|
|
For Release at
Preliminary
Results for the year ended
Strong performance and encouraging future prospects
Summary Results
|
|
Year to 31st March
|
%
|
||
|
|
2007 |
2006 |
change |
|
|
Revenue Sales excluding precious metals Profit before tax Total earnings per share |
£6,152m £1,454m £226.5m 96.9p |
£4,574m £1,159m £191.5m 70.8p |
+34 +25 +18 +37 |
|
Before one-off items
(including discontinued operations’ results):
|
|
|||
|
Profit before tax Earnings per share Dividend per share |
£242.6m 81.2p 33.6p |
£219.8m 72.7p 30.1p |
+10 +12 +12 |
|
·
Sales excluding precious metals up 25% at £1,454 million
·
Profit before tax and one-off items, including discontinued
operations’ results, up 10% to £242.6 million
·
Ceramics Division sold for £143.9 million on
·
Total earnings per share up 37% to 96.9 pence. Before one-off items (which comprise the
profit on sale of Ceramics Division and impairment costs in 2005/06) earnings
per share up 12% to 81.2 pence
·
Dividend up 12% to 33.6 pence in line with earnings growth
|
£m |
Year to 31st March 2007 2006 |
% change |
2007 at
2006 exchange
rates |
% change |
|
|
Catalysts Precious
Metal Products Pharmaceutical
Materials Corporate |
148.8 85.3 35.5 (17.2) |
134.2 62.2 33.8 (16.8) |
+11 +37 +5 |
152.7 87.1 36.2 (17.2) |
+14 +40 +7 |
|
Operating Profit |
252.4 |
213.4 |
+18 |
258.8 |
+21 |
·
Operating profit for the continuing businesses, before one-off
items, up 18% to £252.4 million, despite adverse exchange translation of £6.4
million
·
Catalysts up 11%.
Environmental Catalysts and Technologies’ (ECT’s) sales were well ahead
of last year with good growth in autocatalyst sales in Asia, increased sales of
catalysed soot filters (CSFs) in Europe and the emergence of the new market for
heavy duty diesel (HDD) catalysts in both Europe and North America. Process Catalysts and Technologies (PCT) also
achieved good growth with strong sales of methanol catalysts and a good
contribution from Davy Process Technology
·
Precious Metal Products up 37% benefiting from buoyant trading
conditions for platinum group metals, particularly in the second half of the
year, and good growth in its manufacturing businesses
·
Pharmaceutical Materials up 5% with a recovery in its
Business Prospects
·
ECT should generate good growth in sales and profits in
2007/08 with a full year of HDD catalyst sales, continued growth in CSFs and
further expansion in
·
Prospects for PCT are also very encouraging, driven by the
high oil price and the need to make more efficient use of hydrocarbon feedstocks. In
2007/08 we will be investing in additional capacity in
·
Outlook for platinum group metals demand remains good. However, following the very strong
performance in 2006/07 we expect Precious Metal Products Division to achieve
more modest growth in 2007/08
·
Pharmaceutical Materials is expected to perform well in
2007/08 with steady growth across the division
·
Following the sale of Ceramics Division the group’s gearing
(debt / equity) has fallen to 34% at
Commenting on the results, Neil
Carson, Chief Executive of Johnson Matthey said:
“Johnson Matthey performed very well last
year. Sales excluding precious metals increased
by 25% and underlying earnings per share were up 12%. We continue to invest in R&D and in new
plants around the world to meet the increasing demand for our high technology
products. Prospects for all our
businesses remain very encouraging, particularly in catalysts where global
concerns about pollution and climate change will continue to drive current and
future sales of our autocatalyst and process catalyst products.”
Enquiries:
|
Ian Godwin |
Director, IR and Corporate Communications |
020 7269 8410 |
|
John Sheldrick |
Group Finance Director |
020 7269 8408 |
|
Howard Lee |
The HeadLand Consultancy |
020 7367 5225 |
|
Laura Hickman |
The HeadLand Consultancy |
020 7367 5227 |
www.matthey.com
Report to Shareholders
Johnson Matthey
achieved very good results in 2006/07 with sales, profit before tax and earnings
per share all well ahead of last year. Catalysts
Division and Precious Metal Products Division both achieved double digit growth
in sales and operating profit despite adverse exchange translation. Sales were boosted by the significant rise in
the prices of platinum group metals. Demand
for catalysts was also very strong with expanding sales of catalysed soot
filters for light duty diesel vehicles, the emergence of a new market for heavy
duty diesel catalysts to original equipment manufacturers and increased sales
of process catalysts.
We sold our
Ceramics Division on
Revenue increased by 34% to £6,152
million. Precious metal prices grew
strongly over the year which boosted sales in both Catalysts Division and
Precious Metal Products Division. Sales
excluding the value of precious metals rose by 25% reflecting good underlying volume
growth and increased non precious metal material costs, some of which are a
pass through for Johnson Matthey.
Operating profit
before one-off items increased by 18% to £252.4 million, despite adverse
exchange translation of £6.4 million. There were no one-off items in operating
profit in 2006/07 whereas in 2005/06 a £6.0 million impairment charge was
included. After one-off items growth in operating profit was 22%.
The group’s interest charge rose by
£11.1 million as a result of higher average borrowings and higher interest rates. Profit before tax and one-off items for the
continuing businesses rose by 15% to £226.5 million. After one-off items the rise was 18%. If the
operating results for discontinued operations are included in the total, profit
before tax was £242.6 million which was 10% up on last year’s reported profit
before tax and one-off items of £219.8 million.
Total earnings per share, including
the profit on disposal of Ceramics, rose by 37% to 96.9 pence. Earnings per share before one-off items (profit
on sale of Ceramics Division and last year’s impairment charge) were 12% up at
81.2 pence.
The board is recommending to
shareholders a final dividend of 23.7 pence, making a total dividend for the
year of 33.6 pence, an increase of 12%, which is in line with the growth in earnings
per share before one-off items.
Catalysts Division’s sales rose by 48%
to £2,193 million, partly as a result of significantly higher prices for
platinum, palladium and rhodium.
Excluding the value of precious metals, sales rose by 32% to £1,036
million. This increase was driven by
good volume growth and the impact of higher material costs, such as the costs
of substrates for catalysed soot filters, which are a pass through for Johnson
Matthey.
The
division’s operating profit increased by 11% to £148.8 million, with both
Environmental Catalysts and Technologies and Process Catalysts and Technologies
performing well. The results were
adversely affected by exchange translation.
At last year’s rates sales excluding precious metals would have
increased by 35% and operating profit would be 14% up.
Environmental Catalysts and Technologies (ECT) was well ahead of last year with good growth in
In Johnson
Matthey’s financial year to 31st March 2007 global light duty
vehicle sales increased by 2.8% to 66.3 million. Car production rose by 3.1% with a small
overall increase in inventories. Most of
the growth in production again came in
Estimated Light Vehicle Sales and Production
|
|
|
Year to 31st March |
|
||
|
|
|
2007 millions |
2006 millions |
change % |
|
|
Total Global |
Sales Production Sales Production Sales Production Sales Production |
|
19.3 14.9 21.3 21.1 16.4 25.4 66.3 66.9 |
19.7 15.9 20.6 20.7 15.2 23.2 64.5 64.9 |
-2.0% -6.3% +3.4% +1.9% +7.9% +9.5% +2.8% +3.1% |
|
Source: Global
Insight |
|
|
|
|
|
We continue to see increasing demand
from many of the leading car companies in
During the year we commenced
construction of a new autocatalyst manufacturing facility in the
Our business in
Our new plant in
The market for HDD catalysts for new
vehicles grew rapidly in the second half of the year. New emission control standards for HDD
vehicles came into force in October 2006 for all new vehicles sold in
Johnson Matthey’s sales, excluding
precious metals, of HDD catalysts to original equipment manufacturers (OEMs)
increased to £46 million in the second half of 2006/07 from £7 million in the
first half. Sales in the
Our HDD business in
On road HDD emissions legislation
will undoubtedly continue to tighten beyond 2010. In addition there is also legislation in place
in the European Union and the
Process Catalysts
and Technologies (PCT) also achieved good growth in sales and
profits in 2006/07. The Ammonia,
Methanol, Oil and Gas (AMOG) business was well ahead of last year with
continued strong demand for catalysts and purification materials for industries
where hydrogen or synthesis gas are key intermediates. Demand from methanol producers was
particularly good in 2006/07.
Davy Process Technology (DPT), which
we acquired in February 2006, had an excellent year concluding several major
contracts. The acquisition of DPT has
provided Johnson Matthey with additional opportunities to grow sales of
catalysts into new technology developments. DPT develops and licenses chemical process
technologies and is benefiting from growth in
PCT’s fine chemicals and related
catalysts businesses performed well in the year. Demand for precious metal chemicals was
strong and sales of homogeneous and Sponge NickelTM
catalysts showed good growth. Research
Chemicals benefited from a good contribution from its new joint venture in
Our Fuel Cells business achieved strong growth in sales, from a small
base, with significantly increased orders for membrane electrode assemblies for
direct methanol fuel cells (DMFCs). Most of these sales were for portable fuel
cells which are sold to European consumers.
Other sectors where fuel cells have applications, such as automotive and
local power generation, have benefited from growing interest in low carbon and
low emission technologies. The annual
cost of our Fuel Cells business fell by £0.8 million to £7.3 million.
Precious Metal Products Division’s sales increased by 29% to £3,824 million, boosted by
higher prices for platinum group metals (pgms). In sterling terms the average
price of platinum rose by 18%. Prices of the minor metals (rhodium, iridium
and ruthenium) increased dramatically. Operating
profit (before last year’s impairment costs) rose by 37% to £85.3 million. At last year’s exchange rates operating profit
would have been 40% higher. Both the
marketing and distribution business and the manufacturing businesses achieved
strong growth in the year.
The price of platinum was extremely
volatile in 2006/07. With the physical
market tightly balanced, speculative interest and the volatility in other
commodities such as oil had a significant impact on the price. Platinum peaked at a new all time high of
$1,390/oz in November and was subject to a broadly upward trend throughout the
year. The average price for the year was
$1,185/oz, a 26% increase on 2005/06 (18% in sterling terms).
Total consumption of platinum increased
once more in 2006/07, a pattern unbroken since 1992. Demand for platinum in autocatalysts increased
by 11% with much of the growth generated in
Supplies of platinum increased in
2006/07, with new mines coming on stream and the largest producer Anglo
Platinum having a good year after unexpected problems in 2005. Overall, the
platinum market was close to balance in 2006/07, which, following several years
of deficits, ensured the price remained firm.
The palladium price reached its peak
for 2006/07 in May, touching $398/oz. Supply
and demand fundamentals continued to be largely incidental as hedge funds and
institutional investors extended already substantial long positions in the
market. With their significant and
consistent support, the average price for the year was $336/oz, an increase of
47% on 2005/06.
The price of rhodium rose sharply in
2006/07, touching a peak of $6,275/oz in May. The average price doubled for a second
successive year to reach $5,166/oz. Strong
demand from the automotive and glass fabrication industries coupled with
speculative interest left little metal to be offered in the spot market, in
spite of modestly increased supply. This
sustained pressure on a market which was already tight and illiquid inevitably
caused the price to rise sharply.
The past year has been notable for
the dramatic increase in the price of ruthenium, which rose from $160/oz to
reach $870/oz before easing to $700/oz by the end of our financial year. The price increase was attributable to a surge
in demand from the electronics industry for the coating of a new generation of
hard disk memory storage.
Profits from the division’s
marketing and distribution operations were substantially higher than in 2005/06,
benefiting from good growth in demand and higher pgm prices. The results in the second half of the year also
benefited from some trading profits on the minor metals. Although we do not expect these trading profits
to be repeated at the same level in 2007/08, market conditions remain favourable
and we would expect the business to achieve further growth in profits in the
current year if market conditions remain the same.
The division’s metal fabrication
businesses achieved good growth in 2006/07. The market for catalysts used in the abatement
of nitrous oxide, a powerful greenhouse gas produced as a by product in the
manufacture of nitric acid, is starting to develop. We have excellent products in this area and
the contracts currently being finalised will generate a new revenue stream in
the coming years. Our medical products
business located at three sites in
Pgm Refining maintained its good
progress, benefiting from higher pgm prices which stimulated the flow of
secondary materials for refining, especially autocatalyst scrap.
Colour Technologies achieved further
good growth in operating profit, with our products for automotive glass proving
very successful. In this sector we
continue to invest heavily in product development to meet the increasingly
stringent requirements of our customers for improved enamels and conductive
inks.
The division’s gold and silver
business also enjoyed a good year, boosted by very strong metal prices which
stimulated good flows of secondary materials. Our North American operations at
Pharmaceutical Materials Division’s sales rose by 1% to £135 million.
Operating profit was up 5% at £35.5 million. The division’s
The
recovery in the division’s
A New Drug
Application (NDA) was filed for Satraplatin, a potential new platinum anticancer
drug which was discovered by Johnson Matthey, licensed to Spectrum
Pharmaceuticals, Inc. and sub-licensed for development and commercialisation to
GPC Biotech. If this drug is successful
Johnson Matthey will receive both royalty and manufacturing income from the
product.
Sales at
Macfarlan Smith, based in
The longer
term outlook for our Pharmaceutical Materials business is encouraging. We expect to see further steady growth in
sales of APIs for generic controlled drugs, particularly those used in the
treatment of pain which is a growing market, and in platinum based anticancer
drugs. There is also the opportunity for
additional growth from the launch of new products, such as Satraplatin if it
should be approved, and the agreed launch in April 2009 of Barr’s generic
version of ADDERALL XR®.
The main impact of exchange rate movements
on the group’s results comes from the translation of foreign subsidiaries’
profits into sterling. A quarter of the
group’s profits are made in
Most major south east
Asian currencies were weaker, adding a further £1.5 million to adverse exchange
translation. The South African rand also
weakened substantially, from R11.4/£ to R13.4/£. However, the catalysts manufactured by our
South African business are ultimately for export and the benefit of a weaker
rand on margins more than offsets the translational effect. Overall, excluding the rand, exchange
translation reduced group profits by £6.4 million compared with 2005/06.
The group’s net finance costs rose
by £11.1 million to £26.8 million.
Average borrowings were significantly higher than last year as a result
of the major investment in both capital expenditure and working capital to
support the rapid growth in Catalysts Division, and the acquisition of Davy
Process Technology in February 2006. However,
with the sale of Ceramics Division at the end of February 2007, net debt fell
significantly in March to end the year at £364.8 million. Interest rates also rose,
particularly for floating rate US dollars, which on average were 1.3% up on
2005/06.
Taxation
The group’s tax charge for the
continuing businesses was £64.7 million, an increase of £10.0 million on last
year reflecting the growth in profit before tax. The average tax rate for the continuing
businesses was 28.6%. The £33.3 million
profit on disposal of Ceramics Division was largely tax free as a result of the
substantial shareholdings exemption for tax on
Tax paid was £81.4 million which was
much higher than in 2005/06. Some of the
difference related to timing with payments falling into the first quarter of
2006/07 rather than the final quarter of the previous year. In addition, in 2005/06 we reached agreement
with HM Revenue & Customs in the
Cash Flow
Johnson Matthey generated a net cash
inflow of £13.8 million in 2006/07. Net
debt disposed of with the sale of Ceramics Division amounted to £19.1
million. After taking into account the
impact of exchange translation on foreign currency borrowings the group’s net
debt fell by £47.2 million to £364.8 million.
The proceeds of sale of Ceramics
Division amounted to £146.0 million (cash received plus net debt disposed of on
sale). The group spent £8.6 million on
acquisitions in the year and a net £50.4 million on share buy-backs. Excluding these items the group had a free
cash outflow of £54.3 million.
This outflow was the result of major
investments in the year on capital expenditure and working capital to support
the future growth of Catalysts Division, particularly ECT. In addition, working capital grew as a result
of the rise in precious metal prices which affected both inventories and
receivables. In total, the cash outflow
on working capital was £114.4 million, although the ratio of working capital to
revenue fell.
Capital expenditure for the year was
£119.8 million which was 1.5 times depreciation. Most of the investment was focused on
Catalysts Division where capex was 2.0 times depreciation, with the other
divisions spending at levels close to or below depreciation. The cash outflow on capital expenditure in
the year was £121.5 million (net of asset sales) with a reduction in payments
accrued.
Environmental Catalysts and
Technologies spent £63.9 million in 2006/07 with major investments in new
capacity. We have completed the new
diesel products facility in
The surplus on the group’s
Worldwide, including provisions for
the group’s post-retirement healthcare schemes, the group had a net surplus of
£0.9 million on employee benefit obligations at
Capital Structure
In 2006/07 we invested heavily in
capital expenditure and working capital to support organic growth, particularly
in ECT. We also purchased 3.6 million
shares into treasury at a total cost of £52.6 million. Proceeds of £2.2 million were received from
option exercises to give a net outflow on share transactions of £50.4 million. However, these outflows were more than offset
by the proceeds from the sale of Ceramics Division of £146.0 million. Net debt at
In 2007/08 we will continue to
invest in organic growth, with capital expenditure budgeted to be 1.5 times
depreciation and further additional investment in working capital. Despite this significant investment we expect
to maintain or improve the group’s return on assets which rose by 0.4% to 17.4%
in 2006/07. We plan to continue to buy
back shares in 2007/08 and we are looking at a number of possible bolt-on
acquisitions. Together these investments
will increase gearing and make more efficient use of the group’s balance sheet.
Divisional Structure
From
This new structure is designed to
give greater focus on technologies concerned with protecting the environment
such as pollution control, cleaner fuel, more efficient use of hydrocarbons and
the hydrogen economy. Our new
Environmental Technologies Division, which combines our core skills in
catalysts and process technology, is well positioned to serve these emerging
markets.
Johnson
Matthey’s Pharmaceutical Materials business is focused on the manufacture of
fine chemicals, particularly APIs, sold to
pharmaceutical companies which fits well with the group’s other fine chemicals
and catalysts businesses which sell into the same or similar markets. Our new Fine Chemicals &
Catalysts Division, which combines the group’s fine chemicals and related
catalysts businesses, will enable us to take advantage of the marketing and
technology synergies that exist between these businesses.
The segmental results for 2006/07,
restated for the new divisions, are shown in note 2 on page 23.
Outlook
The outlook for the group for the
next few years continues to be very encouraging. We expect to achieve further strong growth in
sales excluding precious metals, particularly in Environmental Technologies
Division. In 2007/08 growth in underlying
earnings per share will be approximately 4 to 5% less than the growth in profit
before tax for the continuing businesses, because of the dilutive effect of the
sale of Ceramics. However, looking
forward to 2008/09 and beyond, growth in profit before tax and earnings will be
stronger as a result of the divestment.
In 2007/08 we should benefit from a
full year of sales of HDD catalysts to meet new emission standards introduced
in
Our Process
Technologies business is also experiencing strong demand, particularly for catalysts
for synthesis gas and hydrogen production.
Prospects for Process Technologies are encouraging, driven by the high
oil price and the need to make more efficient use of hydrocarbon feedstocks.
Precious Metal
Products Division enjoyed very strong growth in 2006/07, benefiting from buoyant
trading conditions in platinum group metals and good growth in its
manufacturing businesses. In the second
half of the year the division benefited from some trading profits on the minor pgms
which we do not expect to be repeated at the same level in 2007/08, but
overall, if current market conditions continue, we would still expect the
division to achieve further growth in 2007/08, particularly in the first half
of the year.
Our new Fine Chemicals
& Catalysts Division is expected to achieve steady growth in 2007/08, with
a further recovery in the US Pharmaceutical Materials & Services business
and continued growth in catalysts and research chemicals. Most of the division’s growth in 2007/08 is
likely to come in the second half of the year.
Overall, the group
should perform well in 2007/08.
Prospects for all our businesses are good, particularly for
Environmental Technologies where global concerns about pollution, climate
change and making the most efficient use of energy resources will create
significant opportunities for future growth.
|
Consolidated Income Statement |
|
|
|
|
|
||
|
for the year ended |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2007 |
|
2006 |
|
|
|
|
|
|
|
|
restated |
|
|
|
|
Notes |
|
£ million |
|
£ million |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
1 |
|
6,151.7 |
|
4,573.7 |
||
|
Cost of materials sold |
|
|
(5,300.0) |
|
(3,842.3) |
||
|
Net revenues |
|
|
851.7 |
|
731.4 |
||
|
Other cost of sales |
|
|
(413.7) |
|
(358.7) |
||
|
Gross profit |
|
|
438.0 |
|
372.7 |
||
|
Distribution costs |
|
|
(81.8) |
|
(75.3) |
||
|
Administrative expenses |
|
|
(103.8) |
|
(84.0) |
||
|
Impairment costs |
|
|
- |
|
(6.0) |
||
|
Operating profit |
1,3 |
|
252.4 |
|
207.4 |
||
|
Finance costs |
|
|
(36.0) |
|
(31.5) |
||
|
Finance income |
|
|
9.2 |
|
15.8 |
||
|
Share of profit / (loss) of associates |
|
|
0.9 |
|
(0.2) |
||
|
Profit before tax |
|
|
226.5 |
|
191.5 |
||
|
Income tax expense |
4 |
|
(64.7) |
|
(54.7) |
||
|
Profit for the year from continuing operations |
|
|
161.8 |
|
136.8 |
||
|
Profit for the year from discontinued operations |
5 |
|
43.7 |
|
14.5 |
||
|
Profit for the year |
|
|
205.5 |
|
151.3 |
||
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
||
|
Equity holders of the parent company |
|
|
206.5 |
|
152.1 |
||
|
Minority interests |
|
|
(1.0) |
|
(0.8) |
||
|
|
|
|
|
|
205.5 |
|
151.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
pence |
|
pence |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per ordinary share attributable to the
equity holders of the parent company |
|
|
|
|
|
||
|
|
Continuing operations |
|
|
|
|
|
|
|
|
|
Basic |
6 |
|
76.5 |
|
64.2 |
|
|
|
Diluted |
6 |
|
75.3 |
|
63.9 |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
Basic |
6 |
|
96.9 |
|
70.8 |
|
|
|
Diluted |
6 |
|
95.4 |
|
70.5 |
|
|
|
|
|
|
||
|
as at |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2007 |
|
2006 |
|
|
|
|
|
|
|
restated |
|
|
|
Notes |
|
£ million |
|
£ million |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
Property, plant and equipment |
|
|
600.7 |
|
661.1 |
|
|
Goodwill |
|
|
399.2 |
|
403.1 |
|
|
Other intangible assets |
|
|
40.1 |
|
41.3 |
|
|
Deferred income tax assets |
|
|
8.9 |
|
4.4 |
|
|
Investments and other receivables |
|
|
10.0 |
|
10.4 |
|
|
Post-employment benefits net assets |
|
|
49.2 |
|
75.0 |
|
|
Total non-current assets |
|
|
1,108.1 |
|
1,195.3 |
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
Inventories |
|
|
362.7 |
|
345.8 |
|
|
Current income tax assets |
|
|
7.0 |
|
3.6 |
|
|
Trade and other receivables |
|
|
527.3 |
|
478.5 |
|
|
Cash and deposits |
8 |
|
73.2 |
|
133.0 |
|
|
Investments and other financial assets |
|
|
3.4 |
|
3.3 |
|
|
Other current assets |
|
|
7.1 |
|
7.1 |
|
|
Non-current assets classified as held for sale |
|
|
0.4 |
|
- |
|
|
Total current assets |
|
|
981.1 |
|
971.3 |
|
|
Total assets |
|
|
2,089.2 |
|
2,166.6 |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
Trade and other payables |
|
|
(416.0) |
|
(385.9) |
|
|
Current income tax liabilities |
|
|
(52.7) |
|
(66.0) |
|
|
Borrowings and finance leases |
8 |
|
(27.5) |
|
(90.3) |
|
|
Other financial liabilities |
|
|
(2.0) |
|
(4.2) |
|
|
Provisions |
|
|
(7.7) |
|
(9.1) |
|
|
Total current liabilities |
|
|
(505.9) |
|
(555.5) |
|
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
Borrowings, finance leases and related swaps |
8 |
|
(410.5) |
|
(454.7) |
|
|
Deferred income tax liabilities |
|
|
(36.5) |
|
(49.7) |
|
|
Employee benefits obligations |
|
|
(48.3) |
|
(56.2) |
|
|
Provisions |
|
|
(8.7) |
|
(5.2) |
|
|
Trade and other payables |
|
|
(1.2) |
|
(0.8) |
|
|
Total non-current liabilities |
|
|
(505.2) |
|
(566.6) |
|
|
Total liabilities |
|
|
(1,011.1) |
|
(1,122.1) |
|
|
Net assets |
|
|
1,078.1 |
|
1,044.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
Share capital |
|
|
220.5 |
|
220.2 |
|
|
Share premium account |
|
|
146.3 |
|
144.4 |
|
|
Shares held in employee share ownership trusts |
|
|
(61.9) |
|
(63.0) |
|
|
Other reserves |
|
|
(12.9) |
|
28.5 |
|
|
Retained earnings |
|
|
783.7 |
|
708.0 |
|
|
Total equity attributable to equity holders of the
parent company |
|
|
1,075.7 |
|
1,038.1 |
|
|
Minority interests |
|
|
2.4 |
|
6.4 |
|
|
Total equity |
10 |
|
1,078.1 |
|
1,044.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
for the year ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2007 |
|
2006 |
|
|
|
|
|
|
|
restated |
|
|
|
Notes |
|
£ million |
|
£ million |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
Profit before tax |
|
|
226.5 |
|
191.5 |
|
|
Adjustments for: |
|
|
|
|
|
|
|
|
Share of (profit) / loss in associates |
|
|
(0.9) |
|
0.2 |
|
|
Discontinued operations |
|
|
15.9 |
|
21.3 |
|
|
Depreciation, amortisation and profit on
sale of non-current assets and investments |
|
|
77.7 |
|
76.7 |
|
|
Share-based payments |
|
|
6.9 |
|
3.2 |
|
|
Increase in inventories |
|
|
(82.5) |
|
(25.6) |
|
|
Increase in receivables |
|
|
(136.5) |
|
(78.7) |
|
|
Increase in payables |
|
|
104.6 |
|
63.7 |
|
|
Increase / (decrease) in provisions |
|
|
5.9 |
|
(18.1) |
|
|
Employee benefits obligations charge less contributions |
|
|
(9.1) |
|
(9.3) |
|
|
Changes in fair value of financial instruments |
|
|
5.2 |
|
(12.4) |
|
|
Net finance costs |
|
|
26.8 |
|
15.7 |
|
Income tax paid |
|
|
(81.4) |
|
(15.9) |
|
|
Net cash inflow from operating activities |
|
|
159.1 |
|
212.3 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
Dividends received from associates |
|
|
0.5 |
|
0.1 |
|
|
Purchases of non-current assets and investments |
|
|
(125.0) |
|
(120.3) |
|
|
Proceeds from sale of non-current assets and investments |
|
|
3.5 |
|
5.7 |
|
|
Purchases of businesses and minority interests |
|
|
(8.6) |
|
(24.3) |
|
|
Net proceeds from sale of businesses and minority interests |
|
|
127.1 |
|
- |
|
|
Net cash outflow from investing activities |
|
|
(2.5) |
|
(138.8) |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
Net purchase of own shares |
|
|
(50.4) |
|
(25.9) |
|
|
(Repayment of) / proceeds from borrowings and finance leases |
|
|
(71.8) |
|
82.3 |
|
|
Dividends paid to equity holders of the parent company |
7 |
|
(66.0) |
|
(60.4) |
|
|
Dividends paid to minority shareholders |
|
|
- |
|
(0.2) |
|
|
Interest paid |
|
|
(31.3) |
|
(30.6) |
|
|
Interest received |
|
|
4.9 |
|
16.6 |
|
|
Net cash outflow from financing activities |
|
|
(214.6) |
|
(18.2) |
|
|
|
|
|
|
|
|
|
|
(Decrease) / increase in cash and cash equivalents
in the year |
|
|
(58.0) |
|
55.3 |
|
|
Exchange differences on cash and cash equivalents |
|
|
(7.1) |
|
5.8 |
|
|
Cash and cash equivalents at beginning of year |
|
|
125.1 |
|
64.0 |
|
|
Cash and cash equivalents at end of year |
8 |
|
60.0 |
|
125.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to net debt |
|
|
|
|
|
|
|
(Decrease) / increase in cash and cash equivalents in the year |
|
|
(58.0) |
|
55.3 |
|
|
Repayment of / (proceeds from) borrowings and finance leases |
|
|
71.8 |
|
(82.3) |
|
|
Change in net debt resulting from cash flows |
|
|
13.8 |
|
(27.0) |
|
|
Borrowings acquired with subsidiaries |
|
|
- |
|
(1.4) |
|
|
Borrowings disposed of with subsidiaries |
|
|
19.1 |
|
- |
|
|
Exchange differences on net debt |
|
|
14.3 |
|
(13.4) |
|
|
Movement in net debt in year |
|
|
47.2 |
|
(41.8) |
|
|
Net debt at beginning of year |
|
|
(412.0) |
|
(370.2) |
|
|
Net debt at end of year |
8 |
|
(364.8) |
|
(412.0) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
for the year ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2007 |
|
2006 |
|
|
|
Notes |
|
£ million |
|
£ million |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency translation differences on foreign currency net investments
and |
|
|
|
|
|
|
|
|
related loans |
|
|
(67.3) |
|
42.3 |
|
Currency translation differences - transferred to profit on sale of
discontinued operations |
5 |
|
(3.8) |
|
- |
|
|
Fair value gain on available-for-sale investments transferred to
profit on sale |
|
|
- |
|
(0.8) |
|
|
Cash flow hedges - gains / (losses) taken to equity |
|
|
3.1 |
|
(3.6) |
|
|
Cash flow hedges - transferred to income statement in the year |
|
|
1.2 |
|
(2.6) |
|
|
Fair value gains / (losses) on net investment hedges |
|
|
23.3 |
|
(12.5) |
|
|
Fair value gains on net investment hedges - transferred to profit on sale of
discontinued |
|
|
|
|
|
|
|
|
operations |
5 |
|
(2.0) |
|
- |
|
Actuarial (loss) / gain on post-employment benefits assets and
liabilities |
|
|
(32.3) |
|
19.6 |
|
|
Tax on above items taken directly to or transferred from equity |
|
|
13.5 |
|
(7.8) |
|
|
Net (expense) / income recognised
directly in equity |
|
|
(64.3) |
|
34.6 |
|
|
Profit for the year |
|
|
205.5 |
|
151.3 |
|
|
Total recognised income
and expense relating to the year |
|
|
141.2 |
|
185.9 |
|
|
IFRS transition adjustment for financial instruments |
|
|
- |
|
2.7 |
|
|
|
|
|
|
141.2 |
|
188.6 |
|
|
|
|
|
|
|
|
|
Total recognised income
and expense attributable to: |
|
|
|
|
|
|
|
Equity holders of the parent company |
|
|
142.2 |
|
186.7 |
|
|
Minority interests |
|
|
(1.0) |
|
(0.8) |
|
|
|
|
|
|
141.2 |
|
185.9 |
|
|
|
|
|
|
|
|
|
IFRS transition adjustment for financial instruments
attributable to: |
|
|
|
|
|
|
|
Equity holders of the parent company |
|
|
- | |||