| Mon 11 Mar 2002, 0:00 | | Lonrho Africa Plc |
|
Chairman's statement
Group strategy and progress
Last year I reported that we planned to continue to widen the scope and to
accelerate the timing of our disposal programme. I am pleased to announce
that substantial progress has been made, with net borrowings reduced from
GBP32.4 million to GBP5.7 million.
Motors
In April 2001 we announced that we had entered into conditional agreements
to dispose of our interests in the Toyota Distributorships in Angola, Kenya,
Malawi, Zambia and Zimbabwe to Toyota Tsusho Corporation (TTC) of Japan for
an overall consideration of Yen 220 million (GBP1.2 million) payable in full
on completion. In addition, TTC would repay the indebtedness outstanding to
the Lonrho Africa Group of GBP0.3 million. TTC also agreed to purchase two
Group properties for a consideration of US$0.6 million (GBP0.4 million).
All agreements have now been completed.
In May 2001 we sold our interest in the assets and liabilities of Lonrho
Auto Distributors, which traded under the name of Zimoco and held the
DaimlerChrysler franchise in Zimbabwe, to a consortium including management.
Proceeds totalled Z$52 million (GBP0.3 million), of which Z$27 million
(GBP0.2 million) was deferred and subsequently paid in September 2001. In
addition, trade finance of EURO0.3 million (GBP0.2 million) owed to the
Lonrho Africa Group was repaid. In a separate transaction a Group property
was sold to the consortium in September 2001 for a consideration of Z$22
million (GBP0.1 million).
In September 2001 we agreed the sale of Farming & Engineering Services in
Malawi, the Massey Ferguson distributor, to a consortium including
management. Completion took place in November 2001. The consideration was
an immediate payment of GBP0.5 million and a deferred element in the form of
redeemable preference shares of GBP0.3 million. In addition, group
properties were sold to the consortium for GBP0.1 million.
The Kenyan court injunction over the sale of Lonrho Africa's Kenyan assets,
which was granted pending the hearing of a claim by certain Commercial Paper
holders in Lonrho Motors East Africa Limited (in Receivership), has been
lifted. The hearing is listed for November 2002.
Cotton
Following clearance from the Competition Commission, the bulk of the assets
of the South African operation were sold in December 2000.
Timber
We completed the sale of our Zimbabwean timber interests in August 2001.
The consideration was a cash payment of US$5 million (GBP3.5 million).
Food Processing
In January 2001, we completed the sale of Farmer's Choice, our wholly owned
meat processing business in Kenya, for a cash consideration of GBP5.5
million, payable on completion. Net assets at 30 September 2000 amounted to
GBP5.3 million and subsequent to that date Farmer's Choice paid dividends of
GBP2.1 million and settled inter-company debt of GBP3.3 million.
Distribution
In February 2001 we completed the disposal of our 50.6% interest in John
Holt Plc, our distribution business in Nigeria, to a consortium of
management. The consideration was US$1.6 million (GBP1.1 million), of which
US$1.1 million (GBP0.8 million) was payable on completion and US$0.5 million
(GBP0.3 million) by 31 July 2003. In addition, Nigerian bank debt of GBP10
million was transferred with the disposal. Lonrho Africa's share of the net
assets at 30 September 2000 amounted to GBP1.1 million. Trade finance
provided to John Holt Plc by the Lonrho Africa Group, amounting to GBP5.7
million, was scheduled for repayment by instalments up to 28 February 2003.
We did, however, accept a discounted offer to settle this trade finance debt
in full prior to 30 September 2001.
We completed the disposal of our 80% interest in Import and Export, Malawi
in September 2001.
Hotels
Operating profits improved in the year to September 2001 as both the Kenyan
hotels and Labadi Beach experienced improved occupancy levels. However,
profits are likely to be impacted this year following the events of
September 11, 2001.
Significant interest has been shown, with a number of parties expressing a
desire to purchase the entire hotel group, together with the Ol Pejeta
Ranch and, given the permutation of offers, extensive due diligence
operations have been carried out and continue to be carried out by
prospective purchasers.
Property
The sale of 24,000 acres of agricultural land at Nandi Estates in Kenya
continues. To date proceeds exceed GBP11 million, with GBP5.3 million being
received during the financial year.
Agreements for sale of all the plots on the residential estate at Borrowdale
Brooke, Zimbabwe have now been completed. The twelve-month maintenance
period in respect of the infrastructure ends in March 2002.
Textiles
On 5 June 2001 we disposed of our interest in David Whitehead Textiles in
Zimbabwe to a consortium including management. Proceeds totalled Z$40
million (GBP0.2 million) with Z$20 million (GBP0.1 million) paid on
completion and Z$20 million (GBP0.1 million) paid on 31 October 2001.
General
Keith Atkinson stepped down as Chief Executive and as a member of the Board
on 31 May 2001. Gavin Barnes, Chief Operating Officer, has assumed Keith
Atkinson's duties and he and John Garnett, Chief Financial Officer, are now
jointly responsible for implementing Board decisions and policy. The Board
would like to thank Keith for his considerable contribution over many years
and wish him every success in the future.
The Company's shares were admitted to trading on the Alternative Investment
Market of The London Stock Exchange on 26 February 2001 and at the same time
the listing on The Johannesburg Securities Exchange was moved to the Venture
Capital Market sector of that exchange.
A number of cost saving measures have been introduced including a move to
smaller premises in Liverpool. Following the closure of the Nairobi office
responsibility for operations has moved to Harare. We thank all staff for
their loyalty and service during the year.
Bernard Asher
Chairman
8 March 2002
Operating review
Motors
While the official exchange rate in Zimbabwe has not moved over the past
year, the unofficial parallel market has reflected a currency depreciation
in excess of 450%. This has resulted in an acute shortage of foreign
currency leading to Government inspired controls on imports, price controls
and a reduction in interest rates. This in an environment where inflation
is in excess of 80%. These measures obviously impacted on Dahmer, our bus
building business. In the event, Dahmer did well to report an operating
profit of GBP0.2 million on the back of a 24% decrease in unit sales.
Headcount was reduced by 28% and overhead increases limited to 16% (in local
currency terms).
The positive effects arising from the privatisation of the copper mines in
Zambia were somewhat limited. An operating loss in respect of the non-
Toyota businesses of GBP0.9 million was an improvement on the prior year
level of GBP1.3 million, and included exchange losses of GBP0.3 million,
reflecting a devaluation of the Zambian Kwacha of 11%. Receivables were
reduced by 45% to GBP1.3 million. Further efforts to reduce overheads were
constrained by the inordinately high cost of effecting retrenchments in
Zambia. Group financing of Zambian orders ceased in order to reduce
exposure.
Our Malawi tractor operation posted an operating profit of GBP0.6 million,
up 24% on last year. Another 30 units were placed on full maintenance
leasing contracts with the sugar industry, and the parts and workshop
operations showed growth.
The non-Toyota/Massey Ferguson operations in Swaziland were closed during
the year due to the fact that manufacturers were insisting on improved
facilities, which would have proved uneconomic. The remaining business saw
a 10% reduction in unit sales and operating profit fell from GBP0.5 million
to GBP0.3 million.
The slimmed down motor operation in Angola reported a much reduced operating
loss of GBP0.1 million. Orders were scaled down considerably, and unit
stock on hand was reduced from 105 to 15 units. Inventory value of units
and equipment has been reduced to GBP0.5 million and this has led to
increasing pressure from franchisors.
Timber
All operations in Kenya have now been discontinued, with 1,994 tonnes of
wattle extract remaining for disposal at the end of the financial year. A
nucleus of staff has been retained to complete the sale of Nandi land.
Ranching
While the results from Ol Pejeta in the second half were satisfactory,
reflecting more normal rains, the operating loss of GBP0.1 million reflected
the 2000 drought conditions. Livestock numbers now total 5,700 cattle and
3,800 sheep.
Hotels
The Hotel division reported a 7% increase in turnover to GBP14.7 million,
and an improvement in operating profit from GBP1.2 million to GBP1.6
million.
The Kenyan hotels improved occupancies from 43% to 47% resulting in a 30%
profit enhancement. The flagship Norfolk Hotel increased rooms sold by 10%
which compared favourably with competitors. Capital expenditure of GBP0.5
million was below the budget of GBP1.2 million as projects were postponed.
The main project undertaken during the year was the refurbishment of the
Riverside Cottages at Mount Kenya Safari Club. The Aberdare Country Club
and Sweetwaters were voted best up-country hotel and best tented camp
respectively by readers of Travel News and Lifestyle magazine. Mount Kenya
Safari Club was voted best hotel in Africa and the Middle East by the Travel
and Leisure magazine.
Occupancy of 82% at the Labadi Beach Hotel in Ghana was the best since the
hotel was opened. This, together with the final repayment of the offshore
hard currency loans which had reduced profits due to the depreciating
currency, resulted in a doubling of operating profit.
Hotel Cardoso in Mozambique reported occupancies down from 52% to 47% as
room supply in Maputo increased and visiting aid workers reduced. Overall
demand for hotel accommodation in Maputo fell 13% compared to the previous
year.
Following the events of 11 September 2001, the Hotel division has
experienced a downturn in occupancies but management believes that this is
a short-term trend and that alternative markets will be found to compensate
for the decrease in US visitors.
For further information please contact:
Gavin Barnes, Chief Operating Officer Tel: 0151 243 5300
John Garnett, Chief Financial Officer Tel: 0151 243 5300
Nadja Vetter, Cardew & Co. Tel: 020 7930 0777
Financial review
Basis of preparation of financial statements
Going concern
The directors continue to adopt the going concern basis in preparing the
financial statements as the disposal process continues to reduce net debt in
accordance with the Board's strategy. Net debt at 30 September 2001 was
GBP5.7 million compared to GBP32.4 million at 30 September 2000 and GBP83.6
million at 30 September 1999. The Directors remain confident that further
disposals will be made in the next financial year to reduce borrowings.
Bank facilities are now, in the main, uncommitted but the principal lenders
have an agreed repayment schedule based on a share of disposal proceeds.
Regular meetings are held to discuss the progress of the disposal programme
and whilst this is taking longer than anticipated (in particular the
Hotels), sufficient progress has been made for the Directors to believe that
the support of the principal lenders will remain in place.
Asset values
In preparing the financial statements the Directors have reviewed the
carrying values of both fixed and current assets in light of the current
economic uncertainties, and have made such adjustments as they consider
reasonable and prudent.
Group performance
Continuing operations at 30 September 2001 consist of Hotels, Ol Pejeta
Ranching in Kenya and Motors businesses in Angola, Swaziland, Zambia and
Zimbabwe.
Total turnover in continuing operations decreased by 20% for the year,
largely because of weaker trading in Motors and weaker local currencies.
However, turnover in Hotels increased by 6.5% compared to the year 2000.
The total operating loss for the year of GBP1.6 million compared favourably
with the loss last year of GBP32.5 million because of the substantial
reduction in exceptional items although cost savings have been made
following the reorganisation of the Group's head office function, which will
impact more fully in future periods.
Loss on sale and termination of operations amounted to GBP11.9 million,
although this includes GBP5.1 million of goodwill which had been previously
set off against reserves.
Net interest payable at GBP3.3 million was lower than last year's charge of
GBP12.8 million because of the reduction in debt following the sale of
assets and businesses, a reduction in hard currency interest rates and the
devaluation of some African currencies.
Dividend
The Board has decided that it is not appropriate to declare a dividend.
Annual General Meeting
The Annual General Meeting will be held on Wednesday 17 April, 2002 at 2.30
pm at Liverpool Moat House Hotel, Paradise Street, Liverpool L1 8JD.
At this meeting a resolution will be proposed which, if passed, will give
the Directors a general authority to make market purchases of up to 15.757
million ordinary shares of 20p each (representing approximately 10% of the
current issued share capital). The Directors would only use this authority
if it was considered to be in the best interests of the Company, and they
could foresee a consequent improvement in earnings per share.
Consolidated profit and loss account
for the year ended 30 September
Note 2001 2001 2001 2000 2000 2000
Continuin Discon Total Continu Discont Total
g tinued GBPm ing inued GBPm
operation operati operati
s GBPm operat ons ons
ions GBPm GBPm
GBPm
Turnover
Group 32.9 72.8 105.7 41.1 211.8 252.9
Joint ventures 0.4 8.5 8.9 0.3 13.8 14.1
33.3 81.3 114.6 41.4 225.6 267.0
Group net (35.8) (72.4) (108.2) (50.4) (233.3) (283.7)
operating costs
- before (2.2) 1.5 (0.7) (2.0) 1.7 (0.3)
exceptional
items
- exceptional 1a (0.7) (1.1) (1.8) (7.3) (23.2) (30.5)
items
(2.9) 0.4 (2.5) (9.3) (21.5) (30.8)
Joint ventures
- before 0.1 0.8 0.9 0.1 0.1 0.2
exceptional
items
- exceptional 1a - - - - (1.9) (1.9)
items
0.1 0.8 0.9 0.1 (1.8) (1.7)
Total operating
profit/(loss)
- before (2.1) 2.3 0.2 (1.9) 1.8 (0.1)
exceptional
items
- exceptional 1a (0.7) (1.1) (1.8) (7.3) (25.1) (32.4)
items
(2.8) 1.2 (1.6) (9.2) (23.3) (32.5)
Profit on disposal of land and - 2.9
buildings
Loss on sale or 1b (11.9) (15.8)
termination of
operations
Net interest (3.3) (12.8)
payable
Loss before (16.8) (58.2)
taxation
Taxation (1.8) (3.9)
Loss after (18.6) (62.1)
taxation
Minority interests (1.2) 4.7
Loss for the year (19.8) (57.4)
Dividends to - -
shareholders
Retained loss (19.8) (57.4)
Loss per share
(basic and (12.6) p (36.4)
diluted)
Loss per share before
exceptional
Items (basic and (3.9) p (7.2)
diluted)
Dividends per - -
share
Not The figures for 2000 have been restated to reflect
e operations that ceased during 2001 as discontinued.
Balance sheet
for the year ended 30 September
Group
2001 2000
GBPm GBPm
Fixed assets
Tangible 38.5 74.6
Investments :
Joint ventures 0.3 1.2
Other investments 0.6 0.4
39.4 76.2
Current assets
Stocks 5.8 41.3
Debtors :
Amounts falling due within 12.1 34.7
one year
Amounts falling due after 8.4 -
more than one year
20.5 34.7
Cash at bank 5.7 7.2
32.0 83.2
Creditors
Amounts falling due within (25.9) (86.7)
one year
Net current 6.1 (3.5)
assets/(liabilities)
Total assets less current 45.5 72.7
liabilities
Creditors
Amount falling due after - (1.0)
more than one year
Provisions for liabilities (5.1) (5.9)
and charges
Net assets 40.4 65.8
Capital and reserves
Called up share capital 31.5 31.5
Revaluation reserve 20.2 30.7
Other reserves 48.5 34.1
Profit and loss account (66.1) (39.2)
Shareholders' funds 34.1 57.1
Minority interests (equity) 6.3 8.7
40.4 65.8
Consolidated cash flow statement
for the year ended 30 September
2001 2000
Note
GBPm GBPm GBPm GBPm
Net cash flow from
operating activities
- continuing operations (5.2) 5.9
- discontinued 11.6 17.2
operations
4 6.4 23.1
Returns on investments and
servicing of finance
Interest
- received 0.3 1.7
- paid (3.5) (13.7)
Dividends to minorities (0.2) (0.4)
Net cash outflow from (3.4) (12.4)
returns on investments and
servicing of finance
Tax paid
United Kingdom - (0.1)
Overseas (1.9) (4.2)
Total tax paid (1.9) (4.3)
Net cash inflow before 1.1 6.4
investing activities and
equity dividends
Net capital receipts 5 5.6 14.0
Net proceeds from 6 17.0 21.2
disposal of subsidiaries
Net cash inflow before 23.7 41.6
management of liquid resources
and financing
Financing
New long-term loans - 0.1
New short-term loans 1.7 1.7
Repayment of long-term (4.0) (2.4)
loans
Repayment of short-term (0.2) (15.0)
loans
Net cash outflow from (2.5) (15.6)
financing
Increase in 21.2 26.0
cash
Notes to the accounts
1. Exceptional items
a Operating items
)
Operating Continu Disconti Total Continuin Discont
profit/(loss) ing nued 2001 g ued
includes the operati operatio GBPm operation operatio
following ons ns s s
exceptional items 2001 2001 2000 2000
GBPm GBPm GBPm GBPm
Provisions against fixed assets, stocks
and debtors in :
Angolan motor - - - (3.8) -
business
Angolan joint - - - - (1.9)
venture
Malawi motor - (0.7) (0.7) - -
business
Swaziland motor (0.6) - (0.6) - -
business
Zambian motor - - - (2.5) -
business
East Africa motor - - - - (6.8)
business
Cotton operations - - - - (3.2)
Textiles business - - - - (3.1)
Zimbabwe - - - - (7.5)
plantations
Write off of - - - - (0.6)
goodwill in I&E
Malawi
Reorganisation and (0.1) (0.4) (0.5) (1.0) (2.0)
rationalisation
costs
(0.7) (1.1) (1.8) (7.3) (25.1)
Operating exceptional items analysed by
division are as follows:
Motors (0.6) (0.7) (1.3) (6.8) (8.7)
Agribusiness - - - - (10.7)
Distribution - - - - (0.6)
Textiles - - - - (3.1)
Central (0.1) (0.4) (0.5) (0.5) (2.0)
(0.7) (1.1) (1.8) (7.3) (25.1)
Minority interest (0.2) 0.2 - - 1.8
(0.9) (0.9) (1.8) (7.3) (23.3)
1. Exceptional items
continued
b Non-operating
) items:
Continuing Discontin Total Continuin Discont
operations ued 2001 g operation
2001 operation GBPm operation 2000
GBPm s 2001 s 2000 GBPm
GBPm GBPm
Profit/(loss) on
disposal of
subsidiaries :
Motors - (2.5) (2.5) - (6.0)
Agribusiness - 1.0 1.0 - (5.7)
Distribution - (2.6) (2.6) - -
Property - (1.2) (1.2) - (1.9)
Other disposal and - (1.5) (1.5) 0.1 (2.3)
closure costs
Goodwill previously - (5.1) (5.1) - -
set off against
reserves (note 20)
- (11.9) (11.9) 0.1 (15.9)
Non-operating exceptional items analysed
by division are as follows :
Motors - (2.7) (2.7) - (6.0)
Agribusiness - 1.0 1.0 - (6.7)
Distribution - (5.8) (5.8) - 0.2
Hotels - - - 0.1 -
Property - (1.2) (1.2) - (1.9)
Central - (3.2) (3.2) - (1.5)
- (11.9) (11.9) 0.1 (15.9)
Profits - 2.6 2.6 0.1 0.5
Losses - (14.5) (14.5) - (16.4)
- (11.9) (11.9) 0.1 (15.9)
Minority interest - - - - 0.4
- (11.9) (11.9) 0.1 (15.5)
2. Pension costs
The Group operates one defined benefit pension scheme in the United Kingdom.
This scheme is a funded scheme. It also operates a variety of pension
schemes overseas.
The charge for the overseas schemes was GBP0.8 million (2000: GBP1.5
million) resulting in a total pension charge for the Group of GBP0.8 million
(2000: credit GBP0.1 million). In respect of the overseas schemes, pension
costs have been determined in accordance with the latest actuarial advice
where practicable and otherwise in accordance with local regulations.
The UK pension scheme asset of GBP8.1 million (2000: GBP8.1 million) relates
to a prepayment of contributions calculated under Statement of Standard
Accounting Practice No 24 ("SSAP24").
This prepayment would normally be realised by suspending future
contributions so that the prepayment would reverse as pension liabilities
increased. However, because the number of active members has reduced in
recent years this asset will not be realised for some considerable time.
Inland Revenue regulations stipulate that in order to continue to be tax
exempt, Pension Funds must maintain assets at no more than 105% of
liabilities, and Pension Funds should be valued at three year intervals
using prescribed actuarial assumptions in order to ensure that this ratio is
maintained.
Because the September 1999 valuation disclosed that assets were in excess of
105% of liabilities the Trustee of the scheme proposed a series of benefit
improvements for members plus an application to the Pensions Regulator
("OPRA") to grant a modification order to authorise a repayment to the
sponsoring employer, of approximately GBP8.5 million after tax has been
deducted.
In accordance with the Pensions Act the modification order process started
in August 2000 by consulting the members of the Scheme. Objections were
received from six members and because of these objections the Trustee has
been advised by legal counsel to seek the direction of the court over the
correct interpretation of the Trustee's power under the Trust Deed. In the
meantime, the application to OPRA has been stayed.
Pending the outcome of the court hearing and the application to OPRA it is
not certain whether a repayment to the sponsoring employer can be made or if
it can be made how much of the requested GBP8.5 million after tax can be
repaid.
Composition of the deferred benefit scheme in the United Kingdom
As stated above, the United Kingdom pension cost figures used in these
accounts comply with the current pension cost accounting standard, SSAP24.
Under the new pension standard, Financial Reporting Standard 17 ("FRS17")
"Retirement Benefits", the following transitional disclosures are required:
The group operates a defined benefit scheme in the UK. A full actuarial
valuation was carried out at 30 September 1999 and updated on an FRS 17
basis to 30 September 2001 by a qualified independent actuary. The major
assumptions used by the actuary for the purposes of the FRS17 figures were :
Rate of increase in salaries 3.9%
Rate of increase in deferred pensions 2.4%
Rate of increase in pensions in payment 2.4%
Discount rate 6.1%
Inflation assumption 2.4%
The assumptions used by the actuary are the best estimates chosen from a
range of possible actuarial assumptions which, due to the timescale covered,
may not necessarily be borne out in practice.
The fair value of the scheme's assets, which are not intended to be realised
in the short term and may be subject to significant change before they are
realised, and the present value of the schemes liabilities, which are
derived from cash flow projections over long periods and thus inherently
uncertain, were:
Long-term rate of Value at
return expected at30 September
30 September 2001 2001
(pa) GBPm
Equities 6.9% 16.9
Bonds (Fixed Interest and Index Linked)4.9% 22.4
Cash 4.6% 12.6
______
51.9
Present value of scheme liabilities (10.1)
______
Surplus in the scheme 41.8
______
However, of the surplus in the Scheme only GBP2.2 million can be utilised by
suspending future contributions. The current modification order, which is
subject to the court hearing (see above), will utilise approximately GBP19.2
million of the above surplus (of which approximately GBP8.5 million after
tax may be returned to the sponsoring employer with the remainder going to
the members of the scheme). However, any further amounts that could be
repaid to the sponsoring employer would need to be subject to a further
application for a modification order and the viability of any further order
cannot be determined until the outcome of that court hearing.
The Company has agreed with the trustees not to pay any further
contributions subject to review at the next actuarial valuation as at 30
September 2002.
The Group does not have any material post retirement benefits other than the
pension schemes noted above.
3. Contingent liabilities
Group Company
2001 2000 2001 2000
GBPm GBPm GBPm GBPm
Third party guarantees - 2.0 - 2.0
Taxation 6.3 13.0 - -
Pending litigation 3.3 3.3 3.3 3.3
Other - 0.5 - -
Guarantees of loans of - - 10.5 25.4
subsidiary undertakings
Total 9.6 18.8 13.8 30.7
Certain Group companies have, in the ordinary course of business, entered
into counter indemnities and performance bonds relating to the Group's own
contracts.
The Group is in discussions with the taxation authorities in a number of
territories over disputed treatments of certain items for taxation purposes.
There are three principal areas of dispute. The Kenya Reserve Authority is
in dispute with Kenyan hotel operators in relation to the charging of VAT on
transportation services and has raised assessments on certain of the Group's
Kenyan Hotels businesses following reviews of the VAT returns. The Zambia
Revenue Authority are in dispute with a number of our Motor companies over
the treatment of head office charges in the accounts and with Turnpan Zambia
Limited over the payment of duty in respect of the operation of a bonded
warehouse. The Zimbabwe Department of Taxes is in dispute with Lonrho Auto
Distributors (Pvt) Limited regarding the treatment for taxation purposes of
vehicle sales and other matters. The total of the amounts assessed and the
estimated additional tax calculated (including interest and penalties) on
the matters raised have been included in contingent liabilities. The
Directors, having taken advice from KPMG, their tax advisers in the
appropriate countries, believe that most of the matters raised by the
taxation authorities are without merit under the tax legislation extant at
the times concerned and so do not believe that any liability will arise
although there can be no certainty as to the ultimate outcome.
The pending litigation in respect of action brought by certain commercial
paper investors in Lonrho Motors East Africa Limited ("LMEA") against,
inter alia, the Company and LMEA, is still being processed through the
Kenyan courts. The litigation will continue to be contested vigorously by
the Company whose Directors believe that the claim will be successfully
defended.
4.
Discontinu Total
ed 2000
operations GBPm
2000
GBPm
Operating (21.5) (30.8)
(loss)/profit
Depreciation charge 6.4 7.8
Provisions for 9.0 12.2
impairment of assets
0.9 0.9
Decrease in stocks 7.0 14.8
(Increase)/decrease in 16.4 16.7
debtors
(Decrease)/increase in (1.0) 1.5
creditors
17.2 23.1
5.
Group 2001 2000
GBPm GBPm
Purchase of tangible (2.2) (5.9)
fixed assets
Sale of tangible fixed 7.0 19.8
assets
Sale of fixed asset 0.8 0.1
investments
5.6 14.0
6. Net proceeds from disposals of
subsidiaries and joint ventures
Note 2001 2000
GBPm GBPm
Sale of joint ventures 1.2 0.1
Disposal and closure (0.9) (1.2)
costs
Sale of 31 16.7 22.3
subsidiaries
17.0 21.2
Statutory information
The financial information set out above does not constitute the
Company's statutory accounts for the years ended 30 September 2000 or
2001 but is derived from those accounts. Statutory accounts for 2000
have been delivered to the registrar of companies, and those for 2001
will be delivered following the Company's Annual General Meeting. The
auditors have reported on those accounts; their report from 2000 was
unqualified, although it draws attention to the uncertainties relating
to preparation of the accounts on a going concern basis, asset
valuations and contingent liabilities; it did not contain a statement
under section 237 (2) (inadequate accounting records or returns or
accounts not agreeing with records and returns) or 237 (3) (failure to
obtain necessary information and explanations) of the Companies Act
1985. The auditors' report for 2001 was unqualified, although it
draws attention to the uncertainties relating to:
(a) preparation of the accounts on a going concern basis and
(b) asset valuations.
It did not contain a statement under sections 237 (2) or (3) of the
Companies Act 1985
Date: 11/03/2002 10:11:00 AM Produced by the JSE SENS Department
