27th Nov 2007 12:30
Signet Group PLC27 November 2007 Signet Group plc (LSE and NYSE: SIG) Embargoed until 12.30 p.m. (GMT)Unaudited results for the 13 and 39 weeks to 3 November 2007 27 November 2007 SIGNET REPORTS THIRD QUARTER RESULTS Signet Group plc (LSE and NYSE: SIG), the world's largest speciality retailjeweller, today announced its third quarter unaudited results for the 13 weeksand 39 weeks to 3 November 2007. Group In the 13 week period to 3 November 2007, Group total sales rose by 7.9% atconstant exchange rates (see note 11); the reported increase was 10.0% to $678.7million (13 weeks to 28 October 2006: $616.8 million). Like for like salesincreased by 3.2%. Profit before tax was $2.5 million (13 weeks to 28 October2006: $8.0 million) and operating profit was $7.5 million (13 weeks to 28October 2006: $13.4 million). In the 39 week period, Group total sales increased by 7.0% at constant exchangerates (see note 11); and by 9.4% on a reported basis to $2,280.5 million (39weeks to 28 October 2006: $2,084.0 million). Like for like sales were up by3.2%. Profit before tax declined slightly to $111.5 million (39 weeks to 28October 2006: $113.6 million) and operating profit was $124.4 million (39 weeksto 28 October 2006: $125.7 million). The average exchange rate for the periodwas £1/$2.00 (39 weeks to 28 October 2006: £1/$1.83). Earnings per share wereunchanged at 4.2c. United States (circa 75% of Group annual sales) In the 13 week period to 3 November 2007, total sales increased by 10.1% to$488.2 million (13 weeks to 28 October 2006: $443.4 million). Like for likesales were up by 2.5%, with August and September being stronger than October. USoperating profit was $11.5 million (13 weeks to 28 October 2006: $19.1 million).As expected the gross margin was down a little more than in the first half as aresult of further commodity cost increases and changes in the sales mix,partially offset by supply chain initiatives. The trend in the fourth quarter isanticipated to be similar. Costs were closely controlled and inventory levelswere as planned. In the 39 week period, total sales advanced by 8.3% to $1,705.1 million (39weeks to 28 October 2006: $1,574.5 million). Like for like sales rose by 2.7%.US operating profit was $137.8 million (39 weeks to 28 October 2006: $144.2million). The operating margin was 8.1% (39 weeks to 28 October 2006: 9.2%). Thebad debt charge was 3.3% of total sales (39 weeks to 28 October 2006: 2.9%), andremained comfortably in the range of the last 10 years. The quality of execution in all areas of the business continued to be improved,with the focus on staff training and customer service remaining a priority. Inmerchandising, the right hand ring and Journey ranges continue to be developed,the solitaire and Leo diamond selections have been expanded, new designs from LeVian have been introduced and in Jared, the Peerless Diamond is increasinglypopular. There will be a further increase in Kay national television advertising duringthe holiday season and Jared will have national television advertising supporton both network and cable channels for the first time. Advertising for thedivision's regional brands will be on a similar basis to last year. Net new space growth during 2007/08 is expected to be about 10%, at the top endof the target range, with Jared accounting for the majority of the increase. Over the past several years there have been substantial increases in diamond,gold and platinum costs impacting the entire US jewellery sector. These have notbeen fully passed on to consumers. This cumulative effect of higher commoditycosts does mean that Signet anticipates realigning prices in 2008 and we wouldexpect this to start following Valentine's Day. Any such realignment will likelycover the broad merchandise range, including basic product which have seenlittle movement in price for several years despite the major changes in rawmaterial costs. Signet's pricing strategy is to be competitive over the longterm; however these expected changes could result in a departure from thisposition in the short term. United Kingdom (circa 25% of Group annual sales) In the 13 week period, UK division total sales were up by 2.6% at constantexchange rates (see note 11) and by 9.9% on a reported basis to $190.5 million(13 weeks to 28 October 2006: $173.4 million). Like for like sales were up by4.8% in the 13 weeks to 3 November 2007. This resulted in the elimination of thenormal seasonal loss with the division reporting an operating profit of $0.2million (13 weeks to 28 October 2006: $2.0 million loss). In the 39 week period, total sales increased by 3.3% at constant exchange rates(see note 11), and by 12.9% on a reported basis to $575.4 million (39 weeks to28 October 2006: $509.5 million). Like for like sales were up by 4.7%. Thenormal seasonal operating loss was largely eliminated at $0.4 million (39 weeksto 28 October 2006: $8.2 million loss). Gross margin was slightly down on lastyear due to mix changes and more targeted promotional activity with a similartrend expected in the fourth quarter. The customer experience was again enhanced by the continued development of theselling skills and product knowledge of staff. Merchandise ranges exclusive toH.Samuel and Ernest Jones have been increased and the diamond ranges have beendeveloped further. The division's average selling price rose in the 39 weekperiod and diamond participation was up slightly. New television advertisementsfor both H.Samuel and Ernest Jones have produced encouraging test results.Initial customer response to the enhanced Ernest Jones store design has beenpositive. The roll-out of a branded store card, provided in conjunction with abank, is proceeding as planned. Tight control of costs and inventory has beenmaintained. Group Central Costs, Financing Costs and Taxation In the 13 week period, Group central costs were $4.2 million (13 weeks to 28October 2006: $3.7 million). In the 39 weeks they were $13.0 million (39 weeksto 28 October 2006: $10.3 million), largely reflecting a foreign exchange lossarising on dividend payments and higher professional fees. Net financing costsfor the 13 weeks were $5.0 million (13 weeks to 28 October 2006: $5.4 million)and for the 39 weeks were $12.9 million (39 weeks to 28 October 2006: $12.1million). The tax rate for the 39 weeks to 3 November 2007 was 36.5% (39 weeksto 28 October 2006: 35.6%). Net Debt Net debt at 3 November 2007 was $524.8 million (28 October 2006: $461.9million). The seasonal increase in net debt in the 39 weeks to 3 November 2007of $291.6 million was in line with the corresponding period last year (39 weeksto 28 October 2006: $287.4 million). Capital expenditure during the year isexpected to be about $150 million (2006/07: $124.4 million) reflecting increasedspending on Kay off-mall stores, store refurbishments and informationtechnology. In October the Group entered into a 364 day $200m Series 2007 asset backedvariable funding note conduit securitisation facility. Under thissecuritisation, interests in the US receivables portfolio are sold to BryantPark, a conduit administered by HSBC Securities (USA) Inc. The facility is forgeneral corporate purposes. Comment Terry Burman, Group Chief Executive, commented: "In the year to date profitbefore tax was slightly below last year's level primarily reflecting a morechallenging retail marketplace in the US. As ever, the results for the year will depend on the very important Christmastrading season, 75% of which is still ahead of us. However, in the US sales haveweakened further since the end of the third quarter and so far in November likefor like sales are down around 7%. In the UK there has been a weakening as themonth has progressed. Given the backdrop of trading in November, and increasedeconomic uncertainty on both sides of the Atlantic, we believe current analysts'expectations are unlikely to be met and that a wider than normal range of profitbefore tax estimates would be appropriate." Enquiries: Terry Burman, Group Chief Executive +44 (0) 20 7317 9700 Walker Boyd, Group Finance Director +44 (0) 20 7317 9700 Tom Buchanan, Brunswick +44 (0) 20 7404 5959 Wendel Verbeek, Brunswick +44 (0) 20 7404 5959 Signet operated 1,953 speciality retail jewellery stores at 3 November 2007;these included 1,383 stores in the US, where the Group trades as "Kay Jewelers","Jared The Galleria Of Jewelry" and under a number of regional names. At thatdate Signet operated 570 stores in the UK, where the Group trades as "H.Samuel","Ernest Jones" and "Leslie Davis". Further information on Signet is available atwww.signetgroupplc.com. See also www.kay.com, www.jared.com, www.hsamuel.co.ukand www.ernestjones.co.uk. Investor Relations Programme Details There will be a conference call for all interested parties today at 2.00 p.m.GMT (9.00 a.m. EST and 6.00 a.m. Pacific Time) and a simultaneous audio webcastavailable at www.signetgroupplc.com. To help ensure the conference call beginsin a timely manner, could all participants please dial in 5 minutes prior to thescheduled start time. The call details are: European dial-in: +44 (0) 20 7138 0839European 48hr replay: +44 (0) 20 7138 0838 Access code: 4574130# US dial-in: +1 718 354 1362US 48hr replay: +1 718 354 1112 Access code: 4574130# The Christmas Trading Statement is expected to be released on Thursday 10January 2008. Store Tour, Las Vegas, Nevada, Thursday 29 November 2007 There is a tour of a Jared and a Kay store in Las Vegas, Nevada on the morningof Thursday, November 29, 2007 for professional investors. Details can be foundat www.signetgroupplc.com. This release includes statements which are forward-looking statements within themeaning of the Private Securities Litigation Reform Act of 1995. Thesestatements, based upon management's beliefs as well as on assumptions made byand data currently available to management, appear in a number of placesthroughout this release and include statements regarding, among other things,our results of operation, financial condition, liquidity, prospects, growth,strategies and the industry in which the Company operates. Our use of the words"expects," "intends," "anticipates," "estimates," "may," "forecast,""objective," "plan" or "target," and other similar expressions are intended toidentify forward-looking statements. These forward-looking statements are notguarantees of future performance and are subject to a number of risks anduncertainties, including but not limited to general economic conditions, themerchandising, pricing and inventory policies followed by the Group, thereputation of the Group, the level of competition in the jewellery sector, theprice and availability of diamonds, gold and other precious metals, seasonalityof the Group's business and financial market risk. For a discussion of these and other risks and uncertainties which could causeactual results to differ materially, see the "Risk and Other Factors" section ofthe Company's 2006/07 Annual Report on Form 20-F filed with the U.S. Securitiesand Exchange Commission on May 4, 2007 and other filings made by the Companywith the Commission. Actual results may differ materially from those anticipatedin such forward-looking statements even if experience or future changes make itclear that any projected results expressed or implied therein may not berealised. The Company undertakes no obligation to update or revise anyforward-looking statements to reflect subsequent events or circumstances. SIGNET GROUP plc Condensed consolidated income statement (unaudited)for the 39 weeks ended 3 November 2007 13 weeks ended 13 weeks ended 39 weeks 39 weeks 53 weeks 3 November 28 October ended ended ended 2007 2006 3 November 28 October 3 February 2007 2006 2007------------------------------------------------------------------------------------------------------- Notes $m $m $m $m $m------------------------------------------------------------------------------------------------------- Sales 2,11 678.7 616.8 2,280.5 2,084.0 3,559.2 Cost of sales (657.7) (594.2) (2,123.2) (1,927.4) (3,092.4)-------------------------------------------------------------------------------------------------------Gross profit 21.0 22.6 157.3 156.6 466.8Administrative expenses (39.4) (31.0) (112.2) (99.2) (142.1)Other operating income 25.9 21.8 79.3 68.3 91.5-------------------------------------------------------------------------------------------------------Operatingprofit 2,11 7.5 13.4 124.4 125.7 416.2Finance income 3 2.0 5.9 8.1 13.5 18.8Finance expense 3 (7.0) (11.3) (21.0) (25.6) (34.2)-------------------------------------------------------------------------------------------------------Profit before tax 11 2.5 8.0 111.5 113.6 400.8Taxation 4 (0.9) (2.8) (40.7) (40.4) (134.8)-------------------------------------------------------------------------------------------------------Profit for thefinancial period 1.6 5.2 70.8 73.2 266.0------------------------------------------------------------------------------------------------------- Earnings pershare - basic 6 0.1c 0.3c 4.2c 4.2c 15.4c - diluted 0.1c 0.3c 4.1c 4.2c 15.3c-------------------------------------------------------------------------------------------------------Earnings per ADS - basic 6 0.9c 2.6c 41.5c 42.2c 154.0c - diluted 0.9c 2.6c 41.4c 42.1c 153.4c------------------------------------------------------------------------------------------------------- All of the above relate to continuing activities. Condensed consolidated balance sheet (unaudited)at 3 November 2007 3 November 28 October 3 February 2007 2006 2007-------------------------------------------------------------------------------- Notes $m $m $m-------------------------------------------------------------------------------- AssetsNon-current assetsIntangible assets 50.6 44.8 46.3Property, plant and equipment 515.5 481.5 484.8Other receivables 34.3 28.9 29.2Retirement benefit asset 8.0 - 3.7Deferred tax assets 29.0 31.4 29.0-------------------------------------------------------------------------------- 637.4 586.6 593.0--------------------------------------------------------------------------------Current assetsInventories 1,656.8 1,497.4 1,350.6Trade and other receivables 787.4 673.4 869.1Cash and cash equivalents 42.8 310.8 152.3-------------------------------------------------------------------------------- 2,487.0 2,481.6 2,372.0-------------------------------------------------------------------------------- Total assets 3,124.4 3,068.2 2,965.0-------------------------------------------------------------------------------- LiabilitiesCurrent liabilitiesBorrowings due in less thanone year (187.6) (392.7) (5.5)Trade and other payables (465.9) (425.4) (392.4)Deferred income (101.6) (90.4) (122.7)Current tax (50.8) (19.6) (101.7)-------------------------------------------------------------------------------- (805.9) (928.1) (622.3)--------------------------------------------------------------------------------Non-current liabilitiesBorrowings due in more thanone year (380.0) (380.0) (380.0)Other payables (81.5) (72.2) (74.7)Deferred income (129.1) (116.3) (132.0)Provisions (10.3) (10.8) (10.0)Retirement benefit obligation - (28.1) --------------------------------------------------------------------------------- (600.9) (607.4) (596.7)-------------------------------------------------------------------------------- Total liabilities (1,406.8) (1,535.5) (1,219.0)--------------------------------------------------------------------------------Net assets 1,717.6 1,532.7 1,746.0-------------------------------------------------------------------------------- EquityCapital and reservesattributable to equityshareholdersCalled up share capital 8 15.4 14.1 14.0Share premium 9 138.4 129.4 134.7Other reserves 9 235.2 235.0 235.1Retained earnings 9 1,328.6 1,154.2 1,362.2--------------------------------------------------------------------------------Total equity 1,717.6 1,532.7 1,746.0-------------------------------------------------------------------------------- Condensed consolidated cash flow statement (unaudited)for the 39 weeks ended 3 November 2007 13 weeks ended 13 weeks ended 39 weeks 39 weeks 53 weeks 3 November 28 October ended ended ended 2007 2006 3 November 28 October 3 February 2007 2006 2007-------------------------------------------------------------------------------------------------- $m $m $m $m $m--------------------------------------------------------------------------------------------------Cash flows from operatingactivities: Profit before tax 2.5 8.0 111.5 113.6 400.8Adjustments for:Finance income (2.0) (5.9) (8.1) (13.5) (18.8)Finance expense Depreciation of property, plant andequipment 25.7 23.7 75.5 67.7 92.1Amortisation of intangible assets 1.0 0.5 3.3 1.6 2.4Share-based payment expense 2.1 2.5 6.1 6.2 6.7Other non-cash movements (0.2) (0.1) (0.7) (0.7) (2.2)Loss on disposal of property, plant and equipment - - - - 0.8--------------------------------------------------------------------------------------------------Operating cash flows beforemovement in working capital 36.1 40.0 208.6 200.5 516.0Increase in inventories (282.8) (254.3) (288.2) (264.8) (118.1)Decrease/(increase) in tradeand other receivables 20.0 33.0 79.7 85.1 (101.5)Increase in payables anddeferred income 117.9 67.1 36.7 26.0 46.1--------------------------------------------------------------------------------------------------Cash generated from operations (108.8) (114.2) 36.8 46.8 342.5Interest paid (0.8) (5.7) (14.4) (15.7) (31.4)Taxation paid (14.9) (29.4) (90.2) (108.0) (130.1)--------------------------------------------------------------------------------------------------Net cash from operatingactivities (124.5) (149.3) (67.8) (76.9) 181.0-------------------------------------------------------------------------------------------------- Investing activities:Interest received 0.7 5.6 4.7 12.3 16.9Purchase of property,plant and equipment (47.2) (37.3) (99.1) (88.2) (116.9)Purchase of intangible assets (1.1) (2.4) (7.3) (5.5) (7.5)Proceeds from sale of property,plant and equipment - - - - 4.5--------------------------------------------------------------------------------------------------Cash flows from investingactivities (47.6) (34.1) (101.7) (81.4) (103.0)-------------------------------------------------------------------------------------------------- Financing activities:Dividends paid - - (107.6) (90.7) (108.7)Proceeds from issue of shares - 0.6 5.5 4.6 7.7Purchase of own shares - (37.6) (29.0) (43.2) (63.4)Increase in short-termborrowings 159.1 114.3 181.1 106.6 7.0Repayment of long-termborrowings - - - - (251.0)Receipt of new long-termborrowings - - - 380.0 380.0--------------------------------------------------------------------------------------------------Cash flows from financingactivities 159.1 77.3 50.0 357.3 (28.4)-------------------------------------------------------------------------------------------------- Reconciliation of movement incash and cash equivalents:Cash and cash equivalents atbeginning of period 51.8 421.1 152.3 92.9 92.9(Decrease)/increase in cash andcash equivalents (13.0) (106.1) (119.5) 199.0 49.6Exchange adjustments 4.0 (4.2) 10.0 18.9 9.8--------------------------------------------------------------------------------------------------Closing cash and cash equivalents 42.8 310.8 42.8 310.8 152.3-------------------------------------------------------------------------------------------------- Reconciliation of cash flowsto movement in net debt:(1)Net debt at beginning of period (354.8) (229.0) (233.2) (174.5) (174.5)(Decrease)/increase in cashand cash equivalents (13.0) (106.1) (119.5) 199.0 49.6Increase in borrowings (159.1) (114.3) (181.1) (486.6) (136.0)Exchange adjustments 2.1 (12.5) 9.0 0.2 27.7--------------------------------------------------------------------------------------------------Closing net debt (524.8) (461.9) (524.8) (461.9) (233.2)-------------------------------------------------------------------------------------------------- (1) Net debt represents cash and cash equivalents less borrowings due in less than one year and borrowings due in more than one year. Condensed consolidated statement of recognised income and expense (unaudited)for the 39 weeks ended 3 November 2007 13 weeks ended 13 weeks ended 39 weeks 39 weeks 53 weeks 3 November 28 October ended ended ended 2007 2006 3 November 28 October 3 February 2007 2006 2007---------------------------------------------------------------------------------------------------- $m $m $m $m $m---------------------------------------------------------------------------------------------------- Exchange differences ontranslation of foreignoperations 10.3 1.8 29.1 28.8 57.3Effective portion ofchanges in value of cashflow hedges 4.6 (3.8) (0.5) (0.7) 1.7Actuarial gain on retirementbenefit scheme - - - - 30.5Tax on items recognised inequity (0.5) - 1.5 - (10.3)----------------------------------------------------------------------------------------------------Net income recognised directly in equity 14.4 (2.0) 30.1 28.1 79.2Transfer to initial carrying valueof inventory from cash flow hedges (2.7) 1.1 (4.4) (1.1) 1.5Profit for the financial period 1.6 5.2 70.8 73.2 266.0----------------------------------------------------------------------------------------------------Total recognised income and expense attributable toshareholders 13.3 4.3 96.5 100.2 346.7---------------------------------------------------------------------------------------------------- Notes to the condensed consolidated financial statements (unaudited)for the 39 weeks ended 3 November 2007 1. Basis of preparation These results are presented in US dollars following the change in the functionalcurrency of the Company and the move to reporting in US dollars with effect from5 February 2007. These interim financial statements have been prepared applyingthe accounting policies that were applied in the preparation of the Company'spublished consolidated financial statements for the 53 week period ended 3February 2007. These interim financial statements are unaudited and do not constitute statutoryaccounts within the meaning of Section 240 of the Companies Act 1985. Thecomparative figures for the 53 weeks ended 3 February 2007 are not the Company'sstatutory accounts for that period. Those accounts have been reported on by theCompany's auditors and have been delivered to the Registrar of Companies. Thereport of the auditors was (i) unqualified, (ii) did not include a reference toany matters to which the auditors drew attention by way of emphasis withoutqualifying their report, and (iii) did not contain a statement under section 237(2) or (3) of the Companies Act 1985. 2. Segment information 13 weeks ended 13 weeks ended 39 weeks 39 weeks 53 weeks 3 November 28 October ended ended ended 2007 2006 3 November 28 October 3 February 2007 2006 2007---------------------------------------------------------------------------------------------- $m $m $m $m $m---------------------------------------------------------------------------------------------- Sales by origin and destinationUK, Channel Islands &Republic of Ireland 190.5 173.4 575.4 509.5 907.1US 488.2 443.4 1,705.1 1,574.5 2,652.1----------------------------------------------------------------------------------------------Total sales 678.7 616.8 2,280.5 2,084.0 3,559.2---------------------------------------------------------------------------------------------- Operating (loss)/profitUK, Channel Islands &Republic of Ireland - Trading 0.2 (2.0) (0.4) (8.2) 103.4 - Group central costs (4.2) (3.7) (13.0) (10.3) (13.9)---------------------------------------------------------------------------------------------- (4.0) (5.7) (13.4) (18.5) 89.5US 11.5 19.1 137.8 144.2 326.7----------------------------------------------------------------------------------------------Operating profit 7.5 13.4 124.4 125.7 416.2---------------------------------------------------------------------------------------------- The Group's results derive from one business segment - the retailing ofjewellery, watches and associated services. 3. Net financing costs 13 weeks ended 13 weeks ended 39 weeks 39 weeks 53 weeks 3 November 28 October ended ended ended 2007 2006 3 November 28 October 3 February 2007 2006 2007---------------------------------------------------------------------------------------------- $m $m $m $m $m----------------------------------------------------------------------------------------------Interest receivable 0.7 5.5 4.7 12.2 16.6Defined benefit pension scheme:- expected return on scheme assets 5.0 3.6 13.6 10.6 14.8- interest on pension liabilities (3.7) (3.2) (10.2) (9.3) (12.6)----------------------------------------------------------------------------------------------Finance income 2.0 5.9 8.1 13.5 18.8Finance expense (7.0) (11.3) (21.0) (25.6) (34.2)----------------------------------------------------------------------------------------------Net financing costs (5.0) (5.4) (12.9) (12.1) (15.4)---------------------------------------------------------------------------------------------- Notes to the condensed consolidated financial statements (unaudited)for the 39 weeks ended 3 November 2007 4. Taxation The net taxation charges in the income statements for the 13 weeks and 39 weeksended 3 November 2007 have been based on the anticipated effective taxation ratefor the 52 weeks ending 2 February 2008. 5. Translation differences The exchange rates used in these interim statements for the translation of UKpound sterling transactions and balances into US dollars are as follows: 3 November 28 October 3 February 2007 2006 2007--------------------------------------------------------------------------------Income statement (average rate) 2.00 1.83 1.88Balance sheet (closing rate) 2.08 1.90 1.97-------------------------------------------------------------------------------- The effect of restating the balance sheet at 28 October 2006 to the exchangerates ruling at 3 November 2007 would be to decrease net debt by $(3.8) millionto $(458.1) million. Restating the income statement would decrease the pre-taxprofit for the 39 weeks ended 28 October 2006 by $(1.3) million to $112.3million. 6. Earnings per share 13 weeks ended 13 weeks ended 39 weeks 39 weeks 53 weeks 3 November 28 October ended ended ended 2007 2006 3 November 28 October 3 February 2007 2006 2007----------------------------------------------------------------------------------------------- $m $m $m $m $m-----------------------------------------------------------------------------------------------Profit attributableto shareholders 1.6 5.2 70.8 73.2 266.0----------------------------------------------------------------------------------------------Weighted average numberof shares in issue (million) 1,703.6 1,729.4 1,703.8 1,736.3 1,727.6Dilutive effect ofshare options (million) 3.3 4.3 5.3 3.2 6.8----------------------------------------------------------------------------------------------Diluted weighted average number of shares (million) 1,707.0 1,733.7 1,709.1 1,739.5 1,734.4----------------------------------------------------------------------------------------------Earnings per share - basic 0.1c 0.3c 4.2c 4.2c 15.4c - diluted 0.1c 0.3c 4.1c 4.2c 15.3c----------------------------------------------------------------------------------------------Earnings per ADS - basic 0.9c 2.6c 41.5c 42.2c 154.0c - diluted 0.9c 2.6c 41.4c 42.1c 153.4c---------------------------------------------------------------------------------------------- 7. Seasonality The Group's business is highly seasonal with a very significant proportion ofits sales and operating profit generated during its fourth quarter, whichincludes the Christmas season. The Group expects to continue to experience aseasonal fluctuation in sales and profit. Notes to the condensed consolidated financial statements (unaudited)for the 39 weeks ended 3 November 2007 8. Share capital 3 November 28 October 3 February 2007 2007 2006-------------------------------------------------------------------------------- $m $m $m--------------------------------------------------------------------------------Authorised:5,929,874,019 ordinary shares of 0.5p each - 48.6 48.65,929,874,019 ordinary sharesof 0.9c each 53.4 - -50,000 deferred shares of £1 each 0.1 - --------------------------------------------------------------------------------- Number of $m shares Alloted, called up and fully paid:Ordinary shares of 0.5p each:At 3 February 2007 1,713,553,809 14.0Change in functional currency - 1.4Capital reduction on 5 February 2007 (1,713,553,809) (15.4)-------------------------------------------------------------------------------- nil nilOrdinary shares of 0.9c each:Issued on 5 February 2007 1,713,553,809 15.4Share buyback (12,205,000) (0.1)Shares issued on exercise ofshare options 4,062,007 ---------------------------------------------------------------------------------At 3 November 2007 totalallotted, called up and fully paid 1,705,410,816 15.3Deferred shares of £1 each onissue and at 3 November 2007 50,000 0.1--------------------------------------------------------------------------------Total share capital 1,705,460,816 15.4-------------------------------------------------------------------------------- On 5 February 2007, the Company redenominated its share capital into US dollarsby way of a reduction in capital and subsequent issue and allotment of new USdollar ordinary shares, which had been approved by shareholders on 12 December2006 and received Court approval on 31 January 2007. The nominal value of each US dollar denominated ordinary share is 0.9 cent andshareholders received one new US dollar denominated ordinary share for eachsterling ordinary share held. The new shares have the same rights andrestrictions as the previously issued ordinary shares and the existing sharecertificates remain valid. Additionally, to comply with the Companies Act 1985, £50,000 of share capital isrequired to be denominated in pounds sterling, to which end 50,000 deferredshares of £1 each were allotted and issued and credited to the Company Secretaryof the Company on 5 February 2007. These shares have limited and deferredrights. Notes to the condensed consolidated financial statements (unaudited)for the 39 weeks ended 3 November 2007 9. Share premium and reserves 39 weeks ended Other reserves Retained earnings3 November2007 Share Capital Special Purchase Hedging Translation Retained Total premium redemption reserves of own reserve reserve reserves shares $m $m $m $m $m $m $m $m Balance at 3February 2007 134.7 0.3 234.8 (13.3) 5.1 10.1 1,360.3 1,732.0Redenominationof share capital (1.4) - - - - - - (1.4) 133.3 0.3 234.8 (13.3) 5.1 10.1 1,360.3 1,730.6Recognisedincome andexpense:- profit forthe financialperiod - - - - - - 70.8 70.8- cashflowhedges - - - - (3.4) - - (3.4)- translation differences - - - - - 29.1 - 29.1Dividends - - - - - - (107.6) (107.6)Equity-settledtransactions - - - - - - 6.1 6.1Share optionsexercised 5.1 - - 1.9 - - (1.5) 5.5Purchase ofown shares - 0.1 - - - - (29.0) (28.9) Balance at 3November 2007 138.4 0.4 234.8 (11.4) 1.7 39.2 1,299.1 1,702.2 39 weeks ended Other reserves Retained earnings28 October2006 Share Capital Special Purchase Hedging Translation Retained Total premium redemption reserves of own reserve reserve reserves shares $m $m $m $m $m $m $m $m Balance at 28January 2006 124.8 - 234.8 (15.4) 2.8 (47.2) 1,241.5 1,541.3Recognisedincome andexpense:- profit for the financial period - - - - - - 73.2 73.2- cashflow hedges - - - - (1.8) - - (1.8)- translation differences - - - - - 28.8 - 28.8Dividends - - - - - - (90.7) (90.7)Equity-settledtransactions - - - - - - 6.2 6.2Share optionsexercised 4.6 - - 0.5 - - (0.5) 4.6Purchase ofown shares - 0.2 - - - - (43.2) (43.0) Balance at 28October 2006 129.4 0.2 234.8 (14.9) 1.0 (18.4) 1,186.5 1,518.6 53 weeks ended Other reserves Retained earnings3 February2007 Share Capital Special Purchase Hedging Translation Retained Total premium redemption reserves of own reserve reserve reserves shares $m $m $m $m $m $m $m $m Balance at 28January 2006 124.8 - 234.8 (15.4) 2.8 (47.2) 1,241.5 1,541.3Recognisedincome andexpense:- profit for the financial period - - - - - - 266.0 266.0- cashflow hedges - - - - 2.3 - - 2.3- translation differences - - - - - 57.3 - 57.3- actuarial gain - - - - - - 21.1 21.1Dividends - - - - - - (108.7) (108.7)Equity-settledtransactions - - - - - - 8.1 8.1Share optionsexercised 8.6 - - 2.1 - - (3.0) 7.7Purchase ofown shares - 0.3 - - - - (63.4) (63.1)Shares issuedto ESOTs 1.3 - - - - - (1.3) - Balance at 3February 2007 134.7 0.3 234.8 (13.3) 5.1 10.1 1,360.3 1,732.0 Notes to the condensed consolidated financial statements (unaudited)for the 39 weeks ended 3 November 2007 10. Dividend A dividend of 0.96 cent per share was paid on 9 November 2007 to shareholders onthe register of members at the close of business on 28 September 2007. The USdollar to pound sterling rate used to convert the 0.96 cent dividend per sharefor payment to shareholders who elected to receive a pound sterling dividend wasthe rate as derived from Reuters at 4.00pm on the record date of 28 September2007. Shareholders wishing to change the currency in which they receivedividends should contact the Company's registrar. 11. Impact of constant exchange rates The Group has historically used constant exchange rates to compareperiod-to-period changes in certain financial data. This is referred to as 'atconstant exchange rates' throughout this release. The Group considers this auseful measure for analysing and explaining changes and trends in the Group'sresults. The impact of the re-calculation of sales, operating profit, profitbefore tax and net debt at constant exchange rates, including a reconciliationto the Group's GAAP results, is analysed below. 39 weeks ended 3 39 weeks 39 weeks Growth at Impact of At constant Growth atNovember 2007 ended ended actual exchange exchange rate exchange rates constant 3 November 28 October rates movement (non-GAAP) exchange 2007 2006 rates (non-GAAP)-------------------------------------------------------------------------------------------------------------- $m $m % $m $m %-------------------------------------------------------------------------------------------------------------- Sales by origin anddestination UK, ChannelIslands & Republic ofIreland 575.4 509.5 12.9 47.3 556.8 3.3US 1,705.1 1,574.5 8.3 - 1,574.5 8.3--------------------------------------------------------------------------------------------------------------Total sales 2,280.5 2,084.0 9.4 47.3 2,131.3 7.0-------------------------------------------------------------------------------------------------------------- Operating (loss)/profitUK, Channel Islands& Republic ofIreland - Trading (0.4) (8.2) n/a (0.8) (9.0) n/a - Group central costs (13.0) (10.3) n/a (1.0) (11.3) n/a-------------------------------------------------------------------------------------------------------------- (13.4) (18.5) n/a (1.8) (20.3) n/aUS 137.8 144.2 (4.4) - 144.2 (4.4)--------------------------------------------------------------------------------------------------------------Operatingprofit 124.4 125.7 (1.0) (1.8) 123.9 0.4-------------------------------------------------------------------------------------------------------------- Profit before tax 111.5 113.6 (1.8) (1.3) 112.3 (0.7)-------------------------------------------------------------------------------------------------------------- At 3 November 2007 3 November 28 October Impact of At constant 2007 2006 exchange exchange rates rate movement (non-GAAP)-------------------------------------------------------------------------------- $m $m $m $m-------------------------------------------------------------------------------- Net debt 524.8 461.9 (3.8) 458.1-------------------------------------------------------------------------------- 13 weeks ended 3 13 weeks 13 weeks Growth at Impact of At constant Growth atNovember 2007 ended ended actual exchange exchange rate exchange rates constant 3 November 28 October rates movement (non-GAAP) exchange 2007 2006 rates (non-GAAP)---------------------------------------------------------------------------------------------------------------- $m $m % $m $m %---------------------------------------------------------------------------------------------------------------- Sales by origin anddestination UK, ChannelIslands & Republic ofIreland 190.5 173.4 9.9 12.2 185.6 2.6US 488.2 443.4 10.1 - 443.4 10.1-------------------- ------- ------- ------- ------- ------- -------Total sales 678.7 616.8 10.0 12.2 629.0 7.9-------------------- ------- ------- ------- ------- ------- ------- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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