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Cash flow and
capital investment
Net debt and funding
The group has consolidated and is
Earnings per share
and dividend
31
Cash flow for the year was strongly
looking to decrease debt. Net debt at
Earnings per share stood at 50.3%
positive and the group met all of its
the year-end stood at £60.4 million.
for the year. Due to the recent
announced goals, in line with market
Bakkavör has secured a £10 million
acquisition of KFF, no dividends will
expectation. Net income for 2001 was
revolving credit facility for 7 years
be allocated from operations in 2001.
£2.6 million, up 122% on the
and a 7 year term loan with a group
However it is the company’s policy to
previous year’s figure of £1.2 million.
of banks: Halifax Bank of Scotland,
pay dividends and in 2000 dividends
Working capital from operating
HSBC and Royal Bank of Scotland.
were 20% of nominal value,
activities in 2001 amounted to £4.1
This ensures that medium-long term
significantly above expectations.
million, representing a 64% rise over
funding is in place to support our
£2.5 million generated in 2000.
continued growth requirements. Net
Capital expenditure for the year was
at £1.6 million, the same as in 2000.
interest for the year was £0.7 million
falling from £0.8 million in 2000.
Accounting standards
Group accounts are in Icelandic
Excluded is the cost of the
acquisitions of KFF and FPL in
December 2001, in total an
investment of £101.8 million. Net
funds outflow for 2001 was £116.1
million and financing activities
generated a net inflow of £116.4
million, raised by debt financing and
equity offering used to finance the
above acquisitions. Tax and dividend
Tax
Tax charges for the year were £1.0
million resulting in an effective rate
of tax of 28.4% compared to
standard U.K. corporation tax of 30%.
The group has been active in tax
planning and in the U.K. effective use
has been made of offset losses. In
Krónur but are also available in Euro
and Sterling. Group accounting is
based around the principal of
transparency of business and all
subsidiaries are included in group
accounts. For the year 2001, 17.5% of
Group business is in eurozone
countries so the group is well
prepared for future conversion of
accounts in the U.K.
payments totaled £1.0 million
Iceland effects of changing tax rates
have been minimised with the
effective tax rate remaining relatively
constant. In 2002 the corporation tax
rate will fall from 30% down to 18%
and efficient use of this low rate will
be part of our future tax initiatives.