Final Results - Year Ended 29 January 2000
Barr(A.G.) PLC
29 March 2000
A.G. BARR p.l.c.
Preliminary Results
For the year to 29th January 2000
A.G. Barr p.l.c., the Scottish based manufacturer of soft
drinks including the popular Irn-Bru, Tizer and Orangina
brands, announces its preliminary results today:
Key Points:
* Turnover up 3% to £110 million (1999: £106.9m)
* Profit before tax £12,096k (1999: £11,991k)
Underlying profit up by £718k or 6.2%, if adjustment
is made for two abnormal factors of a property sale
and redemption of Bank loan.
* Final dividend of 12.25p, total for the year 19.60p
a 7.4% increase over the previous year.
* Irn-Bru volume performance increased by 8% overall
across the UK.
* Promotional investment over the Festive Season
showing positive results with brands recording a
year-on-year increase in market share in December.
Commenting on the results Robin Barr, Executive Chairman
said: 'Given the market place within which we operate
and the competition from our major competitors, progress
in terms of market share within the UK is likely to
remain a hard fought prize. We remain convinced,
however, that the continuing investment in our brands
will produce for A.G. Barr the optimum long-term growth
in relation to both turnover and profits.'
For further information:
A.G. Barr
Robin Barr, Chairman or
Iain Greenock, Finance Director Tel: 0141 554 1899
Buchanan Communications:
Tim Thompson/Nicola Cronk Tel: 020 7466 5000
Chairman's Statement
Review of Results
Profit on ordinary activities before taxation for the
year to 29th January 2000 was £12.1 million compared with
£12.0 million for the previous year. There was however
an underlying improvement in profit of £718,000 or 6.2%
if adjustment is made for two abnormal factors -
comprising profits of £380,000 on the sale of properties
in the last financial year and a charge of £233,000
related to the early repayment of a bank loan in the year
to January 2000.
Turnover for year to end January 2000 was £110 million,
an increase over the previous year of 3%. Retailers' Own
labels now account for only 5% of total turnover and our
continuing focus is on Barr brands where UK sales were up
4% over the twelve months. Sales were disappointing
during the three months to the end of October reflecting
the fact that the best of the summer weather in 1999 was
in the South of the UK which remains - proportionately -
our less significant trading area. The last three months
of the financial year saw a better trend in line with
promotional activity to which I refer below.
Our manufacturing costs continued to reflect, during the
second half of the year, the lower sugar prices which had
resulted from the strengthening of sterling during the
first six months and this advantage was only modestly
reduced by firmer prices for PET bottles. Our overall
margins were however adversely affected during the last
three months of our financial year by the cost of
promoting our brands during what has increasingly become
a particularly competitive market place over each Festive
Season. The promotional investment, although impacting
on the profits for the year, showed positive results
since our brands enjoyed a satisfactory year-on-year
increase in market share during the month of December and
particularly in England where the development of Irn-Bru
remains a prime objective.
Over the full financial year we achieved an encouraging
volume performance across the UK from our main brand Irn-
Bru which increased by 8% overall and by no less than 16%
in England/Wales. This achievement should provide a firm
base for further progress in the current year.
Shareholders will be pleased to note the substantial
improvement which has been achieved in our Balance Sheet
at the end of this financial year. Our strong cash flow
enabled us to make early repayment of our term loan and
this has led to a significant reduction in creditors due
after more than one year but with only a modest reduction
in net current assets.
Earnings per share on our issued share capital at 44.46p
were only marginally ahead of the 44.11p achieved in the
previous year but, bearing in mind the underlying
improvement in this year's profits to which I referred
earlier, your Directors are able to recommend a final
dividend of 12.25p per share making a total dividend of
19.60p for the year to end January 2000. This would
represent an increase of 7.4% over the total dividend
paid for the previous year.
Personnel
I am pleased to take this annual opportunity, on your
behalf, to thank each of our employees for the
contribution which they have made to the results which we
have announced. Despite the modest financial improvement
over the previous year, the Company's performance
reflects a high level of skill and enthusiasm from our
employees within what remains a very competitive market
place. In particular I can confirm that, as a result of
the comprehensive preparatory work which was carried out
in advance of the Millennium, we did not experience any
business problems as we entered the year 2000.
The first offer to employees under our 1995 Savings
Related Share Option Scheme reaches the end of its five
year lifespan on 1st June 2000 and it is your Board's
current intention to introduce a new offer at that time
so that initial subscribers can continue to invest in the
Scheme. I believe that this is an excellent method of
continuing to align the long term interests of employees
with those of the Company and shareholders will be
interested to note that as a result of the offers made in
1995 and 1997 there are currently 369 employees
participating in the Scheme which is approaching half of
the eligible workforce.
Trading Outlook
Turnover for the first seven weeks of the new financial
year has been 4% more than for the same period last year.
The strength of sterling has so far continued to keep the
price of sugar below that paid during the first half of
last year. Our major packaging costs, including cans,
have to date remained stable but an increase in PET
bottle prices will occur this Spring.
The position with regard to our franchise for Orangina
has, at least for the immediate future, become more
certain as a result of the decision of the French
government last November to finally block a proposed take-
over of the Orangina business by The Coca-Cola Company.
We are hopeful that Messrs Pernod Ricard, the owners of
Orangina, will now retain and develop the business and
that we can continue to play our part in that development
through the franchise which we have held for Great
Britain since 1995.
KLP Soft Drinks, who commenced their operations in Moscow
in the summer of 1998 based on a franchise for two of our
brands, continued to build their sales and distribution
throughout our last financial year and are looking
forward to further expansion this year. Naturally
trading margins in Russia remain particularly tight as a
consequence of the substantial devaluation of the
currency since the financial crisis in August 1998.
Given the market place within which we operate and the
competition from our major competitors, progress in terms
of market share within the UK is likely to remain a hard
fought prize. We remain convinced however that the
continuing investment in our brands will produce for
A.G.Barr the optimum long-term growth in relation to both
turnover and profits.
A.G. BARR p.l.c.
and its Subsidiary Companies
Consolidated profit and loss account for the year ended
29 January, 2000
The following are the unaudited results for the 12 months
to 29 January, 2000. The Board recommends the payment of
a final dividend of 12.25p per share which if approved by
the shareholders will be posted on 6 June, 2000.
The total distribution proposed for the year amounts to
19.60p per share (1999 - 18.25p)
Year Year
ended ended
29.01.00 30.01.99
£000 £000
Turnover 109,995 106,892
======= =======
Profit on ordinary activities before
interest 12,210 12,303
Interest 114 312
------ --------
Profit on ordinary activities before
taxation 12,096 11,991
Tax on profit on ordinary activities 3,451 3,415
------ --------
Profit on ordinary activities after
taxation 8,645 8,576
====== ========
Earnings per share on issued share
capital 44.46p 44.11p
===== ======
Basic earnings per share 45.87p 45.55p
===== =====
Fully diluted earnings per share 44.31p 43.88p
===== =====
Dividend per share 19.60p 18.25p
===== =====
Dividend (£000) 3,813 3,545
===== =====
All gains and losses as described in Financial Reporting
Standard 3 (27) have been included in the profit for the year.
Note: The Earnings per share for the year to 30 January,
1999 have been restated to reflect the increase in issued
share capital during the year resulting from a share option
exercise.
Record date: 08 May, 2000
Ex-div date : 02 May, 2000
A.G. BARR p.l.c.
and its Subsidiary Companies
Balance Sheets as at 29 January, 2000
GROUP COMPANY
2000 1999 2000 1999
£000 £000 £000 £000
Fixed assets
Tangible assets 40,384 40,956 40,149 40,791
Investment in 100 100 100 100
subsidiaries and
associated undertakings ------ ------ ------ ------
40,484 41,056 40,249 40,891
Current assets
Stocks 9,027 9,596 8,998 9,584
Debtors 14,750 16,741 14,752 16,750
Investment 2,228 1,745 2,228 1,745
Cash at bank 9,762 9,261 9,762 9,261
------ ----- ------ ------
35,767 37,343 35,740 37,340
Creditors: Due within 23,025 23,758 23,419 24,136
one year ------ ------ ------ ------
Net current assets 12,742 13,585 12,321 13,204
------ ------ ------ ------
Total assets less 53,226 54,641 52,570 54,095
current liabilities
Creditors: Due after
more than one year
Loans - 5,000 - 5,000
Hire purchase creditor 304 1,456 304 1,456
------ ------ ------- -------
304 6,456 304 6,456
------ ------ ------- --------
Provisions for
liabilities and charges
Deferred credit 719 771 719 771
Deferred taxation 1,502 1,621 1,502 1,613
------ ------ ------ ------
2,221 2,392 2,221 2,384
====== ====== ====== ======
2,525 8,848 2,525 8,840
50,701 45,793 50,045 45,255
====== ====== ======= ======
Capital and reserves
Called up share capital 4,861 4,856 4,861 4,856
Share premium reserve 859 788 859 788
Profit and loss account 44,981 40,149 44,325 39,611
------ ------ ------ ------
50,701 45,793 50,045 45,255
====== ======= ====== =======
A.G. BARR p.l.c.
and its Subsidiary Companies
Cash Flow Statement for the year ended 29 January, 2000
2000 1999
£000 £000 £000 £000
Net cash inflow from 17,675 15,356
operating activities
Returns on investments and
servicing of finance
Interest received 207 420
Interest paid (152) (474)
Interest element of hire (169) (258)
purchase paid ----- ------
Net cash outflow from
returns on investments and (114) (312)
servicing of finance
Taxation
Corporation tax paid (3,229) (4,906)
Capital expenditure and
financial investment
Purchase of tangible fixed (4,679) (6,267)
assets
Sale of tangible fixed
assets 525 1,109
------- ------
(4,154) (5,158)
------- -------
10,178 4,980
Dividends paid (3,616) (4,658)
------- --------
6,562 322
Financing
Issue of share capital 76 75
Capital element of hire
purchase repaid (1,061) (977)
Loans repaid (5,053) (105)
------- --------
(6,038) (1,007)
-------- --------
Increase/(Decrease) in cash 524 (685)
======== =========
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