Rexam Advances Strongly On Robust Beverage Packaging Performance.Business Editors PART TWO OF TWO LONDON--(BUSINESS WIRE)--Aug. 29, 2002 Rexam Rexam PLC (LSE: REX) is a PLC listed on the LSE with headquarters in the UK. Their main businesses are the provision of packaging solutions and the manufacturing of beverage cans. PLC (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : REXMY), the global consumer packaging group, announces its Interim Results for the six months to 30 June June: see month. 2002. NOTES TO THE INTERIM ACCOUNTS 1 Basis of preparation and accounting policies The Interim Accounts, which are unaudited, have been prepared 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 the accounting policies set out in the Rexam PLC 2001 Annual Report and Accounts, except that during 2002 the Group has implemented 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. 19 "Deferred tax". This FRS requires deferred tax to be accounted for on a full provision basis rather than on a partial provision basis as in prior periods. Prior periods have consequently been restated and the effects of these restatements were as follows: profits for the year to 31.12.01 were increased by (pound)1m and 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. were increased by (pound)18m at 30.6.01 and (pound)21m at 31.12.01. FRS 19 requires deferred tax assets and liabilities to be shown on a gross basis on the balance sheet. At 30.6.02 included in `Other debtors receivable after more than one year' is a deferred tax asset of (pound)107m (June 2001: (pound)82m; December December: see month. 2001: (pound)115m) and within `Provisions for liabilities and charges' a deferred tax liability of (pound)92m (June 2001: (pound)87m; December 2001: (pound)87m). The tax charge on ordinary activities before exceptional items is calculated by reference to the estimated effective tax rate for the full year 2002. Taxation on exceptional items is based on the expected taxation impact of each transaction. The Interim Accounts for the six months to 30.6.01 and the Annual Accounts for the year to 31.12.01 have been restated to reflect the discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. of Image Products, Combibloc, High Performance Flexibles and Metallising Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. . The segment analysis for the six months to 30.6.01 has been restated to reflect the movement into "Disposals and businesses for sale" of Flexibles Lakeville Lakeville is the name of several places in the United States:
Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. , Holmia Hol´mi`a n. 1. (Chem.) An oxide of holmium. and Langeskov Langeskov is a town in central Denmark, located in Kerteminde municipality in Region Syddanmark on the island of Funen. The town of Langeskov is primarily located in Rønninge parish and was established following the construction of the railway line between Odense and Nyborg from "Plastic Packaging" and Rexam Japan from "Beverage Packaging". The segment analysis for the year to 31.12.01 has been restated to reflect the movement into "Disposals and businesses for sale" of Containers Portsmouth Portsmouth, city, England Portsmouth, city (1991 pop. 174,218) and district, Hampshire, S England, on Spithead Channel. The district includes Portsea (naval station), Southsea (residential district and resort), and the old town of Portsmouth proper. , Closures Mexico, Holmia and Langeskov from "Plastic Packaging". The consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: profit and loss account, statement of total recognised gains and losses and consolidated cash flow statement for the year to 31.12.01 and the consolidated balance sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. at 31.12.01 are an abridged statement, after adjusting for the effects of implementing FRS 19, of the full Annual Accounts for that year which have been delivered to 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. . The independent auditors' report on the Annual Accounts for the year to 31.12.01 was unqualified and did not contain a statement under either section 237 (2) or section 237 (3) of the Companies Act 1985.
2 Segment analysis
Operating profit
before goodwill
amortisation and
exceptional Operating
Turnover items profit
(pound)m (pound)m (pound)m
------------ -------------- --------------
------------ -------------- --------------
Six months to 30.6.02
Beverage Packaging 1,210 129 98
Plastic Packaging 338 25 22
------------ -------------- --------------
------------ -------------- --------------
Consumer Packaging 1,548 154 120
Retirement benefits - 17 17
------------ -------------- --------------
------------ -------------- --------------
1,548 171 137
Taxation and dividends - - -
------------ -------------- --------------
------------ -------------- --------------
Ongoing operations 1,548 171 137
Disposals and businesses
for sale 32 4 4
------------ -------------- --------------
------------ -------------- --------------
Continuing operations 1,580 175 141
Discontinued operations 88 2 2
------------ -------------- --------------
------------ -------------- --------------
1,668 177 143
------------ -------------- --------------
------------ -------------- --------------
United Kingdom and Ireland 205 14 8
Continental Europe 584 65 53
The Americas 732 77 62
Rest of the world 59 2 1
Retirement benefits - 17 17
Taxation and dividends - - -
------------ -------------- --------------
------------ -------------- --------------
Continuing operations 1,580 175 141
Discontinued operations 88 2 2
------------ -------------- --------------
------------ -------------- --------------
1,668 177 143
------------ -------------- --------------
Net assets
Return on before Net
sales goodwill assets
% (pound)m (pound)m
------------ ------------- -----------
------------ ------------- -----------
Six months to 30.6.02
Beverage Packaging 10.7 884 1,996
Plastic Packaging 7.4 395 500
------------ ------------- -----------
------------ ------------- -----------
Consumer Packaging 9.9 1,279 2,496
Retirement benefits - 55 55
------------ ------------- -----------
------------ ------------- -----------
11.0 1,334 2,551
Taxation and dividends - (108) (108)
------------ ------------- -----------
------------ ------------- -----------
Ongoing operations 11.0 1,226 2,443
Disposals and businesses
for sale 12.5 9 9
------------ ------------- -----------
------------ ------------- -----------
Continuing operations 11.1 1,235 2,452
Discontinued operations 2.3 7 7
------------ ------------- -----------
------------ ------------- -----------
10.6 1,242 2,459
------------ ------------- -----------
------------ ------------- -----------
United Kingdom and Ireland 6.8 197 425
Continental Europe 11.1 566 982
The Americas 10.5 442 969
Rest of the world 3.4 83 129
Retirement benefits - 55 55
Taxation and dividends - (108) (108)
------------ ------------- -----------
------------ ------------- -----------
Continuing operations 11.1 1,235 2,452
Discontinued operations 2.3 7 7
------------ ------------- -----------
------------ ------------- -----------
10.6 1,242 2,459
------------ ------------- -----------
2 Segment analysis (continued)
Operating profit
before goodwill
amortisation and
exceptional Operating
Turnover items profit
(pound)m (pound)m (pound)m
---------- -------------- --------------
Six months to 30.6.01
Beverage Packaging 1,136 99 68
Plastic Packaging 327 22 21
---------- -------------- --------------
---------- -------------- --------------
Consumer Packaging 1,463 121 89
Retirement benefits - 15 15
---------- -------------- --------------
---------- -------------- --------------
1,463 136 104
Taxation and dividends - - -
---------- -------------- --------------
---------- -------------- --------------
Ongoing operations 1,463 136 104
Disposals and businesses
for sale 93 8 8
---------- -------------- --------------
---------- -------------- --------------
Continuing operations 1,556 144 112
Discontinued operations 248 21 20
---------- -------------- --------------
---------- -------------- --------------
1,804 165 132
---------- -------------- --------------
---------- -------------- --------------
United Kingdom and Ireland 226 20 14
Continental Europe 546 59 48
The Americas 713 46 32
Rest of the world 71 4 3
Retirement benefits - 15 15
Taxation and dividends - - -
---------- -------------- --------------
---------- -------------- --------------
Continuing operations 1,556 144 112
Discontinued operations 248 21 20
---------- -------------- --------------
---------- -------------- --------------
1,804 165 132
---------- -------------- --------------
Net assets
Return on before Net
sales goodwill assets
% (pound)m (pound)m
------------ ------------- ------------
Six months to 30.6.01
Beverage Packaging 8.7 933 2,099
Plastic Packaging 6.7 397 448
------------ ------------- ------------
------------ ------------- ------------
Consumer Packaging 8.3 1,330 2,547
Retirement benefits - (40) (40)
------------ ------------- ------------
------------ ------------- ------------
9.3 1,290 2,507
Taxation and dividends - (146) (146)
------------ ------------- ------------
------------ ------------- ------------
Ongoing operations 9.3 1,144 2,361
Disposals and businesses
for sale 8.6 77 79
------------ ------------- ------------
------------ ------------- ------------
Continuing operations 9.3 1,221 2,440
Discontinued operations 8.5 173 190
------------ ------------- ------------
------------ ------------- ------------
9.1 1,394 2,630
------------ ------------- ------------
------------ ------------- ------------
United Kingdom and Ireland 8.8 301 542
Continental Europe 10.8 588 986
The Americas 6.5 416 945
Rest of the world 5.6 102 153
Retirement benefits - (40) (40)
Taxation and dividends - (146) (146)
------------ ------------- ------------
------------ ------------- ------------
Continuing operations 9.3 1,221 2,440
Discontinued operations 8.5 173 190
------------ ------------- ------------
------------ ------------- ------------
9.1 1,394 2,630
------------ ------------- ------------
2 segment analysis (continued)
Operating profit
before goodwill
amortisation and
exceptional Operating
Turnover items profit
(pound)m (pound)m (pound)m
---------- ------------ --------------
Year to 31.12.01
Beverage Packaging 2,306 214 133
Plastic Packaging 638 48 28
---------- ------------ --------------
---------- ------------ --------------
Consumer Packaging 2,944 262 161
Retirement benefits - 33 33
---------- ------------ --------------
---------- ------------ --------------
2,944 295 194
Taxation and dividends - - -
---------- ------------ --------------
---------- ------------ --------------
Ongoing operations 2,944 295 194
Disposals and businesses for
sale 169 17 17
---------- ------------ --------------
---------- ------------ --------------
Continuing operations 3,113 312 211
Discontinued operations 375 21 (47)
---------- ------------ --------------
---------- ------------ --------------
3,488 333 164
---------- ------------ --------------
---------- ------------ --------------
United Kingdom and Ireland 459 49 20
Continental Europe 1,086 120 84
The Americas 1,427 102 69
Rest of the world 141 8 5
Retirement benefits - 33 33
Taxation and dividends - - -
---------- ------------ --------------
---------- ------------ --------------
Continuing operations 3,113 312 211
Discontinued operations 375 21 (47)
---------- ------------ --------------
---------- ------------ --------------
3,488 333 164
---------- ------------ --------------
Net assets
Return on before Net
sales goodwill assets
% (pound)m (pound)m
------------- -------------- ------------
Year to 31.12.01
Beverage Packaging 9.3 795 1,933
Plastic Packaging 7.5 335 391
------------- -------------- ------------
------------- -------------- ------------
Consumer Packaging 8.9 1,130 2,324
Retirement benefits - 35 35
------------- -------------- ------------
------------- -------------- ------------
10.0 1,165 2,359
Taxation and dividends - (93) (93)
------------- -------------- ------------
------------- -------------- ------------
Ongoing operations 10.0 1,072 2,266
Disposals and businesses for
sale 10.1 22 24
------------- -------------- ------------
------------- -------------- ------------
Continuing operations 10.0 1,094 2,290
Discontinued operations 5.6 78 78
------------- -------------- ------------
------------- -------------- ------------
9.5 1,172 2,368
------------- -------------- ------------
------------- -------------- ------------
United Kingdom and Ireland 10.7 180 410
Continental Europe 11.0 510 915
The Americas 7.1 382 895
Rest of the world 5.7 80 128
Retirement benefits - 35 35
Taxation and dividends - (93) (93)
------------- -------------- ------------
------------- -------------- ------------
Continuing operations 10.0 1,094 2,290
Discontinued operations 5.6 78 78
------------- -------------- ------------
------------- -------------- ------------
9.5 1,172 2,368
------------- -------------- ------------
Return on sales Return on sales A measurement of operational efficiency equalingnet pre-tax profits divided by net sales expressed as a percentage. return on sales The portion of each dollar of sales that a firm is able to turn into income. is based upon 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 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 divided by turnover. Net assets comprise To embrace, cover, or include; to confine within; to consist of. In the law governing patents—grants of an exclusive right or privilege to make, use, or sell an invention or product for a term of years—the term comprise total assets less current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. , creditors falling due after more than one year and provisions for liabilities and charges, excluding net borrowings. The Group's share of turnover and operating profits less losses of associated undertakings, proportionate pro·por·tion·ate adj. Being in due proportion; proportional. tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates To make proportionate. to its equity holdings, has been included where appropriate. There is no significant trading between business sectors or geographical ge·o·graph·ic also ge·o·graph·i·cal adj. 1. Of or relating to geography. 2. Concerning the topography of a specific region. ge regions.
3 Turnover of associates
6 months 6 months Year
to 30.6.02 to 30.6.01 to 31.12.01
(pound)m (pound)m (pound)m
------------ ------------ --------------
Continuing operations 39 48 100
Discontinued operations 1 - 1
------------ ------------ --------------
------------ ------------ --------------
40 48 101
------------ ------------ --------------
4 Exceptional items
6 months 6 months Year
to 30.6.02 to 30.6.01 to 31.12.01
(pound)m (pound)m (pound)m
------------ ----------- ------------
Exceptional items included
in operating profit:
ANC integration costs - - (8)
Reorganisation costs - - (21)
Fixed assets impaired - - (73)
------------ ----------- ------------
------------ ----------- ------------
- - (102)
------------ ----------- ------------
------------ ----------- ------------
------------ ----------- ------------
------------ ----------- ------------
Loss on fixed assets (3) - -
------------ ----------- ------------
------------ ----------- ------------
Disposals of businesses:
(Loss)/profit before
attributable goodwill written
off (18) 84 330
Attributable capitalised
goodwill written off (2) (11) (32)
Attributable goodwill in
reserves written off (188) (76) (118)
------------ ----------- ------------
------------ ----------- ------------
(208) (3) 180
------------ ----------- ------------
------------ ----------- ------------
------------ ----------- ------------
------------ ----------- ------------
Exceptional financing item(a) (36) -
------------ ----------- ------------
------------ ----------- ------------
Taxation arising on exceptional
items:
Disposals of businesses (3) (15) 4
Reorganisation costs - - (4)
------------ ----------- ------------
------------ ----------- ------------
(3) (15) -
------------ ----------- ------------
------------ ----------- ------------
------------ ----------- ------------
------------ ----------- ------------
Total exceptional items (250) (18) 78
------------ ----------- ------------
------------ ----------- ------------
Continuing operations (57) 1 (38)
Discontinued operations (193) (19) 116
------------ ----------- ------------
------------ ----------- ------------
(250) (18) 78
------------ ----------- ------------
(a) The exceptional financing item relates to an anticipated payment
to certain banks in connection with the purchase from them of
loans made to Rexam's Russian beverage can plant and arises as a
result of the improved results of that business. Further details
can be found in the Appendix to the Operating and Financial Review
on page 18.
5 Earnings per share
6 months 6 months Year
to 30.6.02 to 30.6.01 to 31.12.01
pence pence pence
------------ ----------- ------------
Earnings/(loss) per ordinary
share (basic):
Before goodwill amortisation
and exceptional items 21.3 17.1 36.9
Including goodwill amortisation
and exceptional items (45.1) 4.1 39.7
------------ ----------- ------------
------------ ----------- ------------
Earnings/(loss) per ordinary
share (diluted):
Before goodwill amortisation and
exceptional items 20.5 16.7 35.5
Including goodwill amortisation
and exceptional items(b) (45.1) 4.1 38.1
------------ ----------- ------------
------------ ----------- ------------
(b) There was no dilution in the 6 months to 30.6.02 or the 6 months
to 30.6.01 arising from the conversion of preference shares or the
exercise of outstanding share options
6 months 6 months Year
to 30.6.02 to 30.6.01 to 31.12.01
(pound)m (pound)m (pound)m
------------ ----------- ------------
------------ ----------- ------------
Profit attributable to ordinary
shareholders before
exceptional items
and goodwill amortisation 91 67 145
Dilution on conversion of
preference shares 3 3 5
------------ ----------- ------------
------------ ----------- ------------
Earnings before exceptional
items and goodwill
amortisation on a diluted basis 94 70 150
------------ ----------- ------------
------------ ----------- ------------
(Loss)/profit attributable to
ordinary shareholders (193) 16 156
Dilution on conversion of
preference shares 3 3 5
------------ ----------- ------------
------------ ----------- ------------
Earnings on a diluted basis (190) 19 161
------------ ----------- ------------
------------ ----------- ------------
6 months 6 months Year
to 30.6.02 to 30.6.01 to 31.12.01
Number Number Number
millions millions millions
----------- ----------- -------------
----------- ----------- -------------
Average number of
shares in issue for the period 428.2 391.3 393.1
Dilution on conversion
of preference shares 24.4 24.4 24.4
Dilution on exercise of
outstanding share options 5.3 3.6 4.6
----------- ----------- -------------
----------- ----------- -------------
On a diluted basis 457.9 419.3 422.1
----------- ----------- -------------
----------- ----------- -------------
The number of shares in issue
at the end of the period 434.8 397.0 430.5
----------- ----------- -------------
6 Ordinary dividends on equity shares
6 months 6 months Year
to 30.6.02 to 30.6.01 to 31.12.01
(pound)m (pound)m (pound)m
----------- ----------- ------------
2002 interim dividend
of 7.0p payable 6 November 2002 30 - -
2001 final dividend
of 9.2p paid 5 June 2002 - - 39
2001 interim dividend
of 6.7p paid 5 November 2001 - 26 26
----------- ----------- ------------
----------- ----------- ------------
30 26 65
----------- ----------- ------------
7 Exchange rates
6 months 6 months Year
to 30.6.02 to 30.6.01 to 31.12.01
(pound)m (pound)m (pound)m
-------------- ------------ --------------
Average:
United States dollar 1.44 1.44 1.44
Euro 1.61 1.60 1.61
------------ ------------ --------------
Closing:
United States dollar 1.52 1.42 1.45
Euro 1.54 1.64 1.64
------------ ------------ --------------
8 Financial information A copy of the information to be provided to financial analysts is available on request from the Company Secretary, Rexam PLC at 4 Millbank For other places called Millbank, see Millbank (disambiguation) Coordinates: Millbank is an area of central London in the City of Westminster. Millbank is located by the Thames, east of Pimlico and south of Westminster. , London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. , SW1P 3XR. INDEPENDENT REVIEW REPORT TO REXAM PLC Introduction We have been instructed by the Company to review the financial information for the six months to 30 June 2002 which comprises the consolidated profit and loss account, consolidated balance sheet, consolidated cash flow statement, statement of total recognised gains and losses, reconciliation of movements in Shareholders' funds and the related notes 1 to 7. We have read the other information contained in the Interim Report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information. Directors' responsibilities The Interim Report, including the financial information contained therein, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the Interim Report in accordance with the Listing Rules of the Financial Services Authority The Financial Services Authority ("FSA") is an independent non-departmental public body and quasi-judicial body that regulates the financial services industry in the United Kingdom. Its main office is based in Canary Wharf, London, with another office in Edinburgh. which require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding Annual Accounts except where any changes, and the reasons for them, are disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). . Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4 `Review of interim financial information' issued by the Auditing Practices Board for use in the United Kingdom. A review consists principally of making enquiries of group management and applying analytical procedures Analytical Procedures is one of financial audit skill which help an auditor understand the client's business and changes in the business, to identify potential risk areas and to plan other audit procedures. to the financial information and underlying financial data, and based thereon there·on adv. 1. On or upon this, that, or it. 2. Archaic Following that immediately; thereupon. Adv. 1. thereon - on that; "text and commentary thereon" on it, on that , assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification See verify. verification - The process of determining whether or not the products of a given phase in the life-cycle fulfil a set of established requirements. of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with United Kingdom Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly, we do not express an audit opinion on the financial information. Review conclusion On the basis of our review, we are not aware of any material modifications that should be made to the financial information as presented for the six months to 30 June 2002. Ernst & Young LLP LLP - Lower Layer Protocol 29 August 2002 |
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