Interim Results

Fuller,Smith&Turner PLC 24 November 2006 24 November 2006 FULLER SMITH & TURNER P.L.C. Financial results for the six months ended 30 September 2006 Reported under International Financial Reporting Standards (IFRS) Financial Highlights â€¢ Turnover up 35% to Â£91.1 million (2005: Â£67.4 million) â€¢ Profit before tax up 31% to Â£10.9 million (2005: Â£8.4 million) â€¢ EBITDA up 48% to Â£20.4 million (2005: Â£13.8 million) â€¢ Basic earnings per share1 increased 33% at 33.54p (2005: 25.29p) â€¢ Interim dividend per share1 increased 15% to 6.47p (2005: 5.63p) Corporate Progress â€¢ Strong performance across the Group â€¢ Gales successfully integrated and expected synergies achieved â€¢ Managed Pubs profits up 82% â€¢ Uninvested like for like sales in Managed Pubs up 4.3% â€¢ Tenanted Inns profits up 61% â€¢ Beer Company profits up 14% â€¢ Net interest costs up Â£2.9 million â€¢ Five new managed houses in the second half 1 Calculated on the Â£1 'A' ordinary share Commenting on the results, Anthony Fuller, Chairman of Fuller's, said: "We have seen an excellent start to the year, with all parts of the business performing well. Our profits for the first half increased by 31% to Â£10.9 million (2005: Â£8.4 million) on an increase in turnover of 35% to Â£91.1 million (2005: Â£67.4 million). "The Gales trading pattern provides a summer balance to our previously winter-weighted business and we anticipate achieving further good results from the combined estate in the second half of the year, although the comparative figures will include four months of Gales trading. "The Â£17.1 million proceeds from the sale of the Brigstow Hotel in Bristol will allow us to continue investing in new pubs for Fuller's Inns, and we expect to add to the five acquisitions that are already due to complete in the second half. We will continue to invest in both our managed and tenanted estates to prepare for the coming smoking ban. "Fuller's has a strong management team, a consistent long-term strategy and a commitment to growing returns for our shareholders. With this in mind, we look to the future with optimism and determination and, although the second half will see more measured growth as we celebrate the anniversary of the Gales acquisition in December, we are well-placed to continue our good performance." - 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 Vanessa Maydon 07802 961 902 Rebecca Penney 07795 108 178 Notes to Editors For an official photo please e-mail photo@fullers.co.uk and one will automatically be sent by return. Copies of the interim statement and presentation will be available on the Group's web site, 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. INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2006 CHAIRMAN'S STATEMENT Whatever You Do, Take Pride We have seen an excellent start to the year, with all parts of the business performing well. Our profits for the first half increased by 31% to Â£10.9 million (2005: Â£8.4 million) on an increase in turnover of 35% to Â£91.1 million (2005: Â£67.4 million). Earnings before interest, tax, depreciation and amortisation (EBITDA) were up 48% to Â£20.4 million (2005: Â£13.8 million). While the acquisition of George Gale & Co in December 2005 has been the single largest contributor to this increase, I am delighted to report that the benefits and synergies from the acquisition are underpinned by solid underlying growth, with uninvested like for like sales in our managed pubs increasing by 4.3%. Fuller's Inns has seen an increase in profits of 65% to Â£13.8 million (2005: Â£8.4 million) and, during the first half, we have invested Â£6.6 million in our estate maintaining high retail standards, and providing for the future through improved cellars and kitchens and enhanced dining areas. Included in this figure is the cost of our newest venture, The Vintry, in the City of London. We continue to look for suitable sites to grow our estate, and have agreed terms for the purchase of five managed pubs, with completion due in the second half. The Fuller's Beer Company has seen an increase in profits of 14% to Â£4.2 million (2005: Â£3.6 million) and London Pride, the country's leading premium ale, has increased its share of the cask, bottled and canned ale markets. We continue to deliver good returns for our shareholders with earnings per share increasing by 33% to 33.54p (2005: 25.29p). In July, the Company made a tender offer to shareholders providing the opportunity to dispose of some of their 'B' shares, and 1,849,000 10p 'B' ordinary shares were bought back and cancelled at a price of Â£1.12 per share. Against this backdrop, we have increased the interim dividend by 15% to 6.47p per Â£1 'A' and 'C' ordinary share and 0.647p per 10p 'B' ordinary share. This will be paid on Friday 5 January 2007, to shareholders on the share register as at Friday 8 December 2006. FULLER'S INNS It has been a very strong half year for Fuller's Inns, and the summer orientated Gales pubs add an excellent balance to our business. Profits for the division have increased by 65% to Â£13.8 million (2005: Â£8.4 million) on turnover up 41% to Â£72.3 million (2005: Â£51.4 million). As well as the obvious benefits of the larger estate, our performance has been boosted by a good summer, a strong, yet lean, management team and excellent pubs. Fuller's Inns had 362 pubs and hotels as at 30 September 2006 (2005: 250), comprising 200 tenancies, 154 managed houses and eight hotels. Managed Pubs The Managed Pubs division has produced excellent results during the first half, with profits up 82%. In addition to the pubs acquired from Gales, the eight additional acquisitions made last year have also contributed significantly to the increase in profits. It is particularly pleasing to see a strong underlying trend, with like for like sales increasing by 4.3%. This is the result of good management both at head office and pub level and a consistent strategy focusing on outstanding cask conditioned ales, delicious food, great wines, and exemplary service. The enlarged estate provides greater flexibility to transfer pubs between the managed and tenanted estates in order to maximise profitability. This is an important advantage of running both managed and tenanted business models and, in the first half of the year, eight managed pubs were transferred to tenancy. In addition, two pubs that did not fit the Fuller's profile were sold. We are continuing to acquire and open new sites, and The Vintry is our most recent addition. Situated in the heart of the City, on Abchurch Lane, The Vintry boasts a range of around 100 wines and exceptional food in a stylish environment. We will complete on five new pubs to add to the estate in the second half, and we are optimistic that more will follow. In order to continue to grow our business, we have continued to invest in the estate, training and sales initiatives. We have completed 11 major pub projects in the first half (2005: 13), with 13 more planned for the second half compared to four last year. Many of our investments aim to further extend the food offer, improve cellars, install 'extra cold' cellar dispense systems and enhance our outside areas. Repairs for the second half are anticipated to increase by Â£0.7 million on the same period last year. This combination of a focused strategy, organic growth, investment in our estate, motivated people and well-run pubs means that we are in a strong position to maintain high retail standards, minimise the impact of the coming smoking ban, and continue to grow our business. Tenanted Inns Our Tenanted Inns division has also delivered a strong performance in the first half, with profits up 61%. The addition of the Gales pubs was a major contributor to this success, complementing the strong underlying growth with like for like turnover increasing by 3%. Investment in our tenanted pubs, including signage and cellars, led to an increase in repairs expenditure of 73% against the same period last year. As with our managed estate, we have identified a smoking solution for each pub and will work with our tenants and lessees to help maximise the opportunities presented. Fuller's Hotels Fuller's Hotels continued to make progress, with profits up 6% on a 2% increase in turnover, driven by a 6% increase in occupancy. Revpar (revenue per available room) was up 4% at Â£48.91. On 31 October 2006, we sold the Brigstow Hotel for Â£17.1 million, resulting in a net profit on disposal of Â£7.6 million. The Brigstow's net book value at 30 September 2006 was Â£9.1 million and it contributed Â£0.7 million to profits in the year to 1 April 2006. Located in Bristol, the Brigstow was a wonderful development for Fuller's, however it was of a contemporary design and unlike any other hotel in our estate. The sale of the Brigstow has simplified our business model for the Hotels division and allows us to concentrate on the more traditional pubs and hotels market, offering high quality accommodation and delicious food in a welcoming pub environment. We are leveraging the expertise from the Hotels division to develop our estate of pubs with bedrooms, many of which we acquired from Gales. THE FULLER'S BEER COMPANY The Fuller's Beer Company has had a good start to the year with profits up 14% to Â£4.2 million (2005: Â£3.6 million) on turnover up 25% to Â£29.1 million (2005: Â£23.3 million). The Gales acquisition has helped increase our total beer volumes by 22% to 163,000 barrels. Although the hot summer led to a high proportion of this increase coming from lagers, our own beer sales also performed well, rising by 8%. In the highly competitive off trade market, we saw an increase in volumes of 20%, which was particularly pleasing. In addition, our export volumes rose by 25% with sales successes including Spain, Scandinavia and North America. London Pride has consolidated its position as the UK's favourite premium ale and has gained further market share of the cask, bottled and canned ale sectors. Our "Whatever you do, take Pride" advertising campaign has been running for 10 years, and has been a key element of London Pride's success. During this period, London Pride has more than trebled its share of the total ale market. We have recently signed a five-year deal making London Pride the official beer of the English Golf Union, which will see the brand supporting a number of activities at club level. Golf is one of the most popular sports in the country, and a great match with real ale. The sponsorship package will improve access for London Pride to the 1,900 golf clubs in England and Wales, and raise its profile among their members. In addition, we will be looking to exploit further opportunities in the larger trading area that resulted from the Gales acquisition. The Wine Division has also had a successful start to the year with profits up 45%. The former Gales estate provides many opportunities to grow this part of the Beer Company and we have seen a 17% increase in wine volumes outside our tied estate as a result of the quality range we offer. PROSPECTS It has been an exceptional start to the year with strong performances across all parts of the business. We have maximised the benefits and synergies resulting from the Gales acquisition, and underpinned these with excellent like for like results. The Gales trading pattern provides a summer balance to our previously winter-weighted business and we anticipate achieving further good results from the combined estate in the second half of the year, although the comparative figures will include four months of Gales trading. The Â£17.1 million proceeds from the sale of the Brigstow Hotel in Bristol will allow us to continue investing in new pubs for Fuller's Inns, and we expect to add to the five acquisitions that are already due to complete in the second half. We will continue to invest in both our managed and tenanted estates to prepare for the coming smoking ban. The Fuller's Beer Company continues to perform well, with London Pride outperforming its rivals in a highly competitive market. We can offer our tied and free trade customers an unrivalled portfolio of ales and an excellent range of wines. Fuller's has a strong management team, a consistent long-term strategy and a commitment to growing returns for our shareholders. With this in mind, we look to the future with optimism and determination and, although the second half will see more measured growth as we celebrate the anniversary of the Gales acquisition in December, we are well-placed to continue our good performance. A.G.F. Fuller, CBE Chairman 24 November 2006 FULLER SMITH & TURNER P.L.C. FINANCIAL HIGHLIGHTS FOR THE 26 WEEKS ENDED 30 SEPTEMBER 2006 Unaudited Unaudited Audited 26 weeks to 26 weeks to 52 weeks to 30 September 1 October Change 1 April 2006 2005 2006/2005 2006 Â£000 Â£000 Â£000 Restated ____________________________ ___________ ___________ ___________ ____________ Revenue 91,062 67,356 35.2% 145,148 Profit before tax 10,924 8,368 30.5% 15,310 Adjusted Profits 1 10,924 8,368 30.5% 17,952 Pre-exceptional EBITDA 2 20,440 13,817 47.9% 32,149 Basic earnings per share 3 33.54p 25.29 p 32.6% 46.40 p Adjusted earnings per share 4 33.54p 25.29 p 32.6% 54.67 p Dividend per share 3 6.47p 5.63 p 14.9% 19.75 p Gearing ratio 80.7% 21.0% N/A 83.5% ____________________________ ___________ ___________ ___________ ____________ 1. Adjusted profit is the profit before tax excluding exceptional items. 2. Pre-exceptional earnings before interest, tax, depreciation and amortisation. 3. Calculated on the Â£1 'A' ordinary share. 4. Calculated using adjusted profits after tax and the same weighted average number of shares as for the basic earnings per share. FULLER SMITH & TURNER P.L.C. GROUP INCOME STATEMENT FOR THE 26 WEEKS ENDED 30 SEPTEMBER 2006 Unaudited Unaudited Audited 26 weeks to 26 weeks to 52 weeks to 30 September 1 October 1 April 2006 2005 2006 Â£000 Â£000 Â£000 Restated REVENUE 91,062 67,356 145,148 Operating costs (75,953) (57,728) (122,723) ----------------- ----------------- ------------------ OPERATING PROFIT 15,109 9,628 22,425 Profit on disposal of properties - - 265 Reorganisation costs - - (2,907) Finance revenue 59 85 104 Finance costs (4,244) (1,345) (4,577) ----------------- ------------------ ------------------ PROFIT BEFORE TAX 10,924 8,368 15,310 Taxation (3,441) (2,722) (4,932) ----------------- ------------------ ------------------ PROFIT FOR THE PERIOD 7,483 5,646 10,378 ================= ================== ================== PROFIT FOR THE PERIOD IS ATTRIBUTABLE TO: Ordinary shareholders 7,483 5,646 10,378 ----------------- ----------------- ----------------- 7,483 5,646 10,378 ================= ================= ================= EARNINGS PER SHARE PER Â£1 'A' ORDINARY SHARE OR UNQUOTED Â£1 'C' ORDINARY SHARE Basic 33.54 p 25.29 p 46.40 p Diluted 33.15 p 25.03 p 45.89 p Adjusted basis 33.54 p 25.29 p 54.67 p Diluted adjusted basis 33.15 p 25.03 p 54.07 p EARNINGS PER SHARE PER UNQUOTED 10P 'B' ORDINARY SHARE Basic 3.35 p 2.53 p 4.64 p Diluted 3.32 p 2.50 p 4.59 p Adjusted basis 3.35 p 2.53 p 5.47 p Diluted adjusted basis 3.32 p 2.50 p 5.41 p The results and EPS measures above are all in respect of continuing operations of the Group. Finance costs for the 26 weeks to 1 October 2005 have been restated to include the finance charge on net pension liabilities, which were originally shown as part of operating costs. The details of this restatement are given in note 3. FULLER SMITH & TURNER P.L.C. GROUP BALANCE SHEET 30 SEPTEMBER 2006 Unaudited Unaudited Audited At At At 30 September 1 October 1 April 2006 2005 2006 Â£000 Â£000 Â£000 Restated NON-CURRENT ASSETS Goodwill 24,493 - 24,493 Property, plant and equipment 306,855 216,558 315,985 Investment property 8,284 1,623 8,304 Other non-current assets 927 737 1,006 Deferred tax assets 7,661 4,084 7,579 ------------------ ------------------ ------------------ TOTAL NON-CURRENT ASSETS 348,220 223,002 357,367 CURRENT ASSETS Inventories 5,902 4,691 5,484 Trade and other receivables 14,908 12,668 14,647 Cash and short term deposits 1,336 1,773 1,370 Assets classified as held for sale 9,294 - - ------------------ ------------------ ------------------ TOTAL CURRENT ASSETS 31,440 19,132 21,501 CURRENT LIABILITIES Bank overdraft 164 7,096 286 Bank loans 5,000 - 2,500 Trade and other payables 34,485 25,352 34,763 Current tax payable 2,756 2,991 1,391 ------------------ ------------------ ------------------ TOTAL CURRENT LIABILITIES 42,405 35,439 38,940 NON-CURRENT LIABILITIES Bank loans 92,000 - 97,000 Debenture stock 27,022 27,011 27,016 Loan notes 2,971 - 2,971 Preference shares 1,600 1,600 1,600 Retirement benefit obligations 21,919 11,624 21,646 Deferred tax liabilities 33,898 12,157 34,036 ------------------ ------------------ ------------------ TOTAL NON-CURRENT LIABILITIES 179,410 52,392 184,269 ------------------ ------------------ ------------------ NET ASSETS 157,845 154,303 155,659 ================== ================== ================== CAPITAL AND RESERVES Share capital 22,758 22,857 22,870 Share premium account 4,594 4,248 4,289 Capital redemption reserve 3,087 2,902 2,902 Treasury shares (4,846) (4,238) (4,662) Retained earnings 132,252 128,534 130,260 ------------------ ------------------ ------------------ TOTAL SHAREHOLDERS' EQUITY 157,845 154,303 155,659 ================== ================== ================== Comparative figures for the 26 weeks to 1 October 2005 have been restated to reflect the grossing up of deferred tax between the liability and asset. FULLER SMITH & TURNER P.L.C. GROUP CASH FLOW STATEMENT FOR THE 26 WEEKS ENDED 30 SEPTEMBER 2006 Unaudited Unaudited Audited 26 weeks to 26 weeks to 52 weeks to 30 September 1 October 1 April 2006 2005 2006 Â£000 Â£000 Â£000 Restated Group operating profit 15,109 9,628 22,425 Depreciation 5,316 4,263 9,419 Impairment of properties - - 175 Loss on disposal of property plant and equipment 15 101 130 Reorganisation costs - - (2,907) Difference between pension charge and cash paid (975) (209) (557) Share based payment charges 660 462 990 Change in trade and other receivables (357) (594) (1,148) Change in inventories (418) (265) 77 Change in trade and other payables (393) 2,125 1,790 ----------------- ---------------- ----------------- Cash generated from operations 18,957 15,511 30,394 Tax paid (1,797) (2,091) (4,814) ----------------- ---------------- ----------------- Cash generated from operating activities 17,160 13,420 25,580 ----------------- ---------------- ----------------- CASH FLOW FROM INVESTING ACTIVITIES Purchase of property, plant and equipment (6,578) (19,900) (21,561) Proceeds from sale of property, plant and equipment 1,299 1,650 3,461 Interest received 59 85 104 Acquisition of subsidiaries - - (89,645) -------------- ------------- -------------- Net cash flow from investing activities (5,220) (18,165) (107,641) -------------- -------------- -------------- CASH FLOW FROM FINANCING ACTIVITIES Proceeds from issue of share capital 378 124 178 Purchase of own shares (2,814) (1,234) (1,864) Sale of treasury shares 271 256 256 Interest paid (3,967) (1,351) (3,316) Preference dividends paid (60) (60) (120) Equity dividends paid (3,160) (2,923) (4,183) (Decrease)/increas e in bank loans (2,500) - 87,584 --------------- ---------------- ----------------- Net cash used in financing activities (11,852) (5,188) 78,535 --------------- ---------------- ----------------- Net movement in cash and cash equivalents 88 (9,933) (3,526) Cash and cash equivalents at start of the period 1,084 4,610 4,610 --------------- ---------------- ---------------- Cash and cash equivalents at period end 1,172 (5,323) 1,084 =============== ================ ================ Cash and cash equivalents comprise cash and other short term highly liquid investments with a maturity of three months or less. There were no significant non-cash transactions during the period, nor were there any in the 26 weeks to 1 October 2005. During the year to 1 April 2006, there was one significant non-cash transaction, which was the issuing of Â£2,971,000 of loan notes on the acquisition of George Gale & Co. Ltd. The comparative figures for the 26 weeks to 1 October 2005 have been restated to present the cash flows in line with the presentation adopted in the full accounts for the period ended 1 April 2006. The effect has been that the cash flow statement now starts with operating profit instead of profits before tax. In addition, Â£175,000 of interest charge is now presented within operating profit. There is no overall change in the net movement in cash and cash equivalents arising from this restatement. FULLER SMITH & TURNER P.L.C. STATEMENT OF RECOGNISED INCOME AND EXPENSE FOR THE 26 WEEKS ENDED 30 SEPTEMBER 2006 Unaudited Unaudited Audited 26 weeks to 26 weeks to 52 weeks to 30 September 1 October 1 April 2006 2005 2006 Â£000 Â£000 Â£000 Reduction in deferred tax liability due to indexation 159 237 212 Net actuarial (losses)/gains on pension schemes (789) 1,053 (991) --------------- ---------------- --------------- Income and expense recognised directly in equity (630) 1,290 (779) Profit for the period 7,483 5,646 10,378 --------------- ---------------- --------------- Total recognised income and expense for the period 6,853 6,936 9,599 =============== =============== =============== FULLER SMITH & TURNER P.L.C. NOTES TO THE ACCOUNTS 1. INTERIM STATEMENT Basis of preparation This interim statement, which is abridged and unaudited, has been prepared in accordance with International Financial Reporting Standards, which are mandatory for interim financial statements, and is prepared on the basis of the accounting policies which are applicable as at the date of approval of these financial statements. These accounting policies are consistent with the policies applied in the 52 weeks to 1 April 2006, which are published as part of the accounts for that period and which are available from the Group's website. The Group has not adopted IAS 34 'Interim Financial Reporting', which is not mandatory for UK Groups. The taxation charge is calculated by applying the annual effective tax rate to the profit for the period. This interim statement does not constitute full accounts as defined by S.240 of the Companies Act 1985. The figures for the 52 weeks to 1 April 2006 are derived from the published statutory accounts. Full accounts for the 52 weeks ended 1 April 2006, including an unqualified auditors' report, have been delivered to the Registrar of Companies. 2. SEGMENTAL ANALYSIS Unaudited - 26 Fuller's Inns The Fuller's Unallocated Total weeks to 30 September Beer Company 2006 Â£000 Â£000 Â£000 Â£000 TOTAL REVENUE 72,281 29,130 - 101,411 Inter-segment sales - (10,349) - (10,349) ---------------- ----------------- ---------------- ---------------- REVENUE FROM THIRD PARTIES 72,281 18,781 - 91,062 ---------------- ----------------- ---------------- ---------------- Operating profit 13,779 4,165 (2,835) 15,109 Net finance costs - - (4,185) (4,185) ---------------- ----------------- ---------------- ---------------- PROFIT BEFORE TAX 13,779 4,165 (7,020) 10,924 ---------------- ----------------- ---------------- ---------------- Restated unaudited Fuller's Inns The Fuller's Unallocated Total - 26 weeks to 1 October 2005 Beer Company Â£000 Â£000 Â£000 Â£000 TOTAL REVENUE 51,366 23,265 - 74,631 Inter-segment sales - 7,275) - (7,275) ---------------- ----------------- ---------------- ---------------- REVENUE FROM THIRD PARTIES 51,366 15,990 - 67,356 ---------------- ----------------- ---------------- ---------------- Operating profit 8,359 3,643 (2,374) 9,628 Net finance costs - - (1,260) (1,260) ---------------- ----------------- ---------------- ---------------- PROFIT BEFORE TAX 8,359 3,643 (3,634) 8,368 ---------------- ----------------- ---------------- ---------------- As explained in note 3, operating profit has been restated for the presentation of the finance charge on net pension liabilities. Audited - 52 weeks Fuller's Inns The Fuller's Beer Unallocated Total to 1 April 2006 Company Â£000 Â£000 Â£000 Â£000 TOTAL 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 18,984 8,445 (5,004) 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 18,779 7,470 (10,939) 15,310 ---------------- ----------------- ---------------- ---------------- 3. FINANCE COSTS Unaudited Unaudited Audited 26 weeks to 26 weeks to 52 weeks to 30 September 1 October 1 April 2006 2005 2006 Â£000 Â£000 Â£000 Restated Preference dividends (60) (60) (120) Finance charge on net pension liabilities (121) (175) (387) Interest payable on bank loans and overdraft (4,063) (1,110) (4,070) ---------- ---------- ---------- (4,244) (1,345) (4,577) ========== ========== ========== Finance costs for the 26 weeks to 1 October 2005 have been restated to include the finance charge on net pension liabilities, which was originally shown as part of operating costs. The Group consider that this change in presentation is in line with evolving best practise in interpreting the requirements of IFRSs, and that it presents more relevant information by aiding comparability. This restatement has no effect on profit before or after tax, or on basic or diluted earnings per share for the 26 weeks to 1 October 2005. It has the effect of reducing operating costs for the 26 week to 1 October 2005 by Â£175,000 and of increasing finance costs by Â£175,000. 4. TAXATION Unaudited Unaudited Audited 26 weeks to 26 weeks to 52 weeks to 30 September 1 October 1 April 2006 2005 2006 Â£000 Â£000 Â£000 TAX ON PROFIT ON ORDINARY ACTIVITIES Current income tax: Corporation tax 3,247 2,454 4,548 Amounts underprovided in previous periods - - 63 ------------- ------------ ------------ Total current income tax 3,247 2,454 4,611 -------------- ------------- ------------ Deferred tax: Origination and reversal of temporary differences 194 268 321 ----------- ----------- ------------ Total deferred 194 268 321 tax ------------ ------------ ------------ TOTAL TAX CHARGED IN THE INCOME STATEMENT 3,441 2,722 4,932 ============ ============ ============ TAX RELATING TO ITEMS (CREDITED)/DEBITED TO EQUITY Deferred tax: Reversal of deferred tax liability on revaluations (159) (237) (212) Actuarial (loss)/gain on pension schemes (338) 451 (425) --------------- -------------- ------------- TAX IN THE STATEMENT OF RECOGNISED INCOME AND EXPENSE (497) 214 (637) ================ ================ =============== 5. DIVIDENDS PAID AND PROPOSED Unaudited Unaudited Audited 26 weeks to 26 weeks to 52 weeks to 30 September 1 October 1 April 2006 2005 2006 Â£000 Â£000 Â£000 DECLARED AND PAID DURING THE PERIOD Equity dividends on ordinary shares: Final dividend paid in the period 3,160 2,923 2,923 Interim dividend paid in the period - - 1,260 ---------------- ---------------- -------------- 3,160 2,923 4,183 Dividends on cumulative preference shares 60 60 120 ---------------- ---------------- -------------- Dividends paid 3,220 2,983 4,303 ================= =============== ============== DIVIDENDS PER SHARE DECLARED IN RESPECT OF THE PERIOD pence pence pence Interim 6.47 5.63 5.63 Final - - 14.12 --------------- --------------- --------------- 6.47 5.63 19.75 =============== ============= ============== The pence figures are for the Â£1 'A' ordinary shares and unquoted Â£1 'C' ordinary shares. The unquoted 10p 'B' ordinary shares 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. INTERIM DIVIDEND DECLARED BUT NOT YET PAID During the period the directors have declared an interim dividend payable on 5 January 2007 of 6.47p (2005: 5.63p) for the Â£1 'A' ordinary shares and unquoted 'C' ordinary shares, and 0.647p (2005: 0.563p) for the unquoted 'B' ordinary shares, with a total estimated cost to the company of Â£1,445,000 (2005: Â£1,260,000) 6. EARNINGS PER SHARE Unaudited Unaudited Audited 26 weeks to 26 weeks to 52 weeks to 30 September 1 October 1 April 2006 2005 2006 Â£000 Â£000 Â£000 Profit attributable to ordinary shareholders 7,483 5,646 10,378 Reorganisation costs net of tax - - 2,035 Profit on disposal of properties net of tax - - (185) -------------- --------------- -------------- Adjusted earnings attributable to ordinary shareholders 7,483 5,646 12,228 ============== ============= ============= Number Number Number Weighted average share capital 22,310,000 22,328,000 22,365,000 Dilutive outstanding options 264,000 232,000 250,000 --------------- --------------- --------------- Adjusted weighted average share capital 22,574,000 22,560,000 22,615,000 ============== =============== ============== Â£1 'A' ordinary Pence Pence Pence shares or unquoted Â£1 'C' ordinary shares Basic earnings per share 33.54 25.29 46.40 Diluted earnings per share 33.15 25.03 45.89 Adjusted earnings per share 33.54 25.29 54.67 Diluted adjusted earnings per share 33.15 25.03 54.07 Unquoted 10p 'B' Pence Pence Pence ordinary shares Basic earnings per share 3.35 2.53 4.64 Diluted earnings per share 3.32 2.50 4.59 Adjusted earnings per share 3.35 2.53 5.47 Diluted adjusted earnings per share 3.32 2.50 5.41 The earnings per share calculation is based on earnings from continuing operations (after deducting preference dividends) and on the weighted average ordinary share capital. Diluted earnings per share are calculated on the same earnings figure as for basic earnings per share, divided by the weighted average number of ordinary shares outstanding during the period 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. Previously reported adjusted earnings per share in the 1 April 2006 financial statements had been calculated on an historic UK GAAP basis. This has been restated in these financial statements so that it is on a consistent basis with the adjusted earnings per share calculated for the 26 weeks to 30 September 2006. Adjusted earnings per share are calculated on earnings excluding exceptional items and on the same weighted average ordinary share capital as for the basic earnings per share. 7. RECONCILIATION OF MOVEMENTS IN TOTAL EQUITY Unaudited Unaudited Audited 26 weeks to 26 weeks to 52 weeks to 30 September 1 October 1 April 2006 2005 2006 Â£000 Â£000 Â£000 Opening total equity 155,659 152,283 152,283 Adjustments relating to the adoption of IAS 32 & 39 - (1,600) (1,600) ----------------- ---------------- --------------- Opening equity restated 155,659 150,683 150,683 Net actuarial (loss)/gain on pension schemes (789) 1,053 (991) Reversal of deferred tax liability on revaluations 159 237 212 Issue of new shares 376 124 178 Shares purchased including treasury shares (2,814) (1,234) (1,864) Shares released including treasury shares 271 255 256 Dividends declared and paid (3,160) (2,923) (4,183) Cost of share-based payments 660 462 990 Profit for the period 7,483 5,646 10,378 ---------------- ---------------- -------------- Closing total equity 157,845 154,303 155,659 ================ ================ ============== 8. POST BALANCE SHEET EVENT On 31 October 2006 the Company sold the Brigstow Hotel for Â£17.1 million resulting in a profit of Â£7.6 million. At 30 September 2006 the net book value of the Brigstow Hotel was Â£9.1 million. As required under IFRS5: Non current assets held for sale and discontinued operations, this has been disclosed in the balance sheet under Assets classified as held for sale. 9. SHAREHOLDERS' INFORMATION Shareholders who converted their Â£1 'A' ordinary shares to Â£1 'C' ordinary shares are reminded that they have 30 days from 24 November 2006 should they wish to reconvert those 'C' shares back to 'A' shares. The next available opportunity after that will be June 2007. For further details please contact the Company Secretariat on 020 8996 2115. 10. 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 and the Company's website www.fullers.co.uk. 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