25th May 2006 07:01
Group interim results for the half year ended 2nd April, 2006. Adjusted results* Statutory results 2006 2005+ Change 2006 2005+ Change Revenue ‚£1,083 m ‚£1,061 m +2% ‚£1,083 m ‚£1,061 m +2% Operating profit ‚£121.5 m ‚£119.9 m +1% ‚£76.0 m ‚£108.4 m -30% Profit before ‚£108.7 m ‚£101.6 m +7% ‚£184.8 m ‚£95.9 m +93%tax Earnings per 17.8 p 17.4 p +2% 38.2 p 17.0 p +125%share Dividend per 4.05 p 3.75 p +8%share * Robust results in difficult trading conditions for our consumer businesses. * Good progress on regional newspaper restructuring. * Encouraging growth in non-newspaper businesses. *(before amortisation and impairment of intangible assets including softwareamortisation, restructuring costs and non-recurring items; see ConsolidatedIncome Statement and reconciliation in Note 8).+ All references to prior period numbers are to figures prepared underInternational Financial Reporting Standards (IFRS) in place of UK GenerallyAccepted Accounting Principles (UK GAAP).A webcast of the Interim Results presentation to City analysts will beavailable for viewing from 9.30 a.m. on 25th May, 2006 at http://www.dmgt.co.uk.EnquiriesPeter Williams Tel: 020 7938 6631Nicholas Jennings Tel: 020 7938 6625Kirstie Hamilton / Peter Hewer Tulchan Communications Tel: 020 7353 4200SummaryThe Group made an adjusted profit before tax* of ‚£108.7 million for the sixmonths to 2nd April, 2006, an increase of 7% compared with the equivalentfigure for the previous year.This result reflects a good trading performance particularly from our businessto business and fast expanding digital activities. Consumer advertisingrevenues have been depressed and our newspaper divisions have been reducingcosts to protect their profits.The Group's results have been produced for the first time in accordance withInternational Financial Reporting Standards; the prior interim period's resultshave been restated, reducing adjusted profit before tax* by ‚£13 million.Statutory profit before tax for the period is ‚£184.8 million, up 93% on lastyear due to the inclusion of profits on disposal of businesses.OutlookThe Group's business-facing divisions continue to see strong growth in revenuesand are finding new opportunities to expand their activities profitably. Weexpect these businesses to produce a good result for the year.At Associated Newspapers, circulation figures are solid and we are seeing somemodest improvement in the display advertising market for our national titles ,but not in their classified advertising. We are encouraged by the progressbeing made on the further restructuring of Northcliffe, but there is littlesign of an advertising recovery in regional newspaper titles. Nevertheless, westill hope to achieve modest progress for the full financial year compared tolast year.National Newspapers and related activitiesAssociated Newspapers' operating profit*, compared to the first half of 2005,was down by ‚£4.9 million to ‚£39.1 million on revenues down ‚£29 million to ‚£459million. These results include those of the newspaper operations, Associated'sdigital activities and also the operations of Teletext which is now reportedwithin this division.Circulation revenues for the period from Associated's newspaper operations werebroadly unchanged at ‚£180 million, compared with ‚£181 million in the priorperiod. The Daily Mail continued to increase its share of the nationalnewspaper market and on 24th April 2006, it increased its Monday to Fridaycover price by 5 pence, the first such increase for nearly five years. The Mailon Sunday performed in line with the market for the six-month period to March2006. The Evening Standard again reduced the year-on-year decline in itspaid-for circulation. Metro's distribution continued to average over onemillion copies and increased by 10% in March as a result of new franchises inLiverpool and Cardiff. Metro was launched in Dublin as a joint venture inDecember 2005.Display advertising revenues fell by 9% to ‚£175 million due to lower volumes.Classified advertising fell by 9% to ‚£53 million. The advertising marketremains volatile and very short term, but there have been some recent signs ofa slight recovery in display advertising. Combining March and April (chosen toeliminate the effect of Easter being in April this year and March last year),newspaper display revenue was up 0.4% year on year and we expect May also toshow some year on year growth.Margins on Associated's titles have improved slightly despite a newsprint priceincrease from 1 January. Pension costs have fallen, partly as a result of arestructuring of benefits last year. The Evening Standard in particular hassignificantly reduced its cost base.*References to operating profit in the narrative above are to adjustedoperating profit (before amortisation and impairment of intangible assetsincluding software amortisation, restructuring costs and non-recurring items);see note 2.+ All references to prior period numbers are to figures prepared under IFRS inplace of UK GAAP.Associated's digital operations including Jobsite, Find a Property and PrimeLocation, increased their revenues by 53% to ‚£21 million. Excluding the effectof acquisitions made since the first half of last year, revenues increased by26%. The property website, primelocation.com, which was acquired in January, istrading well. Allegran, which operates a portfolio of dating web sites, andDMR, operating carsource.co.uk, were acquired towards the end of the period.Revenues from Associated's television-related activities, including Teletext,fell by 16% to ‚£25 million. Advertising revenue from Teletext's analogueservices fell by 23% year on year, but revenues from its digital services roseby 50%. In May, Teletext accepted retrospective revised licence terms from theIndependent Television Commission, the benefit of which has been reflected inthese results.Regional newspapers and related activitiesNorthcliffe's operating profit* fell by ‚£0.8 million to ‚£39.1 million onrevenue which was down 4% to ‚£247 million.Circulation revenues of ‚£49 million were unchanged from the same period lastyear. In the July to December 2005 ABC period, Northcliffe morning and eveningdaily titles declined less than industry average circulation figures.Advertising revenues in the UK fell by 6.4% (7.5% if adjusted for the effectsof a later Easter this year). Excluding recruitment revenues, which declined by14%, advertising revenues were 3% lower. Property (up 7%) continued to grow,but motors fell by 14%. Revenues from digital publishing were 20% above thoseof the same period last year.For the four months to April 2006, (excluding Aberdeen Journals which was soldon 2nd April), UK advertising revenues were down 8.5%. By category, propertywas up 7%; recruitment and motors were each down by 18%, although the rate ofdecline in recruitment revenues has slowed somewhat.UK publishing costs in the period were 5% lower than in the previous period,despite suffering a newsprint price increase and significantly higher energycosts.Northcliffe UK restructuringThe extended Aim Higher programme of organisational and structural improvementscontinues. Annualised cost reductions from the programme are currently runningat around ‚£28 million. Staff numbers have fallen from around 6,800 (excludingAberdeen Journals) in June 2005 to around 5,950 at the end of April 2006. Weare confident of achieving our announced target of ‚£45 million cost reductionby the end of September 2007.At the end of March, we announced that Northcliffe would be reorganised on aregional basis and would collaborate more closely with Associated in someareas. The new structure has been put in place, organising Northcliffe into sixregions. This has resulted in a number of management departures and a reductionin the size of Northcliffe's London office. Combined printing and digitaloperations have already been established.A restructuring charge of ‚£14.8 million has been taken which includes the costsfor the second phase of Northcliffe's reorganisation programme, together withthe professional costs of the strategic review of the business.*References to operating profit in the narrative above are to adjustedoperating profit (before amortisation and impairment of intangible assetsincluding software amortisation, restructuring costs and non-recurring items);see note 2.+ All references to prior period numbers are to figures prepared under IFRS inplace of UK GAAP.Information publishingDMG Information increased its operating profit* by ‚£9.9 million to ‚£24.1million on revenues up 26% to ‚£154 million.The business to business division grew its revenues by 33% to ‚£104 million andoperating profit* rose by ‚£10.0 million (52%) to ‚£29.2 million. The maincontributors to this strong performance were Risk Management Solutions,Environmental Data Resources, Trepp and Landmark, with the latter benefitingfrom a resurgent UK residential market. Each business is seeing strong demandfor broadening product portfolios and was able to improve margins, despitecontinued investment in new initiatives. Trepp, serving the buoyant commercialmortgage-backed securities market, has had a particularly strong first half.Within the careers division, the seasonal first half losses were at a similarlevel to last year. However, forward bookings are higher which should convertinto improved profits in the second half year. Revenues increased by 14% withHobsons up 17%, where the US business in particular grew well, and Study Groupup 14%.Financial publishingEuromoney Institutional Investor increased its operating profit* by ‚£0.1million to ‚£15.0 million on revenues up 18% to ‚£103 million. This result wasachieved despite charging ‚£2.3 million for the cost of its capital appreciationplan which was implemented in the second half of the prior year. Excluding thiscost, underlying operating profit* rose by 17%.Revenue for the first half exceeded ‚£100 million for the first time and strongorganic growth helped drive record underlying operating profits. Encouragingly,all divisions increased operating profits* and subscription revenues grew attheir highest rate for some time. As last year, revenue growth camepredominantly from the event businesses, with only limited growth inadvertising. These positive trends have continued into the third quarter.Exhibitionsdmg world media's operating profit* rose by ‚£0.3 million to ‚£17.0 million onrevenues up 11% to ‚£100 million. It saw the same divergence in results as theGroup overall, with several of its consumer events struggling, but its businessshows performing strongly. The home and garden shows had a tough period withoperating profits* down by 23%. Attendances at the Daily Mail Ideal Home Showwere 10% lower than the previous year, but attendees generally stayed longerand spent more than expected.Within the other sectors, operating profits* rose significantly withparticularly good performances from Palm Beach 3, the contemporary art,sculpture and photography show, and SurfExpo in Florida, from Index (which wasnot held in the previous financial year) and Big 5 in Dubai, and particularlyfrom AdTech's online marketing show and conference in New York.*References to operating profit in the narrative above are to adjustedoperating profit (before amortisation and impairment of intangible assetsincluding software amortisation, restructuring costs and non-recurring items);see note 2.+ All references to prior period numbers are to figures prepared under IFRS inplace of UK GAAP.BroadcastingBroadcasting now comprises purely the operations of DMG Radio in Australia. Itmade an operating loss* of ‚£1.9 million, a fall of ‚£2.6 million on revenuewhich was up 23% to ‚£20 million despite a slowing radio advertising market. Thefall was due to the launch costs and start-up losses of the new Vega radiostations in Sydney and Melbourne, offset partly by improving results from thenewest Nova stations in Brisbane and Adelaide. The Vega launches have beendisappointing, with audiences slow to build, and changes are currently beingimplemented.The Nova stations were again number one in the five main cities in the 18-24age group in the most recent survey, as well as being the leading nationalnetwork in its target market of listeners under 40. The Brisbane Nova, launchedonly in April 2005, has already become the leading station in the city.Joint ventures and associatesThe Group's share of the results* of its joint ventures and associates (aftertax) fell by ‚£1.5 million to ‚£2.2 million due mainly to the absence of acontribution from GWR Group plc (which merged into GCap Media plc in May 2005and is now held as a trade investment).Other income statement itemsThe charge for amortisation of intangible assets increased by ‚£9.4 million to ‚£21.9 million and an impairment charge was made of ‚£7.8 million.Other gains and losses of ‚£132.1 million arose principally from the ‚£122million profit on sale of Aberdeen Journals. They also included defined benefitpension scheme finance income of ‚£10.0 million, an increase of ‚£5.3 million.Investment revenue, chiefly interest on deposits, increased by ‚£4.8 million to‚£14.2 million. Finance costs, mainly interest payable on loans and bonds, roseby ‚£3.1 million to ‚£39.2 million.After removing the effect of amortisation and impairment, restructuring costsand significant non-recurring items, the adjusted tax rate for the interimperiod is 31.9% (2005: 28.5%). The 2006 interim tax rate is higher than that ofthe prior period as 2005 marked the final period when prior year US tax losseswere recognised in the income statement.The 2006 full year tax rate is expected to be slightly higher than the interimtax rate due to the timing of when profits arise in various jurisdictions. Theactual amount of tax paid is not affected by these changes.*References to operating profit or loss in the narrative above are to adjustedoperating profit or loss (before amortisation and impairment of intangibleassets including software amortisation, restructuring costs and non-recurringitems); see note 2.*References to share of the results of joint ventures and associates in thenarrative above are to adjusted share of the results of joint ventures andassociates (before amortisation and impairment of intangible assets); see note3.+ All references to prior period numbers are to figures prepared under IFRS inplace of UK GAAP.Net debtNet debt at the end of the period was ‚£765 million, a reduction of ‚£2 millionsince the year end. Operating cash flows and disposal proceeds of ‚£126 millionwere offset mainly by acquisitions of ‚£127 million and capital expenditure of ‚£51 million, principally Associated's new plant at Didcot.The principal acquisitions during the period were three digital businessesbought by Associated, Prime Location, Allegran and DMR, for a total upfrontcost of ‚£80 million. There were also payments of deferred considerationtotalling ‚£33 million. Disposals of investments and businesses aroseprincipally from the sale of Aberdeen Journals on 2nd April, 2006.Since the period end, DMG Information has completed the acquisition ofGenscape, a US business providing information and publications on the powerindustry, for $130 million (‚£71 million).IFRSDMGT's IFRS 2005 unaudited interim and full year audited primary statements forthe year ended 2nd October, 2005, together with its new accounting policiesunder IFRS, are available in full on the Company's website, dmgt.co.uk. Aspreviously reported, the main differences are in respect of employment benefits(pensions), share-based payments, goodwill, dividends and deferred tax.DividendThe Board has declared an interim dividend of 4.05 pence per Ordinary `A'Ordinary Non-Voting share (2005 3.75 pence) which will be paid on 7th July,2006 to shareholders on the register at the close of business on 9th June,2006.The Viscount RothermereChairmanDaily Mail and General Trust plcConsolidated Income Statement Notes Unaudited Unaudited Audited Half year Half year Year ended ended 2nd ended April 2006 2nd October 3rd April 2005 ‚£m 2005 ‚£m ‚£m Continuing operations Revenue 2 1,083.0 1,060.5 2,136.3 Operating profit before 2 92.3 108.4 239.5restructuring and strategic review costs Restructuring and strategic 2 (16.3) - (13.9)review costs Group operating profit 2 76.0 108.4 225.6 Share of results of joint 3 1.7 2.3 (1.6)ventures and associates Total operating profit 77.7 110.7 224.0 Investment revenue 4 14.2 9.4 19.1 Other gains and losses 5 132.1 11.9 24.7 Finance costs 6 (39.2) (36.1) (70.3) Profit before tax 184.8 95.9 197.5 Tax 7 (30.7) (25.1) (42.1) Profit for the period from 154.1 70.8 155.4continuing operations Attributable to : Equity holders of the parent 150.9 67.5 142.1 Minority interests 3.2 3.3 13.3 154.1 70.8 155.4 Basic earnings per share 38.2p 17.0p 35.9p Diluted earnings per share 38.1p 17.0p 35.8p Daily Mail and General Trust plcConsolidated Statement of Recognised Income and Expense Unaudited Unaudited Audited 2nd April 3rd April 2nd October 2006 2005 2005 ‚£m ‚£m ‚£m Profit for the period 154.1 70.8 155.4 Foreign exchange translation (8.0) 12.8 11.9differences Actuarial gains on defined benefit 125.3 22.3 17.6pension schemes Fair value movements on available for (19.5) - -sale investments Put option arising on acquisition of (15.8) - -subsidiary Deferred tax on actuarial movement (37.5) (1.5) (7.2) Tax on other items recognised directly (10.3) (4.8) 4.8in equity Total recognised income and expense for 188.3 99.6 182.5the period Attributable to : Equity shareholders 183.7 93.1 168.6 Minority interests 4.6 6.5 13.9 188.3 99.6 182.5 Transition adjustment on adoption of (9.0) - -IAS 39 Shareholders'equity reconciliation Unaudited Unaudited Audited 2nd April 3rd April 2nd October 2006 2005 2005 ‚£m ‚£m ‚£m Total recognised income and expense for 188.3 99.6 182.5the period Dividend (32.6) (30.0) (44.9) Dividend paid to minority (8.7) (4.8) (5.7) Issue of share capital 1.3 0.5 1.0 Increase in shares held in treasury 2.2 (7.3) (14.4) Reclassification of share option scheme - - 50.8 Other movements on share option schemes (23.8) 2.4 5.5 Movement in minorities 4.1 2.5 (4.0) 130.8 62.9 170.8 Shareholders equity at the beginning of 355.9 185.1 185.1the period Transition adjustment on adoption of (9.0) - -IAS 39 Shareholders'equity at the end of the 477.7 248.0 355.9period Daily Mail and General Trust plcConsolidated Cash Flow Statement Notes Unaudited Unaudited Audited 2nd April 3rd April 2nd October 2006 2005 2005 ‚£m ‚£m ‚£m Group operating profit 76.0 108.4 225.6 Adjustments for: Share based payments 5.4 4.5 10.6 Depreciation 33.3 33.9 71.1 Amortisation of intangible assets 21.4 11.1 28.7 Impairment of goodwill 7.8 1.1 5.3 (Profit)/loss on disposal of fixed (0.7) - 0.3assets Operating cash flows before 143.2 159.0 341.6movements in working capital Decrease / (increase) in 3.2 (0.4) (1.9)inventories (Increase) / decrease in trade and 1.6 7.2 (38.0)other receivables (Decrease) / increase in trade and (11.6) (7.4) 57.1other payables Cash generated by operations 136.4 158.4 358.8 Taxation paid (11.1) (8.4) (44.6) Taxation inflow 2.6 1.4 9.0 Net cash from operating activities 127.9 151.4 323.2 Cash flows from investing activities Interest received 11.5 6.6 17.7 Interest paid (44.8) (37.7) (68.7) Dividends received from joint 4.6 3.9 6.8ventures and associates Interest element of finance lease - (0.9) (2.0)rental payments Dividends received from other 1.0 - 2.6investments Dividends paid to minority (8.7) (4.8) (5.7)shareholders Purchase of tangible fixed assets (51.2) (35.8) (94.5) Purchase of investments - - (0.4) Disposal of tangible fixed assets 4.5 4.1 6.2 Disposal of investments 1.2 6.6 16.0 Purchase of businesses (127.0) (60.1) (102.7) Investments in joint ventures and (10.3) (24.6) (29.7associates Disposal of businesses 125.5 8.2 15.7 Net cash used in investing (93.7) (134.5) (238.7)activities Financing activities Equity dividends paid (32.7) (30.0) (44.9) Issue of share capital 1.4 0.5 1.0 Issue of shares by Group companies 0.7 0.9 3.2to minority interests Purchase of own shares (9.4) (7.8) (15.4) Repurchase of bonds - - - Loan notes repaid (0.6) (1.9) (87.7) Increase in other borrowings 96.0 76.2 100.4 Treasury hedging activities 9.5 7.6 (3.3) Capital element of finance lease (14.2) (5.5) (5.4)rental payments Net cash from / (used in) financing 50.7 40.0 (52.1)activities Net increase in cash and cash 84.9 56.9 32.4equivalents Cash and cash equivalents at 124.2 91.4 91.4beginning of period Exchange gain / (loss) on cash and 0.3 (1.1) 0.4cash equivalents Cash and cash equivalents at end of 9 209.4 147.2 124.2period Daily Mail and General Trust plcConsolidated Balance Sheet Unaudited Unaudited Audited 2nd April 3rd April 2nd October 2006 2005 2005 ‚£m ‚£m ‚£m ASSETS Non-current assets Goodwill 625.1 521.4 560.1 Other intangible assets 379.5 326.2 356.1 Property, plant and equipment 499.8 496.7 500.8 Investments in associates and joint 93.3 163.5 91.2ventures Available for sale investments 70.3 20.4 91.4 Deferred tax assets 36.9 73.8 75.3 1,704.9 1,602.0 1,674.9 Current assets Inventories 23.3 24.4 26.6 Trade and other receivables 391.7 367.3 397.1 Trading investments 27.8 14.4 10.5 Cash and cash equivalents 209.4 147.2 124.2 Derivative financial assets 23.9 - - 676.1 553.3 558.4 Total assets 2,381.0 2,155.3 2,233.3 LIABILITIES Current liabilities Trade and other payables (554.7) (515.5) (573.6) Current tax payable (141.0) (140.5) (123.2) Long term borrowings (22.1) (108.1) (21.3) Derivative financial liabilities (7.7) - - Provisions (8.3) (4.6) (6.1) (733.8) (768.7) (724.2) Non-current liabilities Financial liabilities (1,019.9) (880.3) (908.6) Pension benefit obligations (59.0) (194.9) (176.3) Provisions (4.4) (7.7) (4.5) Deferred tax liabilities (86.2) (55.7) (63.8) (1,169.5) (1,138.6) (1,153.2) Total liabilities (1,903.3) (1,907.3) (1,877.4) Net assets 477.7 248.0 355.9 SHAREHOLDERS' EQUITY Capital and Reserves Called up share capital 50.2 50.2 50.2 Share premium account 9.6 7.8 8.3 Share capital 59.8 58.0 58.5 Revaluation reserve 69.4 71.1 71.1 Shares held in treasury (40.0) (33.5) (40.0) Hedging reserve (2.2) - - Translation reserve (22.8) (5.8) 19.1 Retained earnings 413.5 158.2 247.2 Equity Shareholders' funds 477.7 248.0 355.9Approved by the Board of Directors on 24th May, 2006.NOTES1. Basis of preparationDMGT has historically prepared its audited annual accounts and unauditedinterim results in accordance with U.K. generally accepted accounting practice(UK GAAP). Following European regulation issued in 2002, the Group will nowpresent its Annual report and accounts in accordance with InternationalReporting Standards (IFRS).The IFRS information for the year ended 2nd October, 2005 is a restatement ofinformation extracted from the statutory financial statements prepared under UKGAAP on the historical cost basis. Those statutory financial statements werefiled with the Registrar of Companies. The auditors' report on those accountswas unqualified and did not contain statements under section 237(2) or 237 (3)of the Companies Act 1985. The restated IFRS information provided for the yearended 2nd October, 2005 does not constitute statutory accounts within themeaning of section 240 of the Companies Act 1985. However, they are anticipatedto form the comparative period statutory accounts for the year ending 1stOctober 2006, the Group's first Annual Report to be prepared in accordance withIFRS. The financial information for the six months ended 2nd April, 2006 hasbeen the subject of an independent review by the auditors.The unaudited interim results for the six months ended 3rd April 2005 and 2ndApril 2006 have been prepared by the Group using its best knowledge of theexpected IFRS and accounting policies that will be applied when the Groupprepares its first set of IFRS financial statements for the year ending 1stOctober, 2006. There is, however, a possibility that some changes to thesepolicies will be necessary when preparing the full annual financial statementsas the Interim Consolidated Financial Statements have been prepared usingexpected IFRS that is anticipated to be applicable and adopted for use in theEU, which is not known with certainty at the time of preparing this InterimFinancial Information. Therefore, until such time, the possibility that theopening balance sheet and the interim IFRS financial information presented mayrequire amendment cannot be excluded.IFRS 1 First-time Adoption of International Financial Reporting Standardspermits companies adopting IFRS for the first time to take some exemptions fromthe full requirements of IFRS and also certain elections in the transitionperiod. The exemptions and elections which the Group has taken advantage of areshown in the Group's Annual Report and Accounts for the year ended 2nd October,2005 and are available on the Group's website www.dmgt.co.uk. Also available inthe IFRS comparative 2005 statements are full details of the Group's newaccounting policies.2. Segmental analysisAnalysis of revenue by business segment Unaudited Unaudited Audited Half year Half year Year ended ended ended 2nd October 2nd April 3rd April 2005 2006 2005 ‚£m ‚£m ‚£m National newspapers and related 459.2 487.9 940.7activities Regional newspapers and related 246.9 257.0 520.1activities Business to business information 154.4 122.2 294.6and careers Euromoney Institutional Investor 103.1 87.5 194.9 Exhibitions and related 99.8 90.0 152.1activities Broadcasting 19.6 15.9 33.9 Revenue - continuing operations 1,083.0 1,060.5 2,136.3Analysis of revenue by geographic origin Unaudited Unaudited Audited Half year Half year Year ended ended ended 2nd October 2nd April 3rd April 2005 2006 2005 ‚£m ‚£m ‚£m UK 809.3 841.4 1,659.9 Rest of Europe 32.1 26.7 55.4 North America 176.9 145.1 312.4 Australia 39.7 34.0 81.6 Rest of the World 25.0 13.3 27.0 Revenue - continuing operations 1,083.0 1,060.5 2,136.3Revenue of regional newspapers and related activities excludes intra-grouprevenue of ‚£8.8 million (2005 ‚£10.0 million).Following internal reorganisation to manage all of the Group's national brandstogether, revenue from National newspapers has been restated to includeTelevision of ‚£25.2 million (2005 ‚£30.2 million), which was previously reportedunder Broadcasting.Revenue of business to business information and careers comprises ‚£103.9million (2005 ‚£78.0 million) from business to business information and ‚£50.5million (2005 ‚£44.2 million) from careers.Analysis of profit from operations before restructuring and strategic review costs, amortisation and impairment charges, by business segment Unaudited Unaudited Audited Half year Half year Year ended ended ended 2nd October 2nd April 3rd April 2005 2006 2005 ‚£m ‚£m ‚£m National newspapers and related 39.1 44.0 90.1activities Regional newspapers and related 39.1 39.9 97.3activities Business to business information 24.1 14.2 44.5and careers Euromoney Institutional Investor 15.0 14.9 38.1 Exhibitions and related 17.0 16.7 24.1activities Broadcasting (1.9) 0.7 (0.4) Unallocated central costs (10.9) (10.5) (20.2) Less: restructuring and 121.5 119.9 273.5strategic review costs (16.3) - (13.9)Less: amortisation of intangible assets (21.4) (11.1) (28.7) Less: impairment of intangible (7.8) (0.4) (5.3)assets Group operating profit 76.0 108.4 225.6Operating profits of national newspapers have been restated to include a lossfrom Television of ‚£1.3 million (2005 ‚£0.8 million), which was previouslyreported under Broadcasting.Operating profits of business to business information and careers comprised ‚£29.2 million (2005 ‚£19.2 million) from business to business information and aloss of ‚£3.2 million (2005 loss of ‚£3.4 million) from careers, offset byunallocated central costs of ‚£1.9 million (2005 ‚£1.6 million).Profit from operations is analysed further by segment as follows:Analysis of profit from operations after restructuring and strategic review costs, amortisation and impairment charges, by business segment Unaudited Unaudited Audited Half year Half year Year ended ended ended 2nd October 2nd April 3rd April 2005 2006 2005 ‚£m ‚£m ‚£m National newspapers and related 23.4 42.3 80.7activities Regional newspapers and related 20.4 36.0 75.5activities Business to business information 21.9 13.5 40.9and careers Euromoney Institutional Investor 14.0 13.4 36.0 Exhibitions and related 14.6 15.7 19.9activities Broadcasting (7.4) (2.0) (7.2) Unallocated central costs (10.9) (10.5) (20.2) Group operating profit 76.0 108.4 225.63. Share of results of joint ventures and associates Unaudited Unaudited Audited Half year Half year Year ended ended ended 2nd October 2nd April 3rd April 2005 2006 2005 ‚£m ‚£m ‚£m Share of results of joint 1.0 0.5 1.0ventures Share of results of associates 1.2 3.2 4.1 Before amortisation and 2.2 3.7 5.1impairment of intangible assets Share of amortisation of (0.5) (1.4) (2.1)intangible assets of joint ventures and associates Impairment of intangible assets - - (2.5)of associates Amortisation of intangible - - (2.1)assets of joint ventures and associates 1.7 2.3 (1.6)4. Investment revenue Unaudited Unaudited Audited Half year Half year Year ended ended ended 2nd April 3rd April 2nd October 2006 2005 2005 ‚£m ‚£m ‚£m Reuters Group plc - - 0.8 GCap Media plc 0.7 - 1.4 The Press Association Limited - - 0.4 Interest receivable from 12.4 6.7 13.1short-term deposits Other investment income 1.1 2.7 3.4 14.2 9.4 19.1 5. Other gains and losses Unaudited Unaudited Audited Half year Half year Year ended ended ended 2nd April 3rd April 2nd October 2006 2005 2005 ‚£m ‚£m ‚£m Profit on sale of fixed asset - - 9.9investments Profit on sale of tangible fixed (0.2) 4.5 1.0assets Defined benefit pension scheme 10.0 4.7 9.9finance income Amounts written off investments (0.2) (0.1) (2.5) Profit on sale of businesses 122.5 2.8 0.1 Profit on sale of associates and - - 7.0joint ventures Share of associates' loss on - - (0.7)sale of businesses 132.1 11.9 24.7The profit on sale of businesses mainly comprises the profit on sale ofAberdeen Journals Limited.The gain on sale of fixed asset investments in the prior period was on disposalof shares in Reuters Group plc.6. Finance costs Unaudited Unaudited Audited Half year Half year Year ended ended ended 2nd April 3rd April 2nd October 2006 2005 2005 ‚£m ‚£m ‚£m Interest payable on loans and (38.1) (33.6) (65.0)bonds Interest payable on finance - (0.9) (2.0)leases (38.1) (34.5) (67.0) Change in fair value of 0.7 - -derivatives Finance charge on discounting of (1.8) (1.6) (3.3)deferred consideration (39.2) (36.1) (70.3)7. Taxation chargeThe tax charge for the period amounted to ‚£30.7 million (2005 ‚£25.1 million).The adjusted tax on profits before amortisation and impairment of intangibleassets, restructuring costs and significant non-recurring or prior year items,amounted to ‚£34.7 million (2005 ‚£29.0 million), and the resulting rate is 31.9%(2005 28.5%).8. Adjusted earnings per shareAdjusted earnings per share are calculated on profit before amortisation andimpairment of intangible assets and restructuring and strategic review costs,after charging the taxation and minority interests associated with thoseprofits, of ‚£70.5 million (2005 ‚£68.9 million), as set out below, and on theweighted average number of ordinary shares in issue during the period. Theweighted average number of shares amounted to 395.4 million (2005 396.6million). As in previous years, adjusted earnings per share have been disclosedsince the Directors consider that this alternative measure gives a morecomparable indication of the Group's underlying trading performance.Adjusted profit (before amortisation and impairment of intangible assets andrestructuring and strategic review costs)0.72.5 Unaudited Unaudited Audited Half year Half year Year Ended ended ended 2nd April 3rd April 2nd October 2006 2005 2005 ‚£m ‚£m ‚£m Profit before tax 184.8 95.9 197.5 Add back: Amortisation of intangible assets in 21.9 12.5 32.9Group operating profit and in joint ventures and associates Impairment of intangible assets in 7.8 0.4 7.8Group and in associates Restructuring and strategic review 16.3 - 13.9costs Loss / (profit) on sale of fixed assets 0.2 (4.5) (10.9) Profit on disposal of businesses (122.5) (2.8) (0.1) Profit on sale of associates and joint - - (7.0)ventures Share of associates' loss on sale of - - businesses Amounts written off investments 0.2 0.1 Profit before amortisation and 108.7 101.6 237.3impairment of intangible assets, restructuring and strategic review costs and taxation Adjusted taxation charge (34.7) (29.0) (57.1) Interest of minority shareholders (3.5) (3.7) (13.9) Profit before amortisation and 70.5 68.9 166.3impairment of intangible assets, restructuring and strategic review costs, after taxation and minority interests Adjusted earnings per share 17.8 p 17.4 p 42.0 p9. Analysis of net debt Unaudited Unaudited Audited Half year Half year Year ended ended ended 2nd April 3rd April 2nd October 2006 2005 2005 ‚£m ‚£m ‚£m Net debt at start (767.0) (779.8) (779.8) Cash flow 3.6 (12.2) 25.4 Issued on acquisition of - (1.9) (1.9)subsidiaries Loan notes issued on disposal - - (0.1) Foreign exchange movements (2.5) 6.4 (11.1) Other non-cash movements 0.4 (0.2) 0.5 Net debt at period end (765.5) (787.7) (767.0) Net debt analysed as: Cash and cash equivalents 209.4 147.3 124.2 Bank overdrafts (0.4) (0.9) (0.2) Debt due within one year (27.3) (12.4) (14.5) Bonds (656.6) (745.0) (656.9) Loans (290.6) (162.6) (205.3) Finance obligations - (14.1) (14.3) Net debt at period end (765.5) (787.7) (767.0) 10. Copies of the Interim Report are being posted to shareholders on or around16th June, 2006 and will be available thereafter from the Secretary, Daily Mailand General Trust plc, Northcliffe House, 2 Derry Street, London, W8 5TT, orelectronically from the Company's web site at www.dmgt.co.uk.Highlights of this announcement will be advertised on 25th May, 2006 in theEvening Standard, on 26th May, 2006 in the Daily Mail, Metro, Western MorningNews and the Western Daily Press and on 28th May, 2006 in The Mail on Sunday. Press Release 25th May, 2006 .ENDDAILY MAIL & GENERAL TRUST PLCRelated Shares:
DMGT.L