RNS Number:4228Q
Whatman PLC
19 March 2008
19 March 2008
Whatman plc
Audited Results for the Year Ended 31 December 2007
Whatman plc announces its audited results for the year ended 31 December 2007.
Financial results
Exchange rates
Actual Constant Actual
2007 2006 2006
�m �m �m
Sales 115.5 115.6 120.9
Underlying operating profit 24.1 26.8 27.8
Non-recurring items (12.9) 8.1 8.0
Operating profit 10.7 34.4 35.3
Profit after tax 6.3 24.4 24.9
Cash generated from operations 24.5 n/a 23.2
Underlying basic earnings per share (pence per 12.62p 14.37p 14.75p
share)
Basic earnings per share (pence per share) 4.79p 18.60p 19.03p
Order intake 122.6 115.5 119.0
Financial highlights
* Revenue1 flat at �115.5 million (2006: �115.6 million)
* Order intake1 �122.6 million (2006: �115.5 million)
* Order book1 �15.9 million (2006: �11.0 million)
* Underlying operating profit2 �24.1 million (2006: �26.8 million)
* Underlying effective tax rate2 28% (2006: 28%)
* Underlying basic earnings per share2,3 12.62p (2006: 14.37p)
Statutory results
* Revenue �115.5 million (2006: �120.9 million)
* Operating profit �10.7 million (2006: �35.3 million)
* Profit before tax �9.7 million (2006: �34.6 million)
* Profit after tax �6.3 million (2006: �24.9 million)
* Basic earnings per share 4.79p per share (2006: 19.03p)
Operating highlights
* Recommended offer by GE Healthcare Life Sciences Limited announced on
* 4 February 2008, proceeding in line with our expectations
* Strategic review announced in September, on track
* Technology partnerships entered into with QIAGEN, g-Nostics and
* NovioGendix for personalised medical applications
* Joint Venture in China commenced trading on 2 July
* Launch of EasiCollect product for forensics and diagnostics markets
Commenting on the results, Kieran Murphy, Chief Executive Officer of Whatman,
said:
"The implementation of our strategic review and the upgrades to our sales and
marketing delivered real improvements resulting in much stronger trading in the
second half of the year. Whilst manufacturing and supply chain issues continue
to be a source of considerable management focus, the much higher order book
position at the close of the year gives us good reason for cautious optimism as
we enter 2008. The proposed acquisition by GE Healthcare will provide us with
their additional resources and business process expertise which will be of
considerable support to us in delivering the strategic plan."
1. At constant exchange rates.
2. Underlying operating profit is defined as operating profit from continuing
operations before non-recurring items and the amortisation of intangibles.
The Board believes underlying operating profit provides additional useful
information to shareholders on the Group's underlying business performance.
A reconciliation to the statutory reported operating profit is set out in
note 3. The figures are stated at constant exchange rates.
3. Underlying basic earnings per share is based on the underlying profit
attributable to ordinary shareholders.
For any enquiries in relation to this statement please contact:
Enquiries:
Whatman plc Tel: +44 1622 676670
Kieran Murphy, Chief Executive Officer
Chris Rickard, Finance Director
Financial Dynamics
David Yates / Lara Mott Tel: +44 207 831 3113
Chairman's Statement
Introduction
I joined the Group as Chairman in December to assist the Board and the executive
management team to implement the strategic review which was announced in
September. A fuller explanation of the strategic review is provided in the
Business Review.
On 4 February 2008, the Group announced that it had reached agreement on the
terms of an acquisition by GE Healthcare Life Sciences Limited ("GEHL"), which
has been unanimously recommended by the Board of Directors. Shareholders will
have already received details of the proposed acquisition and, provided all the
requisite shareholder and regulatory approvals are obtained, GEHL will acquire
the Group as it enters a critical phase of its development. The additional
resources of GEHL will be of valuable support to the Group during this time.
The Directors believe the recommended offer is in the best interests of the
shareholders and all other stakeholders of the Group.
Highlights
The strategic review announced in September 2007 is focused on achieving
operational excellence, sustainable high single digit organic sales growth and
increased investment in research and development in order to leverage existing
assets and extend product uses and usage. The manufacturing footprint
realignment is designed to provide centres of excellence in core manufacturing
areas of paper and membrane manufacture and allow the Group to expand into the
fast growing markets in China and other parts of Asia.
The gross cash costs of the strategic plan are expected to be in the order of
�31 million, of which approximately �16 million will be recouped by asset sales,
making the net cost of the plan approximately �15 million. In addition, during
the year non-recurring charges of �12.9 million (excluding �0.1 million of
finance costs) were incurred, which are separate to the future costs of the
strategic plan. Further details of non-recurring items are provided in the
Business Review.
Our Chinese joint venture, Whatman-Xinhua Limited, commenced operations in July
and is trading in line with expectations. We have started construction work on
the new manufacturing facility in China and have placed an order for a new 3,000
tonne capacity cellulose paper machine. The new manufacturing facility will
significantly increase our production capacity in China and is expected to be
completed by the end of 2008.
As well as the Chinese joint venture, two major technology partnerships were
secured in 2007 that strengthen our reach into valuable diagnostic markets.
A non-exclusive distribution partnership was announced in May with QIAGEN, the
worldwide leading provider of sample and assay technologies for research in life
sciences, applied testing and molecular diagnostics. QIAGEN has acquired the
right to market and sell existing Whatman FTA products as well as customised
products for an initial fee, plus royalties on the sale of all products that
incorporate the use of FTA.
We also signed a partnership agreement with g-Nostics Ltd - a spinout from the
University of Oxford - to combine our technologies to develop NicoTest, a
personalised diagnostic to aid therapies aimed at stopping smoking. Each
company will pool their intellectual property (IP) to develop a personalised
diagnostic test to determine the optimum dose of nicotine that is safe to use.
We successfully completed the development of the FTA based buccal device,
EasiCollect, which will enable easier collection of DNA from suspects. The
device is currently undergoing trials in the US forensic and diagnostics
markets.
Financial results
The statutory results have been prepared in accordance with International
Financial Reporting Standards ("IFRS"), as explained in note 1.
Revenue Underlying operating profit Operating profit
2007 2006* 2006 2007 2006* 2006 2007 2006
�m �m �m �m �m �m �m �m
H1 53.7 58.1 61.8 10.1 12.8 14.1 4.5 14.6
H2 61.8 57.5 59.1 14.0 14.0 13.7 6.2 20.7
_____ _____ _____ _____ _____ _____ _____ _____
Year 115.5 115.6 120.9 24.1 26.8 27.8 10.7 35.3
_____ _____ _____ _____ _____ _____ _____ _____
* At constant exchange rates.
Group revenue of �115.5 million was flat compared to last year at constant
exchange rates (2006: �115.6 million). Reported statutory revenue in 2006 was
�120.9 million, the reduction of �5.3 million at constant exchange rates being
principally due to the weakening of the US dollar against sterling during the
year.
Although sales were flat overall for the year, the implementation of our
strategic review and the upgrades to our sales and marketing have delivered real
improvements resulting in much stronger trading in the second half of the year.
Revenue was 7% higher in the second half compared to 2006, at constant exchange
rates.
Underlying operating profit for the year, stated before non-recurring items and
amortisation, was �24.1 million (2006: �26.8 million, at constant exchange
rates), a reduction of �2.7 million or 10% compared to 2006. This reduction was
largely due to adverse manufacturing and supply chain issues. The stronger
trading in the second half of the year has led to an increase in underlying
operating profit in the second half to �14.0 million (2006: �14.0 million, at
constant exchange rates). The order book at the end of the year was 44% higher
than at the end of 2006 (at constant exchange rates).
The statutory operating profit for the year was �10.7 million (2006: �35.3
million), which is stated after deducting non-recurring items of �12.9 million.
This compares to a profit and loss account credit of �8.0 million for
non-recurring items in 2006. Further details of these items are provided in the
Business Review.
Operating cash flow remains strong at �24.5 million (2006: �23.2 million) and
has benefited from favourable working capital movements in 2007.
Dividend
The Board increased the interim dividend by 4% to 2.18 pence per share. The
terms of the offer from GEHL were made on the basis that no final dividend would
be declared or paid.
Board changes
The year has seen a number of changes to the Board of Directors. Bob Thian, my
predecessor as Chairman, stepped down in December and the Board would like to
record its thanks to him for his contribution during his five years with the
Group.
Earlier in the year, the Chief Executive Officer, Chief Operating Officer and
Finance Director all left the Group and have been succeeded by Kieran Murphy
(Chief Executive Officer) and Chris Rickard (Group Finance Director).
Additionally, David Evans and Tom McNally resigned as Non-Executive Directors
and we welcomed Jeff Hewitt as a Non-Executive Director. I would like to thank
those who have left the Group in the year for their service to the Group and
wish those who have joined every success in their new roles.
I would also like to thank the entire executive and non-executive team for their
hard work during what has been a challenging year.
Employees
2007 has been a year of considerable change and I would like to thank all of the
Group's employees for their continuing efforts and achievements during the year.
I would also like to welcome all of the new employees who have joined us in
China working for our joint venture.
Outlook
The positive momentum which has been achieved in the second half of 2007 is
encouraging, as is our strong closing order book going into 2008 and we enter
the new year with much optimism.
The Board has a high level of confidence in the strategic review and believes
its objectives are robust. The responsibility for the delivery of the plan is
expected to pass to GEHL during 2008, assuming appropriate shareholder and court
approvals, together with the necessary regulatory clearances are obtained.
There is no doubt that the resources and business process expertise of GEHL will
be of considerable support to the management team in successfully enhancing the
ability of the Group in providing high quality, high value products to the life
sciences market.
Michael Harper
Chairman
19 March 2008
Business Review
Highlights
In September we announced the completion of our strategic review, and the Board
has approved a three phase strategic plan to improve the operational performance
of the Group over a three year period. The strategic review is discussed further
below under Strategy.
Our Chinese joint venture, Whatman-Xinhua Limited, started trading in July and
we have commenced construction work on the new manufacturing facility in Tonglu,
near Shanghai. The new manufacturing facility, which will significantly increase
our cellulose paper production capacity in China, is expected to be completed by
the end of 2008.
Whatman's proprietary FTA technology continues to provide a platform for future
growth. We signed a licensing deal with Qiagen in 2007 and secured two
technology partnerships that strengthened our reach into valuable diagnostic
markets. We signed an agreement with g-Nostics which pools our FTA Technology
with their DNA based algorithms to create a personalised diagnostic test to aid
smoking cessation therapies. Additionally, we have teamed up with NovioGendix
to offer a self-test for cervical cancer that analyses proteins in the
bloodstream to identify pre-symptomatic problems. These partnerships show the
importance of our FTA technology to the Group's future growth.
Strategy
The strategic review comprises three distinct phases. The first phase is
designed to achieve operational excellence and cost reduction, including
improving customer service and those manufacturing and supply chain processes
and procedures where we have identified that improvements are required. The
second phase of the strategic review is to achieve sustainable organic sales
growth and the third phase is to invest in research and development in order to
leverage existing assets and extend product applications, usage and customer
base.
Operational excellence
The operational excellence phase began with the TOP Project (Transforming
Operational Performance) and represents a strategy to stabilise our existing
operations and improve our current profitability. Its short-term objectives
include the changing of our manufacturing footprint and supply chain policies so
that we can eliminate the causes of backorders, enhance customer service and
manage our inventory levels more effectively.
Sustainable business growth
Phase two is intended to create sustainable high single digit top line revenue
growth by strengthening our core products and by developing new applications for
our existing products in the LabSciences and BioScience markets. We also intend
to exploit our new membrane assets, including the technologies' superior
physical properties and wide range of high-value applications.
Investment in R&D and licensing
The third phase focuses on investment in research and development and increased
licensing activity to expand our portfolio of intellectual property. The aim is
to position ourselves in high-growth, high-margin markets for diagnostics and
personalised medicine by leveraging our strength in surface modification,
surface chemistries and separation and concentration techniques. Our products
are key components in diagnostic applications, such as oncology cell capture
assays used in diagnosing cervical and bladder cancer.
We expect our R&D spend will increase from 3% to 5% of sales by 2011 as we
expand our relationship with leading diagnostic industry players and focus on
new products and applications.
Segment performance
The Group operates in three business segments; LabSciences, BioScience and
MedTech. The Group services these segments with manufacturing sites in North
America, the UK and Germany. Our own sales forces in North America, Europe, Asia
and Japan are supplemented by our sales representatives and distributors in
other geographical locations so that worldwide we cover more than 70 countries.
The table below provides a segmental analysis of the revenue and underlying
operating profit at constant exchange rates.
Revenue Underlying operating profit Operating profit
2007 2006* 2006 2007 2006* 2006 2007 2006
�m �m �m �m �m �m �m �m
LabSciences 68.1 66.1 69.4 19.2 18.7 19.3 12.4 18.5
BioScience 29.5 30.4 31.5 4.2 5.7 5.9 2.6 14.2
MedTech 17.9 19.1 20.0 0.7 2.4 2.6 (0.6) 2.6
Unallocated - - - - - - (3.7) -
_____ _____ _____ _____ _____ _____ _____ _____
Total Group 115.5 115.6 120.9 24.1 26.8 27.8 10.7 35.3
_____ _____ _____ _____ _____ _____ _____ _____
* At constant exchange rates.
In the commentary below, 2007 performance has been compared to 2006 at constant
exchange rates to make the comparison more meaningful.
LabSciences
LabSciences' revenues were �68.1 million (2006: �66.1 million), an increase of
3% compared to last year. At the half year revenue was down 2%. However, the
order book at 31 December 2007 had increased 19%, with increases in all product
areas compared to 31 December 2006.
Year-on-year revenue growth was consistent across the entire range of
LabSciences' products, which focus on the preparation of analytical samples. The
exception was membranes - where validation issues hampered our ability to fulfil
some customer orders - and chromatography, which is a cyclical business.
BioScience
Revenues in BioScience were down 3% compared to 2006 on a like for like basis,
with a strong performance in the second half of the year having been 18% down at
the half year point. The first half reduction was due largely to the large
orders executed in 2006 from the French Police and French Gendarmerie Nationale
of FTA Cards for the collection and transportation of buccal cell samples for
forensic investigations. The sales in the first half of 2006 included a
significant proportion of the French Police's requirements for 2007 and so the
level of sales made in 2007 were reduced accordingly.
The order book for FTA was up 300% at 31 December 2007 compared to 31 December
2006. Sales growth of almost 40% was also achieved in 903, the neo natal
collection device in the USA and the order book for the 903 product at the year
end was up 50% on prior year.
Overall the order book for BioScience at the year end was up 45% compared to 31
December 2006.
MedTech
Sales in the MedTech were down 6% compared to 2006, primarily due to phasing of
orders of pleated encapsulated devices. However, we entered 2008 with an order
book 74% ahead of last year.
Operations
Whatman is known throughout the world for its expertise in separations
technology for analytical laboratories, bioscience and healthcare applications.
Our goal is to provide superior solutions that are reliable, trusted, innovative
and internationally competitive.
Following our strategic review we have identified areas, including customer
service, manufacturing and supply chain, where our processes and procedures need
to be improved. The first phase of our strategic plan, to achieve operational
excellence and cost reduction, is designed to address these areas and we are now
taking action to stabilise operations and restore customer service levels.
Our strategy is to streamline our manufacturing footprint to create centres of
excellence in our core manufacturing areas of paper and membranes.
Our warehousing and logistics operations will also be streamlined to match that
of our manufacturing footprint. This will reduce costs considerably as well as
reducing the time spent getting product to the marketplace, and improving our
customer service and on-time delivery performance.
Our Chinese joint venture, Whatman-Xinhua Limited, with Hangzhou Xinhua Paper
Industry Co Ltd., started trading on 2 July 2007. We have commissioned the
manufacture of a new 3,000 tonne cellulose paper machine for delivery in late
2008 and have commenced construction work on our new manufacturing facility in
Zhejiang Hangzhou Tonglu. Together, these will significantly increase our
production capacity in China and are both expected to be completed by the end of
2008. We refer to Whatman-Xinhua Limited as a joint venture which reflects the
commercial business arrangement we have with our partner, however the company
qualifies as a subsidiary under International Financial Reporting Standards and
accordingly it is consolidated in our Group financial statements.
As well as giving us a key manufacturing presence in the increasingly important
Chinese market, this strategic partnership also benefits from the fact it was
both a business that came as a going concern and a market-leading brand. The
local speaking sales team are an asset in the Chinese market, giving us the
ability both to sell our existing Whatman products in China and to manufacture a
lower cost range of paper products.
In addition, we have commenced upgrading our sales and marketing efforts to
improve our routes to market and our customer interface enabling us to
strengthen our franchise in the LabSciences market.
Financial review
Business performance
The three-phase strategic review in 2007 is designed to restore customer service
performance to an acceptable level through operational stability, while building
on a strong revenue base and strong financial position. A number of short term
objectives have been identified, including eliminating the causes of backorders
and managing more effectively our inventory levels.
The Company's strategic financial goals remain the targeting of enhanced sales
and margin improvement as well as an increase in research and development
expenditure to expand the product range and number of product applications.
Set out below is a table which highlights the financial results for the year and
sets out a reconciliation between operating profit and underlying operating
profit. Underlying operating profit is defined as operating profit from
continuing operations before non-recurring items and the amortisation of
intangibles. Non-recurring items represent significant items of income and
expense which due to their nature or the expected infrequency of the events
giving rise to them are highlighted to help provide a better indication of the
Group's underlying business performance. They include, but are not limited to,
impairments of fixed assets, sales of fixed assets, restructuring costs,
integration costs, provision for onerous contracts and stock write-offs.
The figures presented for 2006 include those based on constant exchange rates to
provide a like for like comparison with the 2007 results.
Exchange rates
Actual Constant Actual
2007 2006 2006
�m �m �m
Revenue 115.5 115.6 120.9
Underlying cost of sales (60.7) (58.3) (61.3)
_____ _____ _____
Underlying gross profit 54.8 57.3 59.6
Other operating income - 0.7 0.7
Underlying operating expenditure (30.7) (31.2) (32.5)
_____ _____ _____
Underlying operating profit 24.1 26.8 27.8
Non-recurring items and amortisation
Non-recurring items (12.9) 8.1 8.0
Amortisation of intangibles (0.5) (0.5) (0.5)
_____ _____ _____
Operating profit 10.7 34.4 35.3
_____ _____ _____
Revenue
Group revenue of �115.5 million was flat compared to last year at constant
exchange rates (2006: �115.6 million). Reported statutory revenue in 2006 was
�120.9 million, the reduction of �5.3 million at constant exchange rates is
principally due to the weakening of the US dollar against sterling during the
year.
Although sales were flat overall for the year, the implementation of our
strategic review and the upgrades to our sales and marketing have delivered real
improvements resulting in much stronger trading in the second half of the year.
Revenue was 7% higher in the second half compared to 2006. Our order intake for
the year (measured at constant exchange rates) was �122.6 million (2006: �115.5
million), a 6% increase. At the year end our order book was up by 44% compared
to December 2006.
Gross profit
Statutory gross profit was �52.7 million (2006: �56.9 million). Underlying
gross profit for the year was �54.8 million (2006: �57.3 million at constant
exchange rates; �59.6 million at actual). We continued to experience
manufacturing and supply chain issues during the year, which has led to adverse
manufacturing variances reducing our gross margin, and we suffered from low
productivity in the early part of the year due to low sales requirements. We
have placed a considerable management focus on addressing our manufacturing and
supply chain issues.
Operating expenditure and other operating income
Sales and marketing costs increased to �18.3 million (2006: �16.7 million at
constant exchange rates; �17.5 million at actual). This reflects the upgrades
we have made during the year to our sales and marketing efforts following our
strategic review.
Investment in research and development increased to �3.0 million (2006: �2.8
million at constant exchange rates; �2.9 million at actual), amounting to 3% of
sales. We expect to further invest in research and development in the next
three years, so that by 2011 our research and development spend will amount to
5% of revenue.
Administrative expenses increased to �20.7 million (2006: �10.6 million at
constant exchange rates; �11.0 million at actual), the increase arising
principally from non-recurring items. Underlying administrative expenses,
excluding non-recurring items, were �12.0 million (2006: �12.4 million).
Other operating income was �nil (2006: �0.7 million). In 2006 there were
non-recurring items of �0.7 million.
Operating profit
The statutory operating profit for the year was �10.7 million (2006: �35.3
million), which is stated after deducting non-recurring items. Further details
of non-recurring items are set out in note 3. The operating profit margin was
9.3% (2006: 29.2%).
The underlying operating profit for the year, stated before non-recurring items
and amortisation, was �24.1 million (2006: �26.8 million at constant exchange
rates; �27.8 million at actual), a reduction of �2.7 million or 10% compared to
last year. The underlying operating margin was 20.9% (2006: 23.2%). The
reduction in underlying operating profit and underlying profit margin arose
principally from reduced gross profit and margin in the year.
Finance income and expense
Interest payable and similar charges in the year were �4.8 million (2006: �4.4
million). Interest payable on bank borrowings of �1.3 million (2006: �1.3
million) was covered 21.5 times (2006: 20.0 times) by underlying operating
profit.
Interest receivable during the year was �3.8 million (2006: �3.7 million).
Income tax expense
Income tax expense for the year was �3.4 million (2006: �9.7 million). The
underlying effective tax rate for the Group, at constant exchange rates, was 28%
(2006: 28%). The effective tax rate was 35% (2006: 28%), which has increased
due to deferred tax losses of �0.9 million incurred from restructuring
activities not being recognised.
There is a deferred tax asset of �2.3 million (2006: �2.9 million) recoverable
against future profits.
Earnings per share
Basic earnings per share was 4.79 pence per share (2006: 19.03 pence per share),
a decrease of 75%. Diluted earnings per share was 4.78 pence per share (2006:
18.73 pence per share), a decrease of 74%.
Underlying basic earnings per share, adjusted for non recurring items and
amortisation, was 12.62 pence per share (2006: 14.75 pence per share) and
underlying diluted earnings per share was 12.59 pence per share (2006: 14.52
pence per share).
Underlying basic earnings per share at constant exchange rates was 12.62 pence
per share (2006: 14.37 pence per share), a decrease of 12%.
Dividend
The terms of the offer from GEHL were made on the basis that the Board did not
declare or pay a final dividend.
Cash flow
Cash and cash equivalents decreased by �5.4 million to �9.8 million at 31
December 2007.
Cash inflow from operating activities was �24.5 million (2006: �23.2 million).
This arose largely from the operating profit performance for the year together
with the benefit of favourable working capital movements in the year. As a
percentage of underlying operating profit, underlying operating cash flow was
122% (2006: 91%). The improvement was principally a result of favourable
working capital movements. Our working capital to sales ratio has improved to
22% (2006: 24%).
Net cash used in investing activities was �4.1 million (2006: �3.8 million).
This includes capital expenditure on property, plant and equipment of �3.4
million (2006: �5.9 million) and �0.8 million in 2007 from the cost of acquiring
our 75% holding of Whatman-Xinhua Limited. Further details of this acquisition
are set out in note 5 to the financial statements.
Net cash used in financing activities was �15.6 million (2006: �13.7 million),
which in 2007 includes an outflow from the repayment of our existing borrowing
facilities of �31.7 million and an initial drawdown of our new facility of �22.5
million.
Liquidity
During the year we have re-negotiated our banking facilities to facilitate our
restructuring and share buy-back programmes. The new facility has looser
covenants and slightly better pricing and gives the Group a new five-year
revolving credit facility of �80 million.
At 31 December 2007 the Group's net debt position has reduced by �1.7 million to
�13.2 million (2006: �14.9 million) and the Group had �57.0 million (2006: �15.6
million) of undrawn committed borrowing facilities. The new facility has
financial covenants that require the Group to maintain certain ratios calculated
in accordance with the facility agreement as follows:
At Covenant
31 December at
2007 31 December 2007
Net debt/EBITDA 0.5 Less than or equal to 3.5
Interest cover 21.5 Greater than or equal to 3.5
Debt Service cover 18.6 Greater than or equal to 2.0
As shown above, we are in compliance with these covenants at 31 December 2007.
Other matters
This Business Review has been prepared for and only for the members of the
Company as a body and no other persons. Its sole purpose is to assist
shareholders to assess the Company's strategies and the potential for those
strategies to succeed. The Company, its Directors, employees, agents or advisers
do not accept or assume responsibility for any other purpose or to any other
person to whom this document is shown or into whose hands it may come and any
such responsibility or liability is expressly disclaimed.
This Business Review contains forward-looking statements that are subject to
risk factors associated with, amongst other things, the economic and business
circumstances in the countries, sectors and markets in which the Group operates.
These and other factors could adversely affect the outcome and financial effects
of the plans and events described. Forward-looking statements by their nature
involve a number of risks, uncertainties and assumptions because they relate to
events and/or depend on circumstances that may or may not occur in the future
and could cause actual results and outcomes to differ materially from those
expressed in or implied by the forward-looking statements.
It is believed that the expectations reflected in these statements are
reasonable but they may be affected by a wide range of such variables. No
assurances can be given that the forward-looking statements in this Business
Review will be realised. The forward-looking statements reflect the knowledge
and information available at the date of preparation and will not be updated
during the year but will be considered in the Business Review for next year.
This Business Review has not been audited or otherwise independently verified.
Income statement
for the year ended 31 December 2007
Group
2007 2006
Note �m �m
Revenue 2 115.5 120.9
Cost of sales (62.8) (64.0)
_____ _____
Gross profit 52.7 56.9
Other operating income - 0.7
Sales and marketing expenses (18.3) (17.5)
Research and development costs (3.0) (2.9)
Administrative expenses 4 (20.7) (11.0)
Biometra provision release - 9.1
_____ _____
Operating profit 10.7 35.3
_____ _____
Analysed as:
Underlying operating profit 24.1 27.8
Non-recurring items 3 (12.9) 8.0
Amortisation of intangible assets (0.5) (0.5)
_____ _____
Operating profit 10.7 35.3
_____ _____
Finance costs (4.8) (4.4)
Finance income 3.8 3.7
_____ _____
Profit before taxation 9.7 34.6
Income tax charge 6 (3.4) (9.7)
_____ _____
Profit for the year attributable to equity shareholders 6.3 24.9
_____ _____
Earnings per share (expressed in pence per share)
- Basic 8 4.79p 19.03p
- Diluted 8 4.78p 18.73p
The notes on pages 16 to 24 form an integral part of the preliminary
announcement.
Statement of recognised income and expense
for the year ended 31 December 2007
Group
2007 2006
�m �m
Continuing operations
Net exchange gain/(loss) on translation of overseas results and net assets 0.8 (5.4)
Net investment hedge (1.3) (0.5)
Tax on net investment hedge 0.2 0.2
Actuarial gain/(loss) recognised in the pension scheme 3.7 (3.1)
Deferred tax on actuarial gain/(loss) in the pension scheme (1.1) 0.9
Cash flow hedges (net of related deferred tax) (0.7) -
_____ _____
Net gains/(losses) recognised directly in equity 1.6 (7.9)
Profit for the year attributable to equity shareholders 6.3 24.9
_____ _____
Total recognised income and expense for the year attributable to equity
shareholders 7.9 17.0
_____ _____
The notes on pages 16 to 24 form an integral part of the preliminary
announcement.
Balance sheet
At 31 December 2007
Group
2007 2006
Note �m �m
Assets
Non-current assets
Goodwill 38.2 33.1
Other intangible assets 4.3 4.7
Property, plant and equipment 30.5 32.7
Retirement benefit asset 2.7 -
Deferred tax assets 2.3 2.9
Trade and other receivables 0.9 0.8
_____ _____
Total non-current assets 78.9 74.2
Current assets
Inventories 16.4 18.4
Trade and other receivables 23.6 23.5
Current tax assets 2.0 0.7
Derivative financial instruments 0.1 0.1
Cash and cash equivalents 9 11.3 15.2
_____ _____
Total current assets 53.4 57.9
_____ _____
Total assets 132.3 132.1
_____ _____
Liabilities
Non-current liabilities
Borrowings (23.0) (20.5)
Trade and other payables (0.7) -
Retirement benefit obligation (8.8) (9.6)
Provisions 10 (3.1) (0.5)
_____ _____
Total non-current liabilities (35.6) (30.6)
Current liabilities
Bank overdraft 9 (1.5) -
Borrowings - (9.6)
Trade and other payables (14.5) (12.7)
Current tax liabilities (6.7) (10.4)
Derivative financial instruments (0.7) -
Provisions 10 (3.0) (1.7)
_____ _____
Total current liabilities (26.4) (34.4)
_____ _____
Total liabilities (62.0) (65.0)
_____ _____
Net assets 70.3 67.1
_____ _____
Equity
Capital and reserves attributable to equity holders of Whatman plc:
Share capital 1.4 1.4
Share premium 20.5 19.4
Other reserves 11 (1.3) (0.3)
Retained earnings 12 48.8 46.6
_____ _____
69.4 67.1
Minority interest in equity 12 0.9 -
_____ _____
Total equity 12 70.3 67.1
_____ _____
The notes on pages 16 to 24 form an integral part of the preliminary
announcement.
Statement of cash flows
for the year ended 31 December 2007
Group
2007 2006
Note �m �m
Cash flows from operating activities
Cash generated from operations 13 24.5 23.2
Interest received 0.5 0.5
Finance costs paid (2.0) (1.2)
Tax paid (8.9) (2.4)
_____ _____
Net cash flows from operating activities 14.1 20.1
Cash flows from investing activities
Acquisition of subsidiaries (net of cash acquired) (0.8) (0.3)
Purchase of property, plant and equipment ("PPE") (3.4) (5.9)
Disposal proceeds from sale of PPE 0.1 -
Disposal proceeds from available for sale assets - 2.1
Disposal proceeds from sale of business - 0.3
_____ _____
Net cash used in investing activities (4.1) (3.8)
Cash flows from financing activities
Purchase of own shares - (0.8)
Net proceeds from issuance of ordinary share capital 1.1 2.1
Net proceeds from issuance of borrowings 22.5 -
Repayment of borrowings (31.7) (8.1)
Dividends paid (7.5) (6.9)
_____ _____
Net cash used in financing activities (15.6) (13.7)
_____ _____
Net (decrease)/increase in cash and cash equivalents (5.6) 2.6
Effects of exchange rate changes on cash and cash equivalents 0.2 (0.6)
_____ _____
(5.4) 2.0
Cash and cash equivalents at 1 January 9 15.2 13.2
_____ _____
Cash and cash equivalents at 31 December 9 9.8 15.2
_____ _____
The notes on pages 16 to 24 form an integral part of the preliminary
announcement.
Notes to the preliminary announcement
for the year ended 31 December 2007
1 Basis of preparation
The audited consolidated financial statements of Whatman plc (the "Company") for
the year ended 31 December 2007 comprise the Company and its subsidiaries
(together referred to as the "Group").
The audited consolidated financial statements have been prepared in accordance
with International Financial Reporting Standards ("IFRSs") as adopted by the
European Union and IFRIC interpretations and with those parts of the Companies
Act, 1985 applicable to companies reporting under IFRSs and were approved by the
Board of Directors on 19 March 2008.
The financial information set out in this preliminary results announcement does
not constitute the Company's statutory accounts, within the meaning of Section
240 of the Companies Act 1985, for the years ended 31 December 2007 or 2006 but
is derived from those accounts. An audit report was issued on the Company's
statutory accounts for 2007, which will be delivered to the Registrar of
Companies following the Company's Annual General Meeting. The auditors' report
for 2007 was unqualified and did not contain a statement under either Sections
237(2) or 237(3) of the Companies Act 1985. An unqualified audit report was
issued on the statutory accounts for 2006, in accordance with Section 235 of the
Companies Act 1985, and these have been delivered to the Registrar of Companies.
The financial statements have been prepared under the historical cost convention
as modified by the revaluation of certain land and buildings, available for sale
investments and financial instruments. Accounting policies have been
consistently applied in this preliminary announcement and there have been no
changes to those accounting policies as set out in the financial statements for
the year ended 31 December 2006. Accounting policies are applied to all material
transactions, other events and conditions in accordance with IAS 8 ("Accounting
Policies, Changes in Accounting Estimates and Errors") and need not apply to
immaterial items.
Use of non-GAAP profit measures
The Directors believe that underlying operating profit and underlying earnings
per share measures provide additional useful information for shareholders on the
Group's underlying business performance. Underlying operating profit is defined
as operating profit from continuing operations before non-recurring items and
the amortisation of intangibles.
Non-recurring items represent significant items of income and expense which due
to their nature or the expected infrequency of the events giving rise to them
are highlighted to help provide a better indication of the Group's underlying
business performance. Non-recurring items include, but are not limited to,
impairments of fixed assets, sales of fixed assets, restructuring costs,
integration costs, provision for onerous contracts and stock write-offs.
Recent accounting developments
IFRS 7 ("Financial Instruments: Disclosures") and the amendment to IAS1 ("
Presentation of Financial Statements - Capital Disclosures") were issued in
August 2005 and are effective for 2007. IFRS 7 revises previous disclosures
required under IAS 32 ("Financial Instruments: Presentation"). The
implementation of IFRS 7 has had no effect on the results or net assets of the
Group.
2 Segmental information
Segmental information is presented in respect of the Group's business and
geographical segments. The primary format is based on the Group's management
and internal reporting structure and as such is based on business segments.
Segment revenues, expenditure, assets and liabilities include items directly
attributable to a segment as well as those that can be allocated on a reasonable
basis. Unallocated items comprise mainly corporate items, taxation and
financing items.
Segment capital expenditure is the total cost incurred during the period to
acquire segment assets that are expected to be used for more than one period.
Business segment
The Group comprises the following main business segments:
* LabSciences:- The preparation of non-cellular samples prior to analysis,
including environmental applications. Products include cellulose and
glass filtration media; membranes; chromatography; syringe filters;
capsules; other encapsulated products and microbiological products.
* MedTech:- Comprises components supplied on an OEM (Original Equipment
Manufacturer) basis to manufacturers of medical devices and clinical
diagnostic tests.
* BioScience:- The preparation of cellular samples prior to analysis
and storage for study of nucleic acids or proteins. It comprises our FTA
product; multiwell plates; our Biometra business; electrophoresis; protein
micro-arrays; blotting and neo-natal paper.
Geographical segments
The business segments above are managed on a worldwide basis, but operate in
three principal geographical areas, Europe, North America and Asia Pacific.
In presenting information on the basis of geographical segments, segment revenue
is based on the geographical location of customers. Segment assets are based on
the geographical location of the assets.
Business segments LabSciences BioScience MedTech Unallocated Total
2007 2006 2007 2006 2007 2006 2007 2006 2007 2006
�m �m �m �m �m �m �m �m �m �m
Revenue 68.1 69.4 29.5 31.5 17.9 20.0 - - 115.5 120.9
_____ _____ _____ _____ _____ _____ _____ _____ _____ _____
Underlying operating 19.2 19.3 4.2 5.9 0.7 2.6 - - 24.1 27.8
profit
Non-recurring items (6.7) (0.7) (1.2) 8.7 (1.3) - (3.7) - (12.9) 8.0
Amortisation (0.1) (0.1) (0.4) (0.4) - - - - (0.5) (0.5)
_____ _____ _____ _____ _____ _____ _____ _____ _____
Operating profit 12.4 18.5 2.6 14.2 (0.6) 2.6 (3.7) - 10.7 35.3
_____ _____ _____ _____ _____ _____ _____ _____
Finance expense (4.8) (4.4)
Finance income 3.8 3.7
_____ _____
Profit before tax 9.7 34.6
Taxation (3.4) (9.7)
_____ _____
Profit for the year attributable to
shareholders 6.3 24.9
_____ _____
Unallocated items are those non-recurring items which are not attributable to an
individual business segment and relate to the Group as a whole. These relate
principally to Board re-organisation and strategic review costs (see note 3).
Geographical segments Europe North America Rest of World Total
2007 2006 2007 2006 2007 2006 2007 2006
�m �m �m �m �m �m �m �m
Continuing operations:
Revenue 49.6 53.9 45.4 48.2 20.5 18.8 115.5 120.9
Segment gross assets 76.0 81.1 44.6 46.0 11.3 5.0 131.9 132.1
Capital expenditure 1.7 2.9 1.1 2.9 1.3 0.1 4.1 5.9
3 Underlying operating profit
Operating profit is stated after charging or crediting items which are "
non-recurring" in nature. These items represent significant items of income and
expense which due to their nature or the expected infrequency of the events
giving rise to them are highlighted to help provide a better indication of the
Group's underlying business performance. Non-recurring items include, but are
not limited to, impairments of fixed assets, sales of fixed assets,
restructuring costs and integration costs, provision for onerous contracts and
stock write-offs.
Underlying operating profit is defined as operating profit from continuing
operations before non-recurring items and the amortisation of intangibles. The
Group believes this to be a useful measure of underlying business performance.
A reconciliation between operating profit and underlying operating profit is set
out below:
2007 2006
Note �m �m
Operating profit as reported 10.7 35.3
One-off income (a) - (0.7)
Exceptional stock adjustment (b) - 3.0
Pension A-day (c) - (1.2)
Biometra provision release (d) - (9.1)
Board re-organisation (e) 1.1 -
Closure of head office (f) 0.3 -
Restructuring costs (g) 1.6 -
Strategic review (h) 2.1 -
Onerous contracts (i) 4.3 -
Impairment of assets (j) 3.3 -
Other 0.2 -
____ ____
Total non-recurring items charged to operating profit (k) 12.9 (8.0)
Amortisation of intangibles 0.5 0.5
____ ____
Underlying operating profit 24.1 27.8
____ ____
a) One-off income in 2006 related to �0.6 million of deferred consideration
from the sale of the filter cartridge business and �0.1 million on
property disposals.
b) In 2006 cost of sales included a one-off stock provision of �2.7 million,
which arose following a review of Group stock levels.
c) Included in administrative expenses in 2006 is a one-off gain arising from
a change in the Group's method of actuarial costing of lump sum benefits
payable to members of the UK approved defined benefit pension scheme.
d) Following the conclusion of litigation against our Biometra business, part
of our BioScience business segment, a provision held amounting to �9.1
million was released.
e) Included in administration expenses are one-off charges in relation to the
Board re-organisation during the year. Included in this amount is �0.6
million in relation to accelerated share option charges.
f) Included in administrative expenses are the costs of closing the Group's
former head office in Brentford, UK.
g) Included in sales and marketing expenses are the costs of restructuring our
sales and marketing operations.
h) Following the announcement of the strategic review in September 2007, legal
and professional costs have been incurred and are included within
administrative expenses.
i) During 2007 the Group's contractual commitments were reviewed and provision
has been made for those contracts which have been identified as being
onerous. Given the level of interest and marketability of certain leasehold
properties, management considered it appropriate to increase the level of
provision held for these sites. This has been included in administrative
expenses. In addition, included in cost of sales are charges of �1.1
million in relation to onerous contracts where the Group produces and sells
products at a loss under the current contractual terms. These were
identified during the strategic review.
j) Included in administration costs is �2.3 million in relation to asset
impairments identified during the strategic review. Included in cost of
sales is a one-time write down of �1.0 million in relation to stock write
downs and stock samples held by sales teams.
k) In addition to non-recurring items of �12.9 million which have been charged
in arriving at operating profit, non-recurring finance costs of �0.1 million
have been incurred from the accelerated amortisation of issue costs on
bank loans. These costs have been included within finance expenses.
4 Administrative expenses
A reconciliation between administrative expenses and underlying administrative
expenses is set out below:
Group
2007 2006
Note �m �m
Administrative expenses as reported 20.7 11.0
Non-recurring items 3 (9.2) 0.9
Amortisation of intangibles 0.5 0.5
_____ _____
Underlying administrative expenses 12.0 12.4
_____ _____
5 Acquisition
In December 2006 the Group established a cooperative joint venture limited
liability company, Whatman-Xinhua Limited which is incorporated in China and
manufactures, develops and markets filter paper and related products. The
arrangement is described as a joint venture based upon the commercial
cooperative nature of the venture but it does not meet the definition of a joint
venture in accordance with IAS 31 ("Interests in joint ventures"). Under the
terms of the joint venture contract the Group has an interest in 75% of the
share capital of Whatman-Xinhua Limited and in accordance with IFRS 3 ("Business
Combinations") the business combination has been accounted for as an acquisition
using the purchase method of accounting. The remaining 25% interest in the
share capital of Whatman-Xinhua Limited is held by Hangzhou Xinhua Paper
Industry Co. Limited. Whatman-Xinhua Limited commenced trading on 2 July 2007.
No consideration was paid by the Group to establish Whatman-Xinhua Limited.
Instead, both parties to the joint venture arrangement have agreed to contribute
cash or assets at their fair value in return for equity in a ratio to maintain
an equity split of 75% to 25%. During the year ended 31 December 2007 an
aggregate of �2.0 million of assets (comprising cash of �1.3 million, property,
plant and equipment of �0.6 million and inventory of �0.1 million) had been
transferred to Whatman-Xinhua Limited by both parties, of which cash of �0.9
million was contributed by the Group and a minority interest of �0.9 million is
recorded in the consolidated balance sheet (see note 12). At 31 December 2007,
the Group had a commitment to contribute a further �2.1 million in cash to
Whatman-Xinhua Limited in return for the issue of additional share capital in
that company.
In establishing Whatman-Xinhua Limited, the Group has incurred legal and
professional fees of �1.0 million which have been recognised as a cost of the
acquisition. Additionally, contingent consideration is payable by the Group to
the joint venture partner dependent on the performance of the joint venture over
a three year period. An estimate of the future contingent consideration
payable, amounting to �1.6 million has been included in the total cost of the
acquisition. Goodwill arising on the acquisition amounts to �2.6 million.
In the year ended 31 December 2007, this acquisition contributed �1.4 million to
revenue and �0.1 million to operating profit and profit after tax. The profit
for the year attributable to the minority interest was �nil.
6 Taxation
Analysis of taxation charge in period:
Group
2007 2006
�m �m
Current tax charge
Current tax charge on income for the period 4.2 7.4
Adjustments in respect of prior periods - 0.8
_____ _____
Total current tax charge 4.2 8.2
Deferred tax (credit)/charge
Origination and reversal of temporary timing differences (0.4) 0.9
On share based payments (0.5) 0.1
On net pension interest income and expense 0.1 0.5
_____ _____
Total deferred tax (credit)/charge (0.8) 1.5
_____ _____
Total income tax charge in income statement 3.4 9.7
_____ _____
Relating to:
UK tax (0.3) 2.1
Overseas tax 3.7 7.6
_____ _____
Total income tax charge in income statement 3.4 9.7
_____ _____
Relating to:
Tax (credit)/charge on non-recurring items (3.2) 1.9
Tax charge on other items 6.6 7.8
_____ _____
Total income tax charge in income statement 3.4 9.7
_____ _____
The effective tax rate for the Group was 35% (2006: 28%). The effective rate has
increased due to deferred tax losses of �0.9 million incurred from restructuring
activities not being recognised.
7 Dividends
2007 2006
�m �m
Interim dividend paid in respect of current year: 2.18p (2006: 2.1p) per 1p share 2.9 2.8
Final dividend paid in respect of prior year: 3.48p (2006: 3.16p) per 1 p share 4.6 4.1
_____ _____
7.5 6.9
_____ _____
The terms of the offer from GEHL were made on the basis that the Board did not
declare or pay a final dividend although the Board reserves the right to propose
a final dividend in respect of 2007 at the Annual General Meeting in the
unlikely event that the timetable for the proposed acquisition of Whatman plc by
GEHL is delayed beyond that date.
8 Earnings per share
Earnings per share (expressed in pence per share) 2007 2006
- Basic 4.79p 19.03p
- Diluted 4.78p 18.73p
- Underlying basic 12.62p 14.75p
- Underlying diluted 12.59p 14.52p
The calculation of basic earnings per share at 31 December 2007 was based on a
profit attributable to ordinary shareholders of �6.3 million (2006: �24.9
million) and a weighted average number of ordinary shares outstanding during the
year ended 31 December 2007 of 131,493,000 (2006: 130,842,000), calculated as
follows:
Weighted average number of ordinary shares 2007 2006
Number Number
'000 '000
Issued ordinary shares at 1 January 131,523 130,541
Effect of own shares issued under share option schemes 259 594
Effect of own shares held (289) (293)
_____ _____
Weighted average number of ordinary shares at 31 December 131,493 130,842
_____ _____
The calculation of diluted earnings per share at 31 December 2007 was based on a
profit attributable to ordinary shareholders of �6.3 million (2006: �24.9
million) and a weighted average number of ordinary shares outstanding during the
year ended 31 December 2007 of 131,859,000 (2006: 132,937,000), calculated as
follows:
Weighted average number of ordinary shares (diluted) 2007 2006
Number Number
'000 '000
Weighted average number of ordinary shares at 31 December (as above) 131,493 130,842
Effect of dilutive share options 366 2,095
_____ _____
Weighted average number of ordinary shares (diluted) at 31 December 131,859 132,937
_____ _____
Underlying earnings per share
The calculation of underlying basic earnings per share and underlying diluted
earnings per share is based on the underlying profit attributable to ordinary
shareholders and the respective weighted average number of ordinary shares noted
above.
2007 2006
Underlying profit attributable to shareholders: �m �m
Profit attributable to ordinary shareholders 6.3 24.9
Non-recurring items - charged to operating profit 12.9 (8.0)
Non-recurring items - charged to finance costs 0.1 -
Amortisation of intangibles 0.5 0.5
Taxation in respect of non-recurring items and amortisation (3.2) 1.9
_____ _____
Underlying profit attributable to shareholders 16.6 19.3
_____ _____
9 Cash and cash equivalents
2007 2006
�m �m
Bank balances 11.3 15.2
Bank overdrafts (1.5) -
_____ _____
Net cash and cash equivalents in the statement of cash flows 9.8 15.2
_____ _____
10 Provisions
Biometra Restructuring Onerous Total
contracts
�m �m �m �m
At 1 January 2006 - 2.7 1.7 4.4
Effect of changes in exchange rates - (0.2) - (0.2)
Utilised during year - (1.9) (0.8) (2.7)
Established in the year - 0.1 - 0.1
Reclassification of provision from assets held for sale 9.7 - - 9.7
Amounts released unused (9.1) - - (9.1)
_____ _____ _____ _____
At 31 December 2006 0.6 0.7 0.9 2.2
_____ _____ _____ _____
Current liabilities 0.6 0.7 0.4 1.7
Non-current liabilities - - 0.5 0.5
_____ _____ _____ _____
0.6 0.7 0.9 2.2
_____ _____ _____ _____
At 1 January 2007 0.6 0.7 0.9 2.2
Effect of changes in exchange rates - 0.1 - 0.1
Unwind of discounts on provisions - - 0.1 0.1
Utilised during year (0.6) (4.5) (0.7) (5.8)
Established in the year - 5.2 4.3 9.5
_____ _____ _____ _____
At 31 December 2007 - 1.5 4.6 6.1
_____ _____ _____ _____
Current liabilities - 1.5 1.5 3.0
Non-current liabilities - - 3.1 3.1
_____ _____ _____ _____
At 31 December 2007 - 1.5 4.6 6.1
_____ _____ _____ _____
11 Other reserves
Revaluation Currency Hedging Other Total other
reserve translation reserve reserves reserves
reserve
Group �m �m �m �m �m
At 1 January 2006 2.5 0.9 - 2.0 5.4
Exchange loss on translation of overseas net - (5.7) - - (5.7)
assets and results (net of net investment hedge) _____ _____ _____ _____ _____
At 31 December 2006 2.5 (4.8) - 2.0 (0.3)
_____ _____ _____ _____ _____
Revaluation Currency Hedging Other Total other
reserve translation reserve reserves reserves
reserve
Group �m �m �m �m �m
At 1 January 2007 2.5 (4.8) - 2.0 (0.3)
Exchange loss on translation of overseas net - (0.3) - - (0.3)
assets and results (net of net investment
hedge)
Cash flow hedges: fair value losses in year - - (0.9) - (0.9)
Tax on cash flow hedges - - 0.2 - 0.2
_____ _____ _____ _____ _____
At 31 December 2007 2.5 (5.1) (0.7) 2.0 (1.3)
_____ _____ _____ _____ _____
Other reserves in the Group were established under UITF 17 "Employee Share
Schemes" in relation to the fair value of share awards to employees. This
reserve is distributable to equity shareholders.
12 Statement of changes in shareholders' equity
Share Share Other Retained Total Minority
capital premium reserves earnings interests Total
account equity
Group �m �m �m �m �m �m �m
At 1 January 2006 1.4 17.4 5.4 30.5 54.7 - 54.7
Profit for the year - - - 24.9 24.9 - 24.9
Charge in relation to share
related awards - - - 0.1 0.1 - 0.1
Premium on share issues,
less expenses - 2.0 - - 2.0 - 2.0
Exchange loss on translation
of overseas net assets and
results - - (5.7) - (5.7) - (5.7)
Actuarial loss recognised in
the pension schemes - - - (3.1) (3.1) - (3.1)
Deferred tax arising on
actuarial loss in the
pension schemes - - - 0.9 0.9 - 0.9
Dividends - - - (6.9) (6.9) - (6.9)
Own shares held issued to employees - - - 0.2 0.2 - 0.2
_____ _____ _____ _____ _____ _____ _____
At 31 December 2006 1.4 19.4 (0.3) 46.6 67.1 - 67.1
_____ _____ _____ _____ _____ _____ _____
Share Share Other Retained Total Minority Total
capital premium reserves earnings interests equity
account
Group �m �m �m �m �m �m �m
At 1 January 2007 1.4 19.4 (0.3) 46.6 67.1 - 67.1
Profit for the year - - - 6.3 6.3 - 6.3
Charge in relation to share
related awards - - - 0.8 0.8 - 0.8
Premium on share issues,
less expenses - 1.1 - - 1.1 - 1.1
Exchange loss on
translation of overseas net
assets and results - - (0.3) - (0.3) - (0.3)
Actuarial gain recognised
in the pension schemes - - - 3.7 3.7 - 3.7
Deferred tax arising on
actuarial gain in the
pension schemes - - - (1.1) (1.1) - (1.1)
Movement on hedging reserve - - (0.7) - (0.7) - (0.7)
Arising on acquisition - - - - - 0.9 0.9
Dividends - - - (7.5) (7.5) - (7.5)
_____ _____ _____ _____ _____ _____ _____
At 31 December 2007 1.4 20.5 (1.3) 48.8 69.4 0.9 70.3
_____ _____ _____ _____ _____ _____ _____
13 Reconciliation of profit for the year to net cash inflow from
operating activities
2007 2006
�m �m
Profit for the year 6.3 24.9
Taxation 3.4 9.7
Finance income (3.8) (3.7)
Finance expense 4.8 4.4
Depreciation 4.1 3.7
Amortisation 0.5 0.5
Loss/(profit) on disposal 0.9 (0.7)
Impairment of property, plant and equipment 1.6 -
Net movement in provisions 3.9 (12.9)
Equity based payments 1.5 0.9
Net movement in pensions (0.5) (1.1)
Decrease in inventories 2.0 0.1
Decrease in debtors 0.2 0.3
Increase/(decrease) in creditors 0.7 (1.7)
Non cash effects of exchange rate changes (1.1) (1.2)
_____ _____
Cash inflow from operating activities 24.5 23.2
_____ _____
Analysed as:
Underlying cash inflow from operating activities 29.4 25.2
Cash outflow from non-recurring items (4.9) (2.0)
_____ _____
Cash inflow from operating activities 24.5 23.2
_____ _____
14 Post balance sheet events
On 4 February 2008 the Group announced that it had reached agreement on the
terms of a recommended acquisition by GEHL, a wholly owned subsidiary of General
Electric Company, a company incorporated in the United States of America.
Under the terms of the transaction, each Whatman shareholder will receive 270
pence in cash for each Whatman share. The proposed acquisition is subject to
regulatory approval and approval by the Group's shareholders and it is intended
that it will be implemented by way of a scheme of arrangement under English law.
A circular was dispatched to shareholders on 19 February 2008 setting out the
full terms and conditions of the scheme of arrangement, an explanatory
statement, together with action to be taken by the shareholders. Subject to the
satisfaction or waiver of the conditions of the scheme, it is currently expected
that the scheme will become effective on 25 April 2008.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR IFFILVLITLIT
Whatman (LSE:WHM)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Whatman (LSE:WHM)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024
