31st Jul 2006 07:00
Ultra Electronics Holdings PLC31 July 2006 Embargoed until 0700 31 July 2006 Ultra Electronics Holdings plc ("Ultra" or "the Group") Interim Results for the Six Months to 30 June 2006 FINANCIAL HIGHLIGHTS Six months to Six months to Change 30 June 2006 30 June 2005Revenue £180.7m £158.2m +14%Operating profit* £25.3m £22.3m +13%Profit before tax** £23.8m £20.7m +15%Earnings per share** 25.5p 22.4p +14%Dividend per share 5.9p 5.2p +13% * Before amortisation of intangibles arising on acquisition. IFRS profit from operations £23.6m (2005: £22.1m).** Before amortisation of intangibles arising on acquisition and profit on fair value movements on derivatives. IFRS profit before tax £26.6m (2005:£19.1m). Basic EPS 28.5p (2005: 20.6p). • Good Group performance - Buoyant conditions in civil aerospace drove revenue growth in Aircraft & Vehicle Systems. Investment in Boeing 787 programme continued - Strong ADSI system sales boosted margins at Information & Power Systems - Tactical & Sonar Systems benefited from 2005 acquisitions and from consistent sonobuoy sales• Operating profit* margins maintained at 14% despite currency impact• Continuing investment to underpin medium-term growth• £56m contract for Eurofighter Litening pod• Order book increased 36% to over £550m, providing good visibility Douglas Caster, Chief Executive, commented: "Ultra has again demonstrated solid growth of sales and profits. The broadspread of Ultra's specialist activities in different market sectors, its strongorder book and proven ability to execute programmes successfully give anexcellent basis for continued progress. With a strong balance sheet driven byhigh quality of earnings over the last few years, Ultra has the capacity tocontinue its strategy of acquiring, at appropriate prices, complementarybusinesses that strengthen its market niches. These factors give the Boardconfidence in the Group's prospects for 2006." Enquiries: Ultra Electronics Holdings plc 020 8813 4321Douglas Caster, Chief Executive www.ultra-electronics.comDavid Jeffcoat, Group Finance Director [email protected] Weber Shandwick Square Mile 020 7067 0700Susan Ellis/Louise Robson 31 July 2006 Ultra Electronics Holdings plc ("Ultra" or "the Group") Interim Results for the Six Months to 30 June 2006 Ultra continued to make good progress in the first half of 2006. Tradingremained strong, reflecting the buoyant market conditions in many of the sectorswithin which Ultra has positioned itself. The good sales and profit growthincluded contributions from the 2005 acquisitions, Horizon Aerospace andAudiopack, and from Polyflex, acquired in January 2006. Despite the effects ofcurrency, Ultra has maintained its operating margin(1), reflecting the constantmanagement focus on achieving efficiencies in all areas of operation. The Grouphas continued to win new business on a broad range of international programmesand the closing order book of £554m gives good visibility of earnings. FINANCIAL RESULTS Six months ended Six months Growth 30 June ended 30 June 2006 2005 £m £m Order book - Aircraft & Vehicle Systems 150.6 75.0 100.8% - Information & Power Systems 115.6 113.4 1.9% - Tactical & Sonar Systems 287.4 219.0 31.2% --------------------------------------- Total order book 553.6 407.4 35.9% Revenue - Aircraft & Vehicle Systems 45.6 39.5 15.4% - Information & Power Systems 60.1 58.8 2.2% - Tactical & Sonar Systems 75.0 59.9 25.2% --------------------------------------- Total revenue 180.7 158.2 14.2% Organic growth 10.8% Operating profit(1) - Aircraft & Vehicle Systems 6.9 7.7 (10.4%) - Information & Power Systems 9.1 7.3 24.7% - Tactical & Sonar Systems 9.3 7.3 27.4% --------------------------------------- Total operating profit(1) 25.3 22.3 13.5% Interest (1.5) (1.6) --------------------------------------- Headline profit before tax(2) 23.8 20.7 15.0% Operating margin(1) - Aircraft & Vehicle Systems 15.1% 19.5% - Information & Power Systems 15.1% 12.4% - Tactical & Sonar Systems 12.4% 12.2% --------------------------------------- Total operating margin(1) 14.0% 14.1% Operating cash flow(3) 18.4 16.3 Cash conversion(4) 73% 73% Net debt(5) at period-end 31.0 24.3 Bank interest cover 17.1x 20.7x Earnings per share(2) 25.5p 22.4p 13.8% (1) before amortisation of intangibles arising on acquisition. (2) beforeamortisation of intangibles arising on acquisition and profit on fair valuemovements on derivatives. (3) cash generated by operations, less net capitalexpenditure, R&D and LTIP share purchases. (4) cash generated by operations, less net capital expenditure, R&D and LTIP share purchases as % of profit fromoperations before amortisation of intangibles arising on acquisition. (5) bankoverdrafts and loans less cash and cash equivalents. Revenue was 14% higher at £180.7m, compared to £158.2m for the same period lastyear • of this revenue growth, 11% was organic • at constant currencies, underlying revenue growth was 8% Operating profit(1) increased 13% to £25.3m (2005: £22.3m) • operating margin(1) maintained at 14% • at constant currencies operating profit growth was 21% Operating cash conversion(4) was better than expected at 73% due to higher thananticipated customer receipts at the end of the period. This was in spite of theGroup's continuing investment in the Boeing 787 and Airbus A400M programmes. Netdebt(5) at the end of the period was £31.0m compared to £34.3m at the beginningof the year. The Group's balance sheet remains strong, with net interest payableon borrowings covered approximately 17 times by operating profit(1). An interim dividend of 5.9p (2005: 5.2p) will be paid on 29 September 2006 tothose shareholders on the register at the close of business on 25 August 2006. OPERATIONAL REVIEW Aircraft & Vehicle Systems Revenue in Aircraft & Vehicle Systems increased by 15% to £45.6m compared to£39.5m for the same period last year while operating profit(1) was 10% lower at£6.9m (2005: £7.7m). At £150.6m, the value of the order book at the end of theperiod was double that at June 2005 reflecting, in the main, the receipt of anumber of contracts for equipment for the second tranche of the Eurofighteraircraft programme. Revenue growth was driven by the buoyant civil aerospace market and by the earlystages of customer-funded development programmes. The results include acontribution from Polyflex, acquired in January 2006 and now integrated into theGroup's Precision Air Systems business. Operating profit(1) for the division reflected an adverse currency impact andUltra's investment in the wing ice protection system for Boeing's 787 aircraft. Highlights in the performance of this division included: • on-schedule development of the de-icing system for the Boeing 787 • selection by Pratt & Whitney to supply de-icing equipment for its F-135 engine for the F-35 Joint Strike Fighter aircraft, with an initial development contract worth $12m • selection to supply specialist electronic modules within the cargo load-handling system of the Airbus A400M military transport aircraft. Ultra will now be supplying five sub-systems on the aircraft with a total value of £56m for the 192 aircraft currently on order Information & Power Systems Revenue in Information & Power Systems grew slightly to £60.1m compared to£58.8m for the same period last year while operating profit(1) increased by 25%to £9.1m (2005: £7.3m). The order book at the end of the period increased by 2%to £115.6m (2005: £113.4m). Revenue growth benefited from strong growth in sales of ADSI command and controlsystems and of airport IT systems offset by the completion of some rail andnaval power equipment contracts. Operating profit(1) growth was increased by the licence fees associated with thehigh level of sales of ADSI systems and the benefit of last year's restructuringof the division's transit power activity. Highlights of Information & Power Systems performance included: • significant orders for battlespace IT products including a new application for ADSI in missile defence and resumed sales to the US Marine Corps • strong growth of airport IT systems, with high levels of activity at London's Heathrow Terminal 5 and at Shanghai's Pudong international airport • good progress developing new naval nuclear reactor control and instrumentation equipment for Rolls-Royce Tactical & Sonar Systems Revenue in Tactical & Sonar Systems increased by 25% to £75.0m (2005: £59.9m)and operating profit(1) increased by 27% to £9.3m (2005: £7.3m). The closingorder book of £287.4m was 31% higher than at June 2005. Revenue growth was strong, with contributions from the 2005 acquisitions,Audiopack and Horizon, as well as higher sales of tactical radios, mainly forthe US Army, and of torpedo defence systems for the Royal Navy. Operating profit(1) growth reflected the contribution from acquisitions and theincrease in margin on programmes such as the Royal Navy torpedo defence systemwhere system performance risks continue to be mitigated during the seriesproduction phase. Highlights of this division's performance included: • US sonobuoy revenue higher than the comparable period last year following the introduction of a new design variant • the contract for the Litening electronic targeting pod for the RAF's Eurofighter Typhoon aircraft - another example of the successful strategy of teaming with 'best-of-breed' international partners, with Ultra providing the UK with sovereign operational independence • the continuing development of the next generation of personal communication equipment for firefighters to ensure compliance with new legal requirements, to become effective in 2007 • selection to supply sonobuoy telemetry receivers for the Brazilian P-3 anti-submarine warfare aircraft upgrades PROSPECTS The trend in defence budgets continues to focus on achieving smart capabilitythrough the procurement of new electronic equipment and the periodic upgrade ofexisting platforms. While there are ambitious plans for 'smarter' equipment,there continue to be pressures on budgets as funds are allocated to meet thepriorities of current peacekeeping operations. Ultra is well positioned in growth areas of the defence market. The Group isexperiencing strong demand for its range of niche products such as battlespaceIT equipment and solutions for improved mobility to support expeditionaryoperations. Ultra has continuing growth opportunities driven by its expertise ininternational teaming, its ability to support the UK's requirement for sovereignoperational capability for its armed forces and its track record of providingand delivering excellent solutions to customers. Trading conditions in civil aerospace remain buoyant, driven by increased demandfor air transport. New aircraft build rates are increasing and the investmentworldwide in airport infrastructure continues. Ultra is developing additionalniche products and systems for new aircraft that will drive further growth inthe civil market. The value of the order book increased substantially to over £550m and continuesto provide Ultra with a high level of earnings visibility. Ultra remainscommitted to maintaining a high level of investment, both internally through newproduct development and externally through acquisitions, to drive growth. Withits strong balance sheet, Ultra has the capacity to acquire complementary nichebusinesses which have a proven track record and which can be acquired atrealistic prices. In conclusion, despite the recent volatility in exchange rates, Ultra'ssuccessful positioning on a broad range of major international programmes andits proven ability to execute contracts effectively continue to give the Boardconfidence in the Group's prospects for 2006. - Ends - Enquiries:Ultra Electronics Holdings plc 020 8813 4321Douglas Caster, Chief Executive www.ultra-electronics.comDavid Jeffcoat, Group Finance Director Weber Shandwick Square Mile 020 7067 0700Susan Ellis/Louise Robson Ultra Electronics Holdings plc Interim Results for the Six Months to 30 June 2006 Consolidated Income Statement Six months to Six months to Year to 30 June 30 June 31 December 2006 2005 2005 Note £'000 £'000 £'000 Continuing operations Revenue 2,4 180,715 158,200 342,410Cost of sales (132,603) (118,264) (250,160) -------- -------- --------Gross profit 48,112 39,936 92,250 Other operating income - 2,596 4,805Distribution costs (321) (274) (825)Administrative expenses (23,839) (19,783) (48,393)Other operating expenses (371) (369) - -------- -------- --------Profit from operations 2 23,581 22,106 47,837 Investment revenue 5 4,915 72 553Finance costs 6 (1,849) (3,088) (7,688) -------- -------- --------Profit before tax 26,647 19,090 40,702Tax on profit on ordinary activities 7 (7,461) (5,292) (11,292) -------- -------- --------Profit for the period from continuing operations attributable to equity holders of the parent 19,186 13,798 29,410 ======== ======== ========Earnings per share (pence) From continuing operationsBasic 9 28.5 20.6 43.9 Diluted 9 28.3 20.5 43.5 ======== ======== ======== Ultra Electronics Holdings plc Interim Results for the Six Months to 30 June 2006 Consolidated Balance Sheet At At At 30 June 30 June 31 December 2006 2005 2005 Note £'000 £'000 £'000 Non-current assetsIntangible assets 150,726 119,449 150,494Property, plant and equipment 21,346 21,491 22,844Deferred tax assets 17,120 14,230 17,301 -------- -------- -------- 189,192 155,170 190,639 -------- -------- -------- Current assetsInventories 26,800 19,774 25,937Trade and other receivables 72,682 76,211 74,412Cash and cash equivalents 27,604 17,267 40,193 -------- -------- -------- 127,086 113,252 140,542 -------- -------- --------Total assets 4 316,278 268,422 331,181 ======== ======== ========Current liabilitiesTrade and other payables (88,768) (88,138) (104,009)Tax liabilities (9,854) (7,272) (8,089)Obligations under finance leases (29) (16) (36)Bank overdrafts and loans - (41,499) -Short-term provisions (5,482) (4,026) (7,028) -------- -------- -------- (104,133) (140,951) (119,162) -------- -------- --------Non-current liabilitiesRetirement benefit obligations (46,113) (40,958) (46,576)Other payables (1,765) (1,416) (930)Deferred tax liabilities (1,280) (1,743) (1,149)Obligations under finance leases (57) (5) (67)Bank overdrafts and loans (58,517) - (74,367)Long-term provisions (7,838) (7,282) (3,874) -------- -------- -------- (115,570) (51,404) (126,963) -------- -------- -------- Total liabilities 4 (219,703) (192,355) (246,125) -------- -------- --------Net assets 96,575 76,067 85,056 ======== ======== ========EquityShare capital 10 3,373 3,355 3,361Share premium account 32,712 31,137 31,679Own shares (2,692) (2,582) (2,641)Hedging and translation reserves (3,487) (221) (990)Retained earnings 66,669 44,378 53,647 -------- -------- --------Total equity attributable to equity holders of the parent 96,575 76,067 85,056 ======== ======== ======== Ultra Electronics Holdings plc Interim Results for the Six Months to 30 June 2006 Consolidated Cash Flow Statement Six months to Six months to Year to 30 June 30 June 31 December 2006 2005 2005 Note £'000 £'000 £'000 Net cash from operating activities 11 15,961 13,731 48,217 Investing activitiesInterest received 523 72 549Purchase of property, plant and equipment (2,726) (3,031) (7,311)Proceeds on disposal of property, plant and equipment 13 17 100Expenditure on product development and other intangibles (1,684) (895) (2,909)Acquisition of subsidiary undertakings (net of cash acquired) (4,443) (2,692) (36,610) -------- -------- --------Net cash used in investing activities (8,317) (6,529) (46,181) -------- -------- --------Financing activitiesIssue of share capital 1,045 841 1,389Purchase of Long-Term Incentive Plan shares (513) (599) (596)Dividends paid (7,150) (6,078) (9,567)Increase/(repayments) of borrowings (13,167) (9,182) 21,747Repayments of obligations under finance leases (17) (10) (20)New finance leases - - 92 -------- -------- --------Net cash used in financing activities (19,802) (15,028) 13,045 -------- -------- --------Net (decrease)/increase in cash and cash equivalents (12,158) (7,826) 15,081 Cash and cash equivalents at beginning of period 40,193 24,060 24,060 Effect of foreign exchange rate changes (431) 1,033 1,052 -------- -------- --------Cash and cash equivalents at end of period 27,604 17,267 40,193 ======== ======== ======== Ultra Electronics Holdings plc Interim Results for the Six Months to 30 June 2006 Consolidated Statement of Recognised Income and Expense Six months to Six months to Year to 30 June 30 June 31 December 2006 2005 2005 £'000 £'000 £'000 Exchange differences on translation of foreign operations (2,497) 877 108Actuarial losses on defined benefit pension schemes - - (3,580)Tax on items taken directly to equity - - (522)Fair value of derivatives at 1 January 2005 - 2,268 2,268Gain/(loss) on cash flow hedge 763 - (144) -------- -------- --------Net income/(expense) recognised directly in equity (1,734) 3,145 (1,870) Profit for the period 19,186 13,798 29,410 -------- -------- --------Total recognised income and expense for the period attributable to equity holders of the parent 17,452 16,943 27,540 ======== ======== ======== Ultra Electronics Holdings plc Interim Results for the Six Months to 30 June 2006 Notes to the Interim Statement 1. General Information The financial information contained in this statement does not constitutestatutory accounts, as defined in section 240 of the Companies Act 1985, and hasnot been audited or reviewed. The unaudited accounts for the half years ended 30June 2006 and 30 June 2005 have been prepared using accounting policies that areconsistent with those used in the statutory accounts for the year ended 31December 2005. A copy of the statutory accounts for that year has been deliveredto the Registrar of Companies. The auditors' report on those accounts was notqualified and did not contain statements under section 237(2) or (3) of theCompanies Act 1985. 2. Segment information Six months to Six months to Year to 30 June 30 June 31 December 2006 2005 2005 £'000 £'000 £'000 External revenueAircraft & Vehicle Systems 45,583 39,437 84,370Information & Power Systems 60,067 58,818 117,268Tactical & Sonar Systems 75,065 59,945 140,772 -------- -------- -------- 180,715 158,200 342,410 ======== ======== ========Profit from operationsAircraft & Vehicle Systems 6,867 7,678 15,923Information & Power Systems 9,074 7,340 18,094Tactical & Sonar Systems 9,312 7,271 17,117 -------- -------- -------- 25,253 22,289 51,134Amortisation of intangibles arising on acquisition* (1,672) (183) (3,297) -------- -------- --------Profit from operations 23,581 22,106 47,837Investment revenue 4,915 72 553Finance costs (1,849) (3,088) (7,688) -------- -------- --------Profit before tax 26,647 19,090 40,702 ======== ======== ======== * During 2006, £1,497k has been incurred by Tactical & Sonar Systems and £175khas been incurred by Aircraft & Vehicle Systems. The whole of the 2005 chargerelated to Tactical & Sonar Systems. 3. Additional performance measures To present the underlying profitability of the Group on a consistent basis yearon year, additional performance indicators have been used. These are calculatedas follows: Six months to Six months to Year to 30 June 30 June 31 December 2006 2005 2005 £'000 £'000 £'000 Profit from operations 23,581 22,106 47,837 Add: Amortisation of intangibles arising on acquisition 1,672 183 3,297 -------- -------- -------- Operating profit (adjusted) (a) 25,253 22,289 51,134 ======== ======== ======== Profit before tax 26,647 19,090 40,702(Profit)/Loss on fair value movements on derivatives (4,541) 1,461 3,436Add: Amortisation of intangibles arising on acquisition 1,672 183 3,297 -------- -------- -------- Profit before tax (adjusted) (b) 23,778 20,734 47,435 ======== ======== ========Cash generated by operations (see note 11) 23,328 20,845 64,499Purchase of property, plant and equipment (2,726) (3,031) (7,311)Proceeds on disposal of property, plant and equipment 13 17 100Expenditure on product development and other intangibles (1,684) (895) (2,909)Purchase of Long-Term Incentive Plan shares (513) (599) (596) -------- -------- -------- Operating cash flow (adjusted) (c) 18,418 16,337 53,783 ======== ======== ======== Operating profit at (a) above has been shown before the amortisation ofintangible assets arising on acquisitions, which relates to acquiredintellectual property, customer relationships and profit in order book. Under UKGAAP this charge would have formed part of the amortisation of goodwill, whichwas also excluded from headline operating profit. Since the remainder ofgoodwill is no longer amortised, this charge has been excluded for consistency.Profit before tax as shown at (b) in the above table and adjusted earnings pershare (see note 9) are also presented before the amortisation of intangibleassets arising on acquisition. IAS 39 requires the Group to 'fair value' the derivative instruments used tomanage Ultra's foreign exchange exposures. This creates volatility in thevaluation of the outstanding instruments as exchange rates move over time. Thiswill have minimal impact on profit over the full term of the instruments, butcan cause significant volatility on particular balance sheet dates. Ultra istherefore stating profit before tax ((b) in the above table) and adjustedearnings per share (see note 9) before changes in the valuation of theseinstruments so that the underlying operating performance of the Group can beseen more clearly. The Group is cash generative and reinvests funds to support the continuinggrowth of the business. It seeks to use an accurate and appropriate measure ofthe funds generated internally while sustaining this growth. For this, Ultrauses operating cash flow (adjusted) (c) rather than cash generated byoperations, as its preferred indicator of cash generated and available to covernon-operating expenses such as tax and interest payments. The Group believesthat using cash generated by operations, with the exclusion of net expenditurein property, plant and equipment and outflows for capitalised productdevelopment and other intangibles, would result in an understatement of the truecash cost of sustaining a growing business. 4. Segmental information At At At 30 June 30 June 31 December 2006 2005 2005 £'000 £'000 £'000 Total assets by divisionAircraft & Vehicle Systems 76,750 65,867 67,144Information & Power Systems 62,356 69,245 64,439Tactical & Sonar Systems 128,316 101,005 141,441 -------- -------- -------- 267,422 236,117 273,024Unallocated 48,856 32,305 58,157 -------- -------- -------- Total assets 316,278 268,422 331,181 ======== ======== ======== Unallocated assets represent deferred tax assets, derivatives at fair value,cash and cash equivalents. At At At 30 June 30 June 31 December 2006 2005 2005 £'000 £'000 £'000 Total liabilities by divisionAircraft & Vehicle Systems (27,645) (23,763) (25,454)Information & Power Systems (38,596) (42,810) (38,528)Tactical & Sonar Systems (37,557) (34,311) (49,987) -------- -------- -------- (103,798) (100,884) (113,969)Unallocated (115,905) (91,471) (132,156) -------- -------- -------- Total liabilities (219,703) (192,355) (246,125) ======== ======== ======== Unallocated liabilities represent derivatives at fair value, tax payables,retirement benefit obligations, bank loans and overdrafts. Six months to Six months to Year to 30 June 30 June 31 December 2006 2005 2005 £'000 £'000 £'000 Revenue by geographical destinationUnited Kingdom 70,782 64,949 132,603Mainland Europe 15,405 17,002 38,938North America 79,849 58,605 145,338Rest of World 14,679 17,644 25,531 -------- -------- -------- 180,715 158,200 342,410 ======== ======== ======== 5. Investment revenue Six months to Six months to Year to 30 June 30 June 31 December 2006 2005 2005 £'000 £'000 £'000 Interest revenue 374 72 553Profit on fair value movements on derivatives 4,541 - - -------- -------- -------- 4,915 72 553 ======== ======== ======== 6. Finance costs Six months to Six months to Year to 30 June 30 June 31 December 2006 2005 2005 £'000 £'000 £'000 Amortisation of finance costs of debt 31 65 137Interest payable on bank loans and overdrafts 1,816 1,084 3,164Interest payable on finance leases 2 2 2 -------- -------- -------- Total borrowing costs 1,849 1,151 3,303Loss on fair value movements on derivatives - 1,461 3,436Retirement benefit scheme finance charges - 476 949 -------- -------- -------- 1,849 3,088 7,688 ======== ======== ======== 7. Tax on profit on ordinary activities Six months to Six months to Year to 30 June 30 June 31 December 2006 2005 2005 £'000 £'000 £'000 Current taxUnited Kingdom 4,474 3,087 7,254Overseas 3,239 1,977 5,805 -------- -------- -------- 7,713 5,064 13,059 -------- -------- -------- Deferred taxUnited Kingdom (378) (164) (2,105)Overseas 126 392 338 -------- -------- -------- (252) 228 (1,767) -------- -------- -------- Total 7,461 5,292 11,292 ======== ======== ======== 8. Ordinary dividends Six months to Six months to 30 June 30 June 2006 2005 £'000 £'000Amounts recognised as distributions to equity holders in the period: Final dividend for the year ended 31 December 2005 of 10.7p (2004: 9.2p) per share 7,150 6,078 ======== ========Proposed interim dividend for the year ended 31 December 2006 of 5.9p (2005: 5.2p) per share 3,980 3,489 ======== ======== The proposed interim dividend was approved by the Board after 30 June 2006 andhas not been included as a liability as at 30 June 2006. 9. Earnings per share (pence) Six months to Six months to Year to 30 June 30 June 31 December 2006 2005 2005 From continuing operationsBasic adjusted (see below) 25.5 22.4 50.7 -------- -------- -------- Diluted adjusted (see below) 25.2 22.3 50.3 -------- -------- -------- Basic 28.5 20.6 43.9 -------- -------- -------- Diluted 28.3 20.5 43.5 -------- -------- -------- The calculation of the basic, adjusted and diluted earnings per share is basedon the following data: Six months to Six months to Year to 30 June 30 June 31 December 2006 2005 2005 £'000 £'000 £'000 EarningsEarnings for the purposes of earnings per share being profit for the period from continuing operations 19,186 13,798 29,410 ======== ======== ========Adjusted earningsProfit for the period from continuing operations 19,186 13,798 29,410(Profit)/loss on fair value movements on derivatives (net of tax) (3,270) 1,023 2,433Amortisation of intangibles arising on acquisition (net of tax) 1,204 183 2,143 -------- -------- -------- Earnings for the purposes of adjusted earnings per share 17,120 15,004 33,986 ======== ======== ======== The weighted average number of shares is given below: Six months to Six months to Year to 30 June 30 June 31 December 2006 2005 2005 Number of shares used for basic EPS 67,246,726 66,875,638 67,074,121Number of shares deemed to be issued at nil consideration following exercise of share options 567,845 505,881 524,441 ---------- ---------- ---------- Number of shares used for fully diluted EPS 67,814,571 67,381,519 67,598,562 ========== ========== ==========10. Share capital 234,244 shares, with a nominal value of £11,712, have been allotted in the firstsix months of 2006 under the terms of the Group's various share option schemes.The aggregate consideration received by the Company was £1,045,356. 11. Cash flow information Six months to Six months to Year to 30 June 30 June 31 December 2006 2005 2005 £'000 £'000 £'000 Profit from operations 23,581 22,106 47,837Adjustments for: Depreciation of property, plant and equipment 3,249 2,726 6,132 Amortisation of intangible assets 1,942 620 5,450 Cost of equity settled employee share schemes 685 575 1,212 Increase/(decrease) in post employment benefit obligation 200 260 120 Loss on disposal of property, plant and equipment - 20 (4) Increase/(decrease) in provisions (231) 460 (366) ---------- ---------- ---------- Operating cash flows before movements in working capital 29,426 26,767 60,381 (Increase)/decrease in inventories (1,620) (1,858) (1,643)(Increase)/decrease in receivables 4,435 (5,263) (1,313)Increase/(decrease) in payables (8,913) 1,199 7,074 ---------- ---------- ---------- Cash generated by operations 23,328 20,845 64,499 Income taxes paid (5,540) (5,806) (13,001)Interest paid (1,827) (1,308) (3,281) ---------- ---------- ---------- Net cash from operating activities 15,961 13,731 48,217 ========== ========== ========== Reconciliation of net movement in cash and cash equivalents to movement in netdebt Six months to Six months to Year to 30 June 30 June 31 December 2006 2005 2005 £'000 £'000 £'000Net (decrease)/increase in cash and cash equivalents (12,158) (7,826) 15,081Cash (inflow)/outflow from (increase)/decrease in debt and finance leasing 13,184 9,192 (21,727) ---------- ---------- ---------- Change in net debt arising from cash flows 1,026 1,366 (6,646)Amortisation of finance costs of Debt (31) (65) (137)Finance leases - - (92)Translation differences 2,283 (1,479) (3,327) ---------- ---------- ---------- Movement in net debt in the Period 3,278 (178) (10,202)Net debt at start of period (34,277) (24,075) (24,075) ---------- ---------- ---------- Net debt at end of period (30,999) (24,253) (34,277) ========== ========== ========== This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
ULE.L