12th Mar 2008 07:01
Laird Group PLC12 March 2008 THE LAIRD GROUP PLC AUDITED RESULTS FOR THE YEAR TO 31 DECEMBER 2007 "AN OUTSTANDING YEAR" 2007 2006 £m £mRevenue- Continuing operations 564.3 370.6 + 52%- Discontinued operations 72.9# 237.7 ------------------ 637.2 608.3 + 5% Underlying profit before tax from continuingoperations (i) 72.4 45.5 + 59%Total underlying profit before tax (i) 76.8 73.3 + 5%Profit before tax from continuing operations 51.5 39.6 + 30%Profit for the year 127.7 50.7Net borrowings 85.4 109.1Shareholders' funds 448.5 409.2 p/share* p/share* Underlying earnings from continuing operations(i) 33.1 20.7 + 60%Total underlying earnings (i) 34.9 31.7 + 10%Basic earnings from continuing operations 21.4 16.3 + 31%Dividend (ii) 11.5 10.3 + 12% Explanatory notes: i) Laird uses underlying results as key performance indicators. Underlying profit before tax and underlying earnings per share are stated before exceptional items, the amortisation of acquired intangible assets, deferred tax on acquired intangible assets and goodwill, the gain or loss on disposal of businesses and the impact arising from the fair valuing of financial instruments. The narrative that follows is based on underlying operating profit, profit before tax and earnings per share, as the Directors believe that these provide a more consistent measure of operating performance. ii) Excludes a special dividend of 50p per share paid in June 2007. # 2007: four months only * The weighted average number of shares used to calculate earnings and dividends per share was 185.9 million in 2007 and 189.2 million in 2006, following the 8 for 9 share consolidation on 11 June 2007. Highlights • Strong growth in revenues and profits driven by continuing market growth, increased customer demand, market share gains, new product development, the benefits from acquisitions and a further expansion of our low cost manufacturing base. • Revenue from continuing operations up by over 50%, with underlying operating profit up 45%. Underlying profit before tax for the year was a record £76.8 million, and underlying earnings from continuing operations were up 60%. • New production facility opened in Chennai, our first in India. New corporate research laboratory opened in Bangalore, India to maintain cutting edge R&D. • Further investment in manufacturing capacity expansions and operational capability. • Divestment of Security Systems Division: - Creates focused electronics and technology company - Crystallised value for shareholders through £100 million capital return Peter Hill, Chief Executive, said: "2007 was an outstanding year for Laird. With the disposal of the SecuritySystems Division we completed the strategic realignment from a diversifiedindustrial group to a focused electronics and technology company. This disposalallowed us to reallocate capital into the fast growing Laird Technologiesbusiness and return £100 million direct to shareholders by way of a specialdividend. "We saw strong growth as we continue to benefit from the underlying marketdemand for our customers' products. Higher speed, power and performance ofelectronic devices, as well as the increasing trend to wireless connectivity,drive an increasing need for our products. We have over recent years broadenedour technology capabilities, allowing us to offer a unique combination ofproducts and solutions and to increase our revenue per device. "2007 ended strongly and 2008 has begun well, and we are confident of makingfurther good progress during the year. The strength of our business, togetherwith the capabilities of our people, give us the ability to deliver valuethrough innovation." For enquiries: The Laird Group PLC Maitland Peter Hill, Chief Executive Brian Hudspith Jonathan Silver, Finance Director Charlotte Walsh Tel: 020 7468 4040 Tel: 020 7379 5151 OVERVIEW Laird is a leader in the design and supply of customised, performance criticalproducts and systems for wireless and other advanced electronic applications. Wedesign, develop and supply the technology that allows people, organisations andelectronic devices to connect effectively and efficiently, locally and globally:we provide the technology for a connected world. RESULTS Laird produced another set of excellent results in 2007. Revenue from ourcontinuing business, Laird Technologies, was £564.3 million, up 52% (2006,£370.6 million), driven by continuing market growth, increased customer demandfor our products, market share gains, new product applications and the benefitsfrom acquisitions. Organic revenue growth was 34%. Underlying profit before tax from continuing operations was £72.4 million in2007, up 59% (2006, £45.5 million), helped by economies of scale and a furtherexpansion of our low cost manufacturing base. Profit growth at constant exchangerates was 69%. Return on capital employed for the continuing business was 16.0% (2006, 14.8%),well in excess of our cost of capital. Statutory profit before tax from continuing operations in 2007, afterexceptional items, the amortisation of acquired intangibles, the gain or loss onthe disposal of businesses and the fair valuing of financial instruments, was30% higher at £51.5 million (2006, £39.6 million). As expected, there wereexceptional costs of £10.4 million in the year (2006, nil) arising from theintegration of our acquisitions and a restructuring of our North Americanmanufacturing operations. Total underlying profit before tax in 2007, including four months' contributionfrom Security Systems prior to its divestment, was £76.8 million (2006,£73.3 million), with the overall growth of 5% still being achieved despite thedivestment (Security Systems' underlying profit was £23.4 million less in 2007compared with 2006) and the adverse effects of currency movements. The effect ofcurrency movements has been to reduce total underlying operating profit in theyear by £5.1 million; at constant exchange rates total underlying profit wouldhave been 12% higher than in 2006. Underlying earnings per share from continuing operations increased by 60% to33.1 pence (2006, 20.7 pence). Total underlying earnings per share in 2007 were34.9 pence (2006, 31.7 pence). DIVIDEND The Board's dividend policy is to increase returns to shareholders progressivelyover time, reflecting both the underlying profitability of the Company and thecash requirements of the business. In line with this policy, the Board isrecommending a final dividend of 7.88 pence per share. This represents a totaldividend for the year of 11.5 pence per share, an increase of 12% comparedwith the 10.3 pence per share for 2006 and is in addition to the specialdividend of 50 pence per share paid in June 2007. DELIVERY OF FOCUS Over recent years Laird has been transformed from a diversified industrial groupinto a focused electronics and technology company, with the divestment of LairdSecurity Systems in April 2007 for a total consideration of £242.5 millioncompleting this phase of our transformation. Underlying operating profit from Security Systems, prior to its divestment, was£4.4 million (full year 2006, £27.8 million). Shareholder value will continue tobe increased by the redeployment of capital from Security Systems into oursuccessful and fast expanding Laird Technologies business. Shareholdersparticipated directly in the crystallisation of value realised by the disposal,through a return of capital of approximately £100 million in 2007. LAIRD TECHNOLOGIES Laird Technologies is the global leader in the design and supply of componentsthat reduce or prevent interference both within and between electronic devices,and antennae for mobile handsets. We also provide a variety of othercommunication antennae, a wide range of thermal management products, andcomplete wireless modules and systems. We supply components and systems to high growth global electronics markets,including cellular handsets, telecommunications, asset tracking, satellite radioand information technology sectors, and also supply the automotive, aerospaceand defence, consumer electronics, medical and industrial markets. Antennae & Wireless SystemsYear ended 31 December 2007 2006 £m £m Growth Revenue 257.5 173.1 49% Underlying operating profit 30.0 19.5 54% Return on sales 11.7% 11.3% We design develop and supply components and systems that provide and enhanceconnectivity, helping the world to communicate better and faster by voice orwith data. This Division comprises our cellular antennae products, where we are the globalmarket leader, our telematics and infrastructure antennae products, where we arethe market leader in North America, and our nascent wireless systems activities.The Division has integrated the capabilities of Centurion Wireless Technologiesacquired in 2004, RecepTec and Antenex (2006), AeroComm and Cushcraft (2007) andEzurio (2008). Excellence in execution, coupled with the benefits of our leading market andtechnology positions were reflected in the Division's strong results in 2007,with revenues growing by almost 50% to £257.5 million and underlying operatingprofit by 54% to £30.0 million. Organic revenue growth for the Division in the year was 33%, drivenpredominantly by exceptionally strong growth in our shipments of cellularantennae modules and sub-assemblies. These have higher average selling prices asa result of both the technical complexity of the antennae and their combinationwith cameras, acoustic boxes and stereophonic loudspeakers, and other bought incomponents. Growth of modules and sub-assemblies is expected to be less in 2008,with organic growth overall expected to return to historical levels. The Division's average percentage margin increased slightly in the year, withthe positive "mix" effect of acquisitions and economies of scale more thanoffsetting the effect of a greater proportion of bought in components in themodules. We add value by offering integrated design, manufacturing and RFtesting of the complete module, which has a lower percentage return on sales dueto the higher proportion of bought in components. In 2007 we also benefited in handset antennae from our positions on both highvolume handsets and the lower volume, but higher functionality models where ourcontent is often greater. We maintained our strong position with Nokia, theworld's leading handset company, grew our antennae market share with Motorola,Sony Ericsson and LG, and started selling to the major Taiwanese Original DesignManufacturers ("ODMs"). We shipped approximately 260 million handset antennaeunits, including complementary antennae, up 25% compared with 2006. In telematics, we saw good growth in our shipments to our major automotivecustomers, particularly in North America. We continued to increase thepenetration of our antennae in new vehicles, while reducing our presence asplanned in the low margin consumer retrofit segment. We also saw growth from our communications and infrastructure antennae in NorthAmerica, where our presence was bolstered by our acquisition of Cushcraft inFebruary 2007. We are adding specialist engineers to our existing sales force inEurope and Asia, to allow us to begin selling into those markets. Our wireless systems activity, where we supply fully functioning wirelessmodules and which was initiated with the acquisition of AeroComm in January2007, has been enhanced further with the acquisition of Ezurio in February 2008.Together, these acquisitions give us an initial foothold in fast growingwireless M2M (Machine to Machine) sectors such as asset management, healthcare,telematics, security and electronic point of sale. We see excellent potential inthis area and expect to develop our presence further. Overall, our ambition is to become the leader in the industrial, consumer andautomotive segments of antennae and wireless communications technology,geographically diversified and with a wide spread of customers and end usermarkets, allowing people, organisations and electronic devices to communicatebetter and more effectively. Electronic Components & SystemsYear ended 31 December 2007 2006 £m £m Growth Revenue 306.8 197.5 55% Underlying operating profit 50.0 35.9 39% Return on sales 16.3% 18.2% We design, develop and supply throughout the world the high precision,performance critical components and systems that make electronic devicesfunction and connect effectively, whether for voice or visual communication orfor high quality data storage and transmission. This Division designs, manufactures and markets our Electromagnetic Interference("EMI") shielding products, in which we are the global market leader, togetherwith our signal integrity and thermal management products; these provide vitalprotection for a wide range of electronic devices allowing them to function andconnect effectively. In early 2007 we entered the actuation device business withthe acquisition of M2sys in Korea, growing it rapidly during the year to becomethe market leader in the design and supply of these devices, which improve thephysical functionality and versatility of mobile phone handsets. The benefits of our leading market and technology positions were also evident inthis Division's results in 2007, with revenues growing by 55% to £306.8 millionand underlying operating profit by nearly 40% to £50.0 million. Organic revenue growth for this Division was 35%, driven predominantly byexceptionally high year-on-year growth, albeit from a small base, in sales ofactuation devices. We do not expect the same level of growth in this area in2008, with organic growth overall expected to return to historical levels. Although the Division's percentage return on sales declined in 2007 this was dueto two specific factors. One was the "mix" effect of acquisitions, which hadlower margins than the Division's average (although we would expect thesemargins to increase over time under our ownership). The other was the greaterthan normal growth in sales of our high specification actuation devices whichhave a higher materials content (and, therefore, lower average percentagemargins) than the rest of the Division's products. We also saw continuing strong growth in sales of our EMI and thermal interfaceproducts into the notebook PC market, particularly for Dell, HP and Apple. Wecontinued to see buoyant sales into the server, networking equipment andtelecommunications base station markets, particularly to Cisco, Huawei, Alcatel,ZTE, Motorola and Ericsson and HP, for our EMI shielding, thermal interface andsignal integrity products. Our EMI board level shielding sales into the cellular handset market againdelivered double digit organic growth. A reduction in demand from one of ourcustomers as a result of its own sales decline was offset by an increase in thepenetration of our board level shielding at Sony Ericsson and the achievement ofour first sales of these products to Samsung. Our EMI shielding sales into the flat screen TV market, predominantly toPanasonic, Samsung, Hitachi and Philips, again increased, while new products arebeing used in the Microsoft Xbox and the Sony PlayStation PS3 games consoles.EMI shielding sales into the medical and instrumentation markets, andthermoelectric cooler sales into the industrial, automotive, aerospace andmedical markets have also remained buoyant. Our largely customised, high precision products and systems are critical inmaintaining and enhancing the integrity and performance of our customers'electronic devices. We expect that the increasing challenges for our customersof conducted and radiated EMI and of heat generation as the power, speed andperformance of devices increases, will continue to drive demand for thisDivision's products, while design trends in cellular handsets should continue todrive increasing demand for our actuation products. We aim to be the marketleader in all of these areas, and increasingly to exploit technology and productconvergence between our two Divisions. Investment in Research and Development Our investment in research and development in 2007 was £25.0 million, up 26% andapproximately 4.5% of revenues. Over half our spend is on new developmentprogrammes, including redesigns for product extensions, targeted at near termcustomer development platforms and applications. Nearly one quarter of the spendis in product innovation for future platforms which result in completely newproduct families; the remaining spend is on advanced technical research,offering the greatest future potential. At the end of 2007 we employed660 qualified engineers and technologists, one quarter of whom had masters'degrees or doctorates. The ownership of patents, trade secrets and trademarks are all forms ofintellectual property protection that we utilise, helping us to maintain ourtechnology leadership positions. In 2007, 121 new patents were granted, morethan double the number granted in 2006, the growth being illustrative of ourincreased focus on protecting the intellectual property we create. By the end of2007 we owned 610 issued patents with a further 506 pending. We are establishing a network of engineering centres to support the productdesign needs of our customers. These centres are strategically located aroundthe world close to our customer base and will serve the product design needs ofthe regions in which they are located. These new design centres will have thecapability to design all Laird Technologies products under one roof, achievingdesign synergy across our product lines and enabling us to integrate the fullrange of our product offering to our customers. In December 2007 we opened our new Corporate Research Laboratory in Bangalore,India providing an advanced technology research capability as well as "horizonscanning" for potential new technology opportunities. Laird Technologies is delivering shareholder value through innovation andtechnology leadership in the products we offer. We own an industry-leadingpatent portfolio, and have a global, multidisciplined engineering skill baseoperating from strategically located product design centres that areincreasingly valuable to our customers. We have a unique ability to exploitproduct convergence. All of these factors provide us with a technology basedcompetitive advantage. Operational Excellence We focused heavily on operational excellence in 2007. We believe this is a keydifferentiator, from supplying our customers "just in time" to being the lowestcost supplier. We invested in additional manufacturing capacity and in furtherdeveloping our operational capabilities, as well as in supply chain managementand continuous improvement. In the first half of 2007 we completed moves into new, larger manufacturingfacilities in Shanghai in China and Penang in Malaysia, and in the second halfwe relocated to our expanded 15,000 square metre facility in Reynosa, Mexico.These followed our major new plant expansions and relocations in Beijing,Tianjin and Shenzhen in China in 2006. We increased our capacity utilisation atall of these plants during the year. 2008 will see our new 16,000 square metre facility in the Nokia Business Park inChennai, India, fully on stream, and we are beginning the planning for our "nextwave" of new manufacturing capacity, likely to be in Western China and Vietnam. In 2007, 81% of Laird Technologies' revenues by origin were from Asia, EasternEurope and Mexico (2006, 68%). At the end of the year Laird Technologies hadapproximately 14,500 employees in 15 countries of which 12,000 are in Mexico,Eastern Europe and Asia, the majority of these in China. Our investment in new production capacity and equipment and in improving ourcapabilities continues, underpinning our future growth. Capital expenditure was£25.6 million, 4.5% of sales and 52% higher than in 2006. We have carried out a further restructuring of our North American EMI shieldingoperations, with the progressive closure of our facility at Delaware Water Gap,Pennsylvania, and a significant reduction in manufacturing at St. Louis,Missouri, with the transfer of operations to Mexico and China. These actionsfollow the closure of our thermal products manufacturing facility in Trenton,New Jersey, and the cessation of antennae manufacturing and assembly in Lincoln,Nebraska. We have also successfully relocated the manufacturing and formulationof the ferrite compounds for our signal integrity products, as well as thecomponent manufacturing, from the USA to China. These measures will provide costbenefits in 2008 and 2009. 2007 saw the majority of the Group's major manufacturing facilities implementISO 14001 and OHSAS 18001 integrated Health, Safety and Environmental managementsystems, with the remainder targeted for 2008. We saw good improvements in 2007 in our manufacturing processes and productquality, as well as cost reductions through our Six Sigma Continuous ImprovementProgramme. We now have well established systems and supporting infrastructure,and will continue to expand and broaden these initiatives across all of LairdTechnologies. These initiatives are allowing us to meet the increasing demandsof our customers, while remaining cost competitive and maintaining our margins. OUTLOOK Laird had an outstanding year in 2007. The divestment of the Security SystemsDivision in April 2007 completed the transformation of Laird into a focusedelectronics and technology company and allowed the return of approximately£100 million to shareholders in June 2007. Our continuing technology basedbusiness delivered excellent growth in both revenue and operating profits, whiletotal underlying profit before tax for Laird was again a record. 2007 endedstrongly and 2008 has begun well, and we are confident of making further goodprogress during the year. The strength of our business, together with thecapabilities of our people give us the ability to deliver value throughinnovation. FINANCE DIRECTOR'S REPORT Revenue Revenue from continuing operations increased by 52% to £564.3 million in 2007(2006, £370.6 million). There was £72.9 million of revenue from discontinuedoperations in 2007 (2006, £237.7 million). Organic growth from continuing operations is measured by restating 2007 revenueat 2006 exchange rates and comparing it to the reported revenue for 2006 butafter adjusting 2006 to restate it on a pro-forma basis. The pro-formaadjustment is the addition of revenue in respect of acquisitions as if we hadowned the acquisitions in 2006 for the same proportion of the year that theywere owned in 2007. On this basis, organic growth was 34%, 33% for Antenna and Wireless Systems(AWS) and 35% for Electronic Components and Systems (ECS). This is summarised inthe table below: Antenna Electronic & Wireless Components Systems & Systems Total £m £m £m 2006 revenue 173.1 197.5 370.6Adjustment for acquisitions in 2006 29.4 38.8 68.2 -----------------------------2006 pro-forma revenue 202.5 236.3 438.8 -----------------------------2007 revenue 257.5 306.8 564.3Adjustment to restate at constant exchange rates 10.8 12.9 23.7 -----------------------------2007 revenue at 2006 exchange rates 268.3 319.7 588.0 -----------------------------Organic growth 33% 35% 34% ----------------------------- The top five customers accounted for 58% of revenue in 2007 (2006, 53%) and thetop ten customers accounted for 65% (2006, 60%). Net Margins Net margins for the continuing business were 14.2% in 2007, lower than in 2006(14.9%). Margins in 2007 were higher in AWS compared with 2006 but lower in ECS,with particularly strong growth in products with higher bought-in materialcontent. Adjustment for Actual acquisitions Pro-forma Actual£ millions 2006 2006 2006 2007 AWSRevenue 173.1 29.4 202.5 257.5PBIT 19.5 6.2 25.7 30.0ROS% 11.3% 21.1% 12.7% 11.7% ECSRevenue 197.5 38.8 236.3 306.8PBIT 35.9 3.6 39.5 50.0ROS% 18.2% 9.3% 16.7% 16.3% Profit Profit before tax from continuing operations was £51.5 million (2006, £39.6million). The profit after tax for the year from discontinued operations of £88.0 million(2006, £19.9 million) includes a gain of £89.3 million on the sale of LairdSecurity Systems less a charge of £4.0 million for disposals made in prioryears. The total surplus on the Security Systems disposal was £108.8 million, of which£89.3 million is disclosed within the discontinued results and the balance of£19.5 million, being the reversal of exchange translation movements since 1January 2004 on the Division, is disclosed in the Statement of Recognised Incomeand Expense. Operating profit from discontinued activities up to disposal was£4.4 million on which there is a tax charge of £1.1 million. Underlying profit Total underlying profit before tax in the year was £76.8 million (2006, £73.3million). Underlying profit is defined as profit before tax, exceptional items,amortisation of acquired intangible assets, the gain or loss on sale ofbusinesses and the impact arising from the fair valuing of financialinstruments, as set out in note 7. Underlying profit from continuing operationsbefore tax was £72.4 million (2006, £45.5 million). Exceptional Costs There were £12.5 million of exceptional costs in 2007 (2006, £nil). LairdTechnologies incurred restructuring costs of £10.4 million in the USA andEurope. Early repayment of a US$ Private Placement note resulted in anexceptional finance charge of £1.5 million. This arose due to the divestment ofa company which issued the notes as part of the divestment of Laird SecuritySystems. The remaining £0.6 million was a charge in relation to restructuringLaird Security Systems itself. The cash spend on exceptional items was £4.6million. Finance costs Finance costs, excluding the exceptional finance charge of £1.5 milliondescribed above and a gain on the fair valuing of financial instruments of £1.2million (2006, gain of £0.2 million) were £7.6 million compared to the £9.9million in 2006. Interest cover was 11.1 times, well above the minimum of 2.5required by the covenant in the Group's principal loan agreements. Taxation The underlying tax charge on total underlying profit before tax is equivalent toan average tax rate of 15.5% compared with 18.1% in 2006. Profits in the USA aresubject to a relatively low charge and should remain so for many years in partdue to tax deductions for amortised goodwill resulting from acquisitions. Asignificant proportion of profits are also from jurisdictions with low tax ratesor with tax incentives. An analysis of the total tax charge is given in note 4.Going forward, the average tax rate is likely to rise given the increases in taxrates in China and this could mean an underlying rate of around 18% in 2008, and20-22% in the medium term. Underlying Earnings Underlying profit before tax was 5% up on 2006 and total underlying earnings pershare of 34.9p were up by 10% (note 7). There were less shares in issue onaverage in 2007 following the share consolidation in June 2007. Underlyingearnings are based on underlying profit less underlying tax and exclude deferredtax on acquired intangible assets and goodwill. Cash Flow Analysis of cash flow £m £m Discontinued Continuing Operating profit 4.4 80.0Depreciation / asset disposal gain 1.7 10.4 -------------------------- 6.1 90.4Increase in working capital* (10.8) (25.6)Capital expenditure less disposals (1.9) (25.6) --------------------------Operating cash flow (6.6) 39.2 --------------------------Total operating cash flow 32.6Finance costs (8.2)Taxation (7.7) -------------Trading cash flow surplus 16.7Dividends (120.0)Acquisitions (81.4)Disposals 219.9Exceptional costs (4.6)Additional pension contributions (13.6)Share issues 3.2Exchange translation movement 3.5 -------------Reduction in net borrowings 23.7 ------------- * after adjusting for creditor increases on exceptional items of £3.9 million. There was a trading cash outflow in the discontinued activities prior to theirdisposal as a result of a working capital outflow. In the continuing business there was a working capital increase of £25.6million. The principal driver of the increase was organic growth. In addition,December 2007 itself being a high revenue month compared to previous years andcompared to our expectations and some cash receipts that would normally bereceived prior to the month end were received following the month end. Capital expenditure of £25.6 million in the continuing business was over twicethe level of depreciation largely due to the continuing expansion in capacity tomeet demand, with much of the expenditure occurring in Asia, and with new plantsin Mexico and India. Net borrowings and debt facilities Overall, there was a £23.7 million reduction in net borrowings to £85.4 million.The trading cash flow surplus was dwarfed by the £120.0 million paid out individends which included a special dividend of approximately £100 millionfollowing the sale of Laird Security Systems. Other major cash flow itemsincluded the expenditure on acquisitions of £81.4 million and the proceeds fromdisposals of £219.9 million. Taking into account the acquisitions, net borrowings were 0.8 times earningsbefore exceptional items, interest, tax, depreciation and amortisation, 23% ofthe maximum permitted of 3.5 times in the principal loan covenants. A keyconsideration for financial planning is to maintain sufficient headroom betweenborrowings and the ceiling set by the covenants. In circumstances where thisratio is expected to rise above 2.5, other than in the short term, the Groupwill either seek to agree with its lenders that the ratio can exceed the loancovenant maximum of 3.5 temporarily or reduce borrowings by raising alternativeforms of finance. Due regard is given to maintaining committed loan finance which exceeds one yearand ensuring that committed finance is available that exceeds the Group'sexpected borrowing requirements. In August 2007, the Group extended the term ofits 5 year bilateral revolving credit facilities of £195.0 million from August2011 to August 2012. These facilities, together with the US$ private placementfacilities, the vast majority of which expire between 2008 and 2016, providecommitted facilities totalling £276.2 million. Currency The average and period end exchange rates are set out in note 2. A significantproportion of revenues are in US$ or currencies which are linked to the US$.Each US$0.01 movement approximates to an annual impact of £375,000 on profit.The year on year movement in average exchange rates reduced continuingunderlying profit by £5.5 million. The majority of the Group's assets are held overseas and these are hedged inpart by foreign currency loans. The translation impact of exchange ratemovements at the end of 2007 compared with the end of 2006 increasedshareholders' funds by £4.9 million. Pensions IFRIC 14 has been adopted in 2007 for the first time and allows pensionsurpluses to be taken onto the balance sheet dependent on the rules ofindividual schemes. There is an overall defined pension scheme surplus of £8.1million. £13.6 million of the increase in asset values was due to additionalcontributions over and above the current service cost of which £10.2 millionrelated to the divestment of Laird Security Systems. In 2006, there was anoverall deficit of £10.4 million after excluding surplus assets of £0.4 million.Following the divestment of Laird Security Systems, there are now only 15 activemembers in the defined benefit plans. There was a change in the assumptions usedto calculate liabilities; the bond rate used to discount liabilities was 5.7% in2007 compared to 5.1% in 2006, which has reduced liabilities by £8.0 million.These changes have been offset in part by an increase in the inflationassumption. Shareholders' Funds Shareholders' funds at the 2007 year end were £448.5 million (2006, £409.2million). The reconciliation is set out in note 11. Return on Capital Employed Return on capital employed (profit before interest and tax over shareholders'funds plus net borrowings) for the continuing business was 16.0% compared to14.8% in 2006. Group income statement for the year to 31 December 2007 2007 2006 £m £m Note Continuing operations 1 Revenue 564.3 370.6 --------------------- Operating profit before amortisation of acquired 80.0 55.4 intangible assets and exceptional items Amortisation of acquired intangible assets (10.2) (6.1) 3 Exceptional items (10.4) - --------------------- Operating profit 59.4 49.3 Finance revenue 2.8 2.1 Finance costs (11.2) (12.5) Financial instruments - fair value adjustment 1.2 0.2 Other net finance revenue - pension 0.8 0.53 Exceptional finance costs (1.5) - --------------------- Profit before tax from continuing operations 51.5 39.64 Taxation (11.8) (8.8) --------------------- Profit for the year from continuing operations 39.7 30.8 Discontinued operations5 Profit for the year from discontinued 88.0 19.9 operations --------------------- Profit for the year 127.7 50.7 ---------------------6 Earnings per share Basic from continuing operations 21.4p 16.3p Diluted from continuing operations 21.2p 16.2p Basic on profit for the year 68.7p 26.8p Diluted on profit for the year 68.0p 26.6p 7 Underlying profit before tax* Continuing 72.4 45.5 Total 76.8 73.3 Underlying basic earnings per share* Continuing 33.1p 20.7p Total 34.9p 31.7p 8 Dividends declared / proposed Dividends 120.1 20.5 Dividend per share 61.5p 10.30p * before amortisation of acquired intangible assets, exceptional items, deferred tax on acquired intangible assets and goodwill, the gain or loss on disposal of businesses, and the impact arising from the fair valuing of financial instruments Statement of recognised income and expensefor the year to 31 December 2007 Note 2007 2006 (restated) £m £m Profit for the year 127.7 50.7 Actuarial gains on retirement benefit obligations 3.0 4.7 Deferred tax on actuarial gains / losses (1.7) - Exchange differences on retranslation of overseas 3.2 (48.4) net investments5 Exchange losses transferred to discontinued in 19.5 - income statement Exchange differences on net investment hedges 1.7 17.8 Financial instruments - losses on cash flow hedges - (0.3) taken to equity Tax on exchange differences 0.7 (1.1) --------------------- Total income and expense recognised directly in 26.4 (27.3) equity --------------------- Total income and expense recognised for the year 154.1 23.4 --------------------- Effect of adoption of IFRIC 14 0.5 ----------- Group balance sheetAs at 31 December 2007 2007 2006 (restated)Note £m £m Assets Non-current assets Property, plant and equipment 76.1 86.6 Intangible assets 451.0 429.7 Deferred tax assets 1.4 0.19 Retirement benefit assets 12.3 0.5 Other non-current assets 0.7 3.5 --------------------------- 541.5 520.4 --------------------------- Current assets Inventories 55.4 69.6 Trade and other receivables 159.9 123.5 Income tax receivable 2.0 0.710 Cash 32.8 44.0 --------------------------- 250.1 237.8 --------------------------- Liabilities Current liabilities10 Borrowings (9.4) (4.9) Derivative financial instruments - (0.3) Trade and other payables (132.8) (106.8) Current tax liabilities (9.1) (3.9) Provisions (7.1) (0.9) --------------------------- (158.4) (116.8) --------------------------- Net current assets 91.7 121.0 --------------------------- Non-current liabilities10 Borrowings (108.8) (148.2) Derivative financial instruments - (1.2) Income tax payable (22.0) (22.7) Deferred tax liabilities (43.9) (33.7)9 Retirement benefit obligations (4.2) (10.9) Other non-current liabilities (2.1) (5.9) Provisions (3.7) (9.6) --------------------------- (184.7) (232.2) --------------------------- Net assets 448.5 409.2 --------------------------- Capital and reserves11 Equity share capital 49.8 49.511 Share premium 268.9 266.011 Retained earnings 128.4 155.411 Translation reserve 3.3 (59.0)11 Treasury shares (1.9) (2.7) --------------------------- Total shareholders' equity 448.5 409.2 --------------------------- Group cash flow statementfor the year to 31 December 2007 2007 2006Note £m £m 12 Cash flows from operating activities Cash generated from operations 42.4 80.8 Tax paid (7.7) (3.4) ------------------ Net cash flows from operating activities 34.7 77.4 ------------------ Cash flow from investing activities Interest received 2.9 2.112 Acquisition of businesses (net of cash acquired) (81.4) (102.0) Purchase of property, plant and equipment (27.9) (22.9)12 Inflow / (outflow) from sale of businesses 219.9 (8.5) Proceeds from sales of property, plant and equipment 0.5 3.4 ------------------ Net cash flows from investing activities 114.0 (127.9) ------------------ Cash flows from financing activities Interest paid (12.5) (11.8) Net proceeds from issue of ordinary share capital 3.2 118.5 Movement in treasury shares - (0.7) Decrease in borrowings (32.3) (11.4) Dividends paid to shareholders (120.0) (19.4) ------------------ Net cash flows from financing activities (161.6) 75.2 ------------------ Effects of movements in foreign exchange rates 1.3 (2.4) ------------------ (Decrease) / increase in cash and cash equivalents for (11.6) 22.3 the year Cash and cash equivalents at 1 January 44.0 21.7 ------------------ Cash and cash equivalents at 31 December 32.4 44.0 ------------------ Notes to the financial statementsfor the year ended 31 December 2007 1 Segmental analysis Following the disposal of Laird Security Systems during the year and theimplementation of a new organisation structure, the Group has changed itsprimary reporting format to the two segments Antenna and Wireless Systems, andElectronic Components and Systems. The segments Antenna and Wireless Systems andElectronic Components and Systems were aggregated as Laird Technologies in the2006 Report and Accounts. Comparative information for 2006 has been restated toreflect these segments. Primary reporting format - business segments Antenna & Electronic Laird Wireless Components Security Systems & Systems Systems Total 2007 2006 2007 2006 2007 2006 2007 2006 £m £m £m £m £m £m £m £mContinuing operations Total revenue 257.5 173.1 311.2 199.0 - - 568.7 372.1 Elimination of sales to other segments - - (4.4) (1.5) - - (4.4) (1.5) Revenue from customers 257.5 173.1 306.8 197.5 - - 564.3 370.6 --------------------------------------------------------------Segment profit before: 30.0 19.5 50.0 35.9 - - 80.0 55.4Amortisation of acquiredintangible assets (6.7) (4.6) (3.5) (1.5) - - (10.2) (6.1)Exceptional items (1.7) - (8.7) - - - (10.4) - --------------------------------------------------------------Operating profit 21.6 14.9 37.8 34.4 - - 59.4 49.3 --------------------------------------------------------------Finance revenue 2.8 2.1Finance costs (11.2) (12.5)Fair value adjustment on interest rate swap 1.2 0.2Other finance revenue - pension 0.8 0.5Exceptional finance costs (1.5) - ----------------Profit before tax 51.5 39.6Taxation (11.8) (8.8) ----------------Profit for the year from continuing operations 39.7 30.8 ----------------Discontinued operationsRevenue - - - - 72.9 237.7 72.9 237.7 --------------------------------------------------------------Segment profit before: - - - - 4.4 27.8 4.4 27.8Amortisation of acquired intangible assets - - - - (0.3) (1.0) (0.3) (1.0)Exceptional items - - - - (0.6) - (0.6) -Operating profit - - - - 3.5 26.8 3.5 26.8Taxation - - - - (1.1) (7.4) (1.1) (7.4) --------------------------------------------------------------Profit after tax from discontinued operations - - - - 2.4 19.4 2.4 19.4 --------------------------------------------------------------Profit before tax on current year disposal - - - - 89.3 - 89.3 - --------------------------------------------------------------Loss before tax on prior year disposal* (4.0) (2.1)Taxation * 0.3 2.6 ----------------Profit from discontinued operations 88.0 19.9 ----------------Profit for the year 127.7 50.7 ----------------* These relate to other business segments disposed of in years prior to 2007. Antenna & Electronic Laird Wireless Components Security Systems & Systems Systems Total 2007 2006 2007 2006 2007 2006 2007 2006 (restated) £m £m £m £m £m £m £m £m Segment assets 374.0 256.4 385.9 332.5 - 164.5 759.9 753.4Unallocated assets - - - - - - 31.7 4.3 ----------------------------------------------------------------Total assets 374.0 256.4 385.9 332.5 - 164.5 791.6 757.7 ---------------------------------------------------------------- Segment liabilities 69.8 36.9 56.0 42.4 - 33.9 125.8 113.2Unallocated liabilities- borrowings - - - - - - 118.2 153.1- other - - - - - - 99.2 82.7 ----------------------------------------------------------------Total liabilities 69.8 36.9 56.0 42.4 - 33.9 343.2 349.0 ----------------------------------------------------------------Other segment itemsCapital expenditure 14.9 9.6 15.3 11.1 2.0 6.3 32.2 27.0Acquisition of businesses 72.6 40.0 18.2 62.3 - 13.4 90.8 115.7 ----------------------------------------------------------------Total additions 87.5 49.6 33.5 73.4 2.0 19.7 123.0 142.7 ----------------------------------------------------------------Depreciation 3.7 2.2 9.4 5.8 1.7 5.3 14.8 13.3 ----------------------------------------------------------------Amortisation of intangible assets 8.2 5.3 3.9 1.7 0.3 1.0 12.4 8.0 ---------------------------------------------------------------- The segment revenue analysis in the table below is based on the location of thecustomer. Segment assets and additions during the year are based on location ofproduction. Segment revenue Segment assets Asset additions 2007 2006 2007 2006 2007 2006 (restated) £m £m £m £m £m £mContinuing operationsUnited Kingdom 7.8 6.7 6.1 5.3 0.7 -North America 126.9 104.7 429.2 350.5 79.4 83.7Continental Europe 94.2 71.4 119.3 89.4 3.7 23.1Asia 324.9 179.0 205.3 143.7 37.2 16.5Rest of World 10.5 8.8 - - - - ----------------------------------------------------- 564.3 370.6 759.9 588.9 121.0 123.3Discontinued operationsUnited Kingdom 42.1 124.7 - 92.4 1.0 6.4North America 28.8 107.7 - 66.2 1.0 13.0Continental Europe 0.1 4.4 - - - -Asia 1.4 0.5 - 5.9 - -Rest of World 0.5 0.4 - - - - ----------------------------------------------------- 72.9 237.7 - 164.5 2.0 19.4 Total continuing anddiscontinued 637.2 608.3 759.9 753.4 123.0 142.7Unallocated - - 31.7 4.3 - - ----------------------------------------------------- 637.2 608.3 791.6 757.7 123.0 142.7 ----------------------------------------------------- 2 Exchange rates The results and cash flows of overseas subsidiaries are translated into sterlingusing weighted average rates of exchange for the year. The principal rates usedwere as follows: Average Closing 2007 2006 2007 2006Euros 1.46 1.47 1.36 1.48US dollars 2.00 1.85 1.99 1.96Renminbi 15.22 14.70 14.54 15.28 3 Exceptional items 2007 2006 £m £mContinuing operations:Antenna and Wireless SystemsAsset write downs (0.2) -Other restructuring (0.9) -Acquisition related payments (0.6) - Electronic Components and SystemsAsset write downs (2.9) -Other restructuring (5.8) - ----------------- (10.4) - Finance costs incurred on the early repayment of PrivatePlacement notes (1.5) - Discontinued operations:Laird Security SystemsRestructuring costs (0.6) - ----------------- (12.5) - ----------------- Note (a) Finance costs of £1.5m (2006, £nil) were incurred on the early repayment of US$ Private Placement notes. This arose due to the divestment of a company which issued the notes.(b) The total cash outlay for exceptional costs in 2007 was £4.6m (2006, £0.5m).(c) The tax effect on exceptional items is a £1.6m tax credit (2006, £nil). 4 Taxation 2007 2006 £m £mThe tax charge in the income statement is disclosed as follows:Tax charge on continuing operations 11.8 8.8Tax charge on discontinued operations 0.8 4.8 ---------------- 12.6 13.6 ---------------- Reconciliation of the total tax charge / (credit) for the yearThe tax charge / (credit) in the income statement for the year is lower than thestandard rate of corporation tax in the UK of 30% (2006, 30%). The differencesare reconciled below: 2007 2006 £m £m Profit before tax from continuing operations 51.5 39.6Profit before tax from discontinued operations 88.8 24.7 ----------------Profit before tax 140.3 64.3 ----------------Profit before tax multiplied by the standard rate ofcorporation tax in the UK of 30% (2006, 30%) 42.1 19.3Effects of:Expenses not deductible for tax purposes 7.4 4.6Non taxable profit on disposal (25.6)Regional tax incentives (12.4) (9.7)Overseas tax rate differences 2.6 2.4Adjustments in respect of prior years (4.4) (4.8)Unrelieved tax losses 2.9 1.8 ----------------Total tax expense reported in the income statement 12.6 13.6 ---------------- 5 Discontinued operations 2007 2006 £m £mResults from discontinued operations:Revenue 72.9 237.7 ----------------Operating profit before: 4.4 27.8Amortisation of acquired intangible assets (0.3) (1.0)Exceptional items (0.6) -Taxation (1.1) (7.4) ----------------Profit after tax from discontinued operations 2.4 19.4 Profit on disposal of businesses: Profit before transfer from translation reserve 108.8 - Transfer from translation reserve (19.5) - ---------------- Profit on current year disposals 89.3 -Loss on prior year disposals (4.0) (2.1)Taxation 0.3 2.6 ----------------Profit after tax on disposals 85.6 0.5 ----------------Profit from discontinued operations 88.0 19.9 ---------------- The results from discontinued operations are the results from Laird SecuritySystems, which was disposed of on 27 April 2007 for a total consideration of£242.5m. 6 Earnings per share The calculation of basic and diluted earnings per share is based on the profitfor the year divided by the daily average of the number of shares in issueduring the year. Diluted earnings per share is based on the same profits butwith the number of shares increased to reflect the daily average effect ofrelevant share options granted but not yet exercised where performanceconditions have been met and shares contingently issuable. 2007 2006 £m £mProfitProfit after tax from continuing operations 39.7 30.8Profit from discontinued operations 88.0 19.9 ------------------------Profit for the year 127.7 50.7 ------------------------ Number Number of shares of shares (m) (m)Weighted average sharesBasic weighted average shares 185.9 189.2Options 1.8 1.5 ------------------------Diluted weighted average shares 187.7 190.7 ------------------------ Earnings per share Pence PenceBasic from continuing operations 21.4 16.3 ------------------------Diluted from continuing operations 21.2 16.2 ------------------------Basic from discontinued operations 47.3 10.5 ------------------------Diluted from discontinued operations 46.9 10.4 ------------------------Basic on profit for the year 68.7 26.8 ------------------------Diluted on profit for the year 68.0 26.6 ------------------------ 7 Underlying results Underlying profit and earnings per share are shown as the Board considers themto be relevant guides to the performance of the Group. The tax charge for theyear is equivalent to 15.5% (2006, 18.1%) of underlying profit before tax. 2007 2006 £m £mProfitContinuing profit before amortisation of acquired intangibleassets and exceptional items 80.0 55.4Finance revenue 2.8 2.1Finance costs (11.2) (12.5)Other finance revenue - pension 0.8 0.5 ----------------Continuing underlying profit before tax 72.4 45.5Discontinued operating profit before amortisation of acquiredintangible assets and exceptional items 4.4 27.8 ----------------Total underlying profit before tax 76.8 73.3 ----------------TaxThe underlying tax charge is calculated as follows: Underlying tax on continuing operations 10.8 6.3 Underlying tax on discontinued operations 1.1 7.0 ----------------Total underlying tax 11.9 13.3 Continuing underlying tax rate 14.9% 13.8%Total underlying tax rate 15.5% 18.1%Tax relief on exceptional items (1.6) -Deferred tax on goodwill and acquired intangible assets 2.2 2.5Tax on prior period discontinued operations (0.3) (2.2)Tax on fair value movement financial instruments 0.4 - ----------------Total tax charge 12.6 13.6 ----------------Analysis of tax charge:Tax on profit from continuing operations 11.8 8.8Tax on discontinued operations 0.8 4.8 ----------------Total tax charge 12.6 13.6 ---------------- Earnings per share Pence PenceContinuing underlying earnings per share - basic 33.1 20.7 ----------------Total underlying earnings per share - basic 34.9 31.7 ----------------Total underlying earnings per share - diluted 34.6 31.5 ---------------- 8 Dividends paid and proposed On 11 March 2008 the Board declared, subject to approval from shareholders, afinal dividend of 7.88p per share (2006, 6.45p). The final dividend will be paid on 6 June 2008 to shareholders registered on 2 May 2008. Dividends paid are charged to retained earnings on the earlier of the date of payment or the date on which they become a legal liability of the Company. Total Dividends Dividends paid Dividends declared/ proposed* 2007 2006 2007 2006 £m £m £m £m Final 2005 - 12.8 - -Interim 2006 - 6.6 - 6.6Final 2006 13.9 - - 13.9Special 2007 99.7 - 99.7 -Interim 2007 6.4 - 6.4 -Final 2007 - - 14.0 - ---------------------------------------- 120.0 19.4 120.1 20.5 ---------------------------------------- Dividends per share Dividends paid Dividends declared/ proposed* 2007 2006 2007 2006 Pence Pence Pence Pence Final 2005 - 6.45 - -Interim 2006 - 3.35 - 3.35Final 2006 6.95 - - 6.95Special 2007 50.00 - 50.00 -Interim 2007 3.62 - 3.62 -Final 2007 - - 7.88 - ---------------------------------------- 60.57 9.80 61.50 10.30 ----------------------------------------* attributable to the period 9 Retirement benefit obligations The Group has adopted IFRIC 14 which, depending on the rules of individualschemes, allows the Group to recognise pensions surpluses on the balance sheetwhere there is an unconditional right to a refund. The resultant aggregate netpension asset under IAS 19 is £8.1m (2006, £10.4m deficit). The market value of the schemes' assets, the present value of the schemes'liabilities and the net pension assets and liability under IAS 19 at 31 Decemberwere as follows: Schemes Schemes in in surplus surplus with a with a right to a Other right to a Other refund schemes Total refund schemes Total (restated) (restated) (restated) 2007 2007 2007 2006 2006 2006 £m £m £m £m £m £m Annuities 3.9 4.9 8.8 - 10.3 10.3Equities 32.9 8.3 41.2 4.2 41.3 45.5Gilts and bonds 31.0 9.8 40.8 - 27.3 27.3Other including cash 7.0 0.1 7.1 - 0.1 0.1 ---------------------------------------------------------------Total market value of assets 74.8 23.1 97.9 4.2 79.0 83.2Present value of scheme (62.3) (26.6) (88.9) (3.3) (89.9) (93.2)liabilities ---------------------------------------------------------------Funded status 12.5 (3.5) 9.0 0.9 (10.9) (10.0) ---------------------------------------------------------------Disallowed assets (0.2) (0.7) (0.9) (0.4) - (0.4) ---------------------------------------------------------------Surplus/(deficit) in 12.3 (4.2) 8.1 0.5 (10.9) (10.4)the schemes --------------------------------------------------------------- 10 Analysis of movements in net borrowings Period to 31 December 2007 At 1 At 31 January Cash Acquisitions Non-cash Exchange December 2007 flow and disposals changes differences 2007 £m £m £m £m £m £m Cash at bank 44.0 (12.5) - - 1.3 32.8Overdrafts - (0.4) - - - (0.4)Loans due within oneyear (4.7) (5.0) 0.6 - 0.1 (9.0)Loans due after morethan one year (148.1) 37.2 - - 2.1 (108.8)Finance leases (0.3) 0.1 0.2 - - - --------------------------------------------------------------------Total (109.1) 19.4 0.8 - 3.5 (85.4) -------------------------------------------------------------------- Period to 31 December 2006 At 1 At 31 January Cash Non-cash Exchange December 2006 flow Acquisitions changes differences 2006 £m £m £m £m £m £m Cash at bank 23.9 22.5 - - (2.4) 44.0Overdrafts (2.2) 2.2 - - - -Loans due within (4.2) 3.0 (4.0) - 0.5 (4.7)one yearLoans due after (165.0) 8.0 (7.6) - 16.5 (148.1)more than one yearFinance leases (0.6) 0.3 - - - (0.3) --------------------------------------------------------------------Total (148.1) 36.0 (11.6) - 14.6 (109.1) -------------------------------------------------------------------- 11 Reconciliation of movements in equity Ordinary share Share Retained Translation Treasury capital premium earnings reserve shares Total £m £m £m £m £m £m At 1 January 2006 40.0 155.5 119.9 (28.4) (2.7) 284.3Total recognised income and expense for the year - - 54.0 (30.6) - 23.4Issue of shares - 9.4 108.2 - - - 117.6Rights IssueExercise of share options 0.1 0.9 - - - 1.0Issue of shares onacquisition of business - 1.4 - - - 1.4Share based payments - - 1.6 - - 1.6Purchase of treasury shares - - - - (0.7) (0.7)Vesting of LTIPs - - (0.7) - 0.7 -Dividends paid - - (19.4) - - (19.4) --------------------------------------------------------------------At 1 January 2007 49.5 266.0 155.4 (59.0) (2.7) 409.2Total recognisedincome and expense - - 129.7 24.4 - 154.1for the yearTransfer between reserves - - (37.9) 37.9 - -Exercise of share options 0.3 2.9 - - - 3.2Share based payments - - 2.0 - - 2.0Vesting of LTIPs - - (0.8) - 0.8 -Dividends paid - - (120.0) - - (120.0) --------------------------------------------------------------------At 31 December 2007 49.8 268.9 128.4 3.3 (1.9) 448.5 -------------------------------------------------------------------- 12 Additional cash flow information Cash generation from operations Continuing operations 2007 2006 £m £m Net profit after taxation 39.7 30.8Depreciation and other non-cash itemsDepreciation 10.3 7.9Amortisation of capitalised development costs 2.0 1.0Exceptional fixed asset write downs 3.1 -Loss on disposal of fixed assets 0.1 -Capitalised development costs (3.8) (3.5)Share based payments 1.8 1.6Amortisation of acquired intangible assets 10.2 6.1Financial instruments - fair value adjustment (1.2) (0.2)Pension charges 0.2 0.7Other net finance costs 9.1 9.9Taxation 11.8 8.8Pension contributions (14.1) (2.9)Changes in working capitalInventories (19.6) (2.4)Trade and other receivables (41.5) (17.7)Trade, other payables and provisions 39.5 13.2 ------------------- (21.6) (6.9) -------------------Cash generated from continuing operations 47.6 53.3 ------------------- Discontinued operations Net profit after taxation 88.0 19.9(Profit) / loss on disposal of businesses before taxation (85.3) 2.1Depreciation and other non-cash itemsDepreciation 1.7 5.3Profit on disposal of fixed assets - (0.7)Amortisation of acquired intangible assets 0.3 1.0Taxation 0.8 4.8Changes in working capital (10.7) (4.9) -------------------Cash flow from discontinued operations (5.2) 27.5 -------------------Cash generated from operations 42.4 80.8 ------------------- Notes (a) Working capital movements from continuing operations are after creditor increases of £3.9m (2006, £nil) in respect of exceptional costs of redundancy and restructuring. Net cash outflow on acquisitions and disposals 2007 2006 £m £mAcquisition of businesses Consideration:Cash consideration (80.6) (97.6)Net cash acquired 1.6 0.9 ------------------- (79.0) (96.7)Deferred consideration paid (2.4) (5.3) -------------------Net cash outflow on acquisition of businesses (81.4) (102.0) -------------------Borrowings acquired - (11.6) ------------------- Disposal of businesses Consideration:Net cash considerationCurrent year disposals 219.4 -Prior year disposals (0.2) (8.5) -------------------Net cash consideration 219.2 (8.5)Cash disposed of (0.1) -Borrowings disposed of 0.8 - -------------------Net cash inflow / (outflow) on disposal of businesses 219.9 (8.5) ------------------- Gross consideration for the disposal in 2007 was £242.5m of which £12.5m wasdeferred for one year. 13 Other information The financial information for the year ended 31 December 2007 set out above hasbeen extracted from the 2007 Annual Report and Accounts which have been auditedby Ernst & Young LLP who have given an unqualified audit opinion. The Accountsfor 2007 are expected to be filed following the Company's Annual General Meetingto be held on 9 May 2008. The Company's 2007 Annual Report and Accounts,including the notice of Annual General Meeting, will be posted to shareholders. The proposed final dividend will be paid on 6 June 2008 to shareholdersregistered on 2 May 2008. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Laird