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RNS Number:5627J
TF Informa PLC
Part 3 : For preceding part double-click [nRN1J5627J]
3 Operating Profit
Continuing Total Total
operations Acquisitions 2004 2003
3 (a) Net operating costs
£'000 £'000 £'000 £'000
Increase in stock of finished goods and work in progress (977) (65) (1,042) (2,635)
Raw materials and consumables 154,225 4,421 158,646 162,745
Depreciation and other amounts written off tangible and
intangible fixed assets 53,943 4,616 58,559 29,996
Staff costs in total 146,969 3,676 150,645 133,307
Other operating charges
(including exceptional items (note 4)) 77,910 10,868 88,778 72,093
432,070 23,516 455,586 395,506
The acquisition of Dekker represents the only material acquisition in the year.
The impact on operating costs is shown above.
4 Exceptional Items
2004 2003
£'000 £'000
Exceptional operating costs 9,963 11,829
Goodwill impairment 15,000 -
Exceptional items charged to operating profit 24,963 11,829
Merger costs 15,703 -
Loss on disposal of tangible fixed assets 921 -
(Profit) / loss on sale or termination of a business (3) 3,822
Amounts written off investments 200 -
Bank loan facility fees expensed on merger 2,415 -
44,199 15,651
Tax on operating exceptional items (2,486) (2,576)
Tax on non-operating exceptional items (3,379) -
38,334 13,075
Operating costs for the year ended 31 December 2004 are stated after charging
exceptional items of £24,963,000, (2003: £11,829,000) consisting of impairment
of £15,000,000 to goodwill, costs of re-organising book publishing operations in
the UK and US of £4,200,000, redundancy costs of £3,657,000, property move costs
of £762,000 and other costs of reorganisation of £1,344,000.
The 2003 charge of £11,829,000 consists of costs of re-organising academic
publishing operations in the US of £1,705,000, costs associated with the
attempted acquisition of Bertelsmann Springer of £1,581,000, the write-off of
bank loan facility fees of £874,000 and business restructuring costs of
£7,669,000.
5 Tax on Profit on Ordinary Activities
The tax charge comprises:
2004 2003
Current tax £'000 £'000
UK corporation tax at 30% (2003: 30%) 6,990 10,551
Foreign Tax 8,979 4,661
Adjustments in respect of prior years (6,964) (856)
Total current tax 9,005 14,356
Deferred tax 3,279 2,187
Total tax on profit on ordinary activities 12,284 16,543
6 Dividends
2004 2003
£'000 £'000
Ordinary equity shares
Interim
Taylor & Francis (0.9 per share)* - 1,359
Informa (2.66p per share) - 3,651
T&F Informa (2.8p per share) 8,342 -
Final**
Taylor & Francis (1.9p per share)* - 2,755
Informa (4.94p per share) - 7,438
T&F Informa (5.33p per share) 15,869 -
24,211 15,203
* As adjusted to take account of the transfer of shares in Taylor & Francis
Group plc to T&F Informa plc on the merger of Taylor & Francis Group plc and
Informa Group plc, (dividend per share adjusted by a factor of 1.7).
** This dividend was paid under a scheme of arrangement instead of as a final
dividend.
Holders of 1,739,339 ordinary shares of 10p each have waived their rights to
receive dividends.
7 Earnings per Share
Basic
The basic earnings per share calculations are based on a profit on ordinary
activities after taxation of £126,000 (2003: profit of £16,349,000). This profit
on ordinary activities after taxation is then divided by the weighted average
number of shares in issue less those non-vested shares held by the employee
share ownership trusts, which is 296,971,000 (2003: 276,493,000).
Diluted
The diluted earnings per share calculation is based on the basic earnings per
share calculation above except that the weighted average number of shares
includes all dilutive options granted by the balance sheet date as if those
options had been exercised on the first day of the accounting period or the date
of the grant, if later, giving a weighted average of 298,757,000 (2003:
277,604,000). In accordance with FRS 14 the weighted average number of shares
includes the estimated maximum number of shares payable to the vendors of
Routledge Publishing Holdings Limited assuming that there are no claims for
compensation by the Group that will reduce this deferred consideration and
assuming that the Company does not exercise its option to pay the balance of
deferred consideration in cash. The deferred consideration shares are also
assumed for the purposes of this calculation to have been issued on 1 January
2004 at the closing mid-market share price on 31 December 2004 of 377.5p, making
336,000 (2003: 423,000) ordinary shares that could potentially be issued.
Diluted (adjusted)
The diluted adjusted earnings per share calculation has been made to allow
shareholders to gain a better understanding of the trading performance of the
Group. It is based on the diluted earnings per share calculation above except
that profits are adjusted for goodwill amortisation and the after tax effect of
exceptional items as follows:
2004 2003
£'000 £'000
Profit on ordinary activities after taxation attributable to shareholders 126 16,349
Goodwill amortisation 34,741 21,310
Operating exceptional items after tax (note 4) 22,477 9,253
Non operating exceptional items after tax (note 4) 15,857 3,822
Adjusted profit on ordinary activities after taxation 73,201 50,734
The table below sets out the adjustments in respect of diluted potential
ordinary shares:
2004 2003
No. '000 No. '000
Weighted average number of shares used in basic earnings per share calculation 296,971 276,493
Share options 1,450 688
Shares potentially to be issued or allotted 336 423
Weighted average number of shares used in diluted earnings per share calculation 298,757 277,604
8 Reconciliation of Movements in Consolidated Equity
Shareholders' Funds
2003
2004 Restated
£'000 £'000
Profit for the year 126 16,349
Dividends (24,211) (15,203)
Retained (loss) / profit for the year (24,085) 1,146
Currency translation difference on foreign currency net investments (9,817) (3,802)
Proceeds of new share issues (net) 3,416 64,330
(30,486) 61,674
Opening equity shareholders' funds 161,673 103,640
Prior year adjustment; reclassification of investment in ESOP shares - (3,641)
Closing equity shareholders' funds 131,187 161,673
9 Reconciliation of Operating Profit to Net Cash Inflow from
Operating Activities
2004 2003
£'000 £'000
Operating profit 48,639 46,170
Merger costs (15,703) -
Depreciation and amortisation 58,559 29,966
Profit on sale of tangible fixed assets (92) (25)
Decrease / (increase) in stocks 2,377 (670)
Decrease in debtors 1,474 4,641
Decrease in creditors (7,070) (1,017)
Net cash inflow from operating activities 88,184 79,065
10 Reconciliation of Net Cash Flow to Movement in Net Debt
2004 2003
£'000 £'000
(Decrease) / increase in cash net of overdrafts in the year (6,616) 13,350
Increase in bank loans and loan notes (45,022) (148,482)
Cash flow from decrease in deposit accounts - (11,988)
Change in net debt resulting from cash flows (51,638) (147,120)
Foreign exchange translation difference 11,297 6,515
Non-cash movements (2,441) (114)
Increase in net debt during the year (42,782) (140,719)
Opening net debt (259,205) (118,486)
Closing net debt (301,987) (259,205)
11 Analysis of Net Debt
At At 31
1 January Exchange December
2004 Non-cash Cash flow movement 2004
items
£'000 £'000 £'000 £'000 £'000
Cash at bank and in hand 23,586 - (4,460) - 19,126
Overdrafts (1,845) - (2,156) - (4,001)
Net cash 21,741 - (6,616) - 15,125
Bank loans due in less than one year (4,201) (5,156) 4,201 - (5,156)
Loan notes due in less than one year (455) (5,877) 143 - (6,189)
Bank loans due in more than one year (270,353) 2,741 (49,406) 11,297 (305,721)
Loan notes due in more than one year (5,877) 5,877 - - -
Finance leases due in less than one year (40) (29) 40 - (29)
Finance leases due in more than one year (20) 3 - - (17)
Total (259,205) (2,441) (51,638) 11,297 (301,987)
Non-cash items represent an addition of £26,000 to tangible fixed assets held
under finance leases and a write off of bank loan facility fees £2,415,000.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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