Brand led growth as restructuring nears completion

                       Year Ended March             2004               2003
                                                             £'m                 £'m

Sales

   Continuing Consumer
                                                            408.2               397.5
   Other
                                                            194.2               211.4
   Total Sales
                                                            602.4               608.9

Operating profit*
                                                            74.5                 82.0

Continuing consumer operating profit
                                                            26.1                 27.4

Profit before tax*
                                                            53.3                 59.5

(Loss)/Profit before tax
                                                            (7.5)                39.1

Free cash flow
                                                            85.2                 39.1

Earnings Per Share*
                                                            20.3p               22.0p

(Loss)/Earnings Per Share
                                                            (4.2)p              13.1p

• Disposals programme nearing completion; business refocused and debt reduced
• Continuing consumer sales increase by 2.7%; growth in Durex of 7.4% to £140.8m and Scholl footcare of 3.7% to £82.1m
• Total operating margin of 12.4% (2003:13.5%) before the effect of medical disposals
• Free cashflow of £85 million generated of which £61 million results from disposals, against £39 million last year
• Working capital efficiency improved to 19.6% of sales (2003:21.3%)
• Dividend rebased to reflect size of on-going business
  
  *Including results of discontinued businesses, but before exceptional charges of £40.7 million (2003: £21.2 million) in operating profit and, including losses on disposal, of £60.8 million (2003: £20.4 million) in profit before tax

Commenting, Ian Martin, Chairman said:

 

“These results and the approaching completion of our disposal programme mark the beginning of a new era for SSL as a focused consumer healthcare company. Our balance sheet is strengthened and for the first time since the merger with LIG in 1999, we will be able to focus single-mindedly on growing the value of our brand portfolio.

 

Garry Watts , Chief Executive added :

 

“We are seeing evidence of sustained growth in our brands. Durex has maintained the growth seen in the first half, whilst both Scholl footcare and the Over-The-Counter portfolio performed much better in the second half. Our footwear business is benefiting from new direction and new products and its prospects for the current year are promising.

 

“We have a team of committed people at SSL who are determined to drive growth in the value of our brands whilst as far as possible eliminating unnecessary cost from the business. If we achieve these objectives, our operating margins for the consumer business will rise towards the double digit levels seen in the recent past.”

 

For further information, please contact:

SSL International plc
Garry Watts , Chief Executive
Jan Young, Head of Investor Relations

 

020 7367 5773

The Maitland Consultancy
William Clutterbuck
Brian Hudspith
020 7379 5151

 

A Portable Document Format version of the Preliminary results for the Year ended 31 March 2003 can be viewed or downloaded from our Downloads page by clicking here.