Interim Results
St. Ives PLC
31 March 2008
31 March 2008
ST IVES plc
Interim Results for the 26 weeks ended 1 February 2008
St Ives plc, the UK's leading printing group, announces interim results for the
26 weeks ended 1 February 2008.
Key Points
• Revenue £223.2m (2007: £209.2m)
• Pre tax profit £12.5m (2007: £10.7m)
• Underlying* pre tax profit £13.4m (2007: £11.4m)
• Basic earnings per share from continuing operations 7.95p (2007: 6.62p)
• Underlying* earnings per share 8.88p (2007: 7.43p)
• Interim dividend maintained at 5.00p per share
* before restructuring costs, provision releases and other one-off items
Commenting on the results, Chief Executive, Brian Edwards said:
'Despite challenging market conditions, we have continued to build on the
foundations laid over the last two years.
'Although the economic outlook remains uncertain, we are confident our strategy
of focusing on customer service and investing in the latest digital technology,
while controlling costs and preserving margins, will enable us to make further
progress for shareholders.'
For further information contact:
St Ives plc 020 7928 8844
Brian Edwards, Chief Executive
Matt Armitage, Finance Director
Smithfield 020 7360 4900
John Antcliffe
Tom Hardman
ST IVES plc
Interim Results for the 26 weeks ended 1 February 2008
Results
The results for the Group for the 26 weeks ended 1 February 2008 are in line
with expectations and show sales from operations of £223.2 million (2007 -
£209.2m) and profit before tax, restructuring costs provision releases and other
one-off items of £13.4 million (2007 - £11.4 million). Profit before tax was
£12.5 million (2007 - £10.7 million). Earnings per share before restructuring
costs, provision releases and other one-off items were 8.88p (2007 - 7.43p).
Earnings per share from continuing operations were 7.95p (2007 - 6.62p).
Underlying profit before tax, after excluding prior year discontinued
businesses, is 17.2% ahead of the first half of last year and the overall
progress made in the second half of the last financial year has continued.
Dividend
The Board has declared an interim dividend of 5p per share (2007 - 5p per share)
which will be payable on 16 May 2008 to shareholders on the register at 18 April
2008.
Trading Conditions
Trading conditions during the period remained very challenging and price
pressure continued. Sales growth in products requiring high levels of service
has been partly offset by volume and price reductions in the more commoditised
areas. Continued action on costs and efficiencies enabled overall progress to
be made.
Media Products*
Revenue from Media Products were £92.1 million, some 5.9% ahead of the first
half of last year and underlying operating profit increased to £12.5 million
from £11.2 million. Revenues from book publishers grew as a result of increased
market share and customers continuing to take advantage of sales of added value
services. Efficiencies and cost control were required to offset the effect of
price pressure arising on contract renewals.
Magazine revenues were modestly ahead as sales of shorter-run products continue
to be won to replace the more commodity priced, mainly longer-run, titles.
Prior year actions on cost and improved mix improved the returns in this area.
Sales of CD and DVD packaging through our operations in the Netherlands were
broadly flat. Actions on flexibility and cost enabled the business to break
even which was modestly ahead of the prior year, despite further deterioration
in the market.
Commercial Products*
Revenue from Commercial Products were £109.4 million which included sales from
Service Graphics of £21.9 million. In 2007 these were included for a 13 week
period from the date of acquisition and amounted to £8.7 million. Excluding
Service Graphics underlying sales grew by around 6%. The businesses supplying
this segment returned an overall modest improvement in underlying operating
profit of £1.8 million up from £1.5 million in the prior year.
Direct Mail and UK music sales were weak, but overall volumes were maintained by
increased sales of general commercial printing. However, despite cost reduction
initiatives taken at the end of our last financial year, continuing price
competition and volatile demand resulted in a small loss in this area. The
transition of work under the Royal Mail contract announced in October 2007 is
underway and on schedule. As expected, the contribution from this work was
negligible in our first half year. Transition of all categories of work is
planned to be completed in the early summer.
Visibility in the point-of-sale market reduced and demand was volatile.
Encouragingly sales growth exceeded 10% but volume fluctuations made effective
utilisation a challenge and profits remained flat compared with the first half
last year. Sales at Service Graphics, our exhibitions and outdoor media
business, were in line with expectations to the end of November 2007 but were
then subdued in our second quarter.
USA
Following the consolidation of our sites in Florida and cost reductions
undertaken towards the end of our last financial year, our US business sales
reduced by over 25% to £24.9 million, 5% of which was the currency effect on
translation for reporting purposes. Sales in the commercial, point-of-sale and
direct markets were reduced as the market became more competitive and volumes
were varied at short notice. Magazines were similarly affected. Continued
refinement of the work mix and cost reductions enabled us to improve the overall
return on lower sales.
Balance Sheet
The Group's balance sheet remains robust with a strong operating cash flow for
the half year. Net debt reduced to £15.2 million although this is partly due to
the phasing of capital expenditure which is expected to amount to approximately
£20 million in the second half of the financial year.
Strategy
Our strategy remains one of developing long-term, regular and contractual
relationships that allow us to deliver cost effective solutions to our customers
and enable the business to develop in partnership with them. The focus on
selling access to the Group's entire range of capabilities, started by our Group
Sales team in the last financial year, continues to benefit most of our UK
operations.
Concentration on customer service and further investment, including in the
latest digital and software solutions, will maintain the emphasis on
non-commodity business.
Outlook
The economic outlook remains uncertain and most markets are over-supplied and
subject to price pressure. There have recently been some closures of
competitors' capacity which, unusually, has not been resurrected although, so
far, this seems to have had little affect on pricing.
Many of our customers are also experiencing challenging conditions in their
markets. Low visibility and significant short-term fluctuations in demand
remain a feature in most markets.
Against this background, demand for books has remained steady although there is
an increasing demand for ever shorter run lengths. The construction of our new
warehouse facility at our book factory is on schedule and will be completed in
the Autumn, allowing us better to serve the requirements for post-production
added value services. In Magazines the volumes were at lower levels for the
first two months of this calendar year but have since increased. Enquiries have
also increased following the recent closures of competitors' capacity.
Demand for products in our Dutch music and multimedia business has been subdued.
This market presents an increasingly uncertain future and the business remains
under close review.
For several weeks after Christmas, point-of-sale demand was also subdued but
this has since improved. Exhibitions and outdoor media has followed a similar
pattern.
Direct Mail and Commercial markets remain over-supplied but the continuing
transition of the Royal Mail work is helping to compensate for the lower demand
in other areas of the market. Indications are that the Report and Accounts
market, which falls predominantly in our second half, has not yet experienced
the significant fall in volume anticipated following the recent change in
legislation.
In the US, similar market conditions exist to those experienced in the UK. Most
markets are over-supplied and subject to price pressure and we continue to
pursue shorter-run niche markets with specialist requirements.
Despite continuing economic uncertainties, we are confident that our strategy of
supplying cost effective solutions, an emphasis on superior customer service,
well invested facilities and a strong balance sheet will allow us to continue to
grow market share in chosen areas and make further progress for our
shareholders.
Brian Edwards
Chief Executive
31 March 2008
* See note 2 to the accompanying financial statements.
CONDENSED CONSOLIDATED INCOME STATEMENT
26 weeks to 1 February 2008
Before Restructuring
restructuring costs,
costs, provision
provision releases and 27 weeks 53 weeks
releases and other one-off to to
other one-off items 2 February 3 August
items (note 3) Total 2007 2007
------------ ------------ ---------- ------------ ------------
£'000 £'000 £'000 £'000 £'000
Revenue (note 2)
Existing activities 223,188 - 223,188 200,461 394,688
Acquired activities - - - 8,739 30,342
223,188 - 223,188 209,200 425,030
Cost of sales (166,089) (954) (167,043) (160,789) (320,481)
------------ ------------ ---------- ------------ ------------
Gross profit 57,099 (954) 56,145 48,411 104,549
Sales and distribution costs (16,362) - (16,362) (12,589) (29,090)
Administrative expenses (25,789) (334) (26,123) (23,883) (49,300)
Other operating income
Profit on disposal of 391 447 838 274 5,405
fixed assets
Other income - - - 423 -
391 447 838 697 5,405
------------ ------------ ---------- ------------ ------------
Profit from operations (note 2)
Existing activities 15,339 (841) 14,498 12,967 29,865
Acquired activities - - - - (331) 1,699
(loss)
15,339 (841) 14,498 12,636 31,564
Investment income 5,440 - 5,440 5,032 10,171
Finance costs (7,413) - (7,413) (6,924) (14,179)
------------ ------------ ---------- ------------ ------------
Profit before tax 13,366 (841) 12,525 10,744 27,556
Income tax expense (note 4) (4,210) (121) (4,331) (3,927) (7,157)
------------ ------------ ---------- ------------ ------------
Profit for the period from
continuing operations 9,156 (962) 8,194 6,817 20,399
Loss from discontinued
operations - - - (14,115) (14,084)
------------ ------------ ---------- ------------ ------------
Net profit/(loss) for the 9,156 (962) 8,194 (7,298) 6,315
period
============ ============ ========== ============ ============
Basic and diluted earnings/(loss) per share (note 6)
From continuing operations 7.95p 6.62p 19.80p
========== ============ ============
From continuing and discontinued 7.95p (7.08p) 6.13p
operations
========== ============ ============
CONDENSED CONSOLIDATED BALANCE SHEET
1 February 2 February 3 August
2008 2007 2007
---------- ---------- ----------
£'000 £'000 £'000
ASSETS
Non-current assets
Property, plant and equipment 141,824 159,490 147,006
Goodwill 54,679 54,996 54,679
Other intangible assets 1,755 1,682 1,394
Deferred tax assets 7,004 6,246 4,785
Other non-current assets 3,176 125 338
---------- ---------- ----------
208,438 222,539 208,202
---------- ---------- ----------
Current assets
Inventories 13,340 13,804 13,824
Trade and other receivables 81,077 71,793 78,750
Cash and cash equivalents 14,144 9,550 7,547
Assets held for sale 4,604 - 3,345
---------- ---------- ----------
113,165 95,147 103,466
---------- ---------- ----------
Total assets 321,603 317,686 311,668
---------- ---------- ----------
LIABILITIES
Current liabilities
Trade and other payables 72,165 56,494 57,485
Loans and bank overdrafts 358 47,693 2,327
Other financial liabilities 382 433 419
Current tax payable 5,170 5,188 4,293
Deferred income 196 250 222
Provisions 2,322 1,281 2,973
---------- ---------- ----------
80,593 111,339 67,719
---------- ---------- ----------
Non-current liabilities
Loans and bank overdrafts 28,540 - 27,892
Retirement benefit obligations (note 9) 55,008 47,162 45,203
Deferred income 1,384 130 1,604
Other financial liabilities 79 1,527 521
Provisions 1,695 1,582 4,202
---------- ---------- ----------
86,706 50,401 79,422
---------- ---------- ----------
Total liabilities 167,299 161,740 147,141
---------- ---------- ----------
Net assets 154,304 155,946 164,527
========== ========== ==========
EQUITY
Capital and reserves
Share capital 10,355 10,355 10,355
Other reserves (note 7) 46,061 45,468 45,127
Retained earnings (note 8) 97,888 100,123 109,045
---------- ---------- ----------
Total equity 154,304 155,946 164,527
========== ========== ==========
This interim statement was approved by the board of directors on 31 March 2008.
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
26 weeks 27 weeks 53 weeks
to to to
1 February 2 February 3 August
2008 2007 2007
---------- ---------- ----------
£'000 £'000 £'000
Operating activities
Cash generated from operations (note 10) 32,886 9,162 37,491
Interest received 247 257 465
Interest paid (823) (961) (2,530)
Income taxes paid (3,017) (1,625) (5,946)
---------- ---------- ----------
Net cash from operating activities 29,293 6,833 29,480
---------- ---------- ----------
Investing activities
Acquisitions, net of cash acquired - (18,357) (18,358)
Purchase of property, plant and equipment (8,640) (10,901) (20,396)
Purchase of other intangibles (816) (739) (813)
Proceeds on disposal of property, plant and 1,189 1,915 7,784
equipment
Disposal proceeds of subsidiary, net of cash - 3,911 4,288
disposed
Regional grants received - - 1,092
---------- ---------- ----------
Net cash used in investing activities (8,267) (24,171) (26,403)
---------- ---------- ----------
Financing activities
Loan notes redeemed - (339) (1,287)
Capital element of finance lease rentals (211) (109) (335)
Dividends paid (note 5) (12,521) (12,521) (17,673)
Increase in bank loans - - 10,000
(Decrease)/increase in bank overdrafts (1,969) 27,532 1,641
---------- ---------- ----------
Net cash (used in)/generated from financing (14,701) 14,563 (7,654)
activities
---------- ---------- ----------
Net increase/(decrease) in cash and cash equivalents 6,325 (2,775) (4,577)
Cash and cash equivalents at beginning of period 7,547 12,620 12,620
Effect of foreign exchange rate changes 272 (295) (496)
---------- ---------- ----------
Cash and cash equivalents at end of period (note 10) 14,144 9,550 7,547
========== ========== ==========
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
26 weeks 27 weeks 53 weeks
to to to
1 February 2 February 3 August
2008 2007 2007
---------- ---------- ----------
£'000 £'000 £'000
Exchange gains/(losses) on translating foreign 905 (1,045) (1,189)
operations
Actuarial (losses)/gains on defined benefit pension (9,486) 12,472 14,936
schemes
Tax on items taken directly to equity 2,656 (3,565) (5,713)
---------- ---------- ----------
Net (loss)/income recognised directly in equity (5,925) 7,862 8,034
Transfer to profit and loss from equity of exchange
differences on disposal of foreign operation - 38 38
Transfer to initial carrying amount of non-financial
hedged items on cash flow hedges - - 85
Tax on items transferred from equity - - (26)
Profit/(loss) for the period 8,194 (7,298) 6,315
---------- ---------- ----------
Total recognised income 2,269 602 14,446
========== ========== ==========
NOTES TO THE FINANCIAL STATEMENTS
1. Basis of preparation
The interim statements have been prepared in accordance with IAS34 'Interim
Financial Reporting', the recognition and measurement principles of
International Financial Reporting Standards as adopted by the European Union,
and those parts of the Companies Act 1985 applicable to companies reporting
under IFRS.
The interim statements have been prepared in accordance with the accounting
policies set out in the Group's Annual Report and Accounts for 2007. Certain
balance sheet items have been reclassified in the prior year comparatives to
reflect changes in presentation. The interim statements have not been audited
or reviewed.
The interim statements do not comprise statutory accounts for the purpose of
section 240 of the Companies Act 1985. The abridged information for the fifty
three weeks to 3 August 2007 has been extracted from the Group's statutory
accounts for that period which have been filed with the Registrar of Companies.
The auditor's report in the accounts of the Group for that period was
unqualified and did not contain a statement under either section 237(2) or
section 237(3) of the Companies Act 1985.
2. Segment reporting
The Group manages its business on a market segment basis. Inter-segment sales
are charged at arm's length prices. Corporate costs before restructuring costs,
provision releases and other one-off items are allocated to revenue generating
segments as this presentation better reflects their profitability. As part of a
reorganisation to improve plant utilisation, two UK operating sites have been
transferred from the Print & Display division reported within Media Products to
the Direct division within Commercial Products. Segmental results in the prior
half year and full year segmental analysis comparatives have been adjusted to
reflect these changes in presentation.
Business segments
26 weeks to 1 February 2008
Media Commercial
Products Products USA Elimination Total
-------- -------- -------- -------- --------
£'000 £'000 £'000 £'000 £'000
Revenue
External sales 90,735 107,512 24,941 - 223,188
Inter-segment sales 1,339 1,872 - (3,211) -
-------- -------- -------- -------- --------
Total revenue 92,074 109,384 24,941 (3,211) 223,188
======== ======== ======== ======== ========
Result
Segment result 10,733 2,698 1,067 - 14,498
Add back restructuring costs, provision 1,727 (886) - - 841
releases and other one-off items
-------- -------- -------- -------- --------
Segment result before restructuring
costs, provision releases and other
one-off items 12,460 1,812 1,067 - 15,339
======== ======== ======== ========
Total restructuring costs, provision
releases and other one-off items (841)
--------
Profit from continuing operations 14,498
Investment income 5,440
Finance costs (7,413)
--------
Profit before tax 12,525
Income tax expense (4,331)
--------
Profit for the period from continuing
operations 8,194
========
27 weeks to 2 February 2007
Media Commercial
Products Products USA Elimination Total
-------- -------- -------- -------- --------
£'000 £'000 £'000 £'000 £'000
Revenue
External sales 85,628 89,975 33,597 - 209,200
Inter-segment sales 1,276 1,458 42 (2,776) -
-------- -------- -------- -------- --------
Total revenue 86,904 91,433 33,639 (2,776) 209,200
======== ======== ======== ======== ========
Result
Segment result 11,165 1,550 671 - 13,386
Add back restructuring costs, provision - (86) - - (86)
releases and other one-off items
-------- -------- -------- -------- --------
Segment result before restructuring
costs, provision releases and other
one-off items 11,165 1,464 671 - 13,300
======== ======== ======== ========
Total restructuring costs, provision
releases and other one-off items (664)
--------
Profit from continuing operations 12,636
Investment income 5,032
Finance costs (6,924)
--------
Profit before tax 10,744
Income tax expense (3,927)
--------
Profit for the period from continuing
operations 6,817
========
53 weeks to 3 August 2007
Media Commercial
Products Products USA Elimination Total
-------- -------- -------- -------- --------
£'000 £'000 £'000 £'000 £'000
Revenue
External sales 174,350 191,414 59,266 - 425,030
Inter-segment sales 2,210 2,999 28 (5,237) -
-------- -------- -------- -------- --------
Total revenue 176,560 194,413 59,294 (5,237) 425,030
======== ======== ======== ======== ========
Result
Segment result 24,352 4,874 (1,145) - 28,081
Add back restructuring costs, provision 1,982 1,626 2,640 - 6,248
releases and other one-off items
-------- -------- -------- -------- --------
Segment result before restructuring
costs, provision releases and other
one-off items 26,334 6,500 1,495 - 34,329
======== ======== ======== ========
Total restructuring costs, provision
releases and other one-off items (2,765)
--------
Profit from continuing operations 31,564
Investment income 10,171
Finance costs (14,179)
--------
Profit before tax 27,556
Income tax expense (7,157)
--------
Profit for the period from continuing
operations 20,399
========
Geographical segments
The Media Products and Commercial Products business segments operate primarily
in the UK, deriving more than 90% of their revenues and profits from operations
and customers located in the UK. The USA segment operates exclusively in the
United States.
3. Restructuring costs, provision releases and other one-off items
Restructuring costs, provision releases and other one-off items included within
the income statement in respect of continuing operations are as follows:
26 weeks 27 weeks 53 weeks
to to to
1 February 2 February 3 August
2008 2007 2007
---------- ---------- ----------
£'000 £'000 £'000
(Expense)/income
Restructuring items
Redundancies, impairments and other charges (2,527) (188) (7,008)
Provision releases 1,432 - 42
Profit on disposal of fixed assets 447 274 4,809
---------- ---------- ----------
(648) 86 (2,157)
Other
Bid approach costs - (750) (608)
Press fire (193) - -
---------- ---------- ----------
(841) (664) (2,765)
Related income tax (121) (176) 2,303
---------- ---------- ----------
(962) (840) (462)
========== ========== ==========
Within restructuring items, redundancies impairments and other charges include
asset write downs, redundancy, and other costs within the Media Products and
Commercial Products segments. Impairment charges of £2,137,000 were recorded in
the Netherlands Print & Display business within the Media Products segment,
following further deterioration in the market outlook. The release of
provisions in the period relates to the Media Products and Commercial Products
segments following the finalisation of related activities. Profit on the sale of
fixed assets relates to disposals of plant and machinery in the Commercial
Products segment.
The press fire item includes costs arising from the fire at the Peterborough
plant (within the Media Products segment) which are not recoverable through
insurance due to being below the policy excess.
4. Tax
Tax on profit as shown in the income statement is as follows:
26 weeks 27 weeks 53 weeks
to to to
1 February 2 February 3 August
2008 2007 2007
---------- ---------- ----------
£'000 £'000 £'000
United Kingdom income tax 4,217 3,751 7,821
Overseas income tax 114 176 (664)
---------- ---------- ----------
4,331 3,927 7,157
========== ========== ==========
The phased abolition of Industrial Buildings Allowances which will be enacted in
the UK Finance Act 2008 is expected to increase the deferred tax liability by
£5.7 million, based on capital expenditure incurred as of 1 February 2008. This
change will be recorded in the second half of the current financial year under
the income statement column restructuring costs, provision releases and other
one-off items.
5. Dividends
26 weeks to 27 weeks to 53 weeks to
1 February 2 February 3 August
2008 2007 2007
----------- ----------- -----------
per share £'000 £'000 £'000
Final dividend paid for the 52 weeks
ended 28 July 2006 12.15p - 12,521 12,521
Interim dividend paid for the 27 weeks
to 2 February 2007 5.00p - - 5,152
Final dividend paid for the 53 weeks
ended 3 August 2007 12.15p 12,521 - -
---------- ---------- ----------
Dividends paid during the period 12,521 12,521 17,673
========== ========== ==========
Proposed interim dividend for the 26
weeks to 1 February 2008 5.00p 5,152
==========
6. Earnings per share
Number of shares
26 weeks 27 weeks 53 weeks
to to to
1 February 2 February 3 August
2008 2007 2007
---------- ---------- ----------
million million million
Weighted average number of ordinary shares for the 103.1 103.0 103.1
purposes of basic earnings per share
Diluted potential ordinary shares from share options - - -
========== ========== ==========
Diluted weighted average number of shares 103.1 103.0 103.1
========== ========== ==========
Basic and diluted earnings per share
26 weeks to 27 weeks to 53 weeks to
1 February 2008 2 February 2007 3 August 2007
Earnings Earnings Earnings Earnings Earnings Earnings
per per per
share share share
-------- -------- -------- -------- -------- --------
£'000 pence £'000 pence £'000 pence
Earnings and earnings per share
from continuing activities
Earnings and basic earnings per
share 8,194 7.95 6,817 6.62 20,399 19.80
Restructuring costs, provision
releases and other one-off items 962 0.93 840 0.81 462 0.45
-------- -------- -------- -------- -------- --------
Adjusted earnings and adjusted
earnings per share 9,156 8.88 7,657 7.43 20,861 20.25
======== ======== ======== ======== ======== ========
Losses and loss per share from
discontinued activities
Losses and basic loss per share - - (14,115) (13.70) (14,084) (13.67)
Restructuring costs, provision
releases and other one-off items - - 13,284 12.89 13,219 12.83
-------- -------- -------- -------- -------- --------
Adjusted losses and adjusted
loss per share - - (831) (0.81) (865) (0.84)
======== ======== ======== ======== ======== ========
Basic earnings/(loss) per share
from continuing and
discontinued activities 7.95 (7.08) 6.13
======== ======== ========
Adjusted earnings/(loss) is calculated by adding back restructuring costs,
provision releases and other one-off items, as adjusted for tax, to the profit/
(loss) for the period.
7. Other reserves
Hedging
Capital Share and
Share ESOP redemption option translation
premium reserve reserve reserve reserve Total
------- ------- ------- ------- ------- -------
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 28 July 2006 46,689 (1,913) 1,238 209 111 46,334
Exchange differences and related tax - - - - (868) (868)
Foreign exchange losses recycled to -
profit and loss - - - 38 38
Recognition of share-based payments - - - (36) - (36)
------- ------- ------- ------- ------- -------
Balance at 2 February 2007 46,689 (1,913) 1,238 173 (719) 45,468
Exchange differences and related tax - - - - (289) (289)
Cash flow hedges
Transferred to fixed assets - - - - 85 85
Tax on items taken directly to or - - - - (26) (26)
transferred from equity
Recognition of share-based payments - - - (111) - (111)
------- ------- ------- ------- ------- -------
Balance at 3 August 2007 46,689 (1,913) 1,238 62 (949) 45,127
Exchange differences and related tax - - - - 905 905
Recognition of share-based payments - - - 29 - 29
------- ------- ------- ------- ------- -------
Balance at 1 February 2008 46,689 (1,913) 1,238 91 (44) 46,061
======= ======= ======= ======= ======= =======
8. Retained earnings
£'000
Balance at 28 July 2006 111,212
Dividends paid (12,521)
Loss for the period attributable to equity holders of the parent (7,298)
Actuarial gains on defined benefit pension schemes, net of associated tax 8,730
--------
Balance at 2 February 2007 100,123
Dividends paid (5,152)
Profit for the period attributable to equity holders of the parent 13,613
Actuarial gains on defined benefit pension schemes, net of associated tax 461
--------
Balance at 3 August 2007 109,045
Dividends paid (12,521)
Profit for the period attributable to equity holders of the parent 8,194
Actuarial losses on defined benefit pension schemes, net of associated tax (6,830)
--------
Balance at 1 February 2008 97,888
========
9. Retirement benefits
The net liability in respect of retirement benefit obligations of £55.0 million
at the balance sheet date has increased compared to 3 August 2007 (£45.2
million) primarily due to the use of more conservative mortality assumptions as
well as an increase in the expected rate of inflation from 3.1% to 3.4%.
10. Notes to the consolidated cash flow statement
Reconciliation of cash generated from operations
26 weeks to 27 weeks to 53 weeks to
1 February 2 February 3 August
2008 2007 2007
----------- ----------- -----------
£'000 £'000 £'000
Profit from continuing operations 14,498 12,636 31,564
Loss from discontinued operations - (1,187) (991)
Adjustments for:
Depreciation and impairment of property, plant and 13,553 13,227 26,670
equipment
Amortisation of intangible assets 467 196 810
Gain on disposal of property, plant and equipment (838) (697) (5,405)
Deferred income (246) (112) (218)
Share-based payment expense/(credit) 29 (36) (147)
Decrease in retirement benefit obligations (657) (744) (1,112)
(Decrease)/increase in provisions (3,516) (947) 2,098
----------- ----------- -----------
Operating cash flows before movements in working 23,290 22,336 53,269
capital
Decrease/(increase) in inventories 625 (606) (726)
(Increase)/decrease in receivables (4,532) 2,193 (6,157)
Increase/(decrease) in payables 13,503 (14,761) (8,895)
----------- ----------- -----------
Cash generated from operations 32,886 9,162 37,491
=========== =========== ===========
Analysis of net debt
3 August Exchange 1 February
2007 Cash flow movements 2008
-------- -------- -------- --------
£'000 £'000 £'000 £'000
Cash and cash equivalents 7,547 6,329 268 14,144
Bank overdrafts (1,969) 1,969 - -
Bank loans (27,892) - (648) (28,540)
Loan notes (358) - - (358)
Finance leases (627) 211 - (416)
-------- -------- -------- --------
(23,299) 8,509 (380) (15,170)
======== ======== ======== ========
Cash and cash equivalents (which are presented as a single class of assets on
the face of the balance sheet) comprise cash at bank and other short-term highly
liquid investments with a maturity of three months or less. The effective
interest rates on cash and cash equivalents are based on current market rates.
Finance lease obligations are included within other financial liabilities under
current liabilities and non-current liabilities
11. A copy of the half yearly statement will be sent to all shareholders.
This information is provided by RNS
The company news service from the London Stock Exchange