3rd Quarter Results
InterContinental Hotels Group PLC
23 November 2004
23 November 2004
InterContinental Hotels Group PLC
Third Quarter and Nine Months Results to 30 September 2004
Third Quarter Nine Months
30 Sept % % 30 Sept % %
30 Sept 2003 change change 30 Sept 2003 change change
2004 proforma (actual (constant 2004 proforma (actual (constant
£m £m currency) currency) £m £m currency) currency)
Hotels
- Turnover 377 387 (2.6)% 3.5% 1,112 1,095 1.6% 6.9%
- EBITDA 113 117 (3.4)% 4.9% 303 269 12.6% 21.3%
- Operating profit 76 76 - 8.2% 189 151 25.2% 35.9%
Soft Drinks
- Turnover 186 182 2.2% 2.2% 552 517 6.8% 6.8%
- EBITDA 39 36 8.3% 8.3% 103 97 6.2% 6.2%
- Operating profit 26 27 (3.7%) (3.7%) 66 66 - -
Group
- Turnover 563 569 (1.1%) 3.0% 1,664 1,612 3.2% 6.9%
- EBITDA 152 153 (0.7%) 5.0% 406 366 10.9% 16.9%
- Operating profit 102 103 (1.0%) 4.9% 255 217 17.5% 25.0%
- Profit before tax 97 93 4.3% 240 185 29.7%
Earnings per share
(pence)
- Basic 11.0 * - 48.0 * -
- Adjusted
10.0 8.1 23.5% 24.0 15.7 52.9%
Note: EBITDA, operating profit, profit before tax and adjusted earnings per
share are stated before exceptional items. Britvic is operating a 53 week year
in 2004 with the additional week falling in the third quarter. Constant currency
stated at 2003 exchange rates
* Not stated as no direct comparables
Strong EPS growth and solid constant currency trading performance:
• Adjusted earnings per share grew by 23.5% in the third quarter and by 52.9%
year to date.
• In constant currency terms, Hotels third quarter turnover was up 3.5% and
operating profit up 8.2%, but the weak dollar adversely affected profit in
sterling terms.
• As highlighted previously, the results are also affected by bonus costs in
the quarter compared to the same quarter last year when bonuses were not
accrued, as well as continuing weakness in certain major Continental
European locations.
• October trading was strong and the full year outlook remains positive and in
line with company expectations.
Ongoing progress on strategy with hotel sales on track, return of funds on schedule
and refinancing of Group debt
• The company is well advanced in the sale process of the Americas hotels and
encouraging progress is also being made on the sale of the other hotels on
the market.
• Special dividend of £500m planned to be paid 17 December 2004.
• New £1.6bn syndicated committed banking facility announced on 11 November
2004 to provide more flexible and certain financing with reduced costs.
Tender offer launched to buy back €600m Eurobond due 2010 and announcement
of the redemption of the remaining £18m sterling bonds due 2007.
Commenting on the results, David Webster, Chairman and Interim Chief Executive,
InterContinental Hotels Group PLC said:
"Earnings per share were well ahead in the third quarter, but trading was mixed
with the Americas and Asia Pacific delivering another solid quarter of growth
whilst Continental Europe experienced weak demand in certain markets. Trading in
October was strong and the outlook for the full year remains positive and in
line with our expectations.
Our asset disposal programme continues to progress well, and we are on track
with returning funds to shareholders and improving the capital structure of the
group. The search for a new CEO is well underway. We remain committed to
executing our strategy and we are delivering on it."
Trading and Operating Overview: strong EPS growth and profit growth in Americas
and Asia Pacific
• Adjusted earnings per share up by 23.5% for the quarter driven by reduced
debt, lower year-on-year tax rate and the ongoing benefit of the share
buyback programme.
• Hotels operating profit in sterling was flat for the quarter, against strong
2003 comparables:
• Americas operating profit up 12% from $75m to $84m, driven by strong
growth in the managed and franchised businesses as a result of strong
RevPAR growth across all brands and the Candlewood brand acquisition.
Sterling operating profit was down 2% from £47m to £46m in the quarter.
• EMEA operating profit down 6% from £36m to £34m, with weak market demand
impacting large owned and leased properties in certain locations such as
Cannes, Frankfurt and Paris. The UK has continued to grow through the
third quarter.
• Asia Pacific operating profit up 80% from $5m to $9m, against a SARS
impacted 2003, with InterContinental Hong Kong gaining market share and
strong RevPAR growth in China.
• Regional and central overheads of £25m, versus £24m in 2003. Full year
total overhead forecast still flat year on year at constant currency.
• As highlighted previously, these results have been impacted by the
phasing of bonus costs in the quarter which were not charged in 2003,
causing a quarter-on-quarter variance of approximately £10m across
regional and central costs.
• Room revenue delivered to IHG's hotels through IHG's reservation channels
was up 19.8% to $1.09bn in the third quarter 2004:
• 37.3% of total rooms revenue delivered through IHG's channels in
the quarter.
• Internet channel revenue growth of 36.2% in the quarter and an increase
in share of web delivery through IHG's own sites to 80%; internet
revenue represented 12.9% of total system revenue for IHG in the
quarter.
• Revenue to IHG's hotels from Priority Club Rewards members was up 12.2% to
$841m in the third quarter 2004:
• 28.1% of room nights booked by Priority Club Rewards members in the
quarter versus 27.6% in the same period in 2003.
• At a gross level, almost 18,000 rooms (4.5% annualised growth) added to
system year-to-date, offset by planned terminations in the US Holiday Inn
estate and disposals, to give net growth of 599 rooms.
• Global pipeline growth of 10.0% from 70,500 rooms at 30 September 2003 to
77,500 at 30 September 2004.
• Previously announced payment of £51m was made into InterContinental Hotels
UK pension fund in October 2004.
• Improvements in key financial metrics, with annual Return on Capital
Employed now up by 1.1% to 5.6% and strong pre-disposal cashflow generation
of £146m in the quarter against £123m in same period of 2003.
Strategic overview: hotel sales on track, return of funds on schedule and
refinancing of group debt
• The company is well advanced in the sale process of the Americas hotels and
encouraging progress is also being made on the sale of the other hotels on
the market.
• Cost savings on track.
• £239m of the initial £250m share buyback announced March 2004 is now
complete, with 43.9m shares repurchased at an average price per share of
£5.44 as of 22 October 2004. Special dividend of £500m planned to be paid 17
December 2004; record date 10 December 2004, as stated in a shareholder
circular issued 16 November 2004.
• New £1.6bn syndicated banking facility announced 11 November 2004, which will
provide flexible committed funding for the medium term with reduced financing
costs. The facility will be used to fund, inter alia, a repurchase of the
€600m Eurobond and the redemption of the outstanding £18m Eurobond due 2007.
Britvic: revenue growth of 2.2% against difficult comparables; continued
investment in the business
• Strong performance in the quarter given the considerably poorer summer
weather experienced in 2004 versus last year. As a result of continued
investment in the business, operating profit was marginally down, at £26m.
During the third quarter, Britvic gained market share.
Current Trading
• RevPAR growth is still predominantly occupancy-led but with some growth
beginning to come from rate as expected at this stage in the recovery.
There has been strong growth in individual corporate traveller
volumes. October results show strong trading and the full year outlook
remains positive and is in line with company expectations.
For further information, please contact:
Investor Relations (Gavin Flynn): +44 (0) 1753 410 176
+44 (0) 7808 098 972
Media affairs (Dee Cayhill/Leslie McGibbon): +44 (0) 1753 410 423
+44 (0) 7808 094 471
Teleconference for Analysts
A teleconference with David Webster (Chairman and Interim Chief Executive) and
Richard Solomons (Finance Director) will commence at 9.00 am (London time) on 23
November. There will be an opportunity to ask questions. The conference call
will conclude at approximately 9.30 am (London time).
To join us for this conference call please dial the relevant number below by
9.00 am (London time).
International dial-in Tel: +44 (0)1452 562717
UK dial-in Tel: 0800 073 8968
US dial-in Tel: 1866 832 0732
A recording of the conference call will be available for 7 days. To access this
please dial the relevant number below and use the access number 2157550#
International dial in Tel: +44 (0)1452 550000
UK dial in Tel: 0845 245 5205
Website
The full release and supplementary data will be available on our website from
7.00 am on 23 November. The web address is www.ihgplc.com/q3
Note to Editors:
InterContinental Hotels Group PLC of the United Kingdom (LON:IHG, NYSE:IHG
(ADRs)) is the world's most global hotel company and the largest by number of
rooms. InterContinental Hotels Group owns, manages, leases or franchises,
through various subsidiaries, more than 3,500 hotels and 536,000 guest rooms in
nearly 100 countries and territories around the world. The Group owns a
portfolio of well recognised and respected hotel brands including
InterContinental(R) Hotels & Resorts, Crowne Plaza(R) Hotels & Resorts, Holiday
Inn(R) Hotels and Resorts, Holiday Inn Express(R), Staybridge Suites(R),
Candlewood Suites(R) and Hotel IndigoTM, and also manages the world's largest
hotel loyalty program, Priority Club(R) Rewards, with more than 23 million
members worldwide. In addition to this, InterContinental Hotels Group has a
controlling interest in Britvic, the second largest soft drinks manufacturer in
the UK.
For the latest news from InterContinental Hotels Group, visit our online Press
Office at www.ihgplc.com/media
Appendix 1: Selected RevPAR performance (comparable, year on year change)
July August Sept Quarter 3 Oct YTD (Jan-Oct)
Americas
IC O&L 11.4% 10.4% 2.9% 7.9% 6.2% 8.9%
CP NA (system) 5.5% 6.6% 8.8% 6.9% 13.1% 7.9%
HI NA (system) 4.7% 0.3% 10.8% 4.9% 6.5% 5.3%
Express NA (system) 5.6% 1.5% 13.6% 6.5% 8.4% 6.9%
EMEA
IC O&L (7.4%) (5.0%) (8.6%) (7.0%) 2.3% (0.2%)
HI UK Regions 4.8% 3.0% 3.8% 3.9% (4.3%) 4.5%
HI UK London 17.5% 11.8% 7.9% 12.3% 8.2% 17.2%
Asia Pacific
IC O&L (v 2003) 53.7% 44.5% 23.0% 37.8% 15.0% 51.8%
IC O&L (v 2002) 25.3% 29.5% 26.9% 27.3% 12.3% 16.3%
Appendix 2: Disposal detail
Total hotels disposed or for sale: 137 hotels, £2.2bn (being net book value plus
proceeds on assets sold)
Sold to date: 30 hotels (4,404 rooms), sale proceeds of £337m
Hotel Rooms
IC MayFair, UK 289
IC Central Park South, USA 208
CP Midland Manchester, UK 303
CP Vanuatu, Vanuatu 140
HI South Bend, USA 229
HI Sheffield West, UK 138
HI Middlesbrough/Teeside, UK 134
HI Gatwick Crawley, UK 217
HI Preston, UK 129
HI Newcastle, Aus 72
HI Adelaide, Aus 193
HI Darwin, Aus 183
Posthouse Epping, UK 79
SBS Houston Galleria, USA 93
SBS San Antonio, USA 118
SBS Myrtle Beach, USA 119
SBS Burlington, USA 141
SBS Columbia, USA 118
SBS Atlanta Perimeter, USA 143
SBS Denver, USA 115
SBS Charlotte, USA 117
SBS Austin, USA 121
SBS Auburn Hills, USA 118
SBS Carmel Mountain, USA 116
SBS Fort Lauderdale, USA 141
SBS Portland, USA 117
SBS Boston, USA 133
SBS Sorrento, USA 131
SBS Alpharetta, USA 118
SBS Eatontown, USA 131
Currently on market: 107 hotels, net book value of £1.9bn; estimated 2004 EBIT
of approximately £95m; EBITDA of £164m:
20 hotels in the Americas, net book value £505m; estimated 2004 EBIT of
approximately £16m; EBITDA of £41m;
Comprising: CP United Nations, New York; IC Miami; IC Chicago; 17 others
12 hotels in EMEA, net book value £256m; estimated 2004 EBIT of approximately
£11m; EBITDA of £17m:
Comprising: IC Paris, IC Edinburgh; 10 others
75 hotels in UK, net book value £1.1bn; estimated 2004 EBIT of approximately
£68m; EBITDA of £106m:
Comprising: HI Mayfair; HI Kensington; major part of UK portfolio
INTERCONTINENTAL HOTELS GROUP PLC
UNAUDITED PROFIT AND LOSS ACCOUNT
For the three and nine months ended 30 September 2004
3 months ended 30 Sept 9 months ended 30 Sept
2004 2004 2003* 2004 2004 2003*
Before Before
exceptional exceptional
items Total Total items Total Total
£m £m £m £m £m £m
Turnover (note 3) 563 563 569 1,664 1,664 1,612
Cost of sales (411) (411) (424) (1,245) (1,245) (1,233)
_____ _____ _____ _____ _____ _____
Gross operating profit 152 152 145 419 419 379
Administrative expenses (50) (50) (42) (164) (164) (162)
_____ _____ _____ _____ _____ _____
Operating profit before
exceptional items (note 4) 102 102 103 255 255 217
Operating exceptional item - (5) - - 1 -
(note 4)
_____ _____ _____ _____ _____ _____
Operating profit (note 4) 102 97 103 255 256 217
Profit on disposal of fixed - - - - 18 -
assets
_____ _____ _____ _____ _____ _____
Profit on ordinary activities
before interest 102 97 103 255 274 217
Net interest payable & similar
charges (5) (5) (10) (15) (9) (32)
_____ _____ _____ _____ _____ _____
Profit on ordinary activities
before taxation 97 92 93 240 265 185
Tax on profit on ordinary
activities (note 8) (17) (5) (23) (43) 104 (46)
_____ _____ _____ _____ _____ _____
Profit on ordinary activities
after taxation 80 87 70 197 369 139
Minority equity interests (10) (10) (11) (24) (24) (24)
_____ _____ _____ _____ _____ _____
Profit available for 70 77 59 173 345 115
shareholders
Dividends on equity shares 1 1 - (29) (29) -
_____ _____ _____ _____ _____ _____
Retained profit for the period 71 78 59 144 316 115
===== ===== ===== ===== ===== =====
Earnings per ordinary share
(note 9):
Pro forma - - 8.1p - - 15.7p
Basic - 11.0p - - 48.0p -
Diluted - 10.8p - - 47.5p -
Adjusted 10.0p - - 24.0p - -
===== ==== ===== ===== ==== =====
* Pro forma information (see note 1).
INTERCONTINENTAL HOTELS GROUP PLC
UNAUDITED CASH FLOW STATEMENT
For the three and nine months ended 30 September 2004
2004 2003* 2004 2003*
3 months 3 months 9 months 9 months
ended 30 Sept ended 30 Sept ended 30 Sept ended 30 Sept
£m £m £m £m
Operating profit before
exceptional items 102 103 255 217
Depreciation and amortisation 50 50 151 149
_____ _____ _____ _____
Earnings before interest,
taxation, depreciation and
amortisation and exceptional
items 152 153 406 366
Decrease in stocks 3 1 2 2
Decrease/(increase) in debtors 47 2 12 (14)
Increase in creditors 8 45 32 90
Provisions expended and other 2 (1) 5 (6)
non-cash items
_____ _____ _____ _____
Operating activities before
expenditure relating to
exceptional items 212 200 457 438
Cost of fundamental
reorganisation (3) - (14) -
_____ _____ _____ _____
Operating activities 209 200 443 438
Capital expenditure - Hotels (50) (61) (120) (193)
Disposal proceeds - Hotels 15 232 103 250
Capital expenditure - Soft Drinks (13) (16) (52) (42)
_____ ____ _____ ____
Operating cash flow
(note 10) 161 355 374 453
===== ==== ===== ====
* Pro forma information (see note 1).
INTERCONTINENTAL HOTELS GROUP PLC
UNAUDITED RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
For the nine months ended 30 September 2004
2004
9 months
ended 30 Sept
£m
Profit available for shareholders 345
Dividends (29)
_____
316
Exchange movement on foreign currency denominated net assets, borrowings and currency
swaps (55)
Issue of ordinary shares 12
Purchase of own shares (228)
Movement in shares in ESOP trusts -
Employee share schemes credit 9
Goodwill - exchange movements 42
_____
Net movement in shareholders' funds 96
Opening shareholders' funds 2,554
_____
Closing shareholders' funds 2,650
=====
INTERCONTINENTAL HOTELS GROUP PLC
GROUP BALANCE SHEET
30 September 2004
Restated*
Unaudited Unaudited Audited
2004 2003 2003
30 Sept 30 Sept 31 Dec
£m £m £m
Intangible assets 147 154 158
Tangible assets 3,830 4,029 3,951
Investments 111 234 172
_____ _____ _____
Fixed assets 4,088 4,417 4,281
_____ _____ _____
Stocks 41 40 44
Debtors 478 479 523
Investments 469 108 377
Cash at bank and in hand 41 91 55
_____ _____ _____
Current assets 1,029 718 999
Creditors - amounts falling due within one year:
Overdrafts (3) (30) (5)
Other borrowings (6) (3) (8)
Other creditors (964) (1,055) (1,072)
_____ _____ _____
Net current assets/(liabilities) 56 (370) (86)
_____ _____ _____
Total assets less current liabilities 4,144 4,047 4,195
Creditors - amounts falling due after one year:
Borrowings (929) (698) (988)
Other creditors (106) (112) (97)
Provisions for liabilities and charges:
Deferred taxation (231) (333) (314)
Other provisions (63) (95) (79)
Minority interests (165) (173) (163)
_____ _____ _____
Net assets (note 12) 2,650 2,636 2,554
===== ===== =====
Equity shareholders' funds 2,650 2,636 2,554
===== ===== =====
* Restated on the adoption of UITF 38 and the reclassification of pension
provisions.
INTERCONTINENTAL HOTELS GROUP PLC
NOTES TO THE UNAUDITED QUARTERLY FINANCIAL STATEMENTS
1. Basis of preparation of pro forma financial information
Following shareholder and regulatory approval, on 15 April 2003, Six
Continents PLC separated into two new groups, InterContinental Hotels
Group PLC (IHG) comprising the Hotels and Soft Drinks businesses, and
Mitchells & Butlers plc comprising the Retail and Standard Commercial
Property Developments businesses. As a result of the Separation, Six
Continents PLC became part of IHG.
The pro forma financial information for the three months and nine months
to 30 September 2003 comprises the results of those companies that form
IHG following the Separation, as if IHG had been in existence since
1 October 2001. The information is provided as guidance only; it is not
audited and, as pro forma information, it does not give a full picture of
the financial position of the Group. The key assumptions used in the
preparation of the information are as follows:
i. The pro forma information has been prepared using accounting policies
consistent with those used in the historic IHG interim and year end
financial statements.
ii. Pro forma interest has been calculated to reflect the post Separation
capital structure of the Group as if it had been in place at 1 October
2001, using interest rate differentials applicable under the post
Separation borrowing agreements and excluding facility fee amortisation.
Dividend payments have been assumed at the expected ongoing level.
iii. The pro forma tax charge is based on a rate of tax for IHG of 25%
applied to pro forma profit before taxation.
iv. Adjustments have been made, where appropriate, to exclude any
arrangements with the Mitchells & Butlers Group.
v. Pro forma earnings per share is based on pro forma profit available for
shareholders divided by 734m shares, being the issued share capital of
IHG on Separation.
vi. The pro forma Profit and Loss account and Cash Flow statement exclude
all exceptional items as being non-recurring.
2. Exchange rates
The results of overseas operations have been translated into sterling at
the weighted average rates of exchange for the period. In the case of
the US dollar, the translation rate for the 3 months ended 30 September
is £1= $1.82 (2003, £1 = $1.62) and for the 9 months ended 30 September
is £1=$1.82 (2003, £1 = $1.61).
Foreign currency denominated assets and liabilities have been translated
into sterling at the rates of exchange on the last day of the period.
In the case of the US dollar, the translation rate is £1=$1.80
(2003 30 September, £1 = $1.67; 31 December, £1 = $1.78).
3. Turnover
2004 2003** 2004 2003**
3 months* 3 months* 9 months*** 9 months***
ended 30 Sept ended 30 Sept ended 30 Sept ended 30 Sept
£m £m £m £m
Hotels
Americas (note 5) 125 133 371 399
EMEA (note 6) 212 217 616 590
Asia Pacific (note 7) 31 28 95 76
Central 9 9 30 30
____ ____ ____ ____
377 387 1,112 1,095
Soft Drinks 186 182 552 517
____ ____ ____ ____
563 569 1,664 1,612
==== ==== ==== ====
* Other than for Soft Drinks which reflects the 13 weeks ended 1 October
(2003 12 weeks ended 27 September).
** Pro forma information (see note 1).
*** Other than for Soft Drinks which reflects the 41 weeks ended 1 October
(2003 40 weeks ended 27 September).
4. Operating profit
2004 2003** 2004 2003**
3 months* 3 months* 9 months*** 9 months***
ended 30 Sept ended 30 Sept ended 30 Sept ended 30 Sept
£m £m £m £m
Hotels
Americas (note 5) 46 47 126 129
EMEA (note 6) 34 36 84 68
Asia Pacific (note 7) 5 3 14 4
Central (9) (10) (35) (50)
____ ____ ____ ____
76 76 189 151
Soft Drinks 26 27 66 66
____ ____ ____ ____
Operating profit before
exceptional item
102 103 255 217
Operating exceptional
item****
(5) - 1 -
____ ____ ____ ____
Operating profit 97 103 256 217
==== ==== ==== ====
* Other than for Soft Drinks which reflects the 13 weeks ended 1 October
(2003 12 weeks ended 27 September).
** Pro forma information (see note 1).
*** Other than for Soft Drinks which reflects the 41 weeks ended 1 October
(2003 40 weeks ended 27 September).
**** Adjustment to market valuation of the Group's investment in FelCor
Lodging Trust Inc.
5. Americas
2004 2003* 2004 2003*
3 months 3 months 9 months 9 months
ended 30 Sept ended 30 Sept ended 30 Sept ended 30 Sept
$m $m $m $m
Turnover
Owned & Leased 113 112 361 358
Managed 14 11 41 33
Franchised 99 91 272 253
___ ___ ___ ___
Total $m 226 214 674 644
=== === === ===
Sterling equivalent £m 125 133 371 399
=== === === ===
Operating profit
Owned & Leased 6 6 28 23
Managed 7 3 11 8
Franchised 86 81 234 217
___ ___ ___ ___
99 90 273 248
Regional overheads (15) (15) (44) (42)
___ ___ ___ ___
Total $m 84 75 229 206
=== === === ===
Sterling equivalent £m 46 47 126 129
=== === === ===
* Pro forma information (see note 1).
6. EMEA
2004 2003* 2004 2003*
3 months 3 months 9 months 9 months
ended 30 Sept ended 30 Sept ended 30 Sept ended 30 Sept
£m £m £m £m
Turnover
Owned & Leased 195 201 562 546
Managed 9 11 33 27
Franchised 8 5 21 17
___ ___ ___ ___
212 217 616 590
=== === === ===
Operating profit
Owned & Leased 29 31 67 61
Managed 4 4 19 12
Franchised 7 4 16 12
___ ___ ___ ___
40 39 102 85
Regional overheads (6) (3) (18) (17)
___ ___ ___ ___
34 36 84 68
=== === === ===
* Pro forma information (see note 1).
7. Asia Pacific
2004 2003* 2004 2003*
3 months 3 months 9 months 9 months
ended 30 Sept ended 30 Sept ended 30 Sept ended 30 Sept
$m $m $m $m
Turnover
Owned & Leased 46 37 142 103
Managed 9 7 26 17
Franchised 1 1 4 3
___ ___ ___ ___
Total $m 56 45 172 123
=== === === ===
Sterling equivalent £m 31 28 95 76
=== === === ===
Operating profit
Owned & Leased 6 3 19 9
Managed 7 5 19 9
Franchised 1 1 3 3
___ ___ ___ ___
14 9 41 21
Regional overheads (5) (4) (15) (13)
___ ___ ___ ___
Total $m 9 5 26 8
=== === === ===
Sterling equivalent £m 5 3 14 4
=== === === ===
* Pro forma information (see note 1).
8. Tax
Tax on profit on ordinary activities has been calculated using an
estimated effective annual tax rate of 18% for 2004.
The exceptional tax credit for the nine months to 30 September 2004
comprises a charge of £3m (3 months to 30 September 2004, nil) on
exceptional items together with a credit of £150m (3 months to
30 September 2004, £12m) which represents the release of prior year
tax provisions and the recognition of a deferred tax asset in respect
of capital losses.
9. Earnings per share
Basic earnings per ordinary share is calculated by dividing the profit
available for shareholders for the three months to 30 September 2004
of £77m (9 months to 30 September 2004, £345m) by 703m (9 months to 30
September 2004, 719m), being the weighted average number of ordinary
shares, excluding investment in own shares, in issue during the period.
Diluted earnings per ordinary share is calculated by adjusting basic
earnings per ordinary share to reflect the notional exercise of the
weighted average number of dilutive ordinary share options
outstanding during the period. The resulting weighted average
number of ordinary shares for the three months to 30 September 2004
is 712m (9 months to 30 September 2004, 727m).
Adjusted earnings per ordinary share is calculated as follows:
2004 2004
3 months 9 months
ended 30 Sept ended 30 Sept
pence per pence per
ordinary ordinary
share share
Basic earnings 11.0 48.0
Exceptional items, less tax thereon 0.7 (3.1)
Exceptional tax (1.7) (20.9)
____ ____
Adjusted earnings 10.0 24.0
==== ====
Adjusted earnings per ordinary share is disclosed in order to show
performance undistorted by exceptional items.
10. Operating cash flow
2004 2003* 2004 2003*
3 months 3 months 9 months 9 months
ended 30 Sept ended 30 Sept ended 30 Sept ended 30 Sept
£m £m £m £m
Hotels 100 305 292 364
Soft Drinks 61 50 82 89
____ ____ ____ ____
161 355 374 453
==== ==== ==== ====
* Pro forma information (see note 1).
11. Net debt
2004 2003 2003
30 Sept 30 Sept 31 Dec
£m £m £m
Cash at bank and in hand 41 91 55
Overdrafts (3) (30) (5)
Current asset investments 406 108 377
Other borrowings:
Due within one year (6) (3) (8)
Due after one year (929) (698) (988)
____ ____ ____
(491) (532) (569)
==== ==== ====
12. Net assets Restated*
2004 2003 2003
30 Sept 30 Sept 31 Dec
£m £m £m
Hotels 3,584 3,897 3,738
Soft Drinks 284 266 300
____ ____ ____
3,868 4,163 4,038
Net debt (491) (532) (569)
Other net non-operating liabilities (727) (995) (915)
____ ____ ____
2,650 2,636 2,554
==== ==== ====
* Restated on the adoption of UITF 38.
This information is provided by RNS
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