Interim Results

BARR (A.G.) PLC 28 September 1999 A G BARR p.l.c. Interim Results For the 6 months ended 31 July 1999 A G Barr p.l.c, the Scottish based manufacturer of soft drinks including the popular Irn-Bru, Tizer and Orangina brands, announces its interim results today. Key Points * Underlying profit showed a 9% improvement despite continued intense competition. * Turnover increased to £58.3m (1998: £56.5m) * Interim dividend of 7.35p (1998: 7.00p) * UK sales of Barr brands were up by 3.5% * KLP Soft Drinks, our Moscow based franchise bottler, has continued to build distribution and sales of A G Barr brands. Commenting on the results, Robin Barr, the Executive Chairman, said: 'Although the increase in turnover has been relatively modest, our brand share of the British carbonates market did in fact improve during the first half year reflecting good performances from both Irn-Bru and Tizer. We thus have a firm platform on which to continue to develop our business during the remainder of this financial year and beyond.' For further information, contact: A G Barr: Robin Barr, Chairman OR 0141 554 1899 Iain Greenock, Financial Director Buchanan Communications: Tim Thompson/Nicola Cronk 0171 466 5000 CHAIRMANS STATEMENT Profit on ordinary activities before taxation for the 6 months to 31 July, 1999 was £8,229,000 compared with £8,154,000 for the same period last year. Although this would appear to indicate that the level of profit has advanced only slightly, shareholders should take into account two abnormal factors. * The profit for the half year in 1998 included a net surplus of £380,000 relating to property transactions which incorporated the sale of two properties. * As a result of the recent improvement in cash flow surpluses and the current low level of interest rates, early settlement of our term loan was negotiated with our bankers at a cost of £233,000 which has been charged in arriving at the profit on ordinary activities before interest in this half years accounts. This settlement is calculated to provide a net benefit to the company over the remainder of the original loan period. The underlying level of profit has therefore seen a satisfactory improvement of 9% during a period when competition remained intense. Margins were modestly assisted by the net reduction in sugar prices arising from the strength of Sterling against the Euro during the half year and, in addition, the prices of PET bottles remained at historically low levels throughout the six months. Turnover for the 6 months to the end of July 1999 was £58.3m, an increase of 3% over the comparable period last year. UK sales of Barr brands were up by 3=% whereas sales of Retailers Own Labels showed a slight decline. Export sales were up by over 50% largely reflecting sales of concentrate to our new franchise bottler in Russia. Our sales in the UK had been disappointing up to the end of June but better weather, year-on-year, in July has enabled us to report a marginal cumulative increase. Your Directors have declared an interim dividend of 7.35p per share payable on 29 October, 1999 in respect of the year to 29 January, 2000. This represents an increase of 5% compared with the rate of interim dividend paid last year. I am pleased to report that our Moscow based franchise bottler, KLP Soft Drinks, has continued to build distribution and sales of our brands, and particularly Irn-Bru, despite the many problems which have stemmed from the financial crisis in Russia last year. We look forward to assisting the continuing development of this business as it progresses through its second year of trading. In December 1997 Pernod Ricard announced that they had agreed to sell their Orangina business to The Coca-Cola Company, yet even now we are still not certain whether the deal will be completed. Following the final rejection in April 1999 by the French competition authorities of the original proposals, a revised agreement was reached by the two parties in May. This is currently being examined by the appropriate French Ministry and we expect to learn their decision by the end of this year. Our own franchise for the brand Orangina in Great Britain is re-negotiable at the end of December 2002 and could potentially be affected by a change of the brand owner. Although total turnover during the six weeks subsequent to 31 July has only been level with that achieved in the comparable period last year, the sales of Barr brands have been up by 2% with Retailers Own Labels showing a decline. Margins remain broadly similar to those achieved in the first half of the year although we have faced some increase in the prices of PET bottles during the summer period. The summer weather in 1999 was much better than last year in the South of the UK, but the improvement was less pronounced in Scotland which still remains proportionately our most important trading area. Although the increases in turnover reported above have been relatively modest, our brand share of the British carbonates market did in fact improve during the first half year reflecting good performances from both Irn-Bru and Tizer. We thus have a firm platform on which to continue to develop our business during the remainder of this financial year and beyond. W. R. G. Barr Chairman 28 September 1999 A.G. Barr p.l.c. And its Subsidiary Companies Consolidated Profit and Loss Account For the six months ended 31 July,1999 The following are the unaudited results for the six months ended 31 July, 1999 6 months 6 months Year ended ended ended 31.07.99 01.08.98 30.01.99 £000 £000 £000 Turnover 58,311 56,548 106,892 ================================ Profit on ordinary activities before interest 8,334 8,302 12,303 Interest 105 148 312 --------------------------------- Profit on ordinary activities before taxation 8,229 8,154 11,991 Taxation 2,310 2,466 3,415 --------------------------------- Profit on ordinary activities after taxation 5,919 5,688 8,576 --------------------------------- Earnings per share on issued share capital 30.44p 29.28p 44.15p --------------------------------- Basic earnings per share 31.61p 30.23p 45.55p --------------------------------- Fully diluted earnings per share 30.63p 29.10p 43.88p --------------------------------- Dividend per share 7.35p 7.00p 18.25p --------------------------------- Dividend (£000) 1,429 1,360 3,545 --------------------------------- Record date: 8 October, 1999 Ex-div date: 4 October, 1999 Payment date of dividend: 29 October, 1999 Notes: 1. The figures for the six months have not been audited but have been prepared under the same accounting policies as applied for the accounts for the year ended 31 January 1999. 2. The results shown above for the year ended 31 January 1999 are an abridged version of the Companys full accounts, which carried an unqualified audit report. 3. Copies of this interim report will be posted to shareholders. Further copies can be obtained from the Companys registered office at 1306 Gallowgate, Glasgow, Scotland, G31 4DS.

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