31st Mar 2008 07:01
St. Ives PLC31 March 2008 31 March 2008 ST IVES plc Interim Results for the 26 weeks ended 1 February 2008 St Ives plc, the UK's leading printing group, announces interim results for the26 weeks ended 1 February 2008. Key Points • Revenue £223.2m (2007: £209.2m)• Pre tax profit £12.5m (2007: £10.7m)• Underlying* pre tax profit £13.4m (2007: £11.4m)• Basic earnings per share from continuing operations 7.95p (2007: 6.62p)• Underlying* earnings per share 8.88p (2007: 7.43p)• Interim dividend maintained at 5.00p per share * before restructuring costs, provision releases and other one-off items Commenting on the results, Chief Executive, Brian Edwards said: "Despite challenging market conditions, we have continued to build on thefoundations laid over the last two years. "Although the economic outlook remains uncertain, we are confident our strategyof focusing on customer service and investing in the latest digital technology,while controlling costs and preserving margins, will enable us to make furtherprogress for shareholders." For further information contact: St Ives plc 020 7928 8844 Brian Edwards, Chief Executive Matt Armitage, Finance Director Smithfield 020 7360 4900 John Antcliffe Tom Hardman ST IVES plcInterim Results for the 26 weeks ended 1 February 2008 Results The results for the Group for the 26 weeks ended 1 February 2008 are in linewith expectations and show sales from operations of £223.2 million (2007 -£209.2m) and profit before tax, restructuring costs provision releases and otherone-off items of £13.4 million (2007 - £11.4 million). Profit before tax was£12.5 million (2007 - £10.7 million). Earnings per share before restructuringcosts, provision releases and other one-off items were 8.88p (2007 - 7.43p).Earnings per share from continuing operations were 7.95p (2007 - 6.62p). Underlying profit before tax, after excluding prior year discontinuedbusinesses, is 17.2% ahead of the first half of last year and the overallprogress made in the second half of the last financial year has continued. Dividend The Board has declared an interim dividend of 5p per share (2007 - 5p per share)which will be payable on 16 May 2008 to shareholders on the register at 18 April2008. Trading Conditions Trading conditions during the period remained very challenging and pricepressure continued. Sales growth in products requiring high levels of servicehas been partly offset by volume and price reductions in the more commoditisedareas. Continued action on costs and efficiencies enabled overall progress tobe made. Media Products* Revenue from Media Products were £92.1 million, some 5.9% ahead of the firsthalf of last year and underlying operating profit increased to £12.5 millionfrom £11.2 million. Revenues from book publishers grew as a result of increasedmarket share and customers continuing to take advantage of sales of added valueservices. Efficiencies and cost control were required to offset the effect ofprice pressure arising on contract renewals. Magazine revenues were modestly ahead as sales of shorter-run products continueto be won to replace the more commodity priced, mainly longer-run, titles.Prior year actions on cost and improved mix improved the returns in this area. Sales of CD and DVD packaging through our operations in the Netherlands werebroadly flat. Actions on flexibility and cost enabled the business to breakeven which was modestly ahead of the prior year, despite further deteriorationin the market. Commercial Products* Revenue from Commercial Products were £109.4 million which included sales fromService Graphics of £21.9 million. In 2007 these were included for a 13 weekperiod from the date of acquisition and amounted to £8.7 million. ExcludingService Graphics underlying sales grew by around 6%. The businesses supplyingthis segment returned an overall modest improvement in underlying operatingprofit of £1.8 million up from £1.5 million in the prior year. Direct Mail and UK music sales were weak, but overall volumes were maintained byincreased sales of general commercial printing. However, despite cost reductioninitiatives taken at the end of our last financial year, continuing pricecompetition and volatile demand resulted in a small loss in this area. Thetransition of work under the Royal Mail contract announced in October 2007 isunderway and on schedule. As expected, the contribution from this work wasnegligible in our first half year. Transition of all categories of work isplanned to be completed in the early summer. Visibility in the point-of-sale market reduced and demand was volatile.Encouragingly sales growth exceeded 10% but volume fluctuations made effectiveutilisation a challenge and profits remained flat compared with the first halflast year. Sales at Service Graphics, our exhibitions and outdoor mediabusiness, were in line with expectations to the end of November 2007 but werethen subdued in our second quarter. USA Following the consolidation of our sites in Florida and cost reductionsundertaken towards the end of our last financial year, our US business salesreduced by over 25% to £24.9 million, 5% of which was the currency effect ontranslation for reporting purposes. Sales in the commercial, point-of-sale anddirect markets were reduced as the market became more competitive and volumeswere varied at short notice. Magazines were similarly affected. Continuedrefinement of the work mix and cost reductions enabled us to improve the overallreturn on lower sales. Balance Sheet The Group's balance sheet remains robust with a strong operating cash flow forthe half year. Net debt reduced to £15.2 million although this is partly due tothe phasing of capital expenditure which is expected to amount to approximately£20 million in the second half of the financial year. Strategy Our strategy remains one of developing long-term, regular and contractualrelationships that allow us to deliver cost effective solutions to our customersand enable the business to develop in partnership with them. The focus onselling access to the Group's entire range of capabilities, started by our GroupSales team in the last financial year, continues to benefit most of our UKoperations. Concentration on customer service and further investment, including in thelatest digital and software solutions, will maintain the emphasis onnon-commodity business. Outlook The economic outlook remains uncertain and most markets are over-supplied andsubject to price pressure. There have recently been some closures ofcompetitors' capacity which, unusually, has not been resurrected although, sofar, this seems to have had little affect on pricing. Many of our customers are also experiencing challenging conditions in theirmarkets. Low visibility and significant short-term fluctuations in demandremain a feature in most markets. Against this background, demand for books has remained steady although there isan increasing demand for ever shorter run lengths. The construction of our newwarehouse facility at our book factory is on schedule and will be completed inthe Autumn, allowing us better to serve the requirements for post-productionadded value services. In Magazines the volumes were at lower levels for thefirst two months of this calendar year but have since increased. Enquiries havealso increased following the recent closures of competitors' capacity. Demand for products in our Dutch music and multimedia business has been subdued. This market presents an increasingly uncertain future and the business remainsunder close review. For several weeks after Christmas, point-of-sale demand was also subdued butthis has since improved. Exhibitions and outdoor media has followed a similarpattern. Direct Mail and Commercial markets remain over-supplied but the continuingtransition of the Royal Mail work is helping to compensate for the lower demandin other areas of the market. Indications are that the Report and Accountsmarket, which falls predominantly in our second half, has not yet experiencedthe significant fall in volume anticipated following the recent change inlegislation. In the US, similar market conditions exist to those experienced in the UK. Mostmarkets are over-supplied and subject to price pressure and we continue topursue shorter-run niche markets with specialist requirements. Despite continuing economic uncertainties, we are confident that our strategy ofsupplying cost effective solutions, an emphasis on superior customer service,well invested facilities and a strong balance sheet will allow us to continue togrow market share in chosen areas and make further progress for ourshareholders. Brian EdwardsChief Executive 31 March 2008 * See note 2 to the accompanying financial statements. CONDENSED CONSOLIDATED INCOME STATEMENT 26 weeks to 1 February 2008 Before Restructuring restructuring costs, costs, provision provision releases and 27 weeks 53 weeks releases and other one-off to to other one-off items 2 February 3 August items (note 3) Total 2007 2007 ------------ ------------ ---------- ------------ ------------ £'000 £'000 £'000 £'000 £'000Revenue (note 2) Existing activities 223,188 - 223,188 200,461 394,688 Acquired activities - - - 8,739 30,342 223,188 - 223,188 209,200 425,030Cost of sales (166,089) (954) (167,043) (160,789) (320,481) ------------ ------------ ---------- ------------ ------------Gross profit 57,099 (954) 56,145 48,411 104,549Sales and distribution costs (16,362) - (16,362) (12,589) (29,090)Administrative expenses (25,789) (334) (26,123) (23,883) (49,300) Other operating income Profit on disposal of 391 447 838 274 5,405fixed assets Other income - - - 423 - 391 447 838 697 5,405 ------------ ------------ ---------- ------------ ------------Profit from operations (note 2) Existing activities 15,339 (841) 14,498 12,967 29,865 Acquired activities - - - - (331) 1,699(loss) 15,339 (841) 14,498 12,636 31,564Investment income 5,440 - 5,440 5,032 10,171Finance costs (7,413) - (7,413) (6,924) (14,179) ------------ ------------ ---------- ------------ ------------Profit before tax 13,366 (841) 12,525 10,744 27,556Income tax expense (note 4) (4,210) (121) (4,331) (3,927) (7,157) ------------ ------------ ---------- ------------ ------------Profit for the period from continuing operations 9,156 (962) 8,194 6,817 20,399Loss from discontinued operations - - - (14,115) (14,084) ------------ ------------ ---------- ------------ ------------Net profit/(loss) for the 9,156 (962) 8,194 (7,298) 6,315period ============ ============ ========== ============ ============ Basic and diluted earnings/(loss) per share (note 6) From continuing operations 7.95p 6.62p 19.80p ========== ============ ============ From continuing and discontinued 7.95p (7.08p) 6.13poperations ========== ============ ============ CONDENSED CONSOLIDATED BALANCE SHEET 1 February 2 February 3 August 2008 2007 2007 ---------- ---------- ---------- £'000 £'000 £'000ASSETSNon-current assets Property, plant and equipment 141,824 159,490 147,006 Goodwill 54,679 54,996 54,679 Other intangible assets 1,755 1,682 1,394 Deferred tax assets 7,004 6,246 4,785 Other non-current assets 3,176 125 338 ---------- ---------- ---------- 208,438 222,539 208,202 ---------- ---------- ----------Current assets Inventories 13,340 13,804 13,824 Trade and other receivables 81,077 71,793 78,750 Cash and cash equivalents 14,144 9,550 7,547 Assets held for sale 4,604 - 3,345 ---------- ---------- ---------- 113,165 95,147 103,466 ---------- ---------- ----------Total assets 321,603 317,686 311,668 ---------- ---------- ----------LIABILITIESCurrent liabilities Trade and other payables 72,165 56,494 57,485 Loans and bank overdrafts 358 47,693 2,327 Other financial liabilities 382 433 419 Current tax payable 5,170 5,188 4,293 Deferred income 196 250 222 Provisions 2,322 1,281 2,973 ---------- ---------- ---------- 80,593 111,339 67,719 ---------- ---------- ----------Non-current liabilities Loans and bank overdrafts 28,540 - 27,892 Retirement benefit obligations (note 9) 55,008 47,162 45,203 Deferred income 1,384 130 1,604 Other financial liabilities 79 1,527 521 Provisions 1,695 1,582 4,202 ---------- ---------- ---------- 86,706 50,401 79,422 ---------- ---------- ----------Total liabilities 167,299 161,740 147,141 ---------- ---------- ----------Net assets 154,304 155,946 164,527 ========== ========== ==========EQUITYCapital and reserves Share capital 10,355 10,355 10,355 Other reserves (note 7) 46,061 45,468 45,127 Retained earnings (note 8) 97,888 100,123 109,045 ---------- ---------- ----------Total equity 154,304 155,946 164,527 ========== ========== ========== This interim statement was approved by the board of directors on 31 March 2008. CONDENSED CONSOLIDATED CASH FLOW STATEMENT 26 weeks 27 weeks 53 weeks to to to 1 February 2 February 3 August 2008 2007 2007 ---------- ---------- ---------- £'000 £'000 £'000Operating activities Cash generated from operations (note 10) 32,886 9,162 37,491 Interest received 247 257 465 Interest paid (823) (961) (2,530) Income taxes paid (3,017) (1,625) (5,946) ---------- ---------- ----------Net cash from operating activities 29,293 6,833 29,480 ---------- ---------- ----------Investing activities Acquisitions, net of cash acquired - (18,357) (18,358) Purchase of property, plant and equipment (8,640) (10,901) (20,396) Purchase of other intangibles (816) (739) (813) Proceeds on disposal of property, plant and 1,189 1,915 7,784equipment Disposal proceeds of subsidiary, net of cash - 3,911 4,288disposed Regional grants received - - 1,092 ---------- ---------- ----------Net cash used in investing activities (8,267) (24,171) (26,403) ---------- ---------- ----------Financing activities Loan notes redeemed - (339) (1,287) Capital element of finance lease rentals (211) (109) (335) Dividends paid (note 5) (12,521) (12,521) (17,673) Increase in bank loans - - 10,000 (Decrease)/increase in bank overdrafts (1,969) 27,532 1,641 ---------- ---------- ----------Net cash (used in)/generated from financing (14,701) 14,563 (7,654)activities ---------- ---------- ----------Net increase/(decrease) in cash and cash equivalents 6,325 (2,775) (4,577)Cash and cash equivalents at beginning of period 7,547 12,620 12,620 Effect of foreign exchange rate changes 272 (295) (496) ---------- ---------- ----------Cash and cash equivalents at end of period (note 10) 14,144 9,550 7,547 ========== ========== ========== CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE 26 weeks 27 weeks 53 weeks to to to 1 February 2 February 3 August 2008 2007 2007 ---------- ---------- ---------- £'000 £'000 £'000 Exchange gains/(losses) on translating foreign 905 (1,045) (1,189)operationsActuarial (losses)/gains on defined benefit pension (9,486) 12,472 14,936schemesTax on items taken directly to equity 2,656 (3,565) (5,713) ---------- ---------- ----------Net (loss)/income recognised directly in equity (5,925) 7,862 8,034 Transfer to profit and loss from equity of exchange differences on disposal of foreign operation - 38 38Transfer to initial carrying amount of non-financial hedged items on cash flow hedges - - 85Tax on items transferred from equity - - (26)Profit/(loss) for the period 8,194 (7,298) 6,315 ---------- ---------- ----------Total recognised income 2,269 602 14,446 ========== ========== ========== NOTES TO THE FINANCIAL STATEMENTS 1. Basis of preparation The interim statements have been prepared in accordance with IAS34 'InterimFinancial Reporting', the recognition and measurement principles ofInternational Financial Reporting Standards as adopted by the European Union,and those parts of the Companies Act 1985 applicable to companies reportingunder IFRS. The interim statements have been prepared in accordance with the accountingpolicies set out in the Group's Annual Report and Accounts for 2007. Certainbalance sheet items have been reclassified in the prior year comparatives toreflect changes in presentation. The interim statements have not been auditedor reviewed. The interim statements do not comprise statutory accounts for the purpose ofsection 240 of the Companies Act 1985. The abridged information for the fiftythree weeks to 3 August 2007 has been extracted from the Group's statutoryaccounts for that period which have been filed with the Registrar of Companies. The auditor's report in the accounts of the Group for that period wasunqualified and did not contain a statement under either section 237(2) orsection 237(3) of the Companies Act 1985. 2. Segment reporting The Group manages its business on a market segment basis. Inter-segment salesare charged at arm's length prices. Corporate costs before restructuring costs,provision releases and other one-off items are allocated to revenue generatingsegments as this presentation better reflects their profitability. As part of areorganisation to improve plant utilisation, two UK operating sites have beentransferred from the Print & Display division reported within Media Products tothe Direct division within Commercial Products. Segmental results in the priorhalf year and full year segmental analysis comparatives have been adjusted toreflect these changes in presentation. Business segments 26 weeks to 1 February 2008 Media Commercial Products Products USA Elimination Total -------- -------- -------- -------- -------- £'000 £'000 £'000 £'000 £'000Revenue External sales 90,735 107,512 24,941 - 223,188 Inter-segment sales 1,339 1,872 - (3,211) - -------- -------- -------- -------- --------Total revenue 92,074 109,384 24,941 (3,211) 223,188 ======== ======== ======== ======== ========Result Segment result 10,733 2,698 1,067 - 14,498 Add back restructuring costs, provision 1,727 (886) - - 841 releases and other one-off items -------- -------- -------- -------- -------- Segment result before restructuring costs, provision releases and other one-off items 12,460 1,812 1,067 - 15,339 ======== ======== ======== ======== Total restructuring costs, provision releases and other one-off items (841) -------- Profit from continuing operations 14,498 Investment income 5,440 Finance costs (7,413) -------- Profit before tax 12,525 Income tax expense (4,331) --------Profit for the period from continuing operations 8,194 ======== 27 weeks to 2 February 2007 Media Commercial Products Products USA Elimination Total -------- -------- -------- -------- -------- £'000 £'000 £'000 £'000 £'000Revenue External sales 85,628 89,975 33,597 - 209,200 Inter-segment sales 1,276 1,458 42 (2,776) - -------- -------- -------- -------- --------Total revenue 86,904 91,433 33,639 (2,776) 209,200 ======== ======== ======== ======== ========Result Segment result 11,165 1,550 671 - 13,386 Add back restructuring costs, provision - (86) - - (86) releases and other one-off items -------- -------- -------- -------- -------- Segment result before restructuring costs, provision releases and other one-off items 11,165 1,464 671 - 13,300 ======== ======== ======== ======== Total restructuring costs, provision releases and other one-off items (664) -------- Profit from continuing operations 12,636 Investment income 5,032 Finance costs (6,924) -------- Profit before tax 10,744 Income tax expense (3,927) --------Profit for the period from continuing operations 6,817 ======== 53 weeks to 3 August 2007 Media Commercial Products Products USA Elimination Total -------- -------- -------- -------- -------- £'000 £'000 £'000 £'000 £'000Revenue External sales 174,350 191,414 59,266 - 425,030 Inter-segment sales 2,210 2,999 28 (5,237) - -------- -------- -------- -------- --------Total revenue 176,560 194,413 59,294 (5,237) 425,030 ======== ======== ======== ======== ========Result Segment result 24,352 4,874 (1,145) - 28,081 Add back restructuring costs, provision 1,982 1,626 2,640 - 6,248 releases and other one-off items -------- -------- -------- -------- -------- Segment result before restructuring costs, provision releases and other one-off items 26,334 6,500 1,495 - 34,329 ======== ======== ======== ======== Total restructuring costs, provision releases and other one-off items (2,765) -------- Profit from continuing operations 31,564 Investment income 10,171 Finance costs (14,179) -------- Profit before tax 27,556 Income tax expense (7,157) --------Profit for the period from continuing operations 20,399 ======== Geographical segments The Media Products and Commercial Products business segments operate primarilyin the UK, deriving more than 90% of their revenues and profits from operationsand customers located in the UK. The USA segment operates exclusively in theUnited States. 3. Restructuring costs, provision releases and other one-off items Restructuring costs, provision releases and other one-off items included withinthe income statement in respect of continuing operations are as follows: 26 weeks 27 weeks 53 weeks to to to 1 February 2 February 3 August 2008 2007 2007 ---------- ---------- ---------- £'000 £'000 £'000(Expense)/incomeRestructuring items Redundancies, impairments and other charges (2,527) (188) (7,008) Provision releases 1,432 - 42 Profit on disposal of fixed assets 447 274 4,809 ---------- ---------- ---------- (648) 86 (2,157)Other Bid approach costs - (750) (608) Press fire (193) - - ---------- ---------- ---------- (841) (664) (2,765)Related income tax (121) (176) 2,303 ---------- ---------- ---------- (962) (840) (462) ========== ========== ========== Within restructuring items, redundancies impairments and other charges includeasset write downs, redundancy, and other costs within the Media Products andCommercial Products segments. Impairment charges of £2,137,000 were recorded inthe Netherlands Print & Display business within the Media Products segment,following further deterioration in the market outlook. The release ofprovisions in the period relates to the Media Products and Commercial Productssegments following the finalisation of related activities. Profit on the sale offixed assets relates to disposals of plant and machinery in the CommercialProducts segment. The press fire item includes costs arising from the fire at the Peterboroughplant (within the Media Products segment) which are not recoverable throughinsurance due to being below the policy excess. 4. Tax Tax on profit as shown in the income statement is as follows: 26 weeks 27 weeks 53 weeks to to to 1 February 2 February 3 August 2008 2007 2007 ---------- ---------- ---------- £'000 £'000 £'000 United Kingdom income tax 4,217 3,751 7,821Overseas income tax 114 176 (664) ---------- ---------- ---------- 4,331 3,927 7,157 ========== ========== ========== The phased abolition of Industrial Buildings Allowances which will be enacted inthe UK Finance Act 2008 is expected to increase the deferred tax liability by£5.7 million, based on capital expenditure incurred as of 1 February 2008. Thischange will be recorded in the second half of the current financial year underthe income statement column restructuring costs, provision releases and otherone-off items. 5. Dividends 26 weeks to 27 weeks to 53 weeks to 1 February 2 February 3 August 2008 2007 2007 ----------- ----------- ----------- per share £'000 £'000 £'000Final dividend paid for the 52 weeks ended 28 July 2006 12.15p - 12,521 12,521Interim dividend paid for the 27 weeks to 2 February 2007 5.00p - - 5,152Final dividend paid for the 53 weeks ended 3 August 2007 12.15p 12,521 - - ---------- ---------- ----------Dividends paid during the period 12,521 12,521 17,673 ========== ========== ==========Proposed interim dividend for the 26 weeks to 1 February 2008 5.00p 5,152 ========== 6. Earnings per share Number of shares 26 weeks 27 weeks 53 weeks to to to 1 February 2 February 3 August 2008 2007 2007 ---------- ---------- ---------- million million million Weighted average number of ordinary shares for the 103.1 103.0 103.1 purposes of basic earnings per shareDiluted potential ordinary shares from share options - - - ========== ========== ==========Diluted weighted average number of shares 103.1 103.0 103.1 ========== ========== ========== Basic and diluted earnings per share 26 weeks to 27 weeks to 53 weeks to 1 February 2008 2 February 2007 3 August 2007 Earnings Earnings Earnings Earnings Earnings Earnings per per per share share share -------- -------- -------- -------- -------- -------- £'000 pence £'000 pence £'000 penceEarnings and earnings per share from continuing activitiesEarnings and basic earnings per share 8,194 7.95 6,817 6.62 20,399 19.80Restructuring costs, provision releases and other one-off items 962 0.93 840 0.81 462 0.45 -------- -------- -------- -------- -------- --------Adjusted earnings and adjusted earnings per share 9,156 8.88 7,657 7.43 20,861 20.25 ======== ======== ======== ======== ======== ========Losses and loss per share from discontinued activitiesLosses and basic loss per share - - (14,115) (13.70) (14,084) (13.67)Restructuring costs, provision releases and other one-off items - - 13,284 12.89 13,219 12.83 -------- -------- -------- -------- -------- --------Adjusted losses and adjusted loss per share - - (831) (0.81) (865) (0.84) ======== ======== ======== ======== ======== ========Basic earnings/(loss) per share from continuing and discontinued activities 7.95 (7.08) 6.13 ======== ======== ======== Adjusted earnings/(loss) is calculated by adding back restructuring costs,provision releases and other one-off items, as adjusted for tax, to the profit/(loss) for the period. 7. Other reserves Hedging Capital Share and Share ESOP redemption option translation premium reserve reserve reserve reserve Total ------- ------- ------- ------- ------- ------- £'000 £'000 £'000 £'000 £'000 £'000 Balance at 28 July 2006 46,689 (1,913) 1,238 209 111 46,334Exchange differences and related tax - - - - (868) (868)Foreign exchange losses recycled to - profit and loss - - - 38 38Recognition of share-based payments - - - (36) - (36) ------- ------- ------- ------- ------- -------Balance at 2 February 2007 46,689 (1,913) 1,238 173 (719) 45,468Exchange differences and related tax - - - - (289) (289)Cash flow hedges Transferred to fixed assets - - - - 85 85 Tax on items taken directly to or - - - - (26) (26) transferred from equityRecognition of share-based payments - - - (111) - (111) ------- ------- ------- ------- ------- -------Balance at 3 August 2007 46,689 (1,913) 1,238 62 (949) 45,127Exchange differences and related tax - - - - 905 905Recognition of share-based payments - - - 29 - 29 ------- ------- ------- ------- ------- -------Balance at 1 February 2008 46,689 (1,913) 1,238 91 (44) 46,061 ======= ======= ======= ======= ======= ======= 8. Retained earnings £'000 Balance at 28 July 2006 111,212Dividends paid (12,521)Loss for the period attributable to equity holders of the parent (7,298)Actuarial gains on defined benefit pension schemes, net of associated tax 8,730 --------Balance at 2 February 2007 100,123Dividends paid (5,152)Profit for the period attributable to equity holders of the parent 13,613Actuarial gains on defined benefit pension schemes, net of associated tax 461 --------Balance at 3 August 2007 109,045Dividends paid (12,521)Profit for the period attributable to equity holders of the parent 8,194Actuarial losses on defined benefit pension schemes, net of associated tax (6,830) --------Balance at 1 February 2008 97,888 ======== 9. Retirement benefits The net liability in respect of retirement benefit obligations of £55.0 millionat the balance sheet date has increased compared to 3 August 2007 (£45.2million) primarily due to the use of more conservative mortality assumptions aswell as an increase in the expected rate of inflation from 3.1% to 3.4%. 10. Notes to the consolidated cash flow statement Reconciliation of cash generated from operations 26 weeks to 27 weeks to 53 weeks to 1 February 2 February 3 August 2008 2007 2007 ----------- ----------- ----------- £'000 £'000 £'000 Profit from continuing operations 14,498 12,636 31,564Loss from discontinued operations - (1,187) (991) Adjustments for: Depreciation and impairment of property, plant and 13,553 13,227 26,670 equipment Amortisation of intangible assets 467 196 810 Gain on disposal of property, plant and equipment (838) (697) (5,405) Deferred income (246) (112) (218) Share-based payment expense/(credit) 29 (36) (147) Decrease in retirement benefit obligations (657) (744) (1,112) (Decrease)/increase in provisions (3,516) (947) 2,098 ----------- ----------- -----------Operating cash flows before movements in working 23,290 22,336 53,269capital Decrease/(increase) in inventories 625 (606) (726) (Increase)/decrease in receivables (4,532) 2,193 (6,157) Increase/(decrease) in payables 13,503 (14,761) (8,895) ----------- ----------- -----------Cash generated from operations 32,886 9,162 37,491 =========== =========== =========== Analysis of net debt 3 August Exchange 1 February 2007 Cash flow movements 2008 -------- -------- -------- -------- £'000 £'000 £'000 £'000 Cash and cash equivalents 7,547 6,329 268 14,144Bank overdrafts (1,969) 1,969 - -Bank loans (27,892) - (648) (28,540)Loan notes (358) - - (358)Finance leases (627) 211 - (416) -------- -------- -------- -------- (23,299) 8,509 (380) (15,170) ======== ======== ======== ======== Cash and cash equivalents (which are presented as a single class of assets onthe face of the balance sheet) comprise cash at bank and other short-term highlyliquid investments with a maturity of three months or less. The effectiveinterest rates on cash and cash equivalents are based on current market rates. Finance lease obligations are included within other financial liabilities undercurrent liabilities and non-current liabilities 11. A copy of the half yearly statement will be sent to all shareholders. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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