NORTHERN FOODS
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE 53 WEEKS ENDED 3 APRIL 2004
 
                                               Before                                  Before
                                             goodwill       Goodwill                 goodwill      Goodwill
                                         amortisation   amortisation             amortisation  amortisation
                                                  and            and                      and           and
                                          exceptional    exceptional              exceptional   exceptional
                                                items          items      Total         items         items      Total
                                             53 weeks       53 weeks   53 weeks      52 weeks      52 weeks   52 weeks
                                                 2004           2004       2004          2003          2003       2003
                                                   £m             £m         £m            £m            £m         £m
Group turnover
- continuing                                  1,362.3              -    1,362.3       1,291.5             -    1,291.5
- acquisitions                                   63.7              -       63.7             -             -          -
Total continuing                              1,426.0              -    1,426.0       1,291.5             -    1,291.5
- discontinued                                  116.1              -      116.1         129.7             -      129.7
Group turnover                                1,542.1              -    1,542.1       1,421.2             -    1,421.2
Cost of sales                                (1,142.2)          (1.5)  (1,143.7)     (1,023.3)        (31.9)  (1,055.2)
Gross profit                                    399.9           (1.5)     398.4         397.9         (31.9)     366.0
Net operating expenses                         (292.9)         (20.5)    (313.4)       (282.3)        (13.1)    (295.4)
Operating profit
- continuing                                    101.3          (17.7)      83.6         113.0          (6.5)     106.5
- acquisitions                                    5.1           (1.3)       3.8             -             -          -
Total continuing                                106.4          (19.0)      87.4         113.0          (6.5)     106.5
- discontinued                                    0.6           (3.0)      (2.4)          2.6         (38.5)     (35.9)
Operating profit                                107.0          (22.0)      85.0         115.6         (45.0)      70.6
Share of associated undertakings                  0.4           (0.2)       0.2           1.4          (0.7)       0.7
Profit on disposal of businesses                    -           11.6       11.6             -          54.0       54.0
Profit on ordinary activities before            107.4          (10.6)      96.8         117.0           8.3      125.3
interest
Net interest payable                            (21.4)             -      (21.4)        (19.5)            -      (19.5)
Profit on ordinary activities before             86.0          (10.6)      75.4          97.5           8.3      105.8
taxation
Taxation on profit on ordinary activities       (15.5)           5.5      (10.0)        (17.9)         12.8       (5.1)
Profit on ordinary activities after              70.5           (5.1)      65.4          79.6          21.1      100.7
taxation
Equity dividends                                (44.6)             -      (44.6)        (44.9)            -      (44.9)
Retained profit for the year                     25.9           (5.1)      20.8          34.7          21.1       55.8
Basic earnings per ordinary share               13.77p                    12.78p        14.81p                   18.73p
Diluted earnings per ordinary share                                       12.56p                                 18.02p
Dividend per ordinary share                                                8.90p                                  8.70p
Average number of shares (million)                                         511.8                                  537.6
 
 
 
 
Analysis of earnings before interest, tax, depreciation and amortisation (EBITDA)
Operating profit before goodwill amortisation
and exceptional items                                   107.0                           115.6
Add: associate                                            0.4                             1.4
         depreciation                                    65.9                            62.7
EBITDA before exceptional items                         173.3                           179.7
 
 
Consolidated balance sheet
AS AT 3 APRIL 2004
 
 
 
                                                                                             3 April           29 March
                                                                                                2004               2003
                                                                                                  £m                 £m
Fixed assets
 
Intangible fixed assets                                                                        64.3               41.4
Tangible fixed assets                                                                         672.4              670.6
Investments                                                                                     4.4               21.5
                                                                                              741.1              733.5
Current assets
 
Stocks                                                                                         78.2               85.1
Debtors                                                                                       230.0              211.6
Investments                                                                                    14.9               10.6
Cash at bank and in hand                                                                       35.0               33.5
                                                                                              358.1              340.8
Creditors: amounts falling due within one year                                                296.9              322.1
Net current assets                                                                             61.2               18.7
Total assets less current liabilities                                                         802.3              752.2
 
Creditors: amounts falling due after more than one year
Convertible subordinated bonds 2008                                                            90.6               90.5
Loans and other creditors                                                                     281.5              232.5
                                                                                              372.1              323.0
Provisions for liabilities and charges                                                         69.5               63.1
 
Net assets                                                                                    360.7              366.1
 
 
 
Capital and reserves
Called-up share capital                                                                       127.1              130.8
Share premium account                                                                          60.0               57.4
Revaluation reserve                                                                             3.7                3.9
Capital redemption reserve                                                                     23.6               19.1
Reserve for treasury shares                                                                   (10.0)                 -
Other reserves                                                                                  6.7                6.7
Profit and loss account                                                                       149.6              148.2
Equity shareholders' funds                                                                    360.7              366.1
 
 
 
 
 
CONSOLIDATED CASH FLOW STATEMENT
FOR THE 53 WEEKS ENDED 3 APRIL 2004
 
                                                                                              53 weeks      52 weeks
                                                                                                  2004          2003
                                                                                                    £m            £m
Net cash inflow from operating activities                                                        154.9         151.6
Returns on investments and servicing of finance:
Interest received                                                                                 19.7           0.4
Interest paid on finance leases                                                                   (0.3)         (0.6)
Other interest paid                                                                              (39.7)        (18.4)
Net cash outflow from returns on investments and servicing of finance                            (20.3)        (18.6)
Taxation                                                                                           2.1          (9.4)
Capital expenditure and financial investment:
Purchase of tangible fixed assets                                                                (76.9)        (80.0)
Sale of tangible fixed assets                                                                      1.3           3.7
Grants received                                                                                    0.5           0.3
Net cash outflow from capital expenditure and financial investment                               (75.1)        (76.0)
Acquisitions and disposals:
Cash outflow on acquisitions                                                                     (32.7)         (4.4)
Cash inflow on disposals                                                                          50.9         145.0
Net cash inflow from acquisitions and disposals                                                   18.2         140.6
Equity dividends paid                                                                            (44.9)        (45.1)
Cash inflow before management of liquid resources and financing                                   34.9         143.1
Management of liquid resources:
Increase in current asset investments                                                             (4.3)         (1.5)
Financing:
New borrowings                                                                                       -          50.0
Revolving credit facility                                                                         70.0        (110.0)
Repayment of other borrowings                                                                    (58.6)        (12.1)
Capital element of finance lease rental payments                                                  (6.7)         (6.4)
                                                                                                   4.7         (78.5)
Purchase of own shares                                                                           (37.1)        (55.0)
Issue of equity share capital net of costs                                                         3.4           0.5
Net cash outflow from financing                                                                  (29.0)       (133.0)
Increase in cash in the year                                                                       1.6           8.6
 
 
 
 
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
FOR THE 53 WEEKS ENDED 3 APRIL 2004
 
                                                                                               53 weeks        52 weeks
                                                                                                   2004            2003
                                                                                                     £m              £m
Increase in cash in the year                                                                       1.6             8.6
Cash outflow from movement in liquid resources                                                     4.3             1.5
New borrowings                                                                                       -           (50.0)
(Increase)/decrease in revolving credit facility                                                 (70.0)          110.0
Repayment of other borrowings                                                                     58.6            12.1
Capital element of finance lease rental payments                                                   6.7             6.4
Changes in net debt resulting from cash flows                                                      1.2            88.6
 
Loans acquired with subsidiary                                                                    (7.4)              -
Loan notes issued on acquisition of subsidiary                                                    (2.0)              -
Exchange adjustments                                                                              (0.5)            1.7
Amortisation of bond and financing costs                                                          (0.1)           (0.2)
Movement in net debt in the year                                                                  (8.8)           90.1
 
Net debt at start of year                                                                       (323.6)         (413.7)
Net debt at end of year                                                                         (332.4)         (323.6)
 
 
 
 
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE 53 WEEKS ENDED 3 APRIL 2004
 
 
                                                                                              53 weeks        52 weeks
                                                                                                  2004            2003
                                                                                                    £m              £m
Profit attributable to equity shareholders                                                        65.4           100.7
Currency translation differences                                                                  (2.7)           12.1
Total recognised net gains for the year                                                           62.7           112.8