MFI Furniture Gp PLC - Final Results
01 July 1997 - 8:32AM
UK Regulatory
RNS No 7363k
MFI FURNITURE GROUP PLC
1st July 1997
MFI Furniture Group Plc
Final Results Announcement
For the 52 weeks ended 26 April 1997
MFI Furniture Group Plc, the UKs largest retailer and
manufacturer of kitchen and bedroom furniture, announces its
Preliminary Results for the 52 weeks to 26 April 1997.
Turnover of #845.6 (1996 - #766.2m) up 10.4%
- UK retail sales and sales per square foot up 9%.
- Strong sales growth from higher priced Schreiber kitchen ranges.
- Good performance in kitchens, bedrooms, appliances and textiles.
- Sales in France and Spain #59.3m; up 24% in local currency.
Gross margin increased to 54.5% (1996 - 52.5%)
- Lower raw material costs helped by strength of sterling.
- Higher proportion of sales manufactured in-house, now 56%.
Net operating margins rise from 8.1% to 8.9%
Pre-tax profits up 21% to #70.3m (1996 - #58.1m)
Earnings per share up 18% to 8.24p (1996 - 6.97p)
Dividend per ordinary share of 4.8p (1996 - 4.4p); up 9%
- Covered 1.7 times
Investing for growth
- Capital expenditure increased by 22% to #73m. (1996 - #60m).
- Investing in MFI Homeworks, new products, France, Howden
Joinery, manufacturing, distribution and freehold developments.
UK retail developments
- MFI Homeworks very successful - 98 stores now trading in this format.
- 6 new UK stores opened, 3 relocations, 3 closure - 186
stores at year end.
- Further developments to be led by John OConnell.
- Aiming for lower selling costs and greater distribution efficiencies.
Other trading
- 13 new French stores bringing total to 99 stores at year end.
- Howden Joinery trade venture exceeds expectations - now
trading from 37 depots.
Current trading & prospects - Mr Derek Hunt, Chairman of MFI,
states:
In the 9 weeks since the year end Group turnover has increased
by 5% over the previous year. This time last year sales were
very strong. We are particularly pleased to have beaten this
very demanding comparative period from last year. We have
continued to develop the business across a broad front and
made good progress in highly competitive markets.
For further Derek Hunt, Chairman Tel. 0181 913 5300
information contact: John Randall, Chief Tel. 0181 913 5345
Executive
Sue Murphy, Finance Tel. 0181 913 5343
Director
FINANCIAL HIGHLIGHTS
1997 1996
52 52
weeks weeks
Consolidated results #m #m
Turnover 845.6 766.2
Operating profit 75.0 61.8
Profit on ordinary activities 70.3 58.1
before taxation
Dividend per Ordinary Share of
10p each
- Interim 1.70p 1.50p
- Final 3.10p 2.90p
- Full year dividend 4.80p 4.40p
- Dividend cover 1.7x 1.8x
Earnings per share
- Earnings per share 8.24p 8.11p
- Earnings per share before 8.24p 6.97p
exceptional items
Gearing 27% 20%
Net borrowings at period end #60.8m #38.9m
Retail area at period end (000's 6,574 6,413
sq ft)
Retail sales per square foot (# 120.67 113.10
per sq ft)
Average number of employees 9,294 8,238
(full time equivalent)
Chairmans Statement
Results for 52 weeks to 26 April 1997
These are the results for the 52 weeks to 26 April 1997. Group
sales, at #845.6m, were 10.4% higher than last year with the
majority of this increase arising from our UK businesses.
Retail sales per square foot in the UK increased by 9%.
Operating profits rose to #75m, an increase of 21%.
Profit before tax grew from #58.1m last year to #70.3m, an
increase of 21%. Earnings per share, at 8.24p (1996 - pre-
exceptional 6.97p), have risen by 18%.
This improvement in profitability has been helped by a
stronger gross margin which has grown from 52.5% to 54.5%. We
have benefited from lower raw material prices, a higher
proportion of retail sales being produced in our own factories
and the strength of sterling.
UK Retail Development Strategy
When we first started the MFI Homeworks development programme,
we were aware that one of the benefits was the standardisation
of the showroom layout which would allow us to examine in
detail the performance of all our products. As we expected,
our core products of kitchens and bedrooms are performing
well, but some of the other product groups are producing less
satisfactory returns.
During the last year we have been carrying out a review with
the objective of producing better sales performance within the
stores, lowering our selling costs and improving distribution
efficiency. At present, payroll and overhead costs within our
retail business are being adversely affected by the conversion
programme and the transitional distribution arrangements.
With over half our stores converted to the MFI Homeworks
format, we are now confident to proceed with further changes
to enhance the overall performance of the stores. This
continuing evolution of the MFI Homeworks format will
consolidate the trading success which has been achieved so
far.
This stage of development will be managed by John OConnell
who has today been appointed as Managing Director of MFI
Furniture Centres. Trevor Tellett has resigned from this
position and also from the Group Board. I would like to
acknowledge the contribution Trevor has made to MFI, in
particular the development of the MFI Homeworks concept. I am
pleased that he has agreed to continue assisting the company
in an advisory capacity.
Trading - Other Businesses
In France planning restrictions have continued to hinder the
opening programme, and this, combined with a depressed
economy, has resulted in the division breaking even in the
year, compared to a small profit last year. We are now
planning to open smaller stores which will not be affected by
these planning restrictions. This will enable us to
accelerate the expansion of the business which is now the key
element in improving profitability. We now have five pilot
stores in Spain which are being run by our French management
team.
The Howdens trade venture is meeting our best expectations
and, as a result, is being expanded faster than we originally
intended. We expect to be trading from 60 depots by the end
of 1997.
Our overseas franchise operation now has outlets in twelve
countries. We are continuing to look for other opportunities
to expand this business into other countries.
Our most significant competitive advantage remains the
vertical integration of the business. During the last twelve
months our manufacturing operation produced 56% of all
products sold within the Group. As a result of the continued
growth in our retail and trade formats, we are now undertaking
extensive expansion and development of our manufacturing
facilities.
Investment in the business has been across all areas with
capital expenditure of #73m compared to #60m last year.
Approximately half of this has been spent developing our
trading outlets, #13m has been spent on property investment
and #13m on new and extended manufacturing capacity. We
intend to increase the pace of our investment programme in the
year to April 1998 with capital expenditure expected to reach
#80m.
None of this progress could have been achieved without the
tremendous efforts of our employees. We operate in tough and
competitive markets where dedication to the customer, quality,
and efficiency is paramount. I want to thank everyone very
much indeed for the way they have responded to the demands of
our markets.
Dividend
The Board has recommended a final dividend of 3.1 pence per
share (1996 - 2.9 pence per share) which, together with the interim
dividend of 1.7 pence per share, will give a total dividend
for the year of 4.8 pence per share (1996 - 4.4 pence per
share), an increase of 9%.
The final dividend, if approved, will be paid on 3 October
1997 to shareholders on the register on 19 September 1997.
Non-Executive Appointment
I am pleased to announce that Denise Kingsmill was appointed
to the Board as a non-executive director on 1 May 1997. She is
Deputy Chairman Designate of the Monopolies and Mergers
Commission and a consultant at Denton Hall Solicitors. Denise
brings extensive knowledge and experience to the Board.
Current Trading
In the 9 weeks since the year end Group turnover has increased
by 5% over the previous year. This time last year sales were
very strong. We are particularly pleased to have beaten this
very demanding comparative period from last year. We have
continued to develop the business across a broad front and
made good progress in highly competitive markets.
D S Hunt
Chairman 1 July 1997
Chief Executives Review
Over the last 12 months the Group has increased its trading
profits by 22%. Sales increases of 10.4% have been recorded
despite difficult trading conditions in a number of our
markets. Our strategy of investment and development has
continued in each area of the business and my review this year
focuses on our progress.
UK Retailing
- Sales increase 9%
- Increase in sales 9% per sq. ft
The last 12 months have seen large swings in demand with
consumer confidence being affected by a variety of economic
factors. In particular, house moves have increased 19% to 1.3
million over the last 12 months. Whilst this is a definite
improvement in the levels seen over the last few years it is
still considerably below the 2.1 million peak level seen in
the late 1980s. In addition, published statistics reveal
that the bulk of the increase in house moves is concentrated
in London and the South East with slower recovery in other regions.
We believe that the increase in house moves is biased toward
the higher end of the market. We can clearly see this pattern
within our sales statistics where strong sales growth has been
achieved in the higher priced Schreiber kitchen ranges but the
kitchen market as a whole has shown little growth. If the
improvement in the housing market follows previous recoveries,
then this increase in house moves will start to become evident
in other parts of the country.
Despite this background, we have achieved above average sales
growth in our kitchens and also in appliances and textiles.
The MFI Homeworks format has also consistently delivered
increased sales. Our market research shows that the MFI
Homeworks stores are attracting and retaining a broader range
of customers with an increasing representation from younger
age groups. Half of the stores are now trading in the MFI
Homeworks format and we intend to complete the conversions
within the next two years.
As the MFI Homeworks programme has progressed, the size of
warehouses attached to the stores has been gradually reduced.
To enable the branches to operate from smaller warehouses,
additional temporary warehouse arrangements have been
established. At the same time we have been developing more
efficient distribution centres serving a larger number of
branches. Two of these are now operating successfully in the
London area and we are beginning a programme of extending this
type of distribution throughout the country. As this takes
place and the short term transitional arrangements are
rationalised, greater efficiencies in both payroll and
overheads will be obtained.
One clear benefit of MFI Homeworks is the evaluation of
product performance which can be measured effectively as a
result of standardisation of the showroom layout. Our product
development will now be focused on improving the performance
in those non-core areas which are less than satisfactory. The
MFI Homeworks layout was specifically designed to enable
product changes to be easily accommodated.
Our product development programme during the year has
continued with a further expansion of our range of kitchens
including a number of new contemporary designs as well as
upgrades to our traditional ranges. The average value of a
kitchen sale continues to increase and we have substantial
demand for new products introduced at the higher end of the
price range. We believe that there are significant
opportunities to introduce more products of this type.
We have broadened our appliance offer to complement our new
kitchen ranges and to satisfy customer demand for new colours
and added features. Product development has continued across
all other areas of the business with a noticeable increase in
sales resulting from many of the initiatives.
Manufacturing
Group sales of own-manufactured goods have risen to 56% from
55% last year. We believe that vertical integration has
substantially strengthened the Groups competitive position,
the main benefits being:-
- Manufacturing margin is obtained in addition to a retail margin.
- Manufacturing operation has high flexibility and low fixed costs.
- Production schedules can be adjusted at short notice to
reflect changes in demand.
- Product quality and reliability of supply are enhanced.
Additional manufacturing facilities are now required to
service the growth arising from the main retail business and
also the growing Howdens, Hygena Cuisines and International
operations. Consequently we are currently developing
additional manufacturing and warehousing capacity totalling
675,000 square feet. We have invested #13 million into these
facilities this year and intend to spend a further #20 million
over the coming year.
This expenditure will enable our capacity of certain products
to be increased. These include pine products, painted and
lacquered bedroom finishes, PVC doors and also additional
capacity for ovens. In addition, we will be upgrading some of
our core production facilities to incorporate new control
technology which will increase manufacturing productivity.
Trade Business
Our Howden Joinery trade venture, which was launched in
October 1995 with 14 depots of up to 10,000 square feet,
doubled its size to 30 outlets at the year end. A further 7
depots have opened so far in the new financial year.
Howden Joinery has taken the Group into a new sector of the
kitchen market where we can exploit our position as a low cost
furniture manufacturer. As expected the overall business is at
present making losses, although we are pleased how quickly the
original 14 depots have been able to trade profitably,
increasing their average weekly sales by over 35% in the last
year. A large proportion of the goods sold by Howdens is made
in our factories, already increasing manufacturing profits for the Group.
France & Spain
- Sales increase 24% (local currency)
- Sales per sq ft 1% (local currency)
Despite the economic difficulties in France, we have continued
our expansion programme with 13 store openings in the year,
although more stringent planning regulations and a low
availability of new sites means that suitable properties
remain difficult to obtain. We are now planning to open
smaller stores which will not be affected by these planning
restrictions. This will enable us to accelerate the expansion
of the business which has been held back over the last two years.
In the last 12 months, France has achieved a break-even
position compared to a small profit the previous year. We feel
that this sales and profit performance is creditable,
especially in relation to the poor economic background in
France. It should be noted that Hygena Cuisines purchases a
high proportion of its products from the UK Hygena factories,
with the result that these extra sales increase the
manufacturing throughput and hence profitability in the UK.
The pilot scheme in Spain has been extended during the year by
an additional three stores, making 5 in total. This operation
has started well although it is too early to comment on the
potential for our products in this new market.
MFI International
Our objective is to create an export business, capable of
contributing to the Groups profits both by direct sales of
furniture and by increasing manufacturing volumes and profits.
We are setting up overseas franchises, with these stores being
based on the MFI Homeworks concept, but stocking a reduced
range. In this way the Group can broaden its overseas
customer base with minimal capital investment.
During the year, four MFI Homeworks franchises were opened in
Istanbul, Kuala Lumpur, Sharjah and Hong Kong.
Property
In addition to sub-leasing surplus retail space, our objective
is to grow our freehold property base as a hedge against
rising retail rents, whilst at the same time providing solid
asset backing on our balance sheet.
We are continually exploring the opportunities to develop our
property portfolio. These typically involve the acquisition
of land alongside an existing MFI store where we demolish the
old site and build a new retail park. Not only do we benefit
from an enhanced trading location at these sites, but the new
retail space gives us further rental income. In all cases
there is a substantial development profit available, although
it is our practice to keep the asset on the balance sheet at cost.
We have now received planning permission for a 173,000 square
feet major high street development in Inverness. This is based
on the site of an old MFI store which has now relocated to a
more appropriate out of town location. The scheme is to be
anchored by an 83,000 square foot Debenhams store. We would
not normally undertake a high street development and we are
now considering the funding and development options with third parties.
During the year 210,000 square feet has been sub-leased as a
result of branch warehouse space released from the MFI
Homeworks programme. A further 135,000 square feet which is
now available for sub-leasing is under negotiation or being
marketed.
J D Randall
Chief Executive 1 July 1997
Financial Review
Turnover
During the year, Group sales grew by 10.4%. The majority of
this increase has arisen from our UK businesses.
1996/97 1995/96 Increase %
#m #m #m increase
UK 771.9 698.3 73.6 10.5
France & Spain 59.3 58.1 1.2 2.1
International 14.4 9.8 4.6 46.9
Group 845.6 766.2 79.4 10.4
UK Retail sales have increased by 9% over last year.
Turnover in France & Spain has increased by 23.9% in local
currency over last year. If exchange rates had been at the
same level as last year, the sales increase for the Group
would have been 1.6 percentage points higher at 12%.
Gross Margin
The gross margin for the year was 54.5% which compares with
52.5% in the previous year. The majority of this increase is
due to an improved manufacturing gross margin as a result of
lower raw material prices and the strength of sterling.
In addition, the gross margin has been favourably affected by
an increase in the amount of retail sales made in our own
factories which has grown from 55% to 56%.
Other Operating Income
Other operating income has increased from #17.6m to #18.0m and
includes rent receivable and commissions earned on credit
sales.
Rent receivable was #13.5m compared with #14.1m the previous
year. Last years reported figure included #1.1m of one-off
credits. During the year, space at five stores was surrendered
back to the landlord, which in a full year will reduce rent
receivable by #0.5m but which will also save #0.6m of rent
payable. Excluding these two items the underlying increase in
rent receivable is #0.7m which is the net effect in the year
of new sub-tenancy agreements. Annualised rent receivable now
stands at #14.2m.
Commission earned on credit sales was #4.5m, a 29% increase on
last years figure of #3.5m.
Payroll
Payroll costs have increased by 13.5% compared to a turnover
growth of 10.4%. This increase is due to the short term
additional expense associated with the MFI Homeworks conversions
and the extra costs arising from the changeover in our
distribution arrangements. We have now started the final stage of
the MFI Homeworks programme relating to the changes in
distribution which will reverse this trend in rising costs.
Depreciation
The increasing capital investment programme in recent years
has resulted in the depreciation charge rising from #21.7m to
#28.0m. The current level of capital expenditure indicates
that depreciation will continue to rise over the next few
years.
Other Operating Charges
Other operating charges were #203m compared to #183.9m the
previous year, an increase of 10.4%. These costs include rent
and rates, advertising, energy, distribution, repairs and
maintenance and the asset write offs arising from the MFI
Homeworks conversions.
Rent and rates now total #74m compared to #66m last year.
Rent reviews, which normally cover a five year period, are
currently averaging increases of 24% and we expect them to
rise further in the future. Our strategy of sub-leasing
excess branch warehouse space and developing specific retail
parks will help to mitigate these rises.
Rates have increased during the year by 10% which is largely
due to the phasing of Uniform Business Rate increases arising
from the 1995 revaluation of commercial rateable values.
Losses on disposal of fixed assets total #3.9m of which #3.4m
is the write off of retail branch assets which have been
replaced during the MFI Homeworks conversion programme. This
compares to #2.8m last year.
Taxation
The Groups tax rate for the year was 31% compared to 30.3% in
the previous year. This is lower than the corporation tax
rate of 33% due to a higher level of qualifying capital
expenditure which results in capital allowances being in
excess of the depreciation charge. We expect this rate to be
maintained at a similar level for 1997/98.
Earnings Per Share
Earnings per share for the year were 8.24p, an increase of 18%
on last years pre-exceptional 6.97p. The earnings per share
last year, including the exceptional tax credit, were 8.11p.
Dividends
The proposed final dividend of 3.1p gives an overall dividend
of 4.8p, an increase of 9%. This level of dividend is covered
1.7 times by earnings per share.
Capital Expenditure
Capital expenditure has grown to #73m from #60m last year.
These figures are analysed in the table below:-
1996/97 1995/96
#m #m
MFI Homeworks 23 16
conversions
New stores/depots 12 11
Manufacturing 13 6
Freehold developments 13 11
Others 12 16
73 60
Forty-five stores have been converted into the MFI Homeworks
format at a cost of #23m. We are now half way through the
conversion programme which will continue in the current year.
The continued growth of our retail and trade formats requires
additional manufacturing capacity to keep pace with
anticipated demand. Consequently, we have spent #13m on
additional manufacturing lines and will be spending over #20m
in 1997/98.
Stocks
Closing stock values totalled #96.5m, compared with #88.2m
last year. This increase is primarily due to the expansion of
Howden Joinery which sells from stock.
Borrowings and Gearing
Net borrowings at the year end were #60.8m which represented
gearing of 27% compared to 20% last year. This increase in
gearing has arisen as a direct result of our on-going
investment programme. Given our expansion plans for the
current year, we expect gearing to rise further over the next
12 months.
Store and Depot Numbers
MFI MFI Howdens France
Homeworks
At April 1996 147 36 15 86
New - 6 15 13
Stores/Depots
Closures (3) - - -
Relocations (3) 3 - -
Reformats (45) 45 - -
At April 1997 96 90 30 99
S M Murphy
Financial Director 1 July 1997
Consolidated Profit and Loss Account
For the 52 weeks ended 26 April 1997
1997 1996
52 52weeks
weeks
Notes #m #m
Turnover 2 845.6 766.2
Change in stocks 9.6 7.9
Other operating income 3 18.0 17.6
873.2 791.7
Raw materials and consumables 394.4 372.0
Staff costs 4 172.8 152.3
Depreciation of tangible fixed 28.0 21.7
assets
Other operating charges 203.0 183.9
798.2 729.9
Operating profit 2 75.0 61.8
Interest receivable and similar 7 1.3 0.8
income
Interest payable and similar 8 (6.0) (4.5)
charges
Profit on ordinary activities 70.3 58.1
before taxation
Tax 5 (21.8) (10.9)
Profit for the financial period 48.5 47.2
Dividends 6 (28.5) (25.6)
Amount transferred to reserves 8 20.0 21.6
Earnings per share 7 8.24p 8.11p
Consolidated Balance Sheet
As at 26 April 1997
1997 1996
Notes #m #m
FIXED ASSETS
Tangible assets 309.1 273.0
CURRENT ASSETS
Stocks 96.5 88.2
Debtors 75.6 62.3
Investments 0.6 2.6
Cash at bank and in hand 23.6 33.5
196.3 186.6
CREDITORS
Amounts falling due within one year 275.7 254.6
Net current liabilities (79.4) (68.0)
Total assets less current liabilities 229.7 205.0
CREDITORS
Amounts falling due after more than 1.3 1.7
one year
PROVISIONS FOR LIABILITIES AND 5.2 6.2
CHARGES
Net assets 223.2 197.1
CAPITAL AND RESERVES
Called up share capital 59.1 58.3
Share premium account 8 38.0 30.2
Other reserves 8 10.4 7.9
Profit and loss account 8 115.7 100.7
Equity shareholders funds 223.2 197.1
Consolidated Cash Flow Statement
For the 52 weeks ended 26 April 1997
1997 1996
Notes #m #m
Cash flow from operating activities 9 98.6 71.5
Returns on investments and servicing 10 (8.0) (0.7)
of finance
Taxation (20.7) (18.7)
Capital expenditure and financial 10 (72.2) (59.1)
investment
Equity dividends paid (27.1) (24.7)
(29.4) (31.7)
Management of liquid resources 10 1.5 -
Financing 10 18.3 50.5
(Decrease)/increase in cash in the 11 (9.6) 18.8
period
Reconciliation of net cash flow to
movement in net debt
(Decrease)/increase in cash in the 11 (9.6) 18.8
period
Cash movement on:
- debt and lease financing 10 (9.7) (49.4)
- liquid resources 10 (1.5) -
Change in net debt resulting from (20.8) (30.6)
cash flows
Effect of foreign exchange rate 11 (0.6) (0.1)
changes
Movement in net debt in the period (21.4) (30.7)
Net debt at the beginning of the 11 (40.6) (9.9)
period
Net debt at the end of the period 11 (62.0) (40.6)
Notes to the Financial Statements
Basis of preparation
These Statements do not constitute statutory financial
statements within the meaning of Section 240 of the
Companies Act 1985. They are an abridged statement of the
Group's full Financial Statements for the 52 week period
ended 26 April 1997 on which the auditors have made an
unqualified report and which will be sent to shareholders
and filed with the Registrar of Companies on 31 July 1997.
Turnover and profit
The turnover of the Group substantially relates to UK retail
sales and accordingly no analysis of turnover is shown.
Profits are analysed as follows:
1997 1996
52 weeks 52 weeks
#m #m
Trading profit 78.9 64.6
Loss on disposal of fixed assets (3.9) (2.8)
Operating profit 75.0 61.8
Other operating income
1997 1996
52 weeks 52 weeks
#m #m
Rents receivable 13.5 14.1
Commission income 4.5 3.5
18.0 17.6
4 Staff costs
The aggregate payroll costs of employees, including
directors, were:
1997 1996
52 weeks 52 weeks
#m #m
Wages and salaries 150.1 133.7
Social security costs 15.0 12.5
Other pension costs 7.7 6.1
172.8 152.3
5. Tax
1997 1996
52 weeks 52 weeks
#m #m
Taxation on profits for the period
comprises:
UK corporation tax 24.5 17.7
Adjustments relating to prior periods (2.7) (6.8)
21.8 10.9
6. Dividends
1997 1996
52 weeks 52 weeks
#m #m
Interim paid - 1.70 pence per share 10.2 8.7
(1996 - 1.50 pence per share)
Final proposed - 3.10 pence per share 18.3 16.9
(1996 - 2.90 pence per share)
Total dividend - 4.80 pence per share 28.5 25.6
(1996 - 4.40 pence per share)
7. Earnings per share
Earnings per share have been calculated by reference to the
profit for the financial period of #48.5m (1996 - #47.2m)
divided by the weighted average number of Ordinary Shares of
10p each amounting to 588,830,171 (1996 - 582,404,879).
The comparative earnings per share is stated including the
exceptional #6.7m prior year tax release arising from
utilisation of available capital losses within the Group.
Excluding this exceptional tax release the earnings per
share would have been 6.97p.
The fully diluted earnings per share are not materially
different from the actual earnings per share.
8. Reserves
Group
Share Profit
premium Other and
account reserves loss
account
#m #m #m
At 28 April 1996 30.2 7.9 100.7
Retained profit for the period - - 20.0
Ordinary Shares issued 7.8 - -
Amortisation of goodwill - 2.5 (2.5)
Currency translation adjustments - - (2.5)
At 26 April 1997 38.0 10.4 115.7
9. Reconciliation of operating profit to operating cash flows:
1997 1996
52 weeks 52 weeks
#m #m
Operating profit 75.0 61.8
Depreciation of tangible fixed assets 28.0 21.7
Loss on sale of tangible fixed assets 3.9 2.8
(Increase) in stocks (9.5) (11.2)
(Increase) in debtors (13.5) (16.5)
Increase in creditors and provisions 14.7 12.9
Net cash inflow from operating activities 98.6 71.5
10. Analysis of cash flows for headings netted in the
cash flow statement
1997 1996
52 weeks 52 weeks
#m #m
Returns on investments and servicing
of finance
Interest received (1.3) (0.8)
Interest paid 9.1 1.2
Interest element of finance lease rentals 0.2 0.3
Outflow on investments and servicing 8.0 0.7
of finance
Capital expenditure
Payments to acquire tangible fixed assets 73.4 60.2
Receipts from sales of tangible fixed assets(1.2) (1.1)
Outflow for Capital expenditure 72.2 59.1
Management of liquid resources
Cash withdrawn re foreign certificates 1.5 -
of deposit
Outflow of liquid resources 1.5 -
Financing
Increase/(decrease) in revolving 70.0 (10.0)
credit facility
(Decrease)/increase in short term (60.0) 60.0
borrowings
Capital element of finance lease (0.3) (0.6)
rental payments
9.7 49.4
Issue of ordinary share capital 8.6 1.1
Inflow from financing 18.3 50.5
11. Analysis of net debt
Cash Current Revol Short
at ving Net Finan Total
bank asset credit term borrow ce net
invest loans ings leases debt
ments facility
#m #m #m #m #m #m #m
As at 29 April 14.7 2.6 (25.0) - (7.7) (2.2) (9.9)
1995
Cash flow 18.8 - 10.0 (60.0) (31.2) 0.6 (30.6)
Exchange movement - - - - - (0.1) (0.1)
As at 27 April 33.5 2.6 (15.0) (60.0) (38.9) (1.7) (40.6)
1996
Cash flow (9.6) (1.5) (70.0) 60.0 (21.1) 0.3 (20.8)
Exchange (0.3) (0.5) - - (0.8) 0.2 (0.6)
movement
As at 26 April 23.6 0.6 (85.0) - (60.8) (1.2) (62.0)
1997
END