Hunting Regulatory News (HTG)

31 Aug 2006 07:02

Hunting PLC31 August 2006 31 August 2006 HUNTING PLC Interim results For the six months to 30 June 2006 Hunting PLC ("Hunting", the "Group" or the "Company"), the international energyservices company, today announces its interim results for the six months to 30June 2006. • Revenue of £885.8m (2005: £668.2m) +33%• Profit from operations of £38.5m (2005: £22.4m) +72%• Pre-tax profit of £35.3m (2005: £19.1m) +85%• Basic earnings per share of 16.6p (2005: 10.9p) +52%• Ordinary dividend per share of 2.3p (2005: 2.0p) +15% Commenting on the outlook for the Group, Dennis Proctor, Hunting's ChiefExecutive, said: "We are delighted to report a strong set of results for the first half and theimprovement should continue for the remainder of the year. Our strategy, globalposition, proprietary products and improved capacities will enable us to benefitfrom the supply and demand, as well as the geopolitical dynamics of the oil andgas industry." For further information, please contact: Hunting PLC 020 7321 0123Dennis Proctor, Chief ExecutiveDennis Clark, Finance Director Hogarth Partnership Limited 020 7357 9477Andrew JaquesAnthony Arthur Notes to Editors: Hunting PLC is an international oil services company providing support solutionsto the world's largest oil and gas companies. Interim Report Hunting PLC ("Hunting"), the international energy services company, announcesits interim results for the six months to 30 June 2006. INTRODUCTION As highlighted in the trading update issued on 21 June 2006 these interimresults reflect a robust oil and gas market driven by increased drillingactivity from high commodity prices, Canadian oil sands investment, globaldemand and reserve replacement. Furthermore, prior period capital expendituresfor additional capacity and machine tool productivity enhanced the currentearnings. Labour constraints remain, but price increases have offset the highercost of staff and materials. Order books continue to improve as operators placeorders well into 2007. RESULTS SUMMARY Revenue for the six months to 30 June 2006 increased from £668.2m to £885.8m.Profit from operations increased by 72% to £38.5m (2005 - £22.4m). Profit beforetax increased 85% to £35.3m (2005 - £19.1m). Basic earnings per share of 16.6pwere 52% higher (2005 - 10.9p). An interim dividend of 2.3p per share (2005 -2.0p) will be paid on 22 November 2006 to shareholders on the register at theclose of business on 3 November 2006. OPERATIONAL REVIEW The revenue and operating results of each division are included in the financialanalysis in note 2. Gibson Energy Gibson Energy, based in Alberta, Canada and one of Canada's premier mid-streamenergy service companies providing marketing services, truck transportation,processing and distribution achieved an excellent result with profit fromoperations for the six months increasing by 74% from £12.7m to £22.1m. TheCanadian oil and gas industry continues to attract further investment due toexpanded activities in the tar sands as well as conventional exploration andproduction. Accordingly, larger volumes are available for truck transport,pipelines and terminals. In addition, the Moose Jaw assets have seen asignificant turnaround as asphalt prices have improved year on year and thegrowing segments of tops and wellsite fluids are now 50% of the refinery'soutput. The differentials between heavy/sour and light crude oil pricing, aswell as diluent, have enabled Gibson to utilise the synergies of its terminals,pipelines and storage assets. With an additional 310,000 barrels of crudestorage commissioned in January 2006, the company is well positioned tocapitalise on growing volumes from the tar sands. Marketing achieved an excellent result for the period due to continuedvolatility in the oil price markets and its quality management of the 20-pluscrude streams produced in Alberta. In addition, it has expertly managed itsinventories through volatile price swings. However, profit from operations didnot match the record result in the corresponding period in 2005 and were lowerby 11% at £7.8m (2005 - £8.8m). Truck Transportation had exceptional improvement year on year due to highervolumes of heavy crude oil hauling and extended contract negotiations. Profitfrom operations increased by 128% to £4.1m (2005 - £1.8m). Terminals and Pipelines have continued to see increased overall activity in theregion. Profit from operations were down 8% to £2.2m (2005 - £2.4m). Canwest Propane and Natural Gas Liquids ("NGL") benefited from a furtheracquisition and saw an increase of 20% in profit from operations to £1.8m (2005- £1.5m). Plans include expansion into the Northern U.S. Moose Jaw Asphalt's results from operations significantly improved from a lossof £1.8m to a profit of £6.2m in the current period. Gibson Energy is strategically positioned with its geographic assets andadditional capacities to experience further growth in an area which the heavyoil production is expected to triple in the next seven years. The performance ofits marketing division will continue to remain dependent upon crudedifferentials and blending opportunities throughout the period. Hunting Energy Services Hunting Energy Services, with its global footprint, is a supplier of productsand services to the upstream oil and gas companies. Profit from operations inthe first half increased 75% from £9.2m to £16.1m. The U.S. rig count at the end of the first half was at a 20 year high of 1,665and the international rig count at a 15 year high of 906. Activity in Canadaremained strong during the period concluding with 408 rigs. Hunting EnergyServices' well construction and well completion products and services have acontinued strong demand due to higher consumption per rig as a result ofincreased drilling efficiencies on top of improvement in rig numbers. The nearand long term demand forecasts by independent agencies for oil, natural gas andelectricity predict sustained demand growth. Several drilling contractors and E&P companies have indicated commitments to refurbish or build new rigs to be inservice over the next 18 to 24 months. These are both land and offshore units,U.S. and international. Well completions are also deeper year on year in morecomplex proprietary and higher cost products. While costs have risen for oil andgas exploration companies, so too have their capital expenditure budgets toreplace dwindling reserves and to locate new reservoirs of hydrocarbons. Well Completion - Profit from operations increased 140% to £10.3m (2005 -£4.3m). Well Construction - Profit from operations increased 54% to £4.0m (2005 -£2.6m). Exploration and Production - There were 10 out of 13 wells successfullycompleted during the period. Due to the effects of Hurricane Katrina, fullproduction capacity is not expected until the second half of 2006. Profit fromoperations was £1.8m (2005 - £2.3m). New facilities, which were completed in January for Singapore, combined with newoffices in Russia and the Middle East, plus production capacity added in theGulf coast will provide the continuing growth potential for Hunting EnergyServices for the remainder of the year. Others Other operating divisions, including Gibson Shipbrokers and Hunting EnergyFrance experienced a decline in profit from operations from £0.5m in 2005 to£0.3m in the current period. Key Financial Points • EBITDA £51.5m (2005 - £32.9m) • Capital expenditure for the six month period to 30 June 2006 was £25.8m (2005 - £16.6m) • Depreciation and amortisation £12.5m (2005 - £10.5m) • Net debt £109.6m (2005 - £137.8m) • Gearing 55% (2005 - 108%) • Total assets £725.3m (2005 - £580.1m) • Total equity £197.5m (2005 - £127.8m) OUTLOOK We are delighted to report a strong set of results for the first half and theimprovement should continue for the remainder of the year. For Hunting EnergyServices, manufacturing schedules and tubular deliveries are in place with knownmargins. Rig activity is forecast to grow and operators are committed to theircapital expenditure plans. Gibson Energy also has a measured view of confidencetowards its year end results. The marketing division, however, will remaindependent upon light and heavy crude price differentials as well as diluentprices and availability. Our strategy, global position, proprietary products andimproved capacities will enable us to benefit from the supply and demand, aswell as the geopolitical dynamics of the oil and gas industry. Richard Hunting Dennis ProctorChairman Chief Executive31 August 2006 Consolidated Income Statement(Unaudited) Six months Six months ended ended Year ended 30 June 30 June 31 December 2006 2005 2005 Notes £m £m £mRevenue 2 885.8 668.2 1,521.9Cost of sales (801.9) (609.5) (1,394.2) ------- ------- -------Gross profit 83.9 58.7 127.7Other operating income 1.6 1.1 3.9Operating expenses (47.0) (37.4) (86.7) ------- ------- -------Profit from operations 2 38.5 22.4 44.9Interest income 3.4 4.1 7.6Interest expense and similar charges (7.1) (7.4) (12.2)Share of post-tax profits in associates 0.5 - 0.6 ------- ------- -------Profit before tax 35.3 19.1 40.9Taxation 3 (12.4) (6.7) (14.7) ------- ------- -------Profit for the period 22.9 12.4 26.2 ======= ======= ======= Attributable to:Shareholders of the parent 21.3 11.8 24.4Minority interests 1.6 0.6 1.8 ------- ------- ------- 22.9 12.4 26.2 ======= ======= ======= Basic earnings per 25p ordinary 4 16.6p 10.9p 21.2pshare Diluted earnings per 25p 4 15.7p 10.4p 20.2pordinary share Dividend declared per share - 5 2.3p 2.0p 2.0pinterim Dividend declared per share - 5 - - 4.0pfinal The above results relate to continuing operations. Consolidated Balance Sheet(Unaudited) At At At 30 June 30 June 31 December 2006 2005 2005ASSETS £m £m £mNon-current assetsProperty, plant and equipment 195.2 167.4 190.8Goodwill 56.8 50.7 58.6Other intangible assets 5.1 3.1 5.1Interests in associates 6.0 4.9 5.5Available for sale investments 0.2 0.2 0.2Retirement benefit assets 28.6 27.8 21.1Trade and other receivables 2.6 3.7 2.9Deferred tax assets 11.5 14.2 14.8 ------- ------- ------- 306.0 272.0 299.0 ------- ------- -------Current assetsInventories 121.3 94.5 107.6Trade and other receivables 183.8 141.4 196.2Investments 0.6 1.2 -Cash and cash equivalents 113.6 71.0 91.9 ------- ------- ------- 419.3 308.1 395.7 ------- ------- ------- LIABILITIESCurrent liabilitiesTrade and other payables 198.7 151.2 217.1Current tax liabilities 9.1 6.5 4.7Borrowings 131.2 89.6 93.2Provisions 1.9 0.6 2.0 ------- ------- ------- 340.9 247.9 317.0 ------- ------- -------Net current assets 78.4 60.2 78.7 ------- ------- -------Non-current liabilitiesBorrowings 92.6 120.4 95.7Deferred tax liabilities 70.8 65.6 74.9Retirement benefit obligations 3.1 1.9 2.9Other payables 4.5 2.7 4.5Provisions 15.9 13.8 16.1 ------- ------- ------- 186.9 204.4 194.1 ------- ------- -------Net assets 197.5 127.8 183.6 ======= ======= =======Shareholders' equityShare capital 32.5 25.4 32.2Share premium 84.7 42.3 82.7Treasury shares (3.8) - (4.6)Other reserves 14.4 10.5 21.7Retained earnings 63.0 45.3 46.4 ------- ------- ------- 190.8 123.5 178.4Minority interests 6.7 4.3 5.2 ------- ------- -------Total equity 197.5 127.8 183.6 ======= ======= ======= Consolidated Statement of Recognised Income and Expense(Unaudited) Six months Six months ended ended Year ended 30 June 30 June 31 December 2006 2005 2005 £m £m £m Profit for the period 22.9 12.4 26.2 ------- ------- -------Exchange adjustments (5.9) 3.6 11.1Net losses on cash flow hedges (0.2) (0.1) (0.3)Actuarial gains (losses) on definedbenefit pension schemes 1.3 3.0 (5.5)Taxation (0.4) (0.9) 1.4Transferred to income statement ondisposal of available for sale investments - (0.3) (0.2) ------- ------- -------Net (expense) income recognised directlyin equity (5.2) 5.3 6.5 ------- ------- -------Total recognised income and expense forthe period 17.7 17.7 32.7 ======= ======= =======Attributable to:Shareholders of the parent 16.2 17.1 30.9Minority interests 1.5 0.6 1.8 ------- ------- ------- 17.7 17.7 32.7 ======= ======= ======= Consolidated Cash Flow Statement(Unaudited) Six months Six months ended ended Year ended 30 June 30 June 31 December 2006 2005 2005 £m £m £mOperating activitiesProfit from operations 38.5 22.4 44.9Depreciation, amortisation and impairment 12.5 10.5 23.9Profit on disposal of investments - (0.4) (0.4)Profit on disposal of property, plant andequipment (0.4) (0.3) (0.6)Increase in inventories (16.9) (14.8) (22.6)Decrease (increase) in receivables 8.1 5.4 (34.1)(Decrease) increase in payables (13.2) (0.8) 46.4Taxation paid (7.2) (1.7) (4.8)UK pension scheme contribution (5.6) - -Other non cash flow items 0.7 0.3 2.1 ------- -------- -------Net cash inflow from operating activities 16.5 20.6 54.8 ------- -------- -------Investing activitiesDividends received from associates - 3.8 3.8Purchase of subsidiaries and businesses (0.9) (1.2) (9.7)Cash acquired with subsidiaries - 0.5 1.5Loans from and purchase of associates 3.3 (5.3) (5.3)Proceeds from disposal of investments - 3.3 3.2Proceeds from disposal of property, plantand equipment 0.5 1.6 2.9Purchase of property, plant and equipment (25.8) (16.6) (32.9)Purchase of intangible assets (0.4) (0.2) (0.2) ------- -------- -------Net cash outflow from investingactivities (23.3) (14.1) (36.7) ------- -------- -------Financing activitiesInterest received 2.7 1.8 7.7Interest paid (7.5) (5.9) (11.7)Equity dividends paid (5.2) (3.0) (5.6)Minority interest dividend paid - - (0.3)Share capital issued 2.3 0.9 48.1Purchase of Treasury shares (4.3) - (4.6)Disposal of Treasury shares 1.0 - -Increase in deposits maturing after 3months (0.6) (1.2) -Proceeds from new borrowings 23.7 - -Repayment of borrowings (1.2) (10.6) (58.3)Capital element of finance leases (0.3) (0.2) (0.2) ------- -------- -------Net cash inflow (outflow) from financingactivities 10.6 (18.2) (24.9) ------- -------- -------Net increase (decrease) in cash and cashequivalents 3.8 (11.7) (6.8) Cash and cash equivalents at beginning ofperiod 4.5 10.9 10.9Effect of foreign exchange rate changes (0.3) 0.3 0.7Adoption of IAS 32 and IAS 39 - (0.3) (0.3) ------- ------- -------Cash and cash equivalents at end ofperiod 8.0 (0.8) 4.5 ======= ======= =======Cash and cash equivalents at end ofperiod comprise:Cash and cash equivalents 113.6 71.0 91.9Bank overdrafts included in borrowings (105.6) (71.8) (87.4) ------- ------- ------- 8.0 (0.8) 4.5 ======= ======= ======= Notes to the Interim Report 1. BASIS OF ACCOUNTING The financial information contained in the interim report complies with IAS 34Interim Financial Reporting and with the Listing Rules of the Financial ServicesAuthority. It has been prepared on the basis of the accounting policies set outin the Group's 2005 Annual Report and Accounts, with the exception that IFRS 6Exploration for and Evaluation of Mineral Resources has been adopted from 1January 2006. Although the adoption represents a change in accounting policy,comparative figures for 2005 have not been restated as adoption results inadditional disclosures and does not impact the results or financial position.The Company has considered the amendments to IAS 21, IAS 39 and IFRS 4 and theissue of IFRIC 4, IFRIC 5 and IFRIC 6 and has determined that these do notimpact the Group's results or financial position. The interim report does not constitute statutory accounts as defined in section240 of the Companies Act 1985. A copy of the statutory accounts for the yearended 31 December 2005 has been delivered to the Registrar of Companies. Theauditors' report on those accounts was unqualified. 2. SEGMENTAL REPORTING Business Segments Results from operations Six months ended 30 June 2006 Inter- Total gross segmental Total Profit from revenue revenue revenue operations £m £m £m £m Gibson Energy Marketing 632.0 (70.2) 561.8 7.8 Truck Transportation 54.9 (4.4) 50.5 4.1 Terminals and Pipelines 9.3 (2.0) 7.3 2.2 Canwest Propane and Natural Gas Liquids 67.0 (35.0) 32.0 1.8 Moose Jaw Asphalt 73.0 (30.1) 42.9 6.2 ------- ------- ------- ------- 836.2 (141.7) 694.5 22.1 ------- ------- ------- ------- Hunting Energy Services Well Completion 100.4 (9.9) 90.5 10.3 Well Construction 40.1 (2.8) 37.3 4.0 Exploration and Production 5.1 - 5.1 1.8 ------- ------- ------- ------- 145.6 (12.7) 132.9 16.1 ------- ------- ------- ------- Other operating divisions 58.4 - 58.4 0.3 ------- ------- ------- ------- Total 1,040.2 (154.4) 885.8 38.5 ======= ======= ======= ======= Notes to the Interim Report (continued) 2. SEGMENTAL REPORTING (continued) Six months ended 30 June 2005 Inter- Total gross segmental Total Profit from revenue revenue revenue operations £m £m £m £m Gibson Energy Marketing 485.0 (42.5) 442.5 8.8 Truck Transportation 35.7 (3.0) 32.7 1.8 Terminals and Pipelines 7.9 (1.8) 6.1 2.4 Canwest Propane and Natural Gas Liquids 48.9 (24.1) 24.8 1.5 Moose Jaw Asphalt 34.4 (11.9) 22.5 (1.8) ------- ------- ------- ------- 611.9 (83.3) 528.6 12.7 ------- ------- ------- ------- Hunting Energy Services Well Completion 63.2 (5.3) 57.9 4.3 Well Construction 30.4 (1.5) 28.9 2.6 Exploration and Production 6.0 - 6.0 2.3 ------- ------- ------- ------- 99.6 (6.8) 92.8 9.2 ------- ------- ------- ------- Other operating divisions 46.8 - 46.8 0.5 ------- ------- ------- ------- Total 758.3 (90.1) 668.2 22.4 ======= ======= ======= ======= Year ended 31 December 2005 Inter- Total gross segmental Total Profit from revenue revenue revenue operations £m £m £m £m Gibson Energy Marketing 1,136.8 (120.1) 1,016.7 10.7 Truck Transportation 83.0 (7.9) 75.1 4.9 Terminals and Pipelines 17.9 (3.8) 14.1 5.7 Canwest Propane and Natural Gas Liquids 109.5 (60.3) 49.2 3.0 Moose Jaw Asphalt 109.6 (50.3) 59.3 (2.5) ------- ------- ------- ------- 1,456.8 (242.4) 1,214.4 21.8 ------- ------- ------- ------- Hunting Energy Services Well Completion 151.7 (14.5) 137.2 12.2 Well Construction 68.8 (3.7) 65.1 6.7 Exploration and Production 12.3 - 12.3 5.3 ------- ------- ------- ------- 232.8 (18.2) 214.6 24.2 ------- ------- ------- ------- Other operating divisions 92.9 - 92.9 1.5 ------- ------- ------- ------- Total 1,782.5 (260.6) 1,521.9 47.5 ======= ======= ======= Exceptional charges not apportioned to business segments (2.6) ------- Profit from operations 44.9 ======= Operating expenses included an exceptional charge of £2.6m for onerous leases in the second half of the year ended 31 December 2005. Notes to the Interim Report (continued) 3. TAXATION The taxation charge for the six months ended 30 June 2006 is calculated byapplying the best estimate of the 2006 annual effective rate of tax to theprofit for the period. The tax expense comprises the following: Six months Six months ended ended Year ended 30 June 30 June 31 December 2006 2005 2005 £m £m £mUK 2.0 1.3 2.3Overseas 10.4 5.4 12.4 ------- ------- ------- 12.4 6.7 14.7 ======= ======= ======= 4. EARNINGS PER SHARE Basic earnings per share is calculated by dividing the earnings attributable toOrdinary shareholders by the weighted average number of Ordinary sharesoutstanding during the period. For diluted earnings per share, the weighted average number of outstandingOrdinary shares is adjusted to assume conversion of all dilutive potentialOrdinary shares. The dilutive potential Ordinary shares are those options wherethe exercise price is less than the average market price of the Company'sOrdinary shares during the period. These have not impacted on the basic earningsattributable to Ordinary shareholders. Reconciliations of the earnings and weighted average number of Ordinary sharesused in the calculations are set out below: Six months Six months ended ended Year ended 30 June 30 June 31 December 2006 2005 2005 £m £m £mBasic and diluted earnings attributableto Ordinary shareholders 21.3 11.8 24.4 ======= ======= ======= Six months Six months ended ended Year ended 30 June 30 June 31 December 2006 2005 2005 millions millions millionsBasic weighted average number ofOrdinary shares 128.4 107.9 115.3Dilutive outstanding share options 6.6 4.2 5.7Long term incentive plans 0.4 0.9 0.3 ------- ------- -------Adjusted weighted average number ofOrdinary shares 135.4 113.0 121.3 ======= ======= ======= pence pence penceBasic EPS 16.6 10.9 21.2 ======= ======= =======Diluted EPS 15.7 10.4 20.2 ======= ======= ======= Notes to the Interim Report (continued) 5. DIVIDENDS Six months Six months ended ended Year ended 30 June 30 June 31 December 2006 2005 2005 £m £m £mOrdinary dividends:2005 final - 4.0p 5.2 - -2005 interim - 2.0p - - 2.62004 final - 3.0p - 3.0 3.0 ------- ------- ------- 5.2 3.0 5.6 ======= ======= ======= A 2006 interim dividend of 2.3p per share, which will absorb an estimated £3.0m,was approved by the Board for payment on22 November 2006. 6. CHANGES IN NET DEBT At Fair value At 1 January and similar Exchange 30 June 2006 Cash flow movements movements 2006 £m £m £m £m £mCash and cash 91.9 23.2 - (1.5) 113.6equivalentsBank overdrafts (87.4) (19.4) - 1.2 (105.6) ------- ------- ------- ------- ------- 4.5 3.8 - (0.3) 8.0Current borrowings (5.2) (20.0) - 0.1 (25.1)Non-current (95.1) (2.5) 1.1 4.2 (92.3)borrowingsFinance leases (1.2) 0.3 - 0.1 (0.8)Investments - 0.6 - - 0.6 ------- ------- ------- ------- -------Total net debt (97.0) (17.8) 1.1 4.1 (109.6) ======= ======= ======= ======= ======= Notes to the Interim Report (continued) 7. STATEMENT OF CHANGES IN EQUITY Six months Attributable to equity holders of the Parent Minority Totalended 30 --------------------------June 2006 Share Share Treasury Other Retained interests equity capital premium shares reserves earnings Total £m £m £m £m £m £m £m £mAt 1 January2006 32.2 82.7 (4.6) 21.7 46.4 178.4 5.2 183.6 ------ ------ ------ ------ ------ ------ ------ ------Depreciationtransfer forland andbuildings - - - (0.5) 0.5 - - -Exchangeadjustments - - - (5.8) - (5.8) (0.1) (5.9)Actuarialgains ondefinedbenefitpensionschemes - - - - 1.3 1.3 - 1.3Net lossesoncash flow hedges - - - (0.2) - (0.2) - (0.2)Tax on itemstakendirectly to equity - - - 0.2 (0.6) (0.4) - (0.4) ------ ------ ------ ------ ------ ------ ------ ------Net expenserecogniseddirectly inequity - - - (6.3) 1.2 (5.1) (0.1) (5.2)Profit forthe period - - - - 21.3 21.3 1.6 22.9 ------ ------ ------ ------ ------ ------ ------ ------Total netincome forthe period - - - (6.3) 22.5 16.2 1.5 17.7 ------ ------ ------ ------ ------ ------ ------ ------ Dividends - - - - (5.2) (5.2) - (5.2)Sharesissued- share optionschemes 0.3 2.0 - - - 2.3 - 2.3Purchase ofTreasuryshares - - (4.3) - - (4.3) - (4.3)Disposal ofTreasuryshares - - 5.1 - - 5.1 - 5.1Transferbetweenreserves - - - (1.5) 1.5 - - -Shareoptions- value ofemployeeservices - - - 0.7 - 0.7 - 0.7- discharge - - - (0.2) (2.2) (2.4) - (2.4) ------ ------ ------ ------ ------ ------ ------ ------At 30 June2006 32.5 84.7 (3.8) 14.4 63.0 190.8 6.7 197.5 ====== ====== ====== ====== ====== ====== ====== ====== Notes to the Interim Report (continued) 7. STATEMENT OF CHANGES IN EQUITY (continued) Six months Attributable to equity holders of the Parent Minority Total ended 30 June -------------------------- 2005 Share Share Treasury Other Retained interests equity capital premium shares reserves earnings Total £m £m £m £m £m £m £m £m At 1 January 2005 25.3 41.5 - 7.2 34.2 108.2 3.7 111.9 Adoption of IAS 32 and IAS 39 - - - 0.5 (0.5) - - - ------ ------ ------ ------ ------ ------ ------ ------ At 1 January 2005 as adjusted 25.3 41.5 - 7.7 33.7 108.2 3.7 111.9 ------ ------ ------ ------ ------ ------ ------ ------ Depreciation transfer for land and buildings - - - (0.7) 0.7 - - - Exchange adjustments - - - 3.6 - 3.6 - 3.6 Actuarial gains on defined benefit pension schemes - - - - 3.0 3.0 - 3.0 Net losses on cash flow hedges - - - (0.1) - (0.1) - (0.1) Transfer to income statement on disposal - - - (0.3) - (0.3) - (0.3) Tax on items taken directly to equity - - - - (0.9) (0.9) - (0.9) ------ ------ ------ ------ ------ ------ ------ ------ Net income recognised directly in equity - - - 2.5 2.8 5.3 - 5.3 Profit for the period - - - - 11.8 11.8 0.6 12.4 ------ ------ ------ ------ ------ ------ ------ ------ Total income for the period - - - 2.5 14.6 17.1 0.6 17.7 ------ ------ ------ ------ ------ ------ ------ ------ Dividends - - - - (3.0) (3.0) - (3.0) Shares issued - share option schemes 0.1 0.8 - - - 0.9 - 0.9 Share options - value of employee services - - - 0.3 - 0.3 - 0.3 ------ ------ ------ ------ ------ ------ ------ ------ At 30 June 2005 25.4 42.3 - 10.5 45.3 123.5 4.3 127.8 ====== ====== ====== ====== ====== ====== ====== ====== Notes to the Interim Report (continued) 7. STATEMENT OF CHANGES IN EQUITY (continued) Year ended 31 Attributable to equity holders of the Parent Minority Total December -------------------------- 2005 Share Share Treasury Other Retained interests equity capital premium shares reserves earnings Total £m £m £m £m £m £m £m £m At 1 January 2005 25.3 41.5 - 7.2 34.2 108.2 3.7 111.9 Adoption of IAS 32 and IAS 39 - - - 0.5 (0.5) - - - ------ ------ ------ ------ ------ ------ ------ ------ At 1 January 2005 as adjusted 25.3 41.5 - 7.7 33.7 108.2 3.7 111.9 ------ ------ ------ ------ ------ ------ ------ ------ Depreciation transfer for land and buildings - - - 1.1 (1.1) - - - Exchange adjustments - - - 11.1 - 11.1 - 11.1 Actuarial losses on defined benefit pension schemes - - - - (5.5) (5.5) - (5.5) Net losses on cash flow hedges - - - (1.7) 1.4 (0.3) - (0.3) Transfer to income statement on disposal - - - (0.2) - (0.2) - (0.2) Tax on items taken directly to equity - - - 1.1 0.3 1.4 - 1.4 ------ ------ ------ ------ ------ ------ ------ ------ Net income recognised directly in equity - - - 11.4 (4.9) 6.5 - 6.5 Profit for the year - - - - 24.4 24.4 1.8 26.2 ------ ------ ------ ------ ------ ------ ------ ------ Total income for the year - - - 11.4 19.5 30.9 1.8 32.7 ------ ------ ------ ------ ------ ------ ------ ------ Dividends - - - - (5.6) (5.6) (0.3) (5.9) Shares issued - rights issue 6.3 37.3 - - - 43.6 - 43.6 Shares issued - share option schemes 0.5 3.3 - - - 3.8 - 3.8 Shares issued - LTIP awards 0.1 0.6 - - - 0.7 - 0.7 Purchase of Treasury shares - - (4.6) - - (4.6) - (4.6) Transfer between reserves - - - 1.2 (1.2) - - - Share options - value of employee services - - - 1.4 - 1.4 - 1.4 ------ ------ ------ ------ ------ ------ ------ ------ At 31 December 2005 32.2 82.7 (4.6) 21.7 46.4 178.4 5.2 183.6 ====== ====== ====== ====== ====== ====== ====== ====== This information is provided by RNS The company news service from the London Stock Exchange