RNS Number:0711T
Henlys Group PLC
10 December 2003
Date: l0 December 2003
Contacts: Allan Welsh Chief Executive
Henlys Group plc
Telephone: 020 7638 9571 until 12 p.m.
Thereafter: 020 8953 9953
Chris Barrie
Citigate Dewe Rogerson
Telephone: 020 7638 9571
Henlys Group plc
Preliminary Results for the year ended 30 September 2003
SALIENT POINTS
* Financials Year ended 9 months ended
30 September 31 December
2003 2002
Restated
Turnover including Joint Ventures and Associates #516.7 m #522.8 m
Total Operating Profit before amortisation of goodwill #15.2 m #34.5 m
and exceptional items
Total Exceptional items (#16.2 m) (#8.2 m)
Pre-Tax Profit before amortisation of goodwill #2.0 m #23.4 m
and exceptional items
Total Operating (Loss)/Profit (#23.1 m) #10.1 m
Adjusted Earnings per Share before amortisation of goodwill and 1.8 p 21.1 p
exceptional items
Dividend per Share 1.0 p 7.65p
* Results affected by Blue Bird North Georgia and continuing weak
North American coach market;
* Recovery at North Georgia well advanced under new Blue Bird
management team;
* New Blue Bird 'Vision' school bus launched successfully with
strong 2004 order book;
* Nova Bus turnaround achieved;
* TransBus delivering cost savings to address competition within
the UK and Hong Kong markets;
* New US$325.8m bank facilities in place with existing bank syndicate.
Commenting on the results, Allan Welsh, Chief Executive said:
"As a result of our strengthened operational management team and good progress
with North Georgia, the Board is confident that we can achieve a turnaround in
trading performance commencing in the 2003/4 financial year."
Joint Statement from the Chairman and Chief Executive:
This Report and Financial Statements cover the 12-month period ended 30
September 2003, following the change in 2002 of our accounting reference date
from 31 December to 30 September. As referred to in the Financial Director's
Review, the contribution from TransBus International included in the Financial
Statements covers the 12-month period to June 2003 as a result of different
financial years now adopted by the Group and The Mayflower Corporation plc, the
majority owner of this associate company.
Overview:
This year has been a very difficult one for the Group. In North America our main
markets remained subdued as a result of pressure on US Federal and State
expenditure budgets and the negative effect of continuing terrorism alerts, the
Iraq War and the SARS virus on levels of both business and tourist travel. In
addition the Blue Bird results were adversely affected by major but temporary
manufacturing problems at its school bus body and assembly plant in North
Georgia. In the UK, TransBus maintained its market leading position but faced
increased competition from Continental European bus and coach manufacturers.
Results:
Total turnover for the 12 months ended 30 September 2003 was #516.7m (9 months
to 30 September 2002 #522.8m). This includes #96.4m relating to our share of
TransBus (9 months to 30 September 2002 #44.2m). In overall terms, sales of
commercial bus and coach products were lower, due to the planned model
changeover in Blue Bird and the continuing downturn in the North American market
for touring coaches. School bus sales were significantly down, primarily due to
output constraints at the North Georgia plant in the second half, but motorhome
sales held up well.
Operating profit for the 12-months, before exceptional costs and amortisation of
goodwill, was #15.2m compared with #34.5m (restated) in the 9 months to 30
September 2002. Pre-tax profit, before exceptional costs and goodwill
amortisation, was #2.0m against #23.4m (restated) for the previous 9 month
period. There was a net exceptional charge of #16.2m (9 months to 30 September
2002 #8.2m) for the 12 months, mainly relating to one-off costs of quality
rectification and production inefficiencies at North Georgia but also including
severance costs for people released at Blue Bird and TransBus as part of cost
reduction programmes. The loss after taxation for the year was #35.0m (9 months
to September 2002, loss of #5.6m - restated).
The weakness of the US dollar had an important impact on the year's reported
results. Profit was reduced by #0.8m as a result of lower earnings from Prevost
on its sales to the USA, net of savings in the Group's US dollar denominated
interest costs. This was offset by the benefit of #1.6m due to a change of
accounting policy relating to foreign exchange translation, as more fully
described in the Finance Director's Review. The prior year's results have been
restated for this policy change.
Despite State budget restrictions school bus demand in the USA and Canada
stabilised in this period following two years of decline. It is therefore
particularly disappointing that production problems at the Blue Bird North
Georgia facility prevented the Group taking full advantage of this and
overshadowed a number of other rationalisation and development projects that the
Company completed successfully. Following extensive management changes at Blue
Bird, the North Georgia issues are now being resolved and the company is well
equipped for the next phase of manufacturing improvement which will greatly
improve our competitive position.
One highly successful element of Blue Bird's school bus activity in this period
was the design and launch of its own chassis for the largest volume segment of
this market. The Blue Bird Type-C chassis, and the brand new school bus based on
that chassis, were successfully launched during 2003 and have been very well
received in the marketplace. The other new products mentioned in last year's
report, designed to give Blue Bird strong growth in the commercial bus, coach
and motorhome markets, are also well advanced. Some models have now been
launched and, despite having to address some of the early engineering issues
which often occur on the introduction of an ambitious new product range,
customer reaction is very positive and the order book is now growing.
Prevost Car Inc faced another challenging year, as the market for its luxury
touring coaches showed further deterioration. The Canadian market, where Prevost
is strong as the main domestic producer, was the worst affected by the SARS
outbreak, receiving high profile attention when the WHO for a short period
advised against travel to Toronto. In contrast Prevost's other activity, the
supply of custom-built coach shells for conversion into luxury motorhomes, has
seen stable volumes and currently offers good growth prospects as other
applications are developed for the shell structures - one of the best prospects
is conversion of shells into mobile command vehicles for the recently
established US Department of Homeland Security. In response to the lower coach
volumes Prevost has continued to reduce fixed costs and use less working
capital.
Nova Bus successfully completed its exit from the "Buy America" market, and
improved its financial performance despite the lower volumes available from this
strategy. Steady progress was made in improving labour efficiency on the
long-term order for Quebec Province which now provides the main production load
for this plant, and the sales function was re-organised to pursue business with
other Canadian provinces. Negotiations on the renewal of a labour contract for
shop-floor employees broke down in late June resulting in management declaring a
lockout which continued to the end of the financial year. Management and staff
were able to complete and deliver all critical orders over this period, so
customer image remains positive and the dispute is now resolved.
The main focus of TransBus this year shifted to cost reduction. Substantial
labour cost savings were achieved, as well as increased flexibility to balance
capacity across different TransBus sites producing similar vehicles. Another
initiative to protect its leading market share is the launch of new vehicles
targeted at key market segments. The Profile launched in October 2002 has been
central to the achievement of a further 20% growth in coach sales this year and
the Enviro 200 midibus, with improved passenger capacity and the option of an
environmentally-friendly diesel/electric "hybrid" drive, should sustain the
leading position of TransBus in this vehicle category.
Re-financing
Following recent announcements of discussions with our lenders regarding the
re-financing of our banking facilities, the Board has agreed new facilities of
US$325.8m with its existing bank syndicate.
Scheduled amortisation payments totalling $40m will be made by the end of
September 2005. By 31 December 2005 a further $135m of these facilities are to
be refinanced. Following this repayment, the balance is repayable before the end
of December 2008. The new facilities, which are on a secured basis, are
conditional on the Group meeting financial covenants which have been set in
relation to expectations of future trading performance throughout the period of
these arrangements. Pricing on the new facilities will be higher, in line with
market terms and recent trading performance.
Dividend
In light of the disappointing trading performance in the last 6-months of the
period the Board has decided not to recommend a final dividend for the year
ended 30 September 2003. The total dividend for the year will therefore be the
1p paid as an interim dividend on 12 August 2003.
Despite the belief that this decision is appropriate in the present
circumstances, the Board reaffirms its intention of reverting to dividend
payments at an appropriate level as soon as there is evidence of a sustainable
recovery in the Group's financial performance.
Board
Robert Wood (Chairman) and Neil Beresford (Executive Director) retired on 30
April 2003 and we thank them for their contribution to the company. Mike Ost
became Non-Executive Chairman from 1 May 2003.
Although the appointments fall outside the financial year covered by the Report
we are delighted to announce the following Board changes effective from 1
December 2003:
-- Chris Woodwark joins the Group as Senior Non-Executive Director.
-- Bill Gillespie joins as Finance Director Designate.
-- Jeff Bust is appointed to the Board and retains his current position as
President & CEO of Blue Bird Corporation. Jeff replaces Richard Maddox, who
leaves the Group Board to focus full time on his position as VP Sales &
Marketing for Blue Bird.
Further information, including the previous careers of our new board members,
can be found in the press release covering these appointments (see
www.henlys.com)
Employees
We would like to thank employees throughout the Group for all their efforts
during another challenging year.
Outlook
Operational management has been strengthened substantially during the year, and
the new team in Blue Bird is making good progress in dealing with the North
Georgia challenges and reducing the overall cost base in line with the more
competitive market conditions. In addition, the remainder of Blue Bird's new
motorhome, commercial bus and coach models will be launched within the next 12
months. As a result of these moves, combined with recent more positive signs of
US economic recovery and generally improving travel statistics, the Board is
confident that a turnaround in trading performance can be achieved commencing in
the 2003/4 financial year.
M S Ost
(Chairman)
T A Welsh
(Chief Executive)
Review of Operations
Group operating profit, before exceptional costs and amortisation of goodwill,
was #15.2m in the 12 months to 30 September 2003 compared with a restated #34.5m
for the 9 months ended 30 September 2002. The loss for the year after taxation
was #35.0m (9 months to 30 September 2002, loss of #5.6m - restated).
Our key markets in North America were again generally weaker in 2002/3. With the
continuing high profile given to the threat of terrorism, the build up to the
Iraq War early in our financial year and the effect of the SARS outbreak in
mid-year, we had to deal with the combined effects of lower travel activity and
a more cautious business approach from our major customers. Several customers
cut back their investment in new buses and coaches, some being forced down this
path by tighter Federal and/or State transportation budgets.
The challenge was heightened by higher fuel prices before and during the Iraq
War and increased insurance rates for our customers as industry rates maintained
the rising trend triggered by the events of September 11 2001. Some of these
factors also affected Europe, and in particular TransBus felt the effect of the
Iraq War and SARS as UK bus and coach operators saw a considerable drop in
inward business and tourist travel to the UK and less demand for coach tours
within the UK and to continental Europe. The market worst affected by SARS was
Hong Kong, which is TransBus's largest market after the UK.
However, against this background there have also been some encouraging signs.
Firstly, motorhome sales held up well as more Americans chose to holiday within
the USA, and this market is expected to maintain steady growth over the next few
years with the substantial increase in numbers of people in the 50-65 age range
which is critical for purchases of these vehicles. Also, school bus demand
levelled off this year after a 20% decline in the previous two year period.
Finally, bid activity has been increasing significantly in some markets as
confidence in economic recovery grows and tax revenues edge higher.
Blue Bird
Blue Bird sales for the 12 months to end September 2003 were #313.8m against a 9
month figure to end September 2002 of #358.1m. In the same comparative periods
operating profit, before exceptional costs and amortisation of goodwill was
#2.0m in 2003 against #27.0m in 2002.
This was a year of major model changes at Blue Bird. In school bus the new
Vision Type-C vehicle was launched, based on Blue Bird's first in-house chassis
for this main market segment, to replace vehicles previously built on a GM
chassis which is no longer available. The Vision has been very well received by
customers, and the production launch of the new chassis and the complete school
bus were implemented on time and without problems.
Unfortunately this success was overshadowed by challenges at Blue Bird's school
bus body and assembly plant in North Georgia. As mentioned in last year's report
this plant, in Lafayette close to the northern border of Georgia state, was
nominated to absorb the major proportion of manufacturing activity from another
Blue Bird school bus plant in Iowa which was closed in the 4th quarter of 2002
as part of a cost reduction programme. As new people were recruited to produce
the higher volumes and broader product range planned for North Georgia, skill
dilution and lack of satisfactory process controls led to major inefficiencies
and quality defects. Blue Bird suffered reduced overhead recovery and incurred
higher labour costs as substantial re-work was required on a high proportion of
the vehicles produced in this period to meet the required quality standards.
The exceptional costs related to the North Georgia issue were #17.3m.
In response to this situation we accelerated the strengthening of Blue Bird
management which was already underway. Following widespread changes at both
North Georgia and the corporate level the operational focus and capability of
the management is substantially improved. As well as bringing North Georgia
production under control, two projects have now been approved for the second
phase of the recovery plan. In 2004 we will re-organise the three existing
school bus sites into focused factories each limited to a well-defined and more
limited product range. At low capital cost and low risk we are creating a
modern, streamlined, robust manufacturing process for each of the main school
bus models. This work will use many of the low cost, high quality, minimum
working capital concepts which proved successful this year in Blue Bird's new
Type C chassis line.
Blue Bird's plans for strong growth in non-school bus products remain on track.
2003 saw the phase-out of several old models, and the launch of the first
new-generation vehicles in the motorhome, commercial bus and coach ranges.
Motorhome volumes were slightly up in the year as the first new vehicle
introduced, the M380 (38 ft motorhome), was available for the full year. The
commercial bus range (Ultra LF and Ultra LMB) became available progressively
through the year, and a number of customers are assessing demonstration
vehicles. The Express 4000 (40 ft version) is the first of the new coach range
to reach the market, the launch customer being the US Government who have
ordered the Blue Bird Express for their prison and immigration services.
The market reaction to all of these vehicles is very positive. With the design
and engineering work now virtually complete, the full model range will be
introduced within the next year and this will be the platform for strong sales
and profit growth for Blue Bird outside the school bus arena for the first time.
Prevost
The Henlys share of turnover in Prevost Car for the 12 months to 30 September
2003 was #73.5m compared with #60.1m in the 9 months to end September 2002. Our
share of operating profit was #4.8m against #4.2m in the 9 months to September
2002.
In this period sales of coach shells, which Prevost supplies to specialist
"converters" who install the interior fixtures and fittings to complete the
vehicle as a luxury motorhome, were in line with the previous year. However
Prevost continues to be affected by the depressed coach market and sales in this
product line were well down year on year. Coach purchases by independent
operators in the USA and Canada are now less than half the peak level attained
in 1999, giving some expectation that there should be a significant rebound when
economic recovery is evident.
In these market conditions Prevost continues to pursue cost reduction
initiatives. This year there was a significant cut in after market overheads
from rationalising the Parts and Service facilities in Canada and the USA, and
for four months the Company took advantage of a Canadian Government subsidised
"time sharing" scheme to retain skilled employees but work reduced hours. At the
same time our primary marketing activity has been aimed at achieving growth by
developing some of the emerging applications for coach shell conversion like
mobile command centres, customer hospitality and product demonstration vehicles.
Nova Bus
The planned turnaround in Nova Bus has been achieved by withdrawing from the
unprofitable "Buy America" strategy to focus on a broader Canadian customer
base. Henlys' share of turnover was #30.9m in the year to 30 September 2003
compared with #22.8m in the 9 months to September 2002. Nova Bus has now been
trading profitably for 18 months, and operating profit in the 12 months to
September 2003 was #2.4m against a loss of #0.1m for the previous 9 month
period.
The last quarter of the financial year was disrupted by an industrial dispute. A
new trade union won the right to represent Nova's shop-floor employees earlier
in the year, then in late June negotiations regarding renewal of the three year
employment contract broke down. The dispute lasted until October, but the
situation is now satisfactorily resolved.
Notwithstanding this dispute Nova has had a successful year, with the continuing
efforts on lean manufacturing taking over 20% of the labour hours out of the
standard Nova bus production time and an R&D subsidy of #3.5m being secured from
the Quebec Government to fund joint development work with ATUQ (the Quebec Urban
Transport Association) to achieve design and performance improvements needed to
secure future business with this large customer.
TransBus
The Group's share of TransBus sales in the year to end September 2003 was
#96.4m, compared with the 9 month figure of #44.2m to 30 September 2002. On the
same basis our share of operating profit was #9.0m in 2003 against #5.1m for the
9 months of 2002. This comparison is complicated by the fact that, due to the
Group's transition to the new fiscal year ending 30 September, only 6 months'
turnover and profit from TransBus was included in the Group's 9 month results to
30 September 2002.
In this period TransBus recorded slightly lower sales for London, following
their heavy investment in bus fleet renewal in the run-up to the introduction of
the congestion charge, and there was increased competition from continental
European suppliers. TransBus reacted well to the tougher conditions, with
significant cost reductions achieved including redundancy programmes at the
Guildford chassis plant and the Wigan double deck bus factory. This action,
along with growing sales of a number of recently launched new vehicles, enabled
TransBus to maintain its leading position in the UK market.
T A Welsh
Finance Director's Review
Trading Results
The adjusted profit before taxation for the period is summarised as follows:-
12 months 9 months
to 30 Sept to 30 Sept
2003 2002
Restated
#m #m
Adjusted profit before taxation 2.0 23.4
Less:
Amortisation of goodwill (20.2) (16.2)
Exceptional costs(a) (16.2) (8.2)
Loss on Ordinary Activities
Before Taxation (34.4) (1.0)
(a) Exceptional costs in 2003 comprise: #m
(i) Cost of production difficulties and quality
problems at Blue Bird's plant in Lafayette,
North Georgia, following transfer of product
lines from other plants (17.3)
(ii) Release of over-provision for closure costs of
Blue Bird's Iowa plant 2.4
(iii) Cost of closure of the research & development
site in the UK and other redundancies (1.3)
(iv) Henlys share of further closure costs of
Nova RTS plant in Roswell, New Mexico (0.8)
(v) Henlys share of TransBus exceptional costs 0.8
(16.2)
Comparative Figures
Following the Group's change in accounting reference date in 2002, these are the
first full 12 months accounts to the new accounting date of 30 September. The
comparative figures in these statements are for the 9 months to 30 September
2002.
Change of Accounting Policy
As mentioned in the Chairman and Chief Executive's report there has been a
change of accounting policy in 2003 relating to foreign exchange translation,
which has increased operating profit by #1.58m (2002 - #2.98m). This change is
to treat the loan between Henlys Group plc and Blue Bird as financing working
capital which more appropriately reflects its current and expected use.
Previously it was treated as borrowings used to finance the company's investment
in Blue Bird. The prior period's results have been restated for this change and
it is intended in future to minimise the effect of exchange rate movements by
matching currency exposures and by hedging.
Earnings per Share
There is a difference between the basic and adjusted earnings per share which
arises mainly because of the amortisation of goodwill and exceptional costs. The
Notes to this announcement set out the detailed calculations of the earnings per
share on a normal and adjusted basis for both basic and diluted earnings.
TransBus International Limited
This associated company is 30% owned by Henlys Group plc with the remaining 70%
owned by The Mayflower Corporation plc. Following the change in accounting
reference date of Henlys Group plc, the accounting periods of the Group are no
longer co-terminus with those of Mayflower. Henlys includes its share of the
results of TransBus only when the Mayflower results, which include TransBus,
have been published; accordingly these financial statements include Henlys'
share of the results of TransBus for the twelve months to 30 June 2003.
In accordance with the terms of the Shareholder Agreement on the formation of
TransBus Henlys share of the profits of TransBus increased from 25% to 30% with
effect from 1 January 2003.
Borrowings
As at 30 September 2003, net debt amounted to #284.7m compared to #255.0m at 30
September 2002. Net debt includes #144.5m (2002 #152.6m) in respect of a US$240m
convertible loan which is repayable in October 2009.
Following recent announcements of discussions with our lenders regarding the
re-financing of our banking facilities, the Board has agreed new facilities of
US$325.8m with its existing bank syndicate.
Scheduled amortisation payments totalling $40m will be made by the end of
September 2005. By 31 December 2005 a further $135m of these facilities are to
be refinanced. Following this repayment, the balance is repayable before the end
of December 2008. The new facilities, which are on a secured basis, are
conditional on the Group meeting financial covenants which have been set in
relation to expectations of future trading performance throughout the period of
these arrangements. Pricing on the new facilities will be higher, in line with
market terms and recent trading performance.
Treasury
So far as foreign exchange is concerned, the major part of the debt taken on at
the time of the acquisition of Blue Bird was drawn down in US Dollars to provide
a balance sheet hedge against the investment in Blue Bird.
As at 30 September 2003, US$104.5m (#62.3m) of the term debt had been drawn
down. US$150.0m (#90.3m) drawings were outstanding under the revolving credit
facility of US$150m (#90.3m). In addition the Group has unutilised overdraft
facilities available which total #20.9m.
A substantial part of the Group's debt is represented by a convertible loan of
US$240m (#144.5m) with an interest rate fixed at 5.5%, which provides to the
Group a substantial element of interest rate protection.
Prevost, our North American joint venture, prepares its accounts in Canadian
Dollars, but has significant sales and purchases in US Dollars. Forward currency
contracts are taken out within Prevost to match anticipated flows of foreign
currency.
Group Profit and Loss Account
FOR THE YEAR ENDED 30 SEPTEMBER 2003
Year ended 30 September 2003 9 months ended 30 September 2002
Interest in Interest Interest in Interest
Joint in Group Joint in
Group Ventures Associates Total Restated Ventures Associates Total
#000 #000 #000 #000 #000 #000 #000 #000
Turnover 313,790 106,505 96,381 516,676 358,061 120,457 44,250 522,768
Cost of sales (290,501) (85,887) (75,389) (451,777) (315,848) (108,533) (33,526) (457,907)
Gross Profit 23,289 20,618 20,992 64,899 42,213 11,924 10,724 64,861
Other operating (57,826) (15,410) (14,720) (87,956) (37,046) (10,409) (7,311) (54,766)
expenses (net)
Operating (Loss)/
Profit
Continuing (1,059) 7,237 9,038 15,216 25,273 4,119 5,101 34,493
operations
Amortisation of (17,257) (1,172) (1,727) (20,156) (14,001) (873) (1,295) (16,169)
goodwill
Exceptional costs (16,221) (857) (1,039) (18,117) (6,105) (1,731) (393) (8,229)
(34,537) 5,208 6,272 (23,057) 5,167 1,515 3,413 10,095
Share of operating
profit
in joint ventures 5,208 1,515
Share of operating
profit in associates 6,272 3,413
Total Operating (23,057) 10,095
(Loss)/Profit
Share of profit on
disposal of
fixed assets in
associates 1,875 -
Interest payable (13,184) (11,106)
(net)
Loss on Ordinary
Activities
before Taxation (34,366) (1,011)
Taxation (634) (4,587)
Loss for the (35,000) (5,598)
Financial Period
Dividends (761) (5,826)
Transfer from (35,761) (11,424)
Reserves
(Loss)/Earnings per
Share
Basic (46.0)p (7.4)p
Adjusted 1.8p 21.1p
Diluted (29.6)p (1.0)p
Adjusted diluted 7.2p 20.9p
Balance Sheets
AT 30 SEPTEMBER 2003
Interest Interest
In Joint In Joint
Group Ventures Total Group Ventures Total Company Company
30 Sept 30 Sept 30 Sept 30 Sept 30 Sept 30 Sept 30 Sept 30 Sept
2003 2003 2003 2002 2002 2002 2003 2002
Restated Restated
#000 #000 #000 #000 #000 #000 #000 #000
Fixed Assets
Intangible assets 295,469 17,304 312,773 314,244 16,688 330,932 - -
Tangible assets 27,819 12,854 40,673 26,240 15,589 41,829 127 221
Investments 103,214 (31,733) 71,481 101,117 (28,228) 72,889 572,219 590,533
426,502 (1,575) 424,927 441,601 4,049 445,650 572,346 590,754
Current Assets
Stocks 85,573 30,725 116,298 86,315 35,901 122,216 - -
Debtors 22,356 26,896 49,252 29,244 35,897 65,141 45,625 41,468
Cash at bank and in hand 21,351 6,607 27,958 39,991 2,142 42,133 9,227 16,567
129,280 64,228 193,508 155,550 73,940 229,490 54,852 58,035
Creditors
Amounts falling due within 232,895 53,366 286,261 157,838 60,781 218,619 263,031 206,424
one year
Net Current (Liabilities)/ (103,615) 10,862 (92,753) (2,288) 13,159 10,871 (208,179) (148,389)
Assets
Total Assets less Current 322,887 9,287 332,174 439,313 17,208 456,521 364,167 442,365
Liabilities
Creditors: Amounts
falling due
after more than one year:
Convertible debt 144,456 - 144,456 152,614 - 152,614 144,456 152,614
Other creditors 5,101 647 5,748 64,820 1,110 65,930 - 64,820
Provisions for Liabilities 27,382 8,640 36,022 32,645 16,098 48,743 - -
and Charges
Net Assets 145,948 - 145,948 189,234 - 189,234 219,711 224,931
Capital and Reserves
Called up share capital 19,038 19,038 19,038 19,038
Share premium account 118,800 118,800 118,800 118,800
Other reserves 25,445 33,111 51,845 54,253
Profit and loss account (17,335) 18,285 30,028 32,840
Equity Shareholders' Funds 145,948 189,234 219,711 224,931
Group Statement of Total Recognised Gains and Losses
FOR THE YEAR ENDED 30 SPETEMBER 2003.
9 months
Year ended ended
30 Sept 30 Sept
2003 2002
Restated
#000 #000
Loss for the financial period - Group (41,750) (5,705)
- Joint Ventures 1,639 (1,841)
- Associates 5,111 1,948
(35,000) (5,598)
Foreign exchange loss on retranslation of investments and goodwill (20,396) (38,538)
Foreign exchange gain on retranslation of loans 15,203 24,917
Tax effect of foreign exchange movements (2,152) 11
Total recognised gains and losses relating to the period (42,525) (19,208)
Reconciliation of Movements in Equity Shareholders' Funds
FOR THE YEAR ENDED 30 SEPTEMBER 2003.
9 months
Year ended ended
30 Sept 30 Sept
2003 2002
Restated
#000 #000
Loss for the financial period (35,000) (5,598)
Dividends (761) (5,826)
Foreign exchange loss on retranslation of investments and goodwill (20,396) (38,538)
Foreign exchange gain on retranslation of loans 15,023 24,917
Tax effect of foreign exchange movements (2,152) 11
Net movement in equity shareholders' funds (43,286) (25,034)
Equity shareholders' funds at beginning of period 189,234 214,268
Equity shareholders' funds at end of period 145,948 189,234
Group Cash Flow Statement
FOR THE YEAR ENDED 30 SEPTEMBER 2003.
9 months
Year ended ended
30 Sept 30 Sept
2003 2002
#000 Restated
#000
Net Cash (Outflow)/Inflow from Operating Activities (8,516) 21,400
Dividends and Interest Received from Joint Ventures and Associates 5,823 7,374
Returns on Investments and Servicing of Finance (14,478) (7,744)
Taxation 1,308 1,479
Capital Expenditure (net) (20,308) (14,688)
Equity Dividends Paid (6,588) (2,589)
Cash (Outflow)/Inflow before Financing (42,759) 5,232
Financing 15,434 33,680
(Decrease)/Increase in Cash in the Period (27,325) 38,912
Notes
1. Loss/Earnings per Share
Loss per share has been calculated by dividing the loss for the year
ended 30 September 2003 of #35,000,000 (Nine months ended 30 September 2002
(restated) - #5,598,000) by 76,153,761 (2002 - 76,153,761) Ordinary shares,
being the weighted average number of Ordinary shares in issue during the period.
Adjusted earnings per share, which gives a useful indication of
underlying performance, has been calculated by dividing the profit for the year
ended 30 September 2003, before amortisation of goodwill and exceptional costs,
of #1,382,000 (Nine months ended 30 September 2002 (restated) - #16,072,000) by
76,153,761 (2002 - 76,153,761) Ordinary shares, being the weighted average
number of Ordinary shares in issue during the period.
Diluted loss per share has been calculated by dividing the loss for
the year ended 30 September 2003, excluding the interest on the convertible loan
stock net of tax, of #29,252,351 (Nine months ended 30 September 2002 (restated)
- loss of #964,000) by 98,879,633 (2002 - 98, 823,585) Ordinary shares, being
the weighted average number of Ordinary shares in issue during the period
adjusted for the exercise of outstanding share options and convertible debt.
Adjusted diluted earnings per share has been calculated by dividing
the adjusted profit for the year ended 30 September 2003, excluding the interest
on the convertible loan stock net of tax, of #7,129,649 (Nine months ended 30
September 2002 (restated) - #20,706,000) by 98,879,633 (2002 - 98,823,585)
Ordinary shares, being the weighted average number of Ordinary shares in issue
during the period adjusted for the exercise of outstanding share options and
convertible debt.
2. The above financial statements do not constitute the company's
statutory financial statements. Statutory financial statements for the nine
months ended 30 September 2002 have been delivered to the Registrar of
Companies. These financial statements contain an unqualified auditors' report
which did not contain any statements under section 237 (2) or (3) of the
Companies Act 1985. Statutory financial statements for the year ended 30
September 2003 which will contain an unqualified report from the auditors will
be posted to shareholders on 5 January 2004 and delivered to the Registrar of
Companies.
3. Copies of this statement are available to the public on the Company's
web site www.henlys.com and from the Registered Office: Henlys Group plc, 1
Imperial Place, Elstree Way, Borehamwood, Herts. WD6 1JJ.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EANANEANDFFE
