|
Continued
Earnings per share
Earnings per share for the Group was 1.0 pence per share (2002: loss of 7.1 pence per share). The 2002 number was impacted by the exceptional charges arising in 2002 following the Chromium business acquisition and subsequent plant rationalisation. Earnings per share before goodwill amortisation and exceptionals was 12 per cent lower at 3.0 pence (2002: 3.4 pence) as the increase in operating profit was more than offset by higher FRS17 pension finance charges and an increased tax charge.
Dividends and issue of redeemable B shares
The Board did not declare an interim dividend and, similarly, is not proposing a final dividend. The Board instead intends to continue with the programme, started in 2000, of issuing and redeeming redeemable B shares.
The total nominal value of redeemable B shares issued to shareholders during 2003 was 2.2 pence per ordinary share.
The Board intends to issue further redeemable B shares to ordinary shareholders on the register on 27 April 2004, such that they receive redeemable B shares with a total nominal value of 1.1 pence for each ordinary share held. This compares with 1.1 pence for the comparable issue last year. This will be coupled with an offer to redeem these new shares for cash at their nominal value on 4 May 2004. A further offer will also be made to existing holders of redeemable B shares to redeem these shares for cash at their nominal value on 4 May 2004.
Cash flow
Net borrowings increased by £9.5 million in the year
to £46.9 million. Working capital increased following the
acquisition of the OxyChem chrome chemicals business in December
2002. At the end of the year the working capital
increase was £2.9 million (2002: decrease of £4.9 million) and as
a consequence, the ratio of working capital to sales decreased from 17.9 per
cent to 17.5 per cent.
The cash flow is summarised below:
 |
2003 |
|
2002 |
|
| |
£million |
|
£million |
|
 |
| |
|
|
|
|
|
| Earnings
before interest, tax, exceptionals, depreciation and amortisation |
40.1 |
|
38.8 |
|
|
| Change
in working capital |
(2.9 |
) |
4.9 |
|
|
| Other |
(22.0 |
) |
(2.6 |
) |
|
| Capital
expenditure |
(21.0 |
) |
(16.2 |
) |
|
| |
(5.8 |
) |
24.9 |
|
|
| Redemption
of B shares |
(9.5 |
) |
(9.6 |
) |
|
| Acquisitions
and disposals |
0.8 |
|
(15.3 |
) |
|
| Currency
fluctuations |
5.0 |
|
2.6 |
|
|
| |
(9.5 |
) |
2.6 |
|
|
| Net
borrowings at start of year |
(37.4 |
) |
(40.0 |
) |
|
| Net
borrowings at end of year |
(46.9 |
) |
(37.4 |
) |
|
Other cash flows increased by £19.4 million, mainly due
to increased contributions to pension schemes and the settlement
of restructuring provisions made in 2002.
Financial review continues on the next page >
[Page 3 of 4]
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