p r e l i m i n a r y r e s u l t s 3 march 2004
TRANSCRIPT
P R E L I M I N A R Y R E S U L T S3 March 2004
Financial Highlights - 2003
£ million 2003 2002 % inc
Group sales 146.1 138.0 5.9%
Operating profit before exceptional items– continuing operations
21.1 18.4 15.0%
Operating margin – continuing operations14.4% 13.3%
8.3%
Exceptional items 0.0 (1.8)
Net interest (3.0) (2.9)
Profit before tax 18.0 13.7 31.3%
Earnings per share 7.9p 7.2p 9.7%
Earnings per share before exceptional items
7.9p 6.0p 31.7%
Dividend per share 3.5p 3.0p 16.7%
Key Features
Continued steady trading
Good volume growth
Strong Eastern European performance
Stable pricing
Margin improvement from productivity and plant yields
Further reduction in net debt
Purchase of Cutisin minority shareholding
Sales Analysis 2003
Sales change vs 2002
2003
Volume 5.3%
Price / Mix (1.3)%
Operations 4.0%
Foreign Exchange 1.9%
Total 5.9%
Regional sales by destination 2003
Sales change vs 2002
Steady performance in UK / Ireland Recovery in Germany Strong growth in Eastern European
markets Good Cutisin performance in both edible
and non-edible collagen
2003£m Operations Exchange Total
Europe 86.5 2.9% 4.2% 7.1%
Regional sales 2003
Sales change vs 2002
Market share gain in domestic US market Strong growth in Latin America Adverse price / mix impact Impact of weak US$
2003£m Operations Exchange Total
Americas 30.9 7.8% (8.8)% (1.0)%
Regional sales 2003
Sales change vs 2002
Solid collagen sales performance in Australia / New Zealand
Reduction of volumes in South East Asia Strong recovery of volumes in Japan Positive exchange
2003£m Operations Exchange Total
Asia / Pacific 28.7 3.3% 7.4% 10.7%
Regional sales by destination 2003
Sales change vs 2002
Full Year
2003£m Operations Exchange Total
Europe 86.5 2.9% 4.2% 7.1%
Americas 30.9 7.8% (8.8)% (1.0)%
Asia / Pacific 28.7 3.3% 7.4% 10.7%
Total 146.1 4.0% 1.9% 5.9%
Profit and Loss - 2003
£ million 2003 2002
Group sales 146.1 138.0
Operating profit before exceptional items– continuing operations
21.1 18.4
Operating margin – continuing operations 14.4% 13.3%
Exceptional items 0.0 (1.8)
Net interest (3.0) (2.9)
Profit before tax 18.0 13.7
Tax 5.2 1.01
Minority interest 0.2 0.2
Profit for year 12.7 12.5
12002 includes an exceptional credit of £3.2m
Earnings and Dividend - 2003
2003 2002
Earnings per ordinary share
Basic 7.9p 7.2p
Diluted 7.9p 7.2p
Before exceptional items 7.9p 6.0p
Dividend per ordinary share 3.5p 3.0p
Balance Sheet
£ million 2003 2002
Fixed assets 89.2 89.2
Net current assets 25.8 25.2
Long term creditors and provisions (50.2) (55.7)
64.8 58.7
Share capital, share premium and reserves 56.6 56.6
Retained earnings 8.2 (0.6)
64.8 56.0
Minority interest 0.0 2.7
64.8 58.7
Net debt (26.7) (35.2)
Net gearing 41.2% 62.9%
Cash Flow
£ million 2003 2002
Net cash inflow from operating activities28.6
29.3
Net interest paid(3.1)
(3.0)
Taxation(3.2)
1.8
Capital expenditure(7.3)
(5.6)
Acquisitions and disposals(0.2)
(1.2)
Preference dividend paid0.0
(2.3)
Equity dividend paid(5.0)
(3.2)
Net cash flow before financing 9.8 15.8Redemption of preference shares 0.0 (27.7)Exchange (1.2) 1.3
Decrease / (increase) in net debt 8.6 (10.6)
Interest cover 7.0 6.4*
*calculated on operating profits – continuing operations before exceptional items
Outlook
Regulatory issues on collagen sourcing
Initial investigations into development of new products
Reasonable start to the year in general trading