Interim Results for the six months ended 30 September 2005
Sales Growth Drives SSL Towards Profit Target
For the six months ended(1):
30 September 30 September
2005 2004
£'m £'m
Continuing Operations
- Sales 222.5 203.2
- Operating profit before financing(2)costs 23.1 18.2
- Operating profit before financing and after income 24.1 19.3
from associates(2)
Profit before tax 17.3 10.5
Profit after tax from discontinued operations - 5.6
- Earnings per share(2)
- Continuing operations 6.0p 3.8p
- Discontinued - 3.0p
- Total 6.0p 6.8p
(1) Impact of IFRS reflected in both periods
(2) Relates to normal business only
* Underlying sales growth of 7.7%, Durex sales up 9.7%, Scholl footcare
sales up 18.6%
* Operating profit up 25% to £24.1 million on an underlying basis;
operating margin up one point to 11%
* Brand contribution increased to £86.2 million with margin maintained at
39% of sales
* Earnings per share on continuing operations up by 58% to 6.0 pence
(2004: 3.8 pence)
* Net debt at 30th September of £71.8 million down from 31st March by
£16.4 million as working capital is reduced to 21% of sales
Commenting, Garry Watts, Chief Executive said:
"This is a strong first half performance driven by the growth of Durex and
Scholl footcare. We're well on track to hit our target of doubling operating
profit to £52 million by March 2007 while continuing to generate both profit and
cash to invest in the future development of our brands."
----END---
For further information, please contact:
SSL International plc 020 7367 5773
Garry Watts, Chief Executive
Mark Moran, Group Finance Director
Jan Young, Head of Investor Relations
The Maitland Consultancy 020 7379 5151
William Clutterbuck
Brian Hudspith
Financial Performance
These results cover the first six months trading of our continuing consumer
healthcare business to 30th September 2005. The comparative figures also include
three months results of the disposed Regent and Hibi business and six months
results of the disposed Silipos business.
The commentary on performance below relates solely to our continuing business
and comparatives have been restated to exclude the effects of foreign currency
translation to aid understanding.
Sales
Sales for our continuing business for the first half of the year of £222.5
million are 7.7 per cent ahead of last year after excluding favourable foreign
currency movements of £3.3 million. Sales are analysed in Table 1.
Durex
Durex sales grew by almost 10 per cent in the period to £77.1 million; our
global market share has increased to over 30 per cent, with significant growth
particularly in the US and Eastern Europe.
We are continuing to position Durex as not only providing safe sex, but also
helping people have better sex. Our product range is evolving in three core
areas: condoms, personal lubricants and devices.
Our latest condoms provide enhanced benefits for users, such as the combined
ribs and dots on Pleasuremax and the novel sensation of Tingle. Durex Play, our
personal lubricants and devices range, is proving to be successful. We are
achieving widespread distribution and bringing new consumers to the brand. Our
most recent introduction, a vibrating ring, continues to expand our product
offering in the growing intimate care category. We are on track to achieve £10
million annualised sales of Durex Play by 31 March 2006.
Scholl Footcare
Sales of Scholl footcare were £54.3 million, up by 18.6 per cent. This growth is
driven largely by the launch of Party Feet in Continental Europe in the first
half of the year. We have also seen a pleasing performance from the core
footcare categories of insoles and odour control, which was supported by a TV
advertising campaign. The latest market data indicates that Scholl footcare now
has around a quarter of the global footcare market.
Continuing our investment in innovation is the key to future growth of Scholl
footcare. We are currently building our range of foot skincare products, which
will initially include an improved product for the treatment of cracked heels, a
wart removal product and an innovative foot skincare mousse. We recently won a
number of awards in Beauty magazine including 'Best Foot Cream'.
Scholl Footwear
Footwear sales, mainly of our Autumn/Winter range, declined in the half year by
9.4 per cent to £27.8 million.
We have reduced the sales of very low margin products and have widened the
distribution base in a number of our key markets. The brand ideal of 'Foot
science made relevant' is now established throughout our range development and
there are encouraging signs for the important second half Spring/Summer season.
Our strategy for footwear sales development remains to create separate ranges
for the pharmacy market and for the shoe trade. We have also recently
established www.schollshoes.co.uk to facilitate on-line sales.
Locally Owned Brands
Overall, our range of locally owned brands declined by 2.5 per cent to £35.1
million. Approximately 60 per cent of our locally owned brands are in the UK
market and comprise OTC remedies in six categories, such as analgesics
(Cuprofen, Paramol and Syndol). Whilst our market share has remained steady or
grown in response to advertising, the flat retail environment has resulted in a
decline in sales of £0.5 million. By contrast in Southern Europe sales of our
range of mother and baby products, Mister Baby, have grown well from new product
launches of feeding bottles and baby wipes.
Other Sales
Other consumer sales from retail stores, distribution of third party products,
(such as Marigold housegloves) and unbranded condoms have grown by 13.1 per cent
to £21.6 million. An increase in the supply of Hibi antiseptics has driven the
increase in third party supply sales from £4.6 million to £6.6 million.
Table 1
For 6 months ended
As reported As reported Adjusted Adjusted
September September September 2004 Sales Growth
2005 2004 £'m %
£'m £'m
Branded
Consumer 194.3 179.4 182.8 6.3%
Durex 77.1 69.0 70.3 9.7%
Scholl Footcare 54.3 44.9 45.8 18.6%
Scholl Footwear 27.8 30.0 30.7 (9.4%)
Locally Owned 35.1 35.5 36.0 (2.5%)
Brands
Other Consumer 21.6 19.2 19.1 13.1%
Third Party Supply 6.6 4.6 4.6 43.5%
Continuing Business 222.5 203.2 206.5 7.7%
Brand Contribution, Fixed Costs and Operating Profit (from normal operations)
Sales growth at constant gross margins has driven the increase in brand
contribution of £5.6 million to £86.2 million after increasing investment in
advertising expenditure by £1.2 million; brand contribution remains at 39 per
cent of sales. Overhead costs have increased marginally as provisions have been
made for the new performance incentive schemes - reflecting the strong financial
performance of the Group thus far. Operating profit has increased by 25 per cent
to £24.1 million and operating margin has increased by 1 per cent to 10.8 per
cent.
Cashflow & Net Borrowings
Free cash flow of £23.3 million was generated in the period driven primarily by
improvements in cash collection from trade debtors (generating c£20 million) and
controlling capital expenditure to £2 million. Closing net borrowings were £71.8
million compared to £83.5 million last year.
Interest & Taxation
Interest costs for the period were £6.8 million (2004: £8.8 million). The
underlying interest charge has reduced from £7.4 million to £3.9 million
reflecting the lower level of net borrowings of the Group. The impact of
reflecting accounting changes relating to IAS 19 "Employee Benefits" and IAS 39
"Financial Instruments" for the first time has increased the interest charge by
£1.7 million (2004: £1.4 million) and £1.2 million (2004: nil) respectively.
The tax charge of £5.1 million (2004: £2.8 million) represents an effective tax rate of 29.5%.
Earnings & Dividends
Earnings per share from our continuing business grew by 58 per cent to 6.0 pence.
In line with our previously stated policy, the Board has declared an interim dividend of 2.0 pence per ordinary share, which is the same level as in the previous year. This will be payable on 1 March 2006 to shareholders on the register on 3 February 2006.
Implementation of IFRS
We have, for the first time implemented "International Financial Reporting Standards" ("IFRS"), which has had a minimal overall impact on our financial statements, in line with the summary given in September this year.
Outlook
We are fully focused on our portfolio of brands. We have strong market positions around the world and good growth opportunities. Our new product pipeline is expanding and as our cash flow and profits grow we are continuing to increase investment in our brands. We have a clear agenda to grow shareholder value and are confident of achieving our target of doubling operating profit by 2006/07.
Full consolidated interim income statement
For the 6 months ended 30 September 2005
6 months to 6 months to 6 months to 6 months to 6 months to
30 Sept 30 Sept 30 Sept 30 Sept 30 Sept
2005 2004 2004 2004 2004
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Business
Total and disposal and
normal Normal Factory post disposal
business business closure restructuring Total
£'m £'m £'m £'m £'m
-------- -------- -------- -------- --------
Revenue 222.5 203.2 - - 203.2
Cost of sales (85.9) (76.4) - - (76.4)
-------- -------- -------- -------- --------
Gross profit 136.6 126.8 - - 126.8
Distribution expenses (76.4) (73.2) - - (73.2)
Administrative expenses (37.1) (35.4) - (8.5) -------- -------- -------- -------- (43.9)
--------
Operating profit before
financing costs 23.1 18.2 - (8.5) 9.7
-------- -------- -------- -------- --------
Financial income 0.6 0.9 - - 0.9
Financial expenses (7.4) (9.7) - - (9.7)
-------- -------- -------- -------- --------
Net financing costs (6.8) (8.8) - - (8.8)
Share of profit of associates 1.0 1.1 - - 1.1
-------- -------- -------- -------- --------
Profit before taxation 17.3 10.5 - (8.5) 2.0
Income tax expense (5.1) (2.8) - 3.4 0.6
-------- -------- -------- -------- --------
Profit after tax but before
gain on discontinued
operations 12.2 7.7 - (5.1) 2.6
Discontinued operations - 5.6 (0.8) 20.1 24.9
-------- -------- -------- -------- --------
Profit for the financial
period/year 12.2 13.3 (0.8) 15.0 27.5
Attributable to:
Equity holders of the parent 11.3 12.8 (0.8) 15.0 27.0
Minority interest 0.9 0.5 - - 0.5
-------- -------- -------- -------- --------
Profit for the financial
period/year 12.2 13.3 (0.8) 15.0 27.5
-------- -------- -------- -------- --------
Basic earnings per share
(pence)
- continuing operations 6.0 3.8 1.1
- discontinued operations - 3.0 13.2
-------- -------- --------
Total basic earnings per
share (pence) 6.0 6.8 14.3
Diluted earnings per
share (pence)
- continuing operations 6.0 3.8 1.1
- discontinued operations - 2.9 13.1
-------- -------- --------
Total diluted earnings per
share (pence) 6.0 6.7 14.2
-------- -------- --------
12 months to 12 months to 12 months to 12 months to
31 March 31 March 31 March 31 March
2005 2005 2005 2005
Business
disposal and
Normal Factory post disposal
business closure restructuring Total
£'m £'m £'m £'m
-------- -------- -------- --------
Revenue 426.3 - - 426.3
Cost of sales (168.0) (10.3) - (178.3)
-------- -------- -------- --------
Gross profit 258.3 (10.3) - 248.0
Distribution expenses (144.3) - - (144.3)
Administrative expenses (75.7) (1.1) (16.7) (93.5)
-------- -------- -------- --------
Operating profit before
financing costs 38.3 (11.4) (16.7) 10.2
-------- -------- -------- --------
Financial income 2.4 - - 2.4
Financial expenses (15.7) - - (15.7)
-------- -------- -------- --------
Net financing costs (13.3) - - (13.3)
Share of profit of associates 1.9 - - 1.9
-------- -------- -------- --------
Profit before taxation 26.9 (11.4) (16.7) (1.2)
Income tax expense (7.3) 4.9 7.2 4.8
-------- -------- -------- --------
Profit after tax but before
gain on discontinued
operations 9.6 (6.5) (9.5) 3.6
Discontinued operations 6.0 (0.6) 16.2 21.6
-------- -------- -------- --------
Profit for the financial
period/year 25.6 (7.1) 6.7 25.2
Attributable to:
Equity holders of the parent 23.9 (7.1) 6.7 23.5
Minority interest 1.7 - - 1.7
-------- -------- -------- --------
Profit for the financial
period/year 25.6 (7.1) 6.7 25.2
-------- -------- -------- --------
Basic earnings per
share (pence)
- continuing operations 9.5 1.0
- discontinued operations 3.1 11.4
-------- --------
Total basic earnings per
share (pence) 12.6 12.4
Diluted earnings
per share (pence)
- continuing operations 9.5 1.0
- discontinued operations 3.1 11.4
-------- --------
Total diluted earnings per
share (pence) 12.6 12.4
-------- --------
Full consolidated interim balance sheet
As at 30 September 2005
30 September 30 September 31 March
2005 2004 2005
(Unaudited) (Unaudited)
£'m £'m £'m
----------- ----------- -----------
ASSETS
Property, plant and equipment 71.7 81.6 74.8
Goodwill 12.9 16.9 12.9
Other intangible assets 66.7 64.5 67.2
Deferred tax assets 41.0 30.3 37.0
Investments in associates 3.2 2.9 2.0
Available for sale investments 0.1 0.1 0.1
----------- ----------- -----------
Total non-current assets 195.6 196.3 194.0
Inventories 71.1 64.6 67.3
Trade receivables 113.3 109.9 133.8
Current tax receivable 1.6 3.1 0.8
Derivative financial
instruments 0.4 - -
Other receivables 14.8 28.3 19.7
Cash and cash equivalents 39.6 88.6 40.8
----------- ----------- -----------
Total current assets 240.8 294.5 262.4
----------- ----------- -----------
Total assets 436.4 490.8 456.4
----------- ----------- -----------
LIABILITIES
Bank overdraft (6.3) (4.8) (5.6)
Trade and other payables (102.6) (97.7) (108.4)
Interest-bearing loans and
borrowings (24.1) (76.5) (34.6)
Derivative financial
instruments (0.3) - -
Current tax payable (24.6) (23.9) (22.6)
----------- ----------- -----------
Total current liabilities (157.9) (202.9) (171.2)
Interest-bearing loans (75.3) (90.8) (88.8)
Derivative financial
instruments (5.4) - -
Deferred tax liabilities (7.2) (13.3) (6.2)
Employee benefits (95.1) (69.6) (82.4)
Provisions (28.5) (29.5) (41.2)
Other liabilities (2.1) (2.6) (2.6)
----------- ----------- -----------
Total non-current liabilities (213.6) (205.8) (221.2)
----------- ----------- -----------
Total liabilities (371.5) (408.7) (392.4)
----------- ----------- -----------
NET ASSETS 64.9 82.1 64.0
----------- ----------- -----------
EQUITY
Issued capital 19.0 18.9 19.0
Other reserves 177.5 177.4 177.5
Cumulative foreign exchange reserve 2.5 1.3 0.1
Retained earnings (144.0) (123.3) (141.0)
----------- ----------- -----------
Total equity attributable to 55.0 74.3 55.6
equity holders of the parent
Minority interest 9.9 7.8 8.4
------------- ------------- -------------
TOTAL EQUITY 64.9 82.1 64.0
------------- ------------- -------------
Full consolidated interim statement of recognised income and expense
for the 6 months ended 30 September 2005
6 months to 6 months to 12 months to
30 September 30 September 31 March
2005 2004 2005
(Unaudited) (Unaudited)
£'m £'m £'m
--------- --------- ---------
Actuarial losses on defined benefit (11.9) (1.3) (16.6)
plans
Currency translation differences on 2.4 1.3 0.1
foreign currency net investments
Taxation on gains and losses taken 3.4 0.1 4.7
directly to reserves
--------- --------- ---------
Income and expense recognised (6.1) 0.1 (11.8)
directly in equity
Profit for the financial period/year 12.2 27.5 25.2
--------- --------- ---------
Total recognised income and expense 6.1 27.6 13.4
for the period/year
--------- --------- ---------
Attributable to:
- Equity holders of the parent 5.2 27.1 11.7
- Minority interest 0.9 0.5 1.7
--------- --------- ---------
Total recognised income and expense 6.1 27.6 13.4
for the period/year
--------- --------- ---------
Full consolidated interim statement of cash flows - indirect method
for the 6 months ended 30 September 2005
6 months to 6 months to 12 months to
30 September 30 September 31 March
2005 2004 2005
(Unaudited) (Unaudited)
£'m £'m £'m
--------- --------- ---------
Cash flows from operating activities:
Profit for the period/year 12.2 27.5 25.2
Adjustments for:
Depreciation 5.6 7.9 17.0
Amortisation of intangibles and
impairment of goodwill 0.4 0.5 3.1
Share-based payment charge 0.9 0.3 0.6
Investment income (0.6) (0.9) (2.4)
Interest expense 7.4 24.1 30.2
Share of profit of associate (1.0) (1.1) (1.9)
Loss on sale of property, plant and
equipment - 0.7 2.8
Profit on sale of OTC brands and
investments - (0.3) (0.5)
Gain on sale of discontinued
operations net of tax - (34.5) (30.7)
Income tax expense 5.1 1.0 (3.1)
--------- --------- ---------
Operating profit before changes in
working capital and provisions 30.0 25.2 40.3
Decrease/(increase) in trade and
other receivables 18.9 7.5 (7.3)
(Increase)/decrease in inventories (3.4) 4.8 (1.8)
Decrease in trade and other payables (6.9) (23.5) (11.5)
(Decrease)/increase in provisions
and employee benefits (7.5) (0.9) 7.5
--------- --------- ---------
Cash generated from the operations 31.1 13.1 27.2
Interest paid (4.6) (25.5) (31.1)
Income taxes paid (3.4) (2.2) (5.8)
Dividend paid to minority interests - (1.7) (2.4)
--------- --------- ---------
Net cash from operating activities 23.1 (16.3) (12.1)
--------- --------- ---------
Cash flows from investing activities:
Proceeds from sale of plant and equipment 0.2 7.5 7.6
Proceeds from sale of OTC brands
and investments - 0.3 0.8
Disposal of discontinued
activities, net of cash disposed of 0.3 149.8 145.5
Interest received 0.5 0.7 2.7
Dividend received from associate 1.4 1.0 0.9
Acquisition of property, plant and
equipment (2.2) (4.0) (6.8)
Acquisition of intangible assets - - (0.3)
Payment of deferred consideration - (0.2) (0.3)
--------- --------- ---------
Net cash from investing activities 0.2 155.1 150.1
--------- --------- ---------
Cash flows from financing activities:
Proceeds from issue of share capital - 0.2 0.3
Repayment of borrowings (17.5) (163.2) (206.9)
Payment of finance lease liabilities (0.5) (0.4) (0.8)
Dividends (8.0) (8.0) (11.8)
--------- --------- ---------
Net cash from financing activities (26.0) (171.4) (219.2)
--------- --------- ---------
Net decrease in cash and cash
equivalents (2.7) (32.6) (81.2)
Cash and cash equivalents, and bank
overdraft at start of period/year 35.2 106.5 106.5
Consolidation of former associate - 9.9 9.7
Effect of exchange rate fluctuations 0.8 - 0.2
on cash held
--------- --------- ---------
Cash and cash equivalents, and bank
overdraft at end of period/year 33.3 83.8 35.2
--------- --------- ---------
Full reconciliation of net cash flow to movement in net debt
for the 6 months ended 30 September 2005
6 months to 6 months to 12 months to
30 September 30 September 31 March
2005 2004 2005
(Unaudited) (Unaudited)
£'m £'m £'m
---------- ---------- ----------
Net increase in cash and cash
equivalents (2.7) (32.6) (81.2)
Cash outflow from decrease in debt
and lease financing 18.0 163.6 207.7
New finance leases - (1.8) (1.8)
Debt transferred as part of disposals - 5.5 5.3
Opening net debt included re subsidiary - 9.9 9.7
Foreign exchange differences and
other non-cash changes 1.2 (0.6) (0.4)
---------- ---------- ----------
Decrease in net debt in the
period/year before the impact of 16.5 144.0 139.3
IAS 32 and IAS 39
IAS 32 and IAS 39 adjustments to
net debt in the period/year (1.2) - -
---------- ---------- ----------
Decrease in net debt in the
period/year 15.3 144.0 139.3
Net debt at the end of the previous
period/year (88.2) (227.5) (227.5)
Transition adjustments on adoption
of IAS 32 and IAS 39 (note 3) 1.1 - -
---------- ---------- ----------
Opening net debt at beginning of
the period/year (87.1) (227.5) (227.5)
---------- ---------- ----------
Closing net debt at the end of the
period/year (71.8) (83.5) (88.2)
---------- ---------- ----------
Full reconciliation of movements in equity
for the 6 months ended 30 September 2005
6 months to 6 months to 12 months to
30 September 30 September 31 March
2005 2004 2005
(Unaudited) (Unaudited)
£'m £'m £'m
---------- ---------- ----------
Equity attributable to equity
holders of the parent:
At end of the previous period/year 55.6 54.7 54.7
Transition adjustments on adoption
of IAS 32 and IAS 39 (note 3) 1.3 - -
--------- ---------- ----------
At beginning of the period/year 56.9 54.7 54.7
Total recognised income and expense
for the period/year 5.2 27.1 11.7
Dividends to equity holders of the
parent (8.0) (8.0) (11.8)
Share-based payments 0.9 0.3 0.6
Shares issued in the period/year - 0.2 0.4
---------- ---------- ----------
At end of the period/year 55.0 74.3 55.6
Minority interests 9.9 7.8 8.4
---------- ---------- ----------
Total equity 64.9 82.1 64.0
---------- ---------- ----------
Notes to the full unaudited interim financial statements - extracts
for the 6 months ended 30 September 2005
1. Segmental analysis
Geographical segments
The group is comprised of the following main geographical segments:
- United Kingdom and Continental Europe
- Americas
- Asia Pacific and Rest of the World
(a) GEOGRAPHICAL SEGMENTS
6 months to 6 months to 6 months to 6 months to 12 months to 12 months to
30 September 30 September 30 September 30 September 31 March 31 March
2005 2005 2004 2004 2005 2005
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
£'m £'m £'m £'m £'m £'m
-------- -------- -------- -------- -------- --------
Segment revenue By location By location By location By location By location By location
Continuing of assets of customers of assets of customers of assets of customers
operations -
external
- United Kingdom and
Continental Europe 171.1 166.3 160.0 155.9 331.2 303.2
- Americas 14.4 14.6 11.4 11.4 24.0 24.5
- Asia Pacific and Rest
of the World 37.0 41.6 31.8 35.9 71.1 98.6
222.5 222.5 203.2 203.2 426.3 426.3
Continuing operations -
intra-segment
- United Kingdom and
Continental Europe 64.6 - 66.3 - 125.5 -
- Americas - - - - - -
- Asia Pacific and Rest
of the World 12.9 - 16.6 - 27.2 -
- Eliminations (77.5) - (82.9) - (152.7) -
Total continuing revenue 222.5 222.5 203.2 203.2 426.3 426.3
Discontinued operations
- United Kingdom and
Continental Europe - - 19.3 12.3 19.8 12.5
- Americas - - 17.9 17.6 17.2 17.2
- Asia Pacific and Rest
of the World - - 2.7 2.6 2.9 2.8
- Eliminations - - (7.4) - (7.4) -
-------- -------- -------- -------- -------- --------
222.5 222.5 235.7 235.7 458.8 458.8
Total Normal Normal Total Total Normal
Segment result business business business business business business
Continuing operations
- United Kingdom and
Continental Europe 16.7 16.7 13.4 4.9 (0.2) 27.4
- Americas 0.9 0.9 (0.2) (0.2) 0.9 0.9
- Asia Pacific and Rest
of the World 5.5 5.5 5.0 5.0 9.5 10.0
23.1 23.1 18.2 9.7 10.2 38.3
Discontinued operations
- United Kingdom and
Continental Europe - - 7.1 47.8 44.1 7.6
- Americas - - 0.4 13.0 13.1 0.3
- Asia Pacific and Rest
of the World - - - (19.9) (19.4) 0.1
Consolidated segment result 23.1 23.1 25.7 50.6 48.0 46.3
Share of profit of
associates - continuing * 1.0 1.0 1.1 1.1 1.9 1.9
Net financing costs -
continuing (6.8) (6.8) (8.8) (8.8) (13.3) (13.3)
Net financing costs -
discontinued - - - (14.4) (14.5) -
Income tax - continuing (5.1) (5.1) (2.8) 0.6 4.8 (7.3)
Income tax - discontinued - - (1.9) (1.6) (1.7) (2.0)
-------- -------- -------- -------- -------- --------
Profit for the financial
period/year 12.2 12.2 13.3 27.5 25.2 25.6
* Share of profit of associates relates wholly to operations based in the Asia
Pacific and Rest of the World geographical segment.
(b) BUSINESS SEGMENTS
6 months to 6 months to 12 months to
30 September 30 September 31 March
2005 2004 2005
(Unaudited) (Unaudited)
£'m £'m £'m
-------- -------- --------
Segment revenue
Continuing operations - external
- Branded condoms 77.1 69.0 146.1
- Footwear 27.8 30.0 68.0
- Footcare 54.3 44.9 85.3
- Locally owned brands 35.2 35.5 72.3
- Other consumer 21.5 19.2 45.1
- Third party supply 6.6 4.6 9.5
-------- -------- --------
Total continuing revenue 222.5 203.2 426.3
Discontinuing operations - external
- Industrial gloves - - -
- Wound management - 1.5 1.6
- Medical gloves and antiseptics business - 25.9 25.9
- Silipos - 5.1 5.0
-------- -------- --------
222.5 235.7 458.8
Notes to the full unaudited interim financial statements - extracts
for the 6 months ended 30 September 2005
2. Earnings per share and diluted earnings per share
Earnings per share has been calculated by dividing the profit attributable to
ordinary shareholders by the weighted average number of ordinary shares in issue
during the period/year.
The profit attributable to ordinary shareholders is as follows:
6 months to 6 months to 6 months to 6 months to 12 months to 12 months to
30 September 30 September 30 September 30 September 31 March 31 March
2005 2005 2004 2004 2005 2005
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Normal Normal Normal
Total business business Total business Total
£'m £'m £'m £'m £'m £'m
-------- -------- -------- -------- -------- --------
Profit for the period/year: 11.3 11.3 12.8 27.0 23.9 23.5
Discontinued operations - - (5.6) (24.9) (6.0) (21.6)
For basic earnings per share 11.3 11.3 7.2 2.1 17.9 1.9
-------- -------- -------- -------- -------- --------
The calculation of diluted earnings per share uses basic earnings as defined
above, and the basic weighted average number of ordinary shares in issue during
the period/year, adjusted as follows:
6 months to 6 months to 6 months to 6 months to 12 months to 12 months to
30 September 30 September 30 September 30 September 31 March 31 March
2005 2005 2004 2004 2005 2005
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Normal Normal Normal
Total business business Total business Total
-------- -------- -------- -------- -------- --------
Weighted average number
of shares (millions):
Number of ordinary
shares at start of
period/year 189.5 189.5 189.4 189.4 189.4 189.4
Effect of shares issued - - - - - -
in the period/year
For basic earnings
per share 189.5 189.5 189.4 189.4 189.4 189.4
Dilutive effect of
share options 0.4 0.4 0.6 0.6 0.5 0.5
-------- -------- -------- -------- -------- --------
For diluted earnings 189.9 189.9 190.0 190.0 189.9 189.9
per share
--------- -------- -------- -------- -------- --------
3. Opening reserve adjustment
The Group adopted IAS 32 'Financial Instruments: Presentation and Disclosure'
and IAS 39 'Financial Instruments: Recognition and Measurement' from 1 April
2005 and has taken advantage of the exemption within IFRS 1 'First Time Adoption
of IFRS' to apply IAS 32 and IAS 39 prospectively only and not to
retrospectively restate prior period comparatives upon adoption. The adoption of
IAS 32 and IAS 39 resulted in an increase in net assets of £1.3 million at 1
April 2005 from those reported at 31 March 2005, comprising the introduction of
forward contract fair values of £0.2 million and a reduction in nebt debt of
£1.1 million.
4. Listing rules note for interim results announcement
The financial information set out above does not constitute full financial
statements within the meaning of section 240 of the Companies Act 1985.
The accounting policies followed in this interim report are the same as those
published by the Group on 28 September 2005 within the 'Restatement of financial
information under International Financial Reporting Standards', which is
available from the Company's registered office at 35 New Bridge Street, London,
EC4V 6BW with the exception of the adoption of IAS 32 'Financial Instruments:
Presentation and Disclosure' and IAS 39 'Financial Instruments: Recognition and
Measurement' which apply to the Group from 1 April 2005. The opening reserves
have been revised as referred to in note 3.
The comparative figures for the period ended 30 September 2004 and the financial
year ended 31 March 2005 are not the Company's statutory accounts for that
financial year. Those accounts have been reported on by the Company's auditors
and delivered to the Registrar of Companies. The report of the auditors was
unqualified and did not contain a statement under section 237(2) or (3) of the
Companies Act 1985.
Copies of the interim results are being sent to shareholders. Further copies of
the interim results can be obtained from the Company's registered office given
above.