14th Sep 2006 07:02
Kingfisher PLC14 September 2006 KINGFISHER PLC CONSOLIDATED INCOME STATEMENT (UNAUDITED) For the half year ended 29 July 2006 Half year ended 29 July 2006 Half year ended 30 July 2005 (restated) Before Exceptional Total Before Exceptional Total exceptional items exceptional items£ millions Notes items (note 3) items (note 3)Continuing operations Revenue 2 4,349.1 - 4,349.1 4,079.4 - 4,079.4Cost of sales (2,860.0) - (2,860.0) (2,635.5) - (2,635.5)Gross profit 1,489.1 - 1,489.1 1,443.9 - 1,443.9Selling and distribution expenses (1,081.8) - (1,081.8) (993.3) - (993.3)Administrative expenses (216.9) - (216.9) (198.1) - (198.1)Other income 11.2 42.0 53.2 9.4 1.9 11.3Share of post tax results of joint 5.8 - 5.8 5.3 - 5.3ventures and associatesOperating profit 207.4 42.0 249.4 267.2 1.9 269.1 Total finance costs (36.9) - (36.9) (22.4) - (22.4)Total finance income 10.6 - 10.6 8.5 - 8.5Net finance costs 4 (26.3) - (26.3) (13.9) - (13.9) Profit before taxation 181.1 42.0 223.1 253.3 1.9 255.2 Income tax expense 6 (62.4) 6.4 (56.0) (86.5) - (86.5)Profit for the period 118.7 48.4 167.1 166.8 1.9 168.7 Attributable to:Equity shareholders 168.5 168.5Minority interest (1.4) 0.2 167.1 168.7Earnings per share 7Basic 7.2 7.2Diluted 7.2 7.2 Operating profit analysed as:Retail profit before central costs 231.5 41.6 273.1 288.0 1.9 289.9Central costs (18.2) 0.4 (17.8) (16.0) - (16.0)Amortisation of acquisition (0.1) - (0.1) - - -intangiblesShare of interest and taxation of (5.8) - (5.8) (4.8) - (4.8)joint ventures and associatesOperating profit 207.4 42.0 249.4 267.2 1.9 269.1 The proposed interim dividend for the period ended 29 July 2006 amounts to£90.8m (2005: £90.5m). Adjusted earnings per share information is provided in note 7. KINGFISHER PLC CONSOLIDATED INCOME STATEMENT (UNAUDITED) For the half year ended 29 July 2006 Year ended 28 January 2006 Before Exceptional Total exceptional items£ millions Notes items (note 3) Continuing operations Revenue 2 8,010.1 - 8,010.1Cost of sales (5,165.1) (7.9) (5,173.0)Gross profit 2,845.0 (7.9) 2,837.1Selling and distribution expenses (2,005.0) (181.0) (2,186.0)Administrative expenses (390.7) (26.4) (417.1)Other income 24.2 18.9 43.1Other expenses - (19.0) (19.0)Share of post tax results of joint ventures 11.4 - 11.4and associatesOperating profit 484.9 (215.4) 269.5 Total finance costs (51.6) - (51.6)Total finance income 13.9 - 13.9Net finance costs 4 (37.7) - (37.7) Profit before taxation 447.2 (215.4) 231.8 Income tax expense 6 (161.6) 68.8 (92.8)Profit for the year 285.6 (146.6) 139.0 Attributable to:Equity shareholders 139.5Minority interest (0.5) 139.0 Earnings per share 7Basic 6.0Diluted 6.0 Operating profit is analysed as:Retail profit before central costs 533.1 (219.1) 314.0Central costs (37.8) 3.7 (34.1)Amortisation of acquisition intangibles (0.1) - (0.1)Share of interest and taxation of joint (10.3) - (10.3)ventures and associatesOperating profit 484.9 (215.4) 269.5 KINGFISHER PLC CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE (UNAUDITED) For the half year ended 29 July 2006 Half year ended Half year ended Year ended 29 July 2006 30 July 2005 28 January 2006£ millions Notes (restated)Actuarial gains/(losses) on post employment 11 62.3 7.3 (45.6)benefitsCurrency translation differences 11 (15.0) 5.2 28.4Cash flow and net investment hedges- Gains and losses deferred in equity 11 (4.8) 7.6 7.5- Transferred to income statement in the period 11 (0.5) 2.0 (2.7)- Transferred to initial carrying amount of asset 11 (0.6) 1.3 3.2Tax on items taken directly to equity 11 (17.0) (4.2) 20.1Net income recognised directly in equity 24.4 19.2 10.9Profit for the financial period 167.1 168.7 139.0Total recognised income and expense for the period 191.5 187.9 149.9 Attributable to:Equity shareholders 193.1 187.6 149.4Minority interests (1.6) 0.3 0.5 191.5 187.9 149.9Effect of changes in accounting policy onadoption of IAS 39Attributable to:Equity shareholders - (2.2) (2.2)Minority interests - - - - (2.2) (2.2) KINGFISHER PLC CONSOLIDATED BALANCE SHEET (UNAUDITED) As at 29 July 2006 Half year ended Half year ended Year ended 29 July 2006 30 July 2005 28 January 2006£millions Notes (restated)Non-current assetsGoodwill 10 2,555.3 2,545.5 2,558.8Intangible assets 100.4 78.3 101.7Property, plant and equipment 3,223.9 3,262.4 3,265.0Investment property 14.2 20.3 15.3Investments accounted for using equity method 187.1 181.2 185.0Other receivables 45.3 77.9 51.7 6,126.2 6,165.6 6,177.5Current assetsInventories 1,474.1 1,421.8 1,355.3Trade and other receivables 560.4 434.0 570.6Available for sale financial assets 10.2 - -Current tax receivable 4.8 7.2 20.7Cash and cash equivalents 576.3 163.6 234.1 2,625.8 2,026.6 2,180.7Total assets 8,752.0 8,192.2 8,358.2 Current liabilitiesShort-term borrowings (249.8) (398.3) (346.8)Trade and other payables (2,054.5) (1,863.9) (1,750.8)Provisions (60.1) (2.3) (46.6)Current tax liabilities (62.2) (70.3) (77.0) (2,426.6) (2,334.8) (2,221.2)Net current assets/(liabilities) 199.2 (308.2) (40.5)Total assets less current liabilities 6,325.4 5,857.4 6,137.0 Non-current LiabilitiesLong term borrowings (1,480.5) (858.2) (1,255.5)Other payables (22.0) (1.0) (5.7)Provisions (83.2) (8.7) (111.4)Deferred income tax liabilities (217.7) (221.3) (204.4)Post employment benefits (157.0) (322.3) (239.6) (1,960.4) (1,411.5) (1,816.6)Total liabilities (4,387.0) (3,746.3) (4,037.8) Net assets 4,365.0 4,445.9 4,320.4 Capital and reservesShare capital 2,460.8 2,442.9 2,450.0Other reserves 11 1,897.6 1,979.0 1,861.0Minority interests 6.6 24.0 9.4 Total equity 4,365.0 4,445.9 4,320.4 Approved by the Board Duncan Tatton-Brown Director 13 September 2006 KINGFISHER PLC CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED) For the half year ended 29 July 2006 Half year ended 29 Half year ended 30 Year ended July 2006 July 2005 28 January 2006£ millions Notes (restated) Net cash flows from operating activities 8 427.4 339.0 304.1 Cash flows from investing activitiesPurchase of subsidiary and business undertakings 10 (0.7) (158.6) (167.5)Cash acquired on purchase of subsidiary - 6.5 6.5undertakingsPurchase of associates and joint ventures - (2.2) (2.2)Payments to acquire property, plant and equipment & (253.6) (236.1) (435.3)investment propertyPayments to acquire intangible assets (12.2) (20.4) (71.7)Receipts from sale of property, plant and equipment 210.2 17.2 111.2& investment propertyReceipts from sale of intangible assets - - 0.4Sale of available for sale financial assets 0.4 - 3.6Dividends received from joint ventures and 0.8 - 4.9associatesNet cash used in investing activities (55.1) (393.6) (550.1) Cash flows from financing activitiesInterest paid (27.2) (4.5) (39.3)Interest element of finance lease rental payments (2.6) (3.0) (6.6)Interest received 6.6 9.7 10.9Proceeds from issue of share capital 4.9 3.3 9.7Capital injections from minority interests - - 1.7Receipts from the sale of own shares 2.5 3.0 2.6Issue of Medium Term Notes - 20.6 373.5Issue of other fixed term debt 252.4 - -(Decrease)/increase in other loans (49.6) 213.2 150.5Capital element of finance lease rental payments (4.2) (5.6) (7.8)Increase in available for sale financial assets (10.1) - -Dividends paid to Group shareholders 5 (158.5) (157.9) (247.4)Dividends paid to minority interests (0.8) - -Net cash generated in financing activities 13.4 78.8 247.8 Net increase in cash and cash equivalents 385.7 24.2 1.8 Cash and cash equivalents at beginning of period 113.7 105.9 105.9Currency translation differences 2.6 1.7 6.0 Cash and cash equivalents at end of period 502.0 131.8 113.7 For the purposes of the cash flow statement, cash and cash equivalents areincluded net of overdrafts repayable on demand. These overdrafts are excludedfrom the definition of cash and cash equivalents disclosed on the balance sheet. KINGFISHER PLC NOTES TO THE INTERIM FINANCIAL REPORT (UNAUDITED) For the half year ended 29 July 2006 1. General information a) Basis of Preparation These unaudited consolidated financial statements for the six months ended 29July 2006 have been prepared in accordance with the listing rules of theFinancial Services Authority. Accounting policies have been consistentlyapplied in the interim financial report on the basis set out in the Group'sfinancial statements for the year ended 28 January 2006 on pages 50 to 54. As aresult, the comparatives at 30 July 2005 have been restated for both theclarification of IAS 21 and with regard to leases that contain predetermined,fixed minimum rental increases, as described below. The clarification of IAS 21 issued in December 2005 requires exchangedifferences arising on a monetary item which forms part of a reporting entity'snet investment in a foreign operation to be recognised initially in a separatecomponent of equity in the consolidated financial statements. This requirementapplies irrespective of whether the monetary item results from a transactionwith the parent or with any of its subsidiaries. As a result of thisclarification, gains and losses on intercompany balances previously recognisedin the income statement within net finance costs are no longer recognised in theincome statement but rather directly in reserves which offset the equal andopposite amount in reserve movements on consolidation. The impact of this changeis an increase in profit before tax of £5.4m for the half year ended 30 July2005 and a change in net assets of £nil at 30 July 2005. With regard to leases that contain predetermined, fixed minimum rentalincreases, the International Financial Reporting Interpretations Committee(IFRIC) clarified in the second half of the last financial year that it isnecessary to account for these leases on a straight-line basis over the life ofthe lease. Formerly, the Group accounted for these property lease rentals suchthat the increases were charged to the income statement in the year in whichthey arose. The impact of this change is a reduction in profit before tax of£1.0m for the half year ended 30 July 2005 and a reduction in net assets of£5.0m at 30 July 2005. In accordance with IFRS 3, adjustments have been made to the carrying value ofgoodwill at 30 July 2005 to reflect the finalisation of the provisional fairvalues relating to the acquisition of the OBI China business in the first halfof the last financial year. Further information is provided in note 10. b) Full year comparatives The half year results are unaudited and were approved by the Board of Directorson 13 September 2006. The results for the year ended 28 January 2006 are basedon full audited accounts which were filed with the Registrar of Companies and onwhich the auditors made a report under section 240 of the Companies Act 1985which does not contain a statement under sections 237 (2) or (3) of theCompanies Act 1985 and is unqualified. c) Use of adjusted measures Kingfisher believes that retail profit*, adjusted profit before tax, adjustedprofit after tax and adjusted earnings per share provide additional usefulinformation on underlying trends to shareholders. These measures are used byKingfisher for internal performance analysis and incentive compensationarrangements for employees. The terms 'retail profit', 'exceptional item' and 'adjusted' are not defined terms under IFRS and may therefore not be comparablewith similarly titled profit measures reported by other companies. It is notintended to be a substitute for, or superior to GAAP measurements of profit. Theseparate reporting of non-recurring exceptional items, which are presented asexceptional within their relevant consolidated income statement category, helpsprovide a better indication of the Group's underlying business performance. Theprincipal items that will be included as exceptional items are non trading itemsincluded in operating profit such as: • profits and losses on the disposal of subsidiaries, associates and investments which do not form part of the Group's trading activities; • gains and losses on the disposal of properties; and • the costs of significant restructuring and incremental acquisition integration costs. * Retail profit is defined as operating profit before central costs (the costsof the Corporate Centre), exceptional items, acquisition intangiblesamortisation and the share of joint venture and associate interest and tax. 2. Segmental analysis The Group's primary reporting segments are geographic, with the Group operatingin four main geographical areas, being the UK, France, Rest of Europe and Asia. The 'Rest of Europe' segment consists of B&Q Ireland, Castorama Poland,Castorama Italy, Castorama Russia, Brico Depot Spain, Koctas and Hornbach.Poland has been shown separately as it meets the reportable segment criteria asprescribed by IAS 14. The 'Asia' segment consists of B&Q China, B&Q South Koreaand B&Q Taiwan. The segment results for the half year ended 29 July 2006 are as follows: £ millions United France Poland Rest of Asia Total Kingdom EuropeExternal revenue 2,169.7 1,497.0 230.7 242.7 209.0 4,349.1 Segment result before joint ventures and associates 133.4 95.3 26.2 16.2 (9.7) 261.4Share of post tax results of joint ventures and - 0.3 - 3.4 2.1 5.8associatesTotal segment result 133.4 95.6 26.2 19.6 (7.6) 267.2Unallocated central costs (17.8)Operating profit 249.4Net finance costs (26.3)Profit before taxation 223.1Income tax expense (56.0)Profit for the period 167.1 The segment results for the half year ended 30 July 2005 are as follows: £ millions United France Poland Rest of Asia Total Kingdom EuropeExternal revenue 2,224.9 1,381.7 180.6 180.9 111.3 4,079.4 Segment result before joint ventures and associates 150.5 101.9 20.1 12.3 (5.0) 279.8Share of post tax results of joint ventures and - 0.7 - 2.0 2.6 5.3associatesTotal segment result 150.5 102.6 20.1 14.3 (2.4) 285.1Unallocated central costs (16.0)Operating profit 269.1Net finance costs (13.9)Profit before taxation 255.2Income tax expense (86.5)Profit for the period 168.7 The segment results for the year ended 28 January 2006 are as follows: £ millions United France Poland Rest of Asia Total Kingdom Europe External revenue 4,172.0 2,724.9 417.0 378.2 318.0 8,010.1 Segment result before joint ventures and associates 10.9 228.9 52.5 20.3 (20.4) 292.2Share of post tax results of joint ventures and - 0.3 - 5.5 5.6 11.4associatesTotal segment result 10.9 229.2 52.5 25.8 (14.8) 303.6Unallocated central costs (34.1)Operating profit 269.5Net finance costs (37.7)Profit before taxation 231.8Income tax expense (92.8)Profit for the year 139.0 The Group's revenues, although not highly seasonal in nature, do increase overthe Easter period and during the summer months leading to slightly higherrevenues being recognised in the first half of the year. 3. Exceptional items The following one-off items, as defined in note 1c), have been charged inarriving at profit before interest and taxation: Half year ended Half year ended Year ended£ millions 29 July 2006 30 July 2005 28 January 2006Included within cost of sales, selling & distribution andadministrative expenses:B&Q UK - reorganisation costs - - (205.3)OBI China - integration costs - - (10.0) - - (215.3)Included within other income:Profit on disposal of properties 41.6 1.9 15.3Profit on disposal of available for sale financial assets 0.4 - 3.6 42.0 1.9 18.9Included within other expenses:B&Q UK - financial services termination fee - - (19.0) - - (19.0) Total exceptional items 42.0 1.9 (215.4) A majority of the profit on disposal of properties in the current period arosein connection with the sale and leaseback of seven UK warehouse stores to TheBritish Land Company through the disposal of a subsidiary company. The Group also received further consideration of £0.4m in the current periodrelating to the disposal of its investment in improveline.com in the prior year. 4. Finance costs Half year ended 29 Half year ended 30 Year ended July 2006 July 2005 28 January 2006£ millions (restated) Bank and other interest payable 37.7 21.8 52.7Less amounts capitalised (0.7) (1.6) (3.3)Net interest charge on defined benefit schemes - 3.0 3.8Financing fair value remeasurements (2.7) (0.8) (1.6)Unwinding of discount on provisions 2.6 - -Total finance cost 36.9 22.4 51.6 Bank and other interest receivable (7.8) (8.5) (13.9)Net interest return on defined benefit schemes (2.8) - -Total finance income (10.6) (8.5) (13.9) Net finance costs 26.3 13.9 37.7 5. Dividends Half year ended Half year ended Year ended£ millions 29 July 2006 30 July 2005 28 January 2006Amounts recognised as distributions to equity holders in theperiod:Interim dividend for the year ended 28 January 2006 of 3.85pper share - - 89.5Final dividend for the year ended 28 January 2006 of 6.8p(2005: 6.8p) per share 158.5 159.7 159.7Dividend paid to Employee Share Ownership Plan Trust (ESOP)shares - (1.8) (1.8) 158.5 157.9 247.4Proposed interim dividend for the half year to 29 July 2006 of 3.85p per share 90.8 In accordance with IAS 10 "Events after the Balance Sheet Date", the interimdividend which has been approved by the Board is not included as a liability.Further details on the interim dividend can be found in note 13. 6. Income tax expense Half year ended Half year ended Year ended 29 July 2006 30 July 2005 28 January 2006£ millions (restated) Current tax:UK Corporation tax 16.9 22.5 (9.0)Foreign tax 42.8 37.5 87.1 59.7 60.0 78.1 Deferred tax (3.7) 26.5 14.7 Total income tax expense 56.0 86.5 92.8 The effective tax rate, before the impact of exceptional items and prior yearadjustments, for the interim period is 34.5% (2005: 34.1%) representing the bestestimate of the effective rate for the full financial year. The effective taxrate for the year ended 28 January 2006 was 34.4%. 7. Earnings per share Basic earnings per share is calculated by dividing the earnings attributable toordinary shareholders by the weighted average number of ordinary shares in issueduring the year, excluding those held in the ESOP which are treated ascancelled. For diluted earnings per share, the weighted average number of ordinary sharesin issue is adjusted to assume conversion of all dilutive potential ordinaryshares. These represent share options granted to employees where the exerciseprice is less than the average market price of the Company's shares during theperiod. The weighted average number of shares in issue during the period was 2,331.8million (2005: 2,324.2 million) and the diluted weighted average number ofshares in issue during the period was 2,338.9 million (2005: 2,334.5 million).For the year ended 28 January 2006, the weighted average number of shares inissue was 2,324.7 million and the diluted average number of shares in issue was2,334.9 million. Supplementary earnings per share figures are presented. These exclude theeffects of exceptional items (disclosed in note 3), financing fair valueremeasurements and amortisation of acquisition intangibles, to allow comparisonof underlying trading performance on a consistent basis. The calculation of basic and diluted earnings per share is based on the profiton ordinary activities, after taxation and minority interests of £168.5 million(2005: £168.5 million). For the year ended 28 January 2006, the profit onordinary activities after taxation and minority interests was £139.5 million. Half year ended Half year ended Year endedPence per share 29 July 2006 30 July 2005 28 January 2006 (restated)Basic earnings per share 7.2 7.2 6.0Effect of non-recurring costsExceptional items (1.8) (0.1) 9.3Tax impact arising on exceptional items (0.2) - (1.7)Financing fair value remeasurements (0.1) - (0.1)Reversal of prior year exceptional charge - - (1.2)Basic - adjusted earnings per share 5.1 7.1 12.3Diluted earnings per share 7.2 7.2 6.0Effect of non-recurring costsExceptional items (1.8) (0.1) 9.2Tax impact arising on exceptional items (0.2) - (1.7)Financing fair value remeasurements (0.1) - (0.1)Reversal of prior year exceptional charge - - (1.2)Diluted - adjusted earnings per share 5.1 7.1 12.2 8. Net cash flows from operating activities Reconciliation of operating profit to net cash flows from operating activities: Half year ended Half year ended Year ended 29 July 2006 30 July 2005 28 January 2006£ millions (restated) Group operating profit 249.4 269.1 269.5 Adjustments for:Depreciation and amortisation 95.3 86.5 181.8Impairment losses - - 47.6Share-based compensation charge 5.5 3.9 14.1Share of post tax results of joint ventures and associates (5.8) (5.3) (11.4)(Profit)/loss on disposal of property, plant and equipment (37.6) (0.4) 22.5Loss on disposal of intangible assets - - 2.0Profit on disposal of available for sale financial assets (0.4) - (3.6)Operating cash flows before movements in working capital 306.4 353.8 522.5 Movements in working capital (excluding the effects ofacquisitions and disposals of subsidiaries and exchangedifferences on consolidation):Increase in inventories (123.1) (90.2) (33.3)Decrease/(increase) in trade and other receivables 3.7 21.9 (97.3)Increase in trade and other payables 331.4 160.4 27.3(Decrease)/increase in post employment benefits (17.4) 0.9 (135.2)(Decrease)/increase in provisions (14.7) (6.8) 140.2 179.9 86.2 (98.3)Cash generated by operations 486.3 440.0 424.2Income taxes paid (58.9) (100.3) (120.1)Net cash flows from operating activities 427.4 339.7 304.1 9. Reconciliation of net debt Net debt incorporates the Group's borrowings (together with related fair valuemovements of derivatives on the debt), bank overdrafts and obligations underfinance leases, less cash and cash equivalents, as detailed below. Half year ended Half year ended Year ended 29 July 2006 30 July 2005 28 January 2006£ millions (restated)Cash and cash equivalents 576.3 163.6 234.1Current available for sales financial assets 10.2 - -Bank overdrafts (74.3) (31.8) (120.4)Bank loans (233.3) (392.4) (286.3)Medium Term Notes and other fixed term debt (1,350.7) (761.1) (1,123.7)Interest rate derivatives (excluding accrued interest) (10.1) 47.3 13.0Finance leases (71.8) (74.6) (71.9)Net debt at end of period (1,153.7) (1,049.0) (1,355.2) A reconciliation of the movement in net debt from the start to the end of theperiod is detailed below. Half year ended Half year ended Year ended 29 July 2006 30 July 2005 28 January 2006£ millions (restated)Net debt at start of period (1,355.2) (841.1) (841.1)Net increase in cash and cash equivalents 385.7 24.2 1.8Increase in available for sale financial assets 10.1 - -Amortisation of underwriting and issue costs of new debt (0.4) (0.3) (0.5)Increase in debt and lease financing (198.2) (228.2) (516.2)Currency translation differences and fair value 4.3 (3.6) 0.8adjustments on financial instrumentsNet debt at end of period (1,153.7) (1,049.0) (1,355.2) During the period, the Group issued US$466.5m (£252.4m) of fixed term debtthrough the US Private Placement market. The debt was issued in three tranches,with maturities of 7, 10 and 12 years, and the proceeds were swapped to sterlingat floating interest rates. 10. Acquisitions During the prior year the Group acquired OBI AG's Chinese home improvementoperations. Goodwill of approximately £76m was recognised at 30 July 2005 basedon provisional fair values and the purchase price being subject to thefinalisation of a completion accounts process. The purchase price andprovisional fair values were finalised during the second half of last financialyear. In accordance with IFRS 3, these adjustments have been appliedretrospectively resulting in a £1.8m reduction in goodwill at 30 July 2005. 11. Reserves The movements in the Group's consolidated reserves in the period to 29 July 2006and the comparative period are summarised as follows: £ millions Hedging Translation Non-distributable Retained Total reserve reserve reserves earningsBalance at 29 January 2006 1.2 92.1 159.0 1,608.7 1,861.0Actuarial gains on post employment benefits - - - 62.3 62.3Treasury shares disposed - - - (2.5) (2.5)Share-based compensation charge - - - 5.5 5.5Share based compensation - shares awarded - - - (0.8) (0.8)Currency translation differences - (15.0) - - (15.0)Gains and losses deferred in equity (4.8) - - - (4.8)Transferred to income statement in the period (0.5) - - - (0.5)Transferred to initial carrying amount of asset (0.6) - - - (0.6)Tax on items taken from/transferred to equity 1.8 - - (18.8) (17.0)Net gains and losses recognised directly in equity (4.1) (15.0) - 45.7 26.6Profit for the period - - - 168.5 168.5Total recognised income and expense for the period (4.1) (15.0) - 214.2 195.1Dividends - - - (158.5) (158.5)At 29 July 2006 (2.9) 77.1 159.0 1,664.4 1,897.6 Balance at 29 January 2005 - 56.1 159.0 1,734.6 1,949.7First time adoption adjustment in respect of IAS 39 (4.4) 0.7 - 1.5 (2.2)Restated balance at 30 January 2005 (4.4) 56.8 159.0 1,736.1 1,947.5Actuarial gains on post employment benefits - - - 7.3 7.3Treasury shares disposed - - - (2.2) (2.2)Share-based compensation charge - - - 3.9 3.9Currency translation differences - 5.2 - - 5.2Gains and losses deferred in equity 7.6 - - - 7.6Transferred to income statement in the period 2.0 - - - 2.0Transferred to initial carrying amount of asset 1.3 - - - 1.3Tax on items taken from/transferred to equity (3.3) 1.2 - (2.1) (4.2)Net gains and losses recognised directly in equity 7.6 6.4 - 6.9 20.9Profit for the period - - - 168.5 168.5Total recognised income and expense for the period 7.6 6.4 - 175.4 189.4Dividends - - - (157.9) (157.9)At 30 July 2005 3.2 63.2 159.0 1,753.6 1,979.0 12. Contingent liabilities Kingfisher plc has an obligation to provide a bank guarantee for £50.0m to theliquidators of Kingfisher International France Limited in the event thatKingfisher plc's credit rating falls below 'BBB'. The obligation arises from anindemnity provided in June 2003 as a result of the demerger of Kesa Electricals. In addition, the Group has arranged for certain bank guarantees to be providedto third parties in the ordinary course of business. 13. Shareholder information Copies of the results will be sent to shareholders on 10th October 2006 andadditional copies will be available from Kingfisher plc, 3 Sheldon Square,Paddington, London W2 6PX. The results can also be accessed on line at www.kingfisher.com as well as othershareholder information. Timetable of events 20th September 2006 Ex-dividend date for interim dividend22nd September 2006 Record date for interim dividend26th October 2006 Final date for receipt of Drip Mandate Forms by Registrars10th November 2006 Date for payment of interim cash dividend17th November 2006 Trade settlement date for the interim Drip dividend If shareholders wish to elect for the Dividend Reinvestment Plan (Drip), andhave not already done so, for the forthcoming interim dividend, a letter or DripMandate Form must be received by Kingfisher's Registrars, Computershare InvestorServices PLC, by 26th October 2006. Copies of the Terms and Conditions of the Drip can be obtained from Kingfisher'sRegistrars at the address below, by calling 0870 702 0129 or online atwww.kingfisher.com. Computershare Investor Services PLCPO Box 82The PavilionsBridgwater RoadBristolBS99 7NH INDEPENDENT REVIEW REPORT TO KINGFISHER PLC Introduction We have been instructed by the company to review the financial information forthe half year ended 29 July 2006 which comprises the consolidated incomestatement, consolidated statement of recognised income and expenditure,consolidated balance sheet, consolidated cash flow statement and the relatednotes. We have read the other information contained in the interim report andconsidered whether it contains any apparent misstatements or materialinconsistencies with the financial information. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. The Listing Rulesof the Financial Services Authority require that the accounting policies andpresentation applied to the interim figures should be consistent with thoseapplied in preparing the preceding annual accounts except where any changes, andthe reasons for them, are disclosed. This interim report has been prepared in accordance with the basis ofpreparation set out in Note 1. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board for use in the United Kingdom. A reviewconsists principally of making enquiries of group management and applyinganalytical procedures to the financial information and underlying financial dataand, based thereon, assessing whether the disclosed accounting policies havebeen applied. A review excludes audit procedures such as tests of controls andverification of assets, liabilities and transactions. It is substantially lessin scope than an audit and therefore provides a lower level of assurance.Accordingly we do not express an audit opinion on the financial information.This report, including the conclusion, has been prepared for and only for thecompany for the purpose of the Listing Rules of the Financial Services Authorityand for no other purpose. We do not, in producing this report, accept or assumeresponsibility for any other purpose or to any other person to whom this reportis shown or into whose hands it may come save where expressly agreed by ourprior consent in writing. Review conclusion On 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 ended29 July 2006. PricewaterhouseCoopers LLPChartered AccountantsLondon13 September 2006 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Kingfisher