Interim Results
Interim Results
LONDON--(BUSINESS WIRE)--Nov. 7, 2002--Tate & Lyle PLC
7 November 2002
ANNOUNCEMENT OF INTERIM RESULTS
For the six months ended 30 September 2002
-----------------------------------------------------------------------------------------------------
INTERIM RESULTS TO 30 SEPTEMBER 2002 2001
-----------------------------------------------------------------------------------------------------
Profit before interest, goodwill amortisation and
exceptional items £144m £97m
Profit before tax, goodwill amortisation and
exceptional items £126m £64m
Diluted earnings per share before goodwill amortisation
and exceptional items 18.0p 9.4p
Interim dividend per share 5.5p 5.5p
-----------------------------------------------------------------------------------------------------
o Profit before tax, goodwill amortisation and exceptional items
increased by 97%
o Diluted earnings per share increased by over 90% to 18.0p
o Interest cover increased from 3.0 times to 7.2 times
o Margin on sales increased from 4.5% to 8.7%
o Net debt reduced by £127 million to £512 million since 31 March
2002
o Annualised return on net operating assets increased from 8.9% to
16.1%
'As stated in the September 2002 trading statement, we anticipate that
the results for the full year will revert to a traditional seasonal
trading pattern with a significant weighting of profits towards the
first half. Increased selling prices in next calendar year's sweetener
pricing round, including the recovery of prevailing higher corn costs
at Staley, will be the significant factor in determining the
likelihood of an improvement in Group profits in the second half by
comparison with the same period in the previous year.
Our disposal of non-performing assets together with the much-improved
trading performance has considerably strengthened the balance sheet.
Following an excellent start we are increasingly confident about the
outlook for the year as a whole.'
Sir David Lees
Chairman
An interim statement incorporating the Group profit and loss account
for the six months ended 30 September 2002 will be posted to
shareholders shortly.
Copies of this Announcement are available from: Robert Gibber, Company
Secretary, Tate & Lyle PLC, Sugar Quay, Lower Thames Street, London
EC3R 6DQ.
INTERIM REPORT
Comparisons are with the six months to 30 September 2001 unless stated
otherwise.
Overview
Profit before tax, goodwill amortisation and exceptional items for the
six months to 30 September 2002 was £126 million. This was materially
above the £64 million achieved in the six months to September 2001.
Whilst this was partly due to the disposal of the US sugar businesses,
which lost £19 million in the comparative period, underlying trading
also improved, particularly at Staley and Amylum. The stronger trading
performance and lower interest charge enabled us to improve interest
cover from 3.3 times in the year to 31 March 2002 to 7.2 times in the
half year to 30 September 2002 and strengthen the balance sheet. The
annualised return on net operating assets increased to 16.1% (8.9%).
We announced on 1 May 2002 the completion of the sale of Western Sugar
Company with an effective date for the transaction of 31 March 2002.
The total consideration after working capital adjustments was £56
million (US$82 million) of which £16 million was received in the
period under review. The balance is payable over a maximum of 5 years.
We are determining how best to maximise shareholder value from our
molasses and liquid storage business and partial disposal remains one
option.
The Board has declared an unchanged interim dividend of 5.5p per
share, to be paid on 14 January 2003 to shareholders registered on 6
December 2002.
Results for the six months to 30 September 2002
Sales were £1,646 million (£2,133 million). Sales from continuing
operations were £1,635 million (£1,749 million). The reduction mainly
relates to lower selling prices in our sugar trading unit and the
impact of lower US dollar exchange rates. Profit before interest and
exceptional items was £144 million (£97 million) before a £4 million
(£4 million) charge for amortisation of goodwill. The margin of profit
before interest, goodwill amortisation and exceptional items to sales
improved to 8.7% (4.5%).
The interest charge of £18 million was £15 million lower than the
comparative period and benefited from a substantial reduction in net
debt. Additionally the interest charge was reduced by £5 million
relating to interest received on tax refunds and exchange gains on
foreign currency balances. Interest cover improved significantly to
7.2 times, exceeding our target to restore cover to at least 4.0
times.
Profit before tax, goodwill amortisation and exceptional items was
£126 million (£64 million). Currency movements reduced profit before
tax by £1 million, mainly due to the impact of the weaker US dollar.
Profit before tax but after goodwill amortisation and exceptional
items was £129 million (£64 million).
Exceptional items totalled a gain of £7 million (gain of £4 million).
This consists of £7 million earnout income from the Domino Sugar
disposal, final adjustments on the sale of Western Sugar, and loss on
sale of fixed assets.
The underlying rate of tax on profit before goodwill amortisation and
exceptional items is 31% (year to 31 March 2002, 32%).
Diluted earnings per share before goodwill amortisation and
exceptional items were 8.6p higher at 18.0p , and after exceptional
items and goodwill amortisation were 18.8p (9.4p).
The Group continued to generate strong cashflow. Net cash inflow from
operating activities was £198 million (£215 million). Capital
expenditure totalled £31 million (£39 million). Since the March 2002
year end net debt has reduced by £127 million to £512 million (£848
million).
Amylum Integration
The integration of Amylum and Staley is on track to deliver the
anticipated net £10 million of benefits in the full year. We remain
confident that we will achieve our original target for gross annual
benefits of £50 million by the financial year ending March 2004 with a
net £25 million benefit in that year.
Segmental Analysis before Exceptional Items
Americas
Profits in the segment were £78 million, £33 million higher than the
comparative period which included losses in the US sugar businesses of
£19 million.
Profits at Staley were higher, reflecting an improvement in
contribution from main product lines and lower manufacturing costs,
including energy costs. Corn costs were higher as were by-product
returns. Ethanol prices throughout the US were lower than in the
corresponding period and the contribution from this product line
declined. Good progress was made in the value-added food ingredients
segment but the industrial starch market, and in particular the paper
industry, continued to be competitive.
Selling prices for citric acid continued to decline due to competition
from Asian imports. Action to reduce costs has ensured that our
business remains profitable.
Corn prices in the US have been volatile and rose over the period due
to a drought in the Midwest Corn Belt which caused the US Department
of Agriculture to cut its production estimates. Increased selling
prices in next calendar year's sweetener and starch pricing round,
including the recovery of increased US corn costs, will therefore be
important in determining the profitability of the second half year.
The level of profitability in the second half year will be adversely
affected by exchange translation if current US dollar exchange rates
prevail.
Almex in Mexico remains profitable despite the impact of a tax on soft
drinks containing high fructose corn syrup.
Redpath, our Canadian sugar refiner, performed well with lower costs
and increased volumes. The sale of Western Sugar (our US beet sugar
refiner) was announced on 1 May 2002 and the business made a profit of
£1 million in the period prior to its disposal. Occidente in Mexico
improved on better pricing and a record cane crop.
Europe
Profits in the segment improved to £59 million (£53 million).
Amylum, our European cereal sweetener and starch business, reported
higher profits. A modest improvement in both starch and sweetener
volumes and a better product mix offset the price decline announced
earlier in the year. Wheat and maize raw material prices were lower
and by-product revenues increased. Lower overheads and better energy
efficiency and a reduction in overall energy costs also contributed to
the improved earnings. Amylum's Eastern European operations performed
particularly well with strong demand and a more stable business
environment.
The integration programme involves examining all aspects of the
business by cross-functional teams drawn from and applying best
practices throughout the Group. A number of initiatives are already
delivering benefits. Since the start of the integration programme and
after full consultation with the relevant works councils, Amylum's
headcount has reduced by more than 200. The programme is on-track to
deliver a net benefit of £10 million in the full year.
Our sugar refineries in London and Lisbon continue to produce stable
profits and generate good cashflow. The benefit of improved
efficiencies was partially offset by higher energy costs.
In Eastern Sugar, a large beet sugar crop in Central Europe and lower
than expected demand affected selling prices, particularly in the
Czech Republic, and overall profits were lower.
Rest of the World
With the disposal programme largely complete, this segment mainly
consists of Nghe An Tate & Lyle Sugar Company in Vietnam and our sugar
trading activity, both of which continued to perform well.
Other Segments
In the Animal Feed and Bulk Storage segment the molasses and storage
business performed in line with expectations. Whilst we expect profits
to be seasonal, we do not expect profits in the second half year to
match those of the comparative period in the preceding year.
Losses in our reinsurance business in the first half of the 2002
financial year were not repeated and this, coupled with £3 million
licence fee income from sucralose in this half year (£ nil), improved
the result in the Other Businesses and Activities segment.
Retirement Benefits
As previously announced, during the half year we made a one-off
contribution of £7 million into the largest of our pension schemes,
the UK Tate & Lyle Group Pension Scheme, to eliminate the shortfall at
the end of March 2002 and re-commenced cash contributions of £8
million per annum. We have recently reviewed the US schemes and
contributed an additional £2 million (US$3 million) in the first half
year, and will contribute £5 million (US$7million) in the second half
year before increasing cash contributions by £7million (US$10 million)
a year. These payments will result in a cash outflow of £22 million in
the year to 31 March 2003. The accounts continue to be prepared under
SSAP 24 and the effect on the profit and loss account for the year is
under £1 million.
Under SSAP 24, the net pension liability reduced by £9 million to £23
million and the US healthcare provision reduced by £17 million to £113
million. The charge for pensions in the half year under SSAP 24 was £7
million and under FRS17 would have increased to £11 million.
The net pension position at 30 September 2002, under FRS 17, would
have been a deficit of £250 million, a movement of £200 million from
the deficit of £50 million that would have been recorded at 31 March
2002. The potential US healthcare liability would have decreased from
£117 million to £111 million. After taking account of deferred tax,
the Group's net assets at 30 September would have reduced by £146
million from £1,069 million under SSAP24 to £923 million if the
provisions of FRS 17 had been adopted.
Chief Executive
As already announced Larry Pillard will be relinquishing his position
as Chief Executive at the end of the calendar year although he will
continue to serve the Group as a Non-Executive Director. Satisfactory
progress is being made in the selection of his successor.
Outlook
As stated in the September 2002 trading statement, we anticipate that
the results for the full year will revert to a traditional seasonal
trading pattern with a significant weighting of profits towards the
first half. Increased selling prices in next calendar year's sweetener
pricing round, including the recovery of prevailing higher corn costs
at Staley, will be the significant factor in determining the
likelihood of an improvement in Group profits in the second half by
comparison with the same period in the previous year.
Our disposal of non-performing assets together with the much-improved
trading performance has considerably strengthened the balance sheet.
Following an excellent start we are increasingly confident about the
outlook for the year as a whole.
Sir David Lees
Chairman
TATE & LYLE
GROUP PROFIT AND LOSS ACCOUNT
Unaudited results for the 6 months to 30 September 2002
----------------------------------------------------------------------------------------------------------------------
Unaudited for the 6 months to 30 September Unaudited Audited
2002
6 months to
Continuing Discontinued 30 Sept Year to 31
activities Activities Total 2001 March 2002
£ million £ million £ million £ million £ million
----------------------------------------------------------------------------------------------------------------------
Sales (Note 1)
Group subsidiaries 1,471 11 1,482 1,957 3,616
Share of joint ventures and associates 164 - 164 176 328
-------------- ---------------- ------------ ------------- ------------
1,635 11 1,646 2,133 3,944
============== ================ ============ ============= ============
Group operating profit before goodwill
amortisation 121 1 122 81 180
Goodwill amortisation (4) - (4) (4) (8)
-------------- ---------------- ------------ ------------- ------------
Group operating profit 117 1 118 77 172
Share of operating profits of joint ventures
and associates 22 - 22 16 36
-------------- ---------------- ------------ ------------- ------------
Total operating profit: Group and share of
joint ventures and associates 139 1 140 93 208
Exceptional profit/(loss) on sale of
businesses - 8 8 (2) (5)
Exceptional (loss)/profit on sale of fixed
assets (1) - (1) 6 13
-------------- ---------------- ------------ ------------- ------------
Profit before interest (Note 2) 138 9 147 97 216
-------------- ----------------
Net interest payable (17) (27) (55)
Share of joint ventures' and associates'
interest (1) (6) (2)
------------ ------------- ------------
Profit before taxation 129 64 159
Taxation (38) (19) (39)
------------ ------------- ------------
Profit after taxation 91 45 120
Minority interests (1) - (2)
------------ ------------- ------------
Profit for the period 90 45 118
Dividends paid and proposed (26) (26) (85)
------------ ------------- ------------
Retained profit 64 19 33
============ ============= ============
Earnings per share (Note 3)
- basic 18.9p 9.4p 24.7p
- diluted 18.8p 9.4p 24.6p
----------------------------------------------------------------------------------------------------------------------
Before goodwill amortisation and
exceptional items
Profit before taxation (£ million) 126 64 159
Diluted earnings per share (pence) 18.0p 9.4p 22.1p
----------------------------------------------------------------------------------------------------------------------
TATE & LYLE
GROUP BALANCE SHEET
Summarised balance sheet as at 30 September 2002
Unaudited Unaudited Audited
30 September 30 September 31 March
2002 2001 2002
£ million £ million £ million
---------------------------------------------------------------------------------------------------------------------
Fixed assets
Intangible assets 149 162 158
Tangible assets 1,210 1,414 1,303
Investments 240 215 238
----------------- ----------------- ------------------
1,599 1,791 1,699
----------------- ----------------- ------------------
Current assets
Stocks 305 408 400
Debtors 350 478 467
Investments and cash at bank and in hand (Note 4) 120 166 135
----------------- ----------------- ------------------
775 1,052 1,002
Creditors - due within one year
Borrowings (Note 4) (72) (443) (151)
Other (397) (440) (502)
----------------- ----------------- ------------------
Net current assets 306 169 349
----------------- ----------------- ------------------
Total assets less current liabilities 1,905 1,960 2,048
Creditors - due after more than one year
Borrowings (Note 4) (560) (571) (623)
Other (2) (2) (3)
Provisions for liabilities and charges (274) (351) (341)
----------------- ----------------- ------------------
Total net assets 1,069 1,036 1,081
================= ================= ==================
Capital and reserves
Called up share capital 123 123 123
Share premium account and other reserves 490 499 489
Profit and loss account 419 378 431
----------------- ----------------- ------------------
Shareholders' funds 1,032 1,000 1,043
Minority interests 37 36 38
----------------- ----------------- ------------------
1,069 1,036 1,081
================= ================= ==================
TATE & LYLE
STATEMENT OF CASH FLOWS
For the 6 months to 30 September 2002
Unaudited Unaudited Audited
6 months to 6 months to Year to
30 September 30 September 31 March
2002 2001 2002
£ million £ million £ million
--------------------------------------------------------------------------------------------------------------------
---------------- --------------- ---------------
Operating profit 118 77 172
Depreciation of tangible fixed assets 56 58 121
Amortisation of goodwill 4 4 8
Change in working capital 20 76 143
Provisions against fixed asset investments - - 1
---------------- --------------- ---------------
Net cash inflow from operating activities 198 215 445
Dividends from joint ventures and associates 2 6 7
Returns on investment and servicing of finance
---------------- --------------- ---------------
Net interest paid (10) (31) (61)
Dividends paid to minority interests in subsidiary undertakings - (1) (1)
---------------- --------------- ---------------
(10) (32) (62)
Taxation received/(paid) 5 (5) (35)
Capital expenditure and financial investment
---------------- --------------- ---------------
Purchase of tangible fixed assets (31) (39) (76)
Sale of tangible fixed assets - 9 15
Purchase of fixed asset investments (15) (15) (12)
Sale of fixed asset investments 12 - 12
---------------- --------------- ---------------
(34) (45) (61)
Acquisitions and disposals
---------------- --------------- ---------------
Sale of businesses 16 10 103
Net overdraft of subsidiaries sold - - 2
Refinancing of existing joint ventures - - (3)
Sale of interests in joint ventures and associates - 1 7
---------------- --------------- ---------------
16 11 109
Equity dividends paid (58) (58) (85)
---------------- --------------- -------------
Net cash inflow before financing and management of liquid
resources 119 92 318
================ =============== =============
Reconciliation of cash flow to net debt
---------------------------------------------------------------------------------------------------------------------
Net cash inflow before financing and management of
liquid resources 119 92 318
Changes in debt not involving cash flow:
- Reduction on disposal of subsidiaries - 12 1
- Exchange movements 9 12 7
- Amortisation of bond discount (1) (1) (2)
---------------- --------------- -------------
Reduction in net borrowings 127 115 324
Net borrowings at start of period (639) (963) (963)
---------------- --------------- -------------
Net borrowings at end of period (512) (848) (639)
================ =============== =============
TATE & LYLE
COMBINED STATEMENT OF TOTAL RECOGNISED
GAINS AND LOSSES AND RECONCILIATION OF
MOVEMENTS IN SHAREHOLDERS' FUNDS
For the 6 months to 30 September 2002
Unaudited Unaudited Audited
6 months to 6 months to Year to
30 Sept 30 Sept 31 March
2002 2001 2002
£ million £ million £ million
-------------------------------------------------------------------------------------------------------------------
Profit for the period 90 45 118
Currency difference on foreign currency net investments (76) (27) (3)
Taxation on exchange difference on foreign currency net
investments - - 1
--------------- --------------- --------------
Total recognised gains for the period 14 18 116
Dividends (26) (26) (85)
Issue of shares 1 - -
Goodwill transferred to profit and loss account - - 4
--------------- --------------- --------------
Net (reduction)/increase in shareholders' funds (11) (8) 35
--------------- --------------- --------------
Opening shareholders' funds 1,043 1,008 1,008
--------------- --------------- --------------
Closing shareholders' funds 1,032 1,000 1,043
=============== =============== ==============
TATE & LYLE
NOTES TO INTERIM STATEMENT
For the 6 months to 30 September 2002
1. Segmental analysis of sales
----------------------------------------------------------------------------------------------------------------
Continuing Discontinued Total
6 months to 30 September 2002 activities activities sales
(unaudited) £ million £ million £ million
----------------------------------------------------------------------------------------------------------------
Sweeteners and starches
- Americas 618 11 629
- Europe 662 - 662
- Rest of the world 179 - 179
-------------------- ------------------- ------------------
1,459 11 1,470
Animal feed and bulk storage 160 - 160
Other businesses and activities 16 - 16
-------------------- ------------------- ------------------
1,635 11 1,646
==================== =================== ==================
6 months to 30 September 2001 (unaudited restated)
----------------------------------------------------------------------------------------------------------------
Sweeteners and starches
- Americas 652 321 973
- Europe 688 - 688
- Rest of the world 208 38 246
-------------------- ------------------- ------------------
1,548 359 1,907
Animal feed and bulk storage 178 2 180
Other businesses and activities 23 23 46
-------------------- ------------------- ------------------
1,749 384 2,133
==================== =================== ==================
The analysis of sales for the 6 months to 30 September 2001 has been restated to include the results of
Western Sugar, ZSR and other minor disposals within Discontinued activities.
Year to 31 March 2002 (audited)
----------------------------------------------------------------------------------------------------------------
Sweeteners and starches
- Americas 1,269 428 1,697
- Europe 1,323 - 1,323
- Rest of the world 422 50 472
-------------------- ------------------- ------------------
3,014 478 3,492
Animal feed and bulk storage 371 7 378
Other businesses and activities 39 35 74
-------------------- ------------------- ------------------
3,424 520 3,944
==================== =================== ==================
Included in the analysis of total sales are the following amounts relating to associates and joint ventures:
6 months to 6 months to Year to
30 Sept 2002 30 Sept 2001 31 March 2002
£ million £ million £ million
----------------------------------------------------------------------------------------------------------------
Sweeteners and starches
- Americas 74 89 155
- Europe 87 72 149
- Rest of the world 1 13 20
-------------------- ------------------- ------------------
162 174 324
Animal feed and bulk storage 2 2 4
Other businesses and activities - - -
-------------------- ------------------- ------------------
164 176 328
==================== =================== ==================
2. Segmental analysis of profit before interest
----------------------------------------------------------------------------------------------------------------------
Before After
Continuing Discontinued exceptional Exceptional exceptional
6 months to 30 September 2002 activities activities items items items
(unaudited) £ million £ million £ million £ million £ million
----------------------------------------------------------------------------------------------------------------------
Sweeteners and starches
- Americas 77(a) 1 78(a) 7 85(a)
- Europe 59(a) - 59(a) - 59(a)
- Rest of the world 5 - 5 - 5
------------ ------------ ----------- ------------ -------------
141 1 142 7 149
Animal feed and bulk storage 2 - 2 - 2
Other businesses and activities (4) - (4) - (4)
------------ ------------ ----------- ------------ -------------
139 1 140 7 147
------------ ------------ ----------- ------------ -------------
(a) These profit figures include £2 million of goodwill amortisation.
6 months to 30 September 2001 (unaudited restated)
---------------------------------------------------------------------------------------------------------------------
Sweeteners and starches
- Americas 64(b) (19) 45(b) - 45(b)
- Europe 53(b) - 53(b) 4 57(b)
- Rest of the world 2 2 4 - 4
------------ ------------ ----------- ------------ -------------
119 (17) 102 4 106
Animal feed and bulk storage 3 (2) 1 - 1
Other businesses and activities (12) 2 (10) - (10)
------------ ------------ ----------- ------------ -------------
110 (17) 93 4 97
------------ ------------ ----------- ------------ -------------
(b) These profit figures include £2 million of goodwill amortisation.
The analysis of profit before interest for the 6 months to 30 September 2001 has been restated to include the results
of Western Sugar, ZSR and other minor disposals within Discontinued activities.
Year to 31 March 2002 (audited)
----------------------------------------------------------------------------------------------------------------------
Sweeteners and starches
- Americas 139(c) (18) 121(c) 1 122(c)
- Europe 87(c) - 87(c) 4 91(c)
- Rest of the world 4 1 5 1 6
------------ ------------ ----------- ------------ -------------
230 (17) 213 6 219
Animal feed and bulk storage 15 (2) 13 (1) 12
Other businesses and activities (22) 4 (18) 3 (15)
------------ ------------ ----------- ------------ -------------
223 (15) 208 8 216
------------ ------------ ----------- ------------ -------------
(c) These profit figures include £4 million of goodwill amortisation.
3. Earnings/(losses) per share
---------------------------------------------------------------------------------------------------------------------------------------
The basic earnings per share of 18.9p (6 months to 30 September 2001 - 9.4p, year to 31 March 2002 - 24.7p)
are calculated by dividing profits after taxation and minority interests and preference dividend of £90 million
(September 2001 - profit of £45 million, March 2002 - profit of £118 million), by the weighted average number
of ordinary shares in issue during the period of 475,039,721 (September 2001 - 478,797,825;
March 2002- 477,322,221).
The diluted earnings per share are calculated on the assumptions that the outstanding options over 11,252,958
shares had been exercised and that the funds so generated would be used to purchase 8,663,810 ordinary shares
at the average price during the period of 350.7p, thereby increasing the average number of shares to 477,628,869.
Earnings / (losses) Diluted earnings/(losses) per share
6 months to 6 months to Year to 6 months to 6 months to Year to
30 Sept 30 Sept 31 March 30 Sept 30 Sept 31 March
2002 2001 2002 2002 2001 2002
£ million £ million £ million pence pence pence
------------------------------------ ------------- ------------ ---------- ------------- ------------ ----------
Diluted earnings of the period 90 45 118 18.8 9.4 24.6
Goodwill amortisation 4 4 8 0.8 0.8 1.7
Exceptional items (8) (4) (20) (1.6) (0.8) (4.2)
------------- ------------ ---------- ------------- ------------ ----------
Diluted earnings before goodwill
amortisation and exceptional items 86 45 106 18.0 9.4 22.1
============= ============ ========== ============= ============ ==========
The exceptional items recognised in the 6 months to 30 September 2002 include a tax credit of £1 million
(6 months to 30 September 2001 - £nil, year to 31 March 2002 - £12 million).
Unaudited Unaudited Audited
30 September 30 September 31 March
2002 2001 2002
4. Analysis of net debt £ million £ million £ million
-------------------------------------------------------------------------------------------------------------------
Investments and cash at bank and in hand 120 166 135
Borrowings due within one year (72) (443) (151)
Borrowings due after more than one year (560) (571) (623)
--------------- --------------- -------------
(512) (848) (639)
=============== =============== =============
5. Average exchange rates
-------------------------------------------------------------------------------------------------------------------
US Dollar £1 = $ 1.50 1.43 1.43
Euro £1 = 1.58 1.62 1.62
6. Period end exchange rates
-------------------------------------------------------------------------------------------------------------------
US Dollar £1 = $ 1.57 1.47 1.42
Euro £1 = 1.59 1.61 1.63
7. Basis of Preparation
-------------------------------------------------------------------------------------------------------------------
The foregoing accounts are prepared on the basis of the
accounting policies set out in the 2002 Annual Report for the
year to 31 March 2002.
The balance sheet as at 31 March 2002 has been abridged from
the full Group accounts, which received an auditors' report
which was unqualified and did not contain any statement
concerning accounting records or failure to obtain necessary
information and explanations. The full Group accounts have
been delivered to the Registrar of Companies.
The results for the 6 months to 30 September 2002 and 30
September 2001 and the balance sheets at 30 September 2002
and at 30 September 2001 are neither audited nor reviewed.
8. Net margin analysis
----------------------------------------------------------------------------------------------------------------------
6 months to 6 months to Year to
30 September 2002 30 September 2001 31 March 2002
----------------------------------------------------------------------------------------------------------------------
Continuing All Continuing All Continuing All
Before goodwill amortisation and activities activities activities activities activities activities
exceptional items % % % % % %
----------------------------------------------------------------------------------------------------------------------
Sweeteners and starches
- Americas 12.8 12.7 10.1 4.8 11.3 7.4
- Europe 9.2 9.2 8.0 8.0 6.9 6.9
- Rest of the world 2.8 2.8 1.0 1.6 0.9 1.1
----------- ---------- ---------- -------- ----------- ---------
Sweeteners and starches average 9.9 9.9 7.9 5.6 7.9 6.3
----------- ---------- ---------- -------- ----------- ---------
Animal feed and bulk storage 1.3 1.3 1.7 0.6 4.0 3.4
----------- ---------- ---------- -------- ----------- ---------
Group 8.7 8.7 6.5 4.5 6.7 5.5
----------- ---------- ---------- -------- ----------- ---------
After goodwill amortisation and
exceptional items
----------------------------------------------------------------------------------------------------------------------
Sweeteners and starches
- Americas 13.5 4.6 7.2
- Europe 8.9 8.3 6.9
- Rest of the world 2.8 1.6 1.3
---------
---------- --------
Sweeteners and starches average 10.1 5.6 6.3
---------- -------- ---------
Animal feed and bulk storage 1.3 0.6 3.2
---------- -------- ---------
Group 8.9 4.5 5.5
---------- -------- ---------
9. Ratio analysis
-------------------------------------------------------------------------------------------------------------------
6 months to 6 months to Year to
30 September 30 September 31 March
2002 2001 2002
-------------------------------------------------------------------------------------------------------------------
Gearing
Gearing = Net borrowings 512 848 639
---------------- --- --- ---
Total net assets 1,069 1,036 1,081
= 48% = 82% = 59%
Interest Cover - Tate & Lyle PLC and its subsidiaries
= Operating profit before goodwill amortisation and exceptional items
-------------------------------------------------------------------
Net interest payable
122 81 180
--- -- ---
17 27 55
= 7.2 times = 3.0 times = 3.3 times
Dividend Cover before goodwill amortisation and
exceptional items
= EPS (basic)
-----------
Total ordinary dividend/share
18.1 9.4 22.2
---- --- ----
5.5 5.5 17.8
=3.3 times = 1.7 times = 1.2 times
Return on Net Operating Assets
= Profit before interest, tax and exceptional items
-------------------------------------------------
Average net operating assets
140 93 208
--- -- ---
1,741 2,084 1,990
= 16.1% = 8.9% = 10.5%
Net operating assets are calculated as:
Total net assets 1,069 1,036 1,081
Add back: Net borrowings 512 848 639
Deduct unallocated assets - dividends & tax 87 116 93
------------------ ----------------- ---------------
Net operating assets 1,668 2,000 1,813
------------------ ----------------- ---------------
Average net operating assets 1,741 2,084 1,990
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