Final Results

Fuller,Smith&Turner PLC 08 June 2007 STRICTLY EMBARGOED UNTIL 7AM FRIDAY 8 JUNE 2007 FULLER, SMITH & TURNER P.L.C. Financial results for the 52 weeks ended 31 March 2007 Reported under International Financial Reporting Standards (IFRS) Financial Highlights â€¢ Revenue up 23% to Â£178.2 million (2006: Â£145.1 million) â€¢ Operating profits up 31% to Â£29.4m (2006: Â£22.4m) â€¢ Adjusted profits(1) up 23% to Â£22.1 million (2006: Â£17.9 million) â€¢ Exceptional profits of Â£20.1 million (2006: loss of Â£2.6 million) â€¢ Profits before tax up 176% to Â£42.3 million (2006: Â£15.3 million) â€¢ EBITDA(2) up 27% to Â£40.7 million (2006: Â£32.1 million) â€¢ Adjusted earnings per share(3) up 26% to 68.94p (2006: 54.67p) â€¢ Basic earnings per share(4) up 181% to 130.34p (2006: 46.40p) â€¢ Proposed final dividend per share(4) increased 15% to 16.25p (2006: 14.12p) â€¢ Proposed five for two share split to rebase share price and enhance liquidity Corporate Progress â€¢ All areas of the business have performed well â€¢ Managed Pubs profits up 41%; uninvested like for like sales up 6.7% â€¢ Tenanted Inns profits up 40% â€¢ Beer Company profits up 12% â€¢ Interest costs up Â£3.2 million â€¢ Two hotels sold for Â£35.6 million â€¢ Eight new pubs acquired during the year (1) Adjusted profit is the profit before tax excluding exceptional items. (2) Pre-exceptional earnings before interest, tax, depreciation and amortisation. (3) Calculated using adjusted profits after tax and the same weighted average number of shares as for the basic earnings per share and using a Â£1 ordinary share. (4) Calculated on a Â£1 ordinary share. Commenting on the results, Anthony Fuller, Chairman of Fuller's, said: "It has been an exceptional year, boosted by the addition of a full year's contribution from the Gales business, the profits generated from the sale of two hotels, and strong underlying growth. This year also saw Fuller's become London's last remaining traditional brewer." "The current financial year has started well and is in line with expectations. With new acquisitions, continuing investment in our estate, and the quality of our award-winning premium brands, the Board is confident of the prospects for the continued success of the group." - Ends - For further information, please contact: Fuller Smith & Turner P.L.C. Press Office 020 8996 2175/2198/2048 Mobile 07831 299801/ 07748 657854 E-mail: pr@fullers.co.uk Michael Turner, Chief Executive: Press 020 8996 2048 Paul Clarke, Finance Director: Analysts 020 8996 2048 Merlin 020 7653 6620 Paul Downes 07900 244 888 (mobile) Vanessa Maydon 07802 961 902 (mobile) Anja Kharlamova 07887 884 788 (mobile) Notes to Editors For an official photo please e-mail photo@fullers.co.uk and one will automatically be sent by return on receipt of your e-mail. Copies of this statement, the Preliminary Statement and results presentation will be available on the Company's website, www.fullers.co.uk. Attached: Chairman's Statement Financial Highlights Unaudited Group Income Statement Unaudited Group Balance Sheet Unaudited Group Cash Flow Statement Other Unaudited Group Primary Statements Notes to the Accounts FULLER, SMITH & TURNER P.L.C. PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 31 MARCH 2007 CHAIRMAN'S STATEMENT Whatever You Do, Take Pride In my last year as Chairman, I am delighted to report that it has been an outstanding year for the Group with profit growth in all areas of the business. In addition we have successfully integrated the George Gale & Co. Ltd (Gales) business acquired in December 2005 and have achieved our predicted synergies. Operating profits have grown by 31% to Â£29.4m (2006: Â£22.4m). Our adjusted (pre-exceptional) profits have increased by 23% to Â£22.1 million (2006: Â£17.9 million) on revenue up 23% to Â£178.2 million (2006: Â£145.1 million). Tax has been provided for at an effective rate of 30.4% (2006: 31.9%) on adjusted profits. Pre-exceptional earnings before interest, tax, depreciation and amortisation (EBITDA) rose 27% to Â£40.7 million (2006: Â£32.1 million). While our recent growth is due, in part, to the additional business from the acquisition of Gales in December 2005, I am delighted to report a strong underlying performance from the original Fuller's estate with uninvested like for like sales growing by 6.7% in our Managed Pubs . We sold two hotels during the year for a total consideration of Â£35.6m which, with other property sales, gave exceptional profits of Â£20.1 million. Profits before tax rose 176% to Â£42.3 million (2006: Â£15.3 million). Fuller's Inns has had a strong year with pre-exceptional profits rising by 38% to Â£24.0 million (2006: Â£17.4 million). During the year, we have carried out 21 major refurbishments (2006: 17) at a cost of Â£2.8 million, and the Company is well-advanced with plans to maximise the opportunities presented by the forthcoming smoking ban. The Fuller's Beer Company saw profits rise by 12% to Â£7.9 million (2006: Â£7.0 million). London Pride grew its volumes and has consolidated its position as the UK's leading premium ale, having increased its market share right across the cask, bottled and canned sectors of the market. The Group's net debt has reduced to Â£96.5 million (2006: Â£130.0 million), hence lowering our gearing to 52.8% (2006: 83.5%). During the year we injected Â£2.0 million into the Group's pension fund and have subsequently added another Â£8.0 million post year-end, helping to substantially reduce the current pension fund deficit from Â£21.6 million to Â£8.0 million. During the year, the Company bought back and cancelled 1,848,000 10p 'B' ordinary shares at a cost of Â£2.1 million. The Company also purchased 35,000 Â£1 'A' ordinary shares for Â£614,000. These shares have been retained as treasury shares. At 31 March 2007 there were 342,784 treasury shares remaining. Our share price has seen strong growth in recent years and we feel it would now be prudent to consider a share split. The Board will, therefore, be proposing a five for two split to shareholders at our AGM on Tuesday 24 July 2007. This will convert every two Â£1 'A' and 'C' ordinary shares to five new 40p shares and every two 10p 'B' shares will become five new 4p shares. Our adjusted earnings per share have risen by 26% to 68.94p (2006: 54.67p), as we continue to deliver excellent returns for our shareholders, and our basic earnings per share this year have risen 181% to 130.34p (2006: 46.40p). The Board is recommending a final dividend increase of 15% to 16.25p per Â£1 'A' and 'C' ordinary share, and 1.625p per 10p 'B' ordinary share. This will be paid on Friday 27 July 2007 to shareholders on the share register as at Friday 29 June 2007. We were delighted this year to win the Regional Brewer of the Year title at The Publican Newspaper awards 2007 for an unprecedented second year running. The award highlights the regional brewer that has stood out from its peers with its performance in both brewing and retailing over the preceding 12 months. The judges said: "Fuller's has maintained its high standards in its own estate while transferring its culture and systems across into a new acquisition. It not only says it will deliver results, it does deliver." FULLER'S INNS It has been a successful and rewarding year for Fuller's Inns with strong performances across all areas of the operation. Revenue for Fuller's Inns grew 26% to Â£140.9 million (2006: Â£111.9 million) and profits rose 38% to Â£24.0 million (2006: Â£17.4 million). EBITDA increased 32% to Â£32.4 million (2006: Â£24.6 million). This growth has resulted from a combination of the Gales acquisition, improved buying terms, a well-trained and highly motivated team, and a strong underlying performance from the original Fuller's estate. We have continued to acquire new sites with the addition of eight pubs during the year and our estate consisted of 201 tenancies, 156 managed pubs and six hotels at the year end. Fuller's Inns has planned well ahead to comprehensively address the forthcoming smoking ban. We have been and will continue to upgrade our outside areas and provide areas to accommodate our smoking customers at a total investment cost of Â£4 million. Managed Pubs Our Managed Pubs have had a great year with revenue increasing by 28% and profits rising by 41%. The Gales acquisition has had the effect of providing a summer balance to our estate, and has performed well. We have seen strong results in the original Fuller's estate with uninvested like for like sales growing by 6.7%. The corresponding invested like for like sales figure is up 8.2%. We have continued to maintain our long-term strategy and focus on providing our customers with outstanding cask conditioned ales, delicious food, great wines and exemplary service and the result has been growth in all of these areas. In particular, we are pleased to have seen our food sales rise 51% in the year with food now representing 27% of Managed Pubs' total revenue (2006: 21%). Investment in our estate continues apace and this year we have carried out 21 major projects during the year (2006: 17). Where these projects have been carried out in the former Gales estate, they have included rebranding the sites with Fuller's signage. Prior to any refurbishment, we carry out extensive research among pub customers, the results of which have been very effective in tailoring our investment to match customers' expectations. The larger estate has allowed us to maximise operational efficiencies in our Managed Pubs and, as a result, eight sites have transferred to tenancy. In addition, we have added six new pubs which all offer exceptional food in a stylish environment. Tenanted Inns Our Tenanted Inns have had a strong year with revenue rising 39% and profits up 40%. The division has benefited from the addition of 69 Gales pubs as well as eight houses transferred from Managed. Our tenanted pubs have seen significant investment with repairs up by 48%. In addition, we are helping to ensure our tenants are well-equipped to deal with the smoking ban. We were also delighted this year to be among the first four pub companies to have their leases recognised under the BII's (the British Institute of Innkeeping) new accreditation scheme. We have always shown integrity in our business dealings and we are pleased that this has been acknowledged by the industry. We will continue to offer our 10-year lease, where applicable, and expect to see a number of former Gales tenants take the opportunity to transfer to a lease. Fuller's Hotels It has been a year of change for Fuller's Hotels with the sale of the Brigstow in Bristol and the Master Brewer in Hillingdon for a total consideration of Â£35.6 million. Despite the sale of the two hotels, profits for the division increased by 9%, with like for like profits increasing by 22%. The sale of these two hotels allows us to simplify our business model and concentrate on the more traditional pubs and hotels market. This focus is already generating positive results with like for like occupancy and like for like RevPar both increasing by 9%. In addition, we will continue to use our expertise in the hotel market to optimise the opportunity from the 196 letting bedrooms within our managed estate. THE FULLER'S BEER COMPANY It has been a good year for the Beer Company. Revenue rose by 14% to Â£58.4 million (2006: Â£51.3 million) and profits increased 12% to Â£7.9 million (2006: Â£7.0 million). EBITDA grew by 13% to Â£9.9 million (2006: Â£8.8 million). Total beer volumes have risen by 14% to 323,000 barrels (2006: 285,000 barrels), with gains across all parts of the business. London Pride continues to lead the premium ale market with an increased share right across the cask, bottled and canned ale markets. We will continue to support the brand with new television advertising focusing on the quality and pride that goes into brewing the beer and through high profile sponsorships. Our position as the official beer of the English Golf Union has given us improved access to 1,900 golf clubs in England and Wales and our support for the London Marathon provided a unique opportunity to cement Pride's position as an iconic London brand by aligning it with a similarly iconic London event. We have seen good growth from many of our other brands and another outstanding performance from the wine division with profits up by 25%. We have also recently extended the brewery site into the former petrol station on the Hogarth roundabout, adding new storage and warehousing space. PROSPECTS It has been an exceptional year, boosted by the addition of a full year's contribution from the Gales business, the profits generated from the sale of two hotels, and strong underlying growth. This year also saw Fuller's become London's last remaining traditional brewer. We will continue to grow our business organically. Our Hotels business has a more concentrated focus and we will benefit from leveraging the expertise in this division to build accommodation sales in the managed estate. In addition, we have the opportunity of offering 10-year leases to a number of former Gales tenants to build on the business model we developed in the original Fuller's estate. We will continue to support London Pride as the UK's leading premium ale, using advertising and targeted sponsorship to attract new routes to market and new drinkers to the brand. We will also continue to build our ale business through our other brands such as Discovery, ESB, Gales HSB and Organic Honey Dew, the UK's leading organic beer. Our continuing focus on outstanding cask conditioned ales, delicious food, great wines and exemplary service will benefit all areas of the Fuller's business. Allied to a focused refurbishment programme, these factors combine to put us in a strong position to capitalise on the opportunities presented by the forthcoming smoking ban. The current financial year has started well and is in line with expectations. With new acquisitions, continuing investment in our estate, and the quality of our award-winning premium brands, the Board is confident of the prospects for the continued success of the group. A.G.F. Fuller CBE Chairman 8 June 2007 FULLER SMITH & TURNER P.L.C. FINANCIAL HIGHLIGHTS FOR THE 52 WEEKS ENDED 31 MARCH 2007 52 weeks to 52 weeks to 31 March 1 April Change 2007 2006 2007/2006 Â£000 Â£000 ____________________________________________ ____________ ____________ ____________ Revenue 178,165 145,148 22.7% Profit before tax 42,256 15,310 176.0% Operating profit 29,401 22,425 31.1% Adjusted profit(1) 22,109 17,952 23.2% Pre-exceptional EBITDA(2) 40,742 32,149 26.7% Basic earnings per share(3) 130.34p 46.40p 180.9% Adjusted earnings per share(4) 68.94p 54.67p 26.1% Dividend per share5 22.72p 19.75p 15.0% Gearing ratio 52.8% 83.5% N/A ____________________________________________ ____________ ____________ ____________ (1) Adjusted profit is the profit before tax excluding exceptional items. (2) Pre-exceptional earnings before interest, tax, depreciation and amortisation. (3) Calculated on a Â£1 ordinary share. (4) Calculated using adjusted profits after tax and the same weighted average number of shares as for the basic earnings per share. (5) Calculated on a Â£1 ordinary share for the interim dividend paid and the proposed final dividend. FULLER SMITH & TURNER P.L.C. UNAUDITED GROUP INCOME STATEMENT FOR THE 52 WEEKS ENDED 31 MARCH 2007 52 weeks to 31 March 2007 Before exceptional Exceptional Items items Total Note Â£000 Â£000 Â£000 Revenue 178,165 - 178,165 Operating costs 3 (148,376) (388) (148,764) ------------------ -------------------- -------------------- Operating profit 29,789 (388) 29,401 Profit on disposal of properties 3 - 20,535 20,535 Reorganisation costs 3 - - - Finance revenue 408 - 408 Finance costs (8,088) - (8,088) ------------------ -------------------- -------------------- Profit before tax 22,109 20,147 42,256 Taxation 4 (6,711) (6,434) (13,145) ------------------ -------------------- -------------------- Profit for the year attributable to equity 15,398 13,713 29,111 shareholders of the parent company =========== =========== =========== 52 weeks to 1 April 2006 Before exceptional Exceptional Items items Total Â£000 Â£000 Â£000 Revenue 145,148 - 145,148 Operating costs 3 (122,723) - (122,723) ------------------- -------------------- -------------------- Operating profit 22,425 - 22,425 Profit on disposal of properties 3 - 265 265 Reorganisation costs 3 - (2,907) (2,907) Finance revenue 104 - 104 Finance costs (4,577) - (4,577) ------------------- -------------------- -------------------- Profit before tax 17,952 (2,642) 15,310 Taxation 4 (5,724) 792 (4,932) ------------------- -------------------- -------------------- Profit for the year attributable to equity 12,228 (1,850) 10,378 shareholders of the parent company =========== =========== =========== EARNINGS PER SHARE 2007 2006 Per Â£1 'A' ordinary share or unquoted Â£1 'C' ordinary share Basic 5 130.34p 46.40p Diluted 5 128.80p 45.89p Adjusted 5 68.94p 54.67p Diluted adjusted 5 68.13p 54.07p Per unquoted 10p 'B' ordinary share Basic 5 13.03p 4.64p Diluted 5 12.88p 4.59p Adjusted 5 6.89p 5.47p Diluted adjusted 5 6.81p 5.41p The results and earnings per share measures above are all in respect of the continuing and total operations of the Group. FULLER SMITH & TURNER P.L.C. UNAUDITED GROUP BALANCE SHEET 31 MARCH 2007 2007 2006 Note Â£000 Â£000 Non-current assets Goodwill 24,493 24,493 Property, plant and equipment 307,085 315,985 Investment properties 4,036 8,304 Financial assets 1,153 - Other non-current assets 1,019 1,006 Deferred tax assets 8,065 7,579 -------------------- -------------------- Total non-current assets 345,851 357,367 -------------------- -------------------- Current assets Inventories 5,373 5,484 Trade and other receivables 14,975 14,647 Cash and cash equivalents 8,927 1,370 -------------------- -------------------- Total current assets 29,275 21,501 -------------------- -------------------- Assets classified as held for sale 6,522 - -------------------- -------------------- Current liabilities Bank overdraft - 286 Bank loans 5,000 2,500 Loan notes 2,821 - Trade and other payables 33,859 34,763 Current tax payable 2,664 1,391 -------------------- -------------------- Total current liabilities 44,344 38,940 -------------------- -------------------- Non-current liabilities Bank loans 69,000 97,000 Debenture stock 27,023 27,016 Loan notes - 2,971 Preference shares 1,600 1,600 Retirement benefit obligations 16,009 21,646 Deferred tax liabilities 40,996 34,036 -------------------- -------------------- Total non-current liabilities 154,628 184,269 -------------------- -------------------- Net assets 182,676 155,659 ============ ============ Capital and reserves Share capital 22,774 22,870 Share premium account 4,654 4,289 Capital redemption reserve 3,087 2,902 Own shares (5,213) (4,662) Retained earnings 157,374 130,260 -------------------- -------------------- Total shareholders' equity 7 182,676 155,659 ============ ============ FULLER SMITH & TURNER P.L.C. UNAUDITED GROUP CASH FLOW STATEMENT FOR THE 52 WEEKS ENDED 31 MARCH 2007 52 weeks to 52 weeks to 31 March 1 April 2007 2006 Â£000 Â£000 Group operating profit before exceptional items 29,789 22,425 Depreciation 10,787 9,419 Impairment of properties - 175 Loss on disposal of property, plant and equipment 166 130 Reorganisation costs - (2,907) Difference between pension charge and cash paid (3,059) (557) Share-based payment charges 1,358 990 Change in trade and other receivables (352) (1,148) Change in inventories 111 77 Change in trade and other payables (863) 1,790 -------------------- -------------------- Cash generated from operations 37,937 30,394 Tax paid (5,103) (4,814) -------------------- -------------------- Cash generated from operating activities 32,834 25,580 -------------------- -------------------- Cash flow from investing activities Purchase of property, plant and equipment (21,686) (21,561) Sale of property, plant and equipment 37,729 3,461 Interest received 371 104 Acquisition of subsidiaries - (89,645) -------------------- -------------------- Net cash flow from investing activities 16,414 (107,641) -------------------- -------------------- Cash flow from financing activities Proceeds from issue of share capital 454 178 Purchase of own shares (3,628) (1,864) Sale of own shares to option schemes 271 256 Interest paid (8,130) (3,316) Preference dividends paid (120) (120) Equity dividends paid (4,602) (4,183) Repayment of loan notes (150) - Repayment of bank loans (25,500) - Increase in bank loans - 87,584 -------------------- -------------------- Net cash flow from financing activities (41,405) 78,535 -------------------- -------------------- Net movement in cash and cash equivalents 7,843 (3,526) Cash and cash equivalents at the start of the year 1,084 4,610 -------------------- -------------------- Cash and cash equivalents at the end of the year 8,927 1,084 ============ ============ There was one significant non-cash transaction in the 2006 year, which was the issuing of Â£2,971,000 of loan notes on the acquisition of George Gale & Co. Ltd. FULLER SMITH & TURNER P.L.C. UNAUDITED GROUP STATEMENT OF RECOGNISED INCOME AND EXPENSE FOR THE 52 WEEKS ENDED 31 MARCH 2007 52 weeks to 52 weeks to 31 March 1 April 2007 2006 Â£000 Â£000 Reduction in deferred tax liability due to indexation 433 212 Net gains on valuation of financial assets 807 - Deferred tax on share-based payments 1,012 - Net actuarial gains and losses on pension schemes 1,805 (991) -------------------- -------------------- Income and expense recognised directly in equity 4,057 (779) Profit for the year 29,111 10,378 -------------------- -------------------- Total recognised income and expense for the year 33,168 9,599 ============ ============ FULLER SMITH & TURNER P.L.C. NOTES TO THE FINANCIAL STATEMENTS FOR THE 52 WEEKS ENDED 31 MARCH 2007 1. PRELIMINARY STATEMENT The financial information set out in this preliminary statement was approved by the Board on 8 June 2007. This statement does not constitute full financial statements as defined by section 240 of the Companies Act 1985. Full financial statements for the year ended 1 April 2006, including an unqualified auditors' report and which do not contain a statement under section 237 (2) or (3) of the Companies Act 1995, have been delivered to the Registrar of Companies. The unaudited financial information in this statement has been prepared on the basis of the accounting policies set out in the Group's 2006 financial statements, and in accordance with applicable accounting standards. The accounting policies used have been applied consistently and are described in full in the statutory financial statements for the year ended 31 March 2007, which will be mailed to shareholders on or before Monday 25 June 2007 and delivered to the Registrar of Companies. The financial statements will also be available from the Company's registered office: Griffin Brewery, Chiswick, London W4 2QB, and on its website, from that date. Under IFRS, revenue includes only the gross inflows of economic benefits received and receivable by the enterprise on its own account. Amounts collected on behalf of third parties such as excise duty are not economic benefits which flow to the enterprise and do not result in increases in equity. Therefore, they are excluded from revenue. This accounting adjustment does not apply to retailers who buy their goods duty paid and do not have to account to the government for duty. Excise duty has therefore been removed from all revenue except for sales by the Inns division directly to its own retail customers. 2. SEGMENTAL ANALYSIS Fuller's Fuller's Beer 52 weeks to 31 March 2007 Inns Company Unallocated* Total Â£000 Â£000 Â£000 Â£000 Revenue Segment revenue 140,860 58,392 - 199,252 Inter-segment sales - (21,087) - (21,087) ------------------ ------------------ ------------------ ------------------ Revenue from third parties 140,860 37,305 - 178,165 ------------------ ------------------ ------------------ ------------------ Operating profit pre 23,963 7,886 (2,060) 29,789 exceptionals Operating exceptional items (388) - - (388) ------------------ ------------------ ------------------ ------------------ Operating profit 23,575 7,886 (2,060) 29,401 Profit on disposal of properties 20,535 - - 20,535 Reorganisation costs - - - - Net finance costs - - (7,680) (7,680) ------------------ ------------------ ------------------ ------------------ Profit before tax 44,110 7,886 (9,740) 42,256 ------------------ ------------------ ------------------ ------------------ Assets and Liabilities Segment assets 314,053 44,638 22,957 381,648 Segment liabilities (49,800) (19,477) (129,695) (198,972) ------------------ ------------------ ------------------ ------------------ Segment net assets 264,253 25,161 (106,738) 182,676 ------------------ ------------------ ------------------ ------------------ Fuller's Fuller's Beer 52 weeks to 1 April 2006 Inns Company Unallocated* Total Â£000 Â£000 Â£000 Â£000 Revenue Segment revenue 111,911 51,285 - 163,196 Inter-segment sales - (18,048) - (18,048) ------------------ ------------------ ------------------ ------------------ Revenue from third parties 111,911 33,237 - 145,148 ------------------ ------------------ ------------------ ------------------ Operating profit pre 17,399 7,040 (2,014) 22,425 exceptionals ** Operating exceptional items - - - - ------------------ ------------------ ------------------ ------------------ Operating profit ** 17,399 7,040 (2,014) 22,425 Profit on disposal of properties 265 - - 265 Reorganisation costs (470) (975) (1,462) (2,907) Net finance costs - - (4,473) (4,473) ------------------ ------------------ ------------------ ------------------ Profit before tax ** 17,194 6,065 (7,949) 15,310 ------------------ ------------------ ------------------ ------------------ Assets and Liabilities Segment assets 329,025 42,159 7,684 378,868 Segment liabilities (47,562) (18,872) (156,775) (223,209) ------------------ ------------------ ------------------ ------------------ Segment net assets 281,463 23,287 (149,091) 155,659 ------------------ ------------------ ------------------ ------------------ * Unallocated assets and liabilities represent the net of bank loans, debentures, corporation tax, cash at bank and assets held under central management. Unallocated expenses represent primarily the salary and property costs charged to central management. ** The unallocated amounts in the analysis for the 52 weeks to 1 April 2006 have been revised to better reflect the extent to which these costs are attributable to the operations. Operating profit pre-exceptionals for 2006 was previously allocated as follows: 52 weeks to 1 April 2006 as Fuller's Fuller's Beer Unallocated Total previously reported Inns Company Â£000 Â£000 Â£000 Â£000 Operating profit 18,984 8,445 (5,004) 22,425 ------------------ ------------------ ------------------ ------------------ 3. EXCEPTIONAL ITEMS 2007 2006 Â£000 Â£000 Property Profit on disposal of properties 20,535 265 Write down of assets held for sale (388) - ------------------ ------------------ 20,147 265 ------------------ ------------------ Reorganisation costs Redundancies - (1,367) Professional fees - (814) Other reorganisation and integration costs - (726) ------------------ ------------------ - (2,907) ------------------ ------------------ Total exceptional items before tax 20,147 (2,642) ------------------ ------------------ 4. TAXATION 2007 2006 Tax on profit on ordinary activities Â£000 Â£000 Tax charged in the income statement Current income tax: Corporation tax 6,532 4,548 Amounts (over)/under provided in previous years (186) 63 ------------------ ------------------ Total current income tax 6,346 4,611 ------------------ ------------------ Deferred tax: Origination and reversal of temporary 6,572 321 differences Amounts under provided in previous years 227 - ------------------ ------------------ Total deferred tax 6,799 321 ------------------ ------------------ Total tax charged in the income statement 13,145 4,932 ------------------ ------------------ Tax relating to items (credited)/debited to equity: Deferred tax: Reduction in deferred tax liability due to (433) (212) indexation Actuarial gains/(losses) on pension schemes 773 (425) Financial assets 346 - Share-based payments (1,012) - ------------------ ------------------ Tax credit included in the statement of recognised income and (326) (637) expense ------------------ ------------------ Reconciliation of the total tax charge The tax expense in the income statement for the year is higher than the standard rate of corporation tax in the UK of 30% (2006: 30%). The differences are reconciled below: 2007 2006 Â£000 Â£000 Profit from continuing operations before 42,256 15,310 taxation ------------------ ------------------ Accounting profit multiplied by the UK standard rate of corporation 12,677 4,593 tax of 30% Items not deductible for tax purposes 859 729 Profit on disposal of properties not taxable in the year (6,581) - Deferred tax on rolled over gains on disposal of properties 6,787 - Current and deferred tax underprovided in previous years 41 63 Share-based payments (139) - Capital losses (499) - Other - (453) ------------------ ------------------ Total tax charged in the income statement 13,145 4,932 ------------------ ------------------ 5. EARNINGS PER SHARE 2007 2006 Â£000 Â£000 Profit attributable to equity shareholders 29,111 10,378 Exceptional items net of tax (13,713) 1,850 ------------------ ------------------ Adjusted earnings attributable to equity shareholders 15,398 12,228 ------------------ ------------------ Number Number Weighted average share capital 22,335,000 22,365,000 Dilutive outstanding options 266,000 250,000 ------------------ ------------------ Diluted weighted average share capital 22,601,000 22,615,000 ------------------ ------------------ Â£1 'A' ordinary share or unquoted Â£1 'C' ordinary share Pence Pence Basic earnings per share 130.34 46.40 Diluted earnings per share 128.80 45.89 Adjusted earnings per share * 68.94 54.67 Diluted adjusted earnings per share * 68.13 54.07 Unquoted 10p 'B' ordinary share Pence Pence Basic earnings per share 13.03 4.64 Diluted earnings per share 12.88 4.59 Adjusted earnings per share * 6.89 5.47 Diluted adjusted earnings per share * 6.81 5.41 The earnings per share calculation is based on earnings from continuing total operations and on the weighted average ordinary share capital. Adjusted earnings per share are calculated after excluding exceptional gains and losses and on the same weighted average ordinary share capital as for the basic earnings per share. Diluted earnings per share amounts are calculated using the same earnings figure as for basic earnings per share, divided by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares. * Last year's adjusted earnings per share had been calculated on an historic UK GAAP basis. This has been restated so that it is on a consistent basis with the adjusted earnings per share calculated for the current year. 6. DIVIDENDS PAID AND PROPOSED 52 weeks to 52 weeks to 31 March 1 April 2007 2006 Â£000 Â£000 Declared and paid during the year: Equity dividends on ordinary shares: Final dividend for 2006: 14.12p (2005: 13.10p) 3,157 2,923 Interim dividend for 2007: 6.47p (2006: 5.63p) 1,445 1,260 ------------------ ------------------ 4,602 4,183 ------------------ ------------------ Dividends on cumulative preference shares 120 120 ------------------ ------------------ Dividends paid 4,722 4,303 ========== ========== Proposed for approval at the AGM: Final dividend for 2007: 16.25p (2006: 14.12p) 3,626 3,157 ========== ========== The pence figures above are for the Â£1 'A' ordinary shares and unquoted Â£1 'C' ordinary shares. The unquoted 10p 'B' share carry dividend rights of 1/10 of those applicable to the Â£1 'A' ordinary shares. Own shares held in the Fuller, Smith & Turner P.L.C. Employee Share Trust 1998 do not qualify for dividends as the trustees have waived their rights. Dividends are also not paid on shares held as treasury shares. 7. RECONCILIATION OF MOVEMENTS IN TOTAL EQUITY 52 weeks to 52 weeks to 31 March 1 April 2007 2006 Â£000 Â£000 Opening total equity 155,659 152,283 Adjustments relating to the adoption of IAS 32 & 39 - (1,600) ------------------ ------------------ Opening equity restated 155,659 150,683 ------------------ ------------------ Net actuarial gains/(losses) on pension schemes 1,805 (991) Net gain on valuation of financial assets 807 - Reduction in deferred tax liability due to indexation 433 212 Deferred tax on share-based payments 1,012 - ------------------ ------------------ Net gains/(losses) not recognised in the Income Statement 4,057 (779) ------------------ ------------------ Issues of new shares 454 178 Shares purchased including treasury shares (3,627) (1,864) Shares released including treasury shares 266 256 Dividends declared and paid (4,602) (4,183) Cost of share-based payments 1,358 990 Profit for the year 29,111 10,378 ------------------ ------------------ Net other movements in the year 22,960 5,755 ------------------ ------------------ Closing total equity 182,676 155,659 ========== ========== 8. SHAREHOLDERS' INFORMATION Shareholders holding Â£1 'C' ordinary shares are reminded that they have 30 days from 8 June 2007 should they wish to convert those 'C' shares to 'A' shares. The next available opportunity after that will be November 2007. For further details please contact the Company's registrars, Computershare on 0870 702 0003. This information is provided by RNS The company news service from the London Stock Exchange

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