Preliminary results announcement for the year to 31 march 2007
Financial Highlights
– Revenue up 10 pct to GBP 899m (2006: GBP 819m)
– Underlying operating profit before exceptional decreased to GBP 18.1m (2006: GBP 20.7m)
– Underlying profit before tax and exceptional down to GBP 12.5m (2006: GBP 15.4m)
– Earnings per share of 17.90p (2006: 4.46p)
– Strong free cash flow of GBP 61m, reflecting the GBP 46m from the property sale & leaseback
– Significant reduction in net debt to GBP 39m (2006: GBP 94m)
– Final dividend unchanged at 2.45p
Operational Highlights
– Sales growth momentum continues
– New business wins ahead of last year at GBP 130m
– Food and Consumer sector performed strongly
– UK businesses had an excellent year
– Transport sector had a difficult year
– Review of UK Transport complete and turnaround actions underway
– France continued strong revenue growth with new wins
– Strengthened management team
Stewart Oades, Chief Executive, said:
“Whilst the continued improvement in growing the business through new wins and increased retention rates is pleasing, there remains much to be done. The markets we operate in are still highly competitive and the performance of UK Transport is not acceptable. We have completed a thorough review of this business unit and have put in place a plan to move this business back into profit. Although this will take time, UK Transport is an essential part of our strategy to create a pan-European shared-user business.
“In the current year we expect revenue growth to continue and anticipate some benefit from the restructuring, although it will take longer before we see the full impact.”
