20th Mar 2007 07:00
Headlam Group PLC20 March 2007 20 March 2007 Preliminary Results for the Year Ended 31 December 2006 Headlam Group plc ("Headlam"), Europe's leading floorcoverings distributor,announces its final results for the year ended 31 December 2006. Financial highlights 2006 2005 Change £000 £000 Revenue 509,899 486,635 +4.8% Operating profit 43,941 41,498 +5.9% Profit before tax 43,558 40,840 +6.7% Basic earnings per share 35.1p 33.1p +6.0% Dividend per share 20.15p 18.00p +11.9% Key points • UK turnover increased by 4.1% on a like for like basis • Profit before tax improved by 6.7% • Maintaining investment in facilities, product and sales and marketing • Cash flow from operating activities increased by 32.4% to £30.1 million • Final dividend increased by 12.5% from 13.6p to 15.3p Tony Brewer, Headlam's Group Chief Executive, said: "We continue to actively invest in sales and marketing initiatives throughoutour businesses in the UK and Continental Europe, supported by our comprehensivedistribution network. The management teams of these individual businesses are clearly focused ondelivering the objectives before them and we look forward to achieving anothersuccessful year." Enquiries: Headlam Group plcTony Brewer, Group Chief Executive Tel: 01675 433000Stephen Wilson, Group Finance Director Chairman's Statement During 2006, market conditions in the UK, in both residential and particularlycommercial floorcoverings, have been favourable. Increased contributions acrosseach of our business sectors and all product categories have enabled the groupto achieve another record year in revenue and profitability. Revenue from the group's activities amounted to £509.9 million, an increase of4.8% on last year and profit before tax increased by 6.7% to £43.6 million. Earnings and dividend Basic earnings per share increased by 6.0% from 33.1p to 35.1p. Your board isrecommending a final dividend of 15.30p per share, an increase of 12.5% on lastyear. This increases the total dividend for the year by 11.9% from 18.00p to20.15p. If approved by shareholders at the forthcoming Annual General Meeting,the final dividend will be paid on 2 July 2007 to shareholders on the registerat 8 June 2007. Strategy The group is committed to being the leading distributor of floorcoverings in theUK and Continental Europe. During the ongoing development of our businesses, itis not our intention to diversify away from our focus on floorcoveringdistribution. To retain our position as the leading distributor of floorcoverings in Europe,we will continue to invest in the infrastructure of the business. Over the lasttwelve years we have invested in eleven new facilities, giving our businessesincreased capacity and the latest floorcovering material handling technologykeeping us at the forefront of the floorcovering industry. Operations We continue to develop and maintain our close relationship with the leadingworldwide floorcovering manufacturers. Our 47 businesses in the UK operate infive clearly defined business sectors, working closely with these suppliers andsubsequently with our customers. We employ 320 external sales people who arepositioning new product into the independent retailer and flooring contractor ona daily basis. This ensures that our customers have the latest product offeringwhich is supported by a next day delivery service through our fleet of 420commercial vehicles. Whilst encouraging the autonomy of individual businessoperations, they each operate to a specific strategy relevant to their ownmarket position and also comply with consistent operational procedures andfinancial disciplines. The management teams of these individual businesses are working to clearlydefined budgets and specific objectives. They are measured and incentivised onthe performance of their individual business responsibility. We believe thisautonomous business structure is a major strength that allows us to manage ourmarket position and thereby removes a large element of risk within our business. The improvements we have made in our three Continental European businesses in France, Switzerland and the Netherlands have resulted in a further increase in revenue and profitability. Employees We wish to thank all management and employees for their contribution to thegroup's ongoing success. The autonomous structure of our business operationshas developed a culture of individuality, whilst benefiting from opportunitiesthroughout the group. We have had many instances over a number of years whereemployees have developed into senior sales and management roles. This policy ofinternal promotion wherever possible, gives all employees the opportunity forsignificant career development within the group. Outlook Through our clearly focused structure, which exists in each of our five businesssectors, we are confident that our individual management teams and theautonomous businesses, for which they are responsible, will continue to exceedmarket conditions. The group has made a positive start to 2007 in both the UK and ContinentalEurope and is well positioned to achieve its objectives for the year. Graham Waldron, Chairman Chief Executive's Review Conditions in the UK floorcovering market during 2006 in both residential andparticularly commercial flooring were positive. This enabled us to grow our UKbusinesses by 4.1% on a like for like basis and total sales by 4.6%. Our businesses in Continental Europe prospered with solid performances fromFrance and Switzerland and a particularly strong performance from theNetherlands. These businesses achieved a collective like for like salesincrease of 5.6%. UK operations We have previously categorised our businesses into four specific sectors.However, due to the growing importance of our Regional multi-product commercialoperations, we have now increased our business sectors to five: Regional multi-product: we have 20 businesses throughout the UK which provide acomprehensive product offering of both residential and commercial floorcovering.Through close liaison with our manufacturers and local relationships withcustomers, these businesses create a substantial market presence and endeavourto provide an excellent service. During 2006, the businesses increased theirsales by 3.7%. National multi-product: Mercado has a comprehensive distribution networkenabling it to supply residential and commercial flooring throughout England,Wales and Northern Ireland. Through its experienced sales team, substantialstock holding and delivery infrastructure, Mercado increased its business by5.8%. Regional commercial: the newly formed sector, developed through the emergenceof existing businesses and also recent acquisitions, now has nine locationsthroughout England and Northern Ireland. The businesses benefit from strongrelationships in the commercial flooring market, with both manufacturers andparticularly with flooring contractors. Whilst they were able to increase theirbusiness by 7.9% in 2006, there are significant opportunities to increase thegeographical coverage both through acquisition and organic growth. Residential specialist: these 12 businesses supply medium to premium end carpetproducts. Through their product innovation and additional marketing initiativesthey were able to increase their business by 6.0%. Through further investmentin sales and marketing we can substantially increase the presence of thesebusinesses in the premium sector. Commercial specialist: these three businesses are focused in specific areas ofthe commercial flooring market, principally healthcare, education and governmentinstallations. All three businesses performed to expectations in 2006 and wereable to grow their business by 8.7%. Customers Customers, who are principally independent floorcovering retailers andcontractors, continue to prosper. With the benefit of our distribution network,extensive product range and sales and marketing initiatives we have increasedthe number of active accounts to 36,225 (2005: 35,748). Products Carpet is still our largest product group, representing 49% of UK sales. Duringthe year we launched 2,690 (2005: 2,486) new products supported by 665,000(2005: 626,482) point of sale items positioned in independent retailers. Thisongoing activity enabled us to increase sales by 1.1%. Sales of carpet in theUK are dominated by plain product consisting of twist pile in eitherpolypropylene or wool and loop pile natural effects, again in polypropylene orwool. Residential vinyl business, which accounts for 13% of UK sales, increased by4.2%. During the year we placed 132,000 (2005: 167,360) new point of sale itemsto support the launch of 622 (2005: 693) new products. The residential vinylmarket in the UK has moved significantly towards slip resistant products. Thisgives the benefit of both safety and an enhanced reproduction of various typesof natural flooring. We believe this improved product has increased our salesof residential vinyl, particularly through the independent retail sector. Wood and laminate, which contribute 5% to the UK sales, have seen a recovery during the year, increasing by 10.2%. We believe there are still extensive opportunities to increase our market presence not only in laminate flooring,but also in engineered and solid wood. Commercial Flooring represents 27% of UK sales. Through the various activitiesof our regional and national multi-product businesses and also the regionalcommercial and commercial specialist businesses, we were able to increase salesof commercial products by 10.2% during 2006. Market information would suggestthat this particular sector has been fairly buoyant, but we believe our increasewill have outperformed the market and consequently increased our market share. Information Technology and Material Handling We continue to enhance our software and invest in the latest hardware toposition our businesses at the forefront of technology, both operationally andfinancially. As previously reported, with the introduction of our IT platforminto the French business in 2006, we now operate all businesses in the UK andContinental Europe from the same platform which gives both operationalconsistency and standardised financial disciplines. We made a major step forward in material handling during 2005 with theintroduction of the despatch sortation system at Tamworth. This system wasincorporated into the construction of the new facility for Wilkies in Leedswhich became operational in October 2006. We also retrospectively installed a sortation system into the Coleshill distribution centre in the first quarter of2007. We envisage that our new facilities will incorporate this system which significantly enhances material handling capability and improves cost effectiveness. Investments During 2006 we completed the construction of the 105,000 square foot purposebuilt freehold distribution facility for Wilkies, our regional multi-productbusiness based in Leeds. This facility became operational in October 2006 andwe anticipate that Wilkies will be able to significantly develop theirresidential and commercial business in the north of England over the comingyears. Following the appropriate planning permission, we have now purchased land inBridgend, South Wales to enable us to re-house MCD Wales. This will beconstructed during the course of this year and will be operational towards theend of 2007. The strong cash generation by our operations allows continued investment tostrengthen further the group's position. We have other projects at variousstages of the planning and development process, to ensure that the group remainsthe leader in European floorcovering distribution. Europe It is particularly pleasing that we recorded a continued improvement in allthree of our Continental European businesses in France, Switzerland and theNetherlands. This combined performance showed a sales increase of 5.6% and anincrease in operating profit of 12.6%. Each of our businesses has seen improving market conditions progressively during2006. This, in conjunction with sales, marketing and operational improvementsthat we have made over previous years, has contributed to this result. With this improving trend, we have continued to assess other opportunities toenlarge our presence in Continental Europe. Acquisitions In September 2006 we acquired the business of Concept (Midlands) Limited, basedin West Bromwich. The acquisition of this business, along with the developmentof other regional commercial operations, has enabled us to increase thestructure of our business sectors from four to five. We continue to evaluate potential acquisitions in both the commercial andresidential markets in the UK, in addition to opportunities in ContinentalEurope. We envisage further additions to the group over the coming months. Outlook We continue to actively invest in sales and marketing initiatives throughout ourbusinesses in the UK and Continental Europe, supported by our comprehensivedistribution network. The management teams of these individual businesses are clearly focused ondelivering the objectives before them and we look forward to achieving anothersuccessful year. Tony Brewer, Group Chief Executive Financial review Trading performance Group revenue increased during the year by 4.8% from £486.6 million to £509.9million. As already highlighted, like for like improvement from the UKbusinesses amounted to 4.1% whilst the Continental European businesses achieveda collective like for like increase of 5.6%. In addition to the like for like increases in the UK, group revenue alsoincludes the first full year revenues amounting to £5.6 million from Clarendonand Gaskell Wool Rich, the two businesses acquired during 2005, and acontribution of £0.6 million from Concept (Midlands), which was acquired duringOctober 2006. The group's operating profit increased by 5.9% from £41.5 million to £43.9million with the UK and Continental European businesses achieving increasesbefore unallocated corporate expenses of 4.2% and 12.6% respectively. Financial income and expense Net financial expenses decreased from £658,000 to £383,000. This wasattributable to a reduction in the net cost of pension plans falling from£510,000 to £363,000 and a decrease in net interest payable from £148,000 to£20,000. Taxation The effective rate of taxation reduced marginally from 30.2% to 30.0%. The ratereflects the group's current mix of business and it is anticipated that theeffective tax rate should remain at these levels for the foreseeable future. Earnings and dividends per share During the year, basic earnings per share increased by 6.0% from 33.1 pence pershare to 35.1 pence per share. Dividends per share increased by 11.9% from 18.00 pence to 20.15 pence whichrepresents a payout ratio of 57.4% of basic earnings per share compared with54.4% for the previous year. The board anticipates maintaining a progressivedividend increase over the next three years with the intention of achieving apayout ratio of approximately 67.0% of earnings by the end of 2009. Shareholder returns The board recognises that it has a responsibility to shareholders to ensure thatthe group generates a sustainable return on shareholders funds and maintainsinvestment in the business to support future growth. Total shareholder return, being the increase in the share price plus reinvesteddividends, has been 182.8% over the last five years compared to the FTSE Mid 250average of 122.8%. Over the last three years, it has been 106.0% compared withthe FTSE Mid 250 average of 111.9% and during the last year, 47.6% compared withthe FTSE Mid 250 average of 32.1%. Return on average shareholders funds during 2006 amounted to 30.2% compared with31.6% for the previous year. The modest dilution during the year is a result ofthe significant investment in new and extended facilities undertaken during thelast few years. As highlighted in the Chairman's Statement, this commitment toinvesting in modern, efficient facilities has maintained our position as theleading European floorcoverings distributor. However, whilst this activitybrings medium to long term benefits, the immediate consequence is an increase inthe cost base since the new facilities are generally larger than the ones theyreplace. Depending on the level of investment undertaken, this increase in thecost base can give rise to short term dilution in the return on averageshareholders funds. Cash flows and net funds Cash generated from operating activities Net cash generated from operating activities during the year was £30.1 million,a net increase of £7.4 million compared with last year. The two significantmovement's year on year were; the reduced investment in working capitalamounting to £9.0 million and the increase in additional pension fundcontributions of £3.2 million. During 2006 net working capital investment, £1.8 million, reduced to more normallevels compared with the exceptional amount, £10.7 million, invested during theprevious year. Expenditure in 2005 reached this level because of the increasedinventory requirement created by the significant additional capacity from thenew and extended facilities. Generally, when one new facility becomesoperational during the year, the additional working capital requirements can bemanaged without any material increase. Additional contributions to the defined benefit pension plan during the yearamounted to £3.9 million compared with £0.7 million during the previous year. Cash flows from investing activities Net cash outflows from investing activities totalled £10.4 million compared with£9.5 million during 2005. Investment in property, plant and equipment amountedto £12.9 million compared with £11.0 million for 2005. The largest item ofexpenditure was £8.9 million incurred on the completion of the Wilkies propertybringing the total cost of this facility to £10.9 million. In addition, £1.5million was expended on acquiring the freehold interest in the property occupiedby our business in the Netherlands and £2.5 million on routine maintenanceprojects. Subject to planning approval, we anticipate the level of expenditureduring 2007 to be no greater than £12.9 million. Changes in net funds Group net funds increased from £35.5 million to £40.6 million during the year asdetailed in the table below. Acquisitions At excluding At 1 January Cash cash and Translation 31 December 2006 flows overdrafts differences 2006 £000 £000 £000 £000 £000 Cash at bank andin hand 36,193 5,725 - (57) 41,861Bank overdraft - (1,022) - 12 (1,010) ------- ------- ------- ------- ------- 36,193 4,703 - (45) 40,851 ------- ------- ------- ------- -------Finance leasesand similar hirepurchase contracts (738) 497 (26) - (267) ------- ------- ------- ------- ------- 35,455 5,200 (26) (45) 40,584 ------- ------- ------- ------- ------- However, over the course of the year, the group's net funds, as was the case for2005, remained in a position that was very close to neutral. Employee benefits During the year, the net deficit relating to the defined benefit pension plans,as measured under IAS 19, decreased by £3.3 million from £20.5 million to £17.2million. The two key drivers contributing to the reduction were the continuedrevival in equity values and the additional contribution of £3.9 millionreferred to above. Additional contributions during 2007 are expected to be £1.1million. Stephen Wilson, Group Finance Director Consolidated income statementfor the year ended 31 December 2006 Note 2006 2005 £000 £000 Revenue 1 509,899 486,635Cost of sales (350,506) (336,570) -------- -------- Gross profit 159,393 150,065 Distribution expenses (81,623) (77,507)Administrative expenses (33,829) (31,060) -------- -------- Operating profit 1 43,941 41,498 Financial income 4,926 3,893Financial expenses (5,309) (4,551) -------- -------- Net financing costs (383) (658) -------- -------- Profit before tax 43,558 40,840Taxation (13,067) (12,352) -------- -------- Profit for the year attributableto the equity shareholders 30,491 28,488 -------- -------- Dividend paid per share 3 18.00p 16.25p Earnings per shareBasic 2 35.1p 33.1p -------- -------- Diluted 2 34.8p 32.8p -------- -------- All group operations during the financial years were continuing operations. Consolidated statement of recognised income and expensefor the year ended 31 December 2006 2006 2005 £000 £000Foreign exchange translation differencesarising on translation of overseas operations (419) (321)Recycling of cash flow hedging reserve balance - 13Actuarial gains and losses on defined benefitpension plans (173) (2,571) -------- --------Tax recognised on income and expensesrecognised directly in equity 1,057 910 -------- -------- Net income recognised directly in equity 465 (1,969) Profit for the year 30,491 28,488 -------- -------- Total recognised income and expenseattributable to the equity shareholders 30,956 26,519 -------- -------- Consolidated balance sheetat 31 December 2006 Note 2006 2005 £000 £000Non-current assets Property, plant and equipment 85,032 74,640 Intangible assets 13,210 13,210 Deferred tax assets 9,182 8,199 --------- --------- 107,424 96,049 --------- ---------Current Assets Inventories 94,217 91,160 Trade and other receivables 91,284 84,275 Cash and cash equivalents 41,861 36,193 --------- --------- 227,362 211,628Non-current assets classifiedas held for sale - 3,471 --------- ---------Total assets 1 334,786 311,148 --------- --------- Current liabilities Bank overdraft (1,010) - Other interest-bearing loans and borrowings (267) (471) Trade and other payables (149,422) (141,529) Employee benefits (1,102) (1,080) Income tax payable (10,184) (11,139) --------- --------- (161,985) (154,219) --------- ---------Non-current liabilities Other interest-bearing loans and borrowings - (267) Employee benefits (16,124) (19,432) Deferred tax liabilities (3,665) (1,403) --------- --------- (19,789) (21,102) --------- ---------Total liabilities 1 (181,774) (175,321) --------- ---------Net assets 153,012 135,827 --------- --------- Consolidated balance sheet (continued)at 31 December 2006 Note 2006 2005 £000 £000Equity attributable to equity holders of the parent Share capital 4 4,354 4,326 Share premium 4 53,428 52,280 Translation reserves 4 (616) (577) Retained earnings 4 95,846 79,798 --------- ---------Total equity 153,012 135,827 --------- --------- Consolidated cash flow statementfor the year ended 31 December 2006 2006 2005 £000 £000Cash flows from operating activitiesProfit before tax for the year 43,558 40,840 Adjustments for: Depreciation, amortisation and impairment 4,974 5,133 Financial income (4,926) (3,893) Financial expense 5,309 4,551 Loss/(profit) on sale of property, plant and equipment 10 (228) Equity settled share-based payment expenses 472 196 --------- --------- Operating profit before changes in working capital and provisions 49,397 46,599 (Increase)/decrease in trade and other receivables (6,810) 1,699 Increase in inventories (2,930) (11,335) Increase/(decrease) in trade and other payables 7,987 (1,085) --------- --------- Cash generated from the operations 47,644 35,878 Interest paid (2,023) (1,456) Tax paid (11,622) (10,994) Additional contributions to defined benefit pension plans (3,927) (722) --------- ---------Net cash from operating activities 30,072 22,706 --------- --------- Cash flows from investing activities Proceeds from sale of property, plant and equipment 1,816 598 Interest received 2,001 1,335 Acquisition of subsidiary, net of cash acquired (1,369) (426) Acquisition of property, plant and equipment (12,884) (10,965) --------- ---------Net cash from investing activities (10,436) (9,458) --------- --------- Cash flows from financing activities Proceeds from the issue of share capital 1,176 570 Repayment of borrowings - (662) Payment of finance lease liabilities (497) (438) Dividends paid (15,612) (13,976) --------- ---------Net cash from financing activities (14,933) (14,506) --------- --------- Net increase/(decrease) in cash and cash equivalents 4,703 (1,258) Cash and cash equivalents at 1 January 36,193 37,468 Effect of exchange rate fluctuations of cash held (45) (17) --------- ---------Cash and cash equivalents at 31 December 40,851 36,193 --------- --------- Notes 1. Segment reporting The group's activities are wholly aligned to the sales, marketing, supply anddistribution of floorcovering products. These activities are carried out frombusiness centres located in both the UK and Continental Europe. The group'sinternal management structure and financial reporting systems treat the UK andContinental Europe as two separate segments because of the difference in rewardarising from these two markets and this forms the basis for the geographicalpresentation of the primary segment information given below. UK Continental Europe Total 2006 2005 2006 2005 2006 2005 £000 £000 £000 £000 £000 £000RevenueExternal sales 434,321 415,038 75,578 71,597 509,899 486,635 ------- ------- ------- ------- ------- -------ResultSegment result 43,670 41,905 2,044 1,815 45,714 43,720 ------- ------- ------- ------- ------- -------Unallocatedcorporate expenses (1,773) (2,222) ------- ------- Operating profit 43,941 41,498 Financial income 4,926 3,893Financial expense (5,309) (4,551)Taxation (13,067) (12,352) ------- -------Profit for the year 30,491 28,488 ------- ------- Other informationSegment assets 293,280 271,074 32,324 28,404 325,604 299,478 Unallocated assets 9,182 11,670 ------- -------Consolidated totalassets 334,786 311,148 ------- ------- Segmentliabilities (133,493) (127,258) (17,206) (15,009) (150,699) (142,267) Unallocatedliabilities (31,075) (33,054) -------- --------Consolidated totalliabilities (181,774) (175,321) --------- --------- Capital expenditure 10,882 10,461 2,002 503 12,884 10,964Depreciation 3,610 3,451 674 631 4,284 4,082Amortisation 690 836 - - 690 836Asset impairment - 215 - - - 215 Each segment is a continuing operation. Unallocated assets comprise deferred tax assets and assets held for resale.Unallocated liabilities comprise income tax, deferred tax liabilities andemployee benefits. Management has access to information that provides details on sales and grossmargin by principal product group and across the five principal business sectorswhich comprise Regional multi-product, National multi-product, Regionalcommercial, Residential specialist and Commercial specialist. However, thisinformation is not provided as a secondary segment since the group's operationsare not managed by reference to these sub classifications and the presentationwould require an arbitrary allocation of overheads, assets and liabilitiesundermining the presentations validity and usefulness. Notes (continued) 2. Earnings per share The calculation of the basic and diluted earnings per share is based on thefollowing data: 2006 2005 £000 £000Earnings Earnings for the purposes of basic and dilutedearnings per share being profit attributable toequity holders of the parent 30,491 28,488 ------- ------- 2006 2005Number of sharesIssued ordinary shares at 1 January 86,512,854 86,111,437Effect of shares issued during the period 416,237 86,272 ----------- -----------Weighted average number of ordinary shares forthe purposes of basic earnings per share 86,929,091 86,197,709 ----------- ----------- Effect of diluted potential ordinary shares: Weighted average number of ordinary shares at 31 December 86,929,091 86,197,709 Share options 2,046,461 2,407,331 Number of shares that would have been issued at fair value (1,422,270) (1,813,602) ----------- ----------- Weighted average number of ordinary shares forthe purposes of diluted earnings per share 87,553,282 86,791,438 ----------- ----------- 3. Dividends 2006 2005 £000 £000 Interim dividend for 2005 of 4.40p paid 3 January 2006 3,789 -Final dividend for 2005 of 13.60p paid 3 July 2006 11,823 -Interim dividend for 2004 of 4.00p paid 3 January 2005 - 3,421Final dividend for 2004 of 12.25p paid 4 July 2005 - 10,555 --------- ---------- 15,612 13,976 --------- ---------- The final proposed dividend of 15.30p per share (2005: 13.60p per share) willnot be provided for until authorised by shareholders at the forthcoming AnnualGeneral Meeting. Interim dividends of 4.85p per share (2005: 4.40p per share) are provided forwhen the dividend is paid. The total value of dividends proposed but not recognised at 31 December 2006 is£17,526,000(2005: £15,612,000). Notes (continued) 4. Capital and reserves Share Share Translation Cash flow Retained Total capital premium reserve hedging earnings equity reserve £000 £000 £000 £000 £000 £000 Balance at 1 January 2005 4,306 51,731 (256) (13) 66,579 122,347Total recognisedincome and expense - - (321) 13 26,827 26,519Equity-settled share based paymenttransactions - - - - 196 196Share optionsexercised byemployees 20 549 - - - 569Deferred tax onSchedule 23 share options(pre Nov 2002) - - - - 172 172Dividends - - - - (13,976) (13,976) ------- ------- ------- ------- ------- -------Balance at 31 December 2005 4,326 52,280 (577) - 79,798 135,827 ------- ------- ------- ------- ------- ------- Balance at 1 January 2006 4,326 52,280 (577) - 79,798 135,827Transfer betweenreserves - - 380 - (380) -Total recognisedincome and expense - - (419) - 31,375 30,956Equity-settled share based paymenttransactions - - - - 472 472Share optionsexercised byemployees 28 1,148 - - - 1,176Deferred tax onSchedule 23share options(pre Nov 2002) - - - - 193 193Dividends - - - - (15,612) (15,612) ------- ------- ------- ------- ------- -------Balance at31 December 2006 4,354 53,428 (616) - 95,846 153,012 ------- ------- ------- ------- ------- ------- Notes (continued) The financial information set out above does not constitute the company'sstatutory accounts for the years ended 31 December 2006 or 2005. Statutoryaccounts for 2005 have been delivered to the registrar of companies, and thosefor 2006 will be delivered in due course. The auditors have reported on thoseaccounts; their reports were (i) unqualified, (ii) did not include references toany matters to which the auditors drew attention by way of emphasis withoutqualifying their reports, and (iii) did not contain statements under section 237(2) or (3) of the Companies Act 1985. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Headlam