Primary Financial Statements

Group Income Statement

	Note	2006 £m	2005 £m
Revenue	2	828.5	773.9
Cost of sales		(402.1)	(361.8)
Gross profit		426.4	412.1
Distribution and marketing expenses		(348.9)	(303.3)
Administrative expenses		(9.0)	(8.0)
Operating profit		68.5	100.8
Provision for RoHS	4	4.0	-
Reorganisation costs	5	3.7	-
Headline operating profit	1	76.2	100.8
Financial income		6.9	3.6
Financial expenses		(10.3)	(4.5)
Profit before tax	1, 2, 3	65.1	99.9
Headline profit before tax	1	72.8	99.9
Income tax expense	9	(21.5)	(32.3)
Profit for the year attributable to equity shareholders		43.6	67.6
Earnings per share
Basic	11	10.0p	15.5p
Diluted	11	10.0p	15.5p
Dividends
Amounts recognised in the period:
Final dividend for the year ended 31 March 2005	10	12.6p	12.6p
Interim dividend for the year ended 31 March 2006	10	5.8p	5.8p
		18.4p	18.4p

A final dividend of 12.6p per share relating to the period has been proposed since the period end.

	Note	2006 £m	2005 £m
Foreign exchange translation differences		11.6	1.5
Actuarial gain on defined benefit pension schemes	8	4.2	0.5
Loss on net investment hedges		(1.0)	-
Tax on items taken directly to equity		(1.3)	(0.2)
Net income recognised directly in equity		13.5	1.8
Profit for the year		43.6	67.6
Total recognised income and expense for the period attributable to equity shareholders before opening balance sheet adjustment	26	57.1	69.4
Opening balance sheet adjustment: adoption of IAS 32 and IAS 39	28	0.9	-
Total recognised income and expense for the period attributable to equity shareholders		58.0	69.4

The notes 1 to 32 form part of these Group Accounts.

	Note	2006 £m	2005 £m
Non-current assets
Intangible assets	12	208.2	191.9
Property, plant and equipment	13	112.8	110.9
Investments	15	0.3	0.2
Trade and other receivables	18	3.2	2.8
Deferred tax assets	22	17.5	17.4
		342.0	323.2
Current assets
Inventories	17	158.6	142.3
Trade and other receivables	18	162.3	145.1
Income tax receivables		1.0	2.2
Cash and cash equivalents		39.4	64.8
		361.3	354.4
Current liabilities
Trade and other payables	19	(123.5)	(109.5)
Loans and borrowings	20	(23.0)	(27.7)
Tax liabilities		(13.3)	(18.7)
		(159.8)	(155.9)
Net current assets		201.5	198.5
Total assets less current liabilities		543.5	521.7
Non-current liabilities
Trade and other payables	19	(7.8)	(7.6)
Retirement benefit obligations	8	(41.8)	(47.0)
Loans and borrowings	20	(137.2)	(92.5)
Deferred tax liabilities	22	(20.3)	(18.9)
		(207.1)	(166.0)
Net assets		336.4	355.7
Equity
Called-up share capital	25	43.5	43.5
Share premium account	26	38.4	38.4
Retained earnings	26	254.5	273.8
Equity attributable to the shareholders of the parent		336.4	355.7

These Group Accounts were approved by the Board of Directors on 1 June 2006 and signed on its behalf by:

Simon Boddie
Group Finance Director

The notes 1 to 32 form part of these Group Accounts.

	Note	2006 £m	2005 £m
Cash flows from operating activities
Profit before tax		65.1	99.9
Depreciation and other amortisation		24.1	22.2
Equity settled transactions	7	2.7	2.4
Finance income and expense		3.4	0.9
Operating cash flow before changes in working capital, interest and taxes		95.3	125.4
Increase in inventories		(12.8)	(13.6)
(Increase) decrease in trade and other receivables		(14.6)	9.3
Increase (decrease) in trade and other payables		13.2	(3.7)
Cash generated from operations		81.1	117.4
Interest received		6.8	3.5
Interest paid		(10.1)	(4.8)
Income tax paid		(25.8)	(31.2)
Operating cash flow		52.0	84.9
Cash flows from investing activities
Capital expenditure and financial investment		(26.3)	(24.6)
Proceeds from sale of non-current assets		1.2	0.8
Net cash used in investing activities		(25.1)	(23.8)
Free cash flow		26.9	61.1
Cash flows from financing activities
Proceeds from the issue of share capital		-	-
New bank loans		54.3	35.0
Repayment of bank loans		(25.6)	(20.8)
Equity dividends paid	10	(80.0)	(80.0)
Net cash used in financing activities		(51.3)	(65.8)
Net decrease in cash and cash equivalents		(24.4)	(4.7)
Cash and cash equivalents at the beginning of the year		62.6	72.6
Effect of exchange rates on cash		(0.2)	(5.3)
Cash and cash equivalents at the end of the year	29	38.0	62.6

The notes 1 to 32 form part of these Group Accounts.