14th Mar 2006 07:02
Guinness Peat Group PLC14 March 2006 Guinness Peat Group plc The following unaudited consolidated results of Coats Group Limited ("theCompany") for the year ended 31 December 2005 are released by Guinness PeatGroup plc ("GPG") for information only. Richard RussellCompany SecretaryGuinness Peat Group plc 14 March 2006 Contacts:Blake Nixon (UK) 00 44 20 7484 3370Gary Weiss (Australia) 00 61 2 8298 4305Tony Gibbs (New Zealand) 00 64 9 379 8888 Coats Group Limited: unaudited results* for the year ended 31 December 2005 Financial summary Memorandum Like-for-like UK GAAP 2005 2004 2004 2004 Unaudited Unaudited Unaudited Unaudited US$m US$m US$m US$m Revenue 1,636.7 **1,626.3 1,578.2 ****1,587.5 Operating profit before 126.5 **92.4 90.5 ****104.8 reorganisation, impairment and other exceptional items (see note 2) Operating profit 99.8 **42.7 41.1 Profit before taxation 78.3 12.0 Net profit/(loss) attributable to 52.4 (7.6) equity shareholders Net cash inflow from operations 231.2 232.8 before reorganisation costs and other exceptional items (see note 5) Net cash inflow generated by 176.9 196.5 operations Capital expenditure 81.3 91.1 Net debt (excluding ***340.6 403.8 preference shares) Net debt 363.3 403.8 Net gearing (including ***76% 112% preference shares as equity) Net gearing 86% 112% * The financial information for the year ended 31 December 2005 has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards (IFRS) endorsed by the European Union, and the accounting policies adopted have been consistently applied to the restated financial information presented for the year ended 31 December 2004, except for those relating to the classification and measurement of financial instruments (IAS 32 and IAS 39). The Group has made use of the exemption available under IFRS 1 to only apply IAS 32 and IAS 39 from 1 January 2005. Note 1 in these financial statements sets out further information on the basis of preparation of the financial information. ** Excluding the impact of exchange translation and the acquisition and disposal of businesses *** These figures are adjusted to include preference shares in equity, instead of net debt. Net debt at 31 December 2005 includes $22.7 million of preference share capital as, in accordance with IAS 32 and 39 (which were adopted from 1 January 2005), the preference share capital of a subsidiary undertaking is now classified as debt. **** These figures are as reported for the Thread business in the financial information for Coats Group Limited for the year ended 31 December 2004, which was published on 28 April 2005, prepared under UK GAAP as at 31 December 2004. The operating profit figure is before reorganisation, impairment, exceptional items and goodwill amortisation. Chairman's statement Results In 2005, Coats Group Limited made good progress in terms of profits and cashgeneration, as well as improving its long term competitive position bysubstantial investments in the relocation and upgrading of capacity. Pre-exceptional operating profit (before reorganisation, impairment and otherexceptional items) improved by 37% on a like-for-like basis to $126.5 million(see Operating Review). The increase was mainly due to cost reductions inEurope, North America, and Corporate, as the benefits from previousreorganisation projects began to feed through. Like-for-like sales growth wasrelatively modest at 1%, with strong growth in handknittings offset by declinesin other crafts segments, and growth in industrial thread sales in Asia offsetby declines in North America and Western Europe. Net earnings attributable to equity shareholders recovered from a loss of $7.6million to a profit of $52.4 million. Exceptional gains from disposals andforeign exchange more than compensated the impact of higher reorganisationcosts. Net cash inflow from operations before reorganisation costs and otherexceptional items was $231 million (2004 - $233 million), comfortably coveringinvestment of $136 million (2004 - $127 million) in reorganisation projects, newplant and equipment. In addition to increased profit, cash performance wasassisted by further improvement in working capital efficiency, with a networking capital reduction of $55 million coming on top of the previous year'sreduction of $91 million. In 2005, average working capital/sales fell to 24%compared to 27% in 2004. As a result of the strong operating cash flow, net debt before reclassificationof preference shares ($22.7 million at 31 December 2005) was reduced by $63.2million. Investment, reorganisation & disposals During 2005 the Group continued to invest in upgrading plant and systems in allregions to world class standards, as well as expanding capacity in several Asianmarkets. Total spending amounted to $81 million (2004 - $91 million). The acquisition of Almedahls, a crafts wholesaler in Sweden and Norway withannual sales of approximately $27 million, was successfully completed and thebusiness is now fully integrated into our existing operations. The cost ofacquisition was more than covered by proceeds from the disposal of DormaBedwear. As anticipated, reorganisation costs continued at a high level, with the vastmajority of projects involving plant closures and overhead reductions in WesternEurope in response to reduced demand as a result of customer migration.Regrettably this has resulted in significant job losses. Including reductions inother regions, total numbers employed in the continuing business fell by 2,800to 24,700 at the end of 2005. Total reorganisation spend of $54 million wasmatched by proceeds from sales of property, which in most cases had becomesurplus as a result of the Group's restructuring program. European Commission Investigation As previously reported, since 2001 the European Commission has beeninvestigating former trading practices in the European haberdashery and threadmarkets, subsequently splitting its investigation into three sub-cases coveringhand-sewing needles, industrial thread, and fasteners. In October 2005 theCommission concluded its investigation into industrial thread and imposed finesagainst several producers, including Euro 18.5 million against the Group.Following legal advice, the Group has determined not to appeal and the fine willbe paid over the next two years. The cost of the thread fine will be met out of the provision established inearlier years and the remaining balance of the provision is believed to besufficient to cover any anticipated eventual payment in respect of the othercases. Prospects During 2006 we expect to make substantial progress towards completion of themajor projects which have been required to realign the Group's manufacturingcapacity and overheads with demand in each region and which have been a dominantfeature of management activity and Group results over the last few years. Wherepossible, remaining projects are being accelerated and this will result inreorganisation costs continuing at a similar level to 2005. However, proceedsfrom disposal of surplus property are also expected to remain high and, as in2005, should cover the majority of reorganisation costs. During 2006, investment in plant, machinery and IT is expected to continue at ahigh level as production units are brought up to world class standards andbusiness systems move towards a common SAP platform. The market for industrial thread - which makes up just over half of Group sales- remains highly competitive, but global demand is reasonably firm and marginsin 2006 will benefit from the reorganisation and investment projects completedin 2005. On the other hand, demand for industrial zips remains weak and bothvolumes and margins are under pressure. In crafts, there is some uncertainty as to whether handknittings sales will bemaintained at the high levels experienced during the last few years. First halfsales in North America will be affected by retailer de-stocking, as growth inconsumer demand during the second half of 2005 fell short of relativelyambitious retail projections. In contrast, handknittings sales in Western Europeremain strong. Although the Group's broad portfolio of craft products andflexible supply chain should enable it to withstand crafts fashion cycles betterthan many other participants in the industry, handknittings is our mostimportant segment and a key contributor to Group profits. Overall, despite uncertain market conditions, reorganisation benefits shouldallow the Group to make progress in 2006 at the operating level on alike-for-like basis. The regional analysis of sales and pre-exceptionaloperating profits presented below in the Operating Review highlights the scopefor improvement in margins once our businesses in Europe and North America arecorrectly configured and running at optimum efficiency. The Board remainsconfident that the significant investment in reorganisation and new plant willlead to further benefits in future years. Gary Weiss Chairman 14 March 2006 Operating review Trading performance by region 2004 restated* Exchange Acquisitions / 2004 2005 reported Like-for-like retranslation * disposals like-for-like Increase/ $m * $m $m $m $m (decrease)External sales Asia & Rest of 421.8 2.2 - 424.0 463.9 9% world UK & Europe 574.7 (1.6) 19.8 592.9 545.4 (8%) N America 412.6 1.7 4.4 418.7 431.3 3% S America 169.1 21.6 - 190.7 196.1 3% Total 1578.2 23.9 24.2 1626.3 1636.7 1% Pre-exceptionaloperating profit** * Asia & Rest of 66.0 0.3 - 66.3 66.4 world UK & Europe 1.2 0.4 (0.7) 0.9 12.1 N America 5.1 0.2 - 5.3 26.0 S America 18.2 1.7 - 19.9 22.0 Total 90.5 2.6 (0.7) 92.4 126.5 37% *All figures prepared in accordance with IFRS as explained in note 1. Inaddition, regional information has been restated to reflect the charge-out ofnet central costs to each operating unit and reclassification of certainterritories **Impact of restating 2004 figures at 2005 exchange rates ***pre reorganisation, impairment and other exceptional items (see note 2) In the following comments on regional performance, all comparisons with 2004 arebased on the table above. Asia & Rest of world Sales +9%; OP flat Industrial thread sales continued to grow strongly reflecting the benefit of ourrelationships with global retailers and brand owners. Operating profit howeverwas flat, partly as a result of start-up issues in the new apparel thread andzip plants in China, but also reflecting the extremely competitive market. Although there is strong local competition in the region, the investment in newcapacity and additional infrastructure in China - which held back results in2005 - makes the Group well positioned to benefit from future growth. In theshort term, strong growth of exports of clothing and footwear to Western marketsfrom the region is likely to continue, even though trade restrictions may alterthe balance from individual countries from time to time. UK & Europe Sales -8%; OP +$11 million The market for industrial thread and zips in Europe continued to decline as aresult of customer migration to Asia. Excluding the additional sales from theacquisition of Almedahls, crafts sales were also down on previous year as weakdemand for other crafts products offset strong growth in handknittings. Despite weak sales, there was a partial recovery in margins as the benefits fromplant closures and general overhead reductions began to come through. During theyear, substantial progress was made towards the total restructuring of ourindustrial thread business in Western Europe, but realisation of the fullpotential benefits depends on further cost reductions planned for 2006. OurEuropean crafts business is also expected to benefit from increased regionalcoordination of product ranges and supply chain. North America Sales +3%; OP +$21 million Strong growth in handknittings sales, partly assisted by the sell-in of launchstocks of a new fashion range, offset general market declines in industrialthread and other crafts product segments. Sales were also affected by a policyto reduce exposure to low-margin customer or product segments in industrialthread. Notwithstanding difficult market conditions, a sharp reduction in the industrialthread loss was the main contributor to improvement in North American operatingprofit as benefits from earlier reorganisation came through. Whilst the craftsmarket is expected to trade at a reduced level in 2006, there is clear scope forfurther gains in industrial thread margins from improved manufacturingefficiencies, overhead reductions, and removal of remaining textiles traderestrictions in the USA. South America Sales +3%; OP +$2 million US dollar values of sales and profits in South America benefited fromrevaluation of local currencies. However, the resulting reduction incompetitiveness depressed demand for industrial thread. This was offset bystrong growth in crafts sales, driven by handknittings. Operating marginsstrengthened to 11% as a result of the higher crafts volumes. Thread reorganisation, impairment and exceptional costs Reorganisation costs of $62.4 million (2004 - $45.6 million) were incurred inthe year. The majority of costs related to closures of industrial thread and zipplants in Western Europe but also included a further transfer of industrialthread production from the US to Mexico, reduction of overheads in the USA andAsia, and closure of two industrial thread spinning plants. Profits from the sale of properties becoming surplus as a result of thereorganisation program generated almost half of the exceptional gains of $35.7million (2004 - loss $3.8 million) with the balance due to exchange gains (seenote 2). Exceptional costs incurred in 2004 are largely in respect of therefinancing exercise completed in March 2004. Non-Thread As announced in last year's report the refocusing of the Group on Thread wascompleted with the sale of the Dorma Bedwear business in February 2005. Of thetwo remaining peripheral businesses Precision Process Testing was sold in 2005and the sale of Coats Viyella Woollen Yarns is expected to be completed in thefirst half of 2006. Sales in 2005 from non-thread businesses until the date ofdisposal amounted to $17.0 million (2004 - $133.7 million) and mainly related toBedwear. The total profit from discontinued operations of $15.0 million (2004 loss $1.4million) includes a benefit of $12.5 million in respect of prior year businessdisposals. This is due to a write-back of the tax provision originally made atthe time of disposal. Investment income, finance costs, and tax Finance costs fell to $30.1 million (2004 - $38.5 million), largely as a resultof an increase in pension net finance income and exchange gains. Interest paid,net of interest received (which under IFRS is classified as investment income)increased slightly despite the reduction in year-end net debt. This was due tothe reclassification in 2005 of preference shares as debt, an increase inseasonal debt, and the impact of the general rise in US dollar interest rates onthe floating rate portion of our debt. The tax charge of $39.5 million (2004 - $13.7 million) represents a rate of 50%(2004 - 114%) on pre-tax profit of $78.3 million (2004 - $12.0 million). In2005, operating losses and reorganisation costs in individual tax jurisdictionswere largely matched by exceptional gains, but the overall tax charge wasadversely affected by an additional provision of $14.8 million (2004 - $4.0million benefit) in respect of prior year items. Excluding the change inprovision for prior year items, the tax rate was 32% (2004 - 148%). Pension and other post-employment benefits The Group operates a defined benefit plan in the UK and there are similararrangements in the USA. The UK scheme shows a surplus of $27.2 million (2004 -deficit of $25.8 million) and the USA scheme shows a surplus of $28.9 million(2004 - $26.8 million). The UK and USA scheme surpluses are included innon-current assets. Employer contribution holidays on the UK and USA schemescontinue to be taken based on actuarial advice. There are various pension and leaving indemnity arrangements in other countries(primarily in Europe) where the Group operates. The vast majority of theseschemes, in line with local market practice, are not funded but are fullyprovided in the Group accounts and are predominantly included in current andnon-current liabilities. Balance sheet and cash flow Net cash inflow from operations remained strong at $176.9 million (2004 - $196.5million). The increase in operating profit before exceptional items (see note 2)of $36.0 million was offset by an increase of $18.0 million in reorganisationspend and a lower decrease in working capital following the very substantialreduction achieved in 2004 ($55.4 million in 2005 vs $90.7 million in 2004). The Group continues to make significant investments in upgrading plant andequipment and capital expenditure was $81.3 million (2004 - $91.1 million). Theprincipal projects related to the expansion of capacity in Asia and cost savingprojects in Europe and North America. Disposals of businesses (net of acquisitions) and surplus assets generated $62.0million (2004 - $41.6 million). In addition, disposals of financial investmentswere $2.4 million (2004 - $45.0 million). Net debt at 31 December 2005 of $363.3 million includes $22.7 million ofpreference share capital, in accordance with IAS 32 and 39 (which were adoptedfrom 1 January 2005). Before reclassification of the preference shares as debt,net debt was reduced by $63.2 million to $340.6 million compared to $403.8million at the start of the year. Equity shareholders' funds increased from $300.9 million to $397.9 million (seenote 4), largely reflecting the $52.4 million profit (2004 - $7.6 million loss)for the year and the actuarial gains in respect of pensions and otherpost-employment benefits of $46.8 million (2004 - $5.1 million). Treating thepreference shares as equity in both years, net gearing (net debt/total equity)on a comparable basis has improved from 112% to 76% (see Financial summary). Consolidated income statement (unaudited) 2005 2004 Unaudited UnauditedFor the year ended 31 December 2005 Notes US$m US$mContinuing operationsRevenue 1,636.7 1,578.2 Cost of sales (1,084.0) (1,069.4) Gross profit 552.7 508.8 Distribution costs (306.2) (298.1)Administrative expenses (165.6) (170.9)Other operating income 18.9 1.3 Operating profit 2 99.8 41.1 Share of profits of joint ventures 1.6 1.3Share of profits of associated undertakings - 0.2Investment income 7.0 7.9Finance costs (30.1) (38.5) Profit before taxation 78.3 12.0Taxation 3 (39.5) (13.7) Profit/(loss) from continuing operations 38.8 (1.7) Discontinued operationsProfit/(loss) from discontinued operations 15.0 (1.4) Profit/(loss) for the year 53.8 (3.1) Attributable to:EQUITY SHAREHOLDERS OF THE COMPANY 52.4 (7.6)Minority interests 1.4 4.5 53.8 (3.1) Consolidated balance sheet (unaudited) 2005 2004 31 December 31 December Unaudited Unaudited Restated*At 31 December 2005 Notes US$m US$mNon-current assetsIntangible assets 257.5 251.9Property, plant and equipment 482.5 477.4Investments in joint ventures 16.4 17.8Available-for-sale investments 3.5 4.0Deferred tax assets 4.6 13.6Pension surpluses 57.5 28.7Trade and other receivables 23.4 17.1 845.4 810.5 Current assetsInventories 286.9 303.1Trade and other receivables 302.7 348.6Available-for-sale investments 8.8 -Cash and cash equivalents 6 77.8 136.5 676.2 788.2 Non-current assets classified as held for sale 30.2 114.0 Total assets 1,551.8 1,712.7 Current liabilitiesTrade and other creditors (313.5) (311.0)Current income tax liabilities (4.5) (37.0)Bank overdrafts and other borrowings (122.0) (65.6)Provisions (150.0) (191.1) (590.0) (604.7) Net current assets 86.2 183.5 Non-current liabilitiesTrade and other creditors (28.0) (2.5)Deferred tax liabilities (12.1) (25.9)Borrowings (319.1) (474.7)Retirement benefit obligations:Funded schemes (2.1) (25.8)*Unfunded schemes (113.3) (117.7)Provisions (62.6) (43.2) (537.2) (689.8) Liabilities directly associated with non-currentassets classified as held for sale - (58.5) Total liabilities (1,127.2) (1,353.0) Net assets 424.6 359.7 EquityShare capital 4.2 4.2Share premium account 412.1 412.1Hedging and translation reserves 5.0 8.5Retained earnings (23.4) (123.9)EQUITY SHAREHOLDERS' FUNDS 4 397.9 300.9Minority interests 4 26.7 58.8Total equity 4 424.6 359.7 * Retirement benefit obligations for funded schemes as at 31 December 2004 have been restated from the$71.9 million disclosed in the interim accounts for the six months ended 30 June 2005 (see note 1). Consolidated cash flow statement (unaudited) 2005 2004 Unaudited UnauditedFor the year ended 31 December 2005 Notes US$m US$mCash inflow/(outflow) from operating activitiesNet cash inflow generated by operations 5 176.9 196.5Interest paid (36.4) (34.0)Taxation paid (39.8) (33.4)Net cash generated from operating activities 100.7 129.1 Cash inflow/(outflow) from investing activitiesDividends received from associates and joint ventures 2.8 1.7Acquisition of property, plant and equipment and intangible assets (81.3) (91.1)Disposal of property, plant and equipment and intangible assets 56.6 57.3Acquisition of financial investments (9.3) -Disposal of financial investments 2.4 45.0Acquisition and disposal of businesses 5.4 (15.7)Net cash absorbed in investing activities (23.4) (2.8) Cash inflow/(outflow) from financing activitiesIssue of ordinary shares - 135.7Dividends paid to minority interests (7.1) (9.0)Decrease in debt and lease financing (119.5) (250.2)Net cash absorbed in financing activities (126.6) (123.5) Net (decrease)/increase in cash and cash equivalents (49.3) 2.8Net cash and cash equivalents at beginning of the year 113.5 88.0Foreign exchange (losses)/gains on cash and cash equivalents (7.1) 22.7Net cash and cash equivalents at end of the year 6 57.1 113.5 Reconciliation of net cash flow to movement in net debt(Decrease)/increase in cash and cash equivalents (49.3) 2.8Cash outflow from change in debt and lease financing 119.5 250.2Change in net debt resulting from cash flows 70.2 253.0New finance leases (3.6) -Loans and finance leases disposed with subsidiaries - 1.7Transfer of preference shares from equity under IAS 32 (28.0) -Other (3.9) (3.4)Foreign exchange 5.8 4.0Decrease in net debt 40.5 255.3Net debt at start of year (403.8) (659.1)Net debt at end of year 6 (363.3) (403.8) Consolidated statement of recognised income and expense (unaudited) 2005 2004 Unaudited UnauditedFor the year ended 31 December 2005 Notes US$m US$m Gain on cash flow hedges 4.6 -Exchange differences on translation of foreign (6.7) 6.0operationsActuarial gains in respect of retirement benefit 47.4 5.1schemesTax on items taken directly to equity 0.3 -Net income recognised directly in equity 45.6 11.1Profit/(loss) for the year 53.8 (3.1)Transferred to profit or loss on cash flow hedges 0.8 -Other transfers to profit or loss (2.1) -Total recognised income and expense for the year 4 98.1 8.0 Attributable to:EQUITY SHAREHOLDERS OF THE COMPANY 96.7 3.5Minority interests 1.4 4.5 98.1 8.0 IAS 32 and 39 transitional adjustments (25.8) Attributable to:EQUITY SHAREHOLDERS OF THE COMPANY 0.3Minority interests (26.1) (25.8) Notes 1 Basis of preparation Coats Group Limited is incorporated in the British Virgin Islands. It does not prepare consolidated statutory accounts and therefore the financial information contained in this announcement does not constitute full financial statements and has not been, and will not be, audited. The financial information for the year ended 31 December 2005 has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards (IFRS) endorsed by the European Union, and the accounting policies adopted have been consistently applied to the restated financial information presented for the year ended 31 December 2004, except for those relating to the classification and measurement of financial instruments. The Group has made use of the exemption available under IFRS 1 to only apply IAS 32 and IAS 39 from 1 January 2005. The main impact is that the preference share capital of a subsidiary undertaking which previously was classified as part of minority interests is, under IAS 32, classified as debt (see note 4). Reconciliations and descriptions of the effect of the transition from UK GAAP to IFRS on the Group's income statement for the year ended 31 December 2004 and balance sheets as at 31 December 2004 and 1 January 2005 were included in the Coats Group Limited interim accounts for the six months ended 30 June 2005 published on 12 September 2005. Subsequent to the publication of the interim accounts, management have reviewed the Group's IFRS accounting policies in the light of emerging best practice. It is considered that best practice under IAS 19 on Employee Benefits is for administration costs to be deducted annually from the expected and actual return on pension plan assets, rather than for provision to be made for the present value of these costs expected over the life of the plan. The impact is as follows: Unaudited US$m Net assets as previously reported as at 31 December 2004 313.6 IAS 19 adjustment 46.1 Restated net assets as at 31 December 2004 359.7 Coats Group Limited follows the accounting policies of its ultimate parent company, Guinness Peat Group plc. The principal exchange rates (to the US dollar) used are as follows: 2005 2004 Average Sterling 0.55 0.55 Euro 0.81 0.80 Year end Sterling 0.58 0.52 Euro 0.85 0.73 2 Operating profit is stated after charging/(crediting): 2005 2004 Unaudited Unaudited US$m US$m Exceptional items: Reorganisation costs and impairment of property, 62.4 45.6 plant and equipment Profit on the sale of property (17.2) - Other (see below) (18.5) 3.8 Total 26.7 49.4 For the year ended 31 December 2005, the $18.5 million exceptional credit represents exchange gains. The other exceptional charges arising in 2004 largely represent Group refinancing costs. 3 Taxation 2005 2004 Unaudited Unaudited US$m US$m UK taxation based on profit for the year: Corporation tax at 30% 30.3 18.3 Double taxation relief (30.3) (18.3) Total UK taxation - - Overseas taxation: Current taxation 32.6 28.7 Deferred taxation (7.9) (11.0) 24.7 17.7 Prior year adjustments: Current taxation 11.6 (2.6) Deferred taxation 3.2 (1.4) 14.8 (4.0) 39.5 13.7 4 Reconciliation of closing equity Equity Minority Total equity interests shareholders' funds Unaudited Unaudited Unaudited Restated* Restated* US$m US$m US$m At 31 December 2004 300.9 58.8 359.7 Restatement for the effects of IAS 32 and IAS 39 0.3 (26.1) (25.8) At 1 January 2005 301.2 32.7 333.9 Total recognised income and expense for the year 96.7 1.4 98.1 Dividends paid - (7.1) (7.1) Other - (0.3) (0.3) At 31 December 2005 397.9 26.7 424.6 The restatement of minority interests for the effects of IAS 32 and IAS 39 represents the preference share capital of a subsidiary undertaking now classified as debt. *Equity shareholders' funds and total equity as at 31 December 2004 have been increased by $46.1 million (see note 1) from the figures disclosed in the interim accounts for the six months ended 30 June 2005 of $254.8 million and $313.6 million respectively. 5 Reconciliation of operating profit to net cash inflow generated by operations 2005 2004 Unaudited Unaudited US$m US$m Operating profit 99.8 41.1 Depreciation 50.4 50.7 Amortisation of intangible assets (computer 5.6 5.5 software) Reorganisation costs (see note 2) 62.4 43.2 Impairment of property, plant and equipment (see - 2.4 note 2) Other exceptional items (see note 2) (35.7) 3.8 Decrease in inventories 3.9 45.0 Decrease in debtors 34.2 7.7 Increase in creditors 17.3 38.0 Provision movements (11.7) (6.0) Other non-cash movements 5.0 1.4 Net cash inflow from normal operating activities 231.2 232.8 Net cash outflow in respect of reorganisation costs (54.3) (36.3) and other exceptional items Net cash inflow generated by operations 176.9 196.5 6 Net debt 2005 2004 Unaudited Unaudited US$m US$m Cash and cash equivalents 77.8 136.5 Bank overdrafts (20.7) (23.0) Net cash and cash equivalents 57.1 113.5 Other borrowings (420.4) (517.3) Total (363.3) (403.8) 7 Balance sheet consolidated by Guinness Peat Group plc (unaudited) The balance sheet consolidated by Guinness Peat Group plc (GPG) as at 31 December 2005 differs from that disclosed as follows: Coats Group Coats Group GPG fair value Included in Limited Limited adjustments GPG's consolidated balance sheet US$:GBP at 0.5825 Unaudited Unaudited Unaudited Unaudited US$m £m £m £m Intangible assets 257.5 150 14 164 Other non-current assets 587.9 342 342 Current assets 676.2 394 394 Non-current assets classified as held for sale 30.2 18 18 Total assets 1,551.8 904 14 918 Current liabilities (590.0) (343) (343) Non-current liabilities (537.2) (313) (313) Minority interests (26.7) (16) (16) Equity shareholders' funds 397.9 232 14 246 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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