unaudited Unaudited Audited
year to year to year to year to
31.12.99 31.12.98 31.12.99 31.12.98
US$'m US$'m £'m £'m
Notes
Net cash inflow from 12 4.3 27.9 2.8 16.9
operating activities
Returns on investment and
servicing of finance
Dividends received from 1.3 1.7 0.8 1.0
associates
Dividends received from 5.4 23.6 3.3 14.2
other fixed asset investments
Interest received 19.6 28.6 12.2 17.2
(including capitalised
interest)
Interest paid (including (39.6) (14.9) (24.5) (9.0)
capitalised interest)
Preference dividends paid (0.2) (0.2) (0.1) (0.1)
Dividends paid to - (5.6) - (3.4)
minority interests
Net cash (13.5) 33.2 (8.3) 19.9
(outflow)/inflow from
returns on investment
and servicing of finance
Tax (4.5) (0.8) (2.8) (0.5)
Net cash outflow from (600.6) (576.7) (370.6) (347.4)
capital expenditure and
financial investment
Net cash outflow from - (4.0) - (2.4)
acquisitions and disposals
Equity dividends paid (24.3) (21.8) (14.8) (13.3)
Cash outflow before (638.6) (542.2) (393.7) (326.8)
management of liquid resources
Management of liquid resources
Net decrease in time deposits 55.4 40.0 34.2 24.0
Financing
Contribution from 65.5 64.9 40.4 39.1
minority interests
Net other borrowings in 517.2 439.4 319.3 264.7
period
Net cash inflow from 582.7 504.3 359.7 303.8
financing
Net cash 13 (0.5) 2.1 0.2 1.0
(outflow)/inflow in the period
Notes
1 Accounting policies
The profit and loss account, balance sheet and cash flow
statement for the year to 31 December 1999 have been prepared on
the basis of the accounting policies set out in the Group's
statutory accounts for the year to 31 December 1998 except as
stated below:
(a) The Group's operations, cash balances and borrowings are
substantially US dollar-based. To reflect this, these
preliminary results have been additionally reported in US dollars
on a basis consistent with the sterling-denominated results.
Share capital remains denominated in sterling and dividends
continue to be declared and paid in sterling. For the purposes
of reporting in US dollars only, share capital, share premium and
dividends declared are translated at the period-end rate of
exchange.
(b) These results reflect the implementation of FRS12, 'Provisions,
Contingent Liabilities and Contingent Assets'. FRS 12 requires
provision to be made for all obligations that arise in the course
of an entity's operations. Previously, the Group accounted for costs
relating to the eventual closure of its mining operations and
severance indemnities payable in Chile on termination of employment
at the point of closure. The effect of implementing FRS 12 on
previously reported comparatives is as follows:
Sterling
31.12.98
Profit for the Shareholders'
financial period funds
£'m £'m
As previously reported 34.2 524.6
Effect of restatement (0.4) (5.0)
As restated 33.8 519.6
(c) These results also reflect the adoption of FRS15, 'Tangible
Fixed Assets'. FRS15 requires inter alia that only those costs
directly attributable to bringing an asset into working condition
should be capitalised. Non-incremental overheads incurred in the
course of the Los Pelambres mining development have accordingly
been expensed and are disclosed in Note 3 as an exceptional
charge to operating profits.
2 Segmental analysis
a) Turnover by geographical destination
US Dollars Sterling
Unaudited Unaudited Unaudited Audited
year to year to year to year to
31.12.99 31.12.98 31.12.99 31.12.98
US$'m US$'m £'m £'m
UK 7.9 18.0 4.9 10.9
Rest of Europe 41.3 33.1 25.5 19.9
Chile 45.7 53.3 28.3 32.1
Rest of Latin America 33.2 32.1 20.5 19.3
North America 2.8 23.8 1.7 14.4
Asia Pacific / Other 14.6 24.6 8.9 14.8
145.5 184.9 89.8 111.4
2 Segmental analysis (continued)
b) Turnover and profit before tax by class of business and geographical
location
Operations are based in Chile, except where stated below.
Turnover and profit before tax can be analysed as follows:
US Dollars Sterling
Unaudited Unaudited Unaudited Restated
year to year to year to year to
31.12.99 31.12.98 31.12.99 31.12.98
US$'m US$'m £'m £'m
Turnover
Mining 93.6 130.1 57.8 78.4
Transport and other services 51.9 54.8 32.0 33.0
145.5 184.9 89.8 111.4
Profit before tax
Operating profit before exceptional items
Mining (9.2) (5.4) (5.6) (3.2)
Transport and 19.2 20.0 11.8 12.0
other services
10.0 14.6 6.2 8.8
Share of operating 1.7 2.8 1.0 1.7
profit in associates
(Bolivian Railways)
Income from other fixed 5.4 23.6 3.3 14.2
asset investments
Net interest receivable
Group 14.4 23.4 8.9 14.1
Associates 0.3 0.2 0.2 0.1
Profit before 31.8 64.6 19.6 38.9
exceptional items and tax
Exceptional items (see note 3) (18.6) (4.1) (11.5) (2.5)
Profit before tax 13.2 60.5 8.1 36.4
3 Exceptional items
US Dollars Sterling
Unaudited Unaudited Unaudited Audited
year to year to year to year to
31.12.99 31.12.98 31.12.99 31.12.98
US$'m US$'m £'m £'m
Operating
Provision for write-down (12.0) (5.1) (7.4) (3.1)
of mining assets and
stocks including cost of
temporary closure
Non-incremental overhead (6.6) - (4.1) -
costs incurred in the
course of mining development
Non-operating
Profit on sale of land
by railway - 1.0 - 0.6
(18.6) (4.1) (11.5) (2.5)
Tax effect 2.8 0.2 1.8 0.1
Minority interest effect 5.5 1.3 3.4 0.8
(10.3) (2.6) (6.3) (1.6)
4 Tax
The tax charge on profit before exceptional items of US$4.7 million
(£3.0 million; 1998 - US$4.7 million; £2.8 million) represents an
effective rate of 14.8% (1998 - 7.3%) on profits before tax, as
compared with the Chilean statutory tax rate of 15%. The lower
effective rate in 1998 arose mainly because of the substantially
larger dividend from Quinenco received that year which was paid out
of its post tax profits and not subject to further tax on receipt.
5 Earnings per share
Earnings per share is calculated on profit after tax, minority
interest and preference dividends of US$15.7 million; £9.6 million
(1998 - US$56.2 million; £33.7 million) based on a weighted average
number of shares of 193,278,188. The number of shares in issue
throughout 1998 was 190,171,399. Earnings per share excluding
exceptional items is calculated on the same basis but excluding
a loss on exceptional items of US$10.3 million; £6.3 million
(1998 - US$2.6 million; £1.6 million).
6 Dividends
The Board will recommend a final dividend of 5.75p (1998 - 5.0p)
per share for payment on 9 June 2000 to shareholders on the
Register at the close of business on 12 May 2000. Dividends are
declared gross, but dividends payable to United Kingdom shareholders
will be paid net of withholding tax.
7 Acquisition
In 1998, the Group obtained independent shareholder approval
(subject to the securing of project finance) for the acquisition
of a majority interest in the El Tesoro project in exchange for
the issue of 7 million new ordinary shares of the Company.
Financing agreements were signed in July 1999 and the acquisition
has been accounted for under FRS 2 'Accounting for Subsidiary
Undertakings' from this date.
8 Tangible fixed assets
US Dollars
Rolling stock,
plant,
Freehold Permanent machinery and
land and way and water
buildings works distribution Mining Total
US$'m US$'m US$'m US$'m US$'m
1 January 1999 31.2 31.9 40.9 846.8 950.8
(unaudited)
Acquisitions - - - 78.9 78.9
Additions 0.1 2.1 2.0 638.0 642.2
Disposals (0.2) - (0.2) (12.5) (12.9)
Depreciation (0.1) (0.6) (2.9) (18.8) (22.4)
charge for the period
Exchange (0.4) (0.1) (0.4) 0.1 (0.8)
31 December 1999 30.6 33.3 39.4 1,532.5 1,635.8
(unaudited)
Sterling
Rolling stock,
plant,
Freehold Permanent machinery and
land and way and water
buildings works distribution Mining Total
£'m £'m £'m £'m £'m
1 January 1999 19.2 20.6 24.9 510.4 575.1
(audited)
Acquisitions - - - 48.7 48.7
Additions - 1.3 1.3 393.8 396.4
Disposals (0.1) - (0.2) (7.7) (8.0)
Depreciation (0.1) (0.4) (1.8) (11.6) (13.9)
charge for the period
Exchange 0.2 - (0.1) 18.2 18.3
31 December 1999 19.2 21.5 24.1 951.8 1,016.6
(unaudited)
9 Investments in associates
US$'m £'m
1 January 1999 20.4 13.1
Share of profit before tax 2.0 1.2
Share of tax (0.5) (0.3)
Exchange - -
Dividends received (1.3) (0.8)
31 December 1999 (unaudited) 20.6 13.2
10 Other investments
US$'m £'m
1 January 1999 185.8 108.3
Additions 0.2 0.1
Disposals (0.2) (0.1)
31 December 1999 (unaudited) 185.8 108.3
The book value of quoted investments at 31 December 1999 included
above was US$185.5 million, and the corresponding market value
was US$412.0 million.
11 Reconciliation of movements in shareholders' funds
US Dollars Sterling
Unaudited Unaudited Unaudited Restated
year to year to year to year to
31.12.99 31.12.98 31.12.99 31.12.98
US$'m US$'m £'m £'m
Profit for the year 15.9 56.3 9.7 33.8
Other recognised gains/(losses) relating
to the period
Exchange 3.9 (5.2) 8.5 (4.4)
Total recognised gains 19.8 51.1 18.2 29.4
and losses
Dividends (25.6) (23.8) (15.9) (14.4)
(5.8) 27.3 2.3 15.0
Issue of ordinary shares 0.6 - 0.4 -
Share premium on issue 37.0 - 22.8 -
Exchange movement on (8.2) 1.6 - -
sterling denominated
share capital and share premium
Opening shareholders' 863.7 834.8 519.6 504.6
funds
Closing shareholders' 887.3 863.7 545.1 519.6
funds
12 Reconciliation of operating profit to net cash inflow from
operating activities
US Dollars Sterling
Unaudited Unaudited Unaudited Restated
year to year to year to year to
31.12.99 31.12.98 31.12.99 31.12.98
US$'m US$'m £'m £'m
Operating (loss)/profit (8.6) 9.5 (5.3) 5.7
Depreciation 22.4 19.8 13.9 11.9
Loss on disposal of 12.3 6.0 7.6 3.7
tangible fixed assets
(Increase)/decrease in (20.9) 6.4 (12.9) 3.8
stocks
Increase in debtors (0.1) (5.9) (0.1) (3.5)
Decrease in creditors (0.8) (7.9) (0.4) (4.7)
and provisions
Net cash inflow from 4.3 27.9 2.8 16.9
operating activities
13 Reconciliation of net cash flow to movement in net funds / (debt)
US Dollars Sterling
Unaudited Unaudited Unaudited Audited
year to year to year to year to
31.12.99 31.12.98 31.12.99 1.12.98
US$'m US$'m £'m £'m
Net cash (outflow)/inflow (0.5) 2.1 0.2 1.0
in the period
Cash inflow from increase (517.2) (439.4) (319.3) (264.7)
in debt
Cash inflow from decrease (55.4) (40.0) (34.2) (24.0)
in liquid resources
Change in net debt (573.1) (477.3) (353.3) (287.7)
resulting from cash flows
Acquisition (6.4) - (3.9) -
Reclassification (26.6) - (16.0) -
Interest accrued on long- (4.6) - (2.8) -
term loan balances
Exchange (3.8) (3.2) (7.8) (3.2)
Movement in net (614.5) (480.5) (383.8) (290.9)
(debt)/funds in the period
Net (debt)/funds at the (125.0) 355.5 (75.3) 215.6
beginning of the period
Net debt at the end of (739.5) (125.0) (459.1) (75.3)
the period
14 Year 2000
Since 1997, the Group has pursued a strategy to ensure all significant
computer systems and computer controlled plant and equipment would be Year
2000 compliant. As a result, there have been no significant interruptions
to operations. Capital and revenue expenditure related to the Group's Year
2000 programme has been recognised as and when incurred. Enhancement and
replacement costs of US$0.5 million were capitalised in 1999
(1998 US$0.3 million) and further costs in respect of rendering
existing software compliant of US$0.2 million were charged to the
profit and loss. No further significant costs are envisaged.
15 Financial information
The Group's statutory accounts for the year to 31 December 1998 have been
filed with the Registrar of Companies. The auditors' report on these accounts
was unqualified and did not include a statement under S237 (2) or (3) of the
Companies Act 1985. The 1998 sterling profit and loss account, balance
sheet and cash flow statement shown in this announcement are an abridged
version of these statutory accounts after restatement for the change in
accounting policy explained in Note 1. The financial information contained
in this statement does not constitute statutory accounts within the meaning of
S240 of the Companies Act 1985.
16 Currency translation
With the exception of fixed assets denominated in Chilean pesos which are
translated at the rate ruling in the period of purchase, assets and
liabilities denominated in foreign currencies are translated into sterling at
the period end rates of exchange. Results denominated in foreign currencies
have been translated into sterling at the average rate for each period.
Period end rates Average rates
31.12.99 CH$858 = £1 = US$1.61 CH$824 = £1 = US$1.62
31.12.98 CH$787 = £1 = US$1.66 CH$763 = £1 = US$1.66
17 Distribution
The Annual Report and Financial Statements, including the Notice of the
Annual General Meeting and Chairman's Statement for the year ended
31 December 1999 will be posted to shareholders in May 2000. The Annual
General meeting will be held in the Armourers' Hall, 81 Coleman Street,
London EC2 at 10.30 a.m. on 8 June 2000.
Latest directors dealings
- 10 hours ago ASOS
- 10 hours ago MJ Gleeson
- 10 hours ago Rolls-Royce Holdings
- 11 hours ago Crest Nicholson Holdings
- 11 hours ago Naked Wines