|
|
|
|
Restated |
|
|
|
|
Pre-goodwill |
|
Pre-goodwill |
|
|
|
|
and |
|
and |
|
|
|
|
exceptional |
|
exceptional |
|
|
|
|
operating |
|
operating |
Restated |
|
|
|
items |
Total |
items |
Total |
|
|
|
2002 |
2002 |
2001 |
2001 |
|
|
Year ended 30 September |
£m |
£m |
£m |
£m |
|
|
Turnover: Group and share of
joint ventures’ |
|||||
|
Continuing operations |
4,412.7 |
4,412.7 |
5,056.6 |
5,056.6 |
|
|
Acquisitions |
0.6 |
0.6 |
- |
- |
|
|
|
4,413.3 |
4,413.3 |
5,056.6 |
5,056.6 |
|
|
Discontinued operations |
- |
- |
22.3 |
22.3 |
|
|
|
4,413.3 |
4,413.3 |
5,078.9 |
5,078.9 |
|
|
Less:
share of joint ventures’ turnover |
|||||
|
Continuing operations |
(34.1) |
(34.1) |
(28.1) |
(28.1) |
|
|
Group
turnover |
4,379.2 |
4,379.2 |
5,050.8 |
5,050.8 |
|
|
Cost of sales |
(3,731.0) |
(3,760.5) |
(4,245.5) |
(4,245.5) |
|
|
Gross
profit |
648.2 |
618.7 |
805.3 |
805.3 |
|
|
Net operating expenses pre-goodwill |
(675.7) |
(680.1) |
(698.0) |
(722.3) |
|
|
Goodwill |
- |
(30.7) |
- |
(30.1) |
|
|
Net operating expenses |
(675.7) |
(710.8) |
(698.0) |
(752.4) |
|
|
Operating
(loss)/profit |
|||||
|
Continuing operations |
(24.9) |
(89.4) |
107.3 |
52.9 |
|
|
Acquisitions |
(2.6) |
(2.7) |
- |
- |
|
|
Group
operating (loss)/profit |
(27.5) |
(92.1) |
107.3 |
52.9 |
|
|
Income
from interests in joint ventures |
|||||
|
and
associates |
|||||
|
Joint ventures |
- continuing operations |
5.2 |
5.2 |
3.0 |
3.0 |
|
|
- goodwill |
- |
(1.2) |
- |
(1.2) |
|
Associates |
- continuing operations |
1.9 |
1.9 |
2.9 |
2.9 |
|
|
- goodwill |
- |
(0.6) |
- |
(0.5) |
|
Group and
share of joint ventures’ |
|
|
|
|
|
|
and
associates’ operating (loss)/profit |
(20.4) |
(86.8) |
113.2 |
57.1 |
|
|
Exceptional
items |
|
|
|
|
|
|
Profit on sale of subsidiary undertaking |
|
9.6 |
|
- |
|
|
Profit on sale of tangible fixed assets |
|
0.2 |
|
22.8 |
|
|
Provision for losses on terminated operations |
|
(2.5) |
|
- |
|
|
Losses on terminated operations |
|
(2.6) |
|
(19.7) |
|
|
Less utilisation of provision |
|
0.8 |
|
15.8 |
|
|
Costs of a fundamental reorganisation |
|
- |
|
(11.3) |
|
|
(Loss)/profit
on ordinary activities before |
|
|
|
|
|
|
finance
charges |
|
(81.3) |
|
64.7 |
|
|
Finance charges (net) |
|
|
|
|
|
|
Group |
|
9.8 |
|
(2.3) |
|
|
Joint ventures and associates |
|
(1.3) |
|
(0.1) |
|
|
(Loss)/profit
on ordinary activities before tax |
|
(72.8) |
|
62.3 |
|
|
Tax on (loss)/profit on ordinary activities |
|
29.5 |
|
(24.7) |
|
|
(Loss)/profit
on ordinary activities after tax |
|
(43.3) |
|
37.6 |
|
|
Equity minority interests |
|
(0.1) |
|
(3.5) |
|
|
Non-equity minority interests |
|
(16.7) |
|
(16.7) |
|
|
(Loss)/profit
for the financial year |
|
(60.1) |
|
17.4 |
|
|
Dividends |
|
(9.8) |
|
(46.6) |
|
|
Transfer from reserves |
|
(69.9) |
|
(29.2) |
|
|
|
|
|
|
Restated |
|
|
|
Total |
|
Total |
|
|
|
2002 |
|
2001 |
|
|
|
|
|
|
(Loss)/earnings
per share |
|
|
|
|
|
Basic |
|
(12.22p) |
|
3.55p |
|
- pre-goodwill |
|
(5.62p) |
|
10.05p |
|
- pre-goodwill and exceptional items |
|
(1.08p) |
|
13.45p |
|
Diluted |
|
(12.22p) |
|
3.53p |
|
- pre-goodwill |
|
(5.62p) |
|
9.99p |
|
- pre-goodwill and exceptional items |
|
(1.08p) |
|
13.38p |
|
|
|
Restated |
|
|
2002 |
2001 |
|
At 30
September |
£m |
£m |
|
Fixed assets |
|
|
|
Intangible
assets – goodwill |
490.4 |
540.2 |
|
Tangible
assets |
489.6 |
431.1 |
|
Joint
venture undertakings |
|
|
|
Share of gross assets |
70.8 |
73.0 |
|
Share of gross liabilities |
(51.3) |
(55.9) |
|
Goodwill |
22.2 |
23.5 |
|
|
41.7 |
40.6 |
|
Investments
in associated undertakings |
30.1 |
29.9 |
|
Other
investments |
11.7 |
13.2 |
|
|
83.5 |
83.7 |
|
Total fixed assets |
1,063.5 |
1,055.0 |
|
Current assets |
||
|
Stocks |
14.0 |
13.3 |
|
Debtors:
amounts falling due within one year |
556.0 |
591.1 |
|
Debtors:
amounts falling due after one year |
168.2 |
181.0 |
|
Cash and
deposits |
292.7 |
378.6 |
|
|
1,030.9 |
1,164.0 |
|
Creditors: amounts
falling due within one year |
(1,165.4) |
(1,212.9) |
|
Net current liabilities |
(134.5) |
(48.9) |
|
Total assets less current liabilities |
929.0 |
1,006.1 |
|
Creditors: amounts falling due after one year |
||
|
Convertible
debt |
(219.9) |
(271.3) |
|
Other
creditors |
(228.8) |
(189.3) |
|
|
(448.7) |
(460.6) |
|
Provisions for liabilities and charges |
(93.6) |
(90.6) |
|
Net assets |
386.7 |
454.9 |
|
Capital
and reserves |
||
|
Called up
share capital |
49.5 |
49.3 |
|
Share
premium account |
113.9 |
109.5 |
|
Capital
redemption reserve |
3.2 |
3.2 |
|
Other
reserves |
18.0 |
18.0 |
|
Profit
and loss account |
(8.1) |
65.3 |
|
Equity shareholders’ funds |
176.5 |
245.3 |
|
Equity
minority interests |
0.7 |
1.1 |
|
Non-equity
minority interests |
209.5 |
208.5 |
|
|
386.7 |
454.9 |
|
|
2002 |
2001 |
|
Year ended 30 September |
£m |
£m |
|
Net cash
inflow/(outflow) from operating activities |
9.9 |
(10.5) |
|
Dividends
received from associated undertakings |
2.4 |
0.6 |
|
Returns
on investments and servicing of finance |
|
|
|
Interest received |
41.2 |
34.3 |
|
Interest paid |
(32.9) |
(30.1) |
|
Interest element of finance leases |
(7.9) |
(3.4) |
|
Dividends paid on undated preference shares |
(15.8) |
(15.8) |
|
Minority interests |
(0.3) |
(3.3) |
|
Net cash
outflow from returns on investments |
|
|
|
and
servicing of finance |
(15.7) |
(18.3) |
Tax received/(paid)
|
0.6 |
(1.3) |
|
Capital
expenditure and financial investment |
|
|
|
Purchase of tangible fixed assets |
(70.1) |
(126.2) |
|
Purchase of fixed asset investments |
(1.8) |
(7.9) |
|
Sale of tangible fixed assets |
30.1 |
86.0 |
|
Loans to joint venture undertaking repaid |
18.7 |
18.0 |
|
Net cash
outflow from capital expenditure and |
|
|
|
financial
investment |
(23.1) |
(30.1) |
Acquisitions and disposals
|
|
|
|
Purchase of subsidiary undertakings |
(8.5) |
(31.6) |
|
Acquisition expenses |
(0.6) |
(1.1) |
|
Cash at bank and in hand acquired with subsidiaries |
- |
5.9 |
|
Proceeds less cash at bank and in hand relating to |
|
|
|
disposal of subsidiaries |
35.5 |
(3.5) |
|
Investment in joint venture and associated
undertakings |
(0.1) |
(27.4) |
|
Net cash
inflow/(outflow) from acquisitions |
|
|
|
and
disposals |
26.3 |
(57.7) |
Equity dividends paid
|
(46.8) |
(45.1) |
|
Cash
outflow before use of liquid resources |
|
|
|
and
financing |
(46.4) |
(162.4) |
|
Management
of liquid resources |
|
|
|
Movement on term deposits |
79.7 |
328.9 |
|
Net cash
inflow from management |
|
|
|
of liquid
resources |
79.7 |
328.9 |
|
Financing |
|
|
|
Issue of shares |
4.0 |
2.2 |
|
Issue of unsecured senior loan notes |
- |
66.5 |
|
Redemption of Convertible Bonds due 2004 |
(45.0) |
(25.0) |
|
Loan repayments |
(14.3) |
(277.1) |
|
Capital element of finance lease rental payments |
(18.8) |
(9.8) |
|
Net cash
outflow from financing |
(74.1) |
(243.2) |
|
Decrease
in cash in the year |
(40.8) |
(76.7) |
|
|
|
Restated |
|
|
2002 |
2001 |
|
Year ended 30 September |
£m |
£m |
|
(Loss)/profit for the financial
year |
(60.1) |
17.4 |
|
Currency differences on foreign currency net
investments |
(2.9) |
(8.8) |
|
Total recognised gains and losses relating to the year |
(63.0) |
8.6 |
|
Prior year adjustment |
(67.0) |
- |
|
Total
gains and losses recognised since last financial statements |
(130.0) |
8.6 |
1.
Basis of Preparation
The
accounts have been prepared using accounting policies stated in the Company’s
report and accounts for the year ended 30 September 2002. These policies
are different to those applied for the year ended 30 September 2001 with
respect to policies for the recognition of retail revenue, insurance, indirect
selling costs and deferred tax. The effect of these changes on the Group
is set out in note 4. The results shown above do not constitute statutory
accounts for the year ended 30 September 2002 and 30 September 2001 within the
meaning of section 240 of the Companies Act 1985. The results in respect
of the financial years ended 30 September 2002 and 30 September 2001 are an
abridged version of the Company’s consolidated statutory accounts which have
been reported on without qualification, and without a statement under section
237(2) or (3) of the Companies Act 1985, by the auditors. The 2001 consolidated
statutory accounts have been delivered to the Registrar of Companies.
|
|
|
Restated |
|
|
2002 |
2001 |
|
|
£m |
£m |
|
Turnover |
||||
|
UK |
||||
|
continuing |
2,473.4 |
2,661.6 |
||
|
Other Europe |
||||
|
continuing |
Northern Europe |
914.0 |
1,032.3 |
|
|
|
Germany |
422.6 |
684.4 |
|
|
acquisitions |
0.6 |
- |
||
|
discontinued |
- |
22.3 |
||
|
North America |
||||
|
continuing |
|
568.6 |
650.2 |
|
|
Group |
4,379.2 |
5,050.8 |
||
|
Joint ventures |
|
|
|
|
|
continuing |
Hotetur |
27.2 |
20.0 |
|
|
|
Other |
6.9 |
8.1 |
|
|
Group and share of joint
ventures’ |
4,413.3 |
5,078.9 |
||
|
|
|
|
|
|
The
impact of the prior year adjustment on 2001 is on UK turnover only.
|
|
Pre-goodwill |
Post
goodwill |
||||
|
|
and
exceptional |
and
exceptional |
||||
|
|
operating
items |
operating
items |
||||
|
|
|
Restated |
|
Restated |
||
|
|
2002 |
2001 |
2002 |
2001 |
||
|
|
£m |
£m |
£m |
£m |
||
|
Operating (loss)/profit |
||||||
|
UK |
||||||
|
continuing |
(24.1) |
77.7 |
(58.2) |
51.0 |
||
|
Other Europe |
||||||
|
continuing |
Northern Europe |
9.3 |
33.9 |
5.0 |
29.4 |
|
|
|
Germany |
(31.2) |
(25.5) |
(40.1) |
(32.2) |
|
|
acquisitions |
|
(2.6) |
- |
(2.7) |
- |
|
|
North America |
||||||
|
continuing |
|
21.1 |
21.2 |
3.9 |
4.7 |
|
|
|
(27.5) |
107.3 |
(92.1) |
52.9 |
||
|
|
|
|
|
|
|
|
The
impact of the prior year adjustment on 2001 is to reduce UK operating profit by
£14.7m, Northern Europe operating profit by £0.8m and North America operating
profit by £3.5m.
|
|
Pre-goodwill |
Post
goodwill |
||
|
|
and
exceptional |
and
exceptional |
||
|
|
operating
items |
operating
items |
||
|
|
2002 |
2001 |
2002 |
2001 |
|
|
£m |
£m |
£m |
£m |
|
Income from interests in joint ventures |
||||||
|
and associates |
||||||
|
Joint ventures |
||||||
|
continuing |
Hotetur |
3.7 |
1.9 |
2.5 |
0.7 |
|
|
|
Other |
1.5 |
1.1 |
1.5 |
1.1 |
|
|
Associates |
|
|
|
|
|
|
|
continuing |
Germany - direct distribution |
0.1 |
1.1 |
0.1 |
0.8 |
|
|
|
Aqua Sol |
1.8 |
1.8 |
1.2 |
1.6 |
|
|
|
|
7.1 |
5.9 |
5.3 |
4.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2002 |
2001 |
|
|
£m |
£m |
|
Exceptional
operating items |
|||
|
UK |
|||
|
continuing |
(28.1) |
(20.7) |
|
|
Other Europe |
|||
|
continuing |
Northern Europe |
(3.3) |
(3.6) |
|
|
Germany |
(2.5) |
- |
|
|
(33.9) |
(24.3) |
|
|
|
2002 |
2001 |
|
|
£m |
£m |
|
Goodwill |
||||
|
UK |
||||
|
continuing |
(6.0) |
(6.0) |
||
|
Other Europe |
||||
|
continuing |
Northern Europe |
(1.0) |
(0.9) |
|
|
|
Germany |
(6.4) |
(6.7) |
|
|
acquisitions |
|
(0.1) |
- |
|
|
North America |
||||
|
continuing |
|
(17.2) |
(16.5) |
|
|
|
|
(30.7) |
(30.1) |
|
|
Joint ventures |
||||
|
continuing |
Hotetur |
(1.2) |
(1.2) |
|
|
Associates |
|
|
|
|
|
continuing |
Germany - direct distribution |
- |
(0.3) |
|
|
|
Aqua Sol |
(0.6) |
(0.2) |
|
|
|
(32.5) |
(31.8) |
||
|
|
|
|
|
|
Profit on sale of subsidiary
undertaking
On
28 September 2002, the Group disposed of its interests in the Eurosites camping
division. The tax effect of the profit on disposal of £9.6m was £2.4m.
|
|
2002 |
2001 |
||
|
|
£m |
£m |
||
|
Profit on sale of tangible fixed assets |
||||
|
UK |
|
|
||
|
continuing |
|
2.6 |
22.9 |
|
|
Other
Europe |
|
|
||
|
continuing |
Northern Europe |
(2.0) |
- |
|
|
|
Germany |
(0.4) |
(0.1) |
|
|
|
0.2 |
22.8 |
||
|
|
|
|
|
|
The
tax effect of the profit on sale of tangible fixed assets was £0.1m (2001:
£7.9m).
|
|
2002 |
2001 |
|
|
£m |
£m |
|
Losses on terminated operations |
||
|
UK |
4.3 |
1.9 |
|
Other
Europe |
- |
2.0 |
|
|
4.3 |
3.9 |
The
losses on terminated operations in the UK represent the costs of exiting of the
Group from Vacation Ownership operations. During 2002, the Group recorded
£1.8m of losses relating to these operations and provided £2.5m for losses on
the related fixed assets.
In Other
Europe, the Group announced in 2000 the closure of its Belgian charter airline
operations and closed its tour operations in France and Belgium and made
provision for £20.2m of related costs. During 2002, £0.8m of costs were
incurred and £0.8m of the provision utilised.
There was
no material tax effect as a result of these transactions.
|
|
2002 |
2001 |
|
|
£m |
£m |
|
Finance charges (net) |
||||
|
UK |
||||
|
continuing |
31.0 |
24.0 |
||
|
Other Europe |
||||
|
continuing |
Northern Europe |
4.2 |
1.8 |
|
|
|
Germany |
(8.2) |
(9.1) |
|
|
acquisitions |
|
(0.1) |
- |
|
|
North America |
||||
|
continuing |
|
(17.1) |
(19.0) |
|
|
Group |
|
9.8 |
(2.3) |
|
|
Joint ventures |
||||
|
continuing |
Hotetur |
(1.5) |
(0.3) |
|
|
|
Other |
0.4 |
- |
|
|
Associates |
|
|
|
|
|
continuing |
Germany - direct distribution |
- |
0.2 |
|
|
|
Aqua Sol |
(0.2) |
- |
|
|
Joint
ventures and associates |
(1.3) |
(0.1) |
||
|
Total
finance charges (net) |
8.5 |
(2.4) |
||
|
|
|
|
|
|
|
|
Pre-goodwill |
Post
goodwill |
||||
|
|
and
exceptional |
and
exceptional |
||||
|
|
items* |
items* |
||||
|
|
|
Restated |
|
Restated |
||
|
|
2002 |
2001 |
2002 |
2001 |
||
|
|
£m |
£m |
£m |
£m |
||
|
(Loss)/profit on ordinary activities before tax |
||||||
|
UK |
||||||
|
continuing |
6.9 |
101.7 |
(19.3) |
95.9 |
||
|
Other Europe |
||||||
|
continuing |
Northern Europe |
13.5 |
35.7 |
7.2 |
31.2 |
|
|
|
Germany |
(39.4) |
(34.6) |
(48.7) |
(52.6) |
|
|
acquisitions |
|
(2.7) |
- |
(2.8) |
- |
|
|
discontinued |
- |
- |
- |
(2.0) |
||
|
North America |
||||||
|
continuing |
|
4.0 |
2.2 |
(13.2) |
(14.3) |
|
|
Joint ventures |
|
|
|
|
||
|
continuing |
Hotetur |
2.2 |
1.6 |
1.0 |
0.4 |
|
|
|
Other |
1.9 |
1.1 |
1.9 |
1.1 |
|
|
Associates |
|
|
|
|
|
|
|
continuing |
Germany – direct distribution |
0.1 |
1.3 |
0.1 |
1.0 |
|
|
|
Aqua Sol |
1.6 |
1.8 |
1.0 |
1.6 |
|
|
|
(11.9) |
110.8 |
(72.8) |
62.3 |
||
|
|
|
|
|
|
|
|
*(Loss)/profit
is stated after charging e-commerce costs of £23.2m (2001: £15.2m).
|
|
2002 |
2001 |
|
|
£m |
£m |
|
Exceptional items |
|||
|
UK |
|||
|
continuing |
(20.2) |
0.2 |
|
|
Other Europe |
|||
|
continuing |
Northern Europe |
(5.3) |
(3.6) |
|
|
Germany |
(2.9) |
(11.3) |
|
discontinued |
- |
(2.0) |
|
|
|
(28.4) |
(16.7) |
|
|
|
|
Restated |
|
|
2002 |
2001 |
|
|
£m |
£m |
|
Net
assets |
||
|
UK |
57.0 |
48.2 |
|
Other Europe |
210.0 |
281.2 |
|
North America |
119.7 |
125.5 |
|
|
386.7 |
454.9 |
The impact of the prior year adjustment on 2001 is to
reduce net assets by £58.7m in the UK, £5.3m in Other Europe and £3.0m in North
America.
3.
Exceptional operating items
|
|
2002 |
2001 |
|||
|
|
£m |
£m |
|||
|
UK |
|
|
|
|
|
|
continuing |
|
(i) |
accounting errors |
26.0 |
- |
|
|
|
|
impairment of own shares |
2.1 |
- |
|
|
|
(ii) |
reorganisation costs |
- |
20.7 |
|
Other Europe |
|
|
|
|
|
|
continuing |
Northern Europe |
(ii) |
reorganisation costs |
3.3 |
3.6 |
|
|
Germany |
(iii) |
reorganisation and |
|
|
|
|
|
|
relocation costs |
2.5 |
- |
|
|
33.9 |
24.3 |
|||
|
(i) |
The exceptional charge of £26.0m represents the cumulative
effect over several years of a |
|
|
number of accounting errors identified in the current
year relating to prior years. These |
|
|
comprised misallocations of costs between seasons and
years (£10.3m) and differences on |
|
|
intercompany accounts (£15.7m). The comparative
figures have not been restated because |
|
|
the effect of these errors in the prior year was not
fundamental to the stated results and |
|
|
balance sheets in those financial statements in that
year. |
|
(ii) |
The costs in 2002 relate to reorganisation and shop
closure costs in Norway and Finland. |
|
|
The comparative costs in 2001 relate to the
reorganisation of certain businesses in the UK |
|
|
and Scandinavia including the restructuring of the Group’s
retail operations in those |
|
|
countries. |
|
(iii) |
The costs relate to the relocation of the offices in
Germany and associated reorganisation. |
The tax
effect of these exceptional items was £8.6m (2001: £7.2m).
4.
Prior year adjustment
Having undertaken
a comprehensive review of accounting policies to consider their continuing
appropriateness under Financial Reporting Standard No.18 – Accounting Policies,
the directors have concluded that certain changes should be made in the areas
of revenue recognition and cost deferrals. The policies which have
changed are those relating to revenue recognition for commission earned on
sales made by the Group’s retail operations, the treatment of holiday insurance
and that relating to indirect selling costs relating to future seasons.
The directors consider that the revised policies are the most appropriate for
the Group.
In respect of the
retail business, the Group had previously recognised commission and profits on
holiday insurance on sales made through its retail operations at the dates on
which the related holidays were booked or policies were provided. The new
policy moves the revenue recognition date to the date of departure for sales
made of in-house leisure travel products and to the date of full receipt of
cash for sales of third party leisure travel products.
In addition,
indirect selling costs relating to future seasons which were previously
deferred are now charged to the profit and loss account as incurred.
A further change
in accounting policy has been necessary to comply with Financial Reporting
Standard No.19 – Deferred Tax, which applies to the Group’s financial
statements for the first time this year. This standard requires the Group
to make provision for deferred tax on all timing differences which have
originated but not reversed at the balance sheet date which result in an
obligation to pay more tax, or a right to pay less tax, in the future.
Previously provision was required only to the extent that timing differences
were expected to reverse in the foreseeable future.
The prior year
accounts have been restated accordingly to reflect these changes in accounting
policy.
The effect of the changes on the
Group are set out below:
|
|
|
|
Total |
|
Pre |
|
|
|
2002 |
Prior Year |
2001 |
2001 |
|
|
|
£m |
£m |
£m |
£m |
|
Increase in loss/increase/(decrease) in |
|
|
|
|
|
|
profit before tax |
|
|
|
|
|
|
Retail
commission |
(14.3) |
(48.5) |
(11.0) |
(37.5) |
|
|
Free holiday insurance |
(3.8) |
(14.6) |
0.4 |
(15.0) |
|
|
Deferred indirect selling costs |
(2.2) |
(17.9) |
(8.4) |
(9.5) |
|
|
|
(20.3) |
(81.0) |
(19.0) |
(62.0) |
|
|
Tax
credit/(charge) |
|
|
|
|
|
|
Tax effect of above changes |
4.5 |
22.0 |
4.7 |
17.3 |
|
|
FRS 19 Deferred tax |
- |
(8.0) |
0.9 |
(8.9) |
|
|
|
4.5 |
14.0 |
5.6 |
8.4 |
|
|
Decrease
in reserves |
(15.8) |
(67.0) |
(13.4) |
(53.6) |
|
|
|
|
Restated |
Adjustments |
As reported |
|
|
|
2001 |
2001 |
2001 |
|
|
|
£m |
£m |
£m |
|
Balance
sheet |
|
|
|
|
|
Debtors due within one year |
|
591.1 |
(66.4) |
657.5 |
|
Creditors due within one year |
|
(1,212.9) |
(9.6) |
(1,203.3) |
|
Deferred taxation |
|
(49.8) |
9.0 |
(58.8) |
|
Decrease
in net assets |
|
|
(67.0) |
|
5. Tax on (loss)/profit on ordinary
activities
|
|
|
Restated |
|
|
2002 |
2001 |
|
|
£m |
£m |
|
Analysis of charge in period |
|||
|
Current tax |
|||
|
The current tax charge is based on the (loss)/profit
for the year and is |
|
|
|
|
made up as follows: |
|
|
|
|
UK |
corporation tax at 30% (2001: 30%) |
(16.7) |
9.7 |
|
|
adjustments in respect of prior years |
3.2 |
5.8 |
|
|
(13.5) |
15.5 |
|
|
Overseas |
corporation tax |
8.3 |
10.4 |
|
|
adjustments in respect of prior years |
(23.2) |
- |
|
|
(14.9) |
10.4 |
|
|
|
tax on share of profits of joint ventures and |
|
|
|
|
associates |
0.2 |
2.3 |
|
Total
current tax |
(28.2) |
28.2 |
|
|
Deferred tax |
|
|
|
|
|
origination and reversal of timing differences |
5.6 |
4.8 |
|
|
adjustments in respect of prior years |
(6.9) |
(8.3) |
|
Total
deferred tax |
(1.3) |
(3.5) |
|
|
Tax on
(loss)/profit on ordinary activities |
(29.5) |
24.7 |
|
6. (Loss)/earnings per share
Basic
(loss)/earnings per share is calculated by dividing the (loss)/earnings
attributable to ordinary shareholders by the weighted average number of
ordinary shares in issue during the year, excluding those held in the employee
share ownership trusts.
For
diluted (loss)/earnings per share, the weighted average number of ordinary
shares in issue is adjusted to assume conversion of all dilutive potential
ordinary shares. These represent share options granted to employees where the
exercise price is less than the average market price of the Company's shares
during the year and the conversion of the Convertible Bonds.
Supplementary
(loss)/earnings per share figures are presented. These exclude the effects of
the amortisation of goodwill and also the effects of the exceptional items and
are presented to allow comparison to the prior year on a like-for-like basis.
|
|
2002 |
2001 |
||||
|
|
Weighted |
|
|
Weighted |
Restated |
|
|
(Loss)/ |
ave. no. |
Per share |
Restated |
ave. no. |
Per share |
|
|
earnings |
of shares |
amount |
Earnings |
of shares |
amount |
|
|
£m |
m* |
p |
£m |
m* |
p |
|
|
Basic (loss)/earnings per share |
||||||
|
(Loss)/profit
attributable to |
|
|
|
|
|
|
|
ordinary
shareholders |
(60.1) |
492.1 |
(12.22) |
17.4 |
490.2 |
3.55 |
|
Effect of dilutive securities: |
|
|
|
|
|
|
|
Options ** |
- |
- |
- |
- |
2.1 |
(0.02) |
|
Convertible Bonds *** |
- |
- |
- |
- |
- |
- |
|
Diluted
(loss)/earnings per share |
||||||
|
Adjusted (loss)/profit |
(60.1) |
492.1 |
(12.22) |
17.4 |
492.3 |
3.53 |
|
* |
The number of shares has been reduced
by 1.8m being the weighted average number of shares |
|
|
held by the employee share ownership trusts (2001: 1.8m). |
|
** |
Options are antidilutive in 2002 and have been ignored in
the calculation of diluted loss per |
|
|
share for 2002. |
|
*** |
The Convertible Bonds are antidilutive and have been
ignored in the calculation of diluted |
|
|
(loss)/earnings per share for both years. |
|
|
|
|
|
|
|
|
2002 |
2002 |
2001 |
2001 |
|
Supplementary (loss)/earnings
per share to exclude |
|
|
|
|
|
goodwill amortisation and
exceptional items |
|
|
|
|
|
Weighted average number of shares (millions) * |
|
492.1 |
|
490.2 |
|
|
|
|
|
|
|
|
|
|
|
Restated |
|
|
(Loss)/ |
Per
share |
Restated |
Per
share |
|
|
earnings |
amount |
Earnings |
amount |
|
|
£m |
p |
£m |
p |
|
Basic (loss)/earnings per share |
(60.1) |
(12.22) |
17.4 |
3.55 |
|
Effect of goodwill amortisation |
32.5 |
6.60 |
31.8 |
6.50 |
|
Basic (loss)/earnings per share pre-goodwill |
|
|
|
|
|
amortisation |
(27.6) |
(5.62) |
49.2 |
10.05 |
|
Exceptional items (including
tax |
|
|
|
|
|
effect of £6.1m; 2001: £nil) |
22.3 |
4.54 |
16.7 |
3.40 |
|
Basic (loss)/earnings per share pre-goodwill |
|
|
|
|
|
amortisation and exceptional items |
(5.3) |
(1.08) |
65.9 |
13.45 |
|
|
2002 |
2002 |
2001 |
2001 |
|
|
|
|
|
|
|
Weighted average number of shares (millions) * |
|
492.1 |
|
492.3 |
|
|
|
|
|
|
|
|
|
|
|
Restated |
|
|
(Loss)/ |
Per
share |
Restated |
Per
share |
|
|
earnings |
amount |
Earnings |
amount |
|
|
£m |
p |
£m |
p |
|
Diluted (loss)/earnings per share |
(60.1) |
(12.22) |
17.4 |
3.53 |
|
Effect of goodwill amortisation
|
32.5 |
6.60 |
31.8 |
6.46 |
|
Diluted (loss)/earnings per share pre-goodwill |
|
|
|
|
|
amortisation |
(27.6) |
(5.62) |
49.2 |
9.99 |
|
Exceptional items (including
tax |
|
|
|
|
|
effect of £6.1m; 2001: £nil) |
22.3 |
4.54 |
16.7 |
3.39 |
|
Diluted (loss)/earnings per share pre-goodwill |
|
|
|
|
|
amortisation and exceptional items |
(5.3) |
(1.08) |
65.9 |
13.38 |
7.
Dividends
The Board
is recommending that no final dividend is paid (2001: 7.50p). The total
dividend paid in the year was 2.00p (2001: 9.50p).
8. Reconciliation of operating (loss)/profit to operating
cash flows
|
|
|
Restated |
|
|
2002 |
2001 |
|
|
£m |
£m |
|
Operating (loss)/profit |
(92.1) |
52.9 |
|
Depreciation charges |
74.6 |
73.8 |
|
Goodwill amortisation |
30.7 |
30.1 |
|
Provision against fixed asset investments |
3.0 |
0.3 |
|
(Increase)/decrease in stocks |
(0.5) |
3.1 |
|
Decrease/(increase) in debtors |
10.9 |
(36.3) |
|
Increase/(decrease) in creditors |
9.3 |
(89.8) |
|
Decrease in provisions |
(12.0) |
(9.0) |
|
Cash impact of the termination of operations |
(1.8) |
(17.2) |
|
Cash impact of fundamental reorganisation |
(12.2) |
(18.4) |
|
Net cash inflow/(outflow) from operating activities |
9.9 |
(10.5) |
9. Reconciliation of net cash flow to movement in net debt
|
|
2002 |
2001 |
|
|
£m |
£m |
|
Decrease in cash in the year |
(40.8) |
(76.7) |
|
Cash outflow from decrease in debt and lease financing |
78.1 |
245.4 |
|
Cash inflow from decrease in liquid resources |
(79.7) |
(328.9) |
|
Changes in net debt resulting from cash flows |
(42.4) |
(160.2) |
|
Loans and finance leases acquired with subsidiary
undertakings |
- |
(0.8) |
|
Transfer of Convertible Bonds due 2004 redeemed 30
September 2002, |
|
|
|
settled 3 October 2002 |
8.4 |
- |
|
Transfer of Convertible Bonds due 2004 redeemed 29
September 2000, |
|
|
|
settled 2 October 2000 |
- |
(9.0) |
|
Issue costs of Convertible Bonds due 2004 |
(2.0) |
(2.0) |
|
Capitalisation of finance leases |
(122.4) |
- |
|
Exchange differences |
48.5 |
(6.9) |
|
Movement in net debt in the year |
(109.9) |
(178.9) |
|
Net (debt)/funds brought forward |
(20.0) |
158.9 |
|
Net debt carried forward |
(129.9) |
(20.0) |