LONDON--(BUSINESS WIRE)--Nov. 9, 2000--Tate & Lyle, a
world leader in sugar, cereal sweeteners and starches, today announced
their interim results for the 27 weeks ended September 30, 2000.
ANNOUNCEMENT OF INTERIM RESULTS
For the 27 weeks ended September 30, 2000
----------------------------------------------------------------------
2000 2000 1999
INTERIM RESULTS TO SEPTEMBER 27 weeks 27 weeks 26 weeks
$million (pound)million (pound)million
(a)
----------------------------------------------------------------------
Sales $3,183 (pound)2,122 (pound)2,132
Total operating profit:
group and share of joint
ventures and associates $159 (pound)106 (pound)166
Profit before tax,
exceptional items and
goodwill amortization $102 (pound)68 (pound)127
(Loss)/profit before
taxation ($3) ((pound)2) (pound)127
Earnings per share (diluted)
before exceptional items 14.0(cent) 9.3p 17.4p
(Loss)/earnings per share
(diluted) after
exceptional items (9.8(cent)) (6.5p) 17.4p
----------------------------------------------------------------------
(a) US dollar equivalents are provided at the average exchange rate
for the period of $1.5=(pound)
"Overall, we are making good progress in the delivery of the
strategy as set out in the last Annual Report, and we are pursuing
strategic solutions for both our US sugar businesses. This remains a high
priority. Trading conditions have not improved since the Annual General
Meeting and in US sugar there has been a further deterioration in recent
weeks. If current conditions persist, it will be difficult in the second
half of this financial year to improve on the results for the first half.
Our response to these circumstances is to intensify our focus on cost
reduction and cash management."
Sir David Lees Larry Pillard
Chairman Chief Executive
ANNOUNCEMENT OF INTERIM RESULTS
For the 27 weeks ended September 30, 2000
-- Good progress on strategic initiatives
-- Profits significantly impacted by difficult trading conditions
-- Operating cash inflow of (pound)195 million ($293 million)
-- Unchanged interim dividend of 5.5p(b) (8.3(cent))
(b) This is unchanged from the interim dividend for the first half
year to March 27, 1999, the appropriate comparative period
following the change of year-end.
INTERIM REPORT
Overview
Profit before tax, goodwill amortization and exceptional items for the
27 weeks to September 30, 2000 was (pound)68 million, ($102 million)
compared to (pound)127 million in the 26-week period to September 25,
1999, and was, as expected, below the (pound)82 million achieved in the 26
weeks to March 2000. Unprecedentedly poor market conditions have resulted
in continuing losses in US sugar, and competitive markets at Staley and
Amylum have also depressed profitability. Furthermore, the Group as a
whole has seen a (pound)12 million increase in energy costs compared with
the 26 weeks to September 25, 1999. We expect Group energy costs for the
2001 financial year to be over (pound)30 million higher than in the year
to March 2000. We continue to refocus the Group towards higher-margin and
higher-growth businesses, disposing of underperforming assets and
eliminating costs wherever possible. The acquisition of the minorities in
Amylum and Staley, and the sale of the commodity Australian sugar
business, Bundaberg, were completed in this period, and eight smaller
businesses have also been sold. Since the period end, we have signed a
non-binding memorandum of understanding for the sale of Western Sugar, and
further details relating to this agreement are described below. We
announced on August 1, 2000 that we had entered into a joint development
agreement with DuPont's Bio-Based Materials business to develop the
process that turns a carbohydrate base into 1,3-propanediol ('PDO'), which
is then used to manufacture DuPont SoronaTM, the most advanced polymer
platform in DuPont's science portfolio. This is an excellent fit with our
global carbohydrates business and an important opportunity to advance our
strategy of growing through developing new value-added products. It is
expected that a pilot plant for the process will be completed by the
year-end. We continue to benefit from cost cutting initiatives, including
the UK and North American Business Improvement Projects and other
programs, although the benefit is currently masked by market conditions.
The Board has declared an interim dividend of 5.5p (8.3(cent)) per share,
to be paid on January 16, 2001 to shareholders registered on December 8,
2000. This is unchanged from the interim dividend for the first half year
to March 27, 1999, the appropriate comparative period following the change
of year-end.
Results for the 27 weeks to September 30, 2000(1)
Sales were almost unchanged at (pound)2,122 million ($3,183 million)
(comparable half year (pound)2,132 million). Operating profit was
(pound)106 million ($159 million) (comparable half year (pound)166
million) and included losses of (pound)5 million (comparable half year
(pound)3 million) from discontinued businesses and a (pound)1 million
(comparable half year nil) charge for amortization of goodwill relating to
the purchase of minorities in Amylum and Staley. Exceptional items totaled
(pound)69 million (comparable half year nil), comprising the profits on
the sale of other businesses of (pound)6 million, less a (pound)75 million
write down in recognition of the proposed sale of Western Sugar, which
includes goodwill of (pound)25 million previously written off to reserves.
The effect of the write down on shareholders' funds is a reduction of
(pound)50 million. Profit before tax, goodwill amortisation and
exceptional items was (pound)68 million ($102 million) (comparable half
year (pound)127 million). Loss before tax and after goodwill amortisation
and exceptional items was (pound)2 million (comparable half year profit of
(pound)127 million). Currency movements benefited profit before tax by
(pound)1 million, with a (pound)7 million gain in the Americas segment
offsetting adverse movements of (pound)3 million in the European segment
and (pound)3 million elsewhere in the Group. The underlying tax charge
remained at 27%. Diluted earnings per share before goodwill amortization
and exceptional items were 9.3p (14.0(cent)) (comparable half year 17.4p),
and after exceptional items losses per share were 6.5p (9.8(cent))
(comparable half year earnings of 17.4p). Net cash inflow from operating
activities was satisfactory despite adverse trading conditions,
contributing (pound)195 million ($293 million) against (pound)306 million
last year. Capital expenditure at (pound)57 million (comparable half year
(pound)50 million), remained below depreciation. The sale of Bundaberg for
(pound)159 million, completed in July, together with other disposals
totaling (pound)19 million, contributed to the funding of the (pound)212
million cash consideration for the purchase of the Amylum and Staley
minorities, completed in August. 24.08 million new ordinary shares worth
(pound)69 million were also issued in August as the balance of the
consideration for this acquisition.
US Sugar Strategic Review
As part of our overall strategy, we have been active in evaluating and
pursuing options for the Group's US sugar businesses, Domino and Western
Sugar, both of which are trading unprofitably. We have signed a
conditional non-binding memorandum of understanding with the Rocky
Mountain Sugar Growers Co-operative ('RMSGC') for the sale of Western to
RMSGC. Whilst this is an important initial step towards a solution,
discussions may take some months to conclude. Any disposal of Western is
likely to be at a substantial discount to net asset value. In recognition
of this, a (pound)75 million write down has been charged as an exceptional
item, and this includes goodwill of (pound)25 million previously written
off to reserves. Fixed assets at Western Sugar at the end of September
were (pound)103 million before the write down. We continue to explore
options for Domino, although the prospects for a speedy resolution have
been further impaired by worsening conditions in the US sugar market.
Amylum Integration
Following the completion of the purchase of the minorities in Amylum
and Staley on 14 August, good initial progress has been made towards the
full integration of the Amylum businesses with the rest of the Tate &
Lyle Group and towards the creation of a global starch business. Teams are
pursuing benefits in operations, sales, procurement, logistics, and also
in support services such as tax, treasury and accounting. For a number of
product lines, particularly in value-added starches, this will lead, in
time, to world markets being served flexibly through co-ordinated
production plants in America and Europe, as already happens in the citric
acid business. Our target is for annual benefits to exceed (pound)50
million within three years.
Segmental Analysis before Exceptional Items
Americas
Profits in the segment declined by (pound)35 million to (pound)57
million. Profits at Staley were lower, principally because of reduced
sweetener margins. Higher net corn costs, arising from lower by-product
pricing, and higher energy costs, affected margins in both sweeteners and
starches. Starch margins also suffered from lower pricing for industrial
starches. High fructose corn syrup ('HFCS') volumes were flat, as a result
of disappointing carbonated soft drink consumption in the US. Citric acid
improved as the benefits of increased capacity at the Dayton, Ohio,
factory, and in Brazil, began to come through, although results were below
our expectations in terms of both volumes and prices. In our North
American sugar business, Canadian refining performed well, with higher
volumes and good margins. In the US, however, where the sugar market is
substantially oversupplied, both beet-processing and cane-refining
operations continued to make losses. Margins were squeezed by
unprecedentedly low selling prices, coupled with increased energy costs.
Our new purpose-built barge began operations in September, transporting
partly-processed liquid sugar from Baltimore, which will enable Brooklyn
to move to full production as well as reducing transport costs. A rise of
over 10% in US raw sugar prices at the end of September and the beginning
of October has resulted in a further squeeze on margins and will make a
return to profitability at Domino in the second half of this financial
year unlikely.
Europe
Profits in the segment declined by (pound)19 million to (pound)48
million. At Amylum, our European cereal sweetener and starch business,
profits fell. HFCS volumes in Western Europe were down in the period, due
to the poor summer weather in northern Europe and to the rephasing of
quota sales more evenly over the year. Glutamate prices were also
significantly lower. Starch selling prices increased but there was little
or no progress in overall sweetener product pricing. Amylum's Central
European joint ventures saw increased volumes and profits over the
comparable period. Energy costs increased substantially. We expect higher
energy and transport costs to affect Amylum's profitability adversely in
the second half. An in-depth cost reduction program has been initiated at
Amylum, running parallel to the integration exercise referred to above. In
European Sugar, our refineries in London and Lisbon performed well. The
weakness of the euro impacted profits in the UK. A range of organic sugars
was launched in the UK. The review of the European Union beet sugar regime
is expected to be fully completed by March 2001. Our beet operations in
Central Europe continued to make satisfactory profits, with good volume
increases, particularly in Hungary. Domestic prices in Central Europe
benefited from lower stocks.
Rest of the World
Underlying profits from continuing businesses in this segment were
little changed. The sale of Bundaberg, which was the largest unit in this
segment, was completed on 14 July.
Animal Feed and Bulk Storage
Trading losses on businesses sold during the period totaled (pound)5
million. The profit from continuing businesses, chiefly molasses and
storage, was (pound)7 million. The weaker euro affected pricing and
profitability in Europe.
The Board
Richard Delbridge, formerly Chief Financial Officer of National
Westminster Bank Plc, was appointed to the Board on September 1, 2000. His
international experience will further strengthen the Board.
Outlook
Overall, we are making good progress in the delivery of the strategy as
set out in the last Annual Report, and we are pursuing strategic solutions
for both our US sugar businesses. This remains a high priority. Trading
conditions have not improved since the Annual General Meeting and in US
sugar there has been a further deterioration in recent weeks. If current
conditions persist, it will be difficult in the second half of this
financial year to improve on the results for the first half. Our response
to these circumstances is to intensify our focus on cost reduction and
cash management.
Sir David Lees Larry Pillard
Chairman Chief Executive
November 8, 2000 November 8, 2000
An interim statement incorporating the Group profit and loss account
for the 27 weeks ended September 30, 2000 will be posted to shareholders.
Copies of this Announcement are available from:
John R Hunter, Company Secretary, Tate & Lyle PLC, Sugar Quay,
Lower Thames Street, London EC3R 6DQ
The Tate & Lyle Group, with headquarters in the UK, operates in
over 50 countries with revenues of over (pound)4 billion. It produces and
processes sugar from cane and beet, and processes cereals (predominantly
maize and wheat) into sweeteners and starches and other products. US
operations include A E Staley Manufacturing and Tate & Lyle Citric
Acid, Decatur, IL; PM Ag Products, Chicago, IL; Western Sugar, Denver, CO;
and Domino Sugar, New York. Tate & Lyle ordinary shares trade on the
London Stock Exchange and may be accessed on Bloomberg under the symbol
Tate LN, on the Reuter Equities 2000 Service under TATE.L and on Quotron
under TATEU.EU. In the US its ADRs trade on the NASD OTC Bulletin Board
under TATYY (each ADR is equal to four ordinary shares).
TATE & LYLE
GROUP PROFIT AND LOSS ACCOUNT
Results for the 27 weeks ended September 30, 2000
27 weeks 27 weeks
ended ended
Sept 30 Sept 30
2000 2000
$million(b) (pound) million
Total sales
- ongoing activities 3,023 2,015
discontinued activities 160 107
Total sales,
including discontinued
activities 3,183 2,122
Less share of sales
of joint ventures
and associates (262) (175)
Group sales 2,921 1,947
Group operating profit
before goodwill amortization 137 91
Goodwill amortization (2) (1)
Group operating profit 135 90 Share of profits of
joint ventures and associates 24 16
Total operating profit:
group and share
of joint ventures and
associates 159 106
Ongoing activities 167 111 Discontinued activities (8) (5)
Exceptional write down
on planned sale of business (112) (75)
Exceptional profit
on sale of businesses 9 6
Exceptional profit
on sale of fixed assets -- --
Profit before interest 56 37 Net interest payable (53) (35) Share of joint ventures'
and associates' interest (6) (4)
(Loss)/profit before taxation (3) (2) UK taxation -- -- Overseas taxation (33) (22)
(Loss)/profit after taxation (36) (24) Minority interests (9) (6)
(Loss)/profit for the period (45) (30) Dividends paid and proposed (42) (28)
Retained (loss)/earnings (87) (58)
(Loss)/earnings per share
- basic (9.8)(cent) (6.5)p
- diluted (9.8)(cent) (6.5)p
Dividends per ordinary share 8.3(cent) 5.5p
Before goodwill amortization
and exceptional items
Profit before taxation (million) 102 68 Diluted earnings per share 14.0(cent) 9.3p
26 weeks 52 weeks
ended ended
Sept 25 March 25
1999 2000
(pound) million (pound) million Total sales
- ongoing activities 1,899 3,636
- discontinued activities 233 454
Total sales,
including discontinued
activities 2,132 4,090
Less share of sales
of joint ventures
and associates (196) (352)
Group sales 1,936 3,738
Group operating profit
before goodwill amortization 140 237
Goodwill amortization -- --
Group operating profit 140 237 Share of profits of
joint ventures and associates 26 47
Total operating profit:
group and share
of joint ventures and
associates 166 284
Ongoing activities 169 285 Discontinued activities (3) (1)
Exceptional write down
on planned sale of business -- (50)
Exceptional profit
on sale of businesses -- 25
Exceptional profit
on sale of fixed assets -- 7
Profit before interest 166 266 Net interest payable (34) (65) Share of joint ventures'
and associates' interest (5) (10)
(Loss)/profit before taxation 127 191 UK taxation (6) (8) Overseas taxation (28) (55)
(Loss)/profit after taxation 93 128 Minority interests (13) (17)
(Loss)/profit for the period 80 111 Dividends paid and proposed (56) (99)
Retained (loss)/earnings 24 12
(Loss)/earnings per share
- basic 17.5p 24.3p
- diluted 17.4p 24.2p
Dividends per ordinary share 12.3p 21.4p
Before goodwill amortization
and exceptional items
Profit before taxation (million) 127 209 Diluted earnings per share 17.4p 29.9p
(b) US dollar equivalents are provided at the average exchange rate
for the period of $1.5=(pound)
TATE & LYLE
GROUP BALANCE SHEET
Summarized balance sheet as at September 30, 2000
Unaudited Unaudited
Sept 30 Sept 30
2000 2000
$ million(c) (pound) million
Fixed assets Intangible assets 228 152 Tangible assets 2,295 1,530 Investments 264 176
2,787 1,858
Current assets Stock 563 375 Debtors 786 524 Investments and
cash at bank and in hand 264 176
1,613 1,075
Creditors
- due within one year
Borrowings (237) (158) Other (627) (418) Net current assets 749 499
Total assets less
current liabilities 3,536 2,357
Creditors
- due after one year
Borrowings (1,283) (856) Other (11) (7) Provisions for
liabilities and charges (374) (249)
Total net assets 1,868 1,245
Capital and reserves Called up share capital 185 123 Share premium
account and other reserves 744 496
Profit and loss account 870 580
Shareholders' funds 1,799 1,199 Minority interests 69 46
1,868 1,245
Unaudited Audited
Sept 25 March 25
1999 2000
(pound) million (pound) million
Fixed assets Intangible assets -- 1 Tangible assets 1,692 1,678 Investments 190 175
1,882 1,854
Current assets Stock 374 479 Debtors 591 535 Investments and
cash at bank and in hand 201 261
1,166 1,275
Creditors
- due within one year
Borrowings (302) (434) Other (537) (530) Net current assets 327 311
Total assets less
current liabilities 2,209 2,165
Creditors
- due after one year
Borrowings (766) (632) Other (11) (12) Provisions for
liabilities and charges (237) (257)
Total net assets 1,195 1,264
Capital and reserves Called up share capital 117 117 Share premium
account and other reserves 443 445
Profit and loss account 478 539
Shareholders' funds 1,038 1,101 Minority interests 163
1,195 1,264
(c) US dollar equivalents are provided at the average exchange rate
for the period of $1.5=(pound)
TATE & LYLE
STATEMENT OF CASH FLOWS
For the 27 weeks ended September 30, 2000
27 weeks 26 weeks 52 weeks
ended ended ended
Sept 30 Sept 25 March 25
2000 1999 2000
(pound) (pound) (pound) million million million
--------------------------------------------------------------------------------
Net cash inflow from operating
activities 195 306 450
Dividends from joint ventures
and associates 7 1 12
Returns on investment and
servicing of finance Net interest paid (44) (32) (62) Dividends paid to minority
interests in subsidiary
undertakings (1) (3) (6)
------- --------- (45) (35) (68)
------- ---------
Taxation paid (34) (26) (44)
Capital expenditure and
financial investment Purchase of tangible fixed
assets (57) (50) (126) Sale of tangible fixed assets - 1 23 Purchase of fixed asset
investments - (7) (11)(d) Sale of fixed asset investments - 2 2
------- --------- (57) (54) (112)
------- --------- Acquisitions and disposals Purchase of businesses and
subsidiaries (net of cash
acquired) (217) (2) (2) Sale of businesses 153(e) 2 9 Refinancing of existing joint
ventures - (8) (8)(d) Sale of interests in joint
ventures and associates 15 - 68 Capital repayments by joint
ventures - 1 1
------- --------- (49) (7) 68
------- --------- Equity dividends paid (42) (79) (135) Net cash (outflow)/inflow before
financing and management of
liquid resources (25) 106 171
======== ======= =========
(d) In addition to(pound)8 million direct equity refinancing of joint
ventures,(pound)4 million increase in loans to joint ventures
represented refinancing in the 52 weeks to March 2000. (e) In addition,(pound)10 million
of borrowings were transferred out
of the Group as part of the disposal of subsidiaries.
TATE & LYLE
NOTES TO STATEMENT OF CASH FLOWS
For the 27 weeks ended September 30, 2000
Net Cash Inflow From Operating Activities
27 weeks 26 weeks 52 weeks
ended ended ended
Sept 30, Sept 25, March 25,
2000 1999 2000
(pound)million (pound)million (pound)million ----------------------------------
Operating profit 90 140 237 Depreciation of tangible
fixed assets 66 68 136 Amortization of goodwill 1 - - Change in working
capital 38 98 79 Provisions against fixed
asset investments - - (2)
------------- -------------- 195 306 450
============== ============= ==============
Cash Flow/Net Debt Reconciliation ----------------------------------------------
Net cash (outflow)/inflow
before financing and
management of
liquid resources (25) 106 171
Raised on issue of share
capital - 1 2
Changes in debt not involving cash flow: -- Reduction/(increase)
on disposal of
subsidiaries 10 - (1) -- Exchange movements (18) 12 10 -- Amortization of bond
discount - - (1)
------------- -------------- (Increase)/reduction in
net borrowings (33) 119 181 Net borrowings at the
start of the period (805) (986) (986)
------------- -------------- Net borrowings at the
end of the period (838) (867) (805)
============== ============= ==============
Net Debt/Balance Sheet Reconciliation ----------------------------------------
Investments and cash at
bank and in hand 176 201 261 Borrowings due within
one year (158) (302) (434) Borrowings due after
one year (856) (766) (632)
------------- -------------- Net borrowings at the
end of the period (838) (867) (805)
============== ======== ===============
TATE & LYLE
STATEMENT OF RECOGNISED GAINS AND LOSSES
For the 27 weeks ended September 30, 2000
STATEMENT OF RECOGNISED GAINS AND LOSSES
27 weeks 26 weeks 52 weeks
ended ended ended
Sept 30, Sept 25, March 25,
2000 1999 2000
(pound)million (pound)million (pound)million --------------------------------
(Loss)/profit for the
period (30) 80 111 Unrealized deficit on
revaluation of
tangible fixed
assets (7) - - Currency difference on
foreign currency net
investments 51 (10) (1)
------------- -------------- Total recognized gains
for period 14 70 110
============= ============= ============== Average exchange rates
US dollar (pound)1=$ 1.50 1.60 1.60 Euro (pound)1=(euro) 1.64 1.52 1.56
Period end exchange rates
US dollar (pound)1=$ 1.48 1.64 1.59 Euro (pound)1=(euro) 1.68 1.57 1.64
BASIS OF PREPARATION
The foregoing accounts are prepared on the basis of the accounting
policies set out in the 2000 Annual Report for the period ended March 25,
2000 The balance sheet as at March 25, 2000 has been abridged from the
full Group accounts, which received an auditors' report which was
unqualified and did not contain any statement concerning accounting
records or failure to obtain necessary information and explanations. The
full Group accounts have been delivered to the Registrar of Companies.
The results for the 27 weeks ended September 30, 2000, the 26 weeks
ended September 25, 1999 and the 52 weeks ended March 25, 2000 are neither
audited nor reviewed. The balance sheet at 30 September 2000 is neither
audited nor reviewed. The balance sheet at September 25, 1999 was reviewed
by the auditors, whose report did not identify any material modification.
TATE & LYLE
ANALYSIS OF SALES
27 weeks 26 weeks 52 weeks
ended ended ended
Sept 30 Sept 25 March 25
2000 1999 2000
(pound)million (pound)million (pound)million
----------------------------------------------------------------------
Sweeteners and starches
-- Americas 990 882 1,702
-- Europe 609 622 1,167
-- Rest of the world 257 271 520
------------- ------------- --------------
1,856 1,775 3,389
Animal feed and
bulk storage 215 309 595
Other businesses and
activities 51 48 106
------------- ------------- --------------
2,122 2,132 4,090
============= ============= ==============
Included in the analysis of sales are the following amounts
relating to associates and joint ventures:
Sweeteners and starches
-- Americas 88 91 159
-- Europe 64 58 104
-- Rest of the world 19 16 31
------------- ------------- --------------
171 165 294
Animal feed and
bulk storage 3 18 33
Other businesses and
activities 1 13 25
------------- ------------- --------------
175 196 352
============= ============= ==============
Included in the analysis of sales are the following amounts
relating to discontinued activities:
Sweeteners and starches
-- Americas - - -
-- Europe - - -
-- Rest of the world 26 71 127
------------- ------------- --------------
26 71 127
Animal feed and
bulk storage 76 151 305
Other businesses and
activities 5 11 22
------------- ------------- --------------
107 233 454
============= ============= ==============
TATE & LYLE
ANALYSIS OF PROFIT BEFORE INTEREST
27 weeks 26 weeks 52 weeks
ended ended ended
Sept 30, Sept 25, March 25,
2000 1999 2000
BEFORE EXCEPTIONAL ITEMS (pound)million (pound)million (pound)million
----------------------------------------------------------------------
Sweeteners and starches
-- Americas 57 92 156
-- Europe 48 67 112
-- Rest of the world 6 5 12
------------- ------------- --------------
111 164 280
Animal feed and
bulk storage 2 7 11
Other businesses and
activities (7) (5) (7)
------------- ------------- --------------
106 166 284
============= ============= ==============
AFTER EXCEPTIONAL ITEMS
----------------------------------------------------------------------
Sweeteners and starches
-- Americas (18) 92 170
-- Europe 48 65 121
-- Rest of the world 12 7 (1)
------------- ------------- --------------
42 164 290
Animal feed and
bulk storage (1) 7 (17)
Other businesses and
activities (4) (5) (7)
------------- ------------- --------------
37 166 266
============= ============= ==============
Included in the above tables are the following amounts relating to
discontinued activities:
Sweeteners and starches
-- Americas - - -
-- Europe - - -
-- Rest of the world (2) (3)(f) -(f)
------------- ------------- --------------
(2) (3)(f) -(f)
Animal feed and
bulk storage (5) (3) (7)
Other businesses and
activities 2 3 6
------------- ------------- --------------
(5) (3)(f) (1)(f)
============= ============= ==============
(f) Includes an exceptional profit of(pound)2 million.
TATE & LYLE
ANALYSIS OF NET MARGIN
27 weeks 26 weeks 52 weeks
ended ended ended
Sept 30, Sept 25, March 25,
2000 1999 2000
% % %
BEFORE EXCEPTIONAL ITEMS
----------------------------------------------------------------------
Sweeteners and starches
-- Americas 5.8 10.4 9.2
-- Europe 7.9 10.8 9.6
-- Rest of the world 2.3 1.8 2.3
-------- -------- --------
Sweeteners and starches average 6.0 9.2 8.3
-------- -------- --------
Animal feed and bulk storage 0.9 2.3 1.8
-------- -------- --------
Group 5.0 7.8 6.9
-------- -------- --------
AFTER EXCEPTIONAL ITEMS
----------------------------------------------------------------------
Sweeteners and starches
-- Americas (1.8) 10.4 10.0
-- Europe 7.9 10.5 10.4
-- Rest of the world 4.7 2.6 (0.2)
-------- -------- --------
Sweeteners and starches average 2.3 9.2 8.6
-------- -------- --------
Animal feed and bulk storage (0.5) 2.3 (2.9)
-------- -------- --------
Group 1.7 7.8 6.5
-------- -------- --------
TATE & LYLE
RATIO ANALYSIS
27 weeks 26 weeks 52 weeks
ended ended ended
Sept 30, Sept 25, March 25,
2000 1999 2000
----------------------------------------------------------------------
Gearing
= net borrowings
--------------
net assets
= 838
-----
1,245
= 0.67 or 67% 67% 73% 64%
Interest Cover -- Tate & Lyle PLC
and its subsidiaries
= Operating profit
--------------------
Net interest payable
(pound) (pound) (pound)
million million million
Operating profit before
exceptional items 90 140 237
Add/(less) exceptional items (69) - (18)
-------- -------- --------
Operating profit after
exceptional items 21 140 219
======== ======== ========
Interest cover -- 21/35 = 140/34 = 219/65 =
after exceptionals 0.6 times 4.1 times 3.4 times
Interest cover -- 90/35 = 140/34 = 237/65 =
before exceptionals 2.6 times 4.1 times 3.6 times
Dividend Cover
= EPS (basic)
-----------------------------
Total ordinary dividend/share
After exceptional (6.5)= 17.5 = 24.3 =
----- ---- ----
5.5 12.3 21.4
n/a 1.4 times 1.1 times
Before exceptional 9.3 = 17.5 = 30.0 =
--- ---- ----
5.5 12.3 21.4
1.7 times 1.4 times 1.4 times
Return on Net Operating Assets
= Profit before interest and tax
------------------------------
Average net operating assets(2)
After exceptional
= 37 x 12
--------------------- --
0.5 x (2,038 + 2,065) 6
= 3.6% 3.6% 15.6% 12.5%
Before exceptional
= 106 x 12
--------------------- --
0.5 x (2,038 + 2,065) 6
= 10.3% 10.3% 15.6% 13.4%
(pound) (pound) (pound)
million million million
(2)Total net assets 1,245 1,195 1,264
Add back: Net borrowings 838 867 805
Unallocated
(assets)/liabilities
- dividends and tax (45) 8 (4)
-------- -------- --------
Net operating assets 2,038 2,070 2,065
-------- -------- --------
TATE & LYLE
EARNINGS PER SHARE CALCULATION -
AFTER EXCEPTIONAL ITEMS
For the 27 weeks ended September 30, 2000
----------------------------------------------------------------------
Shares in issue
Opening 457,594,347
Closing 480,994,342
---------------------
a) Average (weighted by days in issue) 463,404,780
=====================
(pound) million
Earnings
Loss after tax (24)
Minority interests (6)
Preference dividend -
---------------------
b) Basic Earnings (30)
=====================
BASIC LOSS PER SHARE
is b/a or 6.5 pence/share.
Dilutive options and convertible
preference shares outstanding at
September 30, 2000:
SAYE scheme 1,566,596
Less notional shares repurchased (1,307,479)
Executive scheme -
Less notional shares repurchased -
---------------------
259,117
Add average shares in issue 463,404,780
---------------------
c) Adjusted number of shares 463,663,897
=====================
No adjustments are needed to basic earnings for the purpose of
calculating diluted earnings per share.
DILUTED LOSS PER SHARE is b/c or 6.5 pence/share.
TATE & LYLE
EARNINGS PER SHARE CALCULATION -
BEFORE EXCEPTIONAL ITEMS
For the 27 weeks ended September 30, 2000
----------------------------------------------------------------------
Shares in issue
Opening 457,594,347
Closing 480,994,342
---------------------
a) Average (weighted by days in issue) 463,404,780
=====================
(pound) million
Earnings before exceptional items
Exceptional costs 69
Tax on exceptional costs 4
Exceptional costs minority interest -
---------------------
Exceptional costs net of tax
and minorities 73
Basic Earnings after exceptional items (30)
---------------------
b) Basic Earnings before exceptional items 43
=====================
BASIC EARNINGS PER SHARE
is b/a or 9.3 pence/share.
Dilutive options and convertible
preference shares outstanding at
September 30, 2000:
SAYE scheme 1,566,596
Less notional shares repurchased (1,307,479)
Executive scheme -
Less notional shares repurchased -
---------------------
259,117
Add average shares in issue 463,404,780
---------------------
c) Adjusted number of shares 463,663,897
=====================
No adjustments are needed to basic earnings for the purpose of
calculating diluted earnings per share.
DILUTED EARNINGS PER SHARE BEFORE EXCEPTIONAL ITEMS is b/c or 9.3
pence/share.
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