Final Results

Final Results LONDON-(BUSINESS WIRE)-June 7, 2002- ANNOUNCEMENT OF PRELIMINARY RESULTS For the year ended 31 March 2002 -------------------------------- -------- -------- 2002 2001 PRELIMINARY RESULTS TO 31 MARCH Year 53 weeks(a) -------------------------------- -------- -------- Audited Audited Total sales £3,944m £4,146m Profit before tax, goodwill amortisation and exceptional items £159m £113m Profit/(loss) before taxation £159m £(190)m EPS (diluted) before goodwill amortisation and exceptional items 22.1p 14.8p EPS (diluted) 24.6p (49.8)p Dividend per share 17.8p 17.8p -------------------------------- -------- -------- - 41% increase in profit before tax, goodwill amortisation and exceptional items - Net debt reduced by £324 million to £639 million - Interest cover improved - Good strategic progress - Western Sugar disposal completed after the year end The full Preliminary Results are included with this Press Release. They follow the Chairman's Statement and Chief Executive's Review. 'The divestment of our underperforming US sugar businesses and other low return activities together with a reduced level of net debt provides the Group with a stronger base from which to advance. Assuming current economic conditions remain broadly unchanged, the impact of improved sweetener pricing at Staley, continued emphasis on cost reduction and the net benefits from the integration of Amylum enable us to view the current financial year with increased confidence.' Sir David Lees Chairman Copies of the Annual Report for the year ended 31 March 2002 will be available to shareholders shortly, and will be obtainable from Robert Gibber, Company Secretary, Tate & Lyle PLC, Sugar Quay, Lower Thames Street, London EC3R 6DQ. (a) Comparative figures have been restated to reflect the adoption of FRS19 Deferred Tax (Note 1). Chairman's Statement Overview The year to 31 March 2002 has been a better one for the Group. Firstly, our trading results were a considerable improvement on the previous year and, although we have further to go before our return on capital is satisfactory, the trend is encouraging. Secondly, our net debt has significantly reduced and our interest cover increased without detriment to our potential profitability. Thirdly, we have made good strategic progress both in relation to our divestment programme, which is now well advanced, and in strengthening the focus on our core businesses. Results With improved performance from both Amylum and Staley, profit before tax, exceptional items and goodwill amortisation increased to £159 million (2001 - £113 million). Profit before tax after exceptional items and goodwill amortisation was also £159 million (2001 - loss £190 million). Exceptional items in the year to 31 March 2002 were a net £8 million profit on disposal of businesses and fixed assets. Goodwill amortisation was a charge of £8 million and relates to the acquisition of the Amylum and Staley minorities. In the year since my last Chairman's statement we have successfully completed the divestment of our Domino and Western sugar interests for which full provision for the anticipated loss on disposal was made as an exceptional charge in the 53 weeks to 31 March 2001. Losses before tax from these two businesses, which have been treated as discontinued in the financial statements for the year to 31 March 2002, were £18 million. Diluted earnings per share before exceptional items and goodwill amortisation for the year to 31 March 2002 were 22.1p compared with 14.8p in the 53 weeks to 31 March 2001. Cash inflow of £318 million compared with an outflow of £104 million in the previous year reflected tight control of capital expenditure and management action to reduce costs and improve working capital ratios. Proceeds in the year from the sale of non-core businesses, the largest of which was Domino Sugar, and other assets realised £137 million. Net debt at 31 March 2002 was £639 million compared with £963 million at the end of the previous year. Interest cover for the year improved from 2.3 times to 3.3 times. Dividend The total dividend proposed for the year of 17.8p is covered 1.2 times by earnings before goodwill amortisation and exceptional items and has been maintained at the same level as in the previous year. Although there was a considerable advance in earnings in the year to 31 March 2002, the Board did not feel the improvement was sufficient to justify resumption of the progressive dividend policy to which it is committed in principle. The proposed final dividend of 12.3p will be due and payable on 7 August 2002 to shareholders on the register on 12 July 2002. Governance As previously announced Lord Walker retired from the Board following the Annual General Meeting on 2 August 2001. There have been no other changes to the Board during the year. The Board has reviewed the issue of Auditor independence following recent well-publicised external events. Although the Board has no reason whatsoever to doubt the objectivity and independence of the Company's Auditors, it has decided that the Auditors should be excluded from assignments that are not closely related to the audit function unless the Audit Committee determine otherwise. Corporate Social Responsibility We have published both internally, and on our web site, a Tate & Lyle Code of Conduct to ensure that all employees are aware of the Company's policies on corporate social responsibility. The Annual Report will contain our review of the year just ended. The figures, which are reviewed annually by the Board, show the progress that has been made in recent years in both safety performance and environmental management and the comparison of the Company's safety performance with external benchmarks is a source of great encouragement. These performance improvements could not have been achieved without the active participation of employees at every level and considerable credit is due to them. Strategy Two of the strategic objectives to which I referred in last year's Chairman's statement concerning the resolution of the problems of our US sugar operations and the divestment of our non-core businesses have now been substantially achieved. A third objective, to reduce costs and enhance efficiency through our business improvement objectives, will remain a permanent component of our strategy. Going forward, our principal strategic objectives are to complete the integration of Amylum within the Group, to take full advantage of the market opportunities available to a low-cost high-quality global starch and sweetener business, and to continue to focus our core competences on the development of higher added value products. Outlook The divestment of our underperforming US sugar businesses and other low return activities together with a reduced level of net debt provides the Group with a stronger base from which to advance. Assuming current economic conditions remain broadly unchanged, the impact of improved sweetener pricing at Staley, continued emphasis on cost reduction and the net benefits from the integration of Amylum enable us to view the current financial year with increased confidence. Sir David Lees Chairman Chief Executive's Review Group Performance I am pleased to report that our strategy of refocusing the Group as a global leader in carbohydrate-based ingredients is beginning to deliver improved financial performance whilst building the foundation for future growth of the business. Group profit before tax, exceptional items and goodwill amortisation was £159 million, a 41% improvement on the £113 million for the 53 weeks to 31 March 2001. Our sweetener and starch businesses on both sides of the Atlantic improved profitability, reflecting the price increases achieved for calendar year 2001. Strong cash generation has driven net debt down to £639 million at 31 March 2002 from £963 million last year. Gearing (net borrowings as a percentage of net assets) has significantly reduced from 91% to 59%. We have set ourselves financial targets to restore interest cover to 4.0 times and an interim target to return the overall Group return on net operating assets (RONOA) to at least 15%. We are making progress against both targets and in the 12 months to 31 March 2002 have seen interest cover improve from 2.3 times to 3.3 times and RONOA improve from 8.5% to 10.5%. In the financial year to 31 March 2003 these ratios will further benefit from the disposal of the loss-making Domino Sugar and of Western Sugar. Focus on Key Activities We made good progress on the disposal of non-core and underperforming businesses with the sale of Domino Sugar which was completed in November 2001 and the sale of Western Sugar which was completed after the year end. These disposals were completed in line with our estimates and no further write-down was required. The sale of these US sugar businesses completes the disposal of the 25% of our assets that were underperforming. These disposals, coupled with the sale of eight smaller businesses and assets, help to focus Group activities, strengthen our balance sheet and improve financial returns and ratios. We continue to review our portfolio of businesses and have announced that we are actively pursuing the sale of our world-wide molasses and liquid storage businesses. Our activities are now focused as a world leader in carbohydrate ingredients manufacturing. Amylum in Europe and Staley in the Americas comprise a global cereal sweetener and speciality starch business with good growth prospects. The sugar businesses in Europe and Canada support this growth through their profitability and cash generation. Performance of Main Businesses Staley and Amylum both reported improved profits, benefiting from increased sweetener and starch margins in the 2001 calendar year pricing round. However, the high fructose corn syrup market in the US showed little growth again last year, reflecting flat deliveries to the carbonated soft drink industry. In the last quarter of the financial year to 31 March 2002, Staley has reported a further average 5% increase in sweetener prices for the calendar year 2002 but Amylum saw a slight weakening in prices of some products. The market for industrial starches, especially to the paper industry, remains very competitive on both sides of the Atlantic. Speciality food starches were resilient in difficult market conditions. Citric profitability declined due to global oversupply, principally from increased exports from China. Employee involvement in the Amylum Integration Programme was significant in the past year, and included employees throughout the Group. Costs and savings arising from the integration were both targeted at £10 million in the year to 31 March 2002. Actual integration savings were ahead of target at £15 million at a cost of £15 million. This reflects accelerated progress on the project and an excellent achievement by the team. In the 2002/03 financial year we anticipate integration costs of around £10 million and total savings from the integration project of £20 million. We remain confident of achieving our savings target of £50 million per annum in 2003/04, with estimated costs of £25 million in that year. Total costs are still estimated at £50 million over the three-year period. Our cane refineries in the UK, Portugal and Canada continued to perform well. The European refineries benefited from the stability offered by the renewal of the EU sugar regime for five years from July 2001, despite a modest reduction to revenues from the loss of the Storage Levy. Cost reduction measures mitigated the impact of this reduction. In our US sugar businesses, Domino lost £18 million prior to disposal and Western broke even. Performance of Other Businesses Both sugar and starch joint ventures in Central Europe performed well, as did NAT&L, our cane sugar factory in Vietnam. Tate & Lyle Sucralose received the first annual US$10 million instalment under the global alliance announced in September 2001. This benefited the second half-year by £3 million (US$5 million). Sucralose was granted UK approval in March 2002 in advance of full EU approval. As reported at the half-year, Tate & Lyle Reinsurance, the Group's captive reinsurance company, had an exposure to the terrorist attacks in the US on 11 September 2001 which reduced profits by £6 million. Safety There is no higher priority in the Group than safety. Through the efforts of the Group's safety network and the involvement of many colleagues we have again improved results across the entire Group. Safety Committees comprising employees ensure that safety remains paramount and performance is reported to all employees on a quarterly basis in the employee magazine Tate & Lyle World. The Board actively supports this initiative and reviews performance annually. Technology We continue to maintain our role as industry leaders in technology. Our focused research and development efforts produce new products and new process technologies, which in turn deliver value to our customers and shareholders. Technology plays an important role in our commitment to grow the contribution of profits from value added and branded products. We use technology to transform the commodity starch molecule to give characteristics and functionality that our customers require and value. Our ingredients help make their products taste better, have better mouthfeel or have improved stability to factors such as freezing and then heating. In the year to 31 March 2002, the contribution to profit before interest, goodwill amortisation and exceptional items from value added and branded goods is in excess of 45% and we are making progress towards our target of 50%. A key goal going forward is to substitute selectively products made from renewable resources for those currently made from petrochemicals. One example is our joint venture with DuPont to develop 3G, a polymer made from plant carbohydrates that could be used in textiles, carpets and industrial applications. This project is at the pilot plant stage with a decision on commercialisation expected within the year. Energy All businesses have been set a target on both economic and environmental grounds to reduce energy consumption on a per unit basis by 3% per year. Overall, the Group has exceeded this target in both of the last two financial years. Employees The Group has been through three years of transformation, including the disposal of thirty businesses in that time. My thanks go to all of our employees who have contributed during this period of change with innovation and determination. Corporate Community Involvement Tate & Lyle has always maintained strong and diverse community involvement. Since winning the UK's Business in the Community `Investing in Young People Award' in 2000, the number of employee volunteers has sharply increased. Across our businesses, hundreds of Tate & Lyle employees have made personal commitments to help people and organisations. There are many examples of our community activity, but let me highlight just one. At Christmas 2001, we converted one of our UK warehouses for the `Crisis Open Christmas' appeal by the charity, Crisis. Over the festive period this was home to hundreds of homeless people. Additionally, employees donated clothing, blankets and food, while others joined the volunteers who transformed the warehouse and helped look after the guests. The Future We remain committed to our strategy to deliver shareholder value through focus, the growth of value added products and a low cost culture throughout the organisation. Significant consolidation is underway in the cereal sweetener and starch industry. This is a logical reaction to the difficult market conditions that have prevailed for the last three years. Whilst we generally perceive such consolidation as good for the industry as a whole, the market remains very competitive. Following the disposal of underperforming assets, particularly Domino and Western, our asset base is enhanced and more focused. There are still areas where improvement is required and obtaining satisfactory returns from our investment in Amylum is a top priority. We are confident that our technological base and core competency in applications will allow us to continue to develop new products and solutions for our customers and provide a foundation for growth. Larry Pillard Chief Executive Summary of Financial Results Operating and Financial Review New Accounting Standards UK accounting standards FRS17 Retirement Benefits and FRS19 Deferred Taxation have been adopted for the first time. FRS17 will be implemented over three years. Financial statements continue to be prepared under SSAP24 but with additional disclosures under FRS17 in the notes to the full Group accounts. The accounts for the 53 weeks to 31 March 2001 have been restated to reflect the adoption of FRS19. Summary of Financial Results Group sales decreased by £211 million. Discontinued activities reduced sales by £477 million and exchange rate movements increased sales by £11 million. Sales from continuing activities increased by 9%. Group profit before interest, tax, exceptional items and goodwill amortisation increased by 17% from £185 million to £216 million due mainly to improvements at Staley and Amylum. Interest costs reduced from £72 million to £57 million and interest cover improved from 2.3 times to 3.3 times. Profit before tax, exceptional items and goodwill amortisation was £159 million, an improvement of 41%. Profit before tax after exceptional items and goodwill amortisation was also £159 million compared with a loss of £190 million in the 53 weeks to 31 March 2001. Net debt reduced by £324 million from £963 million to £639 million, assisted by £137 million proceeds from disposals. Exceptional Items and Goodwill Amortisation Exceptional items totalled £8 million net profit and included a £4 million charge for goodwill previously written off to reserves. The exceptional items consist of profits and losses on the sale of businesses and fixed assets which have been classified as exceptional due to their size, number and geographical spread. There is no further charge resulting from the disposal of Domino Sugar, the US sugar refiner, in November 2001, nor from the sale of Western Sugar after the year end, following the write-downs taken in the previous year in anticipation of these sales. Amortisation of capitalised goodwill, which totalled £8 million in the year (2001 - £5 million), relates to the acquisition of the Amylum and Staley minorities in August 2000. Segmental Analysis of Profit Before Interest The following paragraphs refer to profit before interest and exceptional items but after the amortisation of capitalised goodwill. Exchange rate movements reduced Group profit before interest by £3 million. Sweeteners and Starches - Americas: Continuing Activities Profits before exceptional items and interest from continuing businesses rose by 20% from £116 million to £139 million. Exchange rate movements increased profits by £3 million. Staley and Tate & Lyle Citric Acid The performance of Staley's sweetener and starch businesses improved significantly this year. In spite of disappointing market conditions, all our major product lines experienced growth. Results were also greatly enhanced by cost reduction initiatives. The US sweetener market remained weak as consumption of bottled water and fruit flavoured beverages grew at the expense of carbonated soft drinks. Sweetener products benefited from double-digit average price increases in 2001, followed by smaller increases in 2002. Margins on industrial starches reduced as the US paper industry remained weak. Higher value added food products gave a slightly improved contribution to profits from higher sales volumes. Net corn costs held steady throughout the year as corn prices remained at reasonable levels and improved corn oil values offset lower corn gluten meal selling prices. Ethanol provided a substantially increased contribution, aided by higher prices contracted early in the year, improved volumes following our announced expansion programme, and the US Department of Agriculture's Bio-energy programme. However the market weakened in the second half of the year. Our strategic grain sourcing network was strengthened last year with the addition of two country elevators in the Decatur and Lafayette areas, as well as exclusive corn purchasing agreements at two additional locations in Indiana. The manufacturing plants performed well during the year. Grind records were achieved in all the major corn facilities. Energy costs were greatly reduced at all plants following completion of conservation projects. Debottlenecking projects were also completed at Lafayette South and modified starch capacity was increased at Sagamore. Work with DuPont on the development of 1,3-propanediol ('3G') using a corn-based fermentation medium continues to progress. The next stage of this project should be determined later this year. In Mexico, our Almex joint venture performed well against a backdrop of a poor economy together with political issues which impacted the use of high fructose corn syrup in soft drinks. Higher prices and margins helped to compensate for reduced volumes. A tax on fructose in soft drinks was introduced in January 2002 and suspended two months later. Access into Mexico for US high fructose corn syrup has not yet been resolved between the US and Mexican governments. The market for citric acid continued to face pressure from Asian imports and an excess of global supply, and selling prices continued their decline. Integration with other Group businesses continues to deliver lower cost raw materials and greater manufacturing efficiency. Our factories in the US and Brazil are now filling expanded capacities and costs are at record low levels. In Mexico the factory was closed for eight weeks for a major reorganisation, which led to a 20% reduction in the cost base. Despite cost improvements at all five factories, the business made only a modest profit during the year. North American Sugar Redpath achieved record sales and production exceeded 500,000 tonnes. Growth came in the industrial sector as manufacturers of sugar-containing products, including Redpath's iced tea packing operation, increased exports. Determined efforts to cut energy costs led to a 10% reduction in consumption and were aided by modest price reductions. Profits were lower due to a decline in the world price of raw sugar which resulted in stockholding losses of £2 million compared with a £3 million gain in the previous year. Occidente, our joint venture cane sugar business in Mexico, moved back into profit during the year. This followed a Government acquisition of several bankrupt producers which had previously depressed domestic selling prices. The Government now controls almost 50% of total sugar production and selling prices have returned to higher levels. The extent of access for Mexican sugar into the US under NAFTA still remains to be resolved by the two governments. Sweeteners and Starches - Americas: Discontinued Activities Domino, the US cane sugar refiner, lost £18 million before it was sold in November 2001 compared with a £17 million loss in the previous year. Refined sugar selling prices were again lower than the raw material cost for part of the year. In April 2002, after the year end, we announced the completion of the sale of Western Sugar, the US beet sugar business, to the Rocky Mountain Sugar Growers Co-operative. Western broke even in the year after suffering from very low prices in the first half. Both Domino and Western benefited from reduced depreciation charges following the write-downs last year. Tate & Lyle North America operates a shared service centre for all businesses within the segment and, of the service charge made to Domino and Western, after immediate cost reduction measures some £7 million of fixed costs will not be recovered in the short term. Movements in exchange rates increased losses by £1 million. Sweeteners and Starches - Europe Profits before exceptional items and interest from continuing businesses increased by 16% from £75 million to £87 million. Amylum Amylum's cereal sweetener and starch businesses accounted for nearly all the improvement in the sector. The integration strategy and cost improvement project progressed ahead of expectation. Cost savings exceeded £15 million across the business. These resulted mainly from leveraging Group purchasing opportunities and lower manning levels. Discussions with employee representatives resulted in agreements to reduce the size of the workforce in many countries. Severance costs constitute the majority of a £15 million integration project charge, £10 million of which will be paid after the balance sheet date. Total costs of the integration project are not expected to exceed the budget of £50 million. Sweetener selling prices improved on the back of the price increase achieved in January 2001 but weakened in some product lines in the January 2002 pricing round. Demand for industrial starches was strong during the first quarter of the year but reduced later in the year on the back of weaker demand from the paper industry. However, overall margins were improved by a shift in the product mix towards higher value added lines. Alcohol prices improved in a tight market. Monosodium glutamate prices and volumes also improved substantially at Orsan. Following a poor harvest in the EU in 2001, wheat prices were higher than last year, but were partially offset as by-product selling prices improved in most product lines. Maize prices in the EU were unchanged, and prices returned to more reasonable levels in Central Europe after a drought in summer 2000 pushed prices up last year. Our Eaststarch joint-venture businesses in the EU candidate countries of Central Europe had a difficult start to the year. In addition to higher raw material prices from the 2000 harvest, the financial crisis in Turkey adversely affected operations in the region. However, economic and business conditions improved substantially and profits finished ahead of the prior year. Although energy prices came down in the second half of the year, the average price was still 5% above last year, and energy costs for Amylum as a whole were higher. Tate & Lyle Europe The UK sugar business continued to perform satisfactorily despite sugar regime changes, which eliminated the Beet Storage Levy from July 2001, and the continued weakness of the euro. Higher energy costs in the second half-year were offset by further cost reduction initiatives in all parts of the business. The launch of Lyle's Coffee Syrups was well received by the market and a leading position in the UK retail sector has been established. In January 2002, the speciality syrup plant which had operated from a site on the Isle of Dogs in London was fully integrated into the nearby Thames refinery site at Silvertown. Other capital expenditure was mainly in the areas of health, safety and environment, ensuring the business continues to meet ever more stringent requirements from both customers and regulators. Portuguese cane refining profits were in line with last year, despite continued market pressure. Sugar trading profits were slightly lower due to difficult trading conditions for white sugar in Brazil and Africa. A specialist trading software package was successfully implemented and resulted in a reduction in overhead costs. The integration of the major UK operating businesses into a single management structure, based on one site at the Thames refinery, was completed successfully during the year. Eastern Sugar The Eastern Sugar Group, our beet sugar joint venture, had a successful season with the campaign in Hungary producing 38% more sugar than the previous record. Domestic sales volumes remained weak across the Group and consequently export volumes increased, but strong domestic selling prices and good cost control led to a profit performance ahead of expectations. Working towards EU accession in 2005, Hungary has prepared draft sugar market regulations. A sugar regime is being developed in the Czech Republic, but needs further refinement to comply with EU regulations. In Slovakia, safeguard measures limiting sugar imports have been introduced. In January 2002, Eastern Sugar initiated an investment in new manufacturing technology in Moravia in the Czech Republic and the Modrany factory was closed. Sweeteners and Starches - Rest of the World: Continuing Activities Profits before exceptional items and interest increased from £1 million to £4 million. Asian Sugar Businesses Nghe An Tate & Lyle (NAT&L), the Group's cane sugar business in Vietnam, had a record season with 84,460 tonnes of sugar produced, up from 63,250 tonnes in the previous financial year. NAT&L is now the largest producer in Vietnam and the factory is working above design capacity. Sales have been expanded into the south of the country and new industrial markets penetrated. The year has been profitable and enabled early repayment of over 15% of NAT&L's project finance package. Management has been focused on improving quality by working with the 20,000 farmers who supply cane to the mill and with all factory staff. The Tate & Lyle safety awareness programme has been implemented and the operation has responded with an excellent safety record to date. The factory received the ISO 9001 accreditation in early 2002. Well Pure Limited holds the Group's majority interest in two Chinese cane sugar factories which both experienced significant increases in cane throughput. The United Sugar Company, in which the Group's shareholding is 10%, had a profitable year and produced 600,000 tonnes of refined sugar for the Saudi Arabian local market. The refinery capacity expansion to 760,000 tonnes will be fully operational by July 2002. Sweeteners and Starches - Rest of the World: Discontinued Activities Profits fell from £13 million to £1 million. Zambia Sugar made £7 million in the 53 weeks to 31 March 2001 before it was sold at the beginning of April 2001. ZSR made a small loss from its sugar refining business before it was sold in February 2002, compared with a £4 million profit last year. The business suffered under adverse trading and economic conditions in Zimbabwe. Inflation exceeded 100% and price controls on sugar were re-introduced by the government. The Group sold its 50.1% interest in ZSR to a company led by ZSR's senior management, and the business is now effectively owned by indigenous interests. In the circumstances of the economic and political environment in Zimbabwe, combined with Group strategy to focus on core businesses, this outcome was considered the most advantageous for all parties. The Group's 20% shareholding in United Farmer & Industrial Company in Thailand and 15% shareholding in East Asia Properties, the holding company of five other sugar factories in southern China, were sold in the final quarter of the year. Adverse exchange rate movements, primarily in Zimbabwe, reduced profit by £3 million. Animal Feed and Bulk Storage: Continuing Activities Profits were £15 million, an improvement of £1 million over the prior year. Trading conditions were difficult in the first half of the year in the UK and USA. Earnings are weighted towards the northern hemisphere's winter and molasses trading profits improved further as the global economic slowdown reduced international freight costs whilst the demand for feed ingredients was largely unaffected. The foot and mouth outbreak in the UK had a very limited impact on results. In February 2002, we announced that we would pursue the sale of the worldwide molasses and storage businesses. Animal Feed and Bulk Storage: Discontinued Activities Prior to their disposal, animal feed businesses in both the UK and USA incurred net losses of £2 million. Other Businesses and Activities: Continuing Activities This segment, which includes head office expenditure and the net costs from continuing activities, increased its loss from £18 million to £22 million, primarily due to difficult trading conditions at Tate & Lyle Reinsurance. Tate & Lyle Sucralose Sucralose, the no calorie sweetener, has made excellent sales progress over the past 12 months. In September 2001 we announced a new Global Alliance Agreement with our partner, Johnson & Johnson's McNeil Nutritionals, continuing our 20-year old partnership. Under this alliance, Tate & Lyle Sucralose became the exclusive broker for the sales and marketing of the bulk food ingredient in certain key markets outside the US including the EU and Japan. McNeil Nutritionals will exclusively market the SPLENDA(R) tabletop brand of sucralose to retailers worldwide. The previous licensing agreements, which dated back to 1980, were terminated. Under the new agreement, Tate & Lyle receives licence fees from McNeil, and the first payment of US$10 million was received in October 2001, of which £3 million (US$5 million) was taken to profit in the year to 31 March 2002. A further US$10 million will be paid on each of the first and second anniversaries of the agreement. In March 2002, sucralose was approved for sale in the UK by the Food Standards Agency. This national approval comes in advance of the more extensive EU authorisation. McNeil Nutritionals are planning to launch SPLENDA(R) retail products in the UK, although a launch date has yet to be set. (Note: SPLENDA(R) is a trademark of McNeil-PPC, Inc.) Tate & Lyle Reinsurance The Group's Bermuda captive reinsurance company was adversely affected by increased claims from third-party business. As reported in the first half of the year, a charge of £6 million was taken following the terrorist attacks of 11 September 2001. Insurance market conditions have changed in favour of reinsurers for the 2002 calendar year which creates favourable trading terms going forward. Over a number of years, the Group has been able to minimise the effect of higher Group insurance costs by continuing its policy of retaining risk and premium in its own reinsurance company. Other Businesses and Activities: Discontinued Activities Profits were steady at £4 million. The majority of the profit came from ZSR's non-sugar divisions, where despite difficult trading conditions, the recently expanded Redstar wholesaling business posted record profits and sales. Exchange rate movements reduced profit by £2 million. Interest, Tax and Dividend Interest The net Group interest charge was £57 million (2001 - £72 million). Average net debt for subsidiaries was £61 million lower. The interest rate for the year when measured against average net debt was 6.7% (2001 - 7.6%). Interest cover improved from 2.3 times to 3.3 times. A payment on account to the US revenue authorities crystallised an interest charge of £3 million. Occidente took an opportunity to refinance some of its bank loans at a discount, which resulted in a non-recurring reduction to the interest charge of £4 million. Profit before Tax Profit before tax but after exceptional items and goodwill amortisation was £159 million, compared with a loss of £190 million in the prior year. Exchange rate movements reduced profit before tax by £5 million. Taxation The Group taxation charge was £39 million. The effective rate of tax, on profit before goodwill amortisation and exceptional items, was 32.1% (2001 - 32.7%). FRS19 Deferred Taxation has been adopted for the first time in these accounts and the comparative figures to 31 March 2001 have been restated. Following adjustments to purchased goodwill and exceptional write-downs on planned sales of businesses, retained profits at 31 March 2001 are reduced by £92 million. The liability for deferred tax at 31 March 2002 and 31 March 2001 has been increased by £113 million and £145 million respectively. The effect of adopting FRS19 is to increase the tax charge for the year to 31 March 2002 by £4 million to £39 million and for the 53 weeks to 31 March 2001 by £5 million to £40 million, and to increase the effective tax rate as a percentage of profit before tax, exceptional items and goodwill amortisation by three percentage points and four percentage points respectively. Dividend A final dividend of 12.3p will be recommended as an ordinary dividend to be paid on 7 August 2002 to shareholders on the register on 12 July 2002. An interim dividend of 5.5p was paid on 15 January 2002. Dividend cover is 1.2 times before goodwill amortisation and exceptional items. Cash Flow and Balance Sheet Cash Flow and Debt Operating cash flow totalled £445 million (2001 - £219 million). A net £140 million (2001 - £125 million) was paid to providers of finance as dividends and interest. Taxation paid was £35 million (2001 - £36 million). Plant replacement, improvement and expansion expenditure of £76 million was below depreciation of £121 million. Investment expenditure was £15 million, being primarily an injection of funds into the Tate & Lyle Employee Benefit Trust which purchases shares to satisfy options granted under the Executive Share Option Scheme. Disposals of fixed assets and businesses generated cash of £137 million. Focus on these issues was assisted by Economic Value Added (EVA) techniques. Exchange translation, and other non-cash movements, decreased debt by £6 million. The Group's net borrowing fell from £963 million to £639 million. The gearing ratio reduced to 59% at 31 March 2002 (2001 - 91%). The average net debt for the year was £824 million (2001 - £885 million). During the year net debt peaked at £959 million in April 2001 (January 2001 during the 53 weeks ended March 2001 - £982 million). Funding During the year the Company issued a total of 200 million bonds under its Euro Medium-Term Note Programme. The proceeds of these bond issues were used to refinance existing debt obligations. At 31 March 2002 the Group's long-term credit ratings from Moody's and Standard and Poor's were Baa2 and BBB respectively. At the year end the Group held cash and current asset investments of £135 million (2001 - £117 million) and had undrawn committed multicurrency facilities of £461 million (2001 - £569 million). These resources are maintained to provide liquidity back-up and to meet the projected maximum cash outflow from debt repayment and seasonal working capital needs foreseen for at least a year into the future at any one time. Group policy is to ensure that, after subtracting the total of undrawn committed facilities, no more than 30% of gross debt matures within 12 months and at least 45% has a maturity of more than two and a half years. The results of these calculations were 0% (so that the debt maturing within 12 months was fully backed by undrawn committed facilities) and 51% respectively (2001 - 0% and 64%). The average maturity of the Group's total gross debt was 3.2 years (2001 - 2.7 years). US dollar debt was reduced to match the fall in exposure to US dollar assets following the disposal of Domino. The proportion of Group net debt denominated in US dollars and Canadian dollars fell from 53% on 31 March 2001 to 30% on 31 March 2002. Debt denominated in euro rose from 32% to 61%. Funding not treated as debt The Group seeks to optimise its financing costs. The following items are not included in net debt under UK accounting conventions, although disclosure is made in the Annual Report. At Amylum, Group receives cash from selling amounts receivable from customers. The facility allows the sale of up to £59 million of receivables, of which £52 million was utilised at 31 March 2002 (2001 - £40 million). Where financially beneficial, operating leases are undertaken in preference to purchasing assets. Commitments under operating leases to pay rentals in future years total £166 million (2001 - £210 million) and relate primarily to railcar leases in the USA. Western Sugar was able to source seasonal funding for sugar stocks from the Commodity Credit Corporation, which is recorded as a trade creditor. The balance at 31 March 2002 was £69 million (2001 - £16 million). Net debt of joint ventures and associates totalling £145 million at 31 March 2002 is not consolidated in the Group balance sheet. Of Tate & Lyle's share of net debt of joint ventures and associates (£71 million), £17 million is subject to recourse to the Group. Disposals The major disposal was Domino, the US cane sugar refiner, which was completed in November 2001. £86 million of the maximum consideration of £127 million was received as cash on completion, with £3 million to be received in June 2002 following agreement of the completion balance sheet. The balance of the consideration is in the form of a £18 million subordinated loan note issued by the purchaser and a £14 million earn-out which is conditional on sugar and energy prices. The earn-out was not included as proceeds in the calculation of the profit or loss on disposal. Western was sold after the year end. Orsan, the glutamate business based in France, sold its shares in its Vietnamese subsidiary. In Portugal, a disused refinery site and warehouse were sold. In Asia, we sold our investments in East Asia Properties, which owns majority stakes in five sugar mills in China, and in United Farmer & Industrial Company, a cane sugar manufacturer in Thailand. Zambia Sugar was sold in April 2001 and the loss on disposal was provided for in last year's accounts. ZSR Corporation in Zimbabwe was sold in February 2002 and we sold our investment in the Royal Swaziland Sugar Company after the year end. We also sold storage businesses in the Caribbean and East Africa and some of the small remaining animal feed assets. Total proceeds from disposals of assets and businesses were £137 million. Pensions The UK Tate & Lyle Group Pension Scheme pension fund was valued at 31 March 2001. The results indicated no need to resume contributions. As at 31 March 2002, it is estimated that there was a small shortfall. After the year end, £7 million was paid into the fund to eliminate the shortfall and cash contributions have recommenced with effect from 1 April 2002. Annual cash contributions will amount to £8 million per annum. From 1 April 2002, the UK defined benefit scheme was closed to new members, and a defined contribution scheme has been established. New accounting standard FRS17 Retirement Benefits has been adopted. The financial statements continue to be prepared under SSAP24, but additional disclosures under FRS17 are made in the notes to the Annual Report. SSAP24 spreads pension surpluses and deficits over the service lives of employees. Under FRS17 the current service cost charged against profit each year is calculated using corporate bond yields, and any change in yields generates volatility in the pensions charge. The use of market values in the balance sheet is likely to give rise to volatile changes in the amounts reported as pension assets and liabilities. The standard will affect future financial statements. If the accounts had been prepared under FRS17, the net pension position at 31 March 2002 would have been a deficit of £50 million, a movement of £119 million from the surplus of £69 million that would have been recorded under the new standard in the prior year. In addition, the potential US healthcare liability would have increased from £98 million to £117 million. In contrast, under SSAP24 the net pension liability reduced by £7 million to £32 million and the US healthcare provision reduced by £9 million to £130 million. After taking account of deferred tax, the Group's net assets at 31 March 2002 would have reduced by £2 million from £1,081 million under SSAP24 to £1,079 million if the accounting provisions of FRS17 had been adopted. Profit before interest would have reduced by £9 million and the net interest charge would be unchanged. The total charge to profit under FRS17 would have been £22 million compared with £13 million under SSAP24 and this is expected to increase by 8% in 2003 due to inflation and above inflation increases in US healthcare costs. Post Balance Sheet event Western Sugar was sold on 30 April 2002 to a co-operative of beet growers. Sales proceeds will total £58 million, subject to working capital and fair value adjustments, of which £17 million has been received in cash. The balance is payable within five years under two loans from Tate & Lyle to Western Sugar, secured by a first lien over fixed assets. The new owners have also taken a £69 million liability for the repayment of Western Sugar's inventory financing programme from the Commodity Credit Corporation. Simon Gifford Group Finance Director TATE & LYLE GROUP PROFIT AND LOSS ACCOUNT -------------------------------- Year to 31 March 2002 -------------------------------- Restated (a) Planned Discontinued 53 weeks to Ongoing disposals Continuing activities 31 March activities (note 1) activities (note 1) Total 2001 £ million £ million £ million £ million £ million £ million ------------------ --- ----- ------ ------ -------- ------ ------ Group sales 2 745 367 3 112 504 3 616 3 827 Share of sales of joint ventures and associates 308 4 312 16 328 319 ----- ------ ------ -------- ------ ------ Total sales (Note 2) 3 053 371 3 424 520 3 944 4 146 ----- ------ ------ -------- ------ ------ Group operating profit ----- ------ ------ -------- ------ ------ Before goodwill amortisation 181 15 196 (16) 180 156 Goodwill amortisation (8) - (8) - (8) (5) ----- ------ ------ -------- ------ ------ Group operating profit 173 15 188 (16) 172 151 Share of operating profits of joint ventures and associates 35 - 35 1 36 29 ----- ------ ------ -------- ------ ------ Total operating profit 208 15 223 (15) 208 180 Exceptional items (Note 4): Write-downs on planned sales of businesses - - - - - (307) Profit/(loss) on sale of businesses 1 - 1 (6) (5) 9 Profit on sale of fixed assets 11 - 11 2 13 - ----- ------ ------ -------- ------ ------ Profit/(loss) before interest (Note 3) 220 15 235 (19) 216 (118) ----- ------ ------ -------- Interest receivable and similar income 47 32 Interest payable and similar charges (102) (99) Share of net interest payable of joint ventures and associates (2) (5) ------ ------ Profit/(loss) before taxation 159 (190) Taxation (39) (40) ------ ------ Profit/(loss) after taxation 120 (230) Minority interests - equity (2) (6) ------ ------ Profit/(loss) for the period 118 (236) Dividends paid and proposed (85) (86) ------ ------ Retained profit/(loss) for the period 33 (322) ------ ------ Earnings/(loss) per share (Note 5) Basic 24.7p (50.0)p Diluted 24.6p (49.8)p ------ ------ ------------------------------- - ------ -------- ------ ------ Before goodwill amortisation and exceptional items Profit before taxation 159 113 Diluted earnings per share (Note 5) 22.1p 14.8p ------------------------- - ----- - ------ -------- ------ ------ (a) Comparative figures have been restated to reflect the adoption of FRS19 Deferred Tax (Note 1) TATE & LYLE SUMMARISED GROUP BALANCE SHEET Restated (a) As at As at 31 March 2002 31 March £ million 2001 £ million ------------------------------------ -- -------- --- -------- Fixed assets Intangible assets 158 169 Tangible assets 1 303 1 488 Investments 238 203 -------- -------- 1 699 1 860 -------- -------- Current assets Stocks 400 497 Debtors 467 547 Investments and cash at bank and in hand (Note 6) 135 117 -------- -------- 1 002 1 161 Creditors - due within one year Borrowings (Note 6) (151) (426) Other (502) (493) -------- -------- Net current assets 349 242 -------- -------- Total assets less current liabilities 2 048 2 102 Creditors - due after more than one year Borrowings (Note 6) (623) (654) Other (3) (3) Provisions for liabilities and charges (341) (383) -------- -------- Total net assets 1 081 1 062 ================ =============== Capital and reserves Called up share capital 123 123 Share premium account and other reserves 489 502 Profit and loss account 431 383 -------- -------- Shareholders' funds 1 043 1 008 Minority interests 38 54 -------- -------- 1 081 1 062 ================ =============== (a) Comparative figures have been restated to reflect the adoption of FRS19 Deferred Tax (Note 1) TATE & LYLE STATEMENT OF CASH FLOWS Year to 53 weeks to 31 March 31 March 2002 2001 £ million £ million ------------------------------------------------------------ --------- --------- Operating profit 172 151 Depreciation of tangible fixed assets 121 132 Amortisation of goodwill 8 5 Change in working capital 143 (69) Write-downs against fixed asset investments 1 - --------- --------- Net cash inflow from operating activities 445 219 Dividends from joint ventures and associates 7 9 Returns on investment and servicing of finance --------- --------- Interest paid (109) (97) Interest received 48 33 Dividends paid to minority interests in subsidiary undertakings (1) (2) --------- --------- (62) (66) Taxation paid (35) (36) Capital expenditure and financial investment --------- --------- Purchase of tangible fixed assets (76) (124) Sale of tangible fixed assets 15 5 Purchase of fixed asset investments (12) (2) Sale of fixed asset investments 12 1 --------- --------- (61) (120) Acquisitions and disposals --------- --------- Purchase of subsidiaries - (217) Sale of subsidiaries 103 165 Net overdrafts of subsidiaries sold 2 - Refinancing of existing joint ventures (3) (5) Sale of interests in joint ventures and associates 7 15 --------- --------- 109 (42) Equity dividends paid (85) (68) --------- --------- Net cash inflow/(outflow) before financing and management of liquid resources 318 (104) ================== ================= Reconciliation of cash flow to net debt ------------------------------------------------------------ Net cash inflow/(outflow) before financing and management of liquid resources 318 (104) Changes in debt not involving cash flow: - Assumed on acquisition of subsidiaries - (1) - Reduction/(increase) on disposal of subsidiaries 1 8 - Exchange movements 7 (59) - Amortisation of bond discount (2) (2) --------- --------- Reduction/ (increase) in net debt 324 (158) Net debt at start of period (963) (805) --------- --------- Net debt at end of period (Note 6) (639) (963) ================== ================= TATE & LYLE STATEMENT OF RECOGNISED GAINS AND LOSSES Restated (a) Year to 53 weeks to 31 March 31 March 2002 2001 £ million £ million ------------------------------------------------------------ Profit/(loss) for the period - Group 99 (248) - Joint ventures and associates 19 12 --------- --------- 118 (236) Reversal of past revaluation - (7) Exchange difference on foreign currency net investments (3) 83 Taxation on exchange difference on foreign currency net investments 1 10 --------- --------- Total recognised gains and losses for the period 116 (150) --------- Prior year adjustment - Deferred tax (Note 1) (92) --------- Total gains and losses recognised since the last Annual Report 24 --------- GROUP RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS Restated (a) Year to 53 weeks to 31 March 31 March 2002 2001 £ million £ million ------------------------------------------------------------ Opening shareholders' funds - as previously reported 1 100 1 101 Prior year adjustment - Deferred tax (Note 1) (92) (119) --------- --------- Opening shareholders' funds - as restated 1 008 982 Movements during the period Total recognised gains and losses for the period 116 (150) Dividends (85) (86) Issue of shares - 69 Goodwill on disposals transferred to the profit and loss account 4 193 --------- --------- 35 26 --------- --------- Closing shareholders' funds 1 043 1 008 --------- --------- (a) Comparative figures have been restated to reflect the adoption of FRS19 Deferred Tax (Note 1) TATE & LYLE PLC NOTES TO STATEMENTS For the year to 31 March 2002 1. Basis of preparation a) Audited information The financial information contained in this announcement is derived from the Group's financial statements for the year ended 31 March 2002 on which the Company's auditors, PricewaterhouseCoopers, have issued an unqualified audit opinion. Subject to their adoption by shareholders, the Group's financial statements will be filed with the Registrar of Companies following the Company's Annual General Meeting on 1 August 2002. b) Accounting policies The Group's accounting policies are unchanged compared with the period ended 31 March 2001 except for the adoption of FRS19 Deferred Tax in accordance with which deferred taxation is now stated on a full liability basis with discounting rather than on the partial provisioning basis. Comparative figures have been restated to reflect this change of accounting policy as a result of which the Group's net deferred tax liability as at 31 March 2001 was increased by £145 million. Also as a consequence of FRS19, it was necessary to restate capitalised goodwill and the write-downs on planned sales of businesses recognised in previous years. Overall, therefore, the Group's retained profits as at 31 March 2001 were reduced by £92 million. The Group's restated tax charge of £40 million for the 53 weeks to 31 March 2001 is £5 million higher than previously reported. The Group's tax charge for the year to 31 March 2002 is £4 million higher than it would have been if deferred tax had been calculated on the partial provisioning basis. Also during the year, the Group adopted FRS17 Retirement Benefits. Its accounting provisions are not mandatory for the Group until the year ending 31 March 2004. In the meantime the Group is required to present transitional disclosures which deal principally with the valuation of the assets and liabilities of the Group's retirement benefit schemes. These disclosures may be found in the Group's Annual Report 2002. c) Planned disposals Planned disposals represents the results of the Group's worldwide molasses and storage businesses whose intended disposal has been announced but not yet completed and are shown separately in order to identify the results of the Group's ongoing activities. d) Discontinued activities Discontinued activities represents the results of businesses now sold that were individually significant to their segment and include the US sugar businesses, Domino and Western, the African and Thai sugar assets, and storage businesses in East Africa and the Caribbean. TATE & LYLE PLC NOTES TO STATEMENTS (continued) For the year to 31 March 2002 2. Segmental analysis of total sales ------------------------------------------------------------ Ongoing Planned Continuing Discontinued activities disposals activities activities Total (note 1) (note 1) Year to 31 March 2002 £ million £ million £ million £ million £million ------------------------------------------------------------ Sweeteners and starches - Americas 1 269 - 1 269 428 1 697 - Europe 1 323 - 1 323 - 1 323 - Rest of the world 422 - 422 50 472 ------ ------- ------- -------- ------ 3 014 - 3 014 478 3 492 Animal feed & bulk storage - 371 371 7 378 Other businesses and activities 39 - 39 35 74 ------ ------- ------- -------- ------ 3 053 371 3 424 520 3 944 ============ ============= ============== ================ =========== 53 weeks to 31 March 2001 ------------------------------------------------------------ Sweeteners and starches - Americas 1 201 - 1 201 684 1 885 - Europe 1 186 - 1 186 - 1 186 - Rest of the world 412 - 412 168 580 ------ ------- ------- -------- ------ 2 799 - 2 799 852 3 651 Animal feed & bulk storage - 311 311 95 406 Other businesses and activities 39 - 39 50 89 ------ ------- ------- -------- ------ 2 838 311 3 149 997 4 146 ============ ============= ============== ================ ============ Comparative figures have been reclassified to include within discontinued activities not only the results of the US sugar businesses that were shown as planned disposals in 2001 and have since been sold, but also of businesses that are now discontinued but last year were classified as ongoing activities. Included in the analysis of total sales are the following amounts relating to joint ventures and associates: Year to 53 weeks to 31 March 31 March 2002 2001 £ million £ million --------------------------------------------------------- Sweeteners and starches - Americas 155 158 - Europe 149 119 - Rest of the world 20 33 ------ ------- 324 310 Animal feed & bulk storage 4 4 Other businesses and activities - 5 ------ ------- 328 319 ============ ============= TATE & LYLE PLC NOTES TO STATEMENTS (continued) For the year to 31 March 2002 3. Analysis of profit before interest ------------------------------------------------------------ Planned Discontinued Before After Ongoing disposals Continuing activities exceptional Exceptional exceptional activities (note 1) activities (note 1) items items items Year to 31 March 2002 £ million £ million £ million £ million £ million £ million £ million ------------------------------------------------------------ Sweeteners and starches - Americas 139 - 139 (18) 121 1 122 - Europe 87 - 87 - 87 4 91 - Rest of the world 4 - 4 1 5 1 6 ----- ------ ------ ------- ------ ----- ----- 230 - 230 (17) 213 6 219 Animal feed & bulk storage - 15 15 (2) 13 (1) 12 Other businesses and activities (22) - (22) 4 (18) 3 (15) ----- ------ ------ ------- ------ ----- ----- 208 15 223 (15) 208 8 216 ----- ------ ------ ------- ------ ----- ----- Restated - 53 weeks to 31 March 2001 ------------------------------------------------------------ Sweeteners and starches - Americas 116 - 116 (20) 96 (302) (206) - Europe 75 - 75 - 75 (2) 73 - Rest of the world 1 - 1 13 14 5 19 ------ ----- ------ ------- ------ ------ ----- 192 - 192 (7) 185 (299) (114) Animal feed & bulk storage - 14 14 (5) 9 (5) 4 Other businesses and activities (18) - (18) 4 (14) 6 (8) ------ ----- ------ ------- ------ ------ ----- 174 14 188 (8) 180 (298) (118) ------ ----- ------ ------- ------ ------ ----- The above figures include the amortisation of capitalised goodwill charged to the ongoing activities of the sweeteners and starches businesses as follows: Americas £4 million (2001 - £2 million); Europe £4 million (2001 - £3 million). Comparative figures have been restated to reflect the adoption of FRS 19 Deferred Tax and reclassified to include within discontinued activities not only the results of the US sugar businesses that were shown as planned disposals in 2001 and have since been sold, but also of businesses that are now discontinued but last year were classified as ongoing activities. TATE & LYLE PLC NOTES TO STATEMENTS (continued) For the year to 31 March 2002 4. Exceptional items ------------------------------------------------------------ Profit/(loss) Before Profit/(loss) Profit/(loss) Goodwill Goodwill Before Tax for the and tax Tax period Year to 31 March 2002 £ million £ million £ million £ million £ million ------------------------------------------------------------ (Loss)/ profit on sale of businesses (1) (4) (5) 15 10 Profit on sale of fixed assets 13 - 13 (3) 10 ------ ------- ------ ----- ----- 12 (4) 8 12 20 ------ ------- ------ ----- ----- Restated - 53 weeks to 31 March 2001 ------------------------------------------------------------ Write-downs on planned sales of businesses (133) (174) (307) - (307) Profit on sale of businesses 28 (19) 9 (3) 6 ------ ------- ------ ----- ----- (105) (193) (298) (3) (301) ------ ------- ------ ----- ----- Write-downs on the planned sales of businesses recognised in 2001 represented the shortfall of the expected proceeds on sale against the net asset values of the businesses concerned as at 31 March 2001. In last year's financial statements the reported write-down was £345 million. Restated in accordance with FRS19 Deferred Tax, the net assets of these businesses as at 31 March 2001 increased by £38 million and there was a corresponding reduction in the write-down to £307 million. In 2002 there was no further charge to the profit and loss account in respect of the sale of these businesses which have now been satisfactorily completed. 5. Earnings/(loss) per share ------------------------------------------------------------ Basic earnings/(loss) per share is calculated by dividing profit/(loss) after taxation, minority interests and preference dividends of £118 million (restated 2001 - £236 million loss), by the weighted average number of ordinary shares in issue during the period of 478.0 million shares (2001 - 472.1 million shares). For this purpose, the weighted average number of ordinary shares in issue excludes an average of 3.7 million shares (2001 - 0.5 million shares) held by an ESOP trust that have not vested unconditionally in the participating employees. Diluted earnings per share take into account the dilutive effect of share options outstanding under the Company's employee share schemes. Diluted earnings per share before the amortisation of capitalised goodwill and exceptional items is presented in order to assist in the understanding of the underlying performance of the Group's business. Year to 31 March 2002 Restated - 53 weeks to 31 March 2001 Earnings Loss Earnings Shares per share Loss Shares per share £ million Millions pence £ million millions pence ------------------------------------------------------------ Basic 118 478.0 24.7 (236) 472.1 (50.0) Dilutive effect of share options - 1.0 (0.1) - 1.6 0.2 ------ ------ ------ ------ ------ ----- Diluted 118 479.0 24.6 (236) 473.7 (49.8) Goodwill amortisation 8 - 1.7 5 - 1.0 Exceptional items (note 4) (20) - (4.2) 301 - 63.6 ------ ------ ------ ------ ------ ----- Diluted before goodwill amortisation and exceptional items 106 479.0 22.1 70 473.7 14.8 ============ ============ ============ ============ ============ ========= TATE & LYLE NOTES TO STATEMENTS (continued) For the year to 31 March 2002 6. Analysis of net debt ------------------------------------------------------------ 31 March 31 March 2002 2001 £ million £ million ------------------------------------------------------------ Investments and cash at bank and in hand 135 117 Borrowings due within one year (151) (426) Borrowings due after more than one year (623) (654) ------- ------- (639) (963) ============= ============== 7. Exchange rates ------------------------------------------------------------ Average rate Period end rate Year to 53 weeks to Year to 53 weeks to 31 March 31 March 31 March 31 March 2002 2001 2002 2001 ------------------------------------------------------------ US dollar £1 = $ 1.43 1.48 1.42 1.42 Euro £1 = 1.62 1.63 1.63 1.61 Canadian dollar £1 = C$ 2.24 2.23 2.27 2.24 ------------------ ---------------- 8. Net margin analysis ------------------------------------------------------------ Year to 31 March 2002 53 weeks to 31 March 2001 Ongoing All Ongoing All Before goodwill amortisation and exceptional items activities% activities% activities% activities% ----------------------------- --------- -------- ------- ------- Sweeteners and starches - Americas 11.3 7.4 9.8 5.2 - Europe 6.9 6.9 6.6 6.6 - Rest of the world 0.9 1.1 0.2 2.4 Sweeteners and starches average 7.9 6.3 7.0 5.2 Animal feed & bulk storage - 3.4 - 2.2 Group 7.1 5.5 6.3 4.5 After goodwill amortisation and exceptional items ------------------------------------------------------------ Sweeteners and starches - Americas 7.2 (10.9) - Europe 6.9 6.2 - Rest of the world 1.3 3.3 Sweeteners and starches average 6.3 (3.1) Animal feed & bulk storage 3.2 1.0 Group 5.5 (2.8) ------------------------------------------------------------ TATE & LYLE NOTES TO STATEMENTS (continued) For the year to 31 March 2002 9. Ratio analysis ------------------------------------------------------------ Restated Year to 53 weeks to 31 March 31 March 2002 2001 ------------------------------------------------------------ Gearing Gearing Net borrowings 639 963 ------- ---- ---- Total net assets 1 081 1062 = 59% = 91% Interest Cover - Tate & Lyle PLC and its subsidiaries = Operating profit before goodwill amortisation and exceptional items ---------------------------------- Net interest payable 180 156 -- -- 55 67 = 3.3 times = 2.3 times Dividend Cover before goodwill amortisation and exceptional items = EPS (basic) --------------- Total ordinary dividend/share 22.2 14.8 -- -- 17.8 17.8 = 1.2 times = 0.8 times Return on Net Operating Assets = Profit before interest, tax and exceptional items ------------------------- Average net operating assets 208 180 -- -- 1 990 2 116 = 10.5% = 8.5% Net operating assets are calculated as: Total net assets 1 081 1 062 Add back: Net borrowings 639 963 Add back: Unallocated net liabilities- dividends & tax 93 142 ---------------- Net operating assets 1 813 2 167 ---------------- Average net operating assets 1 990 2 116 Short Name: Tate & Lyle PLC Category Code: FR Sequence Number: 00000255 Time of Receipt (offset from UTC): 20020606T131046+0100

Companies

Tate & Lyle (TATE)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today