6th Jul 2005 07:01
Greene King PLC06 July 2005 GREENE KING PLC 6 Jul 2005 FINAL RESULTS FORYEAR TO 1 MAY 2005 Part 2 of 2 Group profit and loss accountfor the fifty-two weeks ended 1 May 2005 2005 2004 Before Goodwill goodwill and and Change exceptionals exceptionals Total Total Note % £m £m £m £m TurnoverContinuing operations 554.7 - 554.7 552.7Acquisitions 177.9 - 177.9 -______________________________________ ____ _____ _________ _________ _______ _________Total 1 +33 732.6 - 732.6 552.7______________________________________ ____ _____ _________ _________ _______ _________ Trading profitContinuing operations 117.5 (7.4) 110.1 101.9Acquisitions 38.2 (13.0) 25.2 -______________________________________ ____ _____ _________ _________ _______ _________Total 1,2 155.7 (20.4) 135.3 101.9Disposal of fixed assets - 13.4 13.4 1.0______________________________________ ____ _____ _________ _________ _______ _________Profit before interest 155.7 (7.0) 148.7 102.9Interest 2 (61.7) (14.2) (75.9) (29.2)______________________________________ ____ _____ _________ _________ _______ _________Profit before taxation 94.0 (21.2) 72.8 73.7Taxation 3 (28.6) 9.9 (18.7) (21.7)______________________________________ ____ _____ _________ _________ _______ _________Profit after taxation 65.4 (11.3) 54.1 52.0Dividends 4 (26.2) - (26.2) (23.8)______________________________________ ____ _____ _________ _________ _______ _________Retained profit 39.2 (11.3) 27.9 28.2______________________________________ ____ _____ _________ _________ _______ _________ Trading profit before goodwill and 2 +39 155.7 111.8exceptionals Profit before taxation, goodwill and +14 94.0 82.6exceptionals______________________________________ ____ _____ _________ _________ _______ _________ Earnings per share- adjusted 5 +14 91.5 p 80.2 p- basic 5 + 4 75.7 p 72.5 p- diluted 5 + 4 74.7 p 71.7 pDividend per share 4 +10 36.3 p 33.0 p______________________________________ ____ _____ _________ _________ _______ _________ Adjusted trading profit/turnover 21.3% 20.2%Adjusted taxation/profit 30.4% 30.4%Adjusted interest cover (times) 2.5 3.8Adjusted dividend cover (times) 2.5 2.4______________________________________ ____ _____ _________ _________ _______ _________ Adjusted earnings per share, trading profit, taxation, interest cover anddividend cover exclude the effect of exceptional items and the amortisation ofgoodwill. Group balance sheetas at 1 May 2005 2005 2004 Note £m £m Fixed assetsIntangible assets 259.3 113.1Tangible assets 1,581.5 1,073.5Investments 15.2 18.1_________________________________________________________ ______ __________ __________ 1,856.0 1,204.7_________________________________________________________ ______ __________ __________ Current assetsStocks 14.2 11.6Debtors 31.0 31.0Cash at bank 34.4 7.5 Creditors: due within one yearShort term debt 6 (26.0) (6.6)Other creditors (151.5) (108.8)_________________________________________________________ ______ __________ __________Net current liabilities (97.9) (65.3)_________________________________________________________ ______ __________ __________ Total assets less current liabilities 1,758.1 1,139.4 Creditors: due after more than one yearMedium and long term debt 6 (1,028.6) (447.5) Provisions for liabilities and chargesPensions (6.0) -Deferred tax (39.8) (37.8)_________________________________________________________ ______ __________ __________Net assets 683.7 654.1_________________________________________________________ ______ __________ __________ Capital and reservesCalled-up share capital 8 18.1 18.0Share premium account 8 192.2 189.2Revaluation reserve 8 278.2 282.8Other reserve 8 1.0 1.0Own shares 8 (10.7) (8.5)Profit and loss account 8 204.9 171.6_________________________________________________________ ______ __________ __________Equity shareholders' funds 8 683.7 654.1_________________________________________________________ ______ __________ __________ Net debt 1,020.2 446.6Gearing 149% 68%Net assets per share (excluding own shares) 954 p 919 p_________________________________________________________ ______ __________ __________ Group cash flow statementfor the fifty-two weeks ended 1 May 2005 Change 2005 2004 Note % £m £m EBITDA 9 +39 189.7 136.9Working capital and non cash movements 10 30.1 (1.3)Exceptional items (5.1) -_____________________________________________________ ____ _____ __________ __________Cash inflow from operations 214.7 135.6_____________________________________________________ ____ _____ __________ __________ Cash inflow from operations 214.7 135.6 Returns on investments and servicing of financeInterest paid (77.0) (30.2)Financing issue costs (7.2) -_____________________________________________________ ____ _____ __________ __________ (84.2) (30.2) Taxation (9.5) (15.1) Capital expenditure and financial investmentPurchase of fixed assets (48.9) (75.1)Sales of fixed assets 45.6 7.9Advances and repayments of trade loans (0.4) 1.5_____________________________________________________ ____ _____ __________ __________ (3.7) (65.7) AcquisitionLaurel Neighbourhood business 7 (205.4) -Cash acquired - Laurel Neighbourhood business 7 5.8 -_____________________________________________________ ____ _____ __________ __________ (199.6) - Equity dividends paid (24.3) (22.0)_____________________________________________________ ____ _____ __________ __________Cash (outflow)/inflow before financing (106.6) 2.6_____________________________________________________ ____ _____ __________ __________ Management of liquid resourcesIncrease in short term deposits (13.5) - FinancingIssue of shares 4.7 6.2Purchase of own shares (3.8) (14.3)Advance of bank loans 726.3 7.4Repayment of bank loans (600.0) -_____________________________________________________ ____ _____ __________ __________ 127.2 (0.7)_____________________________________________________ ____ _____ __________ __________ Increase in cash 7.1 1.9_____________________________________________________ ____ _____ __________ __________ Reconciliation to movement in net debtIncrease in cash 7.1 1.9Net cash inflow from increase in debt (126.3) (7.4)Cash outflow to short term deposits 13.5 -_____________________________________________________ ____ _____ __________ __________Net cash flow (105.7) (5.5)Financing issue costs 7.2 -_____________________________________________________ ____ _____ __________ __________Increase in net debt resulting from cashflows (98.5) (5.5)Debt acquired - Laurel Neighbourhood business 7 (463.4) -Debt issued - Laurel Neighbourhood business 7 (11.4) -Non cash movement in net debt (0.3) -_____________________________________________________ ____ _____ __________ __________Increase in debt (573.6) (5.5)Opening net debt (446.6) (441.1)_____________________________________________________ ____ _____ __________ __________Closing net debt (1,020.2) (446.6)_____________________________________________________ ____ _____ __________ __________ Notes to the accountsfor the fifty-two weeks ended 1 May 2005 1 Business segment analysis Trading2005 Assets EBITDA Trading profit employed Turnover (note 9) profit change £m £m £m £m % Pub Company 942.9 495.9 118.7 93.8 +65Pub Partners 526.0 125.1 58.8 54.0 +13Brewing Company 58.7 111.6 21.1 17.8 +11Corporate 176.3 - (8.9) (9.9)__________________________________________________ ________ ________ _______ _______ _________ 1,703.9 732.6 189.7 155.7 +39__________________________________________________ ________ ________ _______ _______ _________ Amortisation of goodwill and exceptionals (note 2) - - - (20.4)Net debt (1,020.2) - - -__________________________________________________ ________ ________ _______ _______ _________ 683.7 732.6 189.7 135.3__________________________________________________ ________ ________ _______ _______ _________ Assets Trading2004 employed Turnover EBITDA profit £m £m £m £m Pub Company 535.3 331.6 73.8 56.9Pub Partners 457.7 115.0 51.8 47.8Brewing Company 55.0 106.1 19.2 16.1__________________________________________________ ________ ________ _______ _______ _________Corporate 52.7 - (7.9) (9.0) 1,100.7 552.7 136.9 111.8Amortisation of goodwill and exceptionals (note 2) - - - (9.9)Net debt (446.6) - - -__________________________________________________ ________ ________ _______ _______ _________ 654.1 552.7 136.9 101.9__________________________________________________ ________ ________ _______ _______ _________ Pub Company covers the results of managed houses, Pub Partners covers theresults of tenanted houses and Brewing Company covers brewing beer, marketingand selling. 2 Goodwill and exceptionals 2005 2004 £m £m Amortisation of goodwill 13.1 7.0 Trading exceptional itemsIntegration of Laurel Neighbourhood business 7.3 -Revaluation losses on tangible fixed assets - 2.9_______________________________________________________ ________ ________ 20.4 9.9_______________________________________________________ ________ ________Interest exceptional itemsTermination of interest rate swaps 13.5 -Termination of loan facilities 0.7 -_______________________________________________________ ________ ________ 14.2 -_______________________________________________________ ________ ________ 3 Taxation 2005 2004 _____________________________________ On profits before Exceptional Exceptional Items Items Total Total £m £m £m £m Current taxationCorporation tax before exceptional items 22.2 - 22.2 21.7Exceptional credit - - - (3.4)Recoverable on exceptional items - (6.5) (6.5) -___________________________________________ ___________ __________ ________ _________Corporation tax 22.2 (6.5) 15.7 18.3Adjustment in respect of prior years 1.6 (3.4) (1.8) (1.5)___________________________________________ ___________ __________ ________ _________ 23.8 (9.9) 13.9 16.8___________________________________________ ___________ __________ ________ _________ Deferred taxationOrigination and reversal of timing differences 4.8 - 4.8 4.9___________________________________________ ___________ __________ ________ _________ Total 28.6 (9.9) 18.7 21.7___________________________________________ ___________ __________ ________ _________ The tax effect of non-trading exceptionals was £4.7 million (2004 - nil) 4 Dividends 2005 2004 £m £m Interim 10.45p paid per share (2004 - 9.50p) 7.4 6.9Final 25.85p proposed per share (2004 - 23.50p) 18.8 16.9_________________________________________________________________ __________ ________Total 36.30p per share (2004 - 33.0p) 26.2 23.8_________________________________________________________________ __________ ________ Dividends on own shares have been waived. 5 Earnings per share Basic earnings per share has been calculated by dividing the profit aftertaxation of £54.1 million (2004 - £52.0 million) by the weighted average numberof shares in issue (excluding own shares held) of 71.5 million (2004 - 71.7million). Adjusted earnings per share excludes the effect of exceptional itemsand the amortisation of goodwill and is presented to show the underlyingperformance of the group. Earnings Earnings per share 2005 2004 2005 2004 £m £m p p Basic 54.1 52.0 75.7 72.5Goodwill and exceptionals 11.3 5.5 15.8 7.7____________________________________________ ________ _________ ________ ________Adjusted 65.4 57.5 91.5 80.2____________________________________________ ________ _________ ________ ________ Diluted earnings per share has been calculated on a similar basis taking accountof 0.9 million (2004 - 0.8 million) contingent shares under option. 6 Debt 2005 2004 £m £m Bank overdrafts 10.8 4.5Bank loans - variable 288.6 295.9Bank loan - fixed 69.7 72.3Securitised debt 593.1 -Loan from associate 49.1 50.1Debenture 30.9 31.0Loan notes 12.4 0.3_____________________________________________________ ________ ________ 1,054.6 454.1_____________________________________________________ ________ ________Classified as:Due after more than one year 1,028.6 447.5Due within one year 26.0 6.6_____________________________________________________ ________ ________ 1,054.6 454.1_____________________________________________________ ________ ________ Securitised debt On 7 March 2005, £600m of bonds were issued in connection with thesecuritisation of 904 of the group's pubs held in Greene King Retailing Limited.The bonds are secured over the properties and their future income streams andwere issued by Greene King Finance plc, a company outside of the group. Thefunds were on-lent to the group on similar terms and used to repay existing bankfacilities. The securitisation is governed by various covenants, warranties and events ofdefault, many of which apply to Greene King Retailing Limited. These includecovenants regarding the maintenance and disposal of securitised properties andrestrictions on its ability to move cash to other group companies. 7 Laurel Neighbourhood business Fair value of assets acquired £m Tangible fixed assets 521.5Net liabilities (6.4)Cash 5.8__________________________________________________________________ ________ 520.9Goodwill 159.3__________________________________________________________________ ________ 680.2__________________________________________________________________ ________ Satisfied by:Cash 199.2Loan notes 11.4Debt acquired 463.4__________________________________________________________________ ________ 674.0*Fees 6.2__________________________________________________________________ ________ 680.2__________________________________________________________________ ________ *Includes £20.0 million for working capital liabilities retained by vendor. 8 Movements in shareholders' funds Profit and Share Share Revaluation Other Own loss capital premium reserve reserve shares account Total £m £m £m £m £m £m £m At 2 May 2004 18.0 189.2 282.8 1.0 (8.5) 171.6 654.1Retained profit - - - - - 27.9 27.9Issue of share capital 0.1 3.0 - - 1.6 - 4.7Purchase of own share - - - - (3.8) - (3.8)capitalAccrued share based - - - - - 0.8 0.8paymentsTransfer - - (4.6) - - 4.6 -_____________________ ________ _________ __________ ________ ________ __________ ________At 1 May 2005 18.1 192.2 278.2 1.0 (10.7) 204.9 683.7_____________________ ________ _________ __________ ________ ________ __________ ________ 9 EBITDA 2005 2004 £m £m Trading profit 135.3 101.9Amortisation of goodwill and exceptionals 20.4 9.9__________________________________________________________________ ________ ________Trading profit before goodwill and exceptionals 155.7 111.8Depreciation 34.0 25.1__________________________________________________________________ ________ ________ 189.7 136.9__________________________________________________________________ ________ ________ EBITDA represents earnings before interest, tax, depreciation, amortisation ofgoodwill and exceptionals. 10 Working capital and non cash movements 2005 2004 £m £m Increase in provision against investments 0.3 0.3Decrease/(increase) in stocks 0.2 (0.6)Decrease/(increase) in debtors 3.8 (0.8)Increase/(decrease) in creditors 25.0 (0.5)Accrued share based payments 0.8 0.3__________________________________________________________________ ________ ________ 30.1 (1.3)__________________________________________________________________ ________ ________ 11 Dividend payments Subject to the approval of shareholders at the annual general meeting, the netfinal dividend will be paid on 12 September 2005 to shareholders on the registerat the close of business on 5 August 2005. 12 Basis of preparation The financial information for the fifty-two weeks ended 1 May 2005 has beenaudited and has been prepared in accordance with applicable accountingstandards. The accounting policies have been consistently applied, and aredescribed in the full financial statements for Greene King plc for 2005. The financial information for the year ended 2 May 2004 has been abridged fromthe 2004 statutory accounts of Greene King plc which have been filed with theRegistrar of Companies and on which the auditor's opinion was unqualified. 13 Reports and accounts The 2005 Report & Accounts will be posted to shareholders on 2 August 2005 andcopies will be available from that date from the Company Secretary at theregistered office of the company, Westgate Brewery, Bury St. Edmunds, SuffolkIP33 1QT. - ends - This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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