-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, eaShjHgGVf2kCEwmFgxVM5ycFzCvcgeVBT3eEVLQekHbjOAzIhpTgORMrFX5X825 bdqmJVZ2oAzE+Qnej8n+zA== 0000950129-94-000780.txt : 19941116 0000950129-94-000780.hdr.sgml : 19941116 ACCESSION NUMBER: 0000950129-94-000780 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19941114 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19941114 SROS: AMEX SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SERVICE CORPORATION INTERNATIONAL CENTRAL INDEX KEY: 0000089089 STANDARD INDUSTRIAL CLASSIFICATION: 7200 IRS NUMBER: 741488375 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06402 FILM NUMBER: 94559110 BUSINESS ADDRESS: STREET 1: 1929 ALLEN PKWY STREET 2: P O BOX 130548 CITY: HOUSTON STATE: TX ZIP: 77219 BUSINESS PHONE: 7135225141 MAIL ADDRESS: STREET 1: P.O. BOX 130548 CITY: HOUSTON STATE: TX ZIP: 77219-0548 8-K 1 SERVICE CORPORATION INT'L - DATED 11/14/94 1 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 --------------------- FORM 8-K --------------------- CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): NOVEMBER 14, 1994 COMMISSION FILE NUMBER 1-6402-1 --------------------- SERVICE CORPORATION INTERNATIONAL (EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER) TEXAS 74-1488375 (STATE OR OTHER JURISDICTION OF (I. R. S. EMPLOYER INCORPORATION OR ORGANIZATION) IDENTIFICATION NUMBER) 1929 ALLEN PARKWAY, HOUSTON, TEXAS 77019 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
(713) 522-5141 (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE) --------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 2 ITEM 5. OTHER EVENTS In June 1994, Service Corporation International ("SCI") announced an unsolicited offer to acquire 100% of the outstanding common shares of the Great Southern Group plc, ("GSG"). As of September 30, 1994, SCI owned or had commitments to acquire in excess of 98% of GSG's voting shares. SCI anticipates that the total acquisition cost will approximate $192,777,000, including the assumption of approximately $14,751,000 of existing indebtedness which SCI intends to repay. GSG is a funeral provider in the United Kingdom ("UK") and owns 157 funeral homes, 13 crematories and two cemeteries. In September 1994, SCI announced its offer to acquire 100% of the outstanding common shares of Plantsbrook Group plc ("PG") for approximately $312,690,000, including the assumption of approximately $13,873,000 of existing debt. PG is a funeral provider in the UK and owns 380 funeral homes. As of September 30, 1994, SCI owned or had commitments to acquire in excess of 95% of PG's voting shares. In addition to the acquisitions of GSG and PG, during the six months ended June 30, 1994, SCI continued to acquire funeral and cemetery operations in the United States, Australia and Canada. Excluding GSG and PG during such period, SCI acquired 64 funeral homes and 13 cemeteries (the "Other Acquired Companies") in 38 separate transactions for an aggregate purchase price of approximately $175,000,000 in the form of combinations of cash, SCI common stock, issued and assumed debt, convertible debentures and retired loans receivable held by SCI's finance subsidiary. None of SCI's acquisitions, including GSG and PG, individually meet the definition of a significant subsidiary as defined in the Securities and Exchange Commission's (the "Commission") Regulation S-X. Pursuant to the Commission's Regulation S-X Rule 3-05, SCI is hereby reporting the individual financial statements in pound sterling of GSG and PG for the year ended December 31, 1993 and six months ended June 30, 1994 and 1993, respectively. GSG and PG represent a substantial majority of SCI's 1994 acquisitions. 2 3 REPORT OF INDEPENDENT ACCOUNTANTS TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF GREAT SOUTHERN GROUP PLC We have audited the financial statements appearing on pages 4 to 27 of Great Southern Group PLC and its subsidiaries which are expressed in pounds sterling. These consolidated financial statements and schedules are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements and related schedules based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United Kingdom and United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material mis-statement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Great Southern Group and its subsidiaries at 31 December 1993 and the results of its operations and its cash flows for the year ended 31 December 1993, in conformity with accounting principles generally accepted in the United Kingdom, on the bases described in Note 1 to the consolidated financial statements. Accounting principles generally accepted in the United Kingdom vary in certain significant respects from accounting principles generally accepted in the United States. The application of the latter would have affected the determination of consolidated net income expressed in pounds sterling for the year ended 31 December 1993 and the determination of consolidated shareholders' equity also expressed in pounds sterling at 31 December 1993 to the extent summarised in Note 27 to the consolidated financial statements. ROBSON RHODES Chartered Accountants and Registered Auditor London England November 14, 1994 3 4 GREAT SOUTHERN GROUP PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER 1993
NOTES TOTAL ----- ------- BRITISH POUND'000 Group turnover from continuing operations.................................. 1&2(a) 32,743 Operating expenses......................................................... 2(b) 25,609 ------- Operating profit from continuing operations................................ 2(a) 7,134 Net Interest payable....................................................... 5 919 ------- Profit on ordinary activities before taxation.............................. 6,215 Tax on profit on ordinary activities....................................... 6 2,162 ------- Profit on ordinary activities after taxation............................... 4,053 Dividends.................................................................. 7 1,906 ------- Transfer to reserves....................................................... 19 2,147 ======= Earnings per share Basic.................................................................... 8(a) 30.4p Fully diluted............................................................ 8(b) 28.1p =======
There were no recognized gains and losses other than the profit reported above. NOTE OF HISTORICAL COST PROFITS AND LOSSES:
BRITISH POUND'000 Reported profit on ordinary activities before taxation.............................. 6,215 ----- Historical cost profit on ordinary activities before taxation....................... 6,215 ===== Historical cost retained profit..................................................... 2,147 =====
The following notes form part of these financial statements. 4 5 GREAT SOUTHERN GROUP PLC CONSOLIDATED BALANCE SHEET AS AT 31ST DECEMBER 1993
BRITISH NOTES POUND'000 ----- --------- Fixed assets Tangible assets.......................................................... 9 27,346 Investments.............................................................. 11 116 ------- 27,462 ------- Current assets Stocks................................................................... 1 729 Debtors.................................................................. 12 5,634 Cash at bank and in hand................................................. 21(d) 18 ------- 6,381 ------- Creditors: amounts falling due within one year............................. 13 Borrowings............................................................... 5,871 Other creditors.......................................................... 7,337 ------- 13,208 ------- Net current liabilities............................................... (6,827) ------- Total assets less current liabilities................................. 20,635 Creditors: amounts falling due after more than one year.................... 14 (5,057) Provision for liabilities and charges...................................... 16 (500) ------- Net assets.......................................................... 2(a) 15,078 ======= Capital and reserves Called up share capital.................................................. 18 1,527 Share premium account.................................................... 19 9 Revaluation reserve...................................................... 19 4,007 Goodwill reserve......................................................... 19 (3,150) Profit and loss account.................................................. 19 12,685 ------- Shareholders' funds................................................. 20 15,078 =======
Approved by the Board of Directors on 30th March 1994 and signed on its behalf by: James Smillie Directors Eric Norman Spencer
The following notes form part of these financial statements. 5 6 GREAT SOUTHERN GROUP PLC BALANCE SHEET AS AT 31ST DECEMBER 1993
BRITISH NOTES POUND'000 ----- --------- Fixed assets Tangible assets.......................................................... 9 250 Investment in group companies............................................ 10 31,874 Other investments........................................................ 11 116 ------- 32,240 ------- Current assets Debtors.................................................................. 12 4,177 Cash at bank and in hand................................................. 6 ------- 4,183 ------- Creditors: amounts falling due within one year............................. 13 Borrowings............................................................... 5,437 Other creditors.......................................................... 2,088 ------- 7,525 ------- Net current liabilities............................................... (3,342) ------- Total assets less current liabilities................................. 28,898 Creditors: amounts falling due after more than one year.................... 14 (4,093) Provision for liabilities and charges...................................... 16 (4) ------- Net assets.......................................................... 24,801 ======= Capital and reserves Called up share capital.................................................. 18 1,527 Share premium account.................................................... 19 9 Revaluation reserve...................................................... 19 3,171 Merger reserve........................................................... 19 3,540 Special reserve.......................................................... 19 6,854 Profit and loss account.................................................. 19 9,700 ------- Shareholders' funds................................................. 20 24,801 =======
Approved by the Board of Directors on 30th March 1994 and signed on its behalf by: James Smillie Directors Eric Norman Spencer
The following notes form part of these financial statements. 6 7 GREAT SOUTHERN GROUP PLC CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 1993
BRITISH BRITISH POUND'000 POUND'000 --------- --------- Net cash inflow from operating activities (note 21a)........................ 8,762 ======= Net cash outflow from returns on investments and servicing of finance Interest received......................................................... 88 Interest paid............................................................. (1,007) Dividends paid to shareholders............................................ (1,812) (2,731) ------ Taxation paid............................................................... (2,804) Net cash outflow from investing activities Purchase of tangible fixed assets......................................... (3,895) Purchase of investments................................................... (2) Disposal of tangible fixed assets......................................... 958 (Acquisition)/disposal of goodwill (note 21b)............................. (423) (3,362) ------ ------- (8,897) ======= Net cash (outflow)/inflow before financing.................................. (135) Net cash outflow from financing activities New amounts borrowed...................................................... 656 Repayment of amounts borrowed (note 21c).................................. (1,006) Capital element of hire purchase payment (note 21c)....................... (1,084) (1,434) ------ ------- (Decrease) in cash (note 21d)............................................... (1,569) =======
The following notes form part of these financial statements. 7 8 GREAT SOUTHERN GROUP PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 1993 1. ACCOUNTING POLICIES Basis of accounting The financial statements have been prepared in accordance with the historical cost convention (as modified by the revaluation of certain fixed assets) and applicable accounting standards. As permitted by section 210 of the Companies Act 1985, the profit and loss account of the parent company has not been separately presented in the financial statements. Consolidation The group financial statements deal with the state of affairs and earnings of the company and all its subsidiary undertakings. The only subsidiary undertakings of the group are subsidiary companies. Where acquisitions are accounted for on the acquisition basis of accounting, the results are included from the date of purchase and the difference between the price paid and the fair value of net assets acquired, after providing for any costs arising as a consequence of integration, is taken to reserves. Turnover The turnover of the Group represents income receivable from the provision of: cremations and interments; funeral services, monumental masonry and contracting; and membership fees and other income from the sale of pre-arranged funeral plans. Turnover is shown exclusive of inter-company trading, disbursements and value added tax. Value Added Tax The provision of funeral services, cremation and burial are exempt supplies for Value Added Tax and as a consequence related Value Added Tax on expenses and direct costs may not be recovered and is included in costs and expenses. Deferred Taxation Where there is a reasonable probability that a liability may arise in the future, provision is made for taxation deferred by relief available on fixed assets in excess of the depreciation charged in the financial statements. This provision is made at the rate of corporation tax due to be applicable at the date that the deferred taxation is estimated to become payable. Advance corporation tax on current dividends which will be offset against future corporation tax liabilities is deducted from the deferred taxation account. Where material, provision is also made for short term timing differences. Tangible fixed assets (i) All freehold properties including group cemeteries and crematoria and funeral directing establishments are maintained, as a matter of group policy, by a programme of repair and refurbishment such that the residual values of these properties are at least equal to their book values. Having regard to this, it is the opinion of the Directors that depreciation of any such property as required by the Companies Act 1985 and standard accounting practice would not be material. (ii) Depreciation is calculated to write off all other tangible fixed assets by equal instalments over their expected useful lives at the following annual rates: Computer equipment............................ 25.0 per cent Vehicles...................................... 12.5 per cent Others........................................ 10.0 per cent
8 9 GREAT SOUTHERN GROUP PLC NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 1993 1. ACCOUNTING POLICIES -- (CONTINUED) Short leasehold property is amortised over the life of the lease. Stocks Stocks comprise finished goods being assembled coffins, fittings and memorials and are valued at the lower of cost and estimated realisable value. There is no material difference between replacement value and cost. Pension Arrangements The Group operates a Retirement and Death Benefit scheme and an Executive Pension scheme. It also makes provision for pensions for employees outside those schemes through the Great Southern Welfare Trust. In each case the assets of the pension schemes are separate from the assets of the Group. The Executive Pension Scheme and the Great Southern Welfare Trust are treated as defined contribution schemes. As such the pension cost charge is the amount of contributions paid in the year. The Retirement and Death Benefit scheme is a defined benefit pension scheme. In principle the group contributes to this scheme an amount equal to the regular cost of pensions as calculated by a qualified actuary based on a constant percentage of current and expected pensionable payroll. The regular pension costs so calculated are charged to profit and loss accounts. Triennial valuations of the Retirement and Death Benefit scheme are performed by the actuary using the aggregate method. These actuarial valuations may reveal an experience surplus or deficit. Any surplus or deficit is amortised through the profit and loss account evenly over the average remaining service life of current employees. Leased Assets Rentals are charged to profit on a straight line basis over the lease term. Assets held under finance leases are included in the balance sheets and depreciated in accordance with the Group's normal accounting policies. The present value of future rentals is shown as a liability. The interest element of rental obligations is charged to the profit and loss account over the period of the lease in proportion to the balance of capital repayments outstanding. Financial Reporting Standard Number 3 The 1992 profit and loss account has been restated by minor amounts in accordance with FRS3 which affects the group accounts for the first time. Interest receivable and investment income is now excluded from operating profit. Profit on disposal of fixed assets now excludes realised revaluation reserve. 9 10 GREAT SOUTHERN GROUP PLC NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 1993
BRITISH 2(A) SEGMENTAL REPORTING POUND'000 Turnover Retail funeral services.......................................................... 25,080 Crematoria and Cemeteries........................................................ 5,925 Pre-arranged funeral plans....................................................... 1,738 ------- 32,743 ======= Operating Profit Retail funeral services.......................................................... 4,825 Crematoria and Cemeteries........................................................ 1,906 Pre-arranged funeral plans....................................................... 878 ------- 7,609 Provision for permanent diminution in property values............................ (475) ------- 7,134 ======= Net Assets Retail funeral services.......................................................... 13,024 Crematoria and Cemeteries........................................................ 10,539 Pre-arranged funeral plans....................................................... 751 ------- 24,314 Group Borrowings................................................................... (9,236) ------- Group Net Assets................................................................... 15,078 =======
The amounts shown above for pre-arranged funeral plans relate to the Income and Net Assets of Chosen Heritage Limited. Funeral pre-payments are paid to an independent Trust, details of which are set out in note 26, and are not included in the income of the Group. The turnover, operating profit and net assets of acquisitions are not considered sufficiently material to require separate disclosure. 10 11 GREAT SOUTHERN GROUP PLC NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 1993 2(B) OPERATING EXPENSES
BRITISH POUND'000 --------- Operating profit is stated after charging: Changes in stock of finished goods............................................... 5 Raw materials and consumables.................................................... 3,167 Staff costs...................................................................... 11,482 Depreciation of tangible fixed assets -- owned......................................................................... 1,040 -- subject to Hire Purchase agreement............................................ 471 Auditors' remuneration -- audit including expenses...................................................... 65 -- other services................................................................ 80 Operating lease rentals: Buildings.......................................................................... 1,398 Other operating charges............................................................ 7,667 Property Provision................................................................. 475 ------- 25,850 and crediting: Profit on sale of tangible fixed assets.......................................... (33) Operating lease rentals: land and buildings...................................... (208) ------- 25,609 =======
11 12 GREAT SOUTHERN GROUP PLC NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 1993 3. DIRECTORS
BRITISH POUND'000 Directors' emoluments: Management remuneration............................................. 482 Executive Incentive Scheme.......................................... 35 Fees................................................................ 59 Pension contributions............................................... 105 --- 681 === Pensions to former directors........................................ 7 ===
The Executive Incentive Scheme applies to Executive Directors of the Company and is paid annually in arrears at the discretion of the Remuneration Committee, based on an increase in the Group's profit before taxation over the previous year.
HIGHEST PAID CHAIRMAN DIRECTOR -------- ------------ BRITISH BRITISH POUND'000 POUND'000 Fees/management remuneration............................ 25 117 Executive Incentive Scheme.............................. -- 8 --- --- 25 125 Pension Contributions................................... -- 23 --- --- 25 148 === ===
Number of other directors (excluding pension contributions) in the range:
NUMBERS ------- British Pound 5,001 to British Pound 10,000........................ 1 British Pound 10,001 to British Pound 15,000........................ 1 British Pound 15,001 to British Pound 20,000........................ 1 British Pound 60,001 to British Pound 65,000........................ 1 British Pound 101,001 to British Pound 105,000........................ 1 British Pound 105,001 to British Pound 110,000........................ 1 British Pound 115,001 to British Pound 120,000........................ 1
12 13 GREAT SOUTHERN GROUP PLC NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 1993 4. EMPLOYEES
NUMBERS ------- Average number of people (including directors) employed by the Group during the year was: Administration and Managerial.................................................... 121 Operational including Retail Branch Staff........................................ 857 ------- 978 ======= BRITISH POUND'000 Costs in respect of these employees: Wages and salaries............................................................... 10,249 Social security costs............................................................ 873 Pension contributions............................................................ 360 ------- 11,482 ======= Pension Costs Defined benefit scheme............................................................. Regular costs.................................................................... 466 Amortisation of experience surplus............................................... (206) ------- 260 Defined contributions schemes...................................................... 100 ------- 360 =======
The most recent formal actuarial review of the Retirement and Death Benefit Scheme was at 6 April 1991 and the results of this show that the market value of assets was British Pound 6.1 million. At the valuation date the actuarial value of the assets was sufficient to cover 132% of the accrued liabilities, allowing for future salary increases. The main actuarial assumptions were: Investment returns....................................... 10% p.a. Salary increases......................................... 7.5% p.a. Pension increase......................................... 5% p.a. Average remaining service lives.......................... 10.5 years
The Trustees have recommended enhanced benefits which will reduce the experience surplus. The remainder of the surplus will be addressed by reductions in the annual contribution calculated by the actuary to spread the reduction in contributions over the average remaining service lives of members of the scheme. 5. NET INTEREST PAYABLE
BRITISH POUND'000 --------- On bank loans and overdrafts and on other loans wholly repayable within five years............................................................................ 698 On hire purchase contracts......................................................... 296 On Great Southern Group PLC floating rate unsecured loan notes 1998................ 13 ------- 1,007 Interest receivable and investment income.......................................... (88) ------- Net Interest payable............................................................... 919 =======
13 14 GREAT SOUTHERN GROUP PLC NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 1993 6. TAXATION
BRITISH POUND'000 Charge for taxation based on the profit for the year: Corporation tax at 33%.................................................... 2,138 Deferred tax at 33%....................................................... 24 ------ 2,162 Under provisions for earlier years: Deferred tax.............................................................. -- ------ 2,162 ======
No Corporation Tax or Deferred Tax was provided in respect of chargeable gains arising on the disposal of operating premises due to the availability of rollover relief. This is in accordance with the Group's accounting policy for Deferred Tax. 7. DIVIDENDS
BRITISH POUND'000 Preference Dividends........................................................ 460 Ordinary Dividends.......................................................... -- Interim dividend of 4p per 10p ordinary share............................... 474 Proposed final dividend of 8.2p per 10p ordinary share...................... 972 ------ 1,906 ======
8. EARNING PER SHARE Earnings per share has been calculated on the following basis: (a) Basic Profit on ordinary activities after taxation........................... 4,053 Preference dividend.................................................... (460) ------ 3,593 ======
NUMBER ------ '000 Weighted average of ordinary shares in issue during the year............... 11,838 ------ Earnings per share......................................................... 30.4p ======
BRITISH POUND'000 (b) Fully diluted Profit on ordinary activities after taxation........................... 4,053 ======
NUMBER ------ '000 Number of ordinary shares assuming full conversion of 6.75p cumulative convertible redeemable preference shares.................................. 14,425 ------ Earning per share........................................................... 28.1p ======
14 15 GREAT SOUTHERN GROUP PLC NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 1993 9. TANGIBLE FIXED ASSETS
THE THE GROUP COMPANY ----------------------------------------------------------- ------- CEMETERIES OTHER PROPERTIES PLANT AND --------------------- VEHICLES CREMATORIA AND SHORT EQUIPMENT TOTAL TOTAL Cost or Valuation FREEHOLD FREEHOLD LEASEHOLD - ----------------------------------- ---------- -------- --------- --------- ------- ------- BRITISH BRITISH BRITISH BRITISH BRITISH BRITISH POUND'000 POUND'000 POUND'000 POUND'000 POUND'000 POUND'000 At 1st January 1993.............. 8,481 9,392 1,681 13,336 32,890 586 Acquired with new subsidiaries... -- 120 -- 111 231 -- Additions........................ 615 597 133 2,403 3,748 93 Provision for permanent diminution in value........... -- (475) -- -- (475) -- Disposals........................ -- (732) (15) (1,184) (1,931) (85) ----- ----- ----- ------ ------ --- At 31st December 1993.............. 9,096 8,902 1,799 14,666 34,463 594 ----- ----- ----- ------ ------ --- Depreciation At 1st January 1993.............. -- -- 549 5,979 6,528 315 Acquired with new subsidiaries... -- -- -- 84 84 -- Charge in year................... -- -- 78 1,433 1,511 75 Eliminated on disposal........... -- -- (4) (1,002) (1,006) (46) ----- ----- ------ ------ ------ --- At 31st December 1993.............. -- -- 623 6,494 7,117 344 ----- ----- ------ ------ ------ --- Written down value 31st December 1993............................. 9,096 8,902 1,176 8,172 27,346 250 ===== ===== ====== ====== ====== ===
The tangible fixed assets owned by the Company comprise plant, vehicles and equipment. The Group's freehold and certain leasehold properties were valued at 30th June 1986 on the following basis: (i) Cemeteries and Crematoria -- at the net current replacement cost of land and buildings; (ii) Other properties -- at the open market value for existing use purposes; Cemeteries and Crematoria and other properties comprise:
CEMETERIES AND OTHER CREMATORIA PROPERTIES ---------- ---------- BRITISH BRITISH POUND'000 POUND'000 At cost less provision for diminution in value........... 4,386 7,003 At valuation in 1986..................................... 4,710 1,899 ----- ----- At 31st December 1993.................................... 9,096 8,902 ===== =====
The historical cost equivalent at 31st December 1993 of Cemeteries, Crematoria and other freehold properties included at valuation was:
CEMETERIES AND OTHER CREMATORIA PROPERTIES ---------- ---------- BRITISH BRITISH POUND'000 POUND'000 Cost..................................................... 1,271 935 ===== ===
15 16 GREAT SOUTHERN GROUP PLC NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 1993 9. TANGIBLE FIXED ASSETS -- (CONTINUED) Motor vehicles included above which are subject to hire purchase agreements have a net book value of:
THE GROUP THE COMPANY --------- ----------- Cost........................................... 3,768 57 Depreciation................................... (1,072) (15) ------ --- Net book value................................. 2,696 42 ====== ===
10. INVESTMENT IN GROUP COMPANIES This represents the cost of shares in subsidiary companies:
COST ------- BRITISH POUND'000 1st January 1993........................................... 31,384 Additions during the year at cost.......................... 490 ------ 31,874 ======
The principal subsidiary companies are all wholly owned, operate in Great Britain and are registered in England. Great Southern Group PLC holds 100% of the voting rights of these companies.
PRINCIPAL SUBSIDIARY COMPANIES ACTIVITIES ------------------------------ ---------- The Crematorium Company Limited.......... Operation of crematoria and cemeteries Family Funeral Directors Limited......... Provision of funeral services Monumental Masons Limited................ Manufacture and provision of memorials Chosen Heritage Limited.................. Provision of pre-arranged funeral plans and the arrangement of related funeral services.
Information on non-principal subsidiary companies will be contained in the company's next Annual Return. 11. OTHER INVESTMENTS
STAFF UNLISTED MORTGAGE REDEMPTION INVESTMENTS LOAN POLICIES TOTAL ----------- -------- ---------- ----- BRITISH BRITISH BRITISH BRITISH POUND'000 POUND'000 POUND'000 POUND'000 The Group and the Company Cost at 1st January 1993.................... 38 25 51 114 Additions................................... -- -- 2 2 --- --- --- ---- 38 25 53 116 === === === ====
AT 31ST DECEMBER -------- BRITISH POUND'000 Directors' valuation of unlisted investments............................... 184 Surrender value of redemption policies..................................... 68 ====
16 17 GREAT SOUTHERN GROUP PLC NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 1993 11. OTHER INVESTMENTS -- (CONTINUED) At 31st December 1993 the Group held 14.4% of the issued share capital of Kent County Crematorium PLC which is registered in England. 12. DEBTORS
THE THE GROUP COMPANY ------- ------- BRITISH BRITISH POUND'000 POUND'000 Trade debtors..................................................... 3,462 -- Amounts due from parent company................................... 49 43 Amounts due from subsidiary companies............................. -- 3,456 Other debtors..................................................... 1,370 5 Prepayments and accrued income.................................... 753 334 Advance corporation tax recoverable............................... -- 339 ------- ------- 5,634 4,177 ====== =======
13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
THE THE GROUP COMPANY ------- ------- BRITISH BRITISH POUND'000 POUND'000 Bank Overdraft.................................................... 419 694 Terms loans (note 15)............................................. 4,700 4,700 Unsecured loans................................................... 30 30 Hire purchase creditor............................................ 722 13 ------- ------- Borrowings................................................. 5,871 5,437 ====== ======= Payments received on account...................................... 240 -- Trade creditors................................................... 1,210 46 Corporation tax................................................... 1,633 -- Advance corporation tax........................................... 477 477 Taxation and social security...................................... 324 18 Accruals and deferred income...................................... 2,251 345 Proposed dividend................................................. 1,202 1,202 ------- ------- Other Creditors............................................ 7,337 2,088 ====== =======
14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
THE THE GROUP COMPANY ------- ------- BRITISH BRITISH POUND'000 POUND'000 Borrowings (note 15).............................................. 5,057 4,093 ====== =======
17 18 GREAT SOUTHERN GROUP PLC NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 1993 15. BORROWINGS
THE THE GROUP COMPANY ------- ------- BRITISH BRITISH POUND'000 POUND'000 Great Southern Group PLC floating rate unsecured loan notes 1998 Due within one year..................................................... 30 30 Due between 1-2 years................................................... 21 21 Due between 2-5 years................................................... 147 147 Due beyond 5 years...................................................... -- -- ------- ------- 198 198 ======= ======= Barclays de Zoete Wedd Limited, unsecured, at LIBOR plus 1.25%, due 16th September 1999 Due within one year..................................................... 325 325 Due between 1-2 years................................................... 347 347 Due between 2-5 years................................................... 322 322 ------- ------- 994 994 ======= ======= Barclays Bank PLC, unsecured, at LIBOR plus 1% Due within one year..................................................... 2,500 2,500 ======= ======= Hill Samuel Bank Ltd, unsecured, British Pound 4,125 at LIBOR plus 1%, British Pound 1,000 at LIBOR plus .875% Due within one year..................................................... 1,875 1,875 Due between 1-2 years................................................... 1,125 1,125 Due between 2-5 years................................................... 2,125 2,125 ------- ------- 5,125 5,125 ======= ======= Hire purchase creditors Due within one year..................................................... 722 13 Due between 1-2 years................................................... 593 6 Due between 2-5 years................................................... 377 -- ------- ------- 1,692 19 ======= ======= Total Borrowings Due within one year (see note 13)....................................... 5,871 5,437 Due between 1-2 years................................................... 2,086 1,499 Due between 2-5 years................................................... 2,971 2,594 Due beyond 5 years...................................................... -- -- ------- ------- 10,928 9,530 ======= =======
18 19 GREAT SOUTHERN GROUP PLC NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 1993 16. PROVISIONS FOR LIABILITIES AND CHARGES
THE THE GROUP COMPANY --------- ------- BRITISH BRITISH POUND'000 POUND'000 Environmental Protection Provision Balance 1st January............................................. 232 -- Released to Profit and loss account............................. (232) -- --------- ------- Balance 31st December........................................... -- -- Deferred Taxation (note 17)..................................... 500 4 --------- ------- 500 4 ======== =======
17. DEFERRED TAXATION (a) The Group
BRITISH POUND'000 Deferred taxation provided at 33% At 1st January 1993.................................................. 813 Acquired with new subsidiaries....................................... 2 Charged to profit and loss account................................... 24 ----- At 31st December 1993................................................ 839 Advance corporation tax recoverable.................................. (339) ----- 500 =====
NOT PROVIDED PROVIDED -------- -------- BRITISH BRITISH POUND'000 POUND'000 Capital expenditure allowances.................................... 909 -- Other timing differences.......................................... (70) -- Property revaluation surplus and gains rolled over................ -- 696 -------- -------- 839 696 Advance Corporation Tax........................................... (339) -- -------- -------- 500 696 ====== ======
Potential and unprovided deferred tax relating principally to property revaluation surpluses will be dependent on the agreement of March 1982 valuations with the Inland Revenue. (b) The Company
BRITISH POUND'000 Deferred taxation provided at 33% At 1st January 1993................................................... 10 Released to profit and loss account................................... 6 ----- At 31st December 1993................................................. 4 ====
19 20 GREAT SOUTHERN GROUP PLC NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 1993 17. DEFERRED TAXATION -- (CONTINUED)
NOT PROVIDED PROVIDED -------- --------- BRITISH BRITISH POUND'000 POUND'000 Capital expenditure allowances.................................... 4 -- Gains rolled over................................................. -- 61 ----- ------ 4 61 ===== ======
18. CALLED UP SHARE CAPITAL
BRITISH POUND'000 Authorised 18,200,000 ordinary shares of 10p each.................................... 1,820 6,928,571 6.75p cumulative convertible redeemable preference shares of 5p each................................................................... 346 ------ 2,166 ====== Allotted, called up and fully paid 11,852,678 ordinary shares of 10p each.................................... 1,185 6,817,690 6.75p cumulative convertible redeemable preference shares of 5p each................................................................... 341 136,060 deferred shares of 1p each........................................ 1 ------ 1,527 ======
The preference shares are convertible into ordinary shares between 1st June 1994 and 2009. The basis of conversion is the rate of 37.736 ordinary shares of 10p each for every British Pound 5 in nominal value of preference shares so converted. Full conversion of the preference shares will increase the current issued ordinary share capital of the company by 2,572,719 ordinary shares. On 13th June 1993 the holders of 86,479 cumulative convertible redeemable preference shares exercised their right to convert such shares to ordinary shares. 32,633 ordinary shares were issued as a consequence together with 106,050 deferred shares. The deferred shares arise from the consolidation and subdivision of fractions arising on conversion and carry no voting rights and may be redeemed by the company for a total value of 1p following conversion of all preference shares. 19. RESERVES
SHARE OTHER RESERVES PROFIT & PREMIUM REVALUATION MERGER SPECIAL GOODWILL LOSS ACCOUNT RESERVE RESERVE RESERVE RESERVE ACCOUNT ------- ----------- ------- ------- -------- --------- BRITISH BRITISH BRITISH BRITISH BRITISH BRITISH POUND'000 POUND'000 POUND'000 POUND'000 POUND'000 POUND'000 Group At 1st January 1993............... 9 4,007 -- -- (2,727) 10,538 Goodwill arising on acquisition... -- -- -- -- (423) -- Retained profit................... -- -- -- -- -- 2,147 ------- -------- ------ ------ ------- ------- At 31st December 1993............. 9 4,007 -- -- (3,150) 12,685 ======= ======== ====== ====== ======= ======= Company At 1st January 1993............... 9 3,171 3,540 6,937 -- 7,702 Goodwill arising on acquisition... -- -- -- (83) -- -- Retained profit................... -- -- -- -- -- 1,998 ------ -------- ------ ------ ------- ------- 31st December 1993................ 9 3,171 3,540 6,854 -- 9,700 ======= ======== ====== ====== ======= =======
20 21 GREAT SOUTHERN GROUP PLC NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 1993 19. RESERVES -- (CONTINUED) On 13th June 1988 a special resolution was passed reducing the share premium account by British Pound 9,101,000. This was confirmed by the court on 9th July 1988 and the amount arising on the reduction was transferred to a special reserve. The cost of cumulative goodwill for companies and businesses remaining in the group at the year end, written off to reserves, is British Pound 15,791,000. The revaluation reserve in the company relates to properties which have, since valuation, been transferred to subsidiary companies and is considered unrealised. The Company has taken advantage of section 230 of the Companies Act 1985 and a separate profit and loss account for the Company is not therefore presented. The Company's profit after taxation for the financial year was British Pound 3,904,000. 20. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
BRITISH POUND'000 The Group Profit for the financial year.............................................. 4,053 Dividends.................................................................. (1,906) Goodwill taken to Reserves................................................. (423) ------- Increase in shareholders' funds............................................ 1,724 Shareholders' funds at 1st January 1993.................................... 13,354 ------- Shareholders' funds at 31st December 1993............................. 15,078 ======= The Company Profit for the financial year.............................................. 3,904 Dividends.................................................................. (1,906) Goodwill taken to Reserves................................................. (83) ------- Increase in shareholders' funds............................................ 1,915 Shareholders' funds at 1st January 1993.................................... 22,886 ------- Shareholders' funds at 31st December 1993.................................. 24,801 =======
21 22 GREAT SOUTHERN GROUP PLC NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 1993 21. NOTES TO THE CASH FLOW STATEMENT
BRITISH POUND'000 (a) Net cash inflow from operating activities Operating Profit....................................................... 7,609 Depreciation........................................................... 1,511 Profit on sale of tangible fixed assets................................ (33) Increase in stock...................................................... (17) Increase in debtors.................................................... (552) Increase in creditors.................................................. 476 Provision released..................................................... (232) ------- 8,762 ======= (b) Effect of acquisition and disposal of businesses Fixed assets........................................................... 147 Goodwill............................................................... 423 Debtors................................................................ 49 Stock.................................................................. 5 Creditors.............................................................. (51) ------- 573 ======= Satisfied by Cash...................................................... 417 Loan Notes............................................................. 156 ------- See also note 2(a)................................................... 573 ======= (c) Analysis of changes in financing Loans and hire purchase obligations Balance at 1st January................................................. 11,943 New loans.............................................................. 500 Loan Notes issued...................................................... 156 Cash outflows of financing............................................. (2,090) ------- Balance at 31st December............................................. 10,509 =======
CHANGE 1993 IN YEAR 1992 ---- ------- ---- BRITISH BRITISH BRITISH POUND'000 POUND'000 POUND'000 (d) Analysis of the balance of cash equivalents included in the balance sheet. Cash at bank.......................................... 18 (1,150) 1,168 Bank overdrafts....................................... (419) (419) -- ---- ------ ----- (401) (1,569) 1,168 ==== ====== =====
22 23 GREAT SOUTHERN GROUP PLC NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 1993 22. FUTURE EXPENDITURE Capital Expenditure Commitments for capital expenditure at 31st December not provided in these financial statements.
THE THE GROUP COMPANY ----- ------- BRITISH BRITISH POUND'000 POUND'000 Contracted for..................................................... 1,171 -- Approved by the Directors but not contracted for................... 2,248 120 ===== ===
Commitments under operating leases At 31st December there were annual commitments under operating leases as follows:
THE THE GROUP COMPANY ----- ------- BRITISH BRITISH POUND'000 POUND'000 Land and buildings Expiring within one year......................................... 137 -- Expiring between two and five years inclusive.................... 544 -- Expiring in more than five years................................. 634 230 === === Other assets: Expiring within one year......................................... 17 17 === ===
23. GUARANTEES The Company has given a guarantee to secure the bank borrowings and hire purchase liabilities of certain subsidiary companies. At 31st December 1993 these borrowings amounted to British Pound 1,725,014. 24. DIRECTORS' INTERESTS Messrs. E.E. Field, B.J.A. Field, C.P.J. Field, P.G. Wills and S.J. Cockburn were Directors and Shareholders in J.D. Field & Sons Limited throughout the year ended 31st December 1993. Rents totalling British Pound 257,922 for the year ended 31st December 1993 have been paid to J.D. Field & Sons Limited in respect of operating leases all expiring in more than five years. Mr. C.P.J. Field is a non-executive Director of Lear of London Limited, which supplied equipment and embalming services to the Group during 1993 amounting to British Pound 68,327. Lear of London Limited leases premises from the Group at a peppercorn rent as part of an agreement to provide embalming services at a discounted rate. 25. ULTIMATE PARENT COMPANY J.D. Field & Sons Limited, is the ultimate parent company. It is registered in England. Copies of its group financial statements will be obtainable from Companies Registration Office, Companies House, Crown Way, Maindy, Cardiff CF4 3UZ. 26. PRE-ARRANGED FUNERAL Chosen Heritage Limited markets pre-arranged and pre-paid funeral plans. Members' pre-payments for funerals are held on trust by National Funeral Trust and are not included in the income results or Balance 23 24 GREAT SOUTHERN GROUP PLC NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 1993 26. PRE-ARRANGED FUNERAL -- (CONTINUED) Sheet of the Group. The value of plans sold during the year amounted to British Pound 14,856,351 (including instalment payments receivable) and the market value of funds held in the Trust at 31st December 1993 was British Pound 40,928,984. With the exception of payments for funerals performed by Family Funeral Directors Limited, contributions from National Funeral Trust to the profit of the Group arise only from the allocation of such part of any actuarial surpluses as may be approved by the Managing Trustees following the recommendation of the Trust's Independent Actuary. 27. ADJUSTMENTS AND DISCLOSURES TO REFLECT UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (U.S. GAAP) GREAT SOUTHERN GROUP PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT
U.K. U.S. GAAP ADJUSTMENTS GAAP STATUTORY ------------------------------------- AS ACCOUNTS DEPRECIATION AMORTISATION DIVIDENDS ADJUSTED ----------- ------------ ------------ --------- -------- BRITISH BRITISH BRITISH BRITISH BRITISH POUND'000 POUND'000 POUND'000 POUND'000 POUND'000 Turnover Continuing Operations............ 32,743 32,743 Operating Expenses............... (25,609) (182)(1) (383)(2) (26,174) -------- ----- ----- ---- ------- Operating Profit from Continuing Operations....................... 7,134 6,569 Net Interest Payable............... (919) (919) -------- ----- ----- ---- ------- Profit on Ordinary Activities before Taxation.................. 6,215 (182) (383) 5,650 Tax on Profit on Ordinary Activities....................... (2,162) (2,162) -------- ----- ----- ---- ------- Profit on Ordinary Activities after Taxation......................... 4,053 (182) (383) 3,488 Dividends.......................... (1,906) 94(3) (1,812) -------- ----- ----- ---- ------- Transfer to Reserves............... 2,147 (182) (383) 94 1,676 ======== ===== ===== ==== =======
24 25 GREAT SOUTHERN GROUP PLC NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 1993 27. ADJUSTMENTS AND DISCLOSURES TO REFLECT UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (U.S. GAAP) -- (CONTINUED) GREAT SOUTHERN GROUP PLC CONSOLIDATED BALANCE SHEET
ADJUSTMENTS ---------------------------------------- REVALUATION U.K. TO REINSTATEMENT U.S. GAAP HISTORIC OF GAAP STATUTORY COST/ GOODWILL/ AS ACCOUNTS DEPRECIATION AMORTISATION DIVIDENDS ADJUSTED -------- ------------ ------------ --------- -------- BRITISH BRITISH BRITISH BRITISH BRITISH POUND'000 POUND'000 POUND'000 POUND'000 POUND'000 Fixed Assets Tangible Assets excluding Land and Buildings............................... 9,348 9,348 Land and Buildings........................ 17,998 (4,007)(1) 12,666 (1,325)(1) -------- ------- -------- ------- ------- Total Tangible Assets................. 27,346 (5,332) 22,014 Intangible Assets: Goodwill............... -- 15,791(2) 13,093 (2,698)(2) Investments............................... 116 116 -------- ------- -------- ------- ------- Total Fixed Assets.................... 27,462 (5,332) 13,093 35,223 Current Assets Stock..................................... 729 729 Debtors................................... 5,634 (339)(3) 5,295 Cash at Bank and in Hand.................. 18 18 -------- ------- -------- ------- ------- 6,381 (339) 6,042 Creditors Amounts falling due within One Year Borrowings................................ (5,871) (5,871) Other Creditors........................... (7,337) 1,541(3) (5,796) -------- ------- -------- ------- ------- (13,208) 1,541 (11,667) -------- ------- -------- ------- ------- Net Current Liabilities..................... (6,827) 1,202 (5,625) -------- ------- -------- ------- ------- Total Assets less Current Liabilities........................ 20,635 (5,332) 13,093 1,202 29,598 Creditors Amounts falling due after more than One Year............................. (5,057) (5,057) Provisions for Liabilities and Charges...... (500) (500) -------- ------- -------- ------- ------- 15,078 (5,332) 13,093 1,202 24,041 ======== ======= ======== ======= ======= Capital and Reserves Called Up Ordinary Share Capital.......... 1,185 -- -- -- 1,185 Called Up Cumulative Convertible Redeemable Preference Shares (Note 6)... 341 -- -- -- 341 Called Up Deferred Shares................. 1 -- -- -- 1 -------- ------- -------- ------- ------- 1,527 1,527 Share Premium Account..................... 9 9,110(2) 9,119 Merger Reserve............................ -- 3,531(2) 3,531 Revaluation Reserve....................... 4,007 (4,007)(1) 0 Goodwill Reserve.......................... (3,150) 3,150(2) 0 Profit and Loss Account................... 12,685 (1,325)(1) (2,698)(2) 1,202(3) 9,864 -------- ------- -------- ------- ------- Shareholders Funds.......................... 15,078 (5,332) 13,093 1,202 24,041 ========= ======== ======== ======= =======
Land and Buildings comprises Freehold Cemeteries and Crematoria plus Other Freehold Properties. 25 26 GREAT SOUTHERN GROUP PLC NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 1993 27. ADJUSTMENTS AND DISCLOSURES TO REFLECT UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (U.S. GAAP) -- (CONTINUED) The following adjustments have been made to the consolidated profit and loss account for the year then ended and the consolidated balance sheet of Great Southern Group plc as at 31 December 1993 to determine the figures as would be reported under US GAAP. 1. Freehold Buildings have been written down to reflect a depreciation charge that assumes that the asset will be written down to a residual value of 20% of cost over a fifty year period. It has been assumed that 66% of the carrying value of "Land and Buildings" as stated in the consolidated Financial Statements is attributable to the buildings. 2. Goodwill has been capitalised and is being amortised over a period of 40 years. 3. Proposed final ordinary dividends are not recognised, being declared after 31 December 1993. Similarly, ordinary dividends proposed for the year ended 31 December 1992 but declared during 1993 have been accounted for. The preference dividend for the six months to 31 December 1993 is not recognised, the entitlement not arising until 1 January 1994. The entitlement to the preference dividend for the six months ended 31 December 1992 has thus been recognised. 4. The defined benefit pension scheme has, by the actuarial methods used, a surplus of projected assets over projected liabilities and any adjustment to reflect the basis set out in FAS87 is not considered likely to be material. 5. As disclosed in note 26, Great Southern Group recognises profits from its pre-arranged and pre-paid funeral plans with actuarial surpluses approved by the Managing Trustees of National Funeral Trust, on the recommendation of the Trust's independent actuary. The actuarial surplus recognised for 1993 amounted to British Pound 851,000. Approximately 50% of the funeral costs claimed under these plans relate to funerals conducted by non-Group funeral homes. This accounting policy is generally acceptable under US GAAP rules and no material adjustment arises. No adjustment has been made to consolidate the accounts of National Funeral Trust which holds the funds received from members (see note 26). 6. Subject to the provisions of the Companies Act 1985, the company shall, on 31 December 2009, redeem all the convertible preference shares then in issue at par, together with a premium of 95p per share and any arrears or accruals of dividend (whether or not such dividend has been declared), by giving not less than 14 days prior written notice. 7. Operating Leases The annual payments under non-cancellable operating leases to which the company is committed are as follows:
BRITISH POUND'000 1994....................................... 1,307 1995....................................... 1,290 1996....................................... 1,274 1997....................................... 1,245 1998....................................... 1,186 Thereafter................................. 13,398 -------- 19,700
The majority of operating lease commitments relate to land and buildings. 26 27 GREAT SOUTHERN GROUP PLC NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) FOR THE YEAR ENDED 31ST DECEMBER 1993 27. ADJUSTMENTS AND DISCLOSURES TO REFLECT UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (U.S. GAAP) -- (CONTINUED) 8. Earnings per share Earnings per share under U.S. GAAP is as follows:
BRITISH POUND'000 Primary Profit on ordinary activities after taxation.............. 3,488 Preference dividend....................................... (463) ------ 3,025 ====== NUMBER ------ '000 Weighted average of ordinary shares in issue during the year.................................................... 11,838 ------ Earnings per share........................................ 25.6p ====== BRITISH POUND'000 Fully diluted Profit on ordinary activities after taxation.............. 3,488 ====== NUMBER ------ '000 Number of ordinary shares assuming full conversion of 6.75p cumulative convertible redeemable preference shares.................................................. 14,425 ------ Earnings per share........................................ 24.2p ======
27 28 GREAT SOUTHERN GROUP PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE SIX MONTHS ENDED 30TH JUNE 1994 AND 1993 (UNAUDITED)
1994 1993 --------------------------- BRITISH BRITISH POUND'000 POUND'000 Turnover........................................................................... 17,181 16,583 Cost............................................................................... 12,975 12,633 ------- ------- Operating profit................................................................... 4,206 3,950 Interest payable................................................................... 384 503 ------- ------- Profit before taxation............................................................. 3,822 3,447 Taxation........................................................................... 1,261 1,138 ------- ------- Profit after taxation.............................................................. 2,561 2,309 Preference dividend................................................................ 229 230 ------- ------- 2,332 2,079 Interim dividend 4.5p.............................................................. 534 474 ------- ------- 1,798 1,605 ======= ======= Earnings per share -- basic*....................................................... 19.7p 17.6p ======= ======= Earnings per share -- fully diluted+............................................... 17.8p 16.0p ======= =======
- ---------------
------------------------- 000'S 000'S ------- ------- * Based on a weighted average of Ordinary Shares in issue of....................... 11,853 11,822 + After assuming full conversion of the 6.75 pence Convertible Preference Shares and the resulting total of Ordinary Shares in issue of........................... 14,425 14,425
28 29 GREAT SOUTHERN GROUP PLC CONSOLIDATED BALANCE SHEET AS AT 30TH JUNE 1994 (UNAUDITED)
BRITISH POUND'000 Fixed assets Tangible assets................................................................ 28,410 Investments.................................................................... 120 ------- 28,530 ------- Current assets Stocks......................................................................... 709 Debtors........................................................................ 4,542 Cash at bank and in hand....................................................... 109 ------- 5,360 ------- Creditors: Amounts falling due within one year Borrowings..................................................................... 5,560 Other creditors................................................................ 7,115 ------- 12,675 ------- Net current liabilities................................................... (7,315) ------- Total assets less current liabilities..................................... 21,215 Creditors: Amounts falling due after more than one year Borrowings..................................................................... (4,019) Provisions for liabilities and charges......................................... (648) ------- 16,548 ======= Capital and reserves Called up share capital........................................................ 1,527 Share premium account.......................................................... 9 Revaluation reserve............................................................ 4,007 Goodwill reserve............................................................... (3,478) Profit and loss account........................................................ 14,483 ------- 16,548 =======
29 30 GREAT SOUTHERN GROUP PLC CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30TH JUNE 1994 AND 1993 (UNAUDITED)
1994 1993 --------------------------------------------------- BRITISH BRITISH POUND'000 POUND'000 Operating profit...................................................... 4,206 3,950 Depreciation.......................................................... 814 726 Profit on Sale of Tangible Fixed Assets............................... (12) (24) Decrease/(Increase) in Inventory...................................... 20 (24) Decrease in Debtors................................................... 1,092 522 Increase in Creditors................................................. (691) 5,429 (272) 4,878 ------- ------- Interest Paid......................................................... (384) (503) Dividends Paid........................................................ (1,202) (1,586) (1,108) (1,611) ------- ------- Taxation Paid......................................................... (205) (1,321) Purchase of Tangible Fixed Assets..................................... (2,058) (1,402) Purchase of Investments............................................... (4) (6) Disposal of Tangible Fixed Assets..................................... 192 344 Acquisition of Goodwill............................................... (328) (2,198) (276) (1,340) ------- ------- ------- ------- 1,440 Loan Notes Issued..................................................... -- 156 606 Repayment of Amounts Borrowed......................................... (906) (411) Repayment of Hire Purchase contracts.................................. (443) (1,349) (399) (654) ------- ------- ------- ------- Increase/(Decrease) in Cash........................................... 91 (48) ======= =======
- --------------- Notes 1. Acquisitions Fixed Assets.................................................... 25 147 Goodwill........................................................ 328 276 ------- ------- 353 423 ======= ======= Financed by Cash 2. Changes in financing Loans & Hire Purchase at 31st December 1993 and 1992............ 10,928 11,943 Loan Notes Issued............................................... -- 156 Cash outflows at 30th June 1994................................. (1,349) (810) ------- ------- 9,579 11,289 ======= =======
30 31 GREAT SOUTHERN GROUP PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30TH JUNE 1994 AND 1993 (UNAUDITED) 1. ADJUSTMENTS AND DISCLOSURES TO REFLECT U.S. GAAP CONSOLIDATED PROFIT AND LOSS ACCOUNT
1994 ------------------------------------------------------- U.K. U.S. GAAP ADJUSTMENTS GAAP STATUTORY --------------------------- AS ACCOUNTS DEPRECIATION AMORTISATION ADJUSTED --------- ------------ ------------ -------- BRITISH BRITISH BRITISH BRITISH POUND'000 POUND'000 POUND'000 POUND'000 Turnover............................ 17,181 17,181 Costs............................... 12,975 91(1) 192(2) 13,258 Net Interest Payable................ 384 384 Tax on Profit on Ordinary Activities........................ 1,261 1,261 ------- ------- ------- ------- Profit on Ordinary Activities....... 2,561 (91) (192) 2,278 ======= ======= ======= =======
1993 ------------------------------------------------------- U.K. U.S. GAAP ADJUSTMENTS GAAP STATUTORY --------------------------- AS ACCOUNTS DEPRECIATION AMORTISATION ADJUSTED --------- ------------ ------------ -------- BRITISH BRITISH BRITISH BRITISH POUND'000 POUND'000 POUND'000 POUND'000 Turnover............................ 16,583 16,583 Costs............................... 12,633 98(1) 191(2) 12,922 Net Interest Payable................ 503 503 Tax on Profit on Ordinary Activities........................ 1,138 1,138 ------- ------- ------- ------- Profit on Ordinary Activities....... 2,309 (98) (191) 2,020 ======= ======= ======= =======
CONSOLIDATED BALANCE SHEET
ADJUSTMENTS ---------------------------- REVALUATION U.K. TO U.S. GAAP HISTORIC GAAP STATUTORY COSTS/ GOODWILL/ AS ACCOUNTS DEPRECIATION AMORTISATION DIVIDENDS ADJUSTED --------- ------------ ------------ --------- -------- BRITISH BRITISH BRITISH BRITISH BRITISH POUND'000 POUND'000 POUND'000 POUND'000 POUND'000 Fixed assets Tangible assets..................... 28,410 (5,423)(1) 22,987 Investments......................... 120 120 ------- ------- ------- ------- ------- 28,530 (5,423) 23,107 ------- ------- ------- ----- ------- Intangible Assets: Goodwill........... -- 13,229(2) 13,229 Current assets Stocks.............................. 709 709 Debtors............................. 4,542 4,542 Cash at bank and in hand............ 109 109 ------- ------- ------- ------- ------- 5,360 5,360 Creditors: Amounts falling due within one year Borrowings.......................... 5,560 5,560 Other creditors..................... 7,115 (763)(3) 6,352 ------- ------- ------- ---- ------- 12,675 (763) 11,912 ------- ------- ------- ---- ------- Net current liabilities........ (7,315) 763 (6,552) ------- ------- ------- ---- ------- Total assets less current liabilities................. 21,215 (5,423) 13,229 763 29,784 Creditors: Amounts falling due after more than one year Borrowings.......................... (4,019) (4,019) Provisions for liabilities and charges.......................... (648) (648) ------- ------- ------- ---- ------- 16,548 (5,423) 13,229 763 25,117 ======= ======= ======= ==== ======= Capital and reserves.................. 16,548 (5,423) 13,229 763 25,117 ======= ======= ======= ==== =======
- --------------- 1. Freehold Buildings have been written down to reflect a depreciation charge that assumes that the asset will be written down to a residual value of 20% of cost over a fifty year period. It has been assumed that 66% of the carrying value of "Land and Buildings" as stated in the consolidated Financial Statements is attributable to the buildings. 2. Goodwill has been capitalised and is being amortised over a period of 40 years. 3. Proposed interim ordinary dividends are not recognised being declared after 30th June 1994. The preference dividend for the six months to 30th June 1994 is not recognised, the entitlement not arising until 1st July 1994. 31 32 GREAT SOUTHERN GROUP PLC NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) FOR THE SIX MONTHS ENDED 30TH JUNE 1994 AND 1993 (UNAUDITED) 1. ADJUSTMENTS AND DISCLOSURES TO REFLECT U.S. GAAP -- (CONTINUED) 4. Earnings per share Earnings per share under U.S. GAAP is as follows:
1994 1993 -------------------------------- BRITISH BRITISH POUND'000 POUND'000 Primary Profit on ordinary activities after taxation................... 2,278 2,020 Preference dividend............................................ (230) (233) --------- --------- 2,048 1,787 ========= =========
NUMBER NUMBER '000 '000 Weighted average of ordinary shares in issue during the year... 11,853 11,822 --------- --------- Earnings per share............................................. 17.3p 15.1p ========= =========
BRITISH BRITISH POUND'000 POUND'000 Fully diluted Profit on ordinary activities after taxation................... 2,278 2,020 ========= =========
NUMBER NUMBER '000 '000 Number of ordinary shares assuming full conversion of 6.75p cumulative convertible redeemable preference shares......... 14,425 14,425 --------- --------- Earnings per share............................................. 15.8p 14.0p ========= =========
32 33 REPORT OF INDEPENDENT ACCOUNTANTS TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF PLANTSBROOK GROUP PLC We have audited the consolidated financial statements appearing on pages 34 to 56 of Plantsbrook Group plc and its subsidiaries which are expressed in pounds sterling. These financial statements and schedules are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United Kingdom and the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material mis-statement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Plantsbrook Group plc and its subsidiaries at 31 December 1993 and the results of its operations, and its cash flows for the year ended 31 December 1993, in conformity with accounting principles generally accepted in the United Kingdom. Accounting principles generally accepted in the United Kingdom vary in certain significant respects from accounting principles generally accepted in the United States. The application of the latter would have affected the determination of consolidated net income expressed in pounds sterling for the year ended 31 December 1993 and the determination of consolidated shareholders' equity and consolidated financial position also expressed in pounds sterling at 31 December 1993 to the extent summarised in Note 21 to the consolidated financial statements. PRICE WATERHOUSE Chartered Accountants and Registered Auditors Cornwall Court 19 Cornwall Street Birmingham B3 2DT England November 14, 1994 33 34 PLANTSBROOK GROUP PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 1993
BRITISH NOTES POUND'000 ----- Turnover Continuing Operations................................................... 51,249 Acquisitions............................................................ 2 800 ------- 2 52,049 Cost of sales............................................................. (15,429) ------- Gross Profit.............................................................. 36,620 Administrative expenses................................................. (24,017) ------- Operating Profit.......................................................... 12,603 Interest receivable..................................................... 210 Interest payable........................................................ 3 (796) ------- Profit on Ordinary Activities before Taxation............................. 4 12,017 Taxation................................................................ 6 (3,781) ------- Profit on Ordinary Activities after Taxation.............................. 8,236 Minority Interest....................................................... (5) ------- Profit for the Financial Year............................................. 8,231 Dividends............................................................... 7 (4,969) ------- Retained Profit for the Financial Year.................................... 19(a) 3,262 ======= Earnings per Share: 8 Basic................................................................... 8.46p ------- Fully diluted........................................................... 7.77p -------
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES FOR THE YEAR ENDED 31 DECEMBER 1993
BRITISH POUND'000 Profit for the financial year........................................................ 8,231 Unrealised gain on Trust Fund investments............................................ 136 ----- Total Recognised Gains relating to the Year................................... 8,367 =====
34 35 PLANTSBROOK GROUP PLC CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 1993
BRITISH NOTES POUND'000 ----- Fixed Assets Tangible assets....................................................... 9 36,353 Trust fund assets..................................................... 10 1,170 ------- Current Assets Stocks................................................................ 12 919 Debtors............................................................... 13 9,215 Cash at bank and in hand.............................................. 1,924 ------- 12,058 ------- Creditors Amounts falling due with one year..................................... 14 (16,449) ------- Net Current Liabilities.......................................... (4,391) ------- Total Assets Less Current Liabilities................................... 33,132 Creditors: Amounts falling due after more than one year.......................... 15 (8,366) ------- 24,766 ======= Capital and Reserves Called up share capital............................................... 18 11,551 Share premium account................................................. 19(a) 10,967 Merger reserve........................................................ 19(a) 81,563 Capital redemption reserve............................................ 19(a) 2 Revaluation reserve................................................... 19(a) 136 Profit and loss account............................................... 19(a) 1,634 ------- Shareholders' Funds -- Gross............................................ 105,853 Goodwill written off.................................................... 19(a) (81,091) ------- Shareholders' Funds -- Net.............................................. 24,762 Minority interests...................................................... 4 ------- 24,766 ======= Reconciliation of movements in Shareholders' Funds Profit for the financial year........................................... 8,231 Dividends............................................................. (4,969) ------- Retained profit for the financial year................................ 3,262 Issue of shares....................................................... 18 1,964 Goodwill written off.................................................. 19(a) (1,640) Revaluation of Trust Fund investments................................. 19(a) 136 ------- Net additions to Shareholders' Funds.................................... 3,722 Opening Shareholders' Funds -- Net...................................... 21,040 ------- Closing Shareholders' Funds -- Net...................................... 24,762 =======
Approved by the Board on 24 March 1994 and signed on its behalf. P T Hindley Directors R A W Middleton
35 36 PLANTSBROOK GROUP PLC COMPANY BALANCE SHEET AS AT 31 DECEMBER 1993
BRITISH NOTES POUND'000 ----- --------- Fixed Assets Tangible Assets....................................................... 9 9,068 Investments........................................................... 11 122,502 ------- 131,570 ------- Current Assets Stocks................................................................ 12 908 Debtors............................................................... 13 41,253 Cash at bank and in hand.............................................. 1,525 ------- 43,686 ------- Creditors: Amounts falling due within one year................................... 14 (25,520) ------- Net Current Assets...................................................... 18,166 ------- Total Assets Less Current Liabilities................................... 149,736 Creditors: Amounts falling due after more than one year.......................... 15 (33,333) Provisions for Liabilities and Charges.................................. 17 (1,910) ------- 114,493 ======= Capital and Reserves Called up share capital............................................... 18 11,551 Share premium account................................................. 19(b) 10,967 Merger reserve........................................................ 19(b) 81,563 Capital redemption reserve............................................ 19(b) 2 Profit and loss account............................................... 19(b) 10,410 ------- 114,493 =======
Approved by the Board on 24 March 1994 and signed on its behalf. P T Hindley Directors R A W Middleton
36 37 PLANTSBROOK GROUP PLC CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 1993
BRITISH BRITISH NOTES POUND'000 POUND'000 ----- --------- --------- Net cash inflow from operating activities....................... (i) 17,130 Returns on investments and servicing of finance Net interest paid............................................. (665) Dividends paid................................................ (4,610) ------ (5,275) Taxation Taxation paid................................................. (2,849) ------ Net cash inflow before investing activities..................... 9,006 Investing activities Purchase of tangible fixed assets............................. (3,419) Purchase of trust fund investments............................ (1,253) Purchase of businesses net of cash and cash equivalents....... (iv) (2,537) Purchase of minority interest in subsidiary................... (20) Disposal of tangible fixed assets............................. 1,570 ------ (5,659) ------ Net cash inflow before financing................................ 3,347 Financing Issue of shares............................................... (ii) 2,008 Share conversion and issue expenses........................... (ii) (44) Hire purchase repayments...................................... (ii) (3,881) Loan notes repaid............................................. (ii) (409) ------ (2,326) ------ Increase in cash and cash equivalents........................... (iii) 1,021 ======
37 38 PLANTSBROOK GROUP PLC CASH FLOW STATEMENT -- (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 1993 NOTES (I) RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING ACTIVITIES
BRITISH POUND'000 Operating profit............................................................... 12,603 Depreciation................................................................... 2,709 Loss on disposal of tangible fixed assets...................................... 22 Increase in liability in respect of pre-paid funeral plans..................... 1,253 Working capital movements: Stocks....................................................................... (134) Debtors...................................................................... (337) Creditors.................................................................... 1,014 ------ 17,130 ======
(II) ANALYSIS OF MOVEMENTS IN FINANCING DURING THE YEAR
LOAN STOCK AND SHARE HIRE BANK CAPITAL* PURCHASE LOAN ------- -------- ------ BRITISH BRITISH BRITISH POUND'000 POUND'000 POUND'000 At 31 December 1992....................................... 102,119 4,659 7,500 Share issue proceeds...................................... 2,008 -- -- Share conversion and issue expenses....................... (44) -- -- Hire purchase and loan finance............................ -- 1,080 -- Hire purchase repayments.................................. -- (3,881) -- Loan notes repaid......................................... -- (409) -- ------- ------ ----- At 31 December 1993.................................. 104,083 1,449 7,500 ======= ====== =====
- --------------- * Including share premium, merger reserve and capital redemption reserve. (III) ANALYSIS OF MOVEMENTS IN CASH AND CASH EQUIVALENTS DURING THE YEAR
MOVEMENT IN 1993 1992 YEAR ----- ----- ------ BRITISH BRITISH BRITISH POUND'000 POUND'000 POUND'000 Cash at bank and in hand..................................... 1,924 950 974 Bank overdraft............................................... -- (47) 47 ----- ----- ----- 1,924 903 1,021 ===== ===== =====
38 39 PLANTSBROOK GROUP PLC CASH FLOW STATEMENT -- (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 1993 NOTES -- (CONTINUED) (IV) PURCHASE OF BUSINESSES
BRITISH POUND'000 Fair value of net assets acquired Tangible fixed assets........................................................... 1,084 Stocks.......................................................................... 8 Debtors......................................................................... 45 Creditors....................................................................... (240) Cash............................................................................ 36 Bank loan....................................................................... (63) ----- 870 Goodwill........................................................................ 1,640 ----- Cash consideration.............................................................. 2,510 ===== Analysis of the net outflow of cash and cash equivalents in respect of the purchase of businesses Cash consideration.............................................................. 2,510 Bank loans of acquired businesses............................................... 63 Cash acquired................................................................... (36) ----- 2,537 =====
39 40 PLANTSBROOK GROUP PLC NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 1993 1. ACCOUNTING POLICIES Basis of preparation and consolidation The financial statements have been prepared under the historical cost convention as modified by the valuation of trust fund assets at market value and in accordance with applicable accounting standards. In the balance sheet, trust fund assets are shown after deduction of the related liability for future funeral costs. This represents a departure from the requirement of the Companies Act 1985. In the opinion of the Directors, this departure is necessary for the accounts to give a true and fair view. An explanation of the departure is given in the note on trust fund assets below. The consolidated accounts include the accounts of the Company and its subsidiaries. In accordance with the concession granted under Section 230 of the Companies Act 1985, the profit and loss account of Plantsbrook Group plc has not been separately presented in the accounts. Cost of acquisitions and goodwill In the accounts of the Company, investments in subsidiaries are stated at cost less provisions for permanent diminution in value. In the Group accounts goodwill, representing the excess of the purchase price of subsidiaries and other businesses over the fair value of the net assets acquired, is written off to a goodwill write-off reserve in the year of acquisition. Where the conditions of Section 131 of the Companies Act 1985 are met, the share premium arising on the issue of shares in consideration for the acquisition of shares is credited to a merger reserve. Depreciation Depreciation of tangible fixed assets other than properties is provided from the date of acquisition so as to write off assets over the term of their estimated useful lives. The bases and rates in use for the various classes of assets are as follows: Freehold and long leasehold premises Nil Short leasehold premises Over term of lease Plant, machinery, fixtures and fittings: Computers 25% on cost Others 15% reducing balance basis Motor vehicles: Limousines 10% on cost Others 15% to 25% on cost
No depreciation is provided on freehold and long leasehold properties since it is the Group's policy to maintain all of its funeral homes and other properties to a high standard in order to protect their trade. Consequently the Directors consider the lives of these properties to be so long and the residual property values so high, based on prices prevailing at the time of acquisition, that there is no significant annual depreciation. Hire purchase contracts and operating leases Assets acquired under hire purchase contracts and finance lease agreements are capitalised at cost and depreciated in accordance with the note above. The capital element of future rentals is included under creditors. The interest is charged to the profit and loss account over the period of the lease. Rental costs of operating leases are charged to the profit and loss account in the period to which they relate. 40 41 PLANTSBROOK GROUP PLC NOTES TO THE ACCOUNTS -- (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 1993 1. ACCOUNTING POLICIES -- (CONTINUED) Stocks Stocks, which comprise funeral supplies and monumental masonry, are stated at the lower of cost and net realisable value. Pre-need funeral plans Income from pre-need funeral plans is taken to the profit and loss account as received. The liability for future funeral costs is determined based on actuarial principles and charged to cost of sales to match income. A proportion of the income received sufficient to meet the anticipated future liability to conduct funerals is deposited with independent trustees. The liability for future funeral costs and the transfers to the trust fund are determined based on advice from independent actuaries. Trust fund assets Trust fund assets include investments which are stated at market value. Unrealised surpluses arising on revaluation are credited to a revaluation reserve. Deficits resulting from the aggregate market value of investments falling below cost are charged to the profit and loss account. In the consolidated balance sheet, trust fund assets are shown after deducting the related liability for future funeral costs. This departure from the Companies Act 1985, which requires assets and liabilities to be shown separately, is, in the opinion of the Directors, necessary for the accounts to show a true and fair view. Deferred taxation The Group provides for deferred taxation, using the liability method, to take account of timing differences between the treatment of certain items for accounts purposes and the treatment for taxation purposes. Provision is made only to the extent that there is a reasonable probability that such tax will become payable in the foreseeable future. Repairs and renewals All repairs and renewals are charged against profits as incurred. Pension costs The Group operates a contributory defined benefit pension scheme covering the majority of its permanent employees. The scheme funds are administered by trustees and are independent of the Group's finances. Contributions are charged to the profit and loss account so as to spread the regular cost over the average service lives of employees in accordance with the advice of qualified actuaries. Actuarial surpluses and deficits are spread forward over the average remaining service lives of employees. Turnover Turnover comprises the amount receivable from customers for the provision of funeral and other services, excluding Value Added Tax. 2. SEGMENTAL AND GEOGRAPHICAL INFORMATION No segmental analysis is relevant since the Group's activities are all related to the provision of funeral services. The turnover relating to acquisitions made during the year is British Pound 800,022. It is not feasible to separately disclose the impact of these acquisitions on operating profit since the new businesses have been fully integrated into the Group's existing branch network and financial reporting structure. 41 42 PLANTSBROOK GROUP PLC NOTES TO THE ACCOUNTS -- (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 1993 2. SEGMENTAL AND GEOGRAPHICAL INFORMATION -- (CONTINUED) All turnover is derived from the United Kingdom except for exports of British Pound 355,000. No geographical analysis is provided on the grounds of immateriality. 3. INTEREST PAYABLE Interest on borrowings repayable within five years:
BRITISH POUND'000 Hire purchase advances.............................................. 192 Bank overdraft, bank loan and loan notes............................ 604 ----- 796 =====
4. PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION The profit on ordinary activities before taxation is arrived at after charging/(crediting):
BRITISH POUND'000 Depreciation: Owned assets....................................................... 2,495 Assets held under hire purchase.................................... 214 ----- 2,709 Auditor's remuneration, including expenses........................... 49 Redundancy costs..................................................... 16 Property repairs..................................................... 974 Operating lease rentals: Property........................................................... 2,351 Other.............................................................. 137 Loss on disposal of tangible fixed assets.......................... 22 =====
Additional fees paid to the auditors, Price Waterhouse, were British Pound 89,000 in respect of taxation services and British Pound 24,000 for other services. 5. DIRECTORS AND EMPLOYEES Staff costs (including directors):
BRITISH POUND'000 Wages and salaries.................................................. 14,341 Social Security costs............................................... 1,218 Pension costs (note 20)............................................. 510 ------ 16,069 ======
The average weekly number of persons (including directors) employed by the Group during the year was:
NUMBER ----- Management and administration....................................... 80 Funeral staff....................................................... 1,175 ----- 1,255 =====
42 43 PLANTSBROOK GROUP PLC NOTES TO THE ACCOUNTS -- (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 1993 5. DIRECTORS AND EMPLOYEES -- (CONTINUED) Emoluments paid to all directors, including pension contributions:
BRITISH POUND'000 Fees.............................................................. 44,000 Performance-related bonuses....................................... 26,000 Other emoluments.................................................. 220,806 Pension contributions............................................. 20,048 -------- 310,854 ========
The performance-related bonuses are based upon the Group profitability. Emoluments of Chairman and highest paid director: Chairman Fees............................................................ 16,000 ======== Highest paid director: Performance-related bonus....................................... 23,000 Other emoluments................................................ 107,543 Pension contributions........................................... 10,000 -------- 140,543 ========
Emoluments of the directors excluding pension contributions:
NUMBER British Pound Nil to British Pound 5,000.......................... 1 British Pound 5,001 to British Pound 10,000.......................... 3 British Pound 15,001 to British Pound 20,000.......................... 1 British Pound 20,001 to British Pound 25,000.......................... 2 British Pound 70,001 to British Pound 75,000.......................... 1 British Pound 130,001 to British Pound 135,000.......................... 1 ===
43 44 PLANTSBROOK GROUP PLC NOTES TO THE ACCOUNTS -- (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 1993 5. DIRECTORS AND EMPLOYEES -- (CONTINUED) Directors' share options
NUMBER PRICE OF PER FIRST DATE LAST DATE DIRECTORS' SHARE OPTIONS SHARES SHARE EXERCISABLE EXERCISABLE - ----------------------------------- ------ ---- ------------------ ------------------ P. T. Hindley...................... 75,000 60p 1 November 1994 1 November 2001 25,000 42p 22 April 1995 22 April 2002 75,000 68p 28 April 1996 28 April 2003 37,500 84p 20 September 1996 20 September 2003 R. A. W. Middleton................. 70,000 42p 22 April 1995 22 April 2002 50,000 68p 28 April 1996 28 April 2003 25,000 84p 20 September 1996 20 September 2003 D. G. Barber....................... 25,000 60p 1 November 1994 1 November 2001 45,000 42p 22 April 1995 22 April 2002 50,000 68p 28 April 1996 28 April 2003 25,000 84p 20 September 1996 20 September 2003 J. Brown........................... 25,000 60p 1 November 1994 1 November 2001 45,000 42p 22 April 1995 22 April 2002 50,000 68p 28 April 1996 28 April 2003 25,000 84p 20 September 1996 20 September 2003
6. TAXATION
BRITISH POUND'000 Taxation based on profits for the year: United Kingdom corporation tax at 33%................................ 4,650 Deferred taxation (note 17).......................................... (713) Adjustments in respect of previous years............................. (156) ----- 3,781 =====
7. DIVIDENDS
BRITISH POUND'000 Interim ordinary dividend paid of 1.1p per share..................... 1,099 Final ordinary dividend proposed of 2.3p per share................... 2,300 Convertible Preference shares 1991-2001 dividend paid................ 1,048 Convertible Preference shares 1991-1997 dividend paid................ 522 ----- 4,969 =====
8. EARNINGS PER SHARE The basic earnings per share calculation for the year ended 31 December 1993 is based on the weighted average of 78,751,619 Ordinary shares in issue during the year and the profit of British Pound 6,661,000 which is after taxation, minority interests and preference dividends. The fully diluted earnings per Ordinary share calculation is based on 106,477,621 Ordinary shares in issue, after allowing for full conversion rights attaching to convertible securities and the allotment of shares under the option scheme, with a corresponding adjustment to income for interest. The conversion of the 1997 Preference shares in October 1993 has been reflected in this calculation. 44 45 PLANTSBROOK GROUP PLC NOTES TO THE ACCOUNTS -- (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 1993 9. TANGIBLE FIXED ASSETS
PLANT, FREEHOLD LEASEHOLD MACHINERY LAND LAND FIXTURES AND AND AND MOTOR GROUP BUILDINGS BUILDINGS FITTINGS VEHICLES TOTAL ------------------------------ --------- --------- -------- -------- ----- BRITISH BRITISH BRITISH BRITISH BRITISH POUND'000 POUND'000 POUND'000 POUND'000 POUND'000 COST At 31 December 1992........... 22,181 4,128 4,793 14,613 45,715 Additions..................... 2,449 519 784 1,358 5,110 Acquisition of subsidiary..... 450 -- 23 97 570 Disposals..................... (903) (406) (69) (1,185) (2,563) Reclassification.............. (83) 83 -- -- -- ------ ----- ----- ------ ------ At 31 December 1993........... 24,094 4,324 5,531 14,883 48,832 ====== ===== ===== ====== ====== ACCUMULATED DEPRECIATION At 31 December 1992........... 26 918 2,925 6,776 10,645 Charge........................ -- 296 433 1,980 2,709 Acquisition of subsidiary..... -- -- 19 78 97 Disposals..................... -- (39) (58) (875) (972) Reclassification.............. 4 (4) -- -- -- ------ ----- ----- ------ ------ At 31 December 1993........... 30 1,171 3,319 7,959 12,479 ====== ===== ===== ====== ====== NET BOOK AMOUNT At 31 December 1993........... 24,064 3,153 2,212 6,924 36,353 ====== ===== ===== ====== ======
Of the net book amounts stated above, the following amounts relate to assets held under hire purchase arrangements:
MOTOR VEHICLES -------- BRITISH POUND'000 Cost............................................................... 1,600 Depreciation....................................................... (284) -------- 1,316 =======
The net book amount of leasehold land and buildings is further analysed as follows:
BRITISH POUND'000 Long leasehold..................................................... 1,284 Short leasehold.................................................... 1,869 -------- 3,153 ======= Capital commitments Capital expenditure authorised by the Board and contracted for..... 249 ======= Capital expenditure authorised by the Board but not contracted for.............................................................. 482 =======
45 46 PLANTSBROOK GROUP PLC NOTES TO THE ACCOUNTS -- (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 1993 9. TANGIBLE FIXED ASSETS -- (CONTINUED)
PLANT, MACHINERY, FIXTURES AND MOTOR COMPANY FITTINGS VEHICLES TOTAL -------- -------- ----- BRITISH BRITISH BRITISH POUND'000 POUND'000 POUND'000 COST At 31 December 1992........................... 4,696 14,537 19,233 Additions..................................... 763 1,357 2,120 Transferred from other Group companies........ 38 84 122 Disposals..................................... (33) (1,162) (1,195) ----- ------ ------ At 31 December 1993............................. 5,464 14,816 20,280 ===== ====== ====== ACCUMULATED DEPRECIATION At 31 December 1992........................... 2,860 6,746 9,606 Charge........................................ 427 1,967 2,394 Transferred from other Group companies........ 27 72 99 Disposals..................................... (21) (866) (887) ----- ------ ------ At 31 December 1993............................. 3,293 7,919 11,212 ===== ====== ====== NET BOOK AMOUNT At 31 December 1993............................. 2,171 6,897 9,068 ===== ====== ======
10. TRUST FUND ASSETS
BRITISH POUND'000 Bank deposit accounts............................................... 1,800 Unit trusts......................................................... 1,537 Listed investments Government gilts.................................................. 1,999 ------ 5,336 Deduct: Liability in respect to pre-need funeral plans.................... (4,166) ------ 1,170 ======
Investments are shown at market value. At 31 December 1993 investments at cost were British Pound 5,200,000. Assets are held by independent custodian trustees and are available to the Group only to meet the liabilities arising on the death of plan holders and are expected to be recoverable in more than twelve months time. The liability in respect of pre-need funeral plans is determined based on actuarial principles. 11. INVESTMENTS
BRITISH POUND'000 Investment in shares of Group companies at cost: At 1 January 1993................................................ 97,918 Additions........................................................ 25,020 Disposal......................................................... (436) ------- At 31 December 1993................................................ 122,502 =======
46 47 PLANTSBROOK GROUP PLC NOTES TO THE ACCOUNTS -- (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 1993 11. INVESTMENTS -- (CONTINUED) The Company's major trading subsidiaries during the year were as follows:
NUMBER OF PERCENTAGE ACTIVITY SHARES HELD HELD -------- ----------- ----- Dignity Limited (formerly Pre-need funeral plans 18,810 Ordinary 95% Dignity in Destiny Limited) at British Pound 1 each 750,000 Redeemable 100% Preference at British Pound 1 each Plantsbrook Properties plc Property holding company 277,376,905 Ordinary 100% (formerly PFG Hodgson Kenyon at 10p each (Properties) plc) Pitcher & Le Quesne Limited Funeral directors, 100 Ordinary 100% Channel Islands at British Pound 1 each Kenyon Air Transportation Repatriation, emergency 12,500 Ordinary 100% Limited services and exhumations at British Pound 1 each
All of the above are registered and operate in England except Pitcher & Le Quesne Limited, which is registered and operates in the Channel Islands. The accounting reference dates of the subsidiaries are 31 December, except for Plantsbrook Properties plc which is 21 December. A complete list of subsidiaries is available upon request to the Company and will be filed with the next Annual Return to the Registrar of Companies. 12. STOCKS
GROUP COMPANY ---- ------- BRITISH BRITISH POUND'000 POUND'000 Funeral supplies and monumental masonry......................... 919 908 ==== ===
In the opinion of the Directors there is no significant difference between the balance sheet amount of stocks and the replacement cost. 13. DEBTORS
GROUP COMPANY ---- ------- BRITISH BRITISH POUND'000 POUND'000 Trade debtors................................................... 7,035 6,863 Amounts due from Group companies................................ -- 32,072 Other debtors................................................... 165 95 Prepayments..................................................... 710 597 Corporation tax recoverable..................................... 730 730 Advance corporation tax recoverable............................. 575 575 Group tax relief receivable..................................... -- 321 ----- ------ 9,215 41,253 ===== ======
47 48 PLANTSBROOK GROUP PLC NOTES TO THE ACCOUNTS -- (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 1993 14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
GROUP COMPANY ------- ------- BRITISH BRITISH POUND'000 POUND'000 BORROWINGS Bank overdraft................................................ -- 4,004 Hire purchase obligations (note 16)........................... 388 388 ------ ------- 388 4,392 OTHER Trade creditors............................................... 2,487 2,487 Amounts owed to Group companies............................... -- 6,591 Corporation tax............................................... 4,547 3,139 Advance corporation tax....................................... 1,046 1,046 Other taxation and social security............................ 459 457 Proposed dividend............................................. 2,300 2,300 Accruals and deferred income.................................. 4,889 4,459 10% loan notes 1994........................................... 333 333 Group tax relief payable...................................... -- 316 ------ ------- 16,449 25,520 ====== ======
15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
GROUP COMPANY ------- ------- BRITISH BRITISH POUND'000 POUND'000 Borrowings Bank loan..................................................... 7,500 7,500 Loan from subsidiary company.................................. -- 25,000 Hire purchase obligations (note 16)........................... 728 728 ----- ------- 8,228 33,228 Other Corporation tax............................................... 32 -- Other creditors............................................... 106 105 ----- ------ 8,366 33,333 ====== ======
The bank loan bears interest at 0.75% over LIBOR and is due for repayment on 31 March 1995. 16. OBLIGATIONS UNDER HIRE PURCHASE AGREEMENTS AND OPERATING LEASES
GROUP COMPANY ------- ------- BRITISH BRITISH POUND'000 POUND'000 Payable within one year......................................... 388 388 Payable between one and five years.............................. 728 728 ----- ------ 1,116 1,116 ===== ======
The hire purchase liabilities are secured on the related assets. 48 49 PLANTSBROOK GROUP PLC NOTES TO THE ACCOUNTS -- (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 1993 16. OBLIGATIONS UNDER HIRE PURCHASE AGREEMENTS AND OPERATING LEASES -- (CONTINUED) Charges under non-cancellable operating leases to which the Group is committed in the year ending 31 December 1993:
LAND AND BUILDINGS OTHER TOTAL --------- ----- ----- BRITISH BRITISH BRITISH POUND'000 POUND'000 POUND'000 On leases expiring Within one year.......................................... 129 22 151 Between two and five years............................... 765 80 845 After five years......................................... 1,595 12 1,607 ----- ---- ----- 2,489 114 2,603 ===== ==== =====
17. PROVISIONS FOR LIABILITIES AND CHARGES
GROUP COMPANY -------- ------- BRITISH BRITISH POUND'000 POUND'000 Deferred taxation: At 31 December 1992............................................. 713 1,297 Profit and loss account (note 6)................................ (713) 613 ----- ------- At 31 December 1993............................................. -- 1,910 ====== =======
The full potential deferred tax liability and provision calculated at the rate of 33% is as follows:
FULL POTENTIAL PROVISION --------- --------- BRITISH BRITISH POUND'000 POUND'000 Accelerated capital allowances.................................. 847 201 Other short term timing differences............................. (155) (201) ----- ------- 692 -- ==== =======
18. CALLED UP SHARE CAPITAL
NUMBER ---------- Authorised share capital Ordinary shares of 10p each............................ 128,452,401 12,845,240 6.75p Convertible Preference shares 1991-2001 of 10p each................................................ 15,983,537 1,598,354 6.75p Convertible Preference shares 1991-1997 of 10p each................................................ 15,982,423 1,598,242 Deferred shares of 10p each............................ 18,525 1,853 ----------- 16,043,689 ========== Allotted, called up and fully paid Ordinary shares of 10p each............................ 99,981,806 9,998,181 6.75p Convertible Preference shares 1991-2001 of 10p each................................................ 15,528,640 1,552,864 ----------- 11,551,045 ==========
Issued during the year On 10 February 1993, 20,000 new Ordinary shares were issued and allotted at 42p fully paid per share under the terms of the Company's employee share option scheme. 49 50 PLANTSBROOK GROUP PLC NOTES TO THE ACCOUNTS -- (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 1993 18. CALLED UP SHARE CAPITAL -- (CONTINUED) On 3 June 1993, the Company issued 2,985,075 new Ordinary shares at a price of 67p per share by way of a private placing. On 8 September 1993, 2,491 6.75p Convertible Preference shares 1991-2001 were converted to 1,027 Ordinary shares at the then applicable conversion rate. The balance was converted into 1,464 Deferred shares of 10p each which, on 8 October 1993, were redeemed by the Company for a total consideration of 1p. On 8 October 1993, 15,417,957 6.75p Convertible Preference shares 1991-1997 were converted to 25,859,017 Ordinary shares at the then applicable conversion rate. Conversion was effected by the issue of the appropriate number of new Ordinary shares at an aggregate subscription price sufficient to fund the redemption of the shares converted at a redemption price of British Pound 1 per share. On 30 November 1993, 39,075 6.75p Convertible Preference shares 1991-1997 were converted to 65,494 Ordinary shares at the then applicable conversion rate. Conversion was effected by redeeming the shares to be converted for British Pound 1 per share and applying the proceeds in paying up the appropriate number of new Ordinary shares arising on conversion. On 30 November 1993, 9,443 6.75p Convertible Preference shares 1991-1997 were redeemed by the Company in accordance with its articles of association at a total redemption price of British Pound 1.0283 per share. The 6.75p Convertible Preference shares 1991-2001 will ordinarily be convertible at the option of the holder on 31 August in each of the years 1991 to 2001 inclusive. Conversion will be effected on the basis of 0.413639 Ordinary shares for every 10p in nominal amount of the 6.75p Convertible Preference shares 1991-2001. Redemption is at the Company's option after the last date for conversion in 2001. Any such shares not previously converted or redeemed will be redeemed subject to statutory provisions on 30 October 2002. The shares will be redeemed at the amount paid-up on each share together with a premium of 90p per share and any arrears and accruals of dividends to the date of redemption. Subsequent event On 5 January 1994, 20,000 new Ordinary shares were issued and allotted at 42p fully paid per share under the terms of the Company's employee share option scheme. Share options Under the terms of the Company's employee share option scheme, the following options are outstanding at 31 December 1993.
NUMBER OF SHARES - -------------------------------------- LAPSED, AT 31 RELEASED OR AT 31 DECEMBER EXERCISED ISSUED IN DECEMBER PRICE PER FIRST DATE LAST DATE 1992 1993 1993 1993 SHARE EXERCISABLE EXERCISABLE - -------- ----------- --------- --------- --------- ------------------ ------------------ 5,364 (5,364) -- -- 85p 13 June 1989 13 June 1996 535,551 (408,155) -- 127,396 138p 22 December 1992 22 December 1999 25,000 -- -- 25,000 98p 14 May 1994 14 May 2001 125,000 -- -- 125,000 60p 1 November 1994 1 November 2001 639,698 (40,000) -- 599,698 42p 22 April 1995 22 April 2002 -- -- 225,000 225,000 68p 28 April 1996 28 April 2003 -- -- 257,500 257,500 84p 20 September 1996 20 September 2003 - --------- ----------- --------- --------- 1,330,613 (453,519) 482,500 1,359,594 ========= =========== ========= =========
50 51 PLANTSBROOK GROUP PLC NOTES TO THE ACCOUNTS -- (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 1993 18. CALLED UP SHARE CAPITAL -- (CONTINUED) Options over 433,519 Ordinary shares to former employees of the Company lapsed under the terms of the scheme's rules and accordingly the holders were informed by the Company Secretary on 1 July 1993. 19. RESERVES
CAPITAL PROFIT REDEMP- REVALU- AND GOODWILL SHARE MERGER TION ATION LOSS WRITTEN PREMIUM RESERVE RESERVE RESERVE ACCOUNT OFF ------ ------ ------- ------- ------- ------- BRITISH BRITISH BRITISH BRITISH BRITISH BRITISH POUND'000 POUND'000 POUND'000 POUND'000 POUND'000 POUND'000 (a) Group At 31 December 1992.................. 10,349 81,563 2 -- (1,628) (79,451) Conversion of Preference shares... (1,075) -- -- -- -- -- Premium arising on new share issues.......................... 1,707 -- -- -- -- -- Expenses arising on new share issues.......................... (14) -- -- -- -- -- Goodwill written off (note 19(c)).......................... -- -- -- -- -- (1,640) Revaluation of Trust Fund investments..................... -- -- -- 136 -- -- Retained profit................... -- -- -- -- 3,262 -- ------ ------ --- --- ------ ------- At 31 December 1993............. 10,967 81,563 2 136 1,634 (81,091) ====== ====== === === ====== =======
PROFIT CAPITAL AND SHARE MERGER REDEMPTION LOSS PREMIUM RESERVE RESERVE ACCOUNT ------ ------ ------- ------- BRITISH BRITISH BRITISH BRITISH POUND'000 POUND'000 POUND'000 POUND'000 (b) Company At 31 December 1992................................ 10,349 81,563 2 6,240 Conversion of Preference shares................. (1,075) -- -- -- Premium arising on new share issues............. 1,707 -- -- -- Expenses arising on new share issues............ (14) -- -- -- Retained profit................................. -- -- -- 4,170 ------ ------ ---- ------ At 31 December 1993........................... 10,967 81,563 2 10,410 ====== ====== ==== ======
BOOK FAIR VALUE VALUE OF FAIR OF NET VALUE NET CONSID- ASSETS PROVISIONS ASSETS GOODWILL ERATION ------ ---------- ------ -------- ------- BRITISH BRITISH BRITISH BRITISH BRITISH POUND'000 POUND'000 POUND'000 POUND'000 POUND'000 (c) Goodwill written off Businesses acquired: Portland Funeral Services................ 320 (30) 290 615 905 Henry Paul Limited....................... 420 (160) 260 594 854 Fisher Funeral Services.................. 115 (10) 105 137 242 John Campbell Funeral Undertakers........ 195 (15) 180 42 222 Hannington Funeral Directors............. 75 (40) 35 245 280 Others................................... -- -- -- 7 7 ----- ---- --- ----- ----- 1,125 (255) 870 1,640 2,510 ===== ==== === ===== =====
The provisions of British Pound 255,000 relate to refurbishments of properties acquired to bring these properties up to the Group standard. 51 52 PLANTSBROOK GROUP PLC NOTES TO THE ACCOUNTS -- (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 1993 20. PENSION COMMITMENTS The Group operates a defined benefit pension scheme for its employees, the funds of which are administered by Trustees. Actuarial valuations are performed every three years and contributions made in accordance with the actuaries' recommendations. The scheme is an Exempt Approved Scheme under the terms of the Income and Corporation Taxes Act 1988 and members are contracted out of the State Earnings Related Pension Scheme. The profit and loss account charge for pension costs is made in accordance with the accounting policy in note 1. The Group Pension Scheme had an actuarial valuation undertaken as at 6 April 1993 using the Projected Unit method of valuation, with a five year control period. The principal assumptions were investment yields of 9% and increases in pensionable earnings of 7% per annum. At 6 April 1993, Group scheme assets had a fund value of British Pound 3,085,000 representing 76% of the liabilities for benefits that had accrued to members, allowing for expected future increases in pensionable earnings. Following recommendations from the Actuary, the total contribution was increased from 13.6% to 16.2% with effect from 1 January 1993, allowing for the amortisation of the deficit over 15 years, the average remaining service life of employees. The net pension cost charged to the profit and loss account in the year ended 31 December 1993 in respect of the defined benefit scheme amounted to British Pound 510,000 and no accounting adjustment has been made for the deficit referred to above on the grounds of immateriality. 52 53 PLANTSBROOK GROUP PLC NOTES TO THE ACCOUNTS -- (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 1993 21. ADJUSTMENTS AND DISCLOSURES TO REFLECT U.S. GAAP These consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United Kingdom (UK GAAP) which conform in all material respects with generally accepted accounting principles in the United States (US GAAP) except as set out below. CONSOLIDATED PROFIT AND LOSS ACCOUNT
U.K. ADJUSTMENTS GAAP ----------------------------- STATUTORY DEFERRED U.S. ACCOUNTS DEPRECIATION GOODWILL TAX DIVIDENDS GAAP ------- ------------ -------- --- --------- ----- BRITISH BRITISH BRITISH BRITISH BRITISH BRITISH POUND'000 POUND'000 POUND'000 POUND'000 POUND'000 POUND'000 Turnover Continuing operations.... 51,249 51,249 Acquisitions............. 800 800 ------- ---- ------ --- ---- ------- 52,049 52,049 Cost of sales............ (15,429) (15,429) ------- ---- ------ --- ---- ------- Gross Profit............... 36,620 36,620 Administrative expenses.... (24,017) (24,017) Depreciation-buildings..... -- (203)(1) (203) Goodwill amortisation...... -- (2,027)(2) (2,027) ------- ---- ------ --- ---- ------- Operating profit........... 12,603 (203) (2,027) 10,373 Interest receivable........ 210 210 Interest payable........... (796) (796) ------- ---- ------ --- ---- ------- Profit on Ordinary activities before Taxation................. 12,017 (203) (2,027) 9,787 Taxation................... (3,781) 68(3) (3,713) ------- ---- ------ --- ---- ------- Profit on Ordinary activities after Taxation................. 8,236 (203) (2,027) 68 6,074 Minority interests......... (5) (5) ------- ---- ------ --- ---- ------- Profit for the Financial Year..................... 8,231 (203) (2,027) 68 6,069 Dividends.................. (4,969) 879(4) (4,090) ------- ---- ------ --- ---- ------- Retained Profit for the Financial Year........... 3,262 (203) (2,027) 68 879 1,979 ======= ==== ====== == ==== =======
The adjustments included in the above note are explained beginning on page 54 53 54 PLANTSBROOK GROUP PLC NOTES TO THE ACCOUNTS -- (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 1993 21. ADJUSTMENTS AND DISCLOSURES TO REFLECT U.S. GAAP -- (CONTINUED) CONSOLIDATED BALANCE SHEET
U.K. GAAP ADJUSTMENTS STATUTORY ----------------- DEFERRED ACCOUNTS DEPRECIATION GOODWILL TAX DIVIDENDS U.S. GAAP ------- ------------ -------- --- --------- --------- BRITISH BRITISH BRITISH BRITISH BRITISH BRITISH POUND'000 POUND'000 POUND'000 POUND'000 POUND'000 POUND'000 Fixed Assets Tangible assets excluding land & buildings.................... 9,136 9,136 Land & buildings: NBV at 31.12.93....................... 27,217 (893)(1) 26,324 ------- ---- ------ ---- ------- --------- Total tangible assets........ 36,353 (893) 35,460 Intangible assets: Goodwill 31.12.93......................... 72,143(2) 72,143 Trust fund assets.................. 1,170 1,170 ------- ---- ------ ---- ------- --------- 37,523 (893) 72,143 108,773 Current Assets Stock............................ 919 919 Debtors.......................... 9,215 (575) 8,640 Cash at hand and in bank......... 1,924 1,924 ------- ---- ------ ---- ------- -------- 12,058 (575) 11,483 Creditors: Amounts falling due within one year.................. (16,449) 2,875 (13,574) ------- ---- ------ ---- ------- -------- Net Current Liabilities............ (4,391) 2,300 (2,091) ------- ---- ------ ---- ------- -------- Total Assets less Current Liabilities............... 33,132 (893) 72,143 2,300 106,682 Creditors: Amounts falling due after more than one year......... (8,366) (8,366) Provision for liabilities and Charges.......................... (692)(3) (692) ------- ---- ------ ---- ------- ------- 24,766 (893) 72,143 (692) 2,300 97,624 ======== ==== ====== ==== ======= ======= Capital and Reserves Called up share capital.......... 11,551 11,551 Share premium account............ 10,967 10,967 Merger reserve................... 81,563 81,563 Capital redemption reserve....... 2 2 Revaluation reserve.............. 136 136 Profit and loss account-b/f...... (1,628) (690)(1) (6,921)(2) (760)(3) 1,421 (8,578) Profit and loss account-1993..... 3,262 (203)(1) (2,027)(2) 68(3) 879 1,979 ------- ---- ------ ---- ------- ------- Shareholders' Funds-Gross.......... 105,853 (893) (8,948) (692) 2,300 97,620 Goodwill written off............... (81,091) 81,091(2) Shareholders' Funds-Net............ 24,762 (893) 72,143 (692) 2,300 97,620 Minority interests................. 4 4 ------- ---- ------ ---- ------- ------- 24,766 (893) 72,143 (692) 2,300 97,624 ======= ==== ====== ==== ======= =======
- --------------- (1) Under UK GAAP, in certain circumstances, it is acceptable not to provide for depreciation on freehold and long leasehold land and buildings. Under US GAAP buildings must be depreciated. For the purposes of the above adjustment, depreciation has been provided on freehold and long leasehold buildings on a straight line basis over 50 years. 54 55 PLANTSBROOK GROUP PLC NOTES TO THE ACCOUNTS -- (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 1993 21. ADJUSTMENTS AND DISCLOSURES TO REFLECT U.S. GAAP -- (CONTINUED) (2) Under UK GAAP, goodwill can be eliminated from the accounts immediately on acquisition against reserves. Under US GAAP, goodwill must be capitalised and amortised to the income statement over its estimated useful life. For the purposes of the above adjustment, goodwill has been capitalised and is being amortised over a 40 year period. (3) Under UK GAAP, deferred taxation is provided under the liability method only to the extent that it is probable that an asset or liability will crystalize. Under US GAAP deferred tax liabilities or assets are provided on all temporary timing differences existing at the end of a financial period. For the purposes of the above adjustment, a deferred tax provision has been recognised in respect of all timing differences. (4) Under UK GAAP, dividends are recognised in the period to which they relate. Under US GAAP, dividends are recognised in the period when they are formally declared. For the purposes of the above adjustment, the 1993 proposed dividend that was recognised in the 1993 Plantsbrook accounts has not been recognised in the 1993 US GAAP figures. However the 1993 US GAAP profit and loss account has been adjusted to reflect the 1992 proposed dividend that was declared during 1993. (5) Under UK GAAP, income from pre-need funeral plans is taken to the profit and loss account as received. This is disclosed in Note 1 to the financial statements on page 41. Under the US GAAP it is not acceptable to recognise principal payments pursuant to the sale of pre-need funeral plans until the funeral has been conducted. No adjustment has been made for this difference between UK GAAP and US GAAP as the impact on the profit and loss account is not considered likely to be material. (6) Operating Lease Commitments The annual payments under non-cancellable operating leases to which the company is committed are as follows:
BRITISH POUND'000 --------- 1994............................................................ 2,549 1995............................................................ 2,398 1996............................................................ 2,145 1997............................................................ 1,910 1998............................................................ 1,751 Thereafter...................................................... 12,942 23,695
The majority of operating lease commitments relate to land and buildings. (7) Hire purchase obligations The future payments to which the company is committed under hire purchase arrangements are as follows:
BRITISH POUND'000 --------- 1994............................................................. 388 1995............................................................. 337 1996............................................................. 300 1997............................................................. 91 1998............................................................. -- Thereafter....................................................... -- ------ 1,116
55 56 PLANTSBROOK GROUP PLC NOTES TO THE ACCOUNTS -- (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 1993 21. ADJUSTMENTS AND DISCLOSURES TO REFLECT U.S. GAAP -- (CONTINUED) (8) Taxation The provision for taxation for the year ended 31 December 1993 in accordance with US GAAP is as follows:
BRITISH POUND'000 --------- Current taxes.................................................... 4,650 Current deferred................................................. (861) Future deferred.................................................. 80 Adjustment in respect of prior years............................. (156) ------ 3,713
Deferred tax assets and liabilities as at 31 December 1993 were as follows:
BRITISH POUND'000 --------- Non current -- Accelerated capital allowances.................... 847 Non current -- Pre arranged funeral plans........................ 355 ------ Deferred tax liabilities......................................... 1,202 Current -- Accrued liabilities................................... (510) ------ Deferred tax assets.............................................. (510) ------ Net deferred tax liabilities..................................... 692
(9) Earnings per share The Earnings per share under US GAAP is as follows: Primary.......................................................... 5.67p Fully Diluted.................................................... --
The primary earnings per share figure for the year ended 31 December 1993 is based on the weighted average number of 80,071,289 Ordinary shares in issue during the year, after allowing for the allotment of shares under the share option scheme and the profit of British Pound 4,543,000 which is stated after taxation minority interests and preference dividends, and an adjustment to income for interest on the share options. The fully diluted earnings per share calculation is based on 106,477,621 Ordinary shares in issue after allowing for full conversion rights attaching to convertible securities and the allotment of shares under the share option scheme and a corresponding adjustment to income for interest. The conversion of the 1997 Preference shares in October 1993 has been taken into consideration. The calculation produced anti-dilutive results. 56 57 PLANTSBROOK GROUP PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE PERIOD ENDED 30TH JUNE, 1994 AND 1993 (UNAUDITED)
1994 1993 ---------------------------- BRITISH BRITISH NOTES POUND'000 POUND'000 ------ --------- --------- Turnover Continuing Operations................................................. 26,222 26,346 Acquisitions.......................................................... 845 -- -------- -------- 27,067 26,346 Cost of Sales........................................................... (8,195) (7,569) -------- -------- Gross Profit............................................................ 18,872 18,777 Administrative Expenses................................................. (12,270) (12,482) -------- -------- Operating Profit........................................................ 6,602 6,295 Interest Receivable..................................................... 130 126 Interest Payable........................................................ (292) (460) -------- -------- Profit on Ordinary Activities before Taxation........................... 6,440 5,961 Taxation................................................................ (2,029) (1,967) -------- -------- Profit on Ordinary Activities after Taxation............................ 4,411 3,994 Minority Interests...................................................... (2) (4) -------- -------- Profit after Taxation................................................... 4,409 3,990 Dividends -- Preference and Ordinary.................................... (524) (1,861) -------- -------- Profits Retained........................................................ 3,885 2,129 -------- -------- Earnings per Share Fully diluted......................................................... 2 4.11p 3.83p -------- -------- Basic................................................................. 3.89p 4.11p
- --------------- Notes 1. It is not feasible to separate the impact of acquisitions on operating profit since the new businesses have been fully integrated into the Group's existing branch network and financial reporting structure. 2. The basic earnings per share calculation for the six months ended 30th June, 1994 has been based on the weighted average of 100,001,364 (1993: 71,512,061) Ordinary shares in issue during the period and the profit after taxation, minority interests and preference dividends. The fully diluted earnings per Ordinary share calculation has been based upon 107,764,651 (1993: 105,270,093) Ordinary shares in issue, after allowing for full conversion rights attaching to convertible securities and the allotment of shares under the option scheme, with a corresponding adjustment to income for interest. 3. The financial information set out in this announcement which has been prepared under Accounting Policies consistent with those adopted for the accounts for the year ended 31st December, 1993 does not constitute full accounts as referred to in Section 254 of the Companies Act 1985. 57 58 PLANTSBROOK GROUP PLC CONSOLIDATED BALANCE SHEET AS AT 30TH JUNE, 1994 (UNAUDITED)
BRITISH POUND'000 --------- Fixed Assets Tangible assets.................................................................. 39,362 Trust Fund assets................................................................ 625 ------- 39,987 Current assets Stocks........................................................................... 1,068 Debtors.......................................................................... 6,656 Cash at bank and in hand......................................................... 2,412 ------- 10,136 ------- Creditors: Amounts falling due within one year Borrowings....................................................................... (500) Other creditors.................................................................. (16,920) ------- (17,420) Net current liabilities............................................................ (7,284) ------- Total assets less current liabilities.............................................. 32,703 Creditors: Amounts falling due after more than one year Borrowings....................................................................... (8,509) Other creditors.................................................................. (326) Provisions for liabilities and charges............................................. -- ------- 23,868 ------- Capital and Reserves Called up share capital.......................................................... 11,553 Share premium account............................................................ 10,972 Merger reserve................................................................... 81,563 Capital redemption reserve....................................................... 2 Profit and loss account.......................................................... 5,519 ------- Shareholders' Funds -- Gross....................................................... 109,609 Goodwill written off............................................................... (85,748) ------- Shareholder's Funds -- Net......................................................... 23,861 Minority interests................................................................. 7 ------- 23,868 ------- Reconciliation of movements in Shareholders' Funds Profit for the period............................................................ 4,409 Dividends........................................................................ (524) ------- Retained profit for the period..................................................... 3,885 Issue of Shares.................................................................... 7 Goodwill written off............................................................... (4,657) Revaluation of Trust Fund Investments.............................................. (136) ------- Net reduction to Shareholders' Funds............................................... (901) Opening Shareholders' Funds -- Net................................................. 24,762 ------- Closing Shareholders' Funds -- Net................................................. 23,861 -------
58 59 PLANTSBROOK GROUP PLC CASH FLOW STATEMENT FOR THE PERIOD ENDED 30TH JUNE, 1994 AND 1993 (UNAUDITED)
1994 1993 -------------------------------------------------- BRITISH BRITISH BRITISH BRITISH NOTES POUND'000 POUND'000 POUND'000 POUND'000 ------ --------- --------- --------- --------- Net cash inflow from operating activities.................... (i) 10,220 8,620 Returns on investments and servicing of finance.............. Net interest paid.......................................... (166) (275) Dividends paid............................................. (524) (2,488) ------ ------ (690) (2,763) Taxation..................................................... Taxation received/(paid)..................................... 581 (41) ------ ------- Net cash inflow before investing activities.................. 10,111 5,816 Investing activities......................................... Purchase of tangible fixed assets............................ (2,213) (1,611) Purchase of trust fund investments........................... (608) -- Purchase of businesses net of cash and cash equivalents...... (6,497) (2,005) Disposal of tangible fixed assets............................ 294 582 ------ ------ (9,024) (3,034) ------ ------ Net cash inflow before financing............................. 1,087 2,782 Financing.................................................. Issue of shares............................................ (ii) 8 2,008 Share conversion and issue expenses........................ (ii) (1) (15) Hire purchase repayments................................... (ii) (273) (3,371) Loan notes repaid.......................................... (ii) (333) (409) ------ ------ (599) (1,787) ------ ------- Increase in cash and cash equivalents........................ (iii) 488 995 ------ -------
59 60 PLANTSBROOK GROUP PLC CASH FLOW STATEMENT (CONTINUED) FOR THE SIX MONTHS ENDED 30TH JUNE, 1994 AND 1993 (UNAUDITED) NOTES (I) RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING ACTIVITIES
1994 1993 ---------------------------- BRITISH BRITISH POUND'000 POUND'000 --------- --------- Operating profit............................................................ 6,602 6,295 Depreciation................................................................ 1,472 1,324 Profit on disposal of tangible fixed assets................................. (66) 14 Trust fund investment written down.......................................... 313 -- Increase in liability in respect of prepaid funeral plans................... 704 583 Working capital movements: Stocks...................................................................... (139) 70 Debtors..................................................................... 1,254 1,034 Creditors................................................................... 80 (700) ------ ------ 10,220 8,620 ====== ======
(II) ANALYSIS OF MOVEMENTS IN FINANCING DURING THE YEAR
LOAN STOCK AND SHARE HIRE BANK CAPITAL* PURCHASE LOAN ------- -------- ------- BRITISH BRITISH BRITISH POUND'000 POUND'000 POUND'000 At 31st December, 1992.................................. 104,083 1,449 7,500 Share issue proceeds.................................... 8 0 0 Share conversion and issue expenses..................... (1) 0 0 Hire purchase and loan finance.......................... 0 666 0 Hire purchase repayments................................ 0 (273) 0 Loan notes repaid....................................... 0 (333) 0 ------- ----- ----- At 30th June, 1994...................................... 104,090 1,509 7,500 ======= ===== =====
- --------------- * Including share premium, merger reserve and capital redemption reserve. (III) ANALYSIS OF MOVEMENTS IN CASH AND CASH EQUIVALENTS DURING THE YEAR
MOVEMENT IN 1994 1994 1993 PERIOD ---- ---- ------ BRITISH BRITISH BRITISH POUND'000 POUND'000 POUND'000 Cash at bank and in hand.................................. 2,412 1,924 488 Bank overdraft............................................ 0 0 0 ----- ----- ----- 2,412 1,924 488 ===== ===== =====
60 61 PLANTSBROOK GROUP PLC CASH FLOW STATEMENT -- (CONTINUED) FOR THE SIX MONTHS ENDED 30TH JUNE, 1994 AND 1993 (UNAUDITED) NOTES -- (CONTINUED) (IV) PURCHASE OF BUSINESSES Fair value of net assets acquired
1994 1993 --------------------------- BRITISH BRITISH POUND'000 POUND'000 Tangible fixed assets........................................................ 1,830 395 Stock........................................................................ 10 -- ----- ----- 1,840 395 Goodwill..................................................................... 4,657 1,610 ----- ----- 6,497 2,005 ===== ===== Analysis of the net outflow of cash and cash equivalents in respect of the purchase of businesses Cash consideration......................................................... 6,497 2,005 Bank loans of acquired businesses.......................................... 0 -- Cash acquired.............................................................. 0 -- ----- ----- 6,497 2,005 ===== =====
61 62 PLANTSBROOK GROUP PLC NOTES TO THE ACCOUNTS FOR THE SIX MONTHS ENDED 30TH JUNE, 1994 AND 1993 (UNAUDITED) 1. MATERIAL CHANGES The directors of Plantsbrook are not aware of any material changes in the financial or trading position of the Plantsbrook Group since 31st December, 1993, the date to which the last audited consolidated accounts were drawn up. 2. ADJUSTMENTS AND DISCLOSURES TO REFLECT U.S. GAAP These consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United Kingdom (UK GAAP) which conform in all material respects with generally accepted accounting principles in the United States (US GAAP) except as set out below. CONSOLIDATED PROFIT AND LOSS ACCOUNT
1994 ---------------------------------------------- U.K. ADJUSTMENTS GAAP --------------------- U.S. ACCOUNTS DEPRECIATION GOODWILL GAAP ------- ------------ -------- ------- BRITISH BRITISH BRITISH BRITISH POUND'000 POUND'000 POUND'000 POUND'000 Turnover....................................... 27,067 27,067 Costs and Expenses............................. (20,465) (102)(1) (1,043)(2) (21,610) Net Interest Payable........................... (162) (162) Tax on Profit on Ordinary Activities........... (2,029) (2,029) ------- ---- ------ ------- Profit on Ordinary Activities.................. 4,411 (102) (1,043) 3,266 ======= ==== ====== =======
1993 ---------------------------------------------- U.K. ADJUSTMENTS GAAP --------------------- U.S. ACCOUNTS DEPRECIATION GOODWILL GAAP ------- ------------ -------- ------- BRITISH BRITISH BRITISH BRITISH POUND'000 POUND'000 POUND'000 POUND'000 Turnover....................................... 26,346 26,346 Costs and Expenses............................. (20,051) (100)(1) (995)(2) (21,146) Net Interest Payable........................... (334) (334) Tax on Profit on Ordinary Activities........... (1,967) (1,967) ------- ---- ------ ------- Profit on Ordinary Activities.................. 3,994 (100) (995) 2,899 ======= ==== ====== =======
CONSOLIDATED BALANCE SHEET
ADJUSTMENTS U.K. ---------------------------- GAAP DEFERRED U.S. ACCOUNT DEPRECIATION GOODWILL TAX GAAP --------- ------------ -------- -------- ----- BRITISH BRITISH BRITISH BRITISH BRITISH POUND'000 POUND'000 POUND'000 POUND'000 POUND'000 Fixed Assets............................ 39,987 (995) 38,992 Intangible Asset: Goodwill.............. -- 75,757(2) 75,757 Net Current Liabilities................. (8,534) (8,534) Creditors: Amounts due After One Year... (8,835) (692)(3) (9,527) ------ ---- ------ ---- ------ 22,618 (995) 75,757 (692) 96,688 ------ ---- ------ ---- ------ Capital and Reserves.................... 22,618 (995) 75,757 (692) 96,688 ====== ==== ====== ==== ======
- --------------- (1) Under UK GAAP, in certain circumstances, it is acceptable not to provide for depreciation on freehold and long leasehold land and buildings. Under US GAAP buildings must be depreciated. For the purposes of the above adjustment, depreciation has been provided on freehold and long leasehold buildings on a straight line basis over 50 years. (2) Under UK GAAP, goodwill can be eliminated from the accounts immediately on acquisition against reserves. Under US GAAP, goodwill must be capitalised and amortised to the income statement over its estimated useful life. For the purposes of the above adjustment, goodwill has been capitalised and is being amortised over a 40 year period. (3) Under UK GAAP, deferred taxation is provided under the liability method only to the extent that it is probable that an asset or liability will crystallize. Under US GAAP deferred tax liabilities or assets are provided on all temporary timing differences existing at the end of a financial period. For the purposes of the above adjustment, a deferred tax provision has been recognised in respect of all timing differences. 62 63 PLANTSBROOK GROUP PLC NOTES TO THE ACCOUNTS FOR THE SIX MONTHS ENDED 30TH JUNE, 1994 AND 1993 (UNAUDITED) 2. ADJUSTMENTS AND DISCLOSURES TO REFLECT U.S. GAAP -- (CONTINUED) (4) Under UK GAAP, dividends are recognised in the period to which they relate. Under US GAAP, dividend are recognised in the period when they are formally declared. For the purposes of the above adjustment, the 1993 proposed dividend that was recognised in the 1993 Plantsbrook accounts has not been recognised in the 1993 US GAAP figures. However the 1993 US GAAP profit and loss account has been adjusted to reflect the 1992 proposed dividend that was declared during 1993. (5) Under UK GAAP, income from pre-need funeral plans is taken to the profit and loss account as received. This is disclosed in Note 1 to the financial statements on page 41. Under US GAAP it is not acceptable to recognise principal payments pursuant to the sale of pre-need funeral plans until the funeral has been conducted. No adjustment has been made for this difference between UK GAAP and US GAAP as the impact on the profit and loss account is not considered likely to be material. (6) Earnings per share 1994 1993 -------------------- The Earnings per share under US GAAP is as follows: Primary............................................................. 2.73p 2.59p Fully Diluted....................................................... * *
- --------------- * Anti-dilutive The primary earnings per share figure for the six months ended 30th June 1994 is based on the weighted average number of 101,341,400 (1993: 72,905,409) Ordinary shares in issue during the period, after allowing for the allotment of shares under the share option scheme and the profit of British Pound 2,796,000 (1993: British Pound 1,892,000) which is stated after taxation minority interests and preference dividends, and an adjustment to income for interest on the share options. 63 64 Item 7. Financial Statements and Exhibits. (c) Exhibits: 23.1 -Consent of Independent Accountants (Robson Rhodes) 23.2 -Consent of Independent Accountants (Price Waterhouse) 64 65 SIGNATURE 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. SERVICE CORPORATION INTERNATIONAL By: /s/ SAMUEL W. RIZZO Samuel W. Rizzo Executive Vice President Chief Financial Officer/Treasurer (Principal Financial Officer) November 14, 1994 65 66 EXHIBIT INDEX Exhibit No. 23.1 -Consent of Independent Accountants (Robson Rhodes) 23.2 -Consent of Independent Accountants (Price Waterhouse) EX-23.1 2 CONSENT OF ROBSON RHODES 1 EXHIBIT 23.1 CONSENT OF INDEPENDENT ACCOUNTANTS We consent to the incorporation by reference in the registration statements on Form S-4 (File No. 33-54996), on Form S-3 (File No. 33-56069), on Form S-8 (File No. 33-9790), on Form S-8 (File No. 33-17982), on Form S-8 (File No. 33-54401) and on Form S-8 (File No. 33-50987) of our report on our audit of the financial statements of Great Southern Group PLC as of December 31, 1993 and for the year then ended, which report is included in Service Corporation International's Form 8-K, dated November 14, 1994. Yours faithfully /s/ ROBSON RHODES ROBSON RHODES 14 November 1994 EX-23.2 3 CONSENT OF PRICE WATERHOUSE 1 Exhibit 23.2 CONSENT OF INDEPENDENT ACCOUNTANTS We hereby consent to the incorporation by reference in the Registration Statements on Form S-4 (File No 33-54996), on Form S-3 (File No 33-56069), on Form S-8 (File No. 33-9790), on Form S-8 (File No. 33-17982), on Form S-8 (File No. 33-54401) and on Form S-8 (File No. 33-50987) of Service Corporation International of our report dated November 14, 1994 relating to the financial statements of Plantsbrook Group plc which report is included in Service Corporation International's Form 8-K dated November 14, 1994. /s/ PRICE WATERHOUSE Price Waterhouse Birmingham England November 14, 1994 -----END PRIVACY-ENHANCED MESSAGE-----