News Releases issued to the Stock Exchange
1 May 2001

Interim results for the six months to 28 Febuary 2001

Highlights Group Cash Flow Information
Key Achievements/ Performance Indicators Notes 1 - 7, Notes 8 - 12
Review Review Report (Auditors)
Group Profit & Loss Account Investor Information
Group Balance Sheet City Presentation

NOTES 1 - 7

Notes to the accounts           
            
1. Basis of preparation           
            
These interim statements, which are unaudited, comply with relevant accounting standards. The accounting policies have been applied on a basis consistent with those applied in the 2000 Annual Report and Accounts, which were prepared in accordance with accounting principles generally accepted in the United Kingdom (UK GAAP).
            
The periods to 28 February 2001 and 29 February 2000 are regarded as distinct financial periods for accounting purposes with the exception of taxation where the periods are allocated an appropriate proportion of the expected total annual charge.
            
The figures for the year to 31 August 2000 are an abridged version of the group's published financial statements which have been reported on by the group's auditor and filed with the Registrar of Companies. The report of the auditor was unqualified and did not contain a statement under section 237 (2) or (3) of the Companies Act 1985.
                       
These interim financial statements were approved by the Board on 30 April 2001.
                       
2. Activity analysis                      
                       
1999/00     2000/01   1999/00
12 months     6 months   6 months
                     
Turnover   Trading profit *     Turnover   Trading profit *   Turnover   Trading profit *
£m   £m     £m   £m   £m   £m
                       
2,297   414   Spirits & Wine 1,327   253   1,157   225
305   64   QSR 130   21   127   19
-   9   Britannia -   3   -   2
                       
                       
2,602   487   Continuing operations 1,457   277   1,284   246
        Discontinued operations -              
-   9   Panrico -   -   -   6
18   4   UK Retail -   -   18   4
                       
                       
2,620   500     1,457   277   1,302   256
                       
                       
* Trading profit above is before goodwill and exceptional items which for the six months to 28 February 2001 relate wholly to Spirits & Wine activities (£10m).
                       
3. Geographical analysis                      
                       
1999/00     2000/01   1999/00
12 months     6 months   6 months
    Trading         Trading       Trading
Turnover   profit *     Turnover   profit *   Turnover   profit *
£m   £m   By country of destination £m   £m   £m   £m
                       
968   193   Europe 524   95   530   99
1,392   251   Americas 751   144   676   130
242   43   Rest of World 182   38   78   17
                       
                       
2,602   487   Continuing operations 1,457   277   1,284   246
  Discontinued operations -  
-   9   Panrico -   -   -   6
18   4   UK Retail -   -   18   4
                       
                       
2,620   500     1,457   277   1,302   256
                       
                       
* Trading profit above is before goodwill and exceptional items which for the six months to 28 February 2001 relate to Europe (£8m) and Rest of World (£2m).

 

3. Geographical analysis (continued)                      
                       
1999/00     2000/01   1999/00
12 months     6 months   6 months
                     
Turnover   Trading profit *     Turnover   Trading profit *   Turnover   Trading profit *
£m   £m   By country of operation £m   £m   £m   £m
                       
1,484   199   Europe 813   116   796   121
1,568   271   Americas 873   146   763   123
147   17   Rest of World 134   15   33   2
                       
                       
3,199   487   Continuing operations 1,820   277   1,592   246
  Discontinued operations -  
-   9   Panrico -   -   -   6
18   4   UK Retail -   -   18   4
                       
                       
3,217   500     1,820   277   1,610   256
(597)   -   Turnover with group companies (363)   -   (308)   -
2,620   500     1,457   277   1,302   256
                       
                       
* Trading profit above is before goodwill and exceptional items which for the six months to 28 February 2001 relate to Europe (£8m) and Rest of World (£2m).
                       
                       
4. Reconciliation to normalised earnings                      
                       
1999/00                 2000/01   1999/00
12 months                 6 months   6 months
£m                 £m   £m
                       
317   Earnings as reported             161   171
                       
(10)   Adjustments for discontinued operations net of tax             -   (7)
(19)   Adjustments for exceptional items net of tax             6   (15)
2   Adjustments for goodwill amortisation net of tax             3   -
                       
                       
290   Normalised earnings             170   149
                       
                       
1,059   Weighted average number of ordinary shares (millions)             1,056   1,062
                       
                       
27.4p   Normalised earnings per ordinary share             16.1p   14.0p
                       
                       
                       
The weighted average number of ordinary shares is shown after deducting the ordinary shares owned by the Allied Domecq employee trusts.
                       
Diluted earnings per share of 15.2p (2000: 16.1p) has been calculated on earnings of £161m (2000: £171m) and, after including the effect of all dilutive potential ordinary shares, the average number of shares of 1,057m (2000: 1,062m).

5. Goodwill amortisation and exceptional items              
               
1999/00         2000/01   1999/00
12 months         6 months   6 months
£m         £m   £m
               
(3)   Goodwill amortisation     (4)   -
               
               
    Exceptional items          
(8)   Euro and Year 2000 costs     (1)   (6)
-   Aborted acquisition costs     (5)   -
(6)   Asset write-downs     -   -
(40)   Restructuring and other costs     -   -
               
               
(54)   Operating costs     (6)   (6)
13   Profit on sale of businesses   -   -
46   Profit on disposal of fixed assets     -   19
               
               
5   Total exceptional items     (6)   13
               
               
2   Goodwill amortisation and exceptional items before taxation     (10)   13
15   Taxation     1   2
               
               
17   Goodwill amortisation and exceptional items after taxation     (9)   15
               
               
               
6. Taxation              
The £59m (2000: £54m) total taxation charge for the six months ended 28 February 2001 comprises UK taxation of £6m (2000: £5m), overseas taxation of £51m (2000: £45m) and taxation on the profits of associated undertakings of £2m (2000: £4m).
               
7. Reconciliation of movements in shareholders' funds              
               
1999/00         2000/01   1999/00
12 months         6 months   6 months
£m         £m   £m
               
317   Profit earned for ordinary shareholders in the period     161   171
7   Currency translation differences on foreign currency net investments     (23)   17
               
               
324   Total recognised gains and losses for the period     138   188
(116)   Dividends     (47)   (42)
(2,294)   Capital reduction due to disposal of UK Retail business     -   (2,294)
3   Goodwill written back on disposals     -   -
               
               
(2,083)   Net movement in shareholders' funds     91   (2,148)
2,273   At the beginning of the period     190   2,273
               
               
190   At the end of the period     281   125