Last checked at 27 Jun 2008 07:00
Consolidated Income Statement
| Year ended 30 April 2008 Unaudited | Year ended 30 April 2007 Audited | |||
| Notes |
£'000 | £'000 | ||
| Continuing operations | ||||
| Revenue | 3(a) | 991,465 | 918,410 | |
| Cost of sales | (687,071) | (649,549) | ||
| Gross profit | 304,394 | 268,861 | ||
| Net operating expenses | (98,376) | (91,789) | ||
| Operating profit | 3(b) | 206,018 | 177,072 | |
| Finance income | 4 | 6,480 | 10,121 | |
| Finance costs | 4 | (15,774) | (5,941) | |
| Share of post tax results of joint ventures using the equity method | 3(c) | (2,416) | 6,798 | |
| Profit on ordinary activities before taxation | 194,308 | 188,050 | ||
| Taxation | 5 | (56,481) | (52,505) | |
| Profit for the financial year attributable to equity shareholders | 137,827 | 135,545 | ||
| Earnings per Ordinary Share | ||||
| - Basic | 6 | 114.2p | 112.6p | |
| - Diluted | 6 | 114.1p | 112.3p | |
|
| ||||
Consolidated Statement of Recognised Income and Expense
| Year ended 30 April 2008 Unaudited | Year ended 30 April 2007 Audited | ||
| £'000 |
£'000 | ||
|
|
|
| |
| Profit for the financial year | 137,827 | 135,545 | |
| Actuarial (loss) / gain recognised in the pension scheme | (644) | 961 | |
| Deferred tax on actuarial loss / (gain) recognised in the pension scheme | 180 | (288) | |
| Deferred tax in respect of employee share schemes | (7,830) | 23,850 | |
| Total recognised income for the financial year | 129,533 | 160,068 | |
Consolidated Balance Sheet
| At 30 April 2008 Unaudited | At 30 April 2007 Audited (Restated) | ||
| Notes | £'000 |
£'000 | |
| Assets |
|
| |
| Non-current assets |
|
| |
| Intangible assets | 17,869 | 19,686 | |
| Property, plant and equipment | 4,667 | 2,368 | |
| Investments accounted for using equity method | 2,447 | 1,729 | |
| Deferred tax assets | 39,074 | 34,594 | |
|
| 64,057 | 58,377 | |
| Current assets | |||
| Inventories | 1,231,852 | 1,129,374 | |
| Trade and other receivables | 20,800 | 27,601 | |
| Cash and cash equivalents | - | 140,330 | |
|
| 1,252,652 | 1,297,305 | |
| Liabilities | |||
| Current liabilities | |||
| Borrowings | (4,549) | (59,368) | |
| Trade and other payables | (526,114) | (413,240) | |
| Current tax liabilities | (56,437) | (38,680) | |
|
| (587,100) | (511,288) | |
| Net current assets | 665,552 | 786,017 | |
| Total assets less current liabilities | 729,609 | 844,394 | |
| Non-current liabilities | |||
| Other non-current liabilities | (48,202) | (62,819) | |
|
| (48,202) | (62,819) | |
| Net assets | 681,407 | 781,575 | |
| Shareholders' equity | |||
| Share capital | 12,082 | 18,123 | |
| Share premium | 264 | 264 | |
| Capital redemption reserve | 18,173 | 12,132 | |
| Other reserve | (961,299) | (961,299) | |
| Revaluation reserve | 11,329 | 17,725 | |
| Retained profit | 1,600,858 | 1,694,630 | |
| Total equity | 7 | 681,407 | 781,575 |
Consolidated Cash Flow Statement
|
| Year ended 30 April 2008 Unaudited
| Year ended 30 April 2007 Audited (Restated) | |
| Notes | £'000 |
£'000 | |
| Cash flows from operating activities |
|
| |
| Cash generated from operations | 215,246 | 199,053 | |
| Dividends from joint ventures | 323 | 6,016 | |
| Interest received | 6,376 | 10,121 | |
| Interest paid | (7,908) | (2,716) | |
| Tax paid | (50,854) | (51,540) | |
| Net cash flow from operating activities | 8 | 163,183 | 160,934 |
| Cash flows from investing activities | |||
| Purchase of property, plant and equipment | (3,598) | (1,183) | |
| Sale of property, plant and equipment | 324 | 345 | |
| Purchase of shares in joint ventures | (70) | (5) | |
| Sale of shares in joint ventures | - | 10 | |
| Movements in loans with joint ventures | (3,709) | 6,528 | |
| Acquisition of subsidiary undertaking | - | (97,457) | |
| Cash balance in subsidiary acquired | - | 34,658 | |
| Expenses relating to acquisition of subsidiary | - | (1,812) | |
| Net cash flow from investing activities | (7,053) | (58,916) | |
| Cash flows from financing activities | |||
| Redemption of shares | (241,641) | (241,641) | |
| Increase in short-term borrowings | - | 59,283 | |
| Repayment of bank loan | (59,283) | - | |
| Net cash flow from financing activities | (300,924) | (182,358) | |
| Net decrease in cash and cash equivalents | (144,794) | (80,340) | |
| Cash and cash equivalents at start of the financial year | 140,330 | 220,670 | |
| Cash and cash equivalents, including bank overdraft, at end of the financial year | (4,464) | 140,330 | |
| Cash and cash equivalents at end of the financial year | - | 140,330 | |
| Bank overdraft at end of the financial year | (4,464) | - | |
1 Basis of preparation
The unaudited financial information for the year ended 30 April 2008 and the comparative audited information for the year ended 30 April 2007 does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. This information was approved by the Board on 27 June 2008, and has been extracted from the Group's statutory accounts which have not yet been signed, nor have the auditors yet reported on them.
This information, including the comparative information for the year ended 30 April 2007, has been prepared in accordance with EU endorsed International Financial Reporting Standards ("IFRSs"), International Financial Reporting Interpretations Committee ("IFRIC") interpretations and in accordance with the listing rules of the Financial Services Authority and consistently in accordance with the accounting policies set out in the 2007 Annual Report, except for the restatement explained in note 2.
The statutory accounts for the year ended 30 April 2007 have been delivered to the Registrar of Companies. The report of the auditors on these financial statements was unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985.
2 Restatement
In order to enhance clarity for the readers of the financial statements a restatement in a disclosure item has been made which has no impact on gross profit, profit from operations or net assets. New property deposits and on account contract receipts previously classified as a reduction in inventories are now disclosed within current trade and other payables following the principles applicable to deferred income. Deposits received and on account contract receipts at 30 April 2008 amounted to £170,758,000 (2007: £71,380,000).
3 Analysis by Activity
|
| Year ended 30 April 2008 Unaudited £'000 | Year ended 30 April 2007 Audited £'000 | |
| (a) | Revenue |
|
|
| Residential housebuilding | 960,036 | 867,944 | |
| Commercial property and other activities | 31,429 | 50,466 | |
| 991,465 | 918,410 | ||
| (b) | Operating profit | ||
| Residential housebuilding | 197,553 | 170,097 | |
| Commercial property and other activities | 8,465 | 6,975 | |
| 206,018 | 177,072 | ||
| (c) | Share of post tax results of joint ventures | ||
| Residential housebuilding | (2,416) | 6,751 | |
| Commercial property and other activities | - | 47 | |
| (2,416) | 6,798 |
All revenue and profit disclosed in the table above relate to continuing activities of the Group and are derived from activities performed in the United Kingdom. Included in Group residential housebuilding revenue and operating profit are £13,106,000 and £806,000 in respect of land sales (2007: £43,997,000 and £9,245,000).
4 Net finance (costs) / income
|
| Year ended 30 April 2008 Unaudited £'000 | Year ended 30 April 2007 Audited £'000 |
| Finance income | 6,480 | 10,121 |
| Finance costs | ||
| Interest payable on bank loans and overdrafts | (6,035) | (3,000) |
| Facility refinancing fees | (1,792) | - |
| Other finance costs | (7,947) | (2,941) |
| (15,774) | (5,941) | |
| Net finance (costs) / income | (9,294) | 4,180 |
5 Taxation
|
| Year ended 30 April 2008 Unaudited £'000 | Year ended 30 April 2007 Audited £'000 |
|
|
| |
| Current tax | ||
| UK corporation tax payable | (72,565) | (63,106) |
| Adjustments in respect of previous periods | 3,954 | 4,610 |
| (68,611) | (58,496) | |
| Deferred tax | 13,317 | 5,991 |
| Adjustment in respect of change of tax rate from 30% to 28% | (1,187) | - |
| (56,481) | (52,505) |
6 Earnings per Ordinary Share
Earnings per Ordinary Share is calculated as the profit for the financial year of £137,827,000 (2007: £135,545,000) divided by the weighted average number of Ordinary Shares in issue during the year of 120,669,135 (2007: 120,335,736). For diluted earnings per Ordinary Share, the weighted average number of Ordinary Shares in issue is adjusted to assume the conversion of all dilutive potential Ordinary Shares. The dilutive potential Ordinary Shares relate to shares granted under employee share schemes where the exercise price is less than the average market price of the Ordinary Shares during the year. The effect of the dilutive potential Ordinary Shares is 71,072 shares (2007: 388,267), which gives a diluted weighted average number of Ordinary Shares of 120,740,207 (2007: 120,724,003).
7 Statement of Changes in Shareholders' Equity
| Year ended 30 April 2008 Unaudited | Year ended 30 April 2007 Audited | |
| £'000 |
£'000 | |
|
|
|
|
| Profit for the financial year | 137,827 | 135,545 |
| Actuarial (loss) / gain recognised in the pension scheme | (644) | 961 |
| Deferred tax on actuarial loss / (gain) recognised in the pension scheme | 180 | (288) |
| Revaluation of 50% of net assets of subsidiaries owned prior to acquisition of remaining 50% of net assets in the year | - | 20,297 |
| Redemption of shares | (241,641) | (241,641) |
| Credit in respect of employee share schemes | 11,940 | 5,661 |
| Deferred tax in respect of employee share schemes | (7,830) | 23,850 |
| Net movement on shareholders' equity | (100,168) | (55,615) |
| Opening shareholders' equity | 781,575 | 837,190 |
| Closing shareholders' equity | 681,407 | 781,575 |
8 Notes to the Consolidated Cash Flow Statement
|
| Year ended 30 April 2008 Unaudited | Year ended 30 April 2007 Audited (Restated) |
| £'000 |
£'000 | |
| Net cash flows from operating activities |
|
|
| Continuing operations | ||
| Profit for the financial year | 137,827 | 135,545 |
| Adjustments for: | ||
| - Taxation | 56,481 | 52,505 |
| - Depreciation | 1,016 | 1,278 |
| - Amortisation of intangible assets | 1,817 | 746 |
| - Profit on sale of property, plant and equipment | (41) | (34) |
| - Finance income | (6,480) | (10,121) |
| - Finance costs | 15,774 | 5,941 |
| - Share of results of joint ventures after tax | 2,416 | (6,798) |
| - Non-cash charge in respect of share awards | 11,940 | 5,661 |
| Changes in working capital: | ||
| - (Increase) / decrease in inventories | (102,478) | 8,747 |
| - Decrease in receivables | 6,801 | 5,354 |
| - Increase in payables | 90,713 | 9,854 |
| - Decrease in employee benefit obligations | (540) | (9,625) |
| Cash generated from operating activities | 215,246 | 199,053 |
| Dividends from joint ventures | 323 | 6,016 |
| Interest received | 6,376 | 10,121 |
| Interest paid | (7,908) | (2,716) |
| Taxation | (50,854) | (51,540) |
| Net cash flow from operating activities | 163,183 | 160,934 |
8 Notes to the Consolidated Cash Flow Statement continued
|
| Year ended 30 April 2008 Unaudited £'000 | Year ended 30 April 2007 Audited £'000 |
| Reconciliation of net cash flow to net (debt) / cash |
| |
| Net decrease in cash and cash equivalents, including bank overdraft | (144,794) | (80,340) |
| Cash outflow / (inflow) from decrease / (increase) in debt | 59,283 | (59,283) |
| Movement in net debt in the financial year | (85,511) | (139,623) |
| Opening net cash | 80,962 | 220,585 |
| Closing net (debt) / cash | (4,549) | 80,962 |
| At 30 April 2008 Unaudited £'000 | At 30 April 2007 Audited £'000 | |
| Net (debt) / cash | ||
| Cash and cash equivalents | - | 140,330 |
| Borrowings | (4,549) | (59,368) |
| Net (debt) / cash | (4,549) | 80,962 |