7th Mar 2005 07:01
Travis Perkins PLC07 March 2005 7 March 2005 PRE-TAX PROFIT UP 17.0 PER CENT TO £190.4 MILLION OPERATING PROFIT BEFORE AMORTISATION OF GOODWILL* UP 14.0 PER CENT AT £218.2 MILLION DIVIDENDS UP 25.0 PER CENT AT 30.5 PENCE 2004 2003 Increase £m £m % Turnover 1,828.6 1,678.3 9.0% Operating profit before amortisation of goodwill* 218.2 191.4 14.0% Profit before taxation 190.4 162.7 17.0% Profit after taxation 130.1 108.9 19.5% Like-for-like free cash flow (note 8) 149.8 128.1 16.9% Basic earnings per ordinary share 113.9p 96.5p 18.0%Adjusted earnings per ordinary share before amortisation of goodwill (note 13) 129.1p 110.0p 17.4% Final dividend per ordinary share 21.0p 16.8p 25.0% Total dividend per ordinary share 30.5p 24.4p 25.0% * See details of goodwill amortisation in the profit and loss account on page 8. Geoff Cooper, chief executive, said: "These results demonstrate how the group's strategy of continuous improvementand branch network expansion is driving further growth in turnover, operatingmargins and returns to shareholders. This provides an excellent platform for further gains through the integration ofWickes into the enlarged group." Enquiries Geoff Cooper Paul Hampden Smith Chief Executive Finance Director Tel: 07712 878 685 (mobile) Tel: 07712 878 242 (mobile) Issued on behalf of Travis Perkins plc by Tavistock Communications Limited(contact: Keith Payne, Tel: 020 7920 3150). Chairman's statement For the year ended 31 December 2004 RESULTS I am pleased to report pre-tax profits for the year ended 31 December 2004 of£190.4 million, an increase of 17 per cent over the £162.7 million delivered in2003. Turnover at £1,828.6 million was 9 per cent ahead of the previous year.Operating profit, before goodwill amortisation of £17.4 million (2003: £15.3million), was £218.2 million, compared with £191.4 million in 2003, an increaseof 14 per cent. Basic earnings per share were up 18 per cent at 113.9 pence, compared with 96.5pence in 2003. Adjusted earnings per share prior to amortisation of goodwill,rose 17.4 per cent to 129.1 pence from 110.0 pence. DIVIDEND At the half year the board indicated its intention to increase the finaldividend to reflect the cash generative nature of the business and itsconfidence in the future prospects of the company. As a result of the company'scontinued progress, the board is recommending a final dividend of 21.0 pence pershare, an increase of 25 per cent on the final dividend of 16.8 pence for 2003.Together with the interim dividend of 9.5 pence, this would give a totaldividend of 30.5 pence per share, up 25 per cent on the previous year. BOARD OF DIRECTORS In December 2004 Frank McKay announced his intention to retire from the companyin October this year at age 60. During his five-year tenure, which has includedthe acquisition of Wickes, turnover has more than trebled with strong growth byway of acquisition, brown-field openings and organic development. Double-digitearnings per share growth year-on-year, a strong dividend progression and anincrease in the branch network from 450 to over 900 have been achieved. I amsure shareholders will join me in thanking Frank and in wishing him well for thefuture. Geoff Cooper joined the board on 1 February 2005 and became chief executive on 1March 2005. He was previously deputy chief executive of Alliance UniChem a £9billion turnover company that is a member of the FTSE 100 index. John Coleman became a non-executive director of the company in February 2005. Heis chief executive of House of Fraser and brings a wealth of retail experienceto our board. Ted Adams and Peter Maydon have announced that they will be retiring asnon-executive directors of the company in December 2005. Ted has worked for the group for 33 years, initially as finance director ofSandell Perkins and then after several promotions as group managing director ofTravis Perkins. In 1999 he retired as an executive director and a short timelater accepted a position of non-executive director. He is widely respectedthroughout the industry, a fact which was recognised when he was electedpresident of the Builders Merchants Federation. Peter Maydon has given great service to the company over the past seven years.During that time he has been a member of all of the board committees, chairmanof the company's pension trust and latterly he has been senior non-executivedirector and chairman of the remuneration committee. On behalf of shareholders I would like to thank Ted and Peter for beingconsistent sources of inspiration and wise counsel to their board colleagues. CORPORATE GOVERNANCE During the year the board has continued to review actively all of the majorareas of risk to the company. Further details of the governance controls can befound under the corporate governance section of the annual report and accounts. WICKES We are pleased to welcome the directors and staff of Wickes to the TravisPerkins' group. Following shareholder approval at our EGM on 2 February 2005 andclearance from the Office of Fair Trading, the acquisition was completed on 11February 2005. We are delighted with the acquisition for which we paid £950million on a debt free basis. Through Wickes we have entered a new market withstrong long-term growth characteristics together with significant synergy andstore expansion potential. OUTLOOK We are delighted with the 2004 results, which included a record number ofsmaller acquisitions and brown-field openings. We have made a good start to2005, with our trade in the RMI sector ahead of our expectations and our earlywork confirming our view of the synergies available from the acquisition ofWickes. Despite a slowing of consumer spending in February, as experienced bymany retailers, we see enhanced earnings growth from the Wickes acquisition. Wewill continue to grow our business by investing in a plentiful supply ofopportunities for TP acquisitions and for new sites for both Wickes and formerchant branches. T. E. P. StevensonChairman4 March 2005 Chief executive's review For the year ended 31 December 2004 RESULTS The company enjoyed a further year of strong performance in 2004. Operatingprofit before amortisation of goodwill of £17.4 million (2003: £15.3 million),rose 14 per cent to £218.2 million from £191.4 million in 2003. Turnoverincreased by 9 per cent to £1,828.6 million from £1,678.3 million. Sales growthwas again driven by our ongoing programme of investment in the acquisition ofindependent merchants and in the opening of new brown-field sites. Indeed, in2004 the group achieved a record number of one-off branch openings. Grouplike-for-like sales were up 1.8 per cent. The overall operating margin, before goodwill amortisation, for the year movedup again, from 11.4 per cent to 11.9 per cent, as a result of furtherimprovements in procurement, overhead efficiencies gained as the group grew andour overall culture of continuous improvement. City Plumbing Supplies ("CPS") and Commercial Ceiling Factors ("CCF") performedwell during a period of considerable restructuring in both businesses. Jayhardand B&G have now been fully integrated into the CPS management structure andsignificant investment was made in the acquired branches last year, with furthersimilar investment planned for 2005. Gross profit as a percentage of salesimproved further on a like-for-like basis. DEVELOPMENTS The past year saw significant growth in the rate of addition of one-offbranches, both from the acquisition of smaller independent businesses and fromthe opening of brown-field sites. In all 67 new sites were added. The companycompleted 16 consolidations, mostly within the plumbing and heating network, asopportunities were taken to reduce operating costs while maintaining sales. Thenet addition to the branch total was 51. The acquisition of 30 mixed merchant branches and the opening of 21 brown-fieldsites filled a number of key gaps in the geographic coverage of the TravisPerkins' brand. There were also 4 consolidations. At the same time a further 3outlets were added to the Keyline branch network. The group's specialist networkof plumbing and heating branches under the CPS brand increased by a net 1branch, comprising 4 acquired branches, 9 brown-field openings and 12consolidations. The total amount spent on acquisitions was £39 million. By the end of 2004 the group was trading from 751 outlets compared with 700 ayear earlier. BRANCH IMPROVEMENTS We have continued to invest in the branch network in order to ensure continuousimprovement in customer facilities. During the year redevelopment projects werecarried out at numerous Travis Perkins' branches, including those in Caerphilly,Gastard, Erdington, Shepshed, Crosby, Oswestry, Northampton, Cromer, Slough,Urmston, Forfar and Watford. The upgrading of Keyline branches continued, with refurbishments at Colchester,Swindon, Elgin, Norwich and Kingswinford. Two CCF branches were moved intolarger, improved units in Nottingham and Cardiff. A major upgrading programme ofbathroom showroom facilities at more than 25 CPS branches was also completedduring the year. INFORMATION TECHNOLOGY We have continued to invest in the quality of our information technologyinfrastructure, notably through the installation across the branch network ofover four thousand new PC's, together with supporting server capacity. Havingachieved "chip and pin" accreditation, the introduction of this technology fordebit and credit card authorisation across the group was included in the PCrollout programme, along with the replacement of all of our point-of-salescanners. Wireless terminals have been added to the control systems at ourdistribution centre in Brackmills, resulting in increased efficiency andthroughput. We are also in the process of piloting the use of wireless hand-heldterminals in a number of our branches. The group's websites have been given a new look and an enhanced range offacilities, on a consistent basis for the various brands. A more comprehensivesection on financial and corporate information has also been included. A new on-line training initiative was launched during the year. As a resultsuppliers can now upload training material direct to our intranet systems andall branch staff are now able to access it via the upgraded PC network. This hasimproved the effectiveness of product training programmes across the group. CUSTOMER SERVICE We have continued to monitor seven key customer service performance indicators,derived from data captured by our information systems, and extended themethodology to monitor suppliers on issues that can assist in improving furtherour customer service performance. The information collected is made available inreal time to our suppliers via an extranet system, thereby ensuring fast andeffective feedback. HEALTH AND SAFETY The company remains committed to achieving and maintaining high standards inhealth and safety. Last year two extensive audits of health and safety practicewere conducted. One, our own internal health and safety audit, has resulted ineach of our branches now being able to produce a health and safety action planfor the year. In addition, our Lead Authority, Northampton Borough Council,carried out a detailed review of our health and safety practices and produced asafety management review together with recommendations for improvement. Theconclusions of these audits, together with a detailed analysis of 'accidentcausations', will form the basis of our health and safety action plan for 2005and beyond. ENVIRONMENT Our environmental management system accreditation to ISO 14001 was maintainedduring the year. Over the past three years of our first environmentalimprovement plan, good progress has been made in reducing adverse impact on theenvironment, particularly in the areas of timber certification, wastemanagement, volatile organic compound emissions and CO2 emissions. A newimprovement plan will be produced in the first part of this year and new targetswill be set to reduce further our environmental impact.Timber procurement has continued to be a major focus of attention and we haveincreased further the percentage of products procured from sources certified torecognised forestry standards. Chain of custody accreditation for both ForestStewardship Council ("FSC") and the Programme for the Endorsement of ForestCertification ("PEFC") schemes has now been achieved for all Travis Perkins andKeyline branches selling timber products. FUTURE EXPANSION We see significant additional scope for profitable growth of the Travis Perkins,Keyline, CCF and CPS brands through the continued strategy of acquisition ofregional groups and independent merchants, and the opening of brown-field sites.The acquisition of Wickes was announced on 16 December 2004 and, followingshareholder approval and Office of Fair Trading clearance, was completed on 11February 2005. This acquisition further strengthens our position in the buildersmerchant market, as approximately one third of Wickes' sales are to tradesmen,and provides us with a new platform for growth in the UK's expanding DIY sector.In addition, we foresee substantial synergy benefits being achieved fromimprovements in procurement, logistics, and other process efficiencies. After another year of good progress, we remain confident of our ability toachieve further growth in the future. STAFF On behalf of the board, I would like to thank all our employees for theircontribution to the success of the company during 2004. Geoff CooperChief Executive4 March 2005 Finance director's report For the year ended 31 December 2004 RESULTS Pre-tax profits were £190.4 million (2003: £162.7 million) after charginggoodwill amortisation of £17.4 million (2003: £15.3 million). Pre-tax profits before goodwill amortisation of £17.4 million (2003: £15.3million) were £207.8 million (2003: £178 million), an increase of 16.7 per cent.Earnings before interest, tax, depreciation and goodwill amortisation ("EBITDA")(as defined in note 11) were £250.5 million (2003: £218.3 million), an increaseof 14.8 per cent. Net interest payable for the year was £7.6 million compared with £9.1 million in2003. The tax charge was £60.3 million (31.7 per cent) compared with £53.8 million(33.1 per cent) in 2003. The rate is higher than the UK corporation tax rate of30 per cent principally because the effect of claiming a statutory deduction forshare options exercised during the year (£4.6 million tax effect 2003: £1.8million) is more than offset by goodwill amortisation and certain expenditure,which does not qualify for tax relief. The effective tax rate, after adjustingfor goodwill amortisation, was 29 per cent (2003: 30.2 per cent). The underlying effective tax rate after adjusting for goodwill amortisation andexcluding the effect of the gains on share options described above is 31.2 percent (2003: 31.2 per cent). CASH FLOW Over the past five-years the group has generated free cash of approximately £550million. For 2004 like-for-like free cash flow (as defined in note 8) was £149.8million (2003: £128.1 million) an increase of 16.9 per cent. The free cashgenerated by the group was used in part to fund expansion capital expenditure inthe existing business and on new acquisitions, which in total cost £68.3 million(2003: £89.7 million). In addition, as described below accelerated pensioncontributions of £25.8 million (2003: £3.6 million) were made during the year. NET DEBT AND BORROWING FACILITIES In April 2004 the group repaid the final £75 million tranche of the syndicatedloan used to purchase Keyline in 1999. At the same time the group's £50 millionrevolving credit facility expired. The facilities were replaced with two £25million five-year bullet loans and £78 million of 364 day uncommittedfacilities. In November 2004, the first £5 million instalment of an existing £25 millionamortising loan was repaid leaving the group with £120 million of committeddrawn loan facilities all of which were at variable interest rates linked toLIBOR. Net debt at the year-end was £12.2 million (2003: £128.5 million), whichrepresents a gearing level (as defined in note 12) of 1.9 per cent (2003: 26.9per cent). Borrowings include £9.0 million (2003: £12.2 million) of unsecuredloan notes, which are redeemable at six monthly intervals ending in June 2015. Interest cover, before goodwill amortisation (as defined in note 9) isapproximately 29 times (2003: 21 times). On 16 December 2004 the group signed a £1.2 billion credit agreement with TheRoyal Bank of Scotland and Barclays Capital. The facility comprises a £500million five-year term loan and a five-year, £700 million revolving creditfacility. On completion of the acquisition of Wickes on 11 February 2005 the newfacility was drawn and, with the exception of £25 million of overdraftfacilities, the existing facilities referred to above were either repaid orexpired. PENSIONS Despite improved asset returns and £25.8 million of company contributions inexcess of the profit and loss charge (2003: £3.6 million) the gross pensionscheme deficit at 31 December 2004 was £128.3 million (2003: £121.6 million).The increased deficit was caused primarily by the company adopting the mostrecent longevity assumptions when valuing the scheme liabilities, whichincreased the deficit by £36 million. At 31 December 2004 the net deficit, afterallowing for deferred tax, was £89.8 million compared with £85.1 million at 31December 2003. SHAREHOLDERS' FUNDS Total equity shareholders' funds, after deducting the pension scheme deficit at31 December 2004, were £630.5 million, an increase of £153.5 million on 31December 2003. In December 2004 in anticipation of the acquisition of Wickes, the companyplaced 5 million shares at a price of £15.30 raising £75.5 million net of the £1million cost of the placing, which has been deducted from the share premiumaccount. The return on equity shareholders' funds before taxation (as defined in note 10)has remained at 29.3 per cent. This level of return, which is substantiallyhigher than the group's weighted average cost of capital, is consistent withreturns achieved over the last four years. At the year-end the share price was 1,733 pence (2003: 1,278 pence) and themarket capitalisation £2,089 million (2003: £1,449 million), representing 3.3times (2003: 3 times) shareholders' funds. GOODWILL The net book value of goodwill in the balance sheet is £287.4 million, which isbeing amortised over 20 years. Additions to goodwill in the year totalled £19.1million. TREASURY RISK MANAGEMENT Treasury activities are managed centrally under a framework of policies andprocedures approved and monitored by the board. The objectives are to protectthe assets of the group and to identify and then manage financial risk. Inapplying its policies, the group will utilise derivative instruments, but onlyfor risk management purposes. The principal risk facing the group is an exposure to interest ratefluctuations. The group is not exposed to significant foreign exchange risk asmost purchases are invoiced in sterling. These risks are described furtherbelow: INTEREST RATE RISK The group finances its operations through a mixture of retained profits, bank borrowings and loan notes. The group borrows at floating rates and, where necessary, uses interest rate swaps into fixed rates to generate the preferred interest rate profile and to manage its exposure to interest rate fluctuations. CURRENCY RISK The group usually buys currency at spot rates. While this was the situation during 2004, forward contracts may be purchased where appropriate. LIQUIDITY RISK The group's policy has been to ensure that it has committed borrowing facilities in place in excess of its peak forecast gross borrowings for at least the next twelve months. The current refinancing is discussed above under Net Debt and Borrowing Facilities. INTERNATIONAL ACCOUNTING STANDARDS ("IAS") The group is well advanced in its preparation for the conversion of itsaccounting policies from UK GAAP to IAS, which became mandatory for all listedcompanies on 1 January 2005. Our Auditors are currently auditing our IAScalculations, a process which will be completed well ahead of the half-year.Whilst it is too early to fully quantify the effect of IAS on our 2004 resultsand year-end balance sheet we anticipate that the principal differences willarise from the: • Treatment of property leases, with many leases being capitalised in the balance sheet; • Charge in respect of the fair value of share options to the profit and loss account; • Timing of recognition of proposed dividends in the accounts; • Non-amortisation of goodwill; • Recognition of certain deferred tax liabilities; and • Valuation and amortisation of brand names as well as the treatment of interest rate swaps following the acquisition of Wickes. Whilst the value of net assets and reported profits and the classification ofcertain items may be affected by the implementation of IAS, there will be noeffect on cash flows. P. N. Hampden SmithFinance Director4 March 2005 Consolidated Profit and Loss AccountFor the Year Ended 31 December 2004 2004 2003 £m £m Turnover 1,828.6 1,678.3===============================================================================Operating profit before amortisation of goodwill 218.2 191.4 Amortisation of goodwill (17.4) (15.3)-------------------------------------------------------------------------------Operating profit after amortisation of goodwill 200.8 176.1 Net interest payable (7.6) (9.1) Other finance costs (2.8) (4.3)-------------------------------------------------------------------------------Profit on ordinary activities before taxation 190.4 162.7 Tax on profit on ordinary activities (60.3) (53.8)-------------------------------------------------------------------------------Profit on ordinary activities after taxation 130.1 108.9 Equity dividends paid and proposed (36.3) (27.6)------------------------------------------------------------------------------- Retained profit transferred to reserves 93.8 81.3===============================================================================Earnings per ordinary share Basic 113.9p 96.5p Diluted 112.6p 95.2p Adjusted 129.1p 110.0p=============================================================================== Dividend per ordinary share 30.5p 24.4p=============================================================================== All results relate to continuing activities. The results disclosed in the groupprofit and loss account are not materially different from the results on anunmodified historical cost basis. Consolidated Balance SheetAs at 31 December 2004 2004 2003Fixed assets £m £mTangible assets 326.3 284.7Intangible assets - goodwill 287.4 285.7Investments 3.9 4.3------------------------------------------------------------------------------- 617.6 574.7-------------------------------------------------------------------------------Current assetsStocks 200.6 178.1Debtors 287.8 265.4Properties held for resale - 0.2Short term investments - cash deposits 98.0 27.5Cash at bank and in hand 18.9 6.4------------------------------------------------------------------------------- 605.3 477.6 Creditors: amounts falling due within one year (405.4) (400.0)------------------------------------------------------------------------------- Net current assets 199.9 77.6------------------------------------------------------------------------------- Total assets less current liabilities 817.5 652.3 Creditors: amounts falling due after more than one year (65.0) (70.1) Provisions for liabilities and charges (32.2) (20.1)------------------------------------------------------------------------------- Net assets excluding pension deficit 720.3 562.1Pension deficit (89.8) (85.1)------------------------------------------------------------------------------- Net assets including pension deficit 630.5 477.0=============================================================================== Capital and reservesCalled up share capital 12.1 11.3Share premium account 159.2 69.4Revaluation reserves 29.8 30.6Profit and loss account 429.4 365.7------------------------------------------------------------------------------- Total equity shareholders' funds 630.5 477.0------------------------------------------------------------------------------- Consolidated Cash Flow StatementFor the Year Ended 31 December 2004 2004 2003 £m £mNet cash inflow from operating activities 222.0 230.8-------------------------------------------------------------------------------Returns on investments and servicing of financeInterest received 0.5 0.7Interest paid (8.5) (10.0)-------------------------------------------------------------------------------Net cash outflow for returns on investments and servicing of finance (8.0) (9.3)-------------------------------------------------------------------------------TaxationUK corporation tax paid (54.2) (50.9)-------------------------------------------------------------------------------Capital expenditure and financial investmentPurchase of tangible fixed assets (67.3) (49.4)Receipts from sales of tangible fixed assets 2.2 2.5-------------------------------------------------------------------------------Net cash outflow for capital expenditure and financial investment (65.1) (46.9)-------------------------------------------------------------------------------AcquisitionsPurchase of business undertakings (40.2) (73.0)Net cash acquired with business undertakings 1.2 0.7-------------------------------------------------------------------------------Net cash outflow for acquisitions (39.0) (72.3)-------------------------------------------------------------------------------Equity dividends paid (30.0) (23.7)-------------------------------------------------------------------------------Cash inflow before use of liquid resources and financing 25.7 27.7 Management of liquid resourcesCash (outflow to)/inflow from short term deposits (70.5) 2.5------------------------------------------------------------------------------- Financing Issue of ordinary share capital (net of expenses) 90.6 3.5Repayment of bank loans (30.0) (25.0)Repayment of unsecured loan notes (3.2) (1.9)Capital element of finance lease rentals (0.1) (0.1)-------------------------------------------------------------------------------Net cash inflow from/(outflow to) financing 57.3 (23.5)-------------------------------------------------------------------------------Increase in cash in the year 12.5 6.7=============================================================================== Reconciliation of Movements in Equity Shareholders' FundsFor the Year Ended 31 December 2004 2004 2003 £m £mEquity shareholder's funds at 1 January 477.0 395.4 Profit attributable to shareholders of the company 130.1 108.9Dividends (36.3) (27.6)-------------------------------------------------------------------------------Retained profit transferred to reserves 93.8 81.3 New share capital subscribed 90.6 3.5Unrealised loss on revaluation of investment properties (0.4) (0.3)Actuarial gains and losses (net of deferred tax) (30.5) (2.9)-------------------------------------------------------------------------------Net increase in shareholders' funds 153.5 81.6-------------------------------------------------------------------------------Equity shareholders' funds at 31 December 630.5 477.0=============================================================================== Statement of Total Recognised Gains and LossesFor the Year Ended 31 December 2004 2004 2003 £m £mProfit attributable to shareholders of the company 130.1 108.9Actuarial gains and losses recognised in the pension scheme (32.5) (2.7)Deferred tax on pension deficit 2.0 (0.2)Unrealised loss on revaluation of investment properties (0.4) (0.3)-------------------------------------------------------------------------------Total gains recognised since last annual report 99.2 105.7=============================================================================== Analysis of Actuarial Gains and Losses Included in theStatement of Total Recognised Gains and LossesFor the Year Ended 31 December 2004 2004 2003 £m £mDifference between actual and expected return on scheme assets 10.9 14.7Experience gains and losses arising on scheme liabilities 0.1 0.1Effects of changes in assumptions underlying the present value of scheme liabilities (43.5) (17.5)------------------------------------------------------------------------------- Total actuarial gains and losses recognised in the statement of total recognised gains and losses (32.5) (2.7)=============================================================================== Reconciliation of Operating Profit toNet Cash Inflow from Operating Activities 2004 2003 £m £mOperating profit after amortisation of goodwill 200.8 176.1Depreciation charges 32.3 26.9Amortisation of goodwill 17.4 15.3Profit on sale of fixed assets (0.2) -Increase in stocks (15.7) (10.8)Increase in debtors (14.3) (0.4)Increase in creditors 27.5 27.3Additional cash payments to the pension scheme (25.8) (3.6)------------------------------------------------------------------------------- Net cash inflow from operating activities 222.0 230.8=============================================================================== Reconciliation of Net Cash Flow to Movement in Net Debt 2004 2003 £m £mIncrease in cash in year 12.5 6.7Cash inflow from debt 33.3 27.0Cash outflow/(inflow from) to increase/(to decrease) liquid resources 70.5 (2.5)------------------------------------------------------------------------------- Movement in net debt in the year 116.3 31.2 Net debt at 1 January (128.5) (159.7)------------------------------------------------------------------------------- Net debt at 31 December (12.2) (128.5)=============================================================================== Notes: 1. The accounting policies used are consistent with those stated in the financial statements of the group for the year ended 31 December 2003.2. These statements are not statutory accounts within the meaning of s240 of the Companies Act 1985.3. The results for the year ended 31 December 2003 are taken from the group's statutory accounts, which carry an unqualified auditors' report and have been filed with the Registrar of Companies.4. Statutory accounts, on which the audit report is unqualified, for the year ended 31 December 2004 will be delivered to the Registrar of Companies in due course.5. The statutory accounts for both the year ended 31 December 2004 and year ended 31 December 2003 did not contain a statement under s237 (2) or (3) of the Companies Act 1985.6. An interim dividend of 9.5 pence was paid to shareholders on 29 October 2004. The proposed final dividend of 21.0 pence will be paid on 16 May 2005 to shareholders on the register at 22 April 2005.7. It is intended to post the Report and Accounts on 30 March 2005 and to hold the Annual General Meeting on 27 April 2005.8. Like-for-like free cash flow is derived: 2004 2003 £m £mMovement in net debt in year 116.3 31.2Adjustment in respect of creditors paid in advance - (16.6)Dividends 30.0 23.7Special pension contributions 25.8 3.6Net cash outflow for expansion capital expenditure 29.3 17.4Net cash outflow for acquisitions 39.0 72.3Shares issued (90.6) (3.5)-------------------------------------------------------------------------------Like-for-like free cash flow 149.8 128.1=============================================================================== The definition of like-for-like free cash flow has been amended during the year to mirror that typically used by investment analysts.9. Interest cover is calculated by dividing operating profit before amortisation of goodwill by the net interest payable.10. Return on equity is calculated by dividing profit before tax and goodwill amortisation by weighted average net assets (after adding back total goodwill amortised to profits, goodwill previously written off to reserves and the pension scheme deficit).11. EBITDA is operating profit before goodwill amortisation plus depreciation of £32.3 million (2003: £26.9 million).12. Gearing is calculated by dividing net debt by shareholders' funds.13. Adjusted earnings per share is basic earnings per share of 113.9 pence (2003: 96.5 pence) increased by adding back the effect of goodwill amortisation of 15.2 pence (2003: 13.5 pence) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Travis Perkins