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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Agatos SpA | BIT:AGA | Italy | Ordinary Share |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.239 | 0.00 | 00:00:00 |
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RNS Number:4309P
AGA Foodservice Group PLC
05 September 2003
5th September 2003
FOR IMMEDIATE RELEASE
AGA FOODSERVICE GROUP PLC
2003 INTERIM RESULTS
HIGHLIGHTS
Half year to 30th June 2003 2002 2002
Total Continuing Total
#m #m #m
Turnover 186.1 143.7 150.7
Operating profit before goodwill amortisation 14.3 13.2 12.7
Profit before tax 10.9 11.6
Shareholders' funds 277.7 263.3
Net cash 42.1 82.5
Basic earnings per share 6.5p 6.4p
Basic earnings per share before goodwill amortisation 9.5p 8.7p
Dividend per share 2.2p 1.9p
All 2003 activities are continuing
* In consumer operations record performances from Aga-Rayburn and Rangemaster
balanced a lower contribution from Domain caused by the weak US consumer
markets.
* In foodservice operations a strong US performance and a solid performance in
UK bakery was offset by quiet markets in the UK and in Europe for the newly
acquired Bongard.
* Positive operating cash flow and net cash balances of #42 million give scope
and flexibility in continuing investment programmes.
* Dividend increased by 16 per cent as part of a progressive policy reflecting
confidence in the effectiveness of the strategy.
"Our strategy of creating a consumer and foodservice grouping with real
collective strength and value is working well in practice. The new 'Aga
Address Book' and 'Aga Foodservice Know-How' underline it. Markets remain mixed
but we expect a satisfactory out-turn to 2003 and growth in 2004 and beyond
given the potential of the grouping we have created."
William McGrath
Chief Executive
Enquiries:
William McGrath, Chief Executive (020 7404 5959 (today)
Shaun Smith, Finance Director (0121 711 6015 (thereafter)
Jonathan Glass (Brunswick) 020 7404 5959
Aga Foodservice Group plc
2003 Interim Results
CHAIRMAN'S AND CHIEF EXECUTIVE'S STATEMENT
The expansion strategy first set out in the spring of 2001 is proving a success.
The primary objective is to be a major brand-led consumer business and to have
strong niche foodservice operations. To help achieve it we have made
acquisitions of strong brands that complement our product and geographic
positions. The Group has significant resources and plans to expand further by
acquisition and by investment to generate synergies between the businesses we
have. Progress will continue at a pace which fits with efficient integration.
In consumer, the plan to make Aga-Rayburn the centre stage business and grow the
top line through a higher marketing profile, new products, a strengthened retail
strategy and to support it with a widened lifestyle-driven grouping of brands is
well established in the UK. Making similar progress outside the UK is a
central strategic goal. In foodservice, we have built a strong European market
position and have completed the groundwork for further expansion using our
existing product lines.
Financial Results
Turnover from continuing businesses in the six months to June 2003 increased by
30 per cent to #186.1 million. Excluding acquisitions made in the last year,
organic growth was 6 per cent. Operating profits before goodwill amortisation
improved to #14.3 million compared with #13.2 million in the prior year. This
includes an initial contribution from Bongard but Domain's contribution fell
sharply in a difficult US consumer market.
Net interest fell from #1.9 million to #0.5 million as more cash was invested in
acquisitions and because of the low interest rate environment. Cash balances
are currently invested at an interest rate of approximately 3 per cent. Due to
the reduced net interest and increased goodwill amortisation, profit before tax
was #10.9 million compared with #11.6 million in the prior year.
A valuation of the Group's pension scheme as at 31st December 2002 has been
completed. The cautious approach adopted in managing the scheme over a number
of years, together with an early reduction in equity weighting, has proved
beneficial and the scheme continues to show a surplus under SSAP 24. The cash
contribution of #7.4 million in 2002 will fall appreciably this year and the net
profit and loss account charge will be minimal.
The tax rate was 22.9 per cent and is expected to remain below the standard
rate in 2003 and 2004. Basic earnings per share were 6.5 pence compared with
6.4 pence in the prior year. The interim dividend is 2.2 pence per share, a 16
per cent increase over the prior year and a 29 per cent increase over 2 years.
Consumer Operations
Having achieved over 9,000 sales in 2002, the objective is to take sales of Aga
branded cookers over 10,000 for the first time this year and this remains
achievable given sales in the year to date. The new three oven Aga and the
Six-Four Series are helping this objective to be achieved. The links between
Fired Earth and Aga are also developing well. Rangemaster had a very good first
half and the move out of lower value cookers in early 2002 to focus on models
like the Elan and the newly launched stainless steel Elite has proved
successful. Its sink business is also trading strongly. Our refrigeration
series is now a developing feature of the range.
International growth for all the UK based brands is a key objective. Following
two successful pilots Domain has recently added to 10 more stores the Aga '
Great Room' which includes Aga and Domain kitchen furniture in room setting
vignettes. Domain's markets have been quiet but with a strong management team,
unique products and a marketing campaign that includes television advertising
this autumn for the first time, a rebound can be expected. On the continent
slow consumer markets are holding Grange back but progress with Aga is being
made. Aga's first shop in Paris on Rue de Bac, next to Grange, has just opened.
Foodservice Operations
We are now an established force in food preparation and preservation for the
commercial markets. We are working increasingly closely with major accounts on
menu development and highlighting how well adapted our equipment is to meeting
customer needs for ease of use and consistent quality.
A primary strength is in bakery where we are the market leader in a sector which
covers supermarkets through to cafes and snack outlets. New business this year
with Marks and Spencer and Sainsbury's to supplement our other large supermarket
business, has highlighted what can be achieved through a balance of new products
and service support.
In the US, the foodservice operations performed well. Victory has re-emerged as
a strong, growing refrigeration business. Adamatic and Belshaw are both
successfully marketing Group manufactured product in Europe. Adamatic is
developing product with Mono and Bongard for key accounts like Panera Bread.
Belshaw's new 'thermoglaze' line for frozen doughnut sales is establishing
itself internationally.
The Group's capabilities and point of difference provided by the range,
international sourcing capability, quality, service support and procurement
systems give confidence. We have also launched 'Aga Foodservice Know-How', a
brochure highlighting to customers the fresh thinking and products we now have.
Strategic Development and Current Trading
This autumn we have a strong marketing programme and the first 'Aga Address
Book' is being launched. It shows how Aga has become the centre of a grouping
of compatible lifestyle-driven brands and sets the tone for kitchen, bathrooms,
bedrooms and sitting rooms using the Group's products. It details our retail
outlets - which now number over 200 covering over 0.5 million square feet - and
other distribution channels from which our products are available. It will be
sent to over 300,000 customers from our newly created international database.
In foodservice the trend for eating out and the rise of bread based snack
products suggests that long-term growth prospects for the Group's businesses are
good with the cross-selling and development plans bringing results, even though
the hotel and travel sectors are currently weak.
We continue to analyse acquisitions and there are an increasing number of
opportunities available. Markets remain mixed but we expect a satisfactory
out-turn to 2003 and growth in 2004 and beyond given the potential of the
grouping we have created.
C J Farrow W B McGrath
Chairman Chief Executive
5th September 2003
GROUP PROFIT AND LOSS ACCOUNT
Half year Half year Year to
to June to June December
2003 2002 2002
#m #m #m
Turnover
Continuing operations 186.1 143.7 323.3
Discontinued operations - 7.0 7.0
_____________________________________________________________________________________________________________
Total turnover 186.1 150.7 330.3
_____________________________________________________________________________________________________________
Operating profit
_____________________________________________________________________________________________________________
Continuing operating profit before goodwill 14.3 13.2 30.8
amortisation
Goodwill amortisation (3.9) (3.0) (6.5)
_____________________________________________________________________________________________________________
Total continuing operations 10.4 10.2 24.3
Discontinued operations - (0.5) (0.5)
_____________________________________________________________________________________________________________
Total operating profit 10.4 9.7 23.8
Net interest receivable 0.5 1.9 3.2
_____________________________________________________________________________________________________________
Profit on ordinary activities before tax 10.9 11.6 27.0
Tax on profit on ordinary activities (2.5) (3.4) (7.4)
_____________________________________________________________________________________________________________
Profit on ordinary activities after tax 8.4 8.2 19.6
Equity minority interests - - (0.1)
_____________________________________________________________________________________________________________
Profit attributable to shareholders 8.4 8.2 19.5
Dividends (2.8) (2.5) (7.8)
_____________________________________________________________________________________________________________
Profit retained 5.6 5.7 11.7
_____________________________________________________________________________________________________________
Earnings per share p p p
Basic 6.5 6.4 15.2
Diluted 6.5 6.3 15.1
Basic - before goodwill amortisation 9.5 8.7 20.2
______________________________________________________________________________________________________________
GROUP BALANCE SHEET
Half year Half year Year to
to June to June December
2003 2002 2002
#m #m #m
Fixed assets
Goodwill 133.9 119.8 138.2
Tangible assets 65.2 53.4 62.2
Investments 5.9 - 2.8
____________________________________________________________________________________________
Total fixed assets 205.0 173.2 203.2
____________________________________________________________________________________________
Current assets
Stocks 55.8 48.4 52.0
Debtors 94.5 68.8 93.1
Cash at bank and in hand 60.6 123.2 78.8
____________________________________________________________________________________________
Total current assets 210.9 240.4 223.9
____________________________________________________________________________________________
Creditors - amounts falling due within one
year
Operating creditors (81.1) (65.1) (89.6)
Borrowings (18.5) (32.1) (22.5)
Tax and dividends payable (5.6) (8.8) (7.5)
___________________________________________________________________________________________
Total amounts falling due within one year (105.2) (106.0) (119.6)
____________________________________________________________________________________________
Net current assets 105.7 134.4 104.3
____________________________________________________________________________________________
Total assets less current liabilities 310.7 307.6 307.5
Creditors - amounts falling due after more
than one year
Creditors (2.4) (2.4) (2.4)
Borrowings - (8.6) (0.8)
Provisions for liabilities and charges (30.2) (33.0) (33.3)
____________________________________________________________________________________________
Total net assets employed 278.1 263.6 271.0
____________________________________________________________________________________________
Capital and reserves
Called up share capital 32.4 32.0 32.3
Share premium account 59.9 57.4 59.9
Revaluation reserve 2.6 3.8 3.0
Capital redemption reserve 35.0 35.0 35.0
Profit and loss account 147.8 135.1 140.4
____________________________________________________________________________________________
Total shareholders' funds 277.7 263.3 270.6
Equity minority interests 0.4 0.3 0.4
____________________________________________________________________________________________
Total funds 278.1 263.6 271.0
____________________________________________________________________________________________
GROUP CASH FLOW STATEMENT
Half year Half year Year to
to June to June December
2003 2002 2002
#m #m #m
Net cash inflow / (outflow) from operating activities 2.6 (2.1) 21.3
Net returns on investments and servicing of finance 0.5 2.3 3.9
Tax paid (1.9) (3.7) (7.8)
Capital expenditure and financial investment
- capital expenditure (5.2) (4.4) (14.8)
- sale of tangible fixed assets 0.3 3.5 6.6
___________________________________________________________________________________________________________
Net capital expenditure and financial investment (4.9) (0.9) (8.2)
___________________________________________________________________________________________________________
Acquisitions and disposals
- cash paid for acquisitions less cash acquired (4.0) (28.1) (43.3)
- disposal proceeds received less costs incurred - 2.1 -
___________________________________________________________________________________________________________
Net cash flow from acquisitions and disposals (4.0) (26.0) (43.3)
___________________________________________________________________________________________________________
Equity dividends paid (5.3) (4.2) (6.7)
___________________________________________________________________________________________________________
Net cash outflow before financing (13.0) (34.6) (40.8)
Financing
- issue of ordinary share capital 0.1 0.8 3.8
- decrease in debt (5.4) (0.4) (41.5)
___________________________________________________________________________________________________________
Net financing (5.3) 0.4 (37.7)
___________________________________________________________________________________________________________
Decrease in cash in the period (18.3) (34.2) (78.5)
___________________________________________________________________________________________________________
Reconciliation of net cash flow to movement in net cash
Decrease in cash in the period (18.3) (34.2) (78.5)
Decrease in debt 5.4 0.4 41.5
___________________________________________________________________________________________________________
Change in net cash resulting from cash flows (12.9) (33.8) (37.0)
Borrowings acquired with acquisitions - - (24.6)
Loan notes cancelled for acquisitions - - 0.3
Exchange adjustment (0.5) 0.2 0.7
___________________________________________________________________________________________________________
Decrease in net cash (13.4) (33.6) (60.6)
Opening net cash 55.5 116.1 116.1
___________________________________________________________________________________________________________
Closing net cash 42.1 82.5 55.5
___________________________________________________________________________________________________________
SUPPLEMENTARY STATEMENTS
Reconciliation of operating profit to net cash inflow / (outflow) from operating
activities
Half year Half year Year to
to June to June December
2003 2002 2002
#m #m #m
Operating profit 10.4 9.7 23.8
Goodwill amortisation 3.9 3.0 6.5
Depreciation 3.7 2.9 6.7
Profit on disposal of fixed assets (1.3) (1.1) (1.2)
(Increase) / decrease in stocks (4.0) (2.5) 0.6
(Increase) / decrease in debtors 1.7 (8.4) (13.9)
Increase / (decrease) in creditors (10.3) (5.1) 2.0
Increase / (decrease) in provisions (1.5) (0.6) (3.2)
_______________________________________________________________________________________________________________
Net cash inflow / (outflow) from operating activities 2.6 (2.1) 21.3
_______________________________________________________________________________________________________________
Statement of total recognised gains and losses Half year Half year Year to
to June to June December
2003 2002 2002
#m #m #m
Profit attributable to shareholders 8.4 8.2 19.5
Exchange adjustments on net investments 1.2 (1.6) (3.3)
_______________________________________________________________________________________________________________
Total recognised gains and losses since last annual 9.6 6.6 16.2
report
_______________________________________________________________________________________________________________
Reconciliation of movements in shareholders' funds Half year to Half year to Year to
June June December
2003 2002 2002
#m #m #m
Total recognised gains and losses relating to the period 9.6 6.6 16.2
Dividends (2.8) (2.5) (7.8)
New share capital subscribed - share premium - 0.7 3.2
- share capital 0.1 0.1 0.4
Future share scheme issues 0.2 - 0.2
_______________________________________________________________________________________________________________
Net increase in shareholders' funds 7.1 4.9 12.2
Shareholders' funds at beginning of period 270.6 258.4 258.4
_______________________________________________________________________________________________________________
Shareholders' funds at end of period 277.7 263.3 270.6
_______________________________________________________________________________________________________________
SEGMENTAL ANALYSIS
Half year to Half year to Year to
June 2003 June 2002 December 2002
By business group Turnover Operating Turnover Operating Turnover Operating
profit profit profit
#m #m #m #m #m #m
Consumer Products 91.3 6.5 77.4 6.1 173.6 16.8
Foodservice Products 94.8 6.5 66.3 6.0 149.7 12.8
________________________________________________________________________________________________________________
Total continuing 186.1 13.0 143.7 12.1 323.3 29.6
operations
Other items - 1.3 - 1.1 - 1.2
Goodwill amortisation - (3.9) - (3.0) - (6.5)
Discontinued operations - - 7.0 (0.5) 7.0 (0.5)
________________________________________________________________________________________________________________
Total Group 186.1 10.4 150.7 9.7 330.3 23.8
________________________________________________________________________________________________________________
Turnover between business groups is immaterial.
Half year goodwill amortisation relates to Consumer Products #1.0m (2002: #1.0m)
and Foodservice Products #2.9m (2002: #2.0m). Full year goodwill amortisation
relates to Consumer Products #2.0m and Foodservice Products #4.5m.
Half year to Half year to Year to
June 2003 June 2002 December 2002
By geographical origin Turnover Operating Turnover Operating Turnover Operating
profit profit profit
#m #m #m #m #m #m
United Kingdom 113.4 11.4 106.8 10.2 229.1 23.4
North America 41.2 1.4 33.1 2.7 79.5 6.2
Europe 28.8 1.0 1.4 0.1 11.0 0.6
Rest of World 2.7 0.5 2.4 0.2 3.7 0.6
_______________________________________________________________________________________________________________
Total continuing 186.1 14.3 143.7 13.2 323.3 30.8
operations
Goodwill amortisation - (3.9) - (3.0) - (6.5)
Discontinued operations - - 7.0 (0.5) 7.0 (0.5)
_______________________________________________________________________________________________________________
Total Group 186.1 10.4 150.7 9.7 330.3 23.8
_______________________________________________________________________________________________________________
Half year goodwill amortisation relates to United Kingdom #2.3m (2002: #2.3m), North America #0.9m (2002: #0.7m) and
Europe #0.7m (2002: nil). Full year goodwill amortisation relates to United Kingdom #4.6m, North America #1.7m and
Europe #0.2m.
Other items relate entirely to the United Kingdom.
Turnover by geographical
destination Half year to Half year to Year to
June 2003 June 2002 December 2002
#m % #m % #m %
United Kingdom 107.7 57.9 101.4 70.6 216.9 67.1
North America 42.3 22.7 34.1 23.7 78.9 24.4
Europe 30.7 16.5 5.0 3.5 19.1 5.9
Rest of World 5.4 2.9 3.2 2.2 8.4 2.6
_________________________________________________________________________________________________________________
Total continuing 186.1 100.0 143.7 100.0 323.3 100.0
operations
_________________________________________________________________________________________________________________
EARNINGS PER SHARE
Half year Half year Year to
to June to June December
2003 2002 2002
#m #m #m
Earnings
Profit on ordinary activities after tax 8.4 8.2 19.6
Minority interests - - (0.1)
Goodwill amortisation 3.9 3.0 6.5
_________________________________________________________________________________________________________
Earnings before goodwill amortisation 12.3 11.2 26.0
_________________________________________________________________________________________________________
Profit on ordinary activities after tax 8.4 8.2 19.6
Minority interests - - (0.1)
_________________________________________________________________________________________________________
Earnings - for basic and diluted EPS 8.4 8.2 19.5
_________________________________________________________________________________________________________
Weighted average number of shares in issue million million million
For basic EPS calculation 129.4 128.1 128.5
Dilutive effect of share options 0.3 1.1 0.5
_________________________________________________________________________________________________________
For diluted EPS calculation 129.7 129.2 129.0
_________________________________________________________________________________________________________
Earnings per share p p p
Basic 6.5 6.4 15.2
Diluted 6.5 6.3 15.1
Basic - before goodwill amortisation 9.5 8.7 20.2
_________________________________________________________________________________________________________
NOTES
1. Dividends
The Board has approved the payment of an interim dividend amounting to 2.2p per
share (2002: 1.9p). The dividend will be paid on 3rd December 2003 to
shareholders registered on 7th November 2003.
2. Exchange rates
The profit and loss accounts of overseas subsidiaries are translated into
sterling using average exchange rates, balance sheets are translated at period
end rates. The main currencies and exchange rates are:
Half year Half year Year to
to June to June December
2003 2002 2002
Average
EUR 1.45 1.58 1.59
USD 1.63 1.48 1.50
Period end
EUR 1.44 1.54 1.53
USD 1.65 1.52 1.61
3. Tax
Tax on profit on ordinary activities in respect of the half year to June 2003
has been charged at the estimated rates chargeable for the full year in the
respective jurisdictions and includes a charge of #0.7m (2002 half year #0.4m,
full year charge of #2.6m) in respect of overseas operations.
4. Comparative figures for the year 2002
The figures for the full year 2002 have been extracted from the company's
statutory accounts which have been filed with the Registrar of Companies and
which contain an unqualified audit report. The half year figures have not been
audited but have been reviewed and reported on by PricewaterhouseCoopers LLP.
INDEPENDENT REVIEW REPORT TO AGA FOODSERVICE GROUP plc
Introduction
We have been instructed by the company to review the financial information set
out on pages 4 to 10 and we have read the other information contained in the
interim report for any apparent misstatements or material inconsistencies with
the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The Listing Rules
of the Financial Services Authority require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes, and
the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board. A review consists principally of making
enquiries of group management and applying analytical procedures to the
financial information and underlying financial data and, based thereon,
assessing whether the accounting policies and presentation have been
consistently applied, unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities and
transactions. It is substantially less in scope than an audit performed in
accordance with Auditing Standards and therefore provides a lower level of
assurance than an audit. Accordingly we do not express an audit opinion on the
financial information. This report, including the conclusion, has been prepared
for and only for the company for the purpose of the Listing Rules of the
Financial Services Authority and for no other purpose. We do not, in producing
this report, accept or assume responsibility for any other purpose or to any
other person to whom this report is shown or into whose hands it may come save
where expressly agreed by our prior consent in writing.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30th June 2003.
PricewaterhouseCoopers LLP
Chartered Accountants
Birmingham
5th September 2003
MAIN ADDRESSES AND ADVISERS
Head Office and Registered Office
Aga Foodservice Group plc
4 Arleston Way
Shirley
Solihull
B90 4LH
Telephone: 0121 711 6000
Fax: 0121 711 6001
e-mail: info@agafoodservice.com
Website: www.agafoodservice.com
Registered in England No. 354715
Registrars
Lloyds TSB Registrars
The Causeway
Worthing
West Sussex
BN99 6DA
Telephone (Helpline): 0870 600 3953
Auditors
PricewaterhouseCoopers LLP
Financial Advisers and Joint Stockbrokers
Dresdner Kleinwort Wasserstein
Joint Stockbrokers
Arbuthnot
2003 FINANCIAL CALENDAR
Record date for interim ordinary dividend 7th November
Interim ordinary dividend payable 3rd December
2003 year end 31st December
This information is provided by RNS
The company news service from the London Stock Exchange
END
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