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P R E L I M I N A R Y R E S U L T S 1 March 2006
P R E L I M I N A R Y R E S U L T S
1 March 2006
£m 2005 2004 % inc.
Revenue 152.5 148.9 2.4%
Operating profit before exceptional items 21.3 20.7* 2.8%
Operating margin 13.9% 13.9%
Exceptional items 6.3 -
Net interest (1.8) (2.7)
Profit before tax 25.8 18.0 43.0%
Earnings per share 11.5p 8.0p 44.1%
Earnings per share before exceptional items 8.7p 8.0p 8.5%
Dividend per share 4.4p 4.0p 10.0%
Financial highlights 2005
* Including the share of the loss of the joint venture
Key features
Growth in each major trading region
Excellent Cutisin performance
UK pricing pressure
Adverse foreign exchange
Higher input costs
Cutisin investment progressing well
Substantial reduction in net debt
Sales analysis 2005
Sales change vs 2004
2005
Volume 1.7%
Price / Mix (1.6)%
Operations 0.1%
Foreign Exchange 2.3%
Total 2.4%
Regional sales by destination 2005
Sales change vs 2004
Strong performance in Continental Europe
Adverse impact of Czech Crown
Subdued UK market
£m 2005 Volume Price / Mix Operations Exchange Total
Europe 88.9 1.3% (2.9)% (1.6)% 2.4% 0.8%
Regional sales by destination 2005
Sales change vs 2004
Slower second half in US
Supply restricted to other markets
Pricing stable
£m 2005 Volume Price / Mix Operations Exchange Total
Americas 31.4 0.9% 0.6% 1.5% 1.3% 2.8%
Regional sales by destination 2005
Sales change vs 2004
Solid performance in Australia / New Zealand
Continued growth in Japan
Volume gains in South East Asia
Opportunities developing in China
£m 2005 Volume Price / Mix Operations Exchange Total
Asia/Pacific 32.2 3.6% (0.1)% 3.5% 3.2% 6.7%
Regional sales by destination 2005
Sales change vs 2004
Full Year
2005
£m Volume Price / Mix Operations Exchange Total
Europe 88.9 1.3% (2.9)% (1.6)% 2.4% 0.8%
Americas 31.4 0.9% 0.6% 1.5% 1.3% 2.8%
Asia/Pacific 32.2 3.6% (0.1)% 3.5% 3.2% 6.7%
Total 152.5 1.7% (1.6)% 0.1% 2.3% 2.4%
Income statement 2005
£m 2005 2004
Revenue 152.5 148.9
Operating profit before exceptional items 21.3 20.7*
Operating margin 13.9% 13.9%
Exceptional items 6.3 -
Net interest (1.8) (2.7)
Profit before tax 25.8 18.0
Tax 7.1 5.2
Profit for the year 18.7 12.9
* Including the share of the loss of the joint venture
Earnings and dividend 2005
2005 2004
Earnings per share
Basic 11.5p 8.0p
Diluted 11.4p 7.9p
Before exceptional items 8.7p 8.0p
Dividend per share 4.4p 4.0p
Balance sheet
£m 2005 2004
Non-current assets 117.3 106.1
Net current assets 27.9 27.4
Non-current liabilities (83.8) (80.2)
61.4 53.3
Share capital and reserves 71.4 67.7
Retained losses (10.0) (14.4)
61.4 53.3
Net debt (17.7) (25.5)
Gearing 28.8% 47.8%
Cash flow
£m 2005 2004
Net cash inflow from operating activities 28.5 28.3
Net interest paid (1.8) (3.2)
Taxation (6.4) (5.0)
Capital expenditure (15.3) (11.5)
Acquisitions and disposals 0.0 (1.6)
Sale of land 7.3 0.0
Equity dividend paid (6.6) (5.8)
Net cash flow before financing 5.7 1.2
Issue of share capital 0.3 0.4
Exchange 1.8 (0.4)
Decrease in net debt 7.8 1.2
Interest cover 11.7 7.7
Outlook
New products
Solid start to 2006
Cost reduction
Further investment in Cutisin
