EXHIBIT 99.5
United Breweries International (UK) Limited Balance Sheet,
Statement of Income and Stockholder's Equity, and Statement
of Cash Flows for the years ended December 31, 1999 and 2000
UNITED BREWERIES INTERNATIONAL (UK) LIMITED
REPORT OF THE DIRECTORS
The directors submit their report and the financial statements of the Group for
the year ended 31st December 2000.
PRINCIPAL ACTIVITIES AND BUSINESS REVIEW
The principal activities of the Group during the year continued to be that of
marketing and distribution of beer and wines and commission agents for the sale
of beverages.
The results for the year and the financial position at the year end were
considered to be satisfactory by the directors who expect continued growth in
the forseeable future.
RESULTS AND DIVIDENDS
The results for the year are set out on page 4.
The directors do not recommend the payment of a dividend.
FIXED ASSETS
Details relating to fixed assets are shown in the notes to the financial
statements.
DIRECTORS AND INTERESTS IN SHARES
The directors who served during the year and their beneficial interests in the
shares of the company were as stated below:
Ordinary shares of(pound)1 each
2000 1999
M. K. Nambiar - -
V. S. Kumar - -
G. M. K. Lodhi - -
AUDITORS
The auditors, Hawsons Chartered Accountants, were newly appointed during the
year. They have indicated that they are willing to be reappointed at the
forthcoming Annual General Meeting.
On behalf of the Board.
G. M. K. Lodhi
Director / Secretary Date: 9th March 2001
Registered Office:
75 Westow Hill,
Crystal Palace,
London,
SE19 1TX
18
UNITED BREWERIES INTERNATIONAL (UK) LIMITED
STATEMENT OF DIRECTORS' RESPONSIBILITIES
Company law requires the directors to prepare financial statements for each
financial year which give a true and fair view of the state of affairs of the
company and the group and of the profit or loss for that period. In preparing
those financial statements, the directors are required to:-
(1) Select suitable accounting policies and then apply them consistently.
(2) Make judgements and estimates that are reasonable and prudent.
(3) State whether applicable accounting standards have been followed,
subject to any material departures disclosed and explained in the
financial statements.
(4) Prepare the financial statements on the going concern basis unless it
is inappropriate to presume that the group will continue in business.
The directors are responsible for keeping proper accounting records which
disclose with reasonable accuracy at any time the financial position of the
group and to enable them to ensure that the financial statements comply with the
Companies Act 1985. They are also responsible for safeguarding the assets of the
group and hence for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
19
UNITED BREWERIES INTERNATIONAL (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors
United Breweries International (UK) Limited
We have audited the consolidated financial statements on pages 4 to 17 which
have been prepared under the historical cost convention and the accounting
policies set out on page 8.
Respective responsibilities of directors and auditors
As described on page 2 the group's directors are responsible for the preparation
of the financial statements. It is our responsibility to form an independent
opinion, based on our audit, on those financial statements and to report our
opinion to you. We did not audit the financial statements of United Breweries
International (UK) Limited or its subsidiaries as individual entities for the
year ended 31st December 1999. Those statements were audited by other auditors
whose report has been furnished to us and our opinion, in so far as it relates
to the amounts included for the year ended 31st December 1999, is based solely
on the other auditors' reports.
Basis of opinion
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. An audit includes examination, on a test basis,
of evidence relevant to the amounts and disclosures in the financial statements.
It also includes an assessment of the significant estimates and judgements made
by the directors in the preparation of the financial statements, and of whether
the accounting policies are appropriate to the group's circumstances,
consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all information and
explanations which we consider necessary in order to provide us with sufficient
evidence to give reasonable assurance that the financial statements are free
from material misstatement, whether caused by fraud, other irregularity or
error. In forming our opinion we also evaluated the overall adequacy of the
presentation of the information in the financial statements. We believe that our
audits and the report of other auditors provide a reasonable basis for our
opinion.
Opinion
In our opinion, based on our audits and the report of other auditors, the
consolidated financial statements give a true and fair view of the state of
affairs of United Breweries International (UK) Limited and the group as at 31st
December 2000 and 31st December 1999 and of the profits of the group for the
years then ended and have been properly prepared in accordance with accounting
principles generally accepted in the United Kingdom.
Hawsons Chartered Accountants
And Registered Auditors
Jubilee House
Billing Brook Road
Weston Favell
Northampton
NN3 8NW
Dated: 9th March 2001
20
UNITED BREWERIES INTERNATIONAL (UK) LIMITED
CONSOLIDATED PROFIT AND LOSS ACCOUNT - YEAR ENDED 31ST DECEMBER 2000
2000 2000 1999 1999
Notes (pound) (pound) (pound) (pound)
Turnover:
Continuing 2 8,342,315 7,350,109
Discontinued operations 3 - 846,597
--------- ---------
8,342,315 8,196,706
Cost of sales 5,423,592 5,471,122
--------- ---------
Gross Profit 2,918,723 2,725,584
Distribution and selling costs 1,851,646 1,554,503
Administrative expenses 596,108 990,514
--------- ---------
2,447,754 2,545,017
Operating profit/(loss)
Continuing operations 470,969 330,534
Discontinued operations 3 - (149,967)
---------- ---------
--------- ---------
Operating profit total 4 470,969 180,567
Exceptional items:
Profit on sale of subsidiary undertaking 5 - 1,889,877
Costs relating to litigation 6 (11,584) (125,303)
-------- --------
(11,584) 1,764,574
--------- ---------
Profit on ordinary activities before interest 459,385 1,945,141
Interest receivable - 21
Interest payable 7 (54,116) (74,858)
--------- ---------
Profit on ordinary activities before taxation 405,269 1,870,304
Tax on profit on ordinary activities 8 (133,426) (63,072)
--------- ---------
Profit on ordinary activities after taxation 271,843 1,807,232
--------- ---------
Equity minority interests - 3,023
--------- --------
Retained profit transferred to reserves 19 271,843 1,810,255
======== ========
The group has no recognised gains and losses other than those included in the
profits above, and therefore no separate statement of total recognised gains and
losses has been presented.
The notes on pages 8 to 17 form part of these financial statements.
21
UNITED BREWERIES INTERNATIONAL (UK) LIMITED
CONSOLIDATED BALANCE SHEET - 31ST DECEMBER 2000
2000 2000 1999 1999
Note (pound) (pound) (pound) (pound)
----
Fixed assets
Intangible Fixed Assets 10 22,401 25,601
Tangible Fixed Assets 11 578,356 593,108
------- -------
600,757 618,709
Current assets
Stocks 13 69,053 63,074
Debtors 14 2,837,111 2,722,235
Cash at bank and in hand 139,274 33,845
----------- ----------
3,045,438 2,819,154
Creditors - amounts falling due within one year 15 (3,001,873) (3,065,384)
----------- -----------
Net current assets/(liabilities) 43,565 (246,230)
------- ---------
Total assets less current liabilities 644,322 372,479
======= =======
Capital and Reserves
Called up share capital 18 100,000 100,000
Profit and loss account 19 544,322 272,479
------- -------
Equity Shareholders' funds 20 644,322 372,479
======= =======
The financial statements were approved by the board of directors on 9th March,
2001 and were signed on its behalf by:
M. K. Nambiar Director
G. M. K. Lodhi Director
The notes on pages 8 to 17 form part of these financial statements.
22
UNITED BREWERIES INTERNATIONAL (UK) LIMITED
BALANCE SHEET - 31ST DECEMBER 2000
2000 2000 1999 1999
Note (pound) (pound) (pound) (pound)
Fixed Assets
Investments 12 299,119 299,119
Current Assets
Debtors 14 9,933 14,787
Cash at bank and in hand 31,436 7,681
--------- ---------
41,369 22,468
Creditors: amounts falling due within one year 15 (209,081) (189,496)
--------- ---------
Net Current Liabilities (167,712) (167,028)
-------- --------
Total assets less current liabilities 131,407 132,091
======== ========
Capital and Reserves
Called up share capital 18 100,000 100,000
Profit and loss account 31,407 32,091
-------- --------
Equity Shareholders' funds 131,407 132,091
======== ========
The financial statements were approved by the board of directors on 9th March,
2001 and were signed on its behalf by:
M. K. Nambiar Director
G. M. K. Lodhi Director
The notes on pages 8 to 17 form part of these financial statements.
23
UNITED BREWERIES INTERNATIONAL LIMITED
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2000
2000 1999
(pound) (pound)
Net cash inflow/(outflow) from operating activities (Note 27a) 695,123 (10,113)
Returns on investments and servicing of finance
Interest paid (54,116) (73,649)
-------- --------
Net cash outflow from returns on investments and servicing of finance (54,116) (73,649)
Taxation (67,055) (51,360)
Capital expenditure and financial investment
Payments to acquire tangible assets (221,700) (238,809)
Sale of tangible fixed assets 3,250 22,065
--------- ---------
Net cash outflow for capital expenditure (218,450) (216,744)
Acquisitions and disposals (note 27d)
Sale of subsidiary undertaking - 50,000
Cash at bank and in hand disposed of with subsidiary - (24,150)
-------- ---------
Net cash inflow from disposals - 25,850
-------- ---------
Net increase/(decrease) in cash in the year 355,502 (326,016)
======== =========
The notes on pages 8 to 17 form part of these financial statements.
24
UNITED BREWERIES INTERNATIONAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
1. ACCOUNTING POLICIES
Basis of accounting:
The financial statements are prepared under the historical cost
convention and in accordance with Generally Accepted Accounting
Principles (GAAP) applicable in the United Kingdom (UK).
Reconciliation to US accounting principles - summary of differences
between UK and US GAAP: No reconciliation between US GAAP and UK GAAP
has been presented. In the opinion of the directors, there are no
significant differences in the group's net income and net equity on
preparing the 2000 and 1999 financial statements under either UK GAAP
or US GAAP.
Basis of consolidation:
The consolidated accounts comprise the accounts of the parent
undertaking and its subsidiary undertakings for the year ended 31st
December 2000.
Goodwill and intangible fixed assets:
Goodwill represents purchased goodwill on the acquisition of UBSN
Limited, a wholly owned subsidiary. It is valued at the amount by which
the cost of UBSN Limited as a whole exceeded the aggregate fair values
of its identifiable assets and liabilities at the date of acquisition.
The goodwill is being amortised on a straight-line basis over ten
years. This is the period over which UBSN Limited holds its brewing
licence to carry out its principal activity.
Depreciation of tangible fixed assets:
Depreciation is provided on all fixed assets at rates calculated to
write off the costs of each asset evenly over its expected useful life
as follows:-
- Plant and equipment 6 to 7 years
- Motor vehicles 2 to 5 years
Foreign currency:
Transactions denominated in foreign currencies are translated at the
exchange rate on the transaction date. Balances denominated in foreign
currencies are translated at the exchange rate on the balance sheet
date.
Turnover:
Turnover represents the amounts receivable by the group for goods sold,
services supplied and commissions receivable and is stated net of value
added tax.
Stocks:
Stocks are valued on a first-in, first-out basis at the lower of cost
and net realisable value.
Taxation:
Corporation tax is provided on taxable profits at current rates.
Deferred taxation is provided at appropriate rates on all timing
differences using the liability method only to the extent that, in the
opinion of the directors, there is a reasonable probability that a
liability or asset will crystallise in the forseeable future.
Pensions:
The pension costs charged in the financial statements represent the
contributions payable by the group during the year.
25
UNITED BREWERIES INTERNATIONAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS continued
2. TURNOVER
The total turnover comprises sales and commissions excluding value
added tax.
The geographic analysis of turnover is as follows:
2000 1999
(pound) (pound)
United Kingdom 7,197,991 7,185,099
Export 1,144,324 1,011,607
--------- ---------
8,342,315 8,196,706
========= =========
3. ANALYSIS OF PROFIT AND LOSS ACCOUNT BETWEEN CONTINUING AND DISCONTINUED
OPERATIONS
Continuing Acquisitions Discontinued Total
2000 2000 2000 2000
(pound) (pound) (pound) (pound)
Turnover 8,342,315 - - 8,342,315
Cost of sales 5,423,592 - - 5,423,592
--------- -------- -------- ---------
Gross profit 2,918,723 - - 2,918,723
Distribution and selling costs 1,851,646 - - 1,851,646
Administrative expenses 596,108 - - 596,108
--------- -------- -------- ---------
Operating profit 470,969 - - 470,969
========= ======== ======== =========
Continuing Acquisitions Discontinued Total
1999 1999 1999 1999
(pound) (pound) (pound) (pound)
Turnover 7,350,109 - 846,597 8,196,706
Cost of sales 4,813,017 - 658,105 5,471,122
--------- -------- -------- ---------
Gross profit 2,537,092 - 188,492 2,725,584
Distribution and selling costs 1,554,503 - - 1,554,503
Administrative expenses 652,055 - 338,459 990,514
-------- -------- -------- --------
Operating profit/(loss) 330,534 - (149,967) 180,567
======= ======= ======= =======
26
UNITED BREWERIES INTERNATIONAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS continued
4. OPERATING PROFIT
2000 1999
(pound) (pound)
Operating profit has been arrived at after charging/(crediting):-
Amortisation of intangible fixed assets 3,200 3,200
Depreciation of tangible fixed assets 235,387 272,232
Auditors' remuneration - as auditors 15,250 24,294
- for non audit services 25,830 12,857
(Profit)/Loss on disposal of tangible fixed assets (2,185) 13,563
Exchange differences (44,382) (4,652)
======= =======
As permitted by Section 230 of the Companies Act 1985, the profit and
loss account of the parent undertaking is not presented as part of
these financial statements. The consolidated profit for the financial
year includes a deficit of (pound)684, which is dealt with in the
financial statements of the parent undertaking.
5. PROFIT ON SALE OF SUBSIDIARY UNDERTAKING
2000 1999
(pound) (pound)
Gain on disposal of subsidiary net liabilities - 2,163,205
Goodwill previously eliminated against reserves - (273,328)
-------- ---------
Profit on sale of subsidiary - 1,889,877
======== =========
On 9th December 1999, the group sold its entire shareholding in UB
(Soyco) Limited, a 98% owned subsidiary, for (pound)50,000 in cash.
6. COSTS RELATING TO LITIGATION
All remaining matters in issue between the parties have been finally
resolved to their satisfaction.
7. INTEREST PAYABLE
2000 1999
(pound) (pound)
Bank overdrafts 54,116 74,858
====== ======
8. TAX ON PROFIT ON ORDINARY ACTIVITIES
2000 1999
(pound) (pound)
Corporation Tax on profit for year at 30% (1999 - 30%) 133,000 63,072
Prior year adjustment 426 -
------- ------
133,426 63,072
======= ======
27
UNITED BREWERIES INTERNATIONAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS continued
9. DIRECTORS AND EMPLOYEES
Staff costs during the year were as follows:
2000 1999
(pound) (pound)
Wages and salaries 325,017 348,902
Other pension costs 14,410 14,315
------- -------
339,427 363,217
======= =======
The average monthly number of employees, including directors, during
the year was as follows:
2000 1999
Number Number
Sales and marketing 13 26
==== ====
10. INTANGIBLE FIXED ASSETS - Group
Goodwill
(pound)
Cost
At 1st January 2000 and at 31st December 2000 32,001
======
Aggregate amortisation
At 1st January 2000 6,400
Charge for the year 3,200
------
At 31st December 2000 9,600
======
Net Book Value
At 31st December 2000 22,401
======
At 31st December 1999 25,601
======
28
UNITED BREWERIES INTERNATIONAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS continued
11. TANGIBLE FIXED ASSETS - Group
Plant
and Motor
Equipment Vehicles Total
(pound) (pound) (pound)
Cost
At 1st January 2000 1,291,990 104,445 1,396,435
Additions 181,823 39,877 221,700
Disposals - (12,003) (12,003)
--------- -------- ---------
At 31st December 2000
1,473,813 132,319 1,606,132
Depreciation ========= ======= =========
At 1st January 2000 767,385 35,942 803,327
Charge for year 209,259 26,128 235,387
Disposals - (10,938) (10,938)
--------- -------- ---------
At 31st December 2000 976,644 51,132 1,027,776
========= ======= =========
Net Book Value
At 31st December 2000 497,169 81,187 578,356
========= ======= =========
At 31st December 1999 524,605 68,503 593,108
========= ======= =========
12. FIXED ASSET INVESTMENTS - Company
Shares in
group
undertakings
and
participating
interests
Cost and Net Book Value at (pound)
1st January 2000 and 31st December 2000 299,119
=======
The subsidiary undertakings are as follows:-
Percentage of
equity held
UBSN Limited Registered in England 100%
13. STOCKS Group Company
2000 1999 2000 1999
(pound) (pound) (pound) (pound)
Finished goods and goods for resale 69,053 63,074 - -
====== ====== ====== ======
29
UNITED BREWERIES INTERNATIONAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS continued
14. DEBTORS Group Company
2000 1999 2000 1999
(pound) (pound) (pound) (pound)
Trade debtors:
Amounts owed by Shepherd Neame Limited 485,068 583,469 - -
Other 2,244,259 2,047,626 - -
Prepayments 24,932 21,937 9,933 14,787
Prepayments and accrued income in respect of
related parties:
Amounts owed by Shepherd Neame Limited 82,852 69,203 - -
--------- --------- ----- ------
2,837,111 2,722,235 9,933 14,787
========= ========= ===== ======
15. CREDITORS - amounts falling due within one year
Group Company
2000 1999 2000 1999
(pound) (pound) (pound) (pound)
Bank overdraft (secured - see note 21) 993,870 1,243,943 - -
Trade creditors:
Amounts owed to Shepherd Neame Limited 1,427,112 1,246,978 - -
UB Global Corporation Limited - 64,023 19,975 -
Others 107,827 103,453 - -
Corporation tax 135,464 69,094 - 72
Other taxation and social security 76,518 35,395 13,163 11,764
Accruals:
Amounts owed to Shepherd Neame Limited 135,466 159,212 - -
American United Breweries Inc 41,292 38,386 - -
Other 70,906 88,865 6,400 5,500
Other creditors 13,418 16,035 13,418 16,035
Loan from subsidiary undertaking UBSN Ltd - - 156,125 156,125
--------- --------- ------- -------
3,001,873 3,065,384 209,081 189,496
========= ========= ======= =======
16. PENSION COSTS
The group operates a defined contribution pension scheme. The assets of
the scheme are held separately from those of the company in an
independently administered fund. The pension cost charge represents
contributions payable by the company to the fund and amounted to
(pound)14,410 (1999 - (pound)14,315).
17. DEFERRED TAXATION
The full potential liability for 2000 is (pound)4,000 (1999 -
(pound)12,000) in respect of capital allowances carried forward which
has not been provided for in the accounts.
30
UNITED BREWERIES INTERNATIONAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS continued
18. CALLED UP SHARE CAPITAL - Company and Group
Authorised Allotted, called up
and Issued and partly paid
2000 1999 2000 1999
No. No. No. No.
100,000 Ordinary shares of (pound)1 each 500,000 500,000 100,000 100,000
------- ------- ------- -------
500,000 500,000 100,000 100,000
======= ======= ======= =======
19. PROFIT AND LOSS ACCOUNT - Group
(pound)
At 1st January 2000 272,479
Retained profit for year 271,843
-------
At 31st December 2000 544,322
=======
20. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS - Group
2000 1999
(pound) (pound)
Profit after taxation for the financial year 271,843 1,810,255
------- ---------
Net addition to shareholders' funds 271,843 1,810,255
Opening shareholders' funds 372,479 (1,437,776)
------- ---------
Closing shareholders' funds 644,322 372,479
======= =======
21. CONTINGENT LIABILITIES
The company acts as a surety for the obligations on a lease of premises
acquired by UB (Soyco) Limited (a former subsidiary undertaking) for
the term of twenty years from 24th June 1999 at an annual rental of
(pound)61,500.
22. BANK OVERDRAFT
The bank overdraft is secured by a fixed and floating charge over the
assets of UBSN Limited. The maximum facility available to the group is
(pound)1,250,000. This facility is available on an on-going basis and
is repayable on demand. Interest is calculated on a daily basis at 1.5%
above the bank's base rate.
31
UNITED BREWERIES INTERNATIONAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS continued
23. OPERATING LEASE COMMITMENTS
Financial commitments under non-cancellable operating leases will
result in the following payments falling due in the next financial
year:
2000 1999
Land and Land and
buildings buildings
(pound) (pound)
Expiring:
Within two to five years 7,000 7,000
===== =====
24. ULTIMATE PARENT UNDERTAKING AND CONTROL
The directors consider the company's ultimate parent undertaking to be
Inversion Mirabele S.A., a company incorporated in Panama.
Prior to the balance sheet date, a conditional sale/purchase agreement
had been entered into by the ultimate parent company. As at the balance
sheet date this transfer of shareholding had not occurred.
32
UNITED BREWERIES INTERNATIONAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS continued
26. RELATED PARTY TRANSACTIONS
During the year the group had the following transactions with its
related parties:
Nature of 2000 1999
relationship (pound) (pound)
Shepherd Neame Limited Common trade
(Company registered in the UK)
Sales 990,220 699,493
Freight cost 312,241 240,590
Commission payable 94,229 63,227
Purchases 5,276,064 4,625,586
Galaxy International Limited Common commercial
(Company registered in the UK) interests
Management charge payable 17,000 103,547
UB Global Corporation Limited Mutuality of
(Subsidiary of United Breweries interest
Limited of India registered in India)
Purchases 70,278 96,009
American United Breweries Inc Mutuality of
(Company registered in the USA) interest
Commission/advertising payable 166,762 125,492
United Breweries Limited Licence owner
(Company registered in India)
Royalty payable 5,960 5,227
As a result of the trading and other activities with related parties,
the following balances remained outstanding as at 31st December 2000.
2000 1999
(pound) (pound)
Amounts owed by Shepherd Neame Limited 485,068 652,672
Amounts owed to Shepherd Neame Limited 1,427,112 1,246,978
Amounts owed to UB Global Corporation Ltd - 64,023
Amounts owed to Galaxy International Limited 19,975 -
Amounts owed to United Breweries Limited 5,960 5,227
Accruals - Shepherd Neame Limited 135,466 159,212
- American United Brewers Inc 41,292 38,386
33
UNITED BREWERIES INTERNATIONAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS continued
27. CASH FLOW STATEMENT
a. RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW/(OUTFLOW)
FROM OPERATING ACTIVITIES
2000 1999
(pound) (pound)
Operating profit 470,969 180,567
Depreciation charges 235,387 235,315
Amortisation charges 3,200 3,200
(Profit)/loss on disposal of tangible assets (2,185) (4,241)
(Increase)/decrease in stocks (5,979) 48,346
(Increase) in debtors (110,894) (253,078)
Increase/(decrease) in creditors 116,209 (244,886)
Costs relating to litigation (11,584) (125,303)
Operating loss in respect of discontinued activities - 149,967
-------- --------
Net cash inflow/(outflow) from continuing operating activities 695,123 (10,113)
======= =======
b. ANALYSIS OF CHANGES IN NET DEBT
At 1st January Cash At 31st December
2000 Flows 2000
(pound) (pound) (pound)
Net cash:
Cash at bank and in hand 33,845 105,429 139,274
Bank overdrafts (1,243,943) 250,073 (993,870)
----------- ------- ---------
(1,210,098) 355,502 (854,596)
=========== ======= =========
c. RECONCILIATION OF NET CASH FLOW MOVEMENT TO MOVEMENT IN NET DEBT
2000 1999
(pound) (pound)
Increase/(Decrease) in cash in the
period and change in net debt 355,502 (326,016)
Opening net debt (1,210,098) (884,082)
----------- -----------
Closing net debt (854,596) (1,210,098)
========= ===========
d. CASH FLOWS IN RESPECT OF DISPOSAL OF SUBSIDIARY UNDERTAKING IN 1999
On 9th December 1999, a 98% owned subsidiary, UB (Soyco) Limited, was
disposed of through the transfer of the groups entire shareholding, for
the consideration of (pound)50,000 in cash. The fair values of UB
(Soyco) Limited's identifiable assets and liabilities at the date of
disposal were as follows:
(pound)
Fixed assets 404,700
Stocks 117,861
Debtors 191,583
Cash at bank and in hand 24,150
Trade creditors (113,634)
Other creditors (2,350,932)
-----------
(1,726,272)
Minority interests 34,525
-----------
(1,691,747)
===========
34
UNITED BREWERIES INTERNATIONAL (UK) LIMITED
DETAILED CONSOLIDATED PROFIT AND LOSS ACCOUNT
Year ended 31 December 2000
2000 1999
(pound) (pound)
GROSS PROFIT
Sales and commissions 8,342,315 8,196,706
Cost of sales (5,423,592) (5,471,122)
--------- -----------
Gross profit 2,918,723 2,725,584
--------- -----------
DISTRIBUTION AND SELLING EXPENSES
Freight 446,690 329,185
Advertising and promotional expenses 569,930 497,093
Sales commission 205,405 141,228
Dispense equipment repairs 178,012 152,073
Operational expenses 273,205 207,385
Sponsorship 58,062 127,049
Other distribution and selling 120,342 100,490
--------- -----------
1,851,646 1,554,503
--------- -----------
GENERAL AND ADMINISTRATIVE EXPENSES
Management fees 17,000 103,547
Audit and taxation fees 41,080 37,151
Postage and stationery 5,552 5,660
Bad debt provision 25,000 50,687
Depreciation/profit on asset disposal 233,202 285,701
Amortisation 3,200 3,200
Exchange rate differences (44,382) (4,652)
Operational expenses 251,255 429,517
Royalties payable/receivable 5,960 1,846
Miscellaneous 58,241 77,857
--------- -----------
596,108 990,514
--------- -----------
FINANCE COSTS
Bank interest received - (21)
Bank interest paid and charges 54,116 74,858
--------- -----------
54,116 74,837
--------- -----------
EXCEPTIONAL ITEMS
Sale of subsidiary undertaking - (1,889,877)
Litigation costs 11,584 125,303
--------- -----------
11,584 1,764,574
--------- -----------
Profit on ordinary activities before taxation 405,269 1,870,304
========= ===========
35