*AGA FOODSERVICE 2004 CLEAN PRETAX UP 7.5 PCT TO 38.6 MLN STG *AGA FOODSERVICE 2004 SALES UP 10.9 PCT TO 435 MLN STG stg*AGA FOODSERVICE RAISES FINAL DIVIDEND X.X PCT TO X.X PENCE PER SHARE (5.0)
435.0 392.4 10.9
38.6 35.9 7.5
er:9154J AGA Foodservice Group PLC 18 March 2005
18th March 2005
FOR IMMEDIATE RELEASE
AGA FOODSERVICE GROUP PLC
2004 PRELIMINARY RESULTS
HIGHLIGHTS
Full year to 31st December 2004 2004 2003
Total Total Increase
#m #m % Turnover 435.0 392.4 10.9 Total operating profit before goodwill amortisation 38.0 33.2 14.5 Total operating profit 30.0 25.2 19.0 Profit before tax and goodwill amortisation 38.6 35.9 7.5 Profit before tax 30.6 27.9 9.7 Basic earnings per share 18.4p 17.2p 7.0 Basic earnings per share before goodwill amortisation 24.7p 23.3p 6.0 Dividend per share 8.3p 7.2p 15.3 Shareholders' funds 283.5 281.9 Net cash 25.1 29.6
2004 Highlights:
* Strong trading performance with operating profits up by 19%, organic growth of
11%. * Another record year for Aga and Rangemaster and a rebound in the US for
Domain. * European foodservice operations strengthening, while the US continues to be
patchy. * Dividend increase of 15% brings the 3-year increase to 66%.
2005 Outlook:
* Steady trading at the start of 2005. The growing impact of new innovative
products and international growth reduces exposure to any particular consumer
spending cycle. Markets across the foodservice activities are improving and
the Infinity Fryer is set to make a major impact. * Balance sheet strength available for acquisition and share buy-back
programmes.
"Our performance in 2004 was pleasing. We have the international market positions, products and distribution to make 2005 an impressive year for the Group. The further significant dividend increase reflects the confidence in our prospects."
William McGrath
Chief Executive
Enquiries:
William McGrath, Chief Executive 0207 404 5959 (today) Shaun Smith, Finance Director 0121 711 6015 (thereafter) Jonathan Glass (Brunswick) 0207 404 5959
Interviews with William McGrath, CEO and Stephen Rennie, COO in video/audio and text will be available from 07:00 on 18 March 2005 on: www.agafoodservice.com and on www.cantos.com.
Aga Foodservice Group plc
2004 Preliminary Statement
CHAIRMAN'S AND CHIEF EXECUTIVE'S STATEMENTS
2004 was a good year for the Aga Foodservice Group. Our trading results were well ahead of 2003 and our long term plan to be a world leader in premium consumer and commercial cookers and fridges was reflected in new product introductions and extensions to our distribution structures. In 2005 we are looking for further organic growth benefiting from the investments made in recent years and from continuing with these investment programmes.
Consumer Operations
Our European consumer operations had an exciting year. Not only did both Aga-Rayburn and Rangemaster achieve further record performances but we increased materially the number of product displays - the key to sales growth. Outside the UK there are now over 450 live Aga displays in place and nearly 1,000 Rangemaster displays - increases of 70% and 130% respectively in the year. With the availability of our fridge ranges and the increasing importance of our cookware offering, we have an impressive product range capable of supporting stand alone retail outlets outside the UK - either owned by us or our dealer partners. We have achieved a key objective of becoming a business with an international outlook. In helping to achieve this, the Domain and Grange links are significant. In particular, Domain on the US East Coast provides a home furnishings base now clearly interlinked with our upscale appliance offering and has helped shape our retail thinking. Domain itself saw a performance rebound for its core activity with a 6% like-for-like sales increase in the fourth quarter.
Taken overall, our consumer operations moved ahead well, particularly in Europe, with turnover of #241.4 million and operating profits before goodwill amortisation of #23.0 million compared to #204.6 million and #18.1 million respectively in 2003. This represented organic growth rates of 11.3% and 24.1% for turnover and operating profit respectively. Return on sales reached 9.5% and return on capital employed was 36.9%.
Foodservice Operations
2004 was a far more encouraging year for our European foodservice operations after the lacklustre markets of the previous two years started to improve. We saw order intake move ahead steadily in the second half of 2004 in our bakery and commercial markets. In addition, our products took us into new markets and provided a broadened base on which to seek growth in 2005 and the years ahead.
To direct our efforts we have created Aga Bakery to consolidate our bakery interests and be the primary driver into the supermarket and artisan bakery markets where we are by some distance the world leader. In its principal markets of Europe and North America, Aga Bakery has a strong management structure to take its impressive product range to new and established customers.
For our cooker and refrigeration operations, 2004 was encouraging, particularly in Europe. We are making good progress with our Bongard and Pavailler businesses, and using technology and branding that have worked well in France to roll out on an international basis to America and the UK. In North America the market conditions prevented us from passing on cost increases and together with the investment in taking European products to the US, we saw a reduction in margins. We intend to make the Infinity Fryer a cornerstone of the foodservice operations during 2005.
Employees
The experienced and enterprising staff and management in our operations provide a backbone to the Group and this is reflected in the results for the year. We now have a very international mix among our 5,500 employees, with 1,000 employees based in the US and 700 in France. We are grateful for their growing influence and contribution to the Group as a whole.
Strategic Progress
Over the past four years, we have focused on creating a major international Group that is a force in premium appliances for the domestic and commercial markets with Aga at its heart. The acquisitions we have made have created a formidable position for us and the research and development programmes continue to provide an array of innovative products to display in our expanded owned and dealer driven retail structures. It has been an exciting journey and the benefits seen in 2004 are only an indication of what is achievable in the longer term. Hence, we will continue to develop along our well-established lines.
In foodservice, we believe we can create a sustainable competitive advantage through a focus on innovative products that not only cook well, but are themselves efficient giving impetus to the environmental, efficiency and health and safety concerns of our customers. Our sustained investment in research and development has given us our strongest ever product portfolio.
Our financial position remains strong. We had net cash at the end of 2004 of #25.1 million. Total shareholder returns over the last four years have been 20% above the sector average. We are raising our total dividend from 7.2 pence to 8.3 pence whilst retaining a net cash position which will be used to finance a continuing acquisition programme and, as opportunities allow, to sustain our share buy-back programme.
Prospects
Strong marketing programmes continue to drive leads and sales in our consumer operations. In foodservice, there are more major accounts looking for the products and ideas that we have to offer. We expect the current year to show further progress backed up by a continuation of the investment programmes we have in place.
2005 is, therefore, a further year to which we look with confidence.
V Cocker W B McGrath Chairman Chief Executive
18th March 2005
OPERATIONAL REVIEW - 2004 PRELIMINARY RESULTS FOR AGA FOODSERVICE GROUP PLC
Consumer Operations (Turnover #241.4 million and operating profits before goodwill amortisation #23.0 million)
2004 was a very good year for our consumer businesses, led by record performances at Aga-Rayburn and Rangemaster and by the success of our retail outlets in the UK and beyond. Turnover reached #241.4 million and operating profits before goodwill amortisation were #23.0 million. Pleasingly the US added to the strength in Europe. Domain operating profits before goodwill rebounded although not yet to 2002 levels and were $1.9 million up from $0.9 million in 2003. Aga Ranges - now part of the US appliance axis including Northland-Marvel, the refrigeration business - whilst not yet profitable, should be so in 2005.
The Group now has a formidable product offering in the upscale appliance sector - markets in which we are well-recognised as a leader, innovator and segment creator. This was highlighted by products launched in 2004. The 3-oven Aga and the electric Aga, now available with 2 or 4 ovens, together accounted for over 25% of sales of our heat storage cookers. The 90cm Rangemaster cookers - with 2 full working ovens, a grill and 5 burners, have created a new market segment. It now accounts for 40% of Rangemaster cooker sales. We have our heartland and origins in the UK but we now have an established presence - with our work to meet national specifications and to have clear local distribution - in Europe and North America. This internationalisation was seen with Aga's conventional cooking range, the Six:Four and the US version of the Rangemaster Elan doing particularly well in the growing US range cooker market.
Aga-Rayburn was, once again, able to move volumes and profits well ahead and with the product and distribution platform in place, we continue to pursue the objective of sales of 15,000 Aga branded cookers in 2006, up from 11,500 in 2004 and 10,000 in 2003.
The greatest progress in 2004 was made by Rangemaster which saw cooker volumes move ahead by 15% to over 60,000 units. The product range is enabling us to take further market share in the UK where we have strong distribution structures covering kitchen specialists alongside electrical wholesalers. Rangemaster which only broke even in 2001, before the focus on higher value added products, is now a major profit contributor. Further, Rangemaster has rapidly established itself as a hub within our consumer operations - it, for example, sources cast iron pan supports from Aga at Coalbrookdale and domestic refrigeration lines from Marvel and Williams. Looking ahead, Rangemaster is ready to supply La Cornue, acquired in August 2004, with a completely new range of products taking the business into a new price point segment with considerable international potential.
An exciting growth area exists in cookware which has become an important contributor for Aga-Rayburn. New ranges are now being introduced under the Rangemaster, Falcon and La Cornue brands.
Fired Earth saw revenues rise by 8% with the growth coming from the larger inspirational stores encompassing Aga shops. Grange's production rationalisation programme was successfully completed - profits rose and a number of product ranges introduced including two ranges for Fired Earth, which will now be Grange's primary UK dealer.
In the US, the Group saw a noteworthy improvement in overall returns driven by better trading for Domain and by a full year contribution from Northland-Marvel which started to show its full potential for the Group. Like-for-like sales for Domain were ahead by 6% in the final quarter, leaving like-for-like sales flat for the year but 15% ahead taking into account the retail space added during 2003. Increased sourcing from the Far East is now helping to improve margins. Further, Domain is proving successful at adding Group product to its overall offering and was the second largest US Aga distributor in 2004. Marvel had a good year and the combination of product introductions and increased efficiency leave it well placed moving into 2005.
Foodservice Operations (Turnover #193.6 million and operating profits before goodwill amortisation #13.7 million)
Our European foodservice operations benefited in 2004 as some major accounts moved through their capital spending cycles. We have continued to develop our structures, operational frameworks and product ranges during the market's low points which leaves our business particularly well positioned to take advantage of the upturn.
A major initiative for us has been the creation at the start of 2005 of Aga Bakery which positions our international bakery businesses in a more integrated structure with a more defined management framework. Management teams are in place to direct our European and North American businesses led by Yves Gerber and Iain Whyte respectively and managed from Strasbourg and New Jersey. These steps facilitate marketing a broad product offering to key accounts and helps drive the implementation of an international manufacturing strategy. Given our UK, North American and Far East manufacturing capabilities, following the acquisition of the minority interest in our China factory, there is scope to look more internationally at our procurement and manufacturing processes. Aga Bakery incorporates Pavailler, our second major move into the French bakery market, which we made in the autumn of 2004. Together with Bongard, we are clearly the primary provider of ovens and fridges to the artisan market and have the leading Europe-wide position in our markets.
Our particular forte is in deck ovens which are used to make quality artisan breads. Our range includes the Cervap oven from Bongard, which cooks using radiated heat like an Aga, cyclothermic ovens from Pavailler and modular formats from Mono in Wales. These ranges, backed by the widest overall range of ovens, mixers and related refrigeration equipment, provide a major competitive advantage, and the technology is also being rolled out to North America. We have an extremely strong niche position in this sector. In North America, Belshaw, the doughnut equipment manufacturer, had another strong year after a slow start, with sales into supermarkets in Mexico for the first time achieving appreciable levels. Our objective is to build on our European leading position by attracting new customers in the US where the interest in artisan breads and the cafe bakery concept is growing rapidly.
In 2004 our continental bakery operations performed well and we saw order levels steadily improve through the second half of the year. Highlights included winning a Europe-wide contract for Tesco and new product lines for Sainsbury's, including photocakes. Overall, UK markets were weak.
In the traditional foodservice markets, again after a slow start there were distinct signs that the markets were improving. In the UK, Williams, in particular, has seen good growth from major contracts such as for the new Wembley Stadium and for pub markets. In commercial cooking, Falcon's markets improved, although slowly. The major initiative for Falcon is the Infinity Fryer. The oil and energy savings; the output improvements; the in-built filtration and the improved food quality it offers are being recognised. The leading US test house saw it as a new major force - as do the large international Quick Service Restaurant chains that are running extended trials having found, in their test centres, that it meets their operating requirements and brings substantial operating benefits. We expect 2005 to bring significant orders from across our spectrum of foodservice customers.
The weakest feature of 2004 was our US refrigeration business, Victory, which struggled to pass on cost increases. We have taken decisive action to address this. At the start of 2005 we now have a strengthened position with buying groups, an enhanced sales team in place and price increases being achieved; the outlook is better. Development, approval and sales team costs of taking European products to the US have also been absorbed during the course of 2004.
Taken overall foodservice saw turnover reach #193.6 million up from #185.7 million and operating profits before goodwill amortisation were #13.7 million compared to #14.3 million.
Financials
In 2004 turnover once more increased significantly as we achieved organic growth in our major operations. Turnover of #435.0 million was 10.9% higher than in 2003. Total operating profits before goodwill amortisation were also substantially ahead at #38.0 million, 14.5% higher than in the prior year and after goodwill, at #30.0 million, up 19.0%. Profit before tax and after goodwill amortisation of #8.0 million - appearing for the last time before International Accounting Standards apply - were #30.6 million, 9.7% up on the prior year.
The tax charge of #7.1 million was 23.2% of pre tax profits, 18.4% of profits before tax and goodwill amortisation. The charge is expected to continue to track at this rate in 2005 reflecting the evolving international structure of the Group and to remain below the UK standard rate.
Earnings per share before goodwill amortisation were 24.7 pence (2003: 23.3 pence) and were 18.4 pence (2003: 17.2 pence) after goodwill amortisation. Taking into account 4.0 million shares bought back during the year, the average number of shares in issue was 127.0 million and there are now 126.0 million shares in issue.
With earnings continuing to move ahead, the Board recommends a dividend of 8.3 pence per share, a 15.3% increase. Over the four years since the Pipes business was sold, the dividend has been systematically increased and cumulatively is up 66%.
Cash flow performance in the year was good. Trading capital increased less rapidly relative to turnover and operating cash flow was in line with trading profits. We continued to invest in the businesses spending #14.6 million on capital equipment, compared with #18.0 million in 2003. Depreciation was #7.9 million. We also capitalised #2.8 million in development expenditure. Amortisation of capitalised development expenditure in the year was #0.8 million.
We also continued with our carefully paced acquisition programme, while largely focusing on the performance of existing businesses and raising returns from investments already made. We acquired La Cornue, the French premium cooker business and Pavailler, the French bakery equipment manufacturer for an aggregate of #4.6 million in 2004. Over the last four years we have spent #166 million on acquisitions. All the acquisitions are adding to our position and bring opportunities to other activities in the Group. As indicated in prior years, the Group keeps the overall financial structure of the Group under review. We expect to continue with our balanced approach of acquisitions and share buy-backs as market opportunities allow.
2005 will see us move to IAS. There are some differences between the reported figures under UK GAAP and the new IAS standards. From the work to date the most significant change relates to the Pension Scheme, which is large, in relation to the company but is among the better funded of UK company schemes. The latest actuarial work shows that the surplus in the scheme under SSAP 24 had increased to #53.9 million at 31st December 2003. The latest values for FRS 17 purposes, which will be replaced by IAS 19, suggests a small Group deficit of #4.6 million after deferred tax. In 2005, the IAS 19 figures indicate there will be a negligible change to the profit and loss account. Following the move to IAS, net assets will be reduced by the Aga Scheme IAS 19 deficit and the SSAP 24 pension prepayment already in the balance sheet. Under IFRS 3 goodwill amortisation of #8.0 million would be added back to profits and to the goodwill figure in the balance sheet. IAS 38 would require around #1 million of capitalised software costs to be transferred from fixed assets to intangible assets. The dividend creditor of #7.3 million would be reversed out under IAS 10. Our initial assessment estimates that the deferred tax liability would decrease by around #8 million. The estimated IFRS adjustments remain subject to audit.
We continue to have a strong financial position and have considerable flexibility. We remain cautious in our approach recognising the long term development opportunities for the businesses, but also the risks of moving too rapidly.
Outlook
Within the consumer operations the major growth drivers for the Group continue to perform steadily. The strategy has long been to achieve a balanced portfolio whereby the growth rates achieved outside the UK average up and match the achievements in the UK in particular. Against this background the impetus of Domain in its core business and in its connections with Aga is important.
In foodservice the turnaround in refrigeration internationally is encouraging and the momentum now coming in cooking, driven by the fryer, is encouraging. Against this background we see 2005 as a year when the benefits of our strategic moves will become clear.
GROUP PROFIT AND LOSS ACCOUNT
2004 2003
#m #m Turnover Continuing operations 427.9 Acquisitions 7.1 _______________________________________________________________________________ Total continuing operations 435.0 390.3 Discontinued operations - 2.1 _______________________________________________________________________________ Total turnover 435.0 392.4 _______________________________________________________________________________
Operating profit _______________________________________________________________________________ Continuing operating profit before goodwill amortisation 37.5 33.7 Goodwill amortisation (8.0) (8.0) _______________________________________________________________________________
29.5 25.7 _______________________________________________________________________________ Continuing operations 29.5 25.7 Acquisitions - - _______________________________________________________________________________ Total continuing operations 29.5 25.7 Discontinued operations - (0.5) _______________________________________________________________________________ Group operating profit 29.5 25.2 Share of profit from associate 0.5 - _______________________________________________________________________________ Total operating profit 30.0 25.2 Disposal of businesses - 1.8 _______________________________________________________________________________ Profit before interest and tax 30.0 27.0 Net interest receivable 0.6 0.9 _______________________________________________________________________________ Profit on ordinary activities before tax 30.6 27.9 Tax on profit on ordinary activities (7.1) (5.6) _______________________________________________________________________________ Profit on ordinary activities after tax 23.5 22.3 Equity minority interests (0.1) (0.1) _______________________________________________________________________________ Profit attributable to shareholders 23.4 22.2 Dividends (10.4) (9.3) _______________________________________________________________________________ Profit retained 13.0 12.9 _______________________________________________________________________________
Earnings per share p p
Basic 18.4 17.2
Diluted 18.3 17.1
Basic - before goodwill amortisation 24.7 23.3 _______________________________________________________________________________
GROUP BALANCE SHEET As at 31st December 2004 2003
#m #m Fixed assets Intangible assets 136.8 140.7 Tangible assets 78.6 73.2 Investments 6.5 5.8 _______________________________________________________________________________ Total fixed assets 221.9 219.7 _______________________________________________________________________________ Current assets Stocks 70.2 61.3 Debtors 107.2 102.7 Cash at bank and in hand 49.8 52.0 _______________________________________________________________________________ Total current assets 227.2 216.0 _______________________________________________________________________________ Creditors - amounts falling due within one year Operating creditors (102.6) (88.9) Borrowings (23.1) (2.2) Tax and dividends payable (9.4) (9.5) _______________________________________________________________________________ Total amounts falling due within one year (135.1) (100.6) _______________________________________________________________________________ Net current assets 92.1 115.4 _______________________________________________________________________________ Total assets less current liabilities 314.0 335.1
Creditors - amounts falling due after more than one year Creditors (0.1) (2.2) Borrowings (1.6) (20.2) Provisions for liabilities and charges (28.6) (30.4) _______________________________________________________________________________ Total net assets employed 283.7 282.3 _______________________________________________________________________________ Capital and reserves Called up share capital 31.5 32.4 Share premium account 60.9 59.9 Revaluation reserve 2.1 2.4 Capital redemption reserve 36.0 35.0 Profit and loss account 153.0 152.2 _______________________________________________________________________________ Total shareholders' funds 283.5 281.9 Equity minority interests 0.2 0.4 _______________________________________________________________________________ Total funds 283.7 282.3 _______________________________________________________________________________
GROUP CASH FLOW STATEMENT
Year to 31st December 2004 2003
#m #m
Net cash inflow from operating activities 32.9 23.9 Net returns on investments and servicing of finance 0.6 0.9 Tax paid (5.5) (5.2) Net capital expenditure and product development (9.6) (20.5) Cash outflow for acquisitions (4.6) (16.1) Equity dividends paid (9.6) (8.1) _______________________________________________________________________________ Net cash inflow / (outflow) before financing 4.2 (25.1)
Financing - issue of ordinary share capital 1.1 0.1 - loan to associated undertaking (0.3) - - purchase of own shares (9.4) - - increase / (decrease) in debt 2.4 (1.7) _______________________________________________________________________________ Net financing outflow (6.2) (1.6) _______________________________________________________________________________ Decrease in cash in the year (2.0) (26.7) _______________________________________________________________________________ Reconciliation of net cash flow to movement in net cash Decrease in cash in the year (2.0) (26.7) (Increase) / decrease in debt (2.4) 1.7 _______________________________________________________________________________ Change in net cash resulting from cash flows (4.4) (25.0) Borrowings acquired with acquisitions - (0.4) Exchange adjustment (0.1) (0.5) _______________________________________________________________________________ Decrease in net cash (4.5) (25.9) Opening net cash 29.6 55.5 _______________________________________________________________________________ Closing net cash 25.1 29.6 _______________________________________________________________________________
Reconciliation of operating profit to net cash inflow from operating activities
#m #m
Operating profit 29.5 25.2 Intangibles amortisation 8.8 8.3 Depreciation 7.9 8.1 Profit on disposal of fixed assets (1.3) (1.5) (Increase) / decrease in stocks (8.0) (7.5) (Increase) / decrease in debtors (10.5) 1.7 Increase / (decrease) in creditors 9.8 (4.5) Increase / (decrease) in provisions (3.3) (5.9) _______________________________________________________________________________ Net cash inflow from operating activities 32.9 23.9 _______________________________________________________________________________
SUPPLEMENTARY STATEMENTS
Year to 31st December 2004 2003
#m #m Statement of total recognised gains and losses Profit attributable to shareholders 23.4 22.2 Exchange adjustments on net investments (3.4) (3.2) _______________________________________________________________________________ Total recognised gains and losses since last annual report 20.0 19.0 _______________________________________________________________________________
2004 2003
#m #m Reconciliation of movements in shareholders' funds Total recognised gains and losses relating to the year 20.0 19.0 Dividends (10.4) (9.3) New share capital subscribed - share premium 1.0 -
- share capital 0.1 0.1 Purchase own shares - ordinary shares (1.0) -
- profit and loss
account (9.4) -
- capital redemption
reserve 1.0 - Future share scheme issues 0.3 0.4 _______________________________________________________________________________ Net increase in shareholders' funds 1.6 10.2 Shareholders' funds at 1st January 281.9 271.7 _______________________________________________________________________________ Shareholders' funds at 31st December 283.5 281.9 _______________________________________________________________________________
SEGMENTAL ANALYSIS
2004 2003 By business Net group Operating operating Operating Net operating
Turnover profit assets Turnover profit assets
#m #m #m #m #m #m UK & European Consumer 176.0 21.0 54.5 154.2 17.5 50.7 US Consumer 65.4 2.0 7.8 50.4 0.6 9.3 UK & European Foodservice 152.2 11.1 76.8 143.3 8.9 66.9 US Foodservice 41.4 2.6 8.9 42.4 5.4 8.2 _____________________________________________________________________________________ Total continuing operations 435.0 36.7 148.0 390.3 32.4 135.1 Other items - 0.8 - - 1.3 - Goodwill - (8.0) 131.1 - (8.0) 137.2 Discontinued operations - - (9.7) 2.1 (0.5) (10.6) _____________________________________________________________________________________ Total Group 435.0 29.5 269.4 392.4 25.2 261.7 _____________________________________________________________________________________
Net operating assets exclude net debt, dividends payable and taxation balances. Goodwill amortisation on continuing operations relates to UK & European Consumer #1.6m (2003: #1.6m), US Consumer #0.8m (2003: #0.6m), UK & European Foodservice #4.4m (2003: #4.4m) and US Foodservice #1.2m (2003: #1.4m). UK & European Consumer includes acquisition turnover of #2.1m and UK & European Foodservice includes #5.0m. Acquisition operating profits were #nil in respect of both segments.
2004 2003 By geographical Net origin Operating Operating Operating Net operating
Turnover profit assets Turnover profit assets
#m #m #m #m #m #m United Kingdom 259.8 28.2 112.6 241.7 24.9 105.2 North America 106.8 4.6 15.3 92.8 5.5 14.7 Europe 63.3 3.1 17.0 51.9 2.5 13.1 Rest of World 5.1 1.6 3.1 3.9 0.8 2.1 _____________________________________________________________________________________ Total continuing operations 435.0 37.5 148.0 390.3 33.7 135.1 Goodwill - (8.0) 131.1 - (8.0) 137.2 Discontinued operations - - (9.7) 2.1 (0.5) (10.6) _____________________________________________________________________________________ Total Group 435.0 29.5 269.4 392.4 25.2 261.7 _____________________________________________________________________________________
Goodwill amortisation on continuing operations relates to United Kingdom #4.6m (2003: #4.6m), North America #2.0m (2003: #2.0m) and Europe #1.4m (2003: #1.4m). Other items relate entirely to North America (2003: United Kingdom).
Turnover by geographical destination 2004 2003
#m % #m % United Kingdom 247.6 56.9 228.9 58.6 North America 107.9 24.8 92.0 23.6 Europe 63.6 14.6 61.6 15.8 Rest of World 15.9 3.7 7.8 2.0 __________________________________________________________________________ Total continuing operations 435.0 100.0 390.3 100.0 __________________________________________________________________________
EARNINGS PER SHARE
Year to 31st December 2004 2003
#m #m Earnings Profit on ordinary activities after tax 23.5 22.3 Minority interests (0.1) (0.1) Goodwill amortisation 8.0 8.0 ______________________________________________________________________________ Earnings before goodwill amortisation 31.4 30.2 ______________________________________________________________________________ Profit on ordinary activities after tax 23.5 22.3 Minority interests (0.1) (0.1) ______________________________________________________________________________ Earnings - for basic and diluted EPS 23.4 22.2 ______________________________________________________________________________
Weighted average number of shares in issue million million For basic EPS calculation 127.0 129.4 Dilutive effect of share options 0.6 0.5 ______________________________________________________________________________ For diluted EPS calculation 127.6 129.9 ______________________________________________________________________________ Earnings per share p p
Basic 18.4 17.2 Diluted 18.3 17.1 Basic - before goodwill amortisation 24.7 23.3 ______________________________________________________________________________
NOTES
1. Dividends
The Board has approved the payment of a final dividend amounting to 5.8p per share (2003: 5.0p). An interim dividend of 2.5p per share (2003: 2.2p) has already been paid, making the total dividend for the year 8.3p per share (2003: 7.2p). The final dividend will be paid on 3rd June 2005 to shareholders registered on 29th April 2005.
2. Exchange rates
The profit and loss accounts of overseas subsidiaries are translated into sterling using average exchange rates, balance sheets are translated at year end rates. The main currencies and exchange rates are:
Year to 31st December 2004 2003 Average EUR 1.47 1.45 USD 1.83 1.64 Year end EUR 1.41 1.42 USD 1.92 1.79
NOTES (Continued)
3. Tax on profit on ordinary activities
2004 2003
#m #m
United Kingdom corporation tax based on a rate of 30% (2002: 30%):
Current tax on income for year 4.6 3.2 Adjustments in respect of prior years (2.1) (0.3) ______________________________________________________________________________ Corporation tax 2.5 2.9
Deferred tax charge in year 2.1 1.0 ______________________________________________________________________________ Total United Kingdom tax 4.6 3.9 ______________________________________________________________________________ Overseas tax Current tax on income for year 2.6 1.2
Deferred tax (credit) / charge in the year (0.1) 0.5 ______________________________________________________________________________ Total overseas tax 2.5 1.7 ______________________________________________________________________________ Tax on profit on ordinary activities 7.1 5.6 ______________________________________________________________________________
FIRST HALF 2005 FINANCIAL CALENDAR
Report and accounts posted 4th April 2005 Record date for final ordinary dividend 29th April 2005 Annual General Meeting 5th May 2005 Final ordinary dividend payable 3 rd June 2005 2005 half year end 30th June 2005
The financial information set out in this announcement does not constitute the Company's statutory accounts for the years ended 31st December 2004 and 2003 but is derived from those accounts. Statutory accounts for 2003 have been delivered to the Registrar of Companies and those for 2004 will be delivered following the Company's Annual General Meeting. The Company's auditor has reported on these accounts; its reports were unqualified and did not contain statements under section 237(2) or (3) of the Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange
END FR GUUQUWUPAGBM
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
435.0 392.4 10.9
38.6 35.9 7.5
er:9154J AGA Foodservice Group PLC 18 March 2005
18th March 2005
FOR IMMEDIATE RELEASE
AGA FOODSERVICE GROUP PLC
2004 PRELIMINARY RESULTS
HIGHLIGHTS
Full year to 31st December 2004 2004 2003
Total Total Increase
#m #m % Turnover 435.0 392.4 10.9 Total operating profit before goodwill amortisation 38.0 33.2 14.5 Total operating profit 30.0 25.2 19.0 Profit before tax and goodwill amortisation 38.6 35.9 7.5 Profit before tax 30.6 27.9 9.7 Basic earnings per share 18.4p 17.2p 7.0 Basic earnings per share before goodwill amortisation 24.7p 23.3p 6.0 Dividend per share 8.3p 7.2p 15.3 Shareholders' funds 283.5 281.9 Net cash 25.1 29.6
2004 Highlights:
* Strong trading performance with operating profits up by 19%, organic growth of
11%. * Another record year for Aga and Rangemaster and a rebound in the US for
Domain. * European foodservice operations strengthening, while the US continues to be
patchy. * Dividend increase of 15% brings the 3-year increase to 66%.
2005 Outlook:
* Steady trading at the start of 2005. The growing impact of new innovative
products and international growth reduces exposure to any particular consumer
spending cycle. Markets across the foodservice activities are improving and
the Infinity Fryer is set to make a major impact. * Balance sheet strength available for acquisition and share buy-back
programmes.
"Our performance in 2004 was pleasing. We have the international market positions, products and distribution to make 2005 an impressive year for the Group. The further significant dividend increase reflects the confidence in our prospects."
William McGrath
Chief Executive
Enquiries:
William McGrath, Chief Executive 0207 404 5959 (today) Shaun Smith, Finance Director 0121 711 6015 (thereafter) Jonathan Glass (Brunswick) 0207 404 5959
Interviews with William McGrath, CEO and Stephen Rennie, COO in video/audio and text will be available from 07:00 on 18 March 2005 on: www.agafoodservice.com and on www.cantos.com.
Aga Foodservice Group plc
2004 Preliminary Statement
CHAIRMAN'S AND CHIEF EXECUTIVE'S STATEMENTS
2004 was a good year for the Aga Foodservice Group. Our trading results were well ahead of 2003 and our long term plan to be a world leader in premium consumer and commercial cookers and fridges was reflected in new product introductions and extensions to our distribution structures. In 2005 we are looking for further organic growth benefiting from the investments made in recent years and from continuing with these investment programmes.
Consumer Operations
Our European consumer operations had an exciting year. Not only did both Aga-Rayburn and Rangemaster achieve further record performances but we increased materially the number of product displays - the key to sales growth. Outside the UK there are now over 450 live Aga displays in place and nearly 1,000 Rangemaster displays - increases of 70% and 130% respectively in the year. With the availability of our fridge ranges and the increasing importance of our cookware offering, we have an impressive product range capable of supporting stand alone retail outlets outside the UK - either owned by us or our dealer partners. We have achieved a key objective of becoming a business with an international outlook. In helping to achieve this, the Domain and Grange links are significant. In particular, Domain on the US East Coast provides a home furnishings base now clearly interlinked with our upscale appliance offering and has helped shape our retail thinking. Domain itself saw a performance rebound for its core activity with a 6% like-for-like sales increase in the fourth quarter.
Taken overall, our consumer operations moved ahead well, particularly in Europe, with turnover of #241.4 million and operating profits before goodwill amortisation of #23.0 million compared to #204.6 million and #18.1 million respectively in 2003. This represented organic growth rates of 11.3% and 24.1% for turnover and operating profit respectively. Return on sales reached 9.5% and return on capital employed was 36.9%.
Foodservice Operations
2004 was a far more encouraging year for our European foodservice operations after the lacklustre markets of the previous two years started to improve. We saw order intake move ahead steadily in the second half of 2004 in our bakery and commercial markets. In addition, our products took us into new markets and provided a broadened base on which to seek growth in 2005 and the years ahead.
To direct our efforts we have created Aga Bakery to consolidate our bakery interests and be the primary driver into the supermarket and artisan bakery markets where we are by some distance the world leader. In its principal markets of Europe and North America, Aga Bakery has a strong management structure to take its impressive product range to new and established customers.
For our cooker and refrigeration operations, 2004 was encouraging, particularly in Europe. We are making good progress with our Bongard and Pavailler businesses, and using technology and branding that have worked well in France to roll out on an international basis to America and the UK. In North America the market conditions prevented us from passing on cost increases and together with the investment in taking European products to the US, we saw a reduction in margins. We intend to make the Infinity Fryer a cornerstone of the foodservice operations during 2005.
Employees
The experienced and enterprising staff and management in our operations provide a backbone to the Group and this is reflected in the results for the year. We now have a very international mix among our 5,500 employees, with 1,000 employees based in the US and 700 in France. We are grateful for their growing influence and contribution to the Group as a whole.
Strategic Progress
Over the past four years, we have focused on creating a major international Group that is a force in premium appliances for the domestic and commercial markets with Aga at its heart. The acquisitions we have made have created a formidable position for us and the research and development programmes continue to provide an array of innovative products to display in our expanded owned and dealer driven retail structures. It has been an exciting journey and the benefits seen in 2004 are only an indication of what is achievable in the longer term. Hence, we will continue to develop along our well-established lines.
In foodservice, we believe we can create a sustainable competitive advantage through a focus on innovative products that not only cook well, but are themselves efficient giving impetus to the environmental, efficiency and health and safety concerns of our customers. Our sustained investment in research and development has given us our strongest ever product portfolio.
Our financial position remains strong. We had net cash at the end of 2004 of #25.1 million. Total shareholder returns over the last four years have been 20% above the sector average. We are raising our total dividend from 7.2 pence to 8.3 pence whilst retaining a net cash position which will be used to finance a continuing acquisition programme and, as opportunities allow, to sustain our share buy-back programme.
Prospects
Strong marketing programmes continue to drive leads and sales in our consumer operations. In foodservice, there are more major accounts looking for the products and ideas that we have to offer. We expect the current year to show further progress backed up by a continuation of the investment programmes we have in place.
2005 is, therefore, a further year to which we look with confidence.
V Cocker W B McGrath Chairman Chief Executive
18th March 2005
OPERATIONAL REVIEW - 2004 PRELIMINARY RESULTS FOR AGA FOODSERVICE GROUP PLC
Consumer Operations (Turnover #241.4 million and operating profits before goodwill amortisation #23.0 million)
2004 was a very good year for our consumer businesses, led by record performances at Aga-Rayburn and Rangemaster and by the success of our retail outlets in the UK and beyond. Turnover reached #241.4 million and operating profits before goodwill amortisation were #23.0 million. Pleasingly the US added to the strength in Europe. Domain operating profits before goodwill rebounded although not yet to 2002 levels and were $1.9 million up from $0.9 million in 2003. Aga Ranges - now part of the US appliance axis including Northland-Marvel, the refrigeration business - whilst not yet profitable, should be so in 2005.
The Group now has a formidable product offering in the upscale appliance sector - markets in which we are well-recognised as a leader, innovator and segment creator. This was highlighted by products launched in 2004. The 3-oven Aga and the electric Aga, now available with 2 or 4 ovens, together accounted for over 25% of sales of our heat storage cookers. The 90cm Rangemaster cookers - with 2 full working ovens, a grill and 5 burners, have created a new market segment. It now accounts for 40% of Rangemaster cooker sales. We have our heartland and origins in the UK but we now have an established presence - with our work to meet national specifications and to have clear local distribution - in Europe and North America. This internationalisation was seen with Aga's conventional cooking range, the Six:Four and the US version of the Rangemaster Elan doing particularly well in the growing US range cooker market.
Aga-Rayburn was, once again, able to move volumes and profits well ahead and with the product and distribution platform in place, we continue to pursue the objective of sales of 15,000 Aga branded cookers in 2006, up from 11,500 in 2004 and 10,000 in 2003.
The greatest progress in 2004 was made by Rangemaster which saw cooker volumes move ahead by 15% to over 60,000 units. The product range is enabling us to take further market share in the UK where we have strong distribution structures covering kitchen specialists alongside electrical wholesalers. Rangemaster which only broke even in 2001, before the focus on higher value added products, is now a major profit contributor. Further, Rangemaster has rapidly established itself as a hub within our consumer operations - it, for example, sources cast iron pan supports from Aga at Coalbrookdale and domestic refrigeration lines from Marvel and Williams. Looking ahead, Rangemaster is ready to supply La Cornue, acquired in August 2004, with a completely new range of products taking the business into a new price point segment with considerable international potential.
An exciting growth area exists in cookware which has become an important contributor for Aga-Rayburn. New ranges are now being introduced under the Rangemaster, Falcon and La Cornue brands.
Fired Earth saw revenues rise by 8% with the growth coming from the larger inspirational stores encompassing Aga shops. Grange's production rationalisation programme was successfully completed - profits rose and a number of product ranges introduced including two ranges for Fired Earth, which will now be Grange's primary UK dealer.
In the US, the Group saw a noteworthy improvement in overall returns driven by better trading for Domain and by a full year contribution from Northland-Marvel which started to show its full potential for the Group. Like-for-like sales for Domain were ahead by 6% in the final quarter, leaving like-for-like sales flat for the year but 15% ahead taking into account the retail space added during 2003. Increased sourcing from the Far East is now helping to improve margins. Further, Domain is proving successful at adding Group product to its overall offering and was the second largest US Aga distributor in 2004. Marvel had a good year and the combination of product introductions and increased efficiency leave it well placed moving into 2005.
Foodservice Operations (Turnover #193.6 million and operating profits before goodwill amortisation #13.7 million)
Our European foodservice operations benefited in 2004 as some major accounts moved through their capital spending cycles. We have continued to develop our structures, operational frameworks and product ranges during the market's low points which leaves our business particularly well positioned to take advantage of the upturn.
A major initiative for us has been the creation at the start of 2005 of Aga Bakery which positions our international bakery businesses in a more integrated structure with a more defined management framework. Management teams are in place to direct our European and North American businesses led by Yves Gerber and Iain Whyte respectively and managed from Strasbourg and New Jersey. These steps facilitate marketing a broad product offering to key accounts and helps drive the implementation of an international manufacturing strategy. Given our UK, North American and Far East manufacturing capabilities, following the acquisition of the minority interest in our China factory, there is scope to look more internationally at our procurement and manufacturing processes. Aga Bakery incorporates Pavailler, our second major move into the French bakery market, which we made in the autumn of 2004. Together with Bongard, we are clearly the primary provider of ovens and fridges to the artisan market and have the leading Europe-wide position in our markets.
Our particular forte is in deck ovens which are used to make quality artisan breads. Our range includes the Cervap oven from Bongard, which cooks using radiated heat like an Aga, cyclothermic ovens from Pavailler and modular formats from Mono in Wales. These ranges, backed by the widest overall range of ovens, mixers and related refrigeration equipment, provide a major competitive advantage, and the technology is also being rolled out to North America. We have an extremely strong niche position in this sector. In North America, Belshaw, the doughnut equipment manufacturer, had another strong year after a slow start, with sales into supermarkets in Mexico for the first time achieving appreciable levels. Our objective is to build on our European leading position by attracting new customers in the US where the interest in artisan breads and the cafe bakery concept is growing rapidly.
In 2004 our continental bakery operations performed well and we saw order levels steadily improve through the second half of the year. Highlights included winning a Europe-wide contract for Tesco and new product lines for Sainsbury's, including photocakes. Overall, UK markets were weak.
In the traditional foodservice markets, again after a slow start there were distinct signs that the markets were improving. In the UK, Williams, in particular, has seen good growth from major contracts such as for the new Wembley Stadium and for pub markets. In commercial cooking, Falcon's markets improved, although slowly. The major initiative for Falcon is the Infinity Fryer. The oil and energy savings; the output improvements; the in-built filtration and the improved food quality it offers are being recognised. The leading US test house saw it as a new major force - as do the large international Quick Service Restaurant chains that are running extended trials having found, in their test centres, that it meets their operating requirements and brings substantial operating benefits. We expect 2005 to bring significant orders from across our spectrum of foodservice customers.
The weakest feature of 2004 was our US refrigeration business, Victory, which struggled to pass on cost increases. We have taken decisive action to address this. At the start of 2005 we now have a strengthened position with buying groups, an enhanced sales team in place and price increases being achieved; the outlook is better. Development, approval and sales team costs of taking European products to the US have also been absorbed during the course of 2004.
Taken overall foodservice saw turnover reach #193.6 million up from #185.7 million and operating profits before goodwill amortisation were #13.7 million compared to #14.3 million.
Financials
In 2004 turnover once more increased significantly as we achieved organic growth in our major operations. Turnover of #435.0 million was 10.9% higher than in 2003. Total operating profits before goodwill amortisation were also substantially ahead at #38.0 million, 14.5% higher than in the prior year and after goodwill, at #30.0 million, up 19.0%. Profit before tax and after goodwill amortisation of #8.0 million - appearing for the last time before International Accounting Standards apply - were #30.6 million, 9.7% up on the prior year.
The tax charge of #7.1 million was 23.2% of pre tax profits, 18.4% of profits before tax and goodwill amortisation. The charge is expected to continue to track at this rate in 2005 reflecting the evolving international structure of the Group and to remain below the UK standard rate.
Earnings per share before goodwill amortisation were 24.7 pence (2003: 23.3 pence) and were 18.4 pence (2003: 17.2 pence) after goodwill amortisation. Taking into account 4.0 million shares bought back during the year, the average number of shares in issue was 127.0 million and there are now 126.0 million shares in issue.
With earnings continuing to move ahead, the Board recommends a dividend of 8.3 pence per share, a 15.3% increase. Over the four years since the Pipes business was sold, the dividend has been systematically increased and cumulatively is up 66%.
Cash flow performance in the year was good. Trading capital increased less rapidly relative to turnover and operating cash flow was in line with trading profits. We continued to invest in the businesses spending #14.6 million on capital equipment, compared with #18.0 million in 2003. Depreciation was #7.9 million. We also capitalised #2.8 million in development expenditure. Amortisation of capitalised development expenditure in the year was #0.8 million.
We also continued with our carefully paced acquisition programme, while largely focusing on the performance of existing businesses and raising returns from investments already made. We acquired La Cornue, the French premium cooker business and Pavailler, the French bakery equipment manufacturer for an aggregate of #4.6 million in 2004. Over the last four years we have spent #166 million on acquisitions. All the acquisitions are adding to our position and bring opportunities to other activities in the Group. As indicated in prior years, the Group keeps the overall financial structure of the Group under review. We expect to continue with our balanced approach of acquisitions and share buy-backs as market opportunities allow.
2005 will see us move to IAS. There are some differences between the reported figures under UK GAAP and the new IAS standards. From the work to date the most significant change relates to the Pension Scheme, which is large, in relation to the company but is among the better funded of UK company schemes. The latest actuarial work shows that the surplus in the scheme under SSAP 24 had increased to #53.9 million at 31st December 2003. The latest values for FRS 17 purposes, which will be replaced by IAS 19, suggests a small Group deficit of #4.6 million after deferred tax. In 2005, the IAS 19 figures indicate there will be a negligible change to the profit and loss account. Following the move to IAS, net assets will be reduced by the Aga Scheme IAS 19 deficit and the SSAP 24 pension prepayment already in the balance sheet. Under IFRS 3 goodwill amortisation of #8.0 million would be added back to profits and to the goodwill figure in the balance sheet. IAS 38 would require around #1 million of capitalised software costs to be transferred from fixed assets to intangible assets. The dividend creditor of #7.3 million would be reversed out under IAS 10. Our initial assessment estimates that the deferred tax liability would decrease by around #8 million. The estimated IFRS adjustments remain subject to audit.
We continue to have a strong financial position and have considerable flexibility. We remain cautious in our approach recognising the long term development opportunities for the businesses, but also the risks of moving too rapidly.
Outlook
Within the consumer operations the major growth drivers for the Group continue to perform steadily. The strategy has long been to achieve a balanced portfolio whereby the growth rates achieved outside the UK average up and match the achievements in the UK in particular. Against this background the impetus of Domain in its core business and in its connections with Aga is important.
In foodservice the turnaround in refrigeration internationally is encouraging and the momentum now coming in cooking, driven by the fryer, is encouraging. Against this background we see 2005 as a year when the benefits of our strategic moves will become clear.
GROUP PROFIT AND LOSS ACCOUNT
2004 2003
#m #m Turnover Continuing operations 427.9 Acquisitions 7.1 _______________________________________________________________________________ Total continuing operations 435.0 390.3 Discontinued operations - 2.1 _______________________________________________________________________________ Total turnover 435.0 392.4 _______________________________________________________________________________
Operating profit _______________________________________________________________________________ Continuing operating profit before goodwill amortisation 37.5 33.7 Goodwill amortisation (8.0) (8.0) _______________________________________________________________________________
29.5 25.7 _______________________________________________________________________________ Continuing operations 29.5 25.7 Acquisitions - - _______________________________________________________________________________ Total continuing operations 29.5 25.7 Discontinued operations - (0.5) _______________________________________________________________________________ Group operating profit 29.5 25.2 Share of profit from associate 0.5 - _______________________________________________________________________________ Total operating profit 30.0 25.2 Disposal of businesses - 1.8 _______________________________________________________________________________ Profit before interest and tax 30.0 27.0 Net interest receivable 0.6 0.9 _______________________________________________________________________________ Profit on ordinary activities before tax 30.6 27.9 Tax on profit on ordinary activities (7.1) (5.6) _______________________________________________________________________________ Profit on ordinary activities after tax 23.5 22.3 Equity minority interests (0.1) (0.1) _______________________________________________________________________________ Profit attributable to shareholders 23.4 22.2 Dividends (10.4) (9.3) _______________________________________________________________________________ Profit retained 13.0 12.9 _______________________________________________________________________________
Earnings per share p p
Basic 18.4 17.2
Diluted 18.3 17.1
Basic - before goodwill amortisation 24.7 23.3 _______________________________________________________________________________
GROUP BALANCE SHEET As at 31st December 2004 2003
#m #m Fixed assets Intangible assets 136.8 140.7 Tangible assets 78.6 73.2 Investments 6.5 5.8 _______________________________________________________________________________ Total fixed assets 221.9 219.7 _______________________________________________________________________________ Current assets Stocks 70.2 61.3 Debtors 107.2 102.7 Cash at bank and in hand 49.8 52.0 _______________________________________________________________________________ Total current assets 227.2 216.0 _______________________________________________________________________________ Creditors - amounts falling due within one year Operating creditors (102.6) (88.9) Borrowings (23.1) (2.2) Tax and dividends payable (9.4) (9.5) _______________________________________________________________________________ Total amounts falling due within one year (135.1) (100.6) _______________________________________________________________________________ Net current assets 92.1 115.4 _______________________________________________________________________________ Total assets less current liabilities 314.0 335.1
Creditors - amounts falling due after more than one year Creditors (0.1) (2.2) Borrowings (1.6) (20.2) Provisions for liabilities and charges (28.6) (30.4) _______________________________________________________________________________ Total net assets employed 283.7 282.3 _______________________________________________________________________________ Capital and reserves Called up share capital 31.5 32.4 Share premium account 60.9 59.9 Revaluation reserve 2.1 2.4 Capital redemption reserve 36.0 35.0 Profit and loss account 153.0 152.2 _______________________________________________________________________________ Total shareholders' funds 283.5 281.9 Equity minority interests 0.2 0.4 _______________________________________________________________________________ Total funds 283.7 282.3 _______________________________________________________________________________
GROUP CASH FLOW STATEMENT
Year to 31st December 2004 2003
#m #m
Net cash inflow from operating activities 32.9 23.9 Net returns on investments and servicing of finance 0.6 0.9 Tax paid (5.5) (5.2) Net capital expenditure and product development (9.6) (20.5) Cash outflow for acquisitions (4.6) (16.1) Equity dividends paid (9.6) (8.1) _______________________________________________________________________________ Net cash inflow / (outflow) before financing 4.2 (25.1)
Financing - issue of ordinary share capital 1.1 0.1 - loan to associated undertaking (0.3) - - purchase of own shares (9.4) - - increase / (decrease) in debt 2.4 (1.7) _______________________________________________________________________________ Net financing outflow (6.2) (1.6) _______________________________________________________________________________ Decrease in cash in the year (2.0) (26.7) _______________________________________________________________________________ Reconciliation of net cash flow to movement in net cash Decrease in cash in the year (2.0) (26.7) (Increase) / decrease in debt (2.4) 1.7 _______________________________________________________________________________ Change in net cash resulting from cash flows (4.4) (25.0) Borrowings acquired with acquisitions - (0.4) Exchange adjustment (0.1) (0.5) _______________________________________________________________________________ Decrease in net cash (4.5) (25.9) Opening net cash 29.6 55.5 _______________________________________________________________________________ Closing net cash 25.1 29.6 _______________________________________________________________________________
Reconciliation of operating profit to net cash inflow from operating activities
#m #m
Operating profit 29.5 25.2 Intangibles amortisation 8.8 8.3 Depreciation 7.9 8.1 Profit on disposal of fixed assets (1.3) (1.5) (Increase) / decrease in stocks (8.0) (7.5) (Increase) / decrease in debtors (10.5) 1.7 Increase / (decrease) in creditors 9.8 (4.5) Increase / (decrease) in provisions (3.3) (5.9) _______________________________________________________________________________ Net cash inflow from operating activities 32.9 23.9 _______________________________________________________________________________
SUPPLEMENTARY STATEMENTS
Year to 31st December 2004 2003
#m #m Statement of total recognised gains and losses Profit attributable to shareholders 23.4 22.2 Exchange adjustments on net investments (3.4) (3.2) _______________________________________________________________________________ Total recognised gains and losses since last annual report 20.0 19.0 _______________________________________________________________________________
2004 2003
#m #m Reconciliation of movements in shareholders' funds Total recognised gains and losses relating to the year 20.0 19.0 Dividends (10.4) (9.3) New share capital subscribed - share premium 1.0 -
- share capital 0.1 0.1 Purchase own shares - ordinary shares (1.0) -
- profit and loss
account (9.4) -
- capital redemption
reserve 1.0 - Future share scheme issues 0.3 0.4 _______________________________________________________________________________ Net increase in shareholders' funds 1.6 10.2 Shareholders' funds at 1st January 281.9 271.7 _______________________________________________________________________________ Shareholders' funds at 31st December 283.5 281.9 _______________________________________________________________________________
SEGMENTAL ANALYSIS
2004 2003 By business Net group Operating operating Operating Net operating
Turnover profit assets Turnover profit assets
#m #m #m #m #m #m UK & European Consumer 176.0 21.0 54.5 154.2 17.5 50.7 US Consumer 65.4 2.0 7.8 50.4 0.6 9.3 UK & European Foodservice 152.2 11.1 76.8 143.3 8.9 66.9 US Foodservice 41.4 2.6 8.9 42.4 5.4 8.2 _____________________________________________________________________________________ Total continuing operations 435.0 36.7 148.0 390.3 32.4 135.1 Other items - 0.8 - - 1.3 - Goodwill - (8.0) 131.1 - (8.0) 137.2 Discontinued operations - - (9.7) 2.1 (0.5) (10.6) _____________________________________________________________________________________ Total Group 435.0 29.5 269.4 392.4 25.2 261.7 _____________________________________________________________________________________
Net operating assets exclude net debt, dividends payable and taxation balances. Goodwill amortisation on continuing operations relates to UK & European Consumer #1.6m (2003: #1.6m), US Consumer #0.8m (2003: #0.6m), UK & European Foodservice #4.4m (2003: #4.4m) and US Foodservice #1.2m (2003: #1.4m). UK & European Consumer includes acquisition turnover of #2.1m and UK & European Foodservice includes #5.0m. Acquisition operating profits were #nil in respect of both segments.
2004 2003 By geographical Net origin Operating Operating Operating Net operating
Turnover profit assets Turnover profit assets
#m #m #m #m #m #m United Kingdom 259.8 28.2 112.6 241.7 24.9 105.2 North America 106.8 4.6 15.3 92.8 5.5 14.7 Europe 63.3 3.1 17.0 51.9 2.5 13.1 Rest of World 5.1 1.6 3.1 3.9 0.8 2.1 _____________________________________________________________________________________ Total continuing operations 435.0 37.5 148.0 390.3 33.7 135.1 Goodwill - (8.0) 131.1 - (8.0) 137.2 Discontinued operations - - (9.7) 2.1 (0.5) (10.6) _____________________________________________________________________________________ Total Group 435.0 29.5 269.4 392.4 25.2 261.7 _____________________________________________________________________________________
Goodwill amortisation on continuing operations relates to United Kingdom #4.6m (2003: #4.6m), North America #2.0m (2003: #2.0m) and Europe #1.4m (2003: #1.4m). Other items relate entirely to North America (2003: United Kingdom).
Turnover by geographical destination 2004 2003
#m % #m % United Kingdom 247.6 56.9 228.9 58.6 North America 107.9 24.8 92.0 23.6 Europe 63.6 14.6 61.6 15.8 Rest of World 15.9 3.7 7.8 2.0 __________________________________________________________________________ Total continuing operations 435.0 100.0 390.3 100.0 __________________________________________________________________________
EARNINGS PER SHARE
Year to 31st December 2004 2003
#m #m Earnings Profit on ordinary activities after tax 23.5 22.3 Minority interests (0.1) (0.1) Goodwill amortisation 8.0 8.0 ______________________________________________________________________________ Earnings before goodwill amortisation 31.4 30.2 ______________________________________________________________________________ Profit on ordinary activities after tax 23.5 22.3 Minority interests (0.1) (0.1) ______________________________________________________________________________ Earnings - for basic and diluted EPS 23.4 22.2 ______________________________________________________________________________
Weighted average number of shares in issue million million For basic EPS calculation 127.0 129.4 Dilutive effect of share options 0.6 0.5 ______________________________________________________________________________ For diluted EPS calculation 127.6 129.9 ______________________________________________________________________________ Earnings per share p p
Basic 18.4 17.2 Diluted 18.3 17.1 Basic - before goodwill amortisation 24.7 23.3 ______________________________________________________________________________
NOTES
1. Dividends
The Board has approved the payment of a final dividend amounting to 5.8p per share (2003: 5.0p). An interim dividend of 2.5p per share (2003: 2.2p) has already been paid, making the total dividend for the year 8.3p per share (2003: 7.2p). The final dividend will be paid on 3rd June 2005 to shareholders registered on 29th April 2005.
2. Exchange rates
The profit and loss accounts of overseas subsidiaries are translated into sterling using average exchange rates, balance sheets are translated at year end rates. The main currencies and exchange rates are:
Year to 31st December 2004 2003 Average EUR 1.47 1.45 USD 1.83 1.64 Year end EUR 1.41 1.42 USD 1.92 1.79
NOTES (Continued)
3. Tax on profit on ordinary activities
2004 2003
#m #m
United Kingdom corporation tax based on a rate of 30% (2002: 30%):
Current tax on income for year 4.6 3.2 Adjustments in respect of prior years (2.1) (0.3) ______________________________________________________________________________ Corporation tax 2.5 2.9
Deferred tax charge in year 2.1 1.0 ______________________________________________________________________________ Total United Kingdom tax 4.6 3.9 ______________________________________________________________________________ Overseas tax Current tax on income for year 2.6 1.2
Deferred tax (credit) / charge in the year (0.1) 0.5 ______________________________________________________________________________ Total overseas tax 2.5 1.7 ______________________________________________________________________________ Tax on profit on ordinary activities 7.1 5.6 ______________________________________________________________________________
FIRST HALF 2005 FINANCIAL CALENDAR
Report and accounts posted 4th April 2005 Record date for final ordinary dividend 29th April 2005 Annual General Meeting 5th May 2005 Final ordinary dividend payable 3 rd June 2005 2005 half year end 30th June 2005
The financial information set out in this announcement does not constitute the Company's statutory accounts for the years ended 31st December 2004 and 2003 but is derived from those accounts. Statutory accounts for 2003 have been delivered to the Registrar of Companies and those for 2004 will be delivered following the Company's Annual General Meeting. The Company's auditor has reported on these accounts; its reports were unqualified and did not contain statements under section 237(2) or (3) of the Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange
END FR GUUQUWUPAGBM
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
© 2005 AFX News
