18th Mar 2005 07:00
AGA Foodservice Group PLC18 March 2005 18th March 2005 FOR IMMEDIATE RELEASE AGA FOODSERVICE GROUP PLC 2004 PRELIMINARY RESULTS HIGHLIGHTS Full year to 31st December 2004 2004 2003 Total Total Increase £m £m %Turnover 435.0 392.4 10.9Total operating profit before goodwill amortisation 38.0 33.2 14.5Total operating profit 30.0 25.2 19.0Profit before tax and goodwill amortisation 38.6 35.9 7.5Profit before tax 30.6 27.9 9.7Basic earnings per share 18.4p 17.2p 7.0Basic earnings per share before goodwillamortisation 24.7p 23.3p 6.0Dividend per share 8.3p 7.2p 15.3Shareholders' funds 283.5 281.9Net cash 25.1 29.6 2004 Highlights: • Strong trading performance with operating profits up by 19%, organic growth of 11%.• Another record year for Aga and Rangemaster and a rebound in the US for Domain.• European foodservice operations strengthening, while the US continues to be patchy.• Dividend increase of 15% brings the 3-year increase to 66%. 2005 Outlook: • Steady trading at the start of 2005. The growing impact of new innovative products and international growth reduces exposure to any particular consumer spending cycle. Markets across the foodservice activities are improving and the Infinity Fryer is set to make a major impact.• Balance sheet strength available for acquisition and share buy-back programmes. "Our performance in 2004 was pleasing. We have the international marketpositions, products and distribution to make 2005 an impressive year for theGroup. The further significant dividend increase reflects the confidence in ourprospects." William McGrath Chief Executive Enquiries: William McGrath, Chief Executive 0207 404 5959 (today)Shaun Smith, Finance Director 0121 711 6015 (thereafter)Jonathan Glass (Brunswick) 0207 404 5959 Interviews with William McGrath, CEO and Stephen Rennie, COO in video/audio andtext will be available from 07:00 on 18 March 2005 on: www.agafoodservice.comand on www.cantos.com. Aga Foodservice Group plc 2004 Preliminary Statement CHAIRMAN'S AND CHIEF EXECUTIVE'S STATEMENTS 2004 was a good year for the Aga Foodservice Group. Our trading results werewell ahead of 2003 and our long term plan to be a world leader in premiumconsumer and commercial cookers and fridges was reflected in new productintroductions and extensions to our distribution structures. In 2005 we arelooking for further organic growth benefiting from the investments made inrecent years and from continuing with these investment programmes. Consumer Operations Our European consumer operations had an exciting year. Not only did bothAga-Rayburn and Rangemaster achieve further record performances but we increasedmaterially the number of product displays - the key to sales growth. Outside theUK there are now over 450 live Aga displays in place and nearly 1,000Rangemaster displays - increases of 70% and 130% respectively in the year. Withthe availability of our fridge ranges and the increasing importance of ourcookware offering, we have an impressive product range capable of supportingstand alone retail outlets outside the UK - either owned by us or our dealerpartners. We have achieved a key objective of becoming a business with aninternational outlook. In helping to achieve this, the Domain and Grange linksare significant. In particular, Domain on the US East Coast provides a homefurnishings base now clearly interlinked with our upscale appliance offering andhas helped shape our retail thinking. Domain itself saw a performance reboundfor its core activity with a 6% like-for-like sales increase in the fourthquarter. Taken overall, our consumer operations moved ahead well, particularly in Europe,with turnover of £241.4 million and operating profits before goodwillamortisation of £23.0 million compared to £204.6 million and £18.1 millionrespectively in 2003. This represented organic growth rates of 11.3% and 24.1%for turnover and operating profit respectively. Return on sales reached 9.5% andreturn on capital employed was 36.9%. Foodservice Operations 2004 was a far more encouraging year for our European foodservice operationsafter the lacklustre markets of the previous two years started to improve. Wesaw order intake move ahead steadily in the second half of 2004 in our bakeryand commercial markets. In addition, our products took us into new markets andprovided a broadened base on which to seek growth in 2005 and the years ahead. To direct our efforts we have created Aga Bakery to consolidate our bakeryinterests and be the primary driver into the supermarket and artisan bakerymarkets where we are by some distance the world leader. In its principal marketsof Europe and North America, Aga Bakery has a strong management structure totake its impressive product range to new and established customers. For our cooker and refrigeration operations, 2004 was encouraging, particularlyin Europe. We are making good progress with our Bongard and Pavaillerbusinesses, and using technology and branding that have worked well in France toroll out on an international basis to America and the UK. In North America themarket conditions prevented us from passing on cost increases and together withthe investment in taking European products to the US, we saw a reduction inmargins. We intend to make the Infinity Fryer a cornerstone of the foodserviceoperations during 2005. Employees The experienced and enterprising staff and management in our operations providea backbone to the Group and this is reflected in the results for the year. Wenow have a very international mix among our 5,500 employees, with 1,000employees based in the US and 700 in France. We are grateful for their growinginfluence and contribution to the Group as a whole. Strategic Progress Over the past four years, we have focused on creating a major internationalGroup that is a force in premium appliances for the domestic and commercialmarkets with Aga at its heart. The acquisitions we have made have created aformidable position for us and the research and development programmes continueto provide an array of innovative products to display in our expanded owned anddealer driven retail structures. It has been an exciting journey and thebenefits seen in 2004 are only an indication of what is achievable in the longerterm. Hence, we will continue to develop along our well-established lines. In foodservice, we believe we can create a sustainable competitive advantagethrough a focus on innovative products that not only cook well, but arethemselves efficient giving impetus to the environmental, efficiency and healthand safety concerns of our customers. Our sustained investment in research anddevelopment has given us our strongest ever product portfolio. Our financial position remains strong. We had net cash at the end of 2004 of£25.1 million. Total shareholder returns over the last four years have been 20%above the sector average. We are raising our total dividend from 7.2 pence to8.3 pence whilst retaining a net cash position which will be used to finance acontinuing acquisition programme and, as opportunities allow, to sustain ourshare buy-back programme. Prospects Strong marketing programmes continue to drive leads and sales in our consumeroperations. In foodservice, there are more major accounts looking for theproducts and ideas that we have to offer. We expect the current year to showfurther progress backed up by a continuation of the investment programmes wehave in place. 2005 is, therefore, a further year to which we look with confidence. V Cocker W B McGrathChairman Chief Executive 18th March 2005 OPERATIONAL REVIEW - 2004 PRELIMINARY RESULTS FOR AGA FOODSERVICE GROUP PLC Consumer Operations (Turnover £241.4 million and operating profits beforegoodwill amortisation £23.0 million) 2004 was a very good year for our consumer businesses, led by recordperformances at Aga-Rayburn and Rangemaster and by the success of our retailoutlets in the UK and beyond. Turnover reached £241.4 million and operatingprofits before goodwill amortisation were £23.0 million. Pleasingly the US addedto the strength in Europe. Domain operating profits before goodwill reboundedalthough not yet to 2002 levels and were $1.9 million up from $0.9 million in2003. Aga Ranges - now part of the US appliance axis including Northland-Marvel,the refrigeration business - whilst not yet profitable, should be so in 2005. The Group now has a formidable product offering in the upscale appliance sector- markets in which we are well-recognised as a leader, innovator and segmentcreator. This was highlighted by products launched in 2004. The 3-oven Aga andthe electric Aga, now available with 2 or 4 ovens, together accounted for over25% of sales of our heat storage cookers. The 90cm Rangemaster cookers - with 2full working ovens, a grill and 5 burners, have created a new market segment. Itnow accounts for 40% of Rangemaster cooker sales. We have our heartland andorigins in the UK but we now have an established presence - with our work tomeet national specifications and to have clear local distribution - in Europeand North America. This internationalisation was seen with Aga's conventionalcooking range, the Six:Four and the US version of the Rangemaster Elan doingparticularly well in the growing US range cooker market. Aga-Rayburn was, once again, able to move volumes and profits well ahead andwith the product and distribution platform in place, we continue to pursue theobjective of sales of 15,000 Aga branded cookers in 2006, up from 11,500 in 2004and 10,000 in 2003. The greatest progress in 2004 was made by Rangemaster which saw cooker volumesmove ahead by 15% to over 60,000 units. The product range is enabling us to takefurther market share in the UK where we have strong distribution structurescovering kitchen specialists alongside electrical wholesalers. Rangemaster whichonly broke even in 2001, before the focus on higher value added products, is nowa major profit contributor. Further, Rangemaster has rapidly established itselfas a hub within our consumer operations - it, for example, sources cast iron pansupports from Aga at Coalbrookdale and domestic refrigeration lines from Marveland Williams. Looking ahead, Rangemaster is ready to supply La Cornue, acquiredin August 2004, with a completely new range of products taking the business intoa new price point segment with considerable international potential. An exciting growth area exists in cookware which has become an importantcontributor for Aga-Rayburn. New ranges are now being introduced under theRangemaster, Falcon and La Cornue brands. Fired Earth saw revenues rise by 8% with the growth coming from the largerinspirational stores encompassing Aga shops. Grange's production rationalisationprogramme was successfully completed - profits rose and a number of productranges introduced including two ranges for Fired Earth, which will now beGrange's primary UK dealer. In the US, the Group saw a noteworthy improvement in overall returns driven bybetter trading for Domain and by a full year contribution from Northland-Marvelwhich started to show its full potential for the Group. Like-for-like sales forDomain were ahead by 6% in the final quarter, leaving like-for-like sales flatfor the year but 15% ahead taking into account the retail space added during2003. Increased sourcing from the Far East is now helping to improve margins.Further, Domain is proving successful at adding Group product to its overalloffering and was the second largest US Aga distributor in 2004. Marvel had agood year and the combination of product introductions and increased efficiencyleave it well placed moving into 2005. Foodservice Operations (Turnover £193.6 million and operating profits beforegoodwill amortisation £13.7 million) Our European foodservice operations benefited in 2004 as some major accountsmoved through their capital spending cycles. We have continued to develop ourstructures, operational frameworks and product ranges during the market's low points which leaves our business particularly well positioned to take advantageof the upturn. A major initiative for us has been the creation at the start of 2005 of AgaBakery which positions our international bakery businesses in a more integratedstructure with a more defined management framework. Management teams are in place to direct our European and North American businesses led by Yves Gerberand Iain Whyte respectively and managed from Strasbourg and New Jersey. Thesesteps facilitate marketing a broad product offering to key accounts and helps drive the implementation of an international manufacturing strategy. Given ourUK, North American and Far East manufacturing capabilities, following theacquisition of the minority interest in our China factory, there is scope to look more internationally at our procurement and manufacturing processes. AgaBakery incorporates Pavailler, our second major move into the French bakerymarket, which we made in the autumn of 2004. Together with Bongard, we areclearly the primary provider of ovens and fridges to the artisan market andhave the leading Europe-wide position in our markets. Our particular forte is in deck ovens which are used to make quality artisanbreads. Our range includes the Cervap oven from Bongard, which cooks usingradiated heat like an Aga, cyclothermic ovens from Pavailler and modular formatsfrom Mono in Wales. These ranges, backed by the widest overall range of ovens,mixers and related refrigeration equipment, provide a major competitiveadvantage, and the technology is also being rolled out to North America. We havean extremely strong niche position in this sector. In North America, Belshaw,the doughnut equipment manufacturer, had another strong year after a slowstart, with sales into supermarkets in Mexico for the first time achievingappreciable levels. Our objective is to build on our European leading positionby attracting new customers in the US where the interest in artisan breads andthe cafe bakery concept is growing rapidly. In 2004 our continental bakery operations performed well and we saw order levelssteadily improve through the second half of the year. Highlights includedwinning a Europe-wide contract for Tesco and new product lines for Sainsbury's, including photocakes. Overall, UK markets were weak. In the traditional foodservice markets, again after a slow start there weredistinct signs that the markets were improving. In the UK, Williams, inparticular, has seen good growth from major contracts such as for the newWembley Stadium and for pub markets. In commercial cooking, Falcon's marketsimproved, although slowly. The major initiative for Falcon is the InfinityFryer. The oil and energy savings; the output improvements; the in-builtfiltration and the improved food quality it offers are being recognised. Theleading US test house saw it as a new major force - as do the largeinternational Quick Service Restaurant chains that are running extended trialshaving found, in their test centres, that it meets their operating requirementsand brings substantial operating benefits. We expect 2005 to bring significantorders from across our spectrum of foodservice customers. The weakest feature of 2004 was our US refrigeration business, Victory, whichstruggled to pass on cost increases. We have taken decisive action to addressthis. At the start of 2005 we now have a strengthened position with buying groups, an enhanced sales team in place and price increases being achieved; theoutlook is better. Development, approval and sales team costs of takingEuropean products to the US have also been absorbed during the course of 2004. Taken overall foodservice saw turnover reach £193.6 million up from £185.7million and operating profits before goodwill amortisation were £13.7 millioncompared to £14.3 million. Financials In 2004 turnover once more increased significantly as we achieved organic growthin our major operations. Turnover of £435.0 million was 10.9% higher than in2003. Total operating profits before goodwill amortisation were also substantially ahead at £38.0 million, 14.5% higher than in the prior year andafter goodwill, at £30.0 million, up 19.0%. Profit before tax and aftergoodwill amortisation of £8.0 million - appearing for the last time before International Accounting Standards apply - were £30.6 million, 9.7% up on theprior year. The tax charge of £7.1 million was 23.2% of pre tax profits, 18.4% of profitsbefore tax and goodwill amortisation. The charge is expected to continue totrack at this rate in 2005 reflecting the evolving international structure ofthe Group and to remain below the UK standard rate. Earnings per share before goodwill amortisation were 24.7 pence (2003: 23.3pence) and were 18.4 pence (2003: 17.2 pence) after goodwill amortisation.Taking into account 4.0 million shares bought back during the year, the average number of shares in issue was 127.0 million and there are now 126.0 millionshares in issue. With earnings continuing to move ahead, the Board recommends a dividend of 8.3pence per share, a 15.3% increase. Over the four years since the Pipes businesswas sold, the dividend has been systematically increased and cumulatively is up 66%. Cash flow performance in the year was good. Trading capital increased lessrapidly relative to turnover and operating cash flow was in line with tradingprofits. We continued to invest in the businesses spending £14.6 million oncapital equipment, compared with £18.0 million in 2003. Depreciation was £7.9million. We also capitalised £2.8 million in development expenditure.Amortisation of capitalised development expenditure in the year was £0.8million. We also continued with our carefully paced acquisition programme, while largelyfocusing on the performance of existing businesses and raising returns frominvestments already made. We acquired La Cornue, the French premium cookerbusiness and Pavailler, the French bakery equipment manufacturer for anaggregate of £4.6 million in 2004. Over the last four years we have spent £166million on acquisitions. All the acquisitions are adding to our position andbring opportunities to other activities in the Group. As indicated in prioryears, the Group keeps the overall financial structure of the Group underreview. We expect to continue with our balanced approach of acquisitions andshare buy-backs as market opportunities allow. 2005 will see us move to IAS. There are some differences between the reportedfigures under UK GAAP and the new IAS standards. From the work to date the mostsignificant change relates to the Pension Scheme, which is large, in relation to the company but is among the better funded of UK company schemes. The latestactuarial work shows that the surplus in the scheme under SSAP 24 had increasedto £53.9 million at 31st December 2003. The latest values for FRS 17 purposes,which will be replaced by IAS 19, suggests a small Group deficit of £4.6 millionafter deferred tax. In 2005, the IAS 19 figures indicate there will be anegligible change to the profit and loss account. Following the move to IAS,net assets will be reduced by the Aga Scheme IAS 19 deficit and the SSAP 24pension prepayment already in the balance sheet. Under IFRS 3 goodwillamortisation of £8.0 million would be added back to profits and to the goodwill figure in the balance sheet. IAS 38 would require around £1 million ofcapitalised software costs to be transferred from fixed assets to intangibleassets. The dividend creditor of £7.3 million would be reversed out under IAS10. Our initial assessment estimates that the deferred tax liability woulddecrease by around £8 million. The estimated IFRS adjustments remain subject toaudit. We continue to have a strong financial position and have considerableflexibility. We remain cautious in our approach recognising the long termdevelopment opportunities for the businesses, but also the risks of moving toorapidly. Outlook Within the consumer operations the major growth drivers for the Group continueto perform steadily. The strategy has long been to achieve a balanced portfoliowhereby the growth rates achieved outside the UK average up and match theachievements in the UK in particular. Against this background the impetus ofDomain in its core business and in its connections with Aga is important. In foodservice the turnaround in refrigeration internationally is encouragingand the momentum now coming in cooking, driven by the fryer, is encouraging.Against this background we see 2005 as a year when the benefits of our strategicmoves will become clear. GROUP PROFIT AND LOSS ACCOUNT 2004 2003 £m £mTurnoverContinuing operations 427.9Acquisitions 7.1_______________________________________________________________________________Total continuing operations 435.0 390.3Discontinued operations - 2.1_______________________________________________________________________________Total turnover 435.0 392.4_______________________________________________________________________________ Operating profit_______________________________________________________________________________Continuing operating profit before goodwill amortisation 37.5 33.7Goodwill amortisation (8.0) (8.0)_______________________________________________________________________________ 29.5 25.7_______________________________________________________________________________Continuing operations 29.5 25.7Acquisitions - -_______________________________________________________________________________Total continuing operations 29.5 25.7Discontinued operations - (0.5)_______________________________________________________________________________Group operating profit 29.5 25.2Share of profit from associate 0.5 -_______________________________________________________________________________Total operating profit 30.0 25.2Disposal of businesses - 1.8_______________________________________________________________________________Profit before interest and tax 30.0 27.0Net interest receivable 0.6 0.9_______________________________________________________________________________Profit on ordinary activities before tax 30.6 27.9Tax on profit on ordinary activities (7.1) (5.6)_______________________________________________________________________________Profit on ordinary activities after tax 23.5 22.3Equity minority interests (0.1) (0.1)_______________________________________________________________________________Profit attributable to shareholders 23.4 22.2Dividends (10.4) (9.3)_______________________________________________________________________________Profit retained 13.0 12.9_______________________________________________________________________________ Earnings per share p p Basic 18.4 17.2 Diluted 18.3 17.1 Basic - before goodwill amortisation 24.7 23.3_______________________________________________________________________________ GROUP BALANCE SHEETAs at 31st December 2004 2003 £m £mFixed assetsIntangible assets 136.8 140.7Tangible assets 78.6 73.2Investments 6.5 5.8_______________________________________________________________________________Total fixed assets 221.9 219.7_______________________________________________________________________________Current assetsStocks 70.2 61.3Debtors 107.2 102.7Cash at bank and in hand 49.8 52.0_______________________________________________________________________________Total current assets 227.2 216.0_______________________________________________________________________________Creditors - amounts falling due within one yearOperating creditors (102.6) (88.9)Borrowings (23.1) (2.2)Tax and dividends payable (9.4) (9.5)_______________________________________________________________________________Total amounts falling due within one year (135.1) (100.6)_______________________________________________________________________________Net current assets 92.1 115.4_______________________________________________________________________________Total assets less current liabilities 314.0 335.1 Creditors - amounts falling due after more than one yearCreditors (0.1) (2.2)Borrowings (1.6) (20.2)Provisions for liabilities and charges (28.6) (30.4)_______________________________________________________________________________Total net assets employed 283.7 282.3_______________________________________________________________________________Capital and reservesCalled up share capital 31.5 32.4Share premium account 60.9 59.9Revaluation reserve 2.1 2.4Capital redemption reserve 36.0 35.0Profit and loss account 153.0 152.2_______________________________________________________________________________Total shareholders' funds 283.5 281.9Equity minority interests 0.2 0.4_______________________________________________________________________________Total funds 283.7 282.3_______________________________________________________________________________ GROUP CASH FLOW STATEMENT Year to 31st December 2004 2003 £m £m Net cash inflow from operating activities 32.9 23.9Net returns on investments and servicing of finance 0.6 0.9Tax paid (5.5) (5.2)Net capital expenditure and product development (9.6) (20.5)Cash outflow for acquisitions (4.6) (16.1)Equity dividends paid (9.6) (8.1)_______________________________________________________________________________Net cash inflow / (outflow) before financing 4.2 (25.1) Financing- issue of ordinary share capital 1.1 0.1- loan to associated undertaking (0.3) -- purchase of own shares (9.4) -- increase / (decrease) in debt 2.4 (1.7)_______________________________________________________________________________Net financing outflow (6.2) (1.6)_______________________________________________________________________________Decrease in cash in the year (2.0) (26.7)_______________________________________________________________________________Reconciliation of net cash flow to movement in net cashDecrease in cash in the year (2.0) (26.7)(Increase) / decrease in debt (2.4) 1.7_______________________________________________________________________________Change in net cash resulting from cash flows (4.4) (25.0)Borrowings acquired with acquisitions - (0.4)Exchange adjustment (0.1) (0.5)_______________________________________________________________________________Decrease in net cash (4.5) (25.9)Opening net cash 29.6 55.5_______________________________________________________________________________Closing net cash 25.1 29.6_______________________________________________________________________________ Reconciliation of operating profit to net cash inflow from operating activities £m £m Operating profit 29.5 25.2Intangibles amortisation 8.8 8.3Depreciation 7.9 8.1Profit on disposal of fixed assets (1.3) (1.5)(Increase) / decrease in stocks (8.0) (7.5)(Increase) / decrease in debtors (10.5) 1.7Increase / (decrease) in creditors 9.8 (4.5)Increase / (decrease) in provisions (3.3) (5.9)_______________________________________________________________________________Net cash inflow from operating activities 32.9 23.9_______________________________________________________________________________ SUPPLEMENTARY STATEMENTS Year to 31st December 2004 2003 £m £mStatement of total recognised gains andlossesProfit attributable to shareholders 23.4 22.2Exchange adjustments on net investments (3.4) (3.2)_______________________________________________________________________________Total recognised gains and losses since last annual report 20.0 19.0_______________________________________________________________________________ 2004 2003 £m £mReconciliation of movements inshareholders' fundsTotal recognised gains and lossesrelating to the year 20.0 19.0Dividends (10.4) (9.3)New share capital subscribed - share premium 1.0 - - share capital 0.1 0.1Purchase own shares - ordinary shares (1.0) - - profit and loss account (9.4) - - capital redemption reserve 1.0 -Future share scheme issues 0.3 0.4_______________________________________________________________________________Net increase in shareholders' funds 1.6 10.2Shareholders' funds at 1st January 281.9 271.7_______________________________________________________________________________Shareholders' funds at 31st December 283.5 281.9_______________________________________________________________________________ SEGMENTAL ANALYSIS 2004 2003By business Net group Operating operating Operating Net operating Turnover profit assets Turnover profit assets £m £m £m £m £m £mUK & EuropeanConsumer 176.0 21.0 54.5 154.2 17.5 50.7US Consumer 65.4 2.0 7.8 50.4 0.6 9.3UK & EuropeanFoodservice 152.2 11.1 76.8 143.3 8.9 66.9US Foodservice 41.4 2.6 8.9 42.4 5.4 8.2_____________________________________________________________________________________Totalcontinuingoperations 435.0 36.7 148.0 390.3 32.4 135.1Other items - 0.8 - - 1.3 -Goodwill - (8.0) 131.1 - (8.0) 137.2Discontinuedoperations - - (9.7) 2.1 (0.5) (10.6)_____________________________________________________________________________________Total Group 435.0 29.5 269.4 392.4 25.2 261.7_____________________________________________________________________________________ Net operating assets exclude net debt, dividends payable and taxation balances.Goodwill amortisation on continuing operations relates to UK & European Consumer£1.6m (2003: £1.6m), US Consumer £0.8m (2003: £0.6m), UK & European Foodservice£4.4m (2003: £4.4m) and US Foodservice £1.2m (2003: £1.4m).UK & European Consumer includes acquisition turnover of £2.1m and UK & EuropeanFoodservice includes £5.0m. Acquisition operating profits were £nil in respectof both segments. 2004 2003By geographical Net origin Operating Operating Operating Net operating Turnover profit assets Turnover profit assets £m £m £m £m £m £mUnited Kingdom 259.8 28.2 112.6 241.7 24.9 105.2North America 106.8 4.6 15.3 92.8 5.5 14.7Europe 63.3 3.1 17.0 51.9 2.5 13.1Rest of World 5.1 1.6 3.1 3.9 0.8 2.1_____________________________________________________________________________________Totalcontinuingoperations 435.0 37.5 148.0 390.3 33.7 135.1Goodwill - (8.0) 131.1 - (8.0) 137.2Discontinuedoperations - - (9.7) 2.1 (0.5) (10.6)_____________________________________________________________________________________Total Group 435.0 29.5 269.4 392.4 25.2 261.7_____________________________________________________________________________________ Goodwill amortisation on continuing operations relates to United Kingdom £4.6m(2003: £4.6m), North America £2.0m (2003: £2.0m) and Europe £1.4m (2003: £1.4m).Other items relate entirely to North America (2003: United Kingdom). Turnover by geographical destination 2004 2003 £m % £m %United Kingdom 247.6 56.9 228.9 58.6North America 107.9 24.8 92.0 23.6Europe 63.6 14.6 61.6 15.8Rest of World 15.9 3.7 7.8 2.0__________________________________________________________________________Total continuing operations 435.0 100.0 390.3 100.0__________________________________________________________________________ EARNINGS PER SHARE Year to 31st December 2004 2003 £m £mEarningsProfit on ordinary activities after tax 23.5 22.3Minority interests (0.1) (0.1)Goodwill amortisation 8.0 8.0______________________________________________________________________________Earnings before goodwill amortisation 31.4 30.2______________________________________________________________________________Profit on ordinary activities after tax 23.5 22.3Minority interests (0.1) (0.1)______________________________________________________________________________Earnings - for basic and diluted EPS 23.4 22.2______________________________________________________________________________ Weighted average number of shares in issue million millionFor basic EPS calculation 127.0 129.4Dilutive effect of share options 0.6 0.5______________________________________________________________________________For diluted EPS calculation 127.6 129.9______________________________________________________________________________Earnings per share p p Basic 18.4 17.2Diluted 18.3 17.1Basic - before goodwill amortisation 24.7 23.3______________________________________________________________________________ NOTES 1. Dividends The Board has approved the payment of a final dividend amounting to 5.8p pershare (2003: 5.0p). An interim dividend of 2.5p per share (2003: 2.2p) hasalready been paid, making the total dividend for the year 8.3p per share (2003:7.2p). The final dividend will be paid on 3rd June 2005 to shareholdersregistered on 29th April 2005. 2. Exchange rates The profit and loss accounts of overseas subsidiaries are translated intosterling using average exchange rates, balance sheets are translated at year endrates. The main currencies and exchange rates are: Year to 31st December 2004 2003AverageEUR 1.47 1.45USD 1.83 1.64Year endEUR 1.41 1.42USD 1.92 1.79 NOTES (Continued) 3. Tax on profit on ordinary activities 2004 2003 £m £m United Kingdom corporation tax based on a rate of 30% (2002: 30%): Current tax on income for year 4.6 3.2Adjustments in respect of prior years (2.1) (0.3)______________________________________________________________________________Corporation tax 2.5 2.9 Deferred tax charge in year 2.1 1.0______________________________________________________________________________Total United Kingdom tax 4.6 3.9______________________________________________________________________________Overseas taxCurrent tax on income for year 2.6 1.2 Deferred tax (credit) / charge in the year (0.1) 0.5______________________________________________________________________________Total overseas tax 2.5 1.7______________________________________________________________________________Tax on profit on ordinary activities 7.1 5.6______________________________________________________________________________ FIRST HALF 2005 FINANCIAL CALENDAR Report and accounts posted 4th April 2005Record date for final ordinary dividend 29th April 2005Annual General Meeting 5th May 2005Final ordinary dividend payable 3 rd June 20052005 half year end 30th June 2005 The financial information set out in this announcement does not constitute theCompany's statutory accounts for the years ended 31st December 2004 and 2003 butis derived from those accounts. Statutory accounts for 2003 have been deliveredto the Registrar of Companies and those for 2004 will be delivered following theCompany's Annual General Meeting. The Company's auditor has reported on theseaccounts; its reports were unqualified and did not contain statements undersection 237(2) or (3) of the Companies Act 1985. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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