29th Nov 2007 07:00
Acal PLC29 November 2007 FOR RELEASE 7:00AM 29 NOVEMBER 2007 ACAL plc (Leading pan-European, value-added technology based distributor providing specialist design-in, sales and marketing services) Unaudited Interim Results for the six months to 30 September 2007 2007 2006 Change (restated**) Revenue - ongoing activities*** £77.6m £79.0m - 1.8% EBIT* - ongoing activities £2.8m £2.7m + 3.7% Profit before tax - ongoing activities £2.6m £2.4m + 8.3% - including disposed activities £4.3m £8.8m Basic earnings per share - ongoing activities 6.7p 5.4p + 24% - including disposed activities 10.9p 28.4p Dividends per share - relating to period 7.2p 7.2p - (*EBIT - Earnings before interest, tax, the Group's share of profit of associated companies and exceptional items stated after full allocation of central costs) (** The restatement of the prior year's figures arises from the reclassification of the IT Solutions Business ("ITS") as discontinued, in the light of its proposed sale, the inclusion of the medical instrumentation business under Electronics following that reclassification and the reallocation of central costs) (***Disposed activities represent the sold AC&R business together with the IT Solutions Business, the proposed sale of which was announced on 27 September 2007, and ongoing activities represent the remaining business of the Group) • Sale of IT Solutions Business for £41 million • Sales of ongoing activities 1.8% lower at £77.6 million, as a result of weaker market conditions • Improved profitability in the first half: - EBIT of ongoing activities up 3.7% at £2.8 million - Profit before taxation and exceptionals from ongoing activities up 8.3% at £2.6 million - EPS of ongoing activities up 24% reflecting, in part, the purchase of the minority interest in CPI in October 2006 • Interim dividend maintained at 7.2p For further information:- Acal plcTony Laughton Chief Executive 01483 544500Jim Virdee Finance Director 01483 544500 Cubitt ConsultingBrian Coleman-Smith/James Verstringhe/Nicola Krafft 020 7367 5100 Notes to Editors: 1 The Acal Group is a leading European technology based distributor providing specialist design-in, sales, marketing and other services at present through three divisions: Electronics, Parts Services and IT Solutions. Its value-added philosophy and geographic coverage enables Acal to provide specialist knowledge and support to customers on a pan-European basis. 2 Design-in is the process by which Acal's sales engineers work with customers and suppliers to procure components which meet the specific technical and performance needs of the customers. 3 Acal has operating companies in the UK, Netherlands, Belgium, Germany, France, Italy, South Africa, Spain and Scandinavia. Westech Electronics, an associated company, is based in Singapore and covers the Far East region. ACAL plc (Leading pan-European, value-added technology based distributor providing specialist design-in, sales and marketing services) Unaudited Interim Results for the six months to 30 September 2007 Chairman's Statement On 27 September 2007 we announced the proposed sale of our IT SolutionsBusiness, which comprises the IT Solutions Division excluding Vertec (ourmedical instrumentation business) for a cash consideration of £41m. Furtherdetails of the disposal were set out in the circular to shareholders dated 28September 2007, a copy of which is available at www.acalplc.co.uk. Shareholdersapproved the proposed sale at an Extraordinary General Meeting held on 19October 2007 and we are awaiting merger control clearance prior to completion.Accordingly, for the purposes of the interim results for the half year to 30September 2007, the IT Solutions Business has been classified as discontinued. The Group's ongoing activities have experienced weak market conditionsthroughout the first half of the current financial year. Sales from ongoingactivities at £77.6m for the six months ended 30 September 2007 were 1.8% lowerthan the first half last year. However, both EBIT at £2.8m (2006: £2.7m) andprofit before taxation and exceptionals at £2.6m (2006: £2.4m) were ahead oflast year, reflecting some improvement in gross margins and continuing tightcontrol over operating costs. Earnings per share from ongoing activities were up24% at 6.7p for the half year reflecting the improved profitability as well asthe purchase of the minority interest in CPI in October 2006. Net debt at 30September 2007 was £11.1m compared to £5.4m at 31 March 2007, the increaseprimarily reflecting the reversal of the previously reported short-term workingcapital benefits at 31 March 2007 as well as the payment of the final dividendin respect of 2006/7. The Group made an annualised return on average capitalemployed of 30% (2006: 28%) from its ongoing activities during the half yearended 30 September 2007. Results The performance of Acal's ongoing divisions in each of the half years ended 30September 2007 and 2006 and for the year ended 31 March 2007 is set out below. Half year ended 30 September Year ended 31 March 2007 2006 (restated**) 2007 (restated**) £m Sales EBIT* Sales EBIT* Sales EBIT* Electronics 53.7 1.4 54.0 1.4 112.6 3.1Parts Services 23.9 1.4 25.0 1.3 51.9 2.5 77.6 2.8 79.0 2.7 164.5 5.6 (EBIT* - Earnings before interest, tax, the Group's share of profit of associated companies and exceptional items stated after full allocation of central costs) (** The restatement of the prior year's figures arises from the reclassification of the IT Solutions Business ("ITS") as discontinued, in the light of its proposed sale, the inclusion of the medical instrumentation business under Electronics following that reclassification and the reallocation of central costs) (Disposed activities represent the sold AC&R business together with the IT Solutions Business, the proposed sale of which was announced on 27 September 2007, and ongoing activities represent the remaining business of the Group) Electronics Industry statistics from the UK and Continental Europe indicate that the marketfor electronic components has weakened during the first half of the currentfinancial year, particularly in the lower technology passive andelectromechanical arena. Our Electronics division has not been immune from thesemarket conditions. However, the growing success of our strategy of focusing onhigher technology semiconductor, power, RF and wireless components continues tobe of benefit in mitigating the effects of the market conditions. Our "demand creation" approach to distribution means that there is inevitably atime lag, which can vary from 9 to 24 months, between introduction of a newproduct line and the generation of a revenue stream from that line. Therefore,in the short term the financial benefits of our enhanced product portfolio areunlikely to offset entirely the effects of the weak demand referred to above.Profitability of the Electronics division in the first half has also beenaffected by the costs arising from the major investment in people made in thesecond half last year to support new product lines, particularly in Germany andItaly, which are not yet generating significant revenue. Vertec, our medical instrumentation business, has continued to grow with ahelpful first contribution from its South African operations which wereestablished at the end of last year. Parts Services As previously reported, 2006/7 was a difficult year for the Parts Servicesdivision as a consequence of weaker demand, some price erosion and cutbacks on amajor contract. Although levels of activity in the first half of the currentyear have been similar to the first half last year, the price erosion referredto above has resulted in revenue 4% lower at £23.9m. The EBIT arising from thisdivision showed a slight improvement at £1.4m, as a result of lower operatingcosts. IT Solutions The IT Solutions Business, which as explained above, is being sold, showedyear-on-year improvement in sales with Networks and Security products and AVASbeing particularly successful. Overall margins have continued to be relativelystable. Dividend The Board has declared an interim dividend of 7.2p per share unchanged from lastyear. This is to be paid on 25 January 2008 to shareholders on the register on 7December 2007. Strategy and Future We expect the weak market conditions being experienced, both in the Electronicsand Parts Services divisions, to continue until at least the year end.Consequently, at present we do not expect any year-on-year growth in thebusiness in the second half year. Our "funnel" of new designs in Electronics is strong and our customer base isexpanding providing confidence, both in the effectiveness of our strategy andour ability to succeed in the longer term. In Parts Services we are winning some new business and we continue to extend ourofferings to the supply chain in the IT infrastructure maintenance industry.There remain a number of good opportunities going forward, but they are provingslow to convert into contracts. With the sale of the IT Solutions Business, Acal's strategy is to concentrateits management and other resources on the development and growth of itsElectronics and Parts Services divisions. Both have opportunities for growth inthe areas in which they are strong. Whilst Acal's strategy is primarily based onorganic growth by gaining market share, the Board continues to considerselective acquisition opportunities in our core business. R MoonChairman29 November 2007 condensed consolidated income statement(unaudited)for the six months ended 30 September 2007 six months notes six months ended year ended ended 30 Sept 2006 31 Mar 2007 30 Sept 2007 restated* restated*Continuing operations £m £m £m Revenue 3 77.6 79.0 164.5Cost of sales (54.5) (56.0) (116.7) Gross profit 23.1 23.0 47.8Selling and distribution costs (11.7) (11.2) (24.0)Administrative expenses (8.6) (9.2) (18.4)Other operating income - 0.1 0.6Other operating expenses - (1.8) (1.8) Operating profit 2.8 0.9 4.2 Analysed between:Ongoing activities:Operating profit before exceptional items 3 2.8 2.7 5.6Exceptional items - - 0.4Disposed activities:Exceptional items - (1.8) (1.8) Share of post-tax profits from associates 0.5 0.3 0.6Finance costs (0.9) (0.9) (1.5)Finance income 0.2 0.3 0.4 Profit before tax 2.6 0.6 3.7 Analysed between:Ongoing activities:Profit before exceptional items 2.6 2.4 5.1Exceptional items - - 0.4Disposed activities:Exceptional items - (1.8) (1.8) Taxation (0.8) (0.2) (1.2) Analysed between:Ongoing activities:Taxation before exceptional items (0.8) (0.7) (1.6)Exceptional items - - (0.1)Disposed activitiesExceptional items - 0.5 0.5 Profit after taxation for the period from continuing operations 1.8 0.4 2.5 Discontinued operations Profit for the period from discontinued operations 4 1.1 7.3 9.4 Profit for the period 2.9 7.7 11.9 Attributable to:Equity holders of the parent 2.9 7.5 11.7Minority interests - 0.2 0.2 2.9 7.7 11.9 Earnings per share 7 Continuing operationsOngoing activities: Basic - before exceptional items 6.7p 5.4p 12.7pBasic - after exceptional items 6.7p 5.4p 13.8pDiluted - before exceptional items 6.7p 5.4p 12.7pDiluted - after exceptional items 6.7p 5.4p 13.8p Including discontinued operationsBasic 10.9p 28.4p 44.4pDiluted 10.9p 28.4p 44.4p DividendsDividends per share declared in respect of period 7.2p 7.2p 21.9pDividends per share paid in period 14.7p 14.4p 21.6pDividends paid in period £ 3.9m £3.8m £5.7m * see note 2 condensed consolidated statement of recognised income and expense (unaudited)for the six months ended 30 September 2007 six months six months Year ended ended ended 30 Sept 2007 30 Sept 2006 31 Mar 2007 £m £m £mActuarial gain on defined benefitpension scheme - - 0.9Deferred tax relating to pension scheme - (0.1) (0.5)Foreign currency translation differences 0.3 (0.6) (0.6) Income and expense recogniseddirectly in equity 0.3 (0.7) (0.2)Profit for the period 2.9 7.7 11.9 Total recognised income andexpense for the period 3.2 7.0 11.7 Attributable to:Equity holders of the parent 3.2 6.8 11.5Minority interests - 0.2 0.2 3.2 7.0 11.7 condensed consolidated balance sheet (unaudited)at 30 September 2007 at 30 at 30 at 31 March Sept 2007 Sept 2006 2007 £m £m £m notesNon-current assetsProperty, plant and equipment 4.4 6.6 6.3Goodwill 53.2 48.7 53.5Intangible assets - software 3.5 4.5 3.9Investments in associates 5.2 4.7 5.0Other financial assets 0.3 0.3 0.3Deferred tax assets 4.3 4.1 4.0 70.9 68.9 73.0 Current assetsInventories 18.8 23.2 23.7Trade and other receivables 28.2 49.4 58.8Current tax assets 0.6 0.7 0.4Cash and cash equivalents 7.4 10.6 11.9 55.0 83.9 94.8 Current liabilitiesTrade and other payables (23.2) (48.1) (58.9)Short-term borrowings (8.4) (7.1) (7.2)Current tax liabilities (2.2) (2.3) (2.8)Provisions (1.9) (1.8) (2.1) (35.7) (59.3) (71.0) Net current assets 19.3 24.6 23.8 Assets of discontinued 28.4 - -operations classified as heldfor sale 4Non-current liabilitiesLong-term borrowings (10.1) (6.2) (10.1)Pension liability (6.8) (8.9) (7.4)Deferred tax liabilities (1.5) (1.9) (1.6)Provisions (1.8) (1.6) (1.9) (20.2) (18.6) (21.0) Liabilities of discontinued (23.2) - -operations classified as heldfor sale 4 Net assets 75.2 74.9 75.8 EquityShare capital 9 1.3 1.3 1.3Share premium account 9 38.0 38.0 38.0Share scheme reserve 9 0.4 0.3 0.3Other reserves 9 1.5 1.2 1.2Retained earnings 9 34.0 32.2 35.0Equity attributable to equityholders of the parent 75.2 73.0 75.8 Minority interests 9 - 1.9 - Total equity 9 75.2 74.9 75.8 condensed consolidated cash flow statement (unaudited)for the six months ended 30 September 2007 six months ended six months year 30 Sept 2007 ended 30 ended Sept 2006 31 Mar 2007 £m £m £m Profit for the period 2.9 7.7 11.9Taxation expense 1.4 1.0 2.9Share of results from associates (0.5) (0.3) (0.6)Net finance costs 0.9 0.7 1.3Depreciation of property, plant and equipment 0.8 1.0 1.9Amortisation of intangible assets - software 0.5 0.5 1.2Change in provisions (0.3) 1.8 2.3Gain on disposal of business - (5.9) (6.0)Gain on disposal of property, plant and equipment - (0.1) -Pension scheme funding (0.6) (0.4) (1.0)Equity-settled share-based payment expense 0.1 0.1 0.1Operating cash flows before changes in working capital 5.2 6.1 14.0Decrease/(increase) in inventories 0.3 (1.9) (2.5)Decrease/(increase) in trade and other receivables 9.4 7.4 (1.9)(Decrease)/increase in trade and other payables (14.0) (9.2) 1.6 Increase in working capital (4.3) (3.7) (2.8) Cash generated from operations 0.9 2.4 11.2Interest paid (1.0) (0.9) (1.5)Income taxes paid (1.7) (1.5) (3.4) Net cash flow from operating activities (1.8) 0.0 6.3 Cash flows from investing activitiesAcquisition of shares in subsidiaries - - (6.7)Proceeds from sale of subsidiaries - 8.3 8.3Net overdrafts disposed of with subsidiaries - 0.2 0.4Purchases of property, plant and equipment (0.7) (1.1) (1.8)Proceeds from sale of property, plant and equipment 0.5 0.2 0.2Purchases of intangible assets - software (0.1) (0.2) (0.4)Interest received 0.2 0.2 0.4Dividends received from associates 0.2 0.2 0.2 Net cash flow from investing activities 0.1 7.8 0.6 Cash flows from financing activitiesRepayments of borrowings - (11.0) (7.1)Dividends paid to company's shareholders (3.9) (3.8) (5.7)Dividends paid to minority interests - (0.1) (0.1) Net cash flow from financing activities (3.9) (14.9) (12.9) Net decrease in cash and cash equivalents (5.6) (7.1) (6.0) 4.8 10.8 10.8 Cash and cash equivalents at beginning of periodCash and cash equivalents at end of period (0.8) 3.7 4.8 Reconciliation to cash and cash equivalents in thebalance sheet Cash and cash equivalents shown above (0.8) 3.7 4.8Add back overdrafts 8.2 6.9 7.1 Cash and cash equivalents shown within current assets in the balance sheet 7.4 10.6 11.9 notes to the interim resultsfor the six months ended 30 September 2007 1. Corporate information Acal plc is a company incorporated and domiciled in England and Wales. TheCompany's ordinary shares are traded on the London Stock Exchange. The condensedinterim financial statements consolidate the financial statements of Acal plc,entities controlled by the Company (its subsidiaries) and include the Group'sshare of the results of associates. 2. Basis of preparation and accounting policies The condensed consolidated interim financial statements for the six months to 30September 2007 have been prepared in accordance with the Disclosure andTransparency Rules of the Financial Services Authority and IAS34 'InterimFinancial Reporting' as adopted by the European Union. They do not include allthe information and disclosures required in the annual financial statements, andshould be read in conjunction with the Group's annual financial statements forthe year to 31 March 2007, which were prepared in accordance with IFRS asadopted by the European Union. The condensed consolidated interim financialstatements are unaudited and were approved by the Board of Directors for issueon 29 November 2007. The results for the year to 31 March 2007 are based on full audited accountsprepared in accordance with IFRS as adopted by the European Union. Theseaccounts were filed with the Registrar of Companies and contain a report of theauditors, which does not contain a statement under sections 237 (2) or (3) ofthe Companies Act 1985 and is unqualified. The consolidated financial statementsof the Group for the year ended 31 March 2007 are available on request from theCompany's registered office or on its website. Significant accounting policies The accounting policies adopted are consistent with those followed in thepreparation of the Group's annual financial statements for the year ended 31March 2007. In the current financial year, the Group will adopt International FinancialReporting Standard 7 'Financial Instruments: Disclosures' (IFRS7) for the firsttime. As IFRS 7 is a disclosure standard, there is no impact of that change inaccounting policy on the half-yearly financial report. Full details of thechange will be disclosed in our annual report for the year ending 31 March 2008. Restatement of prior year comparatives Following the announced conditional sale of the IT Solutions division excludingVertec ("the IT Solutions Business") that business has been classified asdiscontinued operations, and the comparatives for the six months to 30 September2006 and the year to 31 March 2007 restated accordingly. The assets andliabilities of the IT Solutions Business are presented as being held for sale inthe balance sheet as at 30 September 2007. The sale remains conditional upon merger control clearance. Therefore, no profiton disposal and no provision for the associated costs of disposal have beenrecognised. 3. Segmental reporting Segmental information is presented in respect of the Group's business segments,which are the primary basis of segmental reporting. This format reflects theGroup's management and internal reporting structures. Inter segment revenue isinsignificant. Six months to 30 September 2007 Total Parts ongoing Disposed Total Electronics Services activities activities operations £m £m £m £m £m Revenue 53.7 23.9 77.6 45.8 123.4 Segment result 1.4 1.4 2.8 1.9 4.7Net finance costs (0.7) (0.2) (0.9)Share of post-tax profits from associates 0.5 0.5 - 0.5 Profit before taxation 2.6 1.7 4.3Taxation (0.8) (0.6) (1.4) Profit for the period 1.8 1.1 2.9 The figures for total operations in the table above may be analysed betweencontinuing and discontinued operations as follows: Continuing Discontinued Total operations operations operations £m £m £m Revenue 77.6 45.8 123.4 Segment result 2.8 1.9 4.7Net finance costs (0.7) (0.2) (0.9)Share of post-tax profits fromassociates 0.5 - 0.5 Profit before taxation 2.6 1.7 4.3 Taxation (0.8) (0.6) (1.4) Profit for the period 1.8 1.1 2.9 Six months to 30 September 2006 Parts Total Disposed Total Services ongoing activities operations Electronics activities £m £m £m £m £m Revenue 54.0 25.0 79.0 49.2 128.2 Segment result 1.4 1.3 2.7 2.3 5.0Provision for retained obligations - (1.8) (1.8)Profit on disposal of business - 6.0 6.0Net finance costs (0.6) (0.1) (0.7)Share of post-tax 0.3 0.3 - 0.3profits from associates Profit before taxation 2.4 6.4 8.8 Taxation (0.7) (0.4) (1.1) Profit for the period 1.7 6.0 7.7 The figures for total operations in the table above may be analysed betweencontinuing and discontinued operations as follows: Continuing Discontinued Total operations operations operations £m £m £m Revenue 79.0 49.2 128.2 Segment result 2.7 2.3 5.0Provision for retained obligations (1.8) - (1.8) Profit on disposal of business - 6.0 6.0 Net finance costs (0.6) (0.1) (0.7)Share of post-tax profits fromassociates 0.3 - 0.3 Profit before taxation 0.6 8.2 8.8 Taxation (0.2) (0.9) (1.1) Profit for the period 0.4 7.3 7.7 The results for the six months to 30 September 2006 have been restated toreflect the IT Solutions Business within discontinued operations (see note 4),and the inclusion of the medical instrumentation business within Electronics. Year to 31 March 2007 Total Parts ongoing Disposed Total Electronics Services activities activities operations £m £m £m £m £m Revenue 112.6 51.9 164.5 101.7 266.2 Segment result 3.1 2.5 5.6 5.3 10.9Exceptional item - recovery of impairedreceivable 0.4 - 0.4Provision for retained obligations - (1.8) (1.8)Profit on disposal of business - 6.0 6.0Net finance costs (1.1) (0.2) (1.3)Share of post-tax profits fromassociates 0.6 0.6 - 0.6 Profit before taxation 5.5 9.3 14.8 Taxation (1.7) (1.2) (2.9) Profit for the year 3.8 8.1 11.9 The figures for total operations in the table above may be analysed betweencontinuing and discontinued operations as follows: Continuing Discontinued Total operations operations operations £m £m £m Revenue 164.5 101.7 266.2 Segment result 5.6 5.3 10.9Exceptional item -recovery of impaired receivable 0.4 - 0.4Provision for retainedobligations (1.8) - (1.8)Profit on disposal of business - 6.0 6.0Net finance costs (1.1) (0.2) (1.3)Share of post-tax profits from associates 0.6 - 0.6 Profit before taxation 3.7 11.1 14.8Taxation (1.2) (1.7) (2.9) Profit for the year 2.5 9.4 11.9 The results for the year to 31 March 2007 have been restated to reflect the ITSolutions Business within discontinued operations (see note 4), and theinclusion of the medical instrumentation business within Electronics. 4. Discontinued operations On 27 September 2007, the Company announced that it had conditionally agreed tosell its IT Solutions Business ("ITS") to Avnet, Inc. for a cash considerationof £41 million. Completion of the sale is expected in December 2007. The resultsof ITS have been presented under discontinued operations in the consolidatedincome statement and its assets and liabilities classified as held for sale. Thecomparative income statements have been restated to show ITS as a discontinuedoperation. The results of the discontinued operations for the comparative periods alsoinclude the results of the Air Conditioning and Refrigeration ("AC&R") divisionwhich was sold in July 2006. Profits attributable to the discontinued operations were as follows: Six months Six months to 30 Year to 31 March to 30 September 2006 2007 September 2007 ITS ITS AC&R Total ITS AC&R Total £m £m £m £m £m £m £m Revenue 45.8 43.9 5.3 49.2 96.4 5.3 101.7Expenses (43.9) (42.0) (4.9) (46.9) (91.5) (4.9) (96.4)Profit before financing and tax 1.9 1.9 0.4 2.3 4.9 0.4 5.3Finance costs (net) (0.2) (0.1) - (0.1) (0.2) - (0.2)Profit before tax 1.7 1.8 0.4 2.2 4.7 0.4 5.1Income tax expense (0.6) (0.6) (0.2) (0.8) (1.4) (0.2) (1.6)Profit for the period from trading of discontinuedoperations 1.1 1.2 0.2 1.4 3.3 0.2 3.5Profit on disposal of business - - 5.9 5.9 - 5.9 5.9Profit for the period from discontinuedoperations 1.1 1.2 6.1 7.3 3.3 6.1 9.4 As at 30 September 2007, the major classes of assets and liabilities of ITSclassified as held for sale were: £m Property, plant and equipment 1.4Goodwill 0.4Inventories 4.8Trade and other receivables 21.8 Total assets 28.4 Trade and other payables (22.4)Current tax liabilities (0.6)Deferred tax liabilities (0.2) Total liabilities (23.2) The Group will incur costs, estimated to amount in aggregate to approximately£3.5 million, to cover certain obligations of the IT Solutions business whichwill be retained by the Group following the disposal. These obligationsrepresent costs relating to people, properties and the impairment of IT systemswhich will be met in future periods. 5. Taxation The effective tax rate on profit before tax of ongoing activities, excluding theshare of post-tax profits from associates, for the six months to 30 September2007 is 38.9 % (2006: 38.7 %, year to 31 March 2007: 38.4 %). The effective rates for the period have been calculated by applying the Group'sbest estimates of the effective tax rate for the current year. 6. Dividends The directors have declared an interim dividend of 7.2 pence per share (2006:7.2 pence) payable on 25 January 2008 to shareholders on the register at 7December 2007. In accordance with IAS 10, this dividend has not been reflectedin the interim results. The amount of this interim dividend is £1.9 million(2006: £1.9 million). 7. Earnings per share The following reflects the income and share data used in the basic and dilutedearnings per share computations: six months six months Year ended ended ended 30 Sept 30 Sept 31 Mar 2007 2006 2007 £m £m £mProfit for the year from ongoingactivities attributable to equityholders of the parent - before exceptionals 1.8 1.5 3.3Exceptional items net of tax - ongoing activities - - 0.3 Profit for the year from ongoing activities attributable to equity holders of the parent 1.8 1.5 3.6Profit for the year from disposedactivities attributable to equityholders of the parent - (1.3) (1.3) Profit for the year fromcontinuing operations 1.8 0.2 2.3Profit for the year fromdiscontinued operationsattributable to equity holders ofthe parent 1.1 7.3 9.4 Profit for the year attributableto equity holders of the parent 2.9 7.5 11.7 Weighted average number of shares for basic earnings per share 26.4 26.4 26.4Effect of dilution - share options - - - Adjusted weighted average number of shares for diluted earnings per share 26.4 26.4 26.4 At the period end there were 1.1 million ordinary share options in issue thatcould potentially dilute earnings per share in the future but are not includedin the calculation at the year end because they are currently non-dilutive(2006: 1.2 million, 31March 2007: 1.0 million). 8. Reconciliation of movement in net debt six months six months year ended ended 30 Sept ended 30 Sept 31 Mar 2007 2006 2007 £m £m £m Net decrease in cash and cashequivalents (5.6) (7.1) (6.0)Cash outflow from decrease in debt andlease financing - 11.0 7.1 Translation differences (0.1) (0.1) - (Increase)/decrease in net debt (5.7) 3.8 1.1Net debt at beginning of the period (5.4) (6.5) (6.5) Net debt at end of the period (11.1) (2.7) (5.4) 9. Reserves Attributable to equity holders of the parent Share Share premium scheme Share account reserve Retained Other Minority Total capital earnings reserves Total interests equity £m £m £m £m £m £m £m £m At 1 April 2007 1.3 38.0 0.3 35.0 1.2 75.8 - 75.8Total recognised income and expense - - - 2.9 0.3 3.2 - 3.2Share-based payments - - 0.1 - - 0.1 - 0.1Equity dividends - - - (3.9) - (3.9) - (3.9) At 30 Sept 2007 1.3 38.0 0.4 34.0 1.5 75.2 - 75.2 Attributable to equity holders of the parent Share Share premium scheme Share account reserve Retained Other Minority Total capital earnings reserves interests equity Total £m £m £m £m £m £m £m £m At 1 April 2006 1.3 38.0 0.2 28.6 1.8 69.9 1.8 71.7 Total recognised income and expense - - - 7.4 (0.6) 6.8 0.2 7.0Share-based payments - - 0.1 - - 0.1 - 0.1Equity dividends - - - (3.8) - (3.8) - (3.8)Dividends paid tominority interests - - - - - - (0.1) (0.1) At 30 Sept 2006 1.3 38.0 0.3 32.2 1.2 73.0 1.9 74.9 1.3 38.0 0.2 28.6 1.8 69.9 1.8 71.7 At 1 April 2006Total recognised - - - 12.1 (0.6) 11.5 0.2 11.7 income and expenseShare-based payments - - 0.1 - - 0.1 - 0.1Equity dividends - - - (5.7) - (5.7) - (5.7)Dividends paid tominority interests - - - - - - (0.1) (0.1)Acquisition of minority interests - - - - - - (1.9) (1.9)At 31 March 2007 1.3 38.0 0.3 35.0 1.2 75.8 - 75.8 10. Other reserves Merger Currency reserve Translation reserve Total £m £m £mAt 1 April 2007 0.8 0.4 1.2Total recognised income and expense - 0.3 0.3 At 30 September 2007 0.8 0.7 1.5 At 1 April 2006 0.8 1.0 1.8Total recognised income and expense - (0.6) (0.6) At 30 September 2006 0.8 0.4 1.2 At 1 April 2006 0.8 1.0 1.8Total recognised income and expense - (0.6) (0.6) At 31 March 2007 0.8 0.4 1.2 11. Statement of Directors' Responsibilities The directors confirm that this condensed set of financial statements has beenprepared in accordance with IAS 34 as adopted by the European Union, and thatthe condensed consolidated interim financial statements include a fair review ofthe information required by DTR 4.2.7 and DTR 4.2.8. By order of the Board R MoonChairman29 November 2007 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
DiscoverIE