MyTravel Group plc
Results for the year ended 30 September 2003sOPERATING REVIEW
Trading performance
MyTravel made an operating loss for the year of £358.3m before exceptional items
and goodwill. Of the deterioration year on year of £337.9m, management estimates
that a significant part relates to non-comparable items most of which occurred
in the UK business.
Specific items in the current year amounting to £65.7m, which are
non-comparable, comprise the effects of foreign exchange rates (£24.2m),
business disposals (£13.3m), administration costs associated with the
refinancing of the Group's borrowing facilities (£16.6m), the effect of charging
the cost of guaranteed accommodation on a straight line basis as explained last
year (£8.4m) and the state aid to airlines received last year following
September 11 (£3.2m).
Other non-comparable items relate to a range of mainly balance sheet (non-cash)
items where changes in circumstances during the year, including the more focused
strategy developed following the Strategic Review and the subsequent
restructuring of the Group, have led management to review and re-assess the
carrying value of those balance sheet items, both assets and liabilities. The
Board has taken a more conservative approach to measuring the Group's financial
performance than under past circumstances and this also had a significant impact
on these results.
The external trading environment was exceptionally difficult in all our markets
- the UK, Northern Europe and North America. The Iraq war deterred people from
travelling overseas in all three markets; the SARS epidemic had a severe impact
on trading in Canada; and unusually hot weather in the UK and Scandinavia
depressed demand for foreign holidays. The Group's structural issues prevented
us from responding effectively to this trading environment.
The UK contributed almost all of the underlying trading deterioration. The
Group's performance was exacerbated by poor management information systems,
which impacted our ability to make reliable forecasts and take appropriate
action. Poor pricing decisions made in 2002 and weaker than expected trading in
the late summer period contributed to lower margins, despite a reduction in
capacity. Cost control lapses in the airline also had an adverse impact on
margins.
Refinancing and disposals
During the year we have made good progress with the implementation of the
strategic plan for the turnaround of the Group. In June we announced the
refinancing of £1.3 billion of debt and contingent facilities to at least May
2006. In September we secured the agreement of convertible bondholders to extend
the maturity of the bonds (£221.6m) to January 2007. We also obtained the
consent from our lenders to retain the proceeds of planned disposals within the
Group, and since October we have agreed the sale of four major US businesses for
a total of more than $250m gross cash proceeds (c. £144m). Three of these
disposals, WCT, US Cruise and Lexington, completed in November 2003 realising
$171m of gross cash (c. £99m). The sale of Auto Europe is expected to complete
later this month.
In addition, we have also recently completed the disposal of a number of
high-risk, loss-making businesses, including the Group's German and Polish
operations, and SunTrips and Vacation Express in the US. These disposals
resulted in an exceptional loss of £75.6m in the year just ended.
Current trading
Bookings for winter 2003/04 are currently in line with our expectations, with
margins improved over the prior year. Bookings for summer 2004 are currently
down on the prior year but in line with the rest of the industry and margins are
better than the prior year.
Bookings in our UK charter businesses for winter 2003/04 are 17% down year on
year, but with selling prices currently 10% better. The reduction in bookings
largely reflects the reduced capacity on sale. Although it is still early,
bookings for summer 2004 are satisfactory and at acceptable margins.
Bookings in our Northern European charter business for winter 2003/04 are 11%
down year on year but with selling prices currently 5% better. The reduction in
bookings reflects the reduced capacity on sale. Brochures for summer 2004 have
only recently been launched.
Charter bookings in North America for winter 2003/04 are currently 11% ahead of
the prior year and selling prices are 3% down. Summer 2004 brochures have only
recently been launched.
Outlook
During the year, we formulated a strategic plan which identified actions which
had to be achieved to turn around the business - reducing the proportion of
fixed costs, improving utilisation of assets and restructuring the UK charter
and distribution business. We are vigorously implementing these actions.
However, it is clear that we had significantly under-estimated the extent of the
UK restructuring issues and the scale of the turnaround required is larger than
originally envisaged.
We have made significant progress in implementing the actions that will underpin
the required turnaround. We have retired our older aircraft and increased the
utilisation of our fleet. The level of guaranteed accommodation particularly in
our UK business has been reduced and we have improved our flexibility to respond
to changes in market conditions. Further actions in these areas are planned.
The sale of Germany and other loss-making businesses has reduced risk. In the
UK, we are integrating nine of the businesses including Airtours Holidays,
MyTravel Airways UK, Going Places and other distribution channels, with the aim
of simplifying the structure and the accounting. We have substantially improved
our management information systems. Our approach to trading is more rigorous. We
have significantly upgraded our yield management process in the UK. We are ahead
of schedule on delivering cost savings and believe they are now likely to exceed
the originally identified £150m in 2005. Finally, we continue to focus on cash
management.
It will take time for these measures to have a significant effect on our
financial results. In the short to medium term, the Group's earnings and cash
flows will remain subject to significant risk due to the high fixed cost
structure and high levels of indebtedness and we will have to continue to manage
our resources carefully. Although the Group still faces significant challenges,
which will take time to overcome, with the cash generated from the US disposals
and the measures outlined above, the Board believes that the turnaround can be
achieved, and we are working towards a significant improvement in 2004 and a
return to profitability in 2005.
FINANCIAL REVIEW
Group Results
Operating results before exceptional items and goodwill amortisation
Turnover, including our share from Joint ventures and associates was £4,225.3m
(2002: £4,413.3m). The reduction year on year reflects the reduced capacity on
sale and lower average selling prices achieved.
The operating loss in the year, before exceptional items and goodwill, was
£358.3m (2002: loss of £20.4m).
Exceptional items and goodwill amortisation
Total net exceptional costs in the year amounted to £472.7m (2002: £28.4m). Of
this, £373.9m has been classified as exceptional operating items in the Group
results and includes £359.3m as a result of our comprehensive review of the
carrying value of goodwill and certain other assets in the Group consolidated
balance sheet.
In addition, £22.5m has been classified as exceptional finance charges and
relates to advisory costs incurred in securing the refinancing of the Group
during the year.
The remaining £76.3m has been classified as non-operating exceptional items.
During the year, the Group disposed of some of its non-core businesses,
including its operations in Germany and Poland, Leger Holidays, MyTravel
Financial Services and London Travel Service in the UK, and the Oasis Lakes
vacation ownership resort in the US. These disposals resulted in a net
exceptional loss for the Group of £75.6m, including £81.4m loss relating to the
disposal of our German operations and £6.1m profit on the disposal of MyTravel
Financial Services.
A segmental analysis of all of the exceptional items is given in the notes to
the accounts included with this announcement.
Goodwill amortisation in the period amounted to £26.9m (2002: £32.5m). The
reduction year on year reflects both the disposal of certain businesses and the
reduction in carrying value following the balance sheet review.
Finance charges before exceptional items
Net finance charges before exceptional items in the year were £53.0m (2002: net
finance income of £8.5m). Included in the net charge for 2003 is £25.5m in
respect of the refinancing of the Group in November 2002 and June 2003. Of this
amount, £12.7m relates to upfront and amendment fees; £9.0m to increased margins
and recurring fees; £2.1m to the accelerated non-cash write-off of set-up costs
on the original facilities; and £1.7m represents accruals for success fees and
make-whole payments that will arise in May 2006 or, if earlier, the date the
respective facilities are refinanced.
The classification of the Group's Minority Interest Preference Shares (MIPS) to
debt during the year has also resulted in £11.5m of interest payable that would
previously have been classified as non-equity minority interest dividends. In
addition, the prior year finance income figure included a £9.3m foreign exchange
gain (2003: £1.0m) arising on the transfer of three aircraft from operating
leases to finance leases, together with £4.9m profit on the buy-back of
Convertible Bonds. Adjusting for all of the above, the underlying increase in
finance charges year on year was £11.3m and reflects increased borrowings and
lower cash balances in the Group.
Taxation
The tax credit in the year on the loss on ordinary activities amounted to £2.8m
(2002: £29.5m). Tax payable in overseas subsidiaries has been offset by prior
year credits in the UK. No credit has been taken for £640m of current year
losses.
Loss per share and dividends
Basic and diluted loss per share before exceptional items and goodwill was
85.96p (2002: 1.08p).
Given the poor trading results reported here and the restrictions placed upon us
as a result of the refinancing of the Group's revolving credit facility, the
Board will recommend that no final dividend should be paid. As a result, the
total dividend for the year will be nil p (2002: 2.00p).
Segmental Review of Operating Results
Continuing operations
UK
Turnover from our UK businesses fell by 5% in the year to £2,340.5m (2002:
£2,473.4m). The reduction year on year partly reflects a 12% reduction in risk
capacity on sale for the financial year, which was implemented following the
poor trading in the prior year.
The operating loss before exceptional items and goodwill was £325.4m (2002:
£24.1m). The results are significantly affected by the non-comparable items
described in the Operating Review, most of which impact on the UK segment.
External factors which impacted the whole travel industry, including the war in
Iraq, adversely affected customers' appetite to book early for summer 2003,
particularly in the peak booking period of January to March. In addition, the
unusually good summer weather at home meant that people were not motivated to
book holidays abroad. The second half operating performance was also adversely
impacted by lower margins on brochure-priced holidays than had been expected
(due to poor pricing decisions taken last year, for the summer 2003 programme)
and cost control lapses in the UK airline.
The simplification of the UK structure and the actions already taken to reduce
risk, both of which are detailed in the Operating Review, should ensure that we
are well placed to prevent such internal issues from recurring and are better
placed to deal with future changes in market conditions.
Other Europe
At 30 September 2003, the Group disposed of its loss-making business in Germany.
The Other Europe continuing segment now consists only of our continuing
operations in Northern Europe. The results of our German operations have been
reclassified to discontinued operations.
Other Europe - Northern Europe
Turnover from our Northern European operations amounted to £886.4m (2002:
£914.6m), a reduction of £28.2m, or 3% year on year. Turnover in local currency
has, however, declined by 12%, reflecting the reduction in capacity on sale for
the financial year. Demand was significantly impacted by the war in Iraq, the
strength of the euro, and the exceptionally good summer weather in Scandinavia
which encouraged many potential customers to holiday within the region.
The operating loss before exceptional items and goodwill was £4.0m (2002: profit
of £6.7m). The adverse variance year on year of £10.7m comprises mainly
non-comparable items as described in the Operating Review. The remaining trading
deterioration reflects the lower sales volumes and poor utilisation of
guaranteed accommodation. Reduced expenditure on marketing and lower overhead
costs only partially mitigated the reduction in margin.
North America
Reported turnover from our North American operations amounted to £565.6m (2002:
£568.6m). In local currency, however, turnover has increased by 9%, reflecting
the increased capacity and selling prices in our charter operations.
The operating loss before goodwill and exceptional items amounted to £0.1m
(2002: profit of £21.1m). The adverse variance year on year of £21.2m includes a
significant proportion of non-comparable items as described in the Operating
Review. Trading in the second half of last year showed the signs of recovery
from the events of 11 September, which continued into the first half of 2003.
However, the Iraq war and economic uncertainty halted the recovery in early
spring. Security concerns resulted in unwillingness amongst customers to book
holidays too far in advance of travel, leading to downward pressure on margins.
In particular, there was a drop in demand for travel to Europe as a result of
terrorist threats and the weakening of the dollar against the euro which
adversely impacted mix and margin. The SARS epidemic also severely impacted
trading in our Canadian operations.
Joint Ventures & Associates
Joint ventures and associates consist of Hotetur, Tenerife Sol, our credit card
joint venture and our investment in Aqua Sol. During the year these businesses
contributed £7.3m to operating profit before exceptional items and goodwill
(2002: £7.1m). The increase year on year is attributable to improved performance
in Hotetur and Tenerife Sol, offset by a deterioration in Aqua Sol where
occupancy of the hotels it operates in the Eastern Mediterranean suffered as a
result of the war in Iraq and continued terrorism threats in the Middle East.
Discontinued operations
Other Europe - Germany
On 30 September 2003, the Group disposed of its German operations, Frosch
Touristik GmbH. This business has been classified as a discontinued operation in
the Group's profit and loss account and the prior year has been restated
accordingly.
Turnover in the year in our German operations was £397.7m (2002: £422.6m), a
reduction of £24.9m, or 6% year on year. The conflict in Iraq, together with
weak economic conditions in Germany, significantly affected people's willingness
to travel, putting pressure on both volumes and prices. This was offset by the
benefits of the cost reduction programme introduced last year. The impact of the
strong euro on translation resulted in an increased operating loss before
exceptional items and goodwill of £36.1m (2002: £31.2m).
Balance sheet
Net liabilities at 30 September 2003 were £672.6m compared with net assets at 30
September 2002 of £386.7m. The change year on year largely reflects the losses
in the year, including the impact of our balance sheet review, and the
classification of the MIPS as long term borrowings.
Balance sheet review
During the first half of the year, the Group undertook a review of the carrying
value of goodwill and certain other assets in the Group consolidated balance
sheet. The completion of our Strategic Review, planned reductions in future
capacity, and decisions made regarding the future utilisation of certain assets
required us to re-evaluate the carrying values. As a result of these factors, we
made non-cash write-downs and provisions at the half year amounting in aggregate
to £283.6m. The largest elements of this related to provisions in respect of the
carrying value and future obligations for certain aircraft and cruise ships and
to reductions in the carrying value of goodwill and investments.
The carrying value of goodwill and other investments was reduced by £131.6m. Of
this £67.7m related to our German operations which have been disposed of at 30
September 2003, resulting in a loss on disposal of £81.4m. The carrying value of
certain other investments and goodwill was reduced by £63.9m. A provision of
£105.1m was made in respect of certain cruise ships and aircraft to reflect
changes to the market value of these assets and their earning potential. The
remainder of the write-downs and provisions of £46.9m related to the realisable
value of a number of assets, including certain non-core properties.
Following the half year review, the Group has revisited the balance sheet review
exercise in the light of more up-to-date information, resulting in additional
write-downs and provisions of £75.7m. The Group's decision to permanently
withdraw the DC10-10 aircraft from service at the end of the summer 2003 season
resulted in further impairments and provisions of £24.9m. The re-calculation of
the carrying value of our remaining aircraft fleet and cruise ships assets in
the light of more up-to-date information on market values and future expected
operating performance resulted in a reduction in the provisions made at the half
year of £15.7m. In addition, the carrying value of goodwill and investments in
certain of the US and hotel businesses was re-assessed resulting in further
impairments of £62.2m.
Classification of MIPS
During the year, the Board reviewed the treatment in the Group's consolidated
balance sheet of the 7.51% undated preference shares issued by Airtours Channel
Islands Limited. This financing is provided by a group of banks and required
refinancing by November 2004. The refinancing has been dealt with as part of the
overall £1.3 billion refinancing and has consequently now been extended to May
2006.
As a result of modifications to the arrangements, which have been made since the
last financial year end, the MIPS have been classified as creditors due after
one year in the balance sheet of 30 September 2003. The impact on the balance
sheet is to reduce net assets by £208.3m. The impact on the profit and loss
account for the year has been to classify £11.5m of the dividend payable in the
period as interest payable. All future dividends payable (£15.8m annually) will
be treated as an interest expense in the Group's accounts.
Cash balance and cash flow
Net cash outflow from operating activities in the year amounted to £109.4m
compared with an inflow in the prior year of £9.9m. This reflects the increased
operating losses suffered, offset by the continued careful management of working
capital resources. Other major cash outflows during the year include £78.4m on
the purchase of essential tangible fixed assets; a net £56.1m outflow from
interest and finance charges; and £34.9m of finance lease capital and interest
payments. Inflows in the period included £29.9m from the sale of fixed assets.
In addition, £220.0m was borrowed under the Group's revolving credit facility.
As a result of the above, cash and deposits at 30 September 2003 were £254.9m
(2002: £292.7m). Careful cash management will continue to be a key focus for the
Group in the future.
Refinancing
In June 2003, the Group secured the refinancing of £1.3 billion of facilities.
The facilities refinanced include:
• £250m revolving credit facility;
• £400m bonding facility;
• US$100m (£60.2m) US private placement ('USPP');
• £210m MIPS; and
• certain bilateral facilities for the issue of letters of credit,
guarantees, bonds and similar instruments and certain leasing
transactions.
The maturity date of the above facilities, to the extent that they would mature
or fall due to be redeemed prior to 31 May 2006, has been extended to at least
31 May 2006. The USPP will also now mature on 31 May 2006. The financial
covenants have also been amended to better reflect the Group's revised business
expectations. Most decisions of the banks and other creditor institutions under
these facilities require a 66 2/3% majority by commitment across all facilities,
apart from certain matters which require 100% agreement.
An amendment fee equal to 1% was paid in respect of each of the facilities. A
success fee is payable on the maturity date, or if earlier, the date on which
such facilities are refinanced. The success fee (which is payable in cash, or at
the Company's option, in shares) is based on a percentage of the increase, from
a base of £40m, in the Company's market capitalisation. Such percentage starts
at 2.5% (as at 6 December 2003) and increases to approximately 15% by May 2006
on a straight line basis and is subject to a cap on the total fee payable of
£65m. In addition, the USPP holders are entitled to a make-whole payment as a
result of the repayment prior to the original maturity date of that debt. No new
securities or guarantees have been granted as part of the refinancing
arrangements.
Revisions to the June refinancing agreement were announced on 29 September 2003.
The revised terms include the payment of an additional consent fee on the
maturity of the facilities in May 2006 or, if earlier, the date on which such
facilities are refinanced. The consent fee (which is payable in cash, or at the
Company's option, in shares) is based on a percentage of the increase, from a
base of £50m, in the Company's market capitalisation. Such percentage starts at
zero (at 29 September 2003, the date of signing) and increases to approximately
13.5% by May 2006 on a straight line basis. In return, the lenders consented to
the retention by the Company of the proceeds arising on certain disposals
(including the US Cruise, Auto Europe and WCT disposals) and agreed to the
amendment of certain covenants.
In addition to the above, in September 2003, agreement was reached to refinance
the Group's £221.6m of Convertible Bonds. As a result of the amendment to the
terms of the bonds:
• the maturity date was extended from 5 January 2004 to 5 January 2007;
• the interest rate was increased from 5.75% to 7.00% per annum;
• a success fee calculated on an equivalent basis to that under the
refinancing referred to above (subject to a cap on the total fee
payable of £11m) is payable (in cash, or at the Company's option, in
shares) on the earlier of the date on which the Bonds have been
redeemed in full and 5 January 2007. The success fee will be zero if
the Bonds are redeemed in full prior to 16 March 2004;
• 22,164,779 shares were issued to bondholders on 21 October 2003 in
exchange for approximately £2.2m of Bonds; and
• 93,089,831 warrants to subscribe for shares at a price of 10p per share
were issued to bondholders on 21 October 2003, of which 27,325,279 have
been exercised to date.
The total costs incurred in 2003 in relation to the Group's refinancing were
£64.6m, of which £4.6m represents non-cash write-downs and accruals, and £44.4m
represents upfront fees and advisory costs. Management estimate that the
annualised recurring incremental costs associated with the refinancing will be
approximately £41m, including £14m of non-cash accruals for success fees and the
USPP make-whole payments.
Change of accounting reference date
The Board has decided in principle that it will change the accounting reference
date to 31 October so that the current reference period will cover thirteen
months. This change will give the Company a financial year end that ends at the
same date as the summer season. The change will be confirmed when the Company
has obtained the required approval of certain of its lenders.
Group Profit and Loss Account
Pre-goodwill Pre-goodwill
and and
exceptional exceptional
operating operating
items Total items Total
Year ended 30 September 2003 2003 2002 2002
£m £m £m £m
Turnover: Group and share of joint ventures'
Continuing operations 3,827.6 3,827.6 3,990.7 3,990.7
Discontinued operations 397.7 397.7 422.6 422.6
4,225.3 4,225.3 4,413.3 4,413.3
Less: share of joint ventures' turnover
Continuing operations (35.1) (35.1) (34.1) (34.1)
Group turnover 4,190.2 4,190.2 4,379.2 4,379.2
Cost of sales (3,774.4) (3,800.0) (3,731.0) (3,760.5)
Gross profit 415.8 390.2 648.2 618.7
Net operating expenses pre-goodwill amortisation (781.4) (1,102.7) (675.7) (680.1)
Goodwill amortisation (25.6) (30.7)
Net operating expenses (781.4) (1,128.3) (675.7) (710.8)
Operating (loss)/profit
Continuing operations (329.5) (619.1) 3.7 (52.0)
Discontinued operations (36.1) (119.0) (31.2) (40.1)
Group operating loss (365.6) (738.1) (27.5) (92.1)
Income from interests in joint ventures
and associates
Joint ventures - continuing operations 6.2 6.2 5.2 5.2
- exceptional operating items (9.5) -
- goodwill amortisation (1.0) (1.2)
Associates - continuing operations 1.1 1.1 1.9 1.9
- exceptional operating items (17.5) -
- goodwill amortisation (0.3) (0.6)
Group and share of joint ventures'
and associates' operating loss (358.3) (759.1) (20.4) (86.8)
Exceptional items
Profit/(loss) on sale of subsidiary undertakings
- continuing operations 5.8 9.6
- discontinued operations (81.4) -
Profit/(loss) on sale of tangible fixed assets
- continuing operations 1.9 0.6
- discontinued operations (0.2) (0.4)
Provision for losses on terminated operations - (2.5)
Losses on terminated operations (2.4) (2.6)
Less utilisation of provision - 0.8
Loss on ordinary activities before
finance charges (835.4) (81.3)
Finance charges (net)
Group (51.9) 9.8
Exceptional finance charges (22.5) -
Joint ventures and associates (1.1) (1.3)
Loss on ordinary activities before tax (910.9) (72.8)
Tax on loss on ordinary activities 2.8 29.5
Loss on ordinary activities after tax (908.1) (43.3)
Equity minority interests (0.4) (0.1)
Non-equity minority interests (4.7) (16.7)
Loss for the financial year (913.2) (60.1)
Dividends - (9.8)
Transfer from reserves (913.2) (69.9)
Loss per share
Basic & diluted (185.51p) (12.22p)
- pre-goodwill amortisation (180.05p) (5.62p)
- pre-goodwill amortisation and exceptional items (85.96p) (1.08p)
Group Balance Sheet
At 30 September 2003 2002
£m £m
Fixed assets
Intangible assets - goodwill 277.8 490.4
Tangible assets 367.3 489.6
Joint venture undertakings
Share of gross assets 84.6 70.8
Share of gross liabilities (59.2) (51.3)
Goodwill 11.7 22.2
37.1 41.7
Investments in associated undertakings 13.7 30.1
Other investments 0.4 11.7
51.2 83.5
Total fixed assets 696.3 1,063.5
Current assets
Stocks 11.3 14.0
Debtors: amounts falling due within one year 431.9 556.0
Debtors: amounts falling due after one year 140.4 168.2
Cash and deposits 254.9 292.7
838.5 1,030.9
Creditors: amounts falling due within one year (1,230.6) (1,165.4)
Net current liabilities (392.1) (134.5)
Total assets less current liabilities 304.2 929.0
Creditors: amounts falling due after one year
Convertible debt (221.6) (219.9)
Other creditors (650.9) (228.8)
(872.5) (448.7)
Provisions for liabilities and charges (104.3) (93.6)
Net (liabilities)/assets (672.6) 386.7
Capital and reserves
Called up share capital 49.5 49.5
Share premium account 113.9 113.9
Capital redemption reserve 3.2 3.2
Other reserves 18.0 18.0
Profit and loss account (858.6) (8.1)
Equity shareholders' (deficit)/funds (674.0) 176.5
Equity minority interests 1.4 0.7
Non-equity minority interests - 209.5
(672.6) 386.7
Group Cash Flow Statement
Year ended 30 September 2003 2002
£m £m
Net cash (outflow)/inflow from operating activities (109.4) 9.9
Dividends received from associated undertakings 1.3 2.4
Returns on investments and servicing of finance
Interest received 25.4 41.2
Interest paid (81.5) (32.9)
Interest element of finance leases (6.9) (7.9)
Dividends paid on undated preference shares (5.9) (15.8)
Minority interests (0.2) (0.3)
Net cash outflow from returns on investments
and servicing of finance (69.1) (15.7)
Tax (paid)/received (21.3) 0.6
Capital expenditure and financial investment
Purchase of tangible fixed assets (78.4) (70.1)
Purchase of fixed asset investments - (1.8)
Sale of tangible fixed assets 29.9 30.1
Loans to joint venture undertaking repaid - 18.7
Net cash outflow from capital expenditure and
financial investment (48.5) (23.1)
Acquisitions and disposals
Purchase of subsidiary undertakings (1.4) (8.5)
Acquisition expenses - (0.6)
Proceeds less cash at bank and in hand relating to
disposal of subsidiaries (0.8) 35.5
Investment in joint venture and associated undertakings - (0.1)
Net cash (outflow)/inflow from acquisitions
and disposals (2.2) 26.3
Equity dividends paid - (46.8)
Cash outflow before management of liquid resources
and financing (249.2) (46.4)
Management of liquid resources
Movement on term deposits 43.2 79.7
Net cash inflow from management
of liquid resources 43.2 79.7
Financing
Issue of shares - 4.0
Repayment of undated preference shares (1.0) -
Redemption of Convertible Bonds due 2007 (8.4) (45.0)
Loan facilities utilised/(repaid) 228.6 (14.3)
Capital element of finance lease rental payments (28.0) (18.8)
Net cash inflow/(outflow) from financing 191.2 (74.1)
Decrease in cash in the year (14.8) (40.8)
Group Statement of Total Recognised Gains and Losses
Year ended 30 September 2003 2002
£m £m
Loss for the financial year (913.2) (60.1)
Currency differences on foreign currency net investments 10.3 (2.9)
Total recognised gains and losses relating to the year (902.9) (63.0)