Halma Regulatory News (HLMA)

5 Dec 2006 07:00

Halma PLC05 December 2006 HALMA p.l.c. INTERIM RESULTS FOR THE HALF YEAR TO 30 SEPTEMBER 2006 5 DECEMBER 2006 Halma, the leading safety, health and sensor technology group, today announces its interim results for the 26weeks to 30 September 2006. Highlights include: • Organic revenue growth* of 11% and organic profit growth* of 8% • Pre-tax profit** from continuing operations up by 17% to £30.6m (2005/06: £26.2m) • Revenue from continuing operations increased by 19% to £167.5m (2005/06: £140.4m) • Increased revenues and profits in all three sectors reflect the payback from Halma's increased investment in product innovation, sales and people development • High margins maintained and significant shareholder value generated as Halma delivers strong returns from its continuing businesses with ROCE* of 59.0% (2005/06: 50.6%) and ROTIC* of 13.3% (2005/06: 12.5%) • Good cash generation underpins Halma's progressive dividend policy with a recommended increase of 5% * Organic growth rates, return on capital employed (ROCE) and return on total invested capital (ROTIC) are non-GAAP performance measures used by management in measuring the returns achieved from the Group's asset base. See note 9 for details. ** Adjusted to remove the amortisation of acquired intangible assets of £1,452,000 (2005/06: £215,000). Commenting on the results, Andrew Williams, Chief Executive of Halma, said: "This half year Halma built on the organic growth momentum re-established last year. We are more active inour search for suitable acquisition opportunities in, or adjacent to, our existing markets. We continue toinvest for the long term and remain positive about our prospects for the full year." For further information, please contact: Halma p.l.c. +44 (0)1494 721111Andrew Williams, Group Chief ExecutiveKevin Thompson, Group Finance Director Hogarth Partnership Limited +44 (0)20 7357 9477Rachel Hirst/Andrew Jaques NOTES: A copy of this announcement, together with other information about Halma, may be viewed on its website:www.halma.com A copy of the Interim Report will be sent to shareholders on 5 December 2006 and will be available to thegeneral public on written request to the Company's registered office at: Misbourne Court, Rectory Way, Amersham,Bucks HP7 0DE. PHOTOGRAPHS High resolution photos of Halma senior management, including Chief Executive Andrew Williams, and imagesillustrating Halma business activities can be downloaded from its website: www.halma.com. Click on the 'News'link, then 'Image Library'. Photo queries: David Waller +44 (0)20 8205 0038, e-mail: dwaller@halmapr.com NOTE TO EDITORS Halma develops and markets products used worldwide to protect life and improve the quality of life. The Groupcomprises three business sectors: • Infrastructure Sensors We make products which detect hazards to protect people and property in public and commercial buildings. • Health and Analysis We make components and products used to improve personal and public health. We also develop technologies and products which are used for analysis in safety, environmental and leisure related markets including Water. • Industrial Safety We make products which protect property and people at work. The key characteristics of Halma's businesses are that they are based on advanced technology and offer stronggrowth potential. Many Group businesses are a clear market leader in their specialist field and, in a number ofcases, are the dominant world supplier. HALMA p.l.c. Interim Results for the 26 weeks to 30 September 2006 Financial highlights Unaudited Unaudited 26 weeks to 26 weeks to 30 September 1 October Change 2006 2005 Continuing operations Revenue + 19% £167.5 million £140.4 million Adjusted profit before taxation(1) + 17% £ 30.6 million £ 26.2 million Statutory profit before taxation + 12% £ 29.2 million £ 26.0 million Adjusted earnings per share(2) + 18% 5.73p 4.87p Statutory earnings per share + 13% 5.46p 4.83p Proposed dividend per share + 5% 2.85p 2.71p Return on sales(3) 18.3% 18.7% Return on total invested capital(4) 13.3% 12.5% Return on capital employed(4) 59.0% 50.6% The results for the 26 weeks to 1 October 2005 have been re-presented, as businesses subsequently sold are now shownwithin discontinued operations. See note 7. Pro-forma information:(1) Adjusted to remove the amortisation of acquired intangible assets of £1,452,000 (2005/06: £215,000).(2) Adjusted to remove the amortisation of acquired intangible assets. See note 4 for details.(3) Return on sales is defined as adjusted(1) profit before taxation from continuing operations expressed as a percentage of revenue from continuing operations.(4) Organic growth rates, return on capital employed (ROCE) and return on total invested capital (ROTIC) are non-GAAP performance measures used by management in measuring the returns achieved from the Group's asset base. See note 9 for details. Financial overview For the first half, revenue from continuing operations increased 19% to £167.5 million (2005/06: £140.4million) and adjusted* profit before tax from continuing operations increased 17% to £30.6 million (2005/06: £26.2 million). Statutory profit before tax increased by 12% to £29.2 million. Organic revenue growthwas 11% and organic profit growth was 8% reflecting continuing investment in product, market and peopledevelopment. Return on total invested capital** increased to 13.3% (2005/06: 12.5%). We also made two small acquisitions in the Health and Analysis sector - Mikropack and BaldwinEnvironmental. Since the half year end we have acquired Tritech to strengthen our Industrial Safetypresence in the growing energy markets. The Board proposes an interim dividend of 2.85 pence per share, an increase of 5% which will be paid on 7February 2007 to shareholders on the register at 5 January 2007. * before amortisation of acquired intangible assets of £1,452,000 (2005/06: £215,000) ** see Financial highlights Chairman's statement Geoff Unwin, Chairman of Halma, said: "We have seen good progress across the Group and it is pleasing to see the investments we have made in increasedinnovation and market development bearing fruit as illustrated by our strong organic growth. In particular, ourinvestments in management development are showing excellent returns. "Increased effort is being applied to finding acquisitions which match both our strategic focus and our strictacquisition criteria. We have significant financial capacity and increased management depth to support this effort. "The Board remains positive about the Group's prospects for the full year." Chief Executive's review Andrew Williams, Chief Executive of Halma, said: Record results "We have achieved record interim revenue and profit reflecting robust and widespread organic growth across all theGroup's business sectors and all geographic territories. "Organic revenue growth of 11% delivered organic profit growth of 8% reflecting the Group's higher investment in sales,innovation and people development through initiatives such as establishing Halma hubs in China and the Halma ExecutiveDevelopment Programme. Widespread growth "It is satisfying to report that our Infrastructure Sensors sector is now delivering profit growth as well as revenuegrowth. Our strategic decision to increase investment in sales, distribution and product development is bearing fruit.This increased investment continues, particularly in our Elevator Safety business where we are developing andimplementing a clearer strategy for collaboration across product lines and global regions. Our Automatic Door Sensorbusiness has performed well, benefiting from the launch of innovative new products and revitalised management. "Health and Analysis is making progress with a particularly good performance from Photonics where we are maintainingstrong revenue growth and seeking to further develop our business internationally. In Fluid Technology and Water, wehave increased investment in sales and product development resulting in encouraging revenue growth and flat profits. "Industrial Safety is a sector which has consistently delivered solid organic growth over many years and this periodproved no exception. Their sustained growth is testament to the continuous improvements being made in people, products,operations and customer service levels. All three businesses (Gas Detection, Safety Interlocks and Bursting Discs)benefit somewhat from the buoyant energy markets, although a majority of revenue is from other industries. Acquisition research activity increased "At a Group level, the positive impact of the M&A activity of the past 18 months on our financial performance is clear.Acquisition research activity has increased and during the first half we made two small acquisitions in the Health andAnalysis sector. Mikropack and Baldwin Environmental strengthen our technology platforms in Photonics and FluidTechnology respectively. "Following the half year end we acquired Tritech, a leader in underwater safety technology, adding to our safety productoffering to the energy and homeland security markets. Sales, innovation & people development - key growth drivers "Our drive to grow revenues internationally continues. Halma hubs in Shanghai and Beijing are fully operational withsales representatives from several Group companies already in place. Our major office, in Shanghai, was officiallyopened during the 4th Halma World Sales Conference held in October 2006 which was attended by more than 50 of our seniorsales people. "Our commitment to develop people is a critical element in our strategy for sustainable growth. The first two HalmaExecutive Development Programmes are complete and culminated in each programme spending a week in China and Indiarespectively. This is proving to be a powerful way of broadening the skills and experiences of our senior people atboth a professional and personal level. "Innovation is one of our core values. It impacts upon all aspects of our business and is particularly valuable in newproduct development. This year's Halma Annual Innovation Award was won by a new product from Radio-Tech which providesremote monitoring of railtrack temperatures to improve railway safety. The top three entries also included a new doorsafety sensor from BEA and a revolutionary colour filter system for lighting from Ocean Optics. All products arealready contributing to our revenue growth providing further evidence of the talented people and wide range oftechnologies and applications know-how we have throughout the Group. Good financial performance "Cash generation is an important focus for us. With our key performance metrics such as ROTIC* (return on totalinvested capital), ROCE* (return on capital employed) and ROS* (return on sales) remaining strong, the first six months'cash generation was also good and in line with expectations. "During the first half, there was a moderate currency headwind. This is likely to have a greater adverse effect in thesecond half. As expected, the costs of share-based payments increased as the new Performance Share Plans are rolled outand accounted for under IFRS. However, the expected impact of these factors is considered in our comments on theprospects for the year. Summary "This half year Halma built on the organic growth momentum re-established last year. We are more active in our searchfor suitable acquisition opportunities in, or adjacent to, our existing markets. We continue to invest for the longterm and remain positive about our prospects for the full year." * see Financial Highlights Interim results for the 26 weeks to 30 September 2006 Consolidated income statement £000 Unaudited Unaudited 26 weeks 30 September 2006 26 weeks to 1 October 2005 Notes Before Amortisation Total Before Amortisation Total Audited acquired acquired 52 weeks intangibles of acquired intangibles of acquired to amortisation amortisation intangibles 1 April and goodwill intangibles and goodwill 2006 written off and goodwill and goodwill written Total written written off off off Continuing operations Revenue 1 167,522 - 167,522 140,370 - 140,370 310,768 Operating profit 31,469 (1,452) 30,017 26,786 (215) 26,571 58,460 Net finance expense (842) - (842) (593) - (593) (1,820) Profit before 30,627 (1,452) 29,175 26,193 (215) 25,978 56,640 taxation Taxation 3 (9,397) 450 (8,947) (8,237) 76 (8,161) (17,034) Profit for the period 21,230 (1,002) 20,228 17,956 (139) 17,817 39,606 from continuing operations Discontinued operations Net (loss)/profit for the - - - (487) (1,323) (1,810) 1,269 period from discontinued operations Profit for the period 1 21,230 (1,002) 20,228 17,469 (1,462) 16,007 40,875 attributable to equity shareholders Earnings per ordinary 4 share From continuing operations Basic 5.73p 5.46p 4.87p 4.83p 10.73p Diluted 5.44p 4.83p 10.69p From continuing and discontinued operations Basic 5.46p 4.34p 11.08p Diluted 5.44p 4.34p 11.03p Dividends in respect 5 of the period Proposed and paid (£000) 10,611 10,006 25,216 Proposed and paid per share 2.85p 2.71p 6.83p The results for the 26 weeks to 1 October 2005 have been re-presented, as businesses subsequently sold are now shownwithin discontinued operations. See note 7. Consolidated balance sheet £000 Unaudited Unaudited Audited 30 September 1 October 1 April 2006 2005 2006 Non-current assetsGoodwill 120,606 104,689 122,038Other intangible assets 11,554 5,878 12,166Property, plant and equipment 48,854 50,368 50,054Deferred tax assets 14,550 13,757 13,803 195,564 174,692 198,061Current AssetsInventories 37,385 35,903 36,660Trade and other receivables 71,185 68,210 77,523Cash and cash equivalents 28,226 36,232 35,826 136,796 140,345 150,009Total assets 332,360 315,037 348,070Current liabilities Borrowings 30,548 34,339 32,308Trade and other payables 51,604 48,868 66,035Tax liabilities 7,762 6,856 7,316 89,914 90,063 105,659 Net current assets 46,882 50,282 44,350 Non-current liabilities Retirement benefit obligations 48,499 45,858 46,019 Trade and other payables 3,285 1,900 5,096 Deferred tax liabilities 2,720 2,405 3,216 54,504 50,163 54,331 Total liabilities 144,418 140,226 159,990 Net assets 187,942 174,811 188,080 Shareholders' equity Called up share capital 37,194 36,910 36,933 Share premium account 13,791 10,421 10,702 Treasury shares (874) - (379) Capital redemption reserve 185 185 185 Translation reserve (1,299) 3,798 5,944 Other reserves 2,289 766 1,592 Retained earnings 136,656 122,731 133,103 Total shareholders' equity 187,942 174,811 188,080 Statement of recognised income and expense £000 Unaudited Unaudited Audited 26 weeks to 26 weeks 52 weeks to 30 September to 1 October 1 April 2006 2005 2006 Exchange differences on translation of foreign operations (7,243) 3,654 5,826 Exchange differences recycled from reserves on disposal of - - (26)operations Actuarial losses on defined benefit pension schemes (2,111) (5,760) (10,355) Tax on items taken directly to equity 744 1,520 1,625 Net loss recognised directly in equity (8,610) (586) (2,930) Profit for the period 20,228 16,007 40,875 Total recognised income and expense for the period 11,618 15,421 37,945 Reconciliation of movements in shareholders' equity £000 Unaudited Unaudited Audited 26 weeks to 26 weeks 52 weeks to 30 September to 1 April 2006 1 October 2006 2005 Shareholders' equity brought forward 188,080 173,259 173,259 Profit for the period 20,228 16,007 40,875 Dividends paid (15,308) (14,462) (24,468) Exchange differences on translation of foreign operations (7,243) 3,654 5,826 Exchange differences recycled from reserves on disposal of - - (26)operations Actuarial losses on defined benefit pension schemes (2,111) (5,760) (10,355) Tax on items taken directly to equity 744 1,520 1,625 Net proceeds of shares issued 3,350 340 644 Treasury shares purchased (495) - (379) Movement in other reserves 697 253 1,079 Total movement in shareholders' equity (138) 1,552 14,821 Shareholders' equity carried forward 187,942 174,811 188,080 Consolidated cash flow statement £000 Unaudited Unaudited Audited 26 weeks to 26 weeks 52 weeks to 30 September to 1 April 2006 1 October 2006 2005 Net cash inflow from operating activities (note 8) 23,398 23,943 53,362 Cash flows from investing activities Purchase of property, plant and equipment (4,687) (5,813) (11,878) Purchase of computer software (409) (297) (717) Proceeds from sale of property, plant and equipment 1,452 387 1,032 Development costs capitalised (1,666) (1,115) (2,500) Interest received 572 642 1,026 Acquisition of businesses (10,587) (12,363) (36,178) Disposal of businesses - 396 14,641 Net cash used in investing activities (15,325) (18,163) (34,574) Financing activities Dividends paid (15,308) (14,462) (24,468) Proceeds from issue of share capital 3,350 340 644 Purchase of treasury shares (874) - - Interest paid (823) (612) (1,455) Repayment of borrowings - (240) (3,050) Net cash used in financing activities (13,655) (14,974) (28,329) Decrease in cash and cash equivalents (note 8) (5,582) (9,194) (9,541) Cash and cash equivalents brought forward 35,826 45,348 45,348 Exchange adjustments (2,018) 78 19 Cash and cash equivalents carried forward 28,226 36,232 35,826 Notes to the interim report 1 Segmental Analysis £000 Revenue Profit Sector analysis Unaudited Unaudited Unaudited Unaudited 26 weeks to 26 weeks to 26 weeks to 26 weeks 1 October 30 September 1 October to 2005 2006 2005 30 September 2006 Infrastructure Sensors 74,762 58,573 13,660 10,370 Health and Analysis 57,833 50,257 11,419 10,308 Industrial Safety 34,941 31,765 6,803 5,761 Inter-segmental sales (14) (225) - - Central companies - - (413) 347 Continuing operations 167,522 140,370 31,469 26,786 Discontinued operations - 16,434 - 581 Net finance expense - - (842) (593) Group revenue/profit before amortisation of acquired intangibles 167,522 156,804 30,627 26,774 Amortisation of acquired intangible assets - - (1,452) (237) Loss on disposal of operations before tax - - - (2,362) Taxation - - (8,947) (8,168) Revenue/profit for the period 167,522 156,804 20,228 16,007 The results for the 26 weeks to 1 October 2005 have been re-presented, as businesses subsequently sold are now shown within discontinued operations. See note 7. Geographical analysis £000 By destination By origin Unaudited Unaudited Unaudited Unaudited 26 weeks to 26 weeks to 26 weeks to 26 weeks 1 October 30 September 1 October to 2005 2006 2005 30 September 2006 Revenue United Kingdom 45,024 37,361 93,591 77,184 United States of America 48,755 43,572 53,604 47,576 Mainland Europe 41,689 34,752 25,669 20,572 Asia Pacific and Australasia 17,000 15,460 9,348 7,772 Africa, Near and Middle East 9,892 5,365 - - Other countries 5,162 3,860 - - Inter-segmental sales - - (14,690) (12,734) Revenue from continuing operations 167,522 140,370 167,522 140,370 Discontinued operations - 16,434 - 16,434 Group revenue 167,522 156,804 167,522 156,804 Profit before taxation United Kingdom 15,116 13,359 United States of America 10,509 9,212 Mainland Europe 4,715 3,148 Asia Pacific and Australasia 1,129 1,067 Profit from continuing operations 31,469 26,786 Discontinued operations - 581 Net finance expense (842) (593) Group profit before amortisation of acquired 30,627 26,774 intangibles Amortisation of acquired intangible assets (1,452) (237) Loss on disposal of operations before tax - (2,362) Taxation (8,947) (8,168) Profit for the period 20,228 16,007 The results for the 26 weeks to 1 October 2005 have been re-presented, as businesses subsequently sold are now shown within discontinued operations. See note 7. 2 Basis of Preparation The interim report is unaudited and was approved by the Directors on 5 December 2006. The report has been prepared applying the accounting policies and presentation that were applied in the preparation of the Group's statutory accounts for the 52 weeks to 1 April 2006. The figures shown for the 52 weeks to 1 April 2006 are based on the Group's statutory accounts for that period and do not constitute the Group's statutory accounts for that period as defined in Section 240 of the Companies Act 1985. These statutory accounts, which were prepared under International Financial Reporting Standards, received an unqualified audit report and have been filed with the Registrar of Companies. 3 Taxation The total Group tax charge for the 26 weeks to 30 September 2006 of £8,947,000 (2005/06: £8,168,000) comprises a tax charge on profit from continuing operations of £8,947,000 (2005/06: £8,161,000) and a tax charge of £nil (2005/06: £7,000) in relation to discontinued operations. The tax charge for the 26 weeks to 30 September 2006 comprises a current tax charge of £9,194,000 (2005/06: £8,066,000) and a deferred tax credit of £247,000 (2005/06: £102,000 charge). The tax charge is based on the estimated effective tax rate for the year. The tax charge includes £5,159,000 (2005/06: £4,481,000) in respect of overseas tax. 4 Earnings per ordinary share Earnings per ordinary share are calculated using the weighted average of 370,287,369 (2005/06: 368,917,910) shares in issue during the period (net of shares purchased by Halma p.l.c. and held as treasury shares). Diluted earnings per ordinary share are calculated using 372,168,717 (2005/06: 369,212,399) shares which includes dilutive potential ordinary shares of 1,881,348 (2005/06: 294,489). The Company's dilutive potential ordinary shares are calculated from those exercisable share options where the exercise price is less than the average price of the Company's ordinary shares during the period. Earnings from continuing operations per ordinary share before the amortisation of acquired intangible assets represents a more consistent measure of underlying performance. A reconciliation of earnings and the effect on per share figures is presented below: Per ordinary share Unaudited Unaudited Unaudited Unaudited 26 weeks to 26 weeks to 26 weeks to 26 weeks 1 October 30 September to 2005 2006 1 October 30 £000 pence 2005 September pence 2006 £000 Earnings from continuing and discontinued 20,228 16,007 5.46 4.34 operations Remove loss from discontinued operations - 1,810 - 0.49 Earnings from continuing operations 20,228 17,817 5.46 4.83 Add back amortisation of acquired intangibles 1,002 139 0.27 0.04 after taxation Adjusted earnings 21,230 17,956 5.73 4.87 5 Ordinary dividends Per ordinary share Unaudited Unaudited Unaudited Unaudited 26 weeks to 26 weeks to 26 weeks to 26 weeks 1 October 30 September 1 October to 2005 2006 2005 30 pence £000 £000 September 2006 pence Amounts recognised as distributions to shareholders in the period Final dividend for the year to 1 April 2006 (2 4.12 3.92 15,308 14,462 April 2005) Dividends declared in respect of the period Interim dividend for the year to 31 March 2007 (1 2.85 2.71 10,611 10,006 April 2006) 6 Acquisitions In April 2006 the Group acquired Mikropack GmbH Aufbautechnik in der Sensorik (Mikropack) for an initial cash consideration of €2,250,000 plus additional consideration of up to €2,250,000 based on earnings for the two-year period ending 31 March 2007. In September 2006 the Group acquired assets associated with conditioning equipment for industrial emissions monitoring and process control applications from Baldwin Environmental Inc. for an initial consideration of $1,100,000. Additional consideration of up to $700,000 may be paid dependent upon net revenue growth for the period to March 2009. 7 Discontinued operations The results from discontinued operations relate to operations sold during the 52 weeks to 1 April 2006. The results for the 26 weeks to 1 October 2005 have been re-presented. The results of operations previously included within continuing operations that were subsequently sold during the period to 1 April 2006 have been removed from continuing operations and are now shown within discontinued operations. The effect on the results for the 26 weeks to 1 October 2005 has been to reclassify sales of £12,066,000, operating profit of £387,000 and tax charge of £122,000 from continuing operations to discontinued operations. The effect on revenue by sector is as follows: £000 Unaudited 26 weeks to 1 October 2005 As previously As presented Reclassifications re-presented Revenue Infrastructure Sensors 58,573 - 58,573 Health and Analysis 51,307 (1,050) 50,257 Industrial Safety 42,864 (11,099) 31,765 Inter-segmental sales (308) 83 (225) Revenue from continuing operations 152,436 (12,066) 140,370 Discontinued operations 4,368 12,066 16,434 Group revenue 156,804 - 156,804 8 Notes to the consolidated cash flow statement £000 Unaudited Unaudited Audited 26 weeks to 26 weeks to 52 weeks to 30 September 1 October 2006 2005 1 April 2006 Reconciliation of operating profit to net cash inflow from operating activities Profit from continuing operations before taxation 30,017 26,571 58,460 Profit from discontinued operations before - 559 1,472 taxation Depreciation and amortisation of computer software 4,026 4,089 8,373 Amortisation of capitalised development costs 857 741 1,441 Amortisation of acquired intangible assets 1,452 237 1,529 Share-based payment expense in excess of amounts 655 271 742 paid Additional payments to pension scheme (1,833) (186) (1,357) (Profit)/loss on sale of property, plant and equipment and (295) 89 174 computer software Operating cash flows before movement in working 34,879 32,371 70,834 capital (Increase)/decrease in inventories (1,469) 7 647 Decrease/(increase) in receivables 4,379 2,132 (6,225) (Decrease)/increase in payables (6,153) (3,950) 4,921 Cash generated from operations 31,636 30,560 70,177 Taxation paid (8,238) (6,617) (16,815) Net cash inflow from operating activities 23,398 23,943 53,362 Reconciliation of net cash flow to movement in net cash Decrease in cash and cash equivalents (5,582) (9,194) (9,541) Repayment of borrowings - 240 3,050 Exchange adjustments (258) (1,157) (1,995) (5,840) (10,111) (8,486) Net cash brought forward 3,518 12,004 12,004 Net (debt)/cash carried forward (2,322) 1,893 3,518 9 Non-GAAP measures Organic growth Organic growth measures the change in revenue and profit from continuing Group operations. The effect of acquisitions made during the current or prior financial period has been equalised by subtracting from the current period results a pro-rated contribution based on their revenue and profit at the date of acquisition. £000 Return on capital employed Unaudited Unaudited 26 weeks to 26 weeks to 30 September 2006 1 October 2005 Operating profit from continuing operations before amortisation 31,469 26,786 of acquired intangibles Operating profit from discontinued operations - 581 before amortisation of acquired intangibles Operating return 31,469 27,367 Computer software costs within intangible assets 1,343 1,350 Capitalised development costs within intangible 4,592 2,817 assets Property, plant and equipment 48,854 50,368 Inventories 37,385 35,903 Trade and other receivables 71,185 68,210 Trade and other payables (51,604) (48,868) Tax liabilities (7,762) (6,856) Non-current trade and other payables (3,285) (1,900) Add back retirement benefit accruals included 3,803 1,122 within payables Add back deferred purchase consideration 2,237 5,968 Capital employed 106,748 108,114 Return on capital employed (annualised) 59.0% 50.6% Return on total invested capital Profit from continuing operations before 21,230 17,956 amortisation of acquired intangibles after taxation Profit from discontinued operations before - 398 amortisation of acquired intangibles after taxation Return 21,230 18,354 Total shareholders' equity 187,942 174,811 Add back retirement benefit accruals included 3,803 1,122 within payables Add back retirement benefit obligations 48,499 45,858 Less associated deferred tax assets (14,550) (13,757) Cumulative amortisation of acquired intangible 3,342 598 assets Goodwill on disposals 5,441 1,308 Goodwill amortised prior to 3 April 2004 13,177 13,177 Goodwill taken to reserves prior to 28 March 1998 70,931 70,931 Total invested capital 318,585 294,048 Return on total invested capital (annualised) 13.3% 12.5% Cautionary note This Interim Results Announcement contains certain forward-looking statements which have been made by the Directors in good faith using information available up until the date they approved the Announcement. Forward-looking statements should be regarded with caution as by their nature such statements involve risk and uncertainties relating to events andcircumstances that may occur in the future. Actual results may differ from those expressed in such statements, depending on the outcome of these uncertain future events. This information is provided by RNS The company news service from the London Stock Exchange