FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Special Report of Foreign Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
The Securities and Exchange Act of 1934
For the date of April 18, 2007
SIGNET GROUP plc
(Translation of registrant's name into English)
15 Golden Square
London W1F 9JG
England
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40F.
Form 20-F X Form 40-F
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-
Signet Group plc (LSE: SIG and NYSE: SIG) Embargoed until 12.30 p.m. (BST)
Preliminary results for the 53 weeks ended 3 February 2007 18 April 2007
Signet Results Ahead of Expectations
Dividend up 9.1%
Reported Constant Exchange Rate
53 weeks 52 weeks(1)
- Group total sales: £1,893.2m up 8.0% up 9.9%
- Group like for like sales up 4.8% up 5.4%
- Group profit before tax: £213.2m up 6.4% up 9.3%
- Earnings per share: 8.2p up 9.3% up 11.0%
- Total annual dividend per share:3.6p(2) up 9.1%
(1) See note 11 for reconciliation. (2) Final dividend proposed in US dollars,
see note 8 for translation assumption.
Divisional Highlights
- US:- Increased leading speciality jewellery market share to 8.8%
- Kay strengthened its No.1 speciality brand position with sales
up 15.2% to $1,486.7m
- Jared sales up 24.4% to $664.4m, national cable television advertising
commenced
- Space growth of 11%, part of $1 billion five year new store investment
programme
- UK:- Operating profit up 12.0% to £55.0 million, benefiting from cost
realignment completed in early 2006
- Diamonds now 30% of product mix, up from 23% in 2001/02
- 44% of sales from reformatted stores
Terry Burman, Group Chief Executive, commented: "The Group continued to make
good progress. The US business again increased its share of the $63 billion US
jewellery market and significantly outperformed its main competition. The UK
division reported a solid increase in profits in a challenging trading
environment.
Since the start of the financial year the trading environment in the US appears
to have weakened somewhat. As a result, in the year to date, the US business has
experienced a low single digit like for like sales increase on an underlying
basis, after taking into account the adverse weather disruption over Valentine's
Day and the benefit of the timing of promotional events. The strong competitive
advantages of the division means it continues to be well positioned to gain
further market share. In the UK, like for like sales growth has strengthened a
little from the performance of last year, although the marketplace remains
challenging."
Enquiries: Terry Burman, Group Chief Executive +44 (0) 20 7317 9700
Walker Boyd, Group Finance Director +44 (0) 20 7317 9700
Tom Buchanan, Brunswick +44 (0) 20 7404 5959
Pamela Small, Brunswick +44 (0) 20 7404 5959
Signet operated 1,889 speciality retail jewellery stores at 3 February 2007;
these included 1,308 stores in the US, where the Group trades as "Kay Jewelers",
"Jared The Galleria Of Jewelry", and under a number of regional names. At that
date Signet operated 581 stores in the UK, where the Group trades as "H.Samuel",
"Ernest Jones", and "Leslie Davis". Further information on Signet is available
at www.signetgroupplc.com. See also www.kay.com, www.jared.com,
www.hsamuel.co.uk and www.ernestjones.co.uk.
Chairman's Statement
Group performance
I am pleased to report that the Group achieved record profits in 2006/07.
Financial highlights of the year included:
- Sales up 8.0% to £1,893.2 million;
- Profit before tax up 6.4% to £213.2 million; and
- Earnings per share up 9.3% to 8.2p.
The US division substantially strengthened its position as the largest
speciality retail jeweller in the US, continued to achieve sector-leading
operating ratios and increased space by 11%, a little above the top end of its
target range. Kay built further on its position as the leading US speciality
jeweller by sales and Jared is now the number four brand in the sector. In a
trading environment that continued to be challenging, the UK division achieved a
solid increase in operating profit and an improved operating margin.
During 2006/07 the Group again made good progress towards its objectives, which
are to:
- continue to achieve sector leading performance standards on both sides
of the Atlantic;
- increase store productivity in the US and the UK;
- grow new store space in the US; and
- maintain a strong balance sheet.
Signet has been a member of the FTSE4Good Index since it was established, and
endeavours to meet its changing criteria. During the year the Group continued to
support the activities of the Council for Responsible Jewellery Practices and
the World Diamond Council, as we believe this to be the best and most effective
way to achieve improvements in the sector's supply chain with regard to social,
ethical and environmental issues. The Group has recently written to most of its
suppliers of diamond and gold jewellery highlighting the importance we place on
a responsibly managed supply chain and reminding them of the expectations we
have of them. The Group also takes its environmental responsibilities seriously
and seeks opportunites to improve its performance.
The Group's distribution policy is regularly reviewed by the Board taking into
account earnings, cash flow, gearing and the needs of the business. On 5
February 2007 the redenomination of the Company's share capital became
effective, therefore the final dividend will be declared in US dollars. The
Board is pleased to recommend a final dividend of 6.317 cents per share (2005/
06: 2.8875p). Based on the exchange rate on 17 April 2007, this represents a
total dividend for the year of 3.6p, an increase of 9.1% (see Financial review
and note 8). A £50 million share repurchase programme was announced in July 2006
and this has now been substantially completed.
Current trading
Since the start of the financial year the trading environment in the US appears
to have weakened somewhat. As a result, in the year to date, the US business has
experienced a low single digit like for like sales increase on an underlying
basis, after taking into account the adverse weather disruption over Valentine's
Day and the benefit of the timing of promotional events. The strong competitive
advantages of the division means it continues to be well positioned to gain
further market share. The US bad debt performance remains comfortably within the
range of the last ten years. In the UK, like for like sales growth has
strengthened a little from the performance of last year, although the
marketplace remains challenging. On both sides of the Atlantic, a tight control
of costs has been maintained.
People
I would like to thank our staff and management for their invaluable contribution
to the continued success of the Group. In particular, James McAdam who stood
down as Chairman in June 2006, deserves special thanks for his long and
invaluable service to the Group. I am pleased to report that he has recovered
from the illness that prevented him from attending the 2006 annual general
meeting.
Chief Executive's Review
Group Results
In the 53 weeks to 3 February 2007 total sales rose by 11.5% at constant
exchange rates (see note 11); the reported increase was 8.0% to £1,893.2 million
(2005/06: £1,752.3 million). Total sales were adversely impacted by 3.5% due to
the movement in the average US dollar / pound sterling exchange rate from $1.80
/ £1 to $1.88 / £1 but benefited from the 53rd week which contributed 1.6% to
Group sales. Like for like sales advanced by 4.8%, with US sales negatively
affected by a change in timing of a Valentine's Day 2007 promotional event which
moved into the first week of 2007/08. On a 52 week basis to 27 January 2007,
which was not affected by this promotional timing difference, like for like
sales were up by 5.4%.
Operating profit increased by 10.1% at constant exchange rates (see note 11);
the reported increase was 6.3% to £221.4 million (2005/06: £208.2 million). The
53rd week contributed £1.8 million to Group operating profit. Operating margin
was 11.7% (2005/06: 11.9%). Profit before tax was up by 10.1% at constant
exchange rates (see note 11) and by 6.4% on a reported basis to £213.2 million
(2005/06: £200.4 million), the 53rd week contributing £1.5 million. The tax rate
was 33.6% (2005/06: 34.7%). Earnings per share rose by 12.3% at constant
exchange rates (see note 11) and by 9.3% on a reported basis to 8.2p (2005/06:
7.5p), the 53rd week contributing 0.1p.
The balance sheet remains strong and gearing (net debt to total equity) at 3
February 2007 was 13.4% (28 January 2006: 11.2%). Total investment in fixed and
working capital during the year was £158.5 million (2005/06: £147.1 million),
predominantly to fund the record number of new stores opened. The return on
capital employed ("ROCE") improved to 22.8% (2005/06: 22.4%).
US division
During 2006/07 significant progress was made in implementing the division's
strategy of:
- gaining further profitable market share;
- achieving above sector average like for like sales growth; and
- increasing new store space by 8% - 10% per annum.
Total dollar sales increased by 14.9% (13.2% on a 52 week basis, see note 11).
The division significantly outperformed the total US jewellery market which grew
by 7.1% to $63.1 billion in calendar 2006 (2005: $58.9 billion, Source: US
Department of Commerce); its share of the speciality jewellery market was 8.8%
(2005: 8.2%). The division's like for like sales rose by 6.2% (on a 52 week
basis to 27 January 2007, which was not impacted by the change in timing of a
Valentine's Day promotional event, like for like sales were up 7.0%).
Operating profit rose by 8.6% at constant exchange rates (see note 11). On a
reported basis operating profit increased by 4.0% to £173.8 million (2005/06:
£167.1 million). The commencement of television advertising for Valentine's Day
2007 in the last week of 2006/07, with the related sales benefit occurring in
2007/08, meant that the 53rd week did not contribute to operating profit.
As part of the $1 billion five year expansion programme announced last year, new
store space grew by 11% (2005/06: 9%), slightly above the 8% - 10% target range.
This was the largest annual increase since the acquisition of Marks & Morgan in
2000/01. Compound annual growth in new store space over the last five years has
been 8%. While Jared accounted for the majority of the space growth over this
period, Kay has increased its store base by almost 25% since 3 February 2002.
Over the longer term the US division has the potential to almost double store
space within the three existing formats of Jared, Kay and the regional brands.
Where appropriate, acceleration of the US division's growth through acquisitions
will be considered. However, as always, the Group's strict operational and
financial criteria will be applied to any such opportunities.
UK division
The UK division's strategy remains to:
- improve store productivity and operating margin;
- lift the average transaction value; and
- increase diamond participation in the sales mix.
Whilst the retail environment remained challenging, UK operating profit rose
12.0% to £55.0 million (2005/06: £49.1 million), the 53rd week contributing £1.8
million. Like for like sales were up 1.2%. The division achieved a healthy
operating margin of 11.4%, a good ROCE of 32.7% and strong cash flow.
Notwithstanding the demanding trading conditions, the average transaction value
was up by 10.5% to £63 (2005/06: £57) and diamond sales increased to 30% (2005/
06: 29%) of the product mix.
In 2006/07, there was a significant initiative to further differentiate the
division's brands within the marketplace by implementing a greater focus on
jewellery collections, exclusive ranges and the assortment of diamond
merchandise offered. The business continued to emphasise customer service with
the launch of major new staff training programmes. The development of television
advertising continued with H.Samuel moving to national coverage, and Ernest
Jones maintaining a similar level to the prior year. While the number of stores
remodelled during the year was fewer than in 2005/06, it was in line with the
normal refurbishment cycle. In implementing these initiatives the division
continued to draw on the US business' best practice and experience.
Business Reviews
US division (75% of Group sales)
Details of the US division's results are set out below:
Change at
constant Like for
2006/07 2005/06 Change exchange like
53 weeks 52 weeks reported rates(1) change
£m £m % % %
Sales 1,410.7 1,282.7 10.0(2) 14.9 6.2(3)
Operating profit 173.8 167.1 4.0(2) 8.6
Operating margin 12.3% 13.0%
ROCE 21.5% 22.4%
(1) See note 11 for reconciliation of impact of exchange rates.
(2) The 53rd week contributed 1.7% to sales and had no impact on operating
profit, see note 11.
(3) Like for like sales for the 52 weeks to 27 January, which were not impacted
by the change in timing of a Valentine's Day promotion were 7.0%.
Financial performance
The operating margin of 12.3% remained within the range of the last five years
(2005/06: 13.0%). Expense leverage of 70 basis points from like for like sales
growth partly offset the impact of additional immature space of 50 basis points
as well as the adverse effect of both the movement in gross margin percentage of
70 basis points and the 53rd week of 20 basis points.
Expense leverage was curtailed by an above normal level of increase in
healthcare costs, freight charges and property taxes. The bad debt charge was
2.8% of total sales (2005/06: 3.0%). The proportion of sales through the
in-house credit card was 51.7% (2005/06: 51.6%).
The movement in gross margin percentage reflected the adverse impact of higher
commodity costs, changes in mix and a slightly more competitive pricing
environment in the fourth quarter. In 2006/07 gold prices increased
significantly, however, diamond prices were broadly stable. The variance in mix
reflected the growth of Jared and an increase in diamond participation, both of
which are driving like for like sales growth and expense leverage. All of these
factors were partly offset by supply chain initiatives, and selective pricing
changes predominantly implemented in the second quarter of 2006/07.
ROCE was 21.5% (2005/06: 22.4%) reflecting the additional investment in an 11%
increase in space. The proportion of stores under six years old in 2006/07 was
32% compared to 22% in 2001/02 (treating the acquired Marks & Morgan sites as
existing stores). The higher proportion of immature store space constrains the
ROCE in the short term, but increases operating profit and drives future growth.
Store operations
During 2006/07 the first phase of an enhanced training system, to develop
customer service skills and product knowledge further, was introduced into the
stores; the systems for training jewellery repair staff were improved; and a
customer satisfaction index was included in the monthly performance indicators
for each store. Store staff also received additional training on supply chain
issues such as conflict diamonds and the environmental impact of gold mining.
Merchandising
Average unit selling prices in mall stores and Jared increased by 4% and 3%
respectively, reflecting selective changes in retail prices as a result of
increased commodity costs. This was partly offset by the rapid growth of the
heavily promoted "Circle" and "Journey" merchandise, the latter being a new
range launched in conjunction with a marketing campaign by the Diamond Trading
Company. The right hand diamond ring selection was increased and the upper end
of the diamond collection continued to be successfully developed. In Jared, the
"Peerless Diamond" was introduced into all stores and the luxury watch ranges
were further extended. The rough diamond sourcing trial, the objective of which
is to secure additional reliable and consistent supplies of diamonds at a lower
cost, was increased over the prior year and will be expanded further in 2007/08.
Marketing
Annual gross marketing spend amounted to 7.0% of sales (2005/06: 6.7%). Dollar
marketing expenditure increased by 21% reflecting the growth in total sales, the
higher proportion of sales being generated by Jared and the impact of the
commencement of television advertising for Valentine's Day 2007 in the 53rd
week. Further leverage of the "Every kiss begins with Kay" advertising campaign
continued to help drive sales performance. The JB Robinson television
advertising test was expanded to a further three markets; the other markets with
regional brands continued to be supported by radio advertising. National cable
television advertising was used by Jared stores for the first time during the
holiday period and the "He went to Jared" campaign was further developed. It is
expected that Jared will have sufficient scale to move to national network
television advertising in the fourth quarter of 2007/08.
Kay Jewelers
Kay sales increased by 15.2% to $1,486.7 million (2005/06: $1,290.1 million).
During the year a further net 51 stores were opened, bringing the total to 832.
Following a successful three year trial of 31 sites, the roll-out of Kay stores
in open-air retail centres began with 21 opened in 2006/07; a further 35 - 40
are planned for 2007/08. Due to the division's strict real estate criteria, no
new stores in metropolitan locations were opened in 2006/07; the three
metropolitan locations opened in 2005/06 traded satisfactorily. The test of Kay
stores in outlet centres started with four additional sites. A trial of a mall
superstore format, drawing on the experience of Jared and the metropolitan store
concept, was commenced in 11 locations during 2006/07. In September 2006 an
e-commerce facility was successfully launched on the Kay website and will be
developed further in 2007/08.
Regional brands
341 mall stores traded under strong regional brand names at 3 February 2007 with
sales up 3.4% to $501.0 million (2006/07: $484.5 million). There are now 114 JB
Robinson locations; 19 stores were rebranded to that format during 2006/07 as
part of the test of local television advertising. The regional brands continue
to significantly outperform the speciality jewellery sector average sales per
store.
Jared The Galleria Of Jewelry
Jared sales were up by 24.4% to $664.4 million (2005/06: $534.2 million); the
portfolio of 135 stores, equivalent in space terms to about 550 mall stores,
increased by 25 during 2006/07.
The Jared concept again accounted for the majority of the Group's space growth.
The chain is immature with only 41% of stores having traded for five or more
years. In their fifth year of trading the average sales of these stores was some
$5.6 million, above the target level set at the time of the original investment.
The average sales per store for those Jared locations that have been open for
six years or more was $6.8 million in 2006/07. Jared's average store
contribution rate was broadly similar to that of the division as a whole.
In 2006/07, Jared entered nine new markets, the largest being Los Angeles.
Representation was expanded in eight cities, including Boston, Chicago,
Baltimore and Denver. It is planned to enter the major centres of New York and
Philadelphia in 2007/08.
Real estate
The table below sets out the store numbers, net new openings and the potential
number of stores by chain:
Planned net
28 January Net openings 3 February openings
2006 2006/07 2007 2007/ 08 Potential
Store numbers
------------------------------------------------------------------
Kay
Mall 746 26 772 25-30 850+
Off-mall 31 21 52 35-40 500+
Outlet 1 4 5 5 50-100
Metropolitan 3 nil 3 nil 30+
------------------------------------------------------------------
781 51 832 65-75 1,430+
Regionals 330 11 341 5 c.700
Jared 110 25 135 20-25 250+
------------------------------------------------------------------
Total 1,221 87 1,308 90-105 2,380+
------------------------------------------------------------------
Investment
In 2006/07 fixed capital investment was $101.1 million (2005/06: $88.4 million),
including some $57 million related to new store space. In 2007/08 capital
expenditure is planned to rise to about $135 million, including circa $65
million related to new space. The investment in working capital, that is
inventory and receivables, associated with space growth amounted to some $119
million in 2006/07 and is expected to be higher in 2007/08. 59 stores were
refurbished or relocated (2005/06: 57) with some 77 planned for 2007/08. During
2006/07, a two year project to increase the capacity of the distribution centre
was completed on schedule.
Recent investment in the store portfolio, both fixed and working capital, is set
out below:
2006/07 2005/06 2004/05
$m $m $m
---------------------------------
New stores
Fixed capital investment 57 45 27
Working capital investment 119 96 76
---------------------------------
Total investment 176 141 103
Other store fixed capital investment 30 28 29
---------------------------------
Total store investment 206 169 132
---------------------------------
UK division (25% of Group sales)
Details of the UK division's results are set out below:
Change Like for
2006/07 2005/06 like
53 weeks 52 weeks change
£m £m % %
Sales: H.Samuel 260.8 256.2 1.8 0.7
Ernest Jones 217.6 208.5 4.4 1.7
Other 4.1 4.9 (16.3)
-----------------------------
Total 482.5 469.6 2.7(1) 1.2
-----------------------------
Operating profit 55.0(1) 49.1 12.0(1)
Operating margin 11.4% 10.5%
ROCE 32.7% 26.6%
(1) The 53rd week contributed 1.5% to sales and 3.6% to operating profit, that
is £1.8 million. See note 11 for reconciliation.
Financial performance
The UK division's operating margin was 11.4% (2005/06: 10.5%) reflecting stable
sales, tight management of gross margin and strict control of costs. Gross
margin percentage increased by 30 basis points, the benefit from advantageous
hedging positions and selective price increases more than offsetting higher
commodity costs. Actions taken to reduce costs in early 2006 benefited the
business throughout 2006/07 and resulted in a 40 basis point improvement to
operating margin; the impact of the 53rd week was favourable by 20 basis points.
ROCE improved to 32.7% (2005/06: 26.6%), reflecting the high leverage of capital
employed in the UK division.
Store operations
An improved customer service training programme called Amazing Customer
Experience ("ACE") was introduced in 2006/07 and will be developed further in
2007/08. Training for all tiers of store operations management took place to
support the introduction of the ACE programme and to build general management
skills. Opportunities for enhanced store procedures and employment practices
were identified through a staff opinion survey. Store staff also received
additional training on supply chain issues such as conflict diamonds and the
environmental impact of gold mining.
Merchandising
The division focused on the development of jewellery collections and exclusive
merchandise to further differentiate its brands in the marketplace. For example,
in H.Samuel the Forever Diamond selection was increased, the Soulmate and Cafe
diamond collections were introduced and there was a range of exclusive watches
from Rotary. In Ernest Jones the Leo Diamond range was further expanded, the
Vintage and Nature collections launched, a selection of "Journey" pieces tested
and exclusive watches from manufacturers such as Emporio Armani stocked. Since
2001/02 diamond participation has risen from 17% to 23% in H.Samuel and from 33%
to 38% in Ernest Jones. The average unit selling price in H.Samuel was £42 (2005
/06: £38) and in Ernest Jones £163 (2005/06: £148); during the last five years
average transaction values have increased by 35.4% and 36.9% respectively.
Marketing
For Christmas 2006 television advertising was successfully expanded to national
coverage for H.Samuel and regional support continued for Ernest Jones at a
similar level to 2005/06. H.Samuel was also supported by national newspaper
advertising during December 2006. Gross marketing expenditure represented 3.1%
of sales in 2006/07 (2005/06: 3.2%). In September 2006 an e-commerce capability
was launched on the Ernest Jones website as a complement to store-based customer
service. The H.Samuel website is the most visited among speciality jewellery
retailers according to Hitwise, while that of Ernest Jones is the third most
visited; the e-commerce initiatives are meeting their investment targets.
Real estate and investment
During 2006/07, 28 stores were refurbished or relocated, including two in the
traditional design. At the year end 255 stores, mostly H.Samuel, traded in the
modernised format. This type of store accounted for 44% of the UK division's
sales in 2006/07. During the year 11 H.Samuel and two Ernest Jones stores were
closed, and one Ernest Jones opened. At the year end there were 581 stores (375
H.Samuel and 206 Ernest Jones). The level of store capital expenditure was £8
million (2005/06: £22 million), significantly less than the prior year
reflecting the phasing of the normal store refurbishment cycle and only one new
store opening. The level of store refit is planned to be at a similar level in
2007/08, with some design enhancements to the Ernest Jones format being tested.
Store capital expenditure is expected to increase to some £13 million largely
reflecting a planned higher level of investment in relocations and new stores.
Recent investment in the store portfolio is set out below:
2006/07 2005/06 2004/05
-------------------------------
Store refurbishments and relocations 28 78 81
New H.Samuel stores - 3 2
New Ernest Jones stores 1 5 7
Store fixed capital investment £8m £22m £23m
Group Financial Review
Operating margin and ROCE
Operating margin (operating profit to sales ratio) was 11.7% (2005/06: 11.9%)
and ROCE was 22.8% (2005/06: 22.4%). Capital employed is based on the average of
the monthly balance sheets and at 3 February 2007 included US in-house credit
card debtors amounting to £395.6 million (28 January 2006: £382.7 million).
Group and financing costs
Group central costs amounted to £7.4 million (2005/06: £8.0 million including a
property provision of £0.7 million). Net financing costs amounted to £8.2
million (2005/06: £7.8 million), the increase being primarily due to the
transition from a securitised borrowing facility to the new private placement
note facility and incremental borrowing as a result of the share buy back
programme offset by the movement in the US dollar / pound sterling exchange
rate.
Taxation
The charge of £71.7 million (2005/06: £69.6 million) represents an effective tax
rate of 33.6% (2005/06: 34.7%). The rate is lower than previously indicated due
to the tax treatment of share options and the favourable resolution of certain
prior year tax positions. It is anticipated that, subject to the outcome of
various uncertain tax positions, the Group's effective tax rate in 2007/08 may
increase to a level of up to 37%, this being an approximation to the underlying
effective tax rate for the Group.
Profit for the financial period
Profit for the 53 weeks ended 3 February 2007 was £141.5 million (2005/06:
£130.8 million).
Impact of 53rd week
2006/07 was a 53 week financial year. The extra week increased total sales by
1.6% (1.7% in the US and 1.5% in the UK) and contributed £1.8 million to
operating profit (nil effect in the US and £1.8 million in the UK). Net of
additional interest costs of £0.3 million, profit before tax benefited by £1.5
million.
Purchase of own shares
During 2006/07 the Group commenced a share buy back programme with 30.3 million
shares being purchased for £33.7 million. A further 11.4 million shares have
been purchased for £13.8 million since the start of the 2007/08 financial year,
substantially completing the £50 million target announced in July 2006.
Liquidity and capital resources
Cash generated from operations amounted to £182.2 million (2005/06: £188.1
million) after funding a working capital increase of £92.3 million (2005/06:
£71.2 million), principally as a result of the growth of the US division. It is
anticipated that in 2007/08 there will be a further increase in the level of
working capital investment as a result of planned US store openings. Interest of
£16.7 million (2005/06: £11.4 million) and tax of £69.2 million (2005/06: £64.7
million) were paid. Net cash from operating activities was £96.3 million (2005/
06: £112.0 million).
Group capital expenditure was £66.2 million (2005/06: £75.9 million). The level
of capital expenditure was some 1.3 times (2005/06: 1.6 times) the depreciation
and amortisation charge of £50.3 million (2005/06: £46.2 million). Capital
expenditure in 2007/08 is expected to be £85 million to £95 million, most of
which will be store related. There were disposal proceeds of £2.4 million (2005/
06: £7.5 million). Equity dividends of £57.8 million (2005/06: £52.7 million)
were paid in the year and the net movement in shares outstanding was an outflow
of £29.6 million (2005/06: inflow £1.9 million) reflecting the share buy back
programme. The rise in net debt before exchange adjustments was £45.9 million
(2005/06: £4.8 million), the increase reflecting the higher rate of space growth
in the US and the £33.7 million (2005/06: £2.0 million) purchase of own shares.
In 2007/08 the increase in net debt before exchange adjustments and net movement
in equity capital is expected to be between £35 million and £45 million
reflecting a planned higher level of capital expenditure and an anticipated rise
in tax and dividend payments.
Net debt
Net debt at 3 February 2007 was £118.4 million (28 January 2006: £98.6 million).
Group gearing at the year end was 13.4% (28 January 2006: 11.2%) and the fixed
charge cover was unchanged at 2.0 times.
Pensions
The Group has one defined benefit plan (the "Group Scheme") for UK-based staff,
which was closed to new members in 2004. All other pension arrangements consist
of defined contribution plans. The IAS 19 present value of obligations of the
Group Scheme decreased last year by £10.9 million to £130.9 million and the
market value of the Group Scheme's assets increased by £6.5 million to £132.8
million; as a result the balance sheet at 3 February 2007 reflected a net
pension asset of £1.3 million (28 January 2006: net pension liability of £10.9
million).
The triennial valuation of the Group Scheme was carried out as at 5 April 2006.
There was a surplus and as a result no additional contributions were required as
part of a recovery plan to eliminate a deficit. The cash contribution to the
fund in 2006/07 was £3.6 million (2005/06: £4.3 million) and the Group expects
to contribute some £3.9 million in 2007/08.
Dollar reporting and payment of dividends
Following the approval of shareholders and the High Court, the redenomination of
the Company's share capital became effective on 5 February 2007. The Company's
functional currency is now US dollars and in the future the Group will report in
US dollars. The Company will continue to be registered and have its headquarters
in England, and will maintain its primary listing on the London Stock Exchange
with the shares quoted in pounds sterling. It will also continue to maintain a
listing on the New York Stock Exchange, with the American Depositary Receipts
quoted in US dollars. A US dollar presentation of the results will shortly be
available on the Signet website www.signetgroupplc.com.
Following the redenomination of the share capital the final dividend will be
declared in US dollars. A letter will be sent today to all shareholders on the
register asking whether they wish to receive this, and future dividends, in US
dollars or pounds sterling. Shareholders will in future be able to change their
election by contacting the Company's registrar. For shareholders who wish to
receive the proposed final dividend in pounds sterling, the actual amount will
be calculated using the exchange rate as derived from Reuters at 4.00 p.m. on
the record date of 1 June 2007.
Summary of Fourth Quarter Results (Unaudited)
14 weeks 13 weeks
ended ended
3 February 28 January Like for like
2007 2006 change
£m £m %
Sales
UK 204.1 195.8 +1.5
US 550.3 523.1 +5.4
---------------------------
754.4 718.9 +4.2
---------------------------
Operating profit
UK - Trading 59.5 54.0
- Group central costs (1.8) (3.3)
---------------------------
57.7 50.7
US 95.0 96.5
---------------------------
Total operating profit 152.7 147.2
Net financing costs (1.6) (1.9)
---------------------------
Profit before tax 151.1 145.3
Taxation (49.6) (50.6)
Profit for the period 101.5 94.7
---------------------------
EPS - basic 5.9p 5.4p
- diluted 5.9p 5.4p
The Board of Directors approved this statement of preliminary results on 18
April 2007.
Investor relations programme details
There will be an analysts' presentation and conference call today at 2.00 p.m.
BST (9.00 a.m. EDT and 6.00 a.m. Pacific Time) and a simultaneous audio and
video webcast at www.signetgroupplc.com. To help ensure the conference call
begins in a timely manner, could all participants please dial in 5 to 10 minutes
prior to the scheduled start time. The call details are:
European dial-in: +44 (0) 20 7138 0816
US dial-in: +1 718 354 1171
European 48hr. replay: +44 (0) 20 7806 1970 Access code: 1908484#
US 48hr. replay: +1 718 354 1112 Access code: 1908484#
Virtual Store Tour
A virtual store tour of the Group's major retail formats is available at
www.signetgroupplc.com.
Investor Day and Store Tour, Akron, Ohio, Wednesday 9 May 2007
It is intended to hold an Investor Day and Store Tour for professional investors
in Akron, Ohio on Wednesday 9 May 2007.
First quarter sales
First quarter sales figures are expected to be announced on 10 May 2007.
This release includes statements which are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements, based upon management's beliefs as well as on assumptions made by
and data currently available to management, appear in a number of places
throughout this release and include statements regarding, among other things,
our results of operation, financial condition, liquidity, prospects, growth,
strategies and the industry in which the Group operates. Our use of the words
"expects," "intends," "anticipates," "estimates," "may," "forecast,"
"objective," "plan" or "target," and other similar expressions are intended to
identify forward-looking statements. These forward-looking statements are not
guarantees of future performance and are subject to a number of risks and
uncertainties, including but not limited to general economic conditions, the
merchandising, pricing and inventory policies followed by the Group, the
reputation of the Group, the level of competition in the jewellery sector, the
price and availability of diamonds, gold and other precious metals, seasonality
of the Group's business and financial market risk.
For a discussion of these and other risks and uncertainties which could cause
actual results to differ materially, see the "Risk and Other Factors" section of
the Company's 2005/06 Annual Report on Form 20-F filed with the U.S. Securities
and Exchange Commission on May 4, 2006 and other filings made by the Company
with the Commission. Actual results may differ materially from those anticipated
in such forward-looking statements even if experience or future changes make it
clear that any projected results expressed or implied therein may not be
realised. The Company undertakes no obligation to update or revise any
forward-looking statements to reflect subsequent events or circumstances.
SIGNET GROUP plc
Consolidated income statement
for the 53 weeks ended 3 February 2007
53 weeks 52 weeks
ended ended
3 February 28 January
2007 2006 Notes
---------------------------- -------- -------- ------
£m £m
---------------------------- -------- -------- ------
Sales 1,893.2 1,752.3 2,11
Cost of sales (1,644.9) (1,516.3)
---------------------------- -------- -------- ------
Gross profit 248.3 236.0
Administrative expenses (75.6) (74.1)
Other operating income 48.7 46.3 3
---------------------------- -------- -------- ------
Operating profit 221.4 208.2 2,11
Finance expense (18.2) (11.4) 4
Finance income 10.0 3.6 4
---------------------------- -------- -------- ------
Profit before tax 213.2 200.4 11
Taxation - UK (14.8) (12.9) 5
- US (56.9) (56.7) 5
---------------------------- -------- -------- ------
Profit for the financial period 141.5 130.8 11
---------------------------- -------- -------- ------
---------------------------- -------- -------- ------
Earnings per share - basic 8.2p 7.5p 7,11
- diluted 8.2p 7.5p 7,11
---------------------------- -------- -------- ------
All of the above relate to continuing activities.
Consolidated balance sheet
at 3 February 2007
3 February 28 January
2007 2006 Notes
------------------------------ ------- ------- ------
£m £m
------------------------------ ------- ------- ------
Assets:
Non-current assets
Intangible assets 23.5 22.9
Property, plant and equipment 246.1 253.8
Other receivables 14.8 14.3
Retirement benefit asset 1.9 -
Deferred tax assets 14.7 17.4
------------------------------ ------- ------- ------
301.0 308.4
------------------------------ ------- ------- ------
Current assets
Inventories 685.6 679.7
Trade and other receivables 441.2 430.4
Cash and cash equivalents 77.3 52.5
------------------------------ ------- ------- ------
1,204.1 1,162.6
------------------------------ ------- ------- ------
Total assets 1,505.1 1,471.0
------------------------------ ------- ------- ------
Liabilities:
Current liabilities
Borrowings due in less than one
year (2.8) (151.1)
Trade and other payables (199.2) (204.7)
Deferred income (62.3) (62.8)
Current tax (51.6) (50.2)
------------------------------ ------- ------- ------
(315.9) (468.8)
------------------------------ ------- ------- ------
Non-current liabilities
Borrowings due in more than one
year (192.9) -
Trade and other payables (37.9) (36.0)
Deferred income (67.0) (65.6)
Provisions (5.1) (6.2)
Retirement benefit obligation - (15.5)
------------------------------ ------- ------- ------
(302.9) (123.3)
------------------------------ ------- ------- ------
Total liabilities (618.8) (592.1)
------------------------------ ------- ------- ------
------------------------------ ------- ------- ------
Net assets 886.3 878.9
------------------------------ ------- ------- ------
Equity:
Capital and reserves attributable to
shareholders
Share capital 8.6 8.7
Share premium 77.0 71.7 9
Other reserves 142.3 142.2 9
Retained earnings 658.4 656.3 9
------------------------------ ------- ------- ------
Total equity 886.3 878.9
------------------------------ ------- ------- ------
Consolidated cash flow statement
for the 53 weeks ended 3 February 2007
53 weeks 52 weeks
ended ended
3 February 2007 28 January 2006
----------------------------- -------- --------
£m £m
----------------------------- -------- --------
Cash flows from operating activities:
Profit before tax 213.2 200.4
Adjustments for:
Finance income (10.0) (3.6)
Finance expense 18.2 11.4
Depreciation of property, plant and
equipment 49.0 45.0
Amortisation of intangible assets 1.3 1.2
Other non-cash movements 2.4 4.9
Loss on disposal of property, plant and
equipment 0.4 -
----------------------------- -------- --------
Operating cash flows before movements in
working capital 274.5 259.3
Increase in inventories (62.8) (72.8)
Increase in trade and other receivables (54.0) (51.4)
Increase in payables and deferred income 24.5 53.0
----------------------------- -------- --------
Cash generated from operations 182.2 188.1
Interest paid (16.7) (11.4)
Taxation paid (69.2) (64.7)
----------------------------- -------- --------
Net cash from operating activities 96.3 112.0
----------------------------- -------- --------
Investing activities:
Interest received 9.0 2.4
Purchase of property, plant and equipment (62.2) (70.4)
Purchase of intangible assets (4.0) (5.5)
Proceeds from sale of property, plant and
equipment 2.4 7.5
----------------------------- -------- --------
Cash flows from investing activities (54.8) (66.0)
----------------------------- -------- --------
Financing activities:
Dividends paid (57.8) (52.7)
Proceeds from issue of share capital 4.1 3.9
Purchase of own shares (33.7) (2.0)
Decrease in borrowings falling due within
one year (132.1) (46.6)
Increase in borrowings falling due in more
than one year 204.4 -
----------------------------- -------- --------
Cash flows from financing activities (15.1) (97.4)
----------------------------- -------- --------
Cash and cash equivalents at beginning of
the period 52.5 102.4
Increase/(decrease) in cash and cash
equivalents 26.4 (51.4)
Exchange adjustments (1.6) 1.5
----------------------------- -------- --------
Closing cash and cash equivalents 77.3 52.5
----------------------------- -------- --------
Reconciliation of net cash flow to movement in net debt
Net debt at beginning of period (98.6) (83.5)
Increase/(decrease) in cash and cash equivalents 26.4 (51.4)
Decrease in borrowings falling due within one year 132.1 46.6
Increase in borrowings falling due in more than
one year (204.4) -
Exchange adjustments 26.1 (10.3)
----------------------------- -------- --------
Net debt at end of period (118.4) (98.6)
----------------------------- -------- --------
Net debt represents cash and cash equivalents and borrowings.
Consolidated statement of recognised income and expense
for the 53 weeks ended 3 February 2007
53 weeks 52 weeks
ended ended
3 February 2007 28 January 2006
------------------------------- -------- --------
£m £m
------------------------------- -------- --------
Exchange differences on translation of
foreign operations (63.4) 35.7
Effective portion of fair value movements
on cash flow hedges 0.9 4.9
Actuarial gain/(loss) on retirement
benefit obligation 16.2 (16.3)
Deferred tax on items recognised in equity (5.5) 1.7
------------------------------- -------- --------
Net (expense)/income recognised directly
in equity (51.8) 26.0
Transfer to initial carrying value of
inventory from cash flow hedges 0.8 (2.9)
Profit for the financial period 141.5 130.8
------------------------------- -------- --------
Total recognised income & expense
attributable to shareholders 90.5 153.9
------------------------------- -------- --------
Notes to the financial results
for the 53 weeks ended 3 February 2007
1. Basis of preparation
This financial information has been prepared in accordance with International
Financial Reporting Standards as adopted by the European Union ("Adopted IFRS").
No adjustment would be required if the Group wished to assert compliance with
IFRS as adopted by the International Accounting Standards Board for the
accounting periods presented in this announcement. This financial information
has been prepared on the basis of the accounting policies set out in the Annual
Report & Accounts for the 52 weeks ended 28 January 2006 which are available on
the Group's website www.signetgroupplc.com.
Whilst the financial information included in this preliminary announcement has
been prepared in accordance with Adopted IFRS, this announcement does not itself
contain sufficient information to comply with Adopted IFRS.
2. Segmental information
2007 2006
------------------------------- -------- --------
£m £m
------------------------------- -------- --------
Sales by origin and destination
UK, Channel Islands & Republic of Ireland 482.5 469.6
US 1,410.7 1,282.7
------------------------------- -------- --------
1,893.2 1,752.3
------------------------------- -------- --------
Operating profit/(loss)
UK, Channel Islands & Republic of Ireland
- Trading 55.0 49.1
- Group function (1) (7.4) (8.0)
------------------------------- -------- --------
47.6 41.1
US 173.8 167.1
------------------------------- -------- --------
221.4 208.2
------------------------------- -------- --------
(1) Group function costs for 2006 included a net charge of £0.7 million relating
to property provisions.
The Group's results derive from one business segment - the retailing of
jewellery, watches and associated services.
3. Other operating income
Other operating income comprises interest receivable from the US in-house credit
programme of £49.7 million (2006: £45.5 million) and foreign exchange losses of
£1.0 million (2006: £0.8 million gains).
4. Finance income and expense
2007 2006
------------------------------- -------- --------
£m £m
------------------------------- -------- --------
Interest income 8.9 2.4
Defined benefit pension scheme
- expected return on scheme assets 7.8 6.9
- interest on pension liabilities (6.7) (5.7)
------------------------------- -------- --------
Finance income 10.0 3.6
Finance expense (18.2) (11.4)
------------------------------- -------- --------
Net finance charge (8.2) (7.8)
------------------------------- -------- --------
5. Taxation
2007 2006
------------------------------------ -------- --------
£m £m
------------------------------------ -------- --------
Current taxation - UK 16.3 11.5
- US 56.3 60.0
Deferred taxation - UK (1.5) 1.4
- US 0.6 (3.3)
------------------------------------ -------- --------
71.7 69.6
------------------------------------ -------- --------
6. Translation differences
The exchange rates used for the translation of US dollar transactions and
balances in these accounts are as follows:
2007 2006
------------------------------------ -------- --------
Income statement (average rate) 1.88 1.80
Balance sheet (closing rate) 1.97 1.77
------------------------------------ -------- --------
7. Earnings per share
2007 2006
------------------------------------ -------- --------
Earnings attributable to shareholders (£m) 141.5 130.8
------------------------------------ -------- --------
Basic weighted average number of shares in issue (million) 1,727.6 1,736.6
Dilutive effect of share options (million) 6.8 3.3
------------------------------------ -------- --------
Diluted weighted average number of shares (million) 1,734.4 1,739.9
------------------------------------ -------- --------
Earnings per share - basic 8.2p 7.5p
- diluted 8.2p 7.5p
------------------------------------ -------- --------
The number of shares in issue at 3 February 2007 was 1,713,553,809 (28 January
2006: 1,738,843,382).
8. Dividends
2007 2006
------------------------------------ -------- --------
£m £m
------------------------------------ -------- --------
Final dividend paid of 2.8875p per share (2006: 2.625p) 50.1 45.5
Interim dividend paid of 0.4434p per share (2006: 0.4125p) 7.7 7.2
------------------------------------ -------- --------
57.8 52.7
------------------------------------ -------- --------
During 2006/07, a dividend of 2.8875p per share was paid on 7 July 2006 in
respect of the final dividend declared for the year ended 28 January 2006. An
interim dividend for the year ended 3 February 2007 was also paid on 3 November
2006.
Subject to shareholder approval, a proposed dividend of 6.3170 cents per share
will be paid on 6 July 2007 to those shareholders on the register of members at
close of business on 1 June 2007. This financial information does not reflect
this proposed dividend, which will be treated as an appropriation of retained
earnings in the year ending 2 February 2008.
Following the redenomination of the Company's share capital on 5 February 2007,
dividends are declared in US dollars. A letter will be sent today to all
shareholders on the register asking whether they wish to receive this, and
future dividends, in US dollars or pounds sterling. Shareholders will in future
be able to change their election by contacting the Company's registrars. For
shareholders who wish to receive the proposed final dividend in pounds sterling,
the actual amount will be calculated using the exchange rate as derived from
Reuters at 4.00 p.m. on the record date of 1 June 2007.
Under US tax legislation the rate of US federal income tax on dividends received
by individual US shareholders from qualified foreign corporations is reduced to
15%. Dividends paid by the Group to individual US holders of shares or ADSs
should qualify for this preferential tax treatment. The change in legislation
only applies to individuals subject to US federal income taxes and therefore the
tax position of UK shareholders is unaffected. Individual US holders are urged
to consult their tax advisers regarding the application of this US legislation
to their particular circumstances.
9. Share premium and reserves
Other reserves Retained earnings
-------------------- ------------------------------------------
Purchase
Share Capital Special of own Hedging Translation Retained
premium redemption reserves shares reserve reserve reserve(1) Total
£m £m £m £m £m £m £m £m
--------------- ------- ------ ------ ------ ------ ------ ------ ------
Balance at 29 January 2005 68.0 - 142.2 (7.9) - (118.0) 678.7 763.0
Recognised income and expense:
- profit for the financial period - - - - - - 130.8 130.8
- cash flow hedges (net) - - - - 1.4 - - 1.4
- translation differences - - - - - 33.1 - 33.1
- actuarial loss (net) - - - - - - (11.4) (11.4)
Dividends - - - - - - (52.7) (52.7)
Equity-settled transactions (net) - - - - - - 4.1 4.1
Share options exercised 2.3 - - 1.6 - - - 3.9
Purchase of own shares by ESOT - - - (2.0) - - - (2.0)
Shares issued to ESOTs 1.4 - - - - - (1.4) -
--------------- ------- ------ ------ ------ ------ ------ ------ ------
Balance at 28 January 2006 71.7 - 142.2 (8.3) 1.4 (84.9) 748.1 870.2
Recognised income and expense:
- profit for the financial period - - - - - - 141.5 141.5
- cash flow hedges (net) - - - - 1.2 - - 1.2
- translation differences - - - - - (63.4) - (63.4)
- actuarial gain (net) - - - - - - 11.2 11.2
Dividends - - - - - - (57.8) (57.8)
Equity-settled transactions (net) - - - - - - 4.3 4.3
Share options exercised 4.6 - - 1.1 - - (1.6) 4.1
Purchase of own shares - 0.1 - - - - (33.7) (33.6)
Shares issued to ESOTs 0.7 - - - - - (0.7) -
--------------- ------- ------ ------ ------ ------ ------ ------ ------
Balance at 3 February 2007 77.0 0.1 142.2 (7.2) 2.6 (148.3) 811.3 877.7
--------------- ------- ------ ------ ------ ------ ------ ------ ------
(1) The retained reserve includes the unrealised surplus arising from
revaluing freehold and long leasehold properties of £4.3 million (2005/06: £4.3
million).
10. Accounts
The financial information set out above does not constitute the Company's
statutory accounts for the 53 weeks ended 3 February 2007 or the 52 weeks ended
28 January 2006, but is derived from those accounts. Statutory accounts for the
52 weeks ended 28 January 2006 have been delivered to the Registrar of
Companies, whereas those for the 53 weeks ended 3 February 2007 will be
delivered following the Company's annual general meeting. The auditors have
reported under Section 235 of the Companies Act 1985 on those accounts for each
of those periods; their reports were unqualified and did not contain a statement
under Section 237 (2) or (3) of that Act.
11. Impact of constant exchange rates and 53rd week
The Group has historically used constant exchange rates to compare
period-to-period changes in certain financial data. This is referred to as 'at
constant exchange rates' throughout this release. The Group considers this a
useful measure for analysing and explaining changes and trends in the Group's
results. The impact of the re-calculation of sales, operating profit, profit
before tax, profit for the financial period and earnings per share at constant
exchange rates and the impact of the 53rd week, including a reconciliation to
the Group's GAAP results, is analysed below.
53 weeks ended 3 February 2007
2006/07 2006/07
2005/06 on 52 week 52 week
Growth Impact at Growth at basis at growth at
at of constant constant constant constant
actual exchange exchange exchange Impact exchange exchange
exchange rate rates rates of 53rd rates rates
2006/07 2005/06 rates movement (non-GAAP) (non-GAAP) week (non-GAAP) (non-GAAP)
£m £m % £m £m % £m £m %
Sales by origin and destination:
UK 482.5 469.6 2.7 - 469.6 2.7 (7.3) 475.2 1.2
US 1,410.7 1,282.7 10.0 (54.6) 1,228.1 14.9 (20.8) 1,389.9 13.2
-------------- ------- ------ ----- ------ ------ ------ ------ ------ ------
1,893.2 1,752.3 8.0 (54.6) 1,697.7 11.5 (28.1) 1,865.1 9.9
-------------- ------- ------ ----- ------ ------ ------ ------ ------ ------
Operating profit:
UK - Trading 55.0 49.1 12.0 - 49.1 12.0 (1.8) 53.2 8.4
- Group function (7.4) (8.0) n/a - (8.0) n/a - (7.4) n/a
-------------- ------- ------ ----- ------ ------ ------ ------ ------ ------
47.6 41.1 15.8 - 41.1 15.8 (1.8) 45.8 11.4
US 173.8 167.1 4.0 (7.1) 160.0 8.6 - 173.8 8.6
-------------- ------- ------ ----- ------ ------ ------ ------ ------ ------
221.4 208.2 6.3 (7.1) 201.1 10.1 (1.8) 219.6 9.2
-------------- ------- ------ ----- ------ ------ ------ ------ ------ ------
Profit before tax 213.2 200.4 6.4 (6.7) 193.7 10.1 (1.5) 211.7 9.3
-------------- ------- ------ ----- ------ ------ ------ ------ ------ ------
Profit for the financial period 141.5 130.8 8.2 (4.4) 126.4 11.9 (0.9) 140.6 11.2
-------------- ------- ------ ----- ------ ------ ------ ------ ------ ------
Earnings per share 8.2p 7.5p 9.3 (0.2)p 7.3p 12.3 (0.1)p 8.1p 11.0
-------------- ------- ------ ----- ------ ------ ------ ------ ------ ------
12. Post balance sheet event
On 5 February 2007, the Company redenominated its share capital into US dollars
by way of a reduction in capital and subsequent issue and allotment of new
dollar ordinary shares, which had been approved by shareholders on 12 December
2006 and received Court approval on 31 January 2007.
The nominal value of each dollar denominated ordinary share is 0.9 cent, and
shareholders received one new dollar denominated ordinary share for each
sterling ordinary share held. The new shares have the same rights and
restrictions as the previously issued ordinary shares and the existing share
certificates remain valid.
Additionally, to comply with UK listing requirements, £50,000 of share capital
is required to be held denominated in pounds sterling to which end 50,000
deferred shares of £1 each were allotted and issued, credited to the Company
Secretary of the Company on 5 February 2007. These shares have limited and
deferred rights.
No of shares $m
Authorised at 5 February 2007:
Ordinary shares of 0.9 cent each 5,929,874,019 53.4
Deferred shares of £1 each 50,000 0.1
Allotted, called up and fully paid at 5 February 2007:
Ordinary shares of 0.9 cent each 1,713,533,809 15.4
Deferred shares of £1 each 50,000 0.1
13. Reconciliation of Adopted IFRS to US GAAP
Effect on profit for the financial period of differences between Adopted IFRS
and US GAAP
53 weeks 52 weeks
ended ended
3 February 28 January
2007 2006
----------------------------------- --------- ---------
£m £m
----------------------------------- --------- ---------
Profit for the financial period in
accordance with Adopted IFRS 141.5 130.8
----------------------------------- --------- ---------
Pensions (2.4) (1.8)
Sale and leaseback transactions 0.8 0.8
Returns provisions - (6.0)
Share-based payment (2.4) 4.4
Asset retirement obligations - (1.0)
Taxation 0.1 5.0
----------------------------------- --------- ---------
US GAAP adjustments before change in
accounting principle (3.9) 1.4
Cumulative effect of change in
accounting principle (3.2) -
----------------------------------- --------- ---------
Retained profit attributable to
shareholders in accordance with US
GAAP 134.4 132.2
----------------------------------- --------- ---------
Earnings per ADS in accordance with
US GAAP - basic 77.8p 76.1p
- diluted 76.1p 76.0p
Weighted average number of ADSs
outstanding (million) - basic 172.8 173.7
- diluted 176.5 174.0
----------------------------------- --------- ---------
Effect on shareholders' funds of differences between Adopted IFRS and US GAAP
2007 2006
----------------------------------- --------- ---------
£m £m
----------------------------------- --------- ---------
Shareholders' funds in accordance with Adopted IFRS 886.3 878.9
----------------------------------- --------- ---------
Goodwill in respect of acquisitions (gross) 462.4 501.0
Adjustment to goodwill (53.7) (59.7)
Accumulated goodwill amortisation (142.0) (153.0)
Sale and leaseback transactions (6.2) (7.1)
Pensions - 14.4
Depreciation of properties (2.5) (2.5)
Revaluation of properties (4.3) (4.3)
Share-based payment (10.8) -
Taxation 1.7 (2.2)
----------------------------------- --------- ---------
US GAAP adjustments 244.6 286.6
----------------------------------- --------- ---------
Shareholders' funds in accordance with US GAAP 1,130.9 1,165.5
----------------------------------- --------- ---------
Reconciliation of shareholders' funds in accordance with
US GAAP
Shareholders' funds at beginning of period 1,165.5 1,056.0
Adoption of FAS 123(R) (2.8) -
----------------------------------- --------- ---------
1,162.7 1,056.0
Retained profit attributable to shareholders 134.4 132.2
(Purchase)/issue of shares (net) (29.6) 1.9
Increase/(decrease) in additional paid-in capital 1.2 (0.3)
Dividends paid (57.8) (52.7)
Other comprehensive income/(expense) 21.8 (18.1)
Translation differences (85.0) 46.5
----------------------------------- --------- ---------
1,147.7 1,165.5
Adoption of FAS 158 (16.8) -
----------------------------------- --------- ---------
Shareholders' funds at end of period 1,130.9 1,165.5
----------------------------------- --------- ---------
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
SIGNET
GROUP plc
By: /s/
Walker Boyd
Name: Walker
Boyd
Title:
Group Finance Director
Date: April 18, 2007