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 This information is provided by RNS The company news service from the London Stock Exchange

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