Annual Report and
Accounts 2006


  IFRS   UK GAAP
  2006
£m		 2005
£m		   2004
£m		 2003
£m		 2002
£m
Revenue            
UK and Ireland 2,690 2,351   2,107 1,889 1,674
France 1,725 1,644   1,621 658 544
Central Europe 735 642   520 410 300
Europe 5,150 4,637   4,248 2,957 2,518
US Plumbing and Heating 5,396 3,858   3,390 3,155 3,231
US Building Materials 2,966 2,249   2,044 1,713 1,858
Canada 646 512   446 396 361
North America 9,008 6,619   5,880 5,264 5,450
  14,158 11,256   10,128 8,221 7,968
Trading profit            
UK and Ireland 201 183   163 144 131
France 91 98   92 39 33
Central Europe 31 30   21 16 11
Europe Central Costs (7) (4)   - - -
Europe 316 307   276 199 175
US Plumbing and Heating 378 260   230 180 180
US Building Materials 192 131   109 81 94
Canada 44 36   32 28 26
North America Central Costs (11) (1)   - - -
North America 603 426   371 289 300
Group Central Costs (37) (25)   (28) (15) (11)
  882 708   619 473 464
Amortisation of acquired intangibles (48) (6)   - - -
Goodwill amortisation - -   (39) (30) (27)
Operating profit 834 702   580 443 437
Net interest (payable) (65) (37)   (21) (17) (27)
Profit on ordinary activities before tax 769 665   559 426 410
Current tax charge (227) (142)   (153) (118) (108)
Deferred tax charge (5) (44)   (9) (10) (14)
Profit on ordinary activities after tax 537 479   397 298 288
Ordinary dividends (174) (155)   (139) (123) (109)
             
Net assets employed            
Intangible fixed assets 1,506 948   666 687 503
Property, plant and equipment 1,144 833   719 717 582
Other net assets, excluding liquid funds 1,892 1,691   1,458 1,197 1,061
  4,542 3,472   2,843 2,601 2,146
Financed by            
Share capital 149 148   146 145 145
Share premium 288 241   200 178 169
Foreign currency translation reserve (49) 82   - - -
Profit and loss account 2,204 1,830   1,556 1,451 1,286
Shareholders' funds 2,592 2,301   1,902 1,774 1,600
Net debt 1,950 1,171   941 827 546
Net assets employed 4,542 3,472   2,843 2,601 2,146
             
Cumulative goodwill and acquired intangibles written off 667 619   613 574 544
Gross capital employed 5,209 4,091   3,456 3,175 2,690

 


IFRS UK GAAP
  2006 2005   2004 2003 2002
Earnings per share before amortisation  
 of goodwill and acquired intangibles 98.90p 82.60p   74.84p 56.69p 54.58p
Basic earnings per share 90.77p 81.61p   68.15p 51.53p 49.96p
Dividends per share (in respect of the financial year) 29.40p 26.40p   23.80p 21.20p 18.90p
Cover for ordinary dividends 3.1 3.1   2.9 2.4 2.6
Gearing ratio (note 1) 75.2% 50.9%   49.5% 46.6% 34.1%
Net tangible assets per ordinary share 181.61p 228.55p   211.26p 187.26p 189.86p
Return on gross capital employed (note 2) 18.8% 19.1%   18.4% 16.7% 16.7%
Average number of employees 65,223 53,668   48,379 39,299 37,136
Aggregate wages and salaries (£ million) 1,630 1,257   1,108 941 897
Number of shares in issue at year end (million) 598 592   585 581 578
             
Number of branches at year end            
Europe 2,861 2,486   2,393 2,266 1,799
North America 1,797 1,434   1,244 1,183 1,156
Total branches 4,658 3,920   3,637 3,449 2,955
             
US dollar translation rate            
Income statement/profit and loss 1.7885 1.8514   1.7522 1.5951 1.4569
Balance sheet 1.8673 1.7564   1.8198 1.6076 1.5622
             
Canadian dollar translation rate            
Income statement/profit and loss 2.0595 2.2997   2.3473 2.3835 2.2866
Balance sheet 2.1128 2.1464   2.4229 2.2427 2.4749
             
Euro translation rate            
Income statement/profit and loss 1.4577 1.4587   1.4635 1.5039 1.6085
Balance sheet 1.4628 1.4479   1.5144 1.4171 1.5934
  • Note 1. The gearing ratio is the ratio of net borrowings, excluding construction loan borrowings, to shareholders' funds.
  • Note 2. Return on gross capital employed is the ratio of trading profit (before loss on disposal of operations and the amortisation of goodwill and acquired intangibles) to the aggregate of average shareholders' funds, minority interests, net debt and cumulative goodwill written off.