TDG 2004 Interim Results

TDG PLC
28 July 2004

28 July, 2004

TDG plc
INTERIM RESULTS 2004

Performing in line with expectations

Highlights

• Headline* profit before tax £5.1m (2003 : £7.4m)

• New business wins of £44m, 19% up on last year

• Profit on ordinary activities before tax of £4.3m (2003 : loss of £3.1m)

• Earnings per share 3.7p (2003 : loss per share 6.7p)

• Dividend maintained at 5.25p per share

• Strong cash inflow before dividends of £16.3m

• Net debt further reduced to £14.4m, with gearing at 9%

A table analysing the Group results is included in the Chief Executive’s Review.

*before goodwill amortisation, exceptional charges and pension variation credit.

David Garman, Chief Executive of TDG, commented:

‘The financial results for the first six months of the year are in line with our
expectations. As previously indicated, the headline profit of £5.1m for the
first half is lower than for the comparable period, having absorbed the costs
associated with winning and implementing a higher level of new business, and the
impact of a delay in the implementation of a major contract in Ireland. Market
conditions remained challenging, and we are therefore particularly encouraged
that we have been able to accelerate the rate of new business wins during the
first half.

We expect the second half of this year to benefit from the new business that has
been implemented during the first half, and from the broad range of operational
cost reduction and productivity improvement projects being actioned across the
Group. We continue to expect trading for 2004 as a whole to be at similar
levels to 2003.’

Enquiries:
TDG Financial Dynamics
David Garman, Chief Executive Ben Foster/Andrew Dowler
Paul Mainwaring, Finance Director Tel: 020 7831 3113
Tel: 020 7222 7411

CHAIRMAN’S STATEMENT

The financial results for the first six months of the year are in line with our
expectations. As previously indicated, the headline profit of £5.1m and
headline earnings per share of 4.7p for the first half are lower than for the
comparable period, having absorbed the costs associated with winning and
implementing a higher level of new business, and the impact of a delay in the
implementation of a major contract in Ireland. Turnover is down 13% to £241m
reflecting our withdrawal from direct operations in France, the exit from the
low value added ‘groupage’ activities in Ireland, and the above average level of
contract losses in the UK last year. In the first half of this year contract
losses reduced to a normal level and have been substantially outweighed by new
business wins.

Market conditions remain challenging, and we are therefore particularly
encouraged that we have been able to accelerate the rate of new business wins
during the first half. The annualised value of new contracts won, at £44m, is
19% ahead of the value won at the equivalent stage last year. In a difficult
operating environment we remain focused on delivering ongoing cost reduction and
productivity improvements in order to enhance our customers’ competitiveness and
to offset margin pressures.

The reported profit before tax of £4.3m compares to a loss of £3.1m reported for
the comparable period, which included exceptional charges relating to cost
reduction and business rationalisation action in the UK and Ireland, and our
withdrawal from direct operations in France. Reported earnings per share are
3.7p (2003: loss per share of 6.7p).

We have made good progress on our withdrawal from France, realising a small net
cash inflow from this project during the first half. We remain confident that
we will complete the asset di