24th Nov 2006 07:01
Fuller,Smith&Turner PLC24 November 2006 24 November 2006 FULLER SMITH & TURNER P.L.C. Financial results for the six months ended 30 September 2006 Reported under International Financial Reporting Standards (IFRS) Financial Highlights • Turnover up 35% to £91.1 million (2005: £67.4 million) • Profit before tax up 31% to £10.9 million (2005: £8.4 million) • EBITDA up 48% to £20.4 million (2005: £13.8 million) • Basic earnings per share1 increased 33% at 33.54p (2005: 25.29p) • Interim dividend per share1 increased 15% to 6.47p (2005: 5.63p) Corporate Progress • Strong performance across the Group • Gales successfully integrated and expected synergies achieved • Managed Pubs profits up 82% • Uninvested like for like sales in Managed Pubs up 4.3% • Tenanted Inns profits up 61% • Beer Company profits up 14% • Net interest costs up £2.9 million • Five new managed houses in the second half 1 Calculated on the £1 'A' ordinary share Commenting on the results, Anthony Fuller, Chairman of Fuller's, said: "We have seen an excellent start to the year, with all parts of the businessperforming well. Our profits for the first half increased by 31% to £10.9million (2005: £8.4 million) on an increase in turnover of 35% to £91.1 million(2005: £67.4 million). "The Gales trading pattern provides a summer balance to our previouslywinter-weighted business and we anticipate achieving further good results fromthe combined estate in the second half of the year, although the comparativefigures will include four months of Gales trading. "The £17.1 million proceeds from the sale of the Brigstow Hotel in Bristol willallow us to continue investing in new pubs for Fuller's Inns, and we expect toadd to the five acquisitions that are already due to complete in the secondhalf. We will continue to invest in both our managed and tenanted estates toprepare for the coming smoking ban. "Fuller's has a strong management team, a consistent long-term strategy and acommitment to growing returns for our shareholders. With this in mind, we lookto the future with optimism and determination and, although the second half willsee more measured growth as we celebrate the anniversary of the Galesacquisition in December, we are well-placed to continue our good performance." - 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] Michael Turner, Chief Executive:Press 020 8996 2048Paul Clarke, Finance Director: Analysts 020 8996 2048 Merlin 020 7653 6620Paul Downes 07900 244 888Vanessa Maydon 07802 961 902Rebecca Penney 07795 108 178 Notes to Editors For an official photo please e-mail [email protected] and one will automatically be sent by return. Copies of the interim statement and presentation will be available on theGroup's web site, www.fullers.co.uk. Attached: Chairman's Statement Financial HighlightsUnaudited Group Income StatementUnaudited Group Balance SheetUnaudited Group Cash Flow StatementOther Unaudited Group Primary StatementsNotes to the Accounts FULLER SMITH & TURNER P.L.C. INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2006 CHAIRMAN'S STATEMENT Whatever You Do, Take Pride We have seen an excellent start to the year, with all parts of the businessperforming well. Our profits for the first half increased by 31% to £10.9million (2005: £8.4 million) on an increase in turnover of 35% to £91.1 million(2005: £67.4 million). Earnings before interest, tax, depreciation andamortisation (EBITDA) were up 48% to £20.4 million (2005: £13.8 million). While the acquisition of George Gale & Co in December 2005 has been the singlelargest contributor to this increase, I am delighted to report that the benefitsand synergies from the acquisition are underpinned by solid underlying growth,with uninvested like for like sales in our managed pubs increasing by 4.3%. Fuller's Inns has seen an increase in profits of 65% to £13.8 million (2005:£8.4 million) and, during the first half, we have invested £6.6 million in ourestate maintaining high retail standards, and providing for the future throughimproved cellars and kitchens and enhanced dining areas. Included in this figureis the cost of our newest venture, The Vintry, in the City of London. Wecontinue to look for suitable sites to grow our estate, and have agreed termsfor the purchase of five managed pubs, with completion due in the second half. The Fuller's Beer Company has seen an increase in profits of 14% to £4.2 million(2005: £3.6 million) and London Pride, the country's leading premium ale, hasincreased its share of the cask, bottled and canned ale markets. We continue to deliver good returns for our shareholders with earnings per shareincreasing by 33% to 33.54p (2005: 25.29p). In July, the Company made a tenderoffer to shareholders providing the opportunity to dispose of some of their 'B'shares, and 1,849,000 10p 'B' ordinary shares were bought back and cancelled ata price of £1.12 per share. Against this backdrop, we have increased the interim dividend by 15% to 6.47pper £1 'A' and 'C' ordinary share and 0.647p per 10p 'B' ordinary share. Thiswill be paid on Friday 5 January 2007, to shareholders on the share register asat Friday 8 December 2006. FULLER'S INNS It has been a very strong half year for Fuller's Inns, and the summer orientatedGales pubs add an excellent balance to our business. Profits for the divisionhave increased by 65% to £13.8 million (2005: £8.4 million) on turnover up 41%to £72.3 million (2005: £51.4 million). As well as the obvious benefits of thelarger estate, our performance has been boosted by a good summer, a strong, yetlean, management team and excellent pubs. Fuller's Inns had 362 pubs and hotelsas at 30 September 2006 (2005: 250), comprising 200 tenancies, 154 managedhouses and eight hotels. Managed Pubs The Managed Pubs division has produced excellent results during the first half,with profits up 82%. In addition to the pubs acquired from Gales, the eightadditional acquisitions made last year have also contributed significantly tothe increase in profits. It is particularly pleasing to see a strong underlying trend, with like for likesales increasing by 4.3%. This is the result of good management both at headoffice and pub level and a consistent strategy focusing on outstanding caskconditioned ales, delicious food, great wines, and exemplary service. The enlarged estate provides greater flexibility to transfer pubs between themanaged and tenanted estates in order to maximise profitability. This is animportant advantage of running both managed and tenanted business models and, inthe first half of the year, eight managed pubs were transferred to tenancy. Inaddition, two pubs that did not fit the Fuller's profile were sold. We are continuing to acquire and open new sites, and The Vintry is our mostrecent addition. Situated in the heart of the City, on Abchurch Lane, The Vintryboasts a range of around 100 wines and exceptional food in a stylishenvironment. We will complete on five new pubs to add to the estate in thesecond half, and we are optimistic that more will follow. In order to continue to grow our business, we have continued to invest in theestate, training and sales initiatives. We have completed 11 major pub projectsin the first half (2005: 13), with 13 more planned for the second half comparedto four last year. Many of our investments aim to further extend the food offer,improve cellars, install 'extra cold' cellar dispense systems and enhance ouroutside areas. Repairs for the second half are anticipated to increase by £0.7million on the same period last year. This combination of a focused strategy, organic growth, investment in ourestate, motivated people and well-run pubs means that we are in a strongposition to maintain high retail standards, minimise the impact of the comingsmoking ban, and continue to grow our business. Tenanted Inns Our Tenanted Inns division has also delivered a strong performance in the firsthalf, with profits up 61%. The addition of the Gales pubs was a majorcontributor to this success, complementing the strong underlying growth withlike for like turnover increasing by 3%. Investment in our tenanted pubs, including signage and cellars, led to anincrease in repairs expenditure of 73% against the same period last year. Aswith our managed estate, we have identified a smoking solution for each pub andwill work with our tenants and lessees to help maximise the opportunitiespresented. Fuller's Hotels Fuller's Hotels continued to make progress, with profits up 6% on a 2% increasein turnover, driven by a 6% increase in occupancy. Revpar (revenue per availableroom) was up 4% at £48.91. On 31 October 2006, we sold the Brigstow Hotel for £17.1 million, resulting in anet profit on disposal of £7.6 million. The Brigstow's net book value at 30September 2006 was £9.1 million and it contributed £0.7 million to profits inthe year to 1 April 2006. Located in Bristol, the Brigstow was a wonderfuldevelopment for Fuller's, however it was of a contemporary design and unlike anyother hotel in our estate. The sale of the Brigstow has simplified our business model for the Hotelsdivision and allows us to concentrate on the more traditional pubs and hotelsmarket, offering high quality accommodation and delicious food in a welcomingpub environment. We are leveraging the expertise from the Hotels division todevelop our estate of pubs with bedrooms, many of which we acquired from Gales. THE FULLER'S BEER COMPANY The Fuller's Beer Company has had a good start to the year with profits up 14%to £4.2 million (2005: £3.6 million) on turnover up 25% to £29.1 million (2005:£23.3 million). The Gales acquisition has helped increase our total beer volumes by 22% to163,000 barrels. Although the hot summer led to a high proportion of thisincrease coming from lagers, our own beer sales also performed well, rising by8%. In the highly competitive off trade market, we saw an increase in volumes of20%, which was particularly pleasing. In addition, our export volumes rose by25% with sales successes including Spain, Scandinavia and North America. London Pride has consolidated its position as the UK's favourite premium ale andhas gained further market share of the cask, bottled and canned ale sectors. Our"Whatever you do, take Pride" advertising campaign has been running for 10years, and has been a key element of London Pride's success. During this period,London Pride has more than trebled its share of the total ale market. We have recently signed a five-year deal making London Pride the official beerof the English Golf Union, which will see the brand supporting a number ofactivities at club level. Golf is one of the most popular sports in the country,and a great match with real ale. The sponsorship package will improve access forLondon Pride to the 1,900 golf clubs in England and Wales, and raise its profileamong their members. In addition, we will be looking to exploit furtheropportunities in the larger trading area that resulted from the Galesacquisition. The Wine Division has also had a successful start to the year with profits up45%. The former Gales estate provides many opportunities to grow this part ofthe Beer Company and we have seen a 17% increase in wine volumes outside ourtied estate as a result of the quality range we offer. PROSPECTS It has been an exceptional start to the year with strong performances across allparts of the business. We have maximised the benefits and synergies resultingfrom the Gales acquisition, and underpinned these with excellent like for likeresults. The Gales trading pattern provides a summer balance to our previouslywinter-weighted business and we anticipate achieving further good results fromthe combined estate in the second half of the year, although the comparativefigures will include four months of Gales trading. The £17.1 million proceeds from the sale of the Brigstow Hotel in Bristol willallow us to continue investing in new pubs for Fuller's Inns, and we expect toadd to the five acquisitions that are already due to complete in the secondhalf. We will continue to invest in both our managed and tenanted estates toprepare for the coming smoking ban. The Fuller's Beer Company continues to perform well, with London Prideoutperforming its rivals in a highly competitive market. We can offer our tiedand free trade customers an unrivalled portfolio of ales and an excellent rangeof wines. Fuller's has a strong management team, a consistent long-term strategy and acommitment to growing returns for our shareholders. With this in mind, we lookto the future with optimism and determination and, although the second half willsee more measured growth as we celebrate the anniversary of the Galesacquisition in December, we are well-placed to continue our good performance. A.G.F. Fuller, CBEChairman 24 November 2006 FULLER SMITH & TURNER P.L.C. FINANCIAL HIGHLIGHTS FOR THE 26 WEEKS ENDED 30 SEPTEMBER 2006 Unaudited Unaudited Audited 26 weeks to 26 weeks to 52 weeks to 30 September 1 October Change 1 April 2006 2005 2006/2005 2006 £000 £000 £000 Restated____________________________ ___________ ___________ ___________ ____________ Revenue 91,062 67,356 35.2% 145,148Profit before tax 10,924 8,368 30.5% 15,310Adjusted Profits 1 10,924 8,368 30.5% 17,952Pre-exceptionalEBITDA 2 20,440 13,817 47.9% 32,149Basic earnings pershare 3 33.54p 25.29 p 32.6% 46.40 pAdjusted earningsper share 4 33.54p 25.29 p 32.6% 54.67 pDividend per share 3 6.47p 5.63 p 14.9% 19.75 pGearing ratio 80.7% 21.0% N/A 83.5% ____________________________ ___________ ___________ ___________ ____________ 1. Adjusted profit is the profit before tax excluding exceptional items. 2. Pre-exceptional earnings before interest, tax, depreciation and amortisation. 3. Calculated on the £1 'A' ordinary share. 4. 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 STATEMENT FOR THE 26 WEEKS ENDED 30 SEPTEMBER 2006 Unaudited Unaudited Audited 26 weeks to 26 weeks to 52 weeks to 30 September 1 October 1 April 2006 2005 2006 £000 £000 £000 RestatedREVENUE 91,062 67,356 145,148 Operating costs (75,953) (57,728) (122,723) ----------------- ----------------- ------------------OPERATING PROFIT 15,109 9,628 22,425 Profit on disposal of properties - - 265 Reorganisation costs - - (2,907) Finance revenue 59 85 104 Finance costs (4,244) (1,345) (4,577) ----------------- ------------------ ------------------PROFIT BEFORE TAX 10,924 8,368 15,310 Taxation (3,441) (2,722) (4,932) ----------------- ------------------ ------------------PROFIT FOR THE PERIOD 7,483 5,646 10,378 ================= ================== ==================PROFIT FOR THE PERIOD ISATTRIBUTABLE TO:Ordinary shareholders 7,483 5,646 10,378 ----------------- ----------------- ----------------- 7,483 5,646 10,378 ================= ================= ================= EARNINGS PER SHAREPER £1 'A' ORDINARY SHARE OR UNQUOTED £1 'C' ORDINARY SHARE Basic 33.54 p 25.29 p 46.40 pDiluted 33.15 p 25.03 p 45.89 pAdjusted basis 33.54 p 25.29 p 54.67 pDiluted adjustedbasis 33.15 p 25.03 p 54.07 p EARNINGS PER SHAREPER UNQUOTED 10P 'B' ORDINARYSHAREBasic 3.35 p 2.53 p 4.64 pDiluted 3.32 p 2.50 p 4.59 pAdjusted basis 3.35 p 2.53 p 5.47 pDiluted adjustedbasis 3.32 p 2.50 p 5.41 p The results and EPS measures above are all in respect of continuing operationsof the Group. Finance costs for the 26 weeks to 1 October 2005 have been restated to includethe finance charge on net pension liabilities, which were originally shown aspart of operating costs. The details of this restatement are given in note 3. FULLER SMITH & TURNER P.L.C. GROUP BALANCE SHEET 30 SEPTEMBER 2006 Unaudited Unaudited Audited At At At 30 September 1 October 1 April 2006 2005 2006 £000 £000 £000 RestatedNON-CURRENT ASSETSGoodwill 24,493 - 24,493Property, plant and equipment 306,855 216,558 315,985Investment property 8,284 1,623 8,304Other non-current assets 927 737 1,006Deferred tax assets 7,661 4,084 7,579 ------------------ ------------------ ------------------TOTAL NON-CURRENT ASSETS 348,220 223,002 357,367 CURRENT ASSETSInventories 5,902 4,691 5,484Trade and other receivables 14,908 12,668 14,647Cash and short term deposits 1,336 1,773 1,370Assets classified as held for sale 9,294 - - ------------------ ------------------ ------------------TOTAL CURRENT ASSETS 31,440 19,132 21,501 CURRENT LIABILITIESBank overdraft 164 7,096 286Bank loans 5,000 - 2,500Trade and other payables 34,485 25,352 34,763Current tax payable 2,756 2,991 1,391 ------------------ ------------------ ------------------TOTAL CURRENT LIABILITIES 42,405 35,439 38,940 NON-CURRENT LIABILITIESBank loans 92,000 - 97,000Debenture stock 27,022 27,011 27,016Loan notes 2,971 - 2,971Preference shares 1,600 1,600 1,600Retirement benefit obligations 21,919 11,624 21,646Deferred tax liabilities 33,898 12,157 34,036 ------------------ ------------------ ------------------TOTAL NON-CURRENT LIABILITIES 179,410 52,392 184,269 ------------------ ------------------ ------------------NET ASSETS 157,845 154,303 155,659 ================== ================== ================== CAPITAL AND RESERVESShare capital 22,758 22,857 22,870Share premium account 4,594 4,248 4,289Capital redemption reserve 3,087 2,902 2,902Treasury shares (4,846) (4,238) (4,662)Retained earnings 132,252 128,534 130,260 ------------------ ------------------ ------------------TOTAL SHAREHOLDERS' EQUITY 157,845 154,303 155,659 ================== ================== ================== Comparative figures for the 26 weeks to 1 October 2005 have been restated toreflect the grossing up of deferred tax between the liability and asset. FULLER SMITH & TURNER P.L.C. GROUP CASH FLOW STATEMENT FOR THE 26 WEEKS ENDED 30 SEPTEMBER 2006 Unaudited Unaudited Audited 26 weeks to 26 weeks to 52 weeks to 30 September 1 October 1 April 2006 2005 2006 £000 £000 £000 Restated Group operating profit 15,109 9,628 22,425Depreciation 5,316 4,263 9,419Impairment of properties - - 175Loss on disposalof property plantand equipment 15 101 130Reorganisation costs - - (2,907)Difference betweenpension charge andcash paid (975) (209) (557)Share basedpayment charges 660 462 990Change in trade and otherreceivables (357) (594) (1,148)Change in inventories (418) (265) 77Change in tradeand other payables (393) 2,125 1,790 ----------------- ---------------- -----------------Cash generatedfrom operations 18,957 15,511 30,394Tax paid (1,797) (2,091) (4,814) ----------------- ---------------- -----------------Cash generatedfrom operatingactivities 17,160 13,420 25,580 ----------------- ---------------- ----------------- CASH FLOW FROM INVESTING ACTIVITIESPurchase ofproperty, plantand equipment (6,578) (19,900) (21,561)Proceeds from saleof property, plantand equipment 1,299 1,650 3,461Interest received 59 85 104Acquisition of subsidiaries - - (89,645) -------------- ------------- --------------Net cash flow frominvesting activities (5,220) (18,165) (107,641) -------------- -------------- -------------- CASH FLOW FROM FINANCING ACTIVITIES Proceeds fromissue of sharecapital 378 124 178Purchase of ownshares (2,814) (1,234) (1,864)Sale of treasuryshares 271 256 256Interest paid (3,967) (1,351) (3,316)Preferencedividends paid (60) (60) (120)Equity dividendspaid (3,160) (2,923) (4,183)(Decrease)/increase in bank loans (2,500) - 87,584 --------------- ---------------- -----------------Net cash used infinancingactivities (11,852) (5,188) 78,535 --------------- ---------------- -----------------Net movement incash and cashequivalents 88 (9,933) (3,526)Cash and cashequivalents atstart of theperiod 1,084 4,610 4,610 --------------- ---------------- ----------------Cash and cashequivalents atperiod end 1,172 (5,323) 1,084 =============== ================ ================ Cash and cash equivalents comprise cash and other short term highly liquidinvestments with a maturity of three months or less. There were no significant non-cash transactions during the period, nor werethere any in the 26 weeks to 1 October 2005. During the year to 1 April 2006,there was one significant non-cash transaction, which was the issuing of£2,971,000 of loan notes on the acquisition of George Gale & Co. Ltd. The comparative figures for the 26 weeks to 1 October 2005 have been restated topresent the cash flows in line with the presentation adopted in the fullaccounts for the period ended 1 April 2006. The effect has been that the cashflow statement now starts with operating profit instead of profits before tax.In addition, £175,000 of interest charge is now presented within operatingprofit. There is no overall change in the net movement in cash and cashequivalents arising from this restatement. FULLER SMITH & TURNER P.L.C. STATEMENT OF RECOGNISED INCOME AND EXPENSE FOR THE 26 WEEKS ENDED 30 SEPTEMBER 2006 Unaudited Unaudited Audited 26 weeks to 26 weeks to 52 weeks to 30 September 1 October 1 April 2006 2005 2006 £000 £000 £000 Reduction in deferred taxliability due toindexation 159 237 212Net actuarial (losses)/gains onpension schemes (789) 1,053 (991) --------------- ---------------- ---------------Income and expenserecognised directlyin equity (630) 1,290 (779)Profit for the period 7,483 5,646 10,378 --------------- ---------------- ---------------Total recognisedincome and expensefor the period 6,853 6,936 9,599 =============== =============== =============== FULLER SMITH & TURNER P.L.C. NOTES TO THE ACCOUNTS 1. INTERIM STATEMENT Basis of preparation This interim statement, which is abridged and unaudited, has been prepared inaccordance with International Financial Reporting Standards, which are mandatoryfor interim financial statements, and is prepared on the basis of the accountingpolicies which are applicable as at the date of approval of these financialstatements. These accounting policies are consistent with the policies appliedin the 52 weeks to 1 April 2006, which are published as part of the accounts forthat period and which are available from the Group's website. The Group has notadopted IAS 34 'Interim Financial Reporting', which is not mandatory for UKGroups. The taxation charge is calculated by applying the annual effective tax rate tothe profit for the period. This interim statement does not constitute full accounts as defined by S.240 ofthe Companies Act 1985. The figures for the 52 weeks to 1 April 2006 are derivedfrom the published statutory accounts. Full accounts for the 52 weeks ended 1April 2006, including an unqualified auditors' report, have been delivered tothe Registrar of Companies. 2. SEGMENTAL ANALYSISUnaudited - 26 Fuller's Inns The Fuller's Unallocated Totalweeks to 30 September Beer Company2006 £000 £000 £000 £000 TOTAL REVENUE 72,281 29,130 - 101,411Inter-segmentsales - (10,349) - (10,349) ---------------- ----------------- ---------------- ----------------REVENUE FROMTHIRD PARTIES 72,281 18,781 - 91,062 ---------------- ----------------- ---------------- ----------------Operatingprofit 13,779 4,165 (2,835) 15,109Net financecosts - - (4,185) (4,185) ---------------- ----------------- ---------------- ----------------PROFIT BEFORETAX 13,779 4,165 (7,020) 10,924 ---------------- ----------------- ---------------- ---------------- Restated unaudited Fuller's Inns The Fuller's Unallocated Total- 26 weeks to1 October 2005 Beer Company £000 £000 £000 £000TOTAL REVENUE 51,366 23,265 - 74,631Inter-segmentsales - 7,275) - (7,275) ---------------- ----------------- ---------------- ----------------REVENUE FROMTHIRD PARTIES 51,366 15,990 - 67,356 ---------------- ----------------- ---------------- ----------------Operatingprofit 8,359 3,643 (2,374) 9,628Net financecosts - - (1,260) (1,260) ---------------- ----------------- ---------------- ----------------PROFIT BEFORETAX 8,359 3,643 (3,634) 8,368 ---------------- ----------------- ---------------- ---------------- As explained in note 3, operating profit has been restated for the presentationof the finance charge on net pension liabilities. Audited - 52 weeks Fuller's Inns The Fuller's Beer Unallocated Totalto 1 April 2006 Company £000 £000 £000 £000TOTAL REVENUE 111,911 51,285 - 163,196Inter-segmentsales - (18,048) - (18,048) ---------------- ----------------- ---------------- ----------------REVENUE FROMTHIRD PARTIES 111,911 33,237 - 145,148 ---------------- ----------------- ---------------- ----------------Operatingprofit 18,984 8,445 (5,004) 22,425Profit ondisposal ofproperties 265 - - 265Reorganisationcosts (470) (975) (1,462) (2,907)Net financecosts - - (4,473) (4,473) ---------------- ----------------- ---------------- ----------------PROFIT BEFORETAX 18,779 7,470 (10,939) 15,310 ---------------- ----------------- ---------------- ---------------- 3. FINANCE COSTS Unaudited Unaudited Audited 26 weeks to 26 weeks to 52 weeks to 30 September 1 October 1 April 2006 2005 2006 £000 £000 £000 RestatedPreference dividends (60) (60) (120)Finance charge onnet pensionliabilities (121) (175) (387)Interest payableon bank loans andoverdraft (4,063) (1,110) (4,070) ---------- ---------- ---------- (4,244) (1,345) (4,577) ========== ========== ========== Finance costs for the 26 weeks to 1 October 2005 have been restated to includethe finance charge on net pension liabilities, which was originally shown aspart of operating costs. The Group consider that this change in presentation isin line with evolving best practise in interpreting the requirements of IFRSs,and that it presents more relevant information by aiding comparability. Thisrestatement has no effect on profit before or after tax, or on basic or dilutedearnings per share for the 26 weeks to 1 October 2005. It has the effect ofreducing operating costs for the 26 week to 1 October 2005 by £175,000 and ofincreasing finance costs by £175,000. 4. TAXATION Unaudited Unaudited Audited 26 weeks to 26 weeks to 52 weeks to 30 September 1 October 1 April 2006 2005 2006 £000 £000 £000 TAX ON PROFIT ON ORDINARY ACTIVITIES Current income tax:Corporation tax 3,247 2,454 4,548Amountsunderprovided inprevious periods - - 63 ------------- ------------ ------------Total currentincome tax 3,247 2,454 4,611 -------------- ------------- ------------Deferred tax:Origination andreversal oftemporarydifferences 194 268 321 ----------- ----------- ------------Total deferred 194 268 321tax ------------ ------------ ------------TOTAL TAX CHARGEDIN THE INCOME STATEMENT 3,441 2,722 4,932 ============ ============ ============ TAX RELATING TO ITEMS (CREDITED)/DEBITED TO EQUITY Deferred tax:Reversal of deferredtax liability onrevaluations (159) (237) (212)Actuarial (loss)/gainon pension schemes (338) 451 (425) --------------- -------------- -------------TAX IN THE STATEMENTOF RECOGNISED INCOMEAND EXPENSE (497) 214 (637) ================ ================ =============== 5. DIVIDENDS PAID AND PROPOSED Unaudited Unaudited Audited 26 weeks to 26 weeks to 52 weeks to 30 September 1 October 1 April 2006 2005 2006 £000 £000 £000DECLARED AND PAID DURING THE PERIOD Equity dividends on ordinary shares:Final dividend paid in the period 3,160 2,923 2,923Interim dividend paidin the period - - 1,260 ---------------- ---------------- -------------- 3,160 2,923 4,183Dividends on cumulativepreference shares 60 60 120 ---------------- ---------------- --------------Dividends paid 3,220 2,983 4,303 ================= =============== ============== DIVIDENDS PER SHARE DECLARED IN RESPECT OF THE PERIOD pence pence penceInterim 6.47 5.63 5.63Final - - 14.12 --------------- --------------- --------------- 6.47 5.63 19.75 =============== ============= ============== The pence figures are for the £1 'A' ordinary shares and unquoted £1 'C'ordinary shares. The unquoted 10p 'B' ordinary shares carry dividend rights of 1/10 of those applicable to the £1 'A' ordinary shares. Own shares held in theFuller Smith & Turner P.L.C. Employee Share Trust 1998 do not qualify fordividends as the trustees have waived their rights. Dividends are also not paidon shares held as treasury shares. INTERIM DIVIDEND DECLARED BUT NOT YET PAID During the period the directors have declared an interim dividend payable on 5January 2007 of 6.47p (2005: 5.63p) for the £1 'A' ordinary shares and unquoted'C' ordinary shares, and 0.647p (2005: 0.563p) for the unquoted 'B' ordinaryshares, with a total estimated cost to the company of £1,445,000 (2005:£1,260,000) 6. EARNINGS PER SHARE Unaudited Unaudited Audited 26 weeks to 26 weeks to 52 weeks to 30 September 1 October 1 April 2006 2005 2006 £000 £000 £000Profit attributableto ordinaryshareholders 7,483 5,646 10,378Reorganisation costsnet of tax - - 2,035Profit on disposal ofproperties net of tax - - (185) -------------- --------------- --------------Adjusted earningsattributable toordinary shareholders 7,483 5,646 12,228 ============== ============= ============= Number Number NumberWeighted averageshare capital 22,310,000 22,328,000 22,365,000Dilutive outstandingoptions 264,000 232,000 250,000 --------------- --------------- ---------------Adjusted weightedaverage share capital 22,574,000 22,560,000 22,615,000 ============== =============== ============== £1 'A' ordinary Pence Pence Penceshares or unquoted £1'C' ordinary shares Basic earnings per share 33.54 25.29 46.40Diluted earnings per share 33.15 25.03 45.89Adjusted earnings per share 33.54 25.29 54.67Diluted adjusted earnings per share 33.15 25.03 54.07 Unquoted 10p 'B' Pence Pence Penceordinary shares Basic earnings per share 3.35 2.53 4.64Diluted earnings per share 3.32 2.50 4.59Adjusted earnings pershare 3.35 2.53 5.47Diluted adjustedearnings per share 3.32 2.50 5.41 The earnings per share calculation is based on earnings from continuingoperations (after deducting preference dividends) and on the weighted averageordinary share capital. Diluted earnings per share are calculated on the same earnings figure as forbasic earnings per share, divided by the weighted average number of ordinaryshares outstanding during the period plus the weighted average number ofordinary shares that would be issued on the conversion of all the dilutivepotential ordinary shares into ordinary shares. Previously reported adjusted earnings per share in the 1 April 2006 financialstatements had been calculated on an historic UK GAAP basis. This has beenrestated in these financial statements so that it is on a consistent basis withthe adjusted earnings per share calculated for the 26 weeks to 30 September2006. Adjusted earnings per share are calculated on earnings excluding exceptionalitems and on the same weighted average ordinary share capital as for the basicearnings per share. 7. RECONCILIATION OF MOVEMENTS IN TOTAL EQUITY Unaudited Unaudited Audited 26 weeks to 26 weeks to 52 weeks to 30 September 1 October 1 April 2006 2005 2006 £000 £000 £000 Opening total equity 155,659 152,283 152,283 Adjustments relatingto the adoption ofIAS 32 & 39 - (1,600) (1,600) ----------------- ---------------- ---------------Opening equity restated 155,659 150,683 150,683 Net actuarial (loss)/gain onpension schemes (789) 1,053 (991)Reversal of deferred tax liability onrevaluations 159 237 212Issue of new shares 376 124 178Shares purchased including treasuryshares (2,814) (1,234) (1,864)Shares released including treasuryshares 271 255 256Dividends declared and paid (3,160) (2,923) (4,183)Cost of share-based payments 660 462 990Profit for the period 7,483 5,646 10,378 ---------------- ---------------- --------------Closing total equity 157,845 154,303 155,659 ================ ================ ============== 8. POST BALANCE SHEET EVENT On 31 October 2006 the Company sold the Brigstow Hotel for £17.1 millionresulting in a profit of £7.6 million. At 30 September 2006 the net book valueof the Brigstow Hotel was £9.1 million. As required under IFRS5: Non currentassets held for sale and discontinued operations, this has been disclosed in thebalance sheet under Assets classified as held for sale. 9. SHAREHOLDERS' INFORMATION Shareholders who converted their £1 'A' ordinary shares to £1 'C' ordinaryshares are reminded that they have 30 days from 24 November 2006 should theywish to reconvert those 'C' shares back to 'A' shares. The next availableopportunity after that will be June 2007. For further details please contact theCompany Secretariat on 020 8996 2115. 10. INTERIM REPORT Copies of the interim report are being sent to shareholders and will beavailable from the Company's registered office: Griffin Brewery, Chiswick,London W4 2QB and the Company's website www.fullers.co.uk. 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