22nd Nov 2011 07:00
BBA Aviation plc
Change in presentation currency
Historical financial information restated in US dollars
As previously announced at its interim results for the six months ended 30 June 2011, the Board of BBA Aviation plc ("BBA Aviation" or the "Group") has decided to change the Group's presentation currency from sterling to US dollars with effect from the 2011 year end results.
BBA Aviation's revenues, profits and cash flows are primarily generated in US dollars and the change of presentation currency is being made in order to allow for greater transparency of the underlying performance of the Group. As a consequence of this change, future dividends including the final dividend for the year ending 31 December 2011 will be declared in US dollars, in accordance with the Group's existing progressive dividend policy. Eligible shareholders will receive their dividends in sterling unless they complete and submit to the Company's registrars an election form stating their wish to receive their dividends in US dollars. The sterling dividend will be translated at the prevailing exchange rate the day after the currency conversion election date, the date of which will be announced with the results.
The change in the Group's presentation currency will be effective from the results for the year ending 31 December 2011 to be reported as part of the Group's preliminary results announcement on 2 March 2012. These results and all subsequent financial information for the foreseeable future will be prepared using US dollars as the presentation currency. In accordance with relevant accounting standards, comparative information will be provided in US dollars.
Selected historical financial information for the financial years ended 31 December 2009 and 31 December 2010, and for the six month periods ended 30 June 2010 and 30 June 2011, together with key financial highlights for the financial years ended 31 December 2007, 31 December 2008, 31 December 2009 and 31 December 2010, (collectively, the "Restated Financial Information"), is re-presented in US dollars and is set out in this announcement for comparative purposes.
Enquiries:
BBA Aviation plc
Mark Hoad, Group Finance Director / Jemma Spalton, Head of Investor Relations
020 7514 3999
Tulchan
David Allchurch / Christian Cowley / Martha Kelly
020 7353 4200
Notes to Editors
BBA Aviation plc is a leading global aviation support and aftermarket services provider with market leading businesses and attractive growth opportunities. BBA Aviation's Flight Support businesses (Signature Flight Support and ASIG) are focused on refuelling and ground handling of business and commercial aviation aircraft. Its Aftermarket Services and Systems businesses (Dallas Airmotive, Premier Turbines, H&S Aviation, International Turbine Service, Barrett Turbine Engine Company, Ontic and APPH) are focused on the repair and overhaul of jet engines and the manufacture and service of aerospace sub-systems and components. For more information, please visit www.bbaaviation.com.
Consolidated Income Statements (unaudited)
Year ended 31 December 2010 |
Year ended 31 December 2009 | ||||||
Underlying* | Exceptional Items | Total | Underlying* | Exceptional Items | Total | ||
$ m | $m | $m | $m | $m | $m | ||
Revenue |
| 1,833.7 | - | 1,833.7 | 1,686.1 | - | 1,686.1 |
Cost of sales | (1,481.3) | - | (1,481.3) | (1,365.8) | - | (1,365.8) | |
Gross profit | 352.4 | - | 352.4 | 320.3 | - | 320.3 | |
Distribution costs | (32.6) | - | (32.6) | (28.5) | - | (28.5) | |
Administrative expenses | (155.0) | (5.7) | (160.7) | (136.7) | (5.9) | (142.6) | |
Other operating income | 5.1 | - | 5.1 | 1.1 | - | 1.1 | |
Share of profit of associates | 1.7 | - | 1.7 | 1.7 | - | 1.7 | |
Other operating expenses | (0.2) | (3.6) | (3.8) | (1.1) | (12.5) | (13.6) | |
Restructuring costs | - | (6.5) | (6.5) | - | (9.4) | (9.4) | |
Loss on disposal of businesses | - | - | - | - | (0.6) | (0.6) | |
Operating profit/(loss) |
| 171.4 | (15.8) | 155.6 | 156.8 | (28.4) | 128.4 |
Investment income | 6.5 | - | 6.5 | 12.3 | - | 12.3 | |
Finance costs | (30.1) | - | (30.1) | (47.1) | - | (47.1) | |
Profit/(loss) before tax | 147.8 | (15.8) | 132.0 | 122.0 | (28.4) | 93.6 | |
Tax | (31.5) | 0.2 | (31.3) | (26.5) | 3.9 | (22.6) | |
Profit/(loss) for the year | 116.3 | (15.6) | 100.7 | 95.5 | (24.5) | 71.0 | |
Attributable to: | |||||||
Equity holders of the parent | 116.5 | (15.6) | 100.9 | 95.3 | (20.6) | 74.7 | |
Non controlling interest | (0.2) | - | (0.2) | 0.2 | (3.9) | (3.7) | |
116.3 | (15.6) | 100.7 | 95.5 | (24.5) | 71.0 | ||
EARNINGS PER SHARE | Adjusted | Unadjusted | Adjusted | Unadjusted | |||
Basic | 27.3c | 23.6c | 22.8c | 17.9c | |||
Diluted | 26.4c | 22.8c | 22.3c | 17.5c |
* Before exceptional items. Exceptional items are items which are material or are non-recurring in nature, costs relating to acquisitions and the amortisation of acquired intangibles.
Consolidated Income Statements (unaudited) - continued
Six months ended 30 June 2011 |
Six months ended 30 June 2010 | ||||||
Underlying* | Exceptional Items | Total | Underlying* | Exceptional Items | Total | ||
$ m | $m | $m | $m | $m | $m | ||
Revenue |
| 1,062.9 | - | 1,062.9 | 898.7 | - | 898.7 |
Cost of sales | (864.1) | - | (864.1) | (733.0) | - | (733.0) | |
Gross profit | 198.8 | - | 198.8 | 165.7 | - | 165.7 | |
Distribution costs | (20.1) | - | (20.1) | (16.2) | - | (16.2) | |
Administrative expenses | (84.4) | (3.4) | (87.8) | (68.4) | (2.8) | (71.2) | |
Other operating income | 1.3 | - | 1.3 | 0.3 | - | 0.3 | |
Share of profit of associates | 1.1 | - | 1.1 | 0.9 | - | 0.9 | |
Other operating expenses | (0.2) | (1.6) | (1.8) | (0.3) | (0.3) | (0.6) | |
Restructuring costs | - | - | - | - | (6.3) | (6.3) | |
Operating profit/(loss) |
| 96.5 | (5.0) | 91.5 | 82.0 | (9.4) | 72.6 |
Investment income | 2.9 | - | 2.9 | 2.8 | - | 2.8 | |
Finance costs | (14.8) | - | (14.8) | (15.8) | - | (15.8) | |
Profit/(loss) before tax | 84.6 | (5.0) | 79.6 | 69.0 | (9.4) | 59.6 | |
Tax | (18.4) | 1.4 | (17.0) | (14.7) | 2.1 | (12.6) | |
Profit/(loss) for the period | 66.2 | (3.6) | 62.6 | 54.3 | (7.3) | 47.0 | |
Attributable to: | |||||||
Equity holders of the parent | 66.4 | (3.6) | 62.8 | 54.3 | (7.3) | 47.0 | |
Non controlling interest | (0.2) | - | (0.2) | - | - | - | |
66.2 | (3.6) | 62.6 | 54.3 | (7.3) | 47.0 | ||
EARNINGS PER SHARE | Adjusted | Unadjusted | Adjusted | Unadjusted | |||
Basic | 14.4c | 13.7c | 12.8c | 11.1c | |||
Diluted | 14.0c | 13.3c | 12.4c | 10.7c |
* Before exceptional items. Exceptional items are items which are material or are non-recurring in nature, costs relating to acquisitions and the amortisation of acquired intangibles.
Consolidated balance sheets (unaudited)
As at: | 31 December 2010 | 31 December 2009 |
$m | $m | |
NON-CURRENT ASSETS | ||
Goodwill | 761.5 | 764.6 |
Licences and other intangible assets | 149.2 | 157.9 |
Property, plant and equipment | 514.2 | 538.9 |
Interests in associates | 3.0 | 3.1 |
Trade and other receivables | 25.9 | 29.3 |
1,453.8 | 1,493.8 | |
CURRENT ASSETS | ||
Inventories | 213.8 | 222.0 |
Trade and other receivables | 310.5 | 312.7 |
Cash and cash equivalents | 169.1 | 185.8 |
Tax recoverable | 0.1 | 0.3 |
693.5 | 720.8 | |
Total assets | 2,147.3 | 2,214.6 |
CURRENT LIABILITIES | ||
Trade and other payables | (398.9) | (371.3) |
Tax liabilities | (79.0) | (73.4) |
Obligations under finance leases | (1.4) | (1.5) |
Bank overdrafts and loans | (155.0) | (53.3) |
Provisions | (1.4) | (1.3) |
(635.7) | (500.8) | |
Net current assets | 57.8 | 220.0 |
NON-CURRENT LIABILITIES | ||
Bank loans | (501.1) | (755.7) |
Other payables due after one year | (98.6) | (97.8) |
Retirement benefit obligations | (53.5) | (53.5) |
Obligations under finance leases | (4.4) | (5.8) |
Deferred tax liabilities | (66.3) | (48.1) |
Provisions | (30.3) | (32.8) |
(754.2) | (993.7) | |
Total liabilities | (1,389.9) | (1,494.5) |
Net assets | 757.4 | 720.1 |
EQUITY | ||
Share capital | 228.6 | 224.6 |
Share premium account | 612.1 | 615.9 |
Other reserves | 6.9 | 6.9 |
Treasury reserve | (9.7) | (5.8) |
Capital reserve | 37.2 | 35.5 |
Hedging and translation reserves | (55.5) | (29.6) |
Retained earnings | (58.1) | (124.9) |
761.5 | 722.6 | |
Non controlling interest | (4.1) | (2.5) |
Total equity | 757.4 | 720.1 |
Consolidated balance sheets (unaudited) - continued
As at: | 30 June 2011 | 30 June 2010 |
$m | $m | |
NON-CURRENT ASSETS | ||
Goodwill | 797.0 | 756.3 |
Licences and other intangible assets | 177.4 | 153.5 |
Property, plant and equipment | 509.6 | 521.4 |
Interests in associates | 4.0 | 3.3 |
Trade and other receivables | 31.2 | 26.7 |
Deferred tax asset | 2.6 | 1.8 |
1,521.8 | 1,463.0 | |
CURRENT ASSETS | ||
Inventories | 236.2 | 214.5 |
Trade and other receivables | 370.1 | 313.2 |
Cash and cash equivalents | 142.3 | 145.2 |
Tax recoverable | 2.1 | 0.5 |
750.7 | 673.4 | |
Total assets | 2,272.5 | 2,136.4 |
CURRENT LIABILITIES | ||
Trade and other payables | (394.0) | (396.9) |
Tax liabilities | (86.6) | (73.4) |
Obligations under finance leases | (1.3) | (1.3) |
Bank overdrafts and loans | (23.5) | (35.1) |
Provisions | (0.5) | (1.2) |
(505.9) | (507.9) | |
Net current assets | 244.8 | 165.5 |
NON-CURRENT LIABILITIES | ||
Bank loans | (600.3) | (713.1) |
Other payables due after one year | (73.8) | (79.2) |
Retirement benefit obligations | (50.6) | (38.1) |
Obligations under finance leases | (4.2) | (5.6) |
Deferred tax liabilities | (75.8) | (55.4) |
Provisions | (30.3) | (31.5) |
(835.0) | (922.9) | |
Total liabilities | (1,340.9) | (1,430.8) |
Net assets | 931.6 | 705.6 |
EQUITY | ||
Share capital | 250.1 | 227.4 |
Share premium account | 732.1 | 613.2 |
Other reserves | 6.9 | 6.9 |
Treasury reserve | (8.8) | (9.8) |
Capital reserve | 36.0 | 37.8 |
Hedging and translation reserves | (37.2) | (82.2) |
Retained earnings | (43.3) | (84.7) |
935.8 | 708.6 | |
Non controlling interest | (4.2) | (3.0) |
Total equity | 931.6 | 705.6 |
Consolidated cash flow statements (unaudited)
Note | Year ended 31 December 2010 $m | Year ended 31 December 2009 $m | |
Operating activities | |||
Net cash inflow from operating activities | 2 | 235.0 | 278.9 |
Investing activities | |||
Dividends received from associates | 1.7 | 1.9 | |
Purchase of property, plant and equipment | (31.6) | (22.2) | |
Purchase of intangible assets | (11.5) | (21.2) | |
Proceeds from disposal of property, plant and equipment | 7.8 | 1.1 | |
Acquisition of subsidiaries | (5.6) | - | |
Proceeds from disposal of business | - | 5.8 | |
Deferred consideration paid on prior year acquisitions | (2.0) | (3.1) | |
Net cash outflow from investing activities | (41.2) | (37.7) | |
Financing activities | |||
Interest received | 5.4 | 27.3 | |
Interest paid | (27.6) | (64.4) | |
Interest element of finance leases paid | (0.6) | (1.1) | |
Dividends paid | (25.9) | (35.0) | |
Outflow from realised foreign exchange contracts | (0.8) | (1.6) | |
Proceeds from issue of own shares | 0.2 | - | |
Purchase of own shares | (4.2) | - | |
Decrease in loans | (149.9) | (122.6) | |
Decrease in finance leases | (1.4) | (42.4) | |
(Decrease)/increase in overdrafts | (8.2) | 49.3 | |
Net cash outflow from financing activities | (213.0) | (190.5) | |
(Decrease)/increase in cash and cash equivalents | (19.2) | 50.7 | |
Cash and cash equivalents at beginning of period | 185.8 | 141.7 | |
Exchange adjustments | 2.5 | (6.6) | |
Cash and cash equivalents at end of year | 169.1 | 185.8 | |
Net debt at beginning of year | (630.5) | (798.3) | |
(Increase)/decrease in cash equivalents | (19.2) | 50.7 | |
Decrease in borrowings | 149.9 | 122.6 | |
Decrease in finance leases | 1.4 | 42.4 | |
Decrease/(increase) in overdrafts | 8.2 | (49.3) | |
Exchange adjustments | (2.6) | 1.4 | |
Net debt at end of year | (492.8) | (630.5) |
Consolidated cash flow statement (unaudited) - continued
Six month period ended 30 June 2011 $m | Six month period ended 30 June 2010 $m | ||
Operating activities | |||
Net cash inflow from operating activities | 31.2 | 87.2 | |
Investing activities | |||
Dividends received from associates | 0.2 | 0.3 | |
Purchase of property, plant and equipment | (12.1) | (11.6) | |
Purchase of intangible assets | (1.8) | (9.6) | |
Proceeds from disposal of property, plant and equipment | 6.8 | 0.3 | |
Acquisition of subsidiaries | (76.0) | (3.5) | |
Deferred consideration paid on prior year acquisitions | (0.2) | (2.0) | |
Net cash outflow from investing activities | (83.1) | (26.1) | |
Financing activities | |||
Interest received | 2.4 | 1.5 | |
Interest paid | (20.8) | (13.9) | |
Interest element of finance leases paid | (0.2) | (0.3) | |
Dividends paid | (44.5) | (16.7) | |
Outflow from realised foreign exchange contracts | (21.7) | (2.8) | |
Proceeds from issue of own shares | 141.5 | - | |
Issue of US Private placement notes | 289.2 | - | |
Purchase of own shares | - | (4.2) | |
Decrease in loans | (298.2) | (43.1) | |
Decrease in finance leases | (0.3) | (0.3) | |
Decrease in overdrafts | (17.1) | (17.7) | |
Net cash inflow / (outflow) from financing activities | 30.3 | (97.5) | |
Decrease in cash and cash equivalents | (21.6) | (36.4) | |
Cash and cash equivalents at beginning of period | 169.1 | 185.8 | |
Exchange adjustments | (5.2) | (4.2) | |
Cash and cash equivalents at end of period | 142.3 | 145.2 | |
Net debt at beginning of period | (492.8) | (630.5) | |
Decrease in cash equivalents | (21.6) | (36.4) | |
Decrease in borrowings | 9.0 | 43.1 | |
Decrease in finance leases | 0.3 | 0.3 | |
Decrease in overdrafts | 17.1 | 17.7 | |
Exchange adjustments | 1.0 | (4.1) | |
Net debt at end of period | (487.0) | (609.9) |
Basis of preparation
The Restated Financial Information should be read in conjunction with the Annual Report and Financial Statements for the year ended 31 December 2010, and the Interim Financial Report for the half year ended 30 June 2011, which have been prepared in accordance with International Financial Reporting Standards adopted for use in the European Union (EU).
The Restated Financial Information does not comprise statutory financial statements within the meaning of section 434 of the Companies Act 2006. A copy of the statutory financial statements for the year ended 31 December 2010 has been delivered to the Registrar of Companies. The auditor reported on those financial statements: their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.
Presentation currency
BBA Aviation will present its consolidated financial statements for the year ending 31 December 2011 in US dollars. In accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors this change in presentation currency will be applied retrospectively.
For the years ended 31 December 2010 and 2009, and for the six month periods ended 30 June 2011 and 30 June 2010, the Company has presented in US dollars a consolidated income statement and a consolidated cash flow statement, together with a consolidated balance sheet as at 31 December 2010 and 2009, and as at 30 June 2010 and 2011 respectively, and selected accompanying notes.
This Restated Financial Information will form the basis of the comparative financial information to be included in the Annual Report and Financial Statements of the group for the year ended 31 December 2011.
In accordance with the provisions of IAS 21 "The effects of Changes in Foreign Exchange rates" in respect of changes in presentation currency, the statutory financial information as reported in the Group's Annual Report for the years ended 31 December 2010 and 2009, and the interim reports for the six month periods ended 30 June 2011 and 30 June 2010, has been restated from sterling into US dollars using the procedures outlined below:
·; Assets and liabilities denominated in non-US dollars currencies were translated into US dollars at the rate of exchange on the relevant balance sheet date;
·; Share capital, share premium, treasury, capital and other equity items were translated at the historic rates prevailing at 1 January 2004, the date of transition to IFRS, or the subsequent rates prevailing on the date of each relevant transaction;
·; Non-US dollar income and expenditure were translated into US dollars using the average rates of exchange over the relevant period;
·; Non-US dollar cash flows were translated into US dollars using the average rates of exchange with the exception of share capital and other equity transactions which were translated at the rates prevailing on the date of the relevant transaction;
·; The cumulative Hedging and Translation reserve was set to $nil at 1 January 2004, the date of transition to IFRS and this reserve has been restated on the basis that the Group has reported in US dollars since that date.
All exchange rates used were extracted from the Group's underlying accounting records. The exchange rates used were as follows:
US$ / £ exchange rate | Year ended 31 December 2010 | Year ended 31 December 2009 | Year ended 31 December 2008 | Year ended 31 December 2007 | Six month period ended 30 June 2011 | Six month period ended 30 June 2010 |
Closing rate | 1.57 | 1.61 | 1.44 | 1.99 | 1.61 | 1.50 |
Average rate | 1.55 | 1.56 | 1.85 | 2.00 | 1.61 | 1.53 |
Notes to the restated financial information
1 Segmental analysis
As at, and for the year ended 31 December 2010 | Flight Support | Aftermarket Services and Systems | Total | Unallocated Corporate | Total Continuing |
Business Segments | $m | $m | $m | $m | $m |
External revenue | 1,149.5 | 684.2 | 1,833.7 | - | 1,833.7 |
Underlying operating profit/(loss) | 113.7 | 74.4 | 188.1 | (16.7) | 171.4 |
Exceptional items | (8.2) | (6.7) | (14.9) | (0.9) | (15.8) |
Segment result | 105.5 | 67.7 | 173.2 | (17.6) | 155.6 |
Underlying operating margin | 9.9% | 10.9% | 10.3% | - | 9.3% |
Other information | |||||
Capital additions | 15.2 | 20.2 | 35.4 | - | 35.4 |
Depreciation and amortisation | 46.0 | 19.1 | 65.1 | 0.3 | 65.4 |
Balance sheet | |||||
Total assets | 1,240.6 | 721.1 | 1,961.7 | 185.6 | 2,147.3 |
Total liabilities | (180.2) | (154.6) | (334.8) | (1,055.1) | (1,389.9) |
Net assets/(liabilities) | 1,060.4 | 566.5 | 1,626.9 | (869.5) | 757.4 |
As at, and for the year ended 31 December 2009 | Flight Support | Aftermarket Services and Systems | Total | Unallocated Corporate | Total Continuing |
Business Segments | $m | $m | $m | $m | $m |
External revenue | 1,004.4 | 681.7 | 1,686.1 | - | 1,686.1 |
Underlying operating profit | 96.4 | 75.7 | 172.1 | (15.3) | 156.8 |
Exceptional items | (15.4) | (8.0) | (23.4) | (5.0) | (28.4) |
Segment result | 81.0 | 67.7 | 148.7 | (20.3) | 128.4 |
Underlying operating margin | 9.6% | 11.1% | 10.2% | - | 9.3% |
Other information | |||||
Capital additions | 17.2 | 26.1 | 43.3 | 0.2 | 43.5 |
Depreciation and amortisation | 48.1 | 18.1 | 66.2 | 0.3 | 66.5 |
Balance sheet | |||||
Total assets | 1,264.7 | 732.7 | 1,997.4 | 217.2 | 2,214.6 |
Total liabilities | (193.8) | (141.0) | (334.8) | (1,159.7) | (1,494.5) |
Net assets/(liabilities | 1,070.9 | 591.7 | 1,662.6 | (942.5) | 720.1 |
1 Segmental analysis - continued
As at, and for the six months ended 30 June 2011 | Flight Support | Aftermarket Services and Systems | Total | Unallocated Corporate | Total Continuing |
Business Segments | $m | $m | $m | $m | $m |
External revenue | 694.0 | 368.9 | 1,062.9 | - | 1,062.9 |
Underlying operating profit | 65.7 | 39.8 | 105.5 | (9.0) | 96.5 |
Exceptional items | (3.4) | (1.6) | (5.0) | - | (5.0) |
Segment result* | 62.3 | 38.2 | 100.5 | (9.0) | 91.5 |
Underlying operating margin | 9.5% | 10.8% | 9.9% | - | 9.1% |
Other information | |||||
Capital additions | 4.0 | 3.1 | 7.1 | - | 7.1 |
Depreciation and amortisation | 22.9 | 10.5 | 33.4 | 0.2 | 33.6 |
Balance sheet | |||||
Total assets | 1,252.4 | 826.6 | 2,079.0 | 193.5 | 2,272.5 |
Total liabilities | (173.2) | (155.4) | (328.6) | (1,012.3) | (1,340.9) |
Net assets/(liabilities) | 1,079.2 | 671.2 | 1,750.4 | (818.8) | 931.6 |
As at, and for the six months ended 30 June 2010 | Flight Support | Aftermarket Services and Systems | Total | Unallocated Corporate | Total Continuing |
Business Segments | $m | $m | $m | $m | $m |
External revenue | 566.2 | 332.5 | 898.7 | - | 898.7 |
Underlying operating profit | 53.9 | 36.4 | 90.3 | (8.3) | 82.0 |
Exceptional items | (2.4) | (6.2) | (8.6) | (0.8) | (9.4) |
Segment result* | 51.5 | 30.2 | 81.7 | (9.1) | 72.6 |
Underlying operating margin | 9.5% | 10.9% | 10.0% | - | 9.1% |
Other information | |||||
Capital additions | 6.6 | 14.2 | 20.8 | 0.2 | 21.0 |
Depreciation and amortisation | 23.2 | 9.0 | 32.2 | 0.2 | 32.4 |
Balance sheet | |||||
Total assets | 1,248.2 | 723.3 | 1,971.5 | 164.9 | 2,136.4 |
Total liabilities | (167.9) | (137.1) | (305.0) | (1,125.8) | (1,430.8) |
Net assets/(liabilities) | 1,080.3 | 586.2 | 1,666.5 | (960.9) | 705.6 |
2 Cash flow from operating activities
Year ended 31 December 2010 | Year ended 31 December 2009 | ||
$m | $m | ||
Operating profit | 155.6 | 128.4 | |
Share of profit from associates | (1.7) | (1.7) | |
Profit from operations | 153.9 | 126.7 | |
Depreciation of property, plant and equipment | 52.1 | 54.9 | |
Amortisation of intangible assets | 13.3 | 11.5 | |
(Loss)/profit) on sale of property, plant and equipment | (4.6) | 0.3 | |
Share based payment expense | 3.1 | 3.9 | |
Decrease in provisions | (1.7) | (1.1) | |
Pension scheme payments | (5.4) | (4.2) | |
Other non-cash items | (0.6) | 3.0 | |
Unrealised foreign exchange movements | 4.3 | 2.7 | |
Non-cash impairments | - | 8.4 | |
Loss on disposal of businesses | - | 0.6 | |
Operating cash inflows before movements in working capital | 214.4 | 206.7 | |
Decrease in working capital | 24.6 | 90.3 | |
Cash generated by operations | 239.0 | 297.0 | |
Income taxes paid | (4.0) | (18.1) | |
Net cash inflow from operating activities | 235.0 | 278.9 | |
Dividends received from associates | 1.7 | 1.9 | |
Purchase of property, plant and equipment | (31.6) | (22.2) | |
Purchase of intangible assets | (11.5) | (7.0) | |
Proceeds from disposal of property, plant and equipment | 7.8 | 1.1 | |
Interest received | 5.4 | 27.3 | |
Interest paid | (27.6) | (64.4) | |
Interest element of finance leases paid | (0.6) | (1.1) | |
Free cash flow | 178.6 | 214.5 |
2 Cash flow from operating activities - continued
Six months ended 30 June 2011 | Six months ended 30 June 2010 | ||
$m | $m | ||
Operating profit | 91.5 | 72.6 | |
Share of profit from associates | (1.1) | (0.9) | |
Profit from operations | 90.4 | 71.7 | |
Depreciation of property, plant and equipment | 26.1 | 26.2 | |
Amortisation of intangible assets | 7.6 | 6.3 | |
Profit on sale of property, plant and equipment | (0.5) | - | |
Share based payment expense | 2.6 | 2.3 | |
(Decrease)/increase in provisions | (1.8) | 1.1 | |
Pension scheme payments | (6.1) | (2.0) | |
Other non-cash items | (1.3) | (2.8) | |
Unrealised foreign exchange movements | (2.4) | 0.3 | |
Operating cash inflows before movements in working capital | 114.6 | 103.1 | |
Increase in working capital | (77.4) | (13.3) | |
Cash generated by operations | 37.2 | 89.8 | |
Income taxes paid | (6.0) | (2.6) | |
Net cash inflow from operating activities | 31.2 | 87.2 | |
Dividends received from associates | 0.2 | 0.3 | |
Purchase of property, plant and equipment | (12.1) | (11.6) | |
Purchase of intangible assets | (1.8) | (9.6) | |
Proceeds from disposal of property, plant and equipment | 6.8 | 0.3 | |
Interest received | 2.4 | 1.5 | |
Interest paid | (20.8) | (13.9) | |
Interest element of finance leases paid | (0.2) | (0.3) | |
Free cash flow | 5.7 | 53.9 |
3 Selected key financial data
Financial year | 2010 | 2009 | 2008 | 2007 |
$m | $m | $m | $m | |
Revenue | 1,833.7 | 1,686.1 | 2,138.8 | 1,958.8 |
Underlying EBITDA* | 231.1 | 217.3 | 265.1 | 270.0 |
Underlying operating profit | 171.4 | 156.8 | 203.0 | 211.4 |
Exceptional items | (15.8) | (28.4) | (9.3) | 48.8 |
Net interest | (23.6) | (34.8) | (37.9) | (38.6) |
Profit before tax | 132.0 | 93.6 | 155.8 | 221.6 |
Tax | (31.3) | (22.6) | (39.4) | (47.2) |
Profit for the period | 100.7 | 71.0 | 116.4 | 174.4 |
Earnings per share (cents) | ||||
Basic: | ||||
Adjusted | 27.3c | 22.8c | 29.7c | 30.7c |
Unadjusted | 23.6c | 17.9c | 28.3c | 42.4c |
Diluted: | ||||
Adjusted | 26.4c | 22.3c | 29.7c | 30.6c |
Unadjusted | 22.8c | 17.5c | 28.2c | 42.3c |
Cash generated by continuing operations | 239.0 | 297.0 | 264.5 | 240.8 |
Free cash flow (continuing operations) | 178.6 | 214.5 | 142.7 | 88.6 |
Net debt | (492.8) | (630.5) | (798.4) | (733.5) |
Net debt to underlying EBITDA | 2.1 | 2.9 | 2.9** | 2.7 |
* Underlying EBITDA is the Group's underlying operating profit before depreciation and amortisation.
** In 2008, the net debt was translated at average rates for the purpose of this calculation, in accordance with the Group's covenant calculation methodology for its banks facilities.
Related Shares:
SIG.L