19 November 1998: The BOC Group has announced its figures for the year to 30 September 1998. The group profit before tax was UK 247.2 million. This was after crediting a UK 144 million profit on disp…
19 November 1998: The BOC Group has announced its figures for the year to 30 September 1998. The group profit before tax was UK 247.2 million. This was after crediting a UK 144 million profit on disposal of the Ohmeda health care business and after charging UK 292.8 million of exceptional costs relating to a strategic review. Excluding both of these, profit before tax was UK 396 million and was down 3% on a continuing business basis. Earnings per share were 24.66p as reported and down 1% on a continuing business basis. Turnover was UK 3,549.9 million, including UK 215.6 million relating to Ohmeda. Excluding Ohmeda from both years, continuing business turnover was down 4%. For the fourth quarter, turnover was UK 804.4 million, down 11%, and profit before tax excluding the exceptional charge was UK 100.3 million, down 9%. On a constant currency basis, turnover was down 2% and profit before tax was the same as a year ago. The discontinued business is excluded from the fourth quarter a year ago for the purpose of these comparisons. Translation of overseas results at stronger sterling exchange rates had an adverse effect on turnover and profit trends for the year. The company said that if the effect of currency translation was eliminated by translating overseas results into sterling at constant exchange rates, continuing business turnover would have increased by 4%, while profit before tax would have increased by 5% and earnings per share by 7%. These comparisons also exclude the profit on disposal and the exceptional charge. “This has been a crucial year for The BOC Group. We saw the successful sale of the Ohmeda health care business and the organisation of BOC around our core gases business. We experienced a challenging external environment, ranging from turmoil in Asian markets to the depressed semiconductor industry and the slowing of industrial activity in some of our other big markets. Against this, BOC demonstrated its resilience and achieved a robust performance. Before exceptional items and at constant currency, profit before tax was up 5 % and earnings per share up 7% for continuing businesses. We saw no respite from these tough conditions, so 1998 was a year of rigorous self-examination to ensure BOC is structured to both grow sales faster and compete more effectively. We have made significant progress and expect this to continue in 1999,” said Group Chief Executive, Danny Rosenkranz.