Hunting Regulatory News (HTG)

1 Sep 2005 07:01

Hunting PLC01 September 2005 1 September 2005 HUNTING PLC Interim results For the six months to 30 June 2005 Hunting PLC, the international energy services company, today announces itsinterim results for the six months to 30 June 2005. Turnover £668.2m (2004: £539.5m) +23.9% Operating profit £22.4m (2004: £11.9m) +88.2% Pre-tax profit £19.1m (2004: £10.2m) +87.3% Basic earnings per share 10.9p (2004: 4.4p) +147.7% Ordinary dividend per share 2.0p (2004: 1.5p) +33.3% Commenting on the outlook, Dennis Proctor, Hunting's Chief Executive, said: "We are very pleased to announce this strong set of results for the first halfof the year. Whilst we expect continued improvement the extent of theimprovement will be dependent upon light and heavy crude price differentials andthe ability to continue raising prices for goods and services. "We continue to view the future with optimism as the momentum provided by oilcompany expenditures for exploration and production to replenish dwindlingsupplies, coupled with growing world demand, should continue to benefit Huntingthrough the remainder of 2005 and into 2006." For further information, please contact: Hunting PLC 020 7321 0123Dennis Proctor, Chief ExecutiveDennis Clark, Finance Director Hogarth Partnership Limited 020 7357 9477Andrew JaquesEdward Westropp Notes to Editors: Hunting PLC is an international oil services company providing support solutionsto the world's largest oil and gas companies. Hunting PLC ("Hunting"), the international energy services company, announcesits interim results for the six months to 30 June 2005. INTRODUCTION As indicated in the circular sent to shareholders on 1 July 2005 in connectionwith the recent Rights Issue, the first half of 2005 has been a continuum of theactivity levels experienced in late 2004. Natural gas and oil prices aresignificantly up and are the primary catalyst to the activity levels throughoutthe world. U.S. natural gas prices have remained above US$6/mmbtu with oilprices rising from below US$40 a barrel to above US$60 a barrel. Again, due tohigh commodity prices, activity levels and investment in Canadian oil sands andnatural gas exploration continue to grow with expectations for a thirdconsecutive record year for wells drilled and volume improvement. The increasein commodity prices has driven the U.S. rig count to a 20 year high of 1,355active rigs in June. International rig count activity is up 13% year-on-year.Accordingly, all divisions of Hunting have seen improvement. RESULTS SUMMARY Operating profit for the six months to 30 June 2005 increased by 88.2% to £22.4m(2004 - £11.9m). Profit before tax increased by 87.3% to £19.1m (2004 - £10.2m).Basic earnings per share of 10.9p were 148% higher (2004 - 4.4p). An InterimDividend of 2.0p (2004 - 1.5p) will be paid on 23 November 2005 to shareholderson the register at the close of business on 4 November 2005. Operational Review The turnover and operating results of each division are included in thefinancial analysis. Gibson Energy Gibson Energy, based in Alberta, Canada, achieved a strong result with operatingprofit for the six months increasing by 90% from £6.7m to £12.7m as the Canadianoil and gas industry is on track to once again establish records for oil and gaswell completions. Oil sands investment is growing and providing large volumesfor truck transport, pipelines and terminals. In addition, the differentialbetween heavy/sour and light crude oil pricing has enabled Gibson to utilise thesynergies of its pipelines, terminals and storage assets. Gibson is one ofCanada's premier mid-stream energy service companies providing marketingservices, truck transportation, processing and distribution. •Marketing achieved an excellent result for the period due to heavy/sour crude differentials and commodity prices while managing inventories through volatile price swings. Operating profit increased by 126%. •Truck Transportation returned to historical levels of activity with an increase of 64% in operating profit due to higher levels of heavy crude hauling and extended contract negotiations. •Oil and Gas Operations have improved due to the overall activity of the region. Operating profit increased by 20%. •Canwest Propane and Natural Gas Liquids ("NGL") benefited from historical acquisitions and expansion to the West coast of Canada with an increase of 114% in operating profit. •Moose Jaw Asphalt's activity, whilst seasonal, continues to perform below expectations due to high crude oil stock prices. Gibson Energy forecasts further growth in overall operations but the marketingdivision will depend upon crude differentials and blending opportunities duringthe balance of the year. Hunting Energy Hunting Energy is a leading international supplier of products and relatedservices to the upstream oil and gas companies worldwide. Operating profit inthe first half increased by 109% from £3.3m to £6.9m. Continuing a trend started in 2004 when oil prices were below US$35 a barrel,oil prices crossed over US$60 a barrel in the first half of 2005. Analysts arealso raising their near term forecast for gas prices. The 2005 gas price exceedsUS$6.5/mmbtu, up 16% from last year and more than double the average in 2002.These prices have led to record drilling activity with the U.S. rig countsurpassing its 2001 peak by 6% hitting an average 1,355 active rigs in June2005. While finding costs have risen for oil and gas exploration, operatorsindicate that the increase is not expected to impact the demand for drillingcomponents as their margins are still good. •Tubular Products - operating profit increased by 5% on reduced inventories following the sale in May 2004 of the larger diameter range. •Manufacturing Operations - operating profit increased by 222% on the same period in 2004 due to higher utilisation, operating efficiencies and price increases. •International Operations - the continued growth of independent exploration and production operators in the North Sea contributed significantly to the 300% increase in operating profit. Global activity in the second half of 2005 is expected to continue itsimprovement and benefit all regions where Hunting Energy is positioned. Officeshave been opened in the Middle East which are already profitable. Tenkay Resources Tenkay Resources is a non-operating oil and gas exploration company withproducing reserves principally in the Southern U.S. Operating profit for the sixmonths increased by 77%. There were 9 successes out of 12 wells drilled duringthe first half with an increase in reserves. E. A. Gibson Shipbrokers E. A. Gibson Shipbrokers is a leading international shipbroker primarily in theoil and gas tanker market. While transaction volume and rates continue to bestrong, rates have declined in the first half of 2005. However, the globalsupply of, and demand for, crude oil will continue maintaining good tanker ratesabove the historical average. Hunting Energy France in Paris has continued its reorganisation which has led toearnings improvement. Capital expenditure for the six month period to 30 June 2005 was £16.6m (2004 -£10.9m). Net debt at 30 June 2005 was £137.8m (30 June 2004 - £98.9m), withgearing of 108%. Post balance sheet financing On 29 June 2005 the Company announced a Rights Issue to raise approximately£45.7m to fund ongoing capital investment in existing and new facilities and totake advantage of new acquisition opportunities. On 18 August 2005 the Companyannounced the acquisition of Cromar for £9.6m, a company that specialises inequipment and support to well service operators worldwide. OUTLOOK We are very pleased to announce this strong set of results for the first half ofthe year. Whilst we expect continued improvement the extent of the improvementwill be dependent upon light and heavy crude price differentials and the abilityto continue raising prices for goods and services. The recent acquisition ofCromar will produce additional earnings for Hunting Energy and continued foreigninvestment in the Alberta oil sands will benefit Gibson Energy. Labourconstraints will continue to be an issue for the Company as with all energyservice organisations, however, to date, turnover rates have been minimised andtraining programmes are well established to maintain this position. We continueto view the future with optimism as the momentum provided by oil companyexpenditures for exploration and production to replenish dwindling supplies,coupled with growing world demand, should continue to benefit Hunting throughthe remainder of 2005 and into 2006. Richard Hunting Dennis ProctorChairman Chief Executive 1 September 2005 Consolidated Income Statement(Unaudited) Six months Six months ended ended Year ended 30 June 30 June 31 December 2005 2004 2004 Notes £m £m £mRevenue 2 668.2 539.5 1,159.4Cost of sales (609.5) (498.0) (1,066.7) ------- ------- -------Gross profit 58.7 41.5 92.7Other operating income 1.1 1.5 2.9Operating expenses* (37.4) (31.1) (69.8) ------- ------- -------Profit from operations beforeexceptional items 22.4 11.9 25.8Exceptional items 3 - - (5.0) ------- ------- -------Profit from operations 2 22.4 11.9 20.8Net finance costs (3.3) (1.7) (4.4)Share of profits in associates - - 0.1 ------- ------- -------Profit before tax 19.1 10.2 16.5Taxation 4 (6.7) (3.4) (5.1) ------- ------- -------Profit for the period 12.4 6.8 11.4 ------- ------- ------- Attributable to:Shareholders of the parent 11.8 6.7 10.9Minority interests 0.6 0.1 0.5 ------- ------- ------- 12.4 6.8 11.4 ------- ------- ------- Earnings per share (restated) (restated)Basic earnings per 25pordinary 6 10.9p 4.4p 7.9pshareDiluted earnings per 25pordinary 6 10.4p 4.3p 7.7pshare The above results relate to continuing operations.The earnings per share numbers include the impact of the bonus element of theRights Issue, which was announced on 29 June 2005.*Operating expenses include an exceptional charge of £3.8m for onerous leases inthe year ended 31 December 2004. Consolidated Balance Sheet(Unaudited) At At At 30 June 30 June 31 December 2005 2004 2004 £m £m £mASSETSNon-current assets ------- ------- -------Property, plant and equipment 167.4 150.4 155.8Goodwill 50.7 47.5 47.5Intangible assets 3.1 3.0 3.1Interests in associates 4.9 8.8 8.7Available for sale investments 0.2 5.5 3.6Retirement benefit assets 27.8 23.6 23.8Receivables and other assets 3.7 3.1 3.3Deferred tax assets 14.2 4.7 11.2 ------- ------- ------- 272.0 246.6 257.0 ------- ------- -------Current assets ------- ------- -------Inventories 94.5 82.3 76.5Trade and other receivables 141.4 138.8 140.4Investments 1.2 - -Cash and cash equivalents 71.0 8.6 15.1 ------- ------- ------- 308.1 229.7 232.0 ------- ------- -------LIABILITIESCurrent liabilities ------- ------- -------Trade and other payables 151.2 141.3 152.8Current tax liabilities 6.5 4.2 1.1Borrowings 89.6 7.5 16.4Provisions 0.6 - 0.6 ------- ------- ------- 247.9 153.0 170.9 ------- ------- -------Net current assets 60.2 76.7 61.1 ------- ------- -------Non-current liabilities ------- ------- -------Borrowings 120.4 100.0 129.3Deferred tax liabilities 65.6 49.8 59.5Retirement benefit obligations 1.9 1.5 1.9Other payables 2.7 1.7 1.9Provisions 13.8 14.7 13.6 ------- ------- ------- 204.4 167.7 206.2 ------- ------- -------Net assets 127.8 155.6 111.9 ------- ------- -------Shareholders' funds ------- ------- -------Share capital 25.4 73.2 25.3Share premium 42.3 41.5 41.5Other reserves 28.4 20.6 22.4Retained earnings 27.4 17.0 19.0 ------- ------- ------- 123.5 152.3 108.2Minority interests 4.3 3.3 3.7 ------- ------- -------Total equity 127.8 155.6 111.9 ------- ------- -------The Group adopted IAS 32 and IAS 39 on 1 January 2005. As a result, cash andcash equivalents and borrowings as at 30 June 2005 are required to be showngross even though they are subject to a common legal right of set-off. At 30June 2004 and 31 December 2004, these are shown net. Consolidated Statement of Recognised Income and Expense(Unaudited) Six months Six months Year ended ended ended 30 June 30 June 31 December 2005 2004 2004 £m £m £mProfit for the period 12.4 6.8 11.4 -------- -------- --------Currency differences 3.6 (4.2) (2.7)Losses on cash flowhedges (0.1) - -Actuarial gains ondefined benefit pensionschemes 3.0 4.1 3.5Transferred to incomestatement on disposal of (0.3) - -available for sale investmentsTax on items takendirectly to equity (0.9) (1.3) (1.1) -------- -------- --------Net income recogniseddirectly in equity 5.3 (1.4) (0.3) -------- -------- --------Total recognised incomeand expense for theperiod 17.7 5.4 11.1 -------- -------- -------- Reconciliation of Movements in Consolidated Shareholders' Funds(Unaudited) Six month Six month ended ended Year ended 30 June 30 June 31 December 2005 2004 2004 Notes £m £m £mProfit attributable to shareholders 11.8 6.7 10.9Dividends 5 (3.0) (4.3) (6.2) -------- -------- --------Retained profit for the period 8.8 2.4 4.7Currency differences 3.6 (4.2) (2.7)Losses on cashflow hedges (0.1) - -Cancellation and repayment of preferenceshares - - (47.9)Cost of share options 0.3 0.1 0.4Share capital issued 0.9 - -Allotment of Treasury shares - - 0.1Actuarial gains on defined benefit pension 2.1 2.8 2.4schemes (net of tax)Transfer to income statement on disposal (0.3) - - -------- -------- --------Net addition (reduction) to shareholders'funds 15.3 1.1 (43.0)Opening shareholders' funds 108.2 151.2 151.2 -------- -------- --------Closing shareholders' funds 123.5 152.3 108.2 -------- -------- -------- Consolidated Cash Flow Statement(Unaudited) Six months Six months ended ended Year ended 30 June 30 June 31 December 2005 2004 2004 £m £m £mOperating activitiesProfit from operations before exceptionalitems 22.4 11.9 25.8Depreciation, amortisation and impairment 10.5 9.2 19.5(Profit) on disposal of investments (0.4) - (0.4)(Profit) on disposal of property, plantand equipment (0.3) - (0.9)(Increase) in inventories (14.8) (15.8) (10.0)Decrease (increase) in receivables 5.4 (14.3) (14.2)Increase (decrease) in payables (0.8) 12.0 19.2Taxation (paid) received (1.7) 8.6 6.6Other non cash flow items 0.3 (0.8) 0.4 -------- -------- --------Net cash inflow from operating activities 20.6 10.8 46.0 -------- -------- --------Investing activitiesDividends received from associates 3.8 3.5 3.5Purchase of subsidiary and businesses (1.2) (0.5) (1.5)Cash acquired with subsidiary 0.5 - -Purchase of minority interest insubsidiary - (0.4) (0.1)Purchase of and loans to associates (5.3) (0.2) (0.2)Proceeds from disposal of investments 3.3 - 2.4Proceeds from disposal of subsidiary - 22.9 19.9Proceeds from disposal of property, plantand equipment 1.6 5.0 6.0Purchase of property, plant and equipment (16.6) (10.9) (21.9)Purchase of intangible assets (0.2) (0.1) (0.4) -------- -------- --------Net cash (outflow) inflow from investingactivities (14.1) 19.3 7.7 -------- -------- --------Financing activitiesInterest received 1.8 1.1 3.1Interest paid (5.9) (4.0) (8.7)Equity dividends paid (3.0) (2.3) (3.8)Preference dividends paid - (2.0) (2.4)Share capital issued 0.9 - -Cancellation and repayment of preferenceshare capital - - (47.9)(Increase) in deposits maturing after 3months (1.2) - -Proceeds from borrowings - - 92.9Repayment of borrowings (10.6) (32.1) (87.9)Capital element of finance leases (0.2) (0.2) (0.3) -------- -------- --------Net cash (outflow) from financingactivities (18.2) (39.5) (55.0) -------- -------- --------Net (decrease) in cash, cash equivalentsand bank overdrafts (11.7) (9.4) (1.3)Cash, cash equivalents and bankoverdrafts at beginning of period 10.9 12.4 12.4Effect of foreign exchange rate changes 0.3 (0.4) (0.2)Adoption of IAS 32 and IAS 39 (0.3) - - -------- -------- --------Cash, cash equivalents and bankoverdrafts at end of period (0.8) 2.6 10.9 -------- -------- -------- Notes to the Interim Report 1 BASIS OF ACCOUNTING This interim report has been prepared in accordance with IAS 34 InterimFinancial Reporting and IFRS 1 First-time adoption of International FinancialReporting Standards, as it is part of the period covered by the Group's firstIFRS financial statements for the year ended 31 December 2005. These interimfinancial statements have been prepared in accordance with those IFRS standardsand IFRIC interpretations which are effective, or have been adopted early, as at1 September 2005. The IFRS standards and IFRIC interpretations that will beapplicable at 31 December 2005, including those that will be applicable on anoptional basis, are not known with certainty at the time of preparing theseinterim financial statements. Under the transitional arrangements within IFRS 1, reconciliations are requiredbetween the IFRS comparative financial information published within this reportand the previously published UK GAAP financial information. These are containedwithin the report Transition to International Financial Reporting Standards alsopublished on 1 September 2005. The comparative information for the year ended 31 December 2004 and the sixmonths ended 30 June 2004 have been prepared in accordance with IFRS and do notconstitute statutory accounts as defined in section 240 of the Companies Act1985. A copy of the statutory accounts for the year ended 31 December 2004,prepared under UK GAAP, has been delivered to the Registrar of Companies. Theauditors' report on those accounts was unqualified. Accounting policies The Company's principal IFRS accounting policies are set out within the reportTransition to International Financial Reporting Standards. Changes in IFRS Accounting Policies The interim report includes the adoption of IAS 32 Financial Instruments:Disclosure and Presentation and IAS 39 Financial Instruments: Recognition andMeasurement with effect from 1 January 2005. There have been no other changes inaccounting policies. Notes to the Interim ReportContinued 2 SEGMENTAL REPORTINGBusiness Segments Six months ended 30 June 2005 Total gross Inter- Total Profit from segmental revenue revenue revenue operations £m £m £m £mGibson EnergyMarketing 485.0 (42.5) 442.5 8.8Truck Transportation 35.7 (3.0) 32.7 1.8Oil and Gas Operations 7.9 (1.8) 6.1 2.4Canwest and Natural GasLiquids 48.9 (24.1) 24.8 1.5Moose Jaw Asphalt 34.4 (11.9) 22.5 (1.8) --------- --------- --------- ---------- 611.9 (83.3) 528.6 12.7 --------- --------- --------- ----------Hunting Energy ServicesTubular Products 31.0 (2.3) 28.7 2.0Manufacturing 31.1 (3.1) 28.0 2.9International 31.5 (1.4) 30.1 2.0 --------- --------- --------- ---------- 93.6 (6.8) 86.8 6.9 --------- --------- --------- ----------Tenkay 6.0 - 6.0 2.3Other operating divisions 46.8 - 46.8 0.5 --------- --------- --------- ---------- 758.3 (90.1) 668.2 22.4 --------- --------- --------- ---------- Six months ended 30 June 2004 Total gross Inter-segmental Total Profit from revenue revenue revenue operations £m £m £m £mGibson EnergyMarketing 380.9 (32.2) 348.7 3.9Truck Transportation 28.7 (1.7) 27.0 1.1Oil and Gas Operations 7.0 (1.5) 5.5 2.0Canwest and Natural GasLiquids 49.1 (23.1) 26.0 0.7Moose Jaw Asphalt 20.9 (9.1) 11.8 (1.0) --------- --------- --------- ---------- 486.6 (67.6) 419.0 6.7 --------- --------- --------- ----------Hunting Energy ServicesTubular Products 46.7 (2.5) 44.2 1.9Manufacturing 24.3 (4.5) 19.8 0.9International 19.1 (0.7) 18.4 0.5 --------- --------- --------- ---------- 90.1 (7.7) 82.4 3.3 --------- --------- --------- ----------Tenkay 3.9 - 3.9 1.3Other operating divisions 34.2 - 34.2 0.6 --------- --------- --------- ---------- 614.8 (75.3) 539.5 11.9 --------- --------- --------- ---------- Notes to the Interim ReportContinued 2 SEGMENTAL REPORTING continued Year ended 31 December 2004 Total gross Inter- Total Profit from segmental revenue revenue revenue operations £m £m £m £mGibson EnergyMarketing 825.3 (78.1) 747.2 7.0Truck Transportation 60.6 (4.7) 55.9 2.6Oil and Gas Operations 15.2 (3.2) 12.0 5.3Canwest and Natural Gas Liquids 104.0 (44.1) 59.9 1.6Moose Jaw Asphalt 69.3 (31.2) 38.1 (1.0) -------- -------- -------- -------- 1,074.4 (161.3) 913.1 15.5 -------- -------- -------- --------Hunting Energy ServicesTubular Products 85.2 (8.2) 77.0 4.0Manufacturing 42.8 (4.8) 38.0 2.2International 45.5 (1.4) 44.1 2.1 -------- -------- -------- -------- 173.5 (14.4) 159.1 8.3 -------- -------- -------- --------Tenkay 8.5 - 8.5 3.1Other operating divisions 78.7 - 78.7 2.7 -------- -------- -------- -------- Total 1,335.1 (175.7) 1,159.4 29.6 -------- -------- --------Exceptional items(including £3.8m chargedto operating expenses) (8.8) --------Total profit from operations 20.8 -------- 3 EXCEPTIONAL ITEMS Six Six Year ended months ended months ended 30 June 30 June 31 December 2005 2004 2004 £m £m £mExceptional items comprise:Settlement of a claim on thedisposal of a former subsidiary - - 3.1Closure of a US subsidiary - - 1.9 -------- -------- -------- - - 5.0 -------- -------- -------- 4 TAXATION The taxation charge for the six months ended 30 June 2005 is calculated byapplying the best estimate of the 2005 annual effective rate of tax to theprofit for the period. 5 DIVIDENDS Six Six Year ended months ended months ended 30 June 30 June 31 December 2005 2004 2004 £m £m £mPreference dividends: - 2.0 2.4Ordinary dividends:2003 final - 2.3 2.32004 interim - - 1.52004 final 3.0 - - -------- -------- -------- 3.0 4.3 6.2 -------- -------- --------A proposed 2005 interim dividend of 2.0p per share was approved by the Board,for payment on 23 November 2005. Notes to the Interim ReportContinued 6 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 year. 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 year. Reconciliations of the earnings and weighted average number of Ordinary sharesused in the calculations are set out below: Six months Six months Year ended ended 30 June ended 30 June 31 December 2005 2004 2004 £m £m £mProfit attributable toshareholders of the parent 11.8 6.7 10.9Less: Preferencedividends - (2.0) (2.4) ---------- ---------- ---------Net profit attributableto equity holders of the parent 11.8 4.7 8.5 ---------- ---------- ---------Effect of dilutive potential Ordinary shares:Share options - - - ---------- ---------- ---------Earnings for thepurposes of dilutedearnings per share 11.8 4.7 8.5 ---------- ---------- --------- Weighted Weighted Weighted average number average number average number of shares of shares of shares millions millions millionsWeighted average numberof Ordinary shares 107.9 107.7 107.7Dilutive outstandingshare options 4.2 1.2 1.9Long term incentive options 0.9 - 0.9 ---------- ---------- ---------Adjusted weighted average number ofOrdinary shares 113.0 108.9 110.5 ---------- ---------- --------- pence pence penceBasic EPS 10.9 4.4 7.9 ---------- ---------- ---------Diluted EPS 10.4 4.3 7.7 ---------- ---------- ---------Basic earnings per share before exceptional items is disclosed to indicate the underlyingprofitability of the Group as follows: pence pence penceBasic EPS 10.9 4.4 7.9Effect of exceptionalitems (after taxation) - - 5.2 ---------- ---------- ---------Basic EPS beforeexceptional items 10.9 4.4 13.1 ---------- ---------- ---------Earnings per share numbers include the impact of the deemed issue of 6.7 million bonus sharesinherent in the Rights Issue. Notes to the Interim ReportContinued 7 CHANGES IN DEBT At Adoption of At 31 December IAS 32 1 January Cash flow Exchange At 30 2004 and IAS 39 2005 movements June 2005 £m £m £m £m £m £mCash and cashequivalents 15.1 59.0 74.1 (3.6) 0.5 71.0Bankoverdrafts (4.2) (59.3) (63.5) (8.1) (0.2) (71.8) ------- ------ ------- (0.3) (11.7) 0.3 ------- ------ -------Currentborrowings (11.8) - (11.8) (4.9) (0.7) (17.4)Non-currentborrowings (128.5) (0.5) (129.0) 15.5 (6.3) (119.8)Finance leases (1.2) - (1.2) 0.2 - (1.0)Money marketdeposits - - - 1.2 - 1.2 ------- ------- ------ ------ ------- ------Total net debt (130.6) (0.8) (131.4) 0.3 (6.7) (137.8) ------- ------- ------ ------ ------- ------ The adoption of IAS 32 and IAS 39 incorporates the grossing-up of cash and bankoverdrafts previously off-set and the recognition of accrued interest within netdebt. 8 POST BALANCE SHEET EVENT On 29 June 2005, the Company announced a Rights Issue of 25,373,332 new Ordinaryshares at 180 pence per share on a 1 for 4 basis. The gross proceeds were£45.7m. With the exception of the earnings per share, which includes the bonuselement of the Rights Issue, the financial information in the interim report hasnot been adjusted. Consolidated Statement of Changes in Equity(Unaudited) Attributable to equity holders of the Parent Minority Total ------------------------- Share Share Other Retained interests equity6 Months ended 30 June 2005 capital premium reserves earnings Total £m £m £m £m £m £m £mAt 1 January 2005 25.3 41.5 22.4 19.0 108.2 3.7 111.9Adoption ofIAS 32 and IAS 39 - - 0.5 (0.5) - - - ------- ------- ------- ------- ------ ------- ------At 1 January 2005 asadjusted 25.3 41.5 22.9 18.5 108.2 3.7 111.9 ------- ------- ------- ------- ------ ------- ------Depreciation transfer forland and buildings - - 0.7 (0.7) - - -Exchange differences - - 3.6 - 3.6 - 3.6Actuarial gains on definedbenefit pension schemes - - 3.0 - 3.0 - 3.0Losses on cash flow hedges - - (0.1) - (0.1) - (0.1)Transfer to incomestatement on disposal - - (0.3) - (0.3) - (0.3)Tax on items taken directlyto equity - - (0.9) - (0.9) - (0.9) ------- ------- ------- ------- ------ ------- ------Net income recogniseddirectly in equity - - 4.6 0.7 5.3 - 5.3Profit for the period - - - 11.8 11.8 0.6 12.4 ------- ------- ------- ------- ------ ------- ------Total incomefor the period - - 4.6 12.5 17.1 0.6 17.7 ------- ------- ------- ------- ------ ------- ------Dividends - - - (3.0) (3.0) - (3.0)Shares issued 0.1 0.8 - - 0.9 - 0.9Transfer operating gains on defined - - 0.6 (0.6) - - -benefit pensions schemesReserve for cost of shareoptions - - 0.3 - 0.3 - 0.3 ------- ------- ------- ------- ------ ------- ------At 30 June 2005 25.4 42.3 28.4 27.4 123.5 4.3 127.8 ------- ------- ------- ------- ------ ------- ------ Attributable to equity holders of the Parent Minority Total ------------------------- Share Share Other Retained interests equity6 Months ended 30 June 2004 capital premium reserves earnings Total £m £m £m £m £m £m £mAt 1 January 2004 73.2 41.5 22.2 14.3 151.2 3.2 154.4 ------- ------- ------- ------- ------ ------- ------Depreciation transfer forland and buildings - - (1.3) 1.3 - - -Exchange differences - - (4.2) - (4.2) - (4.2)Actuarial gains ondefined benefit pension schemes - - 4.1 - 4.1 - 4.1Tax on itemstaken directlyto equity - - (0.8) (0.5) (1.3) - (1.3) ------- ------- ------- ------- ------ ------- ------Net income recogniseddirectly in equity - - (2.2) 0.8 (1.4) - (1.4)Profit for the period - - - 6.7 6.7 0.1 6.8 ------- ------- ------- ------- ------ ------- ------Total incomefor the period - - (2.2) 7.5 5.3 0.1 5.4 ------- ------- ------- ------- ------ ------- ------Dividends - - - (4.3) (4.3) - (4.3)Transfer betweenreserves - - 0.5 (0.5) - - -Reserve forcost of shareoptions - - 0.1 - 0.1 - 0.1 ------- ------- ------- ------- ------ ------- ------At 30 June 2004 73.2 41.5 20.6 17.0 152.3 3.3 155.6 ------- ------- ------- ------- ------ ------- ------ Consolidated Statement of Changes in Equity(Unaudited) Attributable to equity holders of the Parent Minority Total -------------------------- Share Share Other Retained interests equityYear ended capital premium reserves earnings Total31 December2004 £m £m £m £m £m £m £mAt 1 January2004 73.2 41.5 22.2 14.3 151.2 3.2 154.4 ------- ------- ------- ------- ------ ------- ------Depreciationtransfer forland and - - (1.7) 1.7 - - -buildingsExchangedifferences - - (2.7) - (2.7) - (2.7)Actuarialgains ondefinedbenefit - - 3.5 - 3.5 - 3.5pensionschemesTax on itemstakendirectly - - (0.6) (0.5) (1.1) - (1.1)to equity ------- ------- ------- ------- ------ ------- ------Net incomerecogniseddirectly in - - (1.5) 1.2 (0.3) - (0.3)equityProfit forthe - - - 10.9 10.9 0.5 11.4year ------- ------- ------- ------- ------ ------- ------Total incomefor the year - - (1.5) 12.1 10.6 0.5 11.1 ------- ------- ------- ------- ------ ------- ------Dividends - - - (6.2) (6.2) - (6.2)Allotment ofTreasuryshares - - 0.1 - 0.1 - 0.1Cancellationandrepayment (47.9) - - - (47.9) - (47.9)ofpreferencesharesTransferbetweenreserves - - 1.2 (1.2) - - -Reserve forcost ofshare - - 0.4 - 0.4 - 0.4options ------- ------- ------- ------- ------ ------- ------At 31December 25.3 41.5 22.4 19.0 108.2 3.7 111.92004 ------- ------- ------- ------- ------ ------- ------ This information is provided by RNS The company news service from the London Stock Exchange