INTERIM ANNOUNCEMENT 2004

• Total turnover £406.2 million (2003: £442.6 million) and turnover from continuing operations £371.4 million (2003: £379.2 million). Adverse currency translation impact of £21.5m from continuing operations.
• Underlying operating profit £24.9 million (2003: £21.4 million) and underlying operating profit from continuing operations up 33% to £25.2 million. (2003: £19.0 million). Adverse currency translation impact of £2.7 million on underlying operating profit from continuing operations.
• Underlying EPS of 4.7 pence (2003: 3.4 pence).
• Underlying operating margins for continuing businesses improved to 6.8%.
• Operating exceptional costs of £17.5 million in the period (2003: £15.3 million) arising from profit improvement initiatives and £2.7 million (2003: £3.0 million) from competition matters and associated
• Net debt reduced to £159.3 million (2003: £236.5 million).
• Profit improvement plan announced in February 2004 progressing to plan.
• Raised £54.2 million from rights issue in February 2004.
• Auto and Consumer global business disposal for $77.5 million completed in June 2004, of which $17.5 million is deferred and payable on performance criteria for 2004 and 2005.

Commenting on the results, Chief Executive Officer, Warren Knowlton said:

"There are indications that there is an improving position in our North American and in our smaller but growing Asian markets; however, improvement is not yet apparent in some European markets. We are not relying on a market upturn to improve trading performance. Our emphasis will remain upon our continuing strategy of improving profitability through cost reductions and increasing efficiency whilst maintaining strong cash management and reducing debt. It is our intention to grow the business from a stronger and more focused sales base."

Enquiries

*      Defined as statutory operating profit of £4.1 million (2003: £2.2 million) before goodwill amortisation of £3.3 million (2003: £3.9 million) and operating exceptional charges of £17.5 million (2003: £15.3 million). This measure of earnings is shown because the Directors consider that it gives a better indication of underlying performance.
**    Defined as statutory loss before tax of £45.1 million (2003: loss £21.0 million) before goodwill amortisation of £3.3 million (2003: £3.9 million) and corporate and operating exceptional charges of £59.8 million (2003: £30.9 million).
***  Basic underlying loss per share of 16.7p (2003: loss 9.9p) adjusted to exclude the after tax impact of corporate and operating exceptional items of 21.4p (2003: 13.3p).

Full Interim Statement 2004 - PDF, 1.2 MB (opens in a new window)