RNS Number:8473P
Taylor & Francis Group PLC
17 September 2003
17 September 2003
TAYLOR & FRANCIS GROUP plc
STRATEGY CONTINUES TO DELIVER
Interim Results - for the six months ended 30 June 2003
* Turnover up 12% to #73.9 million - 17% at constant currency
* Normalised operating profit up 22%* to #17.8 million. Operating profit
up 7% to #11.5 million
* Normalised pre tax profit up 24%* to #16.5 million. Pre tax profit up
8% to #10.1 million
* Normalised diluted earnings per share up 26%* to 13.80p. Diluted
earnings per share up 2% to 6.56p
* Interim dividend per share up 10% to 1.60p
* Strong cash flow strengthens balance sheet
* Integration of CRC Press and Bios on track
* Acquisition Frank Cass and Co. Ltd. in July strengthens humanities
and social science portfolios
* Strategy for growth delivering - Group performing to our
expectations
* Excludes exceptional items of #2.1m and goodwill amortisation of #4.3m
Commenting on the Group's performance and prospects, Chief Executive David Smith
said:
"The results for the first half demonstrate that the Group's strategy continues
to deliver, even in challenging market conditions. The journals division
performed well with strong renewal rates and a good launch programme. In the
books division, the good first half publication programme and encouraging US
sales led to a solid first half performance. The Group's performance was also
positively impacted by the early publication of several titles.
"Taylor & Francis continues to perform to our expectations and the combination
of the high quality nature of our portfolio, the reduced US cost base and the
tight control of costs across the business make the Board confident of another
successful year.
"We continue to look at ways to grow the business by strengthening the
portfolio, widening our customer base and internationalising our business
through a combination of well planned organic development and selected earnings
enhancing acquisitions. With a stronger position in the USA and an increasingly
diverse portfolio, we have a broader base from which to develop the Group and
enhance its prospects."
Enquiries:
Taylor & Francis Group plc Tel: 020 7583 9855
David Smith, Chief Executive
Tony Foye, Finance Director
Financial Dynamics Tel: 020 7831 3113
Tim Spratt / Charles Palmer
Chief Executive's Statement
Overview
The Group has reported a good set of results for the first six months of 2003
with turnover up 11.7%, to #73.9 million and profit before tax, exceptional
items and goodwill up 24%, to #16.5 million. This performance was underpinned by
solid organic growth in both turnover and profits coupled with the initial
contribution from the CRC Press group of companies ("CRC Press") acquired 8
April 2003. Taylor & Francis has again demonstrated the strength of its strategy
of combining organic growth with earnings enhancing acquisitions. During the
year to date the Group has made three acquisitions: Bios Scientific Publishers
Limited ("Bios") on 31 January, CRC Press in April and, on 28 July, Frank Cass &
Co. Limited ("Cass").
The journals division has performed well with strong renewal rates, despite the
difficulties created by a major subscription agent filing for US Chapter 11
bankruptcy protection in December 2002. 27 new journal titles were launched
during the first half and 32 titles were acquired with CRC Press. This activity
was reflected in the division's financial performance with journal turnover up
by 5.4% to #36.0 million (2002: #34.2 million). The books division also
performed well during the first half despite the widely reported softer market
conditions, with turnover up 18.4% to #37.9 million (2002: #32.0 million). US
book sales were encouraging and the division's results also included the maiden
contribution from CRC Press. During the first half the books division also
benefited from the early publication of a major annual Europa textbook and the
journals division was enhanced by the earlier publication of some journal
issues reflecting the more efficient organisation created last year.
Turnover
In common with most UK based international businesses, the Group's reported
sales have been materially adversely affected by the decline in the exchange
rates between the US dollar and sterling when compared to the same period in the
previous year. The Group receives over 60% of its revenues in US dollars and as
a consequence, when reporting results in sterling, the exchange rate movement
this year masks the underlying turnover growth. Average US dollar exchange rates
for the period were $1.61: #1, considerably weaker than the comparable rates in
2002 of $1.45: #1.
At constant exchange rates turnover from continuing business increased by 6.7%
(#4.5 million), with journal turnover growing by #3.1 million (8.9%) and books
by #1.4 million (4.5%).
Converted at actual exchange rates, turnover grew by 11.7% in the first six
months of the year, from #66.2 million to #73.9 million. Journal division sales
grew by 5.4% and the books division by 18.4%, helped by contributions from CRC
Press. Adjusting for CRC Press, turnover from continuing business converted at
actual exchange rates increased from #66.2 million to #66.9 million.
Books represented 51% of consolidated first half turnover (2002: 48%) and
journals 49% (2002: 52%). Due to the seasonality of the academic books market,
with higher sales typically occurring during the autumn academic adoption season
and with acquisitions included, we expect to see proportionately more book sales
in the second half year and consequently their percentage of total sales will
increase by the year end.
Operating profit
Operating profit before exceptional items and goodwill amortisation increased by
21.6%, from #14.6 million to #17.8 million, benefiting from organic growth, good
cost control and a maiden contribution of #1.4 million from CRC Press.
Under the Group's policy of selling forward anticipated surplus US dollar
receipts, during 2002 $40 million of 2003 US dollar receipts were sold forward
for sterling at an average exchange rate of $1.45: #1. This had a beneficial
effect on Group operating profit in the first half of 2003, which otherwise
reflects dollar based transactions at an average exchange rate of $1.61:#1. As a
result of this $40 million forward sale, there is little net impact from
exchange rate movements on the Group's operating profits for the first six
months compared to 2002.
Operating profit after exceptional costs of #2.1 million (2002: #0.4 million)
and goodwill amortisation of #4.3 million (2002: #3.6 million), was up by 7.4%,
to #11.5 million (2002: #10.7 million). The operating margin before goodwill
amortisation and exceptional items was 24%, compared to 22% in the first six
months of 2002, reflecting continued benefits of synergies from previous
reorganisations, integration of acquisitions and effective cost control. Also,
as previously noted, adverse exchange rate movements reduced turnover when
compared to 2002, by approximately #3.8 million, but had little net effect on
profits and this further enhances the operating margin. At constant exchange
rates the operating margin was 23%.
Exceptional items
Exceptional costs of #2.1 million relate primarily to costs associated with the
Group's participation in the BertelsmannSpringer auction process as well as
reorganisation costs. We have begun the integration of CRC Press which will be
completed during the first quarter of 2004. We anticipate the total costs of
integrating CRC Press will be around #1 million.
Interest
Net interest expense was unchanged at #1.3 million due to lower interest rates
which were offset by an increase in net debt to #90.8 million (2002: #45.4
million), primarily as a result of the acquisition of CRC Press. Net interest
cover has increased to 13.4 times, based on operating profit before exceptional
items and goodwill amortisation, compared to 11.2 times in 2002.
Profit before taxation
Profit before tax, excluding exceptional items and goodwill amortisation,
increased by 23.5%, to #16.5 million (2002: #13.3 million).
Taxation
Across the Group tax has been provided at 31.3% (2002: 29.5%) which reflects
disallowable exceptional items and an additional tax deduction for goodwill
amortisation arising on the acquisition of CRC Press. The effective tax rate of
44.5% (2002 40.9%) for the first half of the year is influenced by goodwill
amortisation and exceptional items.
EPS
Diluted earnings per share before exceptional items and goodwill amortisation
increased 25.9% to 13.80p per ordinary share, compared to 10.96p in 2002.
Dividend
The directors have declared an interim dividend of 1.60p (2002: 1.45p) per
ordinary share, representing an increase of 10.3%. This dividend is payable on
31 October 2003 to ordinary shareholders registered as of the close of business
on 26 September 2003.
Balance sheet
Intangible assets increased by #51.1 million, to #160.8 million compared to 31
December 2002. Of this increase, #56.7 million constitutes the provisional
goodwill arising from the acquisitions of CRC Press and Bios, which was offset
by ongoing amortisation and the effect of exchange rate movements.
Fixed assets have increased by #1.5 million since 31 December 2002, to #6.1
million, of which #1.2 million was acquired with CRC Press. The net underlying
increase reflects additional expenditure on information technology (mainly back
office and distribution systems) announced last year. The acquisition of CRC
Press also included #4.6 million in stock, which rose from #31.1 million to
#35.1 million.
Net debt increased #45.4 million, to #90.8 million compared to 30 June 2002
(#45.4 million). With #62.2 million spent on acquisitions during the period this
reflects the Group's strong cash generation. In connection with the acquisition
of CRC Press the Group obtained a three year, #165 million, multi-currency
revolving credit facility. This facility provides the Group with considerable
flexibility both in terms of minimising interest expenditure as well as managing
the effects of exchange rate movements on cash flows.
Deferred income, which represents cash received in advance of the publication of
journal issues, was up 4.4% to #31.7 million compared to 30 June 2002. The Group
receives a substantial proportion of its deferred income in US dollars and as
such this balance is subject to exchange rate conversion. At constant exchange
rates and after taking account of CRC Press, the underlying growth in deferred
income compared to 30 June 2002 was 2.5%. Deferred income is recognised as
turnover as journal issues are published.
Exchange rate management
Like most international publishing operations the Group has an exchange
translation exposure in its profit and loss account. The Group, as enlarged by
acquisitions, is in future expected to generate over 65% of its revenues and
incur around 50% of its costs in US dollars. The impact of exchange rates can
increase or reduce turnover or costs and can therefore affect the reported
sterling value of profits. The Group's policy is to protect its cashflow
primarily by entering into forward exchange contracts up to 12 months in advance
of an expected currency exposure. In respect of 2004's anticipated receipts the
Group has arranged forward contracts to convert $40 million into sterling at
average exchange rates of $1.576: #1, which together with the multi-currency
revolving credit facility cover a significant portion of any US dollar cash flow
exposure in 2004.
Rowecom
As reported in March 2003, Rowecom, a large journals subscription agent, filed
for US Chapter 11 bankruptcy protection in December 2002 and we now estimate
that the associated journal revenue lost by the Group for 2003 will be around
#1.2 million. During 2003 the Group has continued to supply journal issues to
customers affected by the Rowecom situation in the expectation that those
customers will renew again for 2004. An amount of #0.6 million has been treated
as a bad debt in these financial statements within operating profits, reflecting
the recognised sales value of 2003 journal issues supplied to those former
Rowecom customers up to 30 June 2003.
Strategic and operating review
Following the completion of the strategic review in the latter half of 2002, we
have identified a number of opportunities to develop and grow the business and
these centre around the following:
* strengthening and extending our product portfolio;
* extending our customer base; and
* balancing the geographical focus of the portfolio so that product
origination matches customer destination and specifically generating
more of our products from the US.
The acquisitions of CRC Press and Bios have strengthened our portfolio in the
Scientific, Technical and Medical areas and extended our customer base to
include more professionals in these and related segments, an important rationale
for both acquisitions. Importantly, the CRC Press acquisition has given the
Group greater economies of scale in our biggest single market, the USA, and
helped to increase the proportion of product originating from this market. We
now have a better balance between our Scientific, Technical and Medical and
Humanities and Social Science portfolios. These acquired products, whilst
having strong positions in their domestic markets, have international potential
as well.
To facilitate a more global approach to our publishing activities we have
reorganised the Group reporting structure into global books and journals
divisions. As a result, CRC Press, which is based in Florida, will become the
hub of our global scientific book publishing and our New York office will become
the US centre for humanities, social and behavioural science book publishing.
All back office activities for the USA will also be centralised in Florida. US
journal publishing will all be based at the Group's existing offices in
Philadelphia. It is anticipated that the US reorganisation will be complete by
the end of the first quarter 2004 and lead to a more efficient and customer
focused global business.
As announced at this time last year, we continue to invest in the technology
infrastructure of the Group to support existing initiatives and facilitate
future growth. The level of capital investment remains on track at around #3
million per annum and projects currently underway include installing new
management information systems, improving networks and upgrading our order
processing and distribution functions. Increasing the pace of our digital
content development is also a priority and during the coming year we shall be
investing further in the electronic delivery of our products to meet the
changing needs of our customers.
On 28 July 2003 the Group announced the acquisition, for an initial
consideration of #9.5 million, of Frank Cass & Co. Limited, a London based
humanities and social science publisher. The Cass publications will strengthen
the Group's portfolio in these important subject areas. The publications will
be integrated into Taylor & Francis' UK operations and will benefit from its
larger customer base and economies of scale.
Current trading and prospects
The strong journals portfolio continues to generate good growth, with 59 new and
acquired journal titles to be published in 2003 and 80 net new journal titles
planned for 2004, which will bring the total number of journal titles expected
to be published in 2004 to 880. The books business continues to perform well,
despite difficult market conditions and with over 2,300 new book titles
scheduled for publication in 2003, is well positioned for the traditional autumn
sales upturn.
The Scientific, Technical, Medical/Academic markets remain challenging. The
Group however continues to perform to our expectations and the combination of
the high quality nature of our portfolio, the reduced US cost base and the tight
control of costs across the business makes the Board confident of another
successful year. We continue to look at ways to grow the business by
strengthening the portfolio, widening our customer base and internationalising
our business through a combination of well planned organic development and
selected earnings enhancing acquisitions. With a stronger position in the USA
and an increasingly diverse portfolio, we have a broader base from which to
develop the Group and enhance its prospects.
David J Smith
Chief Executive
17 September 2003
Consolidated Profit & Loss Account
For the six months ended 30 June 2003
Unaudited Unaudited
2003 2003
Before Goodwill
goodwill
amortisation amortisation Unaudited Unaudited Audited
and and 2003 2002 2002
exceptional exceptional 6 months 6 months 12 months
items items Total total Total
Note #'000 #'000 #'000 #'000 #'000
Turnover 2
Continuing operations 66,874 - 66,874 66,185 147,365
Acquisitions 7,048 - 7,048 - -
73,922 - 73,922 66,185 147,365
Operating costs before goodwill
Amortisation 3 (56,130) (2,083) (58,213) (51,905) (114,203)
Goodwill amortisation - (4,256) (4,256) (3,619) (7,251)
Total net operating costs (56,130) (6,339) (62,469) (55,524) (121,454)
Operating profit
Continuing operations 16,391 (5,698) 10,693 10,661 25,911
Acquisitions 1,401 (641) 760 - -
17,792 (6,339) 11,453 10,661 25,911
Net interest payable (1,331) (1,303) (2,814)
Profit on ordinary activities before
Taxation 10,122 9,358 23,097
Tax on profit on ordinary activities (4,504) (3,824) (9,420)
Profit on ordinary activities after taxation 5,618 5,534 13,677
Dividends 4 (1,359) (1,242) (3,761)
Profit for the financial period transferred
To reserves 4,259 4,292 9,916
Earnings per ordinary share 5
Diluted (normalised) (p) 13.80 10.96 26.97
Diluted (p) 6.56 6.45 15.96
Basic (p) 6.60 6.55 16.12
The Board of Directors has approved this interim report.
Consolidated Balance Sheet
As at 30 June 2003
Unaudited Unaudited Audited
30 June 30 June 31 December
2003 2002 2002
#'000 #'000 #'000
Fixed assets
Intangible assets
160,718 114,135 109,658
Tangible assets
6,103 4,253 4,565
166,821 118,388 114,223
Current assets
Stocks
35,108 29,100 31,098
Debtors due within one year
38,181 28,748 34,754
Debtors due outside one year
657 1,422 1,028
Investments
- 524 11,988
Cash at bank and in hand
2,525 345 6,070
76,471 60,139 84,938
Creditors: amounts falling due within one year
Loans & overdrafts 2,204 30,250 43,005
Creditors 9,594 7,693 8,376
Proposed dividend 1,359 1,242 2,519
Corporation tax 9,787 9,354 9,288
22,944 48,539 63,188
Net current assets 53,527 11,600 21,750
Total assets less current liabilities 220,348 129,988 135,973
Creditors: amounts falling due after more than one year
Bank loans 91,118 16,062 -
Accruals and deferred income 47,690 38,311 58,089
81,540 75,615 77,884
Capital and reserves
Called up share capital 4,288 4,282 4,284
Share premium account 44,446 44,151 44,283
Reserve for own shares 1,267 2,111 1,267
Profit and loss account 31,539 25,071 28,050
Equity shareholders' funds 81,540 75,615 77,884
Consolidated Cash Flow Statement
For the six months ended 30 June 2003
Unaudited Unaudited Audited
6 months 6 months 12 months
2003 2002 2002
Note #'000 #'000 #'000
Net cash inflow/(outflow) from operating activities 8 2,532 (461) 31,008
Returns on investments and servicing of finance
Interest received 34 35 166
Interest paid (1,523) (1,489) (3,112)
Net cash outflow from returns on investments and servicing of finance (1,489) (1,454) (2,946)
Taxation
Corporation tax paid (3,015) (1,572) (5,088)
Overseas taxes paid (888) (411) (1,008)
Tax paid (3,903) (1,983) (6,096)
Capital expenditure and financial investment
Purchase of publishing goodwill (841) (305) (571)
Tangible fixed assets acquired (1,102) (1,627) (2,820)
Tangible fixed assets sold - - 113
Net cash outflow from investing activities (1,943) (1,932) (3,278)
Acquisitions
Purchase of business/subsidiary undertakings (net of cash and
overdrafts acquired) (62,194) - (2,946)
Net cash outflow from acquisitions (62,194) - (2,946)
Equity dividends paid (2,519) (2,242) (3,484)
Net cash (outflow)/inflow before use of liquid resources and financing (69,516) (8,072) 12,258
Management of liquid resources 10 11,988 4,977 (6,487)
Financing
Net loans advanced/(repaid) 52,982 (5,377) (4,790)
Payment of deferred consideration - - (844)
Proceeds (net) from share issues
167 217 351
Net cash inflow/(outflow) from financing 53,149 (5,160) (5,283)
(Decrease)/increase in cash 9 (4,379) (8,255) 488
Notes to the Unaudited Interim Statements
For the six months ended 30 June 2003
1 Basis of preparation
The interim statements have been prepared on the basis of the accounting
policies set out in the Taylor & Francis Group plc statements for the 12 months
ended 31 December 2002.
The financial information for the year ended 31 December 2002 is abridged from
the statutory accounts which have been reported on by the Company's auditors,
Deloitte & Touche and which have been filed at Companies House. The report of
the auditors thereon was unqualified and did not contain a statement under
section 237(2) or (3) of the Companies Act 1985.
The interim statements are unaudited but have been reviewed by the Company's
auditors.
The interim statements do not comprise statutory accounts within the meaning of
section 240 of the Companies Act 1985.
2 Analysis of turnover
Geographical analysis of turnover by destination
Unaudited Unaudited Audited
6 months 6 months 12 months
2003 2002 2002
#'000 #'000 #'000
United Kingdom 15,942 12,924 32,171
North America 31,009 27,502 62,196
Western Europe 11,545 10,918 24,854
Rest of the world 15,426 14,841 28,144
73,922 66,185 147,365
The above analysis shows turnover by geographical location of the customer or
agent through whom orders are placed.
Geographical analysis of turnover by origin
Unaudited Unaudited Audited
6 months 6 months 12 months
2003 2002 2002
#'000 #'000 #'000
United Kingdom 51,170 47,875 106,677
United States of America 19,193 15,182 34,324
Western Europe 3,559 3,128 6,364
73,922 66,185 147,365
Analysis of turnover by class of business
Unaudited Unaudited Audited
6 months 6 months 12 months
2003 2002 2002
#'000 #'000 #'000
Journals 35,994 34,156 70,998
Books 37,928 32,029 76,367
73,922 66,185 147,365
Notes to the Unaudited Interim Statements
For the six months ended 30 June 2003
3 Net operating costs
Unaudited Unaudited Audited
6 months 6 months 12 months
2003 2002 2002
#'000 #'000 #'000
Decrease/(increase) in stock of finished goods and work 249 (265) (807)
in progress
Raw materials and consumables 18,483 17,675 39,446
Depreciation of tangible and intangible fixed assets 5,214 4,372 8,743
Staff costs in total 14,888 12,736 24,711
Other operating charges (including exceptional items) 23,635 21,009 49,367
Other operating income - (3) (6)
62,469 55,524 121,454
The 2003 exceptional item relates mainly to the attempted acquisition of
BertelsmannSpringer.
4 Dividends
An interim dividend of 1.60p per share will be paid on 31 October 2003 to
ordinary shareholders registered at the close of business on 26 September 2003.
5 Earnings per share
Basic
The basic earnings per share calculation is based on profit on ordinary
activities after taxation of #5,618,000 (2002: #5,534,000 six months and
#13,677,000 twelve months). This profit on ordinary activities after taxation is
then divided by the weighted average number of shares in issue less those
non-vested shares held by an employee share ownership trust, which is 85,116,000
(2002: 84,519,000 six months and 84,823,000 twelve months).
Diluted
The diluted earnings per share calculation is based on the basic earnings per
share calculation above except that the weighted average number of shares
includes all dilutive options granted by the balance sheet date as if those
options had been exercised on the first day of the accounting period or the date
of the grant, if later, giving a weighted average of 85,641,000 (2002:
85,801,000 six months and 85,697,000 twelve months). In accordance with FRS14
the weighted average number of shares includes the estimated maximum number of
shares payable to the vendors of Routledge Publishing Holdings Limited assuming
that there are no claims for compensation by the Group that will reduce this
deferred consideration and assuming that the Company does not exercise its
option to pay the balance of deferred consideration in cash. The deferred
consideration shares are also assumed for the purposes of this calculation to
have been issued on 1 January 2003 at the closing mid-market share price on 28
June 2003 of #4.75, making 267,000 (2002: 374,000 six months and 280,000 twelve
months) ordinary shares potentially issued.
Notes to the Unaudited Interim Statements
For the six months ended 30 June 2003
5 Earnings per share (continued)
Diluted (normalised)
The diluted earnings per share (normalised) calculation has been made to allow
shareholders to gain a better understanding of the trading performance of the
Group. It is based on the diluted earnings per share calculation above except
profits are adjusted for goodwill amortisation and the after tax effect of
exceptional items as follows:
Unaudited Unaudited Audited
6 months 6 months 12 months
2003 2002 2002
#'000 #'000 #'000
Profit on ordinary activities after taxation 5,618 5,534 13,677
Goodwill amortisation 4,256 3,619 7,251
Exceptional items after tax 1,945 248 2,182
Normalised profit on ordinary activities after taxation 11,819 9,401 23,110
The table below sets out the adjustment in respect of diluted potential ordinary
shares:
Unaudited Unaudited Audited
6 months 6 months 12 months
2003 2002 2002
#'000 #'000 #'000
Weighted average number of shares used in basic earnings per share 85,116 84,519 84,823
calculation
Share options 258 908 594
Shares potentially to be issued or allotted 267 374 280
Weighted average number of shares used in diluted earnings per share
calculation 85,641 85,801 85,697
6 Reconciliation of movement in consolidated shareholders' funds
Unaudited Unaudited Audited
6 months 6 months 12 months
2003 2002 2002
#'000 #'000 #'000
Profit for the period 5,618 5,534 13,677
Dividends (1,359) (1,242) (3,761)
Retained profit for the period 4,259 4,292 9,916
Currency translation difference on foreign currency net investments (770) (2,476) (5,121)
Proceeds of new share issues 167 217 351
Decrease in reserve for own shares - - (844)
Opening shareholders' funds 77,884 73,582 73,582
Closing shareholders' funds 81,540 75,615 77,884
Notes to the Unaudited Interim Statements (continued)
For the six months ended 30 June 2003
7 Consolidated statement of total recognised gains and losses
Unaudited Unaudited Audited
6 months 6 months 12 months
2003 2002 2002
#'000 #'000 #'000
Profit attributable to shareholders
5,618 5,534 13,677
Currency translation difference on foreign currency net investments (770) (2,476) (5,121)
Total recognised gains and losses in the period 4,848 3,058 8,556
Total recognised gains and losses since last annual report 4,848 3,058 8,556
8 Reconciliation of operating profit to net cash inflow/(outflow) from
operating activities
Unaudited Unaudited Audited
6 months 6 months 12 months
2003 2002 2002
#'000 #'000 #'000
Operating profit 11,453 10,661 25,911
Depreciation and amortisation 5,214 4,372 8,743
Decrease/(increase) in stocks 249 (265) (807)
Decrease/(increase) in debtors 4,045 5,775 (29)
Decrease in creditors (18,429) (21,004) (2,810)
2,532 (461) 31,008
9 Reconciliation of net cash flow to movement in net debt
Unaudited Unaudited Audited
6 months 6 months 12 months
2003 2002 2002
#'000 #'000 #'000
(Decrease)/increase in cash net of overdrafts in the period (4,379) (8,255) 488
(Increase)/decrease in bank loans and loan notes (52,982) 5,377 4,790
Cash flow from (decrease)/increase in liquid resources (11,988) (4,977) 6,487
Change in net debt resulting from cash flows (69,349) (7,855) 11,765
Foreign exchange translation difference 3,499 1,134 2,010
Movement in net debt during the period (65,850) (6,721) 13,775
Opening net debt (24,947) (38,722) (38,722)
Closing net debt (90,797) (45,443) (24,947)
10 Management of liquid resources
Unaudited Unaudited Audited
6 months 6 months 12 months
2003 2002 2002
#'000 #'000 #'000
Cash withdrawn from/(invested in) deposit accounts 11,988 4,977 (6,487)
Cash flow from decrease/(increase) in liquid resources 11,988 4,977 (6,487)
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ILFVAARIRLIV
