8th Jun 2007 07:01
Fuller,Smith&Turner PLC08 June 2007 STRICTLY EMBARGOEDUNTIL 7AM FRIDAY 8 JUNE 2007 FULLER, SMITH & TURNER P.L.C. Financial results for the 52 weeks ended 31 March 2007 Reported under International Financial Reporting Standards (IFRS) Financial Highlights • Revenue up 23% to £178.2 million (2006: £145.1 million) • Operating profits up 31% to £29.4m (2006: £22.4m) • Adjusted profits(1) up 23% to £22.1 million (2006: £17.9 million) • Exceptional profits of £20.1 million (2006: loss of £2.6 million) • Profits before tax up 176% to £42.3 million (2006: £15.3 million) • EBITDA(2) up 27% to £40.7 million (2006: £32.1 million) • Adjusted earnings per share(3) up 26% to 68.94p (2006: 54.67p) • Basic earnings per share(4) up 181% to 130.34p (2006: 46.40p) • Proposed final dividend per share(4) increased 15% to 16.25p (2006: 14.12p) • Proposed five for two share split to rebase share price and enhance liquidity Corporate Progress • All areas of the business have performed well • Managed Pubs profits up 41%; uninvested like for like sales up 6.7% • Tenanted Inns profits up 40% • Beer Company profits up 12% • Interest costs up £3.2 million • Two hotels sold for £35.6 million • Eight new pubs acquired during the year (1) Adjusted profit is the profit before tax excluding exceptional items.(2) Pre-exceptional earnings before interest, tax, depreciation and amortisation.(3) Calculated using adjusted profits after tax and the same weighted average number of shares as for the basic earnings per share and using a £1 ordinary share.(4) Calculated on a £1 ordinary share. Commenting on the results, Anthony Fuller, Chairman of Fuller's, said: "It has been an exceptional year, boosted by the addition of a full year'scontribution from the Gales business, the profits generated from the sale of twohotels, and strong underlying growth. This year also saw Fuller's becomeLondon's last remaining traditional brewer." "The current financial year has started well and is in line with expectations.With new acquisitions, continuing investment in our estate, and the quality ofour award-winning premium brands, the Board is confident of the prospects forthe continued success of the group." - Ends - For further information, please contact: Fuller Smith & Turner P.L.C.Press Office 020 8996 2175/2198/2048 Mobile 07831 299801/ 07748 657854 E-mail: [email protected] Turner, Chief Executive: Press 020 8996 2048Paul Clarke, Finance Director: Analysts 020 8996 2048Merlin 020 7653 6620Paul Downes 07900 244 888 (mobile)Vanessa Maydon 07802 961 902 (mobile)Anja Kharlamova 07887 884 788 (mobile) Notes to Editors For an official photo please e-mail [email protected] and one will automatically be sent by return on receipt of your e-mail. Copies of this statement, the Preliminary Statement and results presentationwill be available on the Company's website, www.fullers.co.uk. Attached: Chairman's Statement Financial Highlights Unaudited Group Income Statement Unaudited Group Balance Sheet Unaudited Group Cash Flow Statement Other Unaudited Group Primary Statements Notes to the Accounts FULLER, SMITH & TURNER P.L.C. PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 31 MARCH 2007 CHAIRMAN'S STATEMENT Whatever You Do, Take Pride In my last year as Chairman, I am delighted to report that it has been anoutstanding year for the Group with profit growth in all areas of the business.In addition we have successfully integrated the George Gale & Co. Ltd (Gales)business acquired in December 2005 and have achieved our predicted synergies.Operating profits have grown by 31% to £29.4m (2006: £22.4m). Our adjusted(pre-exceptional) profits have increased by 23% to £22.1 million (2006: £17.9million) on revenue up 23% to £178.2 million (2006: £145.1 million). Tax hasbeen provided for at an effective rate of 30.4% (2006: 31.9%) on adjustedprofits. Pre-exceptional earnings before interest, tax, depreciation andamortisation (EBITDA) rose 27% to £40.7 million (2006: £32.1 million). While our recent growth is due, in part, to the additional business from theacquisition of Gales in December 2005, I am delighted to report a strongunderlying performance from the original Fuller's estate with uninvested likefor like sales growing by 6.7% in our Managed Pubs . We sold two hotels duringthe year for a total consideration of £35.6m which, with other property sales,gave exceptional profits of £20.1 million. Profits before tax rose 176% to £42.3million (2006: £15.3 million). Fuller's Inns has had a strong year with pre-exceptional profits rising by 38%to £24.0 million (2006: £17.4 million). During the year, we have carried out 21major refurbishments (2006: 17) at a cost of £2.8 million, and the Company iswell-advanced with plans to maximise the opportunities presented by theforthcoming smoking ban. The Fuller's Beer Company saw profits rise by 12% to £7.9 million (2006: £7.0million). London Pride grew its volumes and has consolidated its position as theUK's leading premium ale, having increased its market share right across thecask, bottled and canned sectors of the market. The Group's net debt has reduced to £96.5 million (2006: £130.0 million), hencelowering our gearing to 52.8% (2006: 83.5%). During the year we injected £2.0million into the Group's pension fund and have subsequently added another £8.0million post year-end, helping to substantially reduce the current pension funddeficit from £21.6 million to £8.0 million. During the year, the Company bought back and cancelled 1,848,000 10p 'B'ordinary shares at a cost of £2.1 million. The Company also purchased 35,000 £1'A' ordinary shares for £614,000. These shares have been retained as treasuryshares. At 31 March 2007 there were 342,784 treasury shares remaining. Our share price has seen strong growth in recent years and we feel it would nowbe prudent to consider a share split. The Board will, therefore, be proposing afive for two split to shareholders at our AGM on Tuesday 24 July 2007. This willconvert every two £1 'A' and 'C' ordinary shares to five new 40p shares andevery two 10p 'B' shares will become five new 4p shares. Our adjusted earnings per share have risen by 26% to 68.94p (2006: 54.67p), aswe continue to deliver excellent returns for our shareholders, and our basicearnings per share this year have risen 181% to 130.34p (2006: 46.40p). TheBoard is recommending a final dividend increase of 15% to 16.25p per £1 'A' and'C' ordinary share, and 1.625p per 10p 'B' ordinary share. This will be paid onFriday 27 July 2007 to shareholders on the share register as at Friday 29 June2007. We were delighted this year to win the Regional Brewer of the Year title at ThePublican Newspaper awards 2007 for an unprecedented second year running. Theaward highlights the regional brewer that has stood out from its peers with itsperformance in both brewing and retailing over the preceding 12 months. Thejudges said: "Fuller's has maintained its high standards in its own estate whiletransferring its culture and systems across into a new acquisition. It not onlysays it will deliver results, it does deliver." FULLER'S INNS It has been a successful and rewarding year for Fuller's Inns with strongperformances across all areas of the operation. Revenue for Fuller's Inns grew26% to £140.9 million (2006: £111.9 million) and profits rose 38% to £24.0million (2006: £17.4 million). EBITDA increased 32% to £32.4 million (2006:£24.6 million). This growth has resulted from a combination of the Gales acquisition, improvedbuying terms, a well-trained and highly motivated team, and a strong underlyingperformance from the original Fuller's estate. We have continued to acquire newsites with the addition of eight pubs during the year and our estate consistedof 201 tenancies, 156 managed pubs and six hotels at the year end. Fuller's Inns has planned well ahead to comprehensively address the forthcomingsmoking ban. We have been and will continue to upgrade our outside areas andprovide areas to accommodate our smoking customers at a total investment cost of£4 million. Managed Pubs Our Managed Pubs have had a great year with revenue increasing by 28% andprofits rising by 41%. The Gales acquisition has had the effect of providing asummer balance to our estate, and has performed well. We have seen strongresults in the original Fuller's estate with uninvested like for like salesgrowing by 6.7%. The corresponding invested like for like sales figure is up8.2%. We have continued to maintain our long-term strategy and focus on providing ourcustomers with outstanding cask conditioned ales, delicious food, great winesand exemplary service and the result has been growth in all of these areas. Inparticular, we are pleased to have seen our food sales rise 51% in the year withfood now representing 27% of Managed Pubs' total revenue (2006: 21%). Investment in our estate continues apace and this year we have carried out 21major projects during the year (2006: 17). Where these projects have beencarried out in the former Gales estate, they have included rebranding the siteswith Fuller's signage. Prior to any refurbishment, we carry out extensiveresearch among pub customers, the results of which have been very effective intailoring our investment to match customers' expectations. The larger estate has allowed us to maximise operational efficiencies in ourManaged Pubs and, as a result, eight sites have transferred to tenancy. Inaddition, we have added six new pubs which all offer exceptional food in astylish environment. Tenanted Inns Our Tenanted Inns have had a strong year with revenue rising 39% and profits up40%. The division has benefited from the addition of 69 Gales pubs as well aseight houses transferred from Managed. Our tenanted pubs have seen significant investment with repairs up by 48%. Inaddition, we are helping to ensure our tenants are well-equipped to deal withthe smoking ban. We were also delighted this year to be among the first four pub companies tohave their leases recognised under the BII's (the British Institute ofInnkeeping) new accreditation scheme. We have always shown integrity in ourbusiness dealings and we are pleased that this has been acknowledged by theindustry. We will continue to offer our 10-year lease, where applicable, andexpect to see a number of former Gales tenants take the opportunity to transferto a lease. Fuller's Hotels It has been a year of change for Fuller's Hotels with the sale of the Brigstowin Bristol and the Master Brewer in Hillingdon for a total consideration of£35.6 million. Despite the sale of the two hotels, profits for the divisionincreased by 9%, with like for like profits increasing by 22%. The sale of these two hotels allows us to simplify our business model andconcentrate on the more traditional pubs and hotels market. This focus isalready generating positive results with like for like occupancy and like forlike RevPar both increasing by 9%. In addition, we will continue to use ourexpertise in the hotel market to optimise the opportunity from the 196 lettingbedrooms within our managed estate. THE FULLER'S BEER COMPANY It has been a good year for the Beer Company. Revenue rose by 14% to £58.4million (2006: £51.3 million) and profits increased 12% to £7.9 million (2006:£7.0 million). EBITDA grew by 13% to £9.9 million (2006: £8.8 million). Totalbeer volumes have risen by 14% to 323,000 barrels (2006: 285,000 barrels), withgains across all parts of the business. London Pride continues to lead the premium ale market with an increased shareright across the cask, bottled and canned ale markets. We will continue tosupport the brand with new television advertising focusing on the quality andpride that goes into brewing the beer and through high profile sponsorships. Ourposition as the official beer of the English Golf Union has given us improvedaccess to 1,900 golf clubs in England and Wales and our support for the LondonMarathon provided a unique opportunity to cement Pride's position as an iconicLondon brand by aligning it with a similarly iconic London event. We have seen good growth from many of our other brands and another outstandingperformance from the wine division with profits up by 25%. We have also recentlyextended the brewery site into the former petrol station on the Hogarthroundabout, adding new storage and warehousing space. PROSPECTS It has been an exceptional year, boosted by the addition of a full year'scontribution from the Gales business, the profits generated from the sale of twohotels, and strong underlying growth. This year also saw Fuller's becomeLondon's last remaining traditional brewer. We will continue to grow our business organically. Our Hotels business has amore concentrated focus and we will benefit from leveraging the expertise inthis division to build accommodation sales in the managed estate. In addition,we have the opportunity of offering 10-year leases to a number of former Galestenants to build on the business model we developed in the original Fuller'sestate. We will continue to support London Pride as the UK's leading premium ale, usingadvertising and targeted sponsorship to attract new routes to market and newdrinkers to the brand. We will also continue to build our ale business throughour other brands such as Discovery, ESB, Gales HSB and Organic Honey Dew, theUK's leading organic beer. Our continuing focus on outstanding cask conditioned ales, delicious food, greatwines and exemplary service will benefit all areas of the Fuller's business.Allied to a focused refurbishment programme, these factors combine to put us ina strong position to capitalise on the opportunities presented by theforthcoming smoking ban. The current financial year has started well and is in line with expectations.With new acquisitions, continuing investment in our estate, and the quality ofour award-winning premium brands, the Board is confident of the prospects forthe continued success of the group. A.G.F. Fuller CBEChairman8 June 2007 FULLER SMITH & TURNER P.L.C.FINANCIAL HIGHLIGHTSFOR THE 52 WEEKS ENDED 31 MARCH 2007 52 weeks to 52 weeks to 31 March 1 April Change 2007 2006 2007/2006 £000 £000____________________________________________ ____________ ____________ ____________ Revenue 178,165 145,148 22.7%Profit before tax 42,256 15,310 176.0%Operating profit 29,401 22,425 31.1%Adjusted profit(1) 22,109 17,952 23.2%Pre-exceptional EBITDA(2) 40,742 32,149 26.7%Basic earnings per share(3) 130.34p 46.40p 180.9%Adjusted earnings per share(4) 68.94p 54.67p 26.1%Dividend per share5 22.72p 19.75p 15.0%Gearing ratio 52.8% 83.5% N/A____________________________________________ ____________ ____________ ____________ (1) Adjusted profit is the profit before tax excluding exceptional items. (2) Pre-exceptional earnings before interest, tax, depreciation and amortisation. (3) Calculated on a £1 ordinary share. (4) Calculated using adjusted profits after tax and the same weighted average number of shares as for the basic earnings per share. (5) Calculated on a £1 ordinary share for the interim dividend paid and the proposed final dividend. FULLER SMITH & TURNER P.L.C.UNAUDITED GROUP INCOME STATEMENTFOR THE 52 WEEKS ENDED 31 MARCH 2007 52 weeks to 31 March 2007 Before exceptional Exceptional Items items Total Note £000 £000 £000 Revenue 178,165 - 178,165 Operating costs 3 (148,376) (388) (148,764) ------------------ -------------------- --------------------Operating profit 29,789 (388) 29,401 Profit on disposal of properties 3 - 20,535 20,535Reorganisation costs 3 - - - Finance revenue 408 - 408Finance costs (8,088) - (8,088) ------------------ -------------------- --------------------Profit before tax 22,109 20,147 42,256Taxation 4 (6,711) (6,434) (13,145) ------------------ -------------------- --------------------Profit for the year attributable to equity 15,398 13,713 29,111shareholders of the parent company =========== =========== =========== 52 weeks to 1 April 2006 Before exceptional Exceptional Items items Total £000 £000 £000 Revenue 145,148 - 145,148 Operating costs 3 (122,723) - (122,723) ------------------- -------------------- --------------------Operating profit 22,425 - 22,425 Profit on disposal of properties 3 - 265 265Reorganisation costs 3 - (2,907) (2,907) Finance revenue 104 - 104Finance costs (4,577) - (4,577) ------------------- -------------------- --------------------Profit before tax 17,952 (2,642) 15,310Taxation 4 (5,724) 792 (4,932) ------------------- -------------------- --------------------Profit for the year attributable to equity 12,228 (1,850) 10,378shareholders of the parent company =========== =========== =========== EARNINGS PER SHARE 2007 2006Per £1 'A' ordinary share or unquoted £1 'C'ordinary shareBasic 5 130.34p 46.40pDiluted 5 128.80p 45.89pAdjusted 5 68.94p 54.67pDiluted adjusted 5 68.13p 54.07p Per unquoted 10p 'B' ordinary shareBasic 5 13.03p 4.64pDiluted 5 12.88p 4.59pAdjusted 5 6.89p 5.47pDiluted adjusted 5 6.81p 5.41p The results and earnings per share measures above are all in respect of thecontinuing and total operations of the Group. FULLER SMITH & TURNER P.L.C.UNAUDITED GROUP BALANCE SHEET31 MARCH 2007 2007 2006 Note £000 £000Non-current assetsGoodwill 24,493 24,493Property, plant and equipment 307,085 315,985Investment properties 4,036 8,304Financial assets 1,153 -Other non-current assets 1,019 1,006Deferred tax assets 8,065 7,579 -------------------- --------------------Total non-current assets 345,851 357,367 -------------------- --------------------Current assetsInventories 5,373 5,484Trade and other receivables 14,975 14,647Cash and cash equivalents 8,927 1,370 -------------------- --------------------Total current assets 29,275 21,501 -------------------- --------------------Assets classified as held for sale 6,522 - -------------------- --------------------Current liabilitiesBank overdraft - 286Bank loans 5,000 2,500Loan notes 2,821 -Trade and other payables 33,859 34,763Current tax payable 2,664 1,391 -------------------- --------------------Total current liabilities 44,344 38,940 -------------------- --------------------Non-current liabilitiesBank loans 69,000 97,000Debenture stock 27,023 27,016Loan notes - 2,971Preference shares 1,600 1,600Retirement benefit obligations 16,009 21,646Deferred tax liabilities 40,996 34,036 -------------------- --------------------Total non-current liabilities 154,628 184,269 -------------------- --------------------Net assets 182,676 155,659 ============ ============ Capital and reservesShare capital 22,774 22,870Share premium account 4,654 4,289Capital redemption reserve 3,087 2,902Own shares (5,213) (4,662)Retained earnings 157,374 130,260 -------------------- --------------------Total shareholders' equity 7 182,676 155,659 ============ ============ FULLER SMITH & TURNER P.L.C.UNAUDITED GROUP CASH FLOW STATEMENTFOR THE 52 WEEKS ENDED 31 MARCH 2007 52 weeks to 52 weeks to 31 March 1 April 2007 2006 £000 £000 Group operating profit before exceptional items 29,789 22,425Depreciation 10,787 9,419Impairment of properties - 175Loss on disposal of property, plant and equipment 166 130Reorganisation costs - (2,907)Difference between pension charge and cash paid (3,059) (557)Share-based payment charges 1,358 990Change in trade and other receivables (352) (1,148)Change in inventories 111 77Change in trade and other payables (863) 1,790 -------------------- --------------------Cash generated from operations 37,937 30,394Tax paid (5,103) (4,814) -------------------- --------------------Cash generated from operating activities 32,834 25,580 -------------------- --------------------Cash flow from investing activitiesPurchase of property, plant and equipment (21,686) (21,561)Sale of property, plant and equipment 37,729 3,461Interest received 371 104Acquisition of subsidiaries - (89,645) -------------------- --------------------Net cash flow from investing activities 16,414 (107,641) -------------------- -------------------- Cash flow from financing activitiesProceeds from issue of share capital 454 178Purchase of own shares (3,628) (1,864)Sale of own shares to option schemes 271 256Interest paid (8,130) (3,316)Preference dividends paid (120) (120)Equity dividends paid (4,602) (4,183)Repayment of loan notes (150) -Repayment of bank loans (25,500) -Increase in bank loans - 87,584 -------------------- --------------------Net cash flow from financing activities (41,405) 78,535 -------------------- --------------------Net movement in cash and cash equivalents 7,843 (3,526)Cash and cash equivalents at the start of the year 1,084 4,610 -------------------- --------------------Cash and cash equivalents at the end of the year 8,927 1,084 ============ ============ There was one significant non-cash transaction in the 2006 year, which was theissuing of £2,971,000 of loan notes on the acquisition of George Gale & Co. Ltd. FULLER SMITH & TURNER P.L.C.UNAUDITED GROUP STATEMENT OF RECOGNISED INCOME AND EXPENSEFOR THE 52 WEEKS ENDED 31 MARCH 2007 52 weeks to 52 weeks to 31 March 1 April 2007 2006 £000 £000 Reduction in deferred tax liability due to indexation 433 212Net gains on valuation of financial assets 807 -Deferred tax on share-based payments 1,012 -Net actuarial gains and losses on pension schemes 1,805 (991) -------------------- --------------------Income and expense recognised directly in equity 4,057 (779)Profit for the year 29,111 10,378 -------------------- --------------------Total recognised income and expense for the year 33,168 9,599 ============ ============ FULLER SMITH & TURNER P.L.C.NOTES TO THE FINANCIAL STATEMENTSFOR THE 52 WEEKS ENDED 31 MARCH 2007 1. PRELIMINARY STATEMENT The financial information set out in this preliminary statement was approved bythe Board on 8 June 2007. This statement does not constitute full financial statements as defined bysection 240 of the Companies Act 1985. Full financial statements for the yearended 1 April 2006, including an unqualified auditors' report and which do notcontain a statement under section 237 (2) or (3) of the Companies Act 1995, havebeen delivered to the Registrar of Companies. The unaudited financialinformation in this statement has been prepared on the basis of the accountingpolicies set out in the Group's 2006 financial statements, and in accordancewith applicable accounting standards. The accounting policies used have beenapplied consistently and are described in full in the statutory financialstatements for the year ended 31 March 2007, which will be mailed toshareholders on or before Monday 25 June 2007 and delivered to the Registrar ofCompanies. The financial statements will also be available from the Company'sregistered office: Griffin Brewery, Chiswick, London W4 2QB, and on its website,from that date. Under IFRS, revenue includes only the gross inflows of economic benefitsreceived and receivable by the enterprise on its own account. Amounts collectedon behalf of third parties such as excise duty are not economic benefits whichflow to the enterprise and do not result in increases in equity. Therefore,they are excluded from revenue. This accounting adjustment does not apply toretailers who buy their goods duty paid and do not have to account to thegovernment for duty. Excise duty has therefore been removed from all revenueexcept for sales by the Inns division directly to its own retail customers. 2. SEGMENTAL ANALYSIS Fuller's Fuller's Beer52 weeks to 31 March 2007 Inns Company Unallocated* Total £000 £000 £000 £000RevenueSegment revenue 140,860 58,392 - 199,252Inter-segment sales - (21,087) - (21,087) ------------------ ------------------ ------------------ ------------------Revenue from third parties 140,860 37,305 - 178,165 ------------------ ------------------ ------------------ ------------------ Operating profit pre 23,963 7,886 (2,060) 29,789exceptionalsOperating exceptional items (388) - - (388) ------------------ ------------------ ------------------ ------------------Operating profit 23,575 7,886 (2,060) 29,401Profit on disposal of properties 20,535 - - 20,535Reorganisation costs - - - -Net finance costs - - (7,680) (7,680) ------------------ ------------------ ------------------ ------------------Profit before tax 44,110 7,886 (9,740) 42,256 ------------------ ------------------ ------------------ ------------------Assets and LiabilitiesSegment assets 314,053 44,638 22,957 381,648Segment liabilities (49,800) (19,477) (129,695) (198,972) ------------------ ------------------ ------------------ ------------------Segment net assets 264,253 25,161 (106,738) 182,676 ------------------ ------------------ ------------------ ------------------ Fuller's Fuller's Beer52 weeks to 1 April 2006 Inns Company Unallocated* Total £000 £000 £000 £000RevenueSegment revenue 111,911 51,285 - 163,196Inter-segment sales - (18,048) - (18,048) ------------------ ------------------ ------------------ ------------------Revenue from third parties 111,911 33,237 - 145,148 ------------------ ------------------ ------------------ ------------------ Operating profit pre 17,399 7,040 (2,014) 22,425exceptionals **Operating exceptional items - - - - ------------------ ------------------ ------------------ ------------------Operating profit ** 17,399 7,040 (2,014) 22,425Profit on disposal of properties 265 - - 265Reorganisation costs (470) (975) (1,462) (2,907)Net finance costs - - (4,473) (4,473) ------------------ ------------------ ------------------ ------------------Profit before tax ** 17,194 6,065 (7,949) 15,310 ------------------ ------------------ ------------------ ------------------Assets and LiabilitiesSegment assets 329,025 42,159 7,684 378,868Segment liabilities (47,562) (18,872) (156,775) (223,209) ------------------ ------------------ ------------------ ------------------Segment net assets 281,463 23,287 (149,091) 155,659 ------------------ ------------------ ------------------ ------------------ * Unallocated assets and liabilities represent the net of bank loans,debentures, corporation tax, cash at bank and assets held under centralmanagement. Unallocated expenses represent primarily the salary and propertycosts charged to central management. ** The unallocated amounts in the analysis for the 52 weeks to 1 April 2006 havebeen revised to better reflect the extent to which these costs are attributableto the operations. Operating profit pre-exceptionals for 2006 was previouslyallocated as follows: 52 weeks to 1 April 2006 as Fuller's Fuller's Beer Unallocated Totalpreviously reported Inns Company £000 £000 £000 £000 Operating profit 18,984 8,445 (5,004) 22,425 ------------------ ------------------ ------------------ ------------------ 3. EXCEPTIONAL ITEMS 2007 2006 £000 £000Property Profit on disposal of properties 20,535 265Write down of assets held for sale (388) - ------------------ ------------------ 20,147 265 ------------------ ------------------Reorganisation costs Redundancies - (1,367)Professional fees - (814)Other reorganisation and integration costs - (726) ------------------ ------------------ - (2,907) ------------------ ------------------Total exceptional items before tax 20,147 (2,642) ------------------ ------------------ 4. TAXATION 2007 2006Tax on profit on ordinary activities £000 £000 Tax charged in the income statementCurrent income tax:Corporation tax 6,532 4,548Amounts (over)/under provided in previous years (186) 63 ------------------ ------------------Total current income tax 6,346 4,611 ------------------ ------------------Deferred tax:Origination and reversal of temporary 6,572 321differencesAmounts under provided in previous years 227 - ------------------ ------------------Total deferred tax 6,799 321 ------------------ ------------------Total tax charged in the income statement 13,145 4,932 ------------------ ------------------Tax relating to items (credited)/debited to equity:Deferred tax:Reduction in deferred tax liability due to (433) (212)indexationActuarial gains/(losses) on pension schemes 773 (425)Financial assets 346 -Share-based payments (1,012) - ------------------ ------------------Tax credit included in the statement of recognised income and (326) (637)expense ------------------ ------------------Reconciliation of the total tax charge The tax expense in the income statement for the year is higher than the standard rate of corporation tax in the UK of 30% (2006: 30%). The differences are reconciled below: 2007 2006 £000 £000 Profit from continuing operations before 42,256 15,310taxation ------------------ ------------------Accounting profit multiplied by the UK standard rate of corporation 12,677 4,593tax of 30%Items not deductible for tax purposes 859 729Profit on disposal of properties not taxable in the year (6,581) -Deferred tax on rolled over gains on disposal of properties 6,787 -Current and deferred tax underprovided in previous years 41 63Share-based payments (139) -Capital losses (499) -Other - (453) ------------------ ------------------Total tax charged in the income statement 13,145 4,932 ------------------ ------------------ 5. EARNINGS PER SHARE 2007 2006 £000 £000 Profit attributable to equity shareholders 29,111 10,378Exceptional items net of tax (13,713) 1,850 ------------------ ------------------Adjusted earnings attributable to equity shareholders 15,398 12,228 ------------------ ------------------ Number Number Weighted average share capital 22,335,000 22,365,000Dilutive outstanding options 266,000 250,000 ------------------ ------------------Diluted weighted average share capital 22,601,000 22,615,000 ------------------ ------------------ £1 'A' ordinary share or unquoted £1 'C' ordinary share Pence PenceBasic earnings per share 130.34 46.40Diluted earnings per share 128.80 45.89Adjusted earnings per share * 68.94 54.67Diluted adjusted earnings per share * 68.13 54.07 Unquoted 10p 'B' ordinary share Pence PenceBasic earnings per share 13.03 4.64Diluted earnings per share 12.88 4.59Adjusted earnings per share * 6.89 5.47Diluted adjusted earnings per share * 6.81 5.41 The earnings per share calculation is based on earnings from continuing totaloperations and on the weighted average ordinary share capital. Adjustedearnings per share are calculated after excluding exceptional gains and lossesand on the same weighted average ordinary share capital as for the basicearnings per share. Diluted earnings per share amounts are calculated using the same earnings figureas for basic earnings per share, divided by the weighted average number ofordinary shares outstanding during the year plus the weighted average number ofordinary shares that would be issued on the conversion of all the dilutivepotential ordinary shares into ordinary shares. * Last year's adjusted earnings per share had been calculated on an historic UKGAAP basis. This has been restated so that it is on a consistent basis with theadjusted earnings per share calculated for the current year. 6. DIVIDENDS PAID AND PROPOSED 52 weeks to 52 weeks to 31 March 1 April 2007 2006 £000 £000Declared and paid during the year:Equity dividends on ordinary shares: Final dividend for 2006: 14.12p (2005: 13.10p) 3,157 2,923 Interim dividend for 2007: 6.47p (2006: 5.63p) 1,445 1,260 ------------------ ------------------ 4,602 4,183 ------------------ ------------------Dividends on cumulative preference shares 120 120 ------------------ ------------------Dividends paid 4,722 4,303 ========== ==========Proposed for approval at the AGM: Final dividend for 2007: 16.25p (2006: 14.12p) 3,626 3,157 ========== ========== The pence figures above are for the £1 'A' ordinary shares and unquoted £1 'C'ordinary shares. The unquoted 10p 'B' share carry dividend rights of 1/10 ofthose applicable to the £1 'A' ordinary shares. Own shares held in the Fuller,Smith & Turner P.L.C. Employee Share Trust 1998 do not qualify for dividends asthe trustees have waived their rights. Dividends are also not paid on sharesheld as treasury shares. 7. RECONCILIATION OF MOVEMENTS IN TOTAL EQUITY 52 weeks to 52 weeks to 31 March 1 April 2007 2006 £000 £000 Opening total equity 155,659 152,283Adjustments relating to the adoption of IAS 32 & 39 - (1,600) ------------------ ------------------Opening equity restated 155,659 150,683 ------------------ ------------------ Net actuarial gains/(losses) on pension schemes 1,805 (991)Net gain on valuation of financial assets 807 -Reduction in deferred tax liability due to indexation 433 212Deferred tax on share-based payments 1,012 - ------------------ ------------------Net gains/(losses) not recognised in the Income Statement 4,057 (779) ------------------ ------------------ Issues of new shares 454 178Shares purchased including treasury shares (3,627) (1,864)Shares released including treasury shares 266 256Dividends declared and paid (4,602) (4,183)Cost of share-based payments 1,358 990Profit for the year 29,111 10,378 ------------------ ------------------Net other movements in the year 22,960 5,755 ------------------ ------------------Closing total equity 182,676 155,659 ========== ========== 8. SHAREHOLDERS' INFORMATION Shareholders holding £1 'C' ordinary shares are reminded that they have 30 daysfrom 8 June 2007 should they wish to convert those 'C' shares to 'A' shares.The next available opportunity after that will be November 2007. For furtherdetails please contact the Company's registrars, Computershare on 0870 702 0003. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Fuller Smith & Turner