Interim Results - Part 2
Tate & Lyle PLC
8 November 2001
PART 2
TATE & LYLE
NOTES TO INTERIM STATEMENT
For the 6 months to 30 September 2001
1. Segmental analysis of sales
------------------------------------------------------------------------
Total
Ongo- West- contin- Discont- Total
6 months to 30 ing ern uing nued sales
September 2001 activ- Sugar* activ- activ-
ities ities ites
(unaudited) £million £million £million £million £million
------------------------------------------------------------------------
Sweeteners and
starches
- Americas 652 75 727 246 973
- Europe 688 - 688 - 688
- Rest of the 246 - 246 - 246
world
----- ----- ----- ----- -----
1,586 75 1,661 246 1,907
Animal feed and bulk 180 - 180 - 180
storage
Other businesses and 46 - 46 - 46
activities
----- ----- ----- ----- -----
1,812 75 1,887 246 2,133
===== ===== ===== ===== =====
27 weeks to 30 September 2000 (unaudited)
------------------------------------------------------------------------
Sweeteners and
starches
- Americas 621 117 738 252 990
- Europe 609 - 609 - 609
- Rest of the 211 - 211 46 257
world
----- ----- ----- ----- -----
1,441 117 1,558 298 1,856
Animal feed and bulk 138 - 138 77 215
storage
Other businesses and 46 - 46 5 51
activities
----- ----- ----- ----- -----
1,625 117 1,742 380 2,122
===== ===== ===== ===== =====
53 weeks to 31 March 2001 (audited)
Sweeteners and
starches
- Americas 1,201 167 1,368 517 1,885
- Europe 1,186 - 1,186 - 1,186
- Rest of the 507 - 507 73 580
world
----- ----- ----- ----- -----
2,894 167 3,061 590 3,651
Animal feed and bulk 320 - 320 86 406
storage
Other businesses and 84 - 84 5 89
activities
----- ----- ----- ----- -----
3,298 167 3,465 681 4,146
===== ===== ===== ===== =====
* It is planned to dispose of this business, which is therefore
shown separately.
Included in the analysis of total sales are the following amounts
relating to associates and joint ventures:
6 months 27 weeks to 53 weeks
to 30 Sept to
30 Sept 2000 31 March
2001 2001
£ million £ million £ million
Sweeteners and
starches
- Americas 89 88 158
- Europe 72 64 119
- Rest of the world 13 19 33
---- ---- ----
174 171 310
Animal feed and bulk 2 3 4
storage
Other businesses and - 1 5
activities
---- ---- ----
176 175 319
==== ==== ====
PAGE NINE OF THIRTEEN
TATE & LYLE PLC
NOTES TO INTERIM STATEMENT (continued)
For the 6 months to 30 September 2001
2. Segmental analysis of profit before interest
-------------------------------------------------------------------------
Before After
Ongo- West- Conti- Discon- excep- Excep- except-
6 months to 30 ing ern nuing tinued tional tional tional
September 2001 activ- Sugar(v)activ- activ- items items(vi) items
(unaudited) ities ities ities
£m £m £m £m £m £m £m
-------------------------------------------------------------------------
Sweeteners and
starches
- Americas 64* (1) 63* (18) 45* - 45*
- Europe 53* - 53* - 53* 4 57*
- Rest of the 4 - 4 - 4 - 4
world
---- ---- ---- ---- ---- ---- ----
121 (1) 120 (18) 102 4 106
Animal feed and 1 - 1 - 1 - 1
bulk storage
Other businesses (10) - (10) - (10) - (10)
and activities
---- ---- ---- ---- ---- ---- ----
112 (1) 111 (18) 93 4 97
---- ---- ---- ---- ---- ---- ----
* These profit figures include £2 million of goodwill amortisation.
27 weeks to 30 September 2000 (unaudited restated)
-------------------------------------------------------------------------
Sweeteners and
starches
- Americas 66 - 66 (9) 57 (70) (13)
- Europe 48** - 48** - 48** - 48**
- Rest of the 5 - 5 1 6 5 11
world
---- ---- ---- ---- ---- ---- ----
119 - 119 (8) 111 (65) 46
Animal feed and 6 - 6 (4) 2 (3) (1)
bulk storage
Other businesses (9) - (9) 2 (7) 3 (4)
and activities
---- ---- ---- ---- ---- ---- ----
116 - 116 (10) 106 (65) 41
** These profit figures include £1 million of goodwill amortisation.
53 weeks to 31 March 2001 (audited restated)
Sweeteners and
starches
- Americas 116*** (3) 113*** (17) 96*** (302) (206)***
- Europe 75**** - 75**** - 75**** (2) 73****
- Rest of the 9 - 9 5 14 5 19
world
---- ---- ---- ---- ---- ---- ----
200 (3) 197 (12) 185 (299) (114)
Animal feed and 14 - 14 (5) 9 (5) 4
bulk storage
Other businesses (15) - (15) 1 (14) 6 (8)
and activities
---- ---- ---- ---- ----- ---- -----
199 (3) 196 (16) 180 (298) (118)
*** These profit figures include £2 million of goodwill amortisation.
**** These profit figures include £3 million of goodwill amortisation.
(v) It is planned to dispose of this business, which is therefore shown
separately.
(vi) Comparative figures have been restated following the adoption of a
new accounting standard FRS 19 on deferred taxation, as described
in note 9.
PAGE TEN OF THIRTEEN
TATE & LYLE
NOTES TO INTERIM STATEMENT (continued)
For the 6 months to 30 September 2001
3. Earnings/(losses) per share
----------------------------------------------------------------------
The basic earnings per share of 9.4p (27 weeks to 30 September 2000
losses of 5.8p, 53 weeks to 31 March 2001 losses of 50.0p) are
calculated by dividing profits after taxation and minority
interests and preference dividend of £45 million (September 2000 -
loss of £27 million, March 2001 - loss of £236 million), by the
weighted average number of ordinary shares in issue during the
period 478,797,825 (September 2000 - 463,404,780; March 2001 -
472,105,697).
The diluted earnings per share are calculated on the assumptions
that the outstanding options over 2,414,708 shares had been
exercised and that the funds so generated would be used to purchase
1,821,358 ordinary shares at the average price during the period of
260p, thereby increasing the average number of shares to
479,391,175.
Earnings / (losses) Diluted earnings /
(losses) per share
6 27 53 6 27 53
months weeks weeks months weeks weeks
to to to to to 30 to
30 Sept 30 31 30 Sept 31
2001 Sept March Sept 2000 March
2000 2001 2001 2001
----------------------------------------------------------------------
Diluted earnings 45 (27) (236) 9.4 (5.8) (50.0)
of the period
Goodwill 4 1 5 0.8 0.2 1.1
amortisation
Exceptional items (4) 69 301 (0.8) 14.9 63.7
-------------------------------------------------
Diluted earnings
before goodwill 45 43 70 9.4 9.3 14.8
amortisation and
exceptional items
=================================================
Audited
Unaudited Unaudited 53
6 27 weeks
months weeks to
4. Analysis of net cash inflow from to to 31
operating activities 30 Sept 30 Sept March
2001 2000 2001
£million £million £million
----------------------------------------------------------------------
Operating profit 77 90 151
Depreciation of tangible 58 66 132
fixed assets
Amortisation of goodwill 4 1 5
Change in working capital 76 38 (69)
Net cash inflow from 215 195 219
operating activities
5. Cash flow/net debt reconciliation
----------------------------------------------------------------------
Net cash inflow/(outflow) before
financing and management of 92 (25) (104)
liquid resources
Changes in debt not involving
cash flow:
- Assumed on acquisition of - - (1)
subsidiaries
- Reduction on disposal of 12 10 8
subsidiaries
- Exchange movements 12 (18) (59)
- Amortisation of bond discount (1) - (2)
------- ------- -------
Reduction/(increase) in net 115 (33) (158)
borrowings
Net borrowings at start of (963) (805) (805)
period
------- ------- -------
Net borrowings at end of period (848) (838) (963)
======= ======= =======
PAGE ELEVEN OF THIRTEEN
TATE & LYLE
NOTES TO INTERIM STATEMENT (continued)
For the 6 months to 30 September 2001
Unaudited Unaudited Audited
6. Analysis of net debt 30 September 30 September 31 March
2001 2000 2001
£million £million £million
---------------------------------------------------------------------
Investments and cash at bank 166 176 117
and in hand
Borrowings due within one year (443) (158) (426)
Borrowings due after more than (571) (856) (654)
one year
------ ------ ------
(848) (838) (963)
====== ====== ======
7. Average exchange rates
---------------------------------------------------------------------
US Dollar £1 = $ 1.43 1.50 1.48
Euro £1 = Euro 1.62 1.64 1.63
8. Period end exchange rates
---------------------------------------------------------------------
US Dollar £1 = $ 1.47 1.48 1.42
Euro £1 = Euro 1.61 1.68 1.61
9. Basis of Preparation
---------------------------------------------------------------------
The foregoing accounts are prepared on the basis of the
accounting policies set out in the 2001 Annual Report for the 53
weeks to 31 March 2001 except that the accounting standard FRS 19
'Deferred Tax' has been adopted in the interim report for the
first time. Deferred tax at 25 March 2000 and at 31 March 2001
has been increased by £136 million and £145 million respectively.
Following adjustments to purchased goodwill and exceptional write
downs on planned sales of businesses, retained profits at 25
March 2000 and 31 March 2001 are reduced by £119 million and £92
million respectively. In addition the tax charge for the 27
weeks to 30 September 2000 has been restated, increasing by £2
million to £24 million, and for the 53 weeks to 31 March 2001
increasing by £5 million to £40 million.
The balance sheet as at 31 March 2001 has been abridged from the
full Group accounts, which received an auditors' report which was
unqualified and did not contain any statement concerning
accounting records or failure to obtain necessary information and
explanations. The full Group accounts have been delivered to the
Registrar of Companies.
The results for the 6 months to 30 September 2001 and the 27
weeks to 30 September 2000 and the balance sheets at 30 September
2001 and at 30 September 2000 are neither audited nor reviewed.
TATE & LYLE
NOTES TO INTERIM STATEMENT (continued)
For the 6 months to 30 September 2001
10. Net margin analysis
--------------------------------------------------------------------- --
2001 2000 2001
6 months to 27 weeks to 53 weeks to
30 September 30 September 31 March
-----------------------------------------------------------------------
Ongoi- All Ongoi- All Ongoi- All
Before goodwill ng Activ- ng activ- ng activ-
amortisation and activ- ities activ- ities activ- ities
exceptional items ities ities ities
% % % % % %
-----------------------------------------------------------------------
Sweeteners and
starches
- Americas 10.1 4.8 10.6 5.8 9.8 5.2
- Europe 8.0 8.0 8.0 8.0 6.6 6.6
- Rest of the world 1.6 1.6 2.4 2.3 1.8 2.4
Sweeteners and 7.9 5.6 8.3 6.0 7.1 5.2
starches average
Animal feed and bulk 0.6 0.6 4.3 0.9 4.4 2.2
storage
Group 6.4 4.5 7.2 5.0 6.2 4.5
After goodwill
amortisation and
exceptional items
Sweeteners and
starches
- Americas 4.6 (1.3) (10.9)
- Europe 8.3 7.9 6.2
- Rest of the world 1.6 4.3 3.3
Sweeteners and 5.6 2.5 (3.1)
starches average
Animal feed and bulk 0.6 (0.5) 1.0
storage
Group 4.5 1.9 (2.8)
PAGE TWELVE OF THIRTEEN
TATE & LYLE
NOTES TO INTERIM STATEMENT (continued)
For the 6 months to September 2001
11. Ratio analysis
----------------------------------------------------------------------
Unaudited Restated*
Unaudited restated* 53 weeks
6 months 27 weeks to
to to 31 March
30 September 30 September 2001
2001 2000
Gearing
Gearing = Net borrowings 848 838 963
-------------- ----- ----- -----
Total net assets 1,036 1,125 1,062
= 82% = 74% = 91%
Interest Cover - Tate & Lyle PLC and its subsidiaries
=Operating profit before goodwill amortisation and exceptional items
-------------------------------------------------------------------
Net interest payable
81 91 156
-- -- --
27 35 67
= 3.0 = 2.6 = 2.3
times times times
Dividend Cover before goodwill amortisation and
exceptional items
= EPS (basic)
--------------
Total ordinary dividend/share
9.4 9.3 14.8
5.5 5.5 17.8
= 1.7 = 1.7 = 0.8
times times times
Return on Net Operating Assets
= Profit before interest, tax and exceptional items
-------------------------------------------------
Average net operating assets
93 106 180
2,084 2,061 2,116
= 8.9% = 10.3% = 8.5%
Net operating assets are
calculated as:
Total net assets 1,036 1,125 1,062
Add back: Net borrowings 848 838 963
Deduct unallocated assets - 116 94 142
dividends & tax
----- ----- -----
Net operating assets 2,000 2,057 2,167
----- ----- -----
Average net operating assets 2,084 2,061 2,116
* Comparative figures have been restated following the adoption
of a new accounting standard FRS 19 on deferred taxation, as
described in note 9.
PAGE THIRTEEN OF THIRTEEN
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