9th Nov 2005 07:00
Wincanton PLC09 November 2005 For Immediate Release 9 November 2005 WINCANTON plc Interim Results for the half year ended 30 September 2005 "Acquisition complements continuing organic growth" 2005 2004 % £m £m change Revenue 879.8 800.3 Underlying operating profit (note) 20.0 19.0 5.3%Net financing costs (4.0) (5.5) Underlying profit before tax (note) 16.0 13.5 18.5%Other items (net) (0.8) (5.2) Profit before tax 15.2 8.3 Underlying earnings per share 9.5p 7.6p 25.0%Basic earnings per share 9.1p 4.2p Dividend per share 3.94p 3.66p 7.7% Note: Underlying profit before tax and earnings per share are stated beforeexceptional restructuring costs of £1.4m (2004: £5.2m), exceptional propertyprofits of £0.8m (2004: nil) and amortisation of acquired intangibles of £0.2m(2004: nil). Operating profit including these items amounted to £19.2m (2004:£13.8m). OPERATIONAL HIGHLIGHTS• New business activity in UK & Ireland remains high.• Continuing progress in Continental Europe.• Recently-announced acquisition strengthens operational capabilities and customer portfolio in the important French market FINANCIAL HIGHLIGHTS • Underlying operating profit up by 5.3% to £20.0m• Underlying earnings per share up by 25.0%• 7.7% increase in interim dividend, to 3.94p per share Commenting on the results, Paul Bateman, Wincanton Chief Executive, said: "The prospects for continuing organic growth, together with an initialcontribution from our recent French acquisition, give us confidence that thefull year will be another year of operational and strategic progress forWincanton." For further enquiries please contact: WincantonPaul Bateman, Chief Executive ) +44 (0) 1249 710000Gerard Connell, Group Finance Director )Charles Carr, Group Corporate Communications Director ) Buchanan CommunicationsCharles Ryland/Jeremy Garcia +44 (0) 207 466 5000 Half Year ReviewFor the 6 months ended 30 September 2005 Introduction Wincanton's focus on strength in national markets, combined with Pan-Europeancapability, continues to generate opportunities for growth across Europe. Thesix months to 30 September 2005 represented another period of excellent progressfor the Group. Operationally, we again delivered high levels of service and efficiency for ourcustomers. Financially, we again reported good profit growth, strong cash flowand a further reduction in net debt. Strategically, we consolidated our positionas one of the leading European providers of supply chain services through theacquisition of Premium Logistics ("Premium") shortly after the period end. UK & Ireland Levels of activity in our businesses in the UK & Ireland remained high in thefirst half. Successful contract start-ups were managed for new and existingcustomers such as Argos, GlaxoSmithKline, Matalan, Tulip and Unilever. We sawboth business extension and expansion with other customers such as PernodRicard, Sainsbury, Shell Gas and Tesco. Our re-packing activities expandedfurther with new contract gains for Heinz and Procter & Gamble. Other contractwins included a transport and warehousing operation for Miller Brands UK and anew distribution operation for Woolworths in Northern Ireland. Other contractrenewals included business extensions with Comet, Dairy Crest, Esso, Procter &Gamble and Novartis. Developments with Comet also included a new home delivery platform, a solutionfor packaging waste clearance and the establishment of a national sortationnetwork to handle the implementation of the Waste Electrical and ElectronicEquipment Directive. The reverse logistics and recycling solution developed forComet is indicative of the need for significant change in retail supply chainsarising from the new recycling legislation. Given our strong presence in theretail sector and growing expertise in reverse logistics and recycling,Wincanton is very well placed to develop new services for customers in thispotentially fast-growing area of the market. Our work with Comet recently wonthe 2005 National Recycling Award for Best Partnership Project for Recycling. Our portfolio of ancillary services also performed well in the period.Consilium, our consultancy operation, carried out projects for John Lewis,Musgrave and Unilever, amongst others. Pullman Fleet Services, our fleetmaintenance business, added new contracts with Arla Foods, Cemex, Somerfield andTesco. Our data records management business continues to strengthen its marketposition and investment in the current year will significantly expand capacityin both London and Dublin. Continental Europe The six months to 30 September also saw further improvement in our ContinentalEuropean operations. Actions taken in recent years to improve efficiency andreduce costs are giving the Group a stronger platform for future growth. Goodprogress is being made in leveraging sector expertise across markets, indeveloping cross-border relationships with a growing number of customers and inenhancing our service offering in areas such as national and internationalfreight management. The first half saw a very good performance in our intermodal operations on theRhine, with record volumes being handled. The German road network remainedprofitable, in spite of lower volumes from key automotive customers, and lastyear's midiData acquisition is being successfully integrated. New distributioncustomers in Germany included Foseco Steel and BK Giulini. Contract renewals inGermany included Volvo. The recently announced acquisition of the principal French operations of Premiumsignificantly strengthens our operational capabilities and customer portfolio inthe important French market. The enlarged French business now offers nationalcoverage from 29 sites, giving a substantially stronger and broader businessbase from which we will be able to serve both the French and cross-borderrequirements of our blue-chip customer base. Premium's customers operatepredominantly in sectors in which Wincanton has a strong track record andacknowledged expertise. Its contract base includes multinational FMCG companies,leading retailers of grocery, DIY and home furnishing products and majormanufacturers of automotive, chemical and lubricant products. The performance ofour existing French business, which is principally based around Strasbourg andincludes a regional transport operation, was held back in the first half by theeffect of fuel price increases. New business was nonetheless added withcustomers such as Alsace Lait, Dow Automotive and Systeme U. Our Dutch operations benefited in the first half from higher levels of spaceutilisation and another good contribution from international freight management.New contracts have been added in this growth area with customers such as DiolenIndustrial Fibres and Rohm & Haas. We expect further growth opportunities fromthese activities. Following last year's site closure there was an improved performance from ourSpanish business. A new management team has been put in place to seek toaccelerate the recovery programme. Business gains and renewals in the periodincluded customers such as Alcoa and Thyssen. New business opportunities led to an active first half for our Central Europeanoperations. Contract gains included a central warehousing operation for Globus,a leading Czech retailer, and a national warehousing and distribution operationfor Leroy-Merlin in Poland. We are pleased to see Wincanton's industry-leadingexpertise in the retail sector beginning to generate contract gains in newgeographic markets. Financial Review The results to 30 September 2005 are reported under International FinancialReporting Standards ("IFRS"). A restatement of the 2004/05 financial informationis available on the Group's website. Revenue, at £879.8m, was 9.9% higher than for the same period last year.Underlying operating profit, at £20.0m, was 5.3% ahead of last year. Our business in the UK & Ireland delivered solid profit progress, with a 4.0%increase in underlying operating profit, to £18.2m, on revenue up 9.0% to£574.1m. Continental Europe, with revenue up by 11.7% to £305.7m, also showedunderlying profit growth on last year, up £0.3m to £1.8m. This was a goodperformance given the ground to be made up for the lost contribution from PGNwhich remains subject to arbitration. A continuing focus on cash management, combined with lower lending margins,resulted in a £1.5m reduction in the interest charge, to £4.0m. Net debt at thehalf year stood at £47.9m, compared to £59.0m at 30 September 2004, and £56.5mat 31 March 2005. Our committed banking facilities, totalling £210m, have recently been extendedto December 2010 at a slightly reduced margin. The combination of operating profit progress and a lower interest charge gave asubstantial 18.5% increase in underlying profit before tax, to £16.0m. A taxcharge of 31% and a minority interest charge of £0.2m produced underlyingearnings of £10.8m, a 22.7% increase on last year. Profit before tax of £15.2m was after charging exceptional costs of £1.4m (prioryear £5.2m), relating principally to the move to our new head office inChippenham. Further costs in relation to this move, albeit at a lower level thanin the first half, are expected to be incurred in the second half of thefinancial year. First half costs were substantially offset by a £0.8m profit on disposal of asurplus property for gross proceeds of £5.0m, the first of a number of suchdisposals expected over the next 18 months. Dividend The Board has declared an interim dividend of 3.94p, an increase of 7.7% on lastyear's dividend of 3.66p. This will be paid on 11 January 2006 to shareholderson the register at 9 December 2005. The group restructuring referred to in the 2004/05 Annual Report has now beencompleted, ensuring that the Group has appropriate levels of distributablereserves following the transition to IFRS noted above. Pension Fund The Board will shortly be considering the preliminary results of the triennialactuarial pension fund valuation as at 31 March 2005. These results will also beconsidered by the trustees of the Wincanton Pension Scheme. The preliminary results are expected to indicate an increase in the actuarialdeficit relative to the IAS19 deficit of £52.1m, net of deferred tax, at 31March 2005, principally as a result of the adoption of increased longevityassumptions. The Board will be discussing with the pension trustees an up-front contributionto address this increased deficit and an appropriate programme to address thebalance of the deficit over the remaining active working life of employees. TheBoard expects any such up-front contribution to be substantially funded by theprogramme of surplus property disposals referred to above. An up-frontcontribution, and any higher levels of future contribution, would also beexpected to lead to a reduction in the likely levels of mainstream UKcorporation tax payable by the Group. A further statement on the Group's pension position is anticipated in the finalquarter of the current financial year. Outlook The Group's performance in the first half of the year has been encouraging. Weare expecting to see, in the second half, a continuation of the high levels ofoperational activity and new business development opportunities that producedthese strong results. The potential for continuing organic growth, together withan initial contribution from our recent French acquisition, gives us confidencethat the full year will be another year of operational and strategic progressfor Wincanton. Board Changes Further to the announcement of Paul Bateman's decision to retire as ChiefExecutive, and of his replacement by Graeme McFaull, currently the ManagingDirector of Wincanton's operations in the UK and Ireland, it has now been agreedthat Paul will leave the Board on 14 December, following the presentation ofthese interim results to Wincanton's investors. We welcome Jonson Cox, Group Chief Executive of AWG plc, who joined the Board on21 October as a Non-executive Director. David MalpasChairman8 November 2005 Consolidated income statementfor the half year ended 30 September 2005 (unaudited) Half year Half year Year ended ended ended 30 Sept 30 Sept 31 March 2005 2004 2005 Note £m £m £m Revenue 3 879.8 800.3 1,651.5 Underlyingoperatingprofit 3 20.0 19.0 39.3 Amortisationof acquiredintangibles (0.2) - (0.1)Exceptionalrestructuringcosts 4 (1.4) (5.2) (9.4)Exceptionalpropertyprofits 4 0.8 - -Exceptionalprofits onassetdisposals 4 - - 7.6 Operatingprofit 19.2 13.8 37.4 Financialincome 1.3 1.4 2.8Financialexpenses (5.3) (6.9) (12.7) Net financingcosts (4.0) (5.5) (9.9)Share ofprofits ofassociates - - 0.1 Profit beforetax 15.2 8.3 27.6 Income taxexpense 5 (4.6) (3.3) (8.3) Profit for theperiod 10.6 5.0 19.3 Attributable to: Equityshareholdersof Wincantonplc 10.4 4.8 18.7Minorityinterests 0.2 0.2 0.6 Profit for theperiod 10.6 5.0 19.3 Earnings pershare- 8 9.1p 4.2p 16.4pbasic- diluted 9.0p 4.1p 16.2p All operations in the above financial periods were continuing.The dividend per share proposed in respect of the above period is 3.94p (2004:3.66p). Consolidated statement of recognised income and expensesfor the half year ended 30 September 2005 (unaudited) Half year Half year Year ended ended ended 30 Sept 30 Sept 31 March 2005 2004 2005 £m £m £m Actuariallosses ondefinedbenefitpensionschemes - - (4.9)Net foreignexchange gainon investmentin foreignsubsidiariesnet of hedgeditems 0.5 1.4 2.4Tax on itemstaken directlyto ortransferredfrom equity - - 0.7 Netprofit/(loss)recogniseddirectly inequity 0.5 1.4 (1.8) Profit for theperiod 10.6 5.0 19.3 Totalrecognisedincome andexpenses forthe period 11.1 6.4 17.5 Attributable to: Equityshareholdersof Wincantonplc 10.9 6.2 16.9Minorityinterests 0.2 0.2 0.6 Totalrecognisedincome andexpenses forthe period 11.1 6.4 17.5 Consolidated balance sheetas at 30 September 2005 (unaudited) Half year Half year Year ended ended ended 30 Sept 30 Sept 31 March 2005 2004 2005 Note £m £m £m Non-current assets Goodwill andintangibleassets 49.3 44.2 51.1Property,plant andequipment 235.5 234.9 234.1Investments 0.8 0.6 0.5 Deferred taxassets 16.4 16.7 19.6 302.0 296.4 305.3 Current assets Inventories 6.7 5.6 6.0 Trade andotherreceivables 306.0 269.0 284.3Cash and cashequivalents 6 44.2 52.1 61.9 356.9 326.7 352.2 Current liabilities Income taxpayable (5.6) (4.3) (6.9)Borrowings 6 (1.8) (2.7) (6.1)Trade andother payables (404.8) (372.5) (378.6)Employeebenefits (3.9) (5.6) (4.6)Provisions (14.3) (13.1) (13.6) (430.4) (398.2) (409.8) Net currentliabilities (73.5) (71.5) (57.6) Total assetsless currentliabilities 228.5 224.9 247.7 Non-current liabilities Borrowings 6 (90.3) (108.4) (112.3)Trade andother payables (3.2) (2.3) (3.8)Employeebenefits (98.5) (90.2) (98.4)Provisions (36.4) (35.2) (36.0) Deferred taxliabilities (1.8) (1.5) (1.7) (230.2) (237.6) (252.2) Netliabilities (1.7) (12.7) (4.5) Equity Issued capital 11.8 11.7 11.7 Share premium 4.8 3.4 4.4 Merger reserve 3.5 3.5 3.5 Other reserves 3.7 1.6 2.9 Retainedearnings (25.9) (33.2) (27.4) Equity deficitattributabletoshareholdersof Wincantonplc (2.1) (13.0) (4.9) Minorityinterest 0.4 0.3 0.4 Total equitydeficit (1.7) (12.7) (4.5) Consolidated statement of cash flowsfor the half year ended 30 September 2005 (unaudited) Half Half Year year year ended ended ended 31 March 30 Sept 30 Sept 2005 2005 2004 £m £m £m Operating activities Profit beforetax 15.2 8.3 27.6Adjustments for: Depreciationandamortisation 15.9 17.6 35.1Interestexpense 4.0 5.5 9.9Profit on saleof property,plant andequipment (0.8) - (7.6)Share-basedpayments fairvalue charges 0.3 - 0.3 Operatingprofit beforechanges inworkingcapital andprovisions 34.6 31.4 65.3 Increase intrade andotherreceivables (22.3) (31.7) (38.0)Increase ininventories (0.7) (0.2) (0.1)Increase intrade andother payables 27.0 37.5 35.7(Decrease)/increase inprovisions (0.8) 5.0 3.7 Cash generatedfromoperations 3.2 10.6 1.3 Cash flowsfrom operatingactivities 37.8 42.0 66.6 Investing activities Proceeds fromsale ofproperty,plant andequipment 7.9 3.5 20.0Interestreceived 1.2 0.9 2.3Trans Europeancompletionsettlement - 7.8 7.8Acquisition ofmidiData netof cashacquired 0.7 - (6.7)Acquisition ofproperty,plant andequipment (25.4) (12.3) (34.4)Interest paid (3.3) (5.4) (10.7) Income taxes(paid)/received (2.6) 0.8 (2.0) Cash flowsfrom investingactivities (21.5) (4.7) (23.7) Financing activities Proceeds fromthe issue ofshare capital 0.5 1.6 2.6Purchase ofown shares - (8.5) (8.5)Decrease inborrowings (25.2) (23.5) (16.2)Payment offinance leaseliabilities (0.5) (0.7) (0.9)Dividends paidto minorityinterest insubsidiaryundertakings (0.2) (0.1) (0.4)Equitydividends paid (8.8) (8.5) (12.3) Cash flowsfrom financingactivities (34.2) (39.7) (35.7) Net(decrease)/increase in cashand cashequivalents (17.9) (2.4) 7.2Cash and cashequivalents atbeginning ofyear 61.9 54.2 54.2Effect ofexchange ratefluctuationson cash held 0.2 0.3 0.5 Cash and cashequivalents atend of year 44.2 52.1 61.9 Represented by: Cash at bankand in hand 12.3 10.6 28.4Cash depositsheld by theGroup'scaptiveinsurer tomeet insuranceliabilities 31.9 41.5 33.5 44.2 52.1 61.9 Notes to the Interim Reportfor the half year ended 30 September 2005 (unaudited) 1 Status of Interim Report and basis of preparation The Interim Report was approved by the Board on 8 November 2005. The financialinformation set out herein is unaudited but has been reviewed by the auditorsand their report to the Company is set out on page 14. Historically, Wincanton has prepared its consolidated financial statements underUK Generally Accepted Accounting Practice (UK GAAP). In accordance with thedirective of the Council of the European Union, Wincanton has adoptedInternational Financial Reporting Standards (IFRS) for the first time this year.These accounts are the first Wincanton has prepared under IFRS and have beenprepared in accordance with the IFRS accounting policies Wincanton expects toapply in the IFRS-compliant full year financial statements to 31 March 2006. The financial information contained in the Interim Report does not constitutestatutory accounts. The comparative figures for the half year ended 30 September2004 and for the year ended 31 March 2005 have been extracted from the IFRSTransition Statement issued on 8 November 2005. The UK GAAP financial information for the year ended 31 March 2005 containedwithin the IFRS Transition Statement does not constitute the Group's statutoryaccounts for that financial year. Those accounts, which were prepared under UKGAAP have been reported on by the Group's auditors and delivered to theRegistrar of Companies. The report of the auditors was unqualified and did notcontain statements under Section 237 (2) or (3) of the Companies Act 1985. Similarly the UK GAAP financial information for the half year ended 30 September2004 contained within the IFRS Transition Statement also does not constitute theGroup's statutory accounts. This information has been extracted from the interimreport for the half year ended 30 September 2004, which was reviewed by theauditors. The IFRS Transition Statement also gives details of the revised IFRS accountingpolicies and reconciliations required under IFRS 1 'First time adoption ofInternational Financial Reporting Standards'. This statement is available on thewebsite, at www.wincantonplc.co.uk or from the Company Secretarial department atthe registered office in Chippenham. Wincanton plc (the Company) is a company domiciled in England and Wales. TheInterim Report of the Group for the half year ended 30 September 2005 comprisethe Company (together referred to as the Group) and the Group's interest inassociates and joint ventures. 2 Segment reporting Segment information is presented in respect of the Group's geographicalsegments, being the primary segmentation format based on the Group's managementand internal reporting structure. As the secondary segment is the business ofcontract logistics which encompasses the entire scope of Wincanton's operations,no further segment analysis is required. The Group operates in two principal geographical areas, the United Kingdom andIreland, and Continental Europe where the business operates in 13 separatecountries. In presenting information on the basis of geographical segments,segment revenue and assets are based on the geographical location of thebusiness operations. Segment results include items directly attributable to a segment as well asthose that can be allocated on a reasonable basis.Notes to the Interim Report (continued) 3. Segment information UK & Ireland Continental Europe Consolidated Half Half Year Half Half Year Half Half Year year year ended 31 year year ended year year ended 31 ended ended March ended ended 31 ended ended March 30 Sept 30 Sept 2005 30 Sept 30 Sept March 30 Sept 30 Sept 2005 2005 2004 2005 2004 2005 2005 2004 £m £m £m £m £m £m £m £m £mRevenue 574.1 526.7 1,097.8 305.7 273.6 553.7 879.8 800.3 1,651.5Underlyingoperatingprofit bysegment 18.2 17.5 36.5 1.8 1.5 2.8 20.0 19.0 39.3Amortisationof acquiredintangibles - - - (0.2) - (0.1) (0.2) - (0.1)Exceptionalrestructuringcosts (1.4) (1.6) (4.3) - (3.6) (5.1) (1.4) (5.2) (9.4)Exceptionalpropertyprofits 0.8 - - - - - 0.8 - -Exceptionalprofits onassetdisposals - - 7.6 - - - - - 7.6Operatingprofit 17.6 15.9 39.8 1.6 (2.1) (2.4) 19.2 13.8 37.4 4 Exceptionals Half year Half Year ended year ended 30 Sept ended 31 March 2005 30 Sept 2005 2004 £m £m £mExceptional restructuring costs Reorganisationof operatingstructurepost-acquisition - - (2.0)Relocation ofUK head officeand UKrationalisation (1.4) (1.6) (2.6)Closure ofoperations inSpain, Franceand UK - (3.6) (4.8) (1.4) (5.2) (9.4) Exceptionalpropertyprofits - saleof freeholdland &buildings 0.8 - - Exceptionalprofits onassetdisposals -sale oftrailer assets - - 7.6 Notes to the Interim Report (continued) 5 Income tax expense Half Half year Year year ended ended ended 30 Sept 31 March 30 Sept 2004 2005 2005Recognised in the income statement £m £m £m Current tax expenseCurrent year 4.0 2.7 6.6Adjustmentsfor prioryears - - 1.0 4.0 2.7 7.6 Deferred tax expenseCurrent year 0.6 0.6 2.2Adjustmentsfor prioryears - - (1.5) 0.6 0.6 0.7 Total incometax expense inthe incomestatement 4.6 3.3 8.3 6 Analysis of net debt Half Half year Year year ended ended ended 30 Sept 31 March 30 Sept 2004 2005 2005 £m £m £m Cash at bankand in hand 12.3 10.6 28.4Cash depositsheld bycaptiveinsurer 31.9 41.5 33.5 Cash and cashequivalents 44.2 52.1 61.9 Borrowings due within one yearFinance leases (1.0) (1.0) (1.2)Debt (0.8) (1.7) (4.9) (1.8) (2.7) (6.1) Borrowings due after one yearFinance leases (4.9) (5.4) (5.2)Debt (85.4) (103.0) (107.1) (90.3) (108.4) (112.3) Total net debt (47.9) (59.0) (56.5) Notes to the Interim Report (continued) 7 Dividends An interim dividend is proposed of 3.94p per share to be paid on 11 January 2006to shareholders on the register on 9 December 2005. Under IFRS the proposed dividend is not shown as a charge to the incomestatement, but will be accounted for when paid. The total of the interimdividend is expected to be £4.5m (2004: Interim £4.2m). In August 2005 the finaldividend of 7.74p per share was paid to shareholders, a total of £8.8m. 8 Earnings per share Earnings per share are calculated on the basis of earnings of £10.4m (2004:£4.8m) and the weighted average of 113.9m (2004:115.1m) shares which have beenin issue throughout the period. The diluted earnings per share are calculated onthe basis of an additional 1.4m (2004: 1.1m) shares deemed to have been issuedat £nil consideration under the Company's share option schemes.A further earnings per share number is shown below, being underlying earningsbefore exceptionals, amortisation of intangibles, goodwill impairment andrelated tax, since the Directors consider that this provides further informationon the underlying performance of the Group.Underlying earnings and EPS are as follows: Half year Half year Year ended ended ended 30 Sept 30 Sept 31 March 2005 2004 2005 EPS p £m EPS p £m EPS p £m Profit for theperiodattributabletoshareholdersof Wincantonplc 9.1 10.4 4.2 4.8 16.4 18.7Exceptionalrestructuringcosts (note 4) 1.2 1.4 4.5 5.2 8.2 9.4Exceptionalpropertyprofits (note4) (0.7) (0.8) - - - -Exceptionalprofits onassetdisposals(note 4) - - - - (6.7) (7.6)Amortisationof acquiredintangibles 0.2 0.2 - - 0.1 0.1Tax on above (0.3) (0.4) (1.1) (1.2) (1.7) (2.0) Underlying EPSand earnings 9.5p 10.8 7.6p 8.8 16.3p 18.6 Independent review report to Wincanton plc Introduction We have been engaged by the Company to review the financial information set outon pages 6 to 13 and we have read the other information contained in the InterimReport and considered whether it contains any apparent misstatements or materialinconsistencies with the financial information. This report is made solely to the Company in accordance with the terms of ourengagement to assist the Company in meeting the requirements of the ListingRules of the Financial Services Authority. Our review has been undertaken sothat we might state to the Company those matters we are required to state to itin this report and for no other purpose. To the fullest extent permitted by law,we do not accept or assume responsibility to anyone other than the Company forour review work, for this report, or for the conclusions we have reached. Directors' responsibilities The Interim Report, including the financial information contained therein, isthe responsibility of and has been approved by the Directors. The Directors areresponsible for preparing the Interim Report in accordance with the ListingRules which require that the accounting policies and presentation applied to theinterim figures should be consistent with those applied in preparing thepreceding annual financial statements except where any changes, and the reasonsfor them, are disclosed. As disclosed in note 1 to the financial information, the next annual financialstatements of the Group will be prepared in accordance with IFRSs adopted foruse in the European Union. The accounting policies that have been adopted inpreparing the financial information are consistent with those that the Directorscurrently intend to use in the next annual financial statements. There is,however, a possibility that the Directors may determine that some changes tothese policies are necessary when preparing the full annual financial statementsfor the first time in accordance with those IFRSs adopted for use by theEuropean Union. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4Review of interim financial information issued by the Auditing Practices Boardfor use in the United Kingdom. A review consists principally of making enquiriesof Group management and applying analytical procedures to the financialinformation and underlying financial data and, based thereon, assessing whetherthe accounting policies and presentation have been consistently applied unlessotherwise disclosed. A review is substantially less in scope than an auditperformed in accordance with Auditing Standards and therefore provides a lowerlevel of assurance than an audit. Accordingly, we do not express an auditopinion on the financial information. Review conclusionOn the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the half year ended30 September 2005. KPMG Audit PlcChartered Accountants100 Temple StreetBristol 8 November 2005 SHAREHOLDER INFORMATION Interim results and dividend 9 November 2005announcedShares traded ex-dividend 7 December 2005Record date for interim dividend 1 9 December 2005Interim dividend paid 11 January 2006Preliminary announcement of full year June 2006resultsAnnual General Meeting July 2006 1 Shareholders on the register at this date will receive the dividend SHAREHOLDER ENQUIRIES All administrative enquiries relating to shareholdings should, in the firstinstance, be directed to the Registrar at the following address: Lloyds TSB RegistrarsThe CausewayWorthingWest SussexBN99 6DA This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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