Final Results

Fuller,Smith&Turner PLC 09 June 2006 STRICTLY EMBARGOED UNTIL 7AM FRIDAY 9 JUNE 2006 PRESS RELEASE FULLER, SMITH & TURNER P.L.C. Financial results for the 52 weeks ended 1 April 2006 Reported and restated under International Financial Reporting Standards (IFRS) Financial Highlights • Revenues up 12% to £145.1 million (2005: £129.5 million) • Adjusted profit before tax(1) up 5% to £18.7 million (2005: £17.8 million) • Profit before tax down 13% to £15.3 million (2005: £17.6 million) • Adjusted earnings per share(2) up 6% to 56.58p (2005: 53.13p) • Basic earnings per share(3) down 11% at 46.40p (2005: 52.41p) • Pre-exceptional EBITDA up 14% to £32.1 million (2005: £28.2 million) • Proposed final dividend per share(3) increased 8% to 14.12p (2005: 13.10p) • Exceptional integration costs of £2.9m, following acquisition of George Gale and Company Limited ("Gales") in December 2005 for an enterprise value of £91.8 million. Corporate Progress • Successful integration of Gales into the Fuller's estate • An excellent performance from Managed Pubs with profits up 30% and like for like sales up 3.6% • Tenanted Inns profits up an impressive 26% • A good performance from Hotels with trading profits up 8% • Beer Company has continued to perform well with profits up 6% • Net interest costs up £2.2m (1) Adjusted profit before tax is calculated on a pre IFRS basis and excludes exceptional gains and losses so that it is on a comparable basis to that reported last year. (2) Calculated using adjusted earnings of £12.7 million (2005: £11.9 million) and the same weighted average number of shares as for the basic earnings per share. (3) Calculated on the £1 'A' ordinary share. Commenting on the results, Anthony Fuller, Chairman of Fuller's, said: "It has been an exciting year for the Group with the undoubted highlight being the acquisition of Gales in December 2005 which, together with other acquisitions made during the year, has increased the size of our pub retail estate by nearly 50%. Adjusted profits were up 5% to £18.7 million (2005: £17.8 million), including a small contribution from Gales net of acquisition finance costs. Fuller's underlying businesses had a strong year with profits up in all areas. Following the successful integration of Gales, we are well positioned to achieve synergies for the combined businesses in the next financial year of £3.5m, £0.5 million higher than first anticipated. The significantly larger estate will bring with it the benefits of economies of scale and, because of our retail structure, it also gives us more opportunity to maximise returns where appropriate by transferring pubs between the managed and tenanted estates. In addition, it presents excellent opportunities to expand our already successful free trade and wine divisions. We take a long term view and so continue to invest in our assets across all business areas, including existing outlets and the Brewery, to maintain standards and quality. In addition, we will continue our strategy of acquiring individual units to further grow our estate. I expect to see progress in the new combined business this year. " - Ends - For further information, please contact: Fuller Smith & Turner P.L.C. Press Office 020 8996 2175/2198/2048 Mobile 07831 299801/ 07748 657854 E-mail: pr@fullers.co.uk Michael Turner, Chief Executive: Press 020 8996 2048 Paul Clarke, Finance Director: Analysts 020 8996 2048 Merlin 020 7653 6620 Paul Downes 07900 244 888 (mobile) Vanessa Maydon 07802 961 902 (mobile) Rebecca Penney 07795 108178 (mobile) Notes to Editors For an official photo please e-mail photo@fullers.co.uk and one will automatically be sent by return on receipt of your e-mail. Copies of this statement, the Preliminary Statement and results presentation will be available on the Company's website, www.fullers.co.uk. Attached: Chairman's Statement Financial Highlights Unaudited Group Income Statement Unaudited Group Balance Sheet Unaudited Group Cash Flow Statement Other Unaudited Group Primary Statements Notes to the Accounts FULLER, SMITH & TURNER P.L.C. PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 1 APRIL 2006 CHAIRMAN'S STATEMENT Whatever You Do, Take Pride It has been an exciting year for the Group with the undoubted highlight being the acquisition of George Gale and Company Limited ("Gales") in December 2005 which, together with other acquisitions made during the year, has increased the size of our pub retail estate by nearly 50%. Adjusted profits were up 5% to £18.7 million (2005: £17.8 million), including a small contribution from Gales net of acquisition finance costs. Fuller's underlying businesses had a strong year with profits up in all areas. It should be noted that this uplift in profits is despite comparing 52 weeks trading against 53 weeks last year. Including four months trading from Gales, turnover was up 12% to £145.1 million (2005: £129.5 million). Costs of integrating the Gales business have resulted in an exceptional charge for the year of £2.9 million. With profits on disposal of properties of £0.3 million in the current financial year (2005: £0.2 million), post exceptional pre-tax profits were £15.3 million compared to £17.6 million last year. Adjusted earnings per share increased 6% to 56.58p (2005: 53.13p). The exceptional costs of integration resulted in basic earnings per share lower than last year at 46.40p (2005: 52.41p). Tax has been provided for at the expected effective rate for the full year of 31.9% on adjusted profits (2005: 32.7%). Pre-exceptional earnings before interest, tax, depreciation and amortisation (EBITDA) were up 14% to £32.1 million (2005: £28.2 million). On 2 December 2005, we acquired George Gale and Company Limited for an enterprise value of £91.8 million which was financed by new bank loans substantially increasing the Group's gearing. Since the acquisition, Gales trading results net of interest on acquisition finance, have made a small contribution to Group profits. Integration of the two businesses was completed before the end of the financial year. The brewery in Horndean has been closed and decommissioned and all brewing successfully transferred to Chiswick. In addition to the Gales acquisition, we have continued with our strategy of selective acquisitions and bought nine new outstanding pubs during the year. We also completed the construction of an excellent pub in Hertfordshire and sold two sites in London. Excluding the acquisition of Gales, total capital expenditure for the year was £30.6 million (2005: £17.5 million) of which £18.5 million (2005: £7.2 million) was on the nine pubs acquired and one pub built during the year. The current financial year is the first for which we are required to report our accounts under International Financial Reporting Standards (IFRS). The impact of IFRS on Fuller's profits is predominantly in relation to pension charges and share based payments which reduced this year's reported pre-exceptional profits by £0.8 million to £17.9 million (2005 £0.4m to £17.4m). A detailed restatement document of 2005 reported profits and assets is available on our website www.fullers.co.uk . We will be recommending the final dividend be increased by 8% to 14.12p per £1 ' A' and 'C' ordinary share and 1.412p per 10p 'B' ordinary share, which will be paid on Friday 28 July 2006 to shareholders on the Share Register as at 30 June 2006. Fuller's Inns It has been a good year for Fuller's Inns with adjusted profits up 21% to £19.1 million, before charging interest on acquisition finance, on turnover up 13% to £111.9 million. EBITDA at £26.2 million was up 18% (2005: £22.2 million). Managed Pubs The division has had an excellent year and, excluding Gales, turnover was up 5% against last year. On an uninvested like for like basis, turnover across the managed estate increased by 3.6%. A clear and consistent strategy combined with a well motivated and strong team has been the catalyst for the very strong performance in this part of the business. Our focus on delivering outstanding cask conditioned ales, great wine, delicious food and exemplary service has not wavered and is underpinned by an extensive refurbishment programme, training, sales development and targeted acquisitions. This emphasis has helped to create a unique selling point and I am delighted to report that this year food sales were up 13%, cask ale sales up 8% and wine sales up 8%. In addition, a number of initiatives have been run throughout the estate to encourage new customers into our pubs. This has included our inimitable Brewing Director, John Keeling, touring the estate with his Head Brewer's Road Shows where through tutored tastings he educates our customers on the quality and variety of our cask conditioned ales. These have extended to the ever-popular Beer and Food evenings where a range of beers is paired with different foods to show how well they go together. Excluding the Gales deal, it was a good year for pub acquisitions with seven high quality managed pubs acquired and our newly built and very successful Paper Mill on the Grand Union Canal in Apsley, Hertfordshire, opening in the year. We also acquired the freehold of one of our previously leasehold sites, the Hung Drawn & Quartered, by the Tower of London. These are all high quality assets and are excellent additions to the estate. In April 2005, we sold two leasehold bars and transferred three pubs to tenancy. These, plus 42 pubs from the Gales acquisition, have increased the number of pubs in the managed estate to 163 at the year end. We continue to invest in the existing estate and, in addition to the acquisitions during the year, there were 17 major projects undertaken in the year compared to 23 last year. All of our investment is aimed at maintaining the quality and longevity of the estate underpinning our strategy to deliver a premium retail experience. Tenanted Inns It was another good year within the tenanted estate and, excluding Gales, profits were up 8% on turnover up 5%. Two acquisitions were made during the period and three pubs transferred from the managed estate. We now have 65 tenants on 10-year leases representing just over half of the pre-Gales tenanted estate. The remaining pubs are on tenancy agreements and we anticipate maintaining a split between the two styles of agreement. Including Gales, the total number of tenanted pubs now stands at 192. Fuller's Hotels Fuller's Hotels had a good year with trading profits up 8%. The average room rate was up 3% to £70.56 and occupancy up 4%, which delivered an overall revpar of £45.62, an increase of 7% over last year. Continuing the positive trend from last year, the Brigstow, Chamberlain and White Hart maintained their strong performance. Our newest addition, the Red Lion Hotel in Hillingdon Village, has continued to grow its customer base and performed very well throughout the year. The Gales Acquisition The acquisition of Gales has added 111 predominantly freehold pubs to the retail estate. They provide an excellent geographic extension to Fuller's trading in an area with good demographics. The pubs have a high food mix, representing 40% of turnover, and provide good opportunities for growing cask ale and wine sales. The enlarged estate will also maximise efficiencies within the largely unchanged head office team and provide greater flexibility to transfer pubs between the managed and tenanted estate to increase returns. With the two estates now fully integrated we expect the full annual synergies to be generated in the current financial year. The Fuller's Beer Company The cask ale market continues to be challenging. However, the Fuller's Beer Company again performed well with adjusted profits up 6% to £8.7 million (2005: £8.2 million). EBITDA at £10.2 million was up 5% from £9.7 million last year. Total beer sales were up 3% to 285,000 barrels during the year. Own beer sales at 198,000 barrels were level with last year despite losing a large pub company customer who was re-tied following a takeover. Much of the lost volume has been replaced with recent new on and off trade listings. Sales to the tied estate have continued to grow and were up 9% against last year. This has been achieved through the close working relationship between the Beer Company and Fuller's Inns to ensure that our pubs deliver a unique range of great cask ales in the best possible condition. London Pride continues to be the UK's top selling premium cask ale. Consistent high product quality and support for the brand through creative marketing have led to an increased market share. Our newest beer, Discovery Blonde Beer launched in May 2005, has done exceptionally well in its first year. Served cooler than traditional ales it has added incremental volume by attracting lager drinkers and has been supported by a comprehensive marketing campaign. Sales have far exceeded our initial expectations. We have always been proud of the strength and depth of our brands and were very pleased when both ESB and Vintage Ale won the gold medal in their respective categories in the Beer World Cup Awards in March. The Wine Division has had yet another good year. It continues to make an increasingly valuable contribution to the business with profits up 15% compared to last year. Our agency business is expanding and now includes wines from Chile, New Zealand, Australia, South Africa and Spain as well as an excellent Champagne. Evidence of the quality and range of our wines can be seen in the growth of sales to our tied estate which were up 5% and also in the free trade which has seen wine volumes rise 6% over the last year. We continue to invest in the Brewery and earlier in the year we completed the £2.1 million development of the kegging line. This project has further automated the kegging process leading to improved quality control and increased efficiency in the Brewery, reducing costs in the long term. This investment has already proved its worth by being able to handle the increased volumes generated by the Gales acquisition. The Gales ales are being successfully brewed in Chiswick to customer acclaim and their brands are now part of the Fuller's portfolio. This has allowed us to close and decommission the brewery in Horndean reducing costs and increasing synergies. We are retaining a distribution hub in Horndean to service the southern section of our now much larger estate, including some of our customers previously serviced from Chiswick. The additions to our estate together with the enlarged trading area also present excellent opportunities to expand our already successful free trade and wine divisions. I am delighted that the progress made in every area of the business culminated in the winning of the Publican Awards 2006 "Regional Brewer of the Year". I feel this is just reward for the efforts of every member of the team. Prospects Following the successful integration of George Gale and Company Limited, we are well positioned to achieve synergies for the combined businesses in the next financial year of £3.5m, £0.5 million higher than first anticipated. The significantly larger estate will bring with it the benefits of economies of scale and, because of our retail structure, it also gives us more opportunity to maximise returns where appropriate by transferring pubs between the managed and tenanted estates. In addition, it presents excellent opportunities to expand our already successful free trade and wine businesses. All parts of the business continue to do well. Focused strategies together with a well motivated and strong team have delivered good bottom line growth across our managed and tenanted pub estates and hotels, and we expect to see this continue during the year. Our beer brands are extremely well positioned to perform positively in a competitive market. Our portfolio of beers is second to none and has been further enhanced through the addition of the Gales brands. The larger retail estate and the additional reach it brings, provide exciting growth potential for both our wines and free trade businesses. Other key brands are in good growth with Discovery Blonde Beer doing particularly well, exceeding all expectations in its first year. Further development of existing listings and benefits from the enlarged estate will help drive forward future growth. We take a long term view and so continue to invest in our assets across all business areas, including existing outlets, new pubs and the Brewery, to maintain standards and quality. In addition, we will continue our strategy of acquiring individual units to further grow our estate. I expect to see progress in the new combined business this year. A.G.F. Fuller CBE Chairman 9 June 2006 FULLER SMITH & TURNER P.L.C. FINANCIAL HIGHLIGHTS FOR THE 52 WEEKS ENDED 1 APRIL 2006 52 weeks to 53 weeks to 1 April 2 April Change 2006 2005(1) 2006/2005 £000 £000 ____________________________________________ ____________ ____________ ____________ Revenue 145,148 129,492 12.1% Profit before tax(2) 15,310 17,620 -13.1% Adjusted profits(3) 18,705 17,814 5.0% Pre-exceptional EBITDA(4) 32,149 28,234 13.9% Basic earnings per share(5) 46.40p 52.41p -11.5% Adjusted earnings per share(6) 56.58p 53.13p 6.5% Dividend per share(5) 19.75p 18.46p 7.0% Net assets per share(5) £6.97 £6.81 2.3% Gearing ratio 83.5% 14.7% N/A ____________________________________________ ____________ ____________ ____________ (1) The 2 April 2005 results have been restated due to the adoption of International Financial Reporting Standards ("IFRS") - see Note 1. (2) Profit before tax for the year to 1 April 2006 now includes the cost of preference dividends. In accordance with the option available on first time adoption of IAS 32 and IAS 39 (which is explained further in Note 1), the comparative numbers have not been restated. (3) Adjusted profit is the profit before tax excluding exceptional losses of £2.6m (2005: gain £0.2m) and IFRS adjustments. (4) Pre-exceptional earnings before interest, tax, depreciation, and amortisation. (5) Calculated on the £1 "A" ordinary share. (6) Calculated using adjusted profits after tax and the same weighted average number of shares as for the basic earnings per share. FULLER SMITH & TURNER P.L.C. GROUP INCOME STATEMENT FOR THE 52 WEEKS ENDED 1 APRIL 2006 52 weeks to 53 weeks to 1 April 2 April 2006 2005 £000 £000 REVENUE 145,148 129,492 Operating costs (122,723) (109,806) -------------- -------------- OPERATING PROFIT 22,425 19,686 Profit on disposal of properties 265 232 Reorganisation costs (2,907) - Interest receivable 104 336 Finance costs (4,577) (2,634) -------------- -------------- PROFIT BEFORE TAX 15,310 17,620 Tax (4,932) (5,755) -------------- -------------- PROFIT AFTER TAX 10,378 11,865 Preference dividends - (120) -------------- -------------- ATTRIBUTABLE TO EQUITY SHAREHOLDERS 10,378 11,745 ============== ============== EARNINGS PER SHARE Per £1 'A' ordinary share or unquoted £1 'C' ordinary share Basic 46.40p 52.41p Diluted 45.89p 51.94p Adjusted 56.58p 53.13p Per unquoted 10p 'B' ordinary share Basic 4.64p 5.24p Diluted 4.59p 5.19p Adjusted 5.66p 5.31p The results, and earnings per share, are all in respect of the continuing and total operations of the Company. The 2 April 2005 results have been restated due to the adoption of International Financial Reporting Standards ("IFRS") - see Note 1 - and to reclassify interest on retirement benefit obligations, previously reported under operating costs, to finance costs. FULLER SMITH & TURNER P.L.C. UNAUDITED BALANCE SHEET 1 APRIL 2006 Group Group 2006 2005 £000 £000 NON-CURRENT ASSETS Goodwill 24,493 - Property, plant and equipment 315,985 201,226 Investment properties 8,304 1,625 Other non-current assets 1,006 737 Deferred tax assets 7,579 4,976 -------------- -------------- TOTAL NON-CURRENT ASSETS 357,367 208,564 -------------- -------------- CURRENT ASSETS Inventories 5,484 4,426 Trade and other receivables 14,647 13,698 Cash and cash equivalents 1,370 4,610 -------------- -------------- TOTAL CURRENT ASSETS 21,501 22,734 -------------- -------------- CURRENT LIABILITIES Bank overdraft 286 - Bank loans 2,500 - Trade and other payables 34,763 23,476 Current tax payable 1,391 2,306 -------------- -------------- TOTAL CURRENT LIABILITIES 38,940 25,782 -------------- -------------- NON-CURRENT LIABILITIES Bank Loans 97,000 - Debenture stock 27,016 27,006 Loan notes 2,971 - Preference shares 1,600 - Retirement benefit obligations 21,646 13,337 Deferred tax liabilities 34,036 12,890 -------------- -------------- TOTAL NON-CURRENT LIABILITIES 184,269 53,233 -------------- -------------- NET ASSETS 155,659 152,283 ============== ============== CAPITAL AND RESERVES Share capital 22,870 22,831 Preference shares 1,600 - Share premium account 4,289 4,150 Capital redemption reserve 2,902 2,902 Treasury shares (4,662) (3,530) Retained earnings 130,260 124,330 -------------- -------------- TOTAL EQUITY 155,659 152,283 ============== ============== The 2 April 2005 figures have been restated due to the adoption of International Financial Reporting Standards ("IFRS") - see Note 1. FULLER SMITH & TURNER P.L.C. UNAUDITED GROUP CASH FLOW STATEMENT FOR THE 52 WEEKS ENDED 1 APRIL 2006 52 weeks to 53 weeks to 1 April 2 April 2006 2005 £000 £000 Group operating profit 22,425 19,686 Depreciation 9,419 8,486 Impairment of properties 175 - Profit on disposal of property plant and equipment 130 62 Reorganisation costs (2,907) - Difference between pension charge and cash paid (557) (448) Share-based payment charges 990 839 Change in trade and other receivables (1,148) (1,352) Change in inventories 77 (157) Change in trade and other payables 1,790 (677) -------------- -------------- CASH GENERATED FROM OPERATIONS 30,394 26,439 Tax paid (4,814) (5,413) -------------- -------------- CASH GENERATED FROM OPERATING ACTIVITIES 25,580 21,026 -------------- -------------- CASH FLOW FROM INVESTING ACTIVITIES Purchase of property, plant and equipment (21,561) (18,503) Proceeds from sale of property, plant and equipment 3,461 674 Interest received 104 336 Cash inflow from movements in current asset investments - 1,012 Acquisition of subsidiaries (89,645) - -------------- -------------- NET CASH FLOW FROM INVESTING ACTIVITIES (107,641) (16,481) -------------- -------------- CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of share capital 178 413 Purchase of own shares (1,864) (2,751) Sale of treasury shares 256 141 Interest paid (3,316) (2,623) Preference dividends paid (120) (120) Equity dividends paid (4,183) (3,956) Increase in bank loans 87,584 - -------------- -------------- NET CASH USED IN FINANCING ACTIVITIES 78,535 (8,896) -------------- -------------- NET MOVEMENT IN CASH AND CASH EQUIVALENTS (3,526) (4,351) Cash and cash equivalents at the start of the year 4,610 8,961 -------------- -------------- CASH AND CASH EQUIVALENTS AT THE YEAR END 1,084 4,610 ============== ============== The presentation of the 2 April 2005 figures have been restated due to the adoption of International Financial Reporting Standards ("IFRS") - see Note 1. STATEMENT OF RECOGNISED INCOME AND EXPENSES 52 weeks to 53 weeks to 1 April 2 April 2006 2005 £000 £000 Reduction in deferred tax liability due to indexation 212 537 Net actuarial losses on pension schemes (991) (1,671) -------------- -------------- Income and expenses recognised directly in equity (779) (1,134) Profit attributable to ordinary shareholders 10,378 11,745 -------------- -------------- TOTAL RECOGNISED INCOME AND EXPENSES FOR THE PERIOD 9,599 10,611 ============== ============== The presentation of the 2 April 2005 figures have been restated due to the adoption of International Financial Reporting Standards ("IFRS") - see Note 1. FULLER SMITH & TURNER P.L.C. NOTES TO THE FINANCIAL STATEMENTS FOR THE 52 WEEKS ENDED 1 APRIL 2006 1. PRELIMINARY STATEMENT The financial information set out below was approved by the Board on 9 June 2006. This statement does not constitute full financial statements as defined by S.240 of the Companies Act 1985. Full financial statements for the year ended 2 April 2005, including an unqualified auditors' report and which do not contain a statement under section 237 (2) or (3) of the Companies Act 1995, have been delivered to the Registrar of Companies. The unaudited financial information in this statement has been prepared in accordance with applicable accounting standards. The accounting policies used have been applied consistently and are described in full in the statutory financial statements for the year ended 1 April 2006, which will be mailed to shareholders on or before Tuesday 27 June 2006 and delivered to the Registrar of Companies. The financial statements will also be available from the Company's registered office: Griffin Brewery, Chiswick, London W4 2QB, and on its website, from that date. This is the first year in which the Group has prepared its financial statements under International Financial Reporting Standards ("IFRS"), and the comparatives have been restated from UK Generally Accepted Accounting Policies ("UK GAAP") to comply with IFRS. The Group published restated IFRS financial statements for 2005, together with the Group's opening IFRS balance sheet as at 28 March 2004, and reconciliations between UK GAAP and IFRS, on its website, on 25 November 2005. On the same day, the Group also published on its website a summary of significant accounting policies under IFRS. Under IFRS, revenue, previously known as turnover, includes only the gross inflows of economic benefits received and receivable by the enterprise on its own account. Amounts collected on behalf of third parties such as excise duty are not economic benefits which flow to the enterprise and do not result in increases in equity. Therefore, they are excluded from revenue. This change does not apply to retailers who buy their goods duty paid and do not have to account to the government for duty. Excise duty has therefore been removed from all revenue except for sales by the Inns division directly to its own retail customers. 2. SEGMENTAL ANALYSIS Fuller's Fuller's Beer 52 weeks to 1 April 2006 Inns Company Unallocated Total £000 £000 £000 £000 Revenue Sales to third parties 111,911 51,285 163,196 Inter-segment sales (18,048) (18,048) ------------------ ------------------ ------------------ ------------------ Segment Revenue 111,911 33,237 145,148 ------------------ ------------------ ------------------ ------------------ Operating profit 18,984 8,445 (5,004) 22,425 Profit on disposal of properties 265 265 Reorganisation costs (470) (975) (1,462) (2,907) Net finance costs (4,473) ------------------ Profit before tax 15,310 ------------------ Assets and Liabilities Segment assets 329,025 42,159 7,684 378,868 Segment liabilities (47,562) (18,872) (156,775) (223,209) Fuller's Fuller's Beer 53 weeks to 2 April 2005 Inns Company Unallocated Total £000 £000 £000 £000 Revenue Sales to third parties 98,651 46,040 144,691 Inter-segment sales (15,199) (15,199) ------------------ ------------------ ------------------ ------------------ Segment Revenue 98,651 30,841 129,492 ------------------ ------------------ ------------------ ------------------ Operating profit 15,871 8,194 (4,379) 19,686 Profit on disposal of properties 232 232 Net finance costs (2,298) ------------------ Profit before tax 17,620 ------------------ Assets and Liabilities Segment assets 187,852 31,210 12,236 231,298 Segment liabilities (21,518) (13,408) (44,089) (79,015) * Unallocated net liabilities represent the net of dividends, debentures, corporation tax, cash at bank and assets held under central management. 3. TAXATION 2006 2005 £000 £000 Tax on profit on ordinary activities Tax charged in the income statement Current income tax: UK Corporation tax: 4,548 5,124 Amounts underprovided in previous years 63 5 ------------ ------------ Total current income tax 4,611 5,129 ------------ ------------ Deferred tax: Origination and reversal of timing differences 321 626 ------------ ------------ Total deferred tax 321 626 ------------ ------------ Total tax charged in the income statement 4,932 5,755 ------------ ------------ Tax relating to items credited to equity: Deferred tax Reduction in deferred tax liability due to indexation (212) (537) Actuarial losses on pension schemes (425) (715) ------------ ------------ Tax credit in the statement of recognised income and expense (637) (1,252) ------------ ------------ Reconciliation of the total tax charge the UK of 30% (2005 - 30%). The differences are reconciled below: 2006 2005 £000 £000 Profit from continuing operations before taxation 15,310 17,620 Accounting profit multiplied by the UK standard rate of corporation tax of 30% 4,593 5,286 Expenses not deductible for tax purposes 729 421 Tax underprovided in previous years 63 5 Other (453) 43 ------------ ------------ Tax expense reported in the income statement 4,932 5,755 ------------ ------------ 4. EARNINGS PER SHARE 2006 2005 £000 £000 Profit attributable to equity shareholders 10,378 11,745 IFRS adjustments net of tax 427 323 Reorganisation costs net of tax 2,035 - Profit on disposal of properties net of tax (185) (162) ------------ ------------ Adjusted earnings attributable to equity shareholders 12,655 11,906 ------------ ------------ Number Number Weighted average share capital 22,365,000 22,411,000 Dilutive outstanding options 250,000 202,000 ------------ ------------ Adjusted weighted average share capital 22,615,000 22,613,000 ------------ ------------ £1 'A' ordinary shares or unquoted £1 'C' ordinary shares Pence Pence Basic earnings per share 46.40 52.41 Diluted earnings per share 45.89 51.94 Adjusted earnings per share 56.58 53.13 Unquoted 10p 'B' ordinary shares Pence Pence Basic earnings per share 4.64 5.24 Diluted earnings per share 4.59 5.19 Adjusted earnings per share 5.66 5.31 The earnings per share calculation is based on earnings from continuing total operations (after deducting preference dividends) and on the weighted average ordinary share capital. Adjusted earnings per share are calculated on a pre IFRS basis and exclude exceptional gains and losses so that they are on a comparable basis to those reported last year and on the same weighted average ordinary share capital as for the basic earnings per share. 5. DIVIDENDS PAID AND PROPOSED 52 weeks to 53 weeks to 1 April 2 April 2006 2005 £000 £000 Declared and paid during the year: Equity dividends on ordinary shares: Final dividend for 2005: 13.10p (2004: 12.21p) 2,923 2,753 Interim dividend for 2006: 5.63p (2004: 5.36p) 1,260 1,203 ------------ ------------ 4,183 3,956 ------------ ------------ Dividends on cumulative preference shares 120 120 ------------ ------------ Dividends paid 4,303 4,076 ============ ============ Proposed for approval at the AGM: Final dividend for 2006: 14.12p (2005: 13.10p) 3,148 2,923 ============ ============ The pence figures above are for the £1 'A' ordinary shares and unquoted £1 'C' ordinary shares. The unquoted 10p 'B' share carry dividend rights of 1/10 of those applicable to the £1 'A' ordinary shares. Own shares held in the Fuller, Smith & Turner P.L.C. Employee Share Trust 1998 do not qualify for dividends as the trustees have waived their rights. Dividends are also not paid on shares held as treasury shares. 6. RECONCILIATION OF MOVEMENTS IN TOTAL EQUITY 52 weeks to 53 weeks to 1 April 2 April 2006 2005 £000 £000 Opening total equity 152,283 146,986 Adjustments relating to the adoption of IAS 32 & 39 (1,600) - ------------ ------------ Opening equity restated 150,683 146,986 ------------ ------------ Net actuarial loss on pension schemes (991) (1,671) Reversal of deferred tax liability due to indexation 212 537 ------------ ------------ Net losses not recognised in Income Statement (779) (1,134) ------------ ------------ Retained profit for the year 10,378 11,745 Dividends declared and paid (4,183) (3,956) Issue of ordinary share capital 178 413 Cost of share based payments 990 839 Own shares purchased including treasury shares (1,864) (2,751) Shares released including treasury shares 256 141 ------------ ------------ Net other movements in the period 5,755 6,431 ------------ ------------ Closing total equity 155,659 152,283 ============ ============ 7. SHAREHOLDERS' INFORMATION Shareholders who converted their £1 'A' ordinary shares to £1 'C' ordinary shares are reminded that they have 30 days from 9 June 2006 should they wish to reconvert those 'C' shares back to 'A' shares. The next available opportunity after that will be November 2006. For further details please contact the Company's registrars, Computershare on 0870 702 0003. This information is provided by RNS The company news service from the London Stock Exchange

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