27th Apr 2005 07:00
European Motor Hldgs PLC27 April 2005 EUROPEAN MOTOR HOLDINGS plc ("EMH") Preliminary results for the year ended 28 February 2005 EMH, consistently one of the UK's most profitable quoted motor retail groups,announces record results for the year ended 28 February 2005. Highlights: • Profit before tax up by 79% to £30.1 million • Profit before exceptional items, goodwill amortisation and tax up by 13% to £15.8 million • Motor Retail return on sales 3.3% compared to 3.2% last year • Earnings per share up by 65% to 38.2p • Net assets per share 150.1 pence compared to 121.7 pence last year • Net cash of £36.6 million at 28 February 2005 • Dividends per share for the year up by 12% to 9.5 pence Commenting on these results, chief executive Richard Palmer said: "Once again EMH has delivered record results. Our profits and earnings per sharehave increased substantially and we are again proposing a significant increasein dividend. We have continued to refine and strengthen our franchise portfolioand have substantial cash resources with which to fund our future growth. Welook forward to another successful year." Enquiries: Richard Palmer Chief Executive European Motor Holdings plcAnn Wilson Finance Director European Motor Holdings plcMorning Biddick Associates 020 7448 1000Afternoon European Motor Holdings plc 01491 413 399 EUROPEAN MOTOR HOLDINGS plc ("EMH") Preliminary results for the year ended 28 February 2005 Chief Executive's statement We are pleased to report outstanding results for the year ended 28 February 2005during which the Group has again achieved record profits: Year ended Year ended £ million 28 February 2005 29 February 2005 Profit before taxation, exceptional items and goodwill amortisation 15.8 14.0Exceptional items VAT refund 6.3 - Interest on VAT refund 6.3 - Profit on disposal of businesses 2.3 0.1 Profit on disposal of properties 0.3 2.9 Writedown on MG Rover assets (0.6) - -------- -------- 14.6 3.0 Goodwill amortisation (0.3) (0.2) -------- -------- Profit before taxation 30.1 16.8 -------- -------- Earnings per share 38.2p 23.2p Earnings per share before exceptional items and goodwill amortisation 20.0p 17.7p Dividend per share 9.5p 8.5p -------- -------- Our profit before taxation rose 79% to £30.1 million, including exceptionalprofits of £14.6 million and our earnings per share increased by 65% to 38.2pence from 23.2 pence last year. Profit before taxation, exceptional items andgoodwill amortisation rose 13% to £15.8 million and earnings per share beforeexceptional items and goodwill amortisation increased by 13% to 20.0 pence. Netassets per share rose by 23% to 150.1 pence and net funds at the year end stoodat £36.6 million. We are proposing a final dividend of 5.8 pence per share, making a totaldividend for the year of 9.5 pence per share, a rise of 12%. Trading Within the motor retail sector our strategy of concentrating on a small numberof premium and specialist brands has continued to differentiate positively ourperformance from that of our peer group. Whilst certain sectors of the marketand areas of the country appear to have suffered in performance, our resultshave been protected by our strong franchise portfolio and balanced geographicalspread, mainly away from London, which remains a difficult area in which tooperate, not least because of high occupancy costs. Our Motor Retail Division profit before taxation and exceptional items increasedby 18% to £16.7 million in a period when our brands continued to expand and tocapture sales from their volume competitors. During the year ended 28 February2005 national registrations for our key franchises increased by 5% compared witha decrease in national registrations of 2% for all makes during this period. We believe that a key reason for the continued growth of the premium sectors ofthe market in which we operate is the lower cost of ownership relative to volumecompetitors. We have also benefited during the year from a number of importantnew products which have helped to continue to stimulate the market. In thecoming year we have more significant new models to look forward to. The already excellent performance of our BMW group businesses moved forwardagain last year and we achieved sales growth of 8%. Although this is behind thenational increase in registrations of 11% for this period, the timing of oursales was slightly distorted in early 2004 and in the period from January 2004to February 2005 we exceeded national registrations by 1%. In Mini, sales growthwas 11% compared with a national average growth in registrations of 8%. During the year we benefited from the introduction of the new 1 series, 6 seriesand X3 vehicles which were additional to the existing range and from additional5 series derivatives. The Mini convertible was also successfully launched in theperiod. In 2004 we entered the run-out phase of the 3 series and the new model,which has already been shown to be an improvement on its class leadingpredecessor, was launched in mid March 2005 after the end of our financial year.We have very high expectations from this new range of cars which will beaugmented in the coming year by replacement 7 series and 3 series Touring andnew M5 and M6. Our aftersales activities have benefited from a refocus to meetthe needs of the increasing BMW and Mini parcs and profits in this area haveshown a significant increase over the previous year. Building work has commenced on our new BMW and Mini dealerships in Durham andthey are due to open in July this year, increasing the number of our BMW andMini businesses to five of each. Our Premier Automotive Group businesses had a mixed year. Our Jaguar businessesperformed well in the first half of the year, but margins were eroded in thesecond half mainly as a result of over supply. However, Jaguar has now addressedthis situation and cut back production. The launch of the new S Type diesel wasa success and we have continued to grow sales within our areas ofresponsibility. On a like for like basis we registered 31% more new Jaguars thanin the previous year compared with a national growth of 6%. Our Volvo businesses had a difficult start to the year without full availabilityof the new S40 and V50. However, we had better availability across the range inthe second half and our Volvo businesses performed at a satisfactory level. Likefor like registrations in our Volvo businesses increased by 6% compared withnational growth of 2% and, looking forward, we are encouraged by the anticipatedlaunches of some exciting new products in the next two years which will not onlyreplace existing models but will also open new market sectors for the marque. Both of our Land Rover businesses had a good year with our Chester dealershipbecoming the second highest volume seller of Land Rover vehicles in the UK in2004 and, although sales were flat, this represented a good performance whencompared with a decrease of 2% in national registrations following the run outand replacement of the Discovery in the period. The new Discovery is proving tobe a valuable addition to the brand's line up which will be extended by theintroduction of the exciting Range Rover Sport in the middle of this year. Our Volkswagen group businesses had a year of varied levels of success. Duringthe year we sold our Chester and Sunderland Audi centres to enable Audi tocomplete other market areas, achieving profits on disposal of £2 million. OurTetbury Audi centre continued to operate at a very high level and achievedstrong growth in registrations of 12% compared with a 10% increase in nationalregistrations. In August we purchased an adjacent Audi dealer in Swindon and arecurrently examining opportunities that will further develop this market area. Wehope that we will be able to move forward further with Audi in the coming year.The new A6 and A3 Sportback have further stimulated demand for Audi products andthey, together with the new A4 launched in January, give us great confidence forthe year ahead. Our first Bentley business opened in March 2004 and has had an excellent firstyear's trading. We announced on 1 March 2005 the acquisition of two furtherBentley businesses in Leicester and Norwich. With these three businesses weexpect to sell more than 10% of the Bentley brand's volume in the UK. We arevery confident that the launch of the new Continental Flying Spur four doorsaloon in July this year will further lift Bentley's prospects in the market. Our Volkswagen businesses had a difficult twelve months but we managed areasonable profit improvement year on year within our continuing businesses. Theprogress we made in the first half of the year was partially eroded in thesecond half as we were unable to benefit from bulk deals which were available inthe previous year and overall our like for like Volkswagen registrations weredown by 6% compared with a national decrease of 1%. The national registrationswere bolstered by a number of fleet deals directly supported by themanufacturer. Volkswagen's vehicle replacement cycle was in a period oftransition and, whilst we had the new Golf for the entire period, we did nothave replacements for the Passat saloon and estate, Polo and Bora which will belaunched in the next year. Volkswagen has very recently announced pricing actionacross the product range and the price of Golf in particular will now be morecompetitive in the retail market. We are confident that, with the forthcomingnew vehicle launches, together with the new Golf and the manufacturer's pricingaction, the performance of our Volkswagen businesses will improve. In October we disposed of our loss making Volkswagen dealership in Darlingtonrealising a small profit. In our Motor Retail dealerships we continue to earn approximately 50% of ourtrading margin from aftersales activities. This underpins the Motor Retailoperations' overall performance and in the current year the contribution ofthese activities from our continuing businesses grew by 17%. We are certain that we have made the right choices of manufacturer partners andboth their and our ongoing progress in gaining market share overall willcontinue to fuel our growth, both now and in the future. We believe that newmodels which are currently giving rise to new vehicle sales growth will generateincreased aftersales and own brand used car activity in the years ahead. Following the further refinements of our franchise portfolio detailed above andthe disposal of our remaining truck dealership during the year, 35 of our 37franchises are now held with the BMW group, the Premier Automotive Group and theVolkswagen group. The two remaining franchises are held with MG Rover. Thesedealerships accounted for turnover of £22 million in the last financial year andmade an operating loss of £0.2 million in that period. As we announced on 20April, following the appointment of administrators to MG Rover Group Limited,the Board has decided to make an exceptional charge in the Group's financialstatements for the year ended 28 February 2005. This exceptional charge relatesto a reduction in the estimated realisable value of MG Rover stocks and debtorsheld by and owed to the Group at that date and amounts to £0.6 million. TheBoard has subsequently decided to implement a structured closure of the twodealerships and will be making an exceptional provision in the financialstatements for the year ending 28 February 2006 which is currently beingquantified and which will cover further asset writedowns and closure costs.However, the Board does not consider that the effect on trading for the yearending 28 February 2006 will be significant. Our auction operations at Telford and Queensferry had another excellent yearwith profitability increasing once again. These two businesses give us acompetitive advantage due to the up to date information on used vehicle pricesthat we derive from them. This data is made available throughout the Group andis utilised thoroughly. The auctions also provide an invaluable conduit for usto dispose effectively of used vehicles which we do not wish to retail. Our Motor Services Division had a good year although profits were marginallydown, principally due to a reduction of equipment orders by certain customers.Two continuing customers had made particularly large replacement purchases inthe previous year which were not repeated to the same extent in the year underreview. We have increased the number of service contracts we hold with ourcustomers by 13% during the period. The retail car washing venture that westarted at superstore sites as a trial in late 2001 did not prove to beprofitable and we therefore disposed of all sites at a small profit in October. Financial review As stated above, the Group's profit on ordinary activities before tax for theyear ended 28 February 2005 was £30.1 million compared to £16.8 million in theprevious year. This year's result includes a number of exceptional items. Themajor exceptional item is the Group's VAT refund in respect of retrospectivechanges in VAT law concerning the VAT treatment of demonstrator vehicles. Therefund amounted to £6.3 million and there is an associated exceptional interestcredit of £6.3 million, all of which has been received in full. In addition,there were exceptional profits of £2.3 million on the disposal of fivebusinesses and £0.3 million from the disposal of surplus property less anexceptional charge of £0.6 million in respect of MG Rover. The exceptionalprofits included in the previous year amounted to £0.1 million on the disposalof businesses and £2.9 million on the disposal of properties. Excluding the exceptional items referred to above and goodwill amortisation, theprofit for the period was £15.8 million, an increase of 13%. The Group's effective tax rate in the year ended 28 February 2005 was 32.2%.This takes account of a number of significant matters. Provision has beenincluded for corporation tax at the rate of 30% on the exceptional VAT refundand the associated interest credit, although it may be possible to reduce thischarge in due course. The exceptional profits arising on disposal of businessesand properties are to be relieved by rollover of the relevant chargeable gainsand, therefore, no tax has been provided in respect of them in the currentperiod. The tax charge for the year includes an additional charge of £1.1million in respect of gains arising on the disposal of the Group's Mercedes-Benzdealerships in the year ended 28 February 2003. On the basis of advice,including Counsel's opinion, the Group is of the view that the gain in questionrelates to the disposal of goodwill and is eligible for rollover relief.However, the Inland Revenue disputes this opinion and considers that the gaincannot be rolled over. This is a dispute which affects all of the dealers whodisposed of their Mercedes-Benz businesses around that time and is being dealtwith centrally by both the dealers and the Inland Revenue. Whilst we stillbelieve that the gain arises from the disposal of goodwill, it is consideredprudent to make this additional charge until the situation is resolved. When theabove items are excluded, the effective tax rate for the year is 32.4%, the sameas last year. This is higher than the standard rate of corporation tax as aresult of permanent disallowable expenditure which arises in the business,particularly in relation to depreciation of property. Earnings per share for the year were 38.2p compared to 23.2p last year.Excluding goodwill amortisation and exceptional items, the figure for this yearis 20.0p, an increase of 13%. The Board is recommending a final dividend of 5.8pper share, bringing the full year's dividend to 9.5p. This represents a 12%increase on last year's total dividend of 8.5p per share. Dividend cover,excluding exceptional items, for the year is 2.07 times, compared to 2.04 timeslast year. The net effect of branches opened, acquired and sold since last year is anincrease in turnover of £2 million. Within our continuing Motor Retailbusinesses, higher vehicle sales volumes and average prices of vehicles soldhave increased turnover by a further £37 million. There has also been anincrease in Motor Retail aftersales turnover, which has compensated for theslight reduction in Motor Services turnover. As a result of all these factors,there has been a net increase of £39 million in overall Group turnover comparedto last year. Operating profit excluding exceptional items has been maintained at 2.8% ofturnover, the same as last year and the Group continues to be one of the mostprofitable in the industry at this level, an achievement which is even morepronounced at the profit before taxation level. Average net cash balances were higher than in the comparative period due to thenet cash inflow during the year. This has resulted in net interest receivable(excluding new vehicle stocking interest and the exceptional interest on the VATrefund) for the period of £0.8 million, compared to £0.2 million last year. As evidenced by the balance sheet, the Group continues to be in a very strongfinancial position. Shareholders' funds have increased by £14.8 million to £80.0million at 28 February 2005. During the year we have invested £2.5 million incapital expenditure and received £0.4 million in respect of the disposal offixed assets. The net proceeds of the businesses disposed of during the yearamounted to £8.0 million and we have invested £1.4 million in the acquisition ofnew businesses in the same period. During the year, the Company issued 180,000 shares in respect of the exercise ofoptions, and purchased for cancellation 450,000 of its shares resulting in a netcash outflow of £0.7 million. Notwithstanding the acquisitions and disposals in the year, we have managed ourworking capital efficiently and achieved an improvement of £1.6 million.Payments in respect of taxation and dividends in the year amounted to £11.4million and there has been a net outflow of £3.7 million in respect of loans,finance leases and letters of credit. The net effect of these cash flows and ofthe £17.7 million operating profit (before depreciation, amortisation and theexceptional VAT refund) and the exceptional VAT refund and associated interestreceived in the period of £12.6 million is a net cash inflow of £21.4 million.The Group has a healthy net funds balance of £36.6 million at 28 February 2005,compared with £13.0 million at the previous year end, an increase of £23.6million. The Group's net funds position at the year end is not representative of the yearas a whole because, immediately prior to a month with a registration platechange, used vehicle stocks and vehicle debtors are lower than at other times ofthe year and we are in receipt of deposits on cars being prepared for sale inMarch. This year's peak net funds level of £36.6 million occurred at the end ofthe financial year and the Group's average net funds during the period were£17.7 million. The Group remains extremely well placed to expand whilstretaining low borrowing levels. The principal elements of our borrowings are a loan from a finance house andleasing obligations in respect of demonstrator vehicles and certain dealershiprefurbishments. Most utilised borrowings are repayable either on demand orwithin the current calendar year, although some leases in respect of fixedassets have five or ten year terms. In addition, the Group has substantialbanking facilities which were unutilised at the balance sheet date. International Financial Reporting Standards All listed companies in the European Union will have to report theirconsolidated results under International Financial Reporting Standards ("IFRS")for accounting periods commencing on or after 1 January 2005. This means thatthe new standards will first affect the Group's reporting for the year ending 28February 2006, commencing with the interim results for the six months ending 31August 2005. The Group is well advanced in its implementation of IFRS and details of theirestimated impact are included in note 10 to this statement. Outlook Our new financial year has started with March recording the second best evermonth for UK new car registrations, last year being the best on record, and ourperformance is broadly in line with our expectations, although currently behindthe equivalent period last year. This is due to a combination of factors;firstly, replacing the established dealerships disposed of during the course oflast year with less mature, growing businesses which will have a greater impactlater in the year and secondly, the effect of the phasing of a number of newproduct launches. During the month of April Volkswagen has announced pricingaction on its key vehicles which will help us to continue with the progress wehave made with that franchise. This, together with the large number offorthcoming new vehicle introductions, gives us cause for optimism in the monthsahead. We believe that our brands will continue to increase market share in the comingyear and that we will continue to benefit from the growing parc of premiumvehicles in our service and used car operations. We expect to continue to make progress within our existing operations andbelieve that complementary acquisitions will also be made during the year whichcan be funded from the Group's significant cash resources. We expect to achievecontinued growth for the Group and its shareholders in the year ahead. Richard Palmer Chief Executive 27 April 2005 CONSOLIDATED PROFIT AND LOSS ACCOUNT Notes Year ended Year ended 28 February 29 February 2005 2004 £'000 £'000 Turnover 1 528,838 489,525-------------------------- ----------- --------- ---------Exceptional VAT refund 6,272 -Exceptional MG Rover writedowns (588) -Other cost of sales (453,336) (417,592)-------------------------- ----------- --------- ---------Cost of sales (447,652) (417,592) --------- --------- Gross profit 81,186 71,933Distribution costs (35,553) (33,932)-------------------------- ----------- --------- ---------Goodwill amortisation (272) (208)Other administrative expenses (25,010) (24,218)-------------------------- ----------- --------- ---------Administrative expenses (25,282) (24,426) --------- --------- Operating profit 2 20,351 13,575 Profit on disposal of businesses 3 2,355 117 Profit on disposal of properties 277 2,929 Interest receivable 1,162 377 Interest payable (345) (221) Exceptional interest on VAT refund 6,279 - --------- --------- Profit on ordinary activities before taxation 30,079 16,777 Tax on profit on ordinary activities (9,694) (4,444) --------- --------- Profit for the financial year 20,385 12,333 Dividends 4 (5,065) (4,563) --------- --------- Retained profit for the financial year 15,320 7,770 ========= ========= Earnings per share (basic) 5 38.2p 23.2p ========= ========= Earnings per share (diluted) 5 37.3p 22.7p ========= ========= Dividend per share 4 9.5p 8.5p ========= ========= There are no recognised gains or losses other than the profit for the financialyear as reported above. CONSOLIDATED BALANCE SHEET 28 February 29 February 2005 2004 £'000 £'000 Fixed assetsIntangible assets 4,390 2,854Tangible assets 33,014 36,317 --------- --------- 37,404 39,171 --------- --------- Current assetsStocks 89,197 88,096Debtors 15,757 18,381Cash at bank and in hand 43,977 22,553 --------- --------- 148,931 129,030 Creditors: amounts falling due within one year (105,129) (101,727) --------- --------- Net current assets 43,802 27,303 --------- --------- Total assets less current liabilities 81,206 66,474 Creditors: amounts falling due after more than one year (309) (260) Provisions for liabilities and charges (902) (1,042) ========= ========= 79,995 65,172 ========= ========= Capital and reservesCalled up share capital 21,319 21,427Share premium account 27,392 27,309Capital redemption reserve 926 746Profit and loss account 30,358 15,690 ========= =========Equity shareholders' funds 79,995 65,172 ========= ========= Net funds 36,573 12,978 ========= ========= Net assets per share 150.1p 121.7p ========= ========= CONSOLIDATED CASH FLOW STATEMENT Year ended Year ended 28 February 29 February 2005 2004 £'000 £'000 Net cash inflow from operating activities 22,778 18,967Returns on investments and servicing of finance 7,096 156Tax paid (6,669) (3,868)Capital expenditure and financial investment (2,057) 2,359Acquisitions and disposals 6,605 (4,818)Equity dividends paid (4,705) (4,105) --------- ---------Net cash inflow before financing 23,048 8,691Financing (1,624) 319 --------- --------- Increase in cash in the year 21,424 9,010 ========= ========= Reconciliation of operating profit to net cash flow from operating activities Year ended Year ended 28 February 29 February 2005 2004 £'000 £'000 Operating profit 20,351 13,575Depreciation 3,350 2,999Amortisation of goodwill 272 208(Profit) on sale of tangible fixed assets (23) (25)(Increase) in stocks (1,821) (8,211)Decrease/(increase) in debtors 2,983 (735)Increase in creditors 447 9,461Net movement in demonstrator funding (2,781) 1,695 --------- ---------Net cash inflow from operating activities 22,778 18,967 ========= ========= Analysis of changes in net funds At Cash flow Other non- At 28 1 March cash changes February 2004 2005 £'000 £'000 £'000 £'000 Cash at bank and in hand 22,553 21,424 - 43,977 Debt due within one year (3,128) 128 (30) (3,030)Debt due after more than one year - 515 (572) (57)Finance leases (demonstrators) (6,049) 18,094 (15,983) (3,938)Finance leases (other) (398) 259 (240) (379) 18,996 -------- -------- --------- --------- Total 12,978 40,420 (16,825) 36,573 ======== ======== ========= ========= NOTES TO THE STATEMENT OF PRELIMINARY RESULTS 1 Analysis of turnover Year ended Year ended 28 February 29 February 2005 2004 £'000 £'000 Motor Retail Division 510,041 468,390Motor Services Division 14,765 17,248Other Businesses 4,032 3,887 --------- --------- 528,838 489,525 ========= ========= 2 Analysis of operating profit Year ended Year ended 28 February 29 February 2005 2004 £'000 £'000 Motor Retail Division 16,800 14,855Motor Services Division 1,085 1,209Other Businesses 65 (37)Central costs (3,283) (2,452)Exceptional VAT refund 6,272 -Exceptional MG Rover writedowns (588) - --------- --------- 20,351 13,575 ========= ========= 3 During the year, the Group disposed of its DAF and LDV trucks business in Taunton, its Audi dealerships in Sunderland and Chester, its Volkswagen dealership in Darlington and the assets of its retail car washing venture. The Group also disposed of its interest in a vacant property in Heswall. 4 The Directors recommend a final dividend of 5.8p (2004, 5.1p) per share, to be paid on 6 September 2005 to shareholders on the register at 5 August 2005. An interim dividend of 3.7p (2004, 3.4p) per share was paid during the year, making a total for the year of 9.5p (2004, 8.5p). 5 The calculation of earnings per share for the year ended 28 February 2005 is based on the profit for the financial year of £20,385,000 (2004, £12,333,000) and on 53,390,052 (2004, 53,208,778) ordinary shares, being the weighted average number of shares in issue during the year. The number of dilutive potential ordinary shares arising from share options, as calculated in accordance with FRS 14: Earnings per Share, is 1,195,969 (2004, 1,021,912). Therefore, the calculation of diluted earnings per share is based on the profit for the financial year of £20,385,000 (2004, £12,333,000) and on 54,586,021 (2004, 54,230,690) ordinary shares. Earnings per share before goodwill amortisation and exceptional items has been calculated on profits for the year of £10,679,000 (2004, £9,598,000) as detailed below: Year ended Year ended 28 February 29 February 2005 2004 £'000 £'000 Profit after taxation 20,385 12,333Goodwill amortisation (net of tax relief) 208 147(Profit) on disposal of businesses (2,355) (117)(Profit) on disposal of properties (277) (2,929)Exceptional VAT refund and associated interest (net of tax) (8,786) -Exceptional MG Rover writedowns (net of tax) 412 -Tax provision in respect of TRP 1,092 164 --------- -------- 10,679 9,598 ========= ======== 6 This preliminary results statement has been prepared on the basis of the same accounting policies as those set out in the financial statements for the year ended 29 February 2004. 7 This preliminary results statement was approved by the Board of Directors on 27 April 2005. The above results for the year ended 28 February 2005 have been abridged from the full Group accounts for that year, which received an unqualified auditors' report and which will be delivered to the Registrar of Companies shortly. 8 The above results for the year ended 29 February 2004 have been abridged from the full Group accounts for that year, which received an unqualified auditors' report and which have been delivered to the Registrar of Companies. 9 The Annual Report and Financial Statements will be posted to shareholders as soon as practicable. Further copies will be available from the company's registered office at Craigmore House, Remenham Hill, Henley-on-Thames, Oxon RG9 3EP. 10 The results for the year ended 28 February 2005 set out in this statement are presented under the standards and practices currently applicable in the UK known as UK GAAP (UK Generally Accepted Accounting Practice). As a result of the changeover to IFRS, there will be changes to the format of the primary financial statements (profit and loss account, balance sheet and cash flow statement) and there will also be additional disclosures. However, the main impacts on the results come from differences in the IFRS accounting treatment for certain items compared to UK GAAP. Those matters having the most significant impact on the Group are in respect of goodwill, share options, pensions, deferred tax and dividends payable. The table below summarises the estimated effect of the change to IFRS on the results for the year ended 28 February 2005. Unaudited Profit Profit Net before tax after assets £ million £ million £ million Profit/net assets under UK GAAP 30.1 20.4 80.0 Adjustments in respect of: Goodwill - amortisation no longer permitted 0.3 0.2 0.2 Profit on disposal of businesses - goodwill originally written off to reserves no longer required to be adjusted through profit and loss account on disposal 0.2 0.2 - Share options - fair value of options granted (0.1) (0.1) - Pensions - incorporation of deficit onto balance sheet - 0.1 (1.7) Deferred tax - provide for revaluations and rollover relief, less reversal of amounts charged to corporation tax in year - 1.0 (2.1) Dividends - dividends accounted for in year in which declared or proposed - - 3.1 -------- -------- --------Profit/net assets under IFRS 30.5 21.8 79.5 -------- -------- -------- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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