RNS Number:7907S
De Vere Group PLC
03 December 2003
Embargoed for release 0700a.m. Wednesday 3 December 2003
DE VERE GROUP PLC
Results for the year ended 28 September 2003
Key Financials
Year to 28 Year to 29/ Percentage
/9/03 9/02 change
Turnover #312.2m #293.9m +6.2%
EBITDA* #78.2m #75.0m +4.2%
Operating cash flow + #77.1m #69.2m +11.4%
Operating profit* #54.7m #51.9m +5.4%
Profit before tax* #39.7m #37.7m +5.3%
Profit before tax #30.8m #38.5m -20.0%
EPS* 24.50p 23.55p +4.0%
Total dividend per share 11.70p 11.30p +3.5%
* Before exceptional items which include costs of #7.3m, an interest charge of
#2.3m and a tax credit of #7.1m. Also excluding one-off property profits of
#0.6m (2002: #0.5m)
+ Before exceptional cash outflows of #10.1m (2002: #11.0m) primarily relating
to special contributions to the pension scheme
Key Highlights
* Both hotel brands continued to outperform the market:
- De Vere Hotels like-for-like RevPAR up 2.4% against market decline of 2%
- Village like-for-like RevPAR up 2.1% to #41.17, a premium of 37.9% over
its peers with total EBITDA increasing by 10.3%
* Greens EBITDA up 44.6% to #6.9m driving investment returns to over 11%
* Five new Villages in the development pipeline which will bring the total
to 19 by 2005
* Carl Leaver joins the Group as new Chief Executive
Peter Daresbury, Chairman, commented:
"This is another good set of results by the entire Group and once again the
strength of our two hotel brands has enabled us to continue to outperform the
sector. We welcome Carl Leaver as Chief Executive, who brings significant sector
experience and a strong operational background to the role.
Trading patterns remain volatile, although recent booking trends are more
encouraging. We remain confident that, with the strength of our brands, we will
continue to deliver long-term growth."
Enquiries:
Carl Leaver, Chief Executive 01928 712111
Roger Stubbs, Finance Director
Jonathan Glass / Simon Sporborg Brunswick 020 7404 5959
Chairman's Statement
I am pleased to report another good performance by De Vere Group. For
the second consecutive year, the appeal of our two hotel brands to
both the business and leisure markets has delivered improved sales and
RevPAR against a market background of declining RevPARs for provincial
hotels.
Group turnover for the year ended 28 September 2003 increased by 6.2%
to #312.2m (2002: #293.9m). Operating profit on a pre-exceptional
basis was up by 5.4% to #54.7m from #51.9m. Operating cash flow before
exceptional items increased by 11.4% to #77.1m (2002: #69.2m) and
profit before tax, excluding exceptional items, was up by 5.3% to
#39.7m (2002: #37.7m). After exceptional items, profit before tax was
#30.8m (2002: #38.5m).
Earnings per share, excluding exceptional items, increased to 24.50
pence (2002: 23.55 pence). Reported earnings per share were 22.84
pence.
Dividend
The Board is recommending a final dividend of 7.7 pence per Ordinary
share, payable on 27 February 2004 to shareholders on the register on
30 January 2004. This final dividend, together with the interim
dividend of 4.0 pence per share paid on 4 July 2003, gives a total of
11.7 pence, an increase of 3.5% on last year.
Board
I am delighted that Carl Leaver joined the Group as Chief Executive
on 1 September 2003. Carl joined from Whitbread plc where, for three
years, he held the position of Managing Director, Travel Inn, managing
its roll-out programme. Prior to this he was Operations Director of
Marriott Country Club golf resort hotels. Carl brings a fresh approach
based on significant sector experience, strong operational background
and a personal energy to take the Group forward.
I would also like to thank Paul Dermody for his significant
contribution over 40 years of service, culminating in the last three
and a half years as Chief Executive. Most significantly he led the
Group's transformation to a focused hotels and health & fitness
business, which has performed strongly despite difficult market
conditions. We wish him all the best for the future.
People
We continually strive to achieve excellent customer service, delivered
with enthusiasm and passion, and regularly review public perception.
The results clearly tell us that De Vere Group has employees who make
a difference to our business and it is their commitment that has
helped deliver another year of strong results. On behalf of the Board,
I would like to thank all the teams for their contribution to the
business.
CHIEF EXECUTIVE'S STATEMENT
Our 2003 results demonstrate the Group's ability to deliver a robust
performance in what has been a subdued trading climate for the
industry. There is no doubt that De Vere Group holds a strong position
in its chosen sectors and the excellent operating reputation of its
two hotel brands, De Vere Hotels and Village Hotels & Leisure Clubs,
is well-deserved.
During my first three months I have visited every operating unit to
review operations first-hand. I have been struck by the genuine
enthusiasm of all our people and the passion they have for the Group.
This gives me confidence that we are in a strong position to grasp
evident opportunities to improve core performance, aided by enhanced
systems and processes, as well as through a future market recovery.
One of my key responsibilities will be to ensure a rigorous approach
to capital allocation, directing expansionary capital to the highest
returning investments. In particular, I have been impressed by the
high cash returns generated from Village developments and the roll-out
of this unique brand will continue to be a priority for the Group with
five new Villages in the pipeline.
De Vere, having proven itself to be the leading operator of four and
five-star golf and resort hotels in the UK, also provides value
enhancing growth potential, likely through less capital intensive
routes. Our leading timeshare business, De Vere Resort Ownership, adds
further strength to our resort proposition.
Greens, our standalone health & fitness brand, is well-positioned in
the adult segment, differentiated from much of the competition which
is targeting families. Nevertheless, short-term market conditions
remain challenging. Therefore, for the moment, I believe that a period
focused on improving operational performance is in the best interests
of shareholders.
In summary, I am pleased with what I have found since joining a Group
which already has an excellent track record of operating results. I am
confident that there are exciting and highly accessible opportunities
to grow shareholder value in the future and I look forward to 2004
with optimism.
OPERATING REVIEW
De Vere Hotels
At the year end, De Vere Hotels had 21 hotels with 3,310 rooms (2002:
3,298 rooms), and 22,000 health & fitness members (2002: 23,500).
Turnover at De Vere Hotels rose 3.0% to #183.2m (2002: #177.8m).
EBITDA, before exceptional items, decreased by 1.8% to #47.5m (2002:
#48.4m) and operating profit on the same basis decreased by 1.2% to
#34.8m (2002: #35.3m).
The first quarter of the 2003 financial year began strongly against a
weak prior year comparator, but during the second quarter, trading was
affected by the uncertain economic and political environment. Despite
a continued softness in the large events market, a strengthening in
demand for small events in the second half, coupled with consistent
leisure break demand throughout the year, increased total sales by
3.0%.
The strategy of adopting a robust approach to pricing across all
markets was maintained - a stance made possible only by the strength
of the brand. It was expected that this would affect occupancy.
However, the eventual impact was only a marginal decrease of 0.3
points to 73.9% on a like-for-like basis, yet average room rate rose
by 2.8% to #82.59. Both total turnover and RevPAR rose by 2.4% whilst
RevPAR in the upper provincial market declined by 2%, thereby
increasing De Vere's premium by almost six percentage points.
The switch in mix from large events to leisure impacted margins as the
leisure market is more expensive to service; this was more clearly
felt in the first seven months.
The fully refurbished De Vere Cavendish St James's has now traded for
nine months, having been relaunched during a difficult year for the
London market. Over the whole year, occupancy was sustained at the
London market average by sales to the De Vere leisure customer base
and the corporate mix and consequently average room rate are steadily
improving.
Opportunities to leverage the De Vere brand continue with the roll-out
of our five-star timeshare operation, De Vere Resort Ownership, which has
achieved occupancy of 96.9%, excluding maintenance weeks, with an
average of 630 guests per night. The additional development phase at
De Vere Slaley Hall has been completed, bringing lodge availability to
140 (2002: 126) across the three resort properties.
Village Hotels & Leisure Clubs
At the year end, there were 14 Village Hotels & Leisure Clubs with
1,245 rooms (2002: 1,243). Health & fitness membership remained steady
at 57,000 members (2002: 56,800).
Turnover at Village rose 11.8% to #71.8m (2002: #64.2m). On a
like-for-like basis, sales grew by 4.6%. Before exceptional items,
EBITDA grew by 10.3% to #21.2m (2002: #19.2m) and operating profit
increased by 16.9 % to #15.6m (2002: #13.4m).
High occupancy of 79% was maintained, against occupancy of 65% in the
rest of the mid market, and RevPAR increased by 2.1%, driven by an
improvement in average room rate which also rose by 2.1% to #52.01.
Village now operates at a RevPAR premium of 37.9% over its peers.
The most recently opened Village in Newcastle continues to perform
well and has traded impressively since it opened in June 2002. The
development pipeline for 2004/05 is led by the opening of Village
Maidstone in Summer 2004, followed by Village Walsall, a leasehold
site which is due to open in December 2004. Openings at Bournemouth
and Birmingham remain on track for late 2005 and planning permission
has recently been received for the development of Village Hull, which
will bring the total number of sites to 19.
The focus remains on driving forward the roll-out programme for
Village and maintaining the high levels of occupancy and returns
generated from this growing brand.
Greens
Greens continues to progress. Membership grew to 64,000 by the
year-end (2002: 59,300). Total turnover increased by 26.2% to #30.3m
(2002: #24.0m) and, on a like-for-like basis, turnover increased by
1.2% for the year. EBITDA increased to #6.9m (2002: #4.8m) and an
operating profit of #2.3m was achieved (2002: #1.3m). These results
reflect the increased focus on profit conversion, although the good
summer weather slightly decreased the frequency of visits by members
and subsequent onsite spend was down as a result.
The focus for Greens remains on increasing profitability in all areas
of the business and generating improved returns.
G&J Greenall
Turnover decreased by 3.3% to #26.9m (2002 #27.9m) as a result of
reduced low margin own label sales in the UK. Despite a rise in
material and energy costs, operating profit was maintained at #1.9m by
growth in sales of Greenall's brands in international and UK markets;
this growth helped to maintain market share of UK production.
Production of white spirit, which is expressed in terms of litres of
pure alcohol (lpa), increased to over 12m lpa (2002: 11.5m) as exports
of Greenall's gin and bulk vodka to the USA increased.
Financial Review
Exceptional items
For the period from April 1997 to December 1999, a De Vere Group
subsidiary company treated its golf & leisure subscription revenues as
exempt from VAT. HM Customs & Excise contended that this income should
be liable to VAT at the standard rate.
A VAT tribunal hearing took place in December 2002 and an adverse
judgement was received in April 2003. Consequently, in the half-year
accounts, a provision was made of #11.5 million to cover the VAT and
interest elements of this liability and a deferred tax credit of #2.2
million was also recognised.
Following further discussions with HM Customs & Excise, the Board has
subsequently agreed to settle the VAT and interest liability at a
reduced sum of #9.5 million and this amount has been charged to the
profit and loss account in these accounts, along with a deferred tax
credit of #2.0 million.
In addition an exceptional Corporation tax credit of #5.1 million has
been recognised due to the expected recovery of Advance Corporation
Tax previously written-off as irrecoverable.
The net effect of these two exceptional items, together with a surplus
on disposal of properties of #0.6 million, is a reduction in profit
after tax of #1.9 million.
Taxation
The tax charge represents 30.7% of profit before tax excluding
exceptional items (2002: 30.2%). The actual tax payable over the next
two years will be minimal due to the availability of brought forward
tax losses and accelerated capital allowances. During the year various
tax issues relating to earlier years have been agreed, which will
result in a cash repayment of #19m including the #5.1m relating to
Advance Corporation Tax previously written-off.
Cashflow and borrowings
Due to the difficult market conditions all UK hoteliers have faced
this year, a cautious approach to capital expenditure was taken
limiting spend to #38.2 million. Consequently, borrowings as at 28
September 2003 amounted to #222.5 million (2002: #228.1 million), a
reduction of #5.6 million. Gearing was 38.3% (2002: 40.5%).
On 18 December 2002 a private placement of US $100 million (#63.3
million) Guaranteed senior loan notes was successfully completed. The
principal and interest payable on these loan notes has been hedged
into Sterling for their full ten year life; the Sterling interest cost
was 0.75% over LIBOR until 24 September 2003 and a fixed rate of 7.15%
until 18 December 2012. On 24 September 2003 the remaining 7% Convertible
Subordinated Bonds were repaid from a combination of theGuaranteed senior loan
notes and the Group's #175 million Revolving Credit Facility.
Current Trading & Outlook
During the first nine weeks of the current financial year, total Group
turnover has increased by 3.4% on last year's strong comparative
period. Total turnover for De Vere Hotels has increased by 1.3% and
like-for-like RevPAR by 0.5%. For Village Hotels & Leisure Clubs, total
turnover has increased by 1.2% and like-for-like RevPAR by 4.7%. Greens total
turnover has increased by 8.0%.
Trading patterns remain volatile, although recent booking trends are
more encouraging. We remain confident that, with the strength of our
brands, we will continue to deliver long-term growth.
DE VERE GROUP PLC
PRELIMINARY ANNOUNCEMENT
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 28 September 2003
Before Exceptional 2003 2002
Exceptional Items #000 #000
Items #000
Note #000
---- -------- -------- ------- ------
TURNOVER 2 312,231 - 312,231 293,888
COST OF SALES (180,374) - (180,374) (173,037)
-------- -------- ------- ------
GROSS PROFIT 131,857 - 131,857 120,851
Other operating
expenses (net) (77,191) (7,268) (84,459) (68,695)
-------- -------- ------- ------
OPERATING PROFIT 2 54,666 (7,268) 47,398 52,156
-------- -------- ------- ------
Continuing operations 54,666 - 54,666 51,856
Exceptional items 3 - (7,268) (7,268) 300
-------- -------- ------- ------
Surplus on disposal of
properties 3 - 606 606 508
-------- -------- ------- ------
PROFIT/(LOSS) ON
ORDINARY ACTIVITIES
BEFORE INTEREST 54,666 (6,662) 48,004 52,664
Interest payable (net) (14,930) (2,255) (17,185) (14,132)
-------- -------- ------- ------
PROFIT/(LOSS) ON
ORDINARY ACTIVITIES
BEFORE TAXATION 39,736 (8,917) 30,819 38,532
Taxation on
profit/(loss) on
ordinary activities 4 (12,199) 7,058 (5,141) (11,475)
-------- -------- ------- ------
PROFIT/(LOSS) ON
ORDINARY ACTIVITIES
AFTER TAXATION 27,537 (1,859) 25,678 27,057
-------- --------
Ordinary dividends 5 (13,251) (12,679)
------- ------
RETAINED PROFIT FOR
THE YEAR 12,427 14,378
======= ======
EARNING PER SHARE
Basic 6 22.84p 24.19p
Diluted 6 22.77p 23.89p
EARNINGS PER SHARE EXCLUDING EXCEPTIONAL ITEMS
Basic 6 24.50p 23.55p
Diluted 6 24.13p 23.36p
DE VERE GROUP PLC
PRELIMINARY ANNOUNCEMENT
CONSOLIDATED BALANCE SHEET
at 28 September 2003
2003 2002
Note #000 #000
------ --------- ---------
FIXED ASSETS
Tangible assets 859,114 848,473
Investments 10,100 6,804
--------- ---------
869,214 855,277
--------- ---------
CURRENT ASSETS
Stocks 14,296 14,078
Debtors amounts falling due - within one year 42,629 31,254
- after more than one year 9,143 8,415
Cash at bank and in hand 1,387 5,460
--------- ---------
67,455 59,207
CREDITORS: amounts falling due within one year
Convertible subordinated bonds - (109,673)
Other creditors (99,475) (103,239)
--------- ---------
NET CURRENT LIABILITIES (32,020) (153,705)
--------- ---------
TOTAL ASSETS LESS CURRENT LIABILITIES 837,194 701,572
CREDITORS: amounts falling due in more than
one year (213,860) (117,313)
PROVISIONS FOR LIABILITIES AND CHARGES (42,897) (21,654)
--------- ---------
NET ASSETS 580,437 562,605
========= =========
CAPITAL AND RESERVES
Called up share capital 25,272 24,938
Share premium 7 7,388 2,317
Revaluation reserve 7 99,371 99,611
Other reserves 7 271,133 271,133
Profit and loss account 7 177,273 164,606
--------- ---------
SHAREHOLDERS' FUNDS 580,437 562,605
========= =========
DE VERE GROUP PLC
PRELIMINARY ANNOUNCEMENT
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 28 September 2003
2003 2002
Note #000 #000
------ -------- --------
NET CASH INFLOW FROM OPERATING ACTIVITIES BEFORE -------- --------
REORGANISATION COSTS 8 77,111 69,213
Net cash outflow in respect of reorganising and
restructuring costs (10,134) (11,016)
-------- --------
NET CASH INFLOW FROM OPERATING ACTIVITIES 66,977 58,197
RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
-------- --------
Interest received 49 245
Interest paid (11,242) (11,431)
Interest element of finance lease rental payments (3,024) (3,119)
-------- --------
NET CASH OUTFLOW FROM RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE (14,217) (14,305)
TAX PAID (473) (143)
CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
-------- --------
Purchase of tangible fixed assets (38,191) (56,464)
Purchase of investments (2,718) -
Sale of tangible fixed assets 1,853 6,074
-------- --------
NET CASH OUTFLOW FROM CAPITAL EXPENDITURE AND
FINANCIAL INVESTMENT (39,056) (50,390)
DIVIDENDS PAID (12,739) (12,120)
----------------
-------- --------
NET CASH INFLOW/(OUTFLOW) BEFORE FINANCING 492 (18,761)
FINANCING
-------- --------
Issue of Ordinary share capital 5,405 2,158
(Decrease)/increase in amounts borrowed (12,131) 19,569
-------- --------
NET CASH (OUTFLOW)/INFLOW FROM FINANCING (6,726) 21,727
-------- --------
(DECREASE)/INCREASE IN CASH 8 (6,234) 2,966
======== ========
DE VERE GROUP PLC
PRELIMINARY ANNOUNCEMENT
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the year ended 28 September 2003
2003 2002
#000 #000
-------- --------
Total recognised gains and losses for the year 25,678 27,057
Prior year adjustment - FRS19 - (1,259)
-------- --------
Total recognised gains and losses since the last annual
accounts 25,678 25,798
======== ========
NOTE OF HISTORICAL COST PROFITS AND LOSSES
for the year ended 28 September 2003
2003 2002
#000 #000
-------- --------
Reported profit on ordinary activities before
taxation 30,819 38,532
Difference between a historical cost depreciation
charge and the actual depreciation charge calculated
on the revalued amount 240 240
-------- --------
Historical cost profit on ordinary activities
before taxation 31,059 38,772
======== ========
Historical cost profit for the year retained after
taxation and dividends 12,667 14,618
======== ========
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
for the year ended 28 September 2003
2003 2002
#000 #000
-------- --------
Profit attributable to Ordinary shareholders of the Company 25,678 27,057
Ordinary dividend (13,251) (12,679)
-------- --------
12,427 14,378
Shares issued (net of costs) 5,405 2,158
-------- --------
NET MOVEMENT IN SHAREHOLDERS' FUNDS 17,832 16,536
Opening shareholders' funds 562,605 546,069
-------- --------
Closing shareholders' funds 580,437 562,605
======== ========
DE VERE GROUP PLC
PRELIMINARY ANNOUNCEMENT
NOTES
for the year ended 28 September 2003
1) BASIS OF THE ACCOUNTS
The financial information set out in the Preliminary Announcement has been
prepared in accordance with applicable UK accounting standards under the
historical cost convention with the exception of Hotel and Health & Fitness
properties which, under the transitional provisions of FRS15 - Tangible Fixed
Assets, are included at their 1999 valuations. Since 1999 it has been Group
policy not to revalue fixed assets.
The Preliminary Announcement for the financial year ended 28 September 2003 has
been extracted from the Group's audited 2003 statutory accounts, upon which the
auditors' opinion is unqualified. This announcement does not constitute Full
Accounts within the meaning of section 240 of the Companies Act 1985. The 2002
comparatives have been extracted from the audited accounts as filed with
Companies House.
2) SEGMENTAL INFORMATION
2a) Analysis of turnover by class of business
2003 2002
#000 #000
----------- -----------
De Vere 183,218 177,808
Village 71,758 64,210
Greens 30,313 24,012
G&J Greenall 26,942 27,858
----------- -----------
312,231 293,888
=========== ===========
DE VERE GROUP PLC
PRELIMINARY ANNOUNCEMENT
NOTES (cont'd)
for the year ended 28 September 2003
2) SEGMENTAL INFORMATION (cont'd)
2b) Analysis of operating profit by class of business
Before
Exceptional Exceptional Total Total
items items 2003 2002
#000 #000 #000 #000
--------- --------- --------- ---------
De Vere 34,835 (2,423) 32,412 35,554*
Village 15,636 (4,845) 10,791 13,378
Greens 2,321 - 2,321 1,318
G&J Greenall 1,874 - 1,874 1,906
--------- --------- --------- ---------
54,666 (7,268) 47,398 52,156
========= ========= ========= =========
* The De Vere operating profit for 2002 includes #0.3m of compensation following
the postponement of The Ryder Cup in 2001.
2c) Net assets by class of business
2003 2002
#000 #000
----------- -----------
De Vere 550,944 537,581
Village 186,957 185,608
Greens 61,688 63,241
G&J Greenall 3,329 4,307
----------- -----------
802,918 790,737
Less: Net borrowings (222,481) (228,132)
----------- -----------
580,437 562,605
=========== ===========
3) EXCEPTIONAL ITEMS
2003 2002
#000 #000
--------- --------
Operating exceptional items:
VAT on leisure and golf subscription income (7,268) -
Ryder Cup compensation received - 300
--------- --------
(7,268) 300
========= ========
Non-operating exceptional items:
Surplus on disposal of properties 606 508
========= ========
Exceptional interest charge:
VAT on leisure and golf subscription income (2,255) -
========= ========
DE VERE GROUP PLC
PRELIMINARY ANNOUNCEMENT
NOTES (cont'd)
for the year ended 28 September 2003
3) EXCEPTIONAL ITEMS (cont'd)
For the period from April 1997 to December 1999, a De Vere Group subsidiary
company treated its leisure and golf subscription revenues as exempt from VAT.
HM Customs & Excise contended that this income should be liable to VAT at the
standard rate and in July 2000 raised a VAT assessment.
Following a VAT tribunal hearing in December 2002, an adverse judgement was
received in April 2003. The Board has subsequently agreed to settle the
liability which equates to VAT and costs of #7.3m and interest of #2.3m. In
addition a deferred tax credit of #2.0m has been recognised in respect of this
item resulting in a net charge to the profit and loss account of #7.5m.
This issue was previously disclosed as a contingent liability in the notes to
the Group accounts for the year ended 29 September 2002.
In the prior period, the operating exceptional item of #0.3m is the compensation
in respect of committed income not received due to the postponement of the Ryder
Cup until September 2002 following the events of 11 September 2001.
4) TAXATION
2003 2002
#000 #000
----------- ----------
UK Corporation tax
- pre- exceptional items - -
- adjustment in respect of prior years (12,229) -
- ACT previously written-off (5,060) -
- other operating exceptional items - 90
----------- ----------
(17,289) 90
Overseas tax 335 382
----------- ----------
Total current tax (16,954) 472
Deferred tax 22,095 11,003
----------- ----------
5,141 11,475
=========== ==========
During the year the Group has recognised the recovery of Advance Corporation Tax
previously written-off of #5.1m. This has been disclosed as an exceptional
credit within the tax charge.
The 2003 deferred tax charge includes a #2.0m credit in respect of the
exceptional charges relating to the golf and leisure VAT appeal.
DE VERE GROUP PLC
PRELIMINARY ANNOUNCEMENT
NOTES (cont'd)
for the year ended 28 September 2003
A full deferred tax provision is made for deferred tax assets and liabilities
arising from timing differences, between the recognition of gains and losses in
the financial statements and their recognition in tax computations, with the
exception of timing differences arising from the revaluation of, or gains rolled
over into fixed assets for which there is no binding agreement to sell or on the
undistributed profits of overseas subsidiaries. No provision is made where, on
the basis of all available evidence at the balance sheet date, it is more likely
than not that the taxable gain will be rolled over into replacement assets and
charged to tax only where the replacement assets are sold. Deferred tax is
calculated at the rates at which it is estimated the tax will arise. The
deferred tax provision has not been discounted.
5) ORDINARY DIVIDENDS
2003 2002 2003 2002
pence pence #000 #000
--------- -------- -------- --------
Interim (paid on 4 July 2003) 4.00 3.95 4,489 4,429
Proposed final 7.70 7.35 8,762 8,250
--------- -------- -------- --------
11.70 11.30 13,251 12,679
========= ======== ======== ========
The final dividend is expected to be paid on 27 February 2004 to holders of
Ordinary shares on the register at close of business on 30 January 2004. The
provisional ex-dividend date for the Ordinary shares is 28 January 2004.
6) EARNINGS PER SHARE
Basic earnings per share is calculated with reference to the earnings
attributable to Ordinary shareholders of #25,678,000 (2002: #27,057,000) and the
weighted average number of Ordinary shares in issue during the year of
112,402,000 (2002: 111,830,000).
Diluted earnings per share is basic earnings per share adjusted for all dilutive
share options and the effect of the conversion into fully paid Ordinary shares
of all convertible subordinated bonds for 2002. Diluted earnings for the year
were #31,038,000 (2002: #32,417,000) and the weighted average number of ordinary
shares was 136,333,000 (2002: 135,705,000)
Adjusted earnings per share figures are disclosed based on the elimination from
earnings of exceptional items.
DE VERE GROUP PLC
PRELIMINARY ANNOUNCEMENT
NOTES (cont'd)
for the year ended 28 September 2003
2003 2002
pence pence
--------- ---------
Basic:
Earnings per Ordinary share 22.84 24.19
Exceptional items net of taxation 1.66 (0.64)
--------- ---------
Adjusted basic earnings per share 24.50 23.55
========= =========
Diluted:
Earnings per Ordinary share 22.77 23.89
Exceptional items net of taxation 1.36 (0.53)
--------- ---------
Adjusted diluted earnings per share 24.13 23.36
========= =========
7) RESERVES
Share Revaluation Other Profit Total
premium reserve reserve and loss
account
#000 #000 #000 #000 #000
At 29 September 2002 2,317 99,611 271,133 164,606 537,667
Premium on shares 5,071 - - - 5,071
issued
Realised - (240) - 240 -
Profit for the year - - - 12,427 12,427
-------- -------- -------- -------- --------
At 28 September 2003 7,388 99,371 271,133 177,273 555,165
======== ======== ======== ======== ========
8) NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
a) Operating profit before interest is reconciled to net cash inflow from
operating activities as follows:
2003 2002
#000 #000
--------- ---------
Operating profit 47,398 52,156
Depreciation 23,561 23,186
Decrease in provision for liabilities (852) (1,205)
Share of operating profit of joint venture (578) (273)
(Increase)/decrease in stocks (218) 140
Decrease/(increase) in debtors 5,008 (4,132)
Increase/(decrease) in creditors 2,792 (659)
--------- ---------
Net cash inflow from operating activities 77,111 69,213
========= =========
8) NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT (cont'd)
b) Reconciliation of net cash flow to movement in net borrowings
2003 2002
#000 #000
--------- ----------
(Decrease)/increase in cash (6,234) 2,966
Cash inflow/(outflow) from movement in borrowings 12,131 (19,569)
--------- ----------
Change in net borrowings resulting from cash flows 5,897 (16,603)
Other non-cash adjustments to long term borrowings (246) (243)
--------- ----------
Movement in net borrowings 5,651 (16,846)
Opening net borrowings (228,132) (211,286)
--------- ----------
Closing net borrowings (222,481) (228,132)
========= ==========
c) Analysis of changes in net borrowings during the year
Non cash
2003 Items Cashflow 2002
#000 #000 #000 #000
--------- --------- --------- ---------
Cash at bank and in hand 1,387 - (4,073) 5,460
Bank overdrafts (3,036) - (2,161) (875)
--------- --------- --------- ---------
(1,649) - (6,234) 4,585
Other short-term (6,972) - 110,932 (117,904)
borrowings
Long-term borrowings (213,860) (246) (98,801) (114,813)
--------- --------- --------- ---------
(222,481) (246) 5,897 (228,132)
========= ========= ========= =========
9) OTHER INFORMATION
Copies of the 2003 Annual Report and Accounts will be posted to all
shareholders, registered bondholders and loan stockholders in January 2004.
Copies will be available to the public on request from the De Vere Group Plc,
2100 Daresbury Park, Daresbury, Warrington, Cheshire, WA4 4BP or can be
downloaded from the corporate website at www.deveregroupplc.co.uk.
The Annual General Meeting of De Vere Group Plc will be held at the De Vere
Belton Woods, near Grantham, Lincolnshire, NG32 2LN on 20 February 2004 at 11:30
a.m.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR DDBDDIBGGGXD