Interim Results
McBride PLC
15 February 2002
15 February 2002
McBride plc
Interim results for the six months ended 31 December 2001
McBride is Europe's leading supplier of household and personal care retailer
brand products.
Highlights
• Sterling reported sales of £239.6 million (2000: £232.4 million) up
3.1% on continuing businesses
• Strong sales growth in Continental Europe, which now account for 50.3%
of total sales
• Operating profit before goodwill amortisation and share of joint
venture up 35% on a continuing basis at £12.4 million (2000: £9.2 million)
• Profit before taxation, goodwill amortisation and share of the joint
venture £10.0 million (2000: £7.0 million)
• Earnings per share up 57% to 3.3p (2000: 2.1p restated) before share
of joint venture and goodwill amortisation
• Given the improvement in profitability and confidence in the remainder
of the year, the Board has reinstated an interim dividend of 0.7 pence
per share (2000: nil)
• Net Debt further reduced to £89.8 million (2000: £123.6 million)
• Negotiations ongoing concerning APL
Commenting on the results, Mike Handley, Chief Executive said:
'The continuing business has experienced good profit growth as sales in
Continental Europe continue to grow strongly. Cash generation has been
satisfactory and Group wide cost management initiatives have resulted in
improved margins.
We announced on 9 November 2001 that discussions regarding potential offers for
the Group had terminated. The Board now intends to focus on the two core
businesses of Household and Personal Care. The overall start to the year is
promising, and the Board is confident of maintaining progress for the second
half of the year.
Negotiations are continuing with our joint venture partners concerning the
timing and amount for the 'put and call' arrangement relating to the 50%
shareholding of Aerosol Products Limited (APL) and assumption of the debt in
APL. It is anticipated that these negotiations will conclude during the second
half of the year. The likely result is that the Company will take a substantial
one-off goodwill write-off.'
For further information please contact:
McBride plc
Mike Handley, Chief Executive 020 7831 3113 (on 15 February 2002)
Miles Roberts, Finance Director 01494 60 70 50
Financial Dynamics
Andrew Dowler 020 7831 3113
Fiona Meiklejohn
INTERIM REVIEW
In the first six months of the financial year McBride's sales were £239.6
million, an increase of 3.1% on the continuing business compared with the first
half of the previous year. In its core private label product sectors, McBride's
underlying growth was 2.1%, the difference reflecting a significant growth in
contract manufacturing.
Volume growth was especially good in Continental Europe and particularly France
where retailers gained market share and are promoting Private Label.
Significant growth was also generated in Eastern Europe and internationally
where McBride continues to gain new contracts.
In the last quarter to December 2001, the share held by private label in the UK
household market grew by a full 2% points in value terms. Gains were made in
all sectors, with machine dishwash products gaining 4.2% points to reach 42% of
the market and toilet care products increasing 4.6% points to a 39.5% share.
McBride continues to be at the forefront of technical developments in the
laundry sector with the recently launched private label liquid sachets doubling
their share of this new format for liquid laundry detergents.
The materials price cycle has stabilised bringing a stop to the severe adverse
movements recently experienced. Future risk to price movements is being managed
through the creation of a central purchasing team and the creation of substitute
formulations for our products. In addition, the Company continues to monitor
its exposure to the currency movements that affect raw material prices, in
particular the US Dollar and Euro.
Group operating profit before goodwill amortisation and the contribution from
the Aerosol Products Limited joint venture was £12.4 million compared with £9.2
million in the previous half year for ongoing business that excludes Wrafton
Laboratories sold in June 2001. The improvement in profitability is due to a
combination of higher sales volumes and improvements made to manufacturing
operating efficiencies. The Directors continue to review the operational
efficiencies for each site, and as a result of these reviews, a number of
redundancies have been made, mainly in the UK. Following the half-year end, the
decision was taken to make 71 positions redundant at our plant in Barrow. The
cost of this restructuring, reflected in the second half, should be more than
offset by efficiencies over the same period.
Given the improvement in profitability and confidence in trading for the
remainder of the year, the Board has reinstated an interim dividend of 0.7 pence
per share. As announced on 9th November 2001 discussions regarding potential
offers for the Group have terminated. The Directors are focusing their efforts
to improve shareholder value in terms of the profitability and cash generation
of the Group.
The six months to December saw our European business manage the transition to
invoicing in Euros. The change was a complex and time consuming process
involving the production of new customer price lists for all products, with
agreements as to the number of decimal places used and on the rounding by
individual product. Due to the preparation work undertaken by our European
management, we were able to deal with this change without any adverse service
level effect to our customers or financial effect to the Group.
United Kingdom
While sales volumes remained static, sales value declined 1.8% to £119.1 million
compared with £121.3 million in the first half of last year, excluding Wrafton
Laboratories sold in June 2001. The reduction in sales value is the result of
price pressure from imports and the continuing aggressive price reduction and
promotional activity between the grocery retailers. In the household products
sector, core sales fell 4.9%, while in personal care core sales were stable.
In the UK, the share held by private label in the UK household market increased
from 21.6 % in October to 23.6% at the end of December. One of the strongest
performing private label sectors was machine dish wash tablets, which increased
5% to reach a 30% share of this growth sector. McBride's investment in new
high-speed tablet machines and the introduction of new 3 in 1 tablets has
contributed to this sector's growth.
In the UK personal care market, private label's share of the sector recorded
growth in its share for the first time in over 2 years. In private label, the
performance of aerosol deodorants, body sprays, liquid soaps and shower gels
were particularly strong.
Despite the reduction in sales, the operating profit in the UK, before goodwill
amortisation and share of the Aerosol Products Limited joint venture, increased
19% to £7.0 million compared with £5.9 million in the first half of the previous
year. Margins in both household and personal care products were improved by
keeping overheads under constant review to maintain our competitive cost-base.
Our position as the leading supplier for private label in retailers remains
strong due to the Company's excellent reputation for service delivery and
speed-to-market for new products.
Continental Europe
Sales in Continental Europe were £120.5 million compared with £111.1 million in
the first half of the previous year. In the household sector sales grew 3.5%,
underpinned by good sales growth in France and Belgium where the private label
market continues to improve, reinforced by the excellent service delivery that
the Company provides. Personal care sales grew 15.3%, through a combination of
substantial growth in the established markets of Western Europe and more
significant growth from expansion managed through our Poland business into the
emerging private label markets of Eastern Europe. The Group's relationships
with many of the Western European retailers, who are investing heavily in these
countries, are now generating a satisfactory level of sales growth. McBride are
well placed to take advantage of this opportunity due to our low-cost base
manufacturing, particularly in Poland. Tablets and concentrates continue to
stand out in all countries as the main growth feature. In Poland and other
Central and Eastern Europe (CEE) countries the market is, however, still at an
early stage of development.
Operating profit before goodwill amortisation was £5.4 million compared with
£3.3 million in the first half last year. As a direct result of the margin
pressure experienced in the Continental Europe business from higher raw
material, fuel and transport costs, price increases were negotiated across most
customers and product ranges through the first half of last calendar year,
despite the continuing intense competition.
Joint Venture
The Aerosol Products Limited (APL) joint venture with Nichol Beauty Products
Limited (NBPL) continued its focus on improving its level of customer service.
However, the level of sales was again lower than expected in terms of both sales
volume and value. McBride's share of this loss was £0.5 million before goodwill
amortisation and interest compared to £1.3 million to December 2000. The
directors of McBride continue to review all available options to improve the
performance of APL, in a difficult market with low customer demand and
over-capacity. A further restructuring of the joint venture is currently being
implemented. Our joint venture partner, NBPL has a £12.0 million 'put and call'
option relating to their 50% shareholding in APL. Negotiations are continuing
regarding the timing and amount regarding this arrangement and the assumption of
the debt in APL.
Financial Summary
In the first six months of the financial year the net interest costs for the
Group were £2.4 million compared with £4.5 million for the comparative period of
last year. The fall of £2.1 million was the result of lower borrowings,
following the Wrafton disposal, underlying cash generation and reduced interest
rates. The charge for tax, which amounts to £2.7 million, has been calculated
in accordance with FRS 19 the new mandatory standard for the treatment of
deferred tax, resulting in an effective tax charge of 27%. However, this higher
tax charge has been offset through a combination of improved UK profits and
lower Group dividend to allow the Group to realise a £0.9 million benefit from
part of the £16.4 million remaining Advance Corporation Tax (ACT) previously
paid and written off in 1993. The effect of the ACT benefit is to reduce the
underlying effective rate of tax to 27% which is 2% higher than the rate last
year. This represents the best estimate for the effective rate for the current
financial year.
Capital expenditure in the first half of the year was £6.0 million compared with
£8.7 million for the comparative period last year. The lower level of spend is
a result of the Group's objective to maximise cash generation. However, the
group continues to invest in areas that will generate returns in excess of our
cost of capital and satisfy Health and Safety requirements. The Group
continues to place significant investment in production improvements that have
included the completion of a £1.0 million project to provide additional finished
goods warehousing facilities for the Polish factory completed in early January
2002.
Cash flow from operating activities was £15.4 million compared with £16.0
million in the first half of last year. However, this reflected a one-off £4.0
million purchase of stock from APL. Net debt of £89.8 million at the end of
December 2001 compares favourably with £93.2 million at June 2001 and £123.6
million at December 2000.
Equity shareholders funds at 31 December 2001 increased to £75.5 million
compared with £71.0 (restated) million at June 2001 and £67.6 (restated) million
at December 2000.
Board
Following the resignation of Alan Washkowitz, notified to members at the AGM, it
is the Company's intention to appoint a new independent non-executive director
to the Board and an announcement will be made shortly. The Board will then
comprise three independent non-executive directors and two executive directors.
The Board continues to actively monitor the Company's compliance with Corporate
Governance best practice.
Outlook
Market conditions in both the UK and Continental Europe are challenging. Many
of the measures implemented to date have improved sales volumes or sales
revenues while all costs remain tightly controlled. The success of the second
half will be built upon the excellent customer service levels that have been
maintained throughout the business. In the UK, an increasing level of customer
promotions is already being experienced while in Continental Europe there
continues to be a steady growth in sales across a wide range of products.
Private Label penetration continues to increase across Europe as the retailers
consolidate and are benefiting from value in their own brand name combined with
our excellent quality and service. The first half cost management improvements
are expected to continue in the second half across the Group. All these factors
are expected to deliver a continued improvement in trading performance in the
second half versus the first half of the financial year.
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Note Restated Restated Restated
Unaudited Unaudited Unaudited Unaudited
Continuing Continuing Discontinued Total
6 months to 6 months to 6 months 6 months
31 Dec 2001 31 Dec 2000 to 31 Dec 2000 to 31 Dec 2000
£m £m £m £m
Turnover
Group 248.7 242.2 15.4 257.6
Less: share of joint venture's
turnover (9.1) (9.8) (9.8)
Group Turnover 1 239.6 232.4 15.4 247.8
Cost of sales (150.2) (149.6) (9.0) (158.6)
Gross profit 89.4 82.8 6.4 89.2
Distribution costs (12.9) (12.6) (0.1) (12.7)
Administration expenses
Before goodwill amortisation (64.1) (61.0) (4.0) (65.0)
Goodwill amortisation (0.7) (0.6) (0.4) (1.0)
(64.8) (61.6) (4.4) (66.0)
Group operating profit 11.7 8.6 1.9 10.5
Share of joint venture's operating
loss before goodwill amortisation (0.5) (1.3)
Goodwill amortisation on joint
venture (0.1) (0.2)
Goodwill impairment in joint
venture
Share of joint venture's operating
profit (0.6) (1.5)
Total operating profit 11.1 9.0
Profit on disposal of discontinued
operations
Profit on ordinary activities
before interest 11.1 9.0
Group interest receivable and
similar 0.4 0.1
income
Group interest payable and similar
charges (2.8) (4.6)
Share of joint venture's interest
payable and similar charges (0.5) (0.4)
Profit on ordinary activities
before taxation 8.2 4.1
Tax on profit on ordinary 3 (2.7) (0.1)
activities
Share of joint venture's tax credit
on
ordinary activities 0.4
Profit on ordinary activities after
taxation 5.9 4.0
Equity minority interest (0.1) (0.3)
Profit for the period 5.8 3.7
Dividends proposed (equity) (1.3)
Retained profit for the period 4.5 3.7
Earnings per ordinary share (pence)
(Comparatives restated)
* Basic and diluted 3.3 2.1
* Basic before operating
exceptional, items share of joint
venture and goodwill amortisation 4.1 3.7
Note Restated Restated Restated
Audited Audited Audited Total
Continuing year Discontinued year ended 30
ended 30 June year ended 30 June 2001
2001 June 2001
£m £m £m
Turnover
Group 490.3 26.3 516.6
Less: share of joint venture's
turnover (19.0) (19.0)
Group Turnover 1 471.3 26.3 497.6
Cost of sales (302.2) (14.9) (317.1)
Gross profit 169.1 11.4 180.5
Distribution costs (24.6) (0.3) (24.9)
Administration expenses
Before goodwill amortisation (123.7) (8.0) (131.7)
Goodwill amortisation (1.1) (0.9) (2.0)
(124.8) (8.9) (133.7)
Group operating profit 19.7 2.2 21.9
Share of joint venture's operating
loss before goodwill amortisation (2.5)
Goodwill amortisation on joint
venture (0.4)
Goodwill impairment in joint
venture (2.1)
Share of joint venture's operating
profit (5.0)
Total operating profit 16.9
Profit on disposal of discontinued
operations 2.9
Profit on ordinary activities
before
interest 19.8
Group interest receivable and
similar
income 0.8
Group interest payable and similar
charges (8.3)
Share of joint venture's interest
payable and similar charges (1.0)
Profit on ordinary activities
before taxation 11.3
Tax on profit on ordinary 3 (0.6)
activities
Share of joint venture's tax credit
on ordinary activities 1.3
Profit on ordinary activities after
taxation 12.0
Equity minority interest (0.5)
Profit for the period 11.5
Dividends proposed (equity) (3.6)
Retained profit for the period 7.9
Earnings per ordinary share (pence)
(Comparatives restated)
* Basic and diluted 6.5
* Basic before operating
exceptional
items, share of joint venture and
goodwill amortisation 8.6
CONSOLIDATED BALANCE SHEET
Unaudited Restated Restated
31 Dec 2001 Unaudited Audited
31 Dec 2000 30 June 2001
Note £m £m £m
Fixed assets
Intangible assets 11.5 29.7 11.7
Tangible assets 136.6 153.4 139.3
Investment in joint venture 4.9 7.3 5.0
Total fixed assets 153.0 190.4 156.0
Current assets
Stocks 47.7 58.6 48.6
Debtors 102.4 95.9 98.1
Cash at bank and in hand 1.7 4.1 2.7
151.8 158.6 149.4
Creditors: amounts falling due
within one year (135.8) (145.4) (134.4)
Net current assets 16.0 13.2 15.0
Total assets less current
liabilities 169.0 203.6 171.0
Creditors: amounts falling due
after more than one year (82.6) (124.2) (90.4)
Provisions for liabilities and
charges (2.8) (4.3) (1.9)
Investment in joint venture
Share of gross assets 5.1 7.5 7.7
Share of gross liabilities (13.0) (14.3) (15.0)
Net investment in joint venture (7.9) (6.8) (7.3)
Net assets 75.7 68.3 71.4
Capital reserves
Called up share capital 17.8 17.8 17.8
Share premium account 139.3 139.3 139.3
Profit and loss account 4 (81.6) (89.5) (86.1)
Equity shareholders' funds 75.5 67.6 71.0
Equity minority interest 0.2 0.7 0.4
Net assets 75.7 68.3 71.4
CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited Audited
6 months to 6 months to Year ended
31 Dec 2001 31 Dec 2000 30 June 2001
Note £m £m £m
Net cash flow from operating
activities 6 15.4 16.0 33.5
Returns on investments and
servicing of finance (3.0) (4.8) (7.9)
Taxation (2.1) (1.9) (6.1)
Operating cash flow after
taxation and finance costs 10.3 9.3 19.5
Capital expenditure (6.0) (8.7) (14.2)
Purchase of subsidiary
undertakings - (3.7) (4.8)
Sale of subsidiary undertakings - - 25.7
Deferred consideration
payments - (2.9) (4.4)
Equity dividends paid - (3.6) (3.6)
Cashflow before financing 4.3 (9.6) 18.2
Financing (9.2) 7.3 (22.8)
(Decrease) in cash in the
period (4.9) (2.3) (4.6)
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
Unaudited Unaudited Audited
6 months to 6 months to Year ended
31 Dec 2001 31 Dec 2000 30 June 2001
£m £m £m
(Decrease) in cash in the
period (4.9) (2.3) (4.6)
Cash (inflow)/outflow from
movement in debt and lease
financing 9.2 (7.3) 22.8
Change in net debt resulting
from cash flows 4.3 (9.6) 18.2
Net debt disposed with
subsidiary - - 0.6
Translation differences (0.9) 1.0 3.0
Movement in net debt in the
period 3.4 (8.6) 21.8
Net debt at the beginning of the
period (93.2) (115.0) (115.0)
Net debt at the end of the
period (89.8) (123.6) (93.2)
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Unaudited Unaudited Audited
6 months to 6 months to Year ended
31 Dec 2001 31 Dec 2000 30 June 2001
£m £m £m
Profit for the period 5.8 3.7 11.5
Unrealised foreign currency
differences 0.0 0.6 (0.2)
Total recognised gains for the period 5.8 4.3 11.3
Prior period adjustment (note 4) - (5.0) (5.0)
Total recognised gains and losses 5.8 (0.7) 6.3
RECONCILIATION OF MOVEMENTS IN SHAREHOLDER'S FUNDS
Unaudited Unaudited Audited
6 months to 6 months to Year ended
31 Dec 2001 31 Dec 2000 30 June 2001
£m £m £m
Profit for the financial year 5.8 3.7 11.5
Equity dividends (1.3) 0.0 (3.6)
Retained profit 4.2 3.7 7.9
Unrealised foreign currency
differences - 0.6 (0.2)
Opening equity shareholders' funds 71.0 68.3 68.3
Prior year adjustment in respect of
the adoption of FRS 19 (see note 4) - (5.0) (5.0)
Closing shareholders' funds 75.5 67.6 71.0
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1) Segmental Information
Unaudited Unaudited Audited
6 months to 6 months to Year ended
31 Dec 2001 31 Dec 2000 30 June 2001
£m £m £m
Turnover by destination is analysed by
geographical area as follows:
Continuing operations
UK 116.6 119.6 238.3
Continental Europe 120.9 110.4 228.9
Rest of world 2.1 2.4 4.1
Group turnover 239.6 232.4 471.3
Share of joint venture's turnover 9.1 9.8 19.0
Turnover: Group and share of joint
venture 248.7 242.2 490.3
Discontinued operations
UK - 15.4 26.3
Turnover by destination 248.7 257.6 516.6
Turnover by geographical origin is
analysed as follows:
Continuing operations
UK 119.1 121.3 243.4
Continental Europe 120.5 111.1 227.9
Group turnover 239.6 232.4 471.3
Share of joint venture's turnover 9.1 9.8 19.0
Turnover: Group and share of joint
venture 248.7 242.2 490.3
Discontinued operations
UK - 15.4 26.3
Turnover by origin 248.7 257.6 516.6
Turnover by class of business is
analysed as follows:
Continuing operations
Household products 204.6 199.3 404.5
Personal care products 35.0 33.1 66.8
Group turnover 239.6 232.4 471.3
Share of joint venture's turnover 9.1 9.8 19.0
Turnover: Group and share of joint
venture 248.7 242.2 490.3
Discontinued operations
Pharmaceuticals - 15.4 26.3
Total turnover by class of business 248.7 257.6 516.6
Operating profit by geographical
origin is analysed as follows:
Continuing operations
UK 6.4 5.4 13.3
Continental Europe 5.3 3.2 6.4
Operating profit 11.7 8.6 19.7
Discontinued operations
UK - 1.9 2.2
Group operating profit 11.7 10.5 21.9
Non operating items (1.1) (1.9) (3.1)
Net interest payable (2.4) (4.5) (7.5)
Profit on ordinary activities before 8.2 4.1 11.3
tax
Operating profit by class of business
is
analysed as follows:
Continuing operations
Household products 9.5 8.2 17.5
Personal care products 2.2 0.4 2.2
Operating profit 11.7 8.6 19.7
Discontinued operations
Pharmaceuticals - 1.9 2.2
Group operating profit 11.7 10.5 21.9
Non operating items (1.1) (1.9) (3.1)
Net interest payable (2.4) (4.5) (7.5)
Profit on ordinary activities before 8.2 4.1 11.3
tax
2) Unaudited half year results
The results for the half year ended 31 December 2001 and 31 December 2000 are
unaudited and have been prepared on the basis of accounting policies set out in
the Report and Accounts for the year ended 30 June 2001 except for the adoption
of FRS 19 - Deferred Tax. The comparative figures for the year ended 30 June
2001 do not constitute statutory accounts. Those accounts have been reported on
by the Company's auditors and delivered to the Registrar of Companies. The
report of the auditors thereon was unqualified and did not contain a statement
under section 237(2) or (3) of the Companies Act 1985.
3) Tax on profit on ordinary activities
The charge for the period is based on the profit for the period and takes into
account taxation deferred due to timing differences between the treatment of
certain items for taxation and accounting purposes. As indicated in the annual
accounts to 30 June 2001, the basis upon which the Group provide for deferred
tax will change in the 2002 financial statements as a result of Financial
Reporting Standard - 19 Deferred Tax (FRS 19). The Group have adopted the full
provisioning basis for deferred tax as required by the Standard replacing the
partial provisioning basis specified under SSAP 15 now withdrawn. The effect of
adopting FRS 19 is to require a provision for deferred tax of £2.4 million as at
31 December 2001. However, an offset for ACT recoverable in future years is
allowed.
As the provision that would have been required in prior periods, had FRS 19
applied, is materially different from the provision recorded under SSAP 15, a
prior year adjustment is required.
Unaudited Restated Restated
6 months to Unaudited Audited
31 Dec 2001 6 months to Year ended
31 Dec 2000 30 June 2001
£m £m £m
Tax on profit on ordinary activities comprise:
Corporation tax (3.6) (1.7) (4.1)
Prior year adjustment - FRS 19 Deferred tax - 1.6 3.5
release
ACT recoverable 0.9 - -
Tax on profit on ordinary activities (2.7) (0.1) (0.6)
In compliance with SSAP 15, the Company had not previously made full provision
for deferred tax.
4) Profit and loss account
Unaudited Unaudited Audited
6 months to 6 months to Year ended
31 Dec 2001 31 Dec 2000 30 June 2001
£m £m £m
Goodwill reserve (146.4) (146.4) (146.4)
Profit and loss account as previously reported 60.3 61.8
Prior year adjustment in respect of the adoption
of FRS 19 (see note 3) (5.0) (5.0)
Prior year adjustment - FRS 19 Deferred tax 1.6 3.5
release
Prior year adjustment - closing Deferred tax
provision (3.4) (1.5)
Profit and loss account brought forward as 64.8 56.9 60.3
restated
(81.6) (89.5) (86.1)
5) Earnings per ordinary share
Earnings per ordinary share is calculated on profit after tax in accordance with
FRS 14. The calculation of earnings per ordinary share for all the periods
disclosed is based on a weighted average of 177,639,197 ordinary shares of 10
pence each.
6) Reconciliation of operating profit to operating cash flow
Unaudited Unaudited Audited
6 months to 6 months to Year ended
31 Dec 2001 31 Dec 2000 30 June 2001
£m £m £m
Group operating profit 11.7 10.5 21.9
Depreciation 9.2 9.0 18.0
Goodwill amortisation 0.7 1.0 2.0
Loss on disposal of fixed assets - - 0.4
Movement in stocks 1.3 0.1 5.9
Movement in debtors (3.6) 1.7 0.6
Movement in creditors (3.9) (6.3) (15.3)
Cash flow from operating activities 15.4 16.0 33.5
7) Contingent liabilities
Under the terms of an agreement dated 5th October 1999 between Robert McBride
Ltd and Nichol Beauty Products Ltd (Nichol), there is a put and call arrangement
relating to the 50% shareholding of Aerosol Products Limited (APL) owned by
Nichol. The agreement gives Nichol the right to 'put' their shareholding in APL
onto Robert McBride Ltd for a consideration of £12 million on or after 5th
October 2001. However, Robert McBride Ltd has claims against Nichol in
connection with the transfer of assets and liabilities into the APL joint
venture and in connection with the purchase from Nichol of its liquids business
which took place at the time of the formation of the APL joint venture. The
quantum of such claims is being investigated and the Directors of McBride plc
intend insofar as possible to use the existence of such claims to offset the
payment due under the put option. Negotiations continue with our joint venture
partners. It is anticipated they will be resolved in the second half of the
financial year.
FINANCIAL CALENDER FOR THE YEAR ENDING 30 JUNE 2002
Dividends
Interim Announcement 15 February 2002
Payment 4 July 2002
Final Announcement September 2002
Payment January 2003
Results
Interim Announcement 15 February 2002
Preliminary statement for
full year Announcement September 2002
Report and Accounts Circulated September 2002
Annual General Meeting To be held December 2002
EXCHANGE RATES
The exchange rates used for conversion to sterling were as follows:
Unaudited Unaudited Audited
6 months to 6 months to Year ended
31 Dec 2001 31 Dec 2000 30 June 2001
£m £m £m
Average rate:
Euro 1.61 1.63 1.63
Belgium Franc 65.08 65.81 65.63
French Franc 10.58 10.70 10.67
Italian Lira 3,124 3,159 3,150
Spanish Peseta 268.4 271.5 270.7
Dutch Guilder 3.56 3.60 3.59
Polish Zloty 5.98 6.54 6.16
Czech Koruna 54.13 58.87 56.69
Hungarian Forint 405.9 430.2 426.2
Closing rate:
Euro 1.63 1.59 1.66
Belgian Franc 65.94 64.18 67.02
French Franc 10.72 10.44 10.90
Italian Lira 3,165 3,081 3,217
Spanish Peseta 272.0 264.7 276.4
Dutch Guilda 3.60 3.51 3.66
Polish Zloty 5.75 6.17 5.64
Czech Koruna 51.75 56.16 56.22
Hungarian Forint 399.9 421.2 404.8
INDEPENDENT REVIEW REPORT BY KPMG AUDIT PLC TO MCBRIDE PLC
Introduction
We have been instructed by the company to review the financial information for
the six months ended 31 December 2001 which comprises Profit and Loss account,
Balance Sheet, Cash flow statement, Statement of Total Recognised Gains and
Losses and notes 1 to 7. We have read the other information contained in the
interim report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom Auditing Standards and therefore
provides a lower level of assurance than an audit. Accordingly, we do not
express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 December 2001.
KPMG Audit Plc
Chartered Accountants
15th February 2002
8 Salisbury Square
London
EC4Y 8BB
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