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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Salvesen (C) | LSE:SVC | London | Ordinary Share | GB0007712762 | ORD 28 1/8P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 91.50 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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Christian Salvesen PLC
Interim results for the half year ended 30 September 2007
Financial Highlights
- Revenue from continuing operations up 8.0% to £445.8m (2006: £412.9m)
- Underlying profit before tax and exceptionals* up 16.1% to £7.2m (2006: £6.2m)
- Underlying earnings per share* up 12.7% to 1.87p (2006: 1.66p)
- Reported earnings per share of 0.29p (2006: 12.46p)
- Significant reduction in net debt to £26.4m
*from continuing operations
Operational Highlights
- Sales growth momentum continues and new business pipeline encouraging
- UK Logistics continued to perform strongly
- Progress in Continental European Logistics held back by pressure on pricing
- UK Transport turnaround programme well underway and signs of early benefits
- France Transport continued to grow market share
- Iberian Transport business performed well recovering from prior year challenges
- Disposal of Salvesen Foods focuses activities on core areas of transport
and logistics
Other matters
- On 2 October 2007, the Board of Christian Salvesen announced a recommended
cash offer for Christian Salvesen by Groupe Norbert Dentressangle at 92p per
share
- Shareholders voted on 9 November 2007 to approve the offer
- Dividend: The board has not declared an interim dividend
Stewart Oades, Chief Executive, said:
"In the first six months of the year Christian Salvesen has made encouraging progress
towards focusing on its core operations of transport and logistics with the disposal of
Salvesen Foods. In addition, these results demonstrate that continuing revenue growth
with both existing and new customers can be achieved with improved margins."
For further information please contact:
Christian Salvesen PLC 020 7353 4200
Stewart Oades, Chief Executive
Julian Steadman, Group Finance Director
Tulchan Communications 020 7353 4200
Stephen Malthouse
David Allchurch
Chairman's statement
Financial highlights
Half year ended 30 September 2007
Revenue from continuing operations £445.8m Up 8.0%
Underlying results *
- Profit before tax and exceptional
items £7.2m Up 16.1%
- Profit after tax £5.0m Up 13.6%
- Earnings per share 1.87p Up 12.7%
Reported results
- Profit after tax £0.8m Down £32.2m
- Earnings per share 0.29p Down 12.17p
- Free cash flow £6.2m Down £43.7m
* continuing operations only
This is likely to be my final report to you as Chairman of Christian Salvesen.
On 2 October 2007 the board announced a recommended offer for the company by
Groupe Norbert Dentressangle ("GND"). This was accepted overwhelmingly by
shareholders at the Extraordinary General Meeting on 9 November.
At 92p per share, the recommended offer values the business at £254.3m. This
represents a premium of 79% over the price at which shares were trading
immediately before the offer period, and a premium of 58% over the average
price for the preceding three months.
Assuming that the deal is approved by the European Commission and Court, we
expect it to close on 14 December 2007. The shares will then de-list on 18
December 2007.
There is a strong strategic fit between the two companies: our operations are
complementary and there is limited overlap. Together, we will make a stronger
organisation spanning 13 countries - a leading pan-European transport and
logistics group providing an expanded range of services across a wider
geographical area.
Strategic development
The offer reflects the progress Salvesen has been making under its current
strategy and the future prospects of the business.
Our strategy has been to focus the company on its core transport and logistics
operations. We have been restructuring it into two clear streams: a Transport
business based on increasingly integrated pan-European shared-user networks,
and a Logistics business providing innovative solutions and reverse logistics
including dedicated warehousing and ancillary dedicated vehicle fleets. We have
maintained the focus on growth which has delivered a substantial increase in
turnover in the past couple of years. More recently, this has been accompanied
by renewed emphasis on margin development to ensure that this growth delivers a
meaningful contribution to the bottom line.
In line with our focus on core activities, we announced the sale of our frozen
vegetable business, Salvesen Foods, in August. The sale realised £15.1m in cash
after allowing for transaction costs and retained working capital. We have
retained ownership of the operation's three sites at Bourne, North Thoresby and
Easton in Lincolnshire, and the sale did not affect our other continuing
operations at Grimsby, Hull and Lowestoft.
Our continuing businesses have made encouraging progress in the past half-year.
Their combined revenue was up 8% to £446m and profit before tax and exceptional
items rose by 16% to £7.2m. The proceeds from the Salvesen Foods sale helped us
to maintain the ongoing reduction in debt, which reduced by a further £13m to £
26m during the period.
At the same time the pension deficit of £47.4m, before tax, has been reduced
significantly over the past 5 years.
Dividend
As already announced, the directors have agreed that no interim dividend will
be paid under the terms of the offer from GND.
Performance highlights
Under the new organisational structure, both Transport and Logistics divisions
made progress, although the pace of improvement was uneven - particularly in
Continental Europe. There has been some reallocation of activities under the
new structure - in particular, some activities previously reported as part of
the UK Transport business have been transferred to the UK Logistics business.
To provide more meaningful comparisons in the following pages, we have
re-stated the prior-year figures to match the current structure.
Our Logistics division turned in another strong performance in the UK. It has
continued to win new dedicated contracts and to increase utilisation of its
cold store capacity. In contrast, our operations in Continental Europe suffered
a reduction in profitability as they were unable to deliver the improvements in
operational productivity needed to offset continuing pressure on pricing.
In the Transport division, we have seen a good response to our turnaround plan
for the UK network operation. Productivity and margins have already benefited
from the short-term focus on operational efficiency and increased investment in
IT. We recognise that further infrastructure changes will be needed to continue
the improvement, but the progress made by the new management team in a
relatively short space of time has been encouraging.
In France our business remains one of the country's most successful transport
businesses. It has continued to increase market share, but profit progress was
constrained by generally tight margins in the sector and comparison against a
prior year which included a £1.2m VAT refund. Our Iberian Transport business
has maintained the growth reported last year, while restoring margins to
acceptable levels.
Overall, our business development programme continues to be successful, with
good levels of both new contracts and contract renewals. The new business
pipeline is also encouraging.
We continue to win additional work from existing customers who know what we can
deliver for them - examples this year have included Marks & Spencer and Birds
Eye in the UK, and Le Duff and Go Sport in France.
In addition, Birds Eye has given us a 10 year contract to provide pea
processing and dedicated logistics. It is currently building Europe's largest
pea processing factory on our Hull site, where we will provide processing, cold
storage and distribution services. The new contract complements our existing
processing and storage partnership in Lowestoft.
People
For our employees, the proposed acquisition offers the prospect of being part
of a larger and stronger organisation. The GND board has undertaken to
safeguard the employment rights of existing Christian Salvesen employees,
including pensions. It sees the acquisition as a platform for further growth
and does not anticipate significant redundancies. On behalf of the Christian
Salvesen board, I would like to thank all our people for their contributions to
the turnaround of the business over the past few years, which have brought it
to the start of this exciting new chapter.
Health and safety has been the first item on the agenda at all Salvesen board,
Executive Committee and business unit board meetings. We were particularly
pleased to win five prestigious Gold Awards from the UK's Royal Society for the
Prevention of Accidents in April - one for our overall record and four for
individual sites.
Outlook
GND's proposed acquisition of the company has been welcomed by employees and
customers alike. There is a clear recognition that the combined business will
provide a strong platform which is better positioned to take a growing share of
Europe's expanding transport and logistics business. It will also be well
placed to achieve the synergies and productivity enhancements that are
essential to building healthy margins in today's price-sensitive trading
climate.
Like Christian Salvesen, GND started out as a family-owned business. Both
companies share a distinctively innovative and entrepreneurial view of life. I
look forward to seeing them go from strength to strength together, with
redoubled energy and capability.
Review of operations
Our financial results for the first half reflect the continuing success of our
strategy for restoring growth. They also show the first fruits of our work to
improve margins in our continuing operations.
In September 2007 we sold our vegetable processing business, Salvesen Foods, in
order to concentrate on our core logistics activities. The combined revenue of
the continuing businesses (i.e. excluding Salvesen Foods) rose 8.0% to £446m
and underlying pre-tax profit (i.e. profit before tax and exceptional items)
increased by 16.1% to £7.2m. The impact of foreign exchange movements over the
period was minimal.
Operating profit was £0.7m lower, but this was more than covered by £1.7m of
lower net interest cost. Operating profit for the current year bears £1.2m of
added costs associated with the September 2006 sale and leaseback, which also
contributed to the lower interest; excluding this, the underlying movement in
operating profit was an increase of 5.2% or £0.5m.
For the Group as a whole, the reported profit fell from £33.0m to £0.8m and
earnings per share were down from 12.46p to 0.29p. While the first half results
for both years were impacted by some continuing exceptional costs, last year
also included significant exceptional gains.
Current year pre-tax net exceptional costs of £6.1m compare with a net
exceptional gain of £23.5m last year. The 2007 exceptional items for the
continuing business consist of £1.3m of restructuring costs and £0.9m relating
to the recommended offer, offset by the final £1.0m of proceeds from last
year's sale and leaseback. There was also an exceptional pre-tax loss of £4.9m
on the disposal of Salvesen Foods.
By contrast, the 2006 net exceptional gain consisted of £26.0m from property
disposals, offset by restructuring costs of £1.8m and £0.7m for an onerous
lease obligation.
Free cash inflow for the period was £6.2m - substantially below the £49.9m
reported for the same period last year. After allowing for the £46.9m of cash
inflow from last year's sale and leaseback, this represents a £3.2m increase.
The cash proceeds from the Salvesen Foods sale helped us to reduce net debt
from £39.4m at the start of the year to £26.4m on 30 September 2007. This
reduced gearing over the period from 29% to 20%, excluding the pension deficit.
Interest costs almost halved from £3.5m in the first half of 2006 to £1.8m in
the first half of 2007, primarily as a result of the reduced debt levels
following the property sale and leaseback in September 2006.
Logistics business
This business includes UK and Continental European activities, and incorporates
our Support Services operations. Although strong growth in the UK was partially
offset by continuing weakness in Mainland Europe, overall revenue grew by 7.4%
to £232.5m. The change in operating profit is affected by an additional £0.7m
of added cost in the UK this year following the sale & leaseback and by
tightening margins in France and Benelux. Overall operating profit before
exceptional items reduced by 15.7% from £8.3m to £7.0m.
UK Logistics
Half year to 30 2007 2006 Change
September
Revenue £154.0m £136.6m +12.7%
Operating profit * £7.0m £6.3m +£0.7m
Operating margin * 4.5% 4.6% -0.1%
* before exceptional items
Revenue grew 12.7% due to new business wins and expansion of existing
contracts. Existing clients awarding us new business included Marks & Spencer,
who asked us to operate an extended site in Stoke.
The operating margin was maintained despite the added cost this year as a
result of the sale and leaseback.
Margins from the larger retailers are increasingly tight, and we believe that
smaller retailers, particularly in non-food, will appreciate the value that can
be created through consolidation and shared-user operations. The opportunities
in this market segment are increasing, and this is reflected in our pipeline.
To broaden our scope we have also been targeting the travel-related, e-commerce
and electrical markets. We retained and broadened our contract for security
screening, consolidating and delivering products to Manchester Airport Group -
and extended it for a further two years. We also broadened our relationship
with Alpha Flight Services, to include delivering meals to Eurostar services
out of London.
In the expanding e-commerce fulfilment market we built on our track record with
Marks & Spencer and Weightwatchers to win a new contract from general
merchandise retailer Wilkinsons. In the electrical market we won a contract for
Mitsubishi and are confident of further wins.
In the frozen sector we have maintained high utilisation of our cold store
capacity. New business wins comfortably offset the loss of business from
Woodwards, which is consolidating its operations. We also signed a new 10-year
contract with Birds Eye to process its frozen vegetables at our Hull location.
We continue to improve service and operational efficiency on the Goodyear
Dunlop tyre distribution contract and warehousing operations for customers such
as Daikin, SSL and Premier Decorations.
In our Support Services operation we are broadening the current offer beyond
the management of loose equipment into retail stores. With our partner, Carbon
View, we can now model the carbon footprint and environmental consequences of
global purchasing decisions and the various routes to market. We expect this
offering to attract many retailers who are concerned to reduce their
environmental impacts.
Mainland Europe
Half year to 30 2007 2006 Change
September
Revenue £78.5m £79.8m -1.6%
Operating profit * -- £2.0m -£2.0m
Operating margin * -- 2.5% -2.5%
* before exceptional items
Our performance on the Continent was impacted by the loss of several large
contracts and by contracting margins in France and Benelux, all of which
brought the overall Mainland European business back to breakeven.
In Benelux we restructured our joint venture contract with Vion after seven
years to allow us to focus on the chilled capillary distribution. The end of
this joint venture, together with the termination of our contract with Laurus
in the Netherlands, more than offset the growth from other business wins.
Looking ahead, however, we are encouraged by a significantly stronger sales
pipeline.
Margins were squeezed in contract renewals. Further pressure came from
operational challenges in our Netherlands chilled network, which we are
currently addressing with new voice-picking and in-cab technology.
In France we took over a distribution centre for Le Duff in northern Paris and
tri-temperature distribution to its shops in the Paris area. We also
strengthened our Support Services relationship with Carrefour. Unfortunately,
any revenue growth was offset by reduced customer volumes and the loss of our
Cora contract in Strasbourg.
In Spain and Portugal, our market-leading joint venture with Danone, Salvesen
Logística, has continued to grow its business at an annual rate of around 10%.
Transport business
This business comprises operations in the UK, France and Iberia. In the first
half, all these operations achieved strong revenue growth - resulting in an
overall 8.5% increase to £213.3m. The change in operating profit reflects an
additional £0.5m of added cost in the UK this year following the sale and
leaseback and a £1.2m one-off VAT repayment in France last year. Even without
adjusting for these two items, the recovery of our UK and Iberian operations
resulted in a 42.9% uplift in overall operating profit from £1.4m to £2.0m.
UK
Half year to 30 2007 2006 Change
September
Revenue £66.7m £64.8m +2.9%
Operating loss * (£1.9m) (£2.7m) +£0.8m
Operating margin * (2.8%) (4.2%) +1.4%
* before exceptional items
The new management team has already made significant improvements in quality
and costs. The full benefits will take some time to come through, but they are
confident that the turnaround will continue to gather momentum. Turnover grew
modestly by 2.9% as a result of some new business wins and rate reviews in the
latter part of the last financial year. Despite the £0.5m of added cost
following the sale and leaseback, increased volumes and relatively fixed
operational costs helped improve margins: the first-half operating loss reduced
sharply to £1.9m.
After a protracted tender process we retained our contract with Ford, Jaguar
and Land Rover. This is the cornerstone of our night network operation and
provides an excellent platform for marketing to a range of other prospects. We
also successfully retained the Daikin and Unipart contracts and won new
business with Hilti, Samuel Banner and Remploy.
Trials with an external pallet network, subcontracting traffic in remoter areas
where our own cost of delivery is less competitive, have produced encouraging
results and are likely to be extended where further cost reductions are
possible.
Iberia
Half year to 30 2007 2006 Change
September
Revenue £69.0m £61.8m +11.7%
Operating profit * £1.6m £0.8m +£0.8m
Operating margin * 2.3% 1.3% +1.0%
* before exceptional items
Our Iberian business is recovering well from last year's setbacks. Revenue was
up 11.7% to £69.0m and operating profit has doubled to £1.6m. The market has
recovered substantially from an extremely difficult 2006 and we have won new
business from a well diversified spread of accounts. Full load business has
grown faster than expected, and in the network business sales are running over
40% ahead of last year as customers discover how we can help them gain
competitive advantage and improve service quality. Stronger pricing, which has
helped us to recoup the continuing escalation of fuel and subcontractor costs,
and increased volumes have enabled us to improve margins sharply.
France
Half year to 30 2007 2006 Change
September
Revenue £77.6m £69.9m +11.0%
Operating profit * £2.3m £3.3m -£1.0m
Operating margin * 3.0% 4.7% -1.7%
* before exceptional items
Our French business, Darfeuille, has continued to deliver good results. Despite
aggressive competition from new entrants to the palletised freight market, it
has maintained its strong position through continuing investment to drive
productivity and offer customers high quality at competitive prices. Continuing
revenue growth was helped by important new contracts from Go Sport (with
further development potential), Sarel and Menissez. We successfully recovered
increased fuel costs and increased tariffs to cover other cost inflation. The
reduction in operating profit reflects the £1.2m one-off VAT repayment last
year, together with continuing investment which included the opening of a new
warehouse near Lille and substantial spending on new vehicles. The relocation
of our Bordeaux depot and an extension in Roye will be completed in the second
half of the financial year, with new depots in St. Priest and Clermont Ferrand
scheduled for completion in 2008.
Risks and uncertainties
There are a number of risks and uncertainties which could have a material
impact on the Group's performance over the remaining six months of the
financial year and could cause actual results to differ materially from
expected and historical results. The board has an ongoing process for
identifying and managing the significant risks faced by the Group. Each
business unit has identified its own key risks after taking account of the
Group's strategic objectives. These are reviewed, along with associated
controls, by the business units and the executive directors on an ongoing basis
and are adjusted for changes to strategy or the operating environment.
Strategic risk is covered by an annual update of the three-year business plan.
Key financial risks are addressed through a comprehensive budgeting and
financial reporting system. The hiring, development and retention of key
personnel is addressed through comprehensive human resource programmes. Major
projects are subject to a thorough evaluation process which includes the use of
a formal risk model. External insurers carry a proportion of the Group's
insurance risk in combination with an element of self-insurance.
The main credit risk lies with the Group's trade receivables, which reflect the
diversified customer base. Credit risk on cash balances and short-term deposits
is limited as they are held with well rated financial institutions.
The Group manages its exposure to fuel and energy prices by applying surcharge
mechanisms in its customer contracts wherever practical. Annual price reviews
are used with most customers to take account of general inflation and other
commodity price increases.
The Group borrows in euros to hedge the impact of exchange movements on its
balance sheet.
Detailed financial statements, together with the related notes, are contained
in the following pages.
Independent review report to Christian Salvesen PLC
Introduction
We have been engaged by the company to review the condensed set of financial
statements in the interim financial report for the half year ended 30 September
2007, which comprises the income statement, balance sheet, statement of changes
in equity, cash flow statement and related notes. We have read the other
information contained in the interim financial report and considered whether it
contains any apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
Directors' responsibilities
The interim financial report is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the interim
financial report in accordance with the Disclosure and Transparency Rules of
the United Kingdom's Financial Services Authority.
As disclosed in note 1, the annual financial statements of the Group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this interim financial report
has been prepared in accordance with International Accounting Standard 34,
`Interim Financial Reporting', as adopted by the European Union.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed
set of financial statements in the interim financial report based on our
review. This report, including the conclusion, has been prepared for and only
for the company for the purpose of the Disclosure and Transparency 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.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, `Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the interim financial
report for the half year ended 30 September 2007 is not prepared, in all
material respects, in accordance with International Accounting Standard 34 as
adopted by the European Union and the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.
PricewaterhouseCoopers LLP Birmingham
Chartered Accountants 29 November 2007
Notes:
a. The maintenance and integrity of the Christian Salvesen PLC web site is the
responsibility of the directors; the work carried out by the auditors does
not involve consideration of these matters and, accordingly, the auditors
accept no responsibility for any changes that may have occurred to the
interim report since it was initially presented on the web site.
b. Legislation in the United Kingdom governing the preparation and
dissemination of financial information may differ from legislation in other
jurisdictions.
Income statement
For the half year ended 30 September 2007
Notes Half year Half year Year
ended 30 ended 30 ended
September September 31 March
2007 2006 2007
(unaudited) (unaudited (audited)
£m £m £m
Continuing operations
Revenue 2 445.8 412.9 854.4
Cost of sales (416.4) (385.8) (795.3)
Gross profit 29.4 27.1 59.1
Other operating income 1.0 26.0 41.7
Administrative expenses (22.7) (19.9) (52.6)
Operating profit 2 7.7 33.2 48.2
Finance income 7 2.8 1.0 3.7
Finance costs 7 (4.6) (4.5) (9.3)
Share of profits of associate 0.1 - -
Profit before income tax 6.0 29.7 42.6
Analysed as:
Underlying profit before exceptional 2 7.2 6.2 11.4
items
Exceptional operating income 6 1.0 26.0 40.0
Exceptional administrative expenses 6 (2.2) (2.5) (8.8)
Profit before income tax 6.0 29.7 42.6
Income tax (expense) / credit 8 (2.0) 2.7 5.6
Profit for the period from continuing 4.0 32.4 48.2
operations 2
Discontinued operations 14 (3.2) 0.6 (0.8)
Profit for the period 0.8 33.0 47.4
All profits are attributable to equity
shareholders of the company
Earnings per share 4 pence pence pence
From continuing operations
- basic 1.50 12.24 18.20
- diluted 1.45 12.01 17.92
From continuing and discontinued
operations
- basic 0.29 12.46 17.90
- diluted 0.28 12.23 17.62
Dividends per share for the period 5 - 1.20 3.65
Statement of recognised income and expense
For the half year ended 30 September 2007
Half year Half year Year
ended 30 ended 30 ended
September September 31 March
2007 2006 2007
(unaudited) (unaudited (audited)
£m £m £m
Exchange translation effect on foreign 0.2 (0.3) (0.4)
currency net investments
Taxation on foreign currency exchange 0.3 (0.2) (0.2)
differences
Actuarial gain recognised in the 12 - - 6.8
pension scheme
Deferred tax relating to pension (1.0) (3.8) 1.7
liability
Net (expense) / income recognised (0.5) (4.3) 7.9
directly in equity
Profit for the period 0.8 33.0 47.4
Total recognised income and expense for 0.3 28.7 55.3
the period
The notes form an integral part of this condensed consolidated half-yearly financial information.
Balance sheet
As at 30 September 2007
Notes 30 30 31 March
September September 2007
2007 2006 (audited)
(unaudited) (unaudited) £m
£m £m
Non-current assets
Goodwill 68.7 66.8 66.8
Other intangible assets 16 8.3 8.2 8.2
Property, plant and equipment 16 103.4 115.7 110.2
Investment in associates 0.8 0.7 0.7
Deferred income tax assets 14.0 10.3 15.6
Finance lease receivables 9.6 12.1 13.1
Trade and other receivables 3.1 3.1 3.2
Total non-current assets 207.9 216.9 217.8
Current assets
Inventories 6.1 25.3 20.7
Finance lease receivables 2.9 2.4 2.5
Trade and other receivables 164.3 155.5 164.0
Current income tax receivables 1.2 - 1.2
Cash and cash equivalents 9 98.9 147.2 139.0
273.4 330.4 327.4
Deferred consideration in respect of 14 0.7 - -
businesses disposed of
Total current assets 274.1 330.4 327.4
Total assets 482.0 547.3 545.2
Current liabilities
Trade and other payables (180.3) (169.8) (179.5)
Current income tax liabilities (0.9) (2.8) (2.8)
Short-term borrowings 9 (118.4) (57.5) (79.8)
Short-term provisions 15 (15.5) (13.6) (18.6)
(315.1) (243.7) (280.7)
Short-term provisions in respect of (2.8) - (2.0)
businesses disposed of
Total current liabilities (317.9) (243.7) (282.7)
Net current (liabilities) / assets (43.8) 86.7 44.7
Non-current liabilities
Long-term payables (4.1) (3.0) (2.8)
Long-term borrowings 9 (6.9) (137.1) (98.6)
Retirement benefit obligations 12 (47.4) (72.7) (49.2)
Deferred income tax liabilities (7.7) (10.9) (7.7)
Long-term provisions 15 (3.3) (3.4) (4.0)
Total non-current liabilities (69.4) (227.1) (162.3)
Total liabilities (387.3) (470.8) (445.0)
Net assets 94.7 76.5 100.2
Equity
Called up share capital 74.6 74.6 74.6
Share premium account 43.8 43.8 43.8
Capital redemption reserve 3.8 3.8 3.8
Retained earnings (27.5) (45.7) (22.0)
Total shareholders equity 94.7 76.5 100.2
The notes form an integral part of this condensed consolidated half-yearly financial information.
Statement of changes in equity
For the half year ended 30 September 2007
Unaudited Share Share Other Retained Total
capital premium reserves earnings equity
£m account £m £m £m
£m
Balance at 1 April 2006 74.6 43.8 3.8 (68.3) 53.9
Currency translation adjustments net - - - (0.5) (0.5)
of taxation
Pension deficit movement net of - - - (3.8) (3.8)
taxation
Profit for the period - - - 33.0 33.0
Total recognised income for the - - - 28.7 28.7
period
Cost of share based payments - - - 0.3 0.3
Dividends relating to March 2006 - - - (6.4) (6.4)
paid in August 2006
Balance at 30 September 2006 74.6 43.8 3.8 (45.7) 76.5
Balance at 1 October 2006 74.6 43.8 3.8 (45.7) 76.5
Currency translation adjustments net - - - (0.1) (0.1)
of taxation
Pension deficit movement net of - - - 12.3 12.3
taxation
Profit for the period - - - 14.4 14.4
Total recognised income for the - - - 26.6 26.6
period
Cost of share based payment - - - 0.3 0.3
Dividends relating to September 2006 - - - (3.2) (3.2)
paid in January 2007
Balance at 31 March 2007 74.6 43.8 3.8 (22.0) 100.2
Balance at 1 April 2007 74.6 43.8 3.8 (22.0) 100.2
Currency translation adjustments net - - - 0.5 0.5
of taxation
Deferred tax relating to pension - - - (1.0) (1.0)
liability
Profit for the period - - - 0.8 0.8
Total recognised income for the - - - 0.3 0.3
period
Cost of share based payment - - - 0.6 0.6
Dividends relating to March 2007 - - - (6.4) (6.4)
paid in August 2007
Balance at 30 September 2007 74.6 43.8 3.8 (27.5) 94.7
There were no significant issues of share capital in the period to 30 September
2007.
The notes form an integral part of this condensed consolidated half-yearly financial information.
Consolidated interim cash flow statement
For the half year ended 30 September 2007
Notes Half year Half year Year
ended 30 ended ended
September 30 September 31 March
2007 2006 2007
(unaudited) (unaudited) (audited)
£m £m £m
Net cash from operating activities
Operating profit - continuing 7.7 33.2 48.2
operations
- discontinued operations 14 0.9 0.9 1.5
Adjustments for:
Exceptional operating costs 6 2.2 2.5 9.1
Exceptional profit on disposal of 6 (1.0) (26.0) (26.0)
non-current assets
Exceptional past service pension - - (14.7)
credit
Profit on disposal of non-current (0.1) (0.3) (0.2)
assets
Depreciation and amortisation of 10.0 11.3 21.7
non-current assets
Employee share-based payment schemes 0.6 0.3 0.6
charge
20.3 21.9 40.2
Movements in working capital and 0.3 (8.5) (3.5)
provisions
Difference between pension charge (1.8) (0.2) (2.2)
and cash contributions
Cash outflow from exceptional items (3.1) (1.9) (4.4)
excluding proceeds on exceptional
disposal of non-current assets
Net cash generated from operations 15.7 11.3 30.1
Interest paid (5.5) (4.3) (7.9)
Interest received 3.5 0.9 2.7
Income tax (paid) / repaid (2.4) 1.7 0.2
Net cash generated from operating 11.3 9.6 25.1
activities
Cash flows from investing activities
Purchase of property, plant and (7.2) (9.6) (16.1)
equipment
Proceeds from sale of property, 2.1 49.9 52.2
plant and equipment
Disposal of business 14 15.3 - -
Net cash generated from investing 10.2 40.3 36.1
activities
Cash flows from financing activities
Proceeds from new borrowings - 0.8 0.1
Repayments of borrowings (17.7) (0.3) (37.0)
Capital element of finance lease rentals (1.0) (1.1) (2.2)
Dividends paid (6.4) (6.4) (9.6)
Net cash used in financing activities (25.1) (7.0) (48.7)
(Decrease) / increase in net cash and cash (3.6) 42.9 12.5
equivalents
Cash and cash equivalents and overdrafts at 62.6 50.8 50.8
start of period
Exchange gains / (losses) on cash and cash 0.3 (0.8) (0.7)
equivalents
Cash and cash equivalents and overdrafts at 59.3 92.9 62.6
end of period 10
Overdrafts 10 39.6 54.3 76.4
Cash and cash equivalents 10 98.9 147.2 139.0
The notes form an integral part of this condensed consolidated half-yearly financial information.
Notes to condensed consolidated interim financial information
Unaudited
Note 1 Basis of preparation
The company is a limited liability company incorporated and domiciled in the
UK. The address of its registered office is 16 Charlotte Square, Edinburgh, EH2
4DF.
The company has its primary listing on the London Stock Exchange.
The condensed consolidated interim financial information was approved for issue
on 29 November 2007.
These interim financial results do not comprise statutory accounts within the
meaning of Section 240 of the Companies Act 1985. Statutory accounts for the
year ended 31 March 2007 were approved by the board of directors on 5 June 2007
and have been delivered to the Registrar of Companies. The report of the auditors on
those accounts was unqualified, did not contain an emphasis of matter paragraph
and did not contain any statement under section 237 of the Companies Act 1985.
This condensed consolidated interim financial information for the half year
ended 30 September 2007, has been prepared in accordance with the Disclosure
and Transparency Rules of the Financial Services Authority and with IAS 34,
`Interim Financial Reporting' as adopted by the European Union. The interim
condensed consolidated financial report should be read in conjunction with the
annual financial statements for the year ended 31 March 2007, which have been
prepared in accordance with International Financial Reporting Standards as adopted
by the European Union.
The accounting policies adopted are consistent with those of the annual
financial statements for the year ended 31 March 2007, as described in those
annual financial statements.
The following new standards, amendments to standards or interpretations are
mandatory for the first time for the financial year ending 31 March 2008:
* IFRIC 8, `Scope of IFRS 2', effective for annual periods beginning on or
after 1 May 2006. The interpretation has not had any impact on the
recognition of share-based payments in the Group's consolidated financial
statements.
* IFRIC 9, `Reassessment of embedded derivatives', effective for annual
periods beginning on or after 1 June 2006. This interpretation has not had
a significant impact on the reassessment of embedded derivatives as the
Group already assessed if embedded derivatives should be separated using
principles consistent within IFRIC 9.
* IFRIC 10, `Interims and impairment', effective for annual periods beginning
on or after 1 November 2006. The interpretation has not had any impact on
the timing or recognition of impairment losses as the Group already
accounted for such amounts using principles consistent with IFRIC 10.
* IFRS 7, `Financial instruments: Disclosures', effective for annual periods
beginning on or after 1 January 2007, IAS 1, `Amendments to capital
disclosures', effective for annual periods beginning on or after 1 January
2007; and IFRS 4, `Insurance contracts', revised implementation guidance,
effective when an entity adopts IFRS 7. As this interim report contains
only condensed financial statements, and as there are no material financial
instrument-related transactions in the period, full IFRS 7 disclosures are
not required at this stage. The full IFRS 7 disclosures, including the
sensitivity analysis to market risk and capital disclosures required by the
amendments of IAS 1, will be given in the annual financial statements.
* IFRIC 11, `IFRS 2 - Group and treasury share transactions', effective for
annual periods beginning on or after 1 March 2007. Management do not expect
this interpretation to be relevant for the Group.
The following new standards, amendments to standards and interpretations have
been issued, but are not effective for the financial year ending 31 March 2008
and have not been early adopted:
* IFRIC 12, `Service concession arrangements', effective for annual periods
beginning on or after 1 January 2008. Management do not expect this
interpretation to be relevant for the Group.
* IFRS 8, `Operating segments', effective for annual periods beginning on or
after 1 January 2009, subject to EU endorsement. Management do not
currently foresee any changes to the Group's business or geographical
segments.
Notes to condensed consolidated interim financial information
Unaudited
Note 2 Segmental analysis
The Group's primary reporting format is business segments and its secondary is
geographical segments. The operating businesses are organised and managed
separately according to the markets they serve. Business segments have changed
during the period with prior period comparatives restated accordingly.
Revenue Segment result
Half year ended 30 Gross Inter- Sales to Operating Exceptional Operating
September 2007 sales segment external profit items profit
£m sales customers before £m £m
(unaudited) £m £m exceptionals
£m
Logistics
UK 155.6 (1.6) 154.0 7.0 0.6 7.6
Mainland Europe 78.5 - 78.5 - - -
Total Logistics 234.1 (1.6) 232.5 7.0 0.6 7.6
Transport
UK 71.9 (5.2) 66.7 (1.9) (0.6) (2.5)
Iberia 69.3 (0.3) 69.0 1.6 - 1.6
France 77.9 (0.3) 77.6 2.3 - 2.3
Total Transport 219.1 (5.8) 213.3 2.0 (0.6) 1.4
Total segment 453.2 (7.4) 445.8 9.0 - 9.0
Unallocated
Exceptional items - - (1.2) (1.2)
central
Operating profit 9.0 (1.2) 7.8
Finance costs - net (1.8) - (1.8)
Profit before tax 7.2 (1.2) 6.0
Tax (2.2) 0.2 (2.0)
Profit for the period 5.0 (1.0) 4.0
from continuing
operations
Discontinued operations 20.2 0.7 (3.9) (3.2)
(note 14)
Total revenue/profit for the 466.0 5.7 (4.9) 0.8
period
Revenue Segment result
Half year ended 30 Gross Inter- Sales to Operating Exceptional Operating
September 2006 sales segment external profit items profit
£m sales customers before £m £m
(unaudited) £m £m exceptionals
£m
Logistics
UK 138.2 (1.6) 136.6 6.3 14.8 21.1
Mainland Europe 79.8 - 79.8 2.0 (0.5) 1.5
Total Logistics 218.0 (1.6) 216.4 8.3 14.3 22.6
Transport
UK 69.5 (4.7) 64.8 (2.7) 9.8 7.1
Iberia 62.1 (0.3) 61.8 0.8 - 0.8
France 70.1 (0.2) 69.9 3.3 - 3.3
Total Transport 201.7 (5.2) 196.5 1.4 9.8 11.2
Total segment 419.7 (6.8) 412.9 9.7 24.1 33.8
Unallocated
Exceptional items - - (0.6) (0.6)
central
Operating profit 9.7 23.5 33.2
Finance costs - net (3.5) - (3.5)
Profit before tax 6.2 23.5 29.7
Tax (1.8) 4.5 2.7
Profit for the period 4.4 28.0 32.4
from continuing
operations
Discontinued operations 19.3 0.6 - 0.6
( note 14)
Total revenue/profit for the period 432.2 5.0 28.0 33.0
Notes to condensed consolidated interim financial information
Unaudited
Note 2 Segmental analysis (continued)
Revenue Segment result
Year ended 31 March 2007 Gross Inter- Sales to Operating Exceptional Operating
sales segment external profit items profit
(audited) £m sales customers before £m £m
£m £m exceptionals
£m
Logistics
UK 294.6 (3.2) 291.4 10.2 23.2 33.4
Mainland Europe 158.8 - 158.8 3.6 (1.3) 2.3
Total Logistics 453.4 (3.2) 450.2 13.8 21.9 35.7
Transport
UK 139.2 (10.4) 128.8 (4.8) 11.2 6.4
Iberia 130.6 (0.9) 129.7 1.8 (1.0) 0.8
France 146.3 (0.6) 145.7 6.2 - 6.2
Total Transport 416.1 (11.9) 404.2 3.2 10.2 13.4
Total segment 869.5 (15.1) 854.4 17.0 32.1 49.1
Unallocated
Exceptional items - - (0.9) (0.9)
central
Operating profit 17.0 31.2 48.2
Finance costs - net (5.6) - (5.6)
Profit before tax 11.4 31.2 42.6
Tax (0.2) 5.8 5.6
Profit for the year from 11.2 37.0 48.2
continuing operations
Discontinued operations 44.6 0.7 (1.5) (0.8)
(note 14)
Total revenue/profit for the year 899.0 11.9 35.5 47.4
Note 3 Exchange rates
The exchange rates used for the translation of euro into sterling were:
Half year Half year Year
ended ended ended
30 September 30 31 March
2007 September 2007
2006
Average rate - income statement 1.47 1.46 1.48
Period end rate - balance sheet 1.43 1.47 1.47
Notes to condensed consolidated interim financial information
Unaudited
Note 4 Earnings per share
Basic earnings per share are calculated on a weighted average number of the
shares in issue during the period of 264.8m (31 March 2007: 264.8m, 30
September 2006: 264.7m).
Diluted earnings per share for the half year ended 30 September 2007 have been
calculated using a weighted average number of shares of 272.2m (31 March 2007:
269.0m, 30 September 2006: 269.7m).
Half year Half year Year
ended ended ended
30 September 30 31 March
2007 September 2007
pence 2006 pence
pence
Continuing operations
- basic 1.50 12.24 18.20
- basic before exceptional items 1.87 1.66 4.23
- diluted 1.45 12.01 17.92
Discontinued operations
- basic (1.21) 0.22 (0.30)
- basic before exceptional items 0.24 0.22 0.26
- diluted (1.17) 0.22 (0.30)
Continuing and discontinued operations
- basic 0.29 12.46 17.90
- basic before exceptional items 2.11 1.88 4.49
- diluted 0.28 12.23 17.62
Note 5 Dividends on ordinary shares
pence per share Half year Half year Year
ended ended ended
30 September 30 31 March
2007 September 2007
2006
Interim - 1.20 1.20
Final - - 2.45
- 1.20 3.65
The final dividends paid in August 2007 and August 2006 were £6.4m (2.45p per share).
No interim dividend (2006: 1.20p per share and total cost of £3.2m) has been
declared by the directors.
Notes to condensed consolidated interim financial information
Unaudited
Note 6 Exceptional operating income and cost
Half year Half year Year
ended ended ended
30 September 30 31 March
2007 September 2007
£m 2006 £m
£m
Continuing operations
Exceptional profit on sale of non-current 1.0 26.0 26.0
assets
Corporate disposal costs (0.9) - -
Past service pension credit - - 14.0
Restructuring and site closure costs (1.3) (2.5) (8.8)
(1.2) 23.5 31.2
Attributable tax 0.2 4.5 5.8
(1.0) 28.0 37.0
Discontinued operations
Additional provision in respect of business - - (2.0)
sold in an earlier year
Past service pension credit - - 0.7
Restructuring and site closure costs - - (0.3)
Loss on disposal of business (note 14) (4.9) - -
(4.9) - (1.6)
Attributable tax 1.0 - 0.1
(3.9) - (1.5)
(4.9) 28.0 35.5
Note 7 Net finance costs
Half year Half year Year ended
ended ended 31 March
30 September 30 2007
2007 September £m
£m 2006
£m
Finance costs:
Interest payable on bank loans and (4.0) (3.9) (7.9)
overdrafts
Interest payable on finance leases (0.3) (0.3) (0.7)
Amortisation of issue costs of bank loan (0.3) (0.3) (0.7)
(4.6) (4.5) (9.3)
Finance income -interest receivable 2.8 1.0 3.7
Net finance costs (1.8) (3.5) (5.6)
Notes to condensed consolidated interim financial information
Unaudited
Note 8 Taxation
Half year Half year Year
ended ended ended
30 September 30 September 31 March
2007 2006 2007
£m £m £m
Continuing operations - UK 1.0 (4.4) (9.4)
- Overseas 1.0 1.7 3.8
2.0 (2.7) (5.6)
Discontinued operations - UK (0.8) 0.3 0.3
1.2 (2.4) (5.3)
Analysed as:
Tax on profit before exceptional items - 2.2 1.8 0.2
continuing
- discontinued 0.2 0.3 0.4
2.4 2.1 0.6
Tax on exceptional items
Profit on sale of non-current assets - 0.3 (3.8) (3.1)
continuing
Disposal of business - discontinued (1.0) - -
Restructuring costs - continuing (0.5) (0.7) (2.7)
- discontinued - - (0.1)
(1.2) (4.5) (5.9)
1.2 (2.4) (5.3)
Note 9 Analysis of Group net debt
Half year ended 30 September 1 April Cash flow Exchange 30
2007 2007 £m adjustment September
£m £m 2007
£m
Cash
Cash at bank and in hand 112.0 (37.3) 0.3 75.0
Overdrafts (76.4) 36.8 - (39.6)
35.6 (0.5) 0.3 35.4
Liquid resources
Short term deposits 27.0 (3.1) - 23.9
Total net cash and cash equivalents 62.6 (3.6) 0.3 59.3
Financing
Debt due within one year (1.1) (73.7) (2.4) (77.2)
Finance leases due within one (2.3) 0.7 - (1.6)
year
Debt due after one year (91.4) 91.4 - -
Finance leases due after more than (7.2) 0.3 - (6.9)
one year
(102.0) 18.7 (2.4) (85.7)
Total net debt (39.4) 15.1 (2.1) (26.4)
Notes to condensed consolidated interim financial information
Unaudited
Note 9 Analysis of Group net debt (continued)
Half year ended 30 1 April Cash flow Exchange 30
September 2006 2006 £m adjustment September
£m £m 2006
£m
Cash
Cash at bank and in hand 41.8 (49.7) (0.8) 90.7
Overdrafts (5.3) 49.0 - (54.3)
36.5 0.7 (0.8) 36.4
Liquid resources
Short term deposits 14.3 42.2 - 56.5
Total net cash and cash equivalents 50.8 42.9 (0.8) 92.9
Financing
Debt due within one year (2.0) 0.5 - (1.5)
Finance leases due within one (2.1) 0.4 - (1.7)
year
Debt due after one year (131.5) (1.0) 4.2 (128.3)
Finance leases due after more than (9.5) 0.7 - (8.8)
one year
(145.1) 0.6 4.2 (140.3)
Total net debt (94.3) 43.5 3.4 (47.4)
Note 10 Analysis of balance sheet net debt position
30 30
September September 31 March
2007 2006 2007
£m £m £m
Cash and cash equivalents 98.9 147.2 139.0
Overdrafts (39.6) (54.3) (76.4)
Net cash and cash equivalents 59.3 92.9 62.6
Short-term loans (77.2) (1.5) (1.1)
Long-term loans - (128.3) (91.4)
Finance leases (8.5) (10.5) (9.5)
(26.4) (47.4) (39.4)
The Group discloses its gross bank and overdraft balances despite any legal
right of set which may exist.
Notes to condensed consolidated interim financial information
Unaudited
Note 11 Summary cash flow
Half year
ended Half year Year ended
30 September ended 31 March
2007 30 September 2007
£m 2006 £m
£m
EBITDA 19.8 21.9 39.8
Working capital 0.3 (8.5) (3.5)
Interest & tax (4.4) (1.7) (5.0)
Exceptional costs & other (4.4) (2.1) (6.2)
Fixed asset receipts 2.1 49.9 52.2
Capital expenditure (7.2) (9.6) (16.1)
Free cash flow 6.2 49.9 61.2
Acquisitions and disposals 15.3 - -
Dividends paid (6.4) (6.4) (9.6)
Net cash flow 15.1 43.5 51.6
Note 12 Pension commitment
The pension liability shown in the balance sheet at 30 September 2007 is the
amount calculated as at 31 March 2007, adjusted for the contributions, charges
and finance costs in the half year period. No interim revaluation of the assets
and liabilities of the scheme has been carried out, as permitted by IAS 19, and
accordingly, there is no actuarial gain or loss shown in the statement of
recognised income and expense in respect of the half year. The figures for the
gains and losses for the whole year, and the surplus or deficit as at the end
of the year, will be presented in the annual report to 31 March 2008. The
related deferred tax asset has been reduced to reflect both the impact of the
net change in the deficit being carried in the balance sheet and the reduction
in the mainstream rate of UK corporation tax from 30% to 28% which is
applicable from April 2008.
Note 13 Related party transactions
Group trading transactions
During the period the following transactions were carried out with related
parties:
Sale of goods and services Purchase of goods and
services
Year Year
Half year Half year ended Half year Half year ended
ended 30 ended 30 31 ended 30 ended 30 31
September September March September September March
2007 2006 2007 2007 2006 2007
£m £m £m £m £m £m
Joint ventures
Holistica Solutions - - - 0.2 - 0.2
Limited (UK)
Salvesen Boxtel bv - 3.4 7.7 - - -
(Netherlands)
Salvesen Logistica SL - - - - - -
(Spain)
Salvesen Logisfashion SL - 0.4 0.6 - - -
(Spain)
- 3.8 8.3 0.2 - 0.2
Associates
Centro Logistico - - - - - -
Automovil SA (Spain)
Outstanding related party balances were negligible.
Two properties are leased from Didier Darfeuille, a senior manager within the
business. The leases have been negotiated on an arms length basis with rent
payable of £0.7m per annum.
Notes to condensed consolidated interim financial information
Unaudited
Note 14 Disposal of business
On 10 September 2007, the Group completed the disposal of its Salvesen Foods
vegetable processing business to Pinguin Foods UK Limited for a cash
consideration of £17.3m of which £16.6m was received on the day of completion.
The outstanding £0.7m of cash consideration has been shown as deferred
consideration in respect of businesses disposed of at 30 September 2007 and
this amount was actually received on 5 October 2007. At 30 September 2007 £0.9m
of the transaction costs remained unpaid and are included in short-term
provisions in respect of businesses disposed of. In addition the Group paid
cash out of £0.7m in respect of net working capital it retained from the
business sold.
The consolidated net assets of the Salvesen Foods business at the point of
disposal were as follows:
£m
Property, plant and equipment 6.7
Less property retained (2.1)
Inventories 16.0
Trade and other receivables 0.2
Trade and other payables (0.1)
Net assets at disposal 20.7
Consideration received - cash 17.3
Transaction costs (1.5)
Net consideration 15.8
Loss on disposal (4.9)
The results of discontinued operations, shown separately on the face of the
income statement, can be analysed as follows:
Half year
ended Half year Year ended
30 September ended 31 March
2007 30 September 2007
£m 2006 £m
£m
Revenue 20.2 19.3 44.6
Cost of sales (19.0) (18.0) (42.8)
Gross profit 1.2 1.3 1.8
Exceptional operating income - - 0.7
Exceptional administrative expenses - - (0.3)
Administrative expenses (0.3) (0.4) (0.7)
Operating profit 0.9 0.9 1.5
Taxation (0.2) (0.3) (0.3)
Profit for the period from discontinued 0.7 0.6 1.2
operations
Additional provision in respect of - - (2.0)
business sold in an earlier year
Loss on disposal (4.9) - -
Tax on loss on disposal 1.0 - -
Net (loss) / profit from discontinued (3.2) 0.6 (0.8)
operations
The net cash flows of Salvesen Foods were as follows:
Half year Half year Year ended
ended ended 31 March
30 September 30 September 2007
2007 2006 £m
£m £m
Operating 7.1 (0.4) (2.7)
Investing 15.0 (0.6) (0.8)
Financing - - -
Net cash inflow / ( outflow) 22.1 (1.0) (3.5)
The Group also disposed of its 50% joint venture investment in Salvesen Boxtel
bv on 20 April 2007 at the carrying value of its net assets, which were
negligible, to its joint venture partner Dumeco bv.
Notes to condensed consolidated interim financial information
Unaudited
Note 15 Provisions
Half year ended 30 Released/ At 30
September 2007 At 1 Charged in unused September
April Utilised the period amounts 2007
2007 £m £m reversed £m
£m £m
Retirement indemnity 1.2 - 0.1 - 1.3
Uninsured losses 9.4 (1.7) 2.0 (0.2) 9.5
Dilapidations 1.8 (0.2) 0.1 (0.2) 1.5
Restructuring 2.6 (2.2) 1.7 - 2.1
Onerous leases 2.7 (0.5) - - 2.2
Holiday pay 4.5 (4.4) 1.7 - 1.8
Other 0.4 (0.1) 0.1 - 0.4
22.6 (9.1) 5.7 (0.4) 18.8
Half year ended 30 Released/ At 30
September 2006 At 1 Charged in unused September
April Utilised the period amounts 2006
2006 £m £m reversed £m
£m £m
Retirement indemnity 1.1 - 0.1 - 1.2
Uninsured losses 9.0 (1.5) 1.9 - 9.4
Dilapidations 1.6 (0.1) 0.1 (0.1) 1.5
Restructuring 0.7 (0.5) 1.0 (0.1) 1.1
Onerous leases - - 0.7 - 0.7
Holiday pay 4.0 (1.6) 0.3 - 2.7
Other 0.7 (0.3) - - 0.4
17.1 (4.0) 4.1 (0.2) 17.0
Year ended 31 March Released/
2007 At 1 Charged in unused At 31 March
April Utilised the year amounts 2007
2006 £m £m reversed £m
£m £m
Retirement indemnity 1.1 - 0.1 - 1.2
Uninsured losses 9.0 (3.1) 3.5 - 9.4
Dilapidations 1.6 (0.1) 0.6 (0.3) 1.8
Restructuring 0.7 (0.5) 2.6 (0.2) 2.6
Onerous leases - - 2.7 - 2.7
Holiday pay 4.0 (3.1) 3.6 - 4.5
Other 0.7 (0.4) 0.1 - 0.4
17.1 (7.2) 13.2 (0.5) 22.6
30 30 September 31 March
September 2006 2007
2007 £m £m
£m
Current 15.5 13.6 18.6
Non-current 3.3 3.4 4.0
18.8 17.0 22.6
Retirement indemnity
This represents the obligation to pay retirement compensation to employees in
France at the end of their working lives and is generally due to be paid after
more than one year.
Uninsured losses
The uninsured losses provision is in respect of the cost of claims (principally
for commercial vehicles and employer's liability) which are not insured
externally, and fall below the excess of the Group's insurance policies. Claims
are strictly payable within one year but the directors anticipate that payments
will generally be made over the course of the next five years although some
claims can take longer to settle.
Notes to condensed consolidated interim financial information
Unaudited
Note 15 Provisions (continued)
Dilapidations
Provisions are established over the life of the lease for properties leased by
the Group to cover remedial work necessary at lease termination under the terms
of the leases. Utilisation of this provision will be generally within the next
10 years as the leases expire.
Restructuring costs
As part of the exceptional reorganisation of various Group activities, costs
were incurred, predominately in the UK, in restructuring both within the UK
operations and the Group functions. Corporate disposal costs in respect of the
recommended sale of the Group to Groupe Norbert Dentressangle SA have also been
included. At 30 September 2007 some of the cost remained unspent although the
costs had been incurred and were expected to be settled in the second half of
the year.
Onerous leases
This represents an exceptional provision for residual lease commitments on
disused properties which management do not expect to be either utilised or
sub-let in the foreseeable future.
Holiday pay
This represents holiday days accrued but not taken and is due to be paid within
one year. During the period certain liabilities were outsourced in France to a
specialist agency.
Other
This primarily represents provision for contractual long service awards.
Note 16 Property, plant and equipment, and intangible assets
Half year ended 30 September 2007 Other
Property, intangible
plant assets
and equipment £m
£m
Net book value at 1 April 2007 110.2 8.2
Exchange differences 1.5 -
Additions 5.4 1.5
Disposals (0.5) -
Disposal of business (4.6) -
Depreciation and amortisation (8.3) (1.7)
Transfer (0.3) 0.3
Net book value at 30 September 2007 103.4 8.3
There were no individually significant items of capital expenditure in the
period to 30 September 2007.
Half year ended 30 September 2006 Other
Property, intangible
plant assets
and equipment £m
£m
Net book value at 1 April 2006 139.7 8.2
Exchange differences (1.6) -
Additions 7.5 1.6
Disposals (20.2) -
Depreciation and amortisation (9.7) (1.6)
Net book value at 30 September 2006 115.7 8.2
Notes to condensed consolidated interim financial information
Unaudited
Note 16 Property, plant and equipment, and intangible assets (continued)
Year ended 31 March 2007 Other
Property, intangible
plant assets
and equipment £m
£m
Net book value at 1 April 2006 139.7 8.2
Exchange differences (1.5) (0.1)
Additions 12.0 3.3
Disposals (21.5) -
Depreciation and amortisation (18.5) (3.2)
Net book value at 31 March 2007 110.2 8.2
Note 17 Events occurring after the balance sheet date
On 9 November 2007, shareholders approved the recommended acquisition of
Christian Salvesen PLC by Groupe Norbert Dentressangle SA by means of a scheme
of arrangement under section 425 of the Companies Act 1985.
Note 18 Share based payments
On 11 June 2007 options were granted over 1,712,446 shares in the company under
the Long-Term Incentive Plan. The options have a fair value of 52.36p per share
and a 3 year vesting period from grant date.
On 27 July 2007 options were granted over 3,365,257 shares in the company under
the Savings-Related Share Option Scheme 1997. The options have a fair value of
17.50p per share and a 3 year vesting period from date of grant with a further
6 month exercise window.
Note 19 Finance lease receivables
The Group has committed to the purchase of £4m of assets in the second half of
the financial year. These assets will be classified as being held as finance
lease receivables as defined under IFRIC 4. The arrangement will run for 10
years with repayments commencing in the next financial year.
Statement of directors' responsibilities
The directors confirm that this condensed set of financial statements has been
prepared in accordance with IAS 34 as adopted by the European Union, and that
the interim management report herein includes a fair review of the information
required by DTR 4.2.7 and DTR 4.2.8.
The directors of Christian Salvesen PLC are listed in the Christian Salvesen
Group Annual Report for 31 March 2007. A list of current directors is
maintained on the Christian Salvesen PLC website: www.salvesen.com.
By order of the board
Directors
Stewart Oades
Julian Steadman
29 November 2007
END
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