DTG.L Regulatory News (DTG)

15 Jun 2006 07:08

Dart Group PLC15 June 2006 For immediate release 15 June 2006 DART GROUP PLC PRELIMINARY RESULTS FOR YEAR ENDED 31 MARCH 2006 (UNAUDITED) Dart Group PLC, the aviation services and distribution group, announces itspreliminary results for the year ended 31 March 2006. CHAIRMAN'S STATEMENT I am pleased to report on the Group's trading for the year ended 31 March 2006. Profit before tax, goodwill amortisation and exceptional items, amounted to£14.7m (2005 - £13.9m). Profit before tax after goodwill amortisation andexceptional items amounted to £15.0m (2005 - £8.4m). Turnover was £319.6m (2005- £268.0m). Earnings per share before the amortisation of goodwill andexceptional items were 28.90p (2005 - 27.96p), whilst earnings per share aftergoodwill and exceptional items were 32.26p (2005 - 16.32p). The Board isrecommending a final dividend of 5.18p (2005 - 4.70p), taking the total dividendfor the year to 7.43p (2005 - 6.74p), an increase of 10.2%. The dividend, ifapproved, will be payable on 18 August 2006 to shareholders on the register on23 June 2006. During the year, the Group acquired three Boeing 757-200 aircraft and a furtherBoeing 737-300 series Quick Change aircraft. In total, capital expenditureamounted to £48.6m (2005 - £51.6m). As at 31 March 2006 the Group's net debtamounted to £5.5m (net cash at 31 March 2005 of £2.4m). Gearing as at 31 March2006 was 9% (2005 - ungeared). In excess of 80% of the 2006/07 Jet2.com fuel requirements have been hedged ataverage rates lower than the current market price. A small amount of fuel hasbeen hedged in respect of the 2007/08 requirement. Neither Jet2.com's contractcharter operations nor Fowler Welch-Coolchain currently has any materialexposure to oil price risk as this is substantially covered in their commercialcontracts. The net exceptional credit of £0.8m comprises the profit on the sale of theBenair companies of £3.7m, offset by the cost of ceasing Airbus A300"Eurofreighter" night freight operations, together with a provision forrelocating key operational departments from Bournemouth International Airport toLeeds Bradford International Airport. On 15 August 2005 the Company transferred its share listing from the main marketof the London Stock Exchange to AIM. In the light of the significant increase inthe market price of the Company's ordinary shares over recent years, we areproposing to split the ordinary shares into four. We believe that this willmake the ordinary shares more marketable, particularly for the smallshareholder. Subject to the passing of the necessary shareholder resolution atthe Company's AGM to be held on 3 August 2006, it is, therefore, proposedthat, with effect from the close of business on 3 August 2006, each issued andunissued ordinary share of 5 pence in the capital of the Company be sub-dividedinto four new ordinary shares of 1.25 pence each. Further information will bemailed to shareholders in due course. On 31 August 2005 the Group sold its freight forwarding business, Benair FreightInternational, and has now entered into a contract for the sale of its ChannelIslands business, Channel Express (CI) Limited. Following the completion of thissale, which is dependent on Jersey regulatory approval, the Company's businesswill comprise Jet2.com, the scheduled low-cost airline based in the north ofEngland, and Fowler Welch-Coolchain, our UK specialist temperature-controlleddistribution business which has recently been enlarged by the acquisition of thebusiness and assets of R F Fielding Cheshire Limited, whose main business of nontemperature-controlled distribution is based in Stockport, Greater Manchester. The activities of the trading companies are more fully described in the Reviewof Operations that follows this statement. Jet2.com Jet2.com now flies to 26 destinations from six bases in the North of England,Scotland and Northern Ireland. The company also operates night time mailservices with six "Quick Change" and one freighter Boeing 737-300 aircraft forRoyal Mail and has an important passenger charter programme. The company's mainoperating base is Leeds Bradford International Airport and the decision has beentaken to relocate the majority of the operational infrastructure, from ourcurrent offices in Bournemouth, to Leeds Bradford. This is a major undertakingand change for the many people affected. I am pleased to say that the majorityof the company's senior management and about one third of other staff will makethe move. The recruitment and training of replacements is obviously aconsiderable task and we are extremely grateful for everyone's help anddetermination to make the transition a success. Jet2.com currently operates 22 Boeing 737-300 aircraft, which carry 148passengers, and three larger Boeing 757-200s, which carry 235 passengers. TheBoeing 757 enables us to fly more passengers at a lower seat cost on our morepopular routes and also to fly to more distant winter sun destinations. Weexpect to increase both fleets over the coming year. Jet2.com aims to offer the lowest possible fares to its holiday, city break andbusiness destinations but also to give a welcoming on-board service which isenhanced by allocating seats at check-in. Ancillary revenues, includingcommissions from hotels, car hire, etc., sold through the website and throughon-board sales are an important source of income and are continually beingdeveloped. With the growing propensity for people to own overseas properties, take morefrequent holidays and leisure breaks in exciting and attractive European citiesand probably to retire to sunnier climes, we believe that there is hugepotential growth in the leisure air travel market. Jet2.com is now one of the most recognised air travel brands in the North ofEngland and we are well positioned to successfully grow this business. Fowler Welch-Coolchain The Group's temperature-controlled distribution company, Fowler Welch-Coolchain,had an encouraging year with increased sales and profits. The improvement insales was a reflection of new chilled distribution business for a number of theUK's major supermarkets and growth in the company's warehousing, storage andpicking operations in both Teynham, Kent, and Spalding, Lincolnshire. Inaddition to the fresh produce and chilled distribution business, in Teynham upto 150,000 cases per week of cheese and pasta are being picked and despatched,whilst in Spalding the prepared meats business has now reached 375,000 cases perweek. Considerable effort is constantly made to minimise operational costs andincrease network distribution efficiencies by ensuring that vehicles areefficiently utilised between the company's sites. Pleasingly, one of the majorconstraints on growth in the distribution business - a shortage of qualifieddrivers - is receding as well-qualified personnel from Eastern Europe arebecoming increasingly available. Subject to Jersey regulatory approval, the Group's Channel Islands distributionbusiness has been sold. The Channel Islands business was no longer seen as coreand this disposal frees up management time and resources to concentrate ondeveloping our UK distribution operations. On 28 April 2006, the business and assets of R F Fielding Cheshire Limited (InAdministration) were acquired. This company offered warehousing and distributionof non temperature-controlled goods and is primarily based in Stockport, GreaterManchester, where it had 160,000 sq.ft. of specialist warehouse premises. It wasa well-established business with a good client base of customers similar tothose of Fowler Welch-Coolchain. The company had run into financial difficultiesand our management saw the opportunity to acquire the business and assets at anattractive price from the Administrator and to profitably incorporate theoperation into the Fowler Welch-Coolchain network. This acquisition shouldcontribute in excess of £15m of turnover in ambient distribution in the 2006/07financial year and will give further opportunities both to increase thecompany's lorry fleet loaded miles and to drive down costs as a result ofincreased network efficiencies. Fowler Welch-Coolchain has extensive temperature-controlled, warehousing anddistribution facilities in Spalding and Teynham with a new distribution centreexpected to come on stream in the north east of England, later this financialyear. The new facilities of R F Fielding Cheshire Limited in the North West willfurther enhance the company's service levels and competitiveness. We expectfurther progress to be made in Fowler Welch-Coolchain in the new financial year,with growth being seen in all the business segments - temperature-controlleddistribution, ambient distribution and warehousing operations. Our Staff Change is always unsettling and the relocation of Jet2.com to Leeds Bradford isa considerable challenge for all concerned. I believe we have made every effortwith our relocation packages and general assistance to give those that wish tomake the move all possible encouragement. Obviously, there are many who, forfamily and other reasons, will be unable to relocate and will, therefore, beleaving us. We are very grateful to everyone for their contributions in the pastthat have brought us to our current position. We look forward to the excitingopportunities which our northern base brings to those who relocate and our newcolleagues who join us. We also welcome the staff of R F Fielding Cheshire Limited to FowlerWelch-Coolchain. We have been very pleased by the enthusiasm with which theyhave embraced the recent changes and believe that together we can build anincreasingly successful distribution business. Outlook I am more confident than ever for the continued growth of the Group. Of course,each of the separate businesses is in very competitive sectors. However, Ibelieve we have the expertise, management, staff and assets to be increasinglysuccessful in each. Current trading is in line with our budget and expectations. Philip Meeson Chairman 15 June 2006 For further information about Dart Group PLC and its subsidiary companies pleasevisit our website, www.dartgroup.co.uk REVIEW OF OPERATIONS Jet2.com During the year to 31 March, 2006, the Group increased its owned aircraft fleetto 21 Boeing 737-300 aircraft, which carry 148 passengers, and three Boeing757-200s, which carry 235 passengers. Since the year end two further Boeing757-200s have been purchased. Of the Boeing 737-300s, six are "Quick Change"versions, allowing the seats to be removed and containers of mail to be loadedwithin 40 minutes, for Royal Mail's "Postal Air Network". On 3 February 2006, the company flew its last Airbus A300 "Eurofreighter" cargoflight between Bergamo and Cologne on behalf of United Parcel Service for whomwe had been operating European air cargo services since 1988. Following noticeof the termination of this business, it was decided to dispose of our tworemaining Airbus A300s. The first Airbus A300 was sold on 18 October 2005 and a contract has now beenentered into to dispose of the second aircraft. Overall, the disposal of bothaircraft, with their associated spares is expected to exceed book value,although some costs were incurred in relation to staff redundancies. We are verypleased that many of the Airbus A300 aircrew successfully transferred to thecompany's other aircraft types. In January 2006, Jet2.com established its head office at Leeds BradfordInternational Airport. Operational staff are now progressively transferring fromthe former headquarters in Bournemouth. Currently, the majority of the company'ssenior management and about one third of other staff have indicated theirwillingness to relocate. Considerable recruitment is under way in Yorkshire witha very encouraging response. In October 2005, the company's contracted-out callcentre operation was transferred from Yorkshire to New Delhi, India, which hasproved very successful and this will be followed by the company's purchaseledger function, which is expected to expand materially as the business grows. During the financial year, Jet2.com flew 2.25 million passengers from itsnorthern bases to 26 European destinations. 16 destinations were flown fromLeeds Bradford International Airport during the summer of 2005 with additionalnew routes to Menorca, Milan Bergamo, Pisa, Rome, Dusseldorf and Lanzarote beingadded for summer 2006. 14 destinations were served from Manchester with furtherservices to Rome, Ibiza, Palma and Tenerife also being added in 2006. Belfastservices to Barcelona, Prague and Leeds Bradford have been expanded with theaddition of Murcia, Blackpool and Pisa. From Edinburgh services to Pisa havebeen added to Manchester and Murcia. Jet2.com commenced operations from Newcastle International Airport on 27 April,2006 with services announced to Amsterdam, Bergen, Murcia, Pisa, Tenerife, Corkand Menorca. Services from Blackpool International Airport were commenced on 6April, 2006 with flights to Alicante, Murcia, Palma and Belfast. New routes fromBlackpool to Malaga, Amsterdam, Faro, Prague and Tenerife have already beenannounced for 2007 when the company will have three Boeing 737-300s based atthat airport. For details of the company's route structure please visit ourwebsite at www.jet2.com. This concentration of operations gives Jet2.com real strength in the North. Theadvertising budget is, therefore, focused and very effective. Our aim is to makeJet2.com the premier airline for leisure travel to and from the North. We believe that passengers appreciate the real efforts our staff take to makethem welcome on our flights. Whilst we aim to offer the lowest fares we alsostrive to provide a friendly service. Seats are allocated at check in and everyeffort is made to ensure a pleasant experience that our customers will want torepeat. We particularly value the very high standard of training in customercare that our experienced team give to cabin staff. Our cabin staff are rewarded for on-board sales success which, in addition tothe commissions the company receives for sales of car hire, hotels, insurance,etc. via the web site, make up our ancillary revenues. The ancillary revenueteam is led by a dedicated Business Director, thereby giving the appropriateattention to this most important income stream. We will continue to grow both our fleets. We believe that the Boeing 737-300 hasexcellent economics for short distance flights, whilst the Boeing 757-200 givescompetitive seat rates for longer distances and will allow the company a wideroffering of winter sun destinations. This aircraft's economics are competitiveand its excellent performance characteristics enable operations to a widevariety of regional airports. Every weekday night, the company's six Boeing 737 "Quick Change" aircraft arereconfigured to carry post for Royal Mail. This is a vital service which enablesRoyal Mail to meet its next day delivery obligations over longer distances. Theoperation of the aircraft by day and by night obviously produces higherutilisation to the advantage of both Jet2.com and Royal Mail. Additionalutilisation of our passenger aircraft is also achieved by our successful charteroperations on behalf of other airlines, holiday companies, sporting groups andcelebrities. This is an important revenue stream which is continually beingdeveloped by our enthusiastic team. Fowler Welch-Coolchain Fowler Welch-Coolchain is one of the UK's leading temperature-controlleddistribution businesses specialising in the distribution of fresh produce andchilled foods on behalf of UK supermarkets, other multiple retailers and theirsuppliers. On 28 April, 2006 the Group acquired the business and assets of R F FieldingCheshire Limited (In Administration), a business specialising in nontemperature-controlled (ambient) distribution to major retailers, directly or onbehalf of manufacturers and suppliers and to various secondary wholesalers. Thisacquisition, through its strategically located 160,000 sq.ft. warehouse inStockport, Greater Manchester, not only gives Fowler Welch-Coolchain acompetitively based entry into this market but will also allow the company togenerate further network efficiencies by more efficient vehicle utilisation. Thenew ambient business should contribute in the order of £15m of sales in a fullyear. The company plans to use this acquisition as a platform to grow itsambient distribution business. The Group has agreed to sell its Channel Islands distribution business to athird party specialising in Channel Islands distribution. Contracts have beenexchanged but the deal is subject to Jersey regulatory approval, which is hopedto be forthcoming by the end of June 2006. The Board considered that the ChannelIslands distribution business was no longer core and that the management's focusneeded to be on growing the UK mainland distribution business. The major part of Fowler Welch-Coolchain's business remains chilled distributionof produce and prepared foods to the regional distribution centres of UKsupermarkets and international transport primarily from Holland. New businesswas won during the year from a number of the UK major supermarkets. A key area of growth during the financial year was our warehousing, storage andpicking operations in both Teynham, Kent, and Spalding, Lincolnshire. Not onlydoes this provide value added income to our warehousing operations it alsoresults in substantial increased traffic into our distribution network. InSpalding, we were pleased to gain warehousing and distribution business fromBernard Matthews and in Kent we gained important business in respect of thestorage and distribution of imported cheese and pasta. Although both theseoperations were subject to start up costs in the first half, operationalefficiencies have now been achieved and the increased costs were eliminated inthe second half. A new warehousing computer system will be implemented in 2006/07 to cater for the growth in this sector of our business. The company has a successful warehouse and distribution operation based inGateshead, Tyne and Wear. Negotiations are now taking place to acquiresubstantially larger premises, which will be particularly suited to thisoperation, giving us greater presence in the North East of England where, webelieve, there are considerable business opportunities. Until recently a considerable constraint on the UK road transport industry hasbeen the availability of suitably qualified heavy goods vehicle drivers.Following the accession of Poland and other Eastern European countries to the ECand the British Government's wise decision to admit those countries' workers tothe UK labour market, this shortage has been alleviated. Whilst their drivinglicences are accepted in the UK, Fowler Welch-Coolchain has trained mainlyPolish drivers to a higher standard. In conjunction with Lincoln University, thecompany has set up a training scheme to improve their spoken English andunderstanding of UK driving practices and our customers' needs. Overall the market place remains tough and competitive with little scope forprice increases and the need to be ever vigilant about costs remains. Ouragreements with our customers generally allow increases in fuel to be passed onto them so the company has limited exposure in this respect. We believe that asbusiness volumes grow economies of scale will enable us to increase ourcompetitiveness in the marketplace. Fowler Welch-Coolchain has had a good start to the new financial year and iswell-positioned to successfully win new business as the opportunities presentthemselves. Maximising the back haul opportunity arising from the company'srecent acquisition and managing the integration of the new business into FowlerWelch-Coolchain's existing national network is one of our key objectives for thenew year. For further information contact: Dart Group PLC Tel: 01202 597676 Philip Meeson, Mobile: 07785 258666Group Chairman and Chief ExecutiveMike Forder, Mobile: 07721 865850Group Finance Director Group Profit And Loss Account (unaudited)for the year ended 31 March 2006 Notes 2006 2006 2006 2005 2005 2005 Before Exceptional Total Before Exceptional Total exceptional items exceptional items (restated) items items (note 5) (restated) (note 5) £m £m £m £m £m £mTurnover 1Continuing operations 310.1 - 310.1 246.0 - 246.0Discontinued operations 9.5 - 9.5 22.0 - 22.0 -------- -------- -------- -------- -------- ------- 319.6 - 319.6 268.0 - 268.0 -------- -------- -------- -------- -------- ------- Net Operating Expenses Excluding goodwill amortisation (305.4) (6.2) (311.6) (254.0) (8.2) (262.2)Goodwill amortisation (0.5) - (0.5) (0.5) - (0.5) -------- -------- -------- -------- -------- -------Net Operating Expenses (305.9) (6.2) (312.1) (254.5) (8.2) (262.7) -------- -------- -------- -------- -------- ------- Operating ProfitContinuing operations 13.3 (6.2) 7.1 12.8 (8.2) 4.6Discontinued operations 0.4 - 0.4 0.7 - 0.7 -------- -------- -------- -------- -------- ------- 13.7 (6.2) 7.5 13.5 (8.2) 5.3 Profit on disposal of discontinued operations - 3.7 3.7 - - - Profit on disposal of fixed assets - 3.3 3.3 - 0.8 0.8 Net interest received/(paid) (including exchange gains) 0.5 - 0.5 (0.1) 2.4 2.3 -------- -------- -------- -------- -------- ------- Profit on ordinary activitiesbefore taxation 14.2 0.8 15.0 13.4 (5.0) 8.4Taxation (4.7) 0.9 (3.8) (4.3) 1.5 (2.8) -------- -------- -------- -------- -------- ------- Profit for the year 9.5 1.7 11.2 9.1 (3.5) 5.6 -------- -------- -------- -------- -------- ------- Earnings per share - total- basic 27.47p 32.26p 26.52p 16.32p- diluted 27.27p 32.02p 26.34p 16.21p Earnings per share- continuing operations - basic 26.68p 20.84p 24.96p 14.76p - diluted 26.49p 20.69p 24.79p 14.66p Earnings per share- discontinued operations - basic 0.78p 11.41p 1.56p 1.56p - diluted 0.78p 11.33p 1.55p 1.55p Statement of Total Recognised Gains and Losses (unaudited) 2006 2005 £m £m ---------- ---------Profit on ordinary activities after taxation 11.2 5.6Exchange gain on foreign equity investment - 0.1 ---------- --------- Total recognised gains and losses relating to the year 11.2 5.7 ---------- --------- Balance Sheet (unaudited)at 31 March 2006 Group 2006 2005 (restated) £m £m -------- --------Fixed assets Intangible assets 6.8 7.3Tangible assets 131.5 99.3 -------- -------- 138.3 106.6Current assets Stock 7.5 4.6Debtors 23.8 25.5Cash at bank and in hand 26.0 27.4 -------- -------- 57.3 57.5Current liabilities Creditors: amounts falling duewithin one year (98.3) (88.6) -------- -------- Net current liabilities (41.0) (31.1) -------- -------- Total assets less current liabilities 97.3 75.5 Creditors: amounts falling due aftermore than one year (28.0) (19.4) Provisions for liabilities and charges (10.0) (6.2) -------- -------- Net assets 59.3 49.9 -------- -------- Capital and reserves Called up share capital 1.7 1.7Share premium account 8.6 8.0Profit and loss account 49.0 40.2 -------- -------- Shareholders' funds - equity interests 2 59.3 49.9 -------- -------- Group Cash Flow Statement (unaudited)for the year ended 31 March 2006 2006 2005 Note £m £m -------- -------- Net cash inflow from operating activities 3 40.3 68.3 Returns on investment and servicing of finance (1.6) (0.1) Taxation (5.2) (1.4) Capital expenditure and financial investment (45.5) (49.1) Acquisitions and Disposals 4.0 - Equity dividends paid (2.4) (2.2) -------- -------- Cash (outflow) / inflow before financing (10.4) 15.5 Financing 7.5 (2.2) -------- -------- (Decrease) / increase in cash in the year (2.9) 13.3 -------- -------- Reconciliation of net cash flow to movement in net (debt) / cash Note 2006 2005 £m £m -------- --------(Decrease) / increase in cash in the year (2.9) 13.3Cash (inflow) / outflow from the (increase) / decreasein net debt in the year (6.2) 2.5 -------- -------- Change in net debt resulting from cash flows (9.1) 15.8Exchange differences 1.2 1.6Net debt at 1 April 2.4 (15.0) -------- -------- Net (debt) / cash at 31 March (5.5) 2.4 -------- -------- NOTES 1. Turnover Analyses of profit before taxation and net assets between the different segmentsof the Group are not given as, in the opinion of the directors, such analyseswould be seriously prejudicial to the commercial interests of the Group. 2006 2005 £m £m Distribution- continuing operations 115.7 100.1 Aviation Services - continuing operations 194.4 145.9- discontinued operations 9.5 22.0 ------- ------- 319.6 268.0 ------- -------Turnover arising :- Continuing operations Within the United Kingdom and the Channel Islands 184.8 185.2 Between the United Kingdom and Mainland Europe 125.3 60.8- Discontinued operations Within the United Kingdom and the Channel Islands 9.1 21.0 Within the Far East 0.4 1.0 ------- ------- 319.6 268.0 ------- ------- 2. Reconciliation of movements in shareholders' funds Group 2006 2005 (restated) £m £m Profit for the year 11.2 5.6Dividends paid in the year (2.4) (2.2) ------- ------- 8.8 3.4Currency translation differences - 0.1Issue of shares under share option schemes 0.6 0.3 ------- -------Net addition toshareholders' funds 9.4 3.8 Opening shareholders' funds 49.9 46.1(originally £48.3m before adding prior year adjustment of£1.6m) ------- ------- Closing shareholders' funds 59.3 49.9 ------- ------- The prior year adjustment is explained in note 6. 3. Reconciliation of operating profit to net cash flow from operating activities 2006 2005 £m £m Operating Profit 7.6 5.3Depreciation and impairment 16.6 31.2Amortisation of goodwill 0.5 0.5Profit / (Loss) on disposal of fixed assets - (0.1)(Increase) in stock (2.9) (2.4)Decrease in debtors 1.7 5.7Increase in creditors 16.8 28.1 ------- ------- Net cash inflow from operating activities 40.3 68.3 ------- ------- 4. Earnings per share The calculation of basic earnings per share is based on earnings beforeexceptional items for the year ended 31 March 2006 of £9.5m (2005 - £9.1m) andon 34,617,401 shares (2005 - 34,396,934) being the weighted average number ofshares in issue for the year. The diluted earnings per share is based on earnings before exceptional items forthe year ended 31 March 2006 of £9.5m (2005 - £9.1m) and on 34,872,011 ordinaryshares (2005 - 34,628,280) calculated as follows: 2006 2005 000's 000's Basic weighted average number of shares 34,617 34,397Dilutive potential ordinary shares:Employee share options 255 231 ------- ------- 34,872 34,628 ------- ------- 5. Exceptional Items 2006 2005 £m £mOperating itemsRe-organisation costs (2.2) -A300 closure costs (0.7) -Impairment of fixed assets (3.3) (8.2) Profit on disposal of fixed assets and investmentsGain on disposal of F27 fleet - 0.8Gain on disposal of A300 3.3 -Profit on disposal of discontinued operations 3.7 - Net interest including exchange gains - 2.4 ------- ------- Net exceptional items before taxation 0.8 (5.0) ------- ------- The reorganisation cost relates to the move of the Jet2.com operationaldepartments from Bournemouth International Airport to Leeds BradfordInternational Airport. A decision has been taken to withdraw from Airbus A300freighter operations which has resulted in redundancy and other closure costs.One of the two remaining Airbus A300 aircraft was sold prior to 31 March 2006,whilst an exchange of contracts has taken place for the sale of the last AirbusA300. 6. Accounting Policy Changes FRS 21 Events after the balance sheet date During the year the Group adopted FRS 21 Events after the balance sheet datewhich superseded SSAP 17. Under the new standard, final dividends payable arerecognised only in the period in which they are approved in the Annual GeneralMeeting and therefore become a liability and interim dividends are recognised inthe period in which they are paid, whereas under SSAP 17 dividends were accruedfor when proposed. This change in accounting policy has lead to a reduction inCreditors: amounts due within one year and an increase in net assets of £1.6million as at 31 March 2005. The profit for the year ended 31 March 2005 hasnot been affected. FRS 25 Financial instruments: Disclosure and presentation During the year the Group adopted the presentation aspects of FRS 25 FinancialInstruments: Disclosure and presentation. As a result, dividends payable areshown as a movement in reserves instead of an appropriation within the profitand loss account. This change in accounting policy has not resulted in anychange to the profit for the year ended 31 March 2005 or the balance sheet as atthat date. As the Group has not yet adopted FRS 26 Financial instruments: Measurement, ithas also not yet adopted the disclosure aspects of FRS 25. 7. The financial information set out in the announcement does not constitute theGroup's statutory accounts for the financial years ended 31 March 2006 or 2005.The financial information for the year ended 31 March 2005 is derived from thestatutory accounts for that year, which have been delivered to the Registrar ofCompanies. The statutory accounts for the year ended 31 March 2006, which willinclude restated figures for 2005, are still subject to audit by KPMG Audit Plc,but will be finalised on the basis of the financial information presented by thedirectors in this preliminary announcement, and will be delivered to theRegistrar of Companies following the Group's Annual General Meeting. 8. The proposed final dividend of 5.18p per share will, if approved, be payableon 18 August 2006 to shareholders on the Company's register at the close ofbusiness on 23 June 2006. 9. The 2006 Annual Report and Accounts (together with the Auditors Report) willbe posted to shareholders no later than 10 July 2006. The Annual General Meetingwill be held on 3 August 2006. This information is provided by RNS The company news service from the London Stock Exchange