Mcbride Regulatory News (MCB)

12 Feb 2007 07:02

McBride PLC12 February 2007 McBride plc 12 February 2007 McBride plc, Europe's leading supplier of private label household and personalcare products, announces its Interim Results for the six months ended 31December 2006 • Results in line with market expectations • Group revenue up 3% at £278.2m (2005: £270.4m) with UK sales up 9% • Profit before tax up 5% to £15.6m (2005: £14.9m) • Basic earnings per share up 9% to 6.3p (2005: 5.8p) • Underlying cash flow* at £12.2m (2005: £11.7m) • Net debt of £25.1m, a reduction of £4m • Interim dividend per share of 1.7p, up 6% (2005: 1.6p) • Acquisition of Dasty Italia SpA, Italian private label household liquid business, for €29m (£19m) * Cash flow before financing activities excluding exceptional items andacquisition of subsidiaries Miles Roberts, Chief Executive, commented: "These results show good progress for the group as a whole despite verycompetitive market conditions. Strong performance in the UK, Spain, Italy aswell as in personal care has more than offset continued weakness in the Frenchhousehold products market. We continue to focus our efforts on improvinginnovation, service and efficiency throughout the group. We have today announced the acquisition of Dasty Italia SpA. This acquisitionfurthers our ambition to become the clear leader in the Italian market with aparticular focus on the fast growing discount retail sector. The more modestacquisitions made during the last year have been successfully integrated and areperforming to plan. We continue to seek further value enhancing acquisitions tostrengthen our overall European market position. Trading since the end of December has been in line with our expectations". For further information please contact: McBride plc Miles Roberts, Chief Executive 07748 180076Bob Beveridge, Finance Director 07876 593182Financial Dynamics Andrew Dowler 020 7831 3113 Overview • Personal care sales were up 6% at £56.9m, with continued growth in all key markets, whilst operating profit improved from £4.7m to £4.9m. • Household product sales were up 2% with strong growth in the UK, Italy and Spain partly offset by a decline in France. Household sector operating profits grew by 5% in line with this change in geographic mix. • UK revenue increased 9% to £134.6m (2005: £123.5m) comprising 5% from the recent Sanmex / Coventry acquisitions and 4% of organic growth. UK operating profit grew 17% to £12.3m (2005: £10.5m). • The operating margin improved to 5.9% from 5.7% despite continuing increases in material input and energy costs, driven by synergies, product reformulations and overhead savings. • Western Continental Europe revenue declined 2% to £138.3m (2005: £141.5m), or down 1% excluding exchange impacts, as growth in Personal Care, Spain and Italy was offset by a reduction in French household sales. Operating profit was £3.9m (2005: £4.6m). • Revenues in Eastern Continental Europe were up 4%, to £11.8m (2005: £11.4m). However an organisational restructure and additional expenditure to facilitate our developments in the broader ECE market resulted in operating profit reducing from £1.1m to £0.8m. Acquisitions The group today announced the acquisition of Dasty SpA, a manufacturer ofhousehold liquid products for the Italian market specialising in discountretailers. This acquisition offers us the opportunity to become the clearmarket leader in the growing Italian market. The Sanmex International and Coventry Chemicals acquisitions in 2006 have bothbeen integrated into the UK division's household liquids business and arecontributing as planned. The acquisition of Schneider, a household liquids business in Poland withturnover of around £2m, was completed in January 2007. We continue to seek further value enhancing acquisitions to strengthen ouroverall European market position. Current trading and outlook Trading since the end of December has been in line with our expectations and theGroup expects to maintain its progress in the second half. The focus onmarketing, new product development and cost reduction initiatives, as well asconsidering potential value enhancing acquisition opportunities, will continue. Market and Commercial review The UK household products market grew by nearly 4% in value for the 52 weeksending 31 December 2006. In the same period private label sales increased by 6%,with particular strong performances in laundry up 8%, washing up liquids up 5%,household cleaners up 9% and air fresheners up 18%. The UK personal care market was up 2% but several sectors demonstrated stronggrowth such as skincare up 8%, mouthwash up 15% and liquid soap up 10%. Privatelabel share of this market fell 2% compared to the prior year although volumeswere mainly flat. McBride gained share in the period with UK sales up 9% overall. Key developmentsincluded the launch of new products and formats in the growing ecologicallysensitive and premium household and personal care ranges. We are well placed tobenefit from the continuation of this trend. France is the group's second largest market where we have annual revenues in theregion of €240m (£160m). The French grocery market remains highly competitivepartly following the introduction last year of the Loi Dutreil which encompassessupply and promotional agreements between manufacturers and retail chains. Theoverall value of the French household product market for the 12 months endingDecember 2006 was flat with 2005, this compared to a decline of 5.5% in 2005.During 2006 the market value of household private label products started to growagain after 2 years of falls, increasing by 1% with laundry liquids and airfresheners being the best performing sectors with value sales up 6% and 5%respectively. Our strategy to improve returns in this market has been to focus on costcontrols, product development and particularly to work with selected retailerson the marketing of their private label household and personal care ranges.Where we have given this focus, the initial signs are encouraging with our salesto these retailers increasing ahead of the market. The outlook for innovation isencouraging particularly in product categories such as machine dishwash, liquidtextile wash and cleaners. Growth of discount retailers was flat during the yearbut the outlook is for further growth over the next years. The average headcountin the Western Continental European division during the half year was nearly 10%below the comparative period last year. In Italy, the overall household cleaners and laundry products market saw growthof 3% with private label household cleaners up 5% and private label laundryproducts up 0.5%. Private label products now account for 1 in every 5 productssold in Italy and the overall private label volume share increased from 21% to22%. The discount sector in Italy has been a major factor in this growth ofprivate label. In the Polish household market, the overall private label share remains low atabout 5% aimed primarily at the low value end of the market. Work is well inprogress to expand and improve the current range of household and personal careproducts for the Polish market and we see this as a significant opportunity tobuild our business over the coming years. The development of our new managementteam for the Eastern Continental European region has been completed during thefirst half and has been accompanied by the closure of the international salesdivision in the UK. Group financial review Overview Profit after tax for the half year ended 31 December 2006 was £11.2m, an 8%increase over the prior year (2005: £10.4m). Key drivers included a continuingincrease in personal care revenue across the Group, growth in underlying UKhousehold sales, first time contribution and synergies from the SanmexInternational and Coventry Chemicals acquisitions, and continuing operationalefficiencies and overhead savings. These factors were partially offset by lowerFrench household sales as well as higher material and energy costs. Underlying cash flow, before financing and excluding acquisition and outflowsrelating to exceptional items was strong at £12.2m (2005: £11.7m) and net debtdeclined £4.0m in the half year to £25.1m. Revenue First half revenue improved £7.8m or 3% to £278.2m (2005: £270.4m). Household revenues were up 2% from £216.5m to £221.3m with acquisitionscontributing £6m in the period. Organic household revenues were broadly flatwith UK divisional growth offset by lower Western Continental Europe (WCE)revenues. There was also a £1m adverse currency impact due to a modestweakening of the Euro versus sterling. Personal care revenues were up 6%, reaching £56.9m or 20% of total revenue forthis half year (2005: £53.9m) with increases in both the UK and WCE. By geographic region, UK revenues grew 9% to £134.6m (2005: £123.5m), with 5%from acquisition contribution and the remainder from organic growth, thiscomprised household up £2.5m and personal care up £2.2m. WCE revenuescontracted 2% to £138.3m (2005: £141.5m), with lower French household revenuesand £1m from currency movements accounting for the adverse variance. This waspartially offset by growth in household sales in Italy (up 6%), Spain (up 8%)and Personal Care sales (up 1%). Eastern Continental Europe's revenues improved4% from £11.4m to £11.8m. Operating profit Despite an environment of higher material, energy and packaging costs operatingprofit grew to £16.3m (2005: £15.4m). This £0.9m increase was driven by revenuegrowth from acquisitions and personal care, product reformulation and purchasesavings, and from reduced overheads. The UK's operating profit increased £1.8mto £12.3m reflecting both organic growth and a contribution from acquisitions. The 2006 full year announcement last September referred to measures taken toimprove WCE's performance. However, despite several cost reduction initiativesand improving customer service WCE operating profit reduced £0.7m to £3.9mprimarily due to the continuing tough retail environment in France. Efforts inthese and other areas will continue in the second half. Profit before tax and tax charge Profit before tax for the period was £15.6m (2005: £14.9m) after net financingcosts of £0.7m (2005: £0.5m). The £4.4m taxation charge represents a 28%effective rate, 2% less than the prior half year and 1% less than the prior fullyear, following changes in Belgian tax law. Cash flow Underlying cash flow - before financing, acquisitions and exceptional items -remained strong at £12.2m. This was an improvement on the prior year, £11.7m inthe first half and £8.3m in the second half. There was a small working capitaloutflow of £2.3m (2005: £1.4m), with the increase reflecting higher volumes andthe impact of acquisitions. Capital expenditure was slightly below depreciationat £8.0m, although this is not expected to continue in the second half whenseveral cost saving projects will occur. Net debt level reduced by £4.0m in the half year, to close at £25.1m. The £8.2mof non underlying net outflows included £2.7m on acquisitions, primarilyCoventry Chemicals, £0.5m on 30 June 2006 exceptional items and £6.2m ondividends less £0.7m from executive share options exercised and translationmovements. Balance sheet Net assets have risen to £108.9m from £103.9m at 30 June 2006. The CoventryChemicals acquisition is included within non-current assets, inventory isslightly higher and net debt has reduced. Property, plant and equipment reducedfrom £130.6m to £128.8m because of the weaker Euro and depreciation exceedingcapital expenditure. The average return on capital employed declined slightly to 24.4% (2005: 25.3%)despite a higher operating profit and because of the higher capital base. Earnings per share and dividends Basic earnings per share were 6.3p, a 9% increase on the prior year (2005:5.8p). The weighted average number of shares in issue in the period used incalculating the earnings per share was 177,144,652 (2005: 177,575,301). An interim dividend of 1.7p per share, a 6% increase on 2005, 1.6p, will be paidon 25 May 2007 to shareholders on the register on 27 April 2007. CONSOLIDATED INCOME STATEMENT Unaudited Unaudited Audited 6 months to 6 months to Year ended 31 Dec 2006 31 Dec 2005 30 June 2006 Note £m £m £m Revenue 1 278.2 270.4 540.1 Cost of sales (185.0) (178.3) (355.8)Gross profit 93.2 92.1 184.3 Distribution costs (18.9) (17.7) (35.2)Administrative costs: Before exceptional items (58.0) (59.0) (118.1) Exceptional items (note 1(a)) - - (3.8) Administrative costs including exceptional items (58.0) (59.0) (121.9)Operating profit 1 16.3 15.4 27.2 Financial income 2.4 2.2 3.9Financial expenses (3.1) (2.7) (5.2)Net financing costs (0.7) (0.5) (1.3) Profit before tax 15.6 14.9 25.9Taxation 3 (4.4) (4.5) (7.5)Profit for the period 1 11.2 10.4 18.4 Attributable to:Equity holders of the parent 11.1 10.3 18.2Minority interest 0.1 0.1 0.2Profit for the period 11.2 10.4 18.4 Earnings per ordinary share (pence) 4 Basic 6.3 5.8 10.3 Diluted 6.1 5.7 10.1 Dividends Paid in period (£m) 6.2 5.9 8.7 Paid in period (pence per share) 3.5 3.3 4.9 Proposed (£m) 3.0 2.8 6.2 Proposed (pence per share) 1.7 1.6 3.5 CONSOLIDATED BALANCE SHEET Unaudited Unaudited Audited as at as at as at 31 Dec 2006 31 Dec 2005 30 June 2006 Note £m £m £m Non-current assetsIntangible assets 17.1 9.0 15.4Property, plant and equipment 128.8 127.6 130.6Other non-current assets 0.5 0.5 0.5Deferred tax 4.6 6.5 5.1 151.0 143.6 151.6 Current assetsAssets classified as held for sale - 1.5 -Inventories 48.9 46.1 41.3Trade and other receivables 104.8 99.1 106.6Cash and cash equivalents 2.8 0.2 1.3 156.5 146.9 149.2Total assets 1 307.5 290.5 300.8 Current liabilities Interest bearing loans and borrowings 2.6 7.3 5.2Trade and other payables 145.0 140.9 141.7Current tax payable 2.9 2.8 1.7Provisions 0.6 1.0 1.3 151.1 152.0 149.9 Non-current liabilities Interest bearing loans and borrowings 25.3 15.4 25.2Pensions and other post-employment benefits 14.4 16.9 13.7Provisions 0.7 0.7 1.0Deferred tax 7.1 7.1 7.1 47.5 40.1 47.0Total liabilities 198.6 192.1 196.9Net assets 108.9 98.4 103.9 EquityIssued share capital 17.8 17.7 17.7Share premium account 141.8 141.8 141.8Other reserves (0.9) (0.2) (0.8)Retained earnings (50.4) (61.7) (55.2)Total equity attributable to equity holders of the parent 108.3 98.0 103.5Minority interest 0.6 0.4 0.4Total equity and reserves 108.9 98.4 103.9 CONSOLIDATED CASH FLOW STATEMENT Unaudited Unaudited Audited 6 months to 6 months to Year ended 31 Dec 2006 31 Dec 2005 30 June 2006 £m £m £m Profit before tax 15.6 14.9 25.9Net financing costs 0.7 0.5 1.3Pre-tax exceptional charge in the period - - 3.8 Profit on sale of property, plant and equipment (0.1) - (0.3) Depreciation & amortisation 8.4 9.1 18.0 Operating cash flow before changes in working capital 24.6 24.5 48.7Decrease in receivables - 8.5 2.1(Increase)/decrease in inventories (7.6) (4.4) 1.5Increase/(decrease) in payables 5.3 (5.5) (6.4)Cash outflow in respect of exceptional items (0.5) (2.2) (5.5)Cash generated from operations 21.8 20.9 40.4Interest paid (1.1) (0.9) (2.4)Taxation paid (2.4) (3.1) (6.5)Net cash from operating activities 18.3 16.9 31.5 Cash flows from investing activitiesProceeds from sale of land and buildings 0.1 - 2.2Acquisition of property, plant and equipment (8.0) (7.2) (19.1)Acquisition of intangible assets - (0.3) (0.4)Acquisition of subsidiaries (2.7) - (7.3)Interest received 1.3 0.1 0.3 (9.3) (7.4) (24.3) Cash flows from financing activitiesProceeds from issue of share capital 0.7 0.6 0.6Repurchase of own shares - (2.0) (3.3)(Repayment of)/increase in borrowings (0.6) (5.3) 6.0Payment of finance lease liabilities (0.2) (0.2) (0.4)Dividends paid (6.2) (5.9) (8.7) (6.3) (12.8) (5.8) Net increase/(decrease) in cash and cash equivalents 2.7 (3.3) 1.4Cash and cash equivalents at start of period (1.3) (2.7) (2.7)Effect of exchange rate fluctuations on cash held (0.1) (0.1) -Cash and cash equivalents at end of period 1.3 (6.1) (1.3) Reconciliation of cash and cash equivalents per the balance sheet and cash flow statementCash and cash equivalents per the balance sheet 2.8 0.2 1.3Overdrafts (1.5) (6.3) (2.6)Cash and cash equivalents per the cash flow 1.3 (6.1) (1.3)statement RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT Unaudited Unaudited Audited 6 months to 6 months to Year ended 31 Dec 2006 31 Dec 2005 30 June 2006 £m £m £mIncrease/(decrease) in cash and cash equivalents in the 2.7 (3.3) 1.4periodCash outflow/(inflow) from movement in debt 0.6 5.3 (6.0)Movement on finance leases 0.2 0.2 0.4Change in net debt resulting from cash flows 3.5 2.2 (4.2)Translation differences 0.5 (0.3) (0.5)Movement in net debt in the period 4.0 1.9 (4.7)Net debt at the beginning of the period (29.1) (24.4) (24.4)Net debt at the end of the period (25.1) (22.5) ( 29.1) CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE Unaudited Unaudited Audited 6 months to 6 months to Year ended 31 Dec 2006 31 Dec 2005 30 June 2006 £m £m £m Profit for the period 11.2 10.4 18.4Foreign exchange translation differences (1.0) (1.2) 0.7Net gain/(loss) on hedge of net investment in foreignsubsidiaries 0.9 1.1 (0.7)Cash flow hedge reserve movement (0.3) 0.3 0.4Tax on items taken directly to equity - - (0.1)Actuarial loss net of deferred tax (0.3) (3.0) (0.6)Total recognised income and expense for the period 10.5 7.6 18.1 Attributable to:Equity shareholders of the parent 10.4 7.4 17.9Minority interest 0.1 0.2 0.2 10.5 7.6 18.1 NOTES TO THE INTERIM FINANCIAL STATEMENTS 1) Segment Reporting Segment information is presented below in respect of the Group's geographic, UK, Western Continental Europeand Eastern Continental Europe, and business, Household and Personal Care, segments. The primary format,geographic segments, is based on the Group's operating divisions and internal reporting structure. Prior to 30 June 2006 there were two reported geographic segments with Western and Eastern Continental Europeconsolidated as Continental Europe. The 31 December 2005 numbers below have been restated onto the new basis. Geographic segments Segment revenue Segment profit 6 months to 6 months to Year ended 6 months to 6 months to Year ended 31 Dec 2006 31 Dec 2005 30 Jun 2006 31 Dec 2006 31 Dec 2005 30 Jun 2006 £m £m £m £m £m £mUK 134.6 123.5 249.8 12.3 10.5 21.8Western Continental Europe 138.3 141.5 280.3 3.9 4.6 9.0Eastern Continental Europe 11.8 11.4 21.9 0.8 1.1 1.6Total reporting segments 284.7 276.4 552.0 17.0 16.2 32.4Inter segment revenue (6.5) (6.0) (11.9)Exceptional items (note 1(a)) - - (3.8)Corporate * (0.7) (0.8) (1.4)Revenue/operating profit 278.2 270.4 540.1 16.3 15.4 27.2Net financing costs (0.7) (0.5) (1.3)Taxation (4.4) (4.5) (7.5)Profit for the period 11.2 10.4 18.4* Corporate costs relate primarily to head office costs that are not allocated to one of the geographicsegments. Segment assets Segment liabilities As at As at As at As at As at As at 31 Dec 2006 31 Dec 2005 30 Jun 2006 31 Dec 2006 31 Dec 2005 30 Jun 2006 £m £m £m £m £m £mUK 127.3 110.4 119.1 (73.5) (72.8) (70.1)Western Continental Europe 161.1 159.1 163.2 (82.9) (88.6) (85.0)Eastern Continental Europe 13.3 14.3 12.1 (3.4) (3.2) (4.0)Total reporting segments 301.7 283.8 294.4 (159.8) (164.6) (159.1)Corporate * 5.8 6.7 6.4 (38.8) (27.5) (37.8)Total 307.5 290.5 300.8 (198.6) (192.1) (196.9)* Corporate liabilities include external debt and tax liabilities. Segment amortisation and depreciation Segment capital expenditure* 6 months to 6 months to Year ended 6 months to 6 months to Year ended 31 Dec 2006 31 Dec 2005 30 Jun 2006 31 Dec 2006 31 Dec 2005 30 Jun 2006 £m £m £m £m £m £mUK 3.7 3.4 8.7 3.8 4.5 9.0Western Continental Europe 3.0 3.8 10.1 4.3 4.3 8.4Eastern Continental Europe 1.3 0.3 0.7 0.3 0.3 0.5Total reporting segments 8.0 7.5 19.5 8.4 9.1 17.9Corporate - - - - - 0.1Total 8.0 7.5 19.5 8.4 9.1 18.0*Capital expenditure on property, plant and equipment and intangible assets. Business segments Segment revenue Segment profit 6 months to 6 months to Year ended 6 months to 6 months to Year ended 31 Dec 2006 31 Dec 2005 30 Jun 2006 31 Dec 2006 31 Dec 2005 30 Jun 2006 £m £m £m £m £m £mHousehold 221.3 216.5 434.9 12.1 11.5 23.2Personal Care 56.9 53.9 105.2 4.9 4.7 9.2Total reporting segments 278.2 270.4 540.1 17.0 16.2 32.4Exceptional items (note 1(a)) - - (3.8)Corporate * (0.7) (0.8) (1.4)Revenue/operating profit 278.2 270.4 540.1 16.3 15.4 27.2Net finance costs (0.7) (0.5) (1.3)Taxation (4.4) (4.5) (7.5)Profit for the period 11.2 10.4 18.4 * Corporate costs relate primarily to head office costs that are not allocatedto one of the business segments. Segment assets Segment capital expenditure* 6 months to 6 months to Year ended 6 months to 6 months to Year ended 31 Dec 2006 31 Dec 2005 30 Jun 2006 31 Dec 2006 31 Dec 2005 30 Jun 2006 £m £m £m £m £m £mHousehold 231.5 223.2 229.7 6.0 6.1 14.5Personal Care 70.2 60.6 64.7 2.0 1.4 5.0Total reporting segments 301.7 283.8 294.4 8.0 7.5 19.5Corporate 5.8 6.7 6.4 - - -Total 307.5 290.5 300.8 8.0 7.5 19.5 *Capital expenditure on property, plant and equipment and intangible assets. External revenue by destination Segmental information is also presented below in respect of external revenue bydestination. 6 months to 6 months to Year ended 31 Dec 2006 31 Dec 2005 30 Jun 2006 £m £m £mUK 126.8 115.2 233.7Western Continental Europe 129.3 133.8 263.9Eastern Continental Europe and Rest of World 22.1 21.4 42.5Total 278.2 270.4 540.1 1(a) Exceptional items The Group presents certain items as "exceptional". These are items which, inmanagement's judgement, need to be disclosed by virtue of their size orincidence in order to obtain a proper understanding of the financialinformation. There was a £3.8 million pre-tax operating exceptional charge to the incomestatement in the year ended 30 June 2006. This related primarily, £2.5 million,to a programme to reduce administrative costs in the Group's Western ContinentalEurope division, that enabled a reduction of 85 jobs without significant changein support provided to the business. The remainder of the exceptional chargerelated to restructuring the UK division, £0.5 million, and a terminationpayment and related costs, £0.8 million, for the previous Chief Executive. 2) Basis of preparationThese financial statements have been prepared on the basis of the recognition and measurement requirements ofIFRS applied in the financial statements at 30 June 2006 and those standards that have been endorsed and willbe applied at 30 June 2007. The results for each half-year are unaudited and do not represent the Group's statutory accounts. Thecomparative figures for the year ended 30 June 2006 have been abridged from the Group's financial statementsfor that year, which have been delivered to the Registrar of Companies. The auditors have reported on thosefinancial statements; their report was unqualified and did not contain statements under section 237 (2) or (3)of the Companies Act 1985. Comparative figures for the period ended 31 December 2005 have been restated so asto be consistently presented with those of the year end. The interim financial statements were approved by the Board on 9 February 2007. 3) Taxation The £4.4m tax charge for the half year ended 31 December 2006 (2005: £4.5m) consists of £3.3m (2005: £2.4m) ofUK tax and £1.1m (2005: £2.1m) of overseas tax. 4) Earnings per ordinary shareBasic earnings per ordinary share is calculated on profit after tax and minority interest, attributable toequity holders of the parent, divided by the weighted average number of ordinary shares in issue during theperiod in accordance with IAS 33. 6 months to 6 months to Year ended 31 Dec 2006 31 Dec 2005 30 Jun 2006 £m £m £mTotal earnings (£m) 11.1 10.3 18.2Weighted average number of ordinary shares 177,144,652 177,575,301 177,364,227Basic earnings per share (pence) 6.3 5.8 10.3 Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issueon assumption of conversion of all potentially dilutive ordinary shares. The Company has two categories ofpotentially dilutive ordinary shares; share awards with no option price and shares allocated to an approvedSave As You Earn scheme. 6 months to 6 months to Year ended 31 Dec 2006 31 Dec 2005 30 Jun 2006 £m £m £mWeighted average number of ordinary shares (million) 177.1 177.6 177.4Effect of dilutive share options (million) 0.3 0.9 0.9Effect of dilutive share awards (million) 0.7 - 0.2Effect of dilutive SAYE scheme shares (million) 2.7 2.5 2.5 180.8 181.0 181.0Diluted earnings per share (pence) 6.1 5.7 10.1 4) Earnings per ordinary share (continued)Adjusted basic earnings per share applies to earnings excluding exceptional items since the directors considerthat this gives additional information as to the underlying performance of the Group. 6 months to 6 months to Year ended 31 Dec 2006 31 Dec 2005 30 Jun 2006 £m £m £mEarnings used to calculate Basic and Diluted EPS 11.1 10.3 18.2Exceptional items after tax - - 2.6Earnings before exceptional items 11.1 10.3 20.8Basic earnings per share before exceptional items (pence) 6.3 5.8 11.7 Financial calendar for the year ending 30 June 2007 DividendsInterim Announcement 12 February 2007 Payment 25 May 2007Final Announcement September 2007 Payment November 2007ResultsInterim Announcement 12 February 2007Preliminary statement for full year Announcement September 2007Report and Accounts Circulated September 2007Annual General Meeting To be held October 2007 Exchange rates The exchange rates used for conversion to sterling were as follows: Unaudited Unaudited Audited 6 months to 6 months to Year ended 31 Dec 2006 31 Dec 2005 30 June 2006 Average rate: Euro 1.48 1.47 1.46 Polish Zloty 5.77 5.82 5.74 Czech Koruna 41.74 43.27 42.4 Hungarian Forint 396.6 364.8 372.1 Closing rate: Euro 1.48 1.46 1.45 Polish Zloty 5.68 5.59 5.90 Czech Koruna 40.85 42.27 41.3 Hungarian Forint 373.1 367.4 409.7 This information is provided by RNS The company news service from the London Stock Exchange