Final Results
13 March 2003 - 6:15PM
UK Regulatory
RNS Number:6693I
Delta PLC
13 March 2003
13th March 2003
DELTA plc ANNUAL RESULTS 2002
Highlights
* Continuing pre-tax profits* increased by 25%
* Specialty Chemicals Division profits increased by 33%
* Disposal of Electrical Division to Eaton completed on 31 January 2003 for #130m
* Strong balance sheet; net cash balance following elimination of all Group debt
* Annual dividend maintained at 8.0p
Commenting on today's results, Delta's Chief Executive, Jon Scott-Maxwell said:
"The improvement we saw during the year, despite the deteriorating continuing global economic situation, is a clear
demonstration of the relative resilience of our businesses. It was especially encouraging that the effects of the
weakness in the former Electrical Division was more than offset by the improvement in our Specialty Chemicals
businesses. While the economic outlook remains uncertain, we believe that the fundamental strengths of the re-focused
Delta and our strong balance sheet means that the Group is well-placed to compete successfully."
# million 2002 2001
Turnover #500.1 #594.2
Continuing turnover #256.6 +9% #235.3
Pre-tax profit* #35.8 +17% #30.5
Continuing pre-tax profit* #29.9 +25% #24.0
Pre-tax (loss) profit #(77.5) #1.3
Earnings per share* 8.8p +60% 5.5p
Continuing earnings per share* 6.1p 2.5p
Annual dividend per share 8.0p 8.0p
* Before all exceptional items and goodwill amortisation .
Page 1 of 14
Annual Report
for the year ended
28 December 2002
Highlights of Chairman's Report and Chief Executive's Review
The Group experienced an overall improvement in trading during 2002 even though the global economic environment
continued to deteriorate as the year progressed. The recovery seen during the first half of the year in Specialty
Chemicals continued during the remainder of the year and more than offset weakness in the Electrical Division which has
now been sold. It is encouraging that recovery and growth was seen by our continuing businesses which now represent the
future of Delta.
Group turnover for the year was #500.1 million (2001 #594.2 million) resulting in profits before tax, goodwill
amortisation and exceptional items of #35.8 million (2001 #30.5 million). Excluding discontinued businesses, turnover
increased by 9% to #256.6 million (2001 #235.3 million) giving profits on the same basis of #29.9 million (2001 #24.0
million). Continuing earnings per share before goodwill amortisation and exceptional items was 6.1p compared to 2.5p on
the same basis in 2001. The significantly greater increase in continuing earnings per share compared to profits largely
reflects the improved effective tax rate.
The Group loss before taxation for the year was #77.5 million (2001 #1.3 million profit). Included within this result
is a non operating exceptional charge of #101.6 million comprised of a loss on the disposal of the remaining Plumbing
businesses of #10.1 million and a loss on the sale of the Electrical Division of #77.2 million. Of the loss generated by
the sale of the Electrical Division, capitalised goodwill represented #60.5 million and in addition #14.3 million of
goodwill previously written off to reserves was charged to the profit and loss account.
Our Specialty Chemicals Division which comprises our Electrolytic Manganese and Galvanizing businesses, increased sales
by 20% to #155.1 million (2001 #129.5 million) and operating profits increased by 33% to #24.3 million (2001 #18.3
million).
Our Electrolytic Manganese Dioxide (EMD) business, where we are already the leading global supplier and lowest cost
producer, continued to increase market share. The new capacity at Nelspruit will now be commissioned later this year to
meet increasing volumes. Delta EMD had a successful year in 2002 with sales and profits increasing significantly on the
previous year. The business will continue to benefit from good growth in its underlying markets driven by the increased
use of batteries in consumer electronics worldwide and from its cost leadership, global presence, technology and strong
customer partnerships.
Galvanizing's Australian operations performed well benefiting from the recovery in Australian construction activity and
improved economic conditions. The Asia Pacific plants which have been the focus of expansion in recent years saw
continued improvement in volumes and profits. The two plants in Malaysia performed well, although slightly below the
levels seen in the previous year and the plants in Indonesia and the Philippines also made excellent progress. The North
American operations continued to be adversely impacted by the poor state of the American economy. Although they
increased sales and market share, volumes at all our US plants remain below the levels we had originally anticipated.
The management has controlled costs well and generated cash during the year. Our priority remains to increase volumes
through these plants which should result in significant profit improvement.
Industrial Supplies sales reflected improved economic activity in their markets at #135.5 million (2001 #133.7 million)
with operating profits at #14.4 million (2001 #13.6 million). Whilst they do not have the growth potential of our
Specialty Chemicals business, we are confident that they will continue to provide stable returns and excellent cash
generation. In 2002 several of these businesses in Australia and South Africa achieved record profits and returns on
capital employed reflecting relatively buoyant domestic markets. The returns from these businesses and the cash that
they generate will continue to support our growth businesses in the Specialty Chemicals Division.
Page 2 of 14
The interest charge fell during the year to #6.5 million (2001 #8.8 million) reflecting a lower average level of debt
compared to the previous year following the receipt of the proceeds from disposals. The proceeds of the disposal of
Electrical which were not received until 31 January 2003 are not reflected in the year end balance sheet, but following
their receipt, the Group now has net cash.
As at the end of December 2002, the Delta pension schemes showed an FRS 17 deficit on a post-tax basis of #83.8 million
(2001 surplus of #23.9 million). On a pre-tax basis the deficit was #119.7 million (2001 surplus of #34.2 million).
Dividend
We are proposing to pay a final dividend of 4.5p which, after an interim dividend of 3.5p, gives a total full year
dividend maintained at 8.0p (2001 8.0p).
Strategic Development
2002 was an important year in the transformation of Delta with the sale of the Electrical Division for #130 million to
Eaton Corporation concluding the major divestment programme reshaping Delta. We were able to take advantage of the
consolidation in the electrical industry and this disposal represented from the Group's point of view, the most
advantageous strategic choice for this business.
The Group is now focused on Specialty Chemicals where EMD and Galvanizing have growth opportunities while Industrial
Supplies provides stable returns and strong cashflow. Following the sale of our Electrical business, it is anticipated
that Delta will be re-classified within the FTSE Chemical sector.
More recently in February 2003, we announced the acquisition of Webforge for #19 million, a manufacturer and supplier of
construction and civil products which complements our Galvanizing operations throughout Asia Pacific.
People
I would like to thank all of our employees at every level for their enthusiasm, professionalism and hard work over the
past year.
Summary and Outlook
The robust performance of the continuing businesses during 2002 was encouraging, but the global economic outlook remains
difficult and uncertain affecting exchange rates in the short-term. In the Specialty Chemicals Division, our EMD
business will continue to use quality and service as well as price to increase volumes while Galvanizing is expected
further to improve the performance of its existing operations and benefit from the integration of Webforge. The markets
for our Industrial Supplies businesses should remain relatively buoyant. The strong balance sheet of the refocused Group
means that it is well placed to compete successfully.
Delta plc Sir Martin Jacomb
1 Kingsway Chairman
London WC2B 6NP 13 March 2003
Page 3 of 14
Group profit and loss account
For the year ended 28 December 2002
2002 2001 (restated)
Con- Discon- Con- Discon-
tinuing -tinued Total tinuing tinued Total
Notes # million # million # million # million # million # million
Total turnover 290.6 251.7 542.3 263.2 379.7 642.9
Less share of joint ventures
and associates (34.0) (8.2) (42.2) (27.9) (20.8) (48.7)
Group turnover 256.6 243.5 500.1 235.3 358.9 594.2
Cost of sales (172.0) (189.0) (361.0) (166.9) (271.2) (438.1)
Gross profit 84.6 54.5 139.1 68.4 87.7 156.1
Distribution costs and administrative
Expenses (59.4) (55.2) (114.6) (48.3) (84.5) (132.8)
Group operating profit 25.2 (0.7) 24.5 20.1 3.2 23.3
Share of profits of joint ventures
and associates 6.4 (0.3) 6.1 5.2 (0.2) 5.0
Total operating profit 31.6 (1.0) 30.6 25.3 3.0 28.3
Disposal of businesses 3 - (21.9) (21.9) - (55.3) (55.3)
Use of provision made in
previous year 3 - 12.3 12.3 - 41.9 41.9
Provision for diminution in value of
businesses to be disposed of 3 (0.5) (91.5) (92.0) 2.5 (7.3) (4.8)
(Loss) profit on ordinary activities
before interest 31.1 (102.1) (71.0) 27.8 (17.7) 10.1
Net interest - parent
and subsidiaries (3.6) (3.9) (7.5) (1.4) (5.9) (7.3)
- joint ventures and
Associates 1.2 (0.2) 1.0 (1.2) (0.3) (1.5)
Profit on ordinary activities before taxation,
exceptional items and goodwill amortisation 29.9 5.9 35.8 24.0 6.5 30.5
Operating exceptional items and goodwill
Amortisation (0.7) (9.5) (10.2) (1.3) (9.7) (11.0)
Exceptional interest 3 - (1.5) (1.5) - - -
Non-operating exceptional items (0.5) (101.1) (101.6) 2.5 (20.7) (18.2)
(Loss) profit on ordinary activities
before taxation 28.7 (106.2) (77.5) 25.2 (23.9) 1.3
Taxation 5 (12.5) (1.6) (14.1) (12.4) (2.0) (14.4)
(Loss) profit on ordinary activities after
Taxation 16.2 (107.8) (91.6) 12.8 (25.9) (13.1)
Minority interests (8.1) (0.2) (8.3) (7.5) (0.1) (7.6)
(Loss) profit for the financial year 8.1 (108.0) (99.9) 5.3 (26.0) (20.7)
Dividends 7 (12.2) - (12.2) (12.1) - (12.1)
Transfer from reserves (4.1) (108.0) (112.1) (6.8) (26.0) (32.8)
Page 4 of 14
Group profit and loss account (continued)
For the year ended 28 December 2002
2002 2001 (restated)
Con- Discon- Con- Discon-
tinuing -tinued Total tinuing tinued Total
Notes # million # million # million # million # million # million
Earnings (loss) per 25p ordinary share:
Basic 6 5.3p (66.4)p 3.5p (13.9)p
Diluted 6 5.3p (66.2)p 3.4p (13.8)p
Earnings (loss) per 25p ordinary share
before goodwill amortisation:
Basic 6 5.8p (63.5)p 3.9p (10.8)p
Diluted 6 5.8p (63.2)p 3.9p (10.7)p
Earnings per 25p ordinary share
before exceptional items and
goodwill amortisation:
Basic 6 6.1p 8.8p 2.5p 5.5p
Diluted 6 6.1p 8.7p 2.5p 5.4p
Page 5 of 14
Group balance sheet
At 28 December 2002
2002 2001
(restated)
# million # million
Fixed assets
Intangible assets - goodwill 10.1 71.2
Tangible assets 152.5 181.6
Investments
Joint ventures: share of gross assets 6.3 6.1
share of gross liabilities (4.6) (4.6)
loans to joint ventures 1.1 1.1
2.8 2.6
Associated companies 20.8 20.8
Other investments 0.6 0.5
186.8 276.7
Current assets
Stocks 91.6 94.2
Debtors - amounts falling due after one year 7.3 7.3
Debtors - amounts falling due within one year 99.5 109.7
Investments - money market funds 0.4 2.3
Investments - other 5.4 2.1
5.8 4.4
Bank and other deposits 51.8 53.5
256.0 269.1
Creditors - amounts falling due within one year
Borrowings (99.6) (26.4)
Other creditors (128.1) (128.2)
Net current assets 28.3 114.5
Total assets less current liabilities 215.1 391.2
Creditors - amounts falling due after more than one year
Borrowings (4.4) (87.9)
Provisions for liabilities and charges (12.3) (9.4)
Net assets 198.4 293.9
Capital and reserves
Called up share capital 40.6 40.4
Share premium account 32.1 31.6
Revaluation reserve 45.2 41.3
Profit and loss account 42.8 145.8
Equity shareholders' funds 157.9 256.3
Non-equity shareholders' funds 2.8 2.8
Total shareholders' funds 160.7 259.1
Equity minority interests 37.7 34.8
198.4 293.9
Page 6 of 14
Group cash flow statement
For the year ended 28 December 2002
2002 2001
Notes # million # million
Net cash inflow from operating activities 8 49.2 62.3
Dividends received from associates 3.6 4.5
Returns on investments and servicing of finance
Interest received 6.1 8.8
Interest paid (12.8) (16.0)
Preference dividends paid (0.1) (0.1)
Dividends paid to minority shareholders (4.8) (3.2)
Net cash outflow from returns on investments and servicing of finance (11.6) (10.5)
Taxation (13.6) (17.5)
Capital expenditure and financial investment
Purchase of tangible fixed assets (18.9) (36.5)
Sale of fixed investments 0.9 1.7
Associated company loans (0.8) 2.8
Net cash outflow from capital expenditure and financial investment (18.8) (32.0)
Acquisitions and disposals
Purchase of businesses (1.8) (0.8)
Purchase of investment in associated companies - (0.3)
Sale of businesses 14.9 25.8
Net cash disposed of on sale of businesses (1.9) (2.4)
Net cash inflow from acquisitions and disposals 11.2 22.3
Equity dividends paid (12.1) (12.0)
Cash inflow before use of liquid resources and financing 7.9 17.1
Management of liquid resources
Decrease in short term cash deposits and current asset investments 6.0 44.4
Financing
Issue of ordinary share capital 0.7 0.1
Debt due within one year: increase in short term borrowings 29.4 0.5
repayment of short term borrowings (14.9) (1.7)
Debt due after one year: increase in loans 7.8 -
repayment of loans (26.4) (78.2)
Net cash outflow from financing (3.4) (79.3)
Increase (decrease) in cash in the period 10 10.5 (17.8)
Page 7 of 14
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the year ended 28 December 2002
2002 2001
(restated)
# million # million
Loss for the financial year (99.9) (20.7)
Other recognised losses for the year:
Currency translation differences on foreign currency net investments (1.3) (2.7)
Total recognised losses for the year (101.2) (23.4)
Prior year adjustment (note 1) 0.7
Total losses recognised since last annual report (100.5)
MOVEMENT IN TOTAL SHAREHOLDERS' FUNDS
For the year ended 28 December 2002
Loss for the financial year (99.9) (20.7)
Dividends (12.2) (12.1)
(112.1) (32.8)
Other recognised losses for the year (1.3) (2.7)
Goodwill transferred to the profit and loss account in
respect of businesses sold or to be disposed of (note 3 (iii)) 14.3 -
Shares issued 0.7 0.1
Net decrease in shareholders' funds for the year (98.4) (35.4)
Total shareholders' funds at the beginning of the year (originally
#258.4 million before adding prior year adjustment of #0.7 million) 259.1 294.5
Total shareholders' funds at end of the year 160.7 259.1
Page 8 of 14
Principal activities
2002 2001
(Loss) Profit
Turn- before Net Turn- before Net
# million over taxation Assets over taxation Assets
By activity:
Specialty chemicals 155.1 24.3 112.9 129.5 18.3 120.8
Industrial supplies 135.5 14.4 44.0 133.7 13.6 38.0
Group costs - (6.4) (3.6) - (5.3) 2.8
Provision for diminution in value
of businesses (note 3) - (0.5) - - 2.5 -
Exceptional operating items (v) - - - - (0.6) -
Goodwill (v) - (0.7) 10.1 - (0.7) 8.3
Continuing operations 290.6 31.1 163.4 263.2 27.8 169.9
Discontinued operations (vi) 251.7 (1.0) 90.0 379.7 3.0 184.5
Disposal of businesses (note 3) - (21.9) - - (55.3) -
Use of provision made in previous year (note 3) - 12.3 - - 41.9 -
Provision for diminution in value of
businesses (note 3) - (91.5) (3.2) - (7.3) (2.0)
Interest/net borrowings & money market
fund current investments - (6.5) (51.8) - (8.8) (58.5)
542.3 (77.5) 198.4 642.9 1.3 293.9
Less: joint ventures and associated companies (i) (42.2) - - (48.7) - -
500.1 (77.5) 198.4 594.2 1.3 293.9
By origin:
Europe 18.6 (5.6) 3.7 17.8 (4.5) 8.4
Asia Pacific 150.4 12.9 76.1 134.7 13.3 84.1
North America 17.5 (1.2) 19.8 16.6 (2.5) 25.9
Africa 104.1 26.2 53.7 94.1 20.3 43.2
Provision for diminution in value
of businesses (note 3) - (0.5) - - 2.5 -
Exceptional operating items (v) - - - - (0.6) -
Goodwill (v) - (0.7) 10.1 - (0.7) 8.3
Continuing operations 290.6 31.1 163.4 263.2 27.8 169.9
Discontinued operations (vi) 251.7 (1.0) 90.0 379.7 3.0 184.5
Disposal of businesses (note 3) - (21.9) - - (55.3) -
Use of provision made in previous year (note 3) - 12.3 - - 41.9 -
Provision for diminution in value of
businesses (note 3) - (91.5) (3.2) - (7.3) (2.0)
Interest/net borrowings & money market
fund current investments - (6.5) (51.8) - (8.8) (58.5)
542.3 (77.5) 198.4 642.9 1.3 293.9
Less: joint ventures and associated companies (ii) (42.2) - - (48.7) - -
500.1 (77.5) 198.4 594.2 1.3 293.9
Page 9 of 14
Principal activities (continued)
2002 2001
Profit Profit
Turn- before Net Turn- before Net
# million over taxation Assets over taxation Assets
By destination:
Europe 30.7 23.3
Asia Pacific 125.7 114.1
North America 50.4 46.1
Near & Middle East 0.1 0.2
Africa 49.7 51.6
Continuing operations 256.6 235.3
Discontinued operations 243.5 358.9
500.1 594.2
Following the disposal of the Electrical division, the directors have re-defined the continuing Group's segmental
classes of business into Specialty chemicals, Industrial supplies and Group costs. Comparative amounts have been
restated on this basis.
(i) Joint ventures and associated companies by activity:
Specialty chemicals 23.2 4.9 14.4 16.9 4.0 15.2
Industrial supplies 10.8 1.5 7.6 11.0 1.2 5.2
Discontinued (iii) 8.2 (0.3) 1.6 20.8 (0.2) 3.0
Interest - 1.0 - - (1.5) -
42.2 7.1 23.6 48.7 3.5 23.4
(ii) Joint ventures and associated companies by origin:
Asia Pacific 0.9 0.3 1.2 0.7 - 1.1
North America 0.1 - 0.2 0.1 - 0.3
Africa 33.0 6.1 20.6 27.1 5.2 19.0
Discontinued (iii) 8.2 (0.3) 1.6 20.8 (0.2) 3.0
Interest - 1.0 - - (1.5) -
42.2 7.1 23.6 48.7 3.5 23.4
(iii) Discontinued joint ventures and associated companies:
Plumbing - - - 10.5 0.3 -
Electrical 8.2 (0.3) 1.6 10.3 (0.5) 3.0
Interest - (0.2) - - (0.3) -
8.2 (0.5) 1.6 20.8 (0.5) 3.0
Europe 4.9 (0.6) 1.1 17.2 (0.6) 2.6
Asia Pacific 3.0 0.2 0.2 3.2 0.2 0.1
North America 0.3 0.1 0.3 0.4 0.2 0.3
Interest - (0.2) - - (0.3) -
8.2 (0.5) 1.6 20.8 (0.5) 3.0
(iv) The impact of acquisitions in 2002 on turnover and profit before
taxation was not material to the Group or individual business
segments.
Page 10 of 14
Principal activities (continued)
Exceptional operating items Goodwill
2002 2001 2002 2001
Oper- Oper- Oper- Intan-gible Oper- Intan-
ating Pro- ating Pro- ating assets ating gilble
# million profit visions profit visions profit profit assets
(v) By activity:
Specialty chemicals - - (0.6) - (0.3) 3.3 (0.2) 2.6
Industrial supplies - - - (0.1) (0.4) 6.8 (0.5) 5.7
Discontinued:
Industrial supplies - - (0.1) - - - - -
Plumbing - - (0.1) - - - (0.1) 2.4
Electrical (5.8) (3.5) (5.6) (1.3) (3.7) - (3.8) 60.5
(5.8) (3.5) (6.4) (1.4) (4.4) 10.1 (4.6) 71.2
By origin:
Asia Pacific - - (0.1) - (0.3) 2.7 (0.2) 2.0
North America - - - - - 0.6 - 0.6
Africa - - (0.5) - (0.4) 6.8 (0.5) 5.7
Discontinued:
Europe (5.8) (3.5) (5.6) (1.4) (3.7) - (3.7) 59.4
Asia Pacific - - (0.2) - - - -
North America - - - - - (0.2) 3.5
(5.8) (3.5) (6.4) (1.4) (4.4) 10.1 (4.6) 71.2
2002 2001
Operating Net Operating Net
# million Turnover profit Assets Turnover profit Assets
(vi) Discontinued activities
By activity:
Industrial supplies 29.3 1.6 (3.0) 56.3 3.3 23.9
Plumbing - - - 94.8 (2.6) (4.6)
Electrical 222.4 (2.6) 93.0 228.6 2.3 165.2
251.7 (1.0) 90.0 379.7 3.0 184.5
By origin:
Europe 197.2 (5.2) 81.7 350.2 - 160.0
Asia Pacific 36.7 2.0 9.7 2.5 0.9 10.9
North America 17.8 2.2 (1.4) 27.0 2.1 13.6
251.7 (1.0) 90.0 379.7 3.0 184.5
Notes
1 The results for the year ended 28 December 2002 have been prepared on a basis consistent with the accounting
policies adopted in the accounts for the year ended 29 December 2001 with the exception of the adoption of FRS
19 'deferred tax' from the beginning of 2002. The adoption of FRS 19 represents a change in accounting policy
and the comparative figures have been restated accordingly. The impact of this change in policy has been to
increase the 2001 tax charge by #0.3 million.
Page 11 of 14
Notes (continued)
2 Following the disposal of a significant part of the total group, via the Electrical and Plumbing divestments,
net interest charges have been classified between continuing and discontinued operations on the basis of
average capital employed, adjusted for specific business factors. Comparative amounts have been restated on
this basis.
# million 2002 2001
3 Exceptional items:
Operating exceptional items - Rationalisation and redundancy (i) (5.8) (6.4)
Exceptional interest (iv) (1.5) -
Disposal of businesses: Loss on disposals and termination
of businesses (ii) (21.9) (55.3)
Use of provision made in previous year 12.3 41.9
Provision for diminution in value of businesses to be disposed of (iii) (92.0) (4.8)
Total non-operating exceptional items (i) (101.6) (18.2)
(i) The tax credit attributable to operating exceptional items is #nil (2001 #0.2 million), the tax credit
attributable to non-operating exceptional items is #0.1 million (2001 #nil).
(ii) The loss of #21.9 million represents the loss on disposal of the remaining plumbing businesses.
(iii) A provision of #91.5 million for diminution in value of the Electrical division was made in 2002
following the agreement to sell the division to the Eaton Corporation. Goodwill of #14.3 million
previously written off to reserves on the acquisition of these businesses, was written back through
reserves and included within this provision. The remaining #77.2 million was allocated against: goodwill
#(60.5) million, fixed assets #(9.1) million, investments #(2.0) million and working capital #(5.6)
million.
(iv) Included within the interest payable is an amount of #1.5 million relating to the early repayment of the
US Private Placement. This amount has been treated as an exceptional item in 2002.
4 (i) The profit and loss accounts of overseas companies are translated into sterling at average exchange rates
for the relevant accounting period. Their balance sheets and the foreign currency assets/liabilities of
the UK companies, including hedging instruments, are translated at the rates ruling on the last day of
the accounting period. The effect of the translation of unhedged net assets on reserves was a debit of
#1.3 million (2001 debit #2.7 million).
(ii) The translation of overseas profits before taxation at 2002 average rates of exchange, as compared with
the 2001 average rates increased losses by #5.0 million.
5 The profit and loss charge for taxation is calculated at current rates of corporation tax and overseas
tax on the profits for the year. It includes deferred tax calculated, at the appropriate rates, by the
liability method on any timing differences, to the extent that it is probable that a liability or asset
will crystallise.
Taxation has been allocated between continuing and discontinued on the basis of the legal entities or
businesses to which the relevant tax charge relates. Comparative amounts have been restated on this
basis.
6 Basic earnings per share are calculated by dividing the earnings attributable to ordinary shareholders by
the weighted average number of ordinary shares in issue during the year. For diluted earnings per share,
the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive
potential ordinary shares.
Page 12 of 14
Notes (continued)
7 The final ordinary dividend, of 4.5p per share will be paid on 2 June 2003 to members registered on 21
March 2003.
# million 2002 2001
Preference (non-equity): 6.0% cumulative first preference
shares and 4.5% cumulative second preference shares 0.1 0.1
Ordinary (equity): Interim 3.5p (2001 3.5p) 5.3 5.3
Proposed final 4.5p (2001 4.5p) 6.8 6.7
12.1 12.0
Total dividends 12.2 12.1
8 Reconciliation of operating profit to net cash inflow from operating
activities
Operating profit 24.5 23.3
Depreciation and amortisation of goodwill 24.5 29.6
Profit on sale of fixed assets - (0.6)
Increase in stocks (1.2) (5.2)
Decrease in debtors (6.0) 0.2
Increase in creditors (1.8) 10.6
Restructuring provisions 1.5 (0.6)
Other items 7.7 5.0
Net cash inflow from operating activities 49.2 62.3
# million At 29 Other At 28
December non-cash Translation December
2001 Cash flow changes difference 2002
9 Analysis of net debt
Cash in hand, at bank 35.2 2.5 - 1.7 39.4
Overdrafts (13.5) 8.0 - (0.4) (5.9)
Net cash 21.7 10.5 - 1.3 33.5
Debt due after one year (84.3) 18.6 68.1 (4.7) (2.3)
Debt due within one year (12.7) (15.2) (68.1) 3.5 (92.5)
Finance leases (3.8) 0.7 - (0.2) (3.3)
Debt (100.8) 4.1 - (1.4) (98.1)
Liquid resources (i) 22.7 (6.0) - 1.5 18.2
Net debt (56.4) 8.6 1.4 (46.4)
(i) Included within liquid resources at 28 December 2002 were money market funds of #0.4 million (2001 #2.3
million), bank and other deposits repayable in excess of 24 hours notice of #12.4 million (2001 #18.3
million) and listed current asset investments of #5.4 million (2001 #2.1 million).
Page 13 of 14
Notes (continued)
# million 2002 2001
10 Reconciliation of net cash flow to movement in net debt
Increase (decrease) in cash in the year 10.5 (17.8)
Cash outflow from decrease in debt and lease financing 4.1 79.4
Cash inflow from decrease in liquid resources (6.0) (44.4)
Change in net debt resulting from cash flows 8.6 17.2
New finance leases - (0.2)
Translation difference 1.4 (2.6)
Movement in net debt in the year 10.0 14.4
Net debt at the beginning of the year (56.4) (70.8)
Net debt at the end of the year (46.4) (56.4)
11 The abridged preliminary results for the year ended 28 December 2002 have been extracted from the latest
accounts. The full accounts, which have received an unqualified report by the Auditors, have not yet been
delivered to the Registrar of Companies.
12 Financial information is published on the Company's website. The directors are responsible for the maintenance
and integrity of the Company's website. Information published on the internet is accessible in many countries
with different legal requirements. Legislation in the United Kingdom governing the preparation and
dissemination of financial information may differ from legislation in other jurisdictions.
Copies of the Annual Report and Accounts for the year ended 28 December 2002 are available from Monday 7 April 2003
from the Secretary, Delta plc, 1 Kingsway, London WC2B 6NP.
Telephone 020 7836 3535
CONTACTS:
Mark Robson - Finance Director
Telephone - 020 7836 3535
Chris Birks - IRfocus (Analysts & Investors)
Telephone - 020 7861 3895
Andrew Fenwick - Brunswick (Press Enquiries)
Telephone - 020 7404 5959
Page 14 of 14
This information is provided by RNS
The company news service from the London Stock Exchange
END
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