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GUINNESS ISSUES PRELIMINARY ANNOUNCEMENT FOR THE YEAR ENDED DEC. 31, 1992

 LONDON, March 18 /PRNewswire/ -- Guinness PLC today announced results for the year ended Dec. 31, 1992. Highlights include:
 Dividend for Year (Proposed) 11.85 pence +10 percent
 Trading Profit (before
 exceptional items)
 Spirits 769 million pounds +3 percent
 Brewing 252 million pounds +3 percent
 Profit before Tax 795 million pounds -12 percent
 Before exceptional items 920 million pounds -4 percent
 Earnings per Share (Diluted) 27.8 pence -11 percent
 Before exceptional items 33.0 pence -2 percent
 Free Cash Flow (after Dividends) 205 million pounds
 Guinness PLC announced Group profit before tax of 795 million pounds sterling for the year ended Dec. 31, 1992, after exceptional operating costs of 125 million pounds. Excluding exceptionals, Group profit before tax was 920 million pounds, 4 percent below the 956 million pounds for 1991.
 Trading profit before exceptional items rose by 3 percent to 1,023 million pounds.
 Diluted earnings per share were 27.8 pence. Before exceptional items, diluted earnings per share were 33.0 pence, 2 percent lower than last year.
 Free cash flow from operations, after tax and dividends, was 205 million pounds.
 The board is recommending a final dividend of 8.50 pence net per ordinary share. Taken together with the interim dividend of 3.35 pence net, this will give a total for the full year of 11.85 pence, an increase of 10 percent on the 10.80 pence net paid for 1991. The proposed total dividend is covered 2.8 times by earnings per share before exceptionals.
 Commenting on the results, Tony Greener, chairman, said:
 "Guinness is performing creditably through this recession. Both spirits and beer increased trading profit last year in extremely difficult conditions. The cash performance has been strong in 1992, and the proposed dividend, increased by 10 percent, is a measure of our financial strength and confidence in our long term prospects.
 "Our strategy is simple: we continue to concentrate on our two core businesses of spirits and beer.
 "Our business is brand building and our future lies in further developing the appeal of our outstanding portfolio with consumers all over the world. The brands are the main asset of the company, and their strength is shown by the progress made in 1992 in many markets.
 "We are investing in the future; our marketing spend rose again in 1992, and we will continue to devote progressively increasing resources to building our brands. We are also investing substantial capital to improve productivity and quality in production and packaging, such as the 200 million pounds program planned in Scotland and Spain.
 "Our new management team is now substantially in place and the changeover is being implemented smoothly.
 "We see little prospect of overall world market conditions being easier in 1993 than in 1992, but in the circumstances we expect to make steady progress this year. Guinness is in good shape to meet the challenges to come. We face the future with quiet confidence and great determination."
 GROUP TRADING REVIEW
 The chairman released the following Group trading review:
 United Distillers' turnover was up 6 percent, and trading profits, before reorganization costs, were ahead by 3 percent to 769 million pounds and 1 percent ahead at level exchange. Sales volumes of Scotch whisky were in line with those for 1991. Premium brands, particularly deluxe brands, increased volumes sold, with notable performances by both Johnnie Walker Black and Red Label, Dewar's White Label and our single malt portfolio. Marketing spend was again increased, particularly for premium Scotch whisky brands.
 Sales in Asia Pacific were affected by the need to carry through significant destocking in Japan, and by depressed market conditions in Australasia. Profits in the rest of the region were well ahead of last year, with strong performances in Duty Free, Thailand and Taiwan. In Japan, severe cutbacks in corporate entertainment have constrained sales of several premium brands, but gains have been made in take-home business, particularly by Johnnie Walker Red Label.
 Profits rose in Europe, with volumes sold mostly above last year. Johnnie Walker Red Label performed well with particularly strong results in Germany, Greece, Italy, The Netherlands and Duty Free. The Classic Malt Range showed further encouraging performance in the region. The major exception was the U.K., where our business suffered in line with another severe decline in the market.
 During the year we have completely reorganized our business in the USA, merging Schenley with Glenmore into a new, unified organization, United Distillers Glenmore, and expanding our joint venture with LVMH to carry the complete portfolio of imported brands. Completing this complex operation, without disruption, was a major achievement, the benefits of which will flow through further in the future. Profits in North America were ahead despite considerable destocking during the year. Depletions of most major brands were ahead of 1991, with notable gains for Johnnie Walker Red and Black Label and Scoresby.
 Profits in the International Region (Rest of World) were well ahead of last year, with notable gains in Venezuela, Mexico and other South American markets, offset by difficult conditions in South and West Africa. Scotch volumes were ahead.
 In one of the most difficult years for a long time, the Scotch Whisky industry grew its exports to 2 billion pounds, an increase of 2 percent in volumes and 7 percent in value. The industry continued to adjust production and stock levels in an orderly fashion, resulting in a lower requirement for new fillings, mature whisky and other related services so that United Distillers' contribution from these areas was reduced accordingly. A substantial program to further improve efficiency in primary production and packaging was announced in January which will contribute to greater profitability in due course.
 Guinness Brewing Worldwide performed strongly in most of its trading areas, with turnover up 10 percent, and trading profits before exceptional costs ahead by 3 percent and 1 percent down at level exchange. Overall, comparable volumes were marginally behind last year but the Guinness brand held volume worldwide at 1991 levels and achieved significant growth in Continental Europe, Asia Pacific and the Caribbean.
 Sales in Ireland have again been strong and volume was comfortably ahead of the previous year, with Draught Guinness, Canned Draught Guinness and the lager portfolio all increasing volumes sold.
 The beer market in Britain has endured another difficult year, but Draught Guinness has gained share with volumes only marginally affected.
 Volume and profit rose strongly in Asia Pacific. Volume in Malaysia was in line with the previous year, and volumes in Singapore, Hong Kong and Australia were ahead. In difficult conditions, volumes were ahead in Cameroon, with share substantially ahead. Conditions elsewhere in Africa were mixed, but the Guinness brand gained volume in Ghana and many other African markets. Guinness Import Company in the USA increased volumes in a better imported beer market, with strong performances by Guinness Stout and Bass Ale. Sales in the Caribbean region were significantly ahead of last year.
 The Cruzcampo Group has been affected by market conditions which deteriorated sharply in the second half. The Spanish beer market was down approximately 4 percent but the majority of this decline came towards the end of the year. In these circumstances, Cruzcampo volumes were down, particularly in the final quarter, although share recovered in the second half. Operating costs were reduced but in view of prevailing conditions in the Spanish market, plans have now been announced for accelerating further improvements in productivity.
 GBW has again made progress in containing operating costs during the year. The modernization program at the Park Royal Brewery in London is on schedule. Meanwhile, GBW continues to invest in brand marketing with total spend substantially ahead of 1991.
 The Exceptional Operating Charge of 125 million pounds relates to the reorganization programs in production in Scotland and Spain announced in January 1993. Forty-eight million pounds relates to the reorganization of production and packaging of Scotch whisky, and 77 million pounds to reorganization and productivity improvements in brewing in Spain.
 LVMH Moet Hennessy Louis Vuitton has reported net profits for 1992 of FF3.0 billion, a reduction of 20 percent on 1991 due to lower operating profits, higher interest charges and a lower contribution from Guinness due to the exceptional charge.
 Group interest charges rose due to the full year effect of acquisitions made in 1991 and to the effect of sterling devaluation, which increases the reported cost in sterling of debt servicing on the Group's substantial portfolio of overseas borrowings. At the year end net debt had risen, purely as a result of sterling devaluation, to 2,029 million pounds. These borrowings represent 56 percent of net assets (including brands). Interest cover for the year was 5.5 times.
 GUINNESS PLC
 GROUP PROFIT AND LOSS ACCOUNT
 FOR THE YEAR ENDED DEC. 31, 1992
 (In millions of pounds sterling except per share figures)
 Notes 1992 1991 Pct.
 Growth
 Turnover 1 4,363 4,067 7
 Net trading costs (3,340) (3,072)
 Reorganization costs 2 (125) -
 Litigation and other settlements 2 - (56)
 Total operating costs (3,465) (3,128)
 Profit before interest and taxation
 (excluding LVMH) 1 898 939 (4)
 Share of profit bef. taxation of LVMH 3 101 123
 Profit before interest and taxation 999 1,062 (6)
 Net interest charge (204) (162)
 Profit before taxation 795 900 (12)
 Taxation 4 (242) (272)
 Profit after taxation 553 628 (12)
 Minority interests (28) (33)
 Preference dividends (1) (8)
 Profit for the financial year 524 587 (11)
 Dividends (237) (210)
 Retained earnings 287 377
 Earnings per share 5
 Basic earnings per share 28.1p 33.0p (15)
 Diluted - before exceptional items 33.0p 33.6p (2)
 Effect of reorganization costs (5.2)p -
 Effect of litigation and other settlements - (2.2)p
 Diluted earnings per share 27.8p 31.4p (11)
 Dividends per share
 Proposed final - net 6 8.50p 7.75p
 - gross equivalent, with
 imputed tax credit at the
 rate of 20 percent
 (1991 - 25 percent) 10.62p 10.33p
 Total for year - net 11.85p 10.80p 10
 - gross equivalent 15.09p 14.40p
 Interest cover (times, before exceptional
 items) 5.5 6.9
 Dividend cover (times, before exceptional
 items) 2.8 3.1
 The presentation of the profit and loss account has been changed from that adopted in earlier years following the issue of Financial Reporting Standard 3 - Reporting Financial Performance ("FRS3") by the Accounting Standards Board. The effect of adopting FRS3 is shown in Appendix 1.
 GUINNESS PLC
 GROUP BALANCE SHEET AT DEC. 31, 1992
 (In millions of pounds sterling)
 Notes 1992 1991(A)
 Acquired brands at cost 7 1,395 1,395
 Tangible fixed assets 8 1,719 1,721
 Investment in LVMH 9 1,284 1,126
 Other long term investments 152 106
 Total fixed assets 4,550 4,348
 Stocks 1,810 1,661
 Debtors 1,244 1,067
 Creditors (1,440) (1,271)
 Net current operating assets 1,614 1,457
 Long term creditors and provisions (483) (402)
 Total 10 5,681 5,403
 Convertible unsecured loan stock - 13
 Long term bank and other loans 1,548 1,480
 Short term bank loans and overdrafts 1,116 779
 Cash deposits (635) (475)
 Net borrowings 2,029 1,797
 Ordinary shares 500 488
 Convertible preference shares - 59
 Share premium account 498 423
 Other reserves 2,573 2,543
 Minority interests 81 93
 Total equity 11 3,652 3,606
 Total capital employed 5,681 5,403
 Net borrowings as pct. of total equity
 (including acquired brands at cost) 12 56 pct 50 pct
 (A) -- The balance sheet at Dec. 31, 1991, has been restated to include provision for post-retirement medical benefits (Note 11 (b)).
 GUINNESS PLC
 GROUP CASH FLOW STATEMENT
 FOR THE YEAR ENDED DEC. 31, 1992
 (In millions of pounds sterling)
 Notes 1992 1991(A)
 Net cash inflow from operating
 activities 13 (a) 891 833
 Interest received 106 43
 Interest paid (284) (197)
 Dividends received from associated undertakings 58 32
 Dividends paid (221) (193)
 Net cash outflow from returns on investments and
 servicing of finance (341) (315)
 United Kingdom corporation tax paid (72) (129)
 Overseas tax paid (73) (56)
 Total tax paid (145) (185)
 Net cash inflow before investing activities 405 333
 Purchase of tangible fixed assets (218) (224)
 Sale of tangible fixed assets 18 14
 Purchase of subsidiary undertakings 13 (b) (16) (679)
 Other investments 13 (b) (126) (46)
 Disposals 6 50
 Net cash outflow from investing activities (336) (885)
 Net cash inflow/(outflow) before financing 69 (552)
 Proceeds of new borrowings 736 1,635
 Borrowings repaid (1,252) (1,272)
 Issue of shares (employee share schemes) 15 20
 Net cash (outflow)/inflow from financing 13 (c) (501) 383
 Decrease in cash and cash equivalents 13 (c) (432) (169)
 Analysis of free cash flow
 Net cash inflow before investing activities 405 333
 Purchase of tangible fixed assets (218) (224)
 Sale of tangible fixed assets 18 14
 Free cash flow (after dividends) 205 123
 Free cash flow (before dividends) 13 (d) 426 316
 (A) -- The cash flow statement for 1991 has been restated as a result of the adoption of FRS3 (see Appendix 1).
 GUINNESS PLC
 NOTES TO THE PRELIMINARY FINANCIAL STATEMENTS
 1. SEGMENTAL ANALYSIS OF TURNOVER AND PROFIT
 (a) BY BUSINESS SECTOR
 Pct. Growth
 Pct. at level
 1992 1991 Growth exchange
 (Mil. of pounds)
 Turnover
 Spirits 2,583 2,436 6 4
 Brewing 1,752 1,594 10 3
 Enterprises 28 37
 Total 4,363 4,067 7 3
 Profit before interest and taxation
 (excluding LVMH)
 Spirits - trading profit 769 749 3 1
 - reorganization costs
 (Note 2) (48) -
 - total 721 749
 Brewing - trading profit 252 244 3 (1)
 - reorganization costs
 (Note 2) (77) -
 - total 175 244
 Enterprises - trading profit 2 2
 Litigation and other settlements
 (Note 2) - (56)
 Total 898 939 (4) (6)
 Comprising:
 Trading profit 1,023 995 3 1
 Reorganization costs (125) -
 Litigation and other settlements - (56)
 PBIT (excluding LVMH) 898 939 (4) (6)
 The results above include 46 million pounds (1991 - 51 million pounds) for the Group's attributable share of the profits of associated undertakings other than LVMH. This comprises 26 million pounds (1991 - 35 million pounds) for the Spirits sector and 20 million pounds (1991 - 16 million pounds) for the Brewing sector.
 The results of the Spirits sector include 17 million pounds (1991 - 13 million pounds) credited to the profit and loss account representing the net amount capitalized in respect of financing costs recognized as a production cost of maturing spirit stocks.
 The results of overseas companies are translated into sterling at average rates of exchange. Where hedging arrangements are in place, the transactions to which they relate are translated at the rate achieved under those arrangements. If the results of overseao?mpanies for 1991 had been translated at the average x?change rates ruling during 1992 and if the rates achieved in 1991 under hedging arrangements had been the same as those achieved in 1992, turnover for 1991 would have been 153 million pounds higher and profit before taxation for 1991 would have been 21 million pounds higher.
 (b) BY GEOGRAPHICAL SECTOR (based on the location of third party customers)
 Pct. Growth
 Pct. at level
 1992 1991 Growth exchange
 (Millions of pounds)
 Pct Pct
 Turnover
 United Kingdom 1,040 24 1,125 28 (8) (8)
 Rest of Europe 1,552 36 1,389 34 12 5
 North America 757 17 617 15 23 16
 Asia/Pacific 645 15 607 15 6 1
 Rest of the World 369 8 329 8 12 12
 Total 4,363 100 4,067 100 7 3
 Trading profit
 United Kingdom 147 15 154 16 (5) (5)
 Rest of Europe 298 29 300 30 (1) (3)
 North America 197 19 181 18 9 7
 Asia/Pacific 204 20 207 21 (1) (7)
 Rest of the World 177 17 153 15 16 17
 Total 1,023 100 995 100 3 1
 Exports from the United Kingdom were 975 million pounds (1991 - 849 million pounds).
 (c) CRUZCAMPO GROUP
 The results of the Brewing sector include the following amounts in respect of Cruzcampo (acquired in January 1991) and Union Cervecera (acquired in September 1991), all of which is attributable to the Rest of Europe geographical sector:
 1992 1991
 (Millions of pounds)
 Turnover 357 283
 Trading profit 41 61
 (d) HALF YEAR ANALYSIS
 The analysis of the profit and loss account between the first and second six months of the year is set out in Appendix 2.
 2. REORGANIZATION COSTS AND LITIGATION AND OTHER SETTLEMENTS
 Provisions of 125 million pounds (before tax) have been charged for reorganization costs, comprising 48 million pounds relating to the Group's Scotch whisky production operations in Scotland and 77 million pounds relating to the Group's brewing operations in Spain. The aggregate charge comprises provisions for redundancy and early retirement costs, write-downs in the book value of fixed assets and related reorganization costs. A deferred tax asset of 24 million pounds has been recognized as part of the Group tax charge (Note 4) to take account of the effect of these provisions on future tax liabilities.
 The exceptional charge in 1991 of 56 million pounds (before tax) comprised 93 million pounds for the settlement with Argyll Group PLC (in respect of which tax relief of 15 million pounds was included in the Group tax charge) partly offset by 29 million pounds representing partial recovery of the investment in the Boesky partnership and 8 million pounds from release of provisions for litigation expenses no longer required.
 3. SHARE OF PROFIT BEFORE TAXATION OF LVMH
 1992 1991
 (Millions of pounds)
 Profit before interest and taxation 150 163
 Net interest charge (49) (40)
 Profit before taxation 101 123
 The share of LVMH's profit before taxation shown above has been translated into sterling at the average exchange rate of 1 pound equals FF9.15 (1991 - 1 pound equals FF9.90); it does not include the attributable991
 (Millions of pounds)
 United Kingdom corporation tax 127 111
 Overseas taxation 68 82
 Deferred taxation 29 30
 Associated undertakings 42 64
 Tax effect of reorganization costs (24) -
 Tax effect of litigation and other settlements - (15)
 Total 242 272
 Total taxation as pct. of profit before taxation
 (excluding exceptional items) 29 pct 30 pct
 5. EARNINGS PER SHARE
 1992 1991
 (Millions of pounds)
 Basic
 Earnings 524 587
 Average number of shares 1,865m 1,778
 Earnings per share 28.1p 33.0p
 Diluted
 Earnings 532 601
 Average number of shares 1,917 1,912
 Earnings per share 27.8p 31.4p
 The amounts shown above for profit attributable to shareholders in 1992 include a net charge after tax for reorganization costs of 101 million pounds (1991 - net charge after tax for litigation and other settlements of 41 million pounds). If these items (which are not expected to arise in future years) are excluded from profit attributable to shareholders, basic earnings per share would be 33.5 pence (1991 - 35.3 pence) and diluted earnings per share would be 33.0 pence (1991 - 33.6 pence).
 The number of shares in issue at Dec. 31, 1992, was 2,001 million. The average number of shares has been reduced by 115 million (1991 - 110 million) in order to reflect the impact on earnings per share of the cross-shareholding arrangements with LVMH. Diluted earnings per share have been calculated taking into account the Convertible Preference Shares, the Convertible Loan Stock and options under employee share schemes.
 6. PROPOSED FINAL DIVIDEND
 The proposed final dividend of 8.50p (net) per share is expected to be paid on June 1, 1993, to shareholders on the register at April 30, 1993. The gross equivalent of 10.62p per share shown above includes an imputed tax credit at the rate of 20 percent as proposed in the Budget; this rate is subject to enactment of the 1993 Finance Bill.
 7. ACQUIRED BRANDS AT COST
 The amount stated for brands represents the cost of acquired brands. Brands are only recognized where title is clear, brand earnings are separately identifiable, the brand could be sold separately from the rest of the business and where the brand achieves earnings in excess of those achieved by unbranded products.
 The cost of brands is calculated at acquisition, as part of the fair value accounting for businesses acquired, on the basis of after tax multiples of pre-acquisition earnings after deducting attributable capital employed.
 The acquired brands which have been recognized include Bell's, Dewar's, Johnnie Walker, Old Parr and White Horse Scotch whisky, Gordon's and Tanqueray gin and Asbach brandy.
 The directors have reviewed the amounts at which brands are stated and are of the opinion that there has been no impairment in the value of the brands recognized, that all brands recognized could be sold for amounts substantially greater than those recognized in the balance sheet and that the end of the useful economic lives of the brands cannot be foreseen.
 8. PROPERTY REVALUATION
 The Group's principal properties within the United Kingdom and the Republic of Ireland have been revalued as at Dec. 31, 1992, on the basis of valuations performed by independent Chartered Surveyors. The deficit arising on revaluation charged to the evaluation reserve amounts to 98 million pounds.
 9. INVESTMENT IN LVMH
 The Group's interest in LVMH, included in the balance sheet as a long term investment, represents the attributable share of LVMH net assets, including 804 million pounds representing the cost attributable to the share of LVMH brands.
 The Group's interest in LVMH is held jointly with the Financiere Agache group through Jacques Rober SA, company registered in France, which is 45 percent owned by Guinness and 55 percent owned by Christian Dior SA, a company controlled by members of the Financiere Agache group. Guinness owns 16.8 percent of Christian Dior SA. At Dec. 31, 1992, the interest in LVMH attributable to the Group represented 24.3 percent of the issued share capital of LVMH and 23.9 percent of its fully diluted share capital (1991 - 24.6 percent and 24.0 percent, respectively).
 At Dec. 31, 1992, LVMH held 24.0 percent of the issued ordinary share capital of Guinness (1991 -24.0 percent).
 10. SEGMENTAL ANALYSIS OF NET ASSETS
 1992 1991
 (Millions of pounds)
 Pct Pct
 (a) BY BUSINESS SECTOR
 Spirits 4,001 78 3,815 79
 Brewing 1,046 21 946 19
 Enterprises 65 1 89 2
 Net operating assets 5,112 100 4,850 100
 Investment in LVMH 1,284 1,126
 Tax, dividends
 & other corporate items (715) (573)
 Total 5,681 5,403
 (b) BY GEOGRAPHICAL SECTOR
 United Kingdom 2,240 44 2,211 46
 Rest of Europe 820 16 779 16
 North America 271 5 214 4
 Asia/Pacific 243 5 195 4
 Rest of the World 143 3 56 1
 Total 3,717 73 3,455 71
 Acquired brands at cost 1,395 27 1,395 29
 Net operating assets 5,112 100 4,850 100
 11. MOVEMENT IN TOTAL EQUITY
 (a) The movement in total equity during the year was as follows:
 (Millions of pounds)
 At Jan. 1, 1992 - as previously reported 3,624
 Prior year adjustment (Note (b) below) (18)
 At Jan. 1, 1992 - as restated 3,606
 Retained earnings 287
 Issue of shares 28
 Property revaluation (Note 8) (98)
 Goodwill (99)
 Exchange adjustments (8)
 Attributable share of LVMH reserve movements (52)
 Change in minority interests (12)
 At Dec. 31, 1992 3,652
 During the year, the Company issued 49 million Ordinary Shares, comprising 33 million arising on conversion of Preference Shares, 9 million arising on conversion of Loan Stock and 7 million under employee share schemes. There were no Preference Shares or Loan Stock remaining in issue at Dec. 31, 1992.
 (b) Following the issue of a new accounting regulation (UITF6), the Group has changed its policy of accounting for post-retirement benefits other than pensions (principally medical benefits provided to retirees in North America) so that the cost of these benefits is now accrued over the relevant employees' estimated working lives. The balance sheet at Dec. 31, 1991, has been restated to reflect the Group's liability at that date of 18 million pounds after recognizing in full the attributable deferred tax asset of 8 million pounds. The effect on profits of this change in accounting policy is not material and the results for 1991 have not been restated.
 12. NET BORROWINGS AS A PERCENTAGE OF TOTAL EQUITY
 Net borrowings as a percentage of total equity including acquired brands at cost is 56 percent (1991 - 50 percent). Excluding acquired Guinness and LVMH brands from total equity, net borrowings as a percentage of net tangible assets is 140 percent (1991 - 119 percent).
 13. GROUP CASH FLOW STATEMENT
 (a) NET CASH INFLOW FROM OPERATING ACTIVITIES
 1992 1991
 (Millions of pounds)
 Trading profit
 (before exceptional items, Note 1 (a)) 1,023 995
 Share of profits of associated undertakings
 (other than LVMH) (46) (51)
 Depreciation 127 122
 Increase in working capital (208) (174)
 Net cash inflow from operating activities
 before exceptional items 896 892
 Reorganization costs - cash outflow (5) -
 Litigation and other settlements - net cash outflow - (59)
 Net cash inflow from operating activities 891 833
 The increase in working capital is stated after excluding movements due to acquisitions, disposals and exchange.
 (b) PURCHASE OF SUBSIDIARY UNDERTAKINGS AND OTHER INVESTMENTS
 The Group acquired Union de Empresas SA in May 1992 for a cash consideration of 16 million pounds; after providing for reorganization costs of 5 million pounds, goodwill arising on acquisition amounted to 20 million pounds.
 The cash outflow arising on other investments comprises payments of deferred consideration in respect of prior year acquisitions (40 million pounds), buyout of minority interests in Asbach (27 million pounds, giving rise to goodwill of 36 million pounda?fter making provision for consideration due in 1993 of 35 million pounds), and 59 million pounds in respect of minor investments (giving rise to goodwill of 43 million pounds).
 (c) ANALYSIS OF CHANGES IN FINANCING AND CASH AND CASH EQUIVALENTS
 Share capital Bank and Cash
 and share other Total and cash
 premium borrow financing equivalents
 (Millions of pounds)
 At Jan. 1, 1992 970 2,045 3,015 248
 Net cash flow 15 (516) (501) (432)
 Conversion of loan stock 13 (13) - -
 Effect of foreign exchange
 rate changes - 266 266 (63)
 At Dec. 31, 1992 998 1,782 2,780 (247)
 Reconciliation to net borrowings
 1992 1991
 (Millions of pounds)
 Bank and other borrowings 1,782 2,045
 Cash and cash equivalents 247 (248)
 Net borrowings 2,029 1,797
 Cash and cash equivalents comprise cash deposits less bank overdrafts and other short term borrowings with an original maturity of less than 90 days.
 (d) FREE CASH FLOW (BEFORE DIVIDENDS)
 The Group's free cash flow before divid tax payments and net purchases of tangible fixed assets.
 14. ABRIDGED ACCOUNTS
 The balance sheet at Dec. 31, 1992, and the results and cash flow for the year then ended have been abridged from the Group's 1992 statutory accounts upon which the auditors' opinion is unqualified and does not include a statement under Section 237 (2) or (3) of the Companies Act 1985; the statutory accounts will be filed with the Registrar of Companies in due course.
 15. ISSUE OF THE ANNUAL REPORT AND ACCOUNTS
 The 1992 Annual Report and Accounts will be posted to shareholders on April 26, 1993. Copies may be obtained, after April 26, from the Secretary, Guinness PLC, 39 Portman Square, London W1H 9HB.
 16. ANNUAL GENERAL MEETING
 The 1993 Annual General Meeting of Guinness PLC will be held at the Royal Lancaster Hotel, Bayswater Road, London W2 on Wednesday, May 26, 1993, at 3:00 p.m.
 Appendix 1
 GUINNESS PLC
 FINANCIAL REPORTING STANDARD 3 - REPORTING
 FINANCIAL PERFORMANCE ("FRS3")
 The profit and loss account set out above has been restated from that previously presented in order to comply with FRS3, issued by the Accounting Standards Board during 1992. The principal effect has been the reclassification of litigation and other settlements in 1991 as an exceptional charge in arriving at both profit before taxation and earnings per share; under the previous accounting standard, these items were shown as an extraordinary charge and excluded from profit before taxation and earnings per share.
 The adjustments made in restating the 1991 profit and loss account are as follows (millions of pounds):
 1991
 1. Profit before taxation
 On previous basis 956
 Litigation and other settlements (56)
 On FRS3 basis 900
 2. Diluted earnings per share
 Profit attributable to shareholders (diluted)
 On previous basis 642
 Cost of litigation and other settlements (before tax) (56)
 Tax relief on litigation and other settlements 15
 On FRS3 basis 601
 Average number of shares (unchanged) (in millions) 1,912
 Diluted earnings per share
 On previous basis 33.6p
 On FRS3 basis 31.4p
 The cash flow statement for 1991 set out above has been restated as a result of the adoption of FRS3. The net cash outflow in 1991 of 59 million pounds arising from litigation and other settlements which was previously shown as part of the net cash outflow from investing activities has been reclassified and deducted in arriving at the net cash inflow from operating activities (Note 13 (a)); it has also been deducted in arriving at free cash flow.
 Appendix 2
 GUINNESS PLC
 GROUP PROFIT AND LOSS ACCOUNT
 FOR THE YEAR ENDED DEC. 31, 1992
 First Half Second Half
 1992 1991 1992 1991
 (Millions of pounds)
 Turnover
 Spirits 981 926 1,602 1,510
 Brewing 761 731 991 863
 Enterprises 11 18 17 19
 Total 1,753 1,675 2,610 2,392
 Trading profit
 Spirits 303 283 466 466
 Brewing 109 94 143 150
 Enterprises (1) 2 3 -
 Total 411 379 612 616
 Reorganization costs - - (125) -
 Litigation and other settlements - - - (56)
 Profit before interest and taxation
 (excluding LVMH) 411 379 487 560
 Share of profit before taxation
 of LVMH 40 44 61 79
 Profit before interest and taxation 451 423 548 639
 Net interest charge (98) (73) (106) (89)
 Profit before taxation 353 350 442 550
 Taxation (103) (104) (139) (168)
 Profit after taxation 250 246 303 382
 Earnings per share
 Basic earnings per share 12.9p 13.2p 15.2p 19.8p
 Diluted - bef. exceptional items 12.6p 12.3p 20.4p 21.3p
 Diluted earnings per share 12.6p 12.3p 15.2p 19.1p
 Percentage of full year
 Turnover 40 41 60 59
 Trading profit 40 38 60 62
 Profit before taxation (A) 38 37 62 63
 Earnings per share - diluted (A) 38 37 62 63
 (A) -- Before exceptional items.
 -0- 3/18/93
 /CONTACT: Murray Loake of Guinness PLC, in London, 011-44-71-486 0288; or Felicia Vonella of Dewe Rogerson, in New York, 212-688-6840, for Guinness/


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ENGLISH CHINA CLAYS REPORTS RESULTS FOR THE YEAR ENDED DEC. 31, 1992
GUINNESS AND LVMH RESTRUCTURE RELATIONSHIP
/C O R R E C T I O N -- CELLULAR COMMUNICATIONS OF PUERTO RICO/
GUINNESS PLC: PRELIMINARY ANNOUNCEMENT FOR THE YEAR ENDED DECEMBER 31, 1993

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