Final Results
Wilmington Group Plc
16 September 2002
For Immediate Release Monday 16th September 2002
WILMINGTON GROUP PLC
Preliminary Results
For the 16 Months to 30th June 2002
Wilmington Group plc ('Wilmington' or 'the Group'), the business information,
professional training and magazine publishing group, today announces its
preliminary results for the 16 months to 30th June 2002.
Preliminary results review:
- Turnover of £103.1m (12 months to 28th February 2001: £72.8m), up 4.3% on
a twelve month to June comparable basis.
- 132% of operating profit before amortisation converted into positive cash
inflow of £16.5m
- Pre-tax profits before amortisation of goodwill and intangible assets of
£12.1m, down 12.8% on a twelve month to June comparable basis, with adjusted
earnings per share (before amortisation) of 9.02p per share (2001: 10.14p)
- Continued growth from both Business Information division and the
Professional Training division accounting for 86% of Group operating profit
before amortisation (2001: 69%)
- The Magazine division increased market share though yields remained under
considerable pressure - reorganisation continues
- Ungeared balance sheet, with untapped borrowing facilities for up to £50m
- Proposed final dividend of 0.50p per share, giving total dividends for
the period of 3.00p per share (2001: 2.50p)
Commenting on the preliminary results, Brian Gilbert, Executive Chairman, said:
'Since our last results announced in April, we have enjoyed continued growth in
our Business Information and Professional Training divisions, which account for
86% of Group operating profits. We are taking steps to refocus the Magazine
division to improve performance. Wilmington, with its strong cash flow and
ungeared balance sheet, is in an excellent position to continue to grow its
business organically as well as through selective acquisitions'.
For further information, please call:
Brian Gilbert On the day: 020 7466 5000
Executive Chairman, Wilmington Thereafter: 020 7251 6499
Charles Brady On the day: 020 7466 5000
Chief Executive, Wilmington Thereafter: 0121 355 0900
Bobby Morse/Suzanne Dunne Tel: 020 7466 5000
Buchanan Communications
CHAIRMAN'S STATEMENT
I am pleased to announce the results for Wilmington Group plc ('Wilmington') for
the 16 months to 30th June 2002. The extended period is a consequence of the
change to the Company's year end which I announced in last year's Annual Report.
Like for like figures have been prepared for comparative purposes and can be
reviewed in the pro-forma five year financial summary in note 8.
Wilmington is a growing media business that creates and owns high quality
products to fulfil the information requirements of professional business
communities.
Profit before tax and amortisation of goodwill and intangible assets ('adjusted
profit') increased from £12,113,000 for the 12 months ended 28th February 2001
to £12,453,000 for the 16 months to 30th June 2002. Profit before tax but after
amortisation decreased to £4,734,000 for the 16 months to 30th June 2002 from
£9,081,000 for the 12 months ended 28th February 2001, due in a large part to
the non-recurring amortisation of goodwill and intangible assets charge of £
£2.9 million referred to below. The Group continued its unbroken record of
growth as sales increased in the 16 months to 30th June 2002 to £103,098,000.
A fundamental pillar of our business is its ability to generate strong cash
flow. Operating cash inflow of £16.5 million in the period was 132% of operating
profit before amortisation.
Our information and training businesses have performed excellently, indeed
better than in the previous twelve month period, and have underpinned the
Group's performance. However our magazine division has been under intense
pressure. In common with all advertising based businesses, Wilmington has been
affected by the worst advertising recession in memory. The Group responded by
reducing costs by £2 million in a full year. Notwithstanding this exercise, we
have witnessed significantly lower profits from our magazine titles in the
period.
We previously announced we would be undertaking a portfolio review, in
particular of those magazine assets that are underperforming compared with
previous periods. Most of these assets have been part of our Group for many
years and have contributed significantly to our profits over this time. However,
based on current contributions we have made a non-cash write down amounting to
£2.9 million.
This action has a considerable adverse effect on earnings per share which
reduced from 6.56p to 0.02p for the period. However, adjusted earnings per
share, which is calculated before the significant amortisation of goodwill and
intangible assets arising from acquisitions, declined by a much smaller amount
from 10.14p to 9.02p for the period.
The revenues of the Group continued to grow in the period, much of this growth
being achieved from organic development in our information and training
businesses. The Group made a number of acquisitions towards the end of the
period including Pendragon, the leading provider of data electronically on UK
pension law. Our information business has been augmented by our prior year
acquisition of Hollis, a publisher of databases for the marketing and PR
industry, and Beechwood, a publisher of databases for the healthcare industry.
We have always been committed to recruiting, motivating and retaining the best
people. We achieve this through a mixture of share ownership, options and reward
based pay. However, the current state of the UK stock market has resulted in a
serious reduction in the motivation derived from options we have already issued.
Therefore we are actively exploring new ways to keep our work force highly
motivated.
Our strategy has been to build sustainable positions in professional markets
through the ownership of top quality assets. We intend to continue to pursue
this strategy and invest in the growth of your Company, both through organic
development and acquisition. We have worked hard to build the current position
and are aware of the benefits and opportunities that derive in the current
economic climate from the strong balance sheet and excellent cash flow we have
created.
We remained judicious during the Internet boom and were not tempted by short
term or uneconomic investments in that area. Notwithstanding this, the demand
from our customers to receive information electronically is on the increase and
this is reflected in the number of our profitable products which deliver
information in this way.
In February 2002 we announced that Charles Brady had been appointed Chief
Executive of the Group. Charles is already demonstrating that he has the right
management and leadership skills to take the business forward. Charles took over
from Rory Conwell who stepped down from the position of Chief Executive for
personal reasons. I am pleased to say that Rory has been able to remain on the
Board with specific responsibility for the development and expansion of our
business information activities.
Charles has initiated a number of other changes to the Board. Basil Brookes has
been reappointed as Finance Director in place of Ahmed Zahedieh who remains as
Company Secretary. In addition, in July 2002, Stephen Broome was appointed
Managing Director of our Professional Training division and was invited to join
the Wilmington Board.
Your Board remains committed to the best practice in corporate governance as is
consistent with the Company's size and as is detailed in the Directors' Report.
In July 2001 we appointed Bernard Jolles as the third Non-Executive Director on
the Board.
We remain confident that we have a content base from which we can continue to
grow our existing assets in the long term. We are keen to repeat and exceed the
record we have established over the last ten years. Opportunities continue to
arise and our ungeared balance sheet and our considerable financial and
management resources add to our ability to translate these into value for our
shareholders.
Given current trading conditions we do not anticipate advertising revenues will
improve during the financial year to 30th June 2003. However, notwithstanding
this we expect to continue making progress with our Business Information and
Professional Training businesses towards our goal of long term growth.
The new financial year has opened with trading patterns that are broadly in line
with expectations.
The change in our year end should to some extent balance the uneven split in our
trading profits between the first and second six months. Nevertheless, profits
in the year ending 30th June 2003 will be more weighted to the second half of
the year.
I should like to thank all the other Executive and Non-Executive Directors for
another excellent performance throughout a very challenging year. The Board is
proposing a final dividend of 0.50p (making a total dividend for the period of
3.00p) to shareholders on the register at 27th September 2002.
Every year I emphasise that it is our management and employees who have built
Wilmington into a robust and dynamic business. I would like to thank them once
again for their commitment to the Company and their performance in a difficult
period.
Brian Gilbert
Chairman
16th September 2002
CHIEF EXECUTIVE'S REVIEW
Having been appointed Chief Executive in February of this year, I am delighted
to present my first review.
Wilmington is an information and communications group whose focus is on
professional, financial and media markets. Revenues originate from subscriptions
and copy sales, data sales and list rentals, advertising, professional education
and professional service fees. Wilmington remains committed throughout its
business to the ownership of intellectual property rights and content in its
principal markets. Its products include a number of leading brands such as
Waterlow and Central Law Training.
As announced in last year's Annual Report, we have changed our year end from
February 28th to June 30th. Therefore the current period figures are for 16
months whilst the comparatives cover the year to 28th February 2001.
Our results show that revenue has again risen to record levels. Profits in
Business Information and Professional Training have increased year on year
whilst the difficult economic climate has negatively impacted Magazine
Publishing resulting in an overall fall in profit before tax, interest and
amortisation on a year on year basis.
The ongoing difficult trading conditions for advertising and, in particular,
magazine publishing have led us to review the valuation of our portfolio of
magazine assets. Although certain properties have produced significant profits
over a number of years and still contribute to our overall profitability, we
believe it to be appropriate to write down the carrying value of the portfolio
by £2.9 million. Operationally, we are in the process of further restructuring
the Magazine Publishing business to maximise the return from our asset base.
During the period we were delighted to acquire three new business information
activities, Showcase, TMSS and a majority stake in Pendragon. All of these
acquisitions fit our business strategy. Details of their markets and activities
are included later in this review.
Although much revenue still derives from traditional hard copy publications, the
Group has increasingly focused its efforts on the extension of its brands in
markets where it holds a leading position. For example, our involvement in high
quality training through our subsidiary, Central Law Training, has enabled us to
capitalise on our strong position in legal and professional marketplaces through
the extensive additional contacts that this activity generates.
Wilmington has developed numerous income generating electronic initiatives. We
have an extensive range of Internet based applications for all our principal
markets. Usage of the Internet as a business-to-business medium has provided the
Group with an opportunity to leverage its relationships with business
communities by providing the appropriate content for their marketplaces. The
result is the generation of sustainable, profitable revenue streams. As reported
in previous periods, the development costs relating to our Internet initiatives
are written off when incurred.
The success of Wilmington has been founded on the entrepreneurial talents of
hard working people. At the core of our strategy remains the continuation of a
structure within which managers can manage autonomously whilst being highly
motivated to succeed.
During 2002, the composition of the Executive team on the Wilmington Board has
evolved. Stephen Broome, Managing Director of our Professional Training
business, joined the Board in July 2002. I have worked with Stephen for many
years and I am confident that we will benefit from his proven skills and
experience. My predecessor as Chief Executive, Rory Conwell, stepped down from
this position for personal reasons. Happily we still benefit from his advice and
experience as he has remained as an Executive Director with specific
responsibility for the development and expansion of our Business Information
activities. Having been on the Board of Wilmington since its foundation in 1995,
Ahmed Zahedieh retired as a director at the end of April 2002. Ahmed still acts
as Company Secretary and I would like to thank him for all his efforts over the
years. Basil Brookes, who has also been a Director since the creation of
Wilmington, has re-assumed the reins as Finance Director and I am sure he will
serve us well in that role.
I would now like to give a more detailed look at our business. Wilmington
comprises three major divisions:
- Business Information
- Professional Training
- Magazine Publishing
Financial information relating to the performance of each division is detailed
in note 1 below.
Business Information
Rory Conwell has main Board responsibilities for Wilmington Business Information
('WBI'), which is run on a day to day basis by its Managing Director, Michael
Harrington. WBI creates and sells value added information products to
business-to-business markets. Information is distributed through a variety of
media including printed directories, newsletters, compact discs, online
subscription products and electronic data feeds.
WBI has had a very satisfactory financial period with organic growth providing
most of its progress. The strength of existing brands allied to the acquisitions
which were completed towards the end of the period provide a platform for growth
in the coming years.
WBI has concentrated its activities in the professional, financial and media
markets and has a mix of businesses that provide consistent repeat revenue
streams with high margins. Principally located in offices in the South East of
England, WBI is committed to attracting and motivating high quality employees,
which it sees as the foundation of its business.
Business units within WBI are encouraged to develop strong brands in the markets
in which they operate and to create new information products from core data that
can be packaged in a variety of formats. The major units and brands within WBI
are as follows:
Professional markets
Waterlow is a leading brand providing both publishing products and information
services to lawyers, accountants and surveyors. Products range from directories
and electronic subscription products to value added services including company
formations, searches and property services.
Binleys is the brand name of the products and services of Beechwood House
Publishing, market leaders in the provision of contact information relating to
the NHS, GP's and pharmacists for the healthcare and pharmaceutical industries.
A majority stake in Pendragon Professional Information was acquired in June
2002. Pendragon provides an online service covering the legal and regulatory
aspects of the pensions industry.
Financial markets
Caritas Data provides a range of financial and 'Who's Who' information products
to fund managers and the City for the charity, housing, educational and
corporate markets.
ICP has created a substantial database of company profiles for emerging markets.
Its customers include credit agencies and credit insurers.
Media markets
RED publishes catalogue data on modern and classical music.
TMSS is a new acquisition which monitors the use of music in TV programmes for
rights reporting services.
PCR publishes a weekly newsletter identifying new film, TV and theatre
productions.
Hollis Publishing is the leading supplier of contact information for the PR,
marketing, sponsorship and corporate entertainment markets. Hollis has
successfully entered the entertainment services market with the acquisition of
Showcase, the leading business-to-business directory of services for the music
industry.
Abacus e-Media supplies content management solutions to government and
publishing markets.
Professional Training
Professional Training is managed by Stephen Broome, and operates principally
under the Central Law Training ('CLT') brand. Based in Sutton Coldfield, the
business primarily focuses on continuing professional development courses that
have become mandatory for all solicitors in Great Britain.
Professional Training has enjoyed record levels of revenue and profits over the
period under review with the membership client base continuing to grow. It is
currently investing in a number of new initiatives, including a new MBA course,
which are likely to produce returns towards the end of calendar year 2003 and
beyond.
During the period Wilmington acquired the remaining 19.4 per cent of CLT which
it did not previously own.
CLT has also expanded in related business areas including witness training,
through its subsidiary Bond Solon, international courses on trust management and
high quality conferencing and continues to expand its activities in Scotland.
Bond Solon, which was acquired in 2001, has delivered a sparkling performance.
Our conference division has continued to grow despite the events of September
11, 2001.
CLT has established ties with the Law Society in England and Wales and has also
developed relationships with a number of professional bodies including the
Society of Trust and Estate Practitioners and The Institute of Chartered
Secretaries and Administrators.
Its lecturers are specialists in their fields and include prominent members of
the legal profession. CLT develops events concentrating on product quality and
content. Most of CLT's courses are repeatable at least annually.
Magazine Publishing
Revenues in the Magazine Publishing division, which is managed by Nicholas
Miller, flow principally from advertising. As anticipated, we have seen intense
pressure on yields and consequently on profits. We have already implemented cost
reduction programmes to combat this shortfall in revenue and, since becoming
Chief Executive, I have initiated a strategic review of this business. We have
concluded that, in order to maximise our return on our assets, we need to create
a portfolio of fewer, larger and more focused product clusters.
The Magazine Publishing division is a portfolio of magazines and related
activities, targeting seven business-to-business sectors:
- Architecture, Construction and Design
- Industrial Technology
- Drinks and Luxury Goods
- Catering
- Healthcare
- Automotive
- Power and Energy
The division also provides third party direct marketing and circulation
management and fulfilment services.
Our intention is to further reorganise our product portfolio by product sector,
clustering activities where appropriate. This will be continued during the
current year. Although this reorganisation will not, of itself, automatically
improve revenue, we do believe that it will bring further benefits in terms of
costs and allow us to improve further our service to the markets we target. In
addition, future growth of the business will be enabled.
The Future
The objective of Wilmington is to grow and to grow profitably. Notwithstanding
that trading conditions are difficult, I am confident that we can continue to
make progress towards our goal of long term profit growth. I believe that our
existing base, including an ungeared balance sheet, gives the platform from
which to achieve this.
Wilmington has a consistent track record of performance and delivery. It has
always been profitable and produced an excellent cash flow. Its asset base is
improving and remedial action is being taken where necessary. The strength of
our balance sheet, underlying cash flow and existing bank facilities means that
we can, and will, pursue growth not only through organic developments but also
through acquisition. We envisage that realistically priced opportunities will
present themselves in the foreseeable future within the sectors we are
targeting.
It is my intention for us to create an exciting and highly focused business of
which shareholders and employees will be proud.
In closing, I should like to thank our Chairman and fellow Executive and
Non-Executive Directors, our business managers and our many employees for all
their enthusiasm, hard work and success. Our people remain our greatest assets
and their efforts are appreciated.
Charles J Brady
Chief Executive
16th September 2002
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 30TH JUNE 2002
Sixteen months Twelve months
ended ended
30th June 28th February
2002 2001
Notes Continuing Acquisitions Total
operations
£'000 £'000 £'000 £'000
(As restated)
Turnover 1 and 2 102,815 283 103,098 72,769
Cost of sales (35,754) (88) (35,842) (25,026)
Gross profit 67,061 195 67,256 47,743
Operating expenses 3 (54,644) (159) (54,803) (35,630)
Amortisation of goodwill and
intangible assets - recurring (4,521) - (4,521) (2,936)
- non-recurring (2,900) - (2,900) -
Total operating expenses (62,065) (159) (62,224) (38,566)
Operating profit 4,996 36 5,032 9,177
Interest receivable and similar income 85 203
Interest payable and similar charges (383) (299)
Profit on ordinary activities before
taxation 4,734 9,081
Taxation (3,877) (3,222)
Profit on ordinary activities after
taxation 857 5,859
Minority interests (841) (566)
Profit for the financial period and
attributable to shareholders 16 5,293
Dividend paid or proposed (2,455) (2,030)
Retained (loss)/profit for the period (2,439) 3,263
Earnings per ordinary share 5 0.02p 6.56p
Diluted earnings per ordinary share 5 0.02p 6.47p
Adjusted earnings per ordinary share 5 9.02p 10.14p
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE PERIOD ENDED 30TH JUNE 2002
Sixteen months Twelve months
ended ended
30th June 28th February
2002 2001
£'000 £'000
(As restated)
Profit for the period 16 5,293
Prior year adjustment (853) -
Total gains and losses recognised since last annual report (837) 5,293
BALANCE SHEETS
AS AT 30TH JUNE 2002
Group Company
30th June 28th February 30th June 28th February
2002 2001 2002 2001
£'000 £'000 £'000 £'000
(As restated) (As restated)
Fixed assets
Goodwill and intangible assets 64,410 52,760 - -
Tangible assets 10,540 11,463 2,160 2,294
Investments - - 47,983 37,866
74,950 64,223 50,143 40,160
Current assets
Stock and work in progress 2,237 1,540 - -
Debtors 15,976 18,489 21,544 21,449
Cash at bank and in hand 1,640 1,833 - 795
19,853 21,862 21,544 22,244
Creditors: Amounts falling due
within one year (22,739) (23,691) (5,781) (11,964)
Net current (liabilities)/assets (2,886) (1,829) 15,763 10,280
Total assets less current liabilities 72,064 62,394 65,906 50,440
Creditors: Amounts falling due
after more than one year (11,895) (2,094) (5,700) -
Provision for liabilities and charges (794) (853) (85) (91)
Net assets 59,375 59,447 60,121 50,349
Capital and reserves
Called-up share capital 4,149 4,057 4,149 4,057
Share premium account 42,091 39,792 42,091 39,792
Other reserves 949 949 - -
Profit and loss account 11,167 13,606 13,881 6,500
Equity Shareholders' funds 58,356 58,404 60,121 50,349
Minority interests 1,019 1,043 - -
59,375 59,447 60,121 50,349
CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD ENDED 30TH JUNE 2002
Sixteen months Twelve months
ended ended
30th June 28th February
2002 2001
Notes £'000 £'000
(As restated)
Net cash inflow from operating activities 6(a) 16,474 11,361
Returns on investments and servicing of finance
Interest received 85 203
Interest and similar charges paid (383) (790)
Dividend paid to minority shareholders in subsidiary (1,342) -
undertakings
Net cash outflow (1,640) (587)
Taxation
Corporation tax paid (4,839) (3,235)
Capital expenditure and financial investment
Purchase of goodwill and intangible fixed assets (2,315) (1,547)
Purchase of tangible fixed assets (2,947) (5,375)
Sale of tangible fixed assets 1,634 792
Net cash outflow (3,628) (6,130)
Acquisitions
Purchase of subsidiary undertakings 4 (3,445) (3,313)
Purchase of businesses (1,028) -
(4,473) (3,313)
Equity dividends paid (4,065) (1,521)
Cash outflow before financing (2,171) (3,425)
Financing
Issue of shares 312 28,727
Repayment of bank loan - (24,000)
Repayment of loan notes (799) -
(487) 4,727
(Decrease)/increase in cash in the year 6(b) (2,658) 1,302
Reconciliation of net cash flow to movement in net cash/(debt) 6(b)
(Decrease)/increase in cash in the year (2,658) 1,302
Cash outflow from decrease in net debt - 24,000
Change in net (debt)/cash resulting from cash flow (2,658) 25,302
Cash arising on acquisitions and disposals 1,291 885
Net cash/(debt) brought forward 1,512 (24,675)
Net cash carried forward 145 1,512
NOTES TO THE ACCOUNTS
1. Segmental information
Sixteen months Twelve months
to 30th June to 28th February
2002 2001
£'000 £'000
Turnover:
Business Information 26,885 17,791
Magazine Publishing 51,301 37,388
Professional Training 24,912 17,590
103,098 72,769
Sixteen months Twelve months
to 30th June to 28th February
2002 2001
£'000 £'000
Profit before taxation:
Business Information 4,774 4,160
Magazine Publishing 1,686 3,737
Professional Training 5,993 4,216
Operating profit before amortisation 12,453 12,113
Less: amortisation (7,421) (2,936)
5,032 9,177
Less: interest (298) (96)
4,734 9,081
The amortisation charge is split between Business Information - £1077,000 (2001:
£458,000), Magazine Publishing - £3,954,000 (2001:£1,026,000) and Professional
Training - £2,390,000 (2001: £1,452,000).
30th June 28th February
2002 2001
£'000 £'000
(As restated)
Net assets:
Business Information 14,235 15,554
Magazine Publishing 13,194 21,445
Professional Training 31,946 22,448
59,375 59,447
2. Turnover
The geographical analysis of turnover is as follows:
Sixteen months Twelve months
to 30th June to 28th February
2002 2001
£'000 £'000
United Kingdom 85,633 60,388
Overseas 17,465 12,381
103,098 72,769
3. Operating expenses
Sixteen months Twelve months
to 30th June to 28th February
2002 2001
£'000 £'000
Distribution and selling costs 29,936 21,852
Administrative expenses 24,867 13,778
54,803 35,630
4. Acquisitions
In November 2001, a 75 per cent. owned subsidiary of the Group acquired 100 per
cent. of the share capital of Showcase Publications Limited. In June 2002 the
Group acquired 100 per cent. of the share capital of TMSS Limited and 50.01 per
cent. of the share capital of Pendragon Professional Information Limited.
Assets and liabilities of subsidiary undertakings acquired:
Fair value
Book value adjustments Fair value
£'000 £'000 £'000
Tangible fixed assets 32 - 32
Debtors 631 - 631
Cash 1,291 - 1,291
Creditors due within one year (1,081) - (1,081)
873 - 873
Less: minority interests (237)
636
Goodwill arising on consolidation 2,809
Consideration 3,445
Satisfied by:
Cash 3,445
All of these acquisitions were accounted for using the acquisition method of
accounting from the date of acquisition. No adjustments were required to the
book values of the net assets acquired to reflect their fair values and the
application of group policies.
Minority interests acquired
During the period the Company acquired the remaining 19.4 per cent of Central
Law Group Limited for a total consideration of £9.9 million including deferred
consideration of £5.7 million payable in July 2003, giving rise to goodwill on
consolidation of £10.5 million.
5. Earnings per ordinary share
Sixteen months Twelve months
ended ended
30th June 28th February
2002 2001
The calculation of earnings per share is based
on profit after taxation and minority interests of £16,000 £5,293,000
and on the average number of ordinary
shares in issue during the period of 81,492,397 80,734,060
and after adjusting for 266,880 outstanding share options (2001:
1073,227), on the diluted average number of ordinary shares during
the period of 81,759,277 81,807,287
Earnings per ordinary share 0.02p 6.56p
Diluted earnings per ordinary share 0.02p 6.47p
Adjusted earnings per ordinary share 9.02p 10.14p
In order to show the results on a comparable basis to prior years before
adoption of Financial Reporting Standard 10, an adjusted earnings per ordinary
share has been calculated using an adjusted profit after taxation and minority
interests but before amortisation of goodwill and intangible assets of
£7,352,000 (2001: £8,186,000).
6. Notes to the consolidated cash flow statement
(a) Reconciliation of operating profit to net cash inflow from operating activities:
Sixteen months Twelve months
ended ended
30th June 28th February
2002 2001
£'000 £'000
Operating profit 5,032 9,177
Depreciation of tangible fixed assets 2,547 1,648
Amortisation of goodwill and intangible fixed assets 7,421 2,936
Profit on sale of tangible fixed assets (271) (347)
(Increase) in stock and work in progress (697) (737)
Decrease/(increase) in debtors 3,144 (2,546)
(Decrease)/increase in creditors (702) 1,230
Net cash inflow from operating activities 16,474 11,361
(b) Analysis of movement in cash/(debt)
Arising on
At 1st March acquisitions At 30th June
2001 Cashflow and disposals 2002
£'000 £'000 £'000 £'000
Cash at bank and in hand 1,833 (1,484) 1,291 1,640
Bank overdraft (321) (1,174) - (1,495)
1,512 (2,658) 1,291 145
7. Nature of the financial information
The foregoing financial information does not amount to full accounts within the
meaning of Section 240 of Companies Act 1985. The financial information has
been extracted from the Group's Annual Report and Accounts for the period ended
30th June 2002 on which the auditors have been given an unqualified report.
Copies of the Annual Report and Accounts will be posted to shareholders shortly
and will be available from the Company's registered office at Paulton House, 8
Shepherdess Walk, London, N1 7LB.
8. Pro-forma five year Financial Summary
Years ended 30th June
2002 2001 2000 1999 1998
£'m £'m £'m £'m £'m
Consolidated Profit and Loss Accounts
Turnover 78.6 75.3 61.6 45.4 41.1
Cost of sales (26.9) (26.1) (21.3) (14.0) (13.3)
Gross profit 51.7 49.2 40.3 31.4 27.8
Operating expenses (41.5) (37.7) (30.5) (23.5) (21.4)
Operating profit 10.2 11.5 9.8 7.9 6.4
Amortisation of goodwill and
intangible assets (6.4) (3.1) (2.5) (1.0) (0.8)
Profit before interest and taxation 3.8 8.4 7.3 6.9 5.6
Net interest (payable) (0.3) (0.1) (1.0) (0.1) (0.1)
Profit on ordinary activities before taxation 3.5 8.3 6.3 6.8 5.5
Taxation (2.9) (3.3) (2.4) (2.3) (1.7)
Profit on ordinary activities after taxation 0.6 5.0 3.9 4.5 3.8
Minority interests (0.7) (0.8) (0.5) (0.1) (0.2)
(Loss)/profit for the financial year attributable
to shareholder (0.1) 4.2 3.4 4.4 3.6
Dividends (2.4) (2.0) (1.5) (1.2) (1.0)
(Accumulated loss)/retained profit for the year (2.5) 2.2 1.9 3.2 2.6
Earnings per ordinary share (pence) (0.06) 5.17 4.54 6.19 5.03
Diluted earnings per ordinary share (pence) (0.06) 5.12 4.49 6.12 4.99
Adjusted earnings per ordinary share (pence) 7.68 8.92 7.96 7.60 6.13
Consolidated Balance Sheets
Goodwill and intangible fixed assets 64.4 54.1 45.7 42.2 14.6
Tangible fixed assets 10.6 11.6 8.1 7.3 5.8
Net current (liabilities)/assets (2.9) (2.9) 1.8 (5.9) (2.3)
Creditors due after one year (11.9) (2.1) - (20.0) -
Provision for liabilities and charges (0.8) (0.9) (0.5) (0.4) (0.3)
Net assets 59.4 59.8 55.1 23.2 17.8
Called-up share capital 4.2 4.1 4.0 3.6 3.6
Share premium account 42.1 39.9 37.8 8.7 6.6
Other reserves 0.9 0.9 0.9 0.9 0.9
Profit and loss account 11.2 13.7 11.5 9.6 6.4
Equity shareholders' funds 58.4 58.6 54.2 22.8 17.5
Minority interests 1.0 1.2 0.9 0.4 0.3
59.4 59.8 55.1 23.2 17.8
The above pro-forma is based on information extracted from the Company's annual
accounts as adjusted using information from its management accounts to reflect
the change in the Company's accounting reference date to 30th June.
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 3rd January 2025
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