Preliminary Results-Amendment
Smiths Industries PLC
18 September 2000
The issuer has made the following amendment to the Preliminary Financial Results
announcement released 18th September 2000 at 07:08 am under RNS No 0661R.
The dividend payment and record dates have been amended as follows:
(Changes denoted by double asterisks** in text)
If approved at the Annual General Meeting of the company, the final dividend
on the ordinary shares will be paid on 13 December 2000 to shareholders
registered at the close of business on 13 October 2000. The ex-dividend date
will be 9 October 2000.
As announced, the Annual General Meeting will be held at the company's head
office, 765 Finchley Road, London NW11 8DS on Tuesday 14 November.
Today's announcement of the preliminary results replaces the previously
scheduled date for release of those results, 27 September 2000.
All other details remain unchanged.
The full corrected version is shown below.
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SMITHS INDUSTRIES: PRELIMINARY RESULTS 2000
For the year ended 31 July 2000
2000 1999 Change
Turnover £1.46bn £1.32bn +11%
Operating profit * £276m £248m +11%
Pre-tax profit * £266m £241m +11%
Operating cash-flow £218m £195m +12%
Earnings per share * 59.0p 53.5p +10%
Total dividends 23.8p 21.65p +10%
* before goodwill amortisation
Commenting on the results, Keith Butler-Wheelhouse, Chief Executive said:
'We've succeeded in delivering growth above 10% for the sixth year in a row.
All three businesses performed strongly last year, and we aim to keep it that
way. Most of the gains came from our activities in North America, where we
generated 60% of our profits. Looking ahead, there are exciting prospects in
the aerospace, medical and telecoms sectors, and we are grasping the
opportunities offered by each of them.'
Further information: Russell Plumley: Tel: 020 8457 8203
Home: Tel: 020 8992 9751
Page 1 of 19
Smiths Industries: Preliminary Results 2000
In its preliminary results for the year ended 31 July 2000, Smiths Industries
today reported an 11% increase in pre-tax profit, sales and operating profit.
It is the sixth year in succession that the company has raised profits by 10%
or more, and they have now doubled over that period. The major contributor to
earnings growth last year was the organic development of the existing
businesses.
On pre-tax profit of £266m (1999: £241m) the company recorded earnings per
share of 59p (53.5p), an increase of 10%. The Board has recommended a final
dividend of 15.7p, giving a 9.9% increase in dividends for the year, totalling
23.8p (21.65p), and covered 2.3 times by earnings. Profits are reported before
goodwill amortisation of £10m (£3m) on acquisitions made since 1998.
Shareholders will be offered a scrip dividend alternative. Annual dividend
increases have now been sustained by Smiths Industries for the past 30 years.
From sales of £1.46 billion (£1.32bn), the company earned operating profits of
£276m (£248m), with Aerospace, Medical and Industrial businesses contributing
equally to the improvement. The overall margin on sales remained at 19%, with
Medical one point above, Aerospace on the average and Industrial a point below
it.
The company made nine acquisitions during the year at a cost of £272m, to
extend its market reach in aerospace equipment and in electronic components
for wireless communications. In this period they contributed £7m to profits
over and above their funding costs. On an annualised basis, these acquisitions
are generating trading profits of around £30m on sales of £160m. Since 1994,
Smiths Industries has spent close to £870m on acquisitions, largely funded
from cash generated during that period.
Strong cash generation continues to be a distinguishing feature of the
company's performance. Last year, cash-flow from operations, measured after
capital expenditure, reached £218m, a profit-to-cash ratio of 79%. Net debt
stood at £285m at year end, representing less than a quarter of total
shareholder investment, on which the company generated a 15% rate of return
last year.
The United States remains the company's most important market, and business
there has continued to expand both organically and as a result of recent US
acquisitions. Profits from US operations moved ahead by 30%. There are 34
production facilities and 8,000 employees of Smiths Industries in the US.
Currency had minimal overall impact on these results, with gains from the
dollar's strength negated by the euro's weakness. The dollar appreciated
against sterling by 4% year-on-year, while the euro depreciated by 7%. The
weak euro held back export margins and prevented UK profits from moving ahead.
Exports from the UK were £278m. Within continental Europe, business was steady
on a euro basis.
The company invests heavily in the development of new technology, and R & D
spending has continued to rise. Last year, total expenditure amounted to
£144m, of which £80m was recovered directly from customers. The company-funded
element increased by 19%, partly through the inclusion of programmes already
underway in the acquired companies, and partly through being selected to
develop next-generation avionics for future aircraft. The costs have been
charged against profits for the year.
The company is evenly balanced across its three areas of activity, with
Aerospace providing 40% of profits, and Medical and Industrial each providing
30%. Industrial grew slightly faster than the other two last year, benefiting
from the series of recent acquisitions in the field of telecom network
components. World market conditions in each of these specialised sectors
continue to generate a healthy demand for the company's products and services.
Including the benefit of acquisitions, Smiths Industries Aerospace recorded
sales and profits up 10% to £583m and £108m respectively, with margins
unchanged at 19%. This was a year of transition, with deliveries to civil jet
customers slowing as expected, and orders for military aircraft only just
starting what will become a sustained upturn.
The company is now supplying systems for new-generation combat aircraft
including Eurofighter Typhoon, F-18 Super Hornet, F-22 Raptor and the Longbow
Apache helicopter, and delivery rates will increase over the next five years.
Additionally, development contracts have been secured on programmes which will
ensure long-term growth, including systems for both contenders in the US Joint
Strike Fighter contest.
In commercial aerospace, Smiths Industries Aerospace has maintained
market leadership in Flight Management Systems, and is working with Boeing,
Airbus (jointly with Sextant) and the major airlines on the introduction of
more advanced flight management capabilities. Systems are being installed both
on new-build and in-service aircraft, bringing operational benefits from
better use of airspace in crowded skies.
Two acquisitions were made at a combined cost of £173m from Invensys and BAE
Systems. They have provided added competence in the area of aircraft
utilities, enabling the company to offer an integrated package for the
management and actuation of electrical equipment throughout the airframe.
The chemical/biological detection business, Graseby Dynamics, experienced
rapid growth, helped by the £9m acquisition of ETG in the US. However, the
marine business, Kelvin Hughes, suffered from the depressed world shipping
market.
The Customer Service operation, providing support for airline and airforce
users of the company's equipment throughout the world, has again performed
very strongly. Its scope has been expanded by taking on the products of the
recently acquired companies. Rather than simply providing repairs and spares,
the future of the business is being built on long term Performance Based
Logistics agreements to keep equipment operational for an agreed cost.
On sales up 11% at £419m, Smiths Industries Medical Systems recorded profits
up 12% to £86m, resulting in a margin of 20%. More than half of these profits,
and most of the improvement, came from the US, where healthcare expenditure
continues to rise.
The Medical Systems business in the US has achieved success by focusing on
highly specified devices and equipment, including procedural kits, which
command a premium because they meet consultants' requirements more precisely
than the bundled offerings of larger competitors. The US remains a highly
competitive market for medical products, with powerful hospital purchasing
organisations trading price reductions for valuable framework agreements
covering all the hospitals in their group.
Continuous productivity improvement has been the other contributor to the
better performance. The establishment of a production facility two years ago
in Mexico is now paying dividends. During the past year a number of additional
product lines, involving high labour content, have been moved into this
facility, which now employs 300 people. Product sterilisation will also soon
be carried out nearby, with the benefit of reduced shipping costs.
In recent years, the Medical Systems product range has been extended by
acquisition of US businesses specialising in community and home care
equipment. This has proved a profitable route for growth, not just within the
US but also in international markets served by the company's worldwide medical
distribution network. The ambulatory pumps of Deltec and the vital signs
monitors of BCI are among those items that have established substantial export
sales from the US.
The larger product area of the Medical Systems business, both in the UK and
the US, remains single-use devices used during critical and intensive care.
Under the Portex brand, the company has a very strong position in the market
for these products, used by anaesthetists and consultants as a matter of
preference. Of those made in the UK, more than 70% are exported to national
and private health systems throughout the world. Japan is one of the largest
markets, and the distributor Japan Medico is performing well again, after
successfully eliminating a stock overhang inherited when it became a
subsidiary of Smiths Industries.
On sales up 10% at £462m, the company's Industrial activities recorded profits
up 13% to £82m, resulting in a margin of 18%. The improvement came from rapid
growth in the existing Interconnect companies, a good initial contribution by
the Interconnect acquisitions made during the year, and a strong performance
by the ducting and hosing business within Air Movement.
Looking first at Air Movement, the businesses making flexible ducting, hosing
and heating elements performed well on both sides of the Atlantic, winning
additional customers among the brand leaders in domestic equipment. On the
other hand, the fans and ventilation businesses, mainly located in the UK,
experienced difficult trading conditions: while Vent-Axia sustained its market
leadership in fans for commercial premises, the larger, industrial ventilation
products suffered reduced sales and profits.
The Interconnect division now generates more than half of Industrial's
profits, and that proportion is set to increase. The product range already
included microwave cables, specialised conduit, high-integrity connectors, and
protection devices against power surges and lightning strikes. Acquisitions
during the year brought in four companies at a combined cost of £85m, adding
microwave filters and connectors, resistors and attenuators, and transient
voltage suppression systems. Among the assets is a plant in Costa Rica with
the potential for more extensive utilisation.
All these products are used for the interconnection of electrical and
electronic systems in a wide variety of applications. Two sectors in
particular offer significant opportunities at present: wireless communications
infrastructure, and aerospace/defence equipment. Interconnect has long been
involved in the second of these, and is currently benefiting from the upturn
in new defence platforms already mentioned for the Aerospace division, of
which Eurofighter Typhoon is one example.
The wider involvement in communications equipment is more recent, and this is
a market experiencing exponential growth. Interconnect provides devices for
connecting and protecting the power and signalling circuits in mobile network
base stations, microwave towers on business premises and similar equipment.
The advent of next-generation wireless networks has caused a significant
increase in installations of this type, and the demand for additional capacity
will be sustained for a long period. The company's products offer proprietary
solutions to complex installation issues and are used by customers including
Lucent, Ericsson, Motorola, Nortel and Nextel.
The benefits are already flowing through. The existing businesses serving the
communications market improved their profits by a third last year, and the
recent acquisitions have all performed better than forecast. Although still
modest, with annualised sales of around $120 million, so far mainly in the US
and in US export markets, this is an area of great potential for Smiths
Industries.
Smiths Industries gained momentum in all three business areas last year, and
this has been maintained into the new year. With a positive outlook in the
aerospace, healthcare and telecom markets, the prospects are for a continued
strong performance from the underlying operations and further benefits from
recent acquisitions, leading to a sustained increase in earnings for
distribution to shareholders.
**The Annual General Meeting of the company will be held at the company's head
office, 765 Finchley Road, London NW11 8DS on Tuesday 14 November at 12.00
noon. If approved at the meeting, the final dividend on the ordinary shares
will be paid on 13 December 2000 to shareholders registered at the close of
business on 13 October 2000. The ex-dividend date will be 9 October 2000.
By Order of the Board 18 September 2000
Alan Smith, Secretary
Tabular information attached
Profit and Loss Account
Market and Geographical Analyses
Summarised Cash-Flow Statement
Summarised Balance Sheet
Notes to the Accounts
Five Year Review
Note:
In accordance with section 240 of the Companies Act 1985, this financial
information is an abridged version of the company's full accounts upon which
the company's auditors will be reporting and which will be sent to
shareholders on or before 18 October 2000 and filed with the Registrar of
Companies.
These results have been prepared in accordance with accounting policies set
out in the company's accounts for the year ended 31 July 1999, as amended by
the latest accounting standards relating to the treatment of intangible assets
and earnings per share.
Smiths Industries: Preliminary Results 2000
CONSOLIDATED PROFIT AND LOSS ACCOUNT
YEAR ENDED 31 JULY 2000
Before
Goodwill Goodwill Year ended
Amortisation Amortisation 31 July 2000
£m £m £m
Turnover:
Continuing operations 1385.7 1385.7
Acquisitions 78.0 78.0
------ ------ ------
1463.7 1463.7
Cost of sales (841.4) (841.4)
------ ------ ------
Gross profit 622.3 622.3
Operating expenses (346.4) (10.3) (356.7)
------ ------ ------
Operating profit:
Continuing operations 259.7 (4.9) 254.8
Acquisitions 16.2 (5.4) 10.8
------ ------ ------
Profit on ordinary
activities before interest 275.9 (10.3) 265.6
Net interest (9.6) (9.6)
------ ------ ------
Profit on ordinary
activities before taxation 266.3 (10.3) 256.0
Tax on profit (79.9) 1.6 (78.3)
------ ------ ------
Profit on ordinary
activities after taxation 186.4 (8.7) 177.7
Minority interests (0.7) (0.7)
------ ------ ------
Profit for the financial
year 185.7 (8.7) 177.0
Dividends (75.3) (75.3)
------ ------ ------
Retained profit for
the year 110.4 (8.7) 101.7
------ ------ ------
Earnings per share
Basic 59.0p (2.8p) 56.2p
Fully-diluted 58.7p (2.8p) 55.9p
CONSOLIDATED PROFIT AND LOSS ACCOUNT
COMPARATIVE FIGURES FOR THE YEAR ENDED 31 JULY 1999
Before
Goodwill Goodwill Year ended
Amortisation Amortisation 31 July 1999
£m £m £m
Turnover:
Continuing operations 1323.9 1323.9
Acquisitions
------ ------ ------
1323.9 1323.9
Cost of sales (762.8) (762.8)
------ ------ ------
Gross profit 561.1 561.1
Operating expenses (313.6) (3.0) (316.6)
------ ------ ------
Operating profit:
Continuing operations 247.5 (3.0) 244.5
Acquisitions
------ ------ ------
Profit on ordinary
activities before interest 247.5 (3.0) 244.5
Net interest (7.0) (7.0)
------ ------ ------
Profit on ordinary
activities before taxation 240.5 (3.0) 237.5
Tax on profit (74.0) (74.0)
------ ------ ------
Profit on ordinary
activities after taxation 166.5 (3.0) 163.5
Minority interests (0.3) (0.3)
------ ------ ------
Profit for the financial
year 166.2 (3.0) 163.2
Dividends (67.9) (67.9)
------ ------ ------
Retained profit for
the year 98.3 (3.0) 95.3
Earnings per share
Basic 53.5p (1.0p) 52.5p
Fully-diluted 53.0p (1.0p) 52.0p
ANALYSES OF TURNOVER AND PROFIT
Market Analysis
Turnover Profit
2000 1999 2000 1999
£m £m £m £m
Aerospace 583.4 528.5 108.0 98.5
Medical Systems 418.8 376.2 85.5 76.0
Industrial 461.5 419.2 82.4 73.0
------ ------ ------ ------
Ordinary activities before 1463.7 1323.9 275.9 247.5
goodwill amortisation ====== ======
Goodwill amortisation (10.3) (3.0)
------ ------
Operating profit 265.6 244.5
after goodwill amortisation
Net interest (9.6) (7.0)
------ ------
Profit before taxation 256.0 237.5
====== ======
Geographical Analysis
Turnover Profit
2000 1999 2000 1999
£m £m £m £m
United Kingdom 595.3 603.6 96.4 101.9
USA 751.7 612.2 161.5 124.3
USA $1187.7m $1004.0m $255.1m $203.9m
Continental Europe 128.2 135.0 8.4 14.3
Other overseas 91.4 76.5 9.6 7.0
Inter-company (102.9) (103.4)
------ ------ ------ ------
1463.7 1323.9 275.9 247.5
------ ------
Goodwill amortisation (10.3) (3.0)
------ ------
Operating profit 265.6 244.5
------ ------
SUMMARISED CASH-FLOW STATEMENT
2000 1999
£m £m
Operating profit 265.6 244.5
Goodwill amortisation 10.3 3.0
Depreciation 38.4 35.6
Working capital movement
and reorganisation (53.7) (39.7)
------ ------
Cash in-flow from operating activities 260.6 243.4
Capital expenditure (50.8) (50.4)
Disposals 7.8 2.0
------ ------
Operating cash-flow after
capital expenditure 217.6 195.0
Tax paid (71.8) (70.4)
Net interest paid - (8.1)
------ ------
Free cash-flow 145.8 116.5
Dividends (56.5) (37.0)
Acquisitions and disposals (272.1) (93.7)
New shares 8.3 9.1
Other (17.4) (5.5)
------ ------
Increase in borrowings (191.9) (10.6)
Net debt - at 1 August 1999 (93.4) (82.8)
------ -----
at 31 July 2000 (285.3) (93.4)
------ -----
Further details of the cash-flow showing the analysis between cash and liquid
resources is contained in note 9.
SUMMARISED BALANCE SHEET
2000 1999
£m £m
Fixed assets
Intangible assets 328.8 91.5
Tangible assets 261.6 231.7
Net current assets
Assets held for resale 7.0
Stocks 247.7 203.9
Debtors 409.9 351.3
Creditors (403.8) (358.5)
------ ------
260.8 196.7
Net borrowings/cash (285.3) (93.4)
Provisions for liabilities
and charges (67.1) (68.0)
------ ------
Funds employed 498.8 358.5
====== ======
Capital and reserves
Share capital and
share premium 199.0 169.5
Reserves 290.9 182.8
------ ------
Shareholders' equity 489.9 352.3
Minority interests 8.9 6.2
------ ------
Capital employed 498.8 358.5
====== ======
NOTES TO THE ACCOUNTS
1) Earnings per share are calculated on the weighted average number
of shares in issue for each period:
Basic Fully-diluted
52 weeks ended 31 July 2000: 315,011,488 316,580,140
52 weeks ended 31 July 1999: 310,932,199 313,490,677
2) Operating profit is after charging 2000 1999
£m £m
Depreciation of fixed assets 38.4 35.6
Research and development expenditure 63.3 53.9
Year 2000 related expenditure 1.7
3) Taxation 2000 1999
£m £m
Taxation on the profit for the year:
UK corporation tax at 30% (1999 - 30.67%) 30.9 37.1
Double taxation relief (3.3) (3.2)
---- ----
27.6 33.9
Deferred taxation 6.1 2.8
Overseas taxation 44.6 37.3
------ ------
78.3 74.0
====== ======
4) Stocks
2000 1999
£m £m
Stocks comprise:
Raw materials and consumables 89.5 66.2
Work in progress 79.2 67.5
Finished goods 93.0 83.5
------ ------
261.7 217.2
Less payments on account (14.0) (13.3)
------ ------
247.7 203.9
====== ======
NOTES TO THE ACCOUNTS (CONT.)
5) Debtors
2000 1999
£m £m
Amounts falling due within one year:
Trade debtors 302.8 247.2
Amounts recoverable on contracts 31.2 29.6
Other debtors 5.7 5.4
Prepayments and accrued income 13.2 14.6
------ ------
352.9 296.8
Amounts falling due after more than one year:
Other debtors 10.3 5.4
Deferred taxation 6.3 13.4
Pensions prepayment 40.4 35.7
------ ------
409.9 351.3
====== ======
6) Creditors
2000 1999
£m £m
Amounts falling due within one year:
Bank loans and overdrafts 107.8 112.1
Floating rate loan notes 4.5 4.6
Other loan notes 3.7 3.6
------ ------
116.0 120.3
Trade creditors 97.4 86.2
Bills of exchange payable 1.4 1.3
Other creditors 18.4 16.2
Proposed dividend 49.9 44.8
Corporate taxation 42.5 36.1
Other taxation and social security costs 9.8 9.2
Accruals and deferred income 141.7 132.0
------ ------
477.1 446.1
====== ======
Amounts falling due after more than one year:
7.25% Eurosterling Bond 2016 147.6
8.34% Senior Notes 2002 66.7 61.7
Floating rate loan notes 3.2 4.6
Other loan notes 0.1 0.2
------ ------
217.6 66.5
Other creditors 42.7 32.7
------ ------
260.3 99.2
====== ======
NOTES TO THE ACCOUNTS (CONT.)
7) Borrowings and net debt
Fixed borrowings Floating Total Total
borrowings 2000 1999
Weighted
average
Interest
Rate Years fixed Amount
£m £m £m £m
Currencies:
Sterling 7.08% 16 151.2 7.7 158.9 13.0
US Dollar 8.34% 2 16.7 125.9 142.6 132.6
EMU participants 7.8 7.8 7.5
Japanese Yen 24.3 24.3 33.3
Other 0.0 0.4
------ ------ ------ ------
167.9 165.7 333.6 186.8
------ ------ ------ ------
Cash and deposits 48.3 93.4
------ ------
Net debt 285.3 93.4
====== ======
Maturity
On demand/under one year 3.5 112.5 116.0 120.3
1-2 years 0.1 0.6 0.7 2.3
2-5 years 16.7 52.6 69.3 64.2
Over 5 years 147.6 147.6
------ ------ ------ ------
167.9 165.7 333.6 186.8
====== ====== ====== ======
8) Provisions for liabilities and charges
At 1.8.99 Exchange Profit & loss Acquisitions Utilisation At31.7.00
Adjustments account
Provisions Releases
£m £m £m £m £m £m £m
Consolidated
Post-retirement
healthcare 26.5 1.9 1.5 0.4 (2.4) 27.9
Service guarantees
and product
liability 14.0 0.6 7.0 (0.5) 1.9 (5.3) 17.7
Reorganisation 9.3 0.2 2.8 (1.1) 0.9 (6.7) 5.4
Property 12.7 0.3 0.1 (1.5) 1.6 (1.8) 11.4
Litigation 5.5 1.3 (1.2) 0.7 (1.6) 4.7
-----------------------------------------------------------------------------
68.0 3.0 12.7 (4.3) 5.5 (17.8) 67.1
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9) Cash-flow analysed between cash and liquid resources
2000 1999
£m £m
Operating profit 265.6 244.5
Goodwill amortisation 10.3 3.0
Depreciation 38.4 35.6
Increase in stocks (13.9) (2.6)
Increase in debtors (26.3) (28.1)
Decrease in creditors (13.5) (9.0)
----- -----
Net cash in-flow from
operating activities 260.6 243.4
Returns on investments and
servicing of finance (8.1)
Tax paid (71.8) (70.4)
Capital expenditure (50.8) (50.4)
Asset sales 7.8 2.0
Acquisitions and disposals (272.1) (98.7)
Equity dividends paid (56.5) (37.0)
Management of liquid resources 59.5 6.2
Financing:
Increase in term borrowings 139.2 53.5
Loan note redemptions (1.6) (19.0)
Share issues 8.3 9.1
----- ----
Increase in cash 22.6 30.6
===== ====
Reconciliation to net debt
Net debt at beginning of period (93.4) (82.8)
Net cash in-flow 22.6 30.6
Debt acquired with subsidiaries (3.0)
Deposit acquired with subsidiaries 8.0
Loan note issues (net of repayments) 1.6 19.0
Increase in other borrowings (198.7) (59.7)
Exchange variations (17.4) (5.5)
----- ----
Net debt at end of period (285.3) (93.4)
===== =====
10) Acquisitions
During the year under review the Company acquired the issued share capitals of
Environmental Technologies Group (ETG), a number of businesses from Invensys
plc, and Marconi Actuation Systems, Inc. (MASI) for Aerospace, and Sabritec,
LEA International, Inc. (LEA),EMC Technology, LLC (EMC), AeroSonics, Inc.,
Venair Technik AG (Venair), and Florida RF Labs, Inc. (RF Labs) for
Industrial. Details of the consideration paid, book values of retained assets
at the dates of acquisition, and adjustments to reflect the Company's
assessments of fair values are set out below. These fair values are
provisional, and will be finalised in subsequent financial statements.
Date of Consideration Goodwill Net
acquisition Assets
£m £m £m
ETG 4.08.99 9.5 7.4 2.1
Invensys businesses 31.01.00 111.0 90.0 21.0
MASI 23.03.00 62.4 55.2 7.2
Sabritec 14.01.00 32.5 28.4 4.1
LEA 28.01.00 7.0 6.5 0.5
EMC 14.02.00 27.8 22.7 5.1
AeroSonics 31.03.00 3.3 2.4 0.9
Venair 31.03.00 1.4 0.7 0.7
RF Labs 1.05.00 17.2 12.3 4.9
--------------------------------------------------------------------------
272.1 225.6 46.5
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Book Value Revaluation Consistency Fair
of accounting value
policy
£m £m £m £m
--------------------------------------------------------------------------
Fixed assets 23.3 (3.3) (2.4) 17.6
Assets held for resale 6.5 6.5
Stock 28.9 (1.9) (6.8) 20.2
Debtors 24.6 2.2 (0.3) 26.5
Creditors (12.5) (5.7) (1.3) (19.5)
Provisions (4.0) (0.8) (0.7) (5.5)
Taxation 0.7 0.7
--------------------------------------------------------------------------
Net assets acquired 67.5 (9.5) (11.5) 46.5
--------------------------------------------------------------------------
Goodwill 225.6
--------------------------------------------------------------------------
Consideration 272.1
--------------------------------------------------------------------------
Satisfied by cash 272.1
--------------------------------------------------------------------------
In accordance with the provisions of FRS10 - Goodwill and Intangible Assets,
the Company amortises goodwill arising on acquisitions after
1 August 1998 on a straight-line basis over a period of up to 20 years. The
charge for the year was £10.3m. Goodwill relating to acquisitions up to 1
August 1998 was charged to Reserves.
NOTES TO THE ACCOUNTS (cont.)
11) Share premium account and reserves
Share premium Revaluation Profit and
account reserve loss account
£m £m £m
Consolidated:
At 1 August 1999 91.1 3.3 179.5
Premium on allotments 28.6 (7.5)
Retained profit 101.7
Exchange rate changes 13.9
--------------------------------------------------------------------
At 31 July 2000 119.7 3.3 287.6
--------------------------------------------------------------------
During the year the Company received £15.8m on the issue of shares in respect
of the exercise of options awarded under various share option schemes.
Employees paid £8.3m for the issue of these shares and the balance of £7.5m
comprised contributions to the qualifying employee share ownership trust
(QUEST) from undertakings within the Company. The trust has been included
within the financial statements.
1,771,700 shares at market values totalling £13.7m were taken up by
shareholders as a scrip alternative to cash dividends.
FIVE YEAR REVIEW
£m 2000 1999 1998 1997 1996
Turnover 1463.7 1323.9 1198.5 1076.2 1008.4
Operating profit
before amortisation 275.9 247.5 224.2 194.6 168.1
Net interest (9.6) (7.0) (6.1) (2.5) (2.7)
Profit before amortisation
and exceptional items 266.3 240.5 218.1 192.1 165.4
Exceptional items (0.5) 5.0
Profit before amortisation
and taxation 266.3 240.5 218.1 191.6 170.4
Goodwill amortisation (10.3) (3.0)
Profit after
taxation 177.7 163.5 149.6 132.6 117.8
Minority interests (0.7) (0.3) (1.4) (0.9)
Shareholders'
equity 489.9 352.3 221.7 240.4 211.8
Shareholder investment 1314.8 1166.9 1032.0 934.3 860.0
Operating profit
as a % of turnover 18.8 18.7 18.7 18.1 16.7
Taxation before amortisation
and exceptional items (%) 30.0 30.8 31.4 32.0 33.0
Operating cash-flow after
capital expenditure (£m) 217.6 195.0 203.6 161.0 151.2
Earnings per share (p)
(before exceptionals
and amortisation) 59.0 53.5 48.2 42.5 36.6
Dividends:
per share (p) 23.8 21.65 19.65 17.85 16.20
Times covered: 2.3 2.4 2.4 2.4 2.2
Research & development 143.7 127.0 118.5 104.3 107.1
(of which, company funded) 63.3 53.9 48.8 48.2 50.0
Employees:
(at year-end)
UK 6900 7000 6900 6400 6500
Overseas 9600 7900 7200 6900 6300
Total 16500 14900 14100 13300 12800
Latest directors dealings
- 2 hours ago Alphawave IP Group
- 3 hours ago WH Smith
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- 4 hours ago Associated British Foods