Tate & Lyle Announces Interim Results for the Six Months Ended September 30, 2003.Business Editors LONDON--(BUSINESS WIRE)--Nov. 6, 2003 Tate & Lyle Lyle may refer to:
INTERIM RESULTS TO SEPTEMBER 30 2003 2003 2002
$ million* GBP million GBP million
---------------------------------- ----------- ----------- -----------
Profit before tax, goodwill
amortization and exceptional
items $192m GBP 119m GBP 126m
Profit before taxation $179m GBP 111m GBP 129m
Diluted earnings per share before
goodwill amortization and
exceptional items 28.5 cents 17.7p 18.0p
Diluted earnings per share 26.2 cents 16.3p 18.8p
Interim dividend per share 9.0 cents 5.6p 5.5p
US dollar conversions provided at the average rate for the period of
$1.61 = GBP 1
-- Profit before tax, goodwill amortization and exceptional items of GBP GBP In currencies, this is the abbreviation for the British Pound. 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. 119 million ($192 million) is in line with plan -- Strong operating cashflow of GBP 156 million ($251 million). Net debt reduced by GBP 18 million ($29 million) to GBP 453 million ($729 million) -- Sale of Orsan Orsan is a town and commune in the Gard département, in southern France. France completed July July: see month. 2003 -- Interest cover increased to 8.5 times from 7.2 times -- Good growth from value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. and branded products -- Increase in interim dividend of 0.1p to 5.6p (9.0 cents) per share "While control of costs will always be a priority issue, the delivery of higher profits in the second half of this year than in the comparative period last year will be significantly influenced by our success in selling price negotiations; firstly to recover the prevailing substantially higher wheat wheat, cereal plant of the genus Triticum of the family Gramineae (grass family), a major food and an important commodity on the world grain market. Wheat Varieties and Their Uses and corn costs in 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). , and secondly to
achieve a satisfactory outcome in the annual sweetener SweetenerA special feature added to a debt obligation or preferred stock to promote marketability. Notes: Warrants and convertibles are two popular sweeteners. See also: Convertible Bond, Kicker, Warrant Sweetener pricing round in the USA. These are the principal short term objectives to which we are fully committed (Law) committed to prison for trial, in distinction from being detained for examination. See also: Fully and we anticipate success." Sir David Lees Iain Ferguson Chairman Chief Executive An interim statement incorporating the Group profit and loss account for the six months ended September 30, 2003 will be posted to shareholders shortly, and will be obtainable from The Company Secretary, Tate & Lyle PLC, Sugar Quay QUAY, estates. A wharf at which to load or land goods, sometimes spelled key. 2. In its enlarged sense the word quay, means the whole space between the first row of houses of a city, and the sea or river 5 L. R. 152, 215. , Lower Thames Thames, river, Canada Thames (tĕmz), river, c.160 mi (260 km) long, rising NW of Woodstock, S Ont., Canada, and flowing SW past London and Chatham to Lake St. Clair. Street, 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. EC3R 6DQ. INTERIM REPORT Comparisons are with the six months to September 30, 2002 unless stated otherwise. Overview Profit before tax, goodwill amortization and exceptional items for the six months to September 30, 2003 was GBP 119 million ($192 million). As expected, this was less than the GBP 126 million achieved in the corresponding period, which included the benefit of GBP 5 million of unusual interest credits. Underlying trading was in line with our internal expectations, and benefited from an improved performance from Amylum am·y·lum n. See starch. . The lower interest charge enabled us to improve interest cover to 8.5 times in the half year to September 30, 2003 (7.2 times). We announced on July 31, 2003 the completion of the sale of Orsan, the monosodium glutamate monosodium glutamate: see glutamic acid. monosodium glutamate (MSG) White crystalline substance, a sodium salt of the amino acid glutamic acid. MSG is used to intensify the natural flavour of meats and vegetables. production unit in France. The consideration received to date was GBP 33 million ($53 million). There is a further GBP 8 million ($13 million) due in the second half year subject to closing balance sheet adjustments. The Board has declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. an interim dividend of 5.6p (9.0 cents) per share, an increase of 0.1p (1.8%). This will be paid on January January: see month. 13, 2004 to shareholders registered on December December: see month. 5, 2003. Results for the six months to September 30, 2003 Sales were GBP 1,663 million ($2,677 million) compared to GBP 1,646 million in the comparative period. Sales from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the were also GBP 1,663 million ($2,677 million) compared to GBP 1,584 million. Profit before interest and exceptional items was GBP 133 million ($214 million) compared to GBP 144 million, before a GBP 4 million ($6 million) charge for amortization of goodwill, the same as the previous year's charge. Exchange translation reduced profit before interest by GBP 1 million. The margin of profit before interest, goodwill amortization and exceptional items to sales was 8.0% (8.7%). The interest charge of GBP 14 million ($23 million) was lower than in the comparative period of GBP 18 million and benefited from a substantial reduction in average net debt. Profit before tax, goodwill amortization and exceptional items was GBP 119 million ($192 million) compared with GBP 126 million. Exchange translation reduced profit before tax by GBP 2 million compared to GBP 1 million last year, with the impact of the weaker US dollar being partially offset by the strength of the euro. Profit before tax but after goodwill amortization and exceptional items was GBP 111 million ($179 million) compared with GBP 129 million. The charge for exceptional items of GBP 4 million ($6 million) compared with a gain GBP 7 million, primarily related to closure costs of the citric acid citric acid or 2-hydroxy-1,2,3-propanetricarboxylic acid, HO2CCH2C(OH)(CO2H)CH2CO2 facility in Mexico Mexico, city, Mexico 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. . The rate of tax on profit before goodwill amortization and exceptional items was 29.4% (year to March 31, 2003, 30.7%). Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of before goodwill amortization and exceptional items were 17.7p (28.5 cents) compared with 18.0p, and after exceptional items and goodwill amortization were 16.3p (26.2 cents) compared with 18.8p. The Group continued to generate strong operating cashflow of GBP 156 million ($251 million) compared with GBP 198 million. Capital expenditure totaled GBP 53 million ($85 million) compared to GBP 31 million, and investment committed to the astaxanthin Astaxanthin (pronounced as-tuh-zan'-thin) is a carotenoid. It belongs to a larger class of phytochemicals known as terpenes. It is classified as a xanthophyll, which means "yellow leaves". Like many carotenoids, it is a colorful, fat/oil-soluble pigment. joint venture totaled GBP 15 million ($24 million). Since March 31, 2003 net debt has reduced by GBP 18 million ($29 million) to GBP 453 million ($729 million). 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. Analysis of Profit before Interest and Exceptional Items Americas A·mer·i·cas , the See America. Profits in the segment were GBP 58 million ($93 million), GBP 20 million lower than in the comparative period with exchange translation accounting for GBP 4 million of the reduction. Profits at Staley Staley may refer to: People
v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. through better by-product by·prod·uct or by-prod·uct n. 1. Something produced in the making of something else. 2. A secondary result; a side effect. by-product Noun 1. returns, in particular corn oil corn oil n. A pale yellow liquid obtained from the embryos of corn grains, used especially as a cooking and salad oil and in the manufacture of margarines. Noun 1. . Industry demand for corn-based sweeteners was flat and margins were maintained. Progress was again made in the value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: food ingredients segment. The industrial starch starch, white, odorless, tasteless, carbohydrate powder. It plays a vital role in the biochemistry of both plants and animals and has important commercial uses. market benefited from improved selling prices and a better product mix. Citric acid spot selling prices improved for the first time in three years. This was due to a tightening of supply from the closure of our Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum plant (completed ahead of target in July 2003), the announced conversion of a part of our UK facility to a new product, astaxanthin, together with plant shutdowns by some of our competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. . Almex in Mexico remains profitable despite the impact of the tax on soft drinks containing high fructose fructose (frŭk`tōs), levulose (lĕv`yəlōs'), or fruit sugar, simple sugar found in honey and in the fruit and other parts of plants. corn syrup corn syrup Sweet syrup produced by breaking down (hydrolyzing) cornstarch (a product of corn). Corn syrup contains dextrins, maltose, and dextrose and is used in baked goods, jelly and jam, and candy. . Occidente, our Mexican cane sugar cane sugar: see sucrose. producer, improved due to higher selling prices as a result of the same tax. Redpath Redpath may refer to: People:
v. re·fined, re·fin·ing, re·fines v.tr. 1. To reduce to a pure state; purify. 2. To remove by purifying. 3. , performed well although results were lower than in the prior period, principally due to higher costs and a mark to market loss on inventory. Europe Profits in the segment improved to GBP 71 million ($114 million), GBP 12 million higher than in the comparative period. Exchange translation increased profit by GBP 3 million. Amylum, our European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. cereal cereal or grain Any grass yielding starchy seeds suitable for food. The most commonly cultivated cereals are wheat, rice, rye, oats, barley, corn, and sorghum. As human food, cereals are usually marketed in raw grain form or as ingredients of food products. sweetener and starch business, reported higher profits. While there was an improvement in volumes, selling prices were lower than in the comparative period. Raw material prices were lower but hot weather reduced new crop expectations and both wheat and maize maize: see corn. prices have subsequently risen sharply. We intend to mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. these with selling price increases in the second half and have already
achieved acceptable price rises in those contracts 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. to date. By-product revenues have, so far, remained robust despite the high protein wheat crop, which lowers demand by bakers for vital wheat gluten Noun 1. wheat gluten - gluten prepared from wheat gluten - a protein substance that remains when starch is removed from cereal grains; gives cohesiveness to dough . Amylum's Eastern European operations continued to perform well. Orsan France, the monosodium glutamate producer that was sold on July 31, 2003, made a loss of GBP 1 million ($2 million) in the period up to disposal. The integration program is on-track to deliver a gross benefit of GBP 50 million ($81 million) in the full year, with costs incurred in the year expected to be below GBP 10 million ($16 million). Our sugar refineries in London and Lisbon Lisbon (lĭz`bən), Port. Lisboa, ancient Olisipo, city (1991 pop. 677,790), W Portugal, capital of Portugal and of Lisboa dist., on the Tagus River where it broadens to enter the Atlantic Ocean. continue to produce stable profits and generate good cashflow. The benefits of improved efficiencies and the impact of a stronger euro were partially offset by higher pension costs. In Eastern Sugar, market disruption Market Disruption A situation where markets cease to function in a regular manner, typically characterized by rapid and large market declines. Market disruptions can result from both physical threats to the stock exchange or a unusual trading (as in a crash). continued in the Czech Republic Czech Republic, Czech Česká Republika (2005 est. pop. 10,241,000), republic, 29,677 sq mi (78,864 sq km), central Europe. It is bordered by Slovakia on the east, Austria on the south, Germany on the west, and Poland on the north. , and overall the business reported a small loss. Rest of the World Profit in the segment was GBP 4 million ($6 million) compared with GBP 5 million. Sugar selling prices at Nghe An Tate & Lyle Sugar Company in Vietnam Vietnam (vēĕt`näm), officially Socialist Republic of Vietnam, republic (v), 128,400 sq mi (332,642 sq km), Southeast Asia. Occupying the eastern coastline of the Southeast Asian peninsula, Vietnam is bounded by China on the north, by Laos were lower and sugar trading returned to a more normal level after a particularly strong performance in the second half of last year. Other Segments In the Animal Feed and Bulk Storage segment, the molasses molasses, sugar byproduct, the brownish liquid residue left after heat crystallization of sucrose (commercial sugar) in the process of refining. Molasses contains chiefly the uncrystallizable sugars as well as some remnant sucrose. business faced competitive market conditions in Europe. The Other Businesses and Activities segment was lower, partially due to higher pension charges within central costs. Our reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. business traded profitably. The European Parliament European Parliament, a branch of the governing body of the European Union (EU). It convenes on a monthly basis in Strasbourg, France; most meetings of the separate parliamentary committees are held in Brussels, Belgium, and its Secretariat is located in Luxembourg. has completed the final political processes required to amend the EU Sweeteners Directive Directive may refer to:
Retirement Benefits The actuarial ac·tu·ar·y n. pl. ac·tu·ar·ies A statistician who computes insurance risks and premiums. [Latin review at March 31, 2003 of our largest UK pension fund 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). a small deficit of GBP 13 million ($21 million) under 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. This deficit and future costs of the scheme will be funded over 5 years. As a result of this and changes to the actuarial assumptions in valuing the US funds, the pension charge will be GBP 3 million ($5 million) higher than expected for the year to March 2004 at around GBP 29 million ($47 million). Total pension cash contributions for the year are projected at GBP 33 million ($53 million) compared to GBP 61 million in the year to March 2003. Under 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, the deficit for pension and healthcare liabilities has improved from GBP 300 million at March 2003 to GBP 296 million ($477 million) in September 2003. If the accounts had been prepared under FRS 17, the profit before tax would have been GBP 1 million ($2 million) lower 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. reduced by GBP 124 million ($200 million). Directors As previously announced, Iain Ferguson Iain Ferguson (born 4 August 1962, in Newarthill, North Lanarkshire) is a Scottish former professional footballer who played as a striker for numerous Scottish clubs during the 1980s and 90s. joined the Board as an Executive Director and took up his position as Chief Executive on May 1, 2003. Stanley Stanley, town (1991 pop. 1,557), capital of the Falkland Islands, S Atlantic Ocean, on East Falkland island. It is the main port and trading center of the islands. The name is sometimes written as Port Stanley. Musesengwa was appointed ap·point tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. to the Board as an Executive Director on April 2, 2003 and became Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. on May 1, 2003. On November November: see month. 5, 2003 we announced the appointment of Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a Delbridge as Senior Independent Non-Executive Director A non-executive director (NED, also NXD) or outside director is a member of the board of directors of a company who does not form part of the executive management team. He or she is not an employee of the company or affiliated with it in any other way. and David Fish David Eli Fish MD MPH is an American physiatrist and one of the editors of a popular PM&R handbook PM&R Pocketpedia. Education After completing a residency in physical medicine and rehabilitation at the Johns Hopkins University School of Medicine in 2001, Dr. and Evert e·vert v. To turn inside out or outward. evert to turn inside out; to turn outward. Henkes as Non-Executive Directors, all with effect from December 1, 2003. It was also announced that Mary Mary, the mother of Jesus Mary, in the Bible, mother of Jesus. Christian tradition reckons her the principal saint, naming her variously the Blessed Virgin Mary, Our Lady, and Mother of God (Gr., theotokos). Her name is the Hebrew Miriam. Jo Jacobi Ja·co·bi , Abraham 1830-1919. German-born American physician who established a children's clinic in New York (1860) and is considered the founder of American pediatrics. , who became a Non-Executive Director of Tate & Lyle in October October: see month. 1999, had informed the Board that due to her executive commitments at Shell International Limited, she will not be standing for re-election re-election n → reelección f re-election n → réélection f re-election n → Wiederwahl f as a Director at the Annual General Meeting in July 2004. Outlook While control of costs will always be a priority issue, the delivery of higher profits in the second half of this year than in the comparative period last year will be significantly influenced by our success in selling price negotiations; firstly to recover the prevailing substantially higher wheat and corn costs in Europe, and secondly to achieve a satisfactory outcome in the annual sweetener pricing round in the USA. These are the principal short term objectives to which we are fully committed and we anticipate success. Sir David Lees Iain Ferguson Chairman Chief Executive About Tate & Lyle Tate & Lyle is a world leader in carbohydrate ingredients. Our core competence Core competence Primary area of expertise. Narrowly defined fields or tasks at which a company or business excels. Primary areas of specialty. is to take basic carbohydrates Carbohydrates Compounds, such as cellulose, sugar, and starch, that contain only carbon, hydrogen, and oxygen, and are a major part of the diets of people and other animals. Mentioned in: Laxatives carbohydrates, n. - corn, wheat or sugar - and add value to these raw materials through technology. As a result of continuous innovation we offer an ever-wider product portfolio of versatile For the use of the term "versatile" to describe the sexual role, see . Versatile is a Canadian brand of agricultural equipment that has produced augers, swathers, combine harvesters and most notably tractors. and functional ingredients. These products include Cereal Sweeteners, Starches starch n. 1. A naturally abundant nutrient carbohydrate, (C6H10O5)n, found chiefly in the seeds, fruits, tubers, roots, and stem pith of plants, notably in corn, potatoes, wheat, and rice, and , Sugars and Citric Acid. Our products have wide applications in the food, beverage, pharmaceutical, cosmetic cosmetic /cos·met·ic/ (koz-met´ik) 1. pertaining to cosmesis. 2. a beautifying substance or preparation. cos·met·ic n. , paper, packaging and building industries. With headquarters in London, Tate & Lyle operates more than 40 plants in 24 countries, almost all in Europe and the Americas. We employ 6,700 people in our subsidiaries with a further 2,800 employed in joint ventures. Sales in the year to March 31, 2003 totalled GBP 3,167 million. More details are available online at www.tateandlyle.com.
TATE & LYLE
GROUP PROFIT AND LOSS ACCOUNT
Unaudited Unaudited Audited
6 months to 6 months to Year to
September 30 September 30 March 31
2003 2002 2003
GBP million GBP million GBP million
------------------------------- ------------ ------------ ------------
Sales (Note 1)
Group subsidiaries 1 510 1 482 2 849
Share of joint ventures and
associates 153 164 318
------------ ------------ ------------
1 663 1 646 3 167
============ ============ ============
Group operating profit before
goodwill amortization 110 122 219
Goodwill amortization (4) (4) (8)
Operating exceptional items -
impairment of assets - - (39)
------------ ------------ ------------
Group operating profit 106 118 172
Share of operating profits of
joint ventures and associates 23 22 35
------------ ------------ ------------
Total operating profit 129 140 207
Non-operating exceptional items:
Write-downs on planned sales of
businesses - - (12)
Exceptional (loss)/profit on
sale or termination of
businesses (3) 8 19
Exceptional loss on sale of
fixed assets (1) (1) (1)
------------ ------------ ------------
Profit before interest (Note 2) 125 147 213
Net interest payable (13) (17) (29)
Share of joint ventures' and
associates' interest (1) (1) 3
------------ ------------ ------------
Profit before taxation (Note 2) 111 129 187
Taxation (35) (38) (57)
------------ ------------ ------------
Profit after taxation 76 91 130
Minority interests 1 (1) 2
------------ ------------ ------------
Profit for the period 77 90 132
Dividends paid and proposed (26) (26) (86)
------------ ------------ ------------
Retained profit 51 64 46
============ ============ ============
Earnings per share (Note 4)
Basic 16.3p 18.9p 27.8p
Diluted 16.3p 18.8p 27.7p
----------------------------------------------------------------------
Before goodwill amortization
and exceptional items
Profit before taxation (GBP
million) 119 126 228
Diluted earnings per share
(pence) 17.7 18.0 33.0
----------------------------------------------------------------------
TATE & LYLE
SUMMARIZED GROUP BALANCE SHEET
Unaudited Unaudited Audited
September 30 September 30 March 31
2003 2002 2003
GBP million GBP million GBP million
------------------------------- ------------ ------------- -----------
Fixed assets
Intangible assets 146 149 154
Tangible assets 1 131 1 210 1 176
Investments 272 240 235
------------ ------------ ------------
1 549 1 599 1 565
------------ ------------ ------------
Current assets
Stocks 253 305 310
Debtors 425 350 398
Investments and cash at bank
and in hand (Note 5) 92 120 172
------------ ------------ ------------
770 775 880
Creditors - due within one year
Borrowings (Note 5) (1) (72) (100)
Other (428) (397) (493)
------------ ------------ ------------
Net current assets 341 306 287
------------ ------------ ------------
Total assets less current
liabilities 1 890 1 905 1 852
Creditors - due after more than
one year
Borrowings (Note 5) (544) (560) (543)
Other (10) (2) (4)
Provisions for liabilities and
charges (252) (274) (261)
------------ ------------ ------------
Total net assets 1 084 1 069 1 044
============ ============ ============
Capital and reserves
Called up share capital 123 123 123
Share premium account and other
reserves 489 490 487
Profit and loss account 433 419 402
------------ ------------ ------------
Shareholders' funds 1 045 1 032 1 012
Minority interests 39 37 32
------------ ------------ ------------
1 084 1 069 1 044
============ ============ ============
TATE & LYLE
STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
6 months to 6 months to Year to
September 30 September 30 March 31
2003 2002 2003
GBP million GBP million GBP million
----------------------------------------------------------------------
Operating profit 106 118 172
Depreciation of tangible fixed
assets 52 56 110
Operating exceptional items -
impairment of assets - - 39
Amortization of goodwill 4 4 8
Change in working capital (6) 20 (6)
Provisions against fixed asset
investments - - 1
------------ ------------ ------------
Net cash inflow from operating
activities 156 198 323
Dividends from joint ventures
and associates 4 2 10
Returns on investment and
servicing of finance
Net interest paid (23) (10) (21)
Dividends paid to minority
interests in subsidiary
undertakings - - (2)
------------ ------------ ------------
(23) (10) (23)
Taxation (paid)/received (24) 5 (7)
Capital expenditure and
financial investment
Purchase of tangible fixed
assets (53) (31) (75)
Sale of tangible fixed assets - - 1
Purchase of fixed asset
investments (25) (15) (15)
Sale of fixed asset investments - 12 4
------------ ------------ ------------
(78) (34) (85)
Acquisitions and disposals
Sale of businesses 34 16 55
Equity dividends paid (61) (58) (84)
------------ ------------ ------------
Net cash inflow before
financing and management of
liquid resources 8 119 189
============ ============ ============
Reconciliation of cash flow to
net debt
----------------------------------------------------------------------
Net cash inflow before
financing and management of
liquid resources 8 119 189
Changes in debt not involving
cash flow:
- Exchange movements (3) 9 (19)
- Redemption/(amortization) of
bond discount 13 (1) (2)
Reduction in net borrowings 18 127 168
Net borrowings at start of
period (471) (639) (639)
------------ ------------ ------------
Net borrowings at end of period (453) (512) (471)
============ ============ ============
TATE & LYLE
COMBINED STATEMENT OF TOTAL RECOGNIZED
GAINS AND LOSSES AND RECONCILIATION OF
MOVEMENTS IN SHAREHOLDERS' FUNDS
Unaudited Unaudited Audited
6 months to 6 months to Year to
September 30 September 30 March 31
2003 2002 2003
GBP million GBP million GBP million
-------------------------------------------- ------------ ------------
Profit for the period 77 90 132
Currency difference on foreign
currency net investments (11) (76) (66)
Taxation on exchange difference
on foreign currency net
investments (8) - (21)
------------ ------------ ------------
Total recognized gains for the
period 58 14 45
Dividends (26) (26) (86)
Issue of shares 1 1 1
Goodwill transferred to profit
and loss account - - 9
------------ ------------ ------------
Net increase/(reduction) in
shareholders' funds 33 (11) (31)
------------ ------------ ------------
Opening shareholders' funds 1 012 1 043 1 043
------------ ------------ ------------
Closing shareholders' funds 1 045 1 032 1 012
============ ============ ============
TATE & LYLE
NOTES TO INTERIM STATEMENT
For the 6 months to September 30, 2003
1. Segmental analysis of sales
----------------------------------------------------------------------
Continuing Discontinued Total
6 months to September 30, 2003 activities activities sales
(unaudited) GBP million GBP million GBP million
-------------------------------- ----------- ------------- -----------
Sweeteners and starches
- Americas 643 - 643
- Europe 691 - 691
- Rest of the world 221 - 221
----------- ------------- -----------
1 555 - 1 555
Animal feed and bulk storage 107 - 107
Other businesses and activities 1 - 1
----------- ------------- -----------
1 663 - 1 663
=========== ============= ===========
6 months to September 30, 2002
(unaudited reclassified)
----------------------------------------------------------------------
Sweeteners and starches
- Americas 618 11 629
- Europe 662 - 662
- Rest of the world 179 - 179
------------- ----------- ------------
1 459 11 1 470
Animal feed and bulk storage 109 51 160
Other businesses and activities 16 - 16
------------- ----------- ------------
1 584 62 1 646
============= =========== ============
Comparative figures have been reclassified to include within
discontinued activities not only the results of Western Sugar which
was included within discontinued activities in 2002, but also the
North American molasses and storage businesses which were disposed
during the second half of last year and classified as discontinued
activities in the year ended March 31, 2003.
Year to March 31, 2003
(audited)
----------------------------------------------------------------------
Sweeteners and starches
- Americas 1 137 10 1 147
- Europe 1 331 - 1 331
- Rest of the world 354 - 354
------------ ------------ ------------
2 822 10 2 832
Animal feed and bulk storage 227 81 308
Other businesses and activities 27 - 27
------------ ------------ ------------
3 076 91 3 167
============ ============ ============
Included in the analysis of total sales are the following amounts
relating to associates and joint ventures:
6 months to 6 months to Year to
September 30 September 30 March 31
2003 2002 2003
GBP million GBP million GBP million
----------------------------------------------------------------------
Sweeteners and starches
- Americas 64 74 145
- Europe 86 87 167
- Rest of the world 1 1 2
------------- ------------ ------------
151 162 314
Animal feed and bulk storage 2 2 4
Other businesses and activities - - -
------------- ------------ ------------
153 164 318
============= ============ ============
2. Segmental analysis of profit before taxation
----------------------------------------------------------------------
Con- Dis- Before After
tinuing continued excep- Excep- excep-
activ- activ- tional tional tional
ities ities items items items
6 months to September GBP GBP GBP GBP GBP
30, 2003 (unaudited) million million million million million
----------------------- -------- ---------- -------- -------- --------
Sweeteners and starches
- Americas 58 (1) - 58 (1) (4) 54
- Europe 71 (1) - 71 (1) - 71
- Rest of the
world 4 - 4 - 4
-------- ---------- -------- -------- --------
133 - 133 (4) 129
Animal feed and bulk
storage 2 - 2 - 2
Other businesses and
activities (6) - (6) - (6)
-------- ---------- -------- -------- --------
129 - 129 (4) 125
-------- ----------
Net interest expense (14) - (14)
-------- -------- --------
Profit before taxation 115 (4) 111
-------- -------- --------
(1) These profit figures include GBP 2 million of goodwill
amortization.
6 months to September 30, 2002 (unaudited)
----------------------------------------------------------------------
Sweeteners and starches
- Americas 77 (2) 1 78 (2) 7 85 (2)
- Europe 59 (2) - 59 (2) - 59 (2)
- Rest of the
world 5 - 5 - 5
-------- ---------- -------- -------- --------
141 1 142 7 149
Animal feed and bulk
storage 3 (1) 2 - 2
Other businesses and
activities (4) - (4) - (4)
-------- ---------- -------- -------- --------
140 - 140 7 147
-------- ----------
Net interest expense (18) - (18)
-------- -------- --------
Profit before taxation 122 7 129
-------- -------- --------
(2) These profit figures include GBP 2 million of goodwill
amortization.
Comparative figures have been reclassified to include within
discontinued activities not only the results of Western Sugar which
was included within discontinued activities in 2002, but also the
North American molasses and storage businesses which were disposed
during the second half of last year and classified as discontinued
activities in the year ended March 31, 2003.
Year to March 31, 2003 (audited)
----------------------------------------------------------------------
Sweeteners and starches
- Americas 135 (3) 1 136 (3) (25) 111 (3)
- Europe 107 (3) - 107 (3) (12) 95 (3)
- Rest of the
world 11 - 11 4 15
-------- ---------- -------- ------- ---------
253 1 254 (33) 221
Animal feed and bulk
storage 4 (2) 2 1 3
Other businesses and
activities (10) - (10) (1) (11)
-------- ---------- -------- ------- ---------
247 (1) 246 (33) 213
-------- ----------
Net interest expense (26) - (26)
-------- ------- ---------
Profit before taxation 220 (33) 187
-------- ------- ---------
(3) These profit figures include GBP 4 million of goodwill
amortization.
3. Non-operating exceptional items
----------------------------------------------------------------------
Profit/
Loss (loss)
before Minority for the
tax Tax interest period
6 months to September 30, 2003 GBP GBP GBP GBP
(unaudited) million million million million
-------------------------------- --------- -------- -------- ---------
Loss on termination of business (3) - 1 (2)
Loss on sale of fixed assets (1) - - (1)
--------- -------- -------- ---------
(4) - 1 (3)
--------- -------- -------- ---------
4. Earnings/(losses) per share
----------------------------------------------------------------------
The basic earnings per share of 16.3p (6 months to September 30, 2002
- 18.9p, year to March 31, 2003 - 27.8p) are calculated by dividing
profits after taxation and minority interests and preference dividend
of GBP 77 million (September 2002 - GBP 90 million, March 2003 - GBP
132 million), by the weighted average number of ordinary shares in
issue during the period of 471,865,263 (September 2002 - 475,039,721;
March 2003 - 474,264,888).
The diluted earnings per share are calculated on the assumptions that
the outstanding options over 2,321,125 shares had been exercised and
that the funds so generated would be used to purchase 1,492,635
ordinary shares at the average price during the period of 329.5p,
thereby increasing the average number of shares to 472,693,754.
Earnings / (losses) Diluted earnings /
(losses) per share
6 6 Year 6 6 Year
months months to months months to
to Sept to Sept March to Sept to Sept March
30 2003 30 2002 31 2003 30 30 31
GBP GBP GBP 2003 2002 2003
million million million pence pence pence
-------------------- -------- -------- -------- ------- ------- ------
Diluted earnings of
the period 77 90 132 16.3 18.8 27.7
Goodwill
amortization 4 4 8 0.8 0.8 1.7
Exceptional items 3 (8) 17 0.6 (1.6) 3.6
-------- -------- -------- ------- ------- ------
Diluted earnings
before goodwill
amortization and
exceptional items 84 86 157 17.7 18.0 33.0
======== ======== ======== ======= ======= ======
The exceptional items recognized in the 6 months to September 30, 2003
include a tax credit of GBP nil million and minority interest credit
of GBP 1 million (6 months to September 30, 2002 tax credit of GBP 1
million, year to March 31, 2003 tax credit of GBP 13 million and
minority interest credit of GBP 3 million).
Unaudited Unaudited Audited
September 30 September 30 March 30
2003 GBP 2002 GBP 2003 GBP
5. Analysis of net debt million million million
----------------------------------------------------------------------
Investments and cash at bank and
in hand 92 120 172
Borrowings due within one year (1) (72) (100)
Borrowings due after more than one
year (544) (560) (543)
----------- ----------- -----------
(453) (512) (471)
=========== =========== ===========
September September March
6. Average exchange rates 30 2003 30 2002 31 2003
----------------------------------------------------------------------
US Dollar GBP 1 = $ 1.61 1.50 1.54
Euro GBP 1 = EUR 1.43 1.58 1.56
September September March
7. Period end exchange rates 30 2003 30 2002 31 2003
----------------------------------------------------------------------
US Dollar GBP 1 = $ 1.66 1.57 1.58
Euro GBP 1 = EUR 1.43 1.59 1.45
8. Basis of Preparation
----------------------------------------------------------------------
The foregoing accounts are prepared on the basis of the accounting
policies set out in the 2003 Annual Report for the year to March 31,
2003.
The balance sheet as at March 31, 2003 has been abridged from the full
Group accounts, which received an auditors' report which was
unqualified and did not contain any statement concerning accounting
records or failure to obtain necessary information and explanations.
The full Group accounts have been delivered to the Registrar of
Companies.
The results for the 6 months to September 30, 2003 and September 30,
2002 and the balance sheets at September 30, 2003 and at September 30,
2002 are neither audited nor reviewed.
9. Net margin analysis
----------------------------------------------------------------------
6 months to 6 months to
September 30, 2003 September 30, 2002
----------------------------------------------------------------------
Before goodwill Continuing All Continuing All
amortization and activities activities activities activities
exceptional items % % % %
----------------------------------------------------------------------
Sweeteners and starches
- Americas 9.3 9.3 12.8 12.7
- Europe 10.6 10.6 9.2 9.2
- Rest of the
world 1.8 1.8 2.8 2.8
Sweeteners and starches
total 8.8 8.8 9.9 9.9
Animal feed and bulk
storage 1.9 1.9 2.8 1.3
Group 8.0 8.0 9.1 8.7
After goodwill
amortization and
exceptional items
----------------------------------------------------------------------
Sweeteners and starches
- Americas 8.4 13.5
- Europe 10.3 8.9
- Rest of the
world 1.8 2.8
Sweeteners and starches
total 8.3 10.1
Animal feed and bulk
storage 1.9 1.3
Group 7.5 8.9
Year to
March 30, 2003
----------------------------------------------------------------------
Before goodwill Continuing All
amortization and activities activities
exceptional items % %
----------------------------------------------------------------------
Sweeteners and
starches
- Americas 12.2 12.2
- Europe 8.3 8.3
- Rest of
the world 3.1 3.1
Sweeteners and
starches total 9.2 9.3
Animal feed and
bulk storage 1.8 0.6
Group 8.3 8.0
After goodwill
amortization and
exceptional items
----------------------------------------------------------------------
Sweeteners and
starches
- Americas 9.7
- Europe 7.1
- Rest of
the world 4.2
Sweeteners and
starches total 7.8
Animal feed and
bulk storage 1.0
Group 6.7
10. Ratio analysis
----------------------------------------------------------------------
6 months to 6 months to Year to
September 30 September 30 March 31
2003 2002 2003
----------------------------------------------------------------------
Net borrowings to EBITDA - Tate
& Lyle PLC and its subsidiaries
Net borrowings 453 512 471
-------------------------------- ------- ------- -------
Annualized pre-exceptional EBITDA (2 x 162) (2 x 178) (329)
= 1.4 = 1.4 = 1.4
times times times
Gearing
Gearing = Net borrowings 453 512 471
---------------- ----- ----- -----
Total net assets 1 084 1 069 1 044
= 42% = 48% = 45%
Interest cover - Tate & Lyle
PLC and its subsidiaries
= Operating profit before goodwill
amortization and exceptional items
----------------------------------
Net interest payable
110 122 219
----- ----- -----
13 17 29
= 8.5 = 7.2 = 7.6
times times times
Return on Net Operating Assets
= Annualized profit before interest,
tax and exceptional items
----------------------------------
Average net operating assets
(2 x 129) (2 x 140) 246
---------- ---------- ---------
1 660 1 741 1 736
= 15.5% = 16.1% = 14.2%
Net operating assets are
calculated as:
Total net assets 1 084 1 069 1 044
Add back net borrowings 453 512 471
Add back unallocated liabilities
- dividends & tax 124 87 144
------------ ------------ ------------
Net operating assets 1 661 1 668 1 659
------------ ------------ ------------
Average net operating assets 1 660 1 741 1 736
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