Avis Europe Plc Audited Results for Year Ended 31 December 2002.Business Editors BRACKNELL Bracknell (brăk`nəl), city (1991 pop. 52,257), Bracknell Forest, S England. Bracknell was designated one of the new towns in 1949, in order to alleviate overpopulation in London. , Berkshire--(BUSINESS WIRE)--Feb. 27, 2003 Avis Avis: see Aviz, Portugal. Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). plc, the leading car rental RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. company in Europe, Africa,
the Middle East and Asia, announces audited results for the year ended
31 December December: see month. 2002.Operating Headlines See syndication format. -- Full year results consistent with guidance provided in June June: see month. 2002 -- Leisure actions help counter reduction in business demand -- Continued strong cost management -- New facilities strengthen funding position -- Proposed acquisition of the Budget vehicle rental business in Europe, Middle East and Africa Financial Headlines -- Revenue 5.3% lower at (EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. )1,189.2 million ((pounds)747.5 million) -- Profit before tax(1) 15.2% lower at (EUR)122.3 million ((pounds)77.3 million) -- Exceptional charge before tax of (EUR)16.4 million ((pounds)10.4 million) -- EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. (1) 15.5% lower at 16.4 euro cents (10.4p); unadjusted EPS 13.8 euro cents (8.7 p) -- Proposed final dividend of 3.8p per share, full year dividend maintained at 5.8p (1) before goodwill amortisation Noun 1. amortisation - the reduction of the value of an asset by prorating its cost over a period of years amortization reduction, step-down, diminution, decrease - the act of decreasing or reducing something 2. and exceptional items Commenting on the results, Chairman Sir Bob Reid said: "During 2002, weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. economies across Europe impacted
corporate travel spend and against this background we focussed our sales
and promotional activities in revenue segments which provided better
short-term Short-termAny investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. opportunities for recovery, notably Leisure. At the same time, we continued to manage actively our operational cost base and capacity by significantly adjusting fleet and staffing levels to mitigate mit·i·gate v. To moderate in force or intensity. mit  i·gation n. the impact of lower customer demand levels.With no expectation of significant recovery in the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. economies in 2003 and the likelihood of continuing geo-political tension, the short-term outlook for our business is uncertain. In this environment, we shall maintain very tight control on fleet and staff levels, as well as developing other cost efficiencies. We continue to update our contingency plans A plan involving suitable backups, immediate actions and longer term measures for responding to computer emergencies such as attacks or accidental disasters. Contingency plans are part of business resumption planning. to mitigate the impact which would inevitably arise from any escalation es·ca·late v. es·ca·lat·ed, es·ca·lat·ing, es·ca·lates v.tr. To increase, enlarge, or intensify: escalated the hostilities in the Persian Gulf. v.intr. towards conflict. In the first few weeks of 2003 Leisure business has continued to grow, partially offsetting the continuing lower level of corporate travel. We continue to invest in our business to improve the potential for future growth and profitability, with the proposed acquisition of the Budget business, the purchase of a major Avis licensee licensee n. a person given a license by government or under private agreement. (See: license, licensor) LICENSEE. One to whom a license has been given. 1 M. Q. & S. 699 n. in France, and the opening of our Avis branded joint venture in China." The annual report will be posted to shareholders on 13 March 2003. The audited financial statements are available on www.avis-europe.com from today. RESULTS OVERVIEW 2002 was a difficult year for the travel industry, which continued to be affected both by weakening economies and geo-political uncertainties. We have taken actions to adjust our business and to focus revenue development activity on markets and customer segments less affected by current events. Revenue was 5.3% lower at (EUR)1,189.2 million. Profit before tax, goodwill amortisation and exceptional items was 15.2% lower at (EUR)122.3 million, as a result of the lower revenue and the impact of the fixed element of our cost base, principally associated with the rental station network. Adjusted earnings per share on the same basis were 13.3% lower at 10.4 pence pence n. Chiefly British A plural of penny. pence Noun a plural of penny USAGE: Since the decimalization of British currency and the introduction of the abbreviation p, . Exceptional costs of (EUR)16.4 million, comprises a (EUR)6.9 million provision for Centrus credit hire receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed , a (EUR)6.2 million severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when cost from the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of management and support positions across the Group announced in September September: see month. , and a (EUR)3.3 million provision for re-insurance RE-INSURANCE, mar. contr. An insurance made by a former insurer, his executors, administrators, or assigns, to protect himself and his estate from a risk to which they were liable by the first insurance. 2. It differs from a double insurance (q.v. receivables. Profit before tax after goodwill amortisation and exceptional items was (EUR)101.8 million (2001: (EUR)136.3 million) and earnings per share on the same basis were 8.7 pence (2001: 11.3 pence) Dividend maintained With the underlying strength of the Group, the Directors are recommending a final dividend of 3.8 pence per share, maintaining the full year dividend at 5.8 pence per share. The dividend will be paid on 7 May 2003 to shareholders on the register at close of business on 7 March 2003. REVENUE OVERVIEW Our balanced geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. and segmental segmental /seg·men·tal/ (seg-men´t'l) 1. pertaining to or forming a segment or a product of division, especially into serially arranged or nearly equal parts. 2. undergoing segmentation. portfolio provides some protection in times such as these, by enabling us to focus revenue development activity in less affected areas. In 2002 overall Group revenues were 5.3% lower at (EUR)1,189.2 million. Although volume declined by 5.6%, primarily due to cutbacks in corporate-related spend, we continued to create yield gains with revenue per rental up 1.7% versus prior year. Leisure recovered steadily The major segment for the Group in 2002 was Leisure, accounting for 39% of revenue. Leisure activity continued to recover, returning to growth in the second half and achieving full year revenue in line with 2001. Intra-European Leisure revenue, which is 40% of the Leisure segment, was only marginally mar·gin·al adj. 1. Of, relating to, located at, or constituting a margin, a border, or an edge: the marginal strip of beach; a marginal issue that had no bearing on the election results. 2. lower than 2001. A reduction in tour operator referred business was offset by targeted investments to increase the number of customers booking direct through the internet, our call centres and travel agents. This change in mix contributed to an increase in revenue per rental of 2.8%. Domestic Leisure revenue, which is 29% of the segment was up 2% versus prior year, with particularly strong performances in France and the UK from promotional activities. International Leisure revenue, which is 31% of the segment, recovered gradually grad·u·al adj. Advancing or progressing by regular or continuous degrees: gradual erosion; a gradual slope. n. Roman Catholic Church 1. during the year, supported by new products and sales investment in the US retail market. Full year revenue was 2% below prior year. Corporate customers reduce travel expenditure Corporate business accounted for 22% of revenue in 2002. This segment was impacted from the second quarter onwards on·ward adj. Moving or tending forward. adv. also on·wards In a direction or toward a position that is ahead in space or time; forward. Adv. 1. when companies further reduced their discretionary expenditure. Full year revenue was 14% lower than prior year, with only marginal (jargon) marginal - 1. Extremely small. "A marginal increase in core can decrease GC time drastically." In everyday terms, this means that it is a lot easier to clean off your desk if you have a spare place to put some of the junk while you sort through it. 2. improvement in the second half even with the benefit of the weak comparative of the fourth quarter of 2001. The market was particularly difficult in Northern Europe although we again achieved yield gains in this segment. Investment in sales and marketing activity enabled us to grow elements of the Corporate segment in certain markets, for example Spain Spain, Span. España (āspä`nyä), officially Kingdom of Spain, constitutional monarchy (2005 est. pop. 40,341,000), 194,884 sq mi (504,750 sq km), including the Balearic and Canary islands, SW Europe. , by increasing sales efforts in the small and medium sized enterprise market. Replacement impacted by reduced corporate spend Replacement represented 20% of revenue in 2002 and includes business originating from three sources - corporate longer-term, which was 45% of revenue, leasing-related 26% and insurance-related 29%. Overall Replacement revenue was 7% lower than 2002 with corporate longer-term down 14% in line with the overall trend in the Corporate segment. Premium in line with overall revenue trends The Premium sector accounted for the remaining 19% of revenue and includes customers who do not pre-book their car rental and business from some partnerships. Revenue in this segment was 4.9% lower than 2001, broadly in line with the overall Group. Revenue development in major markets The major markets of France, Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). , Italy Italy (ĭt`əlē), Ital. Italia, officially Italian Republic, republic (2005 est. pop. 58,103,000), 116,303 sq mi (301,225 sq km), S Europe. , Spain and the UK generated 81% of Group revenues during 2002. Full year revenue in Germany and the UK was down 14% and 11% respectively as these markets were significantly impacted from the second quarter onwards by cut backs in corporate travel spend. This also impacted Italy and France to a lesser extent where total revenue was 7% and 5% lower respectively. Targeted revenue activities were developed in each market to help mitigate this reduction in corporate-related travel and to underpin revenue development for the future. Spain, which grew by 7%, was the strongest of the country markets, not only in its core Leisure business but also in the successful development of more than fifty new domestic corporate accounts in the small and medium enterprise segment. Development of corporate activity reduces dependence on peak leisure periods and eases fleet planning. A number of important agreements were renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. during 2002, including the three-year partnerships with Iberia Iberia (ībĭr`ēə), ancient country of Transcaucasia, roughly the eastern part of present-day Georgia. It was inhabited in earliest times by various tribes, collectively called Iberians by ancient historians, although Herodotus called and the Sol Sol, in Roman religion Sol (sŏl), in Roman religion, sun god. An ancient god of Mesopotamian origin, he was introduced (c.220) into Roman religion as Sol Invictus by emperor Heliogabalus. Melia Melia genus in the family Meliaceae. Melia azederach, Melia dubia much used as a shade tree. The seed causes severe diarrhea with dysentery. There may also be excitement and dyspnea. hotel group. We also secured our position across all key Spanish Spanish, river, c.150 mi (240 km) long, issuing from Spanish Lake, S Ont., Canada, NW of Sudbury, and flowing generally S through Biskotasi and Agnew lakes to Lake Huron opposite Manitoulin island. There are several hydroelectric stations on the river. airports for the next five years. In Germany, where trading conditions remained particularly difficult, we continued to operate a yield strategy, with revenue per rental increases in Corporate and transatlantic business. New initiatives were launched at the end of the year to develop the insurance-related element of the Replacement segment. Our Lufthansa Lufthansa in full Deutsche Lufthansa AG One of Europe's largest air-passenger, cargo, and airline-services companies. The airline originated in 1926 as Deutsche Luft Hansa AG and eventually was flying to destinations in South America and Southeast Asia before partnership was successfully renewed and extended to include joint marketing activities to develop both domestic and international business. In addition to the economic downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. , Corporate revenue in the UK was impacted by the withdrawal from certain Government contracts. Initiatives focused on stimulating stim·u·late v. stim·u·lat·ed, stim·u·lat·ing, stim·u·lates v.tr. 1. To rouse to activity or heightened action, as by spurring or goading; excite. See Synonyms at provoke. 2. domestic Leisure activity underpinned a year on year increase in Leisure revenues. Despite the difficulties of the airline market and reductions in passenger capacity, we marginally increased the number of rentals from British Airways British Airways in full British Airways PLC International passenger airline based in London. In 1936 British Airways Ltd. was founded through the merger of three smaller airlines. customers through marketing and database promotions. In France, domestic promotional activity generated a 5% growth in Leisure. During 2002 we launched Caraway caraway, biennial Old World plant (Carum carvi) of the family Umbelliferae (parsley family), cultivated in Europe and North America for its aromatic seeds. , an internet-based prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay ment n. rental product, to develop future domestic and outbound out·bound adj. Outward bound; headed away: outbound trains. Adj. 1. outbound - that is going out or leaving; "the departing train"; "an outward journey"; "outward-bound ships" leisure business. Italy successfully implemented new loyalty programmes and stimulated stim·u·late v. stim·u·lat·ed, stim·u·lat·ing, stim·u·lates v.tr. 1. To rouse to activity or heightened action, as by spurring or goading; excite. See Synonyms at provoke. 2. double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. rental growth in the premium segment. A number of new UK inbound in·bound 1 adj. Bound inward; incoming: inbound commuter traffic. Adj. 1. inbound tour operator contracts were secured in the latter part of 2002 to generate leisure business in 2003. Partnership developments During 2002 we renewed some key partnerships and secured new arrangements with a number of airlines, travel companies and international rail companies. Renewed arrangements were completed with Iberia, Lufthansa, Olympic O·lym·pic adj. Of or relating to the Olympic Games. Olympic Adjective of the Olympic Games Adj. 1. Olympic - of or relating to the Olympic Games; "Olympic winners" 2. Airways airways Anatomy The 'pipes'–trachea, bronchi, bronchioles–through which air passes to and from the alveoli. See Small airways. , JAL JAL Jalisco (Mexican state) JAL Jalapa (Guatemala territorial division) JAL Jump And Link JAL Japan Airlines Company, Ltd. and All Nippon Nippon (nĭp`ŏn, nĭpŏn`), name for Japan, derived from Dai Nippon, meaning Great Japan. The expression comes from the Chinese ideograph for the place where the sun comes from, or Land of the Rising Sun. and a new three year exclusive partnership was secured with FlyBE, Europe's leading independent regional carrier. New pan-European arrangements were secured with Thomas Cook For the company, see Thomas Cook AG. Thomas Cook (22 November 1808 – 18 July 1892) of Melbourne, Derbyshire, founded the travel agency that is now Thomas Cook AG. He was brought up as a strict Baptist and joined his local Temperance Society. and new partnerships with two of Europe's largest internet-based travel companies, e-bookers and Expedia, commenced during the year. Our penetration The successful unauthorized breach of a security perimeter. See penetration test. of the high-speed rail High-speed rail is a type of passenger rail transport that operates significantly faster than the normal speed of rail traffic. Specific definitions include 200-320 km/h (125-200 mph) - depending on whether the track is upgraded or new - by the European Union and above 90 mph customer base was further enhanced with a new exclusive partnership with Eurostar This article is about high-speed trains between London and Brussels / Paris. For other uses, see Eurostar (disambiguation). Eurostar is a train service connecting London and Kent in Britain, with France (primarily Paris and Lille) and Brussels in Belgium. and new marketing programmes with SNCF SNCF Société Nationale des Chemins de fer Français (French National Railways) SNCF Sans Nous les Cafés Ferment (French) in France and RENFE RENFE Red Nacional de Ferrocarriles Españoles (Spanish Railway) in Spain. Centrus implements new operating guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. Centrus is the UK's second largest car replacement service to non-fault accident insurance claimants providing claim management services and generating rental volume for the Avis UK business. In 2002 revenues were down 2.3% to (EUR)34.6 million with completed hires of some 21,000. Although industry guidelines for reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. of claims were previously agreed with the Association of British Insurers, we have continued to experience difficulties with the settlement process, resulting in an exceptional charge of (EUR)6.9 million. To ensure more timely settlement of claims we are working with insurers to introduce new processes for more effective data capture and exchange and we have significantly strengthened our claims collection team. As a result of these actions we expect improvements to the speed of settlement during 2003, which should then provide a base for expansion of the business in 2004. PROFIT OVERVIEW Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. before exceptional items and goodwill amortisation was (EUR)186.5 million, down 13.5% on prior year. Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of 15.7% was 1.5% points lower than prior year largely resulting from the impact of lower revenue on fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). which mainly relate to the short-term inflexibility in·flex·i·ble adj. 1. Not easily bent; stiff or rigid. 2. Incapable of being changed; unalterable. 3. Unyielding in purpose, principle, or temper; immovable. of support staff levels across the Group and the rent and depreciation of our rental station network.
Operating margin analysis 2002 % 2001 % Margin
revenue revenue movement
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Selling costs 6.8 6.6 (0.2)
Revenue related 8.2 8.2 -
Rental related 2.1 2.1 -
Fleet costs 33.2 33.1 (0.1)
Staff costs 21.1 20.5 (0.6)
Overheads 12.9 12.3 (0.6)
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Operating margin 15.7 17.2 (1.5)
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Rapid adjustment of fleet and staff to lower demand The relative flexibility of our operating cost base allows us to minimise Verb 1. minimise - represent as less significant or important downplay, understate, minimize inform - impart knowledge of some fact, state or affairs, or event to; "I informed him of his rights" the impact of reduced revenues on margin. Average fleet was 5% (some 6,000 units) lower than 2001, resulting in our key fleet efficiency measure of vehicle utilisation being 68.1% (2001: 68.5%). Our other key operational efficiency measure is staff productivity, which was just 1.7% lower, compared to the reduction in rentals of 7%. Operational and call centre staffing levels were reduced in line with demand, sales teams were tactically tac·ti·cal adj. 1. Of, relating to, or using tactics. 2. a. Of, relating to, used in, or involving military or naval operations that are smaller, closer to base, and of less long-term significance than strategic increased for business development and a process of restructuring to adjust management and support positions across the Group, resulted in a reduction of 100 positions in the last quarter of 2002. Continued success with fleet strategies Fleet costs as a percentage of revenue were very similar to prior year, reflecting the success of key initiatives in vehicle sourcing, damage recovery and our used car re-marketing programmes. During the second half of the year a new hand-held hand-held also hand·held adj. Compact enough to be used or operated while being held in the hand or hands: a hand-held video camera. Adj. 1. vehicle check-out Check-Out is a pricing game on the American television game show The Price Is Right. Debuting on January 28, 1982, it is played for a four-digit prize, usually valued between $2,000 and $10,000, and uses grocery items. and check-in device was piloted at selected airports in Germany List of airports in Germany, grouped by type and sorted by location LOCATION ICAO IATA AIRPORT NAME Civil airports Aachen EDKA AAH Aachen-Merzbrück Airport Altenburg EDAC AOC Altenburg-Nobitz Airport Baden-Baden/Karlsruhe EDSB FKB Baden Airpark and the UK. In addition to improving customer service, this initiative is designed to substantially improve damage management and increase delivery and collection efficiencies. With positive consumer acceptance and the process efficiency results achieved in the pilot, we are investing in a two-year (EUR)16 million roll out programme of the new device to all major rental locations across the Group. Overhead expenditure lower Overhead cost of (EUR)153.2 million included (EUR)73.0 million of non-property costs, which were reduced by 9% through intensive cost management actions. Property costs of (EUR)80.2 million increased by (EUR)5.8 million as we continued to invest in improving our network facilities. As a result overheads increased by 0.6% points of revenue. New facilities strengthen funding position Interest payable was reduced due to the lower level of average net debt required to fund lower fleet levels. Average interest rates have increased from 5.2% to 5.3% as the Group increased financing through longer-term facilities and a greater proportion of fixed rate debt. A new multi-currency facility was secured with a syndicate Syndicate organized crime unit throughout major cities of the United States. [Am. Hist.: NCE, 2018] See : Gangsterism of banks comprising a (EUR)385 million five-year tranche Tranche One of several related securities offered at the same time. Tranches from the same offering usually have different risk, reward, and/or maturity characteristics. tranche A class of bonds. and a (EUR)165 million 364-day tranche, with a one-year adj. 1. completing its life cycle within a year. Adj. 1. one-year - completing its life cycle within a year; "a border of annual flowering plants" annual phytology, botany - the branch of biology that studies plants term out option. In addition medium term notes totaling (EUR)171.8 million and maturing between 2007 and 2012 were issued. Net debt reduced by (EUR)50 million
2002 2001
(EUR) (EUR)
million million
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Net cash inflow from operating activities 518.6 528.1
-----------------------------------------
Fleet capital expenditure (323.7) (271.6)
Non fleet capex (25.3) (17.3)
Taxation (2.0) (25.0)
Interest and dividends (119.2) (126.7)
Acquisitions and other 1.7 12.8
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Reduction in net debt 50.1 100.3
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The level of net debt reduced during the year by (EUR)50.1 million largely due to cash generated from operations despite the lower level of rental activity. Fleet capital expenditure was (EUR)52.1 million higher due to working capital movements. In addition, the Group has benefited from reduced tax payments, because of the changed timing of payments related to current year tax and repayments received relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc prior years. Tax rate maintained The effective tax rate for 2002 pre-exceptional items was 22.0% and post-exceptional items, 20.5%. The tax rate continues to be less than the rate of UK corporation tax largely because of the utilisation of UK tax losses brought forward and adjustments in respect of prior years. Pensions The group has a number of pension schemes of a defined benefit and defined contribution nature. The material defined benefit pension schemes in the Group are in the UK, which is a funded scheme and Germany, which is unfunded, in line with local practice. On an SSAP SSAP Source Service Access Point SSAP Statistical Signal and Array Processing SSAP Session Service Access Point SSAP sequential structure alignment program (for protein structure comparison) SSAP Simple Spectral Access Protocol 24, Accounting for pension costs, basis there was a deficit at 31 December 2002 in respect of the UK scheme of (EUR)14.5 million. On a FRS FRS abbr. Fellow of the Royal Society FRS, n “flexed rotated side-bent,” an osteopathic abbreviation used to describe vertebral position in cases of spinal dysfunction. 17, Retirement benefits, basis the deficit between the market value of the assets in the UK scheme and the actuarial ac·tu·ar·y n. pl. ac·tu·ar·ies A statistician who computes insurance risks and premiums. [Latin value of its liabilities was (EUR)37.2 million. The charge in the profit and loss account for the Group's defined benefit schemes is (EUR)10.9 million, based on the requirements of SSAP 24. The Group has chosen not to adopt FRS 17 early, but had it done so, the profit and loss account charge for the same schemes would have been (EUR)10.0 million. Following the actuarial valuation of the Avis UK Pension Plan at 30 June 2002 it was decided to introduce a new defined benefit scheme for UK employees who join the company from 1 July July: see month. 2003. This is a contributory con·trib·u·to·ry adj. 1. Of, relating to, or involving contribution. 2. Helping to bring about a result. 3. Subject to an impost or levy. n. pl. scheme, which provides a defined capital sum at retirement based on an annual accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. plus interest. This is used to provide a pension based upon open market rates. The company retains responsibility for the investment but not the annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. risk. STRATEGIC DEVELOPMENT We have continued to invest in the medium term development of the Group with the proposed acquisition of the Budget business in Europe, Middle East and Africa and the purchase of a major Avis licensee in France, as well as the opening of the Avis branded joint venture in China. Budget acquisition will provide further opportunities for growth In February February: see month. 2003 we reached a binding acquisition agreement, for certain assets of the Budget Group, including the royalty-free Royalty-free describes material (typically graphics such as stock photography and icons, but also sound such as music loop samples) that may be used for profit, without paying royalties. rights to the Budget brand throughout Europe, Middle East and Africa. Completion of the acquisition is subject to certain closing conditions, which we expect to complete during March. The purchase consideration is approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. (EUR)30 million, plus (EUR)8 million of assumed debt relating to fleet assets. We expect the acquisition to be marginally earnings dilutive in the first full year following completion. Budget is at present predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. a franchised business with a limited number of corporate owned operations in France, Switzerland Switzerland (swĭt`sərlənd), Fr. Suisse, Ger. Schweiz, Ital. Svizzera, officially Swiss Confederation, federal republic (2005 est. pop. 7,489,000), 15,941 sq mi (41,287 sq km), central Europe. and Austria Austria (ô`strēə), Ger. Österreich [eastern march], officially Republic of Austria, federal republic (2005 est. pop. 8,185,000), 32,374 sq mi (83,849 sq km), central Europe. . It currently operates in over 60 countries through 1,000 locations and generates licence fee income of some (EUR)11 million per annum Per annum Yearly. . This year we will focus on the integration and stabilisation Noun 1. stabilisation - the act of making something (as a vessel or aircraft) less likely to overturn stabilization improvement - the act of improving something; "their improvements increased the value of the property" of the business prior to more significant investment towards the end of 2003. The brand has very limited presence in some key territories such as Spain, Italy and Scandinavia Scandinavia (skăn'dĭnā`vēə), region of N Europe. It consists of the kingdoms of Sweden, Norway, and Denmark; Finland and Iceland are usually considered part of Scandinavia. . This provides the opportunity to deploy our operational experience and resources to regenerate re·gen·er·ate v. re·gen·er·at·ed, re·gen·er·at·ing, re·gen·er·ates v.tr. 1. To reform spiritually or morally. 2. To form, construct, or create anew, especially in an improved state. the brand. In addition there will be cost efficiencies from simplifying existing systems infrastructure as well as developing joint service and support functions. Avis France extends corporate network In January January: see month. 2003 we acquired the rental network of a major Avis licensee in France for (EUR)17.8 million including assumed debt relating to fleet assets of approximately (EUR)11.6 million. This is the leading car rental company in the South East and has been part of the Avis licensee network for over 30 years. The business generated (EUR)18.5 million of revenue in 2002 and is expected to be earnings enhancing in 2003. Avis branded joint venture in China commences trading In addition to investing in our core European markets we continue to develop our presence in Asia which we see as a key long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth region for the Group. Our joint venture in China with Shanghai Automotive Industry Corporation The Shanghai Automotive Industry Corporation (in Chinese: 上海汽车工业(集团)总公司; Pinyin: Shànghǎi Qichē Gõngyè (Jítuán) Zǒnggõngsī; or 上汽, Shàngqi; abbreviated SAIC received regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approval and started trading in January 2003 with 1,000 cars operating from nine locations. We plan to extend the network to 70 locations in 26 cities over the next five years, leading up to the Beijing Beijing (bā-jĭng) or Peking (pē-kĭng, pā–), city (1994 est. urban pop. 6,093,300; 1994 est. total pop. 7,240,700), capital of the People's Republic of China. It is in central Hebei prov. Olympics Olympics Sports medicine An international competition among (traditionally) nonprofessional athletes trained in a particular summer or winter sport, which is held every 4 yrs in a selected city. See Paralympics, Special Olympics, World Medical Games. in 2008. SUMMARY AND OUTLOOK During 2002, weakening economies across Europe impacted corporate travel spend and against that background we focussed our sales and promotional activities in revenue segments which provided better short-term opportunities for recovery, notably Leisure. At the same time, we continued to manage actively our operational cost base and capacity by significantly adjusting fleet and staffing levels to mitigate the impact of lower customer demand levels. With no expectation of significant recovery in the European economies in 2003 and the likelihood of continuing geo-political tension, the short-term outlook for our business is uncertain. In this environment we will continue to maintain very tight control on fleet and staff levels, as well as developing other cost efficiencies to limit margin erosion erosion (ĭrō`zhən), general term for the processes by which the surface of the earth is constantly being worn away. The principal agents are gravity, running water, near-shore waves, ice (mostly glaciers), and wind. . We continue to update our contingency plans to mitigate the impact, which would inevitably arise from any escalation towards conflict. In the first few weeks of 2003 Leisure business has continued to grow, partially offsetting the continuing lower level of corporate travel. We continue to invest in our business to improve the potential for future growth and profitability, with the proposed acquisition of the Budget business, the purchase of a major Avis licensee in France, and the opening of our Avis branded joint venture in China. Avis Europe plc rents cars under the Avis brand name to customers in 112 countries. Avis Europe's ordinary shares trade on the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. . Prices may be accessed on Bloomberg Bloomberg A major global provider of 24-hour financial news and information including real-time and historic price data, financials data, trading news and analyst coverage, as well as general news and sports. under the symbol AVE LN and Reuter Reu·ter , Baron Paul Julius von 1816-1899. German-born British journalist who founded (1848) Reuter's, one of the first international news agencies. Equities 3000 Service under AVE.L. Additional information is available on Avis Europe's internet site: www.avis-europe.com.
Consolidated Profit and Loss Account
for the year ended 31 December
2002 2002
2002(1) (EUR) (pounds)
Notes $'000 '000 '000
----------------------------------------------------------------------
Revenue 1,113,155 1,189,202 747,501
Cost of sales (560,578) (598,875) (376,510)
----------------------------------------------------------------------
Gross profit 552,577 590,327 370,991
Administrative expenses (2002:
including exceptional items) (397,119) (424,249) (266,266)
----------------------------------------------------------------------
Operating profit before goodwill
amortisation and exceptional items 174,612 186,541 117,686
Amortisation of goodwill (3,771) (4,029) (2,527)
Exceptional items (15,383) (16,434) (10,434)
------------ ------------------------
Operating profit 155,458 166,078 104,725
Share of operating loss from
joint ventures (2001: including
exceptional item) (1,060) (1,132) (708)
Share of operating loss
from associated undertaking (67) (72) (46)
Net interest payable (59,034) (63,067) (39,618)
----------------------------------------------------------------------
Profit on ordinary
activities before taxation,
goodwill amortisation
and exceptional items 114,451 122,270 77,314
Amortisation of goodwill (3,771) (4,029) (2,527)
Exceptional items (15,383) (16,434) (10,434)
------------ ------------------------
Profit on ordinary
activities before taxation 95,297 101,807 64,353
Taxation (19,509) (20,841) (13,147)
----------------------------------------------------------------------
Profit on ordinary
activities after taxation 75,788 80,966 51,206
Minority interests - equity (120) (129) (81)
----------------------------------------------------------------------
Profit for the year before
goodwill amortisation and
exceptional items 89,959 96,105 60,787
Amortisation of goodwill (3,771) (4,029) (2,527)
Exceptional items (10,520) (11,239) (7,135)
----------------------------------------------------------------------
Profit for the year 75,668 80,837 51,125
Dividends 2 (50,123) (53,547) (33,991)
----------------------------------------------------------------------
Retained profit for the year 25,545 27,290 17,134
----------------------------------------------------------------------
Earnings per share
(dollar cents/euro cents/
sterling pence per share) 3
Basic 12.9 13.8 8.7
----------------------------------------------------------------------
Diluted 12.9 13.8 8.7
----------------------------------------------------------------------
Adjusted 15.4 16.4 10.4
----------------------------------------------------------------------
Consolidated Profit and Loss Account
for the year ended 31 December
2001 2001
2001 (EUR) (pounds)
$'000 '000 '000
----------------------------------------------------------------------
Revenue 1,126,953 1,255,392 782,513
Cost of sales (563,976) (628,252) (391,710)
----------------------------------------------------------------------
Gross profit 562,977 627,140 390,803
Administrative expenses (2002:
including exceptional items) (373,028) (415,543) (259,276)
----------------------------------------------------------------------
Operating profit before
goodwill amortisation
and exceptional items 193,537 215,594 134,018
Amortisation of goodwill (3,588) (3,997) (2,491)
Exceptional items - - -
Operating profit 189,949 211,597 131,527
Share of operating loss from
joint ventures (2001: including
exceptional item) (3,832) (4,268) (2,644)
Share of operating loss from
associated undertaking (43) (48) (30)
Net interest payable (63,702) (70,962) (44,271)
----------------------------------------------------------------------
Profit on ordinary
activities before taxation,
goodwill amortisation
and exceptional items 129,486 144,243 89,504
Amortisation of goodwill (3,588) (3,997) (2,491)
Exceptional items (3,526) (3,927) (2,431)
----------------------------------------------------------------------
Profit on ordinary
activities before taxation 122,372 136,319 84,582
Taxation (26,922) (29,990) (18,608)
----------------------------------------------------------------------
Profit on ordinary
activities after taxation 95,450 106,329 65,974
Minority interests - equity (209) (233) (144)
----------------------------------------------------------------------
Profit for the year before
goodwill amortisation and
exceptional items 101,579 113,158 70,217
Amortisation of goodwill (3,588) (3,997) (2,491)
Exceptional items (2,750) (3,065) (1,896)
----------------------------------------------------------------------
Profit for the year 95,241 106,096 65,830
Dividends 2 (49,136) (54,736) (33,928)
----------------------------------------------------------------------
Retained profit for the year 46,105 51,360 31,902
----------------------------------------------------------------------
Earnings per share
(dollar cents/euro cents/
sterling pence per share) 3
Basic 16.3 18.2 11.3
----------------------------------------------------------------------
Diluted 16.2 18.1 11.3
----------------------------------------------------------------------
Adjusted 17.4 19.4 12.0
----------------------------------------------------------------------
Consolidated Statement of Total Recognised Gains and Losses
for the year ended 31 December
2002 2002
2002(1) (EUR) (pounds)
$'000 '000 '000
----------------------------------------------------------------------
Profit for the year 75,668 80,837 51,125
Exchange adjustments (6,260) (6,688) (1,741)
Taxation on exchange adjustments 2,638 2,818 1,737
----------------------------------------------------------------------
Total recognised gains and losses 72,046 76,967 51,121
----------------------------------------------------------------------
Consolidated Statement of Total Recognised Gains and Losses
for the year ended 31 December
2001 2001
2001 (EUR) (pounds)
$'000 '000 '000
----------------------------------------------------------------------
Profit for the year 95,241 106,096 65,830
Exchange adjustments (2,495) (2,779) (1,444)
Taxation on exchange adjustments 380 423 174
----------------------------------------------------------------------
Total recognised gains and losses 93,126 103,740 64,560
----------------------------------------------------------------------
(1) US Dollar equivalents are provided for reader convenience at
the 2002 average rate of $0.9361 = 1 euro (December 31, 2001
rate of $0.8977 = 1 euro)
Consolidated Balance Sheet
At 31 December
2002(2) 2002 2002
$'000 (EUR)'000 (pounds)'000
----------------------------------------------------------------------
Intangible fixed assets
Goodwill 60,286 64,405 41,431
----------------------------------------------------------------------
Tangible fixed assets
- vehicles 1,228,495 1,312,421 844,260
- other 74,592 79,688 51,263
----------------------------------------------------------------------
1,303,087 1,392,109 895,523
Investments 3,981 4,253 2,736
----------------------------------------------------------------------
1,307,068 1,396,362 898,259
----------------------------------------------------------------------
Total fixed assets 1,367,354 1,460,767 939,690
----------------------------------------------------------------------
Current assets
Debtors 494,606 528,395 339,909
Investments 105,903 113,138 72,780
Cash at bank and in hand 38,851 41,506 26,700
----------------------------------------------------------------------
639,360 683,039 439,389
----------------------------------------------------------------------
Creditors amounts falling
due within one year
Bank and other loans (170,057) (181,675) (116,868)
Other creditors (930,276) (993,829) (639,317)
----------------------------------------------------------------------
(1,100,333) (1,175,504) (756,185)
----------------------------------------------------------------------
Net current liabilities (460,973) (492,465) (316,796)
----------------------------------------------------------------------
Total assets less current
liabilities 906,381 968,302 622,894
----------------------------------------------------------------------
Creditors amounts falling due
after more than one year
Bank and other loans (695,155) (742,646) (477,733)
Other creditors (32,798) (35,039) (22,540)
---------------------------------------------------------------------
(727,953) (777,685) (500,273)
Provisions for
liabilities and charges (75,371) (80,520) (51,797)
----------------------------------------------------------------------
103,057 110,097 70,824
----------------------------------------------------------------------
Capital and reserves
Called-up share capital 7,566 8,083 5,858
Share premium 819,967 875,984 634,757
Profit and loss account (725,025) (774,556) (570,168)
----------------------------------------------------------------------
Total shareholders'
funds - equity 102,508 109,511 70,447
Minority interests - equity 549 586 377
----------------------------------------------------------------------
103,057 110,097 70,824
----------------------------------------------------------------------
Consolidated Balance Sheet
At 31 December
2001 2001 2001
$'000 (EUR)'000 (pounds)'000
---------------------------------------------------------------------
Intangible fixed assets
Goodwill 63,418 70,646 43,753
---------------------------------------------------------------------
Tangible fixed assets
- vehicles 1,192,584(1) 1,328,503(1) 822,775(1)
- other 63,987 71,280 44,146
---------------------------------------------------------------------
1,256,571 1,399,783 866,921
Investments 5,053 5,629 3,486
---------------------------------------------------------------------
1,261,624 1,405,412 870,407
---------------------------------------------------------------------
Total fixed assets 1,325,042 1,476,058 914,160
---------------------------------------------------------------------
Current assets
Debtors 509,494(1) 567,560(1) 351,504(1)
Investments 438 488 302
Cash at bank and in hand 19,325 21,528 13,333
---------------------------------------------------------------------
529,257 589,576 365,139
---------------------------------------------------------------------
Creditors amounts falling
due within one year
Bank and other loans (237,073) (264,092) (163,559)
Other creditors (921,916) (1,026,987) (636,038)
---------------------------------------------------------------------
(1,158,989) (1,291,079) (799,597)
---------------------------------------------------------------------
Net current liabilities (629,732) (701,503) (434,458)
---------------------------------------------------------------------
Total assets less
current liabilities 695,310 774,555 479,702
---------------------------------------------------------------------
Creditors amounts falling
due after more than one year
Bank and other loans (514,050) (572,637) (354,649)
Other creditors (32,863) (36,608) (22,672)
---------------------------------------------------------------------
(546,913) (609,245) (377,321)
Provisions for liabilities
and charges (71,921) (80,118) (49,619)
---------------------------------------------------------------------
76,476 85,192 52,762
---------------------------------------------------------------------
Capital and reserves
Called-up share capital 7,245 8,071 5,850
Share premium 784,597 874,018 633,541
Profit and loss account (715,956) (797,554) (587,036)
---------------------------------------------------------------------
Total shareholders' funds - equity 75,886 84,535 52,355
Minority interests - equity 590 657 407
---------------------------------------------------------------------
76,476 85,192 52,762
---------------------------------------------------------------------
(1) Comparatives restated, see Note 4.
(2) US Dollar equivalents are provided for reader convenience at
the 2002 average rate of $0.9361 = 1 euro (December 31, 2001
rate of $0.8977 = 1 euro)
Consolidated Cash Flow Statement
for the year ended 31 December
2002(2) 2002 2002
$'000 (EUR)'000 (pounds)'000
----------------------------------------------------------------------
Net cash inflow from
operating activities 485,453 518,617 328,227
----------------------------------------------------------------------
Returns on investments and
servicing of finance
Interest received 4,692 5,013 3,167
Interest paid (53,643) (57,308) (36,080)
Interest element of finance
lease rental payments (11,171) (11,934) (7,497)
Dividend paid to minority
interests (187) (200) (126)
----------------------------------------------------------------------
(60,309) (64,429) (40,536)
----------------------------------------------------------------------
Taxation (1,878) (2,006) (1,436)
----------------------------------------------------------------------
Capital expenditure and
financial investment
Purchase of
tangible fixed assets (1,569,145) (1,676,345) (1,053,267)
Sale of tangible fixed assets 2,066,375 2,207,543 1,383,133
Sale of fixed asset investments - - -
----------------------------------------------------------------------
497,230 531,198 329,866
----------------------------------------------------------------------
Acquisitions and disposals
Purchase of subsidiary
undertakings - - -
Cash balances acquired with
subsidiary undertakings - - -
----------------------------------------------------------------------
- - -
----------------------------------------------------------------------
Equity dividends paid (51,312) (54,817) (33,954)
----------------------------------------------------------------------
Management of liquid resources
(Purchase) / sale of
current asset investments (105,466) (112,671) (70,666)
----------------------------------------------------------------------
Financing
Issue of ordinary share capital 1,456 1,556 962
Repayment of capital element
of finance leases (826,269) (882,717) (553,740)
(Decrease) / increase in
short term loans (202,253) (216,070) (133,215)
Increase / (decrease) in long
term loans 283,189 302,535 187,697
----------------------------------------------------------------------
(743,877) (794,696) (498,296)
----------------------------------------------------------------------
Increase / (decrease) in cash 19,841 21,196 13,205
----------------------------------------------------------------------
Consolidated Cash Flow Statement
for the year ended 31 December
2001 2001 2001
$'000 (EUR)'000 (pounds)'000
---------------------------------------------------------------------
Net cash inflow from
operating activities 474,085(1) 528,116(1) 326,435(1)
---------------------------------------------------------------------
Returns on investments and
servicing of finance
Interest received 2,617 2,915 1,817
Interest paid (54,738) (60,976) (37,933)
Interest element of finance
lease rental payments (12,688) (14,134) (8,825)
Dividend paid to minority
interests (127) (141) (88)
---------------------------------------------------------------------
(64,936) (72,336) (45,029)
---------------------------------------------------------------------
Taxation (22,474) (25,035) (15,344)
---------------------------------------------------------------------
Capital expenditure and
financial investment
Purchase of tangible
fixed assets (1,787,775)(1) (1,991,527)(1)(1,240,011)(1)
Sale of tangible
fixed assets 2,182,243(1) 2,430,953(1) 1,518,695(1)
Sale of fixed
asset investments 46 51 31
---------------------------------------------------------------------
394,514 439,477 278,715
---------------------------------------------------------------------
Acquisitions and disposals
Purchase of subsidiary
undertakings (2,023) (2,253) (1,421)
Cash balances acquired with
subsidiary undertakings 3 3 2
---------------------------------------------------------------------
(2,020) (2,250) (1,419)
---------------------------------------------------------------------
Equity dividends paid (48,781) (54,341) (33,917)
---------------------------------------------------------------------
Management of liquid resources
(Purchase) / sale of current
asset investments 8,599 9,579 5,934
---------------------------------------------------------------------
Financing
Issue of ordinary share capital 473 527 327
Repayment of capital element of
finance leases (686,685) (764,947) (476,954)
(Decrease) / increase in
short term loans 32,356 36,044 21,943
Increase / (decrease)
in long term loans (91,601) (102,041) (64,569)
---------------------------------------------------------------------
(745,457) (830,417) (519,253)
---------------------------------------------------------------------
Increase / (decrease) in cash (6,470) (7,207) (3,878)
---------------------------------------------------------------------
(1) Comparatives restated, see Note 4.
(2) US Dollar equivalents are provided for reader convenience at
the 2002 average rate of $0.9361 = 1 euro (December 31, 2001
rate of $0.8977 = 1 euro)
Notes to the Financial Statements Notes to the financial statements A detailed set of notes immediately following the financial statements in an annual report that explain and expand on the information in the financial statements. for the year ended 31 December 1 Basis of accounting and preparation -------------------------------------- The Financial Statements have been prepared under the historical cost convention and in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with applicable accounting standards. They have been prepared on the basis of the accounting policies set out in the Group's 2001 Annual Report and Accounts, all of which have been applied consistently throughout the year and preceding year, except for changes to deferred taxation and unregistered cars. During the year, the Group adopted FRS 19, Deferred tax, and there was no material impact on the Financial Statements. The Group has also changed the classification of unregistered cars from prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. to fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → to ensure a consistent treatment with cars in use by the business. The impact of this change on the comparative balances is set out in note 6. The financial information included in this statement does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The statutory accounts of the Company for the year ended 31 December 2002, on which the auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together have given an unqualified opinion Unqualified opinion An independent auditor's opinion that a company's financial statements comply with accepted accounting procedures. Antithesis of qualified opinion. unqualified opinion See clean opinion. , will be filed with the Registrar of Companies The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. in due course. The statutory accounts of the Company for the year ended 31 December 2001, on which the auditors have given an unqualified opinion, have been filed with the Registrar of Companies. As a significant proportion of the Group's revenues, costs and funding arise in euros, the Directors consider that the Group's functional currency is the euro and accordingly, the Group's Financial Statements present the results in both euro and sterling currencies. The Company's statutory accounts continue to be reported to be spoken of; to be mentioned, whether favorably or unfavorably. See also: Report in sterling. Further financial information is available from the internet site at http://www.avis-europe.com and a hard copy of this information can be obtained from the Company Secretary, Avis Europe plc, Avis House, Park Road, Bracknell, Berkshire Berkshire (bärk`shĭr, –shər, bûrk`–) or Berks (bärks, bûrks), former county, S central England. , RG12 2EW, United Kingdom.
2002 2002 2002 2001 2001 2001
2 Dividends $ (EUR) (pounds) $ (EUR) (pounds)
---------------------------------------------------------------------
Interim
dividend 0.030 0.032 0.020 0.029 0.032 0.020
Proposed
final
dividend 0.057 0.061 0.038 0.055 0.061 0.038
---------------------------------------------------------------------
0.087 0.093 0.058 0.084 0.093 0.058
---------------------------------------------------------------------
(EUR) (pounds) (EUR) (pounds)
$'000 '000 '000 $'000 '000 '000
---------------------------------------------------------------------
Interim
dividend 17,371 18,558 18,890 16,957 18,890 11,697
Proposed
final
dividend 32,752 34,989 35,846 32,179 35,846 22,231
---------------------------------------------------------------------
50,123 53,547 54,736 49,136 54,736 33,928
---------------------------------------------------------------------
Notes to the Financial Statements (continued)
3 Earnings per share
---------------------------------------------------------------------
Basic earnings per share is based on the profit for the year which
has also been used to calculate the diluted earnings per share.
Adjusted earnings per share is calculated after adjusting for
exceptional items and goodwill amortisation to highlight the ongoing
trading performance of the Group.
2002 2002 2001 2001
2002 (EUR) (pounds) 2001 (EUR) (pounds)
$'000 '000 '000 $'000 '000 '000
---------------------------------------------------------------------
Profit 75,668 80,837 51,125 95,241 106,096 65,830
Amortisation
of goodwill 3,771 4,029 2,527 3,588 3,997 2,491
Exceptional
items 15,383 16,434 10,434 3,526 3,927 2,431
Taxation on
exceptional
items (4,863) (5,195) (3,299) (774) (862) (535)
---------------------------------------------------------------------
Adjusted
profit pre
goodwill
and
exceptional
items 89,959 96,105 60,787 101,581 113,158 70,217
---------------------------------------------------------------------
2002 2002 2002 2001 2001 2001
Dollar Euro Pence Dollar Euro Pence
Cents Cents Cents Cents
---------------------------------------------------------------------
Basic
earnings
per share 12.9 13.8 8.7 16.3 18.2 11.3
Adjustment
re
potentially
dilutive
share
options - - - (0.1) (0.1) -
---------------------------------------------------------------------
Diluted
earnings
per share 12.9 13.8 8.7 16.2 18.1 11.3
---------------------------------------------------------------------
Basic
earnings
per share 12.9 13.8 8.7 16.3 18.2 11.3
Amortisation
of goodwill 0.7 0.7 0.4 0.6 0.7 0.4
Exceptional
items 2.6 2.8 1.9 0.6 0.6 0.4
Taxation on
exceptional
items (0.8) (0.9) (0.6) (0.1) (0.1) (0.1)
---------------------------------------------------------------------
Adjusted
earnings
per share 15.4 16.4 10.4 17.4 19.4 12.0
---------------------------------------------------------------------
The weighted average number of shares in issue for the year was 584,561,717 (2001: 583,876,743). The Group has granted options to certain Directors and employees over ordinary shares of Avis Europe plc. Such shares constitute the only category of potentially dilutive ordinary shares of Avis Europe plc and these would have increased the weighted average number of shares in issue by 423,069 in 2002 (2001: 769,728). These options had no impact on profit in either year. 4 Restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. of prior year balances -------------------------------------- The comparative other prepayments have been restated so that amounts included for prepaid but as yet not registered vehicles are now classified as fixed assets. This adjustment amounted to (EUR)63,947,000; (pounds)39,604,000 with an equal and opposite amount being reflected in vehicle fixed assets. Note that for cash flow purposes, the balance at 31 December 2000 has been reduced by (EUR)27,995,000; (pounds)17,112,000. Working capital movements in respect of the purchase and sale of tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. fixed assets were previously included within net operating cash inflow in·flow n. 1. The act or process of flowing in or into: an inflow of water; an inflow of information. 2. . As a result of a change in practice, the comparatives have been restated for the combined effect of this together with the adjustment referred to above. Reported purchase of tangible fixed assets has consequently decreased by (EUR)22,480,000; (pounds)17,137,000 and the sale of tangible fixed assets has increased by (EUR)11,920,000; (pounds)7,673,000. For both of these adjustments, a compensating entry has been made within net operating cash inflow. 5 Subsequent events -------------------- On 28 January 2003, the Group acquired a 50% interest in Anji Car Rental and Leasing Company Limited ("Anji") for a total consideration of US$11,000,000. This consideration is payable in instalments, with an initial investment of US$6,000,000 and four further instalments payable within 30 months bringing the total investment to US$11,000,000. Anji operates in China providing vehicle rental and leasing services under the Avis brand. At the date of acquisition, Anji had estimated net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. of US$17,000,000. On 29 January 2003, the Group completed the purchase of a 100% interest in S.A. Holding Garage des Arenes and its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , S.A. Garage des Arenes ("the Arenes Group"), for a total cash consideration of approximately (EUR)6,170,000. The Arenes Group operates in France providing vehicle rental services under the Avis brand. At the date of acquisition, the Arenes Group had estimated net assets of (EUR)2,847,000. |
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