CHARTER plc
INTERIM STATEMENT OF RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2003
Summary of Six Six Six Six months
results
(unaudited)
(£ million) months months months ended Year
ended ended ended ended
30.6.03 30.6.03 30.6.03 30.6.02 31.12.02
------- ------- ------- ------- -------
Before Exceptional Total
exceptional
items items
------- ------- ------- ------- -------
Turnover 420.2 - 420.2 451.8 900.5
======= ======= ======= ======= =======
Adjusted 15.4 - 15.4 21.8 36.0
operating
profit1
Amortisation of (0.6) - (0.6) (0.6) (1.2)
goodwill
Operating - (5.8) (5.8) (7.7) (25.3)
exceptional ------- ------- ------- ------- -------
items
Operating 14.8 (5.8) 9.0 13.5 9.5
profit
Non-operating - 0.1 0.1 11.5 21.8
exceptional ------- ------- ------- ------- -------
items
Profit/(loss) 14.8 (5.7) 9.1 25.0 31.3
before
interest
Interest (8.6) - (8.6) (9.9) (19.3)
Exceptional - (5.0) (5.0) - -
refinancing ------- ------- ------- ------- -------
costs
Profit/(loss) 6.2 (10.7) (4.5) 15.1 12.0
before tax ======= ======= ======= ======= =======
Net debt 194.3 222.8 194.0
======= ======= =======
Earnings/(loss)
per share -
basic
Headline (8.3)p 10.3p 5.1p
======= ======= =======
Adjusted 1 3.8p 6.7p 8.6p
======= ======= =======
1 before exceptional items and amortisation of goodwill
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Six months ended 30 June 2003 (unaudited)
Six Six Six Six
months months months months Year
ended ended ended ended ended
30.6.03 30.6.03 30.6.03 30.6.02 31.12.02
Before Exceptional
exceptional items Total Total Total
items
£m £m £m £m £m
Note
Turnover
2 Continuing 420.2 - 420.2 451.8 900.5
operations ======== ======== ====== ====== =======
Operating
profit
2 Continuing - excluding
operations associated
undertakings
and operating 11.0 - 11.0 18.3 29.5
exceptional
items
- operating - (5.4) (5.4) (7.7) (24.6)
exceptional -------- -------- ------ ------ -------
items
- group 11.0 (5.4) 5.6 10.6 4.9
operating
profit
- associated 3.8 (0.4) 3.4 2.9 4.6
undertakings -------- -------- ------ ------ -------
- total 14.8 (5.8) 9.0 13.5 9.5
operating
profit
3 Non-operating exceptional
items
-------- -------- ------ ------ -------
Continuing - Losses on - (0.2) (0.2) (1.3) (2.1)
operations termination of
operations
associated - - - (2.6) (3.8)
goodwill -------- -------- ------ ------ -------
- (0.2) (0.2) (3.9) (5.9)
- net profit - 0.3 0.3 0.2 12.5
on fixed asset
disposals
Discontinued - profit on - - - 15.2 15.2
operations release of -------- -------- ------ ------ -------
guarantee
provision
Profit on ordinary 14.8 (5.7) 9.1 25.0 31.3
activities before
interest
Net interest - excluding (8.4) - (8.4) (9.6) (18.9)
and similar associated
charges undertakings
- associated (0.2) - (0.2) (0.3) (0.4)
undertakings
- exceptional - (5.0) (5.0) - -
refinancing -------- -------- ------ ------ -------
costs
Profit/(loss) on ordinary 6.2 (10.7) (4.5) 15.1 12.0
activities before
taxation
4 Tax on profit/(loss) on (2.1) - (2.1) (3.4) (5.1)
ordinary activities
4 Exceptional tax (charge)/ - (0.1) (0.1) 0.2 1.4
credit -------- -------- ------ ------ -------
Profit/(loss) on ordinary 4.1 (10.8) (6.7) 11.9 8.3
activities after taxation
Minority - equity (1.1) - (1.1) (2.2) (3.5)
interests -------- -------- ------ ------ -------
Retained profit/(loss) for 3.0 (10.8) (7.8) 9.7 4.8
the financial period ======== ======== ====== ====== =======
Earnings/(loss) per share -
basic
Headline 3.2p (11.5)p (8.3)p 10.3p 5.1p
Adjusted 3.8p - 3.8p 6.7p 8.6p
The information shown in respect of the year ended 31 December 2002 is extracted from
the statutory accounts of Charter plc for the year then ended which have been audited
and filed with the Registrar of Companies. The report of the auditors on those accounts
was unqualified and contained the following fundamental uncertainty regarding going
concern: 'In forming our opinion we have considered the adequacy of the disclosures made
in note 1(a) concerning the fundamental uncertainty in respect of going concern. In view
of the significance of this uncertainty we consider that it should be brought to your
attention, but our opinion is not qualified in this respect.'. These interim accounts
are prepared on the basis of the accounting policies as set out in those statutory
accounts.
CONSOLIDATED BALANCE SHEET
30 June 2003 (unaudited)
30.6.03 30.6.03 31.12.02 31.12.02
£m £m £m £m
Fixed assets
Intangible fixed assets - 17.9 18.5
goodwill
Tangible fixed assets 127.9 133.1
Fixed asset investments - 26.3 24.2
associated undertakings ------ -------
172.1 175.8
Current assets
Stocks 116.8 112.4
Debtors 227.1 225.7
Cash at bank and in hand 35.4 32.2
------ -------
379.3 370.3
------ -------
Creditors: amounts falling due
within one year
Creditors (190.9) (182.6)
Short term borrowings (145.6) (94.6)
------ -------
(336.5) (277.2)
------ -------
Net current assets 42.8 93.1
------ -------
Total assets less current 214.9 268.9
liabilities
Creditors: amounts falling due
after more than one year
Other long term creditors (1.0) (1.0)
Long term borrowings (84.1) (131.6)
Provisions for liabilities and (121.0) (123.3)
charges ------ -------
8.8 13.0
====== =======
Shareholders' funds - equity (10.5) (5.5)
interests
Minority interests - equity 19.3 18.5
interests ------ -------
8.8 13.0
====== =======
By order of the board
A R Yapp, Secretary
4 September 2003
CONSOLIDATED CASH FLOW STATEMENT
Six months ended 30 June 2003 (unaudited)
Six Six
months months Year
ended ended ended
30.6.03 30.6.02 31.12.02
£m £m £m
Note
5 Cash flow from operating activities 21.1 9.2 32.2
Dividends received from associated 2.2 2.7 3.3
undertakings
Returns on investments and servicing of (12.7) (11.5) (21.9)
finance
Taxation paid (3.7) (2.6) (8.0)
Capital expenditure and financial (4.4) (6.6) 9.2
investment
Acquisitions and disposals
Sale of subsidiary undertakings - net (0.1) 1.7 1.9
proceeds
Purchase of subsidiary undertakings - (0.5) (0.6)
Equity dividends paid - - -
------ ------ -------
Cash inflow/(outflow) before management
of
liquid resources and financing 2.4 (7.6) 16.1
Management of liquid resources - (0.8) 15.9
Financing
Decrease in short term borrowings other - (0.3) (3.3)
than those repayable on demand
Decrease in long term borrowings - (6.0) -
Capital element of finance lease rental (0.6) (1.0) (1.9)
payments
------ ------ -------
Increase/(decrease) in cash in the 1.8 (15.7) 26.8
financial period ====== ====== =======
(Increase)/decrease in net debt in the (0.3) (8.7) 20.1
financial period ====== ====== =======
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Six months ended 30 June 2003 (unaudited)
Six Six
months months Year
ended ended ended
30.6.03 30.6.02 31.12.02
£m £m £m
(Loss)/profit for the financial period
- excluding associated undertakings (10.2) 7.8 1.6
- associated undertakings 2.4 1.9 3.2
------ ------ -------
(7.8) 9.7 4.8
Net effect of translation of currencies 2.8 (2.1) (4.4)
Net effect of translation of currencies - - - (1.4)
taxation ------ ------ -------
Total recognised gains and losses (5.0) 7.6 (1.0)
====== ====== =======
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
Six months ended 30 June 2003 (unaudited)
Six Six
months months Year
ended ended ended
30.6.03 30.6.02 31.12.02
£m £m £m
(Loss)/profit for the financial period (7.8) 9.7 4.8
Dividends - - -
------ ------ -------
(7.8) 9.7 4.8
Other recognised gains and losses 2.8 (2.1) (5.8)
Goodwill associated with the sale and - 2.6 3.8
termination of operations ------ ------ -------
Net (reduction in)/addition to shareholders' (5.0) 10.2 2.8
funds
Opening shareholders' funds (5.5) (8.3) (8.3)
------ ------ -------
Closing shareholders' funds (10.5) 1.9 (5.5)
====== ====== =======