Final Results - Year Ended 29 January 2000

Barr(A.G.) PLC 29 March 2000 A.G. BARR p.l.c. Preliminary Results For the year to 29th January 2000 A.G. Barr p.l.c., the Scottish based manufacturer of soft drinks including the popular Irn-Bru, Tizer and Orangina brands, announces its preliminary results today: Key Points: * Turnover up 3% to £110 million (1999: £106.9m) * Profit before tax £12,096k (1999: £11,991k) Underlying profit up by £718k or 6.2%, if adjustment is made for two abnormal factors of a property sale and redemption of Bank loan. * Final dividend of 12.25p, total for the year 19.60p a 7.4% increase over the previous year. * Irn-Bru volume performance increased by 8% overall across the UK. * Promotional investment over the Festive Season showing positive results with brands recording a year-on-year increase in market share in December. Commenting on the results Robin Barr, Executive Chairman said: 'Given the market place within which we operate and the competition from our major competitors, progress in terms of market share within the UK is likely to remain a hard fought prize. We remain convinced, however, that the continuing investment in our brands will produce for A.G. Barr the optimum long-term growth in relation to both turnover and profits.' For further information: A.G. Barr Robin Barr, Chairman or Iain Greenock, Finance Director Tel: 0141 554 1899 Buchanan Communications: Tim Thompson/Nicola Cronk Tel: 020 7466 5000 Chairman's Statement Review of Results Profit on ordinary activities before taxation for the year to 29th January 2000 was £12.1 million compared with £12.0 million for the previous year. There was however an underlying improvement in profit of £718,000 or 6.2% if adjustment is made for two abnormal factors - comprising profits of £380,000 on the sale of properties in the last financial year and a charge of £233,000 related to the early repayment of a bank loan in the year to January 2000. Turnover for year to end January 2000 was £110 million, an increase over the previous year of 3%. Retailers' Own labels now account for only 5% of total turnover and our continuing focus is on Barr brands where UK sales were up 4% over the twelve months. Sales were disappointing during the three months to the end of October reflecting the fact that the best of the summer weather in 1999 was in the South of the UK which remains - proportionately - our less significant trading area. The last three months of the financial year saw a better trend in line with promotional activity to which I refer below. Our manufacturing costs continued to reflect, during the second half of the year, the lower sugar prices which had resulted from the strengthening of sterling during the first six months and this advantage was only modestly reduced by firmer prices for PET bottles. Our overall margins were however adversely affected during the last three months of our financial year by the cost of promoting our brands during what has increasingly become a particularly competitive market place over each Festive Season. The promotional investment, although impacting on the profits for the year, showed positive results since our brands enjoyed a satisfactory year-on-year increase in market share during the month of December and particularly in England where the development of Irn-Bru remains a prime objective. Over the full financial year we achieved an encouraging volume performance across the UK from our main brand Irn- Bru which increased by 8% overall and by no less than 16% in England/Wales. This achievement should provide a firm base for further progress in the current year. Shareholders will be pleased to note the substantial improvement which has been achieved in our Balance Sheet at the end of this financial year. Our strong cash flow enabled us to make early repayment of our term loan and this has led to a significant reduction in creditors due after more than one year but with only a modest reduction in net current assets. Earnings per share on our issued share capital at 44.46p were only marginally ahead of the 44.11p achieved in the previous year but, bearing in mind the underlying improvement in this year's profits to which I referred earlier, your Directors are able to recommend a final dividend of 12.25p per share making a total dividend of 19.60p for the year to end January 2000. This would represent an increase of 7.4% over the total dividend paid for the previous year. Personnel I am pleased to take this annual opportunity, on your behalf, to thank each of our employees for the contribution which they have made to the results which we have announced. Despite the modest financial improvement over the previous year, the Company's performance reflects a high level of skill and enthusiasm from our employees within what remains a very competitive market place. In particular I can confirm that, as a result of the comprehensive preparatory work which was carried out in advance of the Millennium, we did not experience any business problems as we entered the year 2000. The first offer to employees under our 1995 Savings Related Share Option Scheme reaches the end of its five year lifespan on 1st June 2000 and it is your Board's current intention to introduce a new offer at that time so that initial subscribers can continue to invest in the Scheme. I believe that this is an excellent method of continuing to align the long term interests of employees with those of the Company and shareholders will be interested to note that as a result of the offers made in 1995 and 1997 there are currently 369 employees participating in the Scheme which is approaching half of the eligible workforce. Trading Outlook Turnover for the first seven weeks of the new financial year has been 4% more than for the same period last year. The strength of sterling has so far continued to keep the price of sugar below that paid during the first half of last year. Our major packaging costs, including cans, have to date remained stable but an increase in PET bottle prices will occur this Spring. The position with regard to our franchise for Orangina has, at least for the immediate future, become more certain as a result of the decision of the French government last November to finally block a proposed take- over of the Orangina business by The Coca-Cola Company. We are hopeful that Messrs Pernod Ricard, the owners of Orangina, will now retain and develop the business and that we can continue to play our part in that development through the franchise which we have held for Great Britain since 1995. KLP Soft Drinks, who commenced their operations in Moscow in the summer of 1998 based on a franchise for two of our brands, continued to build their sales and distribution throughout our last financial year and are looking forward to further expansion this year. Naturally trading margins in Russia remain particularly tight as a consequence of the substantial devaluation of the currency since the financial crisis in August 1998. Given the market place within which we operate and the competition from our major competitors, progress in terms of market share within the UK is likely to remain a hard fought prize. We remain convinced however that the continuing investment in our brands will produce for A.G.Barr the optimum long-term growth in relation to both turnover and profits. A.G. BARR p.l.c. and its Subsidiary Companies Consolidated profit and loss account for the year ended 29 January, 2000 The following are the unaudited results for the 12 months to 29 January, 2000. The Board recommends the payment of a final dividend of 12.25p per share which if approved by the shareholders will be posted on 6 June, 2000. The total distribution proposed for the year amounts to 19.60p per share (1999 - 18.25p) Year Year ended ended 29.01.00 30.01.99 £000 £000 Turnover 109,995 106,892 ======= ======= Profit on ordinary activities before interest 12,210 12,303 Interest 114 312 ------ -------- Profit on ordinary activities before taxation 12,096 11,991 Tax on profit on ordinary activities 3,451 3,415 ------ -------- Profit on ordinary activities after taxation 8,645 8,576 ====== ======== Earnings per share on issued share capital 44.46p 44.11p ===== ====== Basic earnings per share 45.87p 45.55p ===== ===== Fully diluted earnings per share 44.31p 43.88p ===== ===== Dividend per share 19.60p 18.25p ===== ===== Dividend (£000) 3,813 3,545 ===== ===== All gains and losses as described in Financial Reporting Standard 3 (27) have been included in the profit for the year. Note: The Earnings per share for the year to 30 January, 1999 have been restated to reflect the increase in issued share capital during the year resulting from a share option exercise. Record date: 08 May, 2000 Ex-div date : 02 May, 2000 A.G. BARR p.l.c. and its Subsidiary Companies Balance Sheets as at 29 January, 2000 GROUP COMPANY 2000 1999 2000 1999 £000 £000 £000 £000 Fixed assets Tangible assets 40,384 40,956 40,149 40,791 Investment in 100 100 100 100 subsidiaries and associated undertakings ------ ------ ------ ------ 40,484 41,056 40,249 40,891 Current assets Stocks 9,027 9,596 8,998 9,584 Debtors 14,750 16,741 14,752 16,750 Investment 2,228 1,745 2,228 1,745 Cash at bank 9,762 9,261 9,762 9,261 ------ ----- ------ ------ 35,767 37,343 35,740 37,340 Creditors: Due within 23,025 23,758 23,419 24,136 one year ------ ------ ------ ------ Net current assets 12,742 13,585 12,321 13,204 ------ ------ ------ ------ Total assets less 53,226 54,641 52,570 54,095 current liabilities Creditors: Due after more than one year Loans - 5,000 - 5,000 Hire purchase creditor 304 1,456 304 1,456 ------ ------ ------- ------- 304 6,456 304 6,456 ------ ------ ------- -------- Provisions for liabilities and charges Deferred credit 719 771 719 771 Deferred taxation 1,502 1,621 1,502 1,613 ------ ------ ------ ------ 2,221 2,392 2,221 2,384 ====== ====== ====== ====== 2,525 8,848 2,525 8,840 50,701 45,793 50,045 45,255 ====== ====== ======= ====== Capital and reserves Called up share capital 4,861 4,856 4,861 4,856 Share premium reserve 859 788 859 788 Profit and loss account 44,981 40,149 44,325 39,611 ------ ------ ------ ------ 50,701 45,793 50,045 45,255 ====== ======= ====== ======= A.G. BARR p.l.c. and its Subsidiary Companies Cash Flow Statement for the year ended 29 January, 2000 2000 1999 £000 £000 £000 £000 Net cash inflow from 17,675 15,356 operating activities Returns on investments and servicing of finance Interest received 207 420 Interest paid (152) (474) Interest element of hire (169) (258) purchase paid ----- ------ Net cash outflow from returns on investments and (114) (312) servicing of finance Taxation Corporation tax paid (3,229) (4,906) Capital expenditure and financial investment Purchase of tangible fixed (4,679) (6,267) assets Sale of tangible fixed assets 525 1,109 ------- ------ (4,154) (5,158) ------- ------- 10,178 4,980 Dividends paid (3,616) (4,658) ------- -------- 6,562 322 Financing Issue of share capital 76 75 Capital element of hire purchase repaid (1,061) (977) Loans repaid (5,053) (105) ------- -------- (6,038) (1,007) -------- -------- Increase/(Decrease) in cash 524 (685) ======== =========

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