18th Apr 2007 12:30
Signet Group PLC18 April 2007 Signet Group plc (LSE: SIG and NYSE: SIG) Embargoed until 12.30 p.m. (BST) Preliminary results for the 53 weeks ended 3 February 2007 18 April 2007 Signet Results Ahead of Expectations Dividend up 9.1% Reported Constant Exchange Rate 53 weeks 52 weeks(1) • Group total sales: £1,893.2m up 8.0% up 9.9%• Group like for like sales up 4.8% up 5.4%• Group profit before tax: £213.2m up 6.4% up 9.3%• Earnings per share: 8.2p up 9.3% up 11.0%• Total annual dividend per share:3.6p(2) up 9.1% (1) See note 11 for reconciliation. (2) Final dividend proposed in US dollars, see note 8 for translation assumption. Divisional Highlights • US:- Increased leading speciality jewellery market share to 8.8% - Kay strengthened its No.1 speciality brand position with sales up 15.2% to $1,486.7m - Jared sales up 24.4% to $664.4m, national cable television advertising commenced - Space growth of 11%, part of $1 billion five year new store investment programme • UK:- Operating profit up 12.0% to £55.0 million, benefiting from cost realignment completed in early 2006 - Diamonds now 30% of product mix, up from 23% in 2001/02 - 44% of sales from reformatted stores Terry Burman, Group Chief Executive, commented: "The Group continued to makegood progress. The US business again increased its share of the $63 billion USjewellery market and significantly outperformed its main competition. The UKdivision reported a solid increase in profits in a challenging tradingenvironment. Since the start of the financial year the trading environment in the US appearsto have weakened somewhat. As a result, in the year to date, the US business hasexperienced a low single digit like for like sales increase on an underlyingbasis, after taking into account the adverse weather disruption over Valentine'sDay and the benefit of the timing of promotional events. The strong competitiveadvantages of the division means it continues to be well positioned to gainfurther market share. In the UK, like for like sales growth has strengthened alittle from the performance of last year, although the marketplace remainschallenging." Enquiries: Terry Burman, Group Chief Executive +44 (0) 20 7317 9700Walker Boyd, Group Finance Director +44 (0) 20 7317 9700Tom Buchanan, Brunswick +44 (0) 20 7404 5959Pamela Small, Brunswick +44 (0) 20 7404 5959 Signet operated 1,889 speciality retail jewellery stores at 3 February 2007;these included 1,308 stores in the US, where the Group trades as "Kay Jewelers","Jared The Galleria Of Jewelry", and under a number of regional names. At thatdate Signet operated 581 stores in the UK, where the Group trades as "H.Samuel","Ernest Jones", and "Leslie Davis". Further information on Signet is availableat www.signetgroupplc.com. See also www.kay.com, www.jared.com,www.hsamuel.co.uk and www.ernestjones.co.uk. Chairman's Statement Group performance I am pleased to report that the Group achieved record profits in 2006/07.Financial highlights of the year included: • Sales up 8.0% to £1,893.2 million; • Profit before tax up 6.4% to £213.2 million; and • Earnings per share up 9.3% to 8.2p. The US division substantially strengthened its position as the largestspeciality retail jeweller in the US, continued to achieve sector-leadingoperating ratios and increased space by 11%, a little above the top end of itstarget range. Kay built further on its position as the leading US specialityjeweller by sales and Jared is now the number four brand in the sector. In atrading environment that continued to be challenging, the UK division achieved asolid increase in operating profit and an improved operating margin. During 2006/07 the Group again made good progress towards its objectives, whichare to: • continue to achieve sector leading performance standards on both sides of the Atlantic; • increase store productivity in the US and the UK; • grow new store space in the US; and • maintain a strong balance sheet. Signet has been a member of the FTSE4Good Index since it was established, andendeavours to meet its changing criteria. During the year the Group continued tosupport the activities of the Council for Responsible Jewellery Practices andthe World Diamond Council, as we believe this to be the best and most effectiveway to achieve improvements in the sector's supply chain with regard to social,ethical and environmental issues. The Group has recently written to most of itssuppliers of diamond and gold jewellery highlighting the importance we place ona responsibly managed supply chain and reminding them of the expectations wehave of them. The Group also takes its environmental responsibilities seriouslyand seeks opportunites to improve its performance. The Group's distribution policy is regularly reviewed by the Board taking intoaccount earnings, cash flow, gearing and the needs of the business. On 5February 2007 the redenomination of the Company's share capital becameeffective, therefore the final dividend will be declared in US dollars. TheBoard is pleased to recommend a final dividend of 6.317 cents per share (2005/06: 2.8875p). Based on the exchange rate on 17 April 2007, this represents atotal dividend for the year of 3.6p, an increase of 9.1% (see Financial reviewand note 8). A £50 million share repurchase programme was announced in July 2006and this has now been substantially completed. Current trading Since the start of the financial year the trading environment in the US appearsto have weakened somewhat. As a result, in the year to date, the US business hasexperienced a low single digit like for like sales increase on an underlyingbasis, after taking into account the adverse weather disruption over Valentine'sDay and the benefit of the timing of promotional events. The strong competitiveadvantages of the division means it continues to be well positioned to gainfurther market share. The US bad debt performance remains comfortably within therange of the last ten years. In the UK, like for like sales growth hasstrengthened a little from the performance of last year, although themarketplace remains challenging. On both sides of the Atlantic, a tight controlof costs has been maintained. People I would like to thank our staff and management for their invaluable contributionto the continued success of the Group. In particular, James McAdam who stooddown as Chairman in June 2006, deserves special thanks for his long andinvaluable service to the Group. I am pleased to report that he has recoveredfrom the illness that prevented him from attending the 2006 annual generalmeeting. Chief Executive's Review Group Results In the 53 weeks to 3 February 2007 total sales rose by 11.5% at constantexchange rates (see note 11); the reported increase was 8.0% to £1,893.2 million(2005/06: £1,752.3 million). Total sales were adversely impacted by 3.5% due tothe movement in the average US dollar / pound sterling exchange rate from $1.80/ £1 to $1.88 / £1 but benefited from the 53rd week which contributed 1.6% toGroup sales. Like for like sales advanced by 4.8%, with US sales negativelyaffected by a change in timing of a Valentine's Day 2007 promotional event whichmoved into the first week of 2007/08. On a 52 week basis to 27 January 2007,which was not affected by this promotional timing difference, like for likesales were up by 5.4%. Operating profit increased by 10.1% at constant exchange rates (see note 11);the reported increase was 6.3% to £221.4 million (2005/06: £208.2 million). The53rd week contributed £1.8 million to Group operating profit. Operating marginwas 11.7% (2005/06: 11.9%). Profit before tax was up by 10.1% at constantexchange rates (see note 11) and by 6.4% on a reported basis to £213.2 million(2005/06: £200.4 million), the 53rd week contributing £1.5 million. The tax ratewas 33.6% (2005/06: 34.7%). Earnings per share rose by 12.3% at constantexchange rates (see note 11) and by 9.3% on a reported basis to 8.2p (2005/06:7.5p), the 53rd week contributing 0.1p. The balance sheet remains strong and gearing (net debt to total equity) at 3February 2007 was 13.4% (28 January 2006: 11.2%). Total investment in fixed andworking capital during the year was £158.5 million (2005/06: £147.1 million),predominantly to fund the record number of new stores opened. The return oncapital employed ("ROCE") improved to 22.8% (2005/06: 22.4%). US division During 2006/07 significant progress was made in implementing the division'sstrategy of: • gaining further profitable market share; • achieving above sector average like for like sales growth; and • increasing new store space by 8% - 10% per annum. Total dollar sales increased by 14.9% (13.2% on a 52 week basis, see note 11).The division significantly outperformed the total US jewellery market which grewby 7.1% to $63.1 billion in calendar 2006 (2005: $58.9 billion, Source: USDepartment of Commerce); its share of the speciality jewellery market was 8.8%(2005: 8.2%). The division's like for like sales rose by 6.2% (on a 52 weekbasis to 27 January 2007, which was not impacted by the change in timing of aValentine's Day promotional event, like for like sales were up 7.0%). Operating profit rose by 8.6% at constant exchange rates (see note 11). On areported basis operating profit increased by 4.0% to £173.8 million (2005/06:£167.1 million). The commencement of television advertising for Valentine's Day2007 in the last week of 2006/07, with the related sales benefit occurring in2007/08, meant that the 53rd week did not contribute to operating profit. As part of the $1 billion five year expansion programme announced last year, newstore space grew by 11% (2005/06: 9%), slightly above the 8% - 10% target range.This was the largest annual increase since the acquisition of Marks & Morgan in2000/01. Compound annual growth in new store space over the last five years hasbeen 8%. While Jared accounted for the majority of the space growth over thisperiod, Kay has increased its store base by almost 25% since 3 February 2002.Over the longer term the US division has the potential to almost double storespace within the three existing formats of Jared, Kay and the regional brands. Where appropriate, acceleration of the US division's growth through acquisitionswill be considered. However, as always, the Group's strict operational andfinancial criteria will be applied to any such opportunities. UK division The UK division's strategy remains to: • improve store productivity and operating margin; • lift the average transaction value; and • increase diamond participation in the sales mix. Whilst the retail environment remained challenging, UK operating profit rose12.0% to £55.0 million (2005/06: £49.1 million), the 53rd week contributing £1.8million. Like for like sales were up 1.2%. The division achieved a healthyoperating margin of 11.4%, a good ROCE of 32.7% and strong cash flow.Notwithstanding the demanding trading conditions, the average transaction valuewas up by 10.5% to £63 (2005/06: £57) and diamond sales increased to 30% (2005/06: 29%) of the product mix. In 2006/07, there was a significant initiative to further differentiate thedivision's brands within the marketplace by implementing a greater focus onjewellery collections, exclusive ranges and the assortment of diamondmerchandise offered. The business continued to emphasise customer service withthe launch of major new staff training programmes. The development of televisionadvertising continued with H.Samuel moving to national coverage, and ErnestJones maintaining a similar level to the prior year. While the number of storesremodelled during the year was fewer than in 2005/06, it was in line with thenormal refurbishment cycle. In implementing these initiatives the divisioncontinued to draw on the US business' best practice and experience. Business Reviews US division (75% of Group sales) Details of the US division's results are set out below: Change at constant Like for 2006/07 2005/06 Change exchange like 53 weeks 52 weeks reported rates(1) change £m £m % % % Sales 1,410.7 1,282.7 10.0(2) 14.9 6.2(3) Operating profit 173.8 167.1 4.0(2) 8.6 Operating margin 12.3% 13.0% ROCE 21.5% 22.4% (1) See note 11 for reconciliation of impact of exchange rates.(2) The 53rd week contributed 1.7% to sales and had no impact on operating profit, see note 11.(3) Like for like sales for the 52 weeks to 27 January, which were not impacted by the change in timing of a Valentine's Day promotion were 7.0%. Financial performance The operating margin of 12.3% remained within the range of the last five years(2005/06: 13.0%). Expense leverage of 70 basis points from like for like salesgrowth partly offset the impact of additional immature space of 50 basis pointsas well as the adverse effect of both the movement in gross margin percentage of70 basis points and the 53rd week of 20 basis points. Expense leverage was curtailed by an above normal level of increase inhealthcare costs, freight charges and property taxes. The bad debt charge was2.8% of total sales (2005/06: 3.0%). The proportion of sales through thein-house credit card was 51.7% (2005/06: 51.6%). The movement in gross margin percentage reflected the adverse impact of highercommodity costs, changes in mix and a slightly more competitive pricingenvironment in the fourth quarter. In 2006/07 gold prices increasedsignificantly, however, diamond prices were broadly stable. The variance in mixreflected the growth of Jared and an increase in diamond participation, both ofwhich are driving like for like sales growth and expense leverage. All of thesefactors were partly offset by supply chain initiatives, and selective pricingchanges predominantly implemented in the second quarter of 2006/07. ROCE was 21.5% (2005/06: 22.4%) reflecting the additional investment in an 11%increase in space. The proportion of stores under six years old in 2006/07 was32% compared to 22% in 2001/02 (treating the acquired Marks & Morgan sites asexisting stores). The higher proportion of immature store space constrains theROCE in the short term, but increases operating profit and drives future growth. Store operations During 2006/07 the first phase of an enhanced training system, to developcustomer service skills and product knowledge further, was introduced into thestores; the systems for training jewellery repair staff were improved; and acustomer satisfaction index was included in the monthly performance indicatorsfor each store. Store staff also received additional training on supply chainissues such as conflict diamonds and the environmental impact of gold mining. Merchandising Average unit selling prices in mall stores and Jared increased by 4% and 3%respectively, reflecting selective changes in retail prices as a result ofincreased commodity costs. This was partly offset by the rapid growth of theheavily promoted "Circle" and "Journey" merchandise, the latter being a newrange launched in conjunction with a marketing campaign by the Diamond TradingCompany. The right hand diamond ring selection was increased and the upper endof the diamond collection continued to be successfully developed. In Jared, the"Peerless Diamond" was introduced into all stores and the luxury watch rangeswere further extended. The rough diamond sourcing trial, the objective of whichis to secure additional reliable and consistent supplies of diamonds at a lowercost, was increased over the prior year and will be expanded further in 2007/08. Marketing Annual gross marketing spend amounted to 7.0% of sales (2005/06: 6.7%). Dollarmarketing expenditure increased by 21% reflecting the growth in total sales, thehigher proportion of sales being generated by Jared and the impact of thecommencement of television advertising for Valentine's Day 2007 in the 53rdweek. Further leverage of the "Every kiss begins with Kay" advertising campaigncontinued to help drive sales performance. The JB Robinson televisionadvertising test was expanded to a further three markets; the other markets withregional brands continued to be supported by radio advertising. National cabletelevision advertising was used by Jared stores for the first time during theholiday period and the "He went to Jared" campaign was further developed. It isexpected that Jared will have sufficient scale to move to national networktelevision advertising in the fourth quarter of 2007/08. Kay Jewelers Kay sales increased by 15.2% to $1,486.7 million (2005/06: $1,290.1 million).During the year a further net 51 stores were opened, bringing the total to 832.Following a successful three year trial of 31 sites, the roll-out of Kay storesin open-air retail centres began with 21 opened in 2006/07; a further 35 - 40are planned for 2007/08. Due to the division's strict real estate criteria, nonew stores in metropolitan locations were opened in 2006/07; the threemetropolitan locations opened in 2005/06 traded satisfactorily. The test of Kaystores in outlet centres started with four additional sites. A trial of a mallsuperstore format, drawing on the experience of Jared and the metropolitan storeconcept, was commenced in 11 locations during 2006/07. In September 2006 ane-commerce facility was successfully launched on the Kay website and will bedeveloped further in 2007/08. Regional brands 341 mall stores traded under strong regional brand names at 3 February 2007 withsales up 3.4% to $501.0 million (2006/07: $484.5 million). There are now 114 JBRobinson locations; 19 stores were rebranded to that format during 2006/07 aspart of the test of local television advertising. The regional brands continueto significantly outperform the speciality jewellery sector average sales perstore. Jared The Galleria Of Jewelry Jared sales were up by 24.4% to $664.4 million (2005/06: $534.2 million); theportfolio of 135 stores, equivalent in space terms to about 550 mall stores,increased by 25 during 2006/07.The Jared concept again accounted for the majority of the Group's space growth.The chain is immature with only 41% of stores having traded for five or moreyears. In their fifth year of trading the average sales of these stores was some$5.6 million, above the target level set at the time of the original investment.The average sales per store for those Jared locations that have been open forsix years or more was $6.8 million in 2006/07. Jared's average storecontribution rate was broadly similar to that of the division as a whole. In 2006/07, Jared entered nine new markets, the largest being Los Angeles.Representation was expanded in eight cities, including Boston, Chicago,Baltimore and Denver. It is planned to enter the major centres of New York andPhiladelphia in 2007/08. Real estate The table below sets out the store numbers, net new openings and the potentialnumber of stores by chain: Planned net 28 January Net openings 3 February openings 2006 2006/07 2007 2007/ 08 Potential Store numbers ------------------------------------------------------------------ KayMall 746 26 772 25-30 850+Off-mall 31 21 52 35-40 500+Outlet 1 4 5 5 50-100Metropolitan 3 nil 3 nil 30+ ------------------------------------------------------------------ 781 51 832 65-75 1,430+Regionals 330 11 341 5 c.700Jared 110 25 135 20-25 250+ ------------------------------------------------------------------ Total 1,221 87 1,308 90-105 2,380+ ------------------------------------------------------------------ Investment In 2006/07 fixed capital investment was $101.1 million (2005/06: $88.4 million),including some $57 million related to new store space. In 2007/08 capitalexpenditure is planned to rise to about $135 million, including circa $65million related to new space. The investment in working capital, that isinventory and receivables, associated with space growth amounted to some $119million in 2006/07 and is expected to be higher in 2007/08. 59 stores wererefurbished or relocated (2005/06: 57) with some 77 planned for 2007/08. During2006/07, a two year project to increase the capacity of the distribution centrewas completed on schedule. Recent investment in the store portfolio, both fixed and working capital, is setout below: 2006/07 2005/06 2004/05 $m $m $m ---------------------------------New stores Fixed capital investment 57 45 27Working capital investment 119 96 76 --------------------------------- Total investment 176 141 103 Other store fixed capital investment 30 28 29 --------------------------------- Total store investment 206 169 132 --------------------------------- UK division (25% of Group sales) Details of the UK division's results are set out below: Change Like for 2006/07 2005/06 like 53 weeks 52 weeks change £m £m % % Sales: H.Samuel 260.8 256.2 1.8 0.7 Ernest Jones 217.6 208.5 4.4 1.7 Other 4.1 4.9 (16.3) ----------------------------- Total 482.5 469.6 2.7(1) 1.2 ----------------------------- Operating profit 55.0(1) 49.1 12.0(1) Operating margin 11.4% 10.5% ROCE 32.7% 26.6% (1) The 53rd week contributed 1.5% to sales and 3.6% to operating profit, thatis £1.8 million. See note 11 for reconciliation. Financial performance The UK division's operating margin was 11.4% (2005/06: 10.5%) reflecting stablesales, tight management of gross margin and strict control of costs. Grossmargin percentage increased by 30 basis points, the benefit from advantageoushedging positions and selective price increases more than offsetting highercommodity costs. Actions taken to reduce costs in early 2006 benefited thebusiness throughout 2006/07 and resulted in a 40 basis point improvement tooperating margin; the impact of the 53rd week was favourable by 20 basis points. ROCE improved to 32.7% (2005/06: 26.6%), reflecting the high leverage of capitalemployed in the UK division. Store operations An improved customer service training programme called Amazing CustomerExperience ("ACE") was introduced in 2006/07 and will be developed further in2007/08. Training for all tiers of store operations management took place tosupport the introduction of the ACE programme and to build general managementskills. Opportunities for enhanced store procedures and employment practiceswere identified through a staff opinion survey. Store staff also receivedadditional training on supply chain issues such as conflict diamonds and theenvironmental impact of gold mining. Merchandising The division focused on the development of jewellery collections and exclusivemerchandise to further differentiate its brands in the marketplace. For example,in H.Samuel the Forever Diamond selection was increased, the Soulmate and Cafediamond collections were introduced and there was a range of exclusive watchesfrom Rotary. In Ernest Jones the Leo Diamond range was further expanded, theVintage and Nature collections launched, a selection of "Journey" pieces testedand exclusive watches from manufacturers such as Emporio Armani stocked. Since2001/02 diamond participation has risen from 17% to 23% in H.Samuel and from 33%to 38% in Ernest Jones. The average unit selling price in H.Samuel was £42 (2005/06: £38) and in Ernest Jones £163 (2005/06: £148); during the last five yearsaverage transaction values have increased by 35.4% and 36.9% respectively. Marketing For Christmas 2006 television advertising was successfully expanded to nationalcoverage for H.Samuel and regional support continued for Ernest Jones at asimilar level to 2005/06. H.Samuel was also supported by national newspaperadvertising during December 2006. Gross marketing expenditure represented 3.1%of sales in 2006/07 (2005/06: 3.2%). In September 2006 an e-commerce capabilitywas launched on the Ernest Jones website as a complement to store-based customerservice. The H.Samuel website is the most visited among speciality jewelleryretailers according to Hitwise, while that of Ernest Jones is the third mostvisited; the e-commerce initiatives are meeting their investment targets. Real estate and investment During 2006/07, 28 stores were refurbished or relocated, including two in thetraditional design. At the year end 255 stores, mostly H.Samuel, traded in themodernised format. This type of store accounted for 44% of the UK division'ssales in 2006/07. During the year 11 H.Samuel and two Ernest Jones stores wereclosed, and one Ernest Jones opened. At the year end there were 581 stores (375H.Samuel and 206 Ernest Jones). The level of store capital expenditure was £8million (2005/06: £22 million), significantly less than the prior yearreflecting the phasing of the normal store refurbishment cycle and only one newstore opening. The level of store refit is planned to be at a similar level in2007/08, with some design enhancements to the Ernest Jones format being tested.Store capital expenditure is expected to increase to some £13 million largelyreflecting a planned higher level of investment in relocations and new stores. Recent investment in the store portfolio is set out below: 2006/07 2005/06 2004/05 ------------------------------- Store refurbishments and relocations 28 78 81 New H.Samuel stores - 3 2 New Ernest Jones stores 1 5 7 Store fixed capital investment £8m £22m £23m Group Financial Review Operating margin and ROCE Operating margin (operating profit to sales ratio) was 11.7% (2005/06: 11.9%)and ROCE was 22.8% (2005/06: 22.4%). Capital employed is based on the average ofthe monthly balance sheets and at 3 February 2007 included US in-house creditcard debtors amounting to £395.6 million (28 January 2006: £382.7 million). Group and financing costs Group central costs amounted to £7.4 million (2005/06: £8.0 million including aproperty provision of £0.7 million). Net financing costs amounted to £8.2million (2005/06: £7.8 million), the increase being primarily due to thetransition from a securitised borrowing facility to the new private placementnote facility and incremental borrowing as a result of the share buy backprogramme offset by the movement in the US dollar / pound sterling exchangerate. Taxation The charge of £71.7 million (2005/06: £69.6 million) represents an effective taxrate of 33.6% (2005/06: 34.7%). The rate is lower than previously indicated dueto the tax treatment of share options and the favourable resolution of certainprior year tax positions. It is anticipated that, subject to the outcome ofvarious uncertain tax positions, the Group's effective tax rate in 2007/08 mayincrease to a level of up to 37%, this being an approximation to the underlyingeffective tax rate for the Group. Profit for the financial period Profit for the 53 weeks ended 3 February 2007 was £141.5 million (2005/06:£130.8 million). Impact of 53rd week 2006/07 was a 53 week financial year. The extra week increased total sales by1.6% (1.7% in the US and 1.5% in the UK) and contributed £1.8 million tooperating profit (nil effect in the US and £1.8 million in the UK). Net ofadditional interest costs of £0.3 million, profit before tax benefited by £1.5million. Purchase of own shares During 2006/07 the Group commenced a share buy back programme with 30.3 millionshares being purchased for £33.7 million. A further 11.4 million shares havebeen purchased for £13.8 million since the start of the 2007/08 financial year,substantially completing the £50 million target announced in July 2006. Liquidity and capital resources Cash generated from operations amounted to £182.2 million (2005/06: £188.1million) after funding a working capital increase of £92.3 million (2005/06:£71.2 million), principally as a result of the growth of the US division. It isanticipated that in 2007/08 there will be a further increase in the level ofworking capital investment as a result of planned US store openings. Interest of£16.7 million (2005/06: £11.4 million) and tax of £69.2 million (2005/06: £64.7million) were paid. Net cash from operating activities was £96.3 million (2005/06: £112.0 million). Group capital expenditure was £66.2 million (2005/06: £75.9 million). The levelof capital expenditure was some 1.3 times (2005/06: 1.6 times) the depreciationand amortisation charge of £50.3 million (2005/06: £46.2 million). Capitalexpenditure in 2007/08 is expected to be £85 million to £95 million, most ofwhich will be store related. There were disposal proceeds of £2.4 million (2005/06: £7.5 million). Equity dividends of £57.8 million (2005/06: £52.7 million)were paid in the year and the net movement in shares outstanding was an outflowof £29.6 million (2005/06: inflow £1.9 million) reflecting the share buy backprogramme. The rise in net debt before exchange adjustments was £45.9 million(2005/06: £4.8 million), the increase reflecting the higher rate of space growthin the US and the £33.7 million (2005/06: £2.0 million) purchase of own shares.In 2007/08 the increase in net debt before exchange adjustments and net movementin equity capital is expected to be between £35 million and £45 millionreflecting a planned higher level of capital expenditure and an anticipated risein tax and dividend payments. Net debt Net debt at 3 February 2007 was £118.4 million (28 January 2006: £98.6 million).Group gearing at the year end was 13.4% (28 January 2006: 11.2%) and the fixedcharge cover was unchanged at 2.0 times. Pensions The Group has one defined benefit plan (the "Group Scheme") for UK-based staff,which was closed to new members in 2004. All other pension arrangements consistof defined contribution plans. The IAS 19 present value of obligations of theGroup Scheme decreased last year by £10.9 million to £130.9 million and themarket value of the Group Scheme's assets increased by £6.5 million to £132.8million; as a result the balance sheet at 3 February 2007 reflected a netpension asset of £1.3 million (28 January 2006: net pension liability of £10.9million). The triennial valuation of the Group Scheme was carried out as at 5 April 2006.There was a surplus and as a result no additional contributions were required aspart of a recovery plan to eliminate a deficit. The cash contribution to thefund in 2006/07 was £3.6 million (2005/06: £4.3 million) and the Group expectsto contribute some £3.9 million in 2007/08. Dollar reporting and payment of dividends Following the approval of shareholders and the High Court, the redenomination ofthe Company's share capital became effective on 5 February 2007. The Company'sfunctional currency is now US dollars and in the future the Group will report inUS dollars. The Company will continue to be registered and have its headquartersin England, and will maintain its primary listing on the London Stock Exchangewith the shares quoted in pounds sterling. It will also continue to maintain alisting on the New York Stock Exchange, with the American Depositary Receiptsquoted in US dollars. A US dollar presentation of the results will shortly beavailable on the Signet website www.signetgroupplc.com. Following the redenomination of the share capital the final dividend will bedeclared in US dollars. A letter will be sent today to all shareholders on theregister asking whether they wish to receive this, and future dividends, in USdollars or pounds sterling. Shareholders will in future be able to change theirelection by contacting the Company's registrar. For shareholders who wish toreceive the proposed final dividend in pounds sterling, the actual amount willbe calculated using the exchange rate as derived from Reuters at 4.00 p.m. onthe record date of 1 June 2007. Summary of Fourth Quarter Results (Unaudited) 14 weeks 13 weeks ended ended 3 February 28 January Like for like 2007 2006 change £m £m %Sales UK 204.1 195.8 +1.5 US 550.3 523.1 +5.4 --------------------------- 754.4 718.9 +4.2 --------------------------- Operating profit UK - Trading 59.5 54.0 - Group central costs (1.8) (3.3) --------------------------- 57.7 50.7US 95.0 96.5 --------------------------- Total operating profit 152.7 147.2Net financing costs (1.6) (1.9) --------------------------- Profit before tax 151.1 145.3 Taxation (49.6) (50.6) Profit for the period 101.5 94.7 --------------------------- EPS - basic 5.9p 5.4p - diluted 5.9p 5.4p The Board of Directors approved this statement of preliminary results on 18April 2007. Investor relations programme details There will be an analysts' presentation and conference call today at 2.00 p.m.BST (9.00 a.m. EDT and 6.00 a.m. Pacific Time) and a simultaneous audio andvideo webcast at www.signetgroupplc.com. To help ensure the conference callbegins in a timely manner, could all participants please dial in 5 to 10 minutesprior to the scheduled start time. The call details are: European dial-in: +44 (0) 20 7138 0816US dial-in: +1 718 354 1171 European 48hr. replay: +44 (0) 20 7806 1970 Access code: 1908484#US 48hr. replay: +1 718 354 1112 Access code: 1908484# Virtual Store Tour A virtual store tour of the Group's major retail formats is available atwww.signetgroupplc.com. Investor Day and Store Tour, Akron, Ohio, Wednesday 9 May 2007 It is intended to hold an Investor Day and Store Tour for professional investorsin Akron, Ohio on Wednesday 9 May 2007. First quarter sales First quarter sales figures are expected to be announced on 10 May 2007. This release includes statements which are forward-looking statements within themeaning of the Private Securities Litigation Reform Act of 1995. Thesestatements, based upon management's beliefs as well as on assumptions made byand data currently available to management, appear in a number of placesthroughout this release and include statements regarding, among other things,our results of operation, financial condition, liquidity, prospects, growth,strategies and the industry in which the Group operates. Our use of the words"expects," "intends," "anticipates," "estimates," "may," "forecast,""objective," "plan" or "target," and other similar expressions are intended toidentify forward-looking statements. These forward-looking statements are notguarantees of future performance and are subject to a number of risks anduncertainties, including but not limited to general economic conditions, themerchandising, pricing and inventory policies followed by the Group, thereputation of the Group, the level of competition in the jewellery sector, theprice and availability of diamonds, gold and other precious metals, seasonalityof the Group's business and financial market risk. For a discussion of these and other risks and uncertainties which could causeactual results to differ materially, see the "Risk and Other Factors" section ofthe Company's 2005/06 Annual Report on Form 20-F filed with the U.S. Securitiesand Exchange Commission on May 4, 2006 and other filings made by the Companywith the Commission. Actual results may differ materially from those anticipatedin such forward-looking statements even if experience or future changes make itclear that any projected results expressed or implied therein may not berealised. The Company undertakes no obligation to update or revise anyforward-looking statements to reflect subsequent events or circumstances. SIGNET GROUP plc Consolidated income statementfor the 53 weeks ended 3 February 2007 53 weeks 52 weeks ended ended 3 February 28 January 2007 2006 Notes---------------------------- -------- -------- ------ £m £m---------------------------- -------- -------- ------ Sales 1,893.2 1,752.3 2,11Cost of sales (1,644.9) (1,516.3)---------------------------- -------- -------- ------Gross profit 248.3 236.0Administrative expenses (75.6) (74.1)Other operating income 48.7 46.3 3---------------------------- -------- -------- ------Operating profit 221.4 208.2 2,11Finance expense (18.2) (11.4) 4Finance income 10.0 3.6 4---------------------------- -------- -------- ------Profit before tax 213.2 200.4 11Taxation - UK (14.8) (12.9) 5 - US (56.9) (56.7) 5---------------------------- -------- -------- ------Profit for the financial period 141.5 130.8 11---------------------------- -------- -------- ---------------------------------- -------- -------- ------Earnings per share - basic 8.2p 7.5p 7,11 - diluted 8.2p 7.5p 7,11---------------------------- -------- -------- ------ All of the above relate to continuing activities. Consolidated balance sheetat 3 February 2007 3 February 28 January 2007 2006 Notes------------------------------ ------- ------- ------ £m £m------------------------------ ------- ------- ------ Assets:Non-current assetsIntangible assets 23.5 22.9Property, plant and equipment 246.1 253.8Other receivables 14.8 14.3Retirement benefit asset 1.9 -Deferred tax assets 14.7 17.4------------------------------ ------- ------- ------ 301.0 308.4------------------------------ ------- ------- ------Current assetsInventories 685.6 679.7Trade and other receivables 441.2 430.4Cash and cash equivalents 77.3 52.5------------------------------ ------- ------- ------ 1,204.1 1,162.6------------------------------ ------- ------- ------ Total assets 1,505.1 1,471.0------------------------------ ------- ------- ------ Liabilities:Current liabilitiesBorrowings due in less than oneyear (2.8) (151.1)Trade and other payables (199.2) (204.7)Deferred income (62.3) (62.8)Current tax (51.6) (50.2)------------------------------ ------- ------- ------ (315.9) (468.8)------------------------------ ------- ------- ------Non-current liabilitiesBorrowings due in more than oneyear (192.9) -Trade and other payables (37.9) (36.0)Deferred income (67.0) (65.6)Provisions (5.1) (6.2)Retirement benefit obligation - (15.5)------------------------------ ------- ------- ------ (302.9) (123.3)------------------------------ ------- ------- ------ Total liabilities (618.8) (592.1)------------------------------ ------- ------- ------------------------------------ ------- ------- ------Net assets 886.3 878.9------------------------------ ------- ------- ------ Equity:Capital and reserves attributable toshareholdersShare capital 8.6 8.7Share premium 77.0 71.7 9Other reserves 142.3 142.2 9Retained earnings 658.4 656.3 9------------------------------ ------- ------- ------Total equity 886.3 878.9------------------------------ ------- ------- ------ Consolidated cash flow statementfor the 53 weeks ended 3 February 2007 53 weeks 52 weeks ended ended 3 February 2007 28 January 2006----------------------------- -------- -------- £m £m----------------------------- -------- -------- Cash flows from operating activities: Profit before tax 213.2 200.4Adjustments for:Finance income (10.0) (3.6)Finance expense 18.2 11.4Depreciation of property, plant andequipment 49.0 45.0Amortisation of intangible assets 1.3 1.2Other non-cash movements 2.4 4.9Loss on disposal of property, plant andequipment 0.4 ------------------------------ -------- --------Operating cash flows before movements inworking capital 274.5 259.3Increase in inventories (62.8) (72.8)Increase in trade and other receivables (54.0) (51.4)Increase in payables and deferred income 24.5 53.0----------------------------- -------- --------Cash generated from operations 182.2 188.1Interest paid (16.7) (11.4)Taxation paid (69.2) (64.7)----------------------------- -------- --------Net cash from operating activities 96.3 112.0----------------------------- -------- -------- Investing activities:Interest received 9.0 2.4Purchase of property, plant and equipment (62.2) (70.4)Purchase of intangible assets (4.0) (5.5)Proceeds from sale of property, plant andequipment 2.4 7.5----------------------------- -------- --------Cash flows from investing activities (54.8) (66.0)----------------------------- -------- -------- Financing activities:Dividends paid (57.8) (52.7)Proceeds from issue of share capital 4.1 3.9Purchase of own shares (33.7) (2.0)Decrease in borrowings falling due withinone year (132.1) (46.6)Increase in borrowings falling due in morethan one year 204.4 ------------------------------ -------- --------Cash flows from financing activities (15.1) (97.4)----------------------------- -------- -------- Cash and cash equivalents at beginning ofthe period 52.5 102.4Increase/(decrease) in cash and cashequivalents 26.4 (51.4)Exchange adjustments (1.6) 1.5----------------------------- -------- --------Closing cash and cash equivalents 77.3 52.5----------------------------- -------- -------- Reconciliation of net cash flow to movement in net debt Net debt at beginning of period (98.6) (83.5)Increase/(decrease) in cash and cash equivalents 26.4 (51.4)Decrease in borrowings falling due within one year 132.1 46.6Increase in borrowings falling due in more than one year (204.4) -Exchange adjustments 26.1 (10.3)----------------------------- -------- --------Net debt at end of period (118.4) (98.6)----------------------------- -------- -------- Net debt represents cash and cash equivalents and borrowings. Consolidated statement of recognised income and expensefor the 53 weeks ended 3 February 2007 53 weeks 52 weeks ended ended 3 February 2007 28 January 2006------------------------------- -------- -------- £m £m------------------------------- -------- -------- Exchange differences on translation offoreign operations (63.4) 35.7Effective portion of fair value movementson cash flow hedges 0.9 4.9Actuarial gain/(loss) on retirementbenefit obligation 16.2 (16.3)Deferred tax on items recognised in equity (5.5) 1.7------------------------------- -------- --------Net (expense)/income recognised directlyin equity (51.8) 26.0Transfer to initial carrying value ofinventory from cash flow hedges 0.8 (2.9)Profit for the financial period 141.5 130.8------------------------------- -------- --------Total recognised income & expenseattributable to shareholders 90.5 153.9------------------------------- -------- -------- Notes to the financial resultsfor the 53 weeks ended 3 February 2007 1. Basis of preparation This financial information has been prepared in accordance with InternationalFinancial Reporting Standards as adopted by the European Union ("Adopted IFRS").No adjustment would be required if the Group wished to assert compliance withIFRS as adopted by the International Accounting Standards Board for theaccounting periods presented in this announcement. This financial informationhas been prepared on the basis of the accounting policies set out in the AnnualReport & Accounts for the 52 weeks ended 28 January 2006 which are available onthe Group's website www.signetgroupplc.com. Whilst the financial information included in this preliminary announcement hasbeen prepared in accordance with Adopted IFRS, this announcement does not itselfcontain sufficient information to comply with Adopted IFRS. 2. Segmental information 2007 2006------------------------------- -------- -------- £m £m------------------------------- -------- -------- Sales by origin and destinationUK, Channel Islands & Republic of Ireland 482.5 469.6US 1,410.7 1,282.7------------------------------- -------- -------- 1,893.2 1,752.3------------------------------- -------- -------- Operating profit/(loss)UK, Channel Islands & Republic of Ireland - Trading 55.0 49.1 - Group function (1) (7.4) (8.0)------------------------------- -------- -------- 47.6 41.1US 173.8 167.1------------------------------- -------- -------- 221.4 208.2------------------------------- -------- -------- (1) Group function costs for 2006 included a net charge of £0.7 million relatingto property provisions. The Group's results derive from one business segment - the retailing ofjewellery, watches and associated services. 3. Other operating income Other operating income comprises interest receivable from the US in-house creditprogramme of £49.7 million (2006: £45.5 million) and foreign exchange losses of£1.0 million (2006: £0.8 million gains). 4. Finance income and expense 2007 2006------------------------------- -------- -------- £m £m------------------------------- -------- -------- Interest income 8.9 2.4Defined benefit pension scheme - expected return on scheme assets 7.8 6.9 - interest on pension liabilities (6.7) (5.7)------------------------------- -------- --------Finance income 10.0 3.6Finance expense (18.2) (11.4)------------------------------- -------- --------Net finance charge (8.2) (7.8)------------------------------- -------- -------- 5. Taxation 2007 2006------------------------------------ -------- -------- £m £m------------------------------------ -------- -------- Current taxation - UK 16.3 11.5 - US 56.3 60.0Deferred taxation - UK (1.5) 1.4 - US 0.6 (3.3)------------------------------------ -------- -------- 71.7 69.6------------------------------------ -------- -------- 6. Translation differences The exchange rates used for the translation of US dollar transactions andbalances in these accounts are as follows: 2007 2006------------------------------------ -------- -------- Income statement (average rate) 1.88 1.80Balance sheet (closing rate) 1.97 1.77------------------------------------ -------- -------- 7. Earnings per share 2007 2006------------------------------------ -------- -------- Earnings attributable to shareholders (£m) 141.5 130.8------------------------------------ -------- -------- Basic weighted average number of shares in issue (million) 1,727.6 1,736.6Dilutive effect of share options (million) 6.8 3.3------------------------------------ -------- --------Diluted weighted average number of shares (million) 1,734.4 1,739.9------------------------------------ -------- --------Earnings per share - basic 8.2p 7.5p- diluted 8.2p 7.5p------------------------------------ -------- -------- The number of shares in issue at 3 February 2007 was 1,713,553,809 (28 January2006: 1,738,843,382). 8. Dividends 2007 2006------------------------------------ -------- -------- £m £m------------------------------------ -------- -------- Final dividend paid of 2.8875p per share (2006: 2.625p) 50.1 45.5Interim dividend paid of 0.4434p per share (2006: 0.4125p) 7.7 7.2------------------------------------ -------- -------- 57.8 52.7------------------------------------ -------- -------- During 2006/07, a dividend of 2.8875p per share was paid on 7 July 2006 inrespect of the final dividend declared for the year ended 28 January 2006. Aninterim dividend for the year ended 3 February 2007 was also paid on 3 November2006. Subject to shareholder approval, a proposed dividend of 6.3170 cents per sharewill be paid on 6 July 2007 to those shareholders on the register of members atclose of business on 1 June 2007. This financial information does not reflectthis proposed dividend, which will be treated as an appropriation of retainedearnings in the year ending 2 February 2008. Following the redenomination of the Company's share capital on 5 February 2007,dividends are declared in US dollars. A letter will be sent today to allshareholders on the register asking whether they wish to receive this, andfuture dividends, in US dollars or pounds sterling. Shareholders will in futurebe able to change their election by contacting the Company's registrars. Forshareholders who wish to receive the proposed final dividend in pounds sterling,the actual amount will be calculated using the exchange rate as derived fromReuters at 4.00 p.m. on the record date of 1 June 2007. Under US tax legislation the rate of US federal income tax on dividends receivedby individual US shareholders from qualified foreign corporations is reduced to15%. Dividends paid by the Group to individual US holders of shares or ADSsshould qualify for this preferential tax treatment. The change in legislationonly applies to individuals subject to US federal income taxes and therefore thetax position of UK shareholders is unaffected. Individual US holders are urgedto consult their tax advisers regarding the application of this US legislationto their particular circumstances. 9. Share premium and reserves Other reserves Retained earnings -------------------- ------------------------------------------ Purchase Share Capital Special of own Hedging Translation Retained premium redemption reserves shares reserve reserve reserve(1) Total £m £m £m £m £m £m £m £m--------------- ------- ------ ------ ------ ------ ------ ------ ------ Balance at 29 January 2005 68.0 - 142.2 (7.9) - (118.0) 678.7 763.0 Recognised income and expense: - profit for the financial period - - - - - - 130.8 130.8 - cash flow hedges (net) - - - - 1.4 - - 1.4 - translation differences - - - - - 33.1 - 33.1 - actuarial loss (net) - - - - - - (11.4) (11.4)Dividends - - - - - - (52.7) (52.7)Equity-settled transactions (net) - - - - - - 4.1 4.1Share options exercised 2.3 - - 1.6 - - - 3.9Purchase of own shares by ESOT - - - (2.0) - - - (2.0)Shares issued to ESOTs 1.4 - - - - - (1.4) ---------------- ------- ------ ------ ------ ------ ------ ------ ------Balance at 28 January 2006 71.7 - 142.2 (8.3) 1.4 (84.9) 748.1 870.2Recognised income and expense: - profit for the financial period - - - - - - 141.5 141.5 - cash flow hedges (net) - - - - 1.2 - - 1.2 - translation differences - - - - - (63.4) - (63.4) - actuarial gain (net) - - - - - - 11.2 11.2Dividends - - - - - - (57.8) (57.8)Equity-settled transactions (net) - - - - - - 4.3 4.3Share options exercised 4.6 - - 1.1 - - (1.6) 4.1Purchase of own shares - 0.1 - - - - (33.7) (33.6)Shares issued to ESOTs 0.7 - - - - - (0.7) ---------------- ------- ------ ------ ------ ------ ------ ------ ------Balance at 3 February 2007 77.0 0.1 142.2 (7.2) 2.6 (148.3) 811.3 877.7--------------- ------- ------ ------ ------ ------ ------ ------ ------ (1) The retained reserve includes the unrealised surplus arising fromrevaluing freehold and long leasehold properties of £4.3 million (2005/06: £4.3million). 10. Accounts The financial information set out above does not constitute the Company'sstatutory accounts for the 53 weeks ended 3 February 2007 or the 52 weeks ended28 January 2006, but is derived from those accounts. Statutory accounts for the52 weeks ended 28 January 2006 have been delivered to the Registrar ofCompanies, whereas those for the 53 weeks ended 3 February 2007 will bedelivered following the Company's annual general meeting. The auditors havereported under Section 235 of the Companies Act 1985 on those accounts for eachof those periods; their reports were unqualified and did not contain a statementunder Section 237 (2) or (3) of that Act. 11. Impact of constant exchange rates and 53rd week The Group has historically used constant exchange rates to compareperiod-to-period changes in certain financial data. This is referred to as 'atconstant exchange rates' throughout this release. The Group considers this auseful measure for analysing and explaining changes and trends in the Group'sresults. The impact of the re-calculation of sales, operating profit, profitbefore tax, profit for the financial period and earnings per share at constantexchange rates and the impact of the 53rd week, including a reconciliation tothe Group's GAAP results, is analysed below. 53 weeks ended 3 February 2007 2006/07 2006/07 2005/06 on 52 week 52 week Growth Impact at Growth at basis at growth at at of constant constant constant constant actual exchange exchange exchange Impact exchange exchange exchange rate rates rates of 53rd rates rates 2006/07 2005/06 rates movement (non-GAAP) (non-GAAP) week (non-GAAP) (non-GAAP) £m £m % £m £m % £m £m % Sales by origin and destination:UK 482.5 469.6 2.7 - 469.6 2.7 (7.3) 475.2 1.2US 1,410.7 1,282.7 10.0 (54.6) 1,228.1 14.9 (20.8) 1,389.9 13.2-------------- ------- ------ ----- ------ ------ ------ ------ ------ ------ 1,893.2 1,752.3 8.0 (54.6) 1,697.7 11.5 (28.1) 1,865.1 9.9-------------- ------- ------ ----- ------ ------ ------ ------ ------ ------ Operating profit:UK - Trading 55.0 49.1 12.0 - 49.1 12.0 (1.8) 53.2 8.4 - Group function (7.4) (8.0) n/a - (8.0) n/a - (7.4) n/a-------------- ------- ------ ----- ------ ------ ------ ------ ------ ------ 47.6 41.1 15.8 - 41.1 15.8 (1.8) 45.8 11.4US 173.8 167.1 4.0 (7.1) 160.0 8.6 - 173.8 8.6-------------- ------- ------ ----- ------ ------ ------ ------ ------ ------ 221.4 208.2 6.3 (7.1) 201.1 10.1 (1.8) 219.6 9.2-------------- ------- ------ ----- ------ ------ ------ ------ ------ ------Profit before tax 213.2 200.4 6.4 (6.7) 193.7 10.1 (1.5) 211.7 9.3-------------- ------- ------ ----- ------ ------ ------ ------ ------ ------Profit for the financial period 141.5 130.8 8.2 (4.4) 126.4 11.9 (0.9) 140.6 11.2-------------- ------- ------ ----- ------ ------ ------ ------ ------ ------Earnings per share 8.2p 7.5p 9.3 (0.2)p 7.3p 12.3 (0.1)p 8.1p 11.0-------------- ------- ------ ----- ------ ------ ------ ------ ------ ------ 12. Post balance sheet event On 5 February 2007, the Company redenominated its share capital into US dollarsby way of a reduction in capital and subsequent issue and allotment of newdollar ordinary shares, which had been approved by shareholders on 12 December2006 and received Court approval on 31 January 2007. The nominal value of each dollar denominated ordinary share is 0.9 cent, andshareholders received one new dollar denominated ordinary share for eachsterling ordinary share held. The new shares have the same rights andrestrictions as the previously issued ordinary shares and the existing sharecertificates remain valid. Additionally, to comply with UK listing requirements, £50,000 of share capitalis required to be held denominated in pounds sterling to which end 50,000deferred shares of £1 each were allotted and issued, credited to the CompanySecretary of the Company on 5 February 2007. These shares have limited anddeferred rights. No of shares $m Authorised at 5 February 2007:Ordinary shares of 0.9 cent each 5,929,874,019 53.4Deferred shares of £1 each 50,000 0.1 Allotted, called up and fully paid at 5 February 2007:Ordinary shares of 0.9 cent each 1,713,533,809 15.4Deferred shares of £1 each 50,000 0.1 13. Reconciliation of Adopted IFRS to US GAAP Effect on profit for the financial period of differences between Adopted IFRSand US GAAP 53 weeks 52 weeks ended ended 3 February 28 January 2007 2006----------------------------------- --------- --------- £m £m----------------------------------- --------- --------- Profit for the financial period inaccordance with Adopted IFRS 141.5 130.8----------------------------------- --------- --------- Pensions (2.4) (1.8)Sale and leaseback transactions 0.8 0.8Returns provisions - (6.0)Share-based payment (2.4) 4.4Asset retirement obligations - (1.0)Taxation 0.1 5.0----------------------------------- --------- --------- US GAAP adjustments before change inaccounting principle (3.9) 1.4Cumulative effect of change inaccounting principle (3.2) ------------------------------------ --------- --------- Retained profit attributable toshareholders in accordance with USGAAP 134.4 132.2----------------------------------- --------- --------- Earnings per ADS in accordance with US GAAP - basic 77.8p 76.1p - diluted 76.1p 76.0pWeighted average number of ADSsoutstanding (million) - basic 172.8 173.7 - diluted 176.5 174.0----------------------------------- --------- --------- Effect on shareholders' funds of differences between Adopted IFRS and US GAAP 2007 2006----------------------------------- --------- --------- £m £m----------------------------------- --------- --------- Shareholders' funds in accordance with Adopted IFRS 886.3 878.9----------------------------------- --------- --------- Goodwill in respect of acquisitions (gross) 462.4 501.0Adjustment to goodwill (53.7) (59.7)Accumulated goodwill amortisation (142.0) (153.0)Sale and leaseback transactions (6.2) (7.1)Pensions - 14.4Depreciation of properties (2.5) (2.5)Revaluation of properties (4.3) (4.3)Share-based payment (10.8) -Taxation 1.7 (2.2)----------------------------------- --------- ---------US GAAP adjustments 244.6 286.6----------------------------------- --------- ---------Shareholders' funds in accordance with US GAAP 1,130.9 1,165.5----------------------------------- --------- --------- Reconciliation of shareholders' funds in accordance withUS GAAP Shareholders' funds at beginning of period 1,165.5 1,056.0Adoption of FAS 123(R) (2.8) ------------------------------------ --------- --------- 1,162.7 1,056.0Retained profit attributable to shareholders 134.4 132.2(Purchase)/issue of shares (net) (29.6) 1.9Increase/(decrease) in additional paid-in capital 1.2 (0.3)Dividends paid (57.8) (52.7)Other comprehensive income/(expense) 21.8 (18.1)Translation differences (85.0) 46.5----------------------------------- --------- --------- 1,147.7 1,165.5Adoption of FAS 158 (16.8) ------------------------------------ --------- ---------Shareholders' funds at end of period 1,130.9 1,165.5----------------------------------- --------- --------- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
SIG.L