|
|
For Release at
Preliminary Results for the year ended
Encouraging prospects for continued growth
|
|
Year to 31st March
|
%
|
||
|
|
2006 |
2005 |
change |
|
|
Revenue Sales excluding precious metals Profit before tax Total earnings per share |
£4,756m £1,341m £213.8m 70.8p |
£4,626m £1,188m £167.4m 53.2p |
+3 +13 +28 +33 |
|
Before impairment and
restructuring costs:
|
|
|||
|
Profit before tax Earnings per share Dividend per share |
£219.8m 72.7p 30.1p |
£204.1m 67.0p 27.7p |
+8 +9 +9 |
|
and disposal costs, earnings
per share up 9% to 72.7 pence
|
|
|
|
|||
|
£m |
Year to 31st March 2006 2005 |
% change |
2006 at
2005 exchange
rates |
% change |
|
|
Catalysts Precious Metal Products Pharmaceutical Materials Ceramics Corporate |
134.2 62.2 33.8 21.3 (16.8) |
122.5 52.0 39.8 18.8 (16.5) |
+10 +20 -15 +13 |
132.1 61.2 33.5 20.8 (16.9) |
+8 +18 -16 +11 |
|
Operating Profit |
234.7 |
216.6 |
+8 |
230.7 |
+7 |
|
|
|
|
|
|
|
·
Operating profit, before impairment and restructuring costs,
up 8% to £234.7 million
·
Catalysts up 10% with good growth in diesel products in
·
Precious Metal Products up 20% benefiting from favourable
trading conditions and growth in manufacturing businesses
·
Pharmaceutical Materials down 15% following expiry of
carboplatin patent
·
Ceramics up 13% with strong cash generation
Business Prospects
·
Heavy duty diesel (HDD) catalysts poised for significant
growth with Johnson Matthey to achieve leading market position
·
Continuing good growth in light duty diesel (LDD) products
expected in
·
Autocatalyst demand in
·
High oil prices to support growth of sales in process
catalysts
·
Outlook for platinum group metals demand remains strong
·
Pharmaceutical Materials well positioned for recovery in
2006/07
·
Ceramics’ encouraging performance should continue with good
cash generation
·
Investment of £200 million over two years on bolt-on
acquisitions and / or share buy-backs
Commenting on the results, Neil
Carson, Chief Executive of Johnson Matthey said:
“Johnson Matthey performed well last
year and prospects for future growth are very encouraging. Our investment in new capacity to meet
customer demand will continue and we remain optimistic about prospects for
future performance. We expect growth in
earnings to be stronger in the second half of the current year than in the
first driven by increasing demand for our technology leading diesel catalyst
products. ”
Enquiries:
|
Ian Godwin |
Director, IR and Corporate
Communications |
020 7269 8410 |
|
John Sheldrick |
Group Finance Director |
020 7269 8438 |
|
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 good results in 2005/06. Total
earnings per share were up 33%.
Underlying earnings per share (before impairment, restructuring and
disposal costs) increased by 9%.
Growth in the
second half of the year was stronger than the first. Operating profit for the year, before
impairment and restructuring costs, rose by 8%, with Catalysts, Precious Metal
Products and Ceramics all achieving double digit growth. Pharmaceutical Materials was down but sales
and profits improved in the second half of the year.
This is the first
time Johnson Matthey has reported its full year results under International
Financial Reporting Standards (IFRS).
The impact of the transition from UK GAAP to IFRS was set out in our
Report and Accounts for 2005, and is shown on pages 25 to 29 of this report.
Revenue rose by 3% to £4,756
million. Catalysts Division’s sales were
well ahead of 2004/05 but sales in Precious Metal Products Division were down,
despite higher metal prices, reflecting the withdrawal from gold refining in
the UK in 2004/05 and lower trading activity in the first half of the
year. Sales excluding the value of
precious metals rose by 13% reflecting good underlying growth in Catalysts
Division.
Operating profit, before impairment
and restructuring costs, increased by 8% to £234.7 million. Exchange translation was favourable,
increasing profit by £4.0 million compared with last year. Interest rose by £1.7 million to £14.7
million reflecting the impact of higher short term interest rates in the
An impairment charge of £6.0 million
has been included in the results for 2005/06 for the write down of process
assets no longer required in the platinum group metal refining business
following the successful restructuring of that business. Including the impairment charge, profit
before tax was £213.8 million which was 28% up on the equivalent figure for 2004/05
which included a charge of £36.7 million for restructuring costs.
Underlying earnings per share rose
by 9% to 72.7 pence, benefiting from the accretive effect of buying back
shares. Including impairment,
restructuring and disposal costs total earnings per share rose by 33% to 70.8
pence.
The board is recommending to
shareholders a final dividend of 21.0 pence, making a total dividend for the
year of 30.1 pence, an increase of 9%, which is in line with the growth in
underlying earnings per share.
Catalysts Division’s sales rose by 28%
to £1,477 million, partly as a result of higher prices for platinum, palladium
and rhodium. Excluding the value of
precious metals, sales rose by 17% to £786 million. This increase was driven by good volume
growth and the impact of higher material costs, such as the cost of substrates
for catalysed soot filters, which is a pass through for Johnson Matthey.
The
division’s operating profit increased by 10% (before acquisition integration
costs included in the results for 2004/05) to £134.2 million, with most of the
growth coming in the second half of the year.
Environmental Catalysts and Technologies (ECT) was well ahead of last year with good growth in
In Johnson
Matthey’s financial year to 31st March 2006 global light duty
vehicle sales increased by 3.6% to 65.6 million. Car production rose by 3.3% with a small
overall reduction in inventories. Most of
the growth in production came in
Estimated Light Vehicle Sales and
Production 2005/06
|
|
|
Year to 31st March |
|
||
|
|
|
2006 millions |
2005 millions |
Change % |
|
|
Global |
Sales Production Sales Production Sales Production Sales Production |
|
19.7 15.9 18.3 19.3 15.2 23.0 65.6 66.3 |
19.5 15.6 18.0 18.9 13.7 20.7 63.3 64.2 |
+1.0% +1.9% +1.7% +2.1% +10.9% +11.1% +3.6% +3.3% |
|
Source: Global Insight |
|
|
|
|
|
We are
also seeing increasing demand from many of the leading car companies in
The market
for heavy duty diesel (HDD) catalysts for new vehicles is also beginning to
grow. New emission control standards for
HDD vehicles came into force in
Our business in
In early September we announced plans
to build a new autocatalyst factory in
Process Catalysts
and Technologies (PCT) also achieved good growth in sales and
profits in 2005/06. The Ammonia,
Methanol, Oil and Gas (AMOG) business was well ahead of 2004/05 with strong
demand for catalysts and purification materials for industries where hydrogen
or synthesis gas are key intermediates. Sales of edible oil catalysts were also ahead
of last year but catalyst sales to the polymer market declined.
On
The acquisition of DPT will provide
Johnson Matthey with additional opportunities to grow its sales of catalysts
and technologies into emerging markets.
The high oil price and moves towards low carbon energy are transforming
the market for catalysts and purification materials used in oil, gas and
petrochemicals. We have significantly
increased our R&D expenditure on the development of catalysts for the
production of clean synthetic liquid products from a wide range of hydrocarbon feedstocks which will be a substantial growth market for
PCT in the medium term.
The division’s Research Chemicals
business achieved good growth, successfully integrating the operations of
Lancaster Synthesis which was acquired last year. A new combined catalogue was issued during
the year which should provide a further boost to growth.
The same trends that are increasing
demand for new catalysts in PCT have also increased interest in Fuel Cells technologies and 2005/06
witnessed significant developments in the fuel cell market, particularly in
In 2005/06 the annual cost of our
Fuel Cells business on an IFRS basis fell by £0.5 million to £8.1
million. Under IFRS accounting rules
£1.6 million of the annual R&D cost was capitalised in 2005/06 (£1.5
million in 2004/05) which lowered the reported cost compared with UK GAAP. The business benefited from an expanded range
of customers and initial sales of prototype products to the direct methanol
fuel cells’ market.
Precious Metal Products Division’s sales fell by 7% to £2,962 million.
The fall reflected the withdrawal from gold refining in the
Colour Technologies, which was
transferred into the division following the restructuring of the former Colours
& Coatings Division, achieved good growth in profits benefiting from cost
reductions undertaken last year and good sales of automotive glass enamels
particularly in the North American and Asian markets. Similarly, the division’s gold and silver
businesses benefited from the closure of its
Pgm
Refining was transferred from Catalysts into Precious Metal Products Division
at the beginning of the financial year.
In 2005 we announced a plan to restructure the business in the
Profits from the division’s
marketing and trading operations were better than in 2004/05 particularly in
the second half of the year. Higher
average pgm prices and increased price volatility, especially in the rhodium
market, provided more favourable trading conditions. The price of platinum
reached its peak for 2005/06 of $1,084/oz in March 2006, an all time high in
dollar terms. The rise in the platinum price gathered pace as the year
progressed with speculative buying, particularly in
Total consumption of platinum
increased once more in 2005/06, a pattern unbroken since 1992. Demand for platinum in autocatalysts
increased by 9% with much of the growth generated in
The palladium price also reached a
peak for 2005/06 in March, touching $345/oz.
Supply and demand fundamentals became increasingly irrelevant as hedge
funds and institutional investors extended already substantial long positions
in the market. The average price for the
year was $228/oz, a modest increase of 4% on 2004/05. Physical demand for palladium increased in
2005/06, a third successive year of rising consumption after a slump in
2002/03. Autocatalyst demand was broadly
flat whereas demand from the burgeoning market for palladium jewellery in
The price of rhodium rose sharply in
2005/06, reaching a peak of $4,350/oz in March. The average price of $2,544/oz
was more than double the average for 2004/05.
Strong demand from the automotive and glass industries coupled with
speculative interest left little metal to be offered in the spot market. This additional pressure on a market which
was already tight and illiquid inevitably caused prices to rise dramatically.
Pharmaceutical Materials Division’s sales rose by 2% to £134 million with a recovery in the second half of
the year. Operating profit fell by 15%
to £33.8 million as a result of reduced income from carboplatin, which went off
patent in October 2004, and lower revenues in the division’s contract research
business.
The
division’s European businesses performed well in the year. The fall in profits all occurred in the
Despite
carboplatin going off patent the outlook for platinum anticancer drugs remains
encouraging. The market continues to
grow and Johnson Matthey is the leading supplier of platinum containing active
pharmaceutical ingredients (APIs) to the
Macfarlan Smith, based in
Ceramics is shown as a stand alone division this year following
the restructuring of our Colours & Coatings Division. That restructuring included the sale of our
Pigments & Dispersions business, transfer of the Colour Technologies
business to Precious Metal Products Division and closure or consolidation of a
number of smaller manufacturing units.
The net impact has been to
significantly reduce the cost base which has improved operating profit and
margins. Ceramics Division also
successfully grew its sales in 2005/06 by 10% to £182 million. Operating profit increased by 13% to £21.3
million.
The division, headquartered in
Sales were strong in
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
The group’s net interest charge rose
by £1.7 million to £14.7 million.
Average interest rates for floating rate US dollars increased by nearly
2% from the very favourable levels experienced in 2004/05, which more than
offset the benefit of lower average borrowings.
Taxation
The group’s tax charge rose by £16.0
million to £62.5 million. The increase
largely reflected the tax relief on restructuring costs included in last year’s
results. On an underlying basis the
average tax rate was unchanged at 29.3%.
The group continues to benefit from tax credits on R&D
expenditure. We reached agreement with HM
Revenue & Customs in the
Cash Flow
Johnson Matthey’s net cash flow from
operating activities rose by 16% to £212.3 million. Under the new IFRS rules net cash flow from
operating activities includes taxation which benefited from the settlement in
the
Capital expenditure for the year was
£124.0 million which was 1.8 times depreciation. Most of the investment was focused on
Catalysts Division, with the other divisions spending at levels close to
depreciation.
Environmental Catalysts and
Technologies spent £65 million in the year with major investments on new
capacity to manufacture CSFs and HDD catalysts.
We have built a new factory at
Despite the significant investment
in capital expenditure the group generated a positive free cash flow of £23.2
million before acquisitions and share purchases.
We completed our previously
announced programme of share buy-backs in the year acquiring additional shares
for the Johnson Matthey Employee Share Ownership Trust (ESOT). The net cash outflow on share purchases
amounted to £25.9 million. In February
2006 we acquired Davy Process Technology Limited for a net cost, including debt
acquired, of £24.6 million. Including
the effect of exchange translation on foreign currency borrowings the group’s
net debt rose by £42.4 million to £412.0 million.
The surplus on the
group’s
Worldwide, including provisions for
the group’s post-retirement healthcare schemes, the group had a net surplus of
£18.8 million on employee benefit obligations compared with a net deficit of
£3.0 million at
Capital Structure
In 2005/06 we invested significantly
in future growth. Capital expenditure
amounted to 1.8 times depreciation and R&D increased by 9%. In addition we acquired DPT and bought back
1.9 million shares. Net debt increased
by £42.4 million to £412.0 million but equity also increased by £114.6 million
to £1,044.5 million, reflecting good earnings growth and an increased surplus
in the group’s
Our policy is to maintain a strong
balance sheet and use the cash generated to invest in organic growth and
bolt-on acquisitions. In the current
financial year we expect to continue to invest at a high level to enable us to
take full advantage of the current and future market opportunities arising in our
businesses. Capital expenditure is
planned to be 1.6 times depreciation and we expect working capital to increase,
particularly at the end of the financial year, when the
Despite this continued investment we
have capacity in the balance sheet for increased borrowing. We therefore plan to raise the group’s
gearing to 50% over the next two years by adding bolt-on acquisitions and
buying back further shares. In aggregate
we expect to spend at least £200 million on these initiatives both of which
should be earnings accretive. We also
plan to continue to increase dividends in line with earnings growth.
Outlook
The
outlook for the next few years continues to be very encouraging. We expect the group to achieve strong top
line growth from the introduction of new products and generate good growth in
earnings.
New
legislation on HDD vehicle emissions in
The
markets for PCT’s catalysts have also improved in the last year as a result of
high energy prices and increased environmental concerns. The acquisition of Davy Process Technology
has enhanced Johnson Matthey’s technological position in this market and medium
term growth prospects are very good.
In
2006/07 Precious Metal Products Division should continue to benefit from the
favourable conditions in the platinum group metal markets. Pharmaceutical Materials’ growth will depend
on the timing of customers’ new product launches. Ceramics is expected to trade at similar
levels to 2005/06 and be strongly cash generative. The US dollar has weakened again in the
current financial year which will adversely affect exchange translation if it
remains at current levels. Overall, we
expect growth in earnings to be stronger in the second half of 2006/07 than the
first driven by increasing demand for diesel catalyst products.
We will
continue to increase our investment in R&D to maintain Johnson Matthey’s
technology leadership positions. We
believe that many of the existing and emerging markets for catalysts will show
significant growth over the next decade and Johnson Matthey is well placed to
benefit from these new market opportunities.
|
Consolidated
Income Statement |
|
|
|
|
|
||||||||
|
for the year ended 31st March 2006 |
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
2006 |
|
2005 |
||||||
|
|
|
|
Notes |
|
£ million |
|
£ million |
||||||
|
|
|
|
|
|
|
|
|
||||||
|
Revenue |
2 |
|
4,755.9 |
|
4,626.2 |
||||||||
|
Cost of materials sold |
|
|
(3,946.0) |
|
(3,873.8) |
||||||||
|
Net revenues |
|
|
809.9 |
|
752.4 |
||||||||
|
Other cost of sales |
|
|
(397.7) |
|
(372.6) |
||||||||
|
Gross profit |
|
|
412.2 |
|
379.8 |
||||||||
|
Distribution costs |
|
|
(85.9) |
|
(81.5) |
||||||||
|
Administrative expenses |
|
|
(91.6) |
|
(81.7) |
||||||||
|
Impairment and restructuring costs |
4 |
|
(6.0) |
|
(36.7) |
||||||||
|
Operating profit |
2,3 |
|
228.7 |
|
179.9 |
||||||||
|
Interest payable |
|
|
(31.7) |
|
(32.2) |
||||||||
|
Interest receivable |
|
|
17.0 |
|
19.2 |
||||||||
|
Share of (loss) / profit of associates |
|
|
(0.2) |
|
0.5 |
||||||||
|
Profit before tax |
|
|
213.8 |
|
167.4 |
||||||||
|
Income tax expense |
5 |
|
(62.5) |
|
(46.5) |
||||||||
|
Profit for the year from continuing operations |
|
|
151.3 |
|
120.9 |
||||||||
|
Loss for the year from discontinued operations |
|
|
- |
|
(6.4) |
||||||||
|
Profit for the year |
|
|
151.3 |
|
114.5 |
||||||||
|
|
|
|
|
|
|
|
|
||||||
|
Attributable to: |
|
|
|
|
|
||||||||
|
Equity holders of the parent company |
|
|
152.1 |
|
115.5 |
||||||||
|
Minority interests |
|
|
(0.8) |
|
(1.0) |
||||||||
|
|
|
|
|
|
151.3 |
|
114.5 |
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
pence |
|
pence |
||||||
|
Earnings per ordinary share attributable to the
equity holders of the parent company |
|
|
|
|
|
||||||||
|
|
Continuing operations |
|
|
|
|
|
|||||||
|
|
|
Basic |
6 |
|
70.8 |
|
56.1 |
||||||
|
|
|
Diluted |
6 |
|
70.5 |
|
56.0 |
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
Total |
|
|
|
|
|
|||||||
|
|
|
Basic |
6 |
|
70.8 |
|
53.2 |
||||||
|
|
|
Diluted |
6 |
|
70.5 |
|
53.1 |
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||||
|
as at 31st March 2006 |
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
2006 |
|
2005 |
|
||||||
|
|
|
Notes |
|
£ million |
|
£ million |
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
Assets |
|
|
|
|
|
|
|||||||
|
Non-current assets |
|
|
|
|
|
|
|||||||
|
Property, plant and equipment |
|
|
661.1 |
|
593.0 |
|
|||||||
|
Goodwill |
|
|
402.4 |
|
375.1 |
|
|||||||
|
Other intangible assets |
|
|
41.3 |
|
27.4 |
|
|||||||
|
Investments in associates |
|
|
4.3 |
|
4.8 |
|
|||||||
|
Deferred income tax assets |
|
|
4.4 |
|
2.0 |
|
|||||||
|
Available-for-sale investments |
|
|
5.9 |
|
1.9 |
|
|||||||
|
Other receivables |
|
|
0.2 |
|
- |
|
|||||||
|
Post-employment benefits net assets |
|
|
75.0 |
|
45.2 |
|
|||||||
|
Total non-current assets |
|
|
1,194.6 |
|
1,049.4 |
|
|||||||
|
|
|
|
|
|
|
|
|
||||||
|
Current assets |
|
|
|
|
|
|
|||||||
|
Inventories |
|
|
345.8 |
|
307.3 |
|
|||||||
|
Current income tax assets |
|
|
3.6 |
|
2.2 |
|
|||||||
|
Trade and other receivables |
|
|
478.5 |
|
363.4 |
|
|||||||
|
Available-for-sale investments |
|
|
0.1 |
|
0.6 |
|
|||||||
|
Cash and deposits |
9 |
|
133.0 |
|
78.7 |
|
|||||||
|
Other financial assets |
|
|
3.2 |
|
- |
|
|||||||
|
Other current assets |
|
|
7.1 |
|
7.1 |
|
|||||||
|
Total current assets |
|
|
971.3 |
|
759.3 |
|
|||||||
|
Total assets |
|
|
2,165.9 |
|
1,808.7 |
|
|||||||
|
|
|
|
|
|
|
|
|
||||||
|
Liabilities |
|
|
|
|
|
|
|||||||
|
Current liabilities |
|
|
|
|
|
|
|||||||
|
Trade and other payables |
|
|
(385.2) |
|
(294.3) |
|
|||||||
|
Current income tax liabilities |
|
|
(66.0) |
|
(12.3) |
|
|||||||
|
Borrowings and finance leases |
9 |
|
(90.3) |
|
(36.8) |
|
|||||||
|
Other financial liabilities |
|
|
(4.2) |
|
- |
|
|||||||
|
Provisions |
|
|
(9.1) |
|
(26.5) |
|
|||||||
|
Total current liabilities |
|
|
(554.8) |
|
(369.9) |
|
|||||||
|
|
|
|
|
|
|
|
|
||||||
|
Non-current liabilities |
|
|
|
|
|
|
|||||||
|
Borrowings, finance leases and related swaps |
9 |
|
(454.7) |
|
(411.5) |
|
|||||||
|
Deferred income tax liabilities |
|
|
(49.7) |
|
(44.6) |
|
|||||||
|
Employee benefits obligations |
|
|
(56.2) |
|
(48.2) |
|
|||||||
|
Provisions |
|
|
(5.2) |
|
(3.9) |
|
|||||||
|
Trade and other payables |
|
|
(0.8) |
|
(0.7) |
|
|||||||
|
Total non-current liabilities |
|
|
(566.6) |
|
(508.9) |
|
|||||||
|
Total liabilities |
|
|
(1,121.4) |
|
(878.8) |
|
|||||||
|
Net assets |
|
|
1,044.5 |
|
929.9 |
|
|||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
Equity |
|
|
|
|
|
|
|||||||
|
Share capital |
|
|
220.2 |
|
219.5 |
|
|||||||
|
Share premium account |
|
|
144.4 |
|
139.8 |
|
|||||||
|
Shares held in employee share ownership trusts |
|
|
(63.0) |
|
(37.7) |
|
|||||||
|
Other reserves |
|
|
28.5 |
|
6.3 |
|
|||||||
|
Retained earnings |
|
|
708.0 |
|
594.5 |
|
|||||||
|
|
|
|
|
1,038.1 |
|
922.4 |
|
||||||
|
Minority interests |
|
|
6.4 |
|
7.5 |
|
|||||||
|
Total equity |
10 |
|
1,044.5 |
|
929.9 |
|
|||||||
|
|
|
|
|
|
||||||||
|
for the year ended 31st March 2006 |
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
2006 |
|
2005 |
||||||
|
|
|
Notes |
|
£ million |
|
£ million |
||||||
|
|
|
|
|
|
|
|
||||||
|
Cash flows from operating activities |
|
|
|
|
|
|||||||
|
Profit before tax |
|
|
213.8 |
|
167.4 |
|||||||
|
Adjustments for: |
|
|
|
|
|
|||||||
|
|
Share of loss / (profit) in associates |
|
|
0.2 |
|
(0.5) |
||||||
|
|
Discontinued operations |
|
|
- |
|
0.4 |
||||||
|
|
Depreciation, amortisation and profit on
sale of non-current assets and investments |
|
|
76.7 |
|
66.1 |
||||||
|
|
Share-based payments |
|
|
3.2 |
|
2.8 |
||||||
|
|
Increase in inventories |
|
|
(25.6) |
|
(38.2) |
||||||
|
|
(Increase) / decrease in receivables |
|
|
(78.7) |
|
9.1 |
||||||
|
|
Increase in payables |
|
|
63.7 |
|
19.2 |
||||||
|
|
(Decrease) / increase in provisions |
|
|
(18.1) |
|
5.4 |
||||||
|
|
Employee benefits obligations charge less contributions |
|
|
(9.3) |
|
(8.0) |
||||||
|
|
Changes in fair value of financial instruments |
|
|
(12.4) |
|
- |
||||||
|
|
Net interest |
|
|
14.7 |
|
13.0 |
||||||
|
Income tax paid |
|
|
(15.9) |
|
(52.9) |
|||||||
|
Net cash inflow from operating activities |
|
|
212.3 |
|
183.8 |
|||||||
|
|
|
|
|
|
|
|
||||||
|
Cash flows from investing activities |
|
|
|
|
|
|||||||
|
Dividends received from associates |
|
|
0.1 |
|
0.2 |
|||||||
|
Purchases of non-current assets and investments |
|
|
(120.3) |
|
(96.3) |
|||||||
|
Proceeds from sale of non-current assets and investments |
|
|
5.7 |
|
4.1 |
|||||||
|
Purchases of businesses and minority interests |
|
|
(24.3) |
|
(4.0) |
|||||||
|
Net proceeds from sale of business |
|
|
- |
|
23.3 |
|||||||
|
Net cash outflow from investing activities |
|
|
(138.8) |
|
(72.7) |
|||||||
|
|
|
|
|
|
|
|
||||||
|
Cash flows from financing activities |
|
|
|
|
|
|||||||
|
Net purchase of own shares |
|
|
(25.9) |
|
(16.1) |
|||||||
|
Proceeds from / (repayment of) borrowings and finance leases |
|
|
82.3 |
|
(50.6) |
|||||||
|
Dividends paid to equity holders of the parent company |
7 |
|
(60.4) |
|
(58.4) |
|||||||
|
Dividends paid to minority shareholders |
|
|
(0.2) |
|
(0.2) |
|||||||
|
Interest paid |
|
|
(30.6) |
|
(32.1) |
|||||||
|
Interest received |
|
|
16.6 |
|
19.2 |
|||||||
|
Net cash outflow from financing |
|
|
(18.2) |
|
(138.2) |
|||||||
|
|
|
|
|
|
|
|
||||||
|
Increase / (decrease) in cash and cash equivalents
in the year |
|
|
55.3 |
|
(27.1) |
|||||||
|
Exchange differences on cash and cash equivalents |
|
|
5.8 |
|
0.1 |
|||||||
|
Cash and cash equivalents at beginning of year |
|
|
64.0 |
|
91.0 |
|||||||
|
Cash and cash equivalents at end of year |
9 |
|
125.1 |
|
64.0 |
|||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||
|
Reconciliation to net debt |
|
|
|
|
|
|||||||
|
Increase / (decrease) in cash and cash equivalents in the year |
|
|
55.3 |
|
(27.1) |
|||||||
|
(Proceeds from) / repayment of borrowings and finance leases |
|
|
(82.3) |
|
50.6 |
|||||||
|
Change in net debt resulting from cash flows |
|
|
(27.0) |
|
23.5 |
|||||||
|
Borrowings acquired with subsidiaries |
|
|
(1.4) |
|
- |
|||||||
|
Exchange differences on net debt |
|
|
(13.4) |
|
1.4 |
|||||||
|
Movement in net debt in year |
|
|
(41.8) |
|
24.9 |
|||||||
|
Net debt at beginning of year (after adjustment to opening position
for IAS 39) |
11 |
|
(370.2) |
|
(394.5) |
|||||||
|
Net debt at end of year |
9 |
|
(412.0) |
|
(369.6) |
|||||||
|
|
|
|
|
|
|
|||||||
|
Consolidated
Statement of Recognised Income and Expense |
||||||||||||
|
for the year ended 31st March 2006 |
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
2006 |
|
2005 |
||||||
|
|
|
Notes |
|
£ million |
|
£ million |
||||||
|
|
|
|
|
|
|
|
||||||
|
Currency translation differences on foreign currency net investments
and |
|
|
|
|
|
|||||||
|
|
related loans |
|
|
42.3 |
|
(2.0) |
||||||
|
Fair value gain on available-for-sale investments transferred to
profit on sale |
|
|
(0.8) |
|
- |
|||||||
|
Cash flow hedges - losses taken to equity |
|
|
(3.6) |
|
- |
|||||||
|
Cash flow hedges - transferred to income statement in the year |
|
|
(2.6) |
|
- |
|||||||
|
Fair value losses on net investment hedges |
|
|
(12.5) |
|
- |
|||||||
|
Actuarial gain / (loss) on post-employment benefits assets and
liabilities |
|
|
19.6 |
|
(16.1) |
|||||||
|
Tax on above items taken directly to or transferred from equity |
|
|
(7.8) |
|
5.8 |
|||||||
|
Net income / (expense) recognised
directly in equity |
|
|
34.6 |
|
(12.3) |
|||||||
|
Profit for the year |
|
|
151.3 |
|
114.5 |
|||||||
|
Total recognised income
and expense relating to the year |
|
|
185.9 |
|
102.2 |
|||||||
|
IFRS transition adjustment for financial instruments |
11 |
|
2.7 |
|
- |
|||||||
|
|
|
|
|
188.6 |
|
102.2 |
||||||
|
|
|
|
|
|
|
|
||||||
|
Total recognised income
and expense attributable to: |
|
|
|
|
|
|||||||
|
Equity holders of the parent company |
|
|
186.7 |
|
103.2 |
|||||||
|
Minority interests |
|
|
(0.8) |
|
(1.0) |
|||||||
|
|
|
|
|
185.9 |
|
102.2 |
||||||
|
|
|
|
|
|
|
|
|
|||||
|
for the year ended 31st March 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
Basis of preparation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||