Interim Results - 36 Weeks to 1 January 2000
MFI Furniture Group PLC
20 March 2000
MFI Furniture Group Plc
Preliminary Results for the 36 weeks ended 1 January 2000
MFI Furniture Group Plc, the UK's largest manufacturer and retailer of
kitchen and bedroom furniture, announces its results for the 36 weeks
to 1 January 2000.
Financial Highlights
* Group sales of continuing products up 3% to £532.2 million
* Operating profit up to £10.4 million (1998 : £3.6 million)
* Profit before tax and exceptional items to £9.1 million (1998:
£(2.9) million)
* Improvement in cash position by £122 million as a result of £136
million of property disposals
* Group now ungeared
* Underlying earnings per ordinary share of 1.31p
* Final dividend of 0.7p per share proposed making a final dividend
for the 36 week period 1.4p (1998: 0.7p)
Operational Highlights
* New management structure now firmly in place
* Successful launch of MFI's largest ever new range of kitchens
backed by promotional campaign produced marked sales improvement
* Howden Joinery maintained excellent growth record
* In depth work on strategy and branding underway
* Experimental high street outlet in Chiswick substantially exceeded
sales targets
* Website attracted 8000 registered shoppers and growing
contribution to sales
Commenting on the results John Hancock, Chief Executive said:
'This has been a year of transition and real progress for MFI.
'We have achieved both financial and operational stability, and
established what we believe is a solid platform for future
development.
'We are encouraged by the success of our new range of kitchens and we
aim to go forward into 2000 by growing our UK market share through
price leadership and innovation. A great deal of work is still to be
done but we are beginning to see results.'
Contacts:
MFI Furniture Group PLC
John Hancock, Chief Executive 020 8913 5319
Michael Williamson, Finance Director 020 8913 5343
Brunswick Group Limited
Susan Gilchrist / William Cullum 020 7404 5959
FINANCIAL HIGHLIGHTS
36 weeks to 52 Weeks to
1 Jan 2000 24 April 1999
CONSOLIDATED RESULTS £m £m
Turnover 532.3 810.4
Operating profit before exceptional 10.4 26.4
items
Operating profit/(loss) after 10.4 (8.4)
exceptional items
Profit on ordinary activities before 9.1 17.2
taxation and exceptional items
Profit on ordinary activities before 9.1 (24.8)
taxation
DIVIDEND PER SHARE
Interim 0.70p 0.70p
Final 0.70p -
Full year dividend 1.40p 0.70p
Dividend cover - pre-exceptional 0.9x 3.0x
BASIC EARNINGS PER SHARE
Earnings per share 1.31p (4.17)p
Earnings per share before 1.31p 2.08p
exceptional items
BORROWINGS
Gearing n/a 37%
Net borrowings at period end n/a £113.3m
RETAIL TRADING AREA ('000 sq ft at
end of period)
UK 4,745 4,678
France and Spain 745 712
RETAIL SALES PER SQ FT (£)
UK 83.7 119.0
France and Spain 61.4 101.0
NUMBER OF EMPLOYEES (at end of
period)
UK - Retail 5,430 4,592
- Trade 755 575
France and Spain 674 634
Manufacturing 2,910 2,662
Other operations 57 59
--------- ---------
9,826 8,522
--------- ---------
NUMBER OF EMPLOYEES (average) 8,706 9,177
CHAIRMAN'S STATEMENT
Current Trading
The preliminary results have been presented on a delivered sales basis
in line with the policy we adopted in 1998/99. The trading figures
below are sales orders over the period from Boxing Day to date. Group
sales orders for the period since the start of the sale on Boxing Day
have increased by 23%, although it should be noted that the Winter
sale was two weeks longer than the same period last year. The sales
orders in each of the businesses during the Winter sale period to date
increased against last year as follows:
Increase on Like for like
last year increase on last
year
MFI (UK Retail) 23% 23%
Howden Joinery 46% 20%
Hygena Cuisines 5% 3%
(Local Currency) ----- -------
GROUP 23% 21%
=== ====
There has been a strong recovery in our core kitchen market in the UK,
with a significant improvement in our higher priced Schreiber
kitchens. We continue to see buoyant sales in home office and beds.
Howden Joinery sales continue to run ahead of budget with like for
like sales running at 20%. The Hygena Cuisines sales have disappointed
slightly but the sale was two weeks shorter than last year as a result
of French Government legislation.
The UK Home Delivery Centres continue to improve service levels and
operational effectiveness. Deliveries over the sale period have
consistently run at 70,000 deliveries a week representing delivered
sales of over £15m each week in the UK.
Financial Results
Results are for the last 36 weeks of 1999, following the change in the
Group's accounting reference date to 31 December.
Turnover for the period was £532.3 million, representing a 3% growth
on a continuing-product basis. Operating profit was £10.4 million
compared with £3.6 million for the comparable period in 1998, and pre
tax profit of £9.1 million compares with the previous loss of £2.9
million.
Cash generation has been a key focus for management, in order to
provide a stable financial platform for the future of the business.
Highlights have been the generation of £122 million in cash over the
36-week period including property disposals. Debt of £114 million at
the end of April 1999 has been reduced, with an £8 million cash
position being achieved by 1 January 2000. The net assets of the
Group total £308 million, and this includes an ungeared balance sheet.
These results reflect the substantial progress that has been made over
the past year in stabilising and restructuring the Group. In view of
this strong improvement, the Board is proposing a final dividend of
0.7 pence per share, which increases the total dividend for the 36
week period to 1.4 pence, against the 0.7 pence paid during the
previous year.
Pro-forma figures for the calendar year 1999 show sales, operating
profits, pre tax profits and earnings per share of £796.9 million,
£33.2 million, £29.2 million and 3.73 pence per share respectively;
and these figures will become the baseline against which future years'
financial performance will be measured.
Review of Operations
Turnover in May-August was subdued but, from August onwards, the
launch of MFI's largest-ever new range of kitchens - backed by a
highly successful advertising campaign - improved sales markedly.
Beds and home-office furniture also performed strongly.
Recent years' investment in manufacturing have confirmed MFI as the
lowest-cost producer in Europe, and this position gives us a strong
competitive advantage in all our markets. Gross margins have improved
from 53% to 55%.
The new home delivery system continues to improve its customer
performance. During the peak season, it was completing over 70,000
deliveries per week.
Howden Joinery maintained its outstanding growth record. Sales rose
by 56% with like for like sales growth of 25%. Hygena Cuisines in
France also recorded a 12% growth in sales in local currency terms.
Major Operational Developments
The new management structure is now firmly in place, with a management
executive committee which represents all major business disciplines
tasked with managing the Group as an integrated whole. This is
already showing benefits in strategic effectiveness and tactical
focus.
The Group has commissioned a major research project to assess the
value of its MFI, Hygena and Schreiber brands. This is expected to
identify a number of opportunities for sales growth via new routes to
market.
We have opened an experimental high street outlet in Chiswick, which
has substantially exceeded its sales targets. Our website has
attracted some 8,000 registered shoppers, which is beginning to
reflect in additional new sales.
A Strengthened Financial Base
By the period end, we had completed the sale and partial leaseback of
10 retail sites for a gross consideration of £109.7 million as well as
the sale and leaseback of three Home Delivery Centres for £13m. At
the time of reporting, we have also disposed of the three remaining
Home Delivery Centres for proceeds of another £13 million. On 4
January 2000, we sold the Hygena packaging business for a total of £37
million in cash and assumed debt. These moves have strengthened the
Group's financial position materially.
CONSOLIDATED PROFIT AND LOSS ACCOUNT
36 Weeks to 1 January 2000
Continuing Discontinued
Operations Operations Total
Notes
£m £m £m
Turnover 2 514.3 18.0 532.3
Change in stocks 5.9 - 5.9
Other operating 3 15.4 - 15.4
income
---------------------------------------
535.6 18.0 553.6
---------------------------------------
Raw materials and 239.5 6.2 245.7
consumables
Staff costs 4 118.8 3.9 122.7
Depreciation of 23.6 1.3 24.9
tangible fixed assets
Other operating 145.4 4.5 149.9
charges
---------------------------------------
527.3 15.9 543.2
---------------------------------------
Operating profit / 2 8.3 2.1 10.4
(loss)
Profit / (loss) on 4.7 0.1 4.8
disposal of fixed
assets
---------------------------------------
Profit / (loss) on 13.0 2.2 15.2
ordinary activities
before interest
======================
Interest receivable 1.8
and similar income
Interest payable and (7.9)
similar charges
--------------
Profit / (loss) on 9.1
ordinary activities
before taxation
Tax 6 (1.3)
--------------
Profit / (loss) for 7.8
the financial period
Dividends 7 (8.3)
--------------
Amount transferred 8 (0.5)
(from) / to reserves
--------------
Earnings / (loss) per share
Earnings / (loss) per 1.31p
10p ordinary share
Diluted earnings / 1.31p
(loss) per 10p ordinary
share
52 Weeks to 24 April 1999
Continu Discont Total Exceptio
ing inued nal
Operati Operati Operatio items Total
ons ons ns
Notes Pre- Pre- (Note 5)
excepti exceptio
onal nal
£m £m £m £m £m
Turnover 2 784.6 25.8 810.4 - 810.4
Change in stocks (8.3) - (8.3) (4.2) (12.5)
Other operating 3 20.5 - 20.5 - 20.5
income
-------------------------------------------
796.8 25.8 822.6 (4.2) 818.4
-------------------------------------------
Raw materials 354.1 9.3 363.4 1.0 364.4
and consumables
Staff costs 4 176.4 5.1 181.5 6.7 188.2
Depreciation of 35.9 1.7 37.6 7.2 44.8
tangible fixed
assets
Other operating 207.3 6.4 213.7 15.7 229.4
charges
-------------------------------------------
773.7 22.5 796.2 30.6 826.8
-------------------------------------------
Operating profit 2 23.1 3.3 26.4 (34.8) (8.4)
/ (loss)
Profit / (loss) (1.3) - (1.3) (6.5) (7.8)
on disposal of
fixed assets
-------------------------------------------
Profit / (loss) 21.8 3.3 25.1 (41.3) (16.2)
on ordinary
activities
before interest
==================
Interest 2.2 - 2.2
receivable and
similar income
Interest payable (10.1) (0.7) (10.8)
and similar
charges
-----------------------
Profit / (loss) 17.2 (42.0) (24.8)
on ordinary
activities
before taxation
Tax 6 (4.8) 4.8 -
-----------------------
Profit / (loss) 12.4 (37.2) (24.8)
for the
financial period
Dividends 7 (4.2) - (4.2)
-----------------------
Amount 8 8.2 (37.2) (29.0)
transferred
(from) / to
reserves
=======================
Earnings / (loss) per share
Earnings / (loss) per 2.08p (6.25)p (4.17)p
10p ordinary share
-----------------------
Diluted earnings / 2.08p (6.25)p (4.17)p
(loss) per 10p ordinary
share
=======================
CONSOLIDATED BALANCE SHEET
1 Jan 2000 24 April 1999
Notes £m £m
FIXED ASSETS
Tangible assets 315.6 456.2
Investments 9.2 8.0
--------- ---------
324.8 464.2
--------- ---------
CURRENT ASSETS
Stocks 92.6 85.9
Debtors 71.2 70.1
Investments 0.4 0.6
Cash at bank and in hand 30.2 52.9
--------- ---------
194.4 209.5
CREDITORS
Amounts falling due within 9 188.3 333.7
one year
--------- ---------
Net current assets/ 6.1 (124.2)
(liabilities)
--------- ---------
Total assets less current 330.9 340.0
liabilities
CREDITORS
Amounts falling due after 9 4.6 12.1
more than one year
PROVISIONS FOR LIABILITIES 10 18.1 18.7
AND CHARGES
--------- ---------
Net assets 308.2 309.2
========== =========
CAPITAL AND RESERVES
Called up share capital 59.5 59.5
Share premium account 8 43.9 43.9
Other reserves 8 17.0 15.3
Revaluation reserve 8 44.3 111.8
Profit and loss account 8 143.5 78.7
--------- ---------
Equity shareholders' funds 308.2 309.2
========= =========
CONSOLIDATED CASHFLOW STATEMENT
36 weeks to 52 weeks to
1 Jan 2000 24 April 1999
Notes £m £m
Net cash inflow from 11 11.6 59.3
operating activities
Returns on investments and 11 (6.5) (9.0)
servicing of finance
Taxation (0.3) (17.7)
Capital expenditure and 11 117.1 (49.5)
financial investment
Equity dividends paid - (22.6)
---------- ----------
Cash inflow / (outflow) before 121.9 (39.5)
use of liquid resources and
financing
Management of lquid 0.2 -
resources
Financing 11 (144.5) 54.7
---------- ----------
(Decrease) / increase in 11 (22.4) 15.2
cash in the period
========== ==========
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET CASH / DEBT
36 weeks to 52 weeks to
1 Jan 2000 24 April 1999
Notes £m £m
(Decrease) / increase in 11 (22.4) 15.2
cash in the period
Cash movement on :
debt and lease financing 11 144.5 (54.7)
cash flow from decrease in (0.2) -
liquid resources
--------- ----------
Change in net debt 121.9 (39.5)
resulting from cash flows
Effect of foreign exchange (0.3) 0.1
rate changes
---------- ----------
Movement in net debt in the 121.6 (39.4)
period
Net debt at the beginning 11 (114.0) (74.6)
of the period
---------- ----------
Net cash / (debt) at the 11 7.6 (114.0)
end of the period
========== ==========
NOTES TO THE FINANCIAL STATEMENTS
1. BASIS OF PREPARATION
These Statements do not constitute statutory financial statements
within the meaning of Section 240 of the Companies Act 1985. They are
an abridged statement of the Group's full Financial Statements for the
36 week period ended 1 January 2000 on which the auditors have made an
unqualified report and which will be sent to shareholders and filed
with the Registrar of Companies on 18 April 2000.
2. SEGMENTAL ANALYSIS
36 weeks to
1 January 52 weeks to 24 April 1999
2000
-----------------------------------
Before
Exceptional Exceptional
Items items Total
£m £m £m £m
TURNOVER
UK - Retail 396.4 636.1
- Trade 70.3 70.5
France and Spain 45.0 73.2
Other operations 2.6 4.8
----------- --------
Continuing 514.3 784.6
operations
Discontinued 18.0 25.8
operations
----------- --------
532.3 810.4
----------- --------
PROFIT/(LOSS)
BEFORE TAXATION
UK - Retail (0.8) 7.9 (34.8) (26.9)
- Trade 6.5 7.7 - 7.7
France and Spain 2.4 6.6 - 6.6
Other operations 0.2 0.9 - 0.9
-------------------------------------------------
Continuing 8.3 23.1 (34.8) (11.7)
operations
Discontinued 2.1 3.3 - 3.3
operations
-------------------------------------------------
10.4 26.4 (34.8) (8.4)
Profit/(loss) on 4.8 (1.3) (6.5) (7.8)
disposal of
fixed assets
Net interest (6.1) (7.9) (0.7) (8.6)
payable
-------------------------------------------------
Profit/(loss) 9.1 17.2 (42.0) (24.8)
before taxation
-------------------------------------------------
NET ASSETS
/(LIABILITIES)
UK - Retail 223.0 347.6
- Trade 43.2 33.0
France and Spain 22.6 25.4
Other operations 10.7 16.5
*
----------- --------
308.5 422.5
Unallocated net (0.3) (113.3)
assets/
(liabilities)
----------- --------
308.2 309.2
----------- --------
* includes the net assets / (liabilities) of the discontinued
operations
Manufacturing operating profit has been apportioned across the
separate divisions in proportion to its manufactured sales to those
divisions.
Unallocated net liabilities comprise balances in respect of dividends
and net borrowings.
The analysis of turnover by destination is not materially different to
the analysis of turnover by origin.
3 OTHER OPERATING INCOME
36 weeks to 52 weeks to
1 Jan 2000 24 April 1999
£m £m
Rents receivable 12.4 17.3
Commission income 3.0 3.2
------- -------
15.4 20.5
======= =======
4. STAFF COSTS
The aggregate payroll costs of employees, including directors, were:
36 weeks to 52 weeks to
1 Jan 2000 24 April 1999
£m £m
Wages and salaries 106.3 159.7
Social security costs 10.4 15.2
Other pension costs 6.0 6.6
Redundancy costs - 6.7
------- -------
122.7 188.2
======= =======
5. EXCEPTIONAL ITEMS
The exceptional items charged in the consolidated profit and loss
account for the 52 weeks to 24 April 1999 arose principally from the
restructuring of the UK retail business. They are analysed as
follows:
£m
Loss on discontinued stock sold below cost price 5.2
Redundancy payments 6.7
Fixtures and equipment write offs 6.5
Showroom refit 2.8
Others 1.3
--------
22.5
Provision for onerous lease 12.3
--------
34.8
Deficits on property revaluation 7.2
--------
42.0
========
The property revaluation deficits arise from valuations of the Group's
UK freehold and long leasehold properties where valuations were less
than the carrying values of certain assets.
6. TAX
52 weeks to 24 April 1999
36 weeks to Pre - Exceptional
1 Jan 2000 Exceptional items Total
£m £m £m £m
Taxation on profit
/ (loss) for the
period comprises:
UK corporation tax 2.6 4.8 (4.8) -
at 30.0% (1999 -
30.9%)
Adjustments (1.3) (0.3) - (0.3)
relating to prior
periods
Deferred taxation - 0.3 - 0.3
-------- -------- -------- -----
1.3 4.8 (4.8) -
======== ======== ======== =====
The taxation charge is calculated at 14.2% on profits before
exceptional items (1999 : 27.9%). The effective rate of tax on
continuing ordinary activities is 28.0%.
7. EQUITY DIVIDENDS
36 weeks to 52 weeks to
1 Jan 2000 24 April 1999
£m £m
Interim paid - 0.7 pence per 4.2 4.2
share
(1999 - 0.7 pence per share)
Final proposed - 0.7 pence per 4.1 -
share
(1999 - nil pence per share)
------- -------
Total dividend - 1.4 pence per 8.3 4.2
share
(1999 - 0.7 pence per share) ======= =======
8. RESERVES
Share Profit and
premium Other Revaluation loss
account reserves reserve account
£m £m £m £m
At 24 April 1999 43.9 15.3 111.8 78.7
Retained profit for - - - (0.5)
the period
Realised revaluation - - (67.5) 67.5
of properties
Amortisation of - 1.7 - (1.7)
goodwill
Currency translation - - - (0.5)
adjustments
------- ------- ------- -------
At 1 January 2000 43.9 17.0 44.3 143.5
======= ======= ======= =======
9. CREDITORS
AMOUNTS FALLING DUE WITHIN ONE YEAR
Group
1 Jan 2000 24 April 1999
£m £m
Borrowings 18.8 155.5
Trade creditors 80.4 101.1
Corporation tax 1.8 0.8
Other taxes and social security 15.7 17.2
Obligations under finance leases 0.1 0.2
Proposed dividends 8.3 -
Other creditors 10.0 13.6
Accruals and deferred income 53.2 45.3
------- -------
188.3 333.7
======= =======
AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Group
1 Jan 2000 24 April 1999
£m £m
Borrowings 3.8 11.3
Obligations under finance leases 0.3 0.5
- within five years
Other creditors 0.5 0.3
------- -------
4.6 12.1
======= =======
10. PROVISIONS FOR LIABILITIES AND CHARGES
Pen Deferred Onerous Restruc Total
sio taxation leases turing
n provisi
pro on
vis
ion
£m £m £m £m £m
At 24 April 1999 4.2 - 12.3 2.2 18.7
Created in the 1.5 - 0.7 - 2.2
period
Utilised in the (0.4) - (0.7) (1.7) (2.8)
period
------------------------------------------
At 1 January 2000 5.3 - 12.3 0.5 18.1
==========================================
11. CONSOLIDATED CASH FLOW STATEMENT
Reconciliation of profit/(loss) on ordinary activities before interest
to operating cash flows
36 weeks to 52 weeks to
1 Jan 2000 24 April 1999
£m £m
Profit / (loss) on ordinary 15.2 (16.2)
activities before interest
Depreciation of tangible fixed 24.9 44.8
assets
Amortisation of fixed asset 0.4 -
investments
(Profit) / loss on sale of (4.8) 7.8
tangible fixed assets
(Increase) / decrease in stocks (7.2) 15.4
(Increase) in debtors (1.4) (30.0)
(Decrease) / increase in creditors (15.5) 37.5
and provisions
--------- ---------
Net cash inflow from operating 11.6 59.3
activities
========= =========
b) Analysis of cash flows for headings netted in the cash flow
statement
36 weeks to 52 weeks to
1 Jan 2000 24 April 1999
£m £m
Returns on investments and
servicing of finance
Interest received 1.8 2.2
Interest paid (8.3) (11.2)
--------- ---------
Outflow on investments and (6.5) (9.0)
servicing of finance
===== =====
Capital expenditure and financial
investment
Payments to acquire tangible fixed (16.9) (48.4)
assets
Receipts from sales of tangible 135.6 6.1
fixed assets
Payment to acquire fixed asset (1.6) (7.2)
investments
--------- ---------
Outflow for capital expenditure 117.1 (49.5)
and financial investment
===== =====
Financing
(Decrease) / increase in bank (144.2) 54.8
finance
Capital element of finance lease (0.3) (0.1)
rental payments
--------- ---------
(Outflow) / inflow from financing (144.5) 54.7
===== =====
c) Analysis of net debt
Current Revolving
Cash at asset credit
bank investments facility
£m £m £m
As at 25 April 1998 37.6 0.6 (90.0)
Cash flow 15.2 - (60.0)
Exchange movement 0.1 - -
-------- -------- ----------
As at 24 April 1999 52.9 0.6 (150.0)
Cash flow (22.4) (0.2) 135.0
Exchange movement (0.3) - -
-------- -------- --------
As at 1 January 2000 30.2 0.4 (15.0)
==== ==== ====
Net Total net
Term borrow- Finance debt
loans ings leases
£m £m £m £m
As at 25 April 1998 (22.0) (73.8) (0.8) (74.6)
Cash flow 5.2 (39.6) 0.1 (39.5)
Exchange movement - 0.1 - 0.1
--------- --------- -------- ---------
As at 24 April 1999 (16.8) (113.3) (0.7) (114.0)
Cash flow 9.2 121.6 0.3 121.9
Exchange movement - (0.3) - (0.3)
-------- -------- -------- --------
As at 1 January 2000 (7.6) 8.0 (0.4) 7.6
==== ==== ==== ====
CONSOLIDATED PRO FORMA PROFIT AND LOSS ACCOUNT
36 Weeks to 1 January 36 weeks to 2 January
2000 1999
Con- Discont Con- Dis-
tinuing inued tinuing continued
Opera- Operati Total Opera- Opera- Total
tions ons tions tions
Audited Audited Audite Unaudited Unaudited Unaudi
d ted
£m £m £m £m £m £m
Turnover * 514.3 18.0 532.3 528.0 17.9 545.9
Change in 5.9 - 5.9 (16.1) - (16.1)
stocks
Other 15.4 - 15.4 13.1 - 13.1
operating
income
--------------------------------------------------------
535.6 18.0 553.6 525.0 17.9 542.9
--------------------------------------------------------
Raw (239.5) (6.2) (245.7) (234.5) (6.9) (241.4)
materials
and
consumables
Staff (118.8) (3.9) (122.7) (122.3) (3.5) (125.8)
costs
Depreciati (23.6) (1.3) (24.9) (26.0) (1.1) (27.1)
on of
tangible
fixed
assets
Other (145.4) (4.5) (149.9) (140.5) (4.5) (145.0)
operating
charges
------------------------------------------------------
(527.3) (15.9) (543.2) (523.3) (16.0) (539.3)
------------------------------------------------------
Operating 8.3 2.1 10.4 1.7 1.9 3.6
profit /
(loss)
Profit / 4.7 0.1 4.8 (0.7) - (0.7)
(loss) on
disposal
of fixed
assets
------------------------------------------------------
Profit / 13.0 2.2 15.2 1.0 1.9 2.9
(loss) on
ordinary
activities
before
interest
=============== =========
Net (6.1) (5.8)
interest
payable
------- ------
Profit 9.1 (2.9)
before
taxation
====== =======
Earnings / 1.31 p (0.38) p
(loss) per
10p
ordinary
share
====== =======
52 Weeks to 1 January 2000
Continuing Discontinued
Operations Operations Total
Unaudited Unaudited Unaudited
£m £m £m
Turnover * 770.9 26.0 796.9
Change in stocks 7.8 - 7.8
Other operating income 22.8 - 22.8
--------------------------------------
801.5 26.0 827.5
--------------------------------------
Raw materials and (355.4) (8.5) (363.9)
consumables
Staff costs (173.0) (5.5) (178.5)
Depreciation of tangible (33.5) (1.9) (35.4)
fixed assets
Other operating charges (209.9) (6.6) (216.5)
--------------------------------------
(771.8) (22.5) (794.3)
--------------------------------------
Operating profit / (loss) 29.7 3.5 33.2
Profit / (loss) on 4.1 0.1 4.2
disposal of fixed assets
--------------------------------------
Profit / (loss) on 33.8 3.6 37.4
ordinary activities
before interest
-----------
Net interest payable (8.2)
-----------
Profit before taxation 29.2
-----------
Earnings / (loss) per 10p 3.73 p
ordinary share
------------
* The turnover for the 36 weeks ended 2 January 1999 of continuing
operations includes £29.0m of discontinued product
NOTES TO THE PRO FORMA STATEMENT
BASIS OF PREPARATION
Following the change in the financial year end, pro forma consolidated
profit and loss accounts and segmental information have been provided
for the 36 week comparative period ended 2 January 1999 and the 52
weeks ended 1 January 2000 in order to provide a better understanding
of the Group's performance. The information, which is unaudited, has
been derived from previously published results and internal management
accounts with adjustments being made for the adoption of FRS 12 and
the change in sales accounting policy. Exceptional items have been
excluded from the analysis.
Hygena Packaging has been separated as a discontinued activity as its
sale was completed prior to the approval of the financial statements.
The Group's interest charge has not been restated to show the effect
of Hygena Packaging being sold at the beginning of the period. As a
result the pro forma profit and loss account for continuing and
discontinued activities is not disclosed beyond profit on ordinary
activities before interest and tax.
Proforma earnings per share have been determined using a 28% effective
rate of tax.
SEGMENTAL ANALYSIS
36 weeks to 36 weeks to 52 weeks to
1 January 2000 2 January 1 January
1999 2000
£m £m £m
TURNOVER
UK - Retail 396.4 434.7 597.8
- Trade 70.3 45.0 95.9
France and Spain 45.0 44.7 73.5
Other operations 2.6 3.6 3.7
-----------------------------------------
Continuing operations 514.3 528.0 770.9
Discontinued 18.0 17.9 26.0
operations
-----------------------------------------
532.3 545.9 796.9
-----------------------------------------
PROFIT/(LOSS) BEFORE
TAXATION
UK - Retail (0.8) (1.6) 8.2
- Trade 6.5 2.9 11.9
France and Spain 2.4 - 9.0
Other operations 0.2 0.4 0.6
-----------------------------------------
Continuing operations 8.3 1.7 29.7
Discontinued 2.1 1.9 3.5
operations
-----------------------------------------
10.4 3.6 33.2
Profit/(loss) on 4.8 (0.7) 4.2
disposal of fixed
assets
Net interest payable (6.1) (5.8) (8.2)
-----------------------------------------
Profit/(loss) before 9.1 (2.9) 29.2
taxation
-----------------------------------------
Latest directors dealings
- 1 day ago IntegraFin Holding
- 1 day ago Spirent Communications
- 1 day ago CRH (CDI)
- 1 day ago Bezant Resources
- 1 day ago EJF Investments Ltd NPV