Uniq PLC
10 November 2003
10 November 2003
UNIQ plc
Announcement of Interim Results
For the 26 weeks to 27 September 2003
2003 2002
£m £m %
Turnover(1) 470.9 428.7 + 10%
Operating profit (1), (2) 17.2 10.4 + 65%
Profit before tax(2) 11.4 10.1 + 13%
Exceptional items - 7.7
Earnings per share - Basic 6.3p 14.4p - 56%
- Adjusted(2) 11.0p 6.7p + 64%
(1) Continuing businesses
(2) Before exceptional items and goodwill amortisation. Profit before tax
after these items was £6.0m (2002: £12.4m)
• Strong first half performance reflecting early benefits from a clear
strategic focus on synergy, innovation and growth opportunities.
• Operating profit from continuing businesses for the first half, before
goodwill and exceptional items, at £17.2m is up 65% on prior year supported
by an improvement in revenue growth (+4% in constant currency).
• Significant recovery in the Marie business in France with operating profits
in Southern Europe quadrupled compared to previous year.
• UK business investing in further factory automation and supply chain
projects to improve efficiency.
• Interim dividend at 2.3 pence is increased by 35%.
Chief Executive, Bill Ronald, commenting on the results, said:
'We are pleased to report Interim results that reflect continued progress by
Uniq in delivering better profitability and an acceleration in revenue growth.
Whilst the markets we serve are ever more competitive, we have identified
further opportunities to improve our operating efficiency and to gain share of
market. Although the level of improvement in the first half is not sustainable
in the second we are confident that Uniq is on track to capitalise on the
foundations put in place over the last two years.'
Enquiries
UNIQ plc
Bill Ronald Chief Executive 01753 276004
Martin Beer Finance Director 01753 276160
Kathy Cuddihy Corporate Affairs Manager 01753 276017
Gavin Anderson & Company
Deborah Walter 020 7554 1420
Laura Hickman 020 7554 1431
Notes to Editors
Uniq plc is a pan-European chilled convenience food group focused on the value
added sector of the food industry and, in particular, the growing markets for
convenience foods in both the UK and mainland Europe. Uniq manufactures, sells
and distributes products to retail grocery chains and other food service outlets
in 15 countries throughout Europe. Products include, salads, sandwiches, ready
meals, sandwiches, fish and poultry products, desserts, spreads, sauces, dips
and dressings.
With market leading positions in the growing convenience foods markets of the UK
and Europe, the Group's annual sales last year were £899 million and the Group
employs 9,700 people at 10 sites in the UK and 21 sites in Continental Europe.
REPORT TO SHAREHOLDERS
For the Half Year ended 27 September 2003
REPORT TO SHAREHOLDERS
We are pleased to report Interim Results that show a significant improvement in
profitability and an acceleration in our revenue growth. This has been achieved
during a period of notable increase in the pace of change internally and at a
time when the business environment has become ever more competitive.
Financial results
The actions we have taken in the last two years continue to deliver a strong
recovery in profitability. Operating profit from the continuing business for
the first half, before goodwill and exceptional items, was £17.2 million, 65%
ahead of last year. This performance has been driven by the now embedded
benefits of last year's manufacturing projects, ongoing delivery of purchasing
synergies and recovery by the French business which more than quadrupled
operating profit.
Underlying sales growth, removing the impact of currency benefits, is ahead of
last year at 4% for the first half. Strong revenue gains were achieved in both
Northern Europe and the UK where, excluding a disappointing performance in
poultry, sales were 10% ahead of the comparable period. In France sales of hot
eating ready meals were negatively impacted by the extremely hot summer,
although this was more than offset by another excellent performance from
Spreads.
Profit before tax, goodwill and exceptional items was £11.4 million, 13% ahead
of last year. The prior year result included an FRS 17 Pension finance credit of
£1.1 million compared with a charge of £3.0 million in the first half this year.
Adding back these FRS 17 finance items, the improvement is 60%.
Strategic priorities
Our strategic priority is to deliver improved profitability through our focus on
synergy, innovation and growth.
Following a prolonged period of underperformance, the French business has
recovered rapidly. In the UK, the formation of a single business - following
last year's divestments - has created a strong foundation for further progress.
We remain focused on delivering the level of top line growth which we believe
this business portfolio is capable of achieving.
In addition we are continuing to innovate in both new product development and
processes. Highlights are in France, where we have built on the success of last
year's health spread launches by recently extending the ilo brand into yogurts,
and in the UK where we have extended our programme of automation into salads.
During the first half of the year we continued to strengthen the divisional
management teams and we have also concluded the scoping element of our Supply
Chain initiative. Thorough evaluations were undertaken in both the UK and
Northern Europe and significant benefits have been identified from enhancing our
processes, systems and production efficiency. The first implementation step, a
major project with an attractive financial payback to improve substantially
systems and procedures in the UK, has just been approved by the Board.
Dividend
As the new people and structures in each of the three divisions become firmly
established, we will be in a position to focus our business further on those
sectors that offer the highest potential for creating synergy, innovation and
growth. Against this background, and reflecting the Board's confidence in the
continuing improvement in the Group's trading performance, the interim dividend
has been set at 2.3 pence per share, an increase of 35% over the first half last
year.
Outlook
The first half has seen an extremely encouraging turnaround in business
performance since the low point in January 2002. Short term margin pressures in
the UK and Benelux, one off investments in the first steps of our supply chain
project and tougher prior year comparatives make the level of improvement
achieved in the first half unsustainable in the second half. Nonetheless we
remain confident of meeting our expectations for the full year.
Looking further ahead we believe that with the businesses we have in our
portfolio, and the further initiatives that we are putting in place, we will be
able to deliver underlying profit growth going forward that is above the average
for our industry sector.
BUSINESS REVIEW
Continuing Business Operating Profit
03/04 02/03 Change
£m £m %
United Kingdom 5.0 4.9 +2%
Southern Europe 8.7 2.1 +314%
Northern Europe 3.5 3.4 +3%
Total 17.2 10.4 +65%
This table is an extract from Note 1
For the Group, the benefit of a stronger Euro added £0.8 million to operating
profit in the period.
UNITED KINGDOM
Operating profit of £5.0 million was £0.1 million ahead of the prior year.
However, last year included a benefit of £1.5 million from insurance proceeds,
and excluding this item profit was up 47%. Turnover was 5% ahead of the
previous year although growth excluding the poultry business was 10% - an
excellent performance but one that will be difficult to sustain into the second
half. Despite the strengthening of the Euro in the first half, raw material
cost increases were limited to 1% due to the actions of our centralised
purchasing function.
Sandwiches & Salads continued to make good progress with 12% sales growth. This
was driven by increased volumes at Northampton and a full benefit from the
recovery in performance at Devizes. At the end of the first half Devizes lost a
contract with Costa Coffee which had been won last year, after a competitor
offered prices which we were not prepared to match. However we have already
replaced approximately half of the lost volumes and we are actively seeking to
replace the remaining business in the second half. A new automated salad line,
based on the technology in place in Northampton, has recently been commissioned
at Spalding to provide lower cost capacity for future growth.
Desserts had another strong period with sales up 8%. The market for chilled
desserts, while in strong growth, is becoming increasingly competitive. In
addition, since agreeing with Cadbury not to renew the long term licence, the
level of investment in this brand has been reduced: the consequent lower volumes
are in line with our expectations. We continue to discuss various options with
Cadbury in relation to our future trading relationship. Our business with Marks
& Spencer again grew strongly in the first half.
Meal Solutions had a disappointing first half, with sales in the poultry
business down 18% due in large part to the exit from Burger King. This volume
has yet to be replaced. Sales of fish were 7% ahead of last year due partly to
higher fish prices but also the launch of a range of Indian ready meals with
Marks & Spencer.
SOUTHERN EUROPE
Operating profit of £8.7 million was well ahead of the £2.1 million reported
last year on sales which, adjusting for the impact of currency, were 1% ahead of
the prior year. Investment in marketing in the first half was £8.6 million, up
8%. The strong performance in the first half reflects excellent improvements in
manufacturing efficiency, purchasing performance and product mix. These
benefits started to be delivered in the second half last year and so profit
growth is expected to be more modest going forward. Sales growth is, however,
expected to accelerate due to a programme of product launches in Frozen and
Spreads supported by increased marketing spend.
Spreads continued to benefit from the growth in the health segment, which grew
at 27% in the first half, and sales were 12% ahead of the corresponding period
last year. Our total market share increased to 30% from 27% last year. The
second half will see the extension of the Benecol-based ilo brand into yogurts,
manufacture of which is being carried out by a third party.
Frozen performance was disappointing. Industrial unrest in the public sector in
the first quarter and the extremely hot weather in July and August both impacted
sales, which were down 6% on the prior year. Our market share was also slightly
lower due to extremely aggressive media and promotional investment by a leading
competitor. Since the end of the summer, market conditions have returned to
previous levels, with the market in slight decline.
Chilled ready meals were also impacted by the hot weather although, due to the
benefits of media spend and new products, sales were ahead by 4%. Market share
remained broadly unchanged.
In Spain sales in the first half were 22% ahead of the prior year, due
principally to business wins in sandwiches and the relaunch of the McSalad
brand.
NORTHERN EUROPE
Operating profit of £3.5 million was 3% ahead on sales which, adjusting for the
impact of currency, were 4% ahead. This first half operating profit improvement
in Northern Europe was achieved despite £0.9 million of redundancy costs across
the division. The improvement was due principally to sales growth in Germany.
The second half result will see the benefits of the continuing recovery in
Sandwiches, but will also be impacted by the increasingly competitive markets in
Benelux and Scandinavia, the full impact on sales of lower purchasing and
selling prices for fish, and increased investment in media and marketing costs.
Germany/Poland made a good start to the year. The positive impact of the hot
summer weather, combined with net new salad business from the discount and own
label sector, more than offset the effect of lower fish prices. Sales were 7%
ahead of the comparable period.
Benelux salad sales were also 7% ahead of last year due partly to the positive
impact of the hot weather. Growth was principally in the discount sector, which
is gaining share from traditional retail particularly in the Netherlands. The
foodservice sector in these markets also remains under pressure.
In Scandinavia performance remains disappointing, in particular in Sweden where
the transition from wholesalers to direct-to-customer distribution has had a
greater impact than initially anticipated. Sales were down 3% on the prior
year. A new managing director for the region was appointed in September and
action plans are now being put in place to address the performance shortfall.
Sandwiches sales were down by 15%, in line with expectations, as the planned
withdrawal from the German market was implemented. Excluding Germany, the
remaining sandwich business saw growth of 14% due principally to customer wins
in Belgium. The exit from the German market combined with a significant
reduction in the range of products should enable the factory to return to
profitability in the second half.
CASH FLOW
Operating cash inflows for the six month period were £11.4 million. This inflow
was due principally to the overall strong trading performance although this was
offset by £15 million of short term timing differences in working capital.
Extra payments totalling £3.5 million were also made into the Group's pension
schemes, comprising £2.5 million in the UK and £1.0 million in the Netherlands.
Net debt at 27 September was £47.1 million compared with £41.6 million at 31
March 2003. Offsetting the operating cash inflow was net capital expenditure of
£10.2 million, interest payments of £2.6 million and the payment of last year's
final dividend of £4.3 million. These were partially offset by net tax receipts
of £1.0 million due to tax relief on the high level of exceptional costs in
previous years.
PENSIONS
The Group's pension charge to operating profit for the half year was £3.4
million compared with £3.9 million last year. Under FRS 17 we are not required
to update the FRS 17 balance sheet position at the interim stage. If we had
done so we have estimated that the reported net deficit in the scheme would not
have been materially different from the position at the year end.
As we disclosed at the last year end, we have established an annual review
process with the trustees of the UK pension fund. As a result of this year's
review, and on advice from the Group's actuaries, the Board has decided to
increase the Company's extra cash contributions to the scheme to £8.5 million in
the year commencing January 2004. The increased contribution reflects the fact
that equity markets remain at a lower level than when the previous additional
contribution of £5.0 million was set.
TAX
The reported tax credit in the first half of £1.1 million benefits from a £3.9
million release of provisions relating to prior year items. The Group's
underlying tax rate remains at 25%.
FINANCING
Finance costs are significantly lower than in the first half last year,
reflecting the lower net debt levels following the divestments in the last
financial year. In addition on 16 October we signed a new £120m 3 year
multi-currency revolving credit facility. Our overall interest charge will
remain impacted by our long term interest rate swap, entered into in 1995, which
fixes payments at 7.2% on £50 million of our borrowings until 31 March 2004 and
subsequently £25 million until March 2008.
Group Profit and Loss Account
for the 26 weeks ended 27 September
2003 2002 (restated)
Before Goodwill Before Goodwill
goodwill and goodwill and
and except- and except- Total
except- items except- ional 31
ional ional ional items March
items (note 3) Total items (note 3) Total 2003
(Unaudited) £m £m £m £m £m £m £m
Turnover (note 1)
Continuing operations 470.9 470.9 428.7 428.7 899.0
Discontinued operations - - 68.8 68.8 88.6
470.9 470.9 497.5 497.5 987.6
Operating profit (note 1)
Continuing operations 17.2 (5.4) 11.8 10.4 (7.6) 2.8 18.8
Discontinued operations - - - 5.8 - 5.8 4.7
17.2 (5.4) 11.8 16.2 (7.6) 8.6 23.5
Non operating items
Discontinued operations
- Profit on disposal of
businesses - - - - 9.9 9.9 2.5
Profit on ordinary activities
before interest 17.2 (5.4) 11.8 16.2 2.3 18.5 26.0
Finance costs (note 2) (2.8) - (2.8) (7.2) - (7.2) (11.6)
Net pension finance (charge)/
income (3.0) - (3.0) 1.1 - 1.1 2.1
Profit on ordinary activities
before taxation 11.4 (5.4) 6.0 10.1 2.3 12.4 16.5
Taxation (note 4) 1.1 - 1.1 (2.5) 6.4 3.9 8.4
Profit for the period 12.5 (5.4) 7.1 7.6 8.7 16.3 24.9
Dividends (note 6) (2.6) (1.9) (6.2)
Retained profit for the
period 4.5 14.4 18.7
Earnings per ordinary share
(note 5)
- on basic earnings 6.3p 14.4p 22.0p
- on adjusted earnings 11.0p 6.7p 20.5p
- on fully diluted earnings 6.2p 14.4p 22.0p
Average Euro exchange rate 1.43 1.57 1.54
GROUP BALANCE SHEET
At 27 September
2002 31 March
2003 (restated) 2003
(Unaudited) £m £m £m
Fixed assets
Intangible assets: goodwill 171.9 182.4 177.3
Tangible fixed assets 219.2 253.7 224.4
Investments 3.1 3.4 3.2
394.2 439.5 404.9
Current assets
Stocks 60.8 71.5 63.3
Debtors 151.9 138.1 151.5
Cash and deposits 20.9 26.4 30.1
233.6 236.0 244.9
Creditors - amounts falling due within one year
Borrowings and finance leases (41.8) (34.1) (43.1)
Other creditors (230.3) (243.2) (249.7)
(272.1) (277.3) (292.8)
Net current liabilities (38.5) (41.3) (47.9)
Total assets less current liabilities 355.7 398.2 357.0
Creditors - amounts falling due after more than one year
Borrowings and finance leases (26.2) (130.6) (28.6)
Provisions for liabilities and charges (14.6) (22.7) (17.1)
Net assets excluding pension liabilities 314.9 244.9 311.3
Pension liabilities (111.7) (41.5) (112.8)
Net assets including pension liabilities 203.2 203.4 198.5
Capital and reserves (note 7)
Equity share capital 11.5 11.5 11.5
Non equity share capital 0.1 0.1 0.1
Total called up share capital 11.6 11.6 11.6
Share premium account 0.1 0.1 0.1
Merger reserve (330.2) (330.2) (330.2)
Profit and loss account 521.7 521.9 517.0
Shareholders' funds 203.2 203.4 198.5
Closing Euro exchange rate 1.45 1.59 1.46
GROUP CASH FLOW STATEMENT
for the 26 weeks ended 27 September
31 March
2003 2002 2003
(Unaudited) £m £m £m
Cash inflow from operating activities (note 8) 11.4 30.1 52.0
Returns on investments and servicing of finance
Net interest paid (2.6) (6.9) (11.1)
Interest element of finance lease rental payments - (0.1) -
Net cash outflow from returns on investments and servicing
of finance (2.6) (7.0) (11.1)
Taxation
UK corporation and overseas tax received 1.0 4.9 4.2
Capital expenditure and investments
Purchase of tangible fixed assets (11.0) (9.3) (23.3)
Sale of tangible fixed assets 0.8 0.2 1.4
Net cash outflow from capital expenditure and investments (10.2) (9.1) (21.9)
Disposals
Disposal of businesses - 32.5 131.2
Net cash inflow from disposals - 32.5 131.2
Equity dividends paid (4.3) (1.7) (3.6)
Cash (outflow)/inflow before use of liquid resources and
financing (4.7) 49.7 150.8
Management of liquid resources (note 10) 14.5 16.1 8.4
Financing (note 10) (2.4) (65.7) (162.7)
Increase/(decrease) in net cash (note 9) 7.4 0.1 (3.5)
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
for the 26 weeks ended 27 September
2002 31 March
2003 (restated) 2003
(Unaudited) £m £m £m
Profit for the period 7.1 16.3 24.9
Dividends (2.6) (1.9) (6.2)
Retained profit for the period 4.5 14.4 18.7
Currency translation differences on foreign currency net
investments 0.2 (0.3) 4.2
Goodwill on disposals - - 57.8
Other recognised gains and losses relating to pensions - - (71.5)
Net increase in shareholders' funds 4.7 14.1 9.2
Shareholders' funds at beginning of year 198.5 189.3 189.3
Shareholders' funds at end of period 203.2 203.4 198.5
STATEMENT OF GROUP RECOGNISED GAINS AND LOSSES
for the 26 weeks ended 27 September
2002 31 March
2003 (restated) 2003
(Unaudited) £m £m £m
Profit for the period 7.1 16.3 24.9
Actuarial loss recognised on the pension schemes - - (110.3)
Movement on deferred tax relating to actuarial loss on
pensions - - 38.8
Currency translation differences on foreign currency net
investments 0.2 (0.3) 4.2
Total recognised gains and losses for the period 7.3 16.0 (42.4)
NOTES TO THE FINANCIAL STATEMENTS
for the 26 weeks ended 27 September
1 Analysis of Results
Operating profit
before goodwill
amortisation, exceptional Operating profit
Turnover items and taxation before taxation
31 31 31
March 2002 March 2002 March
2003 2002 2003 2003 (restated) 2003 2003 (restated) 2003
£m £m £m £m £m £m £m £m £m
By Business Segment
United Kingdom 188.1 179.2 371.4 5.0 4.9 13.7 2.1 1.4 6.9
Rest of Europe
- Southern Europe 126.2 113.1 249.2 8.7 2.1 11.1 8.7 1.3 11.7
- Northern Europe 156.6 136.4 278.4 3.5 3.4 6.3 1.0 0.1 0.2
Continuing operations 470.9 428.7 899.0 17.2 10.4 31.1 11.8 2.8 18.8
Discontinued operations - 68.8 88.6 - 5.8 4.7 - 5.8 4.7
470.9 497.5 987.6 17.2 16.2 35.8 11.8 8.6 23.5
Turnover and operating profit by geographical area is not materially
different from turnover and operating profit by business segment.
The Uniqsauces business, disposed in January 2003 and previously reported
within United Kingdom is now shown within discontinued operations. The
remaining discontinued operations represent the results of the
St Ivel Spreads and Yogurts businesses disposed during the last financial
year.
Prior year operating profit for the 26 weeks to 28 September 2002 has been
restated to reflect the adoption of FRS 17 at 31 March 2003. The impact on
operating profit before exceptional items was a decrease of £3.4m and on
operating profit after exceptional items a decrease of £2.0m.
2 Finance Costs
Finance costs of £2.8m comprise net interest charges of £2.6m and a charge
of £0.2m relating to the unwinding of discount on long-term provisions.
NOTES TO THE FINANCIAL STATEMENTS
for the 26 weeks ended 27 September
3 Goodwill and Exceptional Items
2003 2002 31 March 2003
(restated)
Goodwill Except- Goodwill Except- Goodwill Except-
amort- ional amort- ional amort- ional
isation items Total isation items Total isation items Total
£m £m £m £m £m £m £m £m £m
Operating profit
Continuing operations (5.4) - (5.4) (5.4) (2.2) (7.6) (11.0) (1.3) (12.3)
Non operating items
Discontinued operations
- Profit on disposal
of Businesses - - - - 9.9 9.9 - 2.5 2.5
(5.4) - (5.4) (5.4) 7.7 2.3 (11.0) 1.2 (9.8)
Taxation credit on
exceptional items - - - - 6.4 6.4 - 11.5 11.5
(5.4) - (5.4) (5.4) 14.1 8.7 (11.0) 12.7 1.7
Prior year exceptional items for the 26 weeks to 28 September 2002 have
been restated to reflect the adoption of FRS 17 at 31 March 2003. The
impact on exceptional items after taxation was an increase of £1.0m.
4 Taxation
The taxation credit on profit before exceptional items for the 26 weeks
ended 27 September 2003 is £1.1m (2002: £2.5m charge). This represents an
estimate for the full year of a tax charge on current year profits of 25%
offset by tax credits of £3.9m relating to prior year items.
NOTES TO THE FINANCIAL STATEMENTS
for the 26 weeks ended 27 September
5 Earnings per Ordinary Share
Basic earnings per share
Basic earnings per ordinary share is calculated on the basis of the
weighted average of 113.3m (2002: 113.2m) ordinary shares in issue and
profit for the financial period of £7.1m (2002: £16.3m).
Adjusted earnings per share
Adjusted earnings per share is shown by reference to earnings before
goodwill amortisation, exceptional items and related tax which is
calculated as follows:
2002 31 March
2003 (restated) 2003
£m £m £m
Profit before tax 6.0 12.4 16.5
Goodwill amortisation 5.4 5.4 11.0
Exceptional items - (7.7) (1.2)
Profit before tax, goodwill amortisation and exceptional items 11.4 10.1 26.3
Related taxation 1.1 (2.5) (3.1)
Earnings before goodwill amortisation and exceptional items 12.5 7.6 23.2
Fully diluted earnings per share
Fully diluted earnings per share is calculated on the basis of the
weighted average number of ordinary shares in issue increased to assume
the conversion of all dilutive potential ordinary shares. The total
shares on this basis were 114.0m (2002: 113.2m). The effect of dilutive
potential shares on adjusted earnings per share was not material.
6 Dividends
The Board has declared an interim dividend of 2.3p per share (2002: 1.7p)
payable on 2 January 2004 to shareholders on the register at the close of
business on 19 November 2003.
7 Capital and Reserves
Profit
Share Share Merger and loss
capital premium reserve account Total
£m £m £m £m £m
At 31 March 2003 11.6 0.1 (330.2) 517.0 198.5
Retained profit for the period - - - 4.5 4.5
Exchange - - - 0.2 0.2
At 27 September 2003 11.6 0.1 (330.2) 521.7 203.2
NOTES TO THE FINANCIAL STATEMENTS
for the 26 weeks ended 27 September
8 Reconciliation of Operating Profit to Operating Cash Flows
2002 31 March
2003 (restated) 2003
£m £m £m
Operating profit 11.8 8.6 23.5
Depreciation 15.0 17.4 33.2
Goodwill amortisation 5.4 5.4 11.0
Difference between pension charge and cash
contributions (3.0) 0.6 (0.7)
(Increase)/decrease in working capital (15.3) 3.4 2.7
Decrease in provisions (2.5) (5.3) (17.7)
Cash inflow from operating activities 11.4 30.1 52.0
9 Reconciliation of Net Cash Flow to Movement in Net Debt
31 March
2003 2002 2003
£m £m £m
Increase/(decrease) in net cash 7.4 0.1 (3.5)
Decrease in borrowings 2.4 65.7 162.7
Decrease in short term deposits (14.5) (16.1) (8.4)
Movement in net debt resulting from cash flows (4.7) 49.7 150.8
Currency translation differences (0.8) (3.3) (7.7)
Movement in net debt in the period (5.5) 46.4 143.1
Net debt at beginning of period (41.6) (184.7) (184.7)
Net debt at end of period (47.1) (138.3) (41.6)
Analysis of net debt
Cash at bank 13.0 12.4 7.7
Short term deposits 7.9 14.0 22.4
Overdrafts (1.1) (5.2) (2.4)
Other borrowings due within one year (40.7) (28.9) (40.7)
Other borrowings due after one year (26.2) (130.6) (28.6)
Net debt (47.1) (138.3) (41.6)
NOTES TO THE FINANCIAL STATEMENTS
for the 26 weeks ended 27 September
10 Management of Liquid Resources and Financing
31 March
2003 2002 2003
£m £m £m
Management of Liquid Resources
Net decrease in short term deposits 14.5 16.1 8.4
Financing
Decrease in unsecured loan stock - (4.0) (32.7)
Decrease in long term borrowings (2.4) (61.7) (130.0)
Net cash outflow from financing activities (2.4) (65.7) (162.7)
11 Accounting Policies
The interim financial information has been prepared on the basis of the
accounting policies set out in the Group's published accounts for the year
ended 31 March 2003.
The prior year accounts for the 26 weeks to 28 September 2002 have been
restated to reflect the adoption of FRS 17, 'Retirement Benefits', at
31 March 2003. The impact on retained profit for the 26 weeks to
28 September 2002 was a decrease of £0.7m. The impact on net assets at
28 September 2002 was a decrease of £17.8m.
In addition the prior year balance sheet as at 28 September 2002 has been
restated to reflect the reclassification from 'other creditors' to
'investments' of amounts previously provided in respect of shares held by
the Employee Share Ownership Trust.
12 Status of Interim Report
The interim report was approved by the Directors on 10 November 2003. It
should be read in conjunction with the 2003 Annual Report, which contains
the most recent audited financial statements.
The financial information contained in this report does not constitute
statutory accounts. The figures for the year ended 31 March 2003 have been
extracted from the Group's published accounts for that year which have been
reported on by the Company's auditors and delivered to the Registrar of
Companies.The report of the auditors was unqualified and did not contain a
statement under section 237 (2) or (3) of the Companies Act. The figures
for the 26 weeks ended 28 September 2002 were extracted from the 2002
interim statement which was unaudited.
This information is provided by RNS
The company news service from the London Stock Exchange
