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Britvic balance sheet analysis

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					                                                   APPENDIX 4.7
                                           (referred to in paragraph 4.22)



                                     Britvic: balance sheet analysis, 1989


   1. The balance sheet for 1989, provided by Britvic, is given below.

Britvic: Balance sheet analysis, 1989
                                                                                            £ million

                                         Carbonated       Other soft      All other       Total—all
                                          drinks           drinks         activities      activities
Tangible fixed assets
— Land and building                         38.3              10.5            -             48.8
— Plant and equipment                       23.4               7.4            -             30.8
— Vending machines and
 dispense equipment*                        39.9               2.6            -             42.5
— Vehicles                                   4.3               1.0            -              5.3
— Other—administration                       3.3               0.8            -              4.1
— Total tangible fixed assets              109.1              22.3            -            131.5

Investments in associated
 companies                                    -                -              -               -
Stocks and debtors less creditors
 due within one year                        39.7              12.8             -            52.5
Debtors due after one year                    -                 -              -              -
Total net trading assets                   148.8              35.1             -           183.9
Other investments                             -                 -              -              -
Other items (if any)                         -                 -              -              -
Balance sheet uses of funds                148.8              35.1            -            183.9

Deferred tax                                                                                  -
Corporation tax and provisions
 due after more than one year                                                                 -
Other items (if any)                                                                          -
Long-term creditors and provisions:
 — connected companies                                                                        -
 — other                                                                                      -
Borrowings, net of cash and
 short-term investments†                                                                    92.8
                                                                                            92.8

Capital and reserves                                                                        66.7
Non-interest-bearing subordinated
 loan stock                                                                                 80.3
Intangible fixed assets included
 in statutory accounts‡                                                                    (66.8)
Minorities                                                                                  10.9

Shareholders' and minorities funds                                                          91.2
Balance sheet sources of funds                                                             183.9

Capital gearing (%)                                                                        101.8

 Source: Britvic.


 *Including cooler cabinets.
 †Borrowings include obligations under finance leases.
 ‡For the purposes of this table, intangible assets are not included in fixed assets. They are shown separately as a
deduction from capital and reserves.


    2. Analysis of the 1989 balance sheet sources of funds shows borrowings net of cash at £92.8 million.
This figure is made up of finance leases of £6.5 million, bank overdraft of £15 million and bank loans
falling due after more than one year of £80 million, less cash of £8.7 million.




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   3. Capital and reserves, including minority interests, at the end of 1989 amounted to £157.9 million
before deduction of intangible fixed assets. Deduction of intangibles of £66.8 million reduced capital and
reserves, including minority interests, to £91.2 million, made up as follows:

                                                      £m

Share capital                                        21.8
Reserves                                             18.8
Profit and loss account                              26.0
Non-interest-bearing, subordinated
 loan stock                                          80.3
Minority interests                                   10.9
 Sub-total                                          157.9
Less: intangibles                                    66.8
Capital and reserves, including minority
 interests, after deduction of intangibles           91.2

 Source: Britvic.



   4. Britvic told us that the non-interest-bearing, subordinated loan stock, all held by shareholders, was
intended to form part of the capital structure of the company. We have accepted it as such.

   5. Britvic's intangible assets include purchased goodwill and costs of reorganisation necessary in
ascribing fair values to the separable net assets relating to the soft drinks business acquired from Beecham.
In accordance with our normal practice, the values attributable to intangible assets have been excluded
from capital employed and from capital and reserves.




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