Interim Results
Barr(A.G.) PLC
25 September 2002
25 September 2002
A.G. BARR p.l.c.
INTERIM RESULTS
A.G. Barr p.l.c., the Scottish based manufacturer of soft drinks including the
popular Irn-Bru, Tizer and Orangina, announces its interim results today for the
6 months period ended 27 July 2002.
Key Points
• Profit on ordinary activities before tax of £6.2 million (2001 - £5.7
million).
• Interim Dividend of 7.35p in respect of year to January 2003 (2002 - 7.35p).
• Turnover increased 5% to £62.2 million (2001 - £59.4 million).
• Turnover for the seven weeks following 27 July, increase of 4%
compared to the same period last year.
• Roger White recruited as Managing Director.
Commenting Robin Barr, the Executive Chairman, said:
'The better weather pattern immediately following the half year end has enabled
us to maintain our trading position at the beginning of the second six months
but the market place remains very competitive. We intend however, to continue
progress during the remainder of this financial year with the development of our
Irn-Bru brand in England and Wales.'
For further information:
A.G. Barr
Robin Barr, Chairman or
Iain Greenock, Finance Director Tel: 0141 554 1899
Buchanan Communications:
Tim Thompson/Nicola Cronk Tel: 020 7466 5000
A.G. BARR p.l.c.
Chairman's Statement
Profit on ordinary activities before taxation for the 6 months to 27 July, 2002
was £6.2 million compared with £5.7 million for the same period last year.
This improvement, while of course welcome, was a little disappointing given the
special factors which affected the results of the half year to July 2001 and
which had led us to expect a bigger uplift in profit than we actually obtained.
Against that the weather pattern experienced across the U.K. during the
important sales months of May, June and July has been widely reported as the
worst for many years and this had its inevitable effect on the soft drinks
industry.
Competitive pressures in the market place have remained intense and the
continuing high value of Sterling has meant that the U.K. franchise bottlers of
international brands remain under threat from imports of these brands of foreign
manufacture with a consequential effect on U.K. pricing. Costs of production
were modestly down on the same period last year with a small rise in the price
of sugar being covered by a reduction in packaging costs.
Turnover for the 6 months to July 2002 was £62.2 million, an increase
approaching 5%. Given the very disappointing weather during the peak selling
months this was a satisfactory performance and was substantially due to the
success of our promotional activities for our Irn-Bru brand in England and
Wales. These commenced earlier in this financial year than had been the case in
the previous year.
The substantial increase in our export turnover compared with the same period
last year reflected the start-up of Pepsi Bottling Group as our new franchise
bottler for Irn-Bru in Russia and we have been very encouraged by the much wider
distribution which they have already achieved for our brand.
Your directors have declared an interim dividend of 7.35p per share payable on
25th October, 2002 in respect of the year to January 2003. This is the same
rate of interim dividend as was paid last year.
Turnover for the seven weeks subsequent to 27 July has been 4% up compared with
the same period last year, reflecting the arrival of more normal summer weather
during August.
We do not expect our major costs to vary substantially during the second half of
the year but neither can we foresee any hardening of prices in the market place.
As intimated in our announcement to the Stock Exchange in June Roger White,
recently Commercial Director of British Bakeries, has been recruited as Managing
Director and I am very pleased to welcome him to our company.
The better weather pattern immediately following the half year end has enabled
us to maintain our trading position at the beginning of the second six months
but, as advised above, the market place remains very competitive. We intend
however to continue progress during the remainder of this financial year with
the development of our Irn-Bru brand in England and Wales.
Robin Barr, Chairman 25 September, 2002
A.G. BARR p.l.c.
Consolidated Profit and Loss Account
6 months 6 months Year
ended ended ended
27.07.02 28.07.01 26.01.02
£000 £000 £000
Turnover (note 2) 62,216 59,412 116,261
Operating profit 6,038 5,561 10,487
Interest 137 162 253
Profit on ordinary activities before
taxation 6,175 5,723 10,740
Taxation (note 3) 1,817 1,743 3,254
Profit on ordinary activities after
taxation 4,358 3,980 7,486
No separate Statement of Total Recognised Gains and Losses has been presented as
all such gains and losses have been dealt with in the Consolidated Profit and
Loss Account.
Earnings per share on issued share capital (note 4) 22.39p 20.45p 38.47p
Basic earnings per share 23.21p 21.20p 39.90p
Fully diluted earnings per share 21.98p 20.00p 37.97p
Dividend per share 7.35p 7.35p 21.60p
Dividend (£000) 1,430 1,429 4,202
Record date: 4 October, 2002
Ex-div date: 2 October, 2002
Payment date of dividend: 25 October, 2002
A.G. BARR p.l.c.
Consolidated Balance Sheet
As at As at As at
27.07.02 28.07.01 26.01.02
£000 £000 £000
Fixed assets
Tangible assets (note 5) 42,711 41,893 42,580
Investment in associated undertaking - 100 -
42,711 41,993 42,580
Current assets
Stocks 11,083 12,568 11,536
Debtors 23,074 23,780 21,078
Investment 2,609 2,646 2,623
Cash at bank 10,013 6,313 8,265
46,779 45,307 43,502
Creditors: Due within one year 24,607 26,377 24,113
Net current assets 22,172 18,930 19,389
Total assets less current
liabilities 64,883 60,923 61,969
Provisions for liabilities and
charges 640 651 645
Deferred credit 4,922 4,662 4,931
Deferred taxation 5,562 5,313 5,576
59,321 55,610 56,393
Capital and reserves
Called up share capital 4,865 4,861 4,865
Share premium account 905 859 905
Profit and loss account 53,551 49,890 50,623
59,321 55,610 56,393
A.G. BARR p.l.c.
Notes to the Consolidated Accounts
1. Non-statutory accounts
These interim financial statements, which have been prepared on the basis of the
accounting policies set out in the company's 2002 published accounts, do not
constitute statutory accounts and are unaudited. Comparative figures for the
year ended 26 January, 2002 have been extracted from the statutory accounts of
the company on which the auditors gave an unqualified report and which have been
filed with the Registrar of Companies.
A copy of this announcement is distributed to all registered shareholders of the
company and is available for members of the public upon application to the
Company Secretary at 1306 Gallowgate, Glasgow G31 4DS and on our corporate
website at www.agbarr.co.uk
2. Turnover
The figure for turnover includes exports of £380,000 (2001 - £155,000 ; Year
2002 - £345,000).
3. Taxation
Corporation tax is provided at the anticipated rate of taxation for the group's
current financial period.
4. Earnings per share
The calculation is based on the group profit after taxation and the numbers of
ordinary shares of 25p each in issue at 27 July, 2002.
5. Movement in tangible fixed assets 6 months 6 months Year
ended ended ended
27.07.02 28.07.01 26.01.02
£000 £000 £000
Beginning of period 42,580 39,102 39,102
Additions 3,316 6,104 9,864
Disposals (227) (245) (397)
Depreciation (2,958) (3,068) (5,989)
End of period 42,711 41,893 42,580
A.G. BARR p.l.c.
Consolidated Cash Flow Statement
6 months 6 months Year
ended ended ended
27.07.02 28.07.01 26.01.02
£000 £000 £000
Net cash inflow from operating activities (note 1) 8,407 2,302 12,989
Returns on investment and servicing of finance
Interest received 142 176 268
Interest paid (5) (10) (11)
Interest element of hire purchase paid - (4) (4)
137 162 253
Taxation
Corporation tax paid (1,304) (1,676) (4,181)
Capital expenditure and financial investment
Purchase of tangible fixed assets (2,733) (2,728) (7,750)
Sale of tangible fixed assets 191 130 258
(2,542) (2,598) (7,492)
Acquisitions and disposals
Investment in subsidiary - - (105)
Net overdraft acquired with subsidiary - - (90)
- - (195)
Dividends paid (2,773) (2,771) (4,200)
Cash inflow/(outflow) before financing 1,925 (4,581) (2,826)
Financing
Capital element of hire purchase repaid - (304) (284)
Increase/(decrease) in cash 1,925 (4,885) (3,110)
A.G. BARR p.l.c.
Notes to the Consolidated Cash Flow Statement
1. Net cash inflow from operating activities 6 months 6 months Year
ended ended ended
27.07.02 28.07.01 26.01.02
£000 £000 £000
Operating profit 6,038 5,561 10,487
Depreciation 2,958 3,068 5,989
Loss on sale of tangible assets 36 115 139
Government grants written back (4) (15) (22)
Decrease/(increase) in stocks 452 (1,768) (662)
(Increase) in debtors (2,750) (6,422) (2,752)
Decrease/(increase) in investment 14 (147) (124)
Increase/(decrease) in creditors 1,662 1,910 (73)
Pension provision release 1 - 7
8,407 2,302 12,989
2. Reconciliation of net cash flow to movement in net funds
Increase/(decrease) in cash in the period 1,925 (4,885) (3,110)
Cash outflow from decrease in debt and leasing
finance - 304 334
Movement in net funds in the period 1,925 (4,581) (2,776)
Loan acquired with subsidiary - - (30)
Net funds at 26 January, 2002 8,088 10,894 10,894
Net funds at 27 July, 2002 10,013 6,313 8,088
3. Analysis of changes in net funds At 26.01.02 Cash At
Flows 27.07.02
£000 £000 £000
Cash in hand and at bank 8,265 1,748 10,013
Overdrafts (177) 177 -
Total 8,088 1,925 10,013
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