3rd Quarter Results
25 November 2003 - 11:00PM
UK Regulatory
RNS Number:4413S
Signet Group PLC
25 November 2003
Embargoed until 12.00 Noon (GMT) 25 November 2003
FURTHER ADVANCE IN SIGNET'S THIRD QUARTER RESULTS
Signet Group plc (LSE: SIG and Nasdaq NMS: SIGY), the world's largest speciality
retail jeweller, today announced results for both the 13 weeks and the 39 weeks
to 1 November 2003.
Group
In the 13 weeks to 1 November 2003, Group profit before tax rose to #5.1 million
(2002/03: #3.6 million restated for FRS 17 - "Retirement Benefits"), with like
for like sales up by 4.7%. Total sales were #289.4 million (2002/03: #278.9
million), an increase of 7.1% at constant exchange rates (see Note 10); at
actual exchange rates there was an increase of 3.8%. Operating profit was #8.3
million (2002/03: #6.7 million restated). Net interest payable for the 13 weeks
was #3.2 million (2002/03: #3.1 million restated).
In the 39 week period, Group profit before tax at #52.9 million (2002/03: #51.2
million restated) advanced by 10.9% at constant exchange rates (see Note 10) and
by 3.3% on a reported basis. Like for like sales increased by 3.3%. Total sales
at #956.8 million (2002/03: #961.7 million) reflected an increase of 5.5% at
constant exchange rates; at actual exchange rates there was a small decrease of
0.5%. Operating profit rose by 8.2% at constant exchange rates, but was similar
to last year at #62.2 million (2002/03: #62.0 million restated) on a reported
basis. Net interest payable was #9.3 million (2002/03: #10.8 million restated).
Earnings per share were 2.0p (2002/03: 1.9p restated).
United States (circa 71% of Group annual sales)
In the 13 weeks to 1 November 2003, US operating profit increased to #5.7
million (2002/03: #4.5 million), the operating margin being 3.0% (2002/03:
2.4%). Like for like sales were up by 4.5%. Total sales increased by 7.7% at
constant exchange rates and were up by 2.8% on a reported basis at #192.9
million (2002/03: #187.7 million). The gross margin was broadly similar to that
of last year; a range of management initiatives continuing to offset gold price
increases and the effect of some planned changes in product mix. The gold price
increase is expected to have a slightly greater impact in the fourth quarter.
The level of bad debt charges continued below last year's level.
In the 39 weeks, US operating profit was up by 5.4% on a constant exchange rate
basis but on a reported basis declined to #54.6 million (2002/03: #56.3
million). The operating margin was unchanged at 8.2%. Like for like sales were
up by 2.8%. Total sales advanced by 5.7% at constant exchange rates but
decreased by 2.8% on a reported basis to #667.8 million (2002/03: #686.8
million). The bad debt charge was 3.0 % (2002/03: 3.2%).
Space growth this year is expected to be about 7%. The expansion of the Leo
Diamond range continues and other branded merchandising programmes are being
developed. Staff training is at a record level. Kay's television advertising for
this Christmas will increase and in the case of Jared it will more than double.
Overall spending on marketing as a proportion of sales will be slightly higher
than last year.
United Kingdom (circa 29% of Group annual sales)
In the 13 weeks to 1 November 2003, UK operating profit rose to #4.1 million
(2002/03: #3.5 million restated) and operating margin advanced to 4.2% (2002/03:
3.8%). Like for like sales increased 5.0%, with total sales up by 5.8% to #96.5
million (2002/03: #91.2 million). Gross margin continued to be above last year's
level.
In the 39 weeks to 1 November 2003, UK operating profit increased by 22.7% to
#11.9 million (2002/03: #9.7 million restated), the operating margin being 4.1%
(2002/03: 3.5% restated). Like for like sales advanced by 4.7% and total sales
rose by 5.1% to #289.0 million (2002/03: #274.9 million). The gross margin was
ahead of last year.
By Christmas, 52 stores are expected to be trading using the new, more open
store format which is designed to allow greater interaction with the customer.
The new format, greater focus on staff training and enhanced merchandising are
all elements of the drive to increase diamond participation and improve store
productivity. Television advertising for both H.Samuel and Ernest Jones is being
tested in certain regions this Christmas.
Group Central Costs, Taxation and Net Debt
In the 13 week period, Group central costs were #1.5 million (2002/03: #1.3
million). In the 39 weeks Group central costs were #4.3 million (2002/03: #4.0
million). The tax rate was similar at 35.5%. Net debt at 1 November 2003 was
#187.6 million (2 November 2002: #254.6 million; #233.6 million at constant
exchange rates, see Note 10).
Prior Year Adjustment
The Group has adopted FRS 17 - "Retirement Benefits". The overall effect has
been a net charge of #0.5 million to profit before tax in the third quarter
against the restated comparable period impact of #nil million. For the 39 weeks
to 1 November 2003 the effect was a net charge of #1.4 million against the
restated comparable period net credit of #0.1 million. Under the market-based
approach of FRS 17 there was a #6.7 million pension fund deficit at 1 February
2003 in comparison to a balance sheet asset of #19.1 million under SSAP 24.
Consequently a non-cash charge of #18.1 million, net of deferred tax, has been
accounted for by way of a prior year adjustment charged directly to reserves to
reflect this change, representing 2.7% of shareholders' funds at 1 February
2003. Details of the impact of adopting FRS 17 are shown in Note 9 of the third
quarter 2003/04 results.
Comment
Terry Burman, Group Chief Executive, commented: "The results in the first nine
months have been encouraging given the 9% weakening of the US dollar against
sterling. The US business again outperformed its main competition and gained
market share in a mixed economic environment. The UK like for like sales growth
of 4.7% was ahead of the general retail sector and further improved its
operating margin.
Supported by a number of new and continuing initiatives both businesses are well
positioned to compete during the important fourth quarter."
Signet operated 1,694 speciality retail jewellery stores at 1 November 2003;
these included 1,092 stores in the US, where the Group trades as "Kay Jewelers",
"Jared The Galleria Of Jewelry" and under a number of regional names. At that
date Signet operated 602 stores in the UK, where the Group trades as "H.Samuel",
"Ernest Jones" and "Leslie Davis". Further information on Signet is available at
www.signetgroupplc.com.
Enquiries:
Terry Burman, Group Chief Executive +44 (0) 20 7399 9520
Walker Boyd, Group Finance Director +44 (0) 20 7399 9520
Mike Smith, Brunswick +44 (0) 20 7404 5959
Tim Grey, Brunswick +44 (0) 20 7404 5959
This release includes statements which are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements, based upon management's beliefs as well as on assumptions made by
and data currently available to management, appear in a number of places
throughout this release and include statements regarding, among other things,
our results of operation, financial condition, liquidity, prospects, growth,
strategies and the industry in which the Company operates. Our use of the words
"expects," "intends," "anticipates," "estimates," "may," "forecast,"
"objective," "plan" or "target," and other similar expressions are intended to
identify forward-looking statements. These forward-looking statements are not
guarantees of future performance and are subject to a number of risks and
uncertainties, including but not limited to general economic conditions, the
merchandising, pricing and inventory policies followed by the Group, the
reputation of the Group, the level of competition in the jewellery sector, the
price and availability of diamonds, gold and other precious metals, seasonality
of the Group's business and financial market risk.
For a discussion of these and other risks and uncertainties which could cause
actual results to differ materially, see the "Risk and Other Factors" section of
the Company's 2002/03 Annual Report on Form 20-F filed with the U.S. Securities
and Exchange Commission on April 24, 2003 and other filings made by the Company
with the Commission. Actual results may differ materially from those anticipated
in such forward-looking statements even if experience or future changes make it
clear that any projected results expressed or implied therein may not be
realised. The Company undertakes no obligation to update or revise any
forward-looking statements to reflect subsequent events or circumstances.
There will be a conference call for all interested parties today at 2.00 p.m.
GMT (9.00 a.m. EST and 6.00 a.m. Pacific Time) and a simultaneous audio webcast
at www.signetgroupplc.com. To help ensure the conference call begins in a timely
manner, could all participants please dial in 5 to 10 minutes prior to the
scheduled start time. The call details are:
UK dial-in: +44 (0) 20 7019 9504 Pass code: 688890
US dial-in: +1 718 354 1152 Pass code: 688890
UK 48 hr. replay: +44 (0) 20 7784 1024 Pass code: 688890#
US 48 hr. replay: +1 718 354 1112 Pass code: 688890#
The Christmas Trading Statement is expected to be released at 12:30 p.m. GMT on
Thursday 8 January 2004.
Unaudited interim consolidated profit and loss account
for the periods ended 1 November 2003
13 weeks 13 weeks 39 weeks 39 weeks 52 weeks
ended ended ended ended ended
1 November 2 November 1 November 2 November 1 February
2003 2002 2003 2002 2003
as as as
restated(1) restated(1) restated(1)
Notes #m #m #m #m #m
--------------------- ----- ------- ------- ------- ------- -------
Sales 2 289.4 278.9 956.8 961.7 1,608.0
--------------------- ----- ------- ------- ------- ------- -------
Operating
profit 2,9 8.3 6.7 62.2 62.0 213.9
Net interest
payable and
similar
charges 3,9 (3.2) (3.1) (9.3) (10.8) (14.0)
--------------------- ----- ------- ------- ------- ------- -------
Profit on
ordinary
activities
before
taxation 9 5.1 3.6 52.9 51.2 199.9
Tax on profit
on ordinary
activities 4 (1.8) (1.3) (18.8) (18.2) (70.8)
--------------------- ----- ------- ------- ------- ------- -------
Profit for the
financial
period 3.3 2.3 34.1 33.0 129.1
Dividends 6 - - (5.8) (5.3) (36.1)
--------------------- ----- ------- ------- ------- ------- -------
Retained
profit
attributable
to
shareholders 3.3 2.3 28.3 27.7 93.0
--------------------- ----- ------- ------- ------- ------- -------
Earnings per
share
- basic 7 0.2p 0.1p 2.0p 1.9p 7.5p
- diluted 0.2p 0.1p 2.0p 1.9p 7.5p
--------------------- ----- ------- ------- ------- ------- -------
All of the above relates to continuing activities.
(1) Restated for the implementation in 2003/04 of FRS 17 - 'Retirement Benefits'
(see note 9).
Unaudited consolidated balance sheet
at 1 November 2003
1 November 2 November 1 February
2003 2002 2003
as as
restated(1) restated(1)
Notes #m #m #m
------------------------------ ----- ------- ------- -------
Fixed assets
Intangible assets 18.3 21.1 19.8
Tangible assets 215.2 213.9 205.5
------------------------------ ----- ------- ------- -------
233.5 235.0 225.3
------------------------------ ----- ------- ------- -------
Current assets
Stocks 643.0 644.0 539.5
Debtors (2) 291.1 302.4 345.9
Cash at bank and in hand 27.6 23.7 89.2
------------------------------ ----- ------- ------- -------
961.7 970.1 974.6
Creditors: amounts falling due within
one year (319.4) (338.7) (324.9)
------- ------- -------
Bank loans and overdrafts (55.3) (91.1) (52.0)
Other (264.1) (247.6) (272.9)
------- ------- -------
Net current assets (2) 642.3 631.4 649.7
------------------------------ ----- ------- ------- -------
Total assets less current liabilities 875.8 866.4 875.0
Creditors: amounts falling due after
more than one year (173.4) (194.0) (189.1)
------- ------- -------
Bank loans (156.5) (180.1) (171.4)
Other (16.9) (13.9) (17.7)
------- ------- -------
Deferred tax - (3.2) -
Provisions for liabilities and charges (7.1) (6.3) (7.5)
------------------------------ ----- ------- ------- -------
Total net assets 695.3 662.9 678.4
------------------------------ ----- ------- ------- -------
Capital and reserves - equity
Called up share capital 8.6 8.6 8.6
Reserves 686.7 654.3 669.8
------------------------------ ----- ------- ------- -------
Shareholders' funds 8 695.3 662.9 678.4
------------------------------ ----- ------- ------- -------
Unaudited consolidated statement of total recognised gains and losses
for the periods ended 1 November 2003
13 weeks 13 weeks 39 weeks 39 weeks 52 weeks
ended ended ended ended ended
1 November 2 November 1 November 2 November 1 February
2003 2002 2003 2002 2003
as as as
restated(1) restated(1) restated(1)
#m #m #m #m #m
------------------------ ------- ------- ------- ------- -------
Profit for the
financial
period 3.3 2.3 34.1 33.0 129.1
Translation
differences
(1 February 2003:
net of #0.7m
tax credit) (35.0) 4.5 (16.2) (51.2) (143.2)
Actuarial loss
arising on
pension asset
(note 9) - - - - (22.3)
------------------------ ------- ------- ------- ------- -------
Total
recognised
gains and
losses
relating to
the period (31.7) 6.8 17.9 (18.2) (36.4)
Prior year
adjustment
(note 9) - - (18.1) - -
------------------------ ------- ------- ------- ------- -------
Total
recognised
gains and
losses (31.7) 6.8 (0.2) (18.2) (36.4)
------------------------ ------- ------- ------- ------- -------
(1) Restated for the implementation in 2003/04 of FRS 17 - 'Retirement Benefits'
(see note 9).
(2) Debtors and net current assets include amounts recoverable after more than
one year of #5.4m (2 November 2002: #nil, 1 February 2003: #5.3m).
Unaudited consolidated cash flow statement
for the periods ended 1 November 2003
13 weeks 13 weeks 39 weeks 39 weeks 52 weeks
ended ended ended ended ended
1 November 2 November 1 November 2 November 1 February
2003 2002 2003 2002 2003
as as as
restated(1) restated(1) restated(1)
#m #m #m #m #m
----------------------- ------- ------- ------- ------- -------
Net cash
(outflow)/infl
ow from
operating
activities (2.1) (28.5) 70.3 50.6 182.2
Net cash
outflow from
returns on
investments
and
servicing of finance (3.4) (3.6) (9.9) (12.6) (16.5)
Taxation paid (12.3) (15.5) (51.1) (49.0) (57.3)
Net cash
outflow for
capital
expenditure
and
financial investment (18.1) (15.1) (42.0) (39.4) (48.2)
Dividends paid - - (30.8) (25.6) (30.8)
----------------------- ------- ------- ------- ------- -------
Cash
(outflow)/inflow
before use
of liquid
resources and
financing (35.9) (62.7) (63.5) (76.0) 29.4
Management of
liquid
resources -
decrease/(increase)
in bank deposits 2.2 (5.0) 61.3 42.0 (29.9)
Financing -
proceeds from
issue of
shares 2.2 0.1 4.8 2.8 4.3
- increase
in/(repayment
of) bank loans 11.1 40.1 0.7 29.0 (12.1)
----------------------- ------- ------- ------- ------- -------
Increase/(decrease)
in cash
in the period (20.4) (27.5) 3.3 (2.2) (8.3)
----------------------- ------- ------- ------- ------- -------
Reconciliation of net cash flow to movement in net debt
----------------------- ------- ------- ------- ------- -------
(Decrease)/increase in cash
in the period (20.4) (27.5) 3.3 (2.2) (8.3)
Cash (inflow)/outflow from
(increase)/decrease in debt (11.1) (40.1) (0.7) (29.0) 12.1
----------------------- ------- ------- ------- -------
Cash (inflow)/outflow from
(decrease)/increase in
liquid
resources (2.2) 5.0 (61.3) (42.0) 29.9
----------------------- ------- ------- ------- ------- -------
Change in net debt resulting
from cash flows (33.7) (62.6) (58.7) (73.2) 33.7
Translation difference 10.8 1.7 11.2 20.3 27.9
----------------------- ------- ------- ------- ------- -------
Movement in net debt in the
period (22.9) (60.9) (47.5) (52.9) 61.6
Opening net debt (164.7) (193.7) (140.1) (201.7) (201.7)
----------------------- ------- ------- ------- ------- -------
Closing net debt (187.6) (254.6) (187.6) (254.6) (140.1)
----------------------- ------- ------- ------- ------- -------
Reconciliation of operating profit to operating cash flow
----------------------- ------- ------- ------- ------- -------
Operating profit 8.3 6.7 62.2 62.0 213.9
Depreciation and amortisation
charges 9.1 8.9 27.8 26.9 37.8
Increase in stocks (109.6) (125.8) (122.2) (131.7) (44.9)
Decrease/(increase) in
debtors 7.9 8.0 45.7 48.0 (26.5)
Increase in creditors 82.3 73.8 57.2 46.1 1.4
(Decrease)/increase in other
provisions (0.1) (0.1) (0.4) (0.7) 0.5
----------------------- ------- ------- ------- ------- -------
Net cash (outflow)/inflow
from operating activities (2.1) (28.5) 70.3 50.6 182.2
----------------------- ------- ------- ------- ------- -------
(1) Restated for the implementation in 2003/04 of FRS 17 - 'Retirement Benefits'
(see note 9).
Notes to the unaudited interim financial results
for the periods ended 1 November 2003
1. Basis of preparation
These interim financial statements are unaudited and do not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985. They have
been prepared on a basis which is consistent with the financial statements for
the 52 weeks ended 1 February 2003 except where restatements arise from the
implementation of FRS 17 - 'Retirement Benefits'. The comparative figures for
the 52 weeks ended 1 February 2003 are not the Company's statutory accounts for
that period. Those accounts have been reported on by the Company's auditors
under Section 235 of the Companies Act 1985 and have been delivered to the
Registrar of Companies. The report of the auditors was unqualified and did not
contain a statement under Section 237(2) or Section 237(3) of the Companies Act
1985.
2. Segment information
13 weeks 13 weeks 39 weeks 39 weeks 52 weeks
ended ended ended ended ended
1 November 2 November 1 November 2 November 1 February
2003 2002 2003 2002 2003
as as as
restated(1) restated(1) restated(1)
#m #m #m #m #m
----------------------- ------- ------- ------- ------- -------
Sales by origin and
destination
UK, Channel
Islands &
Republic of
Ireland 96.5 91.2 289.0 274.9 473.6
US 192.9 187.7 667.8 686.8 1,134.4
----------------------- ------- ------- ------- ------- -------
289.4 278.9 956.8 961.7 1,608.0
----------------------- ------- ------- ------- ------- -------
Operating profit
UK, Channel Islands &
Republic of Ireland
- Trading (a) 4.1 3.5 11.9 9.7 64.7
- Group
central
costs(b) (1.5) (1.3) (4.3) (4.0) (6.0)
----------------------- ------- ------- ------- ------- -------
2.6 2.2 7.6 5.7 58.7
US 5.7 4.5 54.6 56.3 155.2
----------------------- ------- ------- ------- ------- -------
8.3 6.7 62.2 62.0 213.9
----------------------- ------- ------- ------- ------- -------
The Group's results derive from one business segment - the retailing of
jewellery, watches and gifts.
(a) UK trading profit for the 39 weeks ended 1 November 2003 includes a charge
of #2.0m relating to a pension net service cost arising from the adoption in
2003/04 of FRS 17 - 'Retirement Benefits' (39 weeks ended 2 November 2002:
#1.7m, 52 weeks ended 1 February 2003: #2.3m).
(b) Group central costs for the 52 weeks ended 1 February 2003 include a charge
of #0.5m relating to an increase in the provision against an onerous lease of a
dormant Group property (39 weeks ended 1 November 2003: #nil, 39 weeks ended 2
November 2002: #nil).
3. Net interest payable and similar charges
13 weeks 13 weeks 39 weeks 39 weeks 52 weeks
ended ended ended ended ended
1 November 2 November 1 November 2 November 1 February
2003 2002 2003 2002 2003
as as as
restated(1) restated(1) restated(1)
#m #m #m #m #m
----------------------- ------- ------- ------- ------- -------
Net interest
payable (3.4) (3.6) (9.9) (12.6) (16.5)
FRS 17 - net
interest
credit 0.2 0.5 0.6 1.8 2.5
----------------------- ------- ------- ------- ------- -------
(3.2) (3.1) (9.3) (10.8) (14.0)
----------------------- ------- ------- ------- ------- -------
4. Taxation
The net taxation charges in the profit and loss account for the 13 weeks and 39
weeks ended 1 November 2003 have been based on the anticipated effective
taxation rate for the 52 weeks ending 31 January 2004.
(1) Restated for the implementation in 2003/04 of FRS 17 - 'Retirement Benefits'
(see note 9).
Notes to the unaudited interim financial results
for the periods ended 1 November 2003
5. Foreign currency translation
The exchange rates used for the translation of US dollar transactions and
balances in these interim results are as follows:
1 November 2 November 1 February
2003 2002 2003
Profit and loss account (average rate) 1.62 1.49 1.53
Balance sheet (closing rate) 1.70 1.56 1.64
--------------------------------- ------- ------- -------
The effect of restating prior period figures at constant exchange rates is given
in note 10.
6. Dividend
The dividend of 0.341p per share was paid on 7 November 2003 to shareholders on
the register of members at close of business on 10 October 2003.
7. Earnings per share
13 weeks 13 weeks 39 weeks 39 weeks 52 weeks
ended ended ended ended ended
1 November 2 November 1 November 2 November 1 February
2003 2002 2003 2002 2003
as as as
restated(1) restated(1) restated(1)
#m #m #m #m #m
----------------------- ------- ------- ------- ------- -------
Profit
attributable
to
shareholders 3.3 2.3 34.1 33.0 129.1
----------------------- ------- ------- ------- ------- -------
Weighted
average number
of shares in
issue
(million) 1,720.7 1,711.4 1,716.9 1,710.2 1,710.7
Dilutive
effect of
share options
(million) 18.0 14.4 13.2 17.9 16.4
----------------------- ------- ------- ------- ------- -------
Diluted
weighted
average number
of shares
(million) 1,738.7 1,725.8 1,730.1 1,728.1 1,727.1
----------------------- ------- ------- ------- ------- -------
Earnings per
share - basic 0.2p 0.1p 2.0p 1.9p 7.5p
- diluted 0.2p 0.1p 2.0p 1.9p 7.5p
----------------------- ------- ------- ------- ------- -------
The number of shares in issue at 1 November 2003 was 1,722,717,774 (2 November
2002: 1,711,462,774 shares; 1 February 2003: 1,713,768,396 shares).
8. Consolidated shareholders' funds
Share Share Revaluation Special Profit Total
capital premium reserve reserves and
account loss
account
#m #m #m #m #m #m
------------------ ------- ------- ------- ------- ------- -------
Balance at 1
February 2003 8.6 53.9 3.1 101.7 529.2 696.5
Prior year
adjustment
(note 9) - - - - (18.1) (18.1)
------------------ ------- ------- ------- ------- ------- -------
As restated 8.6 53.9 3.1 101.7 511.1 678.4
Retained
profit - - - - 28.3 28.3
Share options
exercised - 4.8 - - - 4.8
Translation
differences - - - 14.4 (30.6) (16.2)
------------------ ------- ------- ------- ------- ------- -------
Balance at 1
November 2003 8.6 58.7 3.1 116.1 508.8 695.3
------------------ ------- ------- ------- ------- ------- -------
(1) Restated for the implementation in 2003/04 of FRS 17 - 'Retirement Benefits'
(see note 9).
Notes to the unaudited interim financial results
for the periods ended 1 November 2003
9. Prior year adjustment
It was previously the Company's policy, in compliance with SSAP 24, to spread
the pension valuation surplus arising under its UK defined benefit pension
scheme ('the Scheme') over the average service life of the employees. In
compliance with this standard, a pension scheme prepayment of #19.1m was
included in the balance sheet at 1 February 2003 within debtors falling due
after more than one year. An associated deferred tax liability of #5.7m was also
carried on the balance sheet at 1 February 2003.
The adoption of FRS 17 - 'Retirement Benefits' has led to the write off of the
#19.1m pension asset previously recognised under SSAP 24 together with provision
for the net deficit of #6.7m in the Scheme as at 1 February 2003. This #6.7m net
deficit has been classified as a creditor falling due after more than one year.
The #5.7m deferred tax liability associated with the SSAP 24 pension asset has
been written back and a #2.0m deferred tax asset has been recognised in respect
of the net deficit provided for under FRS 17. The total net deficit of #18.1m
arising from the adoption of FRS 17 has been accounted for as a prior year
adjustment charged directly to shareholders' funds.
The consolidated statement of total recognised gains and losses for the 52 weeks
ended 1 February 2003 has been restated to include the actuarial loss on pension
assets arising during that period net of deferred tax, calculated in accordance
with FRS 17. This amounted to #22.3m.
The profit and loss accounts for the 13 weeks and for the 39 weeks ended 2
November 2002 and for the 52 weeks ended 1 February 2003 have been restated to
include the following items, reflecting the requirements of FRS 17.
13 weeks 39 weeks 52 weeks
ended ended ended
2 November 2 November 1 February
2002 2002 2003
#m #m #m
---------------------------- --------- --------- ---------
Operating profit
As originally reported 7.2 63.7 216.2
- Net service cost (0.5) (1.7) (2.3)
---------------------------- --------- --------- ---------
As restated 6.7 62.0 213.9
---------------------------- --------- --------- ---------
Net interest payable and similar charges
As originally reported (3.6) (12.6) (16.5)
- Expected return on Scheme assets 1.7 5.3 7.1
- Interest on Scheme liabilities (1.2) (3.5) (4.6)
---------------------------- --------- --------- ---------
As restated (3.1) (10.8) (14.0)
---------------------------- --------- --------- ---------
Profit on ordinary activities before
taxation
As originally reported 3.6 51.1 199.7
- Net impact of FRS 17 adjustments - 0.1 0.2
---------------------------- --------- --------- ---------
As restated 3.6 51.2 199.9
---------------------------- --------- --------- ---------
Notes to the unaudited interim financial results
for the periods ended 1 November 2003
10. Impact of constant exchange rates
The Company has historically used constant exchange rates to compare
period-to-period changes in certain financial data. This is referred to as 'at
constant exchange rates' throughout this release. The Company considers this a
useful measure for analysing and explaining changes and trends in the Company's
results. The impact of the re-calculation of sales, operating profit, profit
before tax and net debt at constant exchange rates, including a reconciliation
to the Group's GAAP results, is analysed below.
39 weeks ended 39 weeks 39 weeks Growth Impact At Growth
1 November 2003 ended ended at of constant at
1 November 2 November actual exchange exchange constant
2003 2002 exchange rate rates(1) exchange
as as rates movement rates
reported reported(1) (non-GAAP) (non-GAAP)
#m #m % #m #m %
------------------ ------- ------- ------- ------- ------- -------
Sales by origin
and destination
UK, Channel
Islands &
Republic of
Ireland 289.0 274.9 5.1 - 274.9 5.1
US 667.8 686.8 -2.8 (55.1) 631.7 5.7
------------------ ------- ------- ------- ------- ------- -------
956.8 961.7 -0.5 (55.1) 906.6 5.5
------------------ ------- ------- ------- ------- ------- -------
Operating profit/
(loss)
UK, Channel
Islands & Republic
of Ireland
- Trading 11.9 9.7 22.7 - 9.7 22.7
- Group
central costs (4.3) (4.0) n/a - (4.0) n/a
------------------ ------- ------- ------- ------- ------- -------
7.6 5.7 n/a - 5.7 n/a
US 54.6 56.3 -3.0 (4.5) 51.8 5.4
------------------ ------- ------- ------- ------- ------- -------
62.2 62.0 0.3 (4.5) 57.5 8.2
------------------ ------- ------- ------- ------- ------- -------
Profit before
tax 52.9 51.2 3.3 (3.5) 47.7 10.9
------------------ ------- ------- ------- ------- ------- -------
13 weeks ended 13 weeks 13 weeks Growth Impact At Growth
1 November 2003 ended ended at of constant at
1 November 2 November actual exchange exchange constant
2003 2002 exchange rate rates(1) exchange
as as rates movement rates
reported reported(1) (non-GAAP) (non-GAAP)
#m #m % #m #m %
------------------ ------- ------- ------- ------- ------- -------
Sales by origin
and destination
UK, Channel
Islands &
Republic of
Ireland 96.5 91.2 5.8 - 91.2 5.8
US 192.9 187.7 2.8 (8.6) 179.1 7.7
------------------ ------- ------- ------- ------- ------- -------
289.4 278.9 3.8 (8.6) 270.3 7.1
------------------ ------- ------- ------- ------- ------- -------
At 1 November 2003 1 November 2 November Impact At
2003 2002 of constant
as as exchange exchange
reported reported(1) rate rates
movement (non-GAAP)
#m #m #m #m
Net debt (187.6) (254.6) 21.0 (233.6)
---------------------------- ------- ------- ------- -------
(1) Restated for the implementation in 2003/04 of FRS 17 - 'Retirement Benefits'
(see note 9).
Unaudited reconciliation of UK GAAP to US GAAP
for the periods ended 1 November 2003
Estimated effect on profit for the
financial periods of differences between
UK GAAP and US GAAP
13 weeks 13 weeks 39 weeks 39 weeks 52 weeks
ended ended ended ended ended
1 November 2 November 1 November 2 November 1 February
2003 2002 2003 2002 2003
as as as
restated(1) restated(1) restated(1)
#m #m #m #m #m
------------------------ ------- ------- ------- ------- -------
Profit for the
financial
period in
accordance
with UK GAAP 3.3 2.3 34.1 33.0 129.1
US GAAP adjustments:
Goodwill
amortisation 0.3 0.3 0.9 0.9 1.2
Sale and
leaseback
transactions 0.2 0.2 0.5 0.6 0.8
Extended
service plan
revenues (1.9) (1.7) (2.4) (2.7) (3.5)
Pensions (0.6) - (1.6) (0.3) (0.5)
Depreciation
of properties - - - - 0.2
Stock
compensation 0.6 (0.8) (0.8) 0.4 1.3
------------------------ ------- ------- ------- ------- -------
US GAAP
adjustments
before
taxation (1.4) (2.0) (3.4) (1.1) (0.5)
Taxation 0.5 0.5 1.4 0.3 (0.3)
------------------------ ------- ------- ------- ------- -------
US GAAP
adjustments
after taxation (0.9) (1.5) (2.0) (0.8) (0.8)
------------------------ ------- ------- ------- ------- -------
Net income
attributable
to
shareholders
in accordance
with US GAAP 2.4 0.8 32.1 32.2 128.3
------------------------ ------- ------- ------- ------- -------
Income per ADS
in accordance
with US GAAP: 4.2p 1.4p 56.1p 56.5p 225.0p
- basic
- diluted 4.1p 1.4p 55.7p 55.9p 222.9p
Weighted
average number
of ADS
outstanding
(million): 57.4 57.0 57.2 57.0 57.0
- basic
- diluted 58.0 57.5 57.7 57.5 57.6
------------------------ ------- ------- ------- ------- -------
Estimated effect on shareholders'
funds of differences between
UK GAAP and US GAAP
1 November 2 November 1 February
2003 2002 2003
as as
restated(1) restated(1)
#m #m #m
---------------------------------- ------- ------- -------
Shareholders' funds in accordance with UK
GAAP 695.3 662.9 678.4
US GAAP adjustments:
Goodwill in respect of acquisitions 516.7 552.2 531.2
Adjustment to goodwill (62.2) (67.8) (64.5)
Accumulated goodwill amortisation (157.5) (168.8) (162.6)
Sale and leaseback transactions (9.2) (9.9) (9.7)
Extended service plan revenues (18.4) (16.6) (16.6)
Pensions 10.3 3.1 12.0
Depreciation of properties (2.5) (2.7) (2.5)
Revaluation of properties (3.1) (3.0) (3.1)
Dividends 5.8 5.3 30.8
---------------------------------- ------- ------- -------
US GAAP adjustments before taxation 279.9 291.8 315.0
Taxation 2.8 7.6 1.9
---------------------------------- ------- ------- -------
US GAAP adjustments after taxation 282.7 299.4 316.9
---------------------------------- ------- ------- -------
Shareholders' funds in accordance with US
GAAP 978.0 962.3 995.3
---------------------------------- ------- ------- -------
(1) Restated under UK GAAP for the implementation in 2003/04 of FRS 17 -
'Retirement Benefits' (see note 9).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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