Final Results
March 22 2002 - 2:00AM
UK Regulatory
RNS Number:4070T
AGA Foodservice Group PLC
22 March 2002
Date: 22nd March 2002
FOR IMMEDIATE RELEASE
AGA FOODSERVICE GROUP PLC
2001 PRELIMINARY RESULTS
HIGHLIGHTS
Full year to 2001 2001 2000 2000
_____________ ____ ____ ____ ____
31st December
_____________
2001
____
Continuing ex Continuing ex
discontinuing Total discontinuing Total
£m £m £m £m
Turnover 209.8 370.3 183.8 969.1
Operating profit
before
exceptional
costs &
goodwill
amortisation 22.6 28.0 20.6 102.0
Profit before
tax 24.7 30.8
Shareholders'
funds 258.4 375.4
Net cash /
(borrowings) 116.1 (304.3)
Earnings per
share -
Before disposal
of businesses
and goodwill
amortisation 13.0p 22.6p
Before disposal
of businesses,
exceptional
costs and
goodwill 13.9p 22.7p
Dividend per
share 5.0p 13.2p
* Aga Foodservice delivered a good trading performance in 2001 and this
has continued at the start of 2002.
* The consumer businesses, Fired Earth and Elgin & Hall, and the
foodservice businesses, Millers and Adamatic, all acquired in the
second half of 2001, are performing well and present new growth
opportunities.
* With Leisure and Flavel cookers and Flavel fire brands sold, a major
campaign backed by new products is to be launched for Rangemaster,
the Group's conventional cooker brand.
* Net cash at 31st December 2001 was £116 million. The Domain Home
Fashions acquisition announced this week is one further step in a
continuing acquisition programme.
"2001 was a successful year financially and strategically. Aga itself is now
the centre of a growing brand-led consumer operation and we are continuing to
expand in niche foodservice markets. Opportunities for growth are available
to us and with major new product initiatives underway, the Group can look
forward to 2002 with optimism."
William McGrath
Chief Executive
Enquiries:
William McGrath, Chief Executive 0207 404 5959 (today)
Shaun Smith, Finance Director 0121 742 2366 (thereafter)
Jonathan Glass (Brunswick) 020 7404 5959
Aga Foodservice Group plc
2001 Preliminary Statement
CHAIRMAN'S AND CHIEF EXECUTIVE'S STATEMENTS
2001 was a successful year for the Group in its new form. We established a
clear identity in our chosen consumer and foodservice markets. Trading
performance was commendable and a sound platform was developed for sustained
growth.
Considerable progress was achieved in a difficult year for some of our key
customers, notably in the rural economy and in the tourism industry. On the
consumer side we invested in distribution and in product development,
creating a base for an international brand-led business headed by Aga. In
foodservice we expanded our product range, notably in bakery and continued to
build on relationships with our national account customers.
Developing the Group
2001 started with the sale of our Pipe Systems operations to Etex. The
transaction proved well-timed given the difficult market conditions that
emerged for industrial groups during the year. The sale enabled us to return
£335 million to shareholders and the tender mechanism presented all
shareholders with the opportunity to decide whether they wished to retain
their investment in the Group in its new form. The return of capital was
structured to leave the Group with a strong balance sheet to invest in the
business and to seek acquisition opportunities.
We were successful during the second half of the year in completing four
complementary acquisitions. The consumer side was broadened by the
acquisition of Fired Earth, the UK's leading home fashions business, and
Elgin & Hall, the fireplace surround designer and manufacturer. In commercial
catering we acquired two additional bakery operations, Millers, giving us the
number one position in the UK in-store bakery market and Adamatic in the USA,
presenting the opportunity to establish comparable businesses in North
America. On 19th March 2002 we acquired Domain Home Fashions, the East Coast
US retailer, for up to $29 million. It provides retail expertise and a fast
and cost effective way of obtaining a significant presence in the US market.
Further acquisitions are to be expected as 2002 progresses.
Since the start of 2002 we have moved to make Rangemaster a major cooking
brand and have sold our commodity cooking brands, Leisure and Flavel. The
proceeds of these sales, together with that of Flavel Fires, for in aggregate
up to £6.6 million will enable us to develop our Leamington factory as a
centre of excellence for range cooking at a zero net cost.
Financial Performance
Trading performance in the year showed us to be on the right track. Our
leading consumer operations, Aga-Rayburn and Fired Earth, met expectations.
Aga's 'Iron Age' campaign is the cornerstone of our new more assertive sales
and marketing approach. Leisure has for some time given us low levels of
return because of increasingly intense price competition and this led to the
decision to exit commodity cooker markets. In foodservice there were strong
performances in bakery and refrigeration.
Turnover from continuing operations (excluding discontinuing) rose from
£183.8 million to £209.8 million and operating profits before goodwill and
exceptionals rose from £20.6 million to £22.6 million, with organic growth of
4% being achieved. Profit before tax and goodwill was £31.3 million. Earnings
per share were 13.0 pence. To reflect the circumstances of the smaller group
after the Pipe Systems sale the dividend level has been reset. A final
dividend of 3.3 pence per share is being recommended bringing the total for
the year to 5.0 pence per share. The dividend is covered 2.6 times. The Group
continues to have a longer term target of three times dividend cover.
The balance sheet at the end of 2001 was very strong. Following the disposal,
return of capital and subsequent new investments made last year, cash at bank
was £116.1 million or 91.0 pence per share. Net assets were £258.8 million.
Strategy
In 2002 we will further develop the strategy we set out last year. In the
consumer field we aim to achieve growth by further development of our major
brands, led by Aga, and the expansion into overseas markets. Retailing is now
an important aspect of our consumer operations with further shop openings at
home and overseas and a widened product range emerging during the year.
Raising market awareness of existing products is just as important as new
product development. Looking forward, we believe, for example, that we have
particular opportunities in high-end consumer products, driven by our ability
to transfer technology from our commercial products.
In foodservice we will be looking to strengthen further relationships with a
number of key accounts, to benefit from the strong position we have developed
in bakery and refrigeration equipment and to develop overseas. In prime
cooking our major product introductions and upgrades will provide us with new
impetus.
Prospects
Aga Foodservice Group is now a focussed brand-led Group with significant
growth potential and the financial resources to support its plans. The
objectives set in 2001 were to strengthen operations and create more
substantial market growth opportunities. In 2001 much was achieved and the
Group is ready for further rapid development in the current year. The
cornerstones of our expansion are to make Aga into a major international
brand-led business and to grow the foodservice operations in defensible niche
markets more closely aligning the businesses with national accounts.
2002 has got off to a satisfactory start. Sales for Aga and our other retail
operations are ahead of last year. In foodservice we have obtained important
new business from accounts like Compass, Safeway and Sainsbury. While we
remain alive to the possible weakening of consumer spending and reduced
capital investment in some sections of our foodservice markets, we expect
that the new products and sales initiatives we have taken will enable the
Group to make good progress in the year.
C J Farrow W B McGrath
Chairman Chief Executive
22nd March 2002
APPENDIX TO 2001 PRELIMINARY RESULTS FOR AGA FOODSERVICE GROUP PLC
__________________________________________________________________
Consumer Operations (Turnover £107.1 million : Operating profit before
___________________
goodwill & exceptionals £11.9 million)
Aga-Rayburn had an excellent year. Progress was made in all areas of the
business and the potential for sustained growth became clearer. Under the
banner of "Project 10,000", launched in September 2001, Aga has set about
broadening the product range and the customer base and raising Aga sales to
over 10,000 by 2003. In 2001 orders were up by 5% to over 8,000.
Particular initiatives of the last year have included:
* A greater focus on distribution involving a large expansion of our
retail interests and an overall upgrade of our retailing approach with
increased training and support for our own stores and for distributors.
* The launch of the 'Iron Age' campaign featuring the Iron Age Man and
Woman and their Iron Age tools. It shows Aga as a design classic
fitting into contemporary and traditional settings.
* New store openings, including that of the flagship Knightsbridge store
and major refurbishments such as our Kidderminster store which now has
the largest display of Agas and Rayburns in the UK.
* New initiatives to boost Rayburn; Rayburn has great flexibility in
cooker only and cooker with hot water formats and the onus is now on
expanding its distribution structures to show Rayburns in more of our
owned and distributors' large format stores.
* The creation of a substantial cookware business; with Aga's broader
range of high quality cast iron and stainless cookware now available in
shops, online and via catalogues, Aga is becoming a leading UK cookware
specialist. Sales were up in the year by 50 per cent.
Having strengthened the base operation a further objective now is to broaden
the product range. This has already seen the coming of the 'New Iron Age'
with the launch of the Six-Four series, the conventional, unconventional Aga.
A top quality domestic fridge, styled to complement the Aga cooker and
produced to a commercial specification by Williams Refrigeration with Aga's
consumer design input will be launched shortly. These products which share
Aga's brand values of discrete affluence, comfort and reliability can become
important additions.
The next phase in developing Aga is to look to international markets. A
strengthened distributor base and service support has been put in place in
the USA. New marketing literature for the US market under the campaign 'Aga
Ranges : You're Ready' is now in use. This has been given considerable
impetus by the acquisition of Domain Home Fashions. A new concept store in
Boston covering our total consumer product offering is under development.
Similarly in Europe, Aga is to expand its existing outlets and is planning to
open an Aga/Fired Earth format inspirational store in the centre of Paris in
the summer.
The objective overseas and in more UK locations is to present a range of
complementary brands and products in destination stores. Here the acquisition
of Fired Earth was a key move. It brought not only its established ranges of
tiles, paints and bathrooms, but also additional retailing expertise. Since
the acquisition for £30 million in July 2001 it has performed well in its own
right and has worked with Aga to develop joint initiatives which are seen in
'Inspirational' stores at its head office at Adderbury, Warmington Mill near
Peterborough and shortly at a new store in Knutsford.
Elgin & Hall, a further empathetic brand, was acquired in December 2001 for
£4 million. It designs and makes hand painted fireplace surrounds. Its
authoritative position in interior design is recognised in its sector and the
greater resources and complementary products of the Group will accelerate its
development plans. It has taken on the marketing of Coalbrookdale Stoves and
is providing products for Fired Earth for its lifestyle range.
The Group's consumer product offering aims to be design-led and targets niche
markets. This led to the decision announced in January 2002 to move out of
commodity slot-in and eye-level cookers largely sold in highly competitive,
multiple retailers. The sale of our Flavel and Leisure cooker brands to BEKO
UK, part of the major international appliance group Arcelik, for up to £5.4
million followed. The transaction is expected to complete in April 2002. Our
workforce at Leamington Spa will fall by about 30 per cent to around 500. The
focus will now be on higher value added products sold under the Rangemaster
brand with the Group making the Leamington Spa factory its centre of
excellence for range cooking. Working with design teams across the Group,
Leamington Spa will manufacture Rangemaster, the Aga Masterchef and the
Falcon Professional Kitchen Range. These products will be given significantly
increased marketing resources.
Taken together the Group's consumer operations had a pleasing year with
turnover rising from £90.5 million to £107.1 million and operating profits
before goodwill and exceptionals increasing from £10.1 million to £11.9
million. Appropriately, Aga took the lead achieving record profits even after
£0.9 million final quarter expenditure on the Iron Age campaign, the benefit
of which will be seen primarily in 2002. Fired Earth's turnover was up year
on year by nearly 20 per cent as new stores came on stream. At Leisure,
volumes were strong, but the business was held back by margin pressures on
sales of slot-in and eye-level cookers. Overall consumer operations are
achieving in excess of 10 per cent return on sales and with the repositioning
of Leisure this can improve further.
Foodservice Operations (Turnover £102.7 million : Operating profit before
______________________
goodwill & exceptionals £10.7 million)
In foodservice the Group is seeking to develop strong, international,
defensible niche market positions and this is epitomised by the move into
bakery. Mono, acquired in July 2000, proved a significant success as
investment programmes from key customers such as Safeway in its in-store
bakeries boosted sales. The Millers Bakery acquisition in December 2001
broadened the UK customer base, most notably with Sainsbury and Somerfield.
The focus that Millers has on facilities management and in particular deep
cleaning of foodservice equipment in-store, linked to existing maintenance
service strengths within the Group through Mono and through AFE Serviceline,
now means that the Group is becoming a major force in facilities management
with supermarkets, as well as being the UK market leader in in-store bakery
equipment.
The acquisition of Adamatic based near Victory's production facilities in New
Jersey in December 2001 gave impetus to expansion in the USA. Mono had had a
presence in the USA for a number of years, but had not had the resources to
create a sustainable position. With Adamatic's own lines and established
manufacturing in combination with product and expertise from Europe, the
Group has the opportunity to influence US markets in moving to in-store
bakery concepts.
The Group is already a market leader in the UK in some important market areas
such as prime cooking through Falcon. Market conditions were difficult for
key target sectors of tourism and hotels and a number of large distributors
left the market. Falcon performed creditably in focussing on new
opportunities, notably in the public sector, where it won contracts, for
example, with the Royal Navy. Falcon further recognised that more ambitious
marketing programmes and greater product innovation were required. Whole new
ranges to take it into the snack bar and smaller restaurant markets combined
with upgrades to its core heavier duty ranges were launched at Hotelympia
2002 in February which will bring real benefits as the year progresses.
In refrigeration the Group's principal refrigeration businesses are Williams
in the UK and Victory in the USA. Williams Refrigeration also has a presence
in France, China and Australia. Williams Refrigeration had a strong year
responding to challenging market conditions, picking up important contracts
with major national accounts such as Whitbread and Sainsbury. The Glycol
technology Williams has been developing is steadily winning market
acceptance, most recently seen in use at the new Vodafone head office in
Newbury. In the USA Victory Refrigeration had a further difficult year not
least because its cost base remained high. In the last quarter this improved
and with significant new contracts in place and as part of a broader grouping
with the acquisition of Adamatic, Victory is itself better placed than for
some time with changes in management and working practices leading to greater
production flexibility. Efficiencies have improved and sales have been
steadily increasing as a result of re-established links with key buying
groups. The sourcing links for both Victory and Adamatic will be developed
from our businesses in Europe.
In aligning the foodservice operations closely with national accounts, the
Group has the benefit of AFE Online, its equipment distributor and AFE
Serviceline, the service provider. Compass, for example, has become over the
last 2 years AFE Online's largest account and it now sources nearly all its
light and heavy equipment from the Group. AFE Serviceline has an exceptional
client base and with over 120 engineers is an established market leader.
Overall the foodservice operations had a sound year. Turnover increased from
£93.3 million to £102.7 million and operating profits before goodwill and
exceptionals rose from £10.5 million to £10.7 million. Margin improvements
proved difficult to achieve in quiet markets and sustained efficiency
improvements were required.
Financial Analysis
The transitional phase from Glynwed to Aga Foodservice is reflected in the
accounts and adds some complexity. Overall operating profits before goodwill
and exceptionals were £22.6 million nearly 10 per cent up on the prior year.
Return on sales reached 10.8 per cent. If discontinuing operations are
excluded, the consumer operations show an encouraging improvement in the
quality of operating margins.
The Group has invested £3 million over two years in developing Agalinks.
These start up costs have been reported as exceptional operating costs.
The profit from discontinued activities of £3.7 million is mainly the post
goodwill contribution of Pipe Systems in the period to 9th March 2001. Pre
goodwill the discontinued profit is £6.0 million. The operating losses of
£0.6 million made in the period on the commodity segment of Leisure's cooker
sales has been shown as discontinuing.
The net interest receivable figure of £5.6 million reflects the interest on
cash balances, resulting from the disposal of Pipe Systems and invested with
a range of international banks and liquidity funds at an average of 4.5 per
cent, while interest costs earlier in the year reflected the cost of debt
prior to the completion of the sale of Pipe Systems.
The tax charge shown in the accounts is 26 per cent on profits before tax of
£30.7 million, excluding goodwill, and 32 per cent taking account of
goodwill. The currently configured Group will be close to a UK standard rate
tax payer by 2003 at around 30 per cent.
The changed Group reviewed its approach to pensions provision in the year.
Like many others it closed its final salary scheme for new entrants and
introduced a money purchase scheme. It accelerated a shift to defensive
investment policies in early 2001. Following transfers resulting from the
sale of the Pipe Systems business over half the funds assets will be in fixed
income bonds and property.
Based on the valuation as at 1st July 2000 SSAP 24 calculations showed a
sound financial position and an appreciable surplus. For 2002 the Company has
decided to make a cash contribution of around £6 million to take into account
the market conditions which have recently impacted pension funds pending the
next full valuation in June 2003. FRS 17 reporting requirements at 31st
December 2001 showed a small surplus with a market valuation of assets in the
scheme of £686 million and liabilities assessed at £685 million.
Earnings per share before disposal of businesses and goodwill amortisation
were 13.0 pence on the basis of the weighted average number of shares in
issue in the year being 174.9 million. There are now 128 million shares in
issue. The dividend of 5 pence per share was covered 2.6 times reflecting a
move towards the stated benchmark established of three times dividend cover.
Following the disposal of Pipe Systems the Group's cash position at the end
of the year was strong. Cash inflow from continuing operations was £17.2
million. Capital expenditure was £9.5 million compared with depreciation of
£10.4 million - reflecting the relative low capital intensity of the
businesses in the Group. Working capital of the continuing group increased by
£6.5 million as volumes picked up towards the end of the year.
The Group had net cash at 31st December 2001 of £116 million after spending
over £50 million on acquisitions in the year of which £21 million was in
December 2001. The Group would expect to invest the cash in supporting
organic growth and acquisitions over the course of 2002. It will, however,
then review the capital requirement and growth opportunities of the
businesses in the longer term to ensure the business is not over capitalised.
GROUP PROFIT AND LOSS ACCOUNT
Restated
2001 2000
________ ________
£m £m
Turnover
Continuing operations 198.7 183.8
Acquisitions 11.1 -
______________________________________________________________________________
209.8 183.8
Discontinuing operations 22.0 20.8
______________________________________________________________________________
Total continuing operations 231.8 204.6
Discontinued operations 138.5 764.5
______________________________________________________________________________
Total turnover 370.3 969.1
______________________________________________________________________________
Operating profit
Continuing operations 21.4
Acquisitions 1.2
__________________________________________________________________
Total continuing operating profit before exceptional
costs and goodwill amortisation 22.6 20.6
Exceptional costs (2.3) (0.5)
Goodwill amortisation (4.3) (3.1)
______________________________________________________________________________
16.0 17.0
______________________________________________________________________________
Continuing operations 15.5 17.0
Acquisitions 0.5 -
______________________________________________________________________________
16.0 17.0
Discontinuing operations (0.6) -
______________________________________________________________________________
Total continuing operations 15.4 17.0
Discontinued operations 3.7 69.4
______________________________________________________________________________
Total operating profit 19.1 86.4
Provision for loss on disposal of businesses - (36.0)
______________________________________________________________________________
Profit before interest and tax 19.1 50.4
Interest receivable 10.9 2.1
Interest payable (5.3) (21.7)
______________________________________________________________________________
Net interest receivable / (payable) 5.6 (19.6)
______________________________________________________________________________
Profit before tax 24.7 30.8
Tax on profit on ordinary activities (7.9) (22.1)
______________________________________________________________________________
Profit on ordinary activities after tax 16.8 8.7
Equity minority interests (0.1) (0.2)
______________________________________________________________________________
Profit attributable to shareholders 16.7 8.5
Dividends (7.7) (32.0)
______________________________________________________________________________
Profit retained / (transfer from reserves) 9.0 (23.5)
______________________________________________________________________________
Earnings per share p p
Before disposal of businesses and goodwill
amortisation 13.0 22.6
Before disposal of businesses, exceptional costs and
goodwill amortisation 13.9 22.7
Basic 9.5 3.5
Diluted 9.5 4.1
_____________________________________________________________________________
GROUP BALANCE SHEET
Restated
As at 31st December 2001 2000
___________________ ________ ________
£m £m
Fixed assets
Goodwill 97.7 275.8
Tangible assets 49.0 288.2
______________________________________________________________________________
Total fixed assets 146.7 564.0
______________________________________________________________________________
Current assets
Stocks 36.8 194.4
Debtors 60.7 192.9
Cash at bank and in hand 157.4 33.5
______________________________________________________________________________
Total current assets 254.9 420.8
______________________________________________________________________________
Creditors - amounts falling due within one year
Operating creditors (59.0) (163.9)
Borrowings (32.7) (56.8)
Exchangeable shares - (33.5)
Tax and dividends payable (11.0) (33.6)
______________________________________________________________________________
Total amounts falling due within one year (102.7) (287.8)
______________________________________________________________________________
Net current assets 152.2 133.0
______________________________________________________________________________
Total assets less current liabilities 298.9 697.0
Creditors - amounts falling due after more than one year
Borrowings (8.6) (247.5)
Provisions for liabilities and charges (31.5) (72.8)
______________________________________________________________________________
Total net assets employed 258.8 376.7
______________________________________________________________________________
Capital and reserves
Called up share capital 31.9 60.6
Share premium account 56.7 25.9
Revaluation reserve 5.8 7.0
Capital redemption reserve 35.0 2.3
Profit and loss account 129.0 279.6
______________________________________________________________________________
Total shareholders' funds 258.4 375.4
Equity minority interests 0.4 1.3
______________________________________________________________________________
Total funds 258.8 376.7
______________________________________________________________________________
GROUP CASH FLOW STATEMENT
Year to 31st December 2001 2000
_______________________ _______ _________
£m £m
Net cash (outflow) / inflow from operating activities (12.3) 106.0
Net returns on investments and servicing of finance 4.9 (17.0)
Tax paid (4.3) (20.9)
Net capital expenditure and financial investment (9.5) (27.4)
Net cash flow from acquisitions and disposals 809.0 (19.1)
Equity dividends paid (24.8) (32.0)
______________________________________________________________________________
Net cash inflow / (outflow) before financing 763.0 (10.4)
______________________________________________________________________________
Financing
- issue of ordinary share capital 34.8 0.1
- buyback of ordinary share capital (336.3) -
- (decrease) / increase in debt (321.5) 3.4
______________________________________________________________________________
Net financing (623.0) 3.5
______________________________________________________________________________
Increase / (decrease) in cash in the year 140.0 (6.9)
______________________________________________________________________________
Reconciliation of net cash flow to movement in net
cash / (borrowings)
Increase / (decrease) in cash in the year 140.0 (6.9)
Decrease / (increase) in debt 321.5 (3.4)
______________________________________________________________________________
Change in net debt resulting from cash flows 461.5 (10.3)
Borrowings acquired with acquisitions (22.3) (4.5)
Loan notes issued for acquisitions (20.2) (7.1)
Exchange adjustment 1.4 (8.5)
______________________________________________________________________________
Increase / (decrease) in net cash 420.4 (30.4)
Opening net borrowings (304.3) (273.9)
______________________________________________________________________________
Closing net cash / (net borrowings) 116.1 (304.3)
______________________________________________________________________________
Reconciliation of operating profit to net cash (outflow) / inflow from
operating activities
2001 2000
_______________________________ ________________________________
£m £m £m £m £m £m
Continuing Discontinued Total Continuing Discontinued Total
Operating
profit 16.0 3.7 19.7 17.0 69.4 86.4
Discontinuing
operations (0.6) - (0.6) - - -
Goodwill
amortisation 4.3 2.3 6.6 3.1 12.0 15.1
Depreciation 4.8 5.6 10.4 3.9 22.8 26.7
Profit on
disposal of
fixed
assets (0.8) (0.6) (1.4) (0.5) (1.9) (2.4)
(Increase)
/ decrease
in stocks (3.6) (8.5) (12.1) (1.3) (11.8) (13.1)
(Increase)
/ decrease
in debtors 2.0 (19.3) (17.3) 0.9 4.8 5.7
Increase /
(decrease)
in
creditors (4.0) (12.2) (16.2) 4.1 (9.9) (5.8)
Increase /
(decrease)
in
provisions (0.9) (0.5) (1.4) (4.1) (2.5) (6.6)
______________________________________________________________________________
Net cash
(outflow) /
inflow from
operating
activities 17.2 (29.5) (12.3) 23.1 82.9 106.0
______________________________________________________________________________
SUPPLEMENTARY STATEMENTS
Year to 31st December 2001 2000
_________________________ ________ ______
£m £m
Statement of total recognised gains and losses
Profit attributable to shareholders 16.7 8.5
Exchange adjustment on net investments (0.3) 8.2
______________________________________________________________________________
Total recognised gains and losses relating to the year 16.4 16.7
Prior year adjustment (4.2) -
______________________________________________________________________________
Total recognised gains and losses since last annual report 12.2 16.7
______________________________________________________________________________
The prior year adjustment relates to the implementation of FRS 19 Deferred
Tax, which has resulted in an increase in tax on profit on ordinary
activities of £0.5m.
Restated
Year to 31st December 2001 2000
________________________ _________ __________
£m £m
Reconciliation of movements in shareholders' funds
Total recognised gains and losses relating to the
year 16.4 16.7
Dividends (7.7) (32.0)
New share capital
subscribed - share premium 30.8 0.1
- share capital 4.0 -
Share buybacks - ordinary shares (32.7) -
- profit and loss
account (336.3) -
- capital redemption
reserve 32.7 -
Goodwill reinstated on disposals 175.8 -
______________________________________________________________________________
Net decrease in shareholders' funds (117.0) (15.2)
Shareholders' funds at 1st January (2000: originally
£394.8m before prior year adjustment of £4.2m) 375.4 390.6
______________________________________________________________________________
Shareholders' funds at 31st December 258.4 375.4
______________________________________________________________________________
SEGMENTAL ANALYSIS
2001 2000
______________________ _____________________
Net Net
Operating operating Operating operating
By Turnover profit assets Turnover profit assets
business
group
£m £m £m £m £m £m
Consumer
Products 107.1 11.9 44.5 90.5 10.1 34.5
Foodservice
Products 102.7 10.7 38.1 93.3 10.5 32.3
______________________________________________________________________________
209.8 22.6 82.6 183.8 20.6 66.8
Discontinuing
operations 22.0 (0.6) - 20.8 - -
______________________________________________________________________________
Total
continuing
operations 231.8 22.0 82.6 204.6 20.6 66.8
Exceptional
costs -
continuing - (2.3) - - (0.5) -
Goodwill
amortisation -
continuing - (4.3) - - (3.1) -
Discontinued
operations 138.5 3.7 (21.2) 764.5 69.4 362.6
______________________________________________________________________________
Total Group 370.3 19.1 61.4 969.1 86.4 429.4
______________________________________________________________________________
Turnover between business groups is immaterial. Net operating assets exclude
net debt, dividends payable, taxation balances and goodwill. Continuing
goodwill amortisation on continuing operations relates to Foodservice
Products £3.6m (2000: £3.1m) and Consumer Products £0.7m (2000: nil).
Consumer Products includes acquisition turnover of £11.1m and operating
profit of £0.5m.
2001 2000
______________________ _____________________
Net Net
Operating operating Operating operating
By Turnover profit assets Turnover profit assets
geographical
origin
£m £m £m £m £m £m
United
Kingdom 182.9 20.1 77.9 156.6 19.2 63.9
North
America 22.0 (0.1) 3.4 21.5 0.4 1.3
Rest of
World 4.9 0.3 1.3 5.7 0.5 1.6
______________________________________________________________________________
209.8 20.3 82.6 183.8 20.1 66.8
Discontinuing
operations 22.0 (0.6) - 20.8 - -
______________________________________________________________________________
Total
continuing
operations 231.8 19.7 82.6 204.6 20.1 66.8
Goodwill
amortisation -
continuing - (4.3) - - (3.1) -
Discontinued
operations 138.5 3.7 (21.2) 764.5 69.4 362.6
______________________________________________________________________________
Total
Group 370.3 19.1 61.4 969.1 86.4 429.4
______________________________________________________________________________
Goodwill amortisation on continuing operations relates to United Kingdom
£3.5m (2000: £2.3m) and North America £0.8m (2000: £0.8m).
Turnover by geographical destination 2001 2000
______________ _______________
£m % £m %
United Kingdom 171.1 81.6 144.4 78.6
North America 22.3 10.6 22.3 12.1
Rest of World 16.4 7.8 17.1 9.3
______________________________________________________________________________
Total continuing operations excluding
discontinuing 209.8 100.0 183.8 100.0
_____________________________________________________________________________
EARNINGS PER SHARE
Restated
Year to 31st December 2001 2000
_____________________ ________ ________
£m £m
Earnings before disposal of businesses
Profit on ordinary activities after tax 16.8 8.7
Minority interests (0.1) (0.2)
Disposal of businesses net of tax - 34.3
Goodwill amortisation net of tax 6.0 12.0
______________________________________________________________________________
Earnings before disposal of businesses and goodwill
amortisation 22.7 54.8
______________________________________________________________________________
Exceptional costs net of tax 1.6 0.3
______________________________________________________________________________
Earnings before disposal of businesses, exceptional
costs and goodwill amortisation 24.3 55.1
______________________________________________________________________________
Earnings
Profit on ordinary activities after tax 16.8 8.7
Minority interests (0.1) (0.2)
______________________________________________________________________________
Earnings - for basic EPS 16.7 8.5
Dilutive effect of exchangeable shares - 2.0
______________________________________________________________________________
Earnings - for diluted EPS 16.7 10.5
______________________________________________________________________________
Weighted average number of shares in issue million million
For basic EPS calculation 174.9 242.5
Dilutive effect of exchangeable shares - 14.9
______________________________________________________________________________
For diluted EPS calculation 174.9 257.4
______________________________________________________________________________
Earnings per share p p
Before disposal of businesses and goodwill
amortisation 13.0 22.6
Before disposal of businesses, exceptional costs and
goodwill amortisation 13.9 22.7
Basic 9.5 3.5
Diluted 9.5 4.1
______________________________________________________________________________
NOTES
1. Dividends
The Board has approved the payment of a final dividend amounting to 3.3p
per share (2000: 8.8p). An interim dividend of 1.7p per share (2000: 4.4p)
has already been paid, making the total dividend for the year 5.0p per
share (2000: 13.2p). The final dividend will be paid on 7th June 2002 to
shareholders registered on 3rd May 2002.
2. Exchange rates
The profit and loss accounts of overseas subsidiaries are translated into
sterling using average exchange rates, balance sheets are translated at
year end rates. The main currencies and exchange rates are:
Year to 31st December 2001 2000
_____________________ _____ _____
Average
CAD 2.23 2.26
EUR 1.61 1.64
USD 1.44 1.52
Period end
CAD 2.32 2.24
EUR 1.63 1.59
USD 1.46 1.49
3. Tax
2001 2000
_____ _____
£m £m
United Kingdom corporation tax based on a rate of 30%
(2000: 30%)
Current tax on income for year 5.3 27.4
Adjustments in respect of prior years 1.1 (1.6)
______________________________________________________________________________
6.4 25.8
Double taxation relief - (20.6)
Deferred tax 0.4 -
______________________________________________________________________________
Total United Kingdom tax 6.8 5.2
______________________________________________________________________________
Overseas tax
Current tax on income for year 1.2 15.5
Adjustments in respect of prior years 0.1 (0.3)
______________________________________________________________________________
1.3 15.2
Deferred tax (0.2) 1.7
______________________________________________________________________________
Total overseas tax 1.1 16.9
Tax on profit on ordinary activities 7.9 22.1
______________________________________________________________________________
FIRST HALF 2002 FINANCIAL CALENDAR
Report and accounts posted 8th April 2002
Record date for final ordinary dividend 3rd May 2002
Annual General Meeting 9th May 2002
Final ordinary dividend payable 7th June 2002
2002 half year end 30th June 2002
The financial information set out in this announcement does not constitute
the Company's statutory accounts for the years ended 31st December 2001 and
2000 but is derived from those accounts. Statutory accounts for 2000 have
been delivered to the Registrar of Companies and those for 2001 will be
delivered following the Company's Annual General Meeting. The Company's
auditor has reported on these accounts; its reports were unqualified and
did not contain statements under section 237(2) or (3) of the Companies Act
1985.
This information is provided by RNS
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