16th Jun 2008 07:00
|
For Immediate Release |
16 June 2008 |
Majestic Wine PLC
PRELIMINARY RESULTS
Majestic Wine PLC ("Majestic"), the UK's largest wine warehouse chain, today announces its preliminary results for the 52 weeks ended 31 March 2008.
Comparatives for the prior year are based on a 53 week period.
Highlights
Profit before tax increased by 3.4% to £16.7m (2007: £16.2m).
Total sales up 3.1% to £197.0m (2007: £191.2m). On a comparable 52 week basis, total sales increased by 5.1%. Like for like UK sales up 2.4%.
Like for like UK sales up 0.8% in the first ten weeks to 9 June 2008. Since April, sales have been significantly stronger with like for like UK sales up 4.4% for the six weeks ending 9 June 2008.
Final dividend of 7.0p net per share, bringing the total dividend to 9.8p net per share, an increase of 15.3% on 2007.
Average bottle of wine purchased at Majestic is now £5.98 (2007: £5.75). Average spend per transaction has risen to £133 (2007: £123).
Good growth of fine wine, sales increased 25% on last year and now represent 4.2% of UK retail sales. 45 stores having a dedicated fine wine display area and plans to add a further 10 this year.
Continuing growth in internet sales, now representing 7.9% of UK retail sales.
Good progress made in increasing the rate of the store-opening programme with ten new stores opened during the financial year and three re-sites. Since the year end an additional store opening in Hereford gives us 145 stores in the UK. Several more new stores in advanced stages of negotiation.
Commenting on the results Tim How, Chief Executive of Majestic, said:
"Although the consumer environment is challenging, Majestic has a clearly differentiated retail model and is well positioned for future growth in this highly competitive market."
For further information, please contact:
|
Tim How |
|
|
Majestic Wine PLC |
Tel: 01923 298200 |
|
Tim Thompson / Nicola Cronk/ Susanna Gale |
Tel: 020 7466 5000 |
|
Buchanan Communications |
|
|
Jeff Keating |
Tel: 020 7866 5000 |
|
Landsbanki Securities |
High resolution images are available for the media to download free of charge from www.fovea.tv
Chairman's Statement
I am pleased to announce that the Group has achieved a further year of profit growth.
Profit before tax for the 52 weeks ended 31 March 2008 was £16.7m, an increase of 3.4%. Diluted earnings per share increased 6.6% to 17.7p. This enhanced growth in earnings per share is the result of the share buy-back programme.
Total sales were £197.0m which was £5.8m higher than the prior year (a 53 week period). On a comparable 52 week basis total sales increased 5.1% with like for like UK store sales growing 2.4%.
Dividend
We are recommending for approval by shareholders at the Annual General Meeting a final dividend of 7.0 pence net per share payable on 15 August 2008 to shareholders on the register on 18 July 2008. This brings the total dividend to 9.8 pence net per share, an increase of 15.3% on 2007.
Board Changes
Tim How, who has been Chief Executive for the last 19 years, will be retiring after the forthcoming Annual General Meeting. Majestic, which over those 19 years has delivered exceptional customer satisfaction, provided fulfilling work for thousands of people, and generated tremendous shareholder value, owes these achievements in large part to Tim's leadership. I would like to thank Tim for his invaluable contribution to Majestic.
Steve Lewis, our Chief Operating Officer for the past two years, will be appointed Chief Executive on Tim's retirement. Steve, aged 44, joined Majestic in 1985 as a graduate trainee manager. He became Retail Director in 1991 and was appointed to the Board in 1998.
People
As I have noted before, the quality of our people at Majestic is central to our success. In challenging markets, their job is far from easy but it is thanks to their unstinting efforts that we have been able to record these results.
Share Buy-Back Programme
We are continuing to buy back our shares in line with the programme announced previously. We have now purchased 4.4 million shares for an aggregate consideration of £14.9m. In executing this programme, the Board is committed to acting in the best interests of shareholders, taking account of all circumstances.
Current Trading
Like for like UK sales for the ten weeks from 1 April 2008 to 9 June 2008 were up 0.8%. The sales performance during this period has been affected by the above inflation increase in duty rates, which pulled forward some of April's sales into March. Since April, sales have been significantly stronger with like for like UK sales for the most recent six weeks ending 9 June 2008 up 4.4%.
Simon Burke
Chairman
16 June 2008
Review of Operations
We have seen strong growth in the average spend per transaction up 8.1% to £133. The average bottle price of still wine purchased at Majestic has increased to £5.98 from £5.75 last year. The total number of customers on our database who have made purchases in the last twelve months has grown 2.5% to 410,000.
We have seen good growth in still wine sales particularly from Bordeaux, Loire, Beaujolais, Italy, Argentina and New Zealand. In addition, Champagne and rosé sales continued to grow strongly.
Sales of fine wine (still wine priced at £20 and above) grew 25% and now represent 4.2% of UK retail sales. We have installed dedicated fine wine display areas in 45 stores and have plans to add a further 10 this year.
Sales to corporate customers represent around 25% of UK sales. We continue to see good opportunities to grow our corporate sales and have increased our regional sales team to fifteen. Their task is to source new restaurant, hotel and business accounts with all subsequent logistics handled by the nearest Majestic store. We also have a central London team of ten, based near King's Cross, that sell to larger corporate customers in the City and West End.
Marketing
Over the past two years we have developed a marketing strategy of long-term promotions interspersed by shorter term deep cut offers. Our customers tell us that they value regular contact so we have increased the frequency of communication. We now mail a mix of full price lists, flyers and postcards to support our various marketing campaigns.
Ecommerce
The value of orders placed via our website, majestic.co.uk, continues to grow strongly and now represents 7.9% of UK retail sales. We re-launched our website on a new platform in October 2007. The new site delivers an improved customer experience, has better search and navigation options and features content that emphasises our wine expertise. We recognise the opportunity that email gives us to communicate with our customers. We continue to gather their email addresses when they visit our stores and now have 190,000, up from 150,000 last year.
New Stores
We opened ten new stores during the year in Sonning, Aberdeen, Macclesfield, Sevenoaks, Brentford Lock, Stratford-upon-Avon, Bangor, Bishops Stortford, Carlisle and Westbury-on-Trym in Bristol. In addition, we re-sited our stores in Chester and St. Albans and relocated from Acocks Green to Shirley in Birmingham.
Since the year end we have re-sited our stores in Kingston and Worcester. This month we will open in Hereford giving us 145 stores trading in the UK. We are opening in Leatherhead and Summertown in Oxford by early autumn and have several more new stores at advanced stages of negotiation.
Wine and Beer World
We have seen trading conditions deteriorate as the market suffered further declines due in part to the appreciation of the Euro against Sterling. The result was that profit before tax declined £0.3m to £1.5m and like for like sales on a same currency basis declined 8.8%.
Customer Service
It is the quality of the customer service delivered by our staff that most notably differentiates Majestic from its competitors. We provide a comprehensive training programme focusing on customer service, operational management and wine knowledge. The training programme is widely regarded as being one of the best in the wine industry.
All our retail staff take the Wine and Spirit Education Trust's (WSET) Advanced Certificate after about six months in the Company. They are encouraged to further their wine education and 145 either hold or are studying for the two-year WSET Diploma. We were delighted that eight of our staff were awarded WSET "Awards of Excellence" in January 2008 for outstanding papers in their Advanced Certificate and Diploma examinations.
As well as the provision of excellent customer service we also offer free home delivery backed by a dedicated van at each of our stores, and a carry to car service for our store customers. We stock a wide range in depth at each location and customers can always taste a selection of wines at our in-store tasting counters.
We were very pleased that our strengths were recognised at the International Wine Challenge 2007 where we were awarded both the "High Street Chain of the Year" and the overall "UK Merchant of the Year" awards. The judges commended Majestic for "competitive prices, excellent customer service and impressive range".
Future Prospects
Although the consumer environment is challenging, Majestic has a clearly differentiated retail model and is well positioned for future growth in this highly competitive market.
Tim How
Chief Executive
16 June 2008
Group Income Statement
For the year ended 31 March 2008
|
52 weeks to |
53 weeks to |
||
|
31.03.08 |
02.04.07 |
||
|
Note |
£000 |
£000 |
|
|
Revenue |
197,026 |
191,193 |
|
|
Cost of sales |
(155,018) |
(150,879) |
|
|
Gross profit |
42,008 |
40,314 |
|
|
Distribution costs |
(16,336) |
(15,352) |
|
|
Administrative costs |
(10,044) |
(10,218) |
|
|
Other operating income |
535 |
534 |
|
|
Operating profit |
16,163 |
15,278 |
|
|
Profit on disposal of property |
3 |
341 |
407 |
|
Profit before finance revenue and taxation |
16,504 |
15,685 |
|
|
Finance revenue |
259 |
474 |
|
|
Finance costs |
(61) |
(1) |
|
|
Profit before taxation |
16,702 |
16,158 |
|
|
UK income tax |
5 |
(4,977) |
(4,675) |
|
Overseas income tax |
5 |
(471) |
(578) |
|
Profit for the year |
11,254 |
10,905 |
|
|
Earnings per share |
|||
|
Basic |
6 |
17.9p |
16.8p |
|
Diluted |
6 |
17.7p |
16.6p |
|
Total dividend per share for the year |
7 |
9.8p |
8.5p |
Group Balance Sheet
As at 31 March 2008
|
31.03.08 |
02.04.07 |
|
|
£000 |
£000 |
|
|
Non current assets |
||
|
Goodwill and intangible assets |
7,790 |
6,426 |
|
Property, plant and equipment |
42,759 |
36,723 |
|
Prepaid operating lease costs |
1,528 |
1,251 |
|
Deferred tax assets |
452 |
1,271 |
|
52,529 |
45,671 |
|
|
Current assets |
||
|
Inventories |
34,601 |
30,335 |
|
Trade and other receivables |
6,973 |
6,731 |
|
Financial instruments at fair value |
307 |
69 |
|
Cash and cash equivalents |
2,626 |
4,484 |
|
44,507 |
41,619 |
|
|
Non current assets held for sale |
588 |
|
|
Total assets |
97,036 |
87,878 |
|
Current liabilities: |
||
|
Trade and other payables |
(41,176) |
(33,648) |
|
Bank overdraft |
(2,735) |
- |
|
Provisions |
(213) |
(318) |
|
Deferred lease inducements |
(94) |
(95) |
|
Financial instruments at fair value |
(10) |
(4) |
|
Current tax liabilities |
(2,195) |
(1,321) |
|
(46,423) |
(35,386) |
|
|
Non current liabilities |
||
|
Provisions |
(19) |
(60) |
|
Deferred lease inducements |
(749) |
(703) |
|
Deferred tax liabilities |
(426) |
(404) |
|
Total liabilities |
(47,617) |
(36,553) |
|
Net assets |
49,419 |
51,325 |
|
Shareholders' equity |
||
|
Called up share capital |
4,628 |
4,803 |
|
Share premium account |
10,359 |
9,518 |
|
Capital reserve - own shares |
(105) |
(120) |
|
Capital redemption reserve |
333 |
125 |
|
Currency translation reserve |
1,217 |
(119) |
|
Retained earnings |
32,987 |
37,118 |
|
Equity shareholders' funds |
49,419 |
51,325 |
Group Cash Flow Statement
For the year ended 31 March 2008
|
52 weeks |
53 weeks |
|
|
31.03.08 |
02.04.07 |
|
|
£000 |
£000 |
|
|
Cash flows from operating activities: |
||
|
Profit for the year |
11,254 |
10,905 |
|
Adjustments to reconcile profit for the year to cash generated/(utilised) by operations: |
||
|
Income tax expense |
5,448 |
5,253 |
|
Net finance revenue |
(198) |
(473) |
|
Amortisation and depreciation |
2,762 |
2,733 |
|
Profit on disposal of non current assets |
(351) |
(410) |
|
Increase in inventories |
(4,266) |
(1,637) |
|
(Increase)/decrease in trade and other receivables |
(242) |
(615) |
|
Increase/(decrease) in trade and other payables |
7,514 |
(67) |
|
Increase/(decrease) in deferred lease inducements |
45 |
(23) |
|
Change in fair value of derivative instruments |
(232) |
15 |
|
(Decrease)/increase in provisions |
(146) |
92 |
|
Share based payments |
498 |
577 |
|
Cash generated/(utilised) by operations |
22,086 |
16,350 |
|
UK income tax paid |
(3,622) |
(2,595) |
|
Overseas income tax paid |
(449) |
(618) |
|
Net cash generated/(utilised) by operating activities |
18,015 |
13,137 |
|
Cash flows from investing activities |
||
|
Interest received |
265 |
464 |
|
UK income tax paid |
(91) |
(78) |
|
Overseas income tax paid |
(41) |
(18) |
|
Purchase of non current assets |
(10,622) |
(8,109) |
|
Receipts from sales of non current assets |
58 |
1,560 |
|
Receipts from sales of non current assets held for sale |
2,190 |
697 |
|
Net cash (utilised)/generated by investing activities |
(8,241) |
(5,484) |
|
Cash inflow before financing |
9,774 |
7,653 |
|
Cash flows from financing activities |
||
|
Interest paid |
(53) |
(1) |
|
Issue of Ordinary Share capital |
674 |
1,211 |
|
Shares re-purchased |
(9,496) |
(5,445) |
|
Equity dividends paid |
(5,702) |
(4,808) |
|
Net cash used by financing activities |
(14,577) |
(9,043) |
|
Net decrease in cash and cash equivalents |
(4,803) |
(1,390) |
|
Cash and cash equivalents at beginning of year |
4,484 |
5,916 |
|
Effect of foreign exchange differences |
210 |
(42) |
|
Cash and cash equivalents at end of year |
(109) |
4,484 |
|
Reconciliation of cash and cash equivalents |
||
|
Cash and cash equivalents per Group balance sheet |
2,626 |
4,484 |
|
Bank overdraft per Group balance sheet |
(2,735) |
- |
|
Cash and cash equivalents per Group cash flow |
(109) |
4,484 |
Group Statement of Changes in Equity
For the year ended 31 March 2008
|
Capital |
|||||||
|
Reserve |
Total |
||||||
|
Share |
Own Shares |
Capital |
Currency |
Share- |
|||
|
Share |
Premium |
Held in |
Redemption |
Translation |
Retained |
holders' |
|
|
Capital |
Account |
ESOT |
Reserve |
Reserve |
Earnings |
Funds |
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
At 27 March 2006 |
4,864 |
8,371 |
(391) |
- |
107 |
35,694 |
48,645 |
|
Currency translation differences |
|||||||
|
on foreign currency net investments |
- |
- |
- |
- |
(226) |
- |
(226) |
|
Tax credit on employee share options |
- |
- |
- |
- |
- |
466 |
466 |
|
Total income and expense for the year |
|||||||
|
recognised directly in equity |
- |
- |
- |
- |
(226) |
466 |
240 |
|
Profit for the year |
- |
- |
- |
- |
- |
10,905 |
10,905 |
|
Total income and expense for the year |
- |
- |
- |
- |
(226) |
11,371 |
11,145 |
|
Share issue |
64 |
1,147 |
- |
- |
- |
- |
1,211 |
|
Shares vesting under deferred bonus scheme |
- |
- |
271 |
- |
- |
(271) |
- |
|
Transfer to shareholders' funds - employee costs |
|||||||
|
expected to be satisfied in shares |
- |
- |
- |
- |
- |
577 |
577 |
|
Purchase and cancellation of share capital |
(125) |
- |
- |
125 |
- |
(5,445) |
(5,445) |
|
Equity dividends paid |
- |
- |
- |
- |
- |
(4,808) |
(4,808) |
|
At 2 April 2007 |
4,803 |
9,518 |
(120) |
125 |
(119) |
37,118 |
51,325 |
|
Currency translation differences |
|||||||
|
on foreign currency net investments |
- |
- |
- |
- |
1,336 |
- |
1,336 |
|
Tax debit on employee share options |
- |
- |
- |
- |
- |
(470) |
(470) |
|
Total income and expense for the year |
|||||||
|
recognised directly in equity |
- |
- |
- |
- |
1,336 |
(470) |
866 |
|
Profit for the year |
- |
- |
- |
- |
- |
11,254 |
11,254 |
|
Total income and expense for the year |
- |
- |
- |
- |
1,336 |
10,784 |
12,120 |
|
Share issue |
29 |
645 |
- |
- |
- |
- |
674 |
|
ESOT share issue |
4 |
196 |
(100) |
- |
- |
(100) |
- |
|
Shares vesting under deferred bonus scheme |
- |
- |
115 |
- |
- |
(115) |
- |
|
Transfer to shareholders' funds - employee costs |
|||||||
|
expected to be satisfied in shares |
- |
- |
- |
- |
- |
498 |
498 |
|
Purchase and cancellation of share capital |
(208) |
- |
- |
208 |
- |
(9,496) |
(9,496) |
|
Equity dividends paid |
- |
- |
- |
- |
- |
(5,702) |
(5,702) |
|
At 31 March 2008 |
4,628 |
10,359 |
(105) |
333 |
1,217 |
32,987 |
49,419 |
Notes to the Financial Statements
1. General information
Majestic Wine PLC is a public limited company ("Company") incorporated in the United Kingdom under the Companies Act 1985 (registration number 2281640). The Company is domiciled in the United Kingdom and its registered address is Majestic House, Otterspool Way, Watford, WD25 8WW. The Company's Ordinary Shares are traded on the Alternative Investment Market ("AIM").
The Group's principal activity is the retailing of wines, beers and spirits.
2. Basis of preparation
The preliminary results for the year ended 31 March 2008 have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the EU and are in line with the accounting policies set out in the financial statements for the 53 weeks ended 2 April 2007 except that during the year the Group has adopted, IFRS 7 Financial Instruments: Disclosures and IAS 1 Presentation of Financial Statements. Adoption of these revised standards did not have any effect on the financial performance or position of the Group in the current or prior period.
The financial information in the preliminary statement of results does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985 (the "Act"). The financial information for the year ended 31 March 2008 has been extracted from the statutory accounts on which an unqualified audit opinion has been issued. Statutory accounts for the year ended 31 March 2008 will be delivered to the Registrar of Companies following the Company's Annual General Meeting.
The financial statements, and this preliminary statement, of Majestic Wine PLC for the year ended 31 March 2008 were authorised for issue by the Board of Directors on 16 June 2008 and the balance sheet was signed on behalf of the Board by Simon Burke.
The statutory accounts have been delivered to the Registrar of Companies in respect of the year ended 2 April 2007 and the Auditors of the Company made a report thereon under Section 235 of the Act. That report was an unqualified report and did not contain a statement under Section 237(2) or (3) of the Act.
3. Profit on disposal of property
In the prior year comparative profit on disposal of property, which arises from the disposal of leasehold flats and freehold property, was shown as a deduction from the distribution costs expense heading which includes the closure costs associated with relocating stores. To provide users of the accounts with more detailed and comparable information profit on disposal of property has been reclassified to a separate line on the face of the income statement and the prior year comparative has been adjusted accordingly.
4. Segment reporting
The Group's primary segmental reporting format is geographical, based on the Group's management and internal reporting structure. Secondary information is reported by a single business segment, retailing.
Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items are taxation related assets and liabilities. Inter-segment transactions are conducted on an arm's length basis in a manner similar to transactions with third parties. Segment results include transfers between business segments. Those transfers are eliminated on consolidation. Segment capital expenditure is the total cost incurred during the year to acquire segment assets that are expected to be used for more than one period including items held for resale and prepaid operating lease costs.
Geographical segments
Segment analysis 2008
|
Retailing |
Retailing |
|||
|
UK |
France |
Unallocated |
Group |
|
|
£000 |
£000 |
£000 |
£000 |
|
|
Segment revenue |
185,283 |
11,743 |
- |
197,026 |
|
Segment result |
15,098 |
1,406 |
- |
16,504 |
|
Finance revenue |
190 |
69 |
- |
259 |
|
Finance costs |
(61) |
- |
- |
(61) |
|
Profit before tax |
15,227 |
1,475 |
- |
16,702 |
|
Income tax expense |
(4,977) |
(471) |
- |
(5,448) |
|
Profit for the year |
10,250 |
1,004 |
- |
11,254 |
|
Segment assets |
84,925 |
11,659 |
452 |
97,036 |
|
Segment liabilities |
(41,758) |
(2,698) |
(3,161) |
(47,617) |
|
Other segment items: |
||||
|
Purchase of non current assets |
10,519 |
103 |
- |
10,622 |
|
Depreciation and amortisation |
2,637 |
125 |
- |
2,762 |
|
Share based payments |
498 |
- |
- |
498 |
Segment analysis 2007
|
Retailing |
Retailing |
|||
|
UK |
France |
Unallocated |
Group |
|
|
£000 |
£000 |
£000 |
£000 |
|
|
Segment revenue |
178,512 |
12,681 |
- |
191,193 |
|
Segment result |
13,971 |
1,714 |
- |
15,685 |
|
Finance revenue |
414 |
60 |
- |
474 |
|
Finance costs |
(1) |
- |
- |
(1) |
|
Profit before tax |
14,384 |
1,774 |
- |
16,158 |
|
Income tax expense |
(4,675) |
(578) |
- |
(5,253) |
|
Profit for the year |
9,709 |
1,196 |
- |
10,905 |
|
Segment assets |
76,577 |
10,030 |
1,271 |
87,878 |
|
Segment liabilities |
(33,561) |
(2,588) |
(404) |
(36,553) |
|
Other segment items: |
||||
|
Purchase of non current assets |
8,088 |
21 |
- |
8,109 |
|
Depreciation and amortisation |
2,588 |
145 |
- |
2,733 |
|
Share based payments |
577 |
- |
- |
577 |
5. Taxation
a) Taxation charge
|
52 weeks to |
53 weeks to |
|
|
31.03.08 |
02.04.07 |
|
|
£000 |
£000 |
|
|
Current income tax expense: |
||
|
UK income tax |
4,765 |
4,570 |
|
Overseas income tax on subsidiary undertaking |
496 |
578 |
|
Adjustment in respect of previous year |
(27) |
(792) |
|
Total current income tax expense |
5,234 |
4,356 |
|
UK deferred tax expense: |
||
|
Origination and reversal of temporary differences |
214 |
26 |
|
Adjustment in respect of prior years |
(39) |
871 |
|
Change in tax rate on prior year balances |
39 |
- |
|
Total deferred tax expense |
214 |
897 |
|
Total income tax expense charged in the income statement |
5,448 |
5,253 |
b) Taxation reconciliation
|
52 weeks to |
53 weeks to |
|
|
31.03.08 |
02.04.07 |
|
|
£000 |
£000 |
|
|
Profit before tax |
16,702 |
16,158 |
|
Taxation at the standard UK corporation tax rate of 30% (2007: 30%) |
5,011 |
4,847 |
|
Adjustments in respect of prior years |
(66) |
79 |
|
Overseas income tax at higher rates |
50 |
59 |
|
Non-deductible expenses |
449 |
289 |
|
Change in tax rate on current year deferred tax |
(23) |
- |
|
Change in tax rate on prior year balances |
39 |
- |
|
Income not taxable |
(12) |
(21) |
|
Total income tax expense charged in the income statement |
5,448 |
5,253 |
|
Effective tax rate |
32.6% |
32.5% |
c) Tax on items charged/(credited) to equity
|
52 weeks to |
53 weeks to |
|
|
31.03.08 |
02.04.07 |
|
|
£000 |
£000 |
|
|
Current tax credit on share based payments |
(157) |
(496) |
|
Deferred tax charge on share based payments |
608 |
30 |
|
Change in tax rate on prior year balances |
19 |
- |
|
Total tax on items charged/(credited) to equity |
470 |
(466) |
d) Deferred tax
|
Short- term |
Total deferred |
|||||
|
Accelerated tax depreciation |
temporary differences |
Share- based payments |
tax assets |
Deferred tax liabilities |
Total |
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
At 27 March 2006 |
(152) |
572 |
1,705 |
2,125 |
(331) |
1,794 |
|
(Charged) to the income statement |
(33) |
(13) |
(778) |
(824) |
(73) |
(897) |
|
Credited/(charged) to equity |
- |
31 |
(61) |
(30) |
- |
(30) |
|
At 2 April 2007 |
(185) |
590 |
866 |
1,271 |
(404) |
867 |
|
(Charged)/credited to the income statement |
36 |
(60) |
(168) |
(192) |
(22) |
(214) |
|
Credited/(charged) to equity |
- |
(46) |
(581) |
(627) |
- |
(627) |
|
At 31 March 2008 |
(149) |
484 |
117 |
452 |
(426) |
26 |
The deferred tax liabilities relate solely to held-over capital gains arising on the disposal of freehold properties.
e) Factors that may affect future tax charges
The Group's overseas tax rate is higher than that in the UK as profits earned by Les Celliers de Calais S.A.S. in France are taxed at a rate of 31.9% (2007: 32.6%).
No deferred tax is recognised on the unremitted earnings of overseas subsidiaries as the Group has no liability to additional taxation should such amounts be remitted due to the availability of double taxation relief. The temporary difference unrecognised at the year end amounted to £443,000 (2007: £541,000).
6. Earnings per share
The calculations of earnings per Ordinary Share are based upon profits after taxation of £11,254,000 (2007: £10,905,000).
The number of Ordinary Shares used in the diluted earnings per share is calculated as follows:-
|
2008 |
2007 |
|
|
Basic weighted average number of shares |
62,842,155 |
64,771,571 |
|
Dilutive potential Ordinary Shares: |
||
|
Employee share options |
575,301 |
830,790 |
|
63,417,456 |
65,602,361 |
Reconciliation of earnings per Ordinary Share to diluted earnings per Ordinary Share:
|
2008 |
2007 |
|
|
Earnings per Ordinary Share |
17.9p |
16.8p |
|
Dilutive effect of employee share options |
(0.2)p |
(0.2)p |
|
Diluted earnings per Ordinary Share |
17.7p |
16.6p |
7. Dividend
A final dividend of 7.0 pence net on each Ordinary Share will be payable on 15 August 2008 to shareholders on the register on 18 July 2008.
Related Shares:
Naked Wine