16th Nov 2007 07:01
Norcros PLC16 November 2007 Norcros plc ("Norcros", the "Group" or the "Company") Interim Results for the 6 months to 30 September 2007 Norcros, the home consumer products group with operations primarily in the UKand South Africa, which was listed on the London Stock Exchange's main market on16 July 2007, today announces a strong set of interim results for the six monthsto 30 September 2007 with a significant increase in profit and cash generation. Highlights H1 2007 H1 2006 % changeRevenue £84.3 m £81.2 m +3.8Trading Profits* £9.2 m £8.0 m +15.0Profit before tax** £6.1 m*** £4.1 m +48.8Earnings per share** 6.23 p*** 7.40 p -15.8Net cash generated from operations £10.8 m £6.3 m +71.4 * Operating profit before exceptional costs and other operating income ** Pre-exceptionals *** Including the effects of the new capital structure • Strong growth in both UK and South Africa • Good performance across all three business segments • Net debt reduced by £68.4m to £44.5m following flotation • Trading profit margins increased to 10.9% from 9.9% • Interim dividend of 0.56p payable 11 January 2008 John Brown, Chairman, commented: "I am pleased to report that the Group has made good progress during the firstsix months of the year across all our business segments. We continue to investin both capital and revenue programmes to support the long term growth of thebusiness and the Board is confident that the initiatives already taken and thoseplanned for the second half of the year will reinforce the quality of thebusiness and that further progress will be made." 16 November 2007 ENQUIRIES Norcros plc Tel: 01625 547700Joe Matthews, Group Chief ExecutiveNick Kelsall, Group Finance Director Altium Tel: 0161 831 9133Phil AdamsMike Fletcher College Hill Tel: 020 7457 2020Mark GarrawayMatthew Gregorowski For further information please visit the Company website: www.norcros.com I am pleased to report that the Group has made good progress during the sixmonths to 30 September 2007, recording a significant increase in trading profitand profit before tax and exceptional items compared with the correspondingperiod in 2006. Results The Group reported an increase in revenue of 3.8% to £84.3m (2006: £81.2m).Thisresult reflects growth in all three geographical segments. Reported revenue wasadversely impacted by a weakening in the South African Rand to Sterling exchangerate. At constant exchange rates revenue increased by 7.4%. Group trading profits increased by 15.0% to £9.2m (2006: £8.0m) withimprovements across all three geographical areas. At constant exchange ratestrading profits increased by 17.9%. Trading profit margins increased to 10.9%from 9.9%. Group profit before tax and exceptional items increased by 48.8% to£6.1m (2006: £4.1m), reflecting the improvements in trading performance and thereduction in net finance costs from £4.4m to £3.3m. The latter is a result ofthe reduction in net borrowings following the listing of the Company's shares on16 July 2007 and the consequent refinancing of the previous debt facilities. Theexceptional charge of £3.8m in the period relates to the write off ofcapitalised costs relating to the previous debt facilities. Group profit beforetax was £2.3m (2006: £4.1m). Basic earnings per share before exceptional itemsdecreased to 6.23p (2006: 7.40p) reflecting the significant increase in thenumber of shares in issue following the listing. Financial On 16 July 2007 the Company's shares were admitted to the Official List of theUK Listing Authority and the London Stock Exchange's main market. 128,802,669ordinary shares were placed at 78p per share raising £100.5m in total, of which£72.0m (after expenses) was raised for the Company. These net proceeds wereapplied in reducing borrowings and repaying shareholder loans. Norcros remains focused on maximising operating cash flows and investing in thebusinesses for future growth. Net cash generated from operations in the periodwas £10.8m (2006: £6.3m) and investment in capital expenditure and acquisitionswas £6.6m (2006: £2.5m) including the balance of the consideration of £3.8mrelating to the acquisition of the freehold interests in 14 and the leaseholdinterests in 2 of the Tile Africa stores which were previously leased.Consequently, net borrowings reduced from £112.9m at 31 March 2007 to £44.5m at30 September 2007 with equity gearing of 39%. Dividend An interim dividend of 0.56p per share has been declared in respect of theperiod 16 July to 30 September 2007. The dividend is payable on 11 January 2008to shareholders on the register on 7 December 2007. The shares will be quotedex-dividend on 5 December 2007. Operating Review UK Total revenues in the UK businesses increased by 3.7% from £51.6m to £53.5m withan increase in trading profits of 7.8% from £6.4m to £6.9m. Each of the three UKbusinesses recorded an uplift in revenues and trading profit. At Triton, the market leading domestic shower operation, revenues grew by 3.8%with UK revenues increasing by 6.5%. The growth in the UK was partially offsetby a decline in Ireland, Triton's biggest export market, which largely accountedfor the overall reduction in export revenues of 6.0%. Triton recorded UK revenuegrowth in both the trade and retail channels. Volumes with national andindependent merchants were boosted by increased specification contracts. Tradingwith the DIY and home shopping retail accounts showed a strong increase. Tightcost management and selective sales price increases helped to offset input costpressures and sustain margins. Triton continues to invest significantly in newproduct development, marketing and promotional programmes including a TVsponsorship campaign in early September. Triton has retained its leadingposition in the electric shower market as well as growing its share in the mixermarket. In H & R Johnson, a leading UK manufacturer and supplier of ceramic tiles andtile adhesives, overall tile revenues increased by 2.9%. UK tile revenuesincreased by 8.4% reflecting strong growth in the DIY channel and continued goodprogress in the trade channel. As anticipated, this was partially offset by adecline in export tile revenues of 20.3% as the contract to supply the DubaiInternational Airport nears completion. The UK tile revenue growth reflects the benefits of the business's investment inhighly successful new product ranges and through specification gains in thecontract sector on the back of more focussed sales and marketing programmes andthe government's Decent Homes initiative. The success in the contract sector hasbeen supported by the launch of a new contract product range. Excluding the Middle East market, tile revenues in the export markets increasedby 13.4%, reflecting success in the USA following cost effective local stockingand in France where revenues have grown significantly following investment innew product ranges and point of sale merchandise. Margins improved over thecomparable period although this advance was limited by lower than expectedmanufacturing throughput. Action has been taken to improve manufacturing yieldand some modest capital investment made to reduce product cost and improveefficiency. In our recently established UK adhesives business, significant progress has beenmade in growing revenues and achieving a profitable platform. Revenues increasedby 32% whilst the business recorded its first monthly profit earlier this year.The core strategy of developing a Johnson Tile branded adhesive in the contractand house builder market is proving successful. At the design stage, architectsand specifiers are finding the integrated concept attractive and a keyinitiative is to focus on the contractors and fixers to ensure that thespecification is secured. Investment in an adhesive and grout manufacturingfacility at a cost of approximately £1.0m on the H & R Johnson tilemanufacturing site is progressing to plan with final commissioning anticipatedby Q1 next year. This will improve quality control, customer service andprofitability. South Africa Our South African operations have demonstrated strong progress with revenuesincreasing by 15.0% to £27.6m and trading profits increasing by 41.2% to £2.4mon a constant currency basis. Reported results show revenues and trading profitsincreasing by 3.0% and 26.3% respectively reflecting the translation impact ofthe South African Rand to Sterling exchange rate between the comparable periods.Trading profits included a £0.2m profit on disposal of the Roodeport retailstore following its closure. Our retail operation, Tile Africa, has made excellent progress with revenuegrowth on a constant currency basis of 16.9% resulting in a significant year onyear improvement in trading profit. Considerable work has been undertaken toimprove and expand the retail estate with four additional stores secured:Rivonia, a store with an innovative new format, was opened in August 2007;Paarden Island opened in October 07; and Witbank commenced trading earlier thismonth. A fourth store at Pomona is scheduled to be opened in March 2008. Inaddition in September 2007 we purchased the George store, which was previously afranchise operation, for a consideration of £0.25m. The improvement andexpansion of our retail estate is a priority and discussions are ongoing inrelation to other targeted sites. Simultaneously, we have upgraded three of ourexisting stores and plan to complete a further four upgrades in Q4 of thefinancial year. We have also invested in a new retail business informationsystem which will support the expansion and development of this operation. In Johnson Tiles, our tile manufacturing operation, constant currency revenuegrowth has been more modest at 4.5% reflecting disruption in trade with a numberof independent customers and delays in product development. In additionprofitability has been impacted by cost increases in energy and raw materials.Action has been taken to expedite the product development programme and increasethe flexibility of the plant to produce larger and high specification porcelaintiles to meet customer demand. TAL, our adhesive operation, has continued to build sales on the back of newproduct introductions. Total revenues, in constant currency, increased by 12.5%reflecting strong growth in the tile adhesive and industrial adhesive segmentswith more modest growth in the building products segment. In the industrialsegment TAL has been successful in achieving a strong market position in thepressure sensitive and hot melt adhesive areas, largely driven by in-housedeveloped technology. The recent commissioning of a new hot melt plant hassecured new business in the roofing insulation field. TAL produces a number ofscreeding and adhesive products for the soft flooring market and has recentlyintroduced its first pumpable self levelling screed product which has generatedconsiderable interest. Profits in TAL have been maintained in line withexpectations. Rest of the World Johnson Tiles, our wholly owned subsidiary in Australia selling tiles under theJohnson brand, has continued to make substantial progress following thereorganisation last year. Revenues on a constant currency basis increased by10.3% and on a reported basis by 14.3%. The business recorded a trading loss of£0.1m for the period compared with a loss of £0.3m in the comparable period lastyear and in the last two months of the period the business recorded a profit. Akey success has been the launch of the "Johnson Home Heating" product rangewhich in addition to having sales potential in its own right has facilitated thecross-selling of ceramic wall and floor tiles. Plans are also in place to launchthe first programmable heated towel rail following very positive customerreaction. Prospects We have made good progress across all our business segments in the first half ofthe year and we continue to invest in both capital and revenue programmes tosupport the long term growth of the business. Trading since the end of September has been in line with expectations.Notwithstanding the broader economic concerns regarding the UK housing marketand the slower rate of consumer spending in both the UK and South Africa, theBoard is confident that the initiatives already taken and those planned for thesecond half of the year will reinforce the quality of the business and thatfurther progress will be made. A copy of the Norcros interim accounts for the 6 months to 30 September isavailable on the Company's website www.norcros.com. John Brown Chairman 15 November 2007 Consolidated interim income statements Notes Six months to Six months to Year to 31 30 Sept 2007 30 Sept 2006 March 2007 (unaudited) (unaudited) £m £m £m Revenue 84.3 81.2 162.4 Operating profit 9.3 8.2 14.1Trading profit* 9.2 8.0 15.3Exceptional operating items 3 - - (1.5)Other operating income 0.1 0.2 0.3Operating profit 9.3 8.2 14.1Finance costs 5 (4.9) (6.1) (12.0)Exceptional write off of costs of raising 5 (3.8) - -previous debt financeFinance income 5 1.6 1.7 3.4Share of profit of associates 0.1 0.3 0.4 Profit before taxation 2.3 4.1 5.9 Taxation (0.4) (0.4) (1.0) Profit for the period attributable to 1.9 3.7 4.9equity shareholders Earnings per shareBasic 2.08p 7.40p 9.80pDiluted 2.07p 7.40p 9.80p * Trading profit is defined as operating profit before exceptional operatingitems and other operating income. Consolidated interim statements of recognised income and expense Six months to Six months to Year to 31 30 Sept 2007 30 Sept 2006 March 2007 (unaudited) (unaudited) £m £m £m Profit for the period 1.9 3.7 4.9Actuarial losses on pension (2.2) (1.2) (7.1)schemesForeign currency translation and 0.6 (6.1) (5.9)other adjustments Total recognised income and 0.3 (3.6) (8.1)expense for the periodattributable to equityshareholders Consolidated interim balance sheets As at Notes 30 Sept 2007 30 Sept 2006 31 March 2007 (unaudited) (unaudited) £m £m £m Non-current assetsGoodwill 22.2 22.0 22.0Investment in associates 4.3 4.1 4.1Financial assets 4.3 4.3 4.3Trade investments 4.4 4.4 4.4Property, plant and equipment 46.1 41.2 42.5Investment properties 5.8 5.8 5.8Deferred tax asset 1.1 1.7 1.5 88.2 83.5 84.6 Current assetsInventories 33. 8 27.9 30.8Trade and other receivables 33.2 31.5 32.3Derivative financial instruments 0.6 0.2 0.5Cash and cash equivalents 4.8 3.3 4.1 72.4 62.9 67.7 Current liabilitiesTrade and other payables (39.8) (32.8) (35.0)Current tax liabilities (0.6) (0.8 (0.8)Financial liabilities - borrowings 6 (1.9) (7.3) (5.8) (42.3) (40.9) (41.6) Net current assets 30.1 22.0 26.1 Total assets less current liabilities 118.3 105.5 110.7 Non-current liabilities:Financial liabilities - borrowings 6 47.4 72.8 75.3Shareholder loans - 34.3 35.9Other non current liabilities 1.8 1.9 2.1Provisions 12.3 8.2 13.6 61.5 117.2 126.9 Financed by:Ordinary share capital 7 14.9 0.1 0.1Share premium 8 63.4 5.5 5.5Retained earnings and other reserves 8 (21.5) (17.3) (21.8) Total shareholders' equity 56.8 (11.7) (16.2) 118.3 105.5 110.7 Consolidated interim cash flow statements Notes Six months to Six months to Year to 31 30 Sept 2007 30 Sept 2006 March 2007 (unaudited) (unaudited) £m £m £m Cash generated from operations 9 10.8 6.3 14.1Income taxes paid (0.2) (0.6) (1.3)Interest received 0.2 0.2 0.3Interest paid (3.7) (3.8) (6.9) Net cash generated from operating activities 7.1 2.1 6.2 Cash flows from investing activitiesAcquisition of businesses (0.2) - -Dividends from associates and trade investments 0.1 0.2 0.3Purchase of property, plant and equipment (6.4) (2.5) (6.2)Proceeds from sale of property, plant and 0.4 0.3 0.3equipment Net cash (used in) investing activities (6.1) (2.0) (5.6) Cash flows from financing activitiesRepayments of borrowings (126.0) (10.6) (12.6)Drawdown of borrowings 53.6 5.1 9.5Net cash received from issue of shares* 72.2 - - Net cash (used in) financing activities (0.2) (5.5) (3.1) Net increase/(decrease) in cash at bank and in 0.8 (5.4) (2.5)hand and bank overdraftsCash at bank and in hand and bank overdrafts at 2.1 5.1 5.1beginning of the periodExchange movements on cash and bank overdrafts - (0.6) (0.5) Cash at bank and in hand and bank overdrafts at 2.9 (0.9) 2.1end of period *Includes £72.0m generated from admission of the Company to the London StockExchange's main market and £0.2m from a previous sale of shares. Notes to the Accounts 1. Accounting policies The principal accounting policies applied in the preparation of this interimreport are included in the financial statements for the year ended 31 March 2007and in the prospectus dated 11 July 2007. These policies have been appliedconsistently to all periods presented, unless otherwise stated. The following new standards, amendments to standards or interpretations aremandatory for the first time for the financial year ending 31 March 2008. - IFRIC 11, IFRS 2 - Group and treasury share transactions. Thisinterpretation is not relevant for the group. - IFRIC 8, Scope of IFRS 2. This interpretation is not relevant for thegroup. - IFRIC 10,Interims and impairment. This interpretation has not had anyeffect on the timing or recognition if impairment losses. The following new standards, amendments to standards and interpretations havebeen issued but are not yet effective for the financial year ending 31 March2008, and have not been early adopted. - IFRIC 8, Operating segments. Basis of preparation This condensed consolidated financial information for the six months ended 30September 2007 has been prepared in accordance with the Disclosure andTransparency Rules of the Financial Services Authority and with IAS 34 "Interimfinancial reporting" as adopted by the European Union. The condensed consolidated financial report should be read in conjunction withthe Annual Report and Financial Statements for the year ended 31 March 2007,which have been prepared in accordance with IFRSs as adopted by the EuropeanUnion. This Annual Report was approved by the board on 10 July 2007 anddelivered to the registrar of Companies. The report of the auditors on theFinancial Statements was unqualified and did not contain any statement undersection 237 of the Companies Act 1985. Accounting estimates and judgements The preparation of condensed consolidated financial information requiredmanagement to make judgements, estimates and assumptions that affect theapplication of accounting policies and the reported amount of income, expense,assets and liabilities. The significant estimates and judgements made bymanagement were consistent with those applied to the consolidated financialstatements for the year ended 31 March 2007. 2. Segmental Reporting Six months to 30 September 2007 UK South Africa Rest of world Group £m £m £m £m Revenue 53.5 27.6 3.2 84.3Trading profit 6.9 2.4 (0.1) 9.2Other operating income - - 0.1 0.1Operating profit 6.9 2.4 - 9.3Finance costs (4.9)Exceptional write off of costs of raising (3.8) previous debt financeFinance income 1.6Share of profit of associates 0.1 Profit before taxation 2.3Taxation (0.4) Profit from continuing operations 1.9 Segment assets 109.4 45.2 6.0 160.6Unallocated assets 1 1.1 Total assets 161.7 Segment liabilities (41.3) (12.4) (1.3) (55.0)Unallocated liabilities 2 (49.9) Total liabilities (104.9) Capital expenditure 1.0 5.2 - 6.2 Depreciation 1.9 0.9 - 2.8 1 Unallocated assets include deferred tax assets. 2 Unallocated liabilities include borrowings and tax liabilities. 2. Segmental reporting continued Six months to 30 September 2006 UK South Africa Rest of Group world £m £m £m £m Revenue 51.6 26.8 2.8 81.2Trading profit 6.4 1.9 (0.3) 8.0Other operating income 0.2 0.2 Operating profit 6.4 1.9 (0.1) 8.2Finance costs (6.1)Finance income 1.7Share of profit of associates 0.3 Profit before taxation 4.1Taxation (0.4) Profit from continuing operations 3.7 Segment assets 106.4 32.9 5.4 144.7Unallocated assets 1.7 Total assets 146.4 Segment liabilities (30.8) (10.5) (1.6) (42.9)Unallocated liabilities (115.2) Total liabilities (158.1) Capital expenditure 1.9 0.2 - 2.1 Depreciation 1.8 0.8 0.1 2.7 1 Unallocated assets include deferred tax assets. 2 Unallocated liabilities include borrowings and tax liabilities 2. Segmental reporting continued Year to 31 March 2007 UK South Rest of Group Africa world £m £m £m £m Revenue 105.8 51.2 5.4 162.4 Trading profit 12.1 4.0 (0.8) 15.3Exceptional operating items (1.3) (0.2) (1.5)Other operating income - 0.3 0.3 Operating profit 10.8 4.0 (0.7) 14.1Finance costs (12.0)Finance income 3.4Share of profit of associates 0.4 Profit before taxation 5.9Taxation (1.0) Profit from continuing operations 4.9 Segment assets 110.3 35.6 4.9 150.8Unallocated assets 1 1.5 Total assets 152.3 Segment liabilities (40.6) (9.3) (0.8) (50.7)Unallocated liabilities 2 (117.8) Total liabilities (168.5) Capital expenditure 3.0 2.9 - 5.9 Depreciation 3.8 1.7 0.1 5.6 1 Unallocated assets include deferred tax assets 2 Unallocated liabilities include borrowings and tax liabilities. 3. Exceptional operating items Six months to 30 Six months to 30 Year to 31 Sept 2007 Sept 2006 March 2007 (unaudited) (unaudited) £m £m £mPast service pension credits - - 5.0Restructuring - - (0.1)Property provisions - - (6.0)Aborted transaction costs - - (0.4) - - (1.5) 4. Earnings per share Six months to 30 Six months to 30 Year to 31 Sept 2007 Sept 2006 March 2007 (unaudited) (unaudited) £m £m £m Profit for the period 1.9 3.7 4.9Exceptional items included in the above 3.8 - 1.5Earnings before exceptional items 5.7 3.7 6.4 Weighted average number of shares:For basic earnings per share 91,532,769 49,984,786 49,984,786Exercise of share options 348,308 - -For diluted earnings per share 91,881,077 49,984,786 49,984,786 Earnings per shareBasic 2.08p 7.40p 9.80pDiluted 2.07p 7.40p 9.80p Earnings per share before exceptional itemsBasic 6.23p 7.40p 12.80pDiluted 6.20p 7.40p 12.80p 5. Finance income and costs Six months to 30 Six months to 30 Year to Sept 2007 Sept 2006 31 March 2007 (unaudited) (unaudited) £m £m £mFinance costs: Interest payable on bank borrowings 3.1 3.4 6.9Interest payable on shareholder loans 1.1 1.6 3.2Amortisation of costs of raising debt finance 0.4 0.6 1.3Movement on fair value of derivative financial 0.1 0.3 0.2instrumentsDiscount on property lease provisions 0.2 0.2 0.4 Total finance costs 4.9 6.1 12.0 Finance income: Bank interest receivable (0.2) (0.2) (0.5)IAS 19 net finance income (1.2) (1.2) (2.4)Movement on fair value of derivative financial (0.2) (0.3) (0.5)instruments Total finance income (1.6) (1.7) (3.4) Finance costs - net 3.3 4.4 8.6 Exceptional write off of costs of raising 3.8 - -previous debt finance 6. Borrowings As at 30 Sept 30 Sept 31 March 2007 2006 2007 £m £m £mNon-currentBank borrowings (secured):Bank loans 47.9 76.4 78.4Less costs of raising finance (0.5) (3.6) (3.1) 47.4 72.8 75.3Shareholder Loans - 34.3 35.9 Total non-current 47.4 107.1 111.2 CurrentBank borrowings(secured):Bank overdrafts 1.9 4.2 2.0Bank loans - 4.3 4.9 1.9 8.5 6.9Less costs of raising finance - (1.2) (1.1) 1.9 7.3 5.8 Total borrowings 49.3 114.4 117.0 The fair value of bank loans equals their carrying amount, as they bear interestat floating rates. The fair value of shareholder loans is not materiallydifferent to their carrying value.The repayment terms of borrowings are as follows: As at 30 Sept 30 Sept 31 March 2007 2006 2007 £m £m £m Not later than one year 1.9 8.5 6.9Costs of raising finance - (1.2) (1.1) 1.9 7.3 5.8After more than one year:Later than one year and not later than two years - 5.2 6.0Later than two years and not later than five years 47.9 21.2 25.4Later than five years - 84.3 82.9Costs of raising finance (0.5) (3.6) (3.1) 47.4 107.1 111.2 Total borrowings 49.3 114.4 117.0 Bank borrowings are secured by the Group's assets. 7. Ordinary called up share capital As at 30 Sept 30 Sept 31 March 2007 2006 2007 £000 £000 £000 Authorised871,250 'A' ordinary shares of 1p each - 8 85,468,750 'B' ordinary shares of 1p each - 55 55200,000,000 ordinary shares of 10p each 20,000 - - 20,000 63 63Issued and fully paid600,000 'A' ordinary shares of 1p each - 6 65,250,000 'B' ordinary shares of 1p each - 52 52148,717,884 ordinary shares of 10p each 14,872 - - 14,872 58 58 8. Shareholders' funds and statement of changes in shareholders' equity (i) Six months to 30 September 2007 Ordinary share Share premium Translation Retained Total capital reserve losses £m £m £m £m £m At 1 March 2007 0.1 5.5 (3.6) (18.2) (16.2)Actuarial loss on pension - - - (2.2) (2.2)schemeProfit for the period - - - 1.9 1.9Issue of new shares 14.8 57.9 - - 72.7Exchange differences - - 0.6 - 0.6 At 30 September 2007 14.9 63.4 (3.0) (18.5) 56.8 (ii) Six months to 30 September 2006 Ordinary Share premium Translation Retained Total share capital reserve losses £m £m £m £m £m At 31 March 2006 0.1 5.5 2.3 (16.0) (8.1)Actuarial loss on pension scheme - - - (1.2) (1.2)Profit for the period - - - 3.7 3.7Exchange differences - - (6.1) - (6.1) At 30 September 2006 0.1 5.5 (3.8) (13.5) (11.7) (iii) Year to 31 March 2007 Ordinary Share Translation Retained Total share premium reserve losses capital £m £m £m £m £m At 31 March 2006 0.1 5.5 2.3 (16.0) (8.1)Actuarial loss on pension scheme - - - (7.1) (7.1)Profit for the period - - - 4.9 4.9Exchange differences - - (5.9) - (5.9) At 31 March 2007 0.1 5.5 (3.6) (18.2) (16.2) 9. Consolidated cash flow statements a) Cash generated from operations Six months to Six months to Year to 30 Sept 2007 30 Sept 2006 31 March 2007 (unaudited) (unaudited) £m £m £m Profit before taxation 2.3 4.1 5.9Adjustments for:Exceptional items included in the above - - 1.5Cash flows from exceptional items (1.5) (1.0) (2.1)Other operating income (0.1) (0.2) (0.3)Depreciation 2.8 2.7 5.6Lump sum pension contributions (1.0) - -(Profit)/Loss on disposal of property, plant (0.2) - -and equipmentFinance costs 4.9 6.1 12.0Exceptional write off of costs of raising 3.8 - -previous debt financeFinance income (1.6) (1.7) (3.4)Share of profit of associates (0.1) (0.3) (0.4)Exchange differences - (0.2) (0.2) Operating cash flows before movement in working 9.3 9.5 18.6capitalChanges in working capital:(Increase) in inventories (3.0) (3.0) (5.0)(Increase) in trade and other receivables (1.2) (2.0) (1.4)Increase in payables 5.7 1.8 1.9 Cash generated from operations 10.8 6.3 14.1 b) Outflow related to exceptional items This includes expenditure charged to exceptional provisions relating to businessrationalisation and restructuring including severance and other employee costs. c) Analysis of net debt Net cash Net debt Total £m £m £m At 1 April 2006 5.1 (116.1) (111.0)Cash flow (2.5) 3.1 0.6Other non cash movements - (4.5) (4.5)Exchange movement (0.5) 2.5 2.0 At 31 March 2007 2.1 (115.0) (112.9) At 1 April 2006 5.1 (116.1) (111.0)Cash flow (5.4) 5.5 0.1Other non cash movements - (2.3) (2.3)Exchange movement (0.6) 2.7 2.1At 30 September 2006 (0.9) (110.2) (111.1) At 1 April 2007 2.1 (115.0) (112.9)Cash flow 0.8 72.4 73.2Other non cash movements - (4.8) (4.8)Exchange movement - - - At 30 September 2007 2.9 (47.4) (44.5) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Norcros