4th Sep 2006 07:00
The Vitec Group PLC04 September 2006 4 September 2006 The Vitec Group plc Half Year Results to 30 June 2006 The Vitec Group plc, the international supplier of products, services andsolutions to the Broadcast, Entertainment and Media industries, announces itsresults for the half year to 30 June 2006. Results H1 2006 H1 2005 % Change Revenue £107.4m £89.6m +19.9% Before significant items*Operating profit £12.0m £8.1m +48.1%Profit before tax £11.6m £7.3m +58.9%Basic earnings per share 16.8p 10.0p +68.0% After significant items*Operating profit £12.1m £7.7m +57.1%Profit before tax £12.2m £6.9m +76.8%Basic earnings per share 18.2p 9.0p +102.2% Interim dividend 6.4p 6.1p +4.9% * Significant items comprise restructuring costs, goodwill impairment,amortisation of acquired intangibles, profit on sale of property and fair valueadjustments relating to volatile financial instruments. KEY POINTS • Buoyant market conditions - Strong sales growth in all divisions - Sales in Photographic up 26% • Benefits of operational gearing - Operating profit** up 48% to £12.0m - PBT** up 59% to £11.6m • Further reduction in effective tax rate to 40% - EPS** up 68% to 16.8p • Cash generated from operations up 107% to £11.2m • Petrol trading in line with expectations • Opening of Bogen Imaging Japan and Kata UK ** before significant items Commenting on the results, Gareth Rhys Williams, Chief Executive, said: "We are delighted to report another six months of strong growth, both in salesand operating profit. "The second half has got off to an encouraging start. Order intake remains goodand we believe the underlying demand for our products will continue to besupported by the trend to HD programming by broadcasters, and by the growth insales of digital SLR cameras. We continue to look for acquisitions thatcomplement our existing portfolio of premium brands. "Overall the Board views the outlook for the full year with confidence." Enquiries The Vitec Group plc Gareth Rhys Williams, Group Chief Executive 020 8939 4650 Alastair Hewgill, Group Finance Director 020 8939 4650Financial Dynamics Richard Mountain/Susanne Walker 020 7269 7221 CHAIRMAN'S & CHIEF EXECUTIVE'S STATEMENT Results overview We are pleased to report another six months of significant progress, continuingthe momentum built up in the strong second half of 2005. Reported sales grew 19.9% and, with the benefit of the higher operationalgearing of the restructured business, operating profit before significant items*grew 48.1%. The effects of foreign exchange in the first half were similar tolast year - constant currency sales were up 16.2% and operating profit beforesignificant items* 42.9%. With further progress on our headline tax rate, nowdown to 40%, basic EPS* has risen 68.0% to 16.8p. As discussed in previous reports, our 'Consolidate-Leverage-Grow' strategy isproducing ongoing benefits and, with the great majority of the restructuringbehind us, the emphasis is on growth. Of the 19.9% overall revenue growth, 17.9%was organic, with 2.0% from the acquisition of the two Israeli camera bagcompanies, Kata, acquired in May last year, which contributed 5 months' moresales, and Petrol, acquired in January 2006. Both continue to trade well and inline with expectations. During the first half we also acquired a minority stake in Media Numerics Ltd.The company has developed a digital network product targeted at the live eventmarket which the Group supplies with its Clear-Com, Litec and Avenger brands. Wehave also acquired the distribution activities for our photographic products inJapan from our previous distributors. The new company, Bogen Imaging KK, startedtrading in June and will deliver a modest increase in sales in the second half.In the medium term we would expect to grow our market share and see increasedvolume. Kata has also opened its own distribution business in the UK, Kata UK,in response to the bankruptcy of its previous distributor. We continue to lookproactively for acquisitions that complement or extend the reach of our existingportfolio of premium brands. Cash generation remains strong. Despite the normal seasonal increase in workingcapital, stock and debtor days have improved again, to 109 days (H1 2005: 127)and 54 days (H1 2005: 59) respectively. We would now expect these levels ofinventory and debtor days to stay stable as sales grow. Net debt at the end ofJune was £8.6m and compares with £18.8m at the end of June 2005 and £5.4m at theend of December 2005. In line with the previously stated dividend policy the Board has declared anincreased interim dividend of 6.4p (2005: 6.1p). *Significant items are those items of financial performance that the directorsconsider should be separately disclosed to assist in the understanding of theunderlying trading and financial performance achieved by the Group and in makingprojections of future results. PHOTOGRAPHIC DIVISION Products for the professional photographer H1 2006 H1 2005Revenue £45.4m £36.0mOperating Profit* £8.2m £5.6mOperating Margin* 18.1% 15.6% *Before significant item. The Significant item is amortisation of acquiredintangibles of £0.2 million (H1 2005: £nil). The Photographic Division is organised around three business units, ImagingProducts, Distribution and Staging Systems, all of which have achieved goodgrowth in the first half. In Imaging the growth has come both from the original lighting support productranges (Manfrotto and Avenger), typically bought by the pro-photographer, andfrom our camera support products (Manfrotto and Gitzo), where the new productswe have launched, most recently the Modo, are capitalising on the ongoing growthin digital SLR camera sales to the keen amateur photographer. Kata's sales ofbags grew in line with expectations, helped by the wider geographicaldistribution the Group has to offer. Bogen Imaging, our in-house distribution business, has capitalised on thepopularity of these products, with particularly strong growth in the US andGermany. The major marketing event of the year is the upcoming Photokina show in Cologne,held every two years. All Group brands will be showing exciting new productranges. Also on display will be a special edition Manfrotto '190' tripod withone of the leg elements in Azzurri blue to celebrate the Italian World Cupvictory; a total of 2006 tripods will be for sale, with the proceeds going tocharity. In Staging Systems, where the Litec truss and IFF lighting control systems nowoperate together from a larger facility close to Venice, sales growth hascontinued strongly. A temporary roof for the Ramazzotti show, built from thelargest span of LiberaTM staging structures ever, is an example of an excitinginnovation recently developed. Assisted by the low cost manufacture of standardproducts in Slovakia, we believe Litec will continue to grow. BROADCAST SYSTEMS DIVISION Products and systems primarily for broadcast applications H1 2006 H1 2005Revenue £47.1m £40.9mOperating Profit* £2.8m £2.2mOperating Margin* 5.9% 5.4% *Before significant items. Significant items are profit on sale of property of£0.4 million (H1 2005: £nil) and restructuring costs of £0.1 million (H1 2005:£0.4 million). At the end of 2005 we were unsure whether the increase we had seen in broadcastspending was due purely to spend in advance of the football World Cup - thatlevel of activity has clearly continued through the first half and into theopening period of the second half. The increasing importance of High Definition(HD) programming has resulted in our broadcast clients spending more in theproduction part of the broadcast chain than in recent years. This has translatedinto a higher level of orders for our products. We have seen no signs in themarket to believe that this level of activity will slow down. The Costa Ricanfacility is running significantly ahead of last year, and we will be investingthere to widen the capability of the plant. The Camera Support unit is enjoying levels of sales not seen since 2001 acrossall its five main brands, partly due to the HD-led recovery and partly due tothe aggressive launch of new products. We launched another 18 products at theNAB show in April, including the revolutionary FUSIONTM robotic system,including pedestal, heads and advanced control panels. The Petrol Bagsacquisition is trading well and has proven to be a great addition to the productoffering for the video cameramen. Mobile Power has seen steady growth in most regions except for Europe, which hadseen strong growth there last year. The business won a 'TV Star' award for thelaunch of the 'ElipzTM' range of batteries that allow a cameraman to use apalm-size video camera for a full day with one power pack. This product opens upa new segment of the market that has previously used lower capacity consumerbatteries. In Communications volume is up, with new products, particularly the Eclipseplatform, beginning to win significant orders. The live performance and theatreintercom market remains Clear-Com's stronghold, with the first orders receivedfrom the Beijing Olympic organisation. However, margins remain unsatisfactory inwhat remains the most competitive sector of our business. BROADCAST SERVICES DIVISION Rental services and technical support mainly for the broadcast market H1 2006 H1 2005Revenue £14.9m £12.7mOperating Profit £1.0m £0.3mOperating Margin 6.7% 2.4% The core US rentals market has not seen meaningful growth again in this half,however there have been much improved results flowing from rental contracts forthe Winter Olympics in Turin and, to a much lesser degree, from the footballWorld Cup. Our investment in HD equipment, cameras in particular, has increasedto cover demand in that area, where Bexel's expertise is valued. Bexel retains its strong pan-American presence and has opened a new depot in LasVegas, which is a small but fast-growing market. The small office in Irvine,southern California, has been closed in response to lower local demand. Of therecent technical innovations, 3G-live systems continue to attract attention andgrowing revenues. By far the most interesting development during the period has been the signatureof a collaborative agreement with a leading US commercial leasing business,National City Commercial Credit Corp. With the rapid uptake of HD production,broadcasters' capital budgets have become stretched; at the same time the rapidchange in technology and the increasing need for broadcasters to have flexibleoperations means that the traditional long-term commercial lease has somedisadvantages. The combination of National City's expertise at structuringcommercial leases and their lower cost of capital, together with Bexel'stechnical and resale skills means that we can jointly offer cost-effective 'long-term rentals' with attractive technical support and service elements to ourUS broadcast customers. Tax The Group continues to make progress in reducing its headline rate, now 40%, 2%down on the full year rate for 2005. After adjusting headline tax for the 'non-cash' deferred tax element of 5%, the current tax rate is also reduced to35%. Cash taxes paid over the last two years have been very low due principallyto significant tax credits in Italy, but will rise this year to be closer to thecurrent tax rate. Outlook While the rest of the year will not see the sporting events that helped us inthe first half, and the foreign exchange environment is currently worse thanearlier in the year, the second half has got off to an encouraging start. Orderintake remains good and we believe the underlying demand for our products willcontinue to be supported by the trend to HD programming by broadcasters and bythe growth in sales of digital SLR cameras. We continue to look for acquisitions that complement our existing portfolio ofpremium brands. Overall the Board views the outlook for the full year with confidence. Michael Harper Gareth Rhys WilliamsChairman Chief Executive Cautionary statement This announcement contains forward looking statements that are subject to riskfactors associated with, amongst other things, the economic and businesscircumstances occurring from time to time in the countries and sectors in whichthe Group operates. It is believed that the expectations reflected in thesestatements are reasonable but they may be affected by a wide range of variableswhich could cause actual results to differ materially from those currentlyanticipated. Consolidated income statement For the half year ended 30 June 2006 (unaudited) Half year to 30 June 2006 Half year to 30 June 2005 Year to 31 December 2005 Before Significant Total Before Significant Total Before Significant Total significant items(1) £m significant items(1) £m significant items(1) £m items £m items £m items £m £m £m £mRevenueContinuing operations 106.9 106.9 89.6 89.6 194.9 194.9Acquisitions 0.5 0.5 107.4 107.4 89.6 89.6 194.9 194.9Cost of sales (61.9) (61.9) (52.7) (52.7) (115.6) (115.6)Gross profit 45.5 45.5 36.9 36.9 79.3 79.3 Profit on the sale of 0.4 0.4 - - 0.3 0.3property Operating expensesAmortisation of acquired (0.2) (0.2) - - (0.2) (0.2)intangiblesRestructuring costs (0.1) (0.1) (0.4) (0.4) (0.9) (0.9) Other operating expenses (33.5) - (33.5) (28.8) - (28.8) (59.3) - (59.3) (33.5) (0.3) (33.8) (28.8) (0.4) (29.2) (59.3) (1.1) (60.4) Operating profitContinuing operations 12.2 0.1 12.3 8.1 (0.4) 7.7 20.0 (0.8) 19.2Acquisitions (0.2) - (0.2) 12.0 0.1 12.1 8.1 (0.4) 7.7 20.0 (0.8) 19.2 Interest payable on bank (0.6) (0.6) (0.9) (0.9) (1.5) (1.5)borrowingsInterest income 0.1 0.1 - - 0.2 0.2Pension scheme: Interest charge (1.1) (1.1) (1.0) (1.0) (2.0) (2.0) Expected return on 1.3 1.3 1.1 1.1 2.2 2.2assetsOther financial income/ (0.1) 0.5 0.4 - - - (0.5) (0.5) (1.0)(expense)Net financial income/ (0.4) 0.5 0.1 (0.8) - (0.8) (1.6) (0.5) (2.1)(expense) Profit before tax 11.6 0.6 12.2 7.3 (0.4) 6.9 18.4 (1.3) 17.1 Current tax (4.1) - (4.1) (2.0) - (2.0) (6.6) - (6.6)Deferred tax (0.6) - (0.6) (1.2) - (1.2) (1.1) - (1.1)Overseas taxation (4.7) - (4.7) (3.2) - (3.2) (7.7) - (7.7) Profit from continuing 6.9 0.6 7.5 4.1 (0.4) 3.7 10.7 (1.3) 9.4operationsProfit from discontinued - - - - 0.4 0.4operationsProfit for the period 6.9 0.6 7.5 4.1 (0.4) 3.7 11.1 (1.3) 9.8(attributable to EquityShareholders)Earnings per shareBasic earnings per share 18.2p 9.0p 23.9pDiluted earnings per share 18.0p 9.0p 23.7pAverage exchange ratesEuro 1.46 1.45 1.46US$ 1.78 1.88 1.82 (1) See Note 2 Consolidated balance sheet As at 30 June 2006 (unaudited) As at As at As at 30 June 30 June 31 December 2005 2006 2005 £m £m £mAssetsNon-current assetsProperty, plant and equipment 32.8 30.7 33.6Intangible assets 21.4 18.8 19.9Investments 0.4 - -Deferred tax assets 5.1 6.6 5.8 59.7 56.1 59.3Current assetsInventories 37.2 37.0 31.3Trade and other receivables 40.1 37.5 37.0Derivative financial instruments 1.2 - 0.2Current tax assets 0.3 4.0 0.9Cash and cash equivalents 9.1 12.1 12.7 87.9 90.6 82.1Total assets 147.6 146.7 141.4LiabilitiesCurrent liabilitiesBank overdrafts 0.8 5.4 0.9Trade and other payables 34.7 27.1 31.5Derivative financial instruments 0.1 - 0.9Current tax liabilities 9.6 8.2 7.6Provisions 3.4 2.8 1.2 48.6 43.5 42.1Non-current liabilitiesBank loans 16.9 25.5 17.2Other payables 0.2 0.2 0.2Post-employment obligations 6.1 10.1 7.5Provisions 0.1 1.2 2.7Deferred tax liabilities 1.4 2.0 1.1 24.7 39.0 28.7Total liabilities 73.3 82.5 70.8Net assets 74.3 64.2 70.6EquityShare capital 8.2 8.2 8.2Share premium 3.1 2.7 2.7Translation reserve (4.1) (4.1) (1.8)Other reserves 2.3 1.3 0.9Retained earnings 64.8 56.1 60.6Total equity 74.3 64.2 70.6 Consolidated statement of recognised income and expense For the half year ended 30 June 2006 (unaudited) Half year to Half year to Year to 31 30 June 2006 30 June 2005 December £m £m 2005 £mActuarial gain/(loss) on pension obligations 1.1 (0.3) 0.5Currency translation differences on foreign net investments (2.7) (0.1) 2.4Net gain/(loss) on hedge of net investment in foreign 0.4 - (0.2)subsidiariesCash flow hedging reserve : Amounts released to income statement 0.4 (0.8) (0.8) Effective portion of changes in fair value 1.0 (0.3) (0.7)Net income/(expense) recognised directly in equity 0.2 (1.5) 1.2Profit for the year 7.5 3.7 9.8Total recognised income for the year 7.7 2.2 11.0Effect of adoption of IAS 32 and IAS 39 at 1 January 2005 on : Retained earnings 0.4 0.4 Cash flow hedging reserve 0.8 0.8Total 3.4 12.2 Consolidated cash flow statement For the half year ended 30 June 2006 (unaudited) Notes Half year to Half year to Year to 31 30 June 2006 30 June 2005 December £m £m 2005 £mCash flows from operating activitiesProfit for the year 7.5 3.7 9.8Adjustments for : Taxation 4.7 3.2 7.7 Depreciation 5.0 4.9 8.9 Amortisation of intangibles 0.5 - 1.2 Profit on sale of property, plant and equipment (0.5) (0.4) (1.6) Fair value losses on derivative financial - - (0.4)instruments Cost of equity-settled employee share schemes 0.4 0.2 0.3 Financial income (1.8) (0.1) (2.4) Financial expense 1.7 0.9 4.5Operating profit before changes in working capital & 17.5 12.4 28.0provisionsDecrease/(increase) in inventories (6.2) (4.2) 3.0Increase in receivables (3.8) (1.6) (0.8)Increase/(decrease) in payables 3.8 (0.3) 3.1Decrease in provisions (0.1) (0.9) (3.4)Adjustments for foreign exchange losses - - (0.1)Cash generated from operations 11.2 5.4 29.8Interest paid (0.7) (0.8) (1.8)Tax (paid)/received (1.5) 0.7 (1.6)Net cash inflow from operating activities 9.0 5.3 26.4Cash flows from investing activitiesProceeds from sale of property, plant and equipment 0.6 0.2 2.1Purchase of property, plant and equipment (5.0) (4.3) (11.1)Software and development costs capitalised as (0.2) (0.3) (0.6)intangible assetsInterest received 0.1 - 0.5Acquisition of investment (0.4) - -Acquisition of subsidiaries, net of cash acquired (3.2) (4.4) (4.6)Net cash outflow from investing activities (8.1) (8.8) (13.7)Cash flows from financing activitiesProceeds from the issue of shares 0.4 0.1 -Purchase of own shares (0.9) - -Movement on bank loans (0.2) 1.4 (8.2)Dividends paid (3.9) (3.6) (6.1)Net cash outflow from financing activities (4.6) (2.1) (14.3)Currency variations on cash and cash equivalents 0.2 (1.1) -Decrease in cash and cash equivalents 8 (3.5) (6.7) (1.6)Cash and cash equivalents at beginning of period 11.8 13.4 13.4Cash and cash equivalents at end of period 9 8.3 6.7 11.8 Notes to the interim financial statements For the half year ended 30 June 2006 (unaudited) 1. Basis of preparation The financial information set out above isunaudited and does not comprise statutory accounts within the meaning of Section240 of the Companies Act 1985. The interim financial statements have beenprepared in accordance with accounting policies set out in the Group's auditedaccounts. The statutory accounts for the year ended 31 December 2005 prepared inaccordance with International Financial Reporting Standards as adopted by the EU('Adopted IFRSs') have been filed with the Registrar of Companies. The auditorshave reported on the 2005 accounts; their report was unqualified and did notcontain a statement under section 237(2) or (3) of the Companies Act 1985. 2. Significant items are those items of financial performance that thedirectors consider should be separately disclosed to assist in the understandingof the underlying trading and financial performance achieved by the Group and inmaking projections of future results. Of the significant items included in net operating expenses, £0.2 million (2005:£nil) relates to the amortisation of intangible assets and £0.1 million (2005:£0.4 million) relates to the ongoing restructuring costs in Broadcast Systems(primarily severance in connection with the actions taken to enable the businessto operate in a more integrated manner). The profit on the sale of property of £0.4 million (2005 : £nil) relates toBroadcast Systems division. The Group uses options as part of its hedging of future foreign exchange cashflows. As such options are held to maturity, the ultimate net amount charged tothe income statement in respect of any option will always equate to the initialpremium paid for that option. However, as a result of the the time value of suchoptions being marked-to-market at each balance sheet date, volatile income andexpenses can be introduced between periods, and such amounts are thereforeidentified as significant other financial expense. An income of £0.2 million(2005: £nil) relating to this volatile premium on options was recorded insignificant items within other financial expense. An expense of £0.1 million(2005: £nil) relating to the amortisation of options was recorded as anon-significant item within other financial expense. Currency translation differences arising on long-term intra-group funding loansthat are similar in nature to equity are charged/credited to reserves. Currencytranslation income of £0.3 million (2005: £nil) arising on certain otherintra-group funding balances that do not meet this strict criteria but are verysimilar in nature are recorded in significant items within other financialexpense. 3. The tax rate on profits before significant items for the half year isestimated at 40% (2005: 44%) on the basis of the anticipated tax rates whichwill apply for the full year, and the charge comprises current tax £4.1 million(2005: £2.0 million) and deferred tax £0.6 million (2005: £1.2 million). The taxcredit on significant items was £nil (2005: £nil). Deferred tax and current tax in the 2005 first half year comparatives balancesheet have been reclassified to align disclosures with the 2005 Annual Report. 4. Earnings per share Basic earnings per share of 18.2 pence (2005: 9.0 pence) is based on profit forthe period attributable to equity shareholders of £7.5 million (2005: £3.7million) and the weighted average number of shares of 41,178,309 (2005:41,082,140). Adjusted basic earnings per share of 16.8 pence (2005: 10.0 pence) is based onprofit for the period attributable to equity shareholders but before significantitems, using the same number of shares. Diluted earnings per share of 18.0 pence (2005: 9.0 pence) is based on profitfor the period attributable to equity shareholders and the weighted averagenumber of shares as adjusted for the weighted number of shares under option of41,647,999 (2005: 41,238,319). 5. Interim dividend The directors have declared an interim dividend of6.4 pence per share, which will absorb £2.6 million (2005: 6.1 pence absorbing£2.5 million). The dividend will be paid on 2 November 2006 to shareholders onthe register at the close of business on 29 September 2006. 6. Acquisitions Bogen Imaging KK On 5 May 2006 the Group announced that it has acquired theJapanese photographic distribution activities for its Manfrotto photographic andvideo camera and lighting supports and its Kata photographic bags, from Honjo &Co in Kobe, and for its Gitzo photographic and video camera supports, from KFCLtd in Tokyo. The consideration amounted to Yen191.5 million (£0.9 million).Based on a provisional assessment of the fair values of the tangible andintangible assets, no goodwill arose on acquisition. A new Vitec company, Bogen Imaging KK, commenced trading on 1 June 2006, and itsresults have been included in the Photographic Division. Petrol Bags Ltd On 15 January 2006 the Group completed the acquisition ofPetrol, which is based in Tel Aviv, and is a broadcast equipment bagmanufacturer and comprises design of broadcast video bags and accessories,together with third party sourcing and assembly operations in China. The cashconsideration amounted to US$2.7 million (£1.5 million) and there is anestimated contingent consideration of US$0.9 million (£0.5 million) conditionalupon profitability targets in 2006. Based on a provisional assessment of thefair values of the tangible and intangible assets, goodwill of £1.2 millionarose on acquisition. The results of Petrol have been included in the Broadcast Systems Division. Kata As at 31 December 2005 there was an estimated contingent consideration ofUS$4.6 million (£2.5 million) conditional upon future sales and profitabilitytargets. On 16 May 2006 part of this consideration was paid in cash amounting toUS$1.5 million (£0.8 million), leaving a balance of US$3.1 million (£1.7million). The results of Kata have been included in the Photographic Division. 7. Segment Reporting Primary format - by business segments For the half year ended 30 June Photographic Broadcast Broadcast Total Systems Services 2006 2005£m 2006 2005£m 2006£m 2005 2006£m 2005£m £m £m £mRevenue from external customers 45.4 36.0 47.1 40.9 14.9 12.7 107.4 89.6Operating profit Operating profit before significant 8.2 5.6 2.8 2.2 1.0 0.3 12.0 8.1items(1) Profit on the sale of property - - 0.4 - - - 0.4 - Amortisation of acquired intangibles (0.2) - - - - - (0.2) - Restructuring costs - - (0.1) (0.4) - - (0.1) (0.4) Operating profit after significant items 8.0 5.6 3.1 1.8 1.0 0.3 12.1 7.7(1) (1)See Note 2 Secondary format - by geographical segments For the half year ended United Kingdom The rest of The The rest of the30 June Europe Americas World Total 2006 2005£m 2006£m 2006£m 2005£m 2005£m 2006£m 2005 2006£m 2005 £m £m £mRevenue from externalcustomers: By origin 13.6 11.8 34.6 26.9 54.3 49.3 4.9 1.6 107.4 89.6 By location of customer Photographic 2.7 2.2 19.7 14.8 17.7 14.4 5.3 4.6 45.4 36.0 Broadcast Systems 3.9 2.8 13.6 11.1 20.0 17.8 9.6 9.2 47.1 40.9 Broadcast Services - - 0.4 - 14.5 12.7 - - 14.9 12.7 Total revenue by 6.6 5.0 33.7 25.9 52.2 44.9 14.9 13.8 107.4 89.6location of customer 8. Movement in net debt Half year to Half year to Year to 31 30 June 2006 30 June 2005 December 2005 £m £m £mNet movement in cash and cash equivalents (3.5) (6.7) (1.6)Net repayment of borrowings 0.2 (1.4) 8.2Currency variations on borrowings 0.1 0.6 (0.7)Movement in period (3.2) (7.5) 5.9Net debt at beginning of period (5.4) (11.3) (11.3)Net debt at end of period (8.6) (18.8) (5.4) 9. Reconciliation of cash and cash equivalents Half year to Half year to Year to 31 30 June 2006 30 June 2005 December 2005 £m £m £mCash and cash equivalents per cash flow statement 8.3 6.7 11.8Add : Bank overdrafts 0.8 5.4 0.9Cash and cash equivalents per balance sheet 9.1 12.1 12.7 10. Copies of this statement will be sent to all shareholders on the shareregister as at 4 September 2006. Copies are available on application to theCompany Secretary. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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