21st Nov 2006 12:30
Signet Group PLC21 November 2006 Signet Group plc (LSE: SIG and NYSE: SIG) Embargoed until 12.30 p.m. (GMT)Unaudited results for the 13 and the 21 November 200639 weeks to 28 October 2006 SIGNET REPORTS IMPROVED THIRD QUARTER RESULTS Signet Group plc (LSE: SIG and NYSE: SIG), the world's largest speciality retailjeweller, today announces its third quarter results for the 13 week and 39 weekperiods to 28 October 2006. Group In the 13 week period to 28 October 2006, Group total sales rose by 9.5% atconstant exchange rates (see note 9); the reported increase was 5.7% to £328.2million (13 weeks to 29 October 2005: £310.5 million). Like for like sales wereup by 5.4%. Profit before tax increased to £3.8 million (13 weeks to 29 October2005: £3.0 million) and operating profit was £6.7 million (13 weeks to 29October 2005: £5.5 million). The adverse impact of unfavourable cumulativeforeign exchange movements on both the reported profit before tax and operatingprofit was particularly marked at £1.2 million (see note 9). In the 39 week period, Group total sales increased by 9.8% at constant exchangerates (see note 9); and on a reported basis by 10.2% to £1,138.8 million (39weeks to 29 October 2005: £1,033.4 million). Like for like sales were up by5.3%. Profit before tax rose by 11.9% at constant exchange rates (see note 9);and by 12.7% on a reported basis to £62.1 million (39 weeks to 29 October 2005:£55.1 million) and operating profit was £68.7 million (39 weeks to 29 October2005: £61.0 million). The average exchange rate for the period was £1/$1.83 (39weeks to 29 October 2005: £1/$1.84). Earnings per share were 2.3p (39 weeks to29 October 2005: 2.1p). United States (circa 70% of Group annual sales) In the 13 week period to 28 October 2006, total sales increased by 12.5% atconstant exchange rates (see note 9); and on a reported basis by 7.0% to £235.5million (13 weeks to 29 October 2005: £220.0 million). Like for like sales wereup by 6.5%. US operating profit was up by 16.9% at constant exchange rates (seenote 9), and on a reported basis rose by 2.1% to £9.7 million (13 weeks to 29October 2005: £9.5 million). The operating margin was 4.1% (13 weeks to 29October 2005: 4.3%). In the 39 week period, total sales advanced by 12.6% at constant exchange rates(see note 9), and by 13.3% on a reported basis to £860.4 million (39 weeks to 29October 2005: £759.6 million). Like for like sales rose by 6.9%. US operatingprofit was up by 11.0% at constant exchange rates (see note 9), and by 11.6% ona reported basis to £78.8 million (39 weeks to 29 October 2005: £70.6 million).As expected the gross margin was down in line with the first half as a result ofcommodity cost increases and changes in the sales mix, partially offset bysupply chain initiatives and selective price increases; the trend in the fourthquarter is anticipated to be similar. The operating margin was 9.2% (39 weeks to29 October 2005: 9.3%). The bad debt charge was 2.9% of total sales (39 weeks to29 October 2005: 3.2%). A number of merchandising initiatives are in place for the Christmas Season.These include: "Journey" diamond jewellery, which the Diamond Trading Company issupporting with a substantial advertising campaign; further expansion of theright hand ring and "circle" jewellery selections; the Leo Diamond assortment,which continues to be developed in all formats; "Le Vian", a prestigious 500year old fashion jewellery brand that is now sold in all Kay stores; in Jared,the "Peerless Diamond", a branded Ideal Cut diamond exclusive to the Group, hasbeen rolled out to all locations; and Jared continues to build its offering andreputation in the luxury watch market. The holiday season will again see an increase in Kay national televisionadvertising and Jared will benefit from national cable advertising support forthe first time. The testing of television advertising for JB Robinson, thedivision's leading regional brand, will be extended to three additional markets.Annual spending on marketing as a proportion of sales is planned to be slightlyhigher than last year due to the growth of Jared, which carries a higheradvertising cost to sales ratio than the mall stores. Net new space growth during 2006/07 is expected to be about 10%, at the top endof the target range. Jared will account for some 60% of the increase. United Kingdom (circa 30% of Group annual sales) The UK division continued its improving trend with total sales up by 2.4% to£92.7 million (13 weeks to 29 October 2005: £90.5 million). Like for like saleswere up by 3.0% in the 13 weeks to 28 October 2006. This resulted in a reducedoperating loss of £1.1 million (13 weeks to 29 October 2005: £2.5 million loss). In the 39 week period to 28 October 2006 total sales increased by 1.7% to £278.4million (39 weeks to 29 October 2005: £273.8 million) and like for like sales by0.9%. There was an operating loss of £4.5 million (39 weeks to 29 October 2005:£4.9 million loss). The results of the UK business are very seasonal,historically nearly all the operating profit for the full year being earned inthe fourth quarter. The jewellery market remains difficult, with year to dateindustry hallmarking volumes being down by over 15% for the second year running.Gross margin was slightly down on last year; the trend in the fourth quarter isanticipated to be similar. Tight control of costs and inventory were maintained. The division's averageselling price increased further in the 39 week period, as did diamondparticipation in the sales mix. This reflected improved merchandising andcontinued emphasis on staff training. About 45% of fourth quarter sales areexpected to come from the more open, customer friendly store format. For thefirst time H.Samuel will have national television advertising support during theChristmas season while Ernest Jones will have similar regional coverage to lastyear. Group Central Costs, Financing Costs and Taxation In the 13 week period, Group central costs were £1.9 million (13 weeks to 29October 2005: £1.5 million); in the 39 weeks they were £5.6 million (39 weeks to29 October 2005: £4.7 million). Net financing costs for the 13 weeks were £2.9million (13 weeks to 29 October 2005: £2.5 million) and for the 39 weeks were£6.6 million (39 weeks to 29 October 2005: £5.9 million). The increase in netfinancing costs reflected the transition from the securitised borrowing facilitythat has just amortised to the new private placement note facility, andincremental borrowing as a result of the share buy back programme. The tax ratefor the 39 weeks to 28 October 2006 was 35.6% (39 weeks to 29 October 2005:34.5%). Purchase of Own Shares On 14 July 2006 the Company announced a programme to purchase its own ordinaryshares either to be cancelled or held in treasury. The Company is targeting tobuy back approximately £50 million before its fiscal year end on 3 February 2007and as at 28 October 2006 had purchased 22.0 million shares for £23.6 million. Net Debt Net debt at 28 October 2006 was £243.1 million (29 October 2005: £217.9million). The seasonal increase in net debt resulting from cash flows in the 39weeks to 28 October 2006 was £157.7 million before translation differences (39weeks to 29 October 2005: £121.2 million). The increase reflected the impact ofthe share buy back programme and timing of merchandise deliveries and payments.Capital expenditure during the year is expected to be about £75 million (2005/06: £75.9 million). Comment Terry Burman, Group Chief Executive, commented: "Group profit before tax in thenine months to date was 12.7% ahead of last year. Our US division continued totrade well. Despite trading conditions remaining difficult in the UK jewellerysector, our stores have shown an improved performance in the quarter. We continue to execute strategies in the UK and US to improve the competitivepositions of both businesses, which are in good shape and are well placed tocompete. As always, results for the year as a whole will be dependent on theoutcome during the very important fourth quarter which represents some 40% ofannual sales." 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 Pamela Small, Brunswick +44 (0) 20 7404 5959 Signet operated 1,875 speciality retail jewellery stores at 28 October 2006;these included 1,290 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 585 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. Extraordinary General Meeting A circular dated 7 November 2006 was sent to shareholders convening an EGM on 12December 2006 to seek shareholder approval for the Company to redenominate itsshare capital into US dollars. The document is available on the Company'swebsite www.signetgroupplc.com. 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 audiocast atwww.signetgroupplc.com. To help ensure the conference call begins in a timelymanner, could all participants please dial in 5 to 10 minutes prior to thescheduled start time. The call details are: European dial-in: +44 (0) 20 7806 1961 European 48hr replay: +44 (0) 20 7806 1970 Access code: 9661433# US dial-in: +1 718 354 1391 US 48hr replay: +1 718 354 1112 Access code: 9661433# The Christmas Trading Statement is expected to be released on Thursday 11January 2007. Investor Day and Store Tour, Akron, Ohio, Thursday 10 May 2007 It is intended to hold an Investor Day and Store Tour for professional investorsin Akron, Ohio on Thursday 10 May 2007. 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 2005/06 Annual Report on Form 20-F filed with the U.S. Securitiesand Exchange Commission on May 4, 2006 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 Unaudited interim consolidated income statementfor the 39 weeks ended 28 October 2006 13 weeks 13 weeks 39 weeks 39 weeks 52 weeks ended ended ended ended ended 28 October 29 October 28 October 29 October 28 January 2006 2005 2006 2005 2006____________________________________________________________________________________________________________ Notes £m £m £m £m £m____________________________________________________________________________________________________________ Sales 2 328.2 310.5 1,138.8 1,033.4 1,752.3Cost of sales (316.6) (299.7) (1,053.2) (953.5) (1,516.3)____________________________________________________________________________________________________________Gross profit 11.6 10.8 85.6 79.9 236.0Administrative expenses (16.5) (15.9) (54.2) (52.4) (74.1)Other operating income 11.6 10.6 37.3 33.5 46.3____________________________________________________________________________________________________________Operating profit 2 6.7 5.5 68.7 61.0 208.2Finance income 3 4.9 1.9 12.5 7.0 9.3Finance expense 3 (7.8) (4.4) (19.1) (12.9) (17.1)____________________________________________________________________________________________________________Profit before tax 3.8 3.0 62.1 55.1 200.4Taxation 4 (1.3) (1.0) (22.1) (19.0) (69.6)____________________________________________________________________________________________________________Profit for the financial period 2.5 2.0 40.0 36.1 130.8________________________________________________________________________________________________________________________________________________________________________________________________________________________Earnings per share - basic 6 0.1p 0.1p 2.3p 2.1p 7.5p - diluted 6 0.1p 0.1p 2.3p 2.1p 7.5p____________________________________________________________________________________________________________ All of the above relate to continuing activities. Unaudited consolidated balance sheetat 28 October 2006 28 October 29 October 28 January 2006 2005 2006________________________________________________________________________________________________________ Note £m £m £m________________________________________________________________________________________________________ AssetsNon-current assetsIntangible assets 23.6 21.3 22.9Property, plant and equipment 253.4 252.4 253.8Other receivables 15.2 13.9 14.3Deferred tax assets 16.5 13.1 17.4________________________________________________________________________________________________________ 308.7 300.7 308.4________________________________________________________________________________________________________Current assetsInventories 788.1 766.1 679.7Trade and other receivables 354.4 331.5 430.4Cash and cash equivalents 163.6 19.8 52.5________________________________________________________________________________________________________ 1,306.1 1,117.4 1,162.6________________________________________________________________________________________________________ Total assets 1,614.8 1,418.1 1,471.0________________________________________________________________________________________________________ LiabilitiesCurrent liabilitiesShort-term borrowings (206.7) (96.6) (151.1)Trade and other payables (223.9) (228.0) (217.1)Deferred income (47.6) (45.4) (50.4)Current tax (10.3) (7.5) (50.2)________________________________________________________________________________________________________ (488.5) (377.5) (468.8)________________________________________________________________________________________________________Non-current liabilitiesBank loans (200.0) (141.0) -Trade and other payables (38.0) (34.5) (36.0)Deferred income (61.2) (57.6) (65.6)Provisions (5.7) (5.5) (6.2)Retirement benefit obligation (14.8) (1.9) (15.5)________________________________________________________________________________________________________ (319.7) (240.5) (123.3)________________________________________________________________________________________________________ Total liabilities (808.2) (618.0) (592.1)________________________________________________________________________________________________________________________________________________________________________________________________________________Net assets 806.6 800.1 878.9________________________________________________________________________________________________________ EquityCapital and reserves attributable to equity shareholdersCalled up share capital 8.6 8.7 8.7Share premium 74.2 68.8 71.7Other reserves 115.0 132.2 138.2Retained earnings 608.8 590.4 660.3________________________________________________________________________________________________________Total equity 8 806.6 800.1 878.9________________________________________________________________________________________________________ Unaudited consolidated statement of recognised income and expensefor the 39 weeks ended 28 October 2006 13 weeks 13 weeks 39 weeks 39 weeks 52 weeks ended ended ended ended ended 28 October 29 October 28 October 29 October 28 January 2006 2005 2006 2005 2006________________________________________________________________________________________________________________________ £m £m £m £m £m________________________________________________________________________________________________________________________ Profit for the financial period 2.5 2.0 40.0 36.1 130.8Translation differences (15.9) (13.6) (43.5) 54.5 33.1Effective portion of changes in value of cash flow hedgesnet of recycling (1.5) - (1.0) 1.8 1.4Actuarial loss on retirement benefit scheme - - - - (11.4)________________________________________________________________________________________________________________________Total recognised income and expense for the period (14.9) (11.6) (4.5) 92.4 153.9________________________________________________________________________________________________________________________ Unaudited consolidated cash flow statementfor the 39 weeks ended 28 October 2006 13 weeks 13 weeks 39 weeks 39 weeks 52 weeks ended ended ended ended ended 28 October 29 October 28 October 29 October 28 January 2006 2005 2006 2005 2006________________________________________________________________________________________________________________________ £m £m £m £m £m________________________________________________________________________________________________________________________Cash flows from operating activities:Profit before tax 3.8 3.0 62.1 55.1 200.4Depreciation charges 13.0 10.4 37.9 31.2 46.2Net financing costs 2.9 2.5 6.6 5.9 7.8Increase in inventories (138.9) (147.4) (144.7) (157.2) (72.8)Decrease/(increase) in trade and other receivables 17.7 10.7 46.5 46.0 (51.4)Increase in payables and deferred income 36.9 76.8 14.2 50.8 53.0Other non-cash movements 1.3 1.0 3.0 3.0 4.9________________________________________________________________________________________________________________________Cash generated from operations (63.3) (43.0) 25.6 34.8 188.1Interest paid (3.1) (2.8) (8.6) (8.1) (11.4)Taxation paid (15.6) (13.2) (59.0) (54.9) (64.7)________________________________________________________________________________________________________________________Net cash from operating activities (82.0) (59.0) (42.0) (28.2) 112.0________________________________________________________________________________________________________________________Investing activities:Interest received 3.0 0.2 6.7 1.9 2.4Proceeds from sale of property, plant and equipment - 7.5 - 7.5 7.5Purchase of plant and equipment (20.1) (23.6) (48.2) (56.1) (70.4)Purchase of intangible assets (1.3) (0.6) (3.0) (3.3) (5.5)________________________________________________________________________________________________________________________Cash flows from investing activities (18.4) (16.5) (44.5) (50.0) (66.0)________________________________________________________________________________________________________________________Financing activities:Proceeds from issue of share capital 0.3 0.6 2.5 2.5 3.9Purchase of own shares (20.5) - (23.6) - (2.0)Increase in/(repayment of) borrowings 60.2 67.7 265.9 82.3 (46.6)Dividends paid - - (50.1) (45.5) (52.7)________________________________________________________________________________________________________________________Cash flows from financing activities 40.0 68.3 194.7 39.3 (97.4)________________________________________________________________________________________________________________________Reconciliation of movement in cash and cash equivalents:Net (decrease)/increase in cash and cash equivalents (60.4) (7.2) 108.2 (38.9) (51.4)Opening cash and cash equivalents 226.4 28.4 52.5 59.6 102.4Translation difference (2.4) (1.4) 2.9 (0.9) 1.5________________________________________________________________________________________________________________________Closing cash and cash equivalents 163.6 19.8 163.6 19.8 52.5________________________________________________________________________________________________________________________Reconciliation of cash flows to movement in net debt:(1)Change in net debt resulting from cash flows (120.6) (74.9) (157.7) (121.2) (4.8)Translation difference 0.6 (2.7) 13.2 (13.2) (10.3)________________________________________________________________________________________________________________________Movement in net debt in the period (120.0) (77.6) (144.5) (134.4) (15.1)Opening net debt (123.1) (140.3) (98.6) (83.5) (83.5)________________________________________________________________________________________________________________________Closing net debt (243.1) (217.9) (243.1) (217.9) (98.6)________________________________________________________________________________________________________________________(1) Net debt represents cash and cash equivalents, short-term borrowings andbank loans. Notes to the unaudited interim financial resultsfor the 39 weeks ended 28 October 2006 1. Basis of preparation These interim financial statements have been prepared applying the accountingpolicies set out in the Group's Annual Report and Accounts for the year ended 28January 2006. 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 52 weeks ended 28 January 2006 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 Companiesfollowing the Company's Annual General Meeting. The report of the auditors wasunqualified and did not contain a statement under Section 237(2) or Section 237(3) of the Companies Act 1985. 2. Segment information 13 weeks 13 weeks 39 weeks 39 weeks 52 weeks ended ended ended ended ended 28 October 29 October 28 October 29 October 28 January 2006 2005 2006 2005 2006________________________________________________________________________________________________________________________ £m £m £m £m £m________________________________________________________________________________________________________________________Sales by origin and destinationUK, Channel Islands & Republic of Ireland 92.7 90.5 278.4 273.8 469.6US 235.5 220.0 860.4 759.6 1,282.7________________________________________________________________________________________________________________________ 328.2 310.5 1,138.8 1,033.4 1,752.3________________________________________________________________________________________________________________________Operating (loss)/profitUK, Channel Islands & Republic of Ireland - Trading (1.1) (2.5) (4.5) (4.9) 49.1 - Group central costs (1.9) (1.5) (5.6) (4.7) (8.0)________________________________________________________________________________________________________________________ (3.0) (4.0) (10.1) (9.6) 41.1US 9.7 9.5 78.8 70.6 167.1________________________________________________________________________________________________________________________ 6.7 5.5 68.7 61.0 208.2________________________________________________________________________________________________________________________The Group's results derive from one business segment - the retailing ofjewellery, watches and gifts. 3. Net financing costs 13 weeks 13 weeks 39 weeks 39 weeks 52 weeks ended ended ended ended ended 28 October 29 October 28 October 29 October 28 January 2006 2005 2006 2005 2006________________________________________________________________________________________________________________________ £m £m £m £m £m________________________________________________________________________________________________________________________Interest payable (6.1) (2.8) (14.0) (8.1) (11.4)Net finance income from pension scheme 0.2 0.1 0.7 0.3 1.2Interest receivable 3.0 0.2 6.7 1.9 2.4________________________________________________________________________________________________________________________ (2.9) (2.5) (6.6) (5.9) (7.8)________________________________________________________________________________________________________________________ Notes to the unaudited interim financial resultsfor the 39 weeks ended 28 October 2006 4. Taxation 13 weeks 13 weeks 39 weeks 39 weeks 52 weeks ended ended ended ended ended 28 October 29 October 28 October 29 October 28 January 2006 2005 2006 2005 2006________________________________________________________________________________________________________________________ £m £m £m £m £m________________________________________________________________________________________________________________________Taxation - UK (0.6) 1.0 1.2 2.6 (12.9)Taxation - US (0.7) (2.0) (23.3) (21.6) (56.7)________________________________________________________________________________________________________________________ (1.3) (1.0) (22.1) (19.0) (69.6)________________________________________________________________________________________________________________________The net taxation charges in the income statements for the 13 weeks and 39 weeksended 28 October 2006 have been based on the anticipated effective taxation ratefor the 53 weeks ending 3 February 2007. 5. Translation differences The exchange rates used for the translation of US dollar transactions andbalances in these interim statements are as follows: 28 October 29 October 28 January 2006 2005 2006________________________________________________________________________________ Income statement (average rate) 1.83 1.84 1.80Balance sheet (closing rate) 1.90 1.78 1.77________________________________________________________________________________ The effect of restating the balance sheet at 29 October 2005 to the exchangerates ruling at 28 October 2006 would be to decrease net debt by £7.7 million to£210.2 million. Restating the income statement would increase the pre-tax profitfor the 39 weeks ended 29 October 2005 by £0.4 million to £55.5 million. 6. Earnings per share 13 weeks 13 weeks 39 weeks 39 weeks 52 weeks ended ended ended ended ended 28 October 29 October 28 October 29 October 28 January 2006 2005 2006 2005 2006________________________________________________________________________________________________________________________ £m £m £m £m £m________________________________________________________________________________________________________________________Profit attributable to shareholders 2.5 2.0 40.0 36.1 130.8________________________________________________________________________________________________________________________ Weighted average number of shares in issue (million) 1,729.4 1,736.6 1,736.3 1,736.3 1,736.6Dilutive effect of share options (million) 4.3 5.5 3.2 5.8 3.3________________________________________________________________________________________________________________________Diluted weighted average number of shares (million) 1,733.7 1,742.1 1,739.5 1,742.1 1,739.9________________________________________________________________________________________________________________________Earnings per share - basic 0.1p 0.1p 2.3p 2.1p 7.5p - diluted 0.1p 0.1p 2.3p 2.1p 7.5p________________________________________________________________________________________________________________________The number of shares in issue at 28 October 2006 was 1,719,771,631 (29 October2005: 1,736,757,673 shares, 28 January 2006: 1,738,843,382 shares). 7. Dividend A dividend of 0.4434p per share was paid on 3 November 2006 to shareholders onthe register of members at the close of business on 22 September 2006. Notes to the unaudited interim financial resultsfor the 39 weeks ended 28 October 2006 8. Unaudited changes in total equity 39 weeks ended 28 October 2006 Share Share Revaluation Special Purchase of Retained Total capital premium reserve reserves own shares earnings________________________________________________________________________________________________________________________ £m £m £m £m £m £m £m________________________________________________________________________________________________________________________ Balance at 28 January 2006 8.7 71.7 4.3 142.2 (8.3) 660.3 878.9Recognised income and expense: - Profit for the financial period - - - - - 40.0 40.0 - Effective portion of changes in value of cash flow hedges net of recycling - - - - - (1.0) (1.0) - Translation differences - - - - - (43.5) (43.5)Equity-settled transactions - - - - - 3.1 3.1Dividend - - - - - (50.1) (50.1)Share options exercised - 2.5 - - 0.3 - 2.8Purchase of own shares (0.1) - - - (23.5) - (23.6)________________________________________________________________________________________________________________________Balance at 28 October 2006 8.6 74.2 4.3 142.2 (31.5) 608.8 806.6________________________________________________________________________________________________________________________9. 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 28 October 2006 39 weeks 39 weeks Growth at Impact of At constant Growth at ended ended actual exchange rate exchange constant 28 October 29 October exchange movement rates exchange 2006 2005 rates (non-GAAP) rates (non-GAAP)________________________________________________________________________________________________________________________ £m £m % £m £m %________________________________________________________________________________________________________________________Sales by origin and destinationUK, Channel Islands & Republic of Ireland 278.4 273.8 1.7 - 273.8 1.7US 860.4 759.6 13.3 4.2 763.8 12.6________________________________________________________________________________________________________________________ 1,138.8 1,033.4 10.2 4.2 1,037.6 9.8________________________________________________________________________________________________________________________ Operating (loss)/profitUK, Channel Islands & Republic of Ireland - Trading (4.5) (4.9) n/a - (4.9) n/a - Group central costs (5.6) (4.7) n/a - (4.7) n/a________________________________________________________________________________________________________________________ (10.1) (9.6) n/a - (9.6) n/aUS 78.8 70.6 11.6 0.4 71.0 11.0________________________________________________________________________________________________________________________ 68.7 61.0 12.6 0.4 61.4 11.9________________________________________________________________________________________________________________________Profit before tax 62.1 55.1 12.7 0.4 55.5 11.9________________________________________________________________________________________________________________________ At 28 October 2006 28 October 29 October Impact of At constant 2006 2005 exchange exchange rates rate movement (non-GAAP)________________________________________________________________________________ £m £m £m £m________________________________________________________________________________ Net debt (243.1) (217.9) 7.7 (210.2)________________________________________________________________________________ Notes to the unaudited interim financial resultsfor the 39 weeks ended 28 October 2006 9. Impact of constant exchange rates (continued) 13 weeks ended 28 October 2006 13 weeks 13 weeks Growth at Impact of At constant Growth at ended ended actual exchange rate exchange constant 28 October 29 October exchange movement rates exchange 2006 2005 rates (non-GAAP) rates (non-GAAP)________________________________________________________________________________________________________________________ £m £m % £m £m %________________________________________________________________________________________________________________________Sales by origin and destinationUK, Channel Islands & Republic of Ireland 92.7 90.5 2.4 - 90.5 2.4US 235.5 220.0 7.0 (10.7) 209.3 12.5________________________________________________________________________________________________________________________ 328.2 310.5 5.7 (10.7) 299.8 9.5________________________________________________________________________________________________________________________ Operating (loss)/profitUK, Channel Islands & Republic of Ireland - Trading (1.1) (2.5) n/a - (2.5) n/a - Group central costs (1.9) (1.5) n/a - (1.5) n/a________________________________________________________________________________________________________________________ (3.0) (4.0) n/a - (4.0) n/aUS 9.7 9.5 2.1 (1.2) 8.3 16.9________________________________________________________________________________________________________________________ 6.7 5.5 21.8 (1.2) 4.3 55.8________________________________________________________________________________________________________________________ Profit before tax 3.8 3.0 26.7 (1.2) 1.8 111.1________________________________________________________________________________________________________________________ This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
SIG.L