News release

2009 Interim Results Announcement

13 August 2009

1. KEY POINTS

• Sales were $2,002.3 million (H1 2008: $2,927.0 million)
• Adjusted operating profit(1) was $82.3 million (H1 2008: $242.7 million(2))
• Adjusted operating profit of ongoing segments was $89.8 million (H1 2008: $240.6 million(2))
• Loss before tax was $114.9 million (H1 2008: profit of $61.3 million(2))
• Operating cash flow(3) was $14.6 million (H1 2008: $90.4 million)
• Net debt was $515.9 million (H1 2008: $702.8 million, FY 2008: $476.4 million)
• New $450 million forward-start committed borrowing facility completed, maturing in May 2012
• Adjusted diluted earnings per share(4) were 2.99 cents (H1 2008: 16.84 cents(2))
• Diluted loss per share(5) was 14.07 cents (H1 2008: earnings of 0.42 cents per share)
• Interim dividend of 3.5 cents per share (H1 2008: 11.02 cents)
• Restructuring initiatives on track to achieve cost savings of $150 million per annum by end of 2011
• H1 2009 headcount reduction of 3,900
• Acquisition of Hydrolink to complement Gates Engineering & Services

(1) Operating profit before restructuring initiatives, impairments and the amortisation of intangible assets arising on acquisitions.
(2) Restated to reflect the adoption of an amendment to IFRS 2 "Share-based Payment" (see note 1 to the accompanying financial statements).
(3) Operating cash flow is cash generated from operations less net capital expenditure.
(4) Adjusted earnings per share is based on earnings from continuing operations before items excluded in arriving at adjusted operating profit and related tax effects.
(5) From continuing operations.

David Newlands, Chairman, commented:
"Conditions in our end markets continued to deteriorate throughout the first half of 2009 which negatively impacted Group trading. The rate of deterioration in some of these markets has slowed as evidenced by trading in June and July, however the outlook remains uncertain. Management continues its disciplined approach to cost containment and restructuring across the Group, which remains on track.

In line with the guidance provided on dividends at the time of the 2008 Preliminary Results announcement in February this year, the Board has decided to declare an interim dividend of 3.5 cents per share. In arriving at this decision, the Board has considered prevailing end market conditions and market outlook."

James Nicol, Chief Executive Officer, commented:
"The global recession has impacted Group sales which were down significantly compared with the first half of 2008. Notwithstanding this, the Group returned an adjusted operating profit of $82.3 million. Under these continuing difficult economic conditions, the Group’s focus remains clear: continuing positive cash flow generation, maintaining our momentum in restructuring the business, preserving a strong balance sheet and identifying further opportunities for growth, particularly in green products and service-related businesses. Hydrolink, a fluid engineering services provider to the oil and gas and marine sectors in the Middle East and CIS regions was acquired in July. Hydrolink’s product offering and geographical footprint will supplement the expansion of our Gates Engineering and Services business."

Enquiries

The video webcast and presentation slides for this results announcement can be downloaded from the Tomkins corporate website on http://www.tomkins.co.uk

View the full 2009 Half Yearly Report. (220 KB)