RNS Number:8990S
Eldridge Pope & Co PLC
05 December 2003
ELDRIDGE POPE & CO. PLC
("Eldridge Pope" or "the Company")
Preliminary results for the year ended 4 October 2003
* Turnover at #70.5 million (2002: #69.6 million)
* Pre-exceptional pre-tax profit (PBET) of #3.5 million (2002: #6.4 million)
* EBITDA of #12.3 million (2002: #14.2 million)
* Pre-exceptional earnings per share of 13.1p (2002: 16.4p)
* Post-exceptional loss #9.9million (2002: profit #6.3million)
* Net debt reduced to #41.8 million (2002: #52.8 million)
* Full-year dividend maintained at 2002 levels (8.28p)
* Net asset value per share of 243p (2002: 290p)
* New executive team
* 'Back to basics' strategy being implemented focusing on micro-management
of individual units
* Uninvested like for like trading for 8 weeks to 29 November 2003:
- Pubs +6.4%
- Inns -1.8%
- Bars -9.3%
- Tenancies +2.9%
Susan Barratt, Chief Executive of Eldridge Pope, commented:
"Whilst the performance of the business during the year as a whole was very
disappointing, the decline that had been seen in the first half slowed
considerably in the second half. The relative improvement continued in the
first eight weeks of the current year. Although the difficulties have not yet
been resolved in our bars business we have seen useful improvements in trade in
our pubs and tenancies.
We have taken some tough decisions and we are confident that we have the right
strategy, the right people and the resolve to restore value to shareholders."
5 December 2003
Enquiries:
Eldridge, Pope & Co., p.l.c. Tel: 01305 258195
Susan Barratt, Chief Executive
College Hill Tel: 020 7457 2020
Matthew Smallwood
ELDRIDGE POPE PLC
Preliminary results for the year ended 4th October 2003
Chairman's Statement
In a difficult year for Eldridge Pope and pub retailers generally, profits have
fallen with the downturn in trade in the high street. Our town-centre bars
business, Toad, has met with continuing intense competition.
During the year, Eldridge Pope received a number of opportunistic approaches
from other companies. Your directors investigated and then reviewed these in
detail, but were not able to recommend a proposal to shareholders as
representing fair value of Eldridge Pope.
At the end of June this year, a new executive team took over the running of the
Company. Susan Barratt replaced Michael Johnson as Chief Executive, James Eyre
was made Director of Operations, and Chris Pedder was promoted to Finance
Director.
The new team has placed the emphasis on improving the trading performance of
the existing outlets, with a clear concentration on the traditional skills and
core competencies of our business. This is not the time for complex strategies
and new initiatives. The successful implementation of the 'back to basics'
strategy requires hard work and a focus on the basics of good pub management;
the right managers in the right sites, high standards in every outlet and a
superb offer and service for the customer. Management has responded well and
constructively to the renewed focus on what they do best.
The 'back to basics' review identified a number of sites where the Board judged
it better to sell rather than invest further. This led to the exchange of
contracts for the sale of 24 outlets which together with the proceeds from the
sale of the Dorchester site have reduced borrowings from #52.8 million to
#41.8million at the year end, with a further #3.6million to come. This leaves
us with a more balanced business operating in four trading formats: Pubs, Inns,
Bars and Tenancies.
After a careful review of asset values, impairment charges and provisions
totalling #14.5million have been taken in these accounts. Post this review net
assets stand at #60.3million, or 243p per share (2002: 290p).
Current trading is beginning to show the benefits of our 'back to basics'
strategy. We still have a long way to go, particularly in Bars where trading
remains difficult, but we are confident that we now have the correct strategy to
restore shareholder value.
The Board is recommending a final dividend in line with 2002 of 8.28p per share
for the full year, which will be paid out of trading cash flow.
I must pay tribute to my predecessor, Christopher Pope, who stood down as
Chairman due to ill health in September. Christopher has spent his entire
working life with the company, as Chief Executive from 1974 and then Chairman,
and his commitment to the Company has been unwavering. He remains on the Board
where his experience and advice will always be welcome.
Robert Colvill
CHAIRMAN
5 December 2003
Chief Executive's Statement
Review of 2002/03
The year ended 4 October 2003 has been difficult, but since we announced the
'back to basics' strategy at the end of June, progress has been made to restore
confidence and improve trading performance. PBET for the year was #3.5million
(2002: #6.4million) and EBITDA before exceptionals was #12.3million (2002
#14.2million). These results reflected our previous over-investment in town
centres and bars, an inappropriate focus on the research and development of new
concepts, and in particular, insufficient focus on the basics of pub retailing.
The Company is now solely focused on improving the performance of its existing
portfolio. This plan has four key tenets:
* Generating cash and reducing debt through the sale of subscale and
unprofitable sites and non-core assets - net debt has reduced to #41.8
million (2002: #52.8 million);
* Improving the effectiveness of capital expenditure - a reduced spend of
#3.2 million (2003: #8.6million, 2002: #13.6million) is planned for 2004
focused on the current estate and designed to drive revenues;
* Simplifying the business and reducing complexity to focus on Pubs, Inns,
Bars and Tenancies;
* Emphasising local solutions for local markets - we have given line
management the freedom to implement local solutions appropriate to their
customer base;
Through the targeted disposal of certain non-core properties for #14.6million we
have made significant progress in reducing the debt to more manageable levels.
the loss on disposal was provided at the half year.
Disposal activity during the year includes:
* The Dorchester brewery site and Eldridge Pope's share of Thomas Hardy
Packaging and Thomas Hardy Brewing for a consideration of #8.75million
(profit on disposal: #0.7million);
* 18 sites for a consideration of #3.9million (loss on disposal
#1.6million), with contracts exchanged in September 2003 and completion due
by 31 January 2004;
* 2 Toad leasehold units for nil consideration (loss on disposal
#1.7million), exchanged in September 2003 and completed in November 2003;
and
* A further 4 subscale or leasehold sites sold for #1.9million (a profit of
#0.1million)
The 24 units sold made losses of #0.6million in the year ended 4 October 2003,
with rents payable of #0.8million per annum.
In addition to those noted above, the Company is actively disposing of a further
five leasehold sites. The anticipated loss on these disposals was also provided
for at the half year.
Financial
Turnover for the year ended 4 October 2003 grew by 1.3%, although uninvested
like for like sales for the whole business were down by 7.0% for the full year.
PBET fell from #6.4million to #3.5million, as a result of:
* An increase in depreciation of #1.3million (resulting from higher capital
spend in recent years);
* A drop in contribution of #0.5million following the sale of the brewery
site and the share in the associate, Thomas Hardy Packaging. The
contribution in the 6 months up to the sale on 2nd April 2003 was #0.4m;
* A trading shortfall of #1million, after a contribution of #0.45m from the
53rd week. The shortfall was principally caused by reduced sales in the
like for like estate and increased labour and establishment costs.
Overall gross margin was maintained at 2002 levels with drink margin marginally
below and food margin marginally above 2002 levels.
Operating cash flow fell by #2.2million to #11million with free cash flow after
interest, tax and dividends of #5.4million (2002 #5.3million).
Net debt at the year-end was #41.8million (2002 #52.8million). Debt will be
reduced further when the Company receives the full consideration (a further
#3.6million) from the sale of 18 pubs for which contracts were exchanged before
the year-end, with completion due in January 2004.
Controls over capital expenditure have been tightened, and the 2004 budget of
#3.2million is focused on the core business. There is no planned acquisition
pipeline.
Following an impairment review of the carrying value of all our properties, a
charge of #5.0million has been taken for the full year, #1.2million of which was
declared at the half year. A provision for losses on disposal of #9.5million
was also taken at the half year. The impairment charge largely relates to
leasehold assets. The freehold assets (68% of the estate) have not been revalued
since 1998.
The pension fund deficit net of deferred tax on an FRS17 basis, was #9.3million
based on actuarial figures at the year-end. The deficit reflects changed
assumptions on mortality, the impact of early retirements and the movement in
both equity and bond markets. Eldridge Pope will increase its contributions to
the fund by #0.8million from 2004.
Review of Operations
The year on year univested like for like sales, are shown below by trading
format:
Full Year 1st half 2nd half 8 weeks trading
To 4 October to 29 November 2003
2003
Pubs - 7.2% - 9.9% - 4.0% +6.4%
Inns - 3.2% - 6.3% - 0.8% -1.8%
Bars -15.7% -14.0% -16.5% -9.3%
Tenancies +2.3% +3.8% +1.3% +2.9%
During the year, we put in place a new operational management team to implement
our strategy. The individuals within the team each bring management skills
appropriate to the different characteristics of our four trading formats.
Pubs
The focus is on local management, being integral to the community and
encouraging the custom of local sports teams. The geography of these pubs is
tight and local knowledge of the customer base and competition is a vital
ingredient for success. Eldridge Pope has a strong history in running these pubs
profitably. A focus on day-to-day management, with strong central support for
training and product, is showing very positive signs as we start 2004. Our 2003
developments are producing returns in excess of 20%, and we have four further
developments planned for 2004.
Inns
The Inns business consists of 37 units with an income split 40:40:20 between
drinks, food and accommodation.
The focus here is on ensuring that managers identify with their customer base,
that standards are second to none and that the food offer meets customer's needs
in each individual outlet. Local food solutions for local tastes are supported
by central procurement. A dish selector has been created enabling Inns to
select properly costed dishes to suit their local needs.
The marketing of accommodation is focused on the unique appeal of each site, and
we are working, among others with local and national tourist boards to market
these properties more effectively.
Bars
The Bars business consists of 33 units, 23 of which are Toads, of which 5 are
being marketed for sale.
This continues to be a tough market, requiring detailed and intense management
on a site-by-site basis.
We have analysed our Toad outlets to better understand the changing needs and
behaviours of our customers, and to ensure that we update our offer in order to
stay at the forefront of the market. To achieve this we are recruiting and
training managers who can adapt each unit to suit the local customer base.
Early week trade continues to be tough and we have identified specific
characteristics of our customers to drive revenues. Additionally, the menus in
all sites were changed in Autumn 2003 to increase the daytime trade and the
initial signs are positive. The drinks range has been revised to raise both
volume and margin with targeted promotional activity. Our operations team are
working with external promoters to develop our early week trade. The key aim is
to offer unique, relevant and exciting entertainment in each site.
Tenancies
The ongoing Tenanted estate has 43 outlets. Tenancies continue to make
significant cash contributions to Eldridge Pope. Our average income per site for
the ongoing estate in 2003 was over #45,000. The terms of agreements vary from 3
to 7 years with one 21 year term. We are reviewing our tenancy agreements in
detail, to ensure that they give sufficient incentive for the tenant to invest
in the property through personal drive and commitment, ultimately creating
growth for both tenant and company.
The relationship between Eldridge Pope and its tenants is strong with only four
changes in 2003, the approach being one of partnership and support, which is
rewarding for both parties.
People standards and customer offer
Across all trading formats, management is improving performance by focusing on
people, standards and the customer offer:
People
We have undertaken a house-by-house review of our pub managers to ensure that
each management appointment complements the profile of the pub and that
individuals have the experience and confidence to manage the business to meet
local market needs.
Standards
We have recruited an additional training manager and have launched 'The Great
Service Challenge' initiative with a focus on motivating the front line teams to
deliver standards and service to exceed customer expectations every day.
Customer Offer
We have given our outlets the tools to draw up a detailed marketing plan
specifically for their units, using a selection of well thought through
promotions and entertainment options driven from the centre, to generate sales,
maximise margin and minimise cost.
Outlook
For the 8 weeks to 29 November 2003 the uninvested like for like performance of
the Pubs was +6.4%; Inns -1.8%; Bars -9.3%; and Tenancies +2.9%. Total group
like for like sales during this period were -3.0%.
In 2003/04 we will be absorbing higher pension costs, changes in licensing law,
the lost income from the brewery site and the absence of the benefit of the 53rd
week. Against this we can put lower costs (#0.6million reduction in central
labour costs) and the benefit of the sale of loss making sites.
Due to these factors it is unlikely that the timing of the recovery will show in
the first half results, but the Board is confident that it has adopted the
correct strategy and has taken the urgent and decisive steps necessary to
restore value to shareholders.
Susan Barratt
CHIEF EXECUTIVE
5 December 2003
Consolidated Profit and Loss Account
for the year ended 4th October 2003
Before Exceptional Total Before Exceptional Total
exceptional items exceptional items
items items
note 2003 2003 2003 2002 2002 2002
#000 #000 #000 #000 #000 #000
Turnover 1 70,490 - 70,490 69,592 - 69,592
Group operating profit 4 6,823 (5,874) 949 9,743 (989) 8,754
Share of operating profit in associated 5 158 - 158 362 - 362
undertakings
Amortisation of goodwill arising on 5 (17) - (17) (35) - (35)
acquisition of associate
Total operating profit:
Group and share of associates 6,964 (5,874) 1,090 10,070 (989) 9,081
(Loss)/profit on disposal of properties 6 - (7,567) (7,567) - 919 919
Profit before interest 6,964 (13,441) (6,477) 10,070 (70) 10,000
Net interest payable
Group 7 (3,446) - (3,446) (3,699) - (3,699)
Associates 5 - - - (9) - (9)
(3,446) - (3,446) (3,708) - (3,708)
Profit on ordinary activities before 3,518 (13,441) (9,923) 6,362 (70) 6,292
taxation
Taxation credit/(charge) 8 (290) 732 442 (2,308) 197 (2,111)
Profit on ordinary activities after taxation 3,228 (12,709) (9,481) 4,054 127 4,181
Dividends 9 (2,053) - (2,053) (2,046) - (2,046)
Retained profit for the year 1,175 (12,709) (11,534) 2,008 127 2,135
Earnings per share - pre exceptional items 10 13.1p 16.4p
Earnings per share - basic 10 (38.3)p 17.0p
Earnings per share - diluted 10 (38.3)p 16.9p
Consolidated Balance Sheet
for the year ended 4th October 2003
2003 2003 2002 2002
note #000 #000 #000 #000
Fixed assets
Tangible assets 11 108,931 128,206
Investments 9 1,761
108,940 129,967
Current assets
Stocks 1,157 1,142
Debtors 12 6,870 9,799
Corporation tax 118 183
Cash at bank and in hand 19 2,955 3,130
11,100 14,254
Creditors: amounts falling due within one
year
Bank loans 15 - 16,000
Trade and other creditors 13 8,977 9,705
Proposed dividend 1,321 1,320
10,298 27,025
Net current assets/(liabilities) 802 (12,771)
Total assets less current liabilities 109,742 117,196
Creditors: amounts falling due after more 14 44,741 39,723
than one year
Provisions for liabilities and charges 16 4,745 5,710
49,486 45,433
60,256 71,763
Capital and reserves
Called-up share capital 17 12,373 12,355
Share premium account 133 155
Revaluation reserve 19,852 20,845
Profit and loss account 27,898 38,408
Shareholders' funds - Equity interests 60,256 71,763
By order of the Board
R Colvill - Director
S V Barratt - Director
Consolidated Cash Flow Statement
for the year ended 4th October 2003
2003 2003 2002 2002
note #000 #000 #000 #000
Net cash inflow from operating activities 4(b) 10,996 13,215
Dividend from associate 74 24
Returns on investments and servicing of
finance
Interest received 15 62
Interest paid on finance leases (55) (55)
Interest paid (3,203) (3,889)
Net cash outflow from returns on investments (3,243) (3,882)
and servicing of finance
Taxation - paid (411) (1,814)
Capital expenditure and financial investment
Purchase of tangible fixed assets (9,009) (13,005)
Proceeds from disposal of tangible fixed 6 12,889 1,107
assets
Proceeds from disposal of investments 1,623 -
Trade loans repaid 152 120
5,655 (11,778)
Equity dividends paid (2,051) (2,039)
11,020 (6,274)
Financing
Issue of ordinary share capital 17 27 247
Loans entered into 15 - 25,000
Loans repaid 15 (11,000) (13,500)
Principal repayments of finance lease (222) (221)
obligations
(11,195) 11,526
(Decrease)/increase in cash 18 (175) 5,252
Reconciliation of Shareholders' Funds
for the year ended 4th October 2003
2003 2002
#000 #000
Total recognised (losses)/gains (9,481) 4,181
Dividends (2,053) (2,046)
Reinstatement of goodwill previously written off - 93
New shares issued 27 247
Total movements during the year (11,507) 2,475
Shareholders' funds at 1 October 71,763 69,288
Shareholders' funds at 4th October 2003/ 30 September 2002 60,256 71,763
Notes to the Financial Statements
1 TURNOVER AND SEGMENTAL INFORMATION
Managed Pub Tenanted Pub Central Operations Total
Operations Operations
2003 2002 2003 2002 2003 2002 2003 2002
#000 #000 #000 #000 #000 #000 #000 #000
Turnover 65,586 64,139 4,108 4,335 796 1,118 70,490 69,592
Group operating profit before 7,624 10,242 1,901 2,019 (2,702) (2,518) 6,823 9,743
exceptional items
Exceptional operating items (4,989) (207) - - (885) (782) (5,874) (989)
Group operating profit (after 2,635 10,035 1,901 2,019 (3,587) (3,300) 949 8,754
exceptional items)
Share of operating profit in
associated undertakings less
amortisation of goodwill - - - - 141 327 141 327
Profit on disposal of properties 177 174 697 172 733 573 1,607 919
Provision for loss on disposal of (9,174) - - - - - (9,174) -
properties
(Loss)/profit on ordinary activities
before interest and tax (6,362) 10,209 2,598 2,191 (2,713) (2,400) (6,477) 10,000
Net assets 92,631 106,968 13,468 14,166 (45,843) (50,726) 60,256 70,408
Net assets of associated undertakings - 1,355
60,256 71,763
The "Central Operations" segment includes the Group's activities other than
Managed and Tenanted pub segments; this principally comprises the Dorchester
site and retail shop. The net assets within central operations primarily
comprise certain fixed assets, tax, dividends and financing.
In the comparative period turnover of #696k and operating losses of #272k were
previously reported as "non-core operations", consisting of small managed pubs
which have now been sold.
Turnover comprises the invoice value of goods and services stated net of VAT and
discounts. All turnover is generated from within the UK, and sold within the
UK. Turnover on ongoing operations is derived from the Group's principal
activities which are set out in the Directors' Report.
Notes to the Financial Statements (cont'd)
2 OPERATING COSTS
2003 2002
#000 #000
Change in stocks of finished goods and work in progress (15) (121)
Raw materials, consumables and duty 18,950 18,820
Other external charges 625 407
Staff costs (note 3) 17,807 17,557
Depreciation and amortisation 5,274 4,090
Impairment 4,989 -
Maintenance and renewals 1,273 940
Other operating charges 20,638 19,145
Total operating costs 69,541 60,838
Included within ongoing operating costs above are the following
exceptional items:
Staff costs (note 3) 316 488
Impairment 4,989 -
Other operating charges 569 501
Exceptional operating costs 5,874 989
Exceptional costs for the year comprised the impact of an impairment review
resulting in a #4,989,000 charge, corporate activity of #569,000 arising from
two separate offer periods and #316,000 in respect of reorganisation costs.
Last year the exceptional operating costs comprised professional fees relating
to our review of corporate strategic options of #254,000 (included in "Other
operating costs") and costs incurred as a result of a major reorganisation of
staff, mainly at Board and senior management level, #735,000.
3 STAFF COSTS
2003 2003 2003 2002 2002 2002
Exceptional Total Exceptional Total
#000 #000 #000 #000 #000 #000
Wages & salaries 16,251 312 16,563 15,814 474 16,288
Social security costs 1,083 4 1,087 986 14 1,000
Other pension costs 157 - 157 269 - 269
17,491 316 17,807 17,069 488 17,557
Staff costs include remuneration paid to directors of the Company.
The average number of persons employed by the Group in each month was 1,801
(2002: 1,859) and is analysed across the following categories:
2003 2002
Pub operations 1,721 1,773
Central operations 80 86
1,801 1,859
The above includes part-time employees.
Notes to the Financial Statements (cont'd)
4 GROUP OPERATING PROFIT
2003 2002
(a) Operating profit is stated after charging: #000 #000
Auditors' remuneration
Audit services 65 58
Non audit services 133 136
Depreciation of tangible fixed assets - owned 4,459 3,274
- finance leased - 114
- leasehold 815 702
Operating lease costs
Plant and equipment 215 172
Land and Buildings 4,805 3,875
(b) Reconciliation of operating profit to operating cash flows:
2003 2002
#000 #000
Group operating profit 949 8,754
Depreciation and amortisation 5,274 4,090
Impairment of property values 4,989 -
(Profit)/loss on sale of fixed assets (9) 18
Increase in pensions prepayment (425) (477)
Increase in stocks (15) (121)
Decrease/(increase) in debtors 673 (399)
(Decrease)/increase in creditors (440) 1,350
Net cash inflow from operating activities 10,996 13,215
(c) Cash flows relating to exceptional operating items:
Net cash inflow from operating activities in 2003 includes cash outflows of
#885,000 (2002: #989,000) in respect of the items detailed in note 2.
The cash flows relating to non-operating exceptional items are set out in
note 6.
5 PROFIT FROM INTERESTS IN ASSOCIATED UNDERTAKINGS
Thomas Hardy Packaging Limited (note 12) 2003 2002
#000 #000
Group 40.0% (2002: 42.9%) share of operating profit 158 362
Group 40.0% (2002: 42.9%) share of interest payable - (9)
Group 40.0% (2002: 42.9%) share of the tax charge (47) (109)
111 244
On the 2 April 2003 Eldridge Popes interest in Thomas Hardy Packaging was
disposed of, the share of profit for the year is taken to that date. A final
charge of #17,500 (2002: #35,000) has been made in respect of amortisation of
the goodwill that arose on acquisition of the investment in Thomas Hardy
Packaging Limited.
Notes to the Financial Statements (cont'd)
The following is a summary of the profit and loss accounts of the Group's only
associated undertaking, Thomas Hardy Packaging Limited at the date of disposal.
Thomas Hardy Packaging Limited
2003 2002
#000 #000
Turnover 2,535 8,242
Depreciation 121 241
Other costs 2,018 7,157
Profit before interest 396 844
Interest payable 3 21
Profit before tax 393 823
Tax (118) (254)
Profit after tax 275 569
Net assets 1,852 1,455
6 (LOSS)/PROFIT ON DISPOSAL OF PROPERTIES
2003 2002
#000 #000
Profit on disposal of properties 1,607 919
Provision for loss on disposal of properties (9,174) -
(7,567) 919
The profit in 2002 was after reinstating #93,000 of goodwill previously written
off to reserves on the acquisition of Hovetop Limited in 1994. The effect was
to reduce the profit reported by that amount.
On 2 April 2003 the Dorchester freehold site together with the interests in
Thomas Hardy Packaging Limited and Thomas Hardy Brewery Limited were sold in a
single transaction generating a profit of #695,000 which is included above.
Sales proceeds after costs of sale were #8,413,000.
It is not anticipated that profits or losses on disposal of properties will give
rise to any capital gains due to the availability of rollover relief and
offsetting capital losses.
Cash flows relating to non-operating exceptional items:
Capital expenditure and financial investment cash flows include #14,512,000
(2002: #1,107,000) from the sale of properties and investments
7 NET INTEREST CHARGES
2003 2002
#000 #000
Interest payable
Debenture stock 1,175 1,175
Bank loans and overdrafts 2,193 2,511
Finance leases 55 55
Other loans 66 39
3,489 3,780
Less interest receivable
Trade loan interest received (5) (24)
Bank and other deposits (38) (57)
(43) (81)
Net interest payable 3,446 3,699
Notes to the Financial Statements (cont'd)
8 TAXATION
2003 2002
(a) Analysis of tax (credit)/charge in the year #000 #000
UK Current Tax
UK corporation tax charge for the year 392 1,144
Adjustments in respect of prior years 84 93
476 1,237
UK Deferred tax
Origination and reversal of timing differences (729) 945
Adjustments in respect of prior years (236) (180)
(965) 765
Share of associate's tax 47 109
Total tax (credit)/charge (442) 2,111
(b) Factors affecting tax charge for the year
Group profit on ordinary activities before tax (9,923) 6,292
Profit on ordinary activities multiplied by standard rate (2,977) 1,888
of UK corporation tax of 30% (2002: 30%)
Effect of:
Expenses not deductible for tax purposes 3,491 285
Sale of investments 201 -
Adjustment relating to prior years' corporation tax 84 93
Accounting depreciation in excess of tax depreciation 853 (771)
Other timing differences (124) 97
Profit on disposal not taxable due to the availability of rollover (1,000) (246)
relief
Marginal relief (5) -
Total current tax charge (including share of associate) 523 1,346
The expenses not deductible for tax purposes this year mainly comprise the
provision made for losses on disposal of properties.
Factors affecting tax charge for the year
Based on current capital investment plans, the Group expects to continue to be
able to claim capital allowances in excess of depreciation in future years.
Balance Sheet
2003 2002
#000 #000
Debtor - corporation tax recoverable 118 183
Provisions for liabilities and charges (Note 16) 4,745 5,710
9 DIVIDENDS ON ORDINARY SHARES
2003 2002 2003 2002
per share per share #000 #000
Interim 2.94p 2.94p 728 726
Proposed Final 5.34p 5.34p 1,325 1,320
8.28p 8.28p 2,053 2,046
Notes to the Financial Statements (cont'd)
10 EARNINGS PER ORDINARY SHARE
2003 2002 2003 2002
Earnings Earnings Earnings Earnings
per share per share #000 #000
Pre exceptional items (after tax) 13.1p 16.4p 3,228 4,054
Exceptional items (after tax) (51.4)p 0.6p (12,709) 127
Basic earnings per share (38.3)p 17.0p (9,481) 4,181
Diluted earnings per share (38.3)p 16.9p (9,481) 4,181
2003 2002
000s 000s
Basic weighted average number of shares in issue 24,737 24,670
Potentially dilutive shares: Employee and executive share options 26 90
24,763 24,760
Earnings per share on pre exceptional operations have been calculated in
addition to the basic and diluted figures required by FRS 14, since, in the
opinion of the Directors, this reflects the financial performance of the core
business more appropriately.
11 FIXED ASSETS - TANGIBLE
Group Land and Fixtures & Equipment and
Buildings Fittings Vehicles Total
Cost or valuation: #000 #000 #000 #000
At 1st October, 2002 (a) 113,427 25,727 4,569 143,723
Additions 3,654 4,799 237 8,690
Disposals (10,046) (1,033) (89) (11,168)
At 4th October, 2003 107,035 29,493 4,717 141,245
Depreciation:
At 1st October, 2002 4,713 7,993 2,811 15,517
Provided during the year 1,069 3,624 581 5,274
Provision for loss on disposal (b) 6,534 2,640 - 9,174
Impairment (c) 3,555 1,434 - 4,989
Disposals (1,782) (798) (60) (2,640)
At 4th October, 2003 14,089 14,893 3,332 32,314
Net book value at 4th October, 92,946 14,600 1,385 108,931
2003
Net book value at 1st October, 108,714 17,734 1,758 128,206
2002
The net book value of properties comprises:
Group
2003 2002
#000 #000
Freehold industrial properties, fixtures and fittings (d) - 5,935
Other freehold properties, fixtures and fittings 81,224 82,160
Long leasehold properties, fixtures and fittings 3,523 3,470
Short leasehold properties, fixtures and fittings 22,799 34,883
Notes to the Financial Statements (cont'd)
(a) Tangible fixed assets are included at their original historic cost or
previously revalued amounts. The Group adopted the transitional provisions of
FRS 15 in the 2000 financial statements, accordingly no further revaluations
will be undertaken.
(b) A provision has been made for the loss on disposal of selected sites which
are being actively marketed by the Group.
(c) In accordance with FRS 11 'Impairment of Fixed Assets and Goodwill' the
carrying values of the sites have been compared to their recoverable amounts,
represented by their value in use to the company. The value in use has been
derived from discounted cashflow projections using a nominal discount rate of
9.0% on a pre-tax basis.
(d) On 2 April 2003 the freehold site at Dorchester was sold.
No interest was capitalised during the year (2002: #35,000). The cumulative
total of interest included at the balance sheet date was #75,000 (2002:
#75,000).
Included in the figure for freehold properties, fixtures and fittings is non
depreciable land valued at #38,111,000 (2002: #39,084,000).
The net book historical value of the Group's properties, including fixtures and
fittings is #92,357,000 (2002: #98,988,000) , being historical cost of
#116,676,000 (2002: #118,309,000) less accumulated depreciation of #24,319,000
(2002: #19,321,000).
12 DEBTORS
2003 2002
Group #000 #000
Trade debtors 1,156 1,712
Prepayments and accrued income 2,358 5,076
Other debtors 3,356 3,011
6,870 9,799
Company
Trade debtors 1,156 1,712
Amounts due from subsidiary undertakings 47 47
Prepayments and accrued income 2,358 5,076
Other debtors 3,361 3,016
6,922 9,851
Group and Company: Other debtors include #2,772,000 (2002: #2,347,000) in
respect of the pension fund prepayment (note 25).
Prepayments and accrued income in 2002 included #2,744,000 income from the sale
of properties, unconditionally exchanged prior to the year end.
Notes to the Financial Statements (cont'd)
13 TRADE AND OTHER CREDITORS
2003 2002
Group #000 #000
Trade creditors 3,582 4,365
Other creditors 235 242
Taxation and social security 1,592 1,296
Accruals 3,313 3,347
Amounts owed under finance lease obligation (note 18) 13 222
Tenants & other deposits 242 233
8,977 9,705
Company
Trade creditors 3,582 4,365
Amounts owed to subsidiary undertakings 8,731 8,731
Other creditors 217 224
Taxation and social security 1,592 1,296
Accruals 3,313 3,347
Amounts owed under finance lease obligation (note 18) 13 222
Tenants & other deposits 242 233
17,690 18,418
Group and Company: Included in accruals is #242,000 relating to capital
expenditure (2002: #562,000).
14 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
GROUP & COMPANY
2003 2002
#000 #000
Bank loans (note 17) 30,000 25,000
Irredeemable Unsecured Loan Stock (note 17) 300 300
Obligation under finance leases (note 18) 28 41
Debenture Stock (note 17) 14,413 14,382
44,741 39,723
Notes to the Financial Statements (cont'd)
15 LOANS
GROUP & COMPANY
2003 2002
#000 #000
Amounts falling due:
In one year or less or on demand:
Bank loans - 16,000
Between one and two years:
Bank loan (note 16) 25,000 -
Between two and five years:
Bank loan (note 16) 5,000 25,000
In five years or more:
Debenture Stock 2022 7.625% 15,000 15,000
Debenture issue costs (777) (777)
Amortised debenture issue costs 190 159
14,413 14,382
6 1/4% Irredeemable Unsecured Loan Stock (note 16) 150 150
7 1/2% Irredeemable Unsecured Loan Stock (note 16) 150 150
14,713 14,682
44,713 55,682
Payment of the principal and interest on the Debenture is secured by a first
floating charge over the whole of the undertaking.
16 DEFERRED TAXATION
GROUP AND COMPANY GROUP AND COMPANY
Not provided/ Not provided/
Provided Provided (not (not
recognised) recognised)
2003 2002 2003 2002
#000 #000 #000 #000
Accelerated capital allowances 3,959 5,049 - -
Revalued land and buildings - - 5,956 6,254
Assets subject to rollover claims - - 6,026 5,000
Capital losses - - (1,500) (6,115)
Short term timing differences (46) (41) - -
Pension provision 832 702 - -
4,745 5,710 10,482 5,139
Deferred Tax Provided
#000
At 1 October 2002 5,710
Arising during the year (965)
At 4 October 2003 4,745
Notes to the Financial Statements (cont'd)
No provision has been made for deferred tax where potentially taxable gains have
been rolled over into replacement assets. Such gains would become taxable only
if the assets were sold without it being possible to reclaim rollover relief.
The amount not provided is #6.0m. At present, it is not envisaged that any tax
will become payable in the foreseeable future.
No provision is made for deferred tax where fixed assets have been revalued, as
it is anticipated that the gain arising on the planned asset disposals will be
either covered by rollover relief or the use of capital losses brought forward.
At present, it is not envisaged that any tax will crystallise on revalued
amounts in the foreseeable future.
Capital losses have not been recognised as a deferred tax asset as they are not
expected to be utilised due to the anticipated availability of rollover relief
against future gains.
17 SHARE CAPITAL
Authorised
2003 2002
#000 #000
Unclassified shares of 50p each 3,627 3,645
Ordinary shares of 50p each 12,373 12,355
16,000 16,000
Allotted, Called Up And Fully Paid
2003 2002 2003 2002
No./000's No./000's #000 #000
Ordinary shares of 50p each 24,746 24,711 12,373 12,355
During the year the following Ordinary shares of 50p each were issued, with an
aggregate nominal value of #17,500 and consideration of #26,600: Options
exercised under the Executive Share Option Scheme: 35,000 at #0.76p
18 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
2003 2002
#000 #000
(Decrease)/increase in cash in the period (175) 5,252
Cash inflow /(outflow)/ from debt and lease financing 11,222 (11,279)
Change in net debt resulting from cash flows 11,047 (6,027)
Amortisation of issue costs (31) (31)
Net debt at 1st October (52,815) (46,757)
Net debt at 4th October/ 30th September (41,799) (52,815)
Notes to the Financial Statements (cont'd)
19 ANALYSIS OF NET DEBT
At Cash flow Non-cash At
1st October flows 4th October
2002 2003
#000 #000 #000 #000
Cash in hand, at bank 3,130 (175) - 2,955
Overdrafts and loans repayable on - - - -
demand
3,130 (175) - 2,955
Debt due after 1 year (39,682) (5,000) (31) (44,713)
Debt due within 1 year (16,000) 16,000 - -
Finance leases (263) 222 - (41)
(55,945) 11,222 (31) (44,754)
Net debt (52,815) 11,047 (31) (41,799)
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR USOBRORRURAA