2002: Strength in Europe and Asia, Weak US Markets;
2003 Revenue Outlook Uncertain, Margins Set To Improve
- EPS pre-exceptionals and goodwill 16.5p (17.9p)
- Continuing turnover 793m pounds (931m pounds)
- Continuing operating profit* 64.9m pounds (81.7m pounds)
- Cash balances boosted to 94m pounds (49m pounds)
- Further 15m pounds cost savings - total now 180m pounds
- Dividend confirmed at 7p for full year
- Share buyback programme to be implemented
- Before amortisation of goodwill and exceptional items
LONDON, Feb. 28 /PRNewswire-FirstCall/ -- Clive Hollick, Chief Executive
of United Business Media (Nasdaq: UNEWY), said:
"In 2002 our European and Asian businesses -- CMPi, CMP Asia, UAP and NOP
Research -- delivered strong performances with profit of 44.9m pounds, ahead
by approximately one third. These gains contrasted with the sharp fall in
profits from businesses based in the US, from 47.7m pounds to 20.0m pounds.
Continuing group revenue and operating profit fell by 14.7 per cent and
20.6 per cent respectively.
"Action to improve operating efficiencies throughout the group has reduced
fixed costs by 180m pounds or over 25 per cent against the 2000 base. These
improvements and our success in building market share and protecting yields
have left group profit attractively geared to an improvement in revenues.
"We have steadily increased our investment in new products with over
40 launches in 2002 at a cost of 20m pounds which, in their first year,
generated revenue of 17m pounds.
"In the second half of 2002 our US high tech business achieved some
stability for the first time in two years with revenue at 55 per cent of the
peak 2000 levels. Substantial cost reductions enabled CMP Media to meet its
target of an operating profit in the fourth quarter. The news distribution
business was hit by the de-listing of many US companies -- there were 16 per
cent fewer Nasdaq companies at the year end -- and by the weak state of the
financial markets. NOP World's UK, syndicated US media and automotive
businesses, all performed well in 2002. In the second half, market research
in the healthcare and ad hoc sectors suffered a marked deterioration.
"CMP Asia delivered revenue growth and improved profit and launched nine
new exhibitions. CMP Information's revenue was down, reflecting closures and
tough markets, but profit nearly doubled thanks to a wide ranging cost
reduction programme. UAP improved margins and increased profit by more than
one third on steady turnover.
"Stringent financial management, with tight control of working capital and
capital expenditure, has improved our already strong balance sheet. Cash
conversion of around 140 per cent produced a net cash position at the year end
of 94m pounds. Our robust balance sheet ensures that we can continue to
invest in new products and achieve global reach, both organically and, where
appropriate, by acquisition.
"five (formerly Channel 5), the principal holding in our investment
portfolio, made excellent progress with strong gains in advertising and
audience share.
CURRENT TRADING AND OUTLOOK
"Trading conditions continue to be tough in 2003. In the first two months
of 2003 professional publishing revenues are in line with recent trends. PR
Newswire's revenue continues to be adversely affected by the uncertain state
of financial markets. In the UK, NOP has made a good start and in the US our
continuous research businesses are well set to make further progress.
Revenues in the healthcare and ad hoc businesses remain under pressure.
"The outlook for revenue has however been clouded by growing corporate
uncertainty in the face of geopolitical concerns. Against this difficult
background we will strive to manage our cost base in line with actual
revenues.
"In 2003 we are targeting -- in the absence of a sharp decline in
revenues -- an improvement in the group margin from 8.2 per cent in 2002 to
around 10 per cent.
"Professional publishing margins should benefit from the turnaround to
profit at CMP Media in the US and the benefits of the extensive restructuring
at CMPi and UAP in the UK. PR Newswire continues to take action to reduce
costs in the face of the current weakness in revenues. The strength of our
continuous market research business in the US, a resilient UK business and the
actions being taken to reduce costs in the US ad hoc business should improve
market research margins.
"We will continue to build, and at the right time realise, the value of
our investment portfolio. five is on course to make further gains in
advertising share and to break into profit in 2003.
"We are monitoring opportunities to strengthen our core businesses through
organic investment and attractively priced strategic acquisitions which meet
our demanding financial criteria.
"The company intends to purchase its shares in the market from time to
time under the existing authority granted by shareholders at the 2001 AGM."
SUMMARY PROFIT & LOSS STATEMENT
The group profit and loss statement set out below re-presents the Group's
full profit and loss account (which is included in the attached financial
information) in order to show more clearly the results from operations
excluding exceptional items.
Restated (1)
Year ended Year ended
31 December 31 December
2002 2001 Variance
m pounds m pounds %
Turnover - continuing 793.4 930.5 (14.7)
Turnover - discontinued -- 2.0 --
Group Turnover 793.4 932.5 (14.9)
Operating profit - continuing 64.9 81.7 (20.6)
Operating profit - discontinued -- (20.1) --
Operating profit* 64.9 61.6 5.4
Net interest income 10.1 35.8 (71.8)
Other finance expense (FRS 17) (2.1) (1.5) (40.0)
Profit before tax* 72.9 95.9 (24.0)
Amortisation of goodwill (135.9) (137.6) (1.2)
(63.0) (41.7) (51.1)
Exceptional items** (158.2) (495.5) 68.1
Loss before tax (221.2) (537.2) 58.8
Taxation (16.0) (25.0) 36.0
Loss on ordinary activities after tax (237.2) (562.2) 57.8
Equity minority interest (1.8) (2.0) 10.0
Loss for the period (239.0) (564.2) 57.6
Dividends - equity (23.6) (39.8) 40.7
- non-equity (0.6) (325.3) 99.8
Dividends (24.2) (365.1) 93.4
Retained loss for the period (263.2) (929.3) 71.7
EPS * (pence) 16.5 p 17.9 p
Basic EPS (pence) (71.6)p (146.3)p
Dividend per share 7.0 p 12.0 p
(1) 2001 has been restated to include the impact of adopting
FRS17 "Retirement Benefits"
* Before amortisation of goodwill and exceptional items
** Includes 114.2m pounds (2001: 370m pounds) of exceptional impairment
of goodwill.
CONTENTS
1. Summary of Results - including foreign exchange impact note
2. Divisional Review
3. Cost Reduction Programme
4. Margins
5. Dividend
6. Exceptional Items
7. Balance Sheets and Cash Conversion
8. Fixed Asset Investments
9. Tax
10. Pensions and FRS17 Restatement
1. SUMMARY OF RESULTS
Group Continuing Group Continuing
Turnover Operating Profit
(m pounds) (m pounds)
2002 2001 Change Underlying 2002 2001 Change Underlying
(%) #(%) (%) #(%)
CMP Media 252.4 370.4 (31.9) (28.7) (9.4) (7.8) (20.5) (16.4)
CMP Asia 51.1 49.0 4.3 5.2 13.7 13.4 2.2 6.5
CMP
Information 113.4 130.8 (13.3) (4.2) 12.7 6.9 84.1 187.5
UAP 58.1 57.4 1.2 1.9 12.7 9.4 35.1 35.4
PR Newswire 105.4 128.0 (17.7) (13.8) 17.3 35.8 (51.7) (44.4)
NOP World 213.0 194.9 9.3 (10.6) 17.9 24.0 (25.4) (21.0)
Total 793.4 930.5 (14.7) (16.1) 64.9 81.7 (20.6) (8.9)
# Underlying = adjusted for the effects of acquisitions, forex,
restructuring and biennials
Group revenues were down 14.7 per cent to 793.4m pounds, while operating
profits were down 20.6 per cent to 64.9m pounds. In 2002 the group's reported
margin -- after 8.5m pounds of redundancy related restructuring costs -- fell
to 8.2 per cent (8.8 per cent), with the second half margin of 7.2 per cent
showing growth on the 5.0 per cent in the second half of 2001.
The sterling/US dollar exchange rate has a translation impact upon
consolidation. A 1 cent movement in the US dollar is equivalent to a move in
profit of between 200k pounds and 300k pounds.
2. DIVISIONAL REVIEW
Professional Media
Turnover (m pounds) Profits (m pounds)
2002 2001 2002 2001
CMP Media 252.4 370.4 (9.4) (7.8)
CMP Asia 51.1 49.0 13.7 13.4
CMP Information 113.4 130.8 12.7 6.9
UAP 58.1 57.4 12.7 9.4
Total 475.0 607.6 29.7 21.9
Professional Media revenue was 475.0m pounds, a decrease of 21.8 per cent
over 2001. Operating profit at 29.7m pounds was up 35.6 per cent, reflecting
the impressive results from CMP Asia, CMP Information and UAP.
CMP Media's continuing US revenue of $359m was 44.3 per cent down on the
2000 base of $644.7m. Most of the 118m pounds revenue reduction in revenue in
this division from 2001 was mitigated by cost savings and as a result the
company moved into an operating profit in the fourth quarter.
In 2002, CMP Media's titles increased market share to 28.4 per cent of ad
page volumes compared with 24.9 per cent in 2001. CMP Media defended yields
stoutly holding the decline to 6.2 per cent year on year -- despite a 30.4 per
cent overall volume decline in the market.
CMP Media's Healthcare business - representing around 10 per cent of
revenues -- despite difficult market conditions achieved revenue growth of
3 per cent with a solid increase in demand in the second half of the year.
CMP Media's 7m pounds strong organic investment programme generated
incremental revenue of 7m pounds. New product launches included the magazine
'Optimize' -- a strategic title spun off from 'Information Week' in late 2001,
'NetSeminar Services' -- a web seminar product which enables customers to
communicate a marketing message using streaming video and audio broadcasts,
and a specialist training business to help technology businesses understand
and sell product through the channel.
Within the Healthcare division 'Med Reach' has been launched for
pharmaceutical companies organising promotional events.
CMP Europe, CMP Media's UK based technology business, rationalised its
electronics division during the last quarter of the year and has now been
transferred and integrated into CMP Information's business activities.
CMP Asia delivered another good performance, with reported turnover up
4.3 per cent to 51.1m pounds, and profit up 2.2 per cent to 13.7m pounds.
Margins were maintained at 27 per cent despite the investment in new
exhibition launches.
CMP Asia's excellent performance was achieved in the face of some
challenging market conditions in the US and generally poor conditions in the
cruise ship and leather markets. The jewellery and beauty groups performed
well with record show attendances. Generally CMP Asia benefited from
strengthened sales teams and more focused direct marketing and visitor
promotional campaigns.
KSS's health events and publications have strengthened the Asian portfolio
and promises an excellent base for growth in the key Japanese market. This
year CMP Asia launched nine new shows, three were in China. These new events
generated over 2m pounds in revenues and are scheduled to run again.
CMP Information (CMPi) benefited from its business-wide initiative to
improve profitability and operational efficiency. Profits increased by
84.1 per cent to 12.7m pounds, and margins more than doubled from 5.3 per cent
to 11.2 per cent.
This improvement in profitability was achieved despite a reduction in
general advertising and marketing spend in CMPi's markets. The music and
medical markets saw a marked turndown in advertising. Conversely, the
classified market for agriculture has rebounded strongly following the foot &
mouth crisis in 2001. Many of CMPi's events such as Interiors, pharma
ingredients and security boosted revenue.
Overall CMPi's revenue declined by 13.3 per cent to 113.4m pounds
reflecting continuing pressure on advertising and the omission of discontinued
operations and biennial events. Overall ad pages were down by 9 per cent
however exhibition meterage was up 1 per cent.
CMPi new product launches this year included; Intra, a title aimed at
interior designers and architects; CPhI Japan, targeting the pharmaceutical
ingredients market in Japan; Firex South, aimed at the UK fire prevention
market and IFSEC China, extending CMPi's successful security show to the
Chinese market.
United Advertising Publications (UAP) increased revenue by 1.2 per cent to
58.1m pounds, and profits by 35.1 per cent to 12.7m pounds. Margins rose to
21.9 per cent (2001: 16.4 per cent).
Every one of UAP's titles recorded an increase in profits for the year,
with Exchange & Mart, Daltons Weekly, Trader and Trade-it recording
significant profit gains, despite a general decline in the advertising market.
Increased circulation and market share was achieved by the two principal
titles, Exchange & Mart and Dalton's Weekly. The improvement in profit across
the range of titles was helped by the substantial cost savings made by the
business. These were achieved through outsourcing distribution operations,
improved credit control, lower online expenditure and reduced in-house
production costs.
Auto Exchange, the free pick-up motoring publications, moved into profit
for the year, after five years of investment.
Investment in new projects continued and included the completion of the
Daltonsbusiness.com website; and the development of Exchange & Mart content
for publication in Auto Exchange titles.
PR Newswire - News Distribution
Turnover (m pounds) Profits (m pounds)
2002 2001 2002 2001
PR Newswire 105.4 128.0 17.3 35.8
PR Newswire's reported revenues decreased 17.7 per cent to 105.4m pounds
and profit fell 51.7 per cent to 17.3m pounds. Operating margins in PR
Newswire fell from 28.0 per cent to 16.4 per cent after new product
investment.
Continuing weak markets in the US, a sharp reduction in the number of
listed companies and the low levels of M&A and IPO activity together with a
wave of corporate scandals, made companies particularly publicity-averse.
Customers traded down to PR Newswire's lower cost distribution options leading
to a 24 per cent decline in the level of messages outbound from the US.
"Discretionary" or non-regulatory products were badly affected by general
corporate cost cutting.
In PR Newswire's core US distribution business, message volume was 11 per
cent below 2001 and average revenue per message was up 4 per cent -- boosted
by the increased regulatory message length and volume following the enactment
of Sarbanes-Oxley.
Canada Newswire, although also suffering from a tough local economy,
proved to be resilient and PRN's share of revenue from this JV held firm at
$12m, with a $4.1m gross profit contribution.
Globally, including PR Newswire Europe, Canada Newswire and other PR
Newswire locations, PR Newswire's market share is up 2.2 per cent to 40.0 per
cent, with the fourth quarter alone being up 3.1 per cent. In the US market
share held firm at 52 per cent of earnings release volumes.
Revenue was boosted by the growth of new products such as 'MultiVu,' and
'Online MediAtlas,' although these were loss making as they are still in their
start up period.
PR Newswire Europe experienced similarly difficult market conditions. PR
Newswire's 'Disclose' product in the UK has since its launch in April 2002,
captured over 10 per cent of all announcements issued and signed up over
30 per cent of FTSE 100 companies.
7m pounds was invested in new products to generate 6m pounds of revenue.
The 'Online MediAtlas,' a comprehensive on time database of media contacts,
was launched in the UK and US. 'MultiVu', a producer and distributor of
American video news releases and other multimedia content, generated $5m in
revenues since May. PR Newswire also strengthened its presence in the
developing Chinese market with the creation of the joint venture with Xinhua,
the largest Government-backed news agency, to distribute corporate news.
NOP World - Market Research
Turnover (m pounds) Profits (m pounds)
2002 2001 2002 2001
NOP World 213.0 194.9 17.9 24.0
Revenue at NOP World increased by 9.3 per cent to 213.0m pounds.
Adjusting for the effects of acquisitions and foreign exchange, underlying
revenue decreased by 10.6 per cent. Profits decreased by 25.4 per cent to
17.9m pounds, or by 21.0 per cent on an underlying basis. The UK operations,
the US continuous media and the automotive businesses performed strongly and
contributed all of the profits in 2002. The healthcare and custom businesses
in the US experienced sharp downturns in revenue which has necessitated
extensive cost reduction programmes. Profit margins reduced from 12.3 per
cent to 8.4 per cent.
NOP World Health was particularly impacted by the major market research
trend to rapid growth in online data collection. At Market Measures / Cozint
(MMC) this grew from $7m in 2001 to over $30m in 2002. Much of this has been
cannibalistic, as traditional forms of data collection in the core custom
business have switched over to the internet. Internet research typically
sells at a 10-15 per cent discount to traditional methods. This has had the
effect of reducing the margin on custom research. Nonetheless these margins
should improve in the longer term as more volume is processed through
increasingly automated systems.
At the same time as this transformation was taking place, the
pharmaceutical industry experienced slower growth, fewer product approvals
from the FDA and an increasing number of patent expiries. This reduced market
research expenditures in areas which supported new product development and led
to clients taking lower cost options. The effect in 2002 of these changes has
been a decline in underlying revenues in the old MMI business, a reduction in
margin on custom research and considerable investment in next-generation
product.
MMC has responded to these challenges and opportunities by moving online
faster, increasing the number of syndicated studies and developing a new
generation of sales force effectiveness tracking methodologies. A major new
product in this arena is Scripdriver, a marketing science product which not
only quantifies sales and prescription data but analyses that data and adds
insight. Utilising methodologies already successful within AFI, Scripdriver
links promotions, brand health and patient dynamics to provide a complete
picture of the prescribing decision process. All results are reported online.
Scripdriver completed concept testing with clients at the end of 2002 and is
set for launch in early 2003.
Although NOP's UK revenues were in line with last years, profit increased
due to strong revenue performances from the Business and Healthcare divisions
and margin improvements in both Automotive and Mystery Shopping.
Mediamark Research (MRI) maintained its impressive growth record with
improved revenue and profits and success in renewing all of its multi year
contracts.
RoperASW's revenues were reduced by client budget pressures and
competitive pricing. Profitability was reduced by the investment in new
product introductions including the US online Panel and LifeMatrix.
Both Allison-Fisher (AFI) & NOP Auto US, achieved increased revenues and
profits. AFI's strong syndicated sales and new additional custom business
boosted topline growth. NOP Auto's US revenue was boosted by the opening of a
new office in California.
Investment in new product initiatives reduced profit by 2m pounds, eight
major new projects were launched, including the online consumer panel within
RoperASW, the launch of the joint MRI/ RoperASW 'LifeMatrix' -- a market
segmentation product which offers a combined brand, marketing, and media
strategy, the development of a major Roper NOP Consulting offer and also some
major product extensions.
3. COST REDUCTION PROGRAMME
Savings in continuing operating costs as against the 2000 fixed cost base
A further 15m pounds of savings have been announced today. By the end of
2002 a total of 165m pounds of annualised cost reductions had been realised
against the 2000 fixed cost base, with a further 15m pounds now secured
against 2003.
Total employee numbers have been reduced by approximately a further
250. This brings the total reductions since 2000 to 2,150.
Other savings have come from property consolidation, downsizing of
overhead structures, closure of loss-making products reduced marketing outlay
and a series of ongoing continuous improvement programmes throughout the
group.
4. OPERATING MARGINS
H1 2001 H2 2001 H1 2002 H2 2002
% % % %
Total Reported 12.2 5.0 9.1 7.2
During 2002 margins were reduced by the 15 per cent decline in group
turnover and by 8.5m pounds of restructuring costs.
5. DIVIDEND
The Board is recommending a final dividend of 4 pence per share for 2002,
to give a total dividend for the year of 7 pence. This is in line with the
Board's dividend policy announced in December 2001.
The final dividend on the ordinary shares will be paid on 29 May to
shareholders on the register on 14 March.
The dividend on the B shares will be 8.77p per share. This dividend will
be payable on 24 April to shareholders on the register on 14 March.
6. EXCEPTIONAL ITEMS
There is a charge for goodwill impairment of 114.2m pounds. The charge
has been made following a review of the goodwill across the business in light
of difficult trading conditions. The impairment principally relates to three
businesses. Within NOP World, the Roper Starch business acquired in 2001 has
experienced a weakening market for its custom business. PR Newswire's UK and
European news distribution has also experienced reduced demand, and incurred
losses in 2002. The CMP Media business has been further impaired to reflect
the continued difficult trading environment in 2002.
Exceptionals include a #30m provision for surplus property following
restructuring, and payments of #14m relating to prior year disposals. The
total of 158.2m pounds for exceptionals in 2002 compares with 495.5m pounds in
2001.
7. BALANCE SHEET AND CASH CONVERSION
UBM continued to strengthen its balance sheet during the period. Net cash
balances at the end of the year were 93.5m pounds. Operating cash conversion
was equivalent to around 140 per cent of operating profits. All divisions
delivered a conversion rate of over 100 per cent.
Group capital expenditure was held to 10.9m pounds during the period
(compared with 31.7m pounds in 2001), well below the level of depreciation at
23.2m pounds. Cash outflows for the year included 8.2m pounds of additional
funding for five, less than plan due to its much improved financial
performance. Cash was boosted by net tax receipts of 15.3m pounds in respect
of prior years.
8. FIXED ASSET INVESTMENTS
UBM holds investments in five, ITN, SIS, SDN, Paperloop and the Press
Association. five revenue grew 23.5 per cent and its audience share grew from
5.9 per cent to 6.5 per cent over the year, while five's share of advertising
revenue was increased from 6.4 per cent to 7.5 per cent.
No fixed asset investment disposals took place in 2002. Since the year
end the group sold its investment in Sporting Index for 9.0m pounds.
Income from investments of 10.4m pounds includes dividends received from
the Press Association, SIS, and Paperloop.
9. TAX
The effective tax rate in 2002 was 21.9 per cent against 25.8 per cent in
2001. The decrease is due to a lower proportion of US based profits, which
are taxed at a higher rate.
10. PENSIONS AND FRS17 RESTATEMENT
In 2002 UBM adopted FRS17. The pension deficit is 90.9m pounds (compared
with 60.0m pounds at the time of the 2002 interims and 41.0m pounds at the
2001 year end). The charge against profit for 2002 was 4.7m pounds with
financing costs of 2.1m pounds. This combined charge is currently expected to
increase to a total of around 12m pounds in 2003.
Adoption of FRS17 has resulted in a small restatement to the prior year
results with operating profit before exceptionals being increased by 0.6m
pounds and financing costs increased by 1.5m pounds.
Group profit and loss account
for the year ended 31 December 2002
As As
restated restated
Before Exceptional Before Exceptional As
Exceptional Items Exceptional Items restated
Items (note 3) Total items (note 3) Total
2002 2002 2002 2001 2001 2001
Notes m pounds m pounds m pounds m pounds m pounds m pounds
Turnover - group
and share of
joint ventures
Continuing
operations 819.2 -- 819.2 959.4 -- 959.4
Discontinued
operations -- -- -- 6.2 -- 6.2
819.2 -- 819.2 965.6 -- 965.6
1 Less: share
of joint
ventures'
turnover (25.8) -- (25.8) (33.1) -- (33.1)
1 Group
turnover 793.4 -- 793.4 932.5 932.5
Group
operating
loss
Continuing
operations (83.0) (144.2) (227.2) (63.3) (444.0) (507.3)
Discontinued
operations -- -- -- (15.1) -- (15.1)
Group operating
loss (83.0) (144.2) (227.2) (78.4) (444.0) (522.4)
Share of operating
(loss)/ profit
in joint ventures
and associates
Continuing
operations 1.6 -- 1.6 3.5 -- 3.5
Discontinued
operations -- -- -- (5.4) -- (5.4)
1.6 -- 1.6 (1.9) -- (1.9)
Income from
other fixed
asset
investments 10.4 -- 10.4 4.3 -- 4.3
1 Total
operating
loss (71.0) (144.2) (215.2) (76.0) (444.0) (520.0)
3 Loss on sale
and closure
of businesses
Continuing
operations -- -- -- -- (32.9) (32.9)
Discontinued
operations -- (14.0) (14.0) -- (18.6) (18.6)
-- (14.0) (14.0) -- (51.5) (51.5)
Loss on ordinary
activities
before
interest (71.0) (158.2) (229.2) (76.0) (495.5) (571.5)
4 Net interest
income 10.1 -- 10.1 35.8 -- 35.8
Other finance
expense (2.1) -- (2.1) (1.5) -- (1.5)
Loss on
ordinary
activities
before tax (63.0) (158.2) (221.2) (41.7) (495.5) (537.2)
5 Tax on loss
on ordinary
activities (16.0) -- (16.0) (25.0) -- (25.0)
Loss on
ordinary
activities
after tax (79.0) (158.2) (237.2) (66.7) (495.5) (562.2)
Equity minority
interests (1.8) -- (1.8) (2.0) -- (2.0)
Loss for
the financial
year (80.8) (158.2) (239.0) (68.7) (495.5) (564.2)
6 Dividends
- equity (23.6) (39.8)
- non-equity (0.6) (325.3)
(24.2) (365.1)
Retained loss
for the
financial year (263.2) (929.3)
Earnings/(loss)
per share
7 - before amortisation
of intangible
assets and
exceptional items 16.5 p 17.9 p
7 - basic (71.6)p (146.3)p
7 - diluted (71.6)p (146.3)p
Balance sheets
at 31 December 2002
As
restated
Group Group Company Company
2002 2001 2002 2001
m pounds m pounds m pounds m pounds
Fixed assets
Intangible assets 442.7 736.8 -- --
Tangible assets 67.3 84.8 -- --
Investments in
subsidiary undertakings -- -- 3,543.9 3,639.5
Investments in joint ventures:
- share of gross assets 17.2 18.5 -- --
- share of gross liabilities (4.4) (3.1) -- --
Investments in joint ventures 12.8 15.4 -- --
Investments in
associated undertakings 0.2 0.2 -- --
Other investments 169.5 155.9 -- --
692.5 993.1 3,543.9 3,639.5
Current assets
Stocks 16.6 17.0 -- --
Debtors 163.3 210.8 102.3 62.4
Investments 1.5 2.4 -- --
Short term liquid funds 594.8 592.8 -- --
Cash at bank and in hand 96.7 353.0 -- --
872.9 1,176.0 102.3 62.4
Creditors: amounts falling
due within one year (605.9) (639.2) (34.5) (52.1)
Net current
assets/(liabilities) 267.0 536.8 67.8 10.3
Total assets less
current liabilities 959.5 1,529.9 3,611.7 3,649.8
Creditors: amounts falling
due after more than one year
Bank and other loans (338.5) (424.8) (385.5) (424.8)
Other creditors (13.3) (23.5) (2,398.5) (2,066.0)
Convertible debt (245.0) (434.5) -- (178.7)
(596.8) (882.8) (2,784.0) (2,669.5)
Provisions for
liabilities and charges (58.5) (41.0) -- --
Net assets excluding
pension liability 304.2 606.1 827.7 980.3
Pension liability (90.9) (41.0) -- --
Net assets including
pension liability 213.3 565.1 827.7 980.3
Capital and reserves
Called up share capital 84.5 95.9 84.5 95.9
Share premium account 308.5 305.8 308.5 305.8
Merger reserve 31.3 31.3 -- --
Other reserves 167.8 156.2 126.1 114.5
Profit and loss account (380.8) (26.2) 308.6 464.1
Shareholders' funds (including
non-equity interests) 211.3 563.0 827.7 980.3
Equity minority interests 2.0 2.1 -- --
Capital employed 213.3 565.1 827.7 980.3
Equity shareholders' funds 210.7 550.8 827.1 968.1
Non-equity shareholders' funds 0.6 12.2 0.6 12.2
Shareholders' funds 211.3 563.0 827.7 980.3
Group cash flow statement
for the year ended 31 December 2002
As
restated
2002 2001
m pounds m pounds
Net cash inflow from operating activities 55.5 14.7
Dividends received from joint ventures
and associated undertakings 0.9 1.0
Returns on investments and servicing of finance
Interest received 45.5 79.4
Interest paid (41.1) (55.8)
Dividends paid to minority shareholders (1.9) (1.9)
Dividends paid to non-equity shareholders (0.9) (324.6)
Income from other fixed asset investments 13.6 4.3
Finance costs incurred in raising debt -- (4.3)
Net cash inflow/ (outflow) from returns
on investments and servicing of finance 15.2 (302.9)
Taxation
UK corporation tax received (including ACT) 3.4 15.3
Overseas tax received/ (paid) 11.9 (19.4)
Taxation received/ (paid) 15.3 (4.1)
Capital expenditure and financial investment
Purchase of tangible fixed assets (10.9) (31.7)
Proceeds from sale of tangible fixed assets 1.0 4.0
Purchase of other intangible assets (0.3) (2.4)
Proceeds from sale of investments -- 1.7
Purchase of investments (11.9) (79.2)
Net cash outflow from capital
expenditure and financial investment (22.1) (107.6)
Acquisitions and disposals
Purchase of subsidiary undertakings and businesses (1.3) (127.8)
Net cash acquired with subsidiary
undertakings and businesses -- 10.4
Investments in joint ventures
and associated undertakings (0.1) (7.3)
Proceeds from sale of joint ventures
and associated undertakings -- 22.3
Costs incurred on the sale and closure of operations (19.0) (5.7)
Net cash outflow from acquisitions and disposals (20.4) (108.1)
Equity dividends paid to shareholders (13.5) (93.2)
Net cash inflow/(outflow) before use
of liquid resources and financing 30.9 (600.2)
Management of liquid resources
(Purchase)/ sale of current asset investments (42.4) 469.0
Decrease in short term deposits 264.4 755.1
Net cash inflow from management of liquid resources 222.0 1,224.1
Financing
Proceeds from issue of ordinary share capital 2.9 6.6
Return of capital to shareholders (including costs) (7.4) (901.3)
Proceeds from issue of convertible bond -- 274.8
Repurchase of bond (164.0) (14.6)
(Decrease)/ increase in bank loans (47.8) 0.2
Repayment of loan stock (23.6) (1.7)
Net cash outflow from financing (239.9) (636.0)
Increase/ (decrease) in cash in the period 13.0 (12.1)
2002 2001
m pounds m pounds
Reconciliation of net cash flow to
movement in net cash/(debt)
Increase / (decrease) in cash in the period 13.0 (12.1)
Cash outflow/ (inflow) from
decrease/(increase) in debt 235.4 (254.2)
Cash (inflow) from (decrease) in liquid resources (222.0) (1,224.1)
Changes in net cash/ (debt) resulting from cash flows 26.4 (1,490.4)
Other non-cash movements (6.2) (2.0)
Translation difference 24.0 (11.3)
Movement in net cash/ (debt) in period 44.2 (1,503.7)
Opening net cash 49.3 1,553.0
Closing net cash 93.5 49.3
Liquid resources include term deposits and government and corporate
securities.
Statement of group total recognised gains and losses
for the year ended 31 December 2002
As
restated
2002 2001
m pounds m pounds
Loss for the financial year (239.0) (564.2)
Currency translation differences on
foreign currency net investments:
Group (32.5) 16.2
Joint ventures (0.9) (0.1)
Associates -- (0.1)
Actuarial loss recognised in the pension schemes (50.6) (49.0)
Total recognised losses for the year (84.0) (33.0)
Prior year adjustment - Implementation of FRS 17 (48.9) --
(132.9) (33.0)
Total gains and losses recognised
since last annual report (371.9) (597.2)
The historical cost result is not materially different from the reported
loss in either year.
Reconciliation of movements in group shareholders' funds
for the year ended 31 December 2002
As
restated
2002 2001
m pounds m pounds
Opening shareholders' funds as reported 611.9 2,423.9
Prior year adjustment (48.9) (3.9)
Opening shareholders' funds - restated 563.0 2,420.0
Loss for the financial year (239.0) (564.2)
Equity dividends (23.6) (39.8)
Non-equity dividends on B shares (see note 6) (0.6) (325.3)
299.8 1,490.7
Other recognised gains relating to the year (84.0) (33.0)
New share capital subscribed 2.9 6.6
Return of capital to shareholders (7.4) (901.3)
Closing shareholders' funds 211.3 563.0
Notes to the financial statements
Group Group
share share
of joint of joint
Group ventures Group venture
2002 2002 2001 2001
1. Business analysis m pounds m pounds m pounds m pounds
Turnover by division
Continuing operations:
CMP Media 252.4 9.0 370.4 12.9
CMP Asia 51.1 3.6 49.0 3.2
CMP Information 113.4 4.5 130.8 4.2
United Advertising Publications 58.1 -- 57.4 --
Professional media 475.0 17.1 607.6 20.3
News distribution 105.4 8.7 128.0 8.6
Market research 213.0 -- 194.9 --
Continuing operations 793.4 25.8 930.5 28.9
Discontinued operations:
Professional media - CMP Information -- -- 2.0 4.2
Discontinued operations
by geographic market -- -- 2.0 4.2
793.4 25.8 932.5 33.1
United Kingdom 216.6 4.5 234.2 8.4
North America 502.2 17.0 625.0 21.3
Europe and Middle East 28.1 0.7 28.8 0.2
Pacific 46.5 3.6 44.5 3.2
793.4 25.8 932.5 33.1
Turnover analysis is based on turnover by origin. Turnover by destination
would not be materially different.
As
restated
2002 2001
Net operating assets by division m pounds m pounds
CMP Media 181.9 337.2
CMP Asia 6.6 21.8
CMP Information 29.7 72.8
United Advertising Publications 7.2 9.8
Professional media 225.4 441.6
News distribution 34.2 70.5
Market research 59.7 129.4
319.3 641.5
by geographic market
United Kingdom 52.6 60.3
North America 258.0 547.6
Europe and Middle East 1.6 10.3
Pacific 7.1 23.3
319.3 641.5
Reconciliation of net operating assets to net assets
Net operating assets 319.3 641.5
Investments 778.7 761.6
Corporation tax (277.4) (247.2)
Net (borrowings)/cash (502.5) (545.7)
Proposed dividend (13.9) (4.1)
Pension liability (90.9) (41.0)
Net assets 213.3 565.1
Discontinued operations in 2001 include UK online business to business and
business to customer activities which have been disposed or closed.
The caption Professional Media has been separately analysed into its
underlying businesses and comparatives have been shown accordingly.
Group
share Group
of share
joint of Exceptional
Group ventures associates Subtotal items Total
2002 2002 2002 2002 2002 2002
m pounds m pounds m pounds m pounds m pounds m pounds
1. Business analysis
(continued)
*Operating profit before
amortisation of intangible
assets by division
Continuing operations:
CMP Media (9.9) 0.5 -- (9.4) (11.3) (20.7)
CMP Asia 13.6 0.1 -- 13.7 (0.7) 13.0
CMP Information 12.5 0.2 -- 12.7 (5.8) 6.9
United Advertising 12.7 -- -- 12.7 (0.8) 11.9
Publications
Professional media 28.9 0.8 -- 29.7 (18.6) 11.1
News distribution 14.3 3.0 -- 17.3 (4.1) 13.2
Market research 17.9 -- -- 17.9 (7.3) 10.6
Continuing
operations 61.1 3.8 -- 64.9 (30.0) 34.9
Discontinued
operations (note 1a) -- -- -- -- -- --
*Operating profit before
amortisation of
intangible assets 61.1 3.8 -- 64.9 (30.0) 34.9
Amortisation of
intangible assets (133.7) (2.2) -- (135.9) (114.2) (250.1)
*Operating profit/(loss)
by division
Continuing operations:
CMP Media (79.3) (0.7) -- (80.0) (71.3) (151.3)
CMP Asia (0.5) -- -- (0.5) (0.7) (1.2)
CMP Information (9.5) 0.2 -- (9.3) (5.8) (15.1)
United Advertising 11.7 -- -- 11.7 (0.8) 10.9
Publications
Professional media (77.6) (0.5) -- (78.1) (78.6) (156.7)
News distribution 8.9 2.1 -- 11.0 (21.3) (10.3)
Market research (3.9) -- -- (3.9) (44.3) (48.2)
Continuing
operations (72.6) 1.6 -- (71.0) (144.2) (215.2)
Discontinued
operations (note 1a) -- -- -- -- -- --
*Operating loss (72.6) 1.6 -- (71.0) (144.2) (215.2)
Non-operating
exceptional items (14.0)
Net interest and other 8.0
financial income
Loss on ordinary
activities
before tax (221.2)
by geographic market
United Kingdom (27.6) 0.5 -- (27.1) (24.6) (51.7)
North America (54.5) 1.9 -- (52.6) (112.4) (165.0)
Europe and
Middle East 12.5 (0.8) -- 11.7 (7.2) 4.5
Pacific (3.0) -- -- (3.0) -- (3.0)
*Operating loss (72.6) 1.6 -- (71.0) (144.2) (215.2)
Non-operating
exceptional items (14.0)
Net interest and other
financial income 8.0
Loss on ordinary activities
before tax (221.2)
*Includes income from other fixed asset investments
Group Group As
As share share As restated As
restated of joint of restated exceptional restated
Group ventures associates Subtotal Items Total
2001 2001 2001 2001 2001 2001
m pounds m pounds m pounds m pounds m pounds m pounds
1. Business analysis (continued)
*Operating profit before
amortisation of
intangible assets by division
Continuing operations:
CMP Media (8.8) 1.0 -- (7.8) (37.8) (45.6)
CMP Asia 13.3 0.1 -- 13.4 -- 13.4
CMP Information 6.4 0.5 -- 6.9 (21.2) (14.3)
United Advertising
Publications 9.4 -- -- 9.4 (1.4) 8.0
Professional
media 20.3 1.6 -- 21.9 (60.4) (38.5)
News
distribution 32.8 3.0 -- 35.8 (6.4) 29.4
Market research 24.1 (0.1) -- 24.0 (7.2) 16.8
Continuing
operations 77.2 4.5 -- 81.7 (74.0) 7.7
Discontinued
operations
(note 1a) (15.0) (3.8) (1.3) (20.1) -- (20.1)
*Operating profit
before
amortisation
of intangible
assets 62.2 0.7 (1.3) 61.6 (74.0) (12.4)
Amortisation of
intangible
assets (136.3) (1.0) (0.3) (137.6) (370.0) (507.6)
*Operating
profit/(loss)
by division
Continuing operations:
CMP Media (98.2) 1.0 -- (97.2) (407.8) (505.0)
CMP Asia (17.1) (0.1) -- (17.2) -- (17.2)
CMP Information 3.2 0.5 -- 3.7 (21.2) (17.5)
United Advertising
Publications 8.4 -- -- 8.4 (1.4) 7.0
Professional
media (103.7) 1.4 -- (102.3) (430.4) (532.7)
News distribution 27.9 2.2 -- 30.1 (6.4) 23.7
Market research 16.8 (0.1) -- 16.7 (7.2) 9.5
Continuing
operations (59.0) 3.5 -- (55.5) (444.0) (499.5)
Discontinued
operations
(note 1a) (15.1) (3.8) (1.6) (20.5) -- (20.5)
*Operating loss (74.1) (0.3) (1.6) (76.0) (444.0) (520.0)
Non-operating
exceptional items (51.5)
Net interest and
other financial
income 34.3
Loss on ordinary
activities before tax (537.2)
by geographic market
United Kingdom (32.2) (3.4) (1.6) (37.2) (94.4) (131.6)
North America (62.4) 3.9 -- (58.5) (349.6) (408.1)
Europe and
Middle East 7.9 (0.8) -- 7.1 -- 7.1
Pacific 12.6 -- -- 12.6 -- 12.6
*Operating loss (74.1) (0.3) (1.6) (76.0) (444.0) (520.0)
Non-operating
exceptional items (51.5)
Net interest
and other
financial income 34.3
Loss on ordinary
activities
before tax (537.2)
*Includes income from other fixed asset investments
Group Group
share share
of joint of Exceptional
Group ventures associates Subtotal items Total
2002 2002 2002 2002 2002 2002
m pounds m pounds m pounds m pounds m pounds m pounds
1. Business analysis (continued)
(a) Analysis of discontinued operations
Operating loss before
amortisation of intangible
assets by division
Professional media -- -- -- -- (14.0) (14.0)
Discontinued
operations -- -- -- -- (14.0) (14.0)
Amortisation of
intangible assets -- -- -- -- -- --
Operating loss by division
Professional media -- -- -- -- (14.0) (14.0)
Discontinued
operations -- -- -- -- (14.0) (14.0)
Group Group
share share
of joint of Exceptional
Group ventures associates Subtotal items Total
2001 2001 2001 2001 2001 2001
m pounds m pounds m pounds m pounds m pounds m pounds
Operating loss before amortisation of
intangible assets by division
Professional media -
CMP Information (15.0) (3.8) (1.3) (20.1) -- (20.1)
Discontinued
operations (15.0) (3.8) (1.3) (20.1) -- (20.1)
Amortisation of
intangible assets (0.1) -- (0.3) (0.4) -- (0.4)
Operating loss
by division
Professional media -
CMP Information (15.1) (3.8) (1.6) (20.5) -- (20.5)
Discontinued
operations (15.1) (3.8) (1.6) (20.5) -- (20.5)
During 2002, UBM settled an outstanding legal claim relating to the
planned merger with Carlton Communications plc in 2000 and the subsequent sale
of the group's television businesses. The exceptional cost of this claim to
the group, net of associated receipts, amounted to #14.0 million.
Discontinued operations in 2001 include UK online business to business and
business to customer activities which have been disposed or closed.
As
restated
2002 2001
2. Reconciliation of operating profit before m pounds m pounds
amortisation and exceptionals to loss before tax
Operating profit before amortisation of
intangible assets and exceptional items* 64.9 61.6
Net interest income 10.1 35.8
Other finance expense (2.1) (1.5)
Amortisation of intangible assets
- Group (133.7) (136.3)
- Joint ventures and associates (2.2) (1.3)
Exceptional items charged to operating profit (see note 3)
- Impairment of goodwill (114.2) (370.0)
- Restructuring costs (30.0) (74.0)
Exceptional items charged to loss before tax (14.0) (51.5)
Loss before tax (221.2) (537.2)
* Included within operating profit before amortisation of intangible
assets and exceptional items is 8.5 million pounds of redundancy and
other restructuring costs (net of curtailment). In 2001, these costs
were included in the exceptional restructuring costs shown above.
As
restated
2002 2001
3. Exceptional items m pounds m pounds
Charged to operating loss:
Continuing operations:
Costs of integration of acquired businesses -- (5.1)
Group Process Review costs (note (a)) -- (9.0)
Other restructuring costs (note (b)) (30.0) (59.9)
Goodwill impairment (note (c)) (114.2) (370.0)
Continuing operations (144.2) (444.0)
Total charged to operating loss (144.2) (444.0)
Charged to loss before tax
Payments relating to prior year disposals (note (d)) (14.0) --
Loss on sale or closure of businesses (note (e)) -- (51.5)
Total charged after operating loss (14.0) (51.5)
Total charged to loss on ordinary activities before tax (158.2) (495.5)
Tax on exceptional items -- --
(a) The Group Process Review was a programme that aimed to achieve
operating efficiencies through re-engineering of systems and processes
within the business. All remaining projects were completed
during 2001.
(b) Other restructuring costs in 2002 relate to additional provisions for
vacant properties. In 2001 it included vacant property provisions and
redundancy costs which resulted from the restructuring and other cost
reduction and business re-engineering programmes in 2001.
Restructuring costs in 2001 have been restated to take account of FRS
17 adjustments for curtailment credits of 4.9 million pounds arising
from these redundancies.
(c) In accordance with the requirements of FRS11 "Impairment of fixed
assets and goodwill," the directors have considered the carrying value
of the group's purchased goodwill, and, in the light of market
conditions, made a provision for impairment. In determining the
amount of the impairment, which was calculated on a net realisable
value basis, the directors considered a number of factors, including
the current and prospective revenues, earnings and cash flows from the
businesses.
(d) During the period, UBM settled an outstanding claim relating to the
planned merger with Carlton Communications plc in 2000 and the
subsequent sale of the group's television business. The exceptional
cost of this claim to the group, net of associated receipts, amounted
to 14.0 million pounds, all of which has been reflected in the cash
flow statement.
(e) Loss on sale or closure of businesses in 2001 included the loss on
sale or closure of a number of UK online based business to business
and business to consumer activities and included goodwill and
investment write downs together with provisions for planned
future closures and disposals. Of the loss on sale or closure,
32.9 million pounds related to continuing operations and
18.6 million pounds related to discontinued businesses. The analysis
by business segment is: 47.0 million pounds - professional media,
3.6 million pounds - news distribution and 0.9 million pounds - market
research.
2002 2001
4. Net interest income/(expense) m pounds m pounds
Interest receivable 55.6 87.4
Interest payable - on bank loans and overdrafts (1.9) (1.8)
- on other loans (43.6) (49.2)
Group 10.1 36.4
Share of joint ventures -- (0.6)
Share of associates -- --
10.1 35.8
Interest receivable includes 8.8 million pounds (2001: 7.4 million pounds)
of interest receivable from Channel 5 Television Group Limited in respect of
shareholder loans.
2002 2001
5. Tax on loss on ordinary activities m pounds m pounds
a) Analysis of tax charge for the year:
UK corporation tax at 30.0% (2001: 30.0%) (0.5) (1.0)
Overseas corporation tax 15.3 24.7
Tax relating to share of profit of joint ventures 1.2 1.3
16.0 25.0
2002 2001
m pounds m pounds
b) Factors affecting tax charge for the year:
Loss on ordinary activities before tax (161.2) (537.2)
Loss on ordinary activities before tax multiplied by (48.4) (161.2)
standard rate of corporation tax in the UK of 30%
Effect of:
Expenses not deductible for tax purposes
(primarily goodwill amortisation) 76.9 203.3
Tax effect of items not recognised
in consolidated financial statements (8.0) (20.2)
Reversal of timing differences (1.2 14.7
Higher tax rates on overseas earnings (3.7) (11.1)
Other 0.4 (0.5)
Tax on loss on ordinary activities 16.0 25.0
c) Factors that may affect future tax:
No deferred tax has been recognised on the retained profits and reserves
of overseas subsidiaries or joint ventures or associated undertakings there is
currently no intention to remit such amounts to the UK.
These deferred tax assets have not been recognised, having given
consideration to the likelihood of recovery of the balance.
2002 2001
6. Dividends m pounds m pounds
Equity dividends
Ordinary shares:
Interim of 3.0 p (2001: 11.0 p) 10.1 36.4
Proposed final of 4.0 p (2001 1.0 p) 13.5 3.4
Non-equity dividends - B shares 0.6 325.3
24.2 365.1
In 2002, non-equity dividends relate to the accrual for the LIBOR linked
dividend on 7,546,387 B shares remaining in issue. The non-equity dividends in
2001 represented the single dividend of 245 pence per share paid to the
holders of 132,484,195 B shares who elected this option, together with the
accrual for the LIBOR linked dividend of 0.7 million pounds on 10,480,642 B
shares remaining in issue.
2002 2002 2002 2001 2001 2001
Weighted Earnings/ Weighted Earnings/
average (loss) average (loss)
Earnings/ number per Earnings/ number per
(loss) of shares share (loss) of shares share
m pounds million pence m pounds million pence
7. Earnings/(loss) per share
Earnings per share
before amortisation
of intangible
assets and
exceptional items 55.1 333.8 16.5 68.9 385.7 17.9
Adjustment in
respect of
amortisation of
intangible
assets (135.9) -- (40.7) (137.6) -- (35.7)
Adjustment in
respect of
exceptional
items (158.2) -- (47.4) (495.5) -- (128.5)
Basic loss
per share (239.0) 333.8 (71.6) (564.2) 385.7 (146.3)
Effect of
dilutive
securities:
Options -- -- -- -- -- --
Convertible debt -- -- -- -- -- --
Diluted loss
per share (239.0) 333.8 (71.6) (564.2) 385.7 (146.3)
Earnings per share before amortisation of intangible assets and
exceptional items are presented as the directors consider that this presents a
meaningful measure of the performance of the group. For diluted earnings per
share, the weighted average number of shares in issue is adjusted to assume
conversion of all dilutive potential ordinary shares. The group has three
categories of dilutive potential ordinary shares: those share options granted
to employees where the exercise price is less than the average market price of
the company's ordinary shares during the year, those shares which may be
issued under the Long Term Incentive Plan ("LTIP") and shares attributable to
convertible debt. No adjustment has been made for the dilutive impact in 2002
as this would decrease reported loss per share. The impact of dilutive
securities in 2002 would be to decrease loss by 4.1 million pounds for
convertible debt (2001: 7.6 million pounds) and to increase weighted average
shares by 0.7 million shares for employee share options (2001: 1.2 million)
and 43.1 million shares for convertible debt (2001: 23.7 million).
As
restated
Total Total
2002 2001
8. Reconciliation of operating loss to cash m pounds m pounds
inflow from operating activities
Operating loss (215.2) (520.0)
Depreciation charges 23.2 23.3
Amortisation of intangible assets - group 247.9 506.3
Share of results of joint ventures (1.6) 0.3
Share of results of associates -- 1.6
Income from fixed asset investments (10.4) (4.3)
Other finance expenses (2.1) (1.5)
Loss on sale of tangible fixed assets 0.4 1.0
Payments against provisions (14.9) (3.8)
(Increase)/ decrease in stocks (0.7) 5.6
Decrease in debtors 44.3 68.8
Decrease in creditors (27.3) (74.5)
Payments against restructuring
and other exceptional costs (20.2) (19.0)
Other non-cash items including
movements on provisions 32.1 30.9
Cash inflow from operating activities 55.5 14.7
The effect of exceptional items on cash inflow from operating activities
was an outflow of 30.0 million pounds (2001: 30.9 million pounds).
At Other At
1 January Cash non-cash Exchange 31 December
2002 flow movements movements 2002
m pounds m pounds m pounds m pounds m pounds
9. Analysis of movement
in net cash/ (debt)
Cash at bank and in hand 353.0 96.7
Overdrafts (0.2) (0.2)
352.8 96.5
Less deposits treated
as liquid resources (343.0) (75.4)
9.8 13.0 -- (1.7) 21.1
Debt due after one year (859.3) 211.8 (6.2) 70.2 (583.5)
Debt due within one year (39.4) 23.6 -- -- (15.8)
(888.9) 248.4 (6.2) 68.5 (578.2)
Deposits included in cash 343.0 (264.4) -- (3.2) 75.4
Current asset investments 595.2 42.4 -- (41.3) 596.3
Total 49.3 26.4 (6.2) 24.0 93.5
10. Foreign exchange
The trading results of overseas subsidiaries and associated companies were
translated into sterling at an average of the exchange rates ruling for the
year.
11. Basis of accounting
The financial statements have been prepared under the historical cost
convention, in accordance with applicable Accounting Standards in the United
Kingdom. With the exception of the matters referred to below, the financial
statements have been prepared on a basis consistent with prior years.
In preparing the financial statements for the current year, the group has
adopted FRS 19 "Deferred Tax" which has resulted in a change of accounting
policy for deferred tax. The implementation of this standard has had no
material impact on the results or balance sheet of the group and accordingly,
no prior year adjustment is required.
The group has adopted FRS 17 "Retirement Benefits" in these financial
statements. The adoption of this standard represents a change in accounting
policy and the comparative figures have been restated accordingly.
12. Status of information
The figures and financial information for the year ended 31 December 2002
do not constitute the statutory financial statements for that year. Those
financial statements have not yet been delivered to the Registrar, but include
the auditors' report which was unqualified and did not contain a statement
under Section 237 (2) or (3) of the Companies Act 1985. The figures and
financial information for the year ended 31 December 2000 included in the
preliminary announcement do not constitute the statutory financial statements
for that year. Those financial statements have been delivered to the
Registrar and included the auditors' report which was unqualified and did not
contain a statement under Section 237 (2) or (3) of the Companies Act 1985.
This preliminary announcement was approved by a duly appointed and
authorised committee of the Board of Directors on 28 February 2003.
SOURCE United Business Media plc
 back to top
CONTACT:
Press - Nigel Main of United Business Media,
+020-7579-4060, or Colin Browne of The Maitland Consultancy,
+020-7379-5151; or Analysts - Michael Waring of United Business
Media, +020-7921-5031
|
