22nd Nov 2006 07:01
United Drug PLC22 November 2006 United Drug plc Preliminary Announcement of Results Year ended 30 September 2006 Highlights 2006 2005 Increase •'000 •'000 Revenue: including Group share of joint ventures 1,914,995 1,738,036 10% Group revenue 1,459,016 1,325,915 10% Trading profit* 58,074 50,990 14% Profit before tax** 55,198 48,367 14% Adjusted diluted earnings per share (cent)*** 20.22c 17.77c 14% Dividend per share (cent) 6.35c 5.50c 15% * excluding intangible amortisation, property profit (2005) and including shareof joint ventures profit before financing costs ** excluding intangible amortisation, property profit (2005) and share of jointventures tax charge *** excluding intangible amortisation and property profit (2005) United Drug believes that the adjusted trading profit, adjusted profit beforetax and adjusted diluted earnings per share are more appropriate measures of theunderlying group performance. Preliminary Announcement At a meeting of the Board of Directors, the preliminary announcement of theGroup for the year ended 30 September 2006 was approved. The Group IncomeStatement, Balance Sheet, Cash Flow Statement and Statement of Recognised Incomeand Expense, with comparative figures for the previous year, are attached. Statement The 2006 financial year represents another significant milestone in thedevelopment of United Drug. In addition to adding to our 20 year track record ofdelivering double digit profit and earnings growth, the Company has takensignificant strides forward with acquisitions and green field initiatives in theUK and Ireland that have broadened our service offering in the manufacturerfacing businesses. We have also bedded down our recently enhanced infrastructureto support our growing businesses. All of this has been achieved in a businessthat has seen a further improvement in margins and a strong cash flow that willsupport future growth. Group turnover in 2006 of A1.46 billion increased by 10% over 2005. Headlineprofit before intangible amortisation, property profit and tax of A55.2 millionis up by 14% and fully diluted earnings per share measured on the same basisincreased 14% to 20.22 cent. The Company's continued commitment to a progressive dividend policy and ourstrong cash flow is reflected in a proposed final dividend for 2006 of 4.64 centper share, an increase of 16% over the 2005 final dividend. Combined with theinterim dividend of 1.71 cent per share paid during the year, the proposeddividend brings the total dividend payable to shareholders for 2006 to 6.35 centper share, an increase of 15% on the 2005 total dividend. Some of the major developments in the Company during the year include thefollowing: Pharma Wholesale United Drug Wholesale has further enhanced its position as the leadingwholesaler supporting independent retail pharmacy in the growing Irishpharmaceutical market. The business performed strongly during the year withincreased turnover and profits recorded. Discussions between the Irish Health Service Executive (HSE) and the IrishPharmaceutical Healthcare Association (IPHA) governing the pricing and supply ofmedicines were concluded during the year. A new agreement, with a four yearterm, came into effect in September this year. This agreement will reduce theprice of off-patent drugs and medicines while providing certainty on pricingover the four year term. It is estimated that the new agreement will providesavings to the Government in the order of A300 million over the period to 2010. In Northern Ireland, Sangers has also improved its market position in a marketthat has returned to more normal growth levels following the price reductionintroduced in the UK in January 2005 through the Pharmaceutical Price RegulationScheme (PPRS). Supply Chain Services Given the recent development of this part of the business and the broadening ofour service offering, this division, previously known as the ContractDistribution Outsourcing division, has been renamed the "Supply Chain Services"division to better reflect the totality of the business. In 2006, TD Packaging,acquired in 2005, successfully completed its first year within the United DrugGroup and fully achieved its first earn-out target. Another importantdevelopment occurred in the second half of the year with the acquisition of theUK based MASTA business. This acquisition has given us a leading position in thesale and distribution of vaccines in the UK market. The Supply Chain Services businesses in Ireland are now fully installed in andoperating efficiently from the new Magna Park II facility that provides themwith significant capacity for future development. UDG, our UK distribution joint venture, had a very positive year and its profitsgrew strongly. Medical & Scientific Another good year in the Medical & Scientific division has been added to withthe acquisition of Endoscopy UK giving us a further high quality productportfolio in a new therapeutic area. The year also saw our Presearch business,acquired in 2005, fully achieve its earn-out target and add to our growing UKoperation based in Basingstoke. Contract Sales Outsourcing Both Ashfield and In2Focus have performed very well in the UK contract salesmarket and the combined businesses now allow us to offer a wider range ofsolutions to pharmaceutical manufacturers as they try to maximise returns ontheir sales effort. In2Focus has fully achieved its first year earn-out targetand the year has also seen a very strong performance in our Irish contract salesbusiness. The business in detail: PHARMA WHOLESALE United Drug continues to provide a top-quality, customer focused service to ourindependent pharmacy customers that gives them access to a full range of supportservices enabling them compete effectively in the market place. In the Republic of Ireland, United Drug Wholesale has again substantiallyincreased turnover and profitability during the year. United Drug, through ourCatalyst support package continues to assist ambitious, entrepreneurialpharmacists to acquire their own pharmacies and to grow their business inaddition to providing a cost effective, top quality and customer focusedwholesale service. In the retail pharmacy market, United Drug's dynamic owner managed independentcustomers continue to outperform the corporate owned pharmacies of our wholesalecompetitors. As a result, we have again been able to further increase our marketshare in a market that continues to grow strongly. The Irish economy continues to expand and develop. This economic growth,combined with our ageing and rapidly expanding population, is underpinning thegrowth in the Irish pharmaceutical market. This underlying growth in marketvolume will be reduced somewhat by the impact of the HSE/IPHA agreement on drugprices, which is due to take effect from March 2007, however, this agreementdoes provide certainty on drug pricing in the Irish market for the next fouryears. United Drug Wholesale has further reduced its key expenses-to-sales ratio bygetting better utilisation of our facilities in Ballina, Dublin and Limerick.Our policy of continually investing in our infrastructure and sharing bestpractice amongst our facilities throughout the island of Ireland has enabled usto deliver a better service at lower cost to our customers. In addition, ourongoing programme of leveraging the combined purchasing power of all Groupoperations to achieve better value from service providers has consolidated ourposition as the most efficient operator in our market. In Northern Ireland, Sangers has also increased its sales, profits and marketshare during the year. The Northern Ireland pharmaceutical market has returnedto normal growth levels after the once-off impact in January 2005 of the 7%reduction in the price of ethical pharmaceuticals under the UK PharmaceuticalPrice Regulation Scheme (PPRS). As the most efficient and most customer focusedwholesaler in the market, Sangers are best placed to react to the ever evolvingrequirements of our pharmacy customers in Northern Ireland and is wellpositioned to continue to grow its business. Overall, the Pharma Wholesale division has had another very successful yearwhere sales, profits and market share have all increased. As the market leaderand most efficient operator in both markets, United Drug is well positioned tocontinue to develop its business within these growing markets. SUPPLY CHAIN SERVICES The Supply Chain Services (SCS) division incorporates a number of business unitsinvolved in providing outsourced contract logistics, administration, packagingand speciality sales and logistics related services primarily to pharmaceutical,biotech and veterinary manufacturers. This past year has been particularlysignificant for three reasons: Firstly, the transfer of businesses in 2005 to the new Magna Park facility wassuccessfully bedded-in during the year. Our investment in warehouse capacity andtechnology contributed to the efficiency of operations, enabling higherproductivity and giving us an ability to cope with significant increases involume throughput. Secondly, our decision in 2005 to acquire TD Packaging in the UK, providingcontract packaging solutions to pharmaceutical manufacturers, was affirmed, andthe Company enjoyed an excellent first year as part of theUnited Drug Group. Thirdly, further expansion in the UK was achieved through the acquisition ofMASTA in July. MASTA is a leading service provider in the travel health field,specialising in the sale and distribution of vaccines, medical information andclinical services. MASTA sells direct to the medical profession, occupationalhealth departments of large organisations, and through MASTA branded travelclinics throughout the UK. This is a very specialist service and presentsexciting growth opportunities in both the UK and Ireland. United Drug Distributors (UDD), the largest business unit within SCS, offersstorage and logistics services to pharmaceutical manufacturers in the Republicof Ireland and continues to be the leading player in its sector. Partnering withthe manufacturer, this model allows the manufacturer to concentrate onmarketing, sales and business/brand development activities whilst allowing UDDto focus on distribution and management of the full order-to-cash cycle.Manufacturers demand increasingly stringent standards. We continue to respond tothese challenges with intense focus on our quality and operating activitieswithin the new Magna Park facility, ensuring achievement of benefits theinvestment was designed to deliver. This investment has provided a platform forfurther significant business developments and, as a result, we have added newdistribution contracts to our portfolio including the national vaccinesdistribution contract. This milestone contract was awarded by the HSE in August2006 and will commence operations in January 2007. We are currently investing ina new dedicated fleet of refrigerated vehicles and customer care team. This is asignificant step in our strategic plan towards speciality pharmacy/distributionin Ireland. A key element of the partnership model is the delivery onwards to hospitals forthe manufacturers with whom we contract. Operating on very tight margins, theability to be efficient is fundamental. Again, infrastructure and technologyinvestment have been key to delivering this goal over the past number of years. The strategic aim to become a significant player in the provision of outsourcedcontract packaging services became a reality through the bedding-in of theacquisition of TD Packaging during 2006. TD Packaging provides a full range ofpackaging options for tablets requiring blister packing and bottling, forpowders requiring sachet filing and for bottling of liquids. Again, newfacilities and technology implemented during 2005 paid dividends during 2006,enabling higher throughput and a streamlining of activities. TD Packaging'scustomer base is primarily nutraceutical and pharmaceutical manufacturers.Business expanded in the year both organically, from repeat business withcompanies such as Gerard Laboratories, and by adding new clients. UniDrug Distribution Group (UDG) provides full logistics services topharmaceutical manufacturers in the UK. UDG had a very successful year, havingcompleted the first full year of managing the pre-wholesale logistics for thefull Pfizer range of products and after adding new contracts to its portfolio.UDG rolled out new technology in its despatch and transport activities duringthe year and these investments are already paying dividends. UDG is now verywell placed to handle contracts of any scale requiring any combination ofstorage, transport or full order-to-cash services. MEDICAL AND SCIENTIFIC The Medical & Scientific (M&S) division of United Drug has enjoyed another yearof growth and development. In Ireland, the consolidated business of Unitech, IntraVeno and Intrapharma, nowhoused in the enlarged Magna Park facility have benefited significantly from theconcentration on its core competencies of sales and marketing, and back-officesupport in a single location. Synergies in terms of shared services and theability to bring a unified medical and diagnostics approach to the market havehelped these businesses deliver further sales and profit growth. Specifichighlights include Intrapharma's successful launch of Biotest's new Intratectimmunoglobulin, which has enjoyed significant uptake in the market, andIntraveno's launch of the Xograph digital-imaging portfolio from Canon, Ziehmand other leading manufacturers. These developments build on our strong trackrecord in supplying and supporting high-tech diagnostic and therapeuticequipment to the hospital sector. In Northern Ireland, the M&S businesses of Vector Scientific, UlsterAnaesthetics and Primacare also delivered strong sales and profit growth withparticular successes including a tele-medicine system installation in the AntrimArea Hospital Trust and the continued growth of the Sysmex coagulationinstrument base. In the UK, Presearch, the analytical chemistry business acquired during 2005,met all its objectives including developing a presence in Ireland and achievedits full earn-out target during the year. During the year, M&S continued its bolt-on acquisition policy with theacquisition of Endoscopy UK in May. Endoscopy is a specialist distributor ofendoscopy systems, operating in the UK hospital sector. M&S in the UK nowrepresents a balanced medical portfolio across the orthopaedic, vascular, MISand endoscopy sectors, and a growing Analytical Chemistry and Scientificbusiness under the Presearch banner. The combined UK businesses have performedwell in the year against a backdrop of a reduction in spending by the NHS formajor projects. The M&S division's ability to deliver specialist services through dedicatedfront-end companies, supported by abest-in-class operational and administrative backroom hub allows us respondpositively to the growing demand for a broad-based, preferred-supplier partner,without impacting our core values of delivering a specialised and focusedclinical end-user service. During the year, we added new clinical training resources to increase ourability to train and support new surgical teams in da Vinci robotic surgicaltechniques. The da Vinci robot, from Intuitive Surgical Inc., contributessignificantly to improved patient outcomes in a number of operating procedures.International experience has demonstrated that increased public awareness of thesignificant benefits accruing to patient outcomes will continue to drive primarydemand. Following this year of growth, the M&S division is well-positioned to deliverfurther sales and profit growth for theyear ahead. CONTRACT SALES OUTSOURCING The 2006 financial year has been an important and very successful year for ourContract Sales Outsourcing (CSO) division. The In2Focus acquisition is now wellestablished and maintains a successful dual brand strategy for United Drug, andalongside Ashfield, maintains a clear market leadership position within the UKmarket place. Our combined businesses are now well placed to further roll-outour 'Sales Force Effectiveness' consultancy tool and other services that seek toallow our manufacturer clients achieve the highest return on investment fromtheir sales and marketing activities. Ashfield UK continues to strengthen its reputation as a leading player in theprovision of contract sales representatives and nurse advisors within the UKpharmaceutical market place. It continues to nurture relationships with bothexisiting and new clients alike and has cultivated new client business withTrinity Chiesi, Leo Laboratories, Napp Pharmaceuticals, Coloplast, AstraZenecaand Janssen Cilag, whilst broadening the depth of some of its existing clientrelationships. The Irish market place continues to remain buoyant. This combined with a wellmanaged business has ensured Ashfield Ireland once again achieved its best everyear. Both nursing and syndicated sales offerings have shown exceptional growthin 2006, as has the overall client base with notable new business wins withJanssen Cilag, Novartis, Sanofi Aventis, Altana, Amgen and Healthcare 21. Our fledgling US business is now positioned to deliver growth in what is a largeand somewhat under-developed contract sales market place. This year, it has wona new contract sales team with Pam Labs, however, more encouraging is it'soffering of two new services to the US market. The new Sales Force Effectiveness(SFE) programme has been well received by the US pharmaceutical and devicecompanies and this year we have run ten different SFE events within sixdifferent pharmaceutical companies. Additionally they have started a new nurseadvisor service and have secured two new contracts with Novartis. In2Focus is very highly regarded in the UK market for the provision of valueadded contract sales services. This business has performed particularly well inits first year within the United Drug Group and has won a number of new teamswith clients such as AstraZeneca, Grunenthal, IVAX, Roche, Schering Healthcare,Schering Plough and Solvay. These new contracts added to the existing clientbase that includes Boehringer Ingelheim, GSK Consumer, Janssen Cilag, Johnson &Johnson, Lilly and Pfizer. Sales Force Effectiveness within the UK business continues to go from strengthto strength and the global business has seen significant growth resulting inprogrammes with the In Call Quality (ICQ) service now being run in 21 countriesin 13 languages. One notable example being an event run earlier in the year inBerlin with representatives attending from 29 countries which was run in severaldifferent languages. The biggest ever ICQ event is scheduled to take place laterin the year in Japan for 1,400 representatives in 19 different cities over aseven week period. Key clients this year have been AstraZeneca, Bristol MyersSquibb, GlaxoSmithKline Pharma, Novartis, Procter & Gamble, Roche, Sankyo,Sanofi Aventis, Schering Healthcare, Schering Plough, Servier and Wyeth. The Business Research and Consulting arm has started to work more strategicallywith a number of clients over the last year and have been involved in definingand developing their campaigns for 2007. Client feedback has been very positiveand key points highlighted are the very thorough approach, critical insights andhighly actionable recommendations. Key clients in this area this year have beenAbbott, AstraZeneca, Boehringer Ingelheim, Johnson & Johnson, Roche, Sankyo,Sanofi Aventis and Schering Plough. Dividends The Directors are proposing a final dividend of 4.64 cent per share, a 16%increase on the 2005 final dividend. In addition to the interim dividend, thisgives a total dividend for the year of 6.35 cent per share. This is a 15%increase on the 2005 dividend and maintains our progressive dividend policy. TheDirectors are pleased to advise that all shareholders will be given theopportunity of receiving all or part of their 2006 final dividend as a scripdividend in the form of new ordinary shares. The share alternative election/mandate forms, setting out the details of the share alternative offer and theprocedures to be followed, will be posted to shareholders in January 2007.Cheques in respect of the final dividend or, alternatively, share certificateswill be posted on 27 February 2007 to holders of ordinary shares whose namesappear on the Company's register at the close of business on 1 December 2006. 2006 Annual Report and Annual General Meeting The 2006 Annual Report will be published in January 2007 and the Annual GeneralMeeting of the Company will be held on 27 February 2007. Group Development and Outlook Over the last 12 months, the Company has considerably increased the breadth ofits offering to healthcare manufacturer and retail pharmacy clients assisting toimprove the efficiency of their business operations. Part of this increasedoffering has come from the acquisition of additional high quality healthcareservice companies. I am delighted to welcome the people from Endoscopy UK andMASTA to the United Drug Group and believe that all will make a significantcontribution to our future development. I want to take this opportunity to acknowledge the contribution of all mycolleagues to achieving this years successful outcome and to thank them fortheir support. The Company now has in place the physical infrastructure, the managementresources and the availability of capital to allow us to continue to growstrongly. Growth will be driven by leveraging those assets and seeking toprovide an even broader range of value added, higher margin, services toexisting and potential new clients in all parts of the business. Liam FitzGerald Chief Executive 22 November 2006 This announcement and further information is available on our web-site:www.united-drug.ie Group Income Statement for the year ended 30 September 2006 2006 2005 Notes •'000 •'000 Group revenue 1,459,016 1,325,915 Cost of sales (1,266,916) (1,149,660) Gross profit 192,100 176,255 Other operating income 7,963 6,685 Distribution expenses (141,797) (130,692) Administration expenses (3,704) (3,743) Other operating expenses (2,410) (432) Operating profit before property profit 52,152 48,073 Property profit 2 - 8,897 Operating profit 52,152 56,970 Share of joint ventures profit after tax 2,365 1,740 Financing costs (3,916) (3,708) Financing income 1,175 1,084 Profit before tax 51,776 56,086 Income tax expense (8,880) (10,455) Profit for the financial year attributable to equity holders of the Company 42,896 45,631 Earnings per share Basic 3 19.31c 20.89c Diluted 3 19.14c 20.71c Group Statement of Recognised Income and Expense for the year ended 30 September 2006 2006 2005 •'000 •'000 Items of income/(expense) recognised directly within equity: Currency translation effects 1,692 (171) Group cash flow hedges: - Effective portion of cash flow hedges (1,429) - - Deferred tax asset on cash flow hedges 178 - Group defined benefit pension schemes: - Actuarial loss (666) (2,582) - Movement in deferred tax asset 26 204 Net expense recognised directly within equity (199) (2,549) Profit for the financial year 42,896 45,631 Total recognised income and expense for the year attributable to equity holders of the Company 42,697 43,082 The statement below has been included as a memorandum to the primary financial statements. Group Statement of Changes in Equity for the year ended 30 September 2006 2006 2005 •'000 •'000 Total equity at the beginning of year 240,577 195,886 Total recognised income and expense for the year 42,697 43,082 Impact of adopting IAS 32/IAS 39 on 1 October 2005 132 - Equity shares issued 7,014 7,402 Scrip issue 4,481 4,685 Dividends (12,602) (10,815) Expenses in respect of share options 920 629 Transfer to share entitlement scheme 18 74 Restriction arising from treasury shares - (366) Total equity at end of year 283,237 240,577 Group Balance Sheet as at 30 September 2006 2006 2005 Notes •'000 •'000 ASSETS Non-current assets Property, plant and equipment 56,658 58,801 Goodwill 123,018 91,700 Intangible assets 15,661 10,391 Investment in joint ventures 18,955 8,904 Deferred tax assets 722 2,282 Total non-current assets 215,014 172,078 Current assets Inventories 154,668 135,852 Trade and other receivables 262,785 264,104 Cash and cash equivalents 4 45,912 39,804 Total current assets 463,365 439,760 Total assets 678,379 611,838 EQUITY Issued share capital 11,563 11,382 Share premium 94,439 87,606 Other reserves 2,263 769 Retained earnings 174,972 140,820 Total equity attributable to equity holders of the Company 283,237 240,577 LIABILITIES Non-current liabilities Interest-bearing loans and borrowings 4 81,683 89,993 Derivative financial instruments 4 3,684 - Deferred tax liabilities 3,479 4,447 Trade and other payables 5,535 8,271 Employee benefits 12,930 12,708 Provisions 1,453 2,443 Total non-current liabilities 108,764 117,862 Current liabilities Bank overdraft 4 2,764 1,772 Interest-bearing loans and borrowings 4 1,056 1,055 Derivative financial instruments 4 4,463 - Trade and other payables 272,924 242,202 Income tax liabilities 4,811 8,370 Provisions 360 - Total current liabilities 286,378 253,399 Total liabilities 395,142 371,261 Total equity and liabilities 678,379 611,838 Group Cash Flow Statement for the year ended 30 September 2006 2006 2005 •'000 •'000 Cash flows from operating activities Profit before tax 51,776 56,086 Share of joint ventures profit after tax (2,365) (1,740) Financing income (1,175) (1,084) Financing costs 3,916 3,708 Group operating profit 52,152 56,970 Property profit - (8,897) Depreciation charge 7,305 6,672 Loss/(profit) on disposal of tangible assets 134 (25) Amortisation of intangible assets 2,410 432 Charge in respect of share entitlement scheme 18 74 Share-based payments expense 920 629 Contributions to pension schemes in excess of IAS charge - 224 Increase in inventories (14,434) (10,044) Increase in debtors (15,073) (27,871) Increase in creditors 11,998 8,651 Proceeds from sale of contract work-in-progress - 30,289 Interest paid (3,878) (4,573) Income taxes paid (13,449) (7,363) Net cash inflow from operating activities 28,103 45,168 Cash flows from investing activities Proceeds from disposal of fixed assets 19,905 3,143 Interest received 1,175 1,084 Purchase of property, plant and equipment (5,215) (15,157) Acquisition of subsidiaries (33,193) (25,312) Investment in joint ventures (7,429) - Net cash outflow from investing activities (24,757) (36,242) Cash flows from financing activities Proceeds from issue of shares (including share premium thereon, net of scrip dividend) 7,014 7,402 Receipt/(repayment) of interest-bearing loans and borrowings 2,565 (20,445) Repayment of finance lease liabilities (63) (134) Acquisition of treasury shares - (366) Dividends paid to equity holders of the Company (8,121) (6,105) Net cash inflow/(outflow) from financing activities 1,395 (19,648) Net increase/(decrease) in cash and cash equivalents, including bank overdrafts 4,741 (10,722) Cash and cash equivalents, including bank overdrafts at 1 October 38,032 48,671 Translation adjustment 375 83 Cash and cash equivalents, including bank overdrafts at 30 September 43,148 38,032 Notes to the preliminary announcement for the year ended 30 September 2006 1 Basis of preparation The financial information presented in this report has been prepared in accordance with the Group's accounting policies under International Financial Reporting Standards (IFRS). The transition date for implementation of IFRS by the Group was 1 October 2004. The financial statements for the year ended 30 September 2005, which were prepared in accordance with Irish Generally Accepted Accounting Principles (Irish GAAP), have been restated under IFRS with effect from the transition date. Full details of the accounting policies adopted by the Group on implementation of IFRS, and of the impact on the reported results and balance sheet of the Group of the transition to IFRS, were published on 16 March 2006 and are available on the Group's website www.united-drug.ie. 2 Property profit 2006 2005 •'000 •'000 Disposal of fixed assets - 8,897 The prior year property profit related to the net gain which was recognised following the rationalisation of the Group's property portfolio as a result of the move by the Republic of Ireland based operating entities to Magna Business Park. This includes a profit on disposal of fixed assets of A11,397,000 and the associated costs of the property rationalisation programme of A2,500,000. The net tax charge in respect of the above was A1,995,000. 3 Earnings per ordinary share 2006 2005 •'000 •'000 Profit for the financial year 42,896 45,631 Adjustment for intangible amortisation 2,410 432 Adjustment for property profit (net of tax) - (6,902) Earnings adjusted for intangible amortisation and property profit 45,306 39,161 Number of shares Number of shares Weighted average number of shares 222,155,656 218,449,852 Number of dilutive shares under option 1,957,140 1,906,384 Weighted average number of shares, including share options 224,112,796 220,356,236 Basic earnings per share - cent 19.31 20.89 Diluted earnings per share - cent 19.14 20.71 Adjusted basic earnings per share - cent* 20.39 17.93 Adjusted diluted earnings per share - cent* 20.22 17.77 * excluding intangible amortisation and property profit in 2005 The 7,623,066 (2005: 7,623,066) treasury shares held by the Group do not rank for dividend and have therefore been excluded from the weighted average number of shares in issue used in the calculation of earnings per share. Notes to the preliminary announcement continued for the year ended 30 September 2006 4 Net debt 2006 2005 •'000 •'000 Current Assets Cash and cash equivalents 45,912 39,804 Current liabilities Overdrafts (2,764) (1,772) Loan notes (3,960) - Bank borrowings (1,014) (949) Finance lease liabilities (42) (106) Derivative financial instruments (4,463) - Non-current liabilities Interest bearing loans and borrowings (81,683) (89,548) Finance lease liabilities - (445) Derrivative financial instruments (3,684) - Net debt (51,698) (53,016) 5 Dividends 2006 2005 •'000 •'000 Dividends paid Final dividend for 2005 of 4.00 cent (2004: 3.48 cent) 8,804 7,532 Interim dividend for 2006 of 1.71 cent (2005: 1.50 cent) 3,798 3,283 Total dividends 12,602 10,815 The Directors have proposed a final dividend for 2006, subject to shareholder approval at the Annual General Meeting, of 4.64 cent per share (2005: 4.00 cent) thereby giving a total dividend for the year of 6.35 cent per share (2005: 5.50 cent). The final dividend for 2006 has not been provided for in the balance sheet at 30 September 2006, in accordance with IFRS. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
UDG.L