Interim Results
Barr(A.G.) PLC
26 September 2000
A G BARR p.l.c.
Interim Results
For the 6 months ended 29 July 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 interim results today.
Key Points
* Profit before tax for the reported period was £7.69m
(1999: £8.23m) a decrease due to adverse weather during
July affecting sales.
* UK sales of Barr brands up by 2.5%.
* Barr brands achieved an increase in market share
within the total UK carbonates market, with leading
brand, IRN-BRU, achieving a volume increase of just under
6% compared with the same period last year.
* Interim Dividend of 7.35p in respect of the year to
27 January 2001.
* An improvement in sales and profit performance
during August.
Commenting on the results, Robin Barr, the Executive
Chairman, said:
'Despite this half year's results having been adversely
affected by the disappointing summer weather in the UK,
we continue to see a successful long-term future for our
company based on its portfolio of brands and our ongoing
investment therein.'
For further information, contact:
A G Barr:
Robin Barr, Chairman OR 0141 554 1899
Iain Greenock, Financial Director
Buchanan Communications:
Tim Thompson / Nicola Cronk 020 7466 5000
CHAIRMAN'S STATEMENT
Profit on ordinary activities before taxation for the 6
months to 29 July, 2000 was £7,694,000 compared with
£8,229,000 for the same period last year. Profits for the
first five months had been running at the same level as
last year but adverse weather caused a decline in July
sales.
Margins during the half year were slightly affected
through higher year-on-year prices for PET bottles
outweighing a reduction in sugar costs arising from the
continued strength of Sterling against the Euro.
Turnover for the 6 months to July 2000 was £58.2 million
which was similar to the comparable period last year. UK
sales of Barr brands were in fact up by 2=% but sales of
Retailers' Own Labels were substantially down reflecting
the cessation of supply of dilutables to this market
sector. The year-on-year sales increase of Barr brands
in the UK had been running at over 5% up to the end of
June but the weather in July - particularly in England -
was very disappointing and this of course had an
inevitable effect on the whole of the soft drinks
industry.
Despite the modest advance across the full half year in
the turnover of Barr brands in the UK, I am pleased to be
able to report that an increase in market share was
achieved within the total UK carbonates market due
largely to the performance of our leading brand IRN-BRU
which achieved a volume increase of just under 6%
compared with the first half of last year.
Your Directors have declared an interim dividend of 7.35p
per share payable on 27 October, 2000 in respect of the
year to 27 January, 2001. This is the same rate of
interim dividend as was paid last year.
Total turnover during the six weeks subsequent to 29 July
has been 3=% up compared with the same period last year.
Barr brands in the UK have been up 4% while Retailers'
Own Labels have been almost level. This improvement in
sales performance during August has enabled us to recover
the year-on-year shortfall in cumulative profit which had
occurred at the half year end.
The strength of Sterling against the Euro continues, so
far, to maintain the price of sugar at historically
advantageous levels but we do face an increase in PET
bottle costs this autumn. Fortunately our ongoing work
on bottle weight reduction should enable us to counter a
substantial part of the increase in the basic PET price.
The recent fuel blockades were thankfully terminated
before any major difficulties affected our operations but
the crisis did create some short-term disruption in the
buying patterns of consumers.
Despite this half year's results having been adversely
affected by the disappointing summer weather in the UK,
we continue to see a successful long-term future for our
company based on its portfolio of brands and our ongoing
investment therein.
W. R. G. Barr
26 September 2000
Consolidated Profit and Loss Account
Unaudited results for the 6 months ended 29 July, 2000
6 months 6 months Year
ended ended ended
29.July 31.July 29.January
2000 1999 2000
£000 £000 £000
Turnover (note 2) 58,162 58,311 109,995
====== ====== =======
Profit on ordinary
activities before interest 7,623 8,334 12,210
Interest (71) 105 114
----- ------ -------
Profit on ordinary
activities before taxation 7,694 8,229 12,096
Taxation (note 3) 2,270 2,310 3,451
----- ------ -------
Profit on ordinary
activities after taxation 5,424 5,919 8,645
===== ====== =======
Earnings per share on issued
share capital (note 4) 27.90p 30.44p 44.46p
====== ====== =======
Basic earnings per share 28.79p 31.61p 45.87p
===== ====== =======
Fully diluted earnings per 27.66p 30.63p 44.31p
share ====== ====== =======
Dividend per share 7.35p 7.35p 19.60p
===== ====== ========
Dividend (£000) 1,429 1,429 3,813
===== ====== ========
Balance Sheet as at 29 July,2000
As at As at As at 29
29 July 31 July January
2000 1999 2000
£000 £000 £000
Fixed assets
Tangible assets (note 5) 38,580 40,580 40,384
Investment in associated 100 100 100
undertaking ------ ------ ------
38,680 40,680 40,484
Current assets
Stocks 10,658 9,799 9,027
Debtors 22,781 22,031 14,750
Investment 2,050 2,128 2,228
Cash at bank 7,307 5,442 9,762
------ ------ ------
42,796 39,400 35,767
Creditors: Due within one 24,738 26,579 23,025
year ------ ------ ------
Net current assets 18,058 12,821 12,742
------ ------ ------
Total assets less current 56,738 53,501 53,226
liabilities
Creditors: Due after more
than one year
Hire purchase creditor - 892 304
- 892 304
Provisions for liabilities
and charges
Deferred credit 693 744 719
Deferred taxation 1,349 1,506 1,502
------ ------ ------
2,042 2,250 2,221
------ ------ ------
2,042 3,142 2,525
------ ------ ------
54,696 50,359 50,701
====== ====== ======
Capital and reserves
Called up share capital 4,861 4,861 4,861
Share premium account 859 859 859
Profit and loss account 48,976 44,639 44,981
------ ------ ------
54,696 50,359 50,701
====== ====== ======
Cash Flow Statement for the
6 months ended 29 July, 2000
6 months 6 months Year
ended ended ended 29
29 July 31 July January
2000 1999 2000
£000 £000 £000
Net cash inflow from
operating activities(note 1) 3,831 6,604 17,675
Returns on investment and
servicing of finance
Interest received 128 87 207
Interest paid (7) (91) (152)
Interest element of hire (50) (101) (169)
purchase paid ------ ----- ------
71 (105) (114)
Taxation
Corporation tax paid (1,062) - (3,229)
Capital expenditure and
financial investment
Payments for tangible fixed
assets (2,444) (2,714) (4,679)
Sale of tangible fixed assets 105 90 525
------- ------- -------
(2,339) (2,624) (4,154)
Dividends paid (2,382) (2,187) (3,616)
------- ------- ------
(1,881) 1,688 6,562
Financing
Issue of share capital - 76 76
Capital element of hire (564) (518) (1,061)
purchase repaid
Loans repaid - (5,053) (5,053)
------- ------- -------
(564) (5,495) (6,038)
------- ------- -------
(Decrease)/increase in cash (2,445) (3,807) 524
------- ------- -------
Notes to the Cash Flow Statement
1. Net cash inflow from operating
activities
6 months 6 months Year
ended ended ended
29 July 31 July 29 January
2000 1999 2000
£000 £000 £000
Operating profit 7,623 8,334 12,210
Depreciation 2,785 2,657 5,405
Loss/(gain) on sale of
tangible assets 62 14 (242)
Government grants written
back (26) (27) (52)
(Increase)/decrease in
stocks (1,631) (203) 569
(Increase)/decrease in
debtors (6,735) (5,493) 1,478
Decrease/(increase) in
investment 178 73 (483)
Increase/(decrease) in
creditors 1,575 1,249 (1,217)
Pension provision release - - 7
------ ------ -------
3,831 6,604 17,675
====== ====== =======
2.Reconciliation of net cash
flow to movement in net
funds
(Decrease)/increase in cash
in the period (2,445) (3,807) 524
Cash outflow from decrease
in debt and leasing finance 564 5,571 6,113
------- ------- ------
Movement in net funds in the
period (1,881) 1,764 6,637
Net funds at 29 January, 2000 8,296 1,659 1,659
------- ------ ------
Net funds at 29 July, 2000 6,415 3,423 8,296
======= ====== ======
3. Analysis of changes in
net funds
At 29 At
January Cash 29 July
2000 Flows 2000
£000 £000 £000
Cash in hand and at bank 9,762 (2,455) 7,307
Overdrafts (10) 10 -
Hire purchase creditor (1,456) 564 (892)
-------- ------ -----
Total 8,296 (1,881) 6,415
======== ======= ======
Notes to the Accounts
1. Non-statutory accounts
These interim financial statements, which have been
prepared on the basis of the accounting policies set out
in the company's 2000 published accounts, do not
constitute statutory accounts and are unaudited.
Comparative figures for the year ended 29 January, 2000
have been extracted from the statutory accounts of the
company on which the auditors gave an unqualified report
and which have been filed with the Registrar of
Companies.
A copy of this announcement is distributed to all
registered shareholders of the company and is available
for members of the public upon application to the Company
Secretary at 1306 Gallowgate, Glasgow G31 4DS.
2. Turnover
The figure for turnover includes exports of £305,000
(1999 - £471,000 ; Year 2000 - £778,000) which are not
considered sufficiently significant to warrant allocation
to the geographical markets involved.
3. Taxation
Corporation tax is provided at the anticipated rate of
taxation for the group's current financial period.
4. Earnings per share
The calculation is based on the group profit after
taxation and the number of ordinary shares of 25p each in
issue at 29 July, 2000.
5. Movement in tangible fixed assets
6 months 6 months Year
ended ended Ended
29 July 31 July 29 January
2000 1999 2000
£000 £000 £000
Beginning of period 40,384 40,956 40,956
Capital additions 1,148 2,385 5,116
Disposals (167) (104) (283)
Depreciation (2,785) (2,657) (5,405)
------- ------- -------
End of period 38,580 40,580 40,384
======= ======= ========