9th Jun 2006 07:01
Fuller,Smith&Turner PLC09 June 2006 STRICTLY EMBARGOEDUNTIL 7AM FRIDAY 9 JUNE 2006 PRESS RELEASE FULLER, SMITH & TURNER P.L.C. Financial results for the 52 weeks ended 1 April 2006 Reported and restated under International Financial Reporting Standards (IFRS) Financial Highlights • Revenues up 12% to £145.1 million (2005: £129.5 million)• Adjusted profit before tax(1) up 5% to £18.7 million (2005: £17.8 million)• Profit before tax down 13% to £15.3 million (2005: £17.6 million)• Adjusted earnings per share(2) up 6% to 56.58p (2005: 53.13p)• Basic earnings per share(3) down 11% at 46.40p (2005: 52.41p)• Pre-exceptional EBITDA up 14% to £32.1 million (2005: £28.2 million)• Proposed final dividend per share(3) increased 8% to 14.12p (2005: 13.10p)• Exceptional integration costs of £2.9m, following acquisition of George Gale and Company Limited ("Gales") in December 2005 for an enterprise value of £91.8 million. Corporate Progress • Successful integration of Gales into the Fuller's estate• An excellent performance from Managed Pubs with profits up 30% and like for like sales up 3.6%• Tenanted Inns profits up an impressive 26%• A good performance from Hotels with trading profits up 8%• Beer Company has continued to perform well with profits up 6%• Net interest costs up £2.2m (1) Adjusted profit before tax is calculated on a pre IFRS basis and excludes exceptional gains and losses so that it is on a comparable basis to that reported last year.(2) Calculated using adjusted earnings of £12.7 million (2005: £11.9 million) and the same weighted average number of shares as for the basic earnings per share.(3) Calculated on the £1 'A' ordinary share. Commenting on the results, Anthony Fuller, Chairman of Fuller's, said: "It has been an exciting year for the Group with the undoubted highlight beingthe acquisition of Gales in December 2005 which, together with otheracquisitions made during the year, has increased the size of our pub retailestate by nearly 50%. Adjusted profits were up 5% to £18.7 million (2005: £17.8million), including a small contribution from Gales net of acquisition financecosts. Fuller's underlying businesses had a strong year with profits up in allareas. Following the successful integration of Gales, we are well positioned to achievesynergies for the combined businesses in the next financial year of £3.5m, £0.5million higher than first anticipated. The significantly larger estate willbring with it the benefits of economies of scale and, because of our retailstructure, it also gives us more opportunity to maximise returns whereappropriate by transferring pubs between the managed and tenanted estates. Inaddition, it presents excellent opportunities to expand our already successfulfree trade and wine divisions. We take a long term view and so continue to invest in our assets across allbusiness areas, including existing outlets and the Brewery, to maintainstandards and quality. In addition, we will continue our strategy of acquiringindividual units to further grow our estate. I expect to see progress in the newcombined business this year. " - Ends - For further information, please contact: Fuller Smith & Turner P.L.C.Press Office 020 8996 2175/2198/2048 Mobile 07831 299801/ 07748 657854 E-mail: [email protected] Turner, Chief Executive: Press 020 8996 2048Paul Clarke, Finance Director: Analysts 020 8996 2048 Merlin 020 7653 6620Paul Downes 07900 244 888 (mobile)Vanessa Maydon 07802 961 902 (mobile)Rebecca Penney 07795 108178 (mobile) Notes to Editors For an official photo please e-mail [email protected] and one will automatically be sent by return on receipt of your e-mail. Copies of this statement, the Preliminary Statement and results presentationwill be available on the Company's website, www.fullers.co.uk. Attached: Chairman's Statement Financial Highlights Unaudited Group Income Statement Unaudited Group Balance Sheet Unaudited Group Cash Flow Statement Other Unaudited Group Primary Statements Notes to the Accounts FULLER, SMITH & TURNER P.L.C. PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 1 APRIL 2006 CHAIRMAN'S STATEMENT Whatever You Do, Take Pride It has been an exciting year for the Group with the undoubted highlight beingthe acquisition of George Gale and Company Limited ("Gales") in December 2005which, together with other acquisitions made during the year, has increased thesize of our pub retail estate by nearly 50%. Adjusted profits were up 5% to£18.7 million (2005: £17.8 million), including a small contribution from Galesnet of acquisition finance costs. Fuller's underlying businesses had a strongyear with profits up in all areas. It should be noted that this uplift inprofits is despite comparing 52 weeks trading against 53 weeks last year.Including four months trading from Gales, turnover was up 12% to £145.1 million(2005: £129.5 million). Costs of integrating the Gales business have resulted inan exceptional charge for the year of £2.9 million. With profits on disposal ofproperties of £0.3 million in the current financial year (2005: £0.2 million),post exceptional pre-tax profits were £15.3 million compared to £17.6 millionlast year. Adjusted earnings per share increased 6% to 56.58p (2005: 53.13p). Theexceptional costs of integration resulted in basic earnings per share lower thanlast year at 46.40p (2005: 52.41p). Tax has been provided for at the expectedeffective rate for the full year of 31.9% on adjusted profits (2005: 32.7%).Pre-exceptional earnings before interest, tax, depreciation and amortisation(EBITDA) were up 14% to £32.1 million (2005: £28.2 million). On 2 December 2005, we acquired George Gale and Company Limited for anenterprise value of £91.8 million which was financed by new bank loanssubstantially increasing the Group's gearing. Since the acquisition, Galestrading results net of interest on acquisition finance, have made a smallcontribution to Group profits. Integration of the two businesses was completedbefore the end of the financial year. The brewery in Horndean has been closedand decommissioned and all brewing successfully transferred to Chiswick. In addition to the Gales acquisition, we have continued with our strategy ofselective acquisitions and bought nine new outstanding pubs during the year. Wealso completed the construction of an excellent pub in Hertfordshire and soldtwo sites in London. Excluding the acquisition of Gales, total capitalexpenditure for the year was £30.6 million (2005: £17.5 million) of which £18.5million (2005: £7.2 million) was on the nine pubs acquired and one pub builtduring the year. The current financial year is the first for which we are required to report ouraccounts under International Financial Reporting Standards (IFRS). The impactof IFRS on Fuller's profits is predominantly in relation to pension charges andshare based payments which reduced this year's reported pre-exceptional profitsby £0.8 million to £17.9 million (2005 £0.4m to £17.4m). A detailed restatementdocument of 2005 reported profits and assets is available on our websitewww.fullers.co.uk . We will be recommending the final dividend be increased by 8% to 14.12p per £1 'A' and 'C' ordinary share and 1.412p per 10p 'B' ordinary share, which will bepaid on Friday 28 July 2006 to shareholders on the Share Register as at 30 June2006. Fuller's Inns It has been a good year for Fuller's Inns with adjusted profits up 21% to £19.1million, before charging interest on acquisition finance, on turnover up 13% to£111.9 million. EBITDA at £26.2 million was up 18% (2005: £22.2 million). Managed Pubs The division has had an excellent year and, excluding Gales, turnover was up 5%against last year. On an uninvested like for like basis, turnover across themanaged estate increased by 3.6%. A clear and consistent strategy combined with a well motivated and strong teamhas been the catalyst for the very strong performance in this part of thebusiness. Our focus on delivering outstanding cask conditioned ales, greatwine, delicious food and exemplary service has not wavered and is underpinned byan extensive refurbishment programme, training, sales development and targetedacquisitions. This emphasis has helped to create a unique selling point and Iam delighted to report that this year food sales were up 13%, cask ale sales up8% and wine sales up 8%. In addition, a number of initiatives have been runthroughout the estate to encourage new customers into our pubs. This hasincluded our inimitable Brewing Director, John Keeling, touring the estate withhis Head Brewer's Road Shows where through tutored tastings he educates ourcustomers on the quality and variety of our cask conditioned ales. These haveextended to the ever-popular Beer and Food evenings where a range of beers ispaired with different foods to show how well they go together. Excluding the Gales deal, it was a good year for pub acquisitions with sevenhigh quality managed pubs acquired and our newly built and very successful PaperMill on the Grand Union Canal in Apsley, Hertfordshire, opening in the year. Wealso acquired the freehold of one of our previously leasehold sites, the HungDrawn & Quartered, by the Tower of London. These are all high quality assetsand are excellent additions to the estate. In April 2005, we sold two leaseholdbars and transferred three pubs to tenancy. These, plus 42 pubs from the Galesacquisition, have increased the number of pubs in the managed estate to 163 atthe year end. We continue to invest in the existing estate and, in addition to theacquisitions during the year, there were 17 major projects undertaken in theyear compared to 23 last year. All of our investment is aimed at maintainingthe quality and longevity of the estate underpinning our strategy to deliver apremium retail experience. Tenanted Inns It was another good year within the tenanted estate and, excluding Gales,profits were up 8% on turnover up 5%. Two acquisitions were made during theperiod and three pubs transferred from the managed estate. We now have 65tenants on 10-year leases representing just over half of the pre-Gales tenantedestate. The remaining pubs are on tenancy agreements and we anticipatemaintaining a split between the two styles of agreement. Including Gales, thetotal number of tenanted pubs now stands at 192. Fuller's Hotels Fuller's Hotels had a good year with trading profits up 8%. The average roomrate was up 3% to £70.56 and occupancy up 4%, which delivered an overall revparof £45.62, an increase of 7% over last year. Continuing the positive trend from last year, the Brigstow, Chamberlain andWhite Hart maintained their strong performance. Our newest addition, the RedLion Hotel in Hillingdon Village, has continued to grow its customer base andperformed very well throughout the year. The Gales Acquisition The acquisition of Gales has added 111 predominantly freehold pubs to the retailestate. They provide an excellent geographic extension to Fuller's trading inan area with good demographics. The pubs have a high food mix, representing 40%of turnover, and provide good opportunities for growing cask ale and wine sales.The enlarged estate will also maximise efficiencies within the largelyunchanged head office team and provide greater flexibility to transfer pubsbetween the managed and tenanted estate to increase returns. With the twoestates now fully integrated we expect the full annual synergies to be generatedin the current financial year. The Fuller's Beer Company The cask ale market continues to be challenging. However, the Fuller's BeerCompany again performed well with adjusted profits up 6% to £8.7 million (2005:£8.2 million). EBITDA at £10.2 million was up 5% from £9.7 million last year. Total beer sales were up 3% to 285,000 barrels during the year. Own beer salesat 198,000 barrels were level with last year despite losing a large pub companycustomer who was re-tied following a takeover. Much of the lost volume has beenreplaced with recent new on and off trade listings. Sales to the tied estatehave continued to grow and were up 9% against last year. This has been achievedthrough the close working relationship between the Beer Company and Fuller'sInns to ensure that our pubs deliver a unique range of great cask ales in thebest possible condition. London Pride continues to be the UK's top selling premium cask ale. Consistenthigh product quality and support for the brand through creative marketing haveled to an increased market share. Our newest beer, Discovery Blonde Beerlaunched in May 2005, has done exceptionally well in its first year. Servedcooler than traditional ales it has added incremental volume by attracting lagerdrinkers and has been supported by a comprehensive marketing campaign. Saleshave far exceeded our initial expectations. We have always been proud of thestrength and depth of our brands and were very pleased when both ESB and VintageAle won the gold medal in their respective categories in the Beer World CupAwards in March. The Wine Division has had yet another good year. It continues to make anincreasingly valuable contribution to the business with profits up 15% comparedto last year. Our agency business is expanding and now includes wines fromChile, New Zealand, Australia, South Africa and Spain as well as an excellentChampagne. Evidence of the quality and range of our wines can be seen in thegrowth of sales to our tied estate which were up 5% and also in the free tradewhich has seen wine volumes rise 6% over the last year. We continue to invest in the Brewery and earlier in the year we completed the£2.1 million development of the kegging line. This project has furtherautomated the kegging process leading to improved quality control and increasedefficiency in the Brewery, reducing costs in the long term. This investment hasalready proved its worth by being able to handle the increased volumes generatedby the Gales acquisition. The Gales ales are being successfully brewed in Chiswick to customer acclaim andtheir brands are now part of the Fuller's portfolio. This has allowed us toclose and decommission the brewery in Horndean reducing costs and increasingsynergies. We are retaining a distribution hub in Horndean to service thesouthern section of our now much larger estate, including some of our customerspreviously serviced from Chiswick. The additions to our estate together withthe enlarged trading area also present excellent opportunities to expand ouralready successful free trade and wine divisions. I am delighted that the progress made in every area of the business culminatedin the winning of the Publican Awards 2006 "Regional Brewer of the Year". Ifeel this is just reward for the efforts of every member of the team. Prospects Following the successful integration of George Gale and Company Limited, we arewell positioned to achieve synergies for the combined businesses in the nextfinancial year of £3.5m, £0.5 million higher than first anticipated. Thesignificantly larger estate will bring with it the benefits of economies ofscale and, because of our retail structure, it also gives us more opportunity tomaximise returns where appropriate by transferring pubs between the managed andtenanted estates. In addition, it presents excellent opportunities to expand ouralready successful free trade and wine businesses. All parts of the business continue to do well. Focused strategies together witha well motivated and strong team have delivered good bottom line growth acrossour managed and tenanted pub estates and hotels, and we expect to see thiscontinue during the year. Our beer brands are extremely well positioned toperform positively in a competitive market. Our portfolio of beers is second tonone and has been further enhanced through the addition of the Gales brands.The larger retail estate and the additional reach it brings, provide excitinggrowth potential for both our wines and free trade businesses. Other key brandsare in good growth with Discovery Blonde Beer doing particularly well, exceedingall expectations in its first year. Further development of existing listings andbenefits from the enlarged estate will help drive forward future growth. We take a long term view and so continue to invest in our assets across allbusiness areas, including existing outlets, new pubs and the Brewery, tomaintain standards and quality. In addition, we will continue our strategy ofacquiring individual units to further grow our estate. I expect to see progressin the new combined business this year. A.G.F. Fuller CBEChairman9 June 2006 FULLER SMITH & TURNER P.L.C.FINANCIAL HIGHLIGHTSFOR THE 52 WEEKS ENDED 1 APRIL 2006 52 weeks to 53 weeks to 1 April 2 April Change 2006 2005(1) 2006/2005 £000 £000____________________________________________ ____________ ____________ ____________ Revenue 145,148 129,492 12.1%Profit before tax(2) 15,310 17,620 -13.1%Adjusted profits(3) 18,705 17,814 5.0%Pre-exceptional EBITDA(4) 32,149 28,234 13.9%Basic earnings per share(5) 46.40p 52.41p -11.5%Adjusted earnings per share(6) 56.58p 53.13p 6.5%Dividend per share(5) 19.75p 18.46p 7.0%Net assets per share(5) £6.97 £6.81 2.3%Gearing ratio 83.5% 14.7% N/A____________________________________________ ____________ ____________ ____________ (1) The 2 April 2005 results have been restated due to the adoption of International Financial Reporting Standards ("IFRS") - see Note 1. (2) Profit before tax for the year to 1 April 2006 now includes the cost of preference dividends. In accordance with the option available on first time adoption of IAS 32 and IAS 39 (which is explained further in Note 1), the comparative numbers have not been restated. (3) Adjusted profit is the profit before tax excluding exceptional losses of £2.6m (2005: gain £0.2m) and IFRS adjustments. (4) Pre-exceptional earnings before interest, tax, depreciation, and amortisation. (5) Calculated on the £1 "A" ordinary share. (6) Calculated using adjusted profits after tax and the same weighted average number of shares as for the basic earnings per share. FULLER SMITH & TURNER P.L.C.GROUP INCOME STATEMENTFOR THE 52 WEEKS ENDED 1 APRIL 2006 52 weeks to 53 weeks to 1 April 2 April 2006 2005 £000 £000 REVENUE 145,148 129,492 Operating costs (122,723) (109,806) -------------- --------------OPERATING PROFIT 22,425 19,686 Profit on disposal of properties 265 232Reorganisation costs (2,907) - Interest receivable 104 336Finance costs (4,577) (2,634) -------------- --------------PROFIT BEFORE TAX 15,310 17,620Tax (4,932) (5,755) -------------- --------------PROFIT AFTER TAX 10,378 11,865Preference dividends - (120) -------------- --------------ATTRIBUTABLE TO EQUITY SHAREHOLDERS 10,378 11,745 ============== ============== EARNINGS PER SHAREPer £1 'A' ordinary share or unquoted £1 'C' ordinary shareBasic 46.40p 52.41pDiluted 45.89p 51.94pAdjusted 56.58p 53.13p Per unquoted 10p 'B' ordinary shareBasic 4.64p 5.24pDiluted 4.59p 5.19pAdjusted 5.66p 5.31p The results, and earnings per share, are all in respect of the continuing andtotal operations of the Company. The 2 April 2005 results have been restated due to the adoption of InternationalFinancial Reporting Standards ("IFRS") - see Note 1 - and to reclassify intereston retirement benefit obligations, previously reported under operating costs, tofinance costs. FULLER SMITH & TURNER P.L.C.UNAUDITED BALANCE SHEET1 APRIL 2006 Group Group 2006 2005 £000 £000NON-CURRENT ASSETSGoodwill 24,493 -Property, plant and equipment 315,985 201,226Investment properties 8,304 1,625Other non-current assets 1,006 737Deferred tax assets 7,579 4,976 -------------- --------------TOTAL NON-CURRENT ASSETS 357,367 208,564 -------------- -------------- CURRENT ASSETSInventories 5,484 4,426Trade and other receivables 14,647 13,698Cash and cash equivalents 1,370 4,610 -------------- --------------TOTAL CURRENT ASSETS 21,501 22,734 -------------- --------------CURRENT LIABILITIESBank overdraft 286 -Bank loans 2,500 -Trade and other payables 34,763 23,476Current tax payable 1,391 2,306 -------------- --------------TOTAL CURRENT LIABILITIES 38,940 25,782 -------------- --------------NON-CURRENT LIABILITIESBank Loans 97,000 -Debenture stock 27,016 27,006Loan notes 2,971 -Preference shares 1,600 -Retirement benefit obligations 21,646 13,337Deferred tax liabilities 34,036 12,890 -------------- --------------TOTAL NON-CURRENT LIABILITIES 184,269 53,233 -------------- --------------NET ASSETS 155,659 152,283 ============== ============== CAPITAL AND RESERVESShare capital 22,870 22,831Preference shares 1,600 -Share premium account 4,289 4,150Capital redemption reserve 2,902 2,902Treasury shares (4,662) (3,530)Retained earnings 130,260 124,330 -------------- --------------TOTAL EQUITY 155,659 152,283 ============== ============== The 2 April 2005 figures have been restated due to the adoption of InternationalFinancial Reporting Standards ("IFRS") - see Note 1. FULLER SMITH & TURNER P.L.C.UNAUDITED GROUP CASH FLOW STATEMENTFOR THE 52 WEEKS ENDED 1 APRIL 2006 52 weeks to 53 weeks to 1 April 2 April 2006 2005 £000 £000 Group operating profit 22,425 19,686Depreciation 9,419 8,486Impairment of properties 175 -Profit on disposal of property plant and equipment 130 62Reorganisation costs (2,907) -Difference between pension charge and cash paid (557) (448)Share-based payment charges 990 839Change in trade and other receivables (1,148) (1,352)Change in inventories 77 (157)Change in trade and other payables 1,790 (677) -------------- --------------CASH GENERATED FROM OPERATIONS 30,394 26,439 Tax paid (4,814) (5,413) -------------- --------------CASH GENERATED FROM OPERATING ACTIVITIES 25,580 21,026 -------------- --------------CASH FLOW FROM INVESTING ACTIVITIESPurchase of property, plant and equipment (21,561) (18,503)Proceeds from sale of property, plant and equipment 3,461 674Interest received 104 336Cash inflow from movements in current asset investments - 1,012Acquisition of subsidiaries (89,645) - -------------- --------------NET CASH FLOW FROM INVESTING ACTIVITIES (107,641) (16,481) -------------- -------------- CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of share capital 178 413Purchase of own shares (1,864) (2,751)Sale of treasury shares 256 141Interest paid (3,316) (2,623)Preference dividends paid (120) (120)Equity dividends paid (4,183) (3,956)Increase in bank loans 87,584 - -------------- -------------- NET CASH USED IN FINANCING ACTIVITIES 78,535 (8,896) -------------- --------------NET MOVEMENT IN CASH AND CASH EQUIVALENTS (3,526) (4,351)Cash and cash equivalents at the start of the year 4,610 8,961 -------------- --------------CASH AND CASH EQUIVALENTS AT THE YEAR END 1,084 4,610 ============== ============== The presentation of the 2 April 2005 figures have been restated due to theadoption of International Financial Reporting Standards ("IFRS") - see Note 1. STATEMENT OF RECOGNISED INCOME AND EXPENSES 52 weeks to 53 weeks to 1 April 2 April 2006 2005 £000 £000 Reduction in deferred tax liability due to indexation 212 537Net actuarial losses on pension schemes (991) (1,671) -------------- --------------Income and expenses recognised directly in equity (779) (1,134)Profit attributable to ordinary shareholders 10,378 11,745 -------------- --------------TOTAL RECOGNISED INCOME AND EXPENSES FOR THE PERIOD 9,599 10,611 ============== ============== The presentation of the 2 April 2005 figures have been restated due to theadoption of International Financial Reporting Standards ("IFRS") - see Note 1. FULLER SMITH & TURNER P.L.C.NOTES TO THE FINANCIAL STATEMENTSFOR THE 52 WEEKS ENDED 1 APRIL 2006 1. PRELIMINARY STATEMENT The financial information set out below was approved by the Board on 9 June2006. This statement does not constitute full financial statements as defined by S.240of the Companies Act 1985. Full financial statements for the year ended 2 April2005, including an unqualified auditors' report and which do not contain astatement under section 237 (2) or (3) of the Companies Act 1995, have beendelivered to the Registrar of Companies. The unaudited financial information inthis statement has been prepared in accordance with applicable accountingstandards. The accounting policies used have been applied consistently and aredescribed in full in the statutory financial statements for the year ended 1April 2006, which will be mailed to shareholders on or before Tuesday 27 June2006 and delivered to the Registrar of Companies. The financial statements willalso be available from the Company's registered office: Griffin Brewery,Chiswick, London W4 2QB, and on its website, from that date. This is the first year in which the Group has prepared its financial statementsunder International Financial Reporting Standards ("IFRS"), and the comparativeshave been restated from UK Generally Accepted Accounting Policies ("UK GAAP") tocomply with IFRS. The Group published restated IFRS financial statements for2005, together with the Group's opening IFRS balance sheet as at 28 March 2004,and reconciliations between UK GAAP and IFRS, on its website, on 25 November2005. On the same day, the Group also published on its website a summary ofsignificant accounting policies under IFRS. Under IFRS, revenue, previously known as turnover, includes only the grossinflows of economic benefits received and receivable by the enterprise on itsown account. Amounts collected on behalf of third parties such as excise dutyare not economic benefits which flow to the enterprise and do not result inincreases in equity. Therefore, they are excluded from revenue. This changedoes not apply to retailers who buy their goods duty paid and do not have toaccount to the government for duty. Excise duty has therefore been removed fromall revenue except for sales by the Inns division directly to its own retailcustomers. 2. SEGMENTAL ANALYSIS Fuller's Fuller's Beer52 weeks to 1 April 2006 Inns Company Unallocated Total £000 £000 £000 £000RevenueSales to third parties 111,911 51,285 163,196Inter-segment sales (18,048) (18,048) ------------------ ------------------ ------------------ ------------------Segment Revenue 111,911 33,237 145,148 ------------------ ------------------ ------------------ ------------------ Operating profit 18,984 8,445 (5,004) 22,425Profit on disposal of properties 265 265Reorganisation costs (470) (975) (1,462) (2,907)Net finance costs (4,473) ------------------Profit before tax 15,310 ------------------Assets and LiabilitiesSegment assets 329,025 42,159 7,684 378,868Segment liabilities (47,562) (18,872) (156,775) (223,209) Fuller's Fuller's Beer53 weeks to 2 April 2005 Inns Company Unallocated Total £000 £000 £000 £000RevenueSales to third parties 98,651 46,040 144,691Inter-segment sales (15,199) (15,199) ------------------ ------------------ ------------------ ------------------Segment Revenue 98,651 30,841 129,492 ------------------ ------------------ ------------------ ------------------ Operating profit 15,871 8,194 (4,379) 19,686Profit on disposal of properties 232 232Net finance costs (2,298) ------------------Profit before tax 17,620 ------------------Assets and LiabilitiesSegment assets 187,852 31,210 12,236 231,298Segment liabilities (21,518) (13,408) (44,089) (79,015) * Unallocated net liabilities represent the net of dividends, debentures,corporation tax, cash at bank and assets held under central management. 3. TAXATION 2006 2005 £000 £000Tax on profit on ordinary activities Tax charged in the income statement Current income tax:UK Corporation tax: 4,548 5,124Amounts underprovided in previous years 63 5 ------------ ------------Total current income tax 4,611 5,129 ------------ ------------Deferred tax:Origination and reversal of timing differences 321 626 ------------ ------------Total deferred tax 321 626 ------------ ------------Total tax charged in the income statement 4,932 5,755 ------------ ------------Tax relating to items credited to equity:Deferred taxReduction in deferred tax liability due to indexation (212) (537)Actuarial losses on pension schemes (425) (715) ------------ ------------Tax credit in the statement of recognised income and expense (637) (1,252) ------------ ------------Reconciliation of the total tax chargethe UK of 30% (2005 - 30%). The differences are reconciled below: 2006 2005 £000 £000 Profit from continuing operations before taxation 15,310 17,620 Accounting profit multiplied by the UK standard rate of corporation tax of 30% 4,593 5,286Expenses not deductible for tax purposes 729 421Tax underprovided in previous years 63 5Other (453) 43 ------------ ------------Tax expense reported in the income statement 4,932 5,755 ------------ ------------ 4. EARNINGS PER SHARE 2006 2005 £000 £000 Profit attributable to equity shareholders 10,378 11,745IFRS adjustments net of tax 427 323Reorganisation costs net of tax 2,035 -Profit on disposal of properties net of tax (185) (162) ------------ ------------Adjusted earnings attributable to equity shareholders 12,655 11,906 ------------ ------------ Number NumberWeighted average share capital 22,365,000 22,411,000Dilutive outstanding options 250,000 202,000 ------------ ------------Adjusted weighted average share capital 22,615,000 22,613,000 ------------ ------------ £1 'A' ordinary shares or unquoted £1 'C' ordinary shares Pence PenceBasic earnings per share 46.40 52.41Diluted earnings per share 45.89 51.94Adjusted earnings per share 56.58 53.13 Unquoted 10p 'B' ordinary shares Pence PenceBasic earnings per share 4.64 5.24Diluted earnings per share 4.59 5.19Adjusted earnings per share 5.66 5.31 The earnings per share calculation is based on earnings from continuing totaloperations (after deducting preference dividends) and on the weighted averageordinary share capital. Adjusted earnings per share are calculated on a preIFRS basis and exclude exceptional gains and losses so that they are on acomparable basis to those reported last year and on the same weighted averageordinary share capital as for the basic earnings per share. 5. DIVIDENDS PAID AND PROPOSED 52 weeks to 53 weeks to 1 April 2 April 2006 2005 £000 £000Declared and paid during the year:Equity dividends on ordinary shares: Final dividend for 2005: 13.10p (2004: 12.21p) 2,923 2,753 Interim dividend for 2006: 5.63p (2004: 5.36p) 1,260 1,203 ------------ ------------ 4,183 3,956 ------------ ------------Dividends on cumulative preference shares 120 120 ------------ ------------Dividends paid 4,303 4,076 ============ ============Proposed for approval at the AGM: Final dividend for 2006: 14.12p (2005: 13.10p) 3,148 2,923 ============ ============ The pence figures above are for the £1 'A' ordinary shares and unquoted £1 'C' ordinary shares. Theunquoted 10p 'B' share carry dividend rights of 1/10 of those applicable to the £1 'A' ordinary shares.Own shares held in the Fuller, Smith & Turner P.L.C. Employee Share Trust 1998 do not qualify fordividends as the trustees have waived their rights. Dividends are also not paid on shares held astreasury shares. 6. RECONCILIATION OF MOVEMENTS IN TOTAL EQUITY 52 weeks to 53 weeks to 1 April 2 April 2006 2005 £000 £000 Opening total equity 152,283 146,986Adjustments relating to the adoption of IAS 32 & 39 (1,600) - ------------ ------------Opening equity restated 150,683 146,986 ------------ ------------ Net actuarial loss on pension schemes (991) (1,671)Reversal of deferred tax liability due to indexation 212 537 ------------ ------------Net losses not recognised in Income Statement (779) (1,134) ------------ ------------Retained profit for the year 10,378 11,745Dividends declared and paid (4,183) (3,956)Issue of ordinary share capital 178 413Cost of share based payments 990 839Own shares purchased including treasury shares (1,864) (2,751)Shares released including treasury shares 256 141 ------------ ------------Net other movements in the period 5,755 6,431 ------------ ------------Closing total equity 155,659 152,283 ============ ============ 7. SHAREHOLDERS' INFORMATION Shareholders who converted their £1 'A' ordinary shares to £1 'C' ordinaryshares are reminded that they have 30 days from 9 June 2006 should they wish toreconvert those 'C' shares back to 'A' shares. The next available opportunityafter that will be November 2006. For further details please contact theCompany's registrars, Computershare on 0870 702 0003. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Fuller Smith & Turner