ROYAL DOULTON PLC
 
Balance Sheets
 
As at 31 December 2002
 Group Company
 2002 2001 2002 2001
 £m £m £m £m
Fixed assets
Intangible assets 1.0 - - -
Tangible assets  23.4 36.3 - -
Investments 0.2 - 10.5 17.0
 24.6 36.3  10.5 17.0
Current assets
Stocks 34.3 43.3 - -
Debtors 19.9 22.7 15.1 21.1
Assets held for resale 4.1 - - -
Cash at bank and in hand 5.0 5.9 20.7 1.4
 63.3  71.9 35.8 22.5
Creditors: amounts falling due within one year (23.3) (56.6) (3.1) -
Net current assets 40.0 15.3 32.7 22.5
Total assets less current liabilities 64.6 51.6 43.2 39.5
Creditors: amounts falling due after more than one (14.4) (0.9) - -
year
Provisions for liabilities and charges (15.5) (7.8) - -
Net assets 34.7 42.9 43.2 39.5
Capital and reserves
Called up share capital 85.6 83.1 85.6 83.1
Share premium account 50.1 33.9 49.9 33.7
Capital reserve 1.1 1.1 0.3 0.3
Other reserve  - - 6.0 6.0
Profit and loss account (103.2) (76.4) (98.6) (83.6)
Equity shareholders' funds 33.6 41.7 43.2 39.5
Equity minority interests 1.1 1.2 - -
 34.7 42.9 43.2 39.5
 
 
 
Consolidated Cash Flow Statement
 
For the year ended 31 December 2002
 2002 2001)
 £m £m
Net cash outflow from operating activities (10.0) (3.5)
Returns on investments and servicing of finance:
Dividend paid to minority interest - (0.6)
Interest received 0.2 0.1
Interest paid (1.7) (2.0)
Interest element of finance leases  - (0.1)
Net cash outflow from returns on investments and servicing of finance (1.5) (2.6)
Taxation - (0.9)
Capital expenditure and financial investment:
Purchases of tangible fixed assets (2.5) (2.2)
Disposal of assets 8.7 -
Purchase of rights on own shares for long term incentive plan (0.2) -
Net cash inflow/(outflow) from capital expenditure and financial 6.0 (2.2)
investment
Acquisitions and disposals:
Purchases of shares in Indonesian subsidiary (1.4) -
Disposal of Caithness Glass subsidiary - 5.3
Cash disposed of with subsidiary  - (0.1)
Net cash (outflow)/inflow from acquisitions and disposals (1.4) 5.2
Net cash outflow before financing (6.9) (4.0)
Financing:
Issue of share capital net of costs 18.7 -
(Decrease)/Increase in borrowings (12.2) 5.2
Principal payment under finance leases  (0.3) (0.5)
Net cash inflow from financing 6.2 4.7
(Decrease)/Increase in cash during the year (0.7) 0.7
 
 
 
Statement of group total recognised gains and losses
For the year ended 31 December 2002
 2002 2001
 
For the year ended 31 December  £m £m
Loss for the financial year (25.6) (22.4)
Currency translation differences on foreign currency net investments (1.2) (0.2)
Total recognised gains and losses relating to the year (26.8) (22.6)
 
 
 
Reconciliation of Net Cash Flow to movement in Net Debt
 
For the year ended 31 December 2002
  2002 2001
 £m £m
(Decrease)/Increase in cash in the year (0.7) 0.7
Cash inflow/(outflow) from debt and lease financing 12.5 (4.7)
Change in net debt resulting from cash flows 11.8 (4.0)
Exchange differences  1.5 (0.3)
Movement in net debt in the year 13.3 (4.3)
Net debt at 1 January (24.3) (20.0)
Net debt at 31 December (11.0) (24.3)
 
 
 
Notes on the 2002 Preliminary Results
 
For the year ended 31 December 2002
 
 
 1. Results
 
 This preliminary announcement does not represent statutory accounts of
 the Company.
 
 The preliminary results for the year ended 31 December 2002 have been
 extracted from the audited accounts, which have not yet been delivered
 to the Registrars of Companies. The 2001 results are extracted from the
 financial statements of the Company for the year ended 31 December 2001,
 which carry an unqualified audit report and did not contain a statement
 under Section 237(2) or Section 237(3) of the Companies Act, and have
 been delivered to the Registrar of Companies. The 2002 Annual Report
 will be posted to shareholders during April 2003.
 
 2. Loss per share and diluted loss per share
 
 The calculation of loss per share and diluted loss per share is based
 on:
 
 2002 2001
Loss for the financial year £25.6m £22.4m
Normal weighted average number of shares in issue 286.9m 119.6m
Diluted weighted average number of shares in issue 286.9m 119.6m
 
 
 
 
 3. Exceptional restructuring costs
 
 Operating exceptional charges totalled £13.2m (2001: £6m) made up of £11.5m
 in respect of redundancies and other staff reductions (of which £4.1m was
 paid at the year end), £1.6m in respect of a provision for lease
 terminations, impairment charge £0.8m and £0.4m for other restructuring
 costs reduced by £0.8m of other operating income from the sale of museum
 pieces and £0.3m in respect of a stock provision release.
 
 Post operating exceptional credits of £4.2m (2001: £nil) comprise a £0.9m
 profit arising from terminating the Regent Street, London lease, a profit of
 £2.1m from the sale of the North American properties, and a profit of £2.6m
 in respect of the final payment from the sale of Minton House, offset by a
 loss of £1.4m in respect of the closures of the Baddeley Green and Printing
 sites.
 
 
 
 4. Profit/(loss) on disposals
 
 2002 2001
  Caithness
 Other Glass
 Assets Total
 £m £m
Cash proceeds received up to 31 December 2002 8.9 5.7
Deferred consideration  - 0.2
Total consideration 8.9 5.9
Net book value of assets sold
  
 Fixed assets 4.3 2.7
 
 
 Stock  - 2.1
 
 
 Debtors - 0.7
 
  
 Creditors - (1.4)
 
 
 Cash  - 0.1
 
 
 Total 4.3 4.2
 
Goodwill written back - 2.2
Expenses 0.4 0.4
Total  4.7 6.8
Profit/(loss) on disposal 4.2 (0.9)
Cash proceeds received 8.9 5.7
Expenses paid  (0.2) (0.4)
Net cash inflow 8.7 5.3
 
 
 5. Reconciliation of movement in equity shareholders' funds
 
  2002 2001
 
For the year ended 31 December £m £m
Opening equity shareholders' funds  41.7 62.1
Loss for the financial year (25.6) (22.4)
Goodwill written back on disposal of subsidiary - 2.2
New Capital issued 2.5 -
Share premium on new shares issued (net of expenses) 16.2 -
Other recognised gains and losses relating to the year  (1.2) (0.2)
Net reduction in equity shareholders' funds (8.1) (20.4)
Equity shareholders' funds at 31 December 33.6 41.7
 
 
 6. Reconciliation of operating loss to operating cash flows
 
 2002 2001
 £m £m
Operating loss (27.9) (18.4)
Payment of fundamental restructuring costs (0.1) (0.8)
Depreciation, impairment and other amortisation  5.5 6.1
Loss on sale of fixed assets - 0.2
Stocks decrease 7.9 8.9
Debtors decrease  2.1 3.9
Creditors increase/(decrease) 2.5 (3.4)
Net cash outflow from operating activities (10.0)  (3.5)
 
 
 
 
 
 7. Board approval
 
 
 This preliminary announcement was approved by the Board on 12 February
 2003.