Interim Results
Fuller,Smith&Turner PLC
3 December 2001
PRESS RELEASE
FULLER SMITH & TURNER P.L.C.
Financial results for the six months ended 29 September 2001
Summary
+ * Normalised profit before tax £6.4 million (2000: £7.2 million)
+ ** Normalised earnings per share 17.27p (2000: 19.38p)
+ EBITDA of £11.5 million (2000: £11.9m)
+ Dividend increased 2.1% to 4.47p (2000 4.38p)
+ Trading statement issued in September reported a reduction in full
year profit expectations following:
- poor performance of Broadwalks and late night venues leading to exit
from this area
- delayed opening of new hotels
- uncertain economic outlook and impact of 11 September on City pubs
and hotel bookings
* Strong underlying performance in core business areas
* Excellent performance by the Beer Company with profits up 21% - own
beer volumes up 3% and continuing to gain market share
* Tenanted pubs profits up 12% with like for like profits up 5%
* Managed pubs like for like profits up 1%
* New hotels opened in Bristol (August) and City of London (November).
Occupancy levels building in spite of very difficult trading conditions
for the industry
* Profits after interest before exceptional operating and non-operating costs/
profits
** Calculated on the £1 'A' Ordinary Share
Comparative earnings figures have been restated for FRS 19 (Deferred Tax)
Commenting on the results, Anthony Fuller, Chairman, said:
'Whilst it is pleasing to announce a respectable profit for the first half, it
is naturally disappointing to report a reduction as compared with last year.
The major contributor to this is the poor performance of our Broadwalks and
late night venues which clearly have not met our targets. The later than
planned start to trading in our two new hotels, owing to construction delays,
has also contributed to the reduction.
In addressing these issues, we have acted promptly and decisively to dispose
of the majority of the Broadwalks and late night venues with the balance being
converted to managed pubs. This has unfortunately resulted in an exceptional
write off in our profit and loss account.
It is not surprising that our City pubs are experiencing lower levels of
trading in the current economic climate. This has been exacerbated by the
tragic events of 11 September. However, we are confident that previous levels
of sales and profitability will be restored in due course as and when there is
a return of confidence amongst our City customers.
In terms of Hotels, we are delighted with the high quality of our new
properties in Bristol and the City of London and remain confident of the
positive long-term outlook for our Hotels division overall.
It is most pleasing to see the Beer Company going from strength to strength
with uplifts in both own beer volumes and in market share.
Our brands, and the high quality of all of our continuing operations, stand us
in good stead for the future. Despite the uncertain trading outlook for the
time being, our longer term growth prospects remain strong.'
- Ends -
For further information, please contact:
Fuller Smith & Turner
P.L.C.
Press Office 020 8996 2175 / 2198 / 2048
07958 989 124 / 07748 657 854 (mobile)
Website: www.fullers.co.uk
Michael Turner - Press 020 8996 2048
Paul Clarke - Analysts 020 8996 2048
Merlin Financial 020 7606 1244
Paul Downes 07900 244 888 (mobile)
Vanessa Maydon 07802 961 902 (mobile)
Notes to Editors Photographs for the media are available at
NewsCast
Online - www.newscast.co.uk
Tel. 020 7608 1000
Attached: Chairman's Statement
Financial Highlights
Unaudited Group Profit and Loss Account
Unaudited Group Balance Sheet
Unaudited Group Cash Flow Statement
Other Unaudited Group Primary Statements
Notes to the Accounts
FULLER SMITH & TURNER P.L.C.
INTERIM RESULTS FOR THE SIX MONTHS
TO 29 SEPTEMBER 2001
CHAIRMAN'S STATEMENT
Whatever You Do, Take Pride
On 27 September 2001 we issued a trading update reporting that profits for the
full year would be lower than expected. This was due to the poor performance
of the Broadwalks and other late night venues, coupled with the delayed
openings of two new hotels and difficult market conditions generally. The
results for the half-year reflect this reduced expectation and I have to
report that our normalised profits are down 11% to £6.4 million (2000: £7.2
million) in spite of an increase in turnover of 4% to £65.3 million.
Normalised earnings per share are down 11% to 17.27p (2000 restated: 19.38p).
The post-exceptional profit before tax was £1.3 million (2000: £10.4 million)
following an exceptional operating charge of £1.4 million for property
impairments and £3.8 million exceptional losses on the disposal of properties.
This compares with exceptional profits on the disposal of properties of £3.1
million last year. Although it has been necessary to take charges in respect
of certain properties this half-year, the Board can assure you that the market
value of the remaining estate is significantly greater than its carrying
value. This has been supported by a recently commissioned external
professional valuation undertaken on a sample of the estate.
We have implemented FRS 19 Deferred Tax for the first time this year which has
resulted in an expected increase to the current period tax charge on
pre-exceptional profits of £0.2 million (2000 increase: £0.1 million) and an
effective tax rate of 31.8% (2000 as previously reported: 30.0%, restated to
31.9%). Prior years' tax charges and net assets have been restated to show the
post-FRS 19 position and as a result net assets at September 2000 and March
2001 have been reduced by £3.0 million and £3.2 million respectively.
Cash generation continues to be significant with EBITDA at £11.5 million
(2000: £11.9 million). The Company's capital investment programme has
increased gearing to 14% from 5% last year. Capital expenditure charged for
the half year was £15.0 million.
Under the circumstances, the Directors consider it appropriate to increase the
interim dividend by 2% to 4.47p per 'A' and 'C' £1 Ordinary Share, and 0.447p
per 'B' 10p Ordinary Share, which will be paid on Friday 11 January 2002 to
shareholders on the Share Register at 14 December 2001.
Fuller's Inns
The turnover of our combined retail operations increased by 3%, with
normalised profits at £7.2 million, down 11%. In addition, following a review
of the carrying values of properties, the Board has considered it appropriate
to make a provision for impairments as mentioned above. This is treated as an
exceptional operating charge.
Managed Pubs and Bars
Managed Pubs and Bars turnover has increased by 2%, with like for like sales
increasing by 1%. Like for like profits have also increased by 1% in spite of
continuing cost pressures. There were 116 outlets at the end of September.
This is six fewer than at the year end with the sale of two Broadwalks and the
transfer of six pubs to the Tenanted estate, offset by two new openings. Since
the period end we have agreed the sale of a further four Broadwalks and late
night venues. The remaining three Broadwalks and late night venues will be
converted to traditional high street pubs.
The Broadwalks and late night venues started satisfactorily (albeit with the
expected initial trading losses) and turnover grew. However, we were unable
to convert this rising turnover into an acceptable level of return as the
concept matured. Accordingly, the decision was made to concentrate on other
areas of the Retail estate. Around £0.7 million of our first half shortfall is
attributable to the failure to reach budgeted profit levels in these outlets,
in addition to £3.8 million of exceptional losses on disposal.
The remainder of the Bars division has been refocused to concentrate on three
proven concepts; the Fine Lines, the One of 2's and the Gastro pubs.
Inevitably, difficult market conditions have had an impact across the range,
especially since a large number of the bars are in the City of London.
However, Fuller's remains committed to the long-term prospects for the brands
and we continue to look for suitable opportunities for expansion, as
demonstrated by the opening of the third One of 2 in October.
Hotels Division
The period since March 2001 has been one of considerable change for the Hotels
division. The year started with the opening of a 37 bedroom hotel, the White
Hart at Kingston Bridge, in April. Following this, in August we opened the 117
bedroom Brigstow Hotel in Bristol. In September, we completed a 19 bedroom
extension to the Fox & Goose Hotel in Ealing and, finally, in November opened
a 64 bedroom hotel in the City of London, The Chamberlain. This represents a
total investment of £25 million and brings the total number of rooms to just
under 500 from 257 last September.
With the sale of the Master Robert in July 2000 and the opening of the new
hotels during this half-year (with related pre-opening costs of £0.25
million), the two periods are not strictly comparable. Turnover from the
Hotels division actually fell by 5%, but on a like for like basis RevPar
(revenue per available room) has increased 1%.
Inevitably the tragic events of 11 September 2001 and general economic
conditions since then have taken their toll on the hotels business. Some
hotels have been affected more than others and the short-term outlook remains
extremely difficult to forecast. In addition, the two new hotels were two
months late in opening owing to construction delays. As a result, the hotels
will take longer than originally planned to reach maturity. However, the
hotels have been built to high standards, are in excellent positions and have
been well received. We remain extremely confident about the long-term
prospects for the division.
Tenanted Pubs
The Tenanted division has performed well with profits up 12% and like for like
profits up 5%. The Tenanted estate continues to expand with five acquisitions
and six transfers from the Managed division, off set by the sale of three
lower volume pubs. With three further acquisitions since the period end the
estate now stands at 119 pubs. The new 10-year lease has proved very popular
with 18 tenants signed up and a further 10 under offer.
The Fuller's Beer Company
The Beer Company continues to progress very well with turnover up 3%, profit
up 21% to £2.3m and own beer barrelage up 3%. Free on-trade volumes, the
largest segment in the Beer Company, were up 5% to 53,000 barrels representing
62% of our own beer business. Off-trade ale volumes continue to show
exceptional growth of 7% in a market down 4%. This growth has been led by our
flagship brand, London Pride. Organic Honeydew, launched in March 2000, is
also continuing to grow with volumes up 36% on last year.
Innovative and high profile advertising and promotional activities to support
London Pride were a feature of the first half. This included cinema
advertising, perimeter advertising at key England football and cricket
fixtures and a sampling campaign at eight major railway stations in London,
Brighton and Leeds.
The major investment programme at the brewery is also well underway, with the
completion of the £2.1 million bottling line in September and good progress on
the first phase of significant expansion to fermentation and maturation tank
capacity. In addition, the new cask ale dispensing system has been installed
into 70 Managed pubs. Initial feedback is encouraging with pubs achieving
improved quality and consistency. It is anticipated that the system will be
installed across the rest of the Managed estate by this time next year.
Prospects
We remain cautious about the outlook for the rest of the year. The new hotels
have opened later than expected with attendant lost revenue and, after the
tragic events of 11 September, will take longer to reach peak occupancy. Our
other hotels are being affected to a lesser degree. The Bars division has been
refocused after its poor first half trading. The decline in City trade has
also reduced our expectations for the year. Furthermore, general economic
uncertainties mean there are challenging times ahead.
However, there are positive signs. The core Managed and Tenanted estates have
performed well in the first half and trade in the last two months was in line
with revised expectations. The prospects for the Beer Company are also
encouraging. It is has had an excellent six months in an increasingly tough
and competitive environment.
The strength of the Fuller's brands and the unwavering commitment to quality
are distinct advantages and will stand the Company in good stead. The
fundamentals of the Company are unchanged. Gearing remains low, the balance
sheet is strong and the long-term prospects are sound.
A.G.F. Fuller CBE
Chairman
3 December 2001
FULLER SMITH & TURNER P.L.C.
FINANCIAL HIGHLIGHTS
FOR THE 26 WEEKS ENDED 29 SEPTEMBER 2001
26 weeks to 26 weeks to 53 weeks to
29 23 Change 31 March
September September
2001 2000 2001/2000 2001
£000 £000 £000
________________________________ ___________ ___________ ___________ ___________
Turnover 65,300 63,005 3.6% 128,054
Operating profit before exceptional 7,271 7,868 (7.6)% 16,821
items
Normalised profits* 6,447 7,228 (10.8)% 15,624
EBITDA** 11,514 11,931 (3.5)% 24,961
Normalised earnings per share*** 17.27p 19.38p (10.9)% 42.69p
Dividend per share*** 4.47p 4.38p 2.1% 14.38p
Assets per share*** £5.91 £5.84 1.2% £5.97
Gearing ratio 14.3% 5.1% N/A 6.9%
________________________________ ___________ ___________ ___________ ___________
* Profits after interest before exceptional operating and non-operating costs/
profits.
** Earnings before interest, tax, depreciation and amortisation.
*** Calculated on the £1 'A' Ordinary Share.
Comparative earnings, assets and gearing figures have been restated for FRS 19
Deferred Tax.
FULLER SMITH & TURNER P.L.C.
UNAUDITED GROUP PROFIT AND LOSS ACCOUNT
FOR THE 26 WEEKS ENDED 29 SEPTEMBER 2001
26 weeks to 26 weeks to 53 weeks to
29 September 23 September 31 March
2001 2000 2001
£000 £000 £000
Restated Restated
TURNOVER - continuing operations 65,300 63,005 128,054
Operating costs (59,379) (55,137) (111,202)
------------- ------------- -------------
OPERATING PROFIT - continuing
operations
Before operating exceptional 7,271 7,868 16,821
(costs)/profits
Operating exceptional (costs) (1,350) - 31
/profits
------------- ------------- -------------
TOTAL OPERATING PROFIT 5,921 7,868 16,852
Non-operating exceptional (losses)/ (3,821) 3,142 3,676
profits
Interest payable (net) (824) (640) (1,197)
------------- ------------- -------------
PROFIT ON ORDINARY ACTIVITIES BEFORE 1,276 10,370 19,331
TAXATION
Taxation (1,577) (1,996) (4,966)
------------- ------------- -------------
(LOSS)/PROFIT ON ORDINARY ACTIVITIES (301) 8,374 14,365
AFTER TAXATION
Preference dividends (60) (60) (120)
------------- ------------- -------------
ATTRIBUTABLE TO EQUITY SHAREHOLDERS (361) 8,314 14,245
Ordinary dividends (1,124) (1,099) (3,610)
------------- ------------- -------------
RETAINED (LOSS)/PROFIT FOR THE (1,485) 7,215 10,635
FINANCIAL PERIOD
------------- ------------- -------------
(LOSS)/EARNINGS PER SHARE*
Basic (1.44)p 33.16p 56.82p
Diluted (1.44)p 33.09p 56.72p
Normalised basis 17.27p 19.38p 42.69p
*Calculated on the £1 'A' Ordinary Share.
The tax charges for the 26 weeks to 23 September 2000 and 53 weeks to 31 March
2001 have been restated in accordance with FRS 19 Deferred Tax.
FULLER SMITH & TURNER P.L.C.
UNAUDITED GROUP BALANCE SHEET
29 SEPTEMBER 2001
At At At
29 September 23 September 31 March
2001 2000 2001
£000 £000 £000
Restated Restated
FIXED ASSETS 184,476 169,982 179,493
CURRENT ASSETS
Stocks 3,744 3,934 4,029
Debtors 12,046 11,377 10,633
Current asset investments 3,577 15,771 13,441
Cash, at bank and in hand 1,795 3,598 3,071
------------- ------------- -------------
21,162 34,680 31,174
CREDITORS: amounts falling due within 23,994 24,265 27,566
one year
------------- ------------- -------------
NET CURRENT (LIABILITIES)/ASSETS (2,832) 10,415 3,608
------------- ------------- -------------
TOTAL ASSETS LESS CURRENT LIABILITIES 181,644 180,397 183,101
CREDITORS: amounts falling due after
more than one year
Debenture stock 26,968 26,957 26,963
PROVISIONS FOR LIABILITIES AND 3,480 4,598 3,772
CHARGES
------------- ------------- -------------
NET ASSETS 151,196 148,842 152,366
------------- ------------- -------------
CAPITAL AND RESERVES
Called up share capital
Equity 25,323 25,206 25,239
Non equity 1,600 1,600 1,600
Share premium account 2,840 2,538 2,609
Revaluation reserve 28,683 28,304 28,613
Profit and loss account 92,750 91,194 94,305
------------- ------------- -------------
TOTAL SHAREHOLDERS' FUNDS 151,196 148,842 152,366
------------- ------------- -------------
The balance sheets as at 23 September 2000 and 31 March 2001 have been
restated in accordance with FRS 19 Deferred Tax.
FULLER SMITH & TURNER P.L.C.
UNAUDITED GROUP CASH FLOW STATEMENT
FOR THE 26 WEEKS ENDED 29 SEPTEMBER 2001
26 weeks to 26 weeks to 53 weeks to
29 September 23 September 31 March
2001 2000 2001
£000 £000 £000
NET CASH INFLOW FROM OPERATING 9,236 11,761 25,988
ACTIVITIES
------------- ------------- -------------
RETURNS ON INVESTMENT AND SERVICING
OF FINANCE
Preference dividends paid (60) (60) (120)
Interest received 329 526 983
Interest paid (1,081) (1,098) (2,181)
------------- ------------- -------------
(812) (632) (1,318)
TAXATION
Corporation tax paid (1,699) (1,250) (4,699)
CAPITAL EXPENDITURE AND FINANCIAL
INVESTMENT
Payments to acquire tangible fixed (16,374) (13,950) (28,773)
assets
Payments to acquire fixed asset (327) (1,680) (344)
investments
Receipts from sales of tangible fixed 1,034 10,805 11,638
assets
Receipts from sale of retail wine - 3,160 3,860
shops
------------- ------------- -------------
(15,667) (1,665) (13,619)
EQUITY DIVIDENDS PAID (2,513) (2,348) (3,447)
------------- ------------- -------------
TOTAL NET CASH (OUTFLOW)/ INFLOW (11,455) 5,866 2,905
BEFORE THE USE OF LIQUID RESOURCES
AND FINANCING
MANAGEMENT OF LIQUID RESOURCES* 9,864 (6,794) (4,464)
FINANCING
Issue of equity shares 315 289 393
------------- ------------- -------------
MOVEMENT IN CASH IN THE PERIOD (1,276) (639) (1,166)
------------- ------------- -------------
* Management of liquid resources is the movement in cash on short-term deposit
at financial institutions.
RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW
FROM OPERATING ACTIVITIES
Operating profit 5,921 7,868 16,852
Depreciation 4,160 4,047 8,121
Loss on disposal of tangible fixed 83 16 19
assets
Impairment of fixed assets 1,350 - 877
Provision for onerous leases - - (908)
------------- ------------- -------------
EARNINGS BEFORE INTEREST, TAX, 11,514 11,931 24,961
DEPRECIATION AND AMORTISATION
(INCREASE)/DECREASE IN WORKING
CAPITAL
Stocks 285 395 300
Debtors (1,478) (1,620) (1,518)
Creditors (1,085) 1,055 2,245
------------- ------------- -------------
NET CASH INFLOW FROM OPERATING 9,236 11,761 25,988
ACTIVITIES
------------- ------------- -------------
FULLER SMITH & TURNER P.L.C.
OTHER UNAUDITED GROUP PRIMARY STATEMENTS
FOR THE 26 WEEKS ENDED 29 SEPTEMBER 2001
GROUP STATEMENT OF RECOGNISED GAINS 26 weeks to 26 weeks to 53 weeks to
AND LOSSES 29 September 23 September 31 March
2001 2000 2001
£000 £000 £000
Restated Restated
(Loss)/profit on ordinary activities (301) 8,374 14,365
after taxation
Prior period adjustment (see note 3) (3,176) - -
------------- ------------- -------------
Total recognised gains and losses for (3,477) 8,374 14,365
the period
------------- ------------- -------------
GROUP HISTORICAL COST PROFITS AND
LOSSES
Reported profit on ordinary 1,276 10,370 19,331
activities before taxation
Realisation of property revaluation (70) 3,621 3,312
(losses)/gains of previous years
------------- ------------- -------------
Historical cost profit on ordinary 1,206 13,991 22,643
activities before taxation
------------- ------------- -------------
Historical cost (loss)/profit for the (1,555) 10,836 13,947
period retained after taxation
------------- ------------- -------------
RECONCILIATION OF NET CASH FLOW TO
MOVEMENT IN NET DEBT
Movement in cash in the period (1,276) (639) (1,166)
Cash (inflow)/outflow from movement (9,864) 6,794 4,464
in liquid resources
Amortisation of issue costs (5) (5) (11)
------------- ------------- -------------
Movement in net debt in the period (11,145) 6,150 3,287
Net debt at the beginning of the (10,451) (13,738) (13,738)
period
------------- ------------- -------------
Net debt at the end of the period (21,596) (7,588) (10,451)
------------- ------------- -------------
RECONCILIATION OF MOVEMENTS IN 26 weeks to 26 weeks to 53 weeks to
SHAREHOLDERS' FUNDS 29 September 23 September 31 March
2001 2000 2001
£000 £000 £000
Restated Restated
Shareholders' funds at the beginning 155,542 144,521 144,521
of the period (as previously
reported)
Prior period adjustment (3,176) (3,183) (3,183)
------------- ------------- -------------
Restated shareholders' funds brought 152,366 141,338 141,338
forward
(Loss)/profit on ordinary activities (301) 8,374 14,365
after taxation
Dividends - preference (60) (60) (120)
- ordinary (1,124) (1,099) (3,610)
New share capital subscribed 315 289 393
------------- ------------- -------------
Net movement in shareholders' funds (1,170) 7,504 11,028
------------- ------------- -------------
Shareholders' funds at the end of the 151,196 148,842 152,366
period
------------- ------------- -------------
Shareholders' funds comprise:
Equity interests 149,596 147,242 150,766
Non-equity interests 1,600 1,600 1,600
------------- ------------- -------------
151,196 148,842 152,366
------------- ------------- -------------
Non-equity interests reflect the cost of non-redeemable cumulative preference
shares.
FULLER SMITH & TURNER P.L.C.
NOTES TO THE ACCOUNTS
FOR THE 26 WEEKS ENDED 29 SEPTEMBER 2001
1. INTERIM STATEMENT
The interim statement does not constitute full accounts as defined by S.240 of
the Companies Act 1985. Full accounts for the year ended 31 March 2001,
including an unqualified auditors' report, have been delivered to the
Registrar of Companies. The interim accounts, which are unaudited, have been
prepared on the basis of accounting policies set out in the Company's March
2001 Annual Report and Accounts, apart from the adoption of FRS 18 Accounting
Policies and FRS 19 Deferred Tax this financial year.
FRS 18 has had no effect on the published numbers. The impact of FRS 19 is
discussed in note 3.
2. SEGMENTAL ANALYSIS
26 weeks to 29 September 2001 Fuller's Beer Total
Inns Company
£000 £000 £000
TOTAL SALES 47,279 29,399 76,678
Inter-segment sales - (11,378) (11,378)
----------- ----------- -----------
Sales to third parties 47,279 18,021 65,300
----------- ----------- -----------
Segmental profit before FRS 11 7,157 2,257 9,414
Impairment of properties (FRS 11) (1,350) - (1,350)
----------- ----------- -----------
SEGMENTAL PROFIT 5,807 2,257 8,064
----------- -----------
Net central costs (2,143)
-----------
Operating profit 5,921
Interest payable (net) (824)
-----------
Profit on ordinary activities before
exceptional items
5,097
Non-operating exceptional losses (3,821)
-----------
Profit on ordinary activities before 1,276
taxation
-----------
----------- ----------- -----------
ASSETS EMPLOYED
Segmental assets 159,262 16,783 176,045
----------- -----------
Unallocated net liabilities (24,849)
-----------
Total net assets 151,196
-----------
Fuller's Beer Total
Inns Company
26 weeks to 23 September 2000 Restated
£000 £000 £000
TOTAL SALES 46,035 28,413 74,448
Inter-segment sales - (11,443) (11,443)
----------- ----------- -----------
Sales to third parties 46,035 16,970 63,005
----------- ----------- -----------
SEGMENTAL PROFIT 8,000 1,867 9,867
----------- -----------
Net central costs (1,999)
-----------
Operating profit 7,868
Interest payable (net) (640)
-----------
Profit on ordinary activities before 7,228
exceptional items
Non-operating exceptional profits 3,142
-----------
Profit on ordinary activities before 10,370
taxation
-----------
----------- ----------- -----------
ASSETS EMPLOYED
Segmental assets 144,013 16,087 160,100
----------- -----------
Unallocated net liabilities (11,258)
-----------
Total net assets 148,842
-----------
53 weeks to 31 March 2001 Fuller's Beer Total
Inns Company
Restated
£000 £000 £000
TOTAL SALES 92,552 59,113 151,665
Inter-segment sales - (23,611) (23,611)
----------- ----------- -----------
Sales to third parties 92,552 35,502 128,054
----------- ----------- -----------
Segmental profit before FRS 11/12 16,143 4,758 20,901
FRS11/12 31 - 31
----------- ----------- -----------
SEGMENTAL PROFIT 16,174 4,758 20,932
----------- -----------
Net central costs (4,080)
-----------
Operating profit 16,852
Interest payable net (1,197)
-----------
Profit on ordinary activities before
exceptional profits 15,655
Non-operating exceptional profits 3,676
-----------
Profit on ordinary activities before 19,331
taxation
-----------
----------- ----------- -----------
ASSETS EMPLOYED
Segmental assets 152,491 16,044 168,535
----------- -----------
Unallocated net liabilities (16,169)
-----------
Total net assets 152,366
-----------
3. TAXATION
Corporation tax and deferred tax (arising from the adoption of FRS 19) has
been provided as follows:
29 September 23 September 31 March
2001 2000 2001
TAX ON NORMALISED PROFITS £000 £000 £000
Corporation tax (as previously 1,869 2,169 4,495
reported)
Deferred tax charge arising from FRS 183 140 306
19
------------ ------------ ------------
Total tax on normalised profits 2,052 2,309 4,801
TAX ON EXCEPTIONAL ITEMS
Corporation tax (as previously - - 478
reported)
Deferred tax credit arising from FRS (475) (313) (313)
19
------------ ------------ ------------
Total tax charge 1,577 1,996 4,966
------------ ------------ ------------
Effective rate on normalised profits 31.8% 31.9% 30.7%
post-FRS 19
Effective rate on normalised profits 29.0% 30.0% 28.8%
pre-FRS 19
Normalised profits are profits after interest before exceptional operating and
non-operating costs/profits.
The adoption of FRS 19 has also resulted in an increase in the deferred tax
liability as stated in the balance sheet of £2.9 million, the majority of
which relates to prior periods and this has been accounted for as a prior
period adjustment. The deferred tax provision has not been discounted to its
present value.
4. ORDINARY DIVIDENDS 29 September 23 September 31 March
2001 2000 2001
pence pence pence
Interim 4.47 4.38 4.38
Final - - 10.00
------------ ------------ ------------
4.47 4.38 14.38
------------ ------------ ------------
The figures above are for the listed £1 'A' ordinary shares and unquoted £1
'C' ordinary shares. The unquoted 10p 'B' shares carry dividend rights of 1/
10 of those applicable to the £1 'A' ordinary shares.
5. (LOSS)/EARNINGS PER 29 September 23 September 31 March
SHARE
2001 2000 2001
£000 £000 £000
Restated Restated
(Loss)/profit attributable (361) 8,314 14,245
to equity shareholders
Non-operating exceptional 3,346 (3,455) (3,801)
items net of tax
FRS 11 impairment of fixed 1,350 - 877
assets
FRS 12 provision for onerous - - (618)
leases net of tax
------------ ------------ ------------
Normalised earnings 4,335 4,859 10,703
attributable to equity
shareholders
------------ ------------ ------------
Weighted average share 25,100,000 25,069,000 25,069,000
capital
Dilutive outstanding options - 54,000 46,000
---------------- ---------------- ----------------
Adjusted weighted average 25,100,000 25,123,000 25,115,000
share capital
---------------- ---------------- ----------------
Basic (loss)/earnings per (1.44)p 33.16p 56.82p
share*
Diluted (loss)/earnings per (1.44)p 33.09p 56.72p
share*
Normalised earnings per 17.27p 19.38p 42.69p
share*
*Calculated on the listed £1 'A' ordinary share or unquoted £1 'C ' ordinary
share. Earnings on the unquoted 'B' 10p ordinary shares are 1/10 of the
figures for the £1 'A' ordinary shares.
The calculation is based on earnings (after deducting preference dividends)
and on the average weighted ordinary share capital. Normalised earnings
exclude all exceptional non-operating costs/profits, FRS 11 impairment of
fixed assets and FRS 12 provision for onerous leases.
In accordance with FRS 14 the diluted loss per share for the six months ended
29 September 2001 is equivalent to the basic loss per share as any conversion
of options would decrease the net loss per share.
6. SHAREHOLDERS' INFORMATION
Shareholders who converted their £1 'A' ordinary shares to £1 'C' ordinary
shares are reminded that they have 30 days from 3 December 2001 should they
wish to reconvert those 'C' shares back to 'A' shares. Appropriate forms are
available from the Company Secretary. The next available opportunity after
that will be June 2002.
7. INTERIM REPORT
Copies of the interim report are being sent to shareholders and will be
available from the Company's registered office: Griffin Brewery, Chiswick,
London W4 2QB.
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