ARLA FOODS UK
GROUP PROFIT AND LOSS ACCOUNT
for the six months to 31 March 2004
Restated Restated
Unaudited Unaudited Audited
Notes six months six months to Year
to 31.03.04 30.09.03 to 31.03.03
£m £m £m
Turnover
Group and share of joint venture 700.0 325.3 716.2
Less share of joint venture (2.1) (1.8) (1.5)
Continuing operations 697.9 323.5 697.2
Discontinued operations - - 17.5
______ ______ ______
Group turnover 2 697.9 323.5 714.7
Cost of sales (506.4) (220.5) (474.5)
______ _____ _____
Gross profit 191.5 103.0 240.2
Operating expenses before goodwill amortisation
and operating exceptional items 3 (164.1) (89.1) (202.1)
______ ______ ______
Operating profit before goodwill amortisation and operating
exceptional items 27.4 13.9 38.1
Goodwill amortisation (4.2) (2.2) (4.6)
Operating exceptional items 4 (10.5) (1.8) (12.9)
______ _______ _______
Operating profit
Continuing operations 12.7 9.9 19.7
Discontinued operations - - 0.9
______ ______ ______
12.7 9.9 20.6
Share of loss in joint venture (0.4) (0.1) (0.3)
Share of loss in associate (0.3) - -
______ ______ ______
12.0 9.8 20.3
Non operating exceptional items 4 (1.4) - 0.2
______ ______ ______
10.6 9.8 20.5
Net interest payable 5 (5.6) (3.7) (8.9)
______ ______ ______
Profit on ordinary activities before taxation 5.0 6.1 11.6
Tax on profit on ordinary activities 6 (3.7) (2.3) (4.4)
______ _______ ______
Profit on ordinary activities after taxation 1.3 3.8 7.2
Equity dividends 7 (32.2) (3.0) (3.0)
______ ______ ______
(Deficit)/retained profit for the period (30.9) 0.8 4.2
______ ______ ______
Earnings per ordinary share - basic 8 0.2p 1.3p 2.4p
- adjusted 8 2.4p 2.5p 6.6p
- diluted 8 0.2p 1.3p 2.4p
GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the six months to 31 March 2004
Restated Restated
Unaudited Unaudited Audited Year
six months six months to to 31.03.03
to 31.03.04 30.09.03
£m £m £m
Profit attributable to shareholders 1.3 4.0 7.6
Prior year adjustments - implementation of UITF 38/17 (0.6) - -
______ ______ ______
Total recognised gains and losses since the last annual report 0.7 4.0 7.6
______ ______ ______
SUMMARISED GROUP BALANCE SHEET
at 31 March 2004
Restated Restated
Unaudited Unaudited Audited
31.03.04 30.09.03 31.03.03
£m £m £m
Fixed assets
Intangible assets 105.8 55.2 57.2
Tangible assets 232.9 127.8 133.1
Investments
Investment in joint venture
Share of gross assets 4.3 3.8 3.7
Share of gross liabilities (2.6) (1.7) (1.5)
__________ ________ ________
1.7 2.1 2.2
Investment in associate 1.7 2.0 2.0
__________ ________ ________
3.4 4.1 4.2
__________ ________ ________
342.1 187.1 194.5
__________ ________ ________
Current assets
Stocks 23.0 6.8 7.4
Debtors 136.1 71.4 64.2
Deferred taxation (due in more than one year) 4.3 - -
Cash at bank and in hand 57.3 12.9 21.6
__________ ________ ________
220.7 91.1 93.2
__________ ________ ________
Creditors: due within one year
Borrowings 10.4 11.3 14.0
Trade creditors 147.1 54.8 58.4
Other creditors and accruals 43.9 36.3 40.4
Current taxation 9.4 8.9 6.1
Dividend payable 3.6 3.0 1.8
__________ ________ ________
214.4 114.3 120.7
__________ ________ ________
Net current assets/(liabilities) 6.3 (23.2) (27.5)
__________ ________ ________
Total assets less current liabilities 348.4 163.9 167.0
__________ ________ ________
Creditors: due after one year
Borrowings 173.8 107.5 110.9
__________ ________ ________
174.6 56.4 56.1
__________ ________ ________
Provisions for liabilities and charges
Deferred taxation - 9.8 10.5
Post retirement health care 1.2 1.3 1.4
Pensions 21.0 - -
_______ _______ _______
22.2 11.1 11.9
_______ _______ _______
152.4 45.3 44.2
_______ _______ _______
Capital and reserves
Called up share capital 12.2 6.0 6.0
Share premium account 27.4 0.2 0.2
Merger reserve 99.6 (4.9) (4.9)
Investment in own shares (2.6) (2.6) (2.6)
Profit and loss account 15.8 46.6 45.5
_______ _______ _______
Equity shareholders' funds 152.4 45.3 44.2
_______ _______ _______
GROUP CASH FLOW STATEMENT
for the six months to 31 March 2004
Restated Restated
Unaudited Unaudited Audited
six months six months Year
to 31.03.04 to 30.09.03 to 31.03.03
£m £m £m
Operating profit 12.0 9.8 20.3
Share of loss in joint venture 0.4 0.1 0.3
Share of loss in associate 0.3 - -
Depreciation including operating exceptional write down 17.8 8.9 19.4
Amortisation 4.2 2.2 4.6
Provision against fixed asset investment - - 0.3
Profit on disposal of intangible fixed assets - - (0.1)
UITF 38/17 credit 0.1 0.3 0.6
Working capital movement 37.0 (15.4) 11.4
______ ______ ______
Net cash inflow from operating activities 71.8 5.9 56.8
Returns on investments and servicing of finance
Net proceeds on realised gains on financial instruments - - 0.3
Interest received 0.1 0.1 0.3
Interest paid (5.4) (3.6) (9.1)
Interest element of finance lease rental payments (0.3) (0.2) (0.3)
______ ______ ______
Net cash outflow from returns on investments and servicing of
finance
(5.6) (3.7) (8.8)
Taxation paid (3.3) - (1.2)
Capital expenditure and financial investment
Purchase of tangible fixed assets (33.0) (5.3) (10.9)
Proceeds from disposal of intangible and tangible fixed assets 6.5 2.5 5.6
______ ______ ______
Net cash outflow from capital expenditure (26.5) (2.8) (5.3)
Acquisitions and disposals
Disposal of businesses (including expenses) 2.8 - 30.0
Acquisitions of businesses (including expenses) (6.5) (0.2) (5.7)
Net cash balances acquired on acquisitions 2.3 - -
______ ______ ______
Net cash (outflow)/inflow on acquisitions and disposals (1.4) (0.2) 24.3
Equity dividends paid (31.6) (1.8) (1.2)
______ ______ ______
Cash inflow/(outflow) before financing 3.4 (2.6) 64.6
______ ______ ______
Financing
Movement in short term borrowings (17.4) - (1.7)
Movement in long term borrowings 47.6 (7.8) (64.7)
Repurchase and cancellation of US Loan Notes (0.7) - (8.7)
Proceeds from sale and leaseback transactions 24.3 9.8 -
Capital element of finance lease rental payments (6.1) (3.2) (2.5)
_______ _______ _______
Net cash inflow/(outflow) from financing 47.7 (1.2) (77.6)
_______ _______ _______
Increase/(decrease) in cash in the period 51.1 (3.8) (13.0)
_______ _______ _______
In the six months to 31 March 2004 there was a significant non-cash movement
relating to the acquisition of Arla Foods plc. Ordinary shares to the value of
£137.9m were issued as consideration for the acquisition of 100% of the ordinary
shares of Arla Foods plc.