12th Mar 2007 07:02
Lookers PLC12 March 2007 12 March 2007 LOOKERS plc PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006 The Board of Lookers is delighted to announce its audited preliminary resultsfor the year ended 31 December 2006. Commenting on another record set of results for Lookers, Ken Surgenor, ChiefExecutive said: 'The continuing success of Lookers is a testament to the effectiveness of thestrategy we have been implementing for a number of years. We remain committedto broadening our revenue streams, further developing our close relationshipswith our manufacturer partners and maximising the performance and efficienciesof our franchises through our decentralised management structure.' Financial Highlights • Strong growth across all areas of the business with turnover up 16 per cent to £1.43 billion (2005: £1.23 billion) • Adjusted* profit from operations up 35 per cent to £36.6m (2005: £27.1m) • Adjusted* operating margin up 18 per cent to 2.6 per cent (2005: 2.2 per cent) • Adjusted* profit before tax up 47 per cent to £26.4m (2005: £18.0m) • Profit on ordinary activities before tax up 30 per cent to £21.4m (2005: £16.4m) • Adjusted* earnings per share up 41 per cent to 10.63p (2005: 7.54p) • Basic earnings per ordinary share up 25 per cent to 8.13p (2005: 6.53p) • Total dividend up 15 per cent to 3.50p (2005: 3.05p) • Strong cash flow from operations of £55.7m against £50.2m last year. * Adjusted pre exceptional items, goodwill impairment and amortisation ofintangible assets (see income statement). All per share figures are adjusted for the share split on a 5 for 1 basis Operational Highlights • New car retail sales like for like up 5 per cent against a market down 4 per cent • Used car retail sales like for like up 6 per cent • Added 18 Prestige outlets with key manufacturer partners • New car sales represented only 27 per cent of gross profit in line with strategy to broaden revenue streams • Completion of major aftermarket parts distribution facility in Sheffield An analysts' briefing will be held at the offices of Hudson Sandler at 29 ClothFair, London EC1A 7NN at 9.30 a.m. on 12 March 2007. Enquiries: Lookers Telephone: 020 7796 4133Ken Surgenor, Chief Executive (on Monday 12 March only, and on 0161 291 0043 thereafter)David Dyson, Finance Director Hudson Sandler Telephone: 020 7796 4133Andrew Hayes/Nick Lyon/Kate Hough High resolution photographs will be available to media at www.vismedia.co.uk from 12.30pm. CHAIRMAN'S REVIEW I am pleased to report that Lookers has continued to achieve excellent progressin 2006 resulting in significant growth in profits, earnings and dividends.These results have been achieved both through strong organic growth across ourcomplementary business streams and also through the successful integration ofacquisitions across the business. FINANCIAL HIGHLIGHTS AND DIVIDEND The Group has continued to grow both organically and by acquisition across allour businesses. Turnover has advanced by 16 per cent to over £1.4 billion.Adjusted profit before tax at £26.4 million has increased by 47 per cent against£18.0 million last year and is comfortably ahead of our own forecast of £25.1million announced in April 2006. Strong cash flow from operations of £55.7million was generated and year end gearing remained flat at 79 per cent despitespending nearly £50 million on acquisitions and investment in new andrefurbished facilities. Our new retail and used retail sales continue to outperform the market and haveincreased by 5 per cent and 6 per cent respectively. Given this very strong performance and our confidence in our future prospects,the Board is recommending a final dividend of 2.2p, making a total dividend forthe year of 3.5p, an increase of 15 per cent over last year. CORPORATE DEVELOPMENTS Despite the significant corporate distraction in the early part of 2006, weremained focused on growing the business. During the year we acquired seventeenprestige outlets including Chrysler Dodge and Jeep, Land Rover and Lexus. Wewere delighted to be awarded a Mercedes Benz franchise market area which we nowoperate in four locations. We were also awarded the Land Rover franchise forGlasgow North, bringing the total of additional prestige outlets to eighteen.These developments further strengthen the Group's franchise portfolio,particularly in the South East of England. In line with our stated strategy, we continue to develop complementary businessstreams alongside our franchise business. In January 2006 we launched our thirdUsed Car Supermarket in the South East in Essex. In the second half of 2006 weacquired five acres in a key location in Sheffield to develop a major facilityto replace the existing premises which our parts distribution business, FPS, hadoutgrown. This facility became operational in the last few weeks of December2006 as planned. We remain ambitious to grow our businesses and will continue to make soundacquisitions and investments which are earnings enhancing and deliver ourrequired level of returns. THE FUTURE Lookers is well positioned to continue to make good progress in today's tradingenvironment. Our markets offer excellent growth prospects and remain fragmented.Due to the broad revenue streams we enjoy, benefiting from strong contributionsfrom both used cars and aftersales as well as new cars, a small downturnforecast in the new car market over 2007 will not detract from our ambitiousgrowth plans. In recent years Lookers has consistently outperformed the new carmarket and we are confident that this will continue into 2007. January is the key registration month in Northern Ireland and 2007 has seen ourCharles Hurst business record its best ever start to the year. Moreover, thenumber of new vehicles delivered so far in March and the orders still to bedelivered by the dealerships on the mainland UK indicates a good performance forMarch leading to a strong first quarter for the year. I would like to take this opportunity to thank all the team at Lookers for theirunstinting support in what was an eventful year. The whole Board recognises thatthese results could not have been achieved without their hard work anddedication. I would also like to thank our Shareholders for supportingmanagement during this period. As a result, we have been able to deliverexcellent returns to our shareholders over the year. As a team, we havedelivered an excellent performance which firmly reinforces our position as oneof the leading consolidators in the motor retail industry. Fred Maguire retired as Chairman of the Board after more than twenty years withthe Group and I wish him well in his retirement. On a personal note I was delighted to be welcomed onto the Board in September2006, during an exciting period of growth and development for Lookers and lookforward to contributing to the Group's future success. Phil White Chairman 12 March 2007 CHIEF EXECUTIVE'S REVIEW I am pleased to report these record results and excellent performance,reflecting the continued implementation of our successful strategy, includingthe development of complementary business streams, close relationships withmanufacturer partners and a de-centralised management structure which deliverssuperior returns from the franchises we operate. We continue to develop all three channels of our business through investment inexisting operations and through selected acquisitions and as a result we nowhave one of the broadest revenue streams in the industry which enables us tooutperform the market against the background of a slightly reduced new carmarket. This is a proven strategy we have been pursuing for some time to broaden ourrevenue streams, to open up new growth opportunities whilst reducing ourreliance on the new car market. As a result, new car sales represented only 27per cent of gross profit, with used cars and aftersales representing 20 per centand 53 per cent respectively. ACQUISITIONS The fragmented nature of the motor retail and parts distribution industrycontinues to offer us significant opportunities to develop our business andLookers' proven ability to successfully integrate acquisitions and retain localmanagement remains key to the Group's success. In March 2006 we acquired six Premier Automotive Group ("PAG") dealerships fromHR Owen for a consideration of £5.4 million. These comprise two Jaguar, two LandRover and two Volvo dealerships located in Colchester, Ipswich and Bury StEdmunds. The acquisition was in line with the Group's strategy to expand itsexisting PAG territory and the business has been successfully integrated and isperforming to expectations. In August, we acquired a Chrysler, Jeep and Dodge outlet in Liverpool for aconsideration of £1.3 million including the freehold premises. In September we acquired a further 10 dealerships from HR Owen for a totalconsideration of £20.9 million. The acquisition includes four Mercedes Benz, twoLand Rover, two Lexus and two Chrysler, Jeep and Dodge outlets in the South Eastand has significantly improved our mix of prestige brands and re-introducedMercedes Benz into our franchise portfolio. The integration of these tenoutlets has now been completed and we are delighted that they are performing inline with expectations. FINANCIAL COMMENTARY AND DIVIDEND Turnover has increased to £1.43 billion from £1.23 billion last year,representing growth of 16 per cent. We have continued to drive operatingefficiencies and cost reductions across the business whilst both integratingacquisitions and growing organically. Consequently we have achieved animprovement in the adjusted operating margin from 2.2 per cent to 2.6 per cent,an increase of 18 per cent. I am delighted to be able to report a 35 per cent increase in adjusted profitfrom operations from £27.1 million to £36.6 million. Even more pleasing is thefact that our underlying businesses grew very strongly contributing £8 millionof this increase. Profit before exceptionals, impairment of goodwill and amortisation ofintangible assets increased by an impressive 47 per cent to £26.4 million (2005:£18.0 million), generating a 41 per cent increase in adjusted earnings per shareof 10.63p (2005: 7.54p). Dividend Following last year's excellent performance and reflecting our continuedconfidence in the Group's prospects, the Board is proposing a final dividend of2.20p, bringing the total dividend for the year to 3.50p. This 15 per centincrease on 2005 reflects our commitment to a more progressive dividend policy,as outlined previously. Subject to final approval at the Annual General Meeting,the final dividend will be paid on 31 May 2007 to shareholders on the registerat 13 April 2007. OPERATING REVIEW Franchised Business We are delighted to have continued to outperform the market across our franchisebusiness. Lookers' new car retail sales were ahead by 5 per cent against amarket down 4 per cent. This strong performance reflects a combination of our broad base ofmanufacturing partners with whom we have close relationships, a wide geographicspread across the United Kingdom and our decentralised management structurewhich empowers key franchise directors and local management. On the volume side of the business, Vauxhall has had a strong year despite thedisruptions from an ongoing refurbishment programme across a number of ourVauxhall outlets. In particular, at St Helens we demolished the existingfacility and completely rebuilt it to provide a far better customer experiencein our showroom, used car display and service capabilities. We currently have 18Vauxhall outlets operating across the significant market areas of the NorthWest, Midlands and Northern Ireland. During 2006 we signed a franchise partnership with the Korean value brand Kia,introducing the franchise to the Group under both the Lookers and Charles Hurstbrands and opened dealerships in Macclesfield, Stockport and Belfast. Throughthese dealerships we have recently launched the new Kia 'C sector Cee'd' model,the first Kia model to be built in Europe. This partnership complements ourexisting portfolio of franchises and we are looking forward to building upon ourrelationship with Kia Motors in the future. Premier Auto Group ("PAG") has had a good year and we now represent PAG across25 outlets throughout the significant market areas of the South East, West ofScotland and Northern Ireland. These include the 8 dealerships we acquiredduring the year from HR Owen which have complemented our PAG franchises in theSouth East. These dealerships have been successfully integrated and are tradingin line with expectations. 2006 has seen a number of developments across our PAG sites. In Scotland we wereawarded the Land Rover franchise for Glasgow from 1 July. We redeveloped ourexisting solus Jaguar site into an excellent facility in Glasgow under theTaggarts brand to also incorporate both Land Rover and Volvo. The redevelopmentof the Motherwell site has also been completed on time and according toschedule, resulting in a multi-franchise site accommodating Hyundai, Jaguar,Mazda and Volvo. Toyota and Lexus have performed well during the year with Toyota benefiting fromthe refurbishment of six of its outlets in 2005, which has generated a highercustomer footfall. Charles Hurst has once again had an excellent year. It now includes 26dealerships representing 18 brands. The Charles Hurst Specialist Car Divisioncontinues to go from strength to strength and highlights for the year includedthe launch of the Bentley Continental GTC, Ferrari 599 GTB and more recently theMasarati Quattroporte automatic. In September 2006 we took the decision tointroduce the Charles Hurst brand into England. Two of our London based LandRover dealerships, acquired from HR Owen in September 2006 have been integratedunder the Charles Hurst name. Charles Hurst has been associated with Land Roversince its inception and is unrivalled in terms of heritage and is therefore feltto be a more suitable brand for the London Land Rover dealerships. Used Car Supermarkets Our expansion into the Used Car Supermarket business in 2005 was in line withour stated strategy of broadening our revenue streams by expansion intocomplementary business areas. A growing number of the vehicles sold by theseoutlets are sourced from our existing franchise network, vehicles which wouldotherwise have been traded at auction. In January 2006 we opened our third site in the South East which was agreenfield location. We now have a presence in the South East, South West andthe Midlands. In addition, we rationalised all three sites onto a standardplatform. The result from our used car supermarkets was below our expectations,however, as the new site matures and the impact of this rationalisation togetherwith the recent strengthening of the management team takes effect, we expect thebenefits to flow through from the second quarter of 2007. Parts Distribution Our parts distribution business continues to exceed expectations and has grownboth turnover and profits. FPS Distribution ("FPS") has achieved an excellent performance during the yearwith profit from operations up 11 per cent on last year, despite the disruptionin the last quarter of relocating our national distribution centre coupled withdual running costs. We have previously announced the development of an 80,000 square foot footprintpurpose built facility in Sheffield to enable the expansion of the distributionside of the business. This facility was completed and became fully operationalfrom December 2006. With a double mezzanine floor it provides 140,000 squarefoot of storage and is capable of being further expanded to over 200,000 squarefoot of storage capacity. In October 2006, FPS was awarded the 'UK Supplier of the Year' award at the CATAwards. This award is testament to the division's excellent performance and Itake this opportunity to congratulate the FPS team on yet another successfulyear. Apec, our braking parts specialist, has also had an excellent year, performingahead of expectations and we have recently completed a warehouse reorganisationfor this part of the business to support further sales growth in 2007. We intendto launch a new range of hydraulic brake parts on to the market in the secondquarter of 2007 and this should lay down the platform for additional growth inthe second half of 2007, and more significantly in 2008. THE BOARD There have been several changes to the composition of the Board over the lasttwelve months. In April 2006, Neil Clyne resigned as a non Executive Directorafter serving six years, following the disposal of GE's entire holding in theGroup. In September 2006 Fred Maguire stepped down as Chairman and from theBoard and in January 2007, David Blakeman retired as Director and CompanySecretary, both of whom had been with the Group for over twenty years. On behalf of my colleagues on the Board, I would like to thank them for theirvaluable contribution to the Group's growth, particularly in the last few years. Tony Bramall, who has a wealth of motor industry knowledge, was appointed to theBoard as a non Executive Director at an extraordinary general meeting in June2006 and Phil White was appointed Chairman, replacing Fred Maguire, in September2006. We welcome Phil and Tony to the Board during this exciting period of the nextstage of the growth of the Group. OUTLOOK 2007 has started positively. In Northern Ireland, January is a key month for newcar registrations and I am delighted to report a strong performance ahead ofwhat was a solid performance in 2006. The critical month of March has started very well with new cars delivered in thefirst week of March ahead of last year's on a like for like basis. We have a number of acquisition opportunities under review. We intend to useour strong balance sheet and cash flow to make suitable and earnings enhancingacquisitions across all three business areas. Our continuing success is a testament to the effectiveness of our approach andthe strategy we have being implementing for a number of years. Going forward weremain committed to broadening our revenue streams, further developing our closerelationships with our manufacturer partners and maximising the performance andefficiencies of our franchises through our decentralised management structureand market area strategy. We look forward to the year with confidence. Ken Surgenor Chief Executive 12 March 2007 FINANCE DIRECTOR'S REVIEW 2006 Turnover has increased by 16 per cent from £1.23 billion to £1.43 billion ofwhich well over one third was organic. Gross margin has again been lifted by 70 basis points from 12.2 per cent to 12.9per cent. Consequently we have seen a significant 35 per cent increase inprofit from operations before impairment, amortisation and exceptional items. The net impact of acquisition and disposals on profit from operations was smalland the significant increase in profit from operations has come about due to theperformance of the underlying businesses. Our full year adjusted operating margin has further increased from 2.2 per centin 2005 to 2.6 per cent in 2006, an increase of 18 per cent, following a similarlevel of growth last year. Profit before tax for the year was £21.4 million against £16.4 million, butbefore impairment, amortisation and exceptional items was £26.4 million, 47 percent ahead of the £18.0 million reported last year. This has resulted inadjusted earnings per share of 10.63p, an increase of 41 per cent over theprevious year. Net exceptional items amount to a charge of £4.1million against £0.7million lastyear. This all relates to the bid defence costs as other items net out to zero. CASHFLOW AND CAPITAL EXPENDITURE The Group once more enjoyed strong cash flow from operations of £55.7 millionand despite spending nearly £50 million on acquisitions and investment in new/refurbished facilities, our gearing ended the year flat at 79 per cent. Wearranged a £200 million facility in September 2006 of which £82 million wasutilised at the year end, providing significant headroom for additionalexpansion. We continue to hedge interest rates to ensure a degree of certaintyover the Group's blended borrowing costs. Over the past five years we have increased earnings and dividends at a compoundgrowth rate of 22 per cent and 13 per cent respectively. DIVIDENDS The total dividend of 3.5 pence represents an increase of 15 per cent and iscovered 3 times based on adjusted earnings. The Group introduced a scrip dividend option for the first time in respect ofthe interim dividend payable in November 2004 and has offered this alternativefor every dividend payment since. To the end of December 2006, the take up ofthis option has been particularly successful with approximately 2.7 million ofnew shares being admitted to the Stock Exchange. PENSION DEFICIT The Group has been actively managing its pension liability. Not only has theGroup continued to fund the deficit by contributing an additional £2.1 millionper annum which commenced in 2005 but we have also taken active measures toreduce our exposure to this liability. The reported deficit has reduced from£19.2 million to £11.5 million in 2006. David Dyson Finance Director 12 March 2007 The Directors announce the following audited results of the Group for the yearended 31 December 2006. Consolidated Income Statement (Summarised) Year ended Year ended 31 December 31 December 2006 2005 £M £M Revenue 1,426.7 1,231.6 Profit from operations before amortisation and exceptional items 36.6 27.1 Amortisation of intangible assets and impairment of goodwill (0.8) (0.9) Exceptional items (4.1) (2.5) Profit from operations 31.7 23.7 Interest costs - net (10.2) (9.1) Debt issue costs (0.1) -Interest income on VAT refund - 1.8 Profit before tax, amortisation, impairment and exceptional items and 26.4 18.0debt issue costs (0.8) (0.9)Amortisation of intangible assets and impairment of goodwill (4.1) (0.7)Exceptional items (0.1) -Debt issue costs _____ _____Profit on ordinary activities before taxation 21.4 16.4Taxation 6.8 4.8 ______ ______Profit for the period 14.6 11.6 ===== =====Basic earnings per ordinary share 8.13p 6.53p ===== ===== Diluted earnings per ordinary share 8.09p 6.52p ===== =====Adjusted earnings per ordinary share 10.63p 7.54p ===== ===== Dividend per Ordinary share - interim 1.30p 0.95p - final 2.20p 2.10p _____ _____ 3.50p 3.05p ===== ===== Consolidated Balance Sheet (Summarised) 31 December 31 December 2006 2005 £M £MNON CURRENT ASSETS Goodwill 28.6 20.3Other intangible assets 16.0 16.8Property, plant & equipment 160.9 137.2 ______ ______ 205.5 174.3 ______ ______CURRENT ASSETS Inventories 257.9 190.8Trade and other receivables 82.6 66.8Cash and cash equivalents 2.9 2.4 ______ ______ 343.4 260.0 ______ ______ TOTAL ASSETS 548.9 434.3 ===== ===== CURRENT LIABILITIES Bank loans and overdrafts 8.4 21.3Trade and other payables 335.0 240.2 Tax liabilities and short term provisions 4.2 8.5 ______ ______ 347.6 270.0 ===== ===== NET CURRENT LIABILITIES (4.2) (10.0) ______ ______ NON CURRENT LIABILITIESBank loans and overdrafts 76.5 52.7Retirement benefit obligations 11.5 19.2Deferred taxation and long term provisions 9.0 2.2 _____ _____ 97.0 74.1 ===== =====TOTAL LIABILITIES 444.6 344.1 ===== =====NET ASSETS AND SHAREHOLDERS FUNDS 104.3 90.2 ===== =====Net Borrowings 82.0 71.6 ===== =====Gearing 79% 79% ===== ===== Consolidated Cashflow Statement (Summarised) Year ended Year ended 31 December 31 December 2006 2005 £M £MCash generated from operations Net profit 14.6 11.6Adjustments for tax 6.8 4.8Adjustments for depreciation 5.8 4.7Profit on disposal of property, plant & equipment (0.1) (0.4)Cost of aborted Vardy takeover - 1.2Amortisation of intangibles 0.8 0.7Impairment of goodwill - 0.2Interest on VAT - (1.8)Interest expense - net 10.2 9.1Debt issue costs 0.1 -Share based payments charge 0.2 - Changes in working capital (excluding effects of acquisitions anddisposal of subsidiaries)Increase in inventories (58.4) (40.1)Decrease in trade and other receivables (15.5) (8.5)Increase in payables 95.0 73.0Decrease in pensions (3.4) (2.5)Movement in provisions (0.4) (1.8) _____ _____Cash generated from operations 55.7 50.2 Tax paid (5.5) (4.0)Interest paid (10.8) (8.3)Exceptional interest received on VAT refund - 1.8 ____ ____Net cash from operating activities 39.4 39.7 Cashflows from investing activities Acquisition of subsidiaries (net of cash acquired) (27.6) (34.6)Purchase of property, plant and equipment (20.3) (19.9)Proceeds from sale of property, plant & equipment 1.3 2.6Proceeds from sale of business 1.5 1.9 _____ _____Net cash used by investing activities (45.1) (50.0) Cashflows from financing activities Proceeds from issue of ordinary shares 0.7 0.1Repayment of loans (70.6) (13.5)New loans 84.7 24.0Debt issue costs (0.9) -Principal payments under HP agreements (0.1) (0.2)Dividends paid to group shareholders (5.1) (3.5)Net cash from financing activities 8.7 6.9 ===== =====Increase/(decrease) in cash and cash equivalents 3.0 (3.4)Cash and cash equivalents at the beginning of the period (0.9) 2.5 ____ _____Cash and cash equivalents at the end of the period (2.1) (0.9) ==== ==== Consolidated Statement of Recognised Income and Expense Year ended Year ended 31 December 31 December 2006 2005 £M £M Actuarial gains/(losses) recognised in post retirement benefit scheme 5.1 (3.1)Taxation thereon (1.5) 0.9 _______ _______Net gains/(losses) recognised directly in equity 3.6 (2.2) Profit for the financial period 14.6 11.6 _______ _______ Total recognised income and expenses for the period 18.2 9.4 ====== ====== Notes 1. Basis of Preparation The financial information has been prepared under International FinancialReporting Standards (IFRS) issued by the IASB and as adopted by the EuropeanCommission (EC) and on the same basis as in 2005. Further information inrelation to the Standards adopted by the Group is available on the Group'swebsite www.lookers.co.uk. Whilst the financial information included in this preliminary announcement hasbeen computed in accordance with International Financial Reporting Standards(IFRS's), this announcement does not itself contain sufficient information tocomply with IFRS's. The Group expects to publish full financial statements thatcomply with IFRS's in April 2007. The information for the years ended 31 December 2006 and 2005 does notconstitute statutory accounts as defined in section 240 of the Companies Act1985, but is derived from the 31 December 2006 accounts. A copy of the statutoryaccounts for 2005 have been delivered to the Register of Companies. Theauditors' report on those accounts was unqualified. Those for 2006 will bedelivered following the company's annual general meeting which will be convenedon 18 May 2007. The auditors have reported on these accounts; their report wasunqualified and did not contain any statement under Section 237(2) or (3) of theCompanies Act 1985. The 2005 accounts were audited by Price Waterhouse CoopersLLP. 2. Dividends The final dividend proposed at the rate of 2.2p per share (2005 - 2.10p pershare) is payable on 31 May 2007 to shareholders on the register at close ofbusiness on 13 April 2007. Together with the interim dividend paid 30 November2006, the total dividend for 2006 is 3.50p (2005 - 3.05p) 3. Exceptional items Year ended Year ended 31 December 31 December 2006 2005 £M £MBid defence costs/strategic review (4.1) -Loss on termination of businesses (0.5) (1.9)Profit on disposal of properties 0.5 0.4Aborted acquisition costs - (1.2)Exceptional item - VAT refund - 0.2 ____ ____Exceptional items included within Operating Profit (4.1) (2.5)Exceptional interest on VAT refund - 1.8 ____ ____Total exceptional items (4.1) (0.7) ==== ==== 4. Interest costs - net £M £MBank interest payable 7.2 5.7Fair value (gains)/losses on interest rate hedges (0.4) 0.4Bank interest receivable (0.1) (0.1)Hire purchase agreements - 0.1Interest on consignment vehicles 3.3 2.4Net interest on pension scheme 0.2 0.6 ____ ____ 10.2 9.1 ==== ==== 5. Earnings per share The calculation of earnings per ordinary share is based on profits on ordinaryactivities after taxation amounting to £14.6million (2005: £11.6million) and aweighted average of 179,616,603 ordinary shares in issue during the year (2005:177,617,930). The diluted earnings per share is based on the weighted average number ofshares, after taking account of the dilutive impact of shares under option of901,994 (2005: 282,565). Adjusted earnings per share is stated before amortisation of intangible assets,impairment of goodwill, loss on disposal/termination of businesses, the profiton disposal of properties, bid defence/strategic review, net gains oncurtailments and settlements, business relocation and integration costs, abortedacquisition costs and the exceptional VAT credits and is calculated on profitsof £19.1 million for the year (2005: £13.4 million). 31 December 2006 31 December 2005 Earnings Earnings Earnings Earnings £M per share £M per share P PEarnings attributable toordinary shareholders 14.6 8.13 11.6 6.53 Amortisation of intangibleassets and impairment ofgoodwill 0.8 0.44 0.9 0.51 Exceptional items (net) 4.1 2.28 0.7 0.39 Tax on exceptional items(net) (0.4) (0.22) 0.2 0.11 19.1 10.63 13.4 7.54 6. Property, Plant and Equipment 31 December 31 December 2006 2005 £M £MFreehold property 99.0 87.6Long leasehold property 38.6 35.1Short leasehold property 8.5 4.2Plant and machinery 5.4 4.4Fixtures, fittings, tools and equipment 9.4 5.9 _____ _____ 160.9 137.2 ===== ===== This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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