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Wednesday 23 March 2005 |
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Woolworths Group plc:
Preliminary Results Announcement 2005 |
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Overview of Financial Performance |
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Profit before taxation, exceptional items and goodwill amortisation increased by 4.7 per cent to £73.1
million (2004: £69.8 million).
After charging an exceptional item of £60.9 million, profit before tax for the year was £9.3 million (2004:
£66.7 million). |
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In the 52 weeks ended 29 January 2005, total Group sales increased by 2.9 per cent to £2.9 billion.
Adjusting for the outsourcing of the café operation and the creation of the 2entertain joint venture,
underlying sales increased by 4.5 per cent. |
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The Group has continued to generate cash and at the year-end net funds had risen to £108.7 million
(2004: £52.9 million). |
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Due to the indicative proposal from Apax, no final dividend has been declared. In the event that no offer
is forthcoming the Board expect to recommend a final dividend for 2004/5. |
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2005
£m |
2004
£m |
%
change |
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| Group sales |
2,855.2 |
2774.7* |
2.9 |
| Profit before tax, exceptionals and
goodwill amortisation |
73.1 |
69.8 |
4.7 |
| Exceptional Item |
(60.9) |
– |
– |
| Profit before tax |
9.3 |
66.7 |
– |
| Adjusted basic earnings per share (before
exceptionals and goodwill amortisation) |
3.6p |
3.5p |
2.9 |
| Earnings per share (basic) |
0.1p |
3.3p |
– |
| Net funds |
108.7 |
52.9 |
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Discussions with Apax |
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On Friday 18 March 2005 the Board announced that it had received a proposal from Apax Partners
Worldwide LLP (“Apax”) for funds advised by Apax to acquire all of the issued and to be issued share
capital of Woolworths for 58.2p per share in cash, including rights to any future dividends. This proposal
is subject, inter alia, to due diligence and final financing arrangements. |
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The Royal Bank of Scotland have expressed their confidence in providing a debt package to support
Apax’s offer. Accordingly, the Board of Directors has agreed that Apax can undertake due diligence with
the intention that any formal offer, if made, would be made no later than 6 May, as set out in the
announcement made on 18 March by the Panel on Takeovers and Mergers. |
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There can be no certainty that a firm offer will be made. A further announcement will be made in due
course. |
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Exercise of Share Options |
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Immediately following the release of these results, a number of senior executives in the Group will be
entitled to exercise options granted at the time of demerger under the Woolworths Group Executive
Share Options Scheme. The Company has made arrangements for those individuals who wish to deal
to do so during the course of today only. No Group Director intends to exercise options under these
arrangements. |
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