Vp Regulatory News (VP.)

7 Jun 2007 07:01

Vp PLC07 June 2007 Press Release 7 June 2007 Vp plc ("Vp" or "the Group") Final Results Vp plc, the equipment rental specialist, today announces its Final Results forthe year ended 31 March 2007. Highlights • Record results • Operating profit up by 44% to £16.5 million (2006: £11.5 million) • Profit before tax up 36% to £14.5 million (2006: £10.7 million) • Revenue up 22% to £121.6 million (2006: £99.4 million) • Earnings per share increased by 40% to 24.5 pence (2006: 17.5 pence) • Total dividend increased by 25% to 8.25 pence (2006: 6.60 pence) based on recommended final dividend of 6.00 pence per share Jeremy Pilkington, Chairman, commented: "The record result we are reporting reflects the underlying strength of themarkets served by the Group and the success of our strategy in translatingopportunities into profitable growth. The outlook remains positive and we are confident that the Group can deliversustainable growth over the medium term." - Ends - Enquiries: Vp plcJeremy Pilkington, Chairman Tel: +44 (0) 1423 533 405jeremypilkington@vpplc.comNeil Stothard, Group Managing Director Tel: +44 (0) 1423 533 445neil.stothard@vpplc.comMike Holt, Group Finance Director Tel: +44 (0) 1423 533 445mike.holt@vpplc.com www.vpplc.com Media enquiries: Abchurch CommunicationsSarah Hollins/ Helen Waggott/ Emma Johnson Tel: +44 (0) 20 7398 7784emma.johnson@abchurch-group.com www.abchurch-group.com CHAIRMAN'S STATEMENT Results I am very pleased to report record results for the Group for the year ended 31March 2007. Operating profits rose 44% to £16.5 million (2006: £11.5 million) on revenuesahead by 22% at £121.6 million. Profit before tax increased by 36% to £14.5million and earnings per share increased 40% to 24.50 pence per share. Inrecognition of this excellent performance the Board is recommending a finaldividend of 6.00 pence per share, making a total for the year of 8.25 pence pershare, an increase of 25%. Subject to shareholder approval at the AnnualGeneral Meeting on 11 September 2007, the dividend will be paid on 1 October2007 to shareholders registered as at 7 September 2007. The Group continues to enjoy a period of sustained growth in all of itsprincipal markets and we are committing significant capital investment to takethe fullest advantage of the opportunities this presents. In parallel, we arestrengthening our human resources and infrastructure systems to ensure that ourcapabilities in these performance critical areas remain aligned with our growthaspirations. It remains our strategy to seek market leadership for each of our businesses andto be irresistibly the provider and employer of choice. We regard thesequalitative objectives as being highly interdependent with the Group's financialaspirations. The Group retains significant financial capacity to pursue growth opportunitiesas they are identified. Groundforce Groundforce performed strongly during the year with significant progress beingachieved in all of its businesses. Operating profits rose by 21% to £6.4million on turnover up 19% to £28.1 million. The AMP4 water industry capitalinvestment programme is now gathering pace and is providing useful incrementalrevenue streams in many parts of the country. In the course of the new financial year Groundforce will be opening a depot inthe Republic of Ireland. Groundforce has traded in Ireland for a number ofyears but with a local operational base it will be in a much stronger positionto offer the full range of its services to an already established customer base. Hire Station Hire Station delivered an outstanding result with profits more than doubling to£3.1 million on revenues ahead by 7% at £44.9 million. This profit growth islargely organic, reflecting continuing improvements in operational efficiencyand revenue quality, together with a strong contribution from the ESS Safeforceactivity. Hire Station has continued to make selective acquisitions. MEP, the specialistpipework fittings company, acquired in November 2006, has progressed well andmade a contribution ahead of expectations in its first period. A single branchacquisition in Colchester was completed at the end of the period and has beensuccessfully integrated into our Southern region. Post the year end, in April2007, our acquisition of Cool Customers adds a substantial revenue stream andthe experience of a successful internet based business model to the recentlyestablished Climate Hire business. Hire Station has delivered its three year profit recovery plan and I amconfident of significant upside as margins improve and the business pursuesfurther revenue growth. Airpac Bukom Airpac Bukom's results reflect strong underlying organic growth and the firstfull year contribution from the acquisition of Bukom in March 2006. Profitsincreased by 90%, to £2.4 million on revenues which doubled to £10.0 million.Market conditions in the oil and gas exploration business remain very positiveand we have committed significant capital investment to meet demand. To bettersupport the broader global reach of the enlarged business, we are establishingadditional distribution centres in Western Australia, South America and theMiddle East. We expect these locations to be fully operational in the secondhalf of 2007. UK Forks UK Forks profits, as previously indicated, were not sustainable at the excellentlevels of the previous year. Profits reduced to £1.4 million on revenues of£13.9 million. It is positive to note that trading stabilised in the secondhalf of the year and that revenue levels have improved significantly as we haveentered the new financial year. TPA TPA reported its first full year contribution of £1.0 million on turnover of£11.4 million. TPA derives a significant proportion of its revenue and profitsfrom the seasonal summer events market which weights its contribution heavilytowards the first half. Winter period losses were more severe than anticipatedand were exacerbated by the underperformance of the barrier hire activity.Management are focussed on addressing these issues to stabilise first halfprofits in the forthcoming financial year. Torrent Trackside Torrent Trackside had a very good year with profits increasing 13% to £2.0million on revenues ahead by 8% at £13.1 million. The rail infrastructureindustry remains an attractive but challenging market and we remain confidentthat Torrent's reputation and expertise will sustain its position as a leadingsupplier to this market. Outlook The record result we are reporting reflects the underlying strength of themarkets served by the Group and the success of our strategy in translatingopportunities into profitable growth. The outlook remains positive and we are confident that the Group can deliversustainable growth over the medium term. Jeremy PilkingtonChairman7 June 2007 BUSINESS REVIEW Overview The year ended 31 March 2007 demonstrates excellent progress in the developmentof the Vp business, and the delivery of substantial earnings growth. Operating profits increased 44% on the corresponding period to £16.5 million, onrevenues 22% ahead of last year at £121.6 million. Whilst prior yearacquisitions have assisted this growth, 30% of the increase in profit isorganic. To support new business opportunities we made organic capital investment of over£30 million during the year. In addition, we have completed three businessacquisitions with a combined value of £4.6 million. We have seen only amarginal increase in gearing as a result of these investments due to theexcellent cash generation from the Group and there remains a comfortable levelof financial headroom to pursue further expansion. The markets the Group operates within have remained stable and supportive, withoil and gas and latterly water being particularly buoyant. Groundforce Excavation support systems and specialist products for the water, civilengineering and construction industries. Revenue £28.1 million (2006: £23.5 million)Operating Profit £6.4 million (2006: £5.3 million)Investment in Rental Fleet £5.4 million (2006: £2.2 million) All constituent Groundforce businesses enjoyed growth in the year with combinedrevenues up £4.6 million to £28.1 million, delivering a very good result,improving profit by 21% to £6.4 million. Revenues were underpinned by the ongoing activity in housing and construction,but were buoyed by the release of AMP4 contracts in the second half.Involvement in projects, such as the tunnel under the River Shannon in Limerickand the Bristol Broadmeads redevelopment, has widened the scope of ouractivities in the large civil engineering project arena. The 250 tonne strutproduct launched during 2006 was utilised in these projects. Groundforce nowholds a class leading position in what is a technically challenging area and weexpect further opportunities to arise in the coming year. In March 2007, weacquired Evershore, a small, Leeds based, shoring rental company which has beenfully integrated into the division. The formwork activity, Easiform, completedits first full year of operation in line with expectations, and we are pleasedwith the progress of this business. Piletec Dudley Vale also benefited from the upturn from AMP4 and deliveredrevenues above expectation. Our technical leadership in this field paiddividends, with the business being involved in many large contracts that haveprovided a consistent income stream. We will continue to build the Piletecbusiness capabilities with ongoing investment in high performance equipment. The reorganisation of Survey in the previous year proved effective, with thestreamlined business delivering a good performance. Further investment inhigh-tech survey fleet was completed as a result of important customer gains. We believe that all elements of Groundforce are capable of acquisitive growthshould the right opportunity arise. However, each element has the ability togrow organically and with new products, services and geographic expansionunderway, we expect a year of further progression and development. Hire Station Tools and specialist products for industry, construction and home owners. Turnover £44.9 million (2006: £41.9 million)Operating Profit £3.1 million (2006: £1.4 million)Investment in Rental Fleet £8.4 million (2006: £7.3 million) After a strong profit turnaround in the prior year, Hire Station, made furtherexcellent progress. Full year operating profits of £3.1 million were 118% up onprior year on revenues, up 7% at £44.9 million. The majority of the revenuegrowth was delivered organically, although there was a valuable five monthcontribution from MEP, following its acquisition in November. Midway Plant and Tool hire, based in Colchester was purchased in March 2007strengthening our distribution capability in Essex. After the year end, inApril, the business purchased Cool Customers, based in Derbyshire, specialisingin the hire and sale of air conditioning units, chillers and cooling equipment -this business has been successfully integrated into our Climate Hire operation,which was launched in the final quarter of the current financial year. The tools business has made further solid progress during the year, deliveringgood profit growth. Strong capital investment in our core stock items has helpeddrive revenues forward with stock availability being a key differentiator. Wewere pleased to achieve the environmental and quality accreditations (ISO 9001and ISO 14001), recognising the high levels of systems and controls that weoperate within the business. We have invested once again in additional resource at our national hire desk inManchester, as a result of an increase in customers expressing a preference totransact business through this centre. Revenues for the seasonal products were mixed; a very warm summer and excellentstock availability meant we significantly increased our cooling income, althoughthe relatively mild winter impacted heating equipment hire. Two new greenfieldsites have opened since the year end in Hull and Exeter, areas that weidentified as important to our national distribution network. The specialist lifting business, Lifting Point, performed well and we have nowintroduced satellite-stocking operations in all tool branches. This expansionhas delivered a 20% improvement in turnover in this product area, and more isexpected in the coming year. The specialist safety rental business, ESS Safeforce had an excellent year in abroadly supportive market, with strong performances from the hire, sales andconfined space training activities. During the year we opened a further centreat Andover for confined space training. We also enjoyed solid revenues from theoil and petro-chemical market supplying safety equipment and labour in supportof customers carrying out maintenance during temporary shutdowns. This is anarea we expect to grow further in 2007. In November 2006, we acquired Mechanical and Electrical Pressfittings Limited(MEP), a business based near Glasgow which specialises in the hire and sale ofelectrofusion and pressfitting tools to the mechanical, electrical and plumbingsectors. Trading in the five months subsequent to the acquisition was ahead ofexpectation. In the month following the acquisition, we relocated into a new8,500 sq ft building nearby to accommodate growth plans and the central hiredesk facility of the business. The first MEP distribution satellite has beenestablished at Heathrow. Since the year end we have established a tradinglocation in Dublin in response to local demand. The Climate Hire business was established in the final quarter of the year andwill specialise in four key product areas: Warm Air (heaters), Dry Air(dehumidifiers, airmovers), Cool Air (chillers, aircon units) and Clean Air(ozone units, air purifiers). As with Lifting Point, ESS Safeforce and MEP,Climate Hire is an additional specialist business which will complement thegeneral tool hire offer. The acquisition post year-end of Cool Customers is animportant development for the business. Airpac Bukom Oilfield Services Equipment and service providers to the international oil and gas exploration anddevelopment markets. Revenue £10.0 million (2006: £5.0 million)Operating Profit £2.4 million (2006: £1.2 million)Investment in Rental Fleet £2.5 million (2006: £0.8 million) During the year our oilfield services division successfully integrated thebusiness of Bukom Oilfield Services, which was acquired in March 2006. Thecombined business continued to enjoy the benefit of healthy demand across itsprimary markets and in this challenging year produced a very satisfactoryresult. The business delivered a 90% increase in profits to £2.4 milliongenerated from revenues which doubled at £10.0 million. Oil company expenditure held at a healthy level, driven by the continuedstrength of the oil price and global oil and gas demand. The demand for oilfieldsupport services has in turn remained high, with the expanded business in aposition to take advantage of these opportunities. The early months of the year saw a smooth integration of the Bukom business interms of fleet, personnel, bases and systems across our facilities in the UK andSingapore. The management team of the combined business has been furtherstrengthened, with a number of key appointments made to support the futuregrowth of the business. The focus of the Bukom offering was historically in support of internationalwell testing operations, and this has become the primary market for the enlargedbusiness. As anticipated, our position in the Asia Pacific region hasstrengthened and we now have improved access to markets in Africa, North andSouth America and the Middle East. The addition of new products such as sandfilters, heat exchangers and coflexip hoses to the fleet has broadened ourservice offering to our clients. We saw high demand for the provision of our specialist compressors to largecontractors conducting maintenance and modification work on the offshoreplatform infrastructure, primarily in the North Sea. Our high pressure fleet wasinvolved on a number of important pipeline related works during the year. Taking account of the combined resources of the enlarged business, we haveembarked upon a significant capital investment programme which will achievemarked growth in the fleet over the coming year. At the same time several keycustomer support initiatives involve developing our present network offacilities and our plans in this regard are well progressed. We anticipateopening further hub locations for the business in support of the Australian,Middle East and South American markets by the end of summer 2007. The market fundamentals and outlook remain positive. The strength of ourexpanded organisation, enhanced product offering, broader geographic exposureand our fleet and network expansion initiatives place us in a good position todevelop the business further during the coming year. UK Forks Rough terrain material handling equipment for industry, residential and generalconstruction. Revenue £13.9 million (2006: £14.3 million)Operating Profit £1.4 million (2006: £2.1 million)Investment in Rental Fleet £3.4 million (2006: £3.1 million) UK Forks had a challenging year, with activity levels subdued in the first ninemonths, but picking up strongly in the final quarter. Revenues of £13.9 millionproduced operating profits of £1.4 million, £0.7 million lower than the prioryear. The ongoing consolidation in the housebuilding sector created some volatility.Whilst volumes in the South East were disappointing for most of the year, thisperformance reversed in the final quarter. Further progress was also made witha number of national accounts, particularly in general construction, a growthsector targeted by the business. Fleet size remained broadly static at over 1,200 machines. However, investmentof £3.4 million enabled product mix improvement, reflecting increased demand fortelehandlers at both ends of the size spectrum. In construction, tighter accesswithin sites created demand for smaller machines up to 6 metres and the largerrotational telehandlers up to 25 metres. In housebuild, the continuedpopularity of flats and apartments (representing nearly 50% of housebuildingstarts in the UK in 2006) meant that standard products up to 17 metres were indemand. The year finished strongly in the final quarter, and with activity levels at thestart of the new financial year maintaining that momentum, prospects for thebusiness going forward are much improved. TPA Portable roadway systems, bridging, fencing and barriers primarily to the UKmarket, but also in the Republic of Ireland and mainland Europe. Revenue £11.4 million (2006: £2.5 million)Operating Profit £1.0 million (2006: £(0.3) million)Investment in Rental Fleet £4.7 million (2006: £1.1 million) TPA completed its first full year as part of the Vp Group, delivering operatingprofit of £1.0 million on revenues of £11.4 million. The summer period provedbuoyant with strong demand from both the events and transmission markets. Thedemand during the winter period reduced, an historic trend, with a general lackof activity in the transmission market, and a challenging trading environmentfor the barriers business. In further developing the business, a satellite facility in Scotland was openedin the year, enabling a more efficient service to the local market. In additionwe established TPA in Germany with the formation of a German subsidiary whichwill act as a platform for further expansion into mainland Europe. Bothventures performed well in the first year of operation. We also relocated thebarriers business to improved premises in Croydon during the year. Investmentin the fleet has continued strongly to ensure that TPA maintains its quality andmarket leading offer to the marketplace. A new lightweight roll-out roadway,MD40 has been developed and will be launched in the new financial year. The markets within which TPA operates remain broadly supportive. In particular,the announcement by the National Grid in October 2006 of a major five yearprogramme of investment to upgrade and develop the electricity transmissionsnetwork across England and Wales is likely to act as a valuable longer termmarket driver, albeit that regulated spend of this type can be unpredictable interms of timing. The outdoor events market in the UK remains stable and weexpect it to deliver further potential opportunities. Torrent Trackside Infrastructure equipment and services for the railway renewals and maintenanceindustry. Revenue £13.1 million (2006: £12.1 million)Operating Profit £2.0 million (2006: £1.7 million)Investment in Rental Fleet £3.2 million (2006: £2.4 million) The year was one of further development in the railway renewals and maintenancemarket. Torrent performed well in this changing market, growing revenues by 8%to £13.1 million and delivering operating profit of £2.0 million, a 13.0%increase on the prior year. We have accelerated our plant replacement programme to ensure that the qualityof our equipment is the benchmark for the industry and to also reinforce ourreputation for introducing innovative products that further improve operationalsafety and production. These initiatives continue to strengthen our status inthis safety critical environment and Torrent continues to be regarded as a keysupplier in this specialist market. Our ongoing systems development programme provides Torrent with an advantage inthe supply of quality operational data to our major customers, helping them toreduce costs and improve production in a manner which is safe. Overall, the business remains well positioned to participate in Network Rail'songoing rail expenditure programme and to further support the London Undergroundas it works towards the 2012 Olympics. Prospects We remain ambitious to further enhance the quality track record established overrecent years and have the resource and management capability to deliver on thatambition. In order to maintain profitable growth, we recognise that investmentin people and infrastructure is essential. We have successfully developed abreadth of business activities which we believe provides a resilient and strongplatform for future growth. Neil StothardGroup Managing Director7 June 2007Financial Highlights Consolidated Income StatementFor the year ended 31 March 2007 Note 2007 2006 £000 £000 Revenue 1 121,607 99,396 Cost of sales (84,897) (72,092) Gross profit 36,710 27,304 Administrative expenses (20,459) (15,842) Operating profit before other income 16,251 11,462 Other income - property profit 257 - Operating profit 1 16,508 11,462Financial income 125 188Financial expense (2,154) (978) Profit before taxation 14,479 10,672 Taxation 5 (3,998) (3,070) Net profit for the year 10,481 7,602 Pence PenceBasic earnings per 5p ordinary share 2 24.50 17.49Diluted earnings per 5p ordinary share 2 23.34 16.83Dividend per 5p ordinary share paid and proposed 6 8.25 6.60 Consolidated Statement of Recognised Income and ExpenseFor the year ended 31 March 2007 Note 2007 2006 £000 £000 Actuarial gains on defined benefit pension schemes 411 231 Tax on items taken directly to equity (123) (67) Effective portion of changes in fair value of cash flowhedges 366 (89) Foreign exchange translation difference (1) - Net income recognised direct to equity 653 75 Profit for the year 10,481 7,602 Total recognised income and expense for the year 3 11,134 7,677 Consolidated Balance Sheet As at 31 March 2007 Note 2007 2006 (Restated) £000 £000ASSETS Non-current assets Property, plant and equipment 76,797 66,041 Intangible assets 35,909 34,133Total non-current assets 112,706 100,174 Current assetsInventories 4,814 3,119Income tax receivable - 34Trade and other receivables 30,112 28,185Cash and cash equivalents 4 6,662 5,578Total current assets 41,588 36,916Total assets 154,294 137,090 LIABILITIESCurrent liabilitiesInterest bearing loans and borrowings 4 (7,535) (2,148)Income tax payable (1,500) (1,183)Trade and other payables (31,698) (21,744)Total current liabilities (40,733) (25,075) Non-current liabilitiesInterest bearing loans and borrowings 4 (35,677) (36,062)Employee benefits (2,048) (2,894)Other payables (4,240) (7,930)Deferred tax liabilities (6,004) (4,806)Total non-current liabilities (47,969) (51,692)Total liabilities (88,702) (76,767) Net assets 65,592 60,323 EQUITYIssued share capital 2,309 2,309Share premium account 16,192 16,192Hedging reserve 277 (89)Retained earnings 46,787 41,884Total equity attributable to equity holders of the parent 65,565 60,296Minority interests 27 27Total equity 3 65,592 60,323 The restatement of the prior year relates solely to refinements to theaccounting for acquisitions.Consolidated Cash Flow Statement For the year ended 31 March 2007 2007 2006 £000 £000Cash flow from operating activitiesProfit before taxation 14,479 10,672 Pension fund contributions in excess of service cost (435) (791) Share based payment charge 1,000 292 Depreciation 14,093 12,224 Intangible amortisation 25 4 Financial expense 2,154 978Financial income (125) (188)Profit on sale of property, plant and equipment (3,307) (2,275)Operating cashflow before changes in working capital 27,884 20,916Increase in inventories (1,458) (559)Increase in trade and other receivables (1,131) (579)Increase in trade and other payables 4,599 2,832Cash generated from operations 29,894 22,610Interest paid (1,930) (710)Interest element of finance lease rental payments (155) (111)Interest received 125 188Income tax paid (2,890) (3,120)Net cash flow from operating activities 25,044 18,857 Cash flow from investing activities Disposal of property, plant and equipment 8,966 6,181Purchase of property, plant and equipment (26,746) (15,506) Acquisition of businesses (4,375) (28,964)Net cash flow from investing activities (22,155) (38,289) Cash flow from financing activities Purchase of own shares by Employee Trust (3,671) (1,073) Repayment of borrowings (156) (8,000) Repayment of loan notes (941) (125) Proceeds from new loans 7,000 33,500 Capital element of hire purchase/finance lease agreements (1,105) (2,475) Dividends paid (2,932) (2,572) Net cash flow from financing activities (1,805) 19,255 Increase/(decrease) in cash and cash equivalents 1,084 (177) Cash and cash equivalents at the beginning of the year 5,578 5,755 Cash and cash equivalents at the end of the year 6,662 5,578 NOTES The final results have been prepared on the basis of the accounting policieswhich are to be set out in Vp plc's annual report and accounts for the yearended 31 March 2007. EU Law (IAS Regulation EC1606/2002) requires that the consolidated accounts ofthe group for the year ended 31 March 2007 be prepared in accordance withInternational Financial Reporting Standards ("IFRSs") as adopted for use in theEU ('adopted IFRSs'). The financial information set out above does not constitute the Company'sstatutory accounts for the years ended 31 March 2007 or 2006. The statutoryaccounts for 2006 have been delivered to the Registrar of Companies and thosefor 2007 will be delivered following the Company's Annual General Meeting. Theauditors have reported on these accounts; their reports were unqualified and didnot contain a statement under section 237 (2) or (3) of the Companies Act 1985. The financial statements were approved by the board of directors on 6 June 2007. 1. Business Segments Revenue Depreciation Operating profit/ and (loss) amortisation 2007 2006 2007 2006 2007 2006 £000 £000 £000 £000 £000 £000Groundforce 28,119 23,542 2,510 2,313 6,384 5,258UK Forks 13,933 14,307 2,347 2,416 1,407 2,071Airpac Bukom 10,033 4,997 1,324 757 2,360 1,242Hire Station 44,931 41,937 4,584 4,531 3,121 1,433Torrent Trackside 13,149 12,134 1,686 1,485 1,954 1,733TPA 11,442 2,479 1,272 428 1,025 (275)Group - - 395 298 257 -Total 121,607 99,396 14,118 12,228 16,508 11,462 Group costs have been allocated across the trading divisions and included abovewith the exception of the £257,000 property profit which is shown at Grouplevel. 2. Earnings Per Share Basic earnings per share is based on the profit after taxation of £10,481,000(2006: £7,602,000) and the weighted average number of 5p ordinary shares inissue during the year of 42,780,000 (2006: 43,460,000). 2007 Weighted 2006 Weighted Average Shares Earnings per Earnings Average Shares Earnings per Earnings £000 Number 000's share pence £000 Number 000's share pence Basic earnings 10,481 42,780 24.50 7,602 43,460 17.49 Share options - 2,133 - - 1,697 - Diluted earnings 10,481 44,913 23.34 7,602 45,157 16.83 3. Consolidated Statement of Changes in Equity 2007 2006 £000 £000 Total recognised income and expense for the year 11,134 7,677Dividends paid (2,932) (2,572)Net movement in shares held by Vp Employee Trust at cost (3,671) (1,073)Share option charge in the year 1,000 292(Losses)/gains on disposal of shares (240) 80Tax movements on equity (22) 489 Change in Equity 5,269 4,893Equity at start of year 60,323 55,430 Equity at end of year 65,592 60,323 4. Analysis of Debt At At 31 March 1 April 2007 2006 £000 £000 Cash and cash equivalents (6,662) (5,578)Current debt 7,535 2,148Non current debt 35,677 36,062 Net debt 36,550 32,632 Year end gearing (calculated as net debt expressed as a percentage ofshareholders' funds) stands at 56% (2006: 54%). 5. Taxation The charge for taxation for the year represents an effective tax rate of 27.6%(2006: 28.8%). The effective tax rate excluding adjustments in respect of prioryears is 29.4% (2006: 29.6%). 6. Dividend The Board has proposed a final dividend of 6.00 pence per share to be paid on 1October 2007 to shareholders on the register at 7 September 2006. This,together with the interim dividend of 2.25 pence per share paid on 11 January2007 makes a total dividend for the year of 8.25 pence per share. 7. Annual Report and Accounts The Annual Report and Accounts for the year ended 31 March 2007 will be postedto shareholders on or about 27 July 2007. 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