Interim Results
Smith (DS) PLC
08 December 2004
8 December 2004
DS Smith Plc - 2004/05 Interim Results
DS Smith Plc (LSE:SMDS), the international packaging manufacturer and office
products wholesaler, announces its results for the six months to 31 October
2004.
HIGHLIGHTS
• Operating profit(1): £40.2m (H1 2003/04: £43.5m)
• Profit before tax(1): £34.9m (H1 2003/04: £39.3m)
• Earnings per share(2): 6.8p (H1 2003/04: 8.2p)
• Further progress in Corrugated Packaging partly offset a weaker Paper
result
• Linpac Containers acquisition contributed operating profit of £6.8m(1)
(H1 2003/04: £ nil)
• Pension charge reduced operating profit by £8.0m (H1 2003/04: £ nil)
• Cash inflow before dividends and acquisitions: £26.0m (H1 2003/04:
inflow of £18.0m)
• Gearing: 50.2 % (end of 2003/04: 49.1%)
• Interim dividend unchanged at 2.6p(3)
• Results after amortisation of intangibles: profit before tax £30.2m (H1
2003/04: £38.0m); earnings per share 5.6p (H1 2003/04: 7.8p(3))
(1) before amortisation of intangibles but including the pension charge of
£8.0m in H1 2004/05
(2) before amortisation of intangibles and restated for the bonus element of
the rights issue
(3) restated for the bonus element of the rights issue
Commenting on the half year results, Chairman, Antony Hichens said:
'We have made good progress in our existing Corrugated Packaging businesses and
benefited from the contribution from Linpac Containers, the acquisition of which
was cleared by the Competition Commission in October. This partly offset weaker
results in Paper, which were due to highly competitive trading conditions and
increased input costs, together with a significant charge in respect of the UK
pension scheme pending the completion of the triennial valuation. A strong cash
performance maintained our healthy balance sheet.
'Trading conditions remain challenging. There is a strong focus, particularly
in our UK operations, on raising returns through driving profitable sales and
continuing to reduce costs. Our Paper and Plastic Packaging operations are
taking steps to mitigate the effects of higher energy and polymer costs
respectively. We are proceeding rapidly to generate the expected substantial
synergies from the integration of the Linpac Containers business. The Board is
confident of delivering solid results for the full year and is recommending an
unchanged interim dividend.'
Enquiries
DS Smith Plc 020 7932 5000
Tony Thorne, Group Chief Executive
Gavin Morris, Group Finance Director
Peter Aubusson, Group Communications Manager
Financial Dynamics 020 7269 7291
Richard Mountain/Robert Gurner
OVERVIEW
Group turnover for the half year to 31 October 2004 increased to £800.1 million
(H1 2003/04: £744.7 million) and operating profit before amortisation of
intangibles was £40.2 million (H1 2003/04: £43.5million). The Linpac Containers
business, acquired in March 2004, contributed £78.4 million (H1 2003/04: £nil)
of sales and £6.8 million (H1 2003/04: £nil) of operating profit. Group
operating margin before amortisation of intangibles was 5.0% (H1 2003/04: 5.8%)
while return on average capital employed for the six months was 8.6% (H1 2003/
04: 11.0%).
As previously indicated, there is, for the first time for many years, a charge
to the Group's profit and loss account in respect of the Group's UK defined
benefit pension scheme. The triennial valuation of the scheme as at 5 April
2004 is due to be concluded shortly and the charge of £8.0 million made under
SSAP 24 for the first half of 2004/05 reflects the Board's current expectation
of an annual charge of approximately £16 million.
Profit before tax and amortisation of intangibles was £34.9 million (H1 2003/04:
£39.3 million) and earnings per share before amortisation of intangibles were
6.8 pence (H1 2003/04: 8.2 pence restated for the rights issue).
The tax charge is 24.6% of profit before tax and amortisation of intangibles,
and benefited from a prior year adjustment of £4.3 million following the
agreement of certain matters with overseas tax authorities. This is a one-off
benefit for 2004/05 and, as previously stated, we anticipate that our tax rate
will be approximately 31% of profit before tax and amortisation of intangibles
from 2005/06.
A strong cash inflow before dividends and acquisitions of £26.0 million (H1 2003
/04: £18.0 million) enabled the Group to maintain a healthy balance sheet. Net
borrowings were £287.4 million at the end of first half 2004/05 (end of 2003/04:
£274.7 million) resulting in gearing of 50.2% (end of 2003/04: 49.1%). Interest
cover before amortisation of intangibles remained strong at 6.1 times.
INTERIM DIVIDEND
The Board announces an interim dividend of 2.6 pence per share, which is
unchanged from the previous year's interim dividend, as restated for the rights
issue. It will be paid on 8 March 2005 to ordinary shareholders on the register
at the close of business on 4 February 2005.
OPERATING REVIEW
Paper and Corrugated Packaging
Half year ended Half year ended 31
31 October 2004 October 2003
Turnover £444.2m £376.4m
Operating profit* £27.9m £27.7m
Operating margin* 6.3% 7.4%
Return on average capital employed* 8.3% 10.7%
* before amortisation of intangibles; including a pension charge in 2004
A strong performance from the Group's existing Corrugated Packaging operations
and a £6.8 million (H1 2003/04: £nil) contribution from the Linpac Containers
business, broadly offset a significant reduction in profits from Paper and a
pension charge for the segment of £5.2 million (H1 2003/04: £nil).
Paper
Our French paper business, which principally manufactures solid board, performed
satisfactorily. However, our UK paper business, St Regis, experienced extremely
difficult trading conditions in its main product, corrugated case material
(CCM), with prices continuing to be depressed by sluggish total market demand,
compounded by excess capacity in Europe.
St Regis' margins were further squeezed by substantial increases in gas costs,
the relatively high cost of our raw material, recovered paper, as a result of
strong global demand, and the continuing weak prices of Packaging Recovery
Notes.
St Regis continues to take action to mitigate the effects of the trading
conditions: productivity has been improved and the sales mix strengthened by
increasing the proportion of domestic sales and of higher added-value products.
Severnside Recycling continued to develop its infrastructure with the
acquisition and integration of the five recovered paper collection depots of BPB
Recycling.
There have recently been CCM price increases in continental Europe; the outlook
for UK prices will depend upon the strength of market demand as we enter the new
calendar year.
Corrugated Packaging
The total market for corrugated board in Europe strengthened slightly in the
first nine months of calendar year 2004, with demand increasing by 0.1% in the
UK and 2.4% in Europe as a whole, although the French market was down 0.4%*.
Demand growth continued to be strong in Poland and Turkey.
Our UK Corrugated Packaging operations continued to advance due to some increase
in prices, raised efficiency, and their focus on higher added value or growing
market segments.
The French and Italian corrugated operations were affected by weaker demand in
their local markets, particularly in the second quarter of the financial year.
The Polish business continued to grow its sales and profits strongly and work is
progressing on its new factory, scheduled to open in late 2005. In Turkey, we
made considerable further progress and recorded a profit for the half year.
The Linpac Containers business performed in line with our expectations. The
referral of the acquisition to the Competition Commission meant that we could
not begin the process of generating the expected synergies. On 21 October 2004,
the Competition Commission cleared the acquisition, having concluded that it
would not lead to a substantial lessening of competition in the market.
We are now able to derive the full benefits of having Linpac Containers within
the Group. The acquisition has improved our market position in Corrugated
Packaging by broadening our customer base. It has also strengthened the Group's
position as a major buyer and seller of CCM, enabling our paper business to
achieve a better market mix. The process of integrating the business and
generating the substantial synergies is now progressing rapidly; the merger of
headquarters is advanced and the facilities rationalisation programme is well
underway. Despite the delay in beginning integration of the businesses, we are
confident of generating the expected pre-tax synergies of £14.5 million,
identified at the time of the acquisition. We anticipate achieving around 20%
of the total synergies in 2004/05, at least 75% in 2005/06, with the balance
being generated in the following year. Restructuring charges of approximately
£6 million are expected in the second half of 2004/05 with a further
approximately £2 million in 2005/06.
Plastic Packaging
Half year ended Half year ended
31 October 2004 31 October 2003
Turnover £99.9m £107.6m
Operating profit* £6.1m £7.5m
Operating margin* 6.1% 7.0%
Return on average capital employed* 8.7% 10.5%
* before amortisation of intangibles; including a pension charge in 2004
While underlying profits in our two main sectors of liquid packaging and
dispensing, and returnable transit packaging were broadly flat, the overall
result was negatively affected by a pension charge of £1.0 million (H1 2003/04:
£nil), movements in the values of the US dollar and the euro against sterling,
and poorer results in our smaller businesses. The rapid rise of approximately
25% in polymer costs has increasingly eroded margins and caused some customers
to reduce offtake. We are addressing this by seeking price increases and
reducing costs.
In liquid packaging and dispensing, bag-in-box sales were affected by increased
competitor activity in the European wine market and by slower summer demand from
beverage customers in both Europe and the US. The tap business performed well
following last year's action to strengthen sales and reduce costs.
Sales of industrial returnable transit packaging were particularly affected
towards the end of the half year by some customers deferring replenishment of
products such as crates and layer pads, in the expectation that polymer prices
would not remain at their recent high levels.
The three small speciality businesses that operate in coating and laminating,
modified atmosphere packaging and packaging logistics continued to hold back the
division's overall performance. Actions are being taken to improve the
contribution of these businesses to the Group.
Office Products Wholesaling
Half year ended Half year ended
31 October 2004 31 October 2003
Turnover £240.0m £244.4m
Operating profit* £6.7m £7.2m
Operating margin* 2.8% 2.9%
Return on average capital employed* 11.6% 12.2%
* before amortisation of intangibles; including a pension charge in 2004
Spicers' profit was ahead of last year, before a pension charge of £1.1 million
(H1 2003/04: £nil). Consumption of office products across Europe has been
slightly firmer in recent months although prices continue to be under pressure.
Spicers continued to benefit from the programme of operational improvements
started in 2002, while maintaining progress in growing its business in
continental Europe.
In the UK, where the focus has been on developing sales while maintaining high
service levels, turnover grew slightly in the second quarter of the financial
year, being the first quarter in which growth had been recorded for over three
years. The French business performed solidly despite continuing tough market
conditions. Spicers Germany continued to make good progress through increased
focus on improving the quality of the sales mix while further building its
sales. The Spanish business maintained its strong sales growth and Spicers
Italy was launched to plan in November 2004, with encouraging initial sales
following a strong uptake of its catalogue.
Office Products Manufacturing
Half year ended Half year ended
31 October 2004 31 October 2003
Turnover £23.2m £24.4m
Operating (loss)/profit* £(0.5)m £1.1m
Operating margin* (2.2)% 4.5%
Return on average capital employed* (6.9)% 15.1%
* before amortisation of intangibles; including a pension charge in 2004
John Dickinson reported a small underlying profit before a pension charge of
£0.7 million (H1 2003/04: £nil). Trading conditions remained difficult in both
branded products and envelopes although there was a small upturn in demand
during the second quarter of the financial year. Costs have been reduced
further. New product and merchandising initiatives are generating some new
business, which is encouraging in a tough market.
OUTLOOK
Trading conditions remain challenging. There is a strong focus, particularly in
our UK operations, on raising returns through driving profitable sales and
continuing to reduce costs. Our Paper and Plastic Packaging operations are
taking steps to mitigate the effects of higher energy and polymer costs
respectively. We are proceeding rapidly to generate the expected substantial
synergies from the integration of the Linpac Containers business. The Board is
confident of delivering solid results for the full year and is recommending an
unchanged interim dividend.
Group Profit and Loss Account
Half year to Half year to Year to
31 October 31 October 30 April
2004 2003 2004
(unaudited) (unaudited) (audited)
Note £m £m £m
Turnover 3 800.1 744.7 1,488.5
Operating profit
Before amortisation of intangibles 3 40.2 43.5 88.8
Amortisation of intangibles (4.9) (1.5) (4.0)
Group operating profit 35.3 42.0 84.8
Share of profits of associated undertakings
Before amortisation of intangibles 1.5 1.3 3.0
Amortisation of intangibles 0.2 0.2 0.4
1.7 1.5 3.4
Total operating profit 37.0 43.5 88.2
Net interest payable and other similar items (6.8) (5.5) (10.4)
Profit on ordinary activities before
taxation
Before amortisation of intangibles 34.9 39.3 81.4
Amortisation of intangibles (4.7) (1.3) (3.6)
30.2 38.0 77.8
Tax on profit on ordinary activities 5 (8.6) (10.6) (22.0)
Profit on ordinary activities after taxation 21.6 27.4 55.8
Minority interests - equity (0.2) (0.4) (0.6)
Profit for the financial period 21.4 27.0 55.2
Dividends (9.9) (9.0) (30.6)
Retained profit for the financial period 11.5 18.0 24.6
Earnings per share*:
Basic 6 5.6p 7.8p 15.9p
Diluted 6 5.5p 7.8p 15.8p
Adjusted 6 6.8p 8.2p 16.9p
Dividends per share* 2.6p 2.6p 8.2p
The Group's results shown above are derived from continuing operations and there
were no material acquisitions or discontinued operations in the previous year or
current half year. The acquisition of LINPAC Containers on the 22 March 2004 did
not have a material effect on the results for the year ended 30 April 2004.
*Earnings per share and dividends per share for the half year to 31 October 2003
have been restated for the bonus element of the rights share issue on 26 March
2004.
Group Statement of Total Recognised Gains and Losses
Half year to Half year to Year to
31 October 31 October 30 April
2004 2003 2004
(unaudited) (unaudited) (audited)
Note £m £m £m
Profit for the financial period 21.4 27.0 55.2
Exchange differences on foreign currency net
investments 3.5 (4.9) (7.7)
Total recognised gains and losses relating to the
financial period 24.9 22.1 47.5
Prior year adjustment - adoption of UITF 38 1 0.4
Total gains and losses since previous annual report 25.3
Group Reconciliation of Movements in Shareholders' Funds
As restated - see note 1
Half year to Half year to Year to
31 October 31 October 30 April
2004 2003 2004
(unaudited) (unaudited) (audited)
Note £m £m £m
Opening shareholders' funds:
As previously stated 562.0 472.9 472.9
Prior year adjustment - adoption of UITF 38 1 (2.4) (1.7) (1.7)
As restated 559.6 471.2 471.2
Profit for the financial period 21.4 27.0 55.2
Dividends (9.9) (9.0) (30.6)
Retained profit for the financial period 11.5 18.0 24.6
Exchange differences on foreign currency net
investments 3.5 (4.9) (7.7)
New share capital issued 0.1 1.7 1.8
Proceeds from rights issue - - 70.4
Share trust arrangements (2.1) (0.7) (0.7)
Increase in shareholders' funds 13.0 14.1 88.4
Closing shareholders' funds 572.6 485.3 559.6
The difference between reported and historical cost profits for the periods
reported above is not material.
Group Balance Sheet
As restated - see note 1
As at As at As at
31 October 31 October 30 April
2004 2003 2004
(unaudited) (unaudited) (audited)
£m £m £m
Fixed assets
Intangible assets 183.5 51.7 185.6
Tangible assets 566.7 541.9 568.5
Investments 28.8 27.1 28.6
779.0 620.7 782.7
Current assets
Stocks 156.0 145.2 154.9
Debtors 376.0 346.3 361.5
Short term investments 21.3 25.2 20.8
Cash at bank and in hand 42.3 52.2 40.8
595.6 568.9 578.0
Creditors: amounts falling due
within one year
Trade and other creditors (357.3) (313.9) (361.5)
Borrowings (30.8) (24.3) (39.7)
Net current assets 207.5 230.7 176.8
Total assets less current liabilities 986.5 851.4 959.5
Creditors: amounts falling due
after more than one year
Borrowings (320.2) (268.9) (296.6)
Other (1.9) (4.4) (2.4)
Provisions for liabilities and charges (85.4) (87.0) (95.1)
579.0 491.1 565.4
Minority interests - equity (6.4) (5.8) (5.8)
Net assets 572.6 485.3 559.6
Capital and reserves
Called up share capital 38.7 32.3 38.7
Share premium account 254.7 190.5 254.6
Revaluation reserve 8.5 8.8 8.5
Own shares (4.9) (2.8) (2.8)
Profit and loss account 275.6 256.5 260.6
Shareholders' funds - equity 572.6 485.3 559.6
Gearing:
Net debt expressed as a percentage of shareholders' 50.2% 44.5% 49.1%
funds
Group Cash Flow Statement
As restated - see note 1
Half year to Half year to Year to
31 October 31 October 30 April
2004 2003 2004
(unaudited) (unaudited) (audited)
Note £m £m £m
Net cash inflow from operating activities 7 69.7 59.7 131.8
Returns on investments and servicing of (6.5) (5.6) (10.0)
finance
Taxation (13.0) (11.5) (17.9)
Capital expenditure and investments
Purchase of tangible fixed assets (25.1) (27.5) (51.7)
Sale of tangible fixed assets 0.6 1.5 9.1
Sale of fixed asset investments 0.3 1.4 1.7
Net cash outflow from capital expenditure
and investments (24.2) (24.6) (40.9)
Cash inflow before dividends and 26.0 18.0 63.0
acquisitions
Acquisitions and disposals (10.5) (14.8) (181.6)
Equity dividends paid (21.6) (19.2) (28.2)
Net cash outflow before use of liquid resources and
financing (6.1) (16.0) (146.8)
Management of liquid resources 0.7 0.2 4.3
Issue of ordinary shares 0.1 1.7 74.1
Rights issues costs - - (1.9)
Net purchase of own shares (2.3) (1.0) (1.0)
Financing - net increase in debt 18.7 74.6 96.3
Increase in cash in the period 11.1 59.5 25.0
Reconciliation of Net Cash Flow to Movement in Net Debt
Half year to Half year to Year to
31 October 31 October 30 April
2004 2003 2004
(unaudited) (unaudited) (audited)
Note £m £m £m
Increase in cash in the period 11.1 59.5 25.0
Increase in debt financing (18.7) (74.6) (96.3)
Decrease in liquid resources (0.7) (0.2) (4.3)
Increase in net debt resulting from cash flows (8.3) (15.3) (75.6)
Net debt acquired with subsidiary undertakings - - (0.5)
Exchange differences (4.4) 1.8 3.7
Increase in net debt in the period (12.7) (13.5) (72.4)
Opening net debt (274.7) (202.3) (202.3)
Closing net debt 8 (287.4) (215.8) (274.7)
Notes to the Accounts
1 Prior year adjustment
The Company has made a prior period adjustment during the period ended 31
October 2004 following the release of Urgent Issues Task Force (UITF) Abstract
38 'Accounting for ESOP Trusts'. This Abstract superseded UITF Abstract 13,
which required that own shares in the Company held through its Employee Share
Ownership Plan (ESOP) be disclosed as a fixed asset investment on the face of
the Company's balance sheet. Due consideration needed to be made in each
reporting period to the existence of impairment in the carrying value of the
investment. UITF Abstract 38 now requires that such shares be held as a
deduction from equity, at the gross cost paid by the Company for the shares.
The adoption of UITF Abstract 38 has given rise to a prior year adjustment to
the opening retained earnings of £0.4m credit for the period. This represents
the reversal of a provision charged through the profit and loss account in 1999
to recognise the impairment in the carrying value of the ESOP shares. The gross
cost of the ESOP shares at 31 October 2004 was £4.9m (half year to 31 October
2003: £2.8m; year to 30 April 2004: £2.8m). Under UITF Abstract 38 this is now
deducted from equity, resulting in a net reduction in shareholders' funds of
£4.9m (half year to 31 October 2003: £2.4m; year to 30 April 2004: £2.4m), being
the carrying value of the ESOP shares.
2 Basis of preparation
The interim financial information, which is unaudited, has been prepared using
the same policies as those adopted in the accounts for the financial year ended
30 April 2004, except for UITF Abstract 38 (see note 1 above). Those accounts
have been reported on by the Company's auditors and delivered to the Registrar
of Companies. The report of the auditors was unqualified and did not contain an
adverse statement under section 237(2) or (3) of the Companies Act 1985.
3 Analysis of Group turnover, profit and capital employed
Half year to Half year to Year to
31 October 31 October 30 April
2004 2003 2004
(unaudited) (unaudited) (audited)
£m £m £m
Turnover
Packaging: Paper & Corrugated Packaging 444.2 376.4 748.9
Plastic Packaging 99.9 107.6 208.7
544.1 484.0 957.6
Office Products: Wholesaling 240.0 244.4 498.8
Manufacturing 23.2 24.4 48.0
Intra-segment sales (7.2) (8.1) (15.9)
256.0 260.7 530.9
800.1 744.7 1,488.5
By origin: United Kingdom 482.5 415.6 829.4
Rest of World 317.6 329.1 659.1
800.1 744.7 1,488.5
Operating profit (see a) below)
Packaging: Paper & Corrugated Packaging 27.9 27.7 50.5
Plastic Packaging 6.1 7.5 15.2
34.0 35.2 65.7
Office Products: Wholesaling 6.7 7.2 21.7
Manufacturing (0.5) 1.1 1.4
6.2 8.3 23.1
40.2 43.5 88.8
By origin: United Kingdom 24.8 27.6 47.3
Rest of World 15.4 15.9 41.5
40.2 43.5 88.8
3 Analysis of Group turnover, profit and capital employed (continued)
Half year to Half year to Year to
31 October 31 October 30 April
2004 2003 2004
(unaudited) (unaudited) (audited)
£m £m £m
Capital employed (see b) below)
Packaging: Paper & Corrugated Packaging 663.2 507.5 657.4
Plastic Packaging 141.9 139.3 136.5
805.1 646.8 793.9
Office Products: Wholesaling 121.1 118.3 123.7
Manufacturing 13.5 14.1 13.7
134.6 132.4 137.4
939.7 779.2 931.3
By origin: United Kingdom 647.0 485.3 639.3
Rest of World 292.7 293.9 292.0
939.7 779.2 931.3
Return on Sales
Packaging: Paper & Corrugated Packaging 6.3% 7.4% 6.7%
Plastic Packaging 6.1% 7.0% 7.3%
6.2% 7.3% 6.9%
Office Products: Wholesaling 2.8% 2.9% 4.4%
Manufacturing (2.2%) 4.5% 2.9%
2.4% 3.2% 4.4%
5.0% 5.8% 6.0%
By origin: United Kingdom 5.1% 6.6% 5.7%
Rest of World 4.8% 4.8% 6.3%
5.0% 5.8% 6.0%
Return on average capital employed (see c) below)
Packaging: Paper & Corrugated Packaging 8.3% 10.7% 9.6%
Plastic Packaging 8.7% 10.5% 10.7%
8.4% 10.7% 9.9%
Office Products: Wholesaling 11.6% 12.2% 18.2%
Manufacturing (6.9%) 15.1% 9.8%
9.6% 12.6 % 17.3%
8.6% 11.0% 11.1%
By origin: United Kingdom 7.7% 11.4% 9.4%
Rest of World 10.4% 10.3% 14.0%
8.6% 11.0% 11.1%
a) Operating profit is stated before amortisation of intangibles.
b) Capital employed excludes fixed asset investments, net borrowings, deferred
consideration due in respect of acquisitions, corporation tax, dividends payable
and minority interests.
c) Return on average capital employed for the half year is calculated as twice
the operating profit divided by the average capital employed, including the
intangible assets on the balance sheet.
4 Pension Costs
The Group operates a funded defined benefit scheme in the UK. The triennial
valuation of the scheme as at 5 April 2004 is due to be concluded shortly.
Included within the results for the half year to 31 October 2004 is an estimated
pension charge of £8.0m (half year to 31 October 2003: £nil; year ended 30 April
2004: £nil), being based on the Group's current expectation of the outcome of
the valuation.
5 Taxation
Tax on profits before amortisation of intangibles has been charged at an
effective rate of 24.6% (half year to 31 October 2003: 27.0%; year to 30 April
2004: 27.0%), being the expected full year effective rate.
The tax charge for the period consists of UK taxation of £3.3m (half year to 31
October 2003: £4.2m; year to 30 April 2004: £7.1m) and overseas taxation of
£5.3m (half year to 31 October 2003: £6.4m; year to 30 April 2004: £14.9m).
6 Earnings per share
The basic earnings per share have been calculated on the profit for the period
of £21.4m (half year to 31 October 2003: £27.0m; year to 30 April 2004: £55.2m)
and on 385.2m (half year to 31 October 2003: 344.2m; year to
30 April 2004: 348.2m) ordinary shares, being the weighted average in issue and
fully paid during the period.
The adjusted earnings per share excludes the effect of amortisation of
intangibles and has been calculated on the adjusted profit for the period of
£26.1m (half year to 31 October 2003: £28.3m; year to 30 April 2004: £58.8m).
7 Reconciliation of operating profit to net cash inflow from
operating activities
Half year to Half year to Year to
31 October 31 October 30 April
2004 2003 2004
(unaudited) (unaudited) (audited)
£m £m £m
Operating profit before amortisation of intangibles 40.2 43.5 88.8
Depreciation 34.0 31.7 64.5
Profit on sale of tangible fixed assets (0.2) (0.3) (4.0)
Working capital (3.3) (14.8) (17.0)
Decrease in provisions (1.0) (0.3) (0.9)
Other non cash operating items - (0.1) 0.4
Net cash inflow from operating activities 69.7 59.7 131.8
8 Analysis of net debt
At
30 April 2004 At
Exchange 31 October
Cash flow differences 2004
(audited) (unaudited) (unaudited) (unaudited)
£m £m £m £m
Cash at bank and in hand 40.8 (0.2) 1.7 42.3
Overdrafts (29.8) 11.3 (0.6) (19.1)
11.0 11.1 1.1 23.2
Debt due after one year (293.8) (17.3) (6.7) (317.8)
Debt due within one year (8.9) (1.9) 0.1 (10.7)
Finance leases (3.8) 0.5 (0.1) (3.4)
(306.5) (18.7) (6.7) (331.9)
Short term investments 20.8 (0.7) 1.2 21.3
Total net debt (274.7) (8.3) (4.4) (287.4)
--------------------------
* Source: European Federation of Corrugated Board Manufacturers
This information is provided by RNS
The company news service from the London Stock Exchange
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