Regulatory Announcements
09 March 2010
REG-Menzies(John) PLC: Final Results
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REG-Menzies(John) PLC: Final Results - Part 1
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JOHN MENZIES PLC PRELIMINARY RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31
DECEMBER 2009
HIGHLIGHTS
2009 2008
Revenue £1,725.7m £1,667.1m
Underlying profit before taxation (1) £35.2m £30.7m
Profit before tax £22.0m £9.9m
Underlying operating profit by division (2)
Aviation £15.8m £14.1m
Distribution £28.6m £23.9m
Underlying earnings per share (3) 43.8p 31.3p
Basic earnings per share (4) 25.8p (2.0)p
Net Debt £132.3m £182.6m
Free Cashflow £26.9m £(11.1)m
* GROUP
* Underlying profit before taxation up 14.7% to £35.2m
* Net debt reduced by £50.3m to £132.3m
* Strong cash generation produces £26.9m of free cashflow
* MENZIES AVIATION
* Underlying operating profit up 12% to £15.8m
* Rigorous cost base actions deliver significant benefits
* Contract gain momentum within Ground Handling offsets market weakness
* MENZIES DISTRIBUTION
* Underlying operating profit up 19.7% to £28.6m
* Contract gains provide a step change for the business
* Cost and productivity initiatives deliver ahead of expectations
* DIVIDEND
* Dividend recommenced with an interim payment for 2009 of 8p in lieu of a
final dividend (2008 7.56p)
Notes
1 Underlying profit before taxation is defined as profit before taxation,
intangible amortisation and exceptional items.
2 Underlying operating profit includes each division's share of pre-tax
profit from joint ventures and associates, and excludes intangible
amortisation and exceptional items.
3 Underlying earnings per share is profit after taxation and minority
interest, but before intangible amortisation and exceptional items,
divided by the weighted average number of ordinary shares in issue.
4 Basic earnings per share in 2008 includes exceptional costs of £7.3m,
intangible amortisation of £4.3m and a non-recurring (non-cash)
deferred tax charge of £9.3m.
William Thomson, Chairman said:
"2009 has been a year of great contrast but I am delighted that the Group has
come through it in a strong position.
The focus for 2009 was on debt reduction and cost control. I am pleased that
Group net debt has reduced by over £50m, demonstrating both the extremely cash
generative nature of the Group and that management at both divisions rigorously
controlled their cost bases.
Menzies Aviation turned in a resilient performance in the light of significant
market weakness particularly in the cargo handling market and to a lesser
extent in the ground handling market. Management's ability to flex the cost
base, particularly within the larger ground handling business, helped to
mitigate the lost revenue. This combined with new contracts and the
annualisation of contracts won in 2008, allowed the division to return profits
up 12%, which in a distressed marketplace was a very commendable achievement.
Menzies Distribution had a stellar year. Cost initiatives, driven by management
incentive schemes and the full benefit of investment in new technologies,
delivered ahead of expectations. In addition, over £180m of new revenues were
secured following the latest round of publisher negotiations. These contract
gains secure core revenue streams through to 2015 and represent a splendid
achievement.
To reflect the positive progress made during the year and the strong cashflow
performance, the Board has decided to make an interim payment of 8p for the
financial year 2009. The payment will be made on 1 April 2010 to all
shareholders on the register of members as at 19 March 2010. This dividend is
in lieu of a final dividend for 2009.
2010 has started well with both divisions trading ahead of the previous year.
We intend to continue to grow both of our divisions by contract wins and
selective growth opportunities whilst continuing to focus on debt reduction."
For further information:
Paul Dollman, Group Finance Director, John Menzies plc 0131 459 8018
John Geddes, Group Company Secretary, John Menzies plc 0131 459 8180
NOTES TO EDITORS:
1. John Menzies plc is one of Scotland's largest companies. The company has
two operating divisions, Menzies Aviation and Menzies Distribution. Both
divisions operate in distinct business to business sectors where success
depends on providing an efficient, high quality, time-critical service to
their customers and partners.
2. The company was established in 1833 and its head office is in Edinburgh,
Scotland. Today the company is an international business operating in
Europe, North America, India, Australasia and Africa.
3. Menzies Aviation is one of the world's leading independent suppliers of
ground handling services to the aviation market providing ground and cargo
services for many of the world's leading airlines at some of the busiest
international airports. The division employs 15,000 people worldwide
servicing over 500 airline customers at 112 locations in 27 countries, In
2009 the division handled more than 650,000 flight turns, 71 million
passengers and 1.4 million tonnes of cargo.
4. Menzies Distribution is a leading provider of added value distribution and
marketing services to the newspaper and magazine supply chain in the UK.
The division handles around 5.5 million newspapers and 2.2 million
magazines (covering 3,000 magazine titles) each day, with deliveries to
more than 25,000 customers. The division employs 4,000 people at 40 sites
throughout the UK - and is a strongly cash generative business, with around
43% of the newspaper and magazine wholesale distribution market in the UK.
It has a track record of investment in innovation and customer service
delivery.
5. Further information on John Menzies plc can be found at:
www.johnmenziesplc.com, www.menziesdistribution.com and
www.menziesaviation.com.
GROUP PERFORMANCE
Against a backdrop of material reduction in volumes at both divisions the main
focus for the Group in 2009 was cost control and reducing the Group's debt. As
a result, the Group reduced net debt by over £50m in the year and generated an
increase in underlying operating profits of 18.9%.
Menzies Aviation's revenue increased by 1.3% to £507m, with Menzies
Distribution's revenue increasing by 4.5% to £1,219m.
Aviation delivered an underlying operating profit of £15.8m, (£14.1m 2008) up
12% on last year. The results for the year benefited from contract gains, the
annualisation of prior year business development, lower start-up costs, foreign
exchange and continued cost control. This all contributed in mitigating the
impact of volume shortfalls.
Distribution had an excellent year with operating profits of £28.6m, (£23.9m
2008) up 19.7% on last year. Like for like gross profit again fell during the
year particularly, as expected in the magazine categories. This was more than
offset by a very strong performance on costs which net of inflation were
reduced by £5.7m. In addition, new revenue streams, other income and a 53rd
week of trading also helped to increase operating profits.
Corporate costs were reduced by a further £0.5m compared to last year resulting
in an underlying operating profit for the Group of £43.4m, £6.9m of ahead last
year, an increase of 18.9%. The Group underlying profit before tax was £35.2m,
an increase on 2008 of 14.7%.
Cashflow and Investment
Operating cashflow was £57.7m, an increase of £15.2m (c35%) on 2008 reflecting
higher operating profits and a positive working capital movement. The focus on
debt reduction resulted in Capital Expenditure of £15.1m, some £25.3m lower
than the previous year. The reduction in capital expenditure in Aviation along
with excellent working capital control led to Aviation having a higher cash
conversion rate in the year than Distribution. This resulted in a free cash
inflow of £26.9m (or 45p per share) in 2009 compared to a free cash outflow of
£11.1m in 2008. In addition, £16.5m was raised from the sale and refinancing of
assets which, together with a £6.8m translation gain reduced net debt by £50.3m
to £132.3m.
Debt and Interest
Net debt at the year-end was £132.3m which was £50.3m lower than the previous
year-end. The key covenant measure, Net Debt to EBITDA was 2.2 times at the end
of 2009 markedly down from its peak of 3.2 times at the end of last year. The
Group's interest cover increased from 4.9 times in 2008 to 6.7 times in 2009.
External interest costs of £6.4m were £1.3m or 16.9% lower than the previous
year, reflecting lower interest rates and the lower levels of average net debt.
The IAS 19 interest charge of £1.8m is a £4.1m increase on the net credit of £
2.3m in the previous year.
Exceptional Items
Group profit before tax and basic earnings per share were affected by a net
exceptional charge of £6m. The majority of this figure £3.8m related to
redundancy costs in the Netherlands as we downsized our ground handling
operation. A further £1.0m was provided for the disposal of our Joint Venture
investment in Chengdu expected to complete during 2010.
Pensions
The triennial valuation of the Group's defined benefit pension scheme as at 31
March 2009 is currently being finalised. The IAS 19 deficit has increased from
£25.6m in 2008 to £60.8m in 2009 net of deferred tax. The company has reached
agreement with the trustees on the deficit funding which is an additional
payment of £6m per annum (£4.3m net of tax). This will increase annually with
RPI. We are looking at ways of reducing future volatility in the scheme and in
particular, ways to mitigate the future inflation risk.
Dividend
The Board has declared an interim dividend in lieu of a final dividend, of 8p
per share. On the basis of a more normal one thirds, two thirds split this
would represent an annualised dividend of 12p per share. At this level the
annualised dividend would have been covered more than 3.5 times by both
earnings and free cashflow in 2009.
MENZIES AVIATION
2009 2008
Revenue £507.2m £500.9m
Underlying operating profit £15.8m £14.1m
Performance
Menzies Aviation produced a resilient performance with underlying operating
profit up by 12%. This strong set of results was driven by cost control
(including pay freezes and staff reductions), new stations, contract wins and
lower start up costs, but mitigated by the sharp decline in volumes for cargo
handling and cargo forwarding.
The split of revenues continued its shift towards the more profitable and
flexible ground handling business which now represents 59% of divisional
turnover with cargo handling and cargo forwarding representing 26% and 15%
respectively.
The division also contributed to the cash position of the Group with a net cash
inflow of £33.2m. This result was achieved by restricting capital expenditure,
continued improvement in working capital management and moving the ground
handling business to a less cash consumptive operating leasing model.
During the year the division was a net winner of 49 contacts. The net contract
gains will contribute £1.5m on an annualised basis. A high proportion of the
losses were as a result of predatory pricing or route cessation. Just as
important as contract gains are contract renewals and during the year 35% of
EBIT was renewed from key airline contracts that included Alaska Airlines,
Pacific Blue, Thai, Virgin America and Continental.
In April 2010 a franchise agreement held in Peru comes to an end reducing
divisional EBIT by around £1.5m. However, we expect the effect of this will be
offset by the annualised effect of contracts gained during 2009.
Cost Savings
Divisional management reacted quickly to the underlying market conditions and
took rigorous measures to manage the cost base. During the year underlying
headcount was reduced by some 8% as the workforce was flexed to match demand.
Where possible a pay freeze was implemented which helped to restrict labour
costs. Indirect costs were minimised, with back office functions further
centralised into regional shared service centres, which helped produce an
additional benefit of £2m.
Enhanced technology, in particular, a biometric recognition time and attendance
system and a new rostering tool were rolled out across the network during the
year. These tools brought greater standardisation to working practices and
allowed further efficiencies to be driven from the business.
Within ground handling, hours per turn (the key productivity indicator) were
reduced by 5.2% and in cargo handling hours per tonne were held in line with
the previous year despite the volume shortfalls.
Cargo Handling
The cargo handling business experienced a very difficult year. Absolute tonnes
were down 17.8% (lfl 12.4%) as cargo volumes across the world deteriorated.
This market weakness led to over capacity, particularly at the world's major
airports, which encouraged predatory pricing. As a result of this contract
losses, primarily at London Heathrow, also impacted the business. The division
has not participated in predatory pricing as it believes that such actions will
lead to a reduction in value that will not be recovered when the market turns.
Cargo handling at major hub airports is structurally challenged. Within the
portfolio, loss making operations at four major airports have been identified
and are now subject to a fix, close or sell process. Cargo operations at minor
airports, whilst still affected by reduced volumes, were profitable as the
dynamics of these operations differ with little over capacity and reduced
competition.
During the year management reduced the cost base to meet the falling demand,
with five sheds being closed and capacity rationalised where possible. Fourth
quarter 2009 volumes did show signs of recovery, albeit against weak
comparators.
Cargo Forwarding
AMI, the division's freight forwarding business, was impacted by the general
malaise in the cargo market. Bookings were down 11.6% coupled with yield
pressure which saw the margin decline by 0.9% to 2.2%.
Ground Handling
The ground handling business had another good year, with eight new stations
opened during the year. Like for like turns were down 3.5%, but absolute turns
were up 7.6% demonstrating continued contract gain momentum.
During the year the ground handling business model was further developed.
Increasingly the division is utilising a turnkey lease/maintenance solution for
its ground handling equipment requirements. Not only does this reduce cash
consumption, but also leads to a reduction in total cost of ownership through
reduced maintenance costs.
Within the ground handling network the UK business had another strong year,
strengthening its relationship with easyJet through the award of contracts at
Stansted and Bristol. At London Heathrow, operations at Terminal One prospered,
with the award of contracts from Air New Zealand and Swiss. The business now
has a significant presence at Terminal One and will look to expand its customer
base in the adjacent Terminal Three, where it already has Finnair as its launch
customer.
In Continental Europe, operations at Amsterdam were rationalised and a number
of unprofitable airline contracts terminated. As a result some three hundred
employees left the business. Elsewhere management are continuing to synergise
the prior year acquisitions made in Scandinavia, creating a strong platform for
growth. In addition, the regional density created in Spain was expanded with
operations commencing at Barcelona. The division now operates nine stations in
Spain.
The Americas had an excellent year winning new contracts, extending customer
relationships and building a reputation as the quality player in the market.
The contract to handle Alaska Airlines at their Seattle Tacoma hub was renewed,
along with four other stations. In addition, Virgin America at three stations
in the USA and Continental at twenty two stations in Mexico were also renewed.
Operations in South Africa had a successful year with new contracts secured and
the region receiving a number of airline and airport awards for customer
service. In Oceania, the region's largest contract with Pacific Blue to handle
their flights at four airports in New Zealand was renewed and a further six new
contracts were secured in Australia. Operations at Hyderabad and Bangalore, in
India, had a good year and prospects are encouraging.
Strategy
The division has remained true to its strategy and will continue to focus on
working with attractive airlines in attractive markets creating product,
station and regional densities.
The strong growth seen within the ground handling business will continue as the
division pursues a rich pipeline of organic opportunities. This can largely be
achieved by using the new business model which allows the business to grow
without requiring major capital expenditure.
Within cargo handling, the focus will be on addressing the structural issues
that exist at major cargo locations while the cost base is kept as tight as
possible until the market recovers.
MENZIES DISTRIBUTION
2009 2008
Revenue £1,218.5m £1,166.2m
Underlying operating profit £28.6m £23.9m
Performance
2009 was an excellent year for Menzies Distribution. Underlying operating
profits were up 19.7%, largely as a result of excellent cost control, the
delivery of productivity initiatives and the effect of a 53rd week of trading.
In addition, £180m of new revenues were secured in the latest round of
publisher negotiations. The majority of these contracts started, somewhat
earlier than expected, during August following the administration of Dawson
News and the remainder will come on stream during 2010. The 2009 full year
effect of this new business was neutral as the incremental profit was offset by
start up costs.
These contract gains are an excellent achievement and create a step change for
the division and the industry.
Sales
Market conditions during the year remained difficult but sales performed
largely as forecast. Like for like sales of magazines were 5.5% down. Absolute
volumes were up 2.9% reflecting the new contracts which commenced in August.
Newspapers continued their long term trend with like for like sales down 1.6%
with only Saturday sales showing any year on year increase. Absolute volumes
were up 4.1% again reflecting the new contract gains.
Stickers had a good year outperforming expectations following a number of
successful launches. Overall like for like sales were up 3.6% despite having no
major football tournament during the year.
Marketplace and New Business
In August, following the administration of Dawson News, the division at
extremely short notice, took responsibility for a number of contracts that were
to migrate over time from Dawson News. This required operating from five Dawson
News branches for an initial period. Swift action was required to ensure
continuous supply was maintained to all the division's new customers. This was
a major operational challenge but one that was met successfully.
During the year £60m of revenue was gained. This will rise to an annualised
total of £180m when all of the contracts migrate. 34% of the new business will
be serviced from the existing branch network and the remainder of the business
will be serviced by two new hub branches opened in Maidstone and Preston
together with two new newspaper packing spokes. These new branches were
delivered on time and on budget and are producing the high levels of customer
service that is already embedded across the branch network.
As a result of the increased footprint, further rationalisation opportunities
exist and will be pursued during 2010.
The marketplace has now consolidated from three major wholesalers to two. As a
result the division now holds approximately 43% UK market share. In recognition
of this the division launched a service pledge to all our customers. The
division is committed to being the industry leader in terms of the service that
we provide to our publisher and retailer customers. This pledge raises the bar
and the division is committed to delivering its pledge each day.
Cost and Productivity Initiatives
2009 produced another excellent cost and productivity performance with like for
like operating costs reducing by £5.7m. The full benefit of new technologies
helped drive savings together with a Productivity Improvement Plan which
incentivised managers to find efficiencies within their own branches. In
addition, enhanced route planning delivered significant transport benefits.
The implementation of SAP continues. This major project is not without its
challenges but the division remains confident that the project goals will be
met. The financial module is operational and the project is now focussed on
delivering SAP into the branch network during 2010, with full roll out during
2011.
New Revenue Streams
The division continued to develop new businesses. New revenue streams made an
increased contribution to divisional profits, although their growth was
impacted by the challenging marketplace.
D-Cipher, the retail media management business, continued to work with its
existing customers and delivered returns in line with expectations. Accelerated
growth was difficult, largely due to external market conditions and a general
reduction in promotional spend. However, the business model remains fit for
purpose and growth opportunities exist.
The Network, a field marketing business, was hit by the closure of the London
Lite newspaper which it distributed. The distribution contract for the London
Evening Standard was secured but revenues from this new contract do not match
the London Lite loss. This part of its business has been restructured
accordingly and together with its travel and promotional activities will pursue
a number of opportunities during 2010.
Jones Yarrell Leadenhall, the corporate news distribution business, performed
in line with expectations and successfully integrated specialist London
distribution contracts which were secured after Dawson News was placed in
administration.
A new business was launched in conjunction with a German partner, Newslog,
called Menzies Travel Media to service the needs of travellers for printed
media, principally onboard aircraft or within airline lounges. This venture is
still in its infancy but progress so far has been encouraging.
To drive this business segment forward, a subdivision - Menzies Marketing
Services (MMS) - has been created with four businesses now under the MMS banner
and the stewardship of one Managing Director. Each of the businesses has a
niche and it is believed that they can grow market share and develop into
adjacent markets.
Progress continues to be made on gaining more regional press contracts. £8m of
new business was gained in 2010 and there remains a substantial amount of
business to go after.
The joint venture with Eason and Son Ltd in Ireland had a good year.
Operational stability was achieved and Menzies Distribution processes and
standards are now becoming embedded into the culture. A number of new contracts
have been secured and by delivering high levels of customer service it is hoped
that further contracts will be gained.
Office of Fair Trading (OFT)
The OFT announced in September that it was not referring the newspaper and
magazine supply chain to the Competition Commission. The division welcomes this
decision and looks forward to participating in industry groups to help shape
the industry, as all participants look to address the challenges that exist.
Strategy
After a year that has brought a great amount of change the division has clear
objectives. In 2010 the additional new contracts will be integrated into the
business. This enlarged network allows further synergy benefits and these will
be pursued. New ventures will be developed and further efficiencies will be
targeted.
Divisional strategy is set around three pillars:
Pillar 1 - Execute
* fully integrate new business on the back of contract wins
* continue to deliver cost savings and productivity improvements
* develop joint venture in Ireland
Pillar 2 - Redesign
* develop the business to meet the changing business environment
* increase customer focus and continue to improve service
* implement SAP throughout the business, driving further efficiencies
Pillar 3 - Grow & Diversify
* deliver new regional distribution contracts
* expand Marketing Services
* explore acquisition opportunities
OUTLOOK
At Menzies Aviation, the year has started well. Both Cargo and Ground handling
volumes have seen like for like growth in the early weeks of 2010, albeit
against weak comparatives in the previous year.
At Menzies Distribution, sales in the year so far are well up on last year as a
result of the impact of contract gains. Overall trading in the early weeks of
2010 was broadly in line with last year. The focus for the year remains on cost
control, the implementation of the new SAP system and the development of
additional revenue streams.
Overall the Group is planning selectively to grow both divisions using the cash
generated by the businesses whilst continuing to focus on debt reduction and
further improve our financial ratios. We have recommenced dividend payments
which we will look to grow progressively. The Board is looking forward with
confidence and expects the Group to make further progress in 2010.
GROUP INCOME STATEMENT
for the year ended 31 December 2009 (year ended 31 December 2008)
Before
exceptional Exceptional
and other and other 2009
items items Total
Notes £m £m £m
Revenue 2 1,725.7 - 1,725.7
Net operating costs (1,692.1) (9.3) (1,701.4)
Operating profit 33.6 (9.3) 24.3
Share of post-tax results of 9.8 (3.9) 5.9
joint ventures and associates
Operating profit after joint 43.4 (13.2) 30.2
ventures and associates
Analysed as:
Underlying operating profit* 43.4 - 43.4
Non-recurring items 4(a) - (6.0) (6.0)
Intangible amortisation 4(b) - (5.1) (5.1)
Share of interest and tax on - (2.1) (2.1)
joint ventures and associates
Operating profit after joint 43.4 (13.2) 30.2
ventures and associates
Finance income 5 0.6 - 0.6
Finance charges 5 (7.0) - (7.0)
Other finance (charges)/ 3 (1.8) - (1.8)
income - pensions
Profit before taxation 35.2 (13.2) 22.0
Taxation 6 (9.3) 2.6 (6.7)
Profit for the year 25.9 (10.6) 15.3
Attributable to equity 25.9 (10.6) 15.3
shareholders
Earnings per ordinary share 8
Basic 43.8p (17.9)p 25.8p
Diluted 43.8p (17.9)p 25.8p
Before
exceptional Exceptional
and other and other 2008
items items Total
Notes £m £m £m
Revenue 2 1,667.1 - 1,667.1
Net operating costs (1,636.1) (11.6) (1,647.7)
Operating profit 31.0 (11.6) 19.4
Share of post-tax results of 5.1 (1.5) 3.6
joint ventures and associates
Operating profit after joint 36.1 (13.1) 23.0
ventures and associates
Analysed as:
Underlying operating profit* 36.5 - 36.5
Non-recurring items 4(a) - (7.3) (7.3)
Intangible amortisation 4(b) - (4.3) (4.3)
Share of interest and tax on (0.4) (1.5) (1.9)
joint ventures and associates
Operating profit after joint 36.1 (13.1) 23.0
ventures and associates
Finance income 5 2.3 - 2.3
Finance charges 5 (10.0) (7.7) (17.7)
Other finance (charges)/ 3 2.3 - 2.3
income - pensions
Profit before taxation 30.7 (20.8) 9.9
Taxation 6 (12.1) 1.0 (11.1)
Loss for the year 18.6 (19.8) (1.2)
Attributable to equity 18.6 (19.8) (1.2)
shareholders
Earnings per ordinary share 8
Basic 31.3p (33.3)p (2.0)p
Diluted 31.3p (33.3)p (2.0)p
*Underlying operating profit is consistently presented adjusting for
non-recurring exceptional items, intangible amortisation associated with
goodwill impairment on associate assets and contract amortisation, and the
Group's share of interest and tax on joint ventures and associates to provide
an appreciation of the impact of those items on operating profit.
GROUP STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2009 (year ended 31 December 2008)
2009 2008
Total Total
Notes £m £m
Profit/(loss) for the year 15.3 (1.2)
Actuarial loss on defined 3 (50.0) (48.7)
benefit pensions
Actuarial loss on unfunded (0.2) -
pension arrangements
Deferred tax associated with 14.1 13.6
defined benefit pensions
Losses on cash flow hedges (1.2) -
Income tax effect 0.3 -
Net exchange adjustments (1.7) 4.7
Net losses recognised (38.7) (30.4)
directly in equity
Total recognised loss for the (23.4) (31.6)
year
Attributable to equity (23.4) (31.6)
shareholders
The parent company Statement of Comprehensive Income includes a profit for the
year of £63.4m (2008: £18.5m) and a net actuarial loss on defined benefit
pensions of £36.1m (2008: £35.1m).
GROUP AND COMPANY BALANCE SHEETS
as at 31 December 2009 (31 December 2008)
Group Company
2009 2008 2009 2008
Notes £m £m £m £m
Assets
Non-current assets
Intangible assets 9 100.5 102.1 - -
Property, plant and 140.8 169.4 31.6 36.8
equipment
Investments 41.8 47.1 292.5 293.4
Derivative financial 0.1 - 0.1 -
assets
Deferred tax assets 19.9 15.0 19.0 10.0
303.1 333.6 343.2 340.2
Current assets
Inventories 12.0 9.3 - -
Trade and other 158.9 157.4 224.7 169.6
receivables
Available for sale 1.4 2.7 - -
investment
Derivative financial 2.5 0.4 2.5 0.4
assets
Cash and cash 31.5 19.6 10.5 2.6
equivalents
206.3 189.4 237.7 172.6
Liabilities
Current liabilities
Borrowings (12.8) (58.6) (12.2) (57.7)
Derivative financial (2.2) (17.1) (2.2) (17.1)
liabilities
Trade and other payables (200.0) (195.8) (247.5) (213.8)
Current income tax (9.7) (9.9) - -
liabilities
Provisions (2.6) (2.0) - -
(227.3) (283.4) (261.9) (288.6)
Net current liabilities (21.0) (94.0) (24.2) (116.0)
Total assets less 282.1 239.6 319.0 224.2
current
liabilities
Non-current liabilities
Borrowings (150.1) (126.0) (150.1) (125.8)
Other payables (1.3) (0.2) - -
Derivative financial (1.3) (0.9) (1.3) (0.9)
liabilities
Provisions (5.3) (6.6) - -
Deferred tax liabilities - (7.7) - (5.2)
Retirement benefit 3 (84.5) (35.6) (84.5) (35.6)
obligations
(242.5) (177.0) (235.9) (167.5)
Net assets 39.6 62.6 83.1 56.7
Shareholders' equity
Ordinary shares 15.1 15.1 15.1 15.1
Share premium account 15.8 15.8 15.8 15.8
Investment in own shares (3.3) (3.3) - -
Hedge accounting reserve 15 (0.9) - (0.9) -
Retained earnings (8.7) 13.4 31.5 4.2
Capital redemption 21.6 21.6 21.6 21.6
reserve
Total equity 39.6 62.6 83.1 56.7
The accounts were approved by the board of directors on 8 March 2010 and signed
on its behalf by:
William Thomson, Paul Dollman,
Chairman
Group Finance Director
GROUP AND COMPANY STATEMENT OF CHANGES IN EQUITY
As at 31 December 2009 (31 December 2008)
Ordinary Share Investment Hedge Retained Capital Total
shares premium in own accounting earnings redemption
account shares reserve reserve
£m £m £m £m £m £m £m
Group
As at 31 15.1 15.8 (3.3) - 13.4 21.6 62.6
December 2008
Profit for the - - - - 15.3 - 15.3
year
Share-based - - - - 0.4 - 0.4
payments
Movement in the - - - (0.9) - - (0.9)
year
Actuarial loss - - - - (36.1) - (36.1)
(net of deferred
tax)
Exchange - - - - (1.7) - (1.7)
adjustments
As at 31 15.1 15.8 (3.3) (0.9) (8.7) 21.6 39.6
December 2009
As at 29 15.0 15.1 (3.4) - 60.1 21.6 108.4
December 2007
Loss for the - - - - (1.2) - (1.2)
year
Dividends - - - - (15.5) - (15.5)
New share 0.1 0.7 - - - - 0.8
capital issued
Movement in own - - 0.1 - - - 0.1
shares
Share-based - - - - 0.4 - 0.4
payments
Actuarial loss - - - - (35.1) - (35.1)
(net of deferred
tax)
Exchange - - - - 4.7 - 4.7
adjustments
As at 31 15.1 15.8 (3.3) - 13.4 21.6 62.6
December 2008
Company
At 31 December 15.1 15.8 - - 4.2 21.6 56.7
2008
Profit for the - - - - 63.4 - 63.4
year
Movement in the - - - (0.9) - - (0.9)
year
Actuarial loss - - - - (36.1) - (36.1)
(net of deferred
tax)
As at 31 15.1 15.8 - (0.9) 31.5 21.6 83.1
December 2009
At 29 December 15.0 15.1 - - 36.2 21.6 87.9
2007
Profit for the - - - - 18.5 - 18.5
year
Dividends - - - - (15.5) - (15.5)
New share 0.1 0.7 - - - - 0.8
capital issued
Share-based - - - - 0.1 - 0.1
payments
Actuarial loss - - - - (35.1) - (35.1)
(net of deferred
tax)
As at 31 15.1 15.8 - - 4.2 21.6 56.7
December 2008
The profit for the year for the company of £63.4m (2008: £18.5m) is the same
under both IFRS and UK GAAP.
GROUP AND COMPANY STATEMENT OF CASH FLOWS
for the year ended 31 December 2009 (year ended 31 December 2008)
Group Company
2009 2008 2009 2008
Notes £m £m £m £m
Cash flows from operating activities
Cash generated from 11 52.0 39.2 (7.7) (9.9)
operations
Interest received 0.8 2.2 - 0.1
Interest paid (7.9) (17.5) (7.2) (9.6)
Tax (paid)/recovered (5.5) (4.6) (1.3) 0.7
Net cash from operating 39.4 19.3 (16.2) (18.7)
activities
Cash flows from investing activities
Investment in joint 0.9 (8.7) - -
ventures and associates
Loan repaid by joint 2.3 0.5 - -
venture
Loan repaid by associate - 0.1 - -
Proceeds from disposal of 0.6 12.2 -
investments
Acquisition of subsidiaries (1.6) (13.0) - -
Net cash acquired with - 1.2 - -
subsidiaries
Purchase of property, plant (15.1) (40.4) - -
and equipment
Intangible asset additions (4.1) (2.4) - -
Proceeds from sale of 16.9 9.1 6.0 -
property, plant and
equipment
Dividends received 4.2 3.3 - -
- More to follow, for following part double click ID
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