2002 Report And Accounts - Guinness Peat Group plc

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Financial Reviewand the prior year’s provisions have been restatedaccordingly. In addition a deferred tax asset inrelation to the timing differences of £247,000(2001: £341,000) is carried in the balance sheet onthe basis that it will reverse in the immediate future.With the downsizing of the Group and theelimination of loss making subsidiaries the abilityto use brought forward tax losses has now beenreduced and the Group became a tax payer duringthe year. However, previously written off ACT hasreduced the amount of taxation payable.DividendsThe Board is not recommending the paymentof an ordinary dividend as the Company hasinsufficient distributable reserves.Earnings Per ShareThe earnings per share calculated in accordancewith FRS 14 was 7.1p (2001 restated: 23.6p loss).The earnings per share before exceptional itemswas 16.0p (2001 restated: 8.8p).PropertiesDuring the year five properties held for resalewere sold for £1,504,000 at a profit of £25,000.This leaves only two properties remaining witha combined book value of £600,000.Capital ExpenditureCapital expenditure totalled £0.3m in the year,which principally relates to the Group’s ongoingdevelopment of its CAD and information systems.Research and DevelopmentDuring the year the Group has continued thedevelopment of new products within itsbusinesses. At 30th June 2001 the capitalisedcosts of new product development totalled£394,000 and further costs of £193,000 wereincurred and capitalised during the year. However,recent trials of this machinery have providedinconclusive results and the total capitalised costshave been written off through the profit and lossaccount as an exceptional item. In addition,development costs in relation to other projects of£307,000 (2001: £375,000) were written offthrough the profit and loss account.PensionsThe Group operates a defined benefit pensionscheme. Under SSAP 24 a prepayment of £22.1mis recognised on the balance sheet. However, itmust be noted that the transitional disclosuresrequired by FRS 17 (see note 26) show a pensionliability of £14.8m as at 30th June 2002.FinancingThe cash inflow from operating activities was£4.4m (2001: £1.3m – outflow). Finance servicingcosts have reduced significantly during the periodfrom £2.6m to £0.8m. This is due to the lowerlevel of overall debt and the payment of a £1marrangement fee to the Group’s previous bankersin 2001.Acquisitions and disposals resulted in a net cashoutflow of £0.3m (2001: £9.7m inflow). Overall,cash inflow for the Group was £2.6m (2001: £3.6m).At 30th June 2002, overdrafts, loan notes andfinance lease obligations were £4.1m and theGroup held cash of £0.2m. Net borrowings, whichdecreased by £4.2m during the year to £3.9m,represent 19% of net assets (2001: 46%).During the year the Group negotiated new bankingfacilities with Lloyds TSB. These new facilities areon demand and are not subject to financialcovenants.The borrowing powers of the Directors arelimited to three times capital and reserves, asdefined in the Company’s Articles of Association.At 30th June 2002 the limit was £60.5m.8
Financial ReviewTreasury ActivitiesThe Group’s treasury operations are managed inaccordance with policies established by the Board.Treasury activities are reported to the Board andare subject to review by internal audit.Financial instruments are used to raise finance andto manage risk. The Group does not engage inspeculative activity.Foreign currency riskThe Group continues to operate a risk aversepolicy to foreign exchange exposures. Contractand trading transactions in non-local currenciesare hedged as soon as they are reasonably certainas to timing and amount. The results of overseassubsidiaries are translated into sterling at averageexchange rates with no cover taken againstpossible fluctuations.The principal financial risks faced by the Grouprelated to interest rate and exchange rate risk.Finance and interest rate riskThe Group is financed by a combination of equity,retained reserves, bank borrowings, finance leasesand loan notes. Individual subsidiaries are financedthrough a combination of external debt, and loanand equity finance from the Company.D J LoftusGroup Finance DirectorInterest rate hedging derivatives are regularlyconsidered by the Board but are not currentlyused nor were they used during the year.9
Page 1 and 2: Report and Accounts 2002
Page 3 and 4: Year in BriefCorporate Highlights
Page 5 and 6: Chairman’s StatementPRIMARY TOBAC
Page 7 and 8: Chairman’s StatementWEB PROCESSIN
Page 9: Financial ReviewIntroductionOther t
Page 13 and 14: Directors’ ReportThe Directors pr
Page 15 and 16: Directors’ ReportIn addition to t
Page 17 and 18: Remuneration Committee ReportRemune
Page 19 and 20: Remuneration Committee ReportRemune
Page 21 and 22: Independent Auditors’ ReportTo th
Page 23 and 24: Group Balance Sheetas at 30th June
Page 25 and 26: Company Balance Sheetas at 30th Jun
Page 27 and 28: Notes to the Group Cash Flow Statem
Page 29 and 30: Accounting PoliciesBasis of account
Page 31 and 32: Notes to the Financial Statements2
Page 51 and 52: Notice of MeetingNotice is hereby g
Page 53 and 54: Form of ProxyBrunel Holdings PlcAnn
Page 55 and 56: High Performance Flotation Coolerfo

2002 Report And Accounts - Guinness Peat Group plc

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