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DATE:	Embargoed until 07.00am, Tuesday 7 July 2009
CONTACTS:	Paul Allen, Chief Executive Ian Johnson, Group Finance Director Jacques Vert Plc Tel: 08700 345636
	Alistair Mackinnon-Musson Nathan Field Hudson Sandler  Tel: 020 7796 4133 Email: jacquesvert@hspr.com
	Photographs available: Please contact Hudson Sandler, as above

 JACQUES VERT PLC 

 

PRELIMINARY RESULTS

 

Jacques Vert Plc, the womenswear clothing retailer, is pleased to announce its Preliminary results for the 52 weeks ended 25 April 2009, together with an update on trading for the ten weeks since that date.

 

The Group retails four womenswear brands: Jacques Vert, Windsmoor, Planet and Precis. Sales are made predominantly in the UK, Canada and Eire through circa 1,000 outlets.

 

The key points are:

• Retail sales £110.9m (2008: £114.9m) were 4.7% lower than the prior year on a like for like basis

• Gross margin 61.5% (2008: 63.0%)

• Operating profit before exceptional items of £2.4m (2008: £4.7m)

• Operating loss after exceptional items £2.6m (2008: £5.0m profit)

• Loss after tax £3.8m after a net exceptional charge of £4.9m (2008: profit of £3.5m after a net exceptional credit of £0.3m) 

• Year end cash of £4.5m (2008: £2.5m)

• Net assets  £20.1m (2008: £22.3m)

• Retail sales in the ten weeks since 25 April 2009 were the same level as the prior year. On a like for like basis, sales were 3.4% lower than the prior year

Commenting, Steve Bodger, Chairman, said:

'This year has been exceptionally challenging, in particular the period between September 2008 and early 2009, however Jacques Vert has performed creditably within this context.

Our brands have continued to make progress in the current Spring season and given our cash generation and balance sheet, that is stronger than ever, we have the financial strength to withstand the current economic uncertainty and to take advantage of opportunities as they arise'.

  CHAIRMAN'S STATEMENT

This year has been exceptionally challenging, in particular the period between September 2008 and early January 2009. 

Retailers have faced very difficult conditions, in common with a number of other business sectors. Jacques Vert has performed creditably within this context. While I am disappointed to report a fall in operating profit, our  continuing cash generation capabilities and strong balance sheet give the Group financial strength. 

Our brands have continued to make progress in the current Spring season. This progress, together with the firm action taken to reduce the Group's cost base during the final Quarter, helps the Group to withstand the current uncertainty in the retail market and to position it to take advantage of any opportunities which may arise.

We announced the departure of Shena MacDonald as a director on 28 April 2009 and I thank Shena for her contribution to the Group. The enthusiasm and commitment of our staff are impressive and I thank them all for their considerable efforts.

Steve Bodger  Chairman

6 July 2009

  CHIEF EXECUTIVE'S STATEMENT

The year has without doubt included some of the most volatile trading conditions seen for some considerable period. We highlighted at the time of our Interim announcement the very difficult market, which we expected to continue for some time. I am pleased to report the market has returned to slightly more settled conditions since then, although we note that consumer confidence is fragile and the retail environment remains challenging.

Operating profit before exceptional items for the year of £2.4m was down compared with the previous year (2008: £4.7m). The operating loss of £2.6m (after charging exceptional costs of £4.9m) compares with an operating profit of £5.0m (after a net exceptional credit of £0.3m) in the previous year.

Sales of £110.9m (2008: £114.9m) represented a total decline of 3.5% and a reduction of 4.7% on a like for like basis compared with the prior year. This represents a continuation of the improvement in the like for like sales trend at the time of our Interim announcement, when we reported the decline seen in the first half of 6.8% had reduced to a decline of 5.4% for the 11 weeks following the half year end. This in part reflects the stronger product ranges of three of our four brands; Jacques Vert, Planet and Precis Petite. We believe this performance compares favourably with the womenswear market in general and in particular with the competitors against which we benchmark ourselves. 

The market was also characterised by a significant increase in the level of discounting, especially in the final quarter of 2008 and in early 2009. The Group was inevitably required to respond to this activity to ensure we achieved our primary focus which is to maintain stocks and cash within targeted levels. I am pleased we successfully achieved this objective and in fact stocks at the year end were £1.6m lower than the prior year. One consequence though was that achieved gross margin was 61.5%, compared with 63.0% in the prior year.

At the year end, the Group operated from around 1,000 trading outlets compared with around 940 outlets at the previous year end.

The Group also continued to exercise strict control on costs, identifying reductions where appropriate. Distribution costs before exceptional items, which comprise mainly the costs of operating stores, were £55.8m (2008: £57.0m). Administrative expenses before exceptional items of £10.0m were £0.7m lower than the previous year.

Exceptional items

As part of our continuing emphasis on improving operational capability, the Group implemented further restructuring initiatives during the year at a total cost of £1.0m. The restructuring, which included a number of staff redundancies costing £0.6m during the final Quarter, will reduce the continuing annual overhead base by around £0.8m.

The Board has also reviewed the trading prospects of each of the Group's retail property leases. Due to the level of occupancy expenses associated with a few of these leases, the Board has concluded, in common with a number of other retailers, that these leases are unlikely to generate a positive contribution in the foreseeable future. In addition, as part of the restructuring during the final Quarter, the Group vacated one of its leased office premises. Accordingly, we have treated all these as onerous leases which gave rise to an exceptional charge of £3.8m.

Cash and financing 

The Group has demonstrated a strong and continuous track record of cash generation over a significant number of years. I am pleased to report we achieved another good performance during the year under review, resulting in net cash at the year end of £4.5m (2008: £2.5m). 

We will continue to exercise strict control over working capital, operating costs and capital expenditure, managing and monitoring cash balances on a daily basis.

Current trading and prospects 

Sales in the ten weeks since the year end decreased by 3.4% on a like for like basis which reflects a continuation of the improving trend experienced during 2008/09. Encouragingly, gross margin achieved during the ten weeks since the year end was 64.7% which compares favourably with 63.9% during the same period in the previous year.

Although economic conditions remain uncertain, the Group's balance sheet is stronger than it has ever been. We will continue to concentrate on further improving our brands, managing our margins, operating costs and cash flow to ensure we maximise profits during the coming year, while also moving the business forward in the medium term.

Paul Allen  Chief Executive

6 July 2009

Group income statement             

For the 52 weeks ended 25 April 2009

Note		52 weeks ended 25 April 2009					52 weeks ended 26 April 2008
		Before exceptional items	Exceptional Items  (note 2)		Total		Before exceptional items	Exceptional Items  (note 2)	Total
		£000	£000		£000		£000	£000	£000
Continuing operations
Revenue		110,884	-		110,884		114,935	-	114,935
Cost of sales		(42,652)	-		(42,652)		(42,535)	-	(42,535)
Gross profit		68,232	-		68,232		72,400	-	72,400
Operating expenses
Distribution costs		(55,801)	(3,119)		(58,920)		(56,984)	-	(56,984)
Administrative expenses		(10,048)	(1,820)		(11,868)		(10,729)	334	(10,395)
Operating (loss) / profit		2,383	(4,939)		(2,556)		4,687	334	5,021
Finance income	3a				27				17
Finance costs	3b				(329)				(718)
(Loss) / profit before income tax					(2,858)				4,320
Income tax expense	4				(928)				(774)
(Loss) / profit for the year from continuing operations					(3,786)				3,546
Net loss from discontinued operations	5				-				(1,906)
(Loss) / profit for the year attributable to equity holders of the company					(3,786)				1,640
Earnings per share for (loss) / profit and loss from discontinued operations attributable to the equity holders of the company during the year
Basic (loss) / earnings per share
- continuing operations					(1.97)p				1.87p
- discontinued operations					-				(1.00)p
- total					(1.97)p				0.87p
Diluted (loss) / earnings per share
- continuing operations					(1.97)p				1.77p
- discontinued operations					-				(0.95)p
- total					(1.97)p				0.82p

  Statement of recognised income and expense

52 weeks ended 25 April 2009

		52 weeks ended 25 April 2009		52 weeks ended 26 April 2008
		£000		£000
Actuarial loss arising in defined benefit pension schemes		(207)		(220)
Gain on cash flow hedges		1,856		559
Currency translation differences		246		295
Net income recognised directly in equity		1,895		634
(Loss) / profit for the year		(3,786)		1,640
Total recognised (expense) / income for the year attributable to equity holders of the company		(1,891)		2,274

 

Group balance sheet                    

At 25 April 2009

	Note		25 April 2009 £000		26 April 2008 £000
Non current assets
Goodwill			2,431		2,431
Property, plant and equipment			3,703		4,444
Deferred tax asset			1,900		2,638
			8,034		9,513
Current assets
Inventories			23,375		24,942
Trade and other receivables			10,566		11,802
Derivative financial instruments			3,552		202
Cash and cash equivalents			4,533		2,511
			42,026		39,457
Current liabilities
Trade and other payables			(21,012)		(20,353)
Derivative financial instruments			(261)		(10)
			(21,273)		(20,363)
Non current liabilities
Deferred income			(589)		(722)
Long term provisions	7		(7,623)		(5,130)
Pension schemes	7		(434)		(450)
Total liabilities			(29,919)		(26,665)
Net assets			20,141		22,305
Equity
Called up share capital			19,244		19,244
Share premium			4,599		4,599
Merger reserve			969		969
Hedge reserve			2,056		200
Translation reserve			246		-
Retained earnings			(6,973)		(2,707)
Total equity			20,141		22,305

  
Group cash flow statement                    

For the 52 weeks ended 25 April 2009

				52 weeks ended 25 April 2009 £000		52 weeks ended 26 April 2008 £000
Cashflows from operating activities
Operating profit before exceptional items				2,383		4,687
Cash outflow from exceptional items				(404)		(243)
Depreciation charge				1,660		1,614
Decrease in working capital				1,453		928
Decrease in provisions				(1,632)		(2,032)
(Credit) / charge relating to share based payments				(282)		382
Net cash inflow from continuing operations				3,178		5,336
Interest paid				(208)		(448)
Income tax paid				(189)		(41)
Cash outflow from discontinued operations				-		(575)
Net cash generated from operating activities				2,781		4,272
Cashflows from investing activities
Disposal of subsidiary				-		524
Purchase of property, plant and equipment				(1,089)		(1,458)
Proceeds from sale of property, plant and equipment				16		-
Interest received				27		17
Net cash outflow used in investing activities				(1,046)		(917)
Cash flows from financing activities
Loan repayment				-		(4,500)
Sale of shares by ESOP Trust				9		28
Net cash generated / (used in) financing activities				9		(4,472)
Net increase / (decrease) in cash and cash equivalents				1,744		(1,117)
Cash and cash equivalents at beginning of period				2,511		3,644
Exchange rate movements				278		(16)
Cash and cash equivalents at end of period				4,533		2,511

  Notes to the Preliminary Results    

For the 52 weeks ended 25 April 2009

1.    Basis of preparation

 

       For the period to 25 April 2009, the Group has prepared its consolidated financial statements in accordance with 
       International Financial Reporting Standards as adopted for use in the EU ('IFRS') and those parts of the Companies 
       Act 2006 applicable to companies reporting under IFRS. Accordingly, the directors have applied the accounting policies 
       set out in Note 8. 

 

       The figures for the 52 weeks ended 25 April 2009 included in this announcement have been extracted from the audited 
       financial statements for the 52 weeks ended 25 April 2009 which were approved by the Board of Directors on 6 July 2009. 
       The figures for the 52 weeks ended 25 April 2009 and 52 weeks ended 26 April 2008 do not constitute statutory accounts 
       within the meaning of section 435 of the Companies Act 2006. The figures for the 52 weeks period ended 26 April 
       2008 have been extracted from the financial statements filed with the Register of Companies and contain an unqualified 
       audit report and no statements under sections 498(2) or 498(3) of the Companies Act 2006.

2.    Exceptional items

The Group's operating profit for the period includes the following exceptional items:

	52 weeks ended 25 April 2009 £000		52 weeks ended 26 April 2008 £000
Restructuring costs	(1,030)		(406)
Onerous property costs	(3,809)		(515)
Increase in other legacy provisions	(100)		(100)
Phantom option granted to the Jacques Vert (2006) pension scheme Trustee over 10 million shares in Jacques Vert Plc	-		1,355
	(4,939)		334

 

3.    Finance income and costs

	52 weeks ended  25 April 2009 £000		52 weeks ended  26 April 2008 £000
a) Finance income
Interest receivable	27		17
b) Finance costs
Interest payable	(208)		(448)
Unwinding of discount on provisions	(101)		(270)
Net finance cost of pension schemes	(20)		-
	(329)		(718)

 

4.    Income tax expense

The income tax expense comprises:	52 weeks ended  25 April 2009 £000		52 weeks ended  26 April 2008 £000
Current tax
Overseas tax charge	(190)		(52)
Deferred tax
Origination and reversal of timing differences	(738)		(722)
	(928)		(774)

5.    Discontinued operations

    

        Discontinued operations in the year to 26 April 2008 relate to Bairdwear Interfashion (Pvt) Ltd, a wholly-owned 
        subsidiary, which was disposed of by the Group on 31 January 2008. 

6.    Earnings per share 

 

       Basic /diluted (loss) / earnings per share 

 

        The basic earnings per share have been calculated by dividing the profit after taxation for the year by 191,955,441 (2008: 
        189,131,344) being the weighted average number of shares in issue during the year excluding those held by the 
        Employee Share Ownership Trust ('the Trust'). At 25 April 2009 488,637 shares were held in the Trust (26 April 
        2008: 734,209).

 

        For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion 
        of all dilutive potential ordinary shares. The Group has two classes of dilutive potential ordinary shares: those share 
        options granted to employees where the exercise price is lower than the average market price of the Company's ordinary 
        shares during the year and the awards under the Jacques Vert Plc Long Term Incentive Plan ('the Plan') to the extent 
        that performance criteria attached to those awards are expected to be met.

   

7.    Provisions            

	Pension schemes	Pension settlement costs	Other business provisions	Total
	£000	£000	£000	£000
At 29 April 2007	442	2,239	5,181	7,862
Utilised	(212)	(324)	(1,496)	(2,032)
(Credited)/charged to the income statement	-	(1,255)	515	(740)
Actuarial loss on pension schemes	220	-	-	220
Discount unwinding	-	-	270	270
At 26 April 2008	450	660	4,470	5,580
Utilised	(243)	(347)	(1,042)	(1,632)
Charged to the income statement	20	100	3,681	3,801
Actuarial loss on pension schemes	207	-	-	207
Discount unwinding	-	-	101	101
At 25 April 2009	434	413	7,210	8,057

At 25 April 2009, the Jacques Vert (2006) pension scheme was valued by independent actuaries at a net surplus of £11.7m (26 April 2008: surplus £17.1m). Repayment of any surplus on this scheme to the Group is at the discretion of the Trustee. As the Group is unable to require the Trustee to make a repayment, the surplus has not been recognised in the Group balance sheet.     

Other business provisions relate to onerous leasehold property, dilapidations and claims against the Group in respect of industrial diseases, mainly asbestosis. Where applicable, future liabilities have been discounted using a rate of 10% per annum.

 

8.    Accounting policies

       The following IFRS issued by the International Accounting Standards Board ('IASB') has become effective since 26 April

       2008 but has not had a material impact on the results or the net assets of the Group:

  The following IFRSs, amendments and interpretations have been issued by the IASB and are required to be implemented 
  by the Group from May 2009, unless noted otherwise below. The Group has chosen not to adopt them early and none is 
  expected to have a material impact on the results or the net assets of the Group:

            Accounting convention

The consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets and liabilities at fair value.

Basis of consolidation

The Group financial statements consolidate the results of Jacques Vert Plc ('the Company') and its subsidiary undertakings (together 'the Group') under acquisition accounting for the 52 weeks ended 25 April 2009. Under this method, the assets and liabilities of subsidiary undertakings acquired are incorporated at their fair value at the date of acquisition and the Group income statement includes only that proportion of the result of subsidiaries arising whilst meeting the definition of a subsidiary.

Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. 

Revenue recognition

Revenue represents sales by the Group to third parties, net of returns, trade discounts and value added tax.

Retail revenue is shown net of provisions for customer returns representing the Group's estimate of the amount of product sold during the year that will be returned in the following year. 

Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer which is generally when goods are delivered to the customer.

Borrowing costs

The costs of providing the committed borrowing facility to the Group are spread across the lifetime of the facility. Borrowing costs arising in relation to capital expenditure are not capitalised.

Exceptional items

Transactions that are material in size or have little or no impact on the core, continuing activities of the Group are considered significant enough to warrant seprate disclosure in the primary financial statements. These are highlighted as Exceptional items in the Group income statement and analysed in the notes to the financial statements. Such transactions are treated consistently in each period that they arise.

 

           Share based payments

The Group operates an equity settled Employee Share Ownership Plan ('ESOP'). The Group has also granted equity settled share options ('Options'). Share awards made under the ESOP and the Options are measured at fair value at the date of grant. The fair value is measured by use of the Black-Scholes model and expensed on a straight-line basis over the vesting period based on an estimate of the number of shares that will eventually vest. 

The level of vesting is reviewed annually and the charge is adjusted to reflect actual and estimated levels of vesting.

Shares held by the Employee Share Ownership Trust ('the Trust') to meet the commitments of the ESOP are shown as a deduction from shareholders' equity. The cost of the ESOP is borne by the Group.

Pensions

The Group operates several defined contribution and defined benefit schemes for its employees.  

Defined contribution schemes are pension schemes under which the Group pays fixed contributions into separate entities. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. Defined benefit schemes are pension schemes that are not defined contribution schemes.

The liability recognised in the balance sheet in respect of defined benefit pension schemes is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets, together with adjustments for unrecognised past-service costs. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in the statement of recognised income and expense (SORIE) in the period in which they arise.

For defined contribution plans, the Group pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been paid. The contributions are recognised as employee benefit expense when they are due.

Goodwill

Goodwill arising on consolidation represents the excess of the cost of acquisitions over the Group's interest in the fair value of the identifiable assets and liabilities of the acquired entities at the date of acquisition.

Goodwill is recognised as an asset and is assessed for impairment at least annually. Any impairment is recognised immediately in the income statement and is not subsequently reversed.

Upon disposal of a subsidiary the attributable goodwill is included in the calculation of the profit or loss arising on disposal.

Taxation

The tax charge comprises current tax payable and the movement on deferred tax assets.

The current tax payable is provided on taxable profits using tax rates enacted or substantively enacted at the balance sheet date. 

Deferred tax is recognised in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. 

Deferred tax is recognised at tax rates that are enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled. 

Deferred tax assets are recognised to the extent that it is more likely than not that future taxable profits will be available against which the temporary differences can be utilised.

Deferred tax liabilities on net earnings in overseas subsidiaries are provided only to the extent that at the balance sheet date it is probable that dividends will be remitted to the UK.

Property, plant and equipment 

Property, plant and equipment are stated at the lower of cost less accumulated depreciation and recoverable amount. Depreciation is calculated so as to write off the cost of property, plant and equipment less any residual value over their estimated useful economic lives by equal annual instalments at the following rates:

Leasehold improvements	Remaining period of the lease
Plant, fixtures and equipment	10% - 33%
Freehold property	2% - 5%

Land is not depreciated.

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. Asset carrying values are written down immediately to the estimated recoverable amount where the estimated recoverable amount is less than the carrying value.

Operating leases

Rentals payable under operating leases are charged to the income statement on a straight-line basis over the life of the lease.

The value of any lease incentives received on leasehold properties is recognised as deferred income and released to the income statement on a straight-line basis over the life of the lease.

Inventories

Inventories and work in progress are valued at the lower of cost and net realisable value. Cost comprises the cost of direct materials and labour and an appropriate proportion of overheads. Net realisable value is the value at which inventories and work in progress can be realised in the ordinary course of business.

 

            Foreign currencies

Transactions denominated in foreign currencies are translated at the exchange rates at the date of the transaction. Foreign exchange gains and losses arising from such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement.

The results and financial position of subsidiaries which have a functional currency other than Sterling are translated as follows:

-	assets and liabilities for each balance sheet presented are translated at the closing rate at the date of the balance sheet;
-	income and expenses for each income statement presented are translated at weighted average exchange rates;
-	all resulting exchange differences are recognised as a separate component of equity until the disposal of the relevant subsidiary when they are recycled to the income statement.

Financial instruments

a.    Trade receivables and payables

Trade receivables are recorded at their nominal amount less an allowance for any doubtful debts. Trade payables are held at their nominal value.

b.    Derivative financial instruments

The Group uses derivative financial instruments, in particular forward currency contracts, to manage the financial risks associated with the Group's underlying business activities and the financing of those activities. Such financial instruments are initially recorded at fair value and are thereafter revalued to fair value at each balance sheet date. The Group does not enter into speculative currency contracts. 

Gains or losses on derivative financial instruments that are designated as effective hedges against future cash flows are recognised directly in equity ('hedge accounting'). Any gain or loss relating to an ineffective hedge or a derivative financial instrument that does not qualify for hedge accounting is immediately recognised in the income statement, and where material as an exceptional item. 

Where a hedged commitment results in the recognition of an asset or a liability, the gain or loss on the hedge previously recognised in equity is thereafter included in the initial measurement of the asset or liability. For hedges that do not result in the recognition of an asset or liability, amounts deferred in equity are recognised in the income statement in the same period in which the hedged commitment affects profit and loss. 

Hedge accounting ceases in respect of a financial instrument when it expires or is sold, terminated or exercised, or no longer qualifies for hedge accounting. The cumulative gain or loss relating to the instrument that has previously been recognised in equity is retained in equity until the hedged transaction occurs.

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and short term deposits. Bank overdrafts that are repayable on demand and form an integral part of the Group's cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.

Provisions

Provisions are recognised when either a legal or constructive obligation, as a result of a past event, exists at the balance sheet date and where the likely outcome and the amount of the obligation can be measured with reasonable certainty. Provisions are discounted at an appropriate discount rate.

 
            Impairments

Impairments are made against Group assets under the following conditions:

Goodwill

Goodwill is allocated to the Group's cash generating units (CGU's) and the recoverable amount of each CGU is determined based on a value-in-use calculation where appropriate.

Property, plant and equipment

Property, plant and equipment is tested when circumstances indicate a possible impairment. In those circumstances a value-in-use calculation is performed.

Assumptions used in the calculations for Goodwill and Property, plant and equipment are based on performance and the latest financial plans approved by the board. If the recoverable amount of a CGU is less than the carrying value of all assets allocated to that CGU, an impairment is recognised. 

Goodwill is the first asset class to be impaired, followed by property, plant and equipment.

Critical estimates and judgements

The preparation of financial statements under IFRS requires management to make estimates that affect the reported amounts of assets and liabilities, income and expenses. These estimates are based on historical experience and various other factors that are believed to be reasonable in the particular circumstance. Actual results may differ from these estimates.

The Group's critical judgement areas relate to the recognition of pension scheme assets; legacy and other business provisions, including industrial diseases, together with the assessment of the highly probable nature of cashflow hedges as follows:

(a) Pension scheme assets - Jacques Vert (2006) pension scheme

Any repayment to the Group of the surplus held within the scheme at 25 April 2009 is at the discretion of the pension scheme Trustee. It is currently considered that no repayment will be made to the Group in the future.

(b) Legacy and other business provisions

The level of provisions held against legacy and current activities is assessed with reference to payments made during the period; expectations of future payments and receipts and, where relevant, to independent advice.

(c) Cash flow hedges

Cash flow hedges are tested for effectiveness based on estimated currency requirements assuming a substantially consistent supplier base. 

- ENDS -

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