Preliminary Announcement

UTV Media plc ("UTV" or "the Company" or "the Group") Belfast, London & Dublin - 18 March 2015: UTV Media plc today announcespreliminary results for the year ended 31 December 2014 Financial highlights on continuing operations* * Group revenue of £116.0m (2013 restated: £107.2m) * Pre-tax profits of £17.2m (2013 restated: £17.0m) * Group operating profit of £19.7m (2013: £20.1m) - 2014 includes UTV Ireland start-up costs of £3.0m * Net debt £46.2m (2013: £49.6m) * Diluted adjusted earnings per share from continuing operations of 14.56p (2013 restated: 14.32p) * Proposed final dividend of 5.43p giving a full year dividend of 7.25p (2013: 7.00p) * As appropriate, references to profit include associate income but excludediscontinued operations Operational highlights * Improving macroeconomic environment in the UK and Ireland * Strong audience performances across Radio and Television * talkSPORT revenues of £29.7m (2013: £24.3m) boosted by World Cup * Strategic focus on radio and television - UTV Connect, PropertyPal, UTV Drive and Recruit NI now divested * UTV Ireland launched successfully on 1 January 2015 Prospects highlights * Radio Ireland revenue (local currency) flat (down 10% after adjusting for foreign exchange), Radio GB revenue flat against strong 2014 comparison and Television revenue (excluding UTV Ireland) up 4% * UTV Ireland performance impacted by delays to EPG positions, agency negotiations and slower than expected audience build. Losses for year now anticipated to be in the region of £6M * Foreign exchange headwinds impacting profitability in Ireland John McCann, Group Chief Executive, UTV Media plc, said: "Record audiences for talkSPORT and market leading audiences in both IrishRadio and Television underpin these results, providing confidence that our newventure UTV Ireland, will emulate its older siblings and over time, build astronger audience base. The significant uplift in GB Radio's profitabilitytogether with the recovery in Irish Radio and Television advertising areparticularly pleasing." Key dates * 14 May 2015 - Annual General Meeting and Interim Management Statement * 29 May 2015 - Record date for payment of dividends * 15 July 2015 - Payment of dividends * 28 August 2015 - Interim Results Announcement For further information contact: Investor Enquiries www.utvmedia.com/investors John McCann, Group CEO +44 (0) 28 9032 8122 Norman McKeown, Group Finance Director +44 (0) 28 9032 8122 Media Enquiries Orla McKibbin, Director of +44 (0) 28 9026 2188 / +44 (0) 7879Communications 666 427 Maitland Martin Barrow +44 (0) 20 7379 5151 / +44 (0) 7843 068 912 Chairman's Statement Overview Your company made considerable progress during 2014, with turnover growing to £116.0M (2013: £107.2M) and pre-tax profits increasing to £17.2M (2013: £17.0M)even after absorbing pre-operational losses of £3.0M (2013: £0.1M) on our newtelevision station, UTV Ireland, which successfully launched on 1 January 2015.Profit growth of 45% in our GB radio division was particularly strong and itwas pleasing to record a return to profit growth in our Irish radio division.Despite the investment in UTV Ireland, which included a lower than budgetedcapital expenditure of £5.6M, group net debt reduced by £3.4M. Results and dividends for the year* Group operating profit of £19.7M (2013: £20.1M) was after accounting forpre-operational losses on UTV Ireland of £3.0M (2013: £0.1M). After charginglower net interest costs of £2.4M (2013: £2.9M) and foreign exchange losses of£0.1M (2013: £0.2M), group profit before taxation was £17.2 M (2013: £17.0M).Group net debt was lower at £46.2M (2013: £49.6M). Dividends amounting to £6.8M (2013: £6.7M) were paid during the year,representing a final ordinary dividend for 2014 of 5.25p per share and aninterim ordinary dividend for 2014 of 1.82p per share as shown in note 12. A final dividend of £5.2M representing 5.43p per share is proposed for approvalat the Annual General Meeting. If approved, warrants in respect of it will bedespatched on 15 July 2015 to shareholders on the register at the close ofbusiness on 29 May 2015. *as appropriate, references to operating profit include income from associatesand joint ventures but exclude discontinued operations. Review of activities With our renewed focus on broadcasting, preparations for the launch of UTVIreland took centre stage in 2014. A licence was agreed with the BroadcastingAuthority of Ireland, programming was acquired and commissioned, staff wererecruited and trained, studio premises were fitted out and agreements werereached with all major platform providers. Although our new channel's licence is not that of a public service broadcaster,the Minister for Communications, Energy and Natural Resources designated it ashaving public service characteristics which facilitated carriage on the DTTplatform, thus ensuring universal coverage in Ireland, and prominence onElectronic Programme Guides. Universal coverage and EPG prominence areprerequisites to achieving our ambition that UTV Ireland will be the secondmost watched channel, after state broadcaster RTE 1, within 2 years oflaunching. Pre-eminent audience delivery is at the heart of our broadcasting strategy andthe Group's track record in delivering market leading positions in radio inIreland and in television in Northern Ireland, is already well known, as is itsachievement in significantly increasing the audience to talkSPORT. In a statement to the market on 9 January 2015, we confirmed that a review ofour strategic options in respect of our GB local radio stations was under wayand advised that it may, or may not, lead to the disposal of some, or all, ofour GB local radio stations. We also advised that any disposal would notinclude talkSPORT, Sport Magazine, talkSPORT International and any of our Irishradio stations. Our Irish radio stations continued to deliver impressive audience performances,occupying the number one slot in each of the major urban areas in which weoperate, including Dublin. This strong audience delivery mitigated the worsteffects of the extremely deep advertising recession which Ireland experiencedover the past few years. More importantly, it provides firm foundations forgrowth as the Irish adverting market recovers. This recovery started to appearas we moved through 2014, though the euro exchange rate provided some headwindto growth. With the tailwind of the FIFA World Cup, talkSPORT performed strongly in 2014,both in terms of audience and financial performance. talkSPORT was the only UKbroadcaster to broadcast live commentary of every single World Cup match, atotal of 64 games. Audience reach achieved a record high of 3.3M weekly, 50%greater than ten years ago and underlining the continuing popularity of goodquality radio. The station's pure sport focus means that more than four fifthsof all talkSPORT listeners are now male and over half are ABC1, underlining itsunique appeal to advertisers. Our television channel in Northern Ireland maintained its long-standingposition as market leader. Its audience success is built on thewell-established formula of high quality local programming packaged around anattractive network schedule within a strong regional brand. Our share of thepeaktime audience in Northern Ireland in 2014 was 24.7%, significantly higherthan the ITV network average of 21.3% and more than 4 times greater than ournearest commercial competitor, C4. Prospects The year has started in line with our expectations for our establishedbroadcasting assets. talkSPORT's excellent audience performance underpinned ourinitiative to seek our advertisers' support for improved airtime pricing. Thisshould help us to maintain talkSPORT's profitability in 2015 at the levelsachieved in the 2014 FIFA World Cup year. In Q1, talkSPORT's revenues areexpected to be down by 2%. Our GB local radio stations continue to perform well, with 19% growth inlistening hours being recorded in the most recent RAJAR research. Q1 airtimerevenues are expected to be up by 4%. The recovery in the Irish radio advertising market now seems to be under wayalthough growth is, as yet, reasonably modest. Our stations over time haveconsistently outperformed the market due to their excellent listenershippositions. In the first quarter of 2015, we expect our Irish radio advertisingrevenues to be broadly flat with further weakening of the euro reducing this toaround 10% down. The UK television advertising market is enjoying good growth in Q1 2015 andtelevision advertising revenue derived from London to our Northern Irelandtelevision division, UTV, is expected to be up by 8% in the first quarter.Growth from our Dublin office to UTV is also forecast to be positive at 9% upin Q1. There continues to be some weakness in the Belfast marketplace wherebudget cuts recently introduced by the Northern Ireland Assembly are depressinggovernment advertising expenditure, leading to a forecast 13% decline inrevenue from that office. Overall, UTV Northern Ireland's televisionadvertising is expected to be up by 3% in Q1. UTV Ireland We were delighted that UTV Ireland met its goal of launching across theRepublic of Ireland on 1 January 2015, which it achieved well within budget, inspite of a number of challenges along the critical path. It took ussubstantially longer than we had anticipated to receive the designation of thechannel's "public service" character which meant that we had very little timebefore the launch date for engagement with our prospective audience about EPGpositions and, where necessary, retuning of DTT boxes. In turn, this delayedmeaningful negotiations with advertising agencies. As a consequence, ourinitial audience levels and advertising revenues have been lower than planned. I am pleased to report that audience share is starting to grow and, two monthsinto the launch, UTV Ireland was the second most watched channel in peaktime.Under a management team with a proven track record in delivering audienceoutperformance, I am confident that our ambition for UTV Ireland to be thesecond most watched channel after state broadcaster, RTE 1, within a two yeartimeframe will be achieved. While it is a very early stage in the financialyear of a start up venture, the delay referred to above has led to a change inassumption for the financial performance of the new channel. Consequently thecurrent view is that the new channel will incur losses in the region of £6M in2015. Conclusion Our broadcast model is fairly simple to articulate: deliver significantaudiences, sell those audiences effectively to advertisers and maintain a lowcost base. Broadcasters usually find the first part of that model, audiencedelivery, the most difficult to accomplish but, as demonstrated in this report,it is something that your company has consistently achieved and, in time, willbring to our new growth platform, UTV Ireland. I would like to thank my colleagues on the board, the management and, mostimportantly, our staff for their tremendous hard work and commitment to the UTVbusinesses over the past year. Many long hours have been spent by all thoseinvolved with getting UTV Ireland on air, whilst their colleagues in otherparts of the group have continued to work hard to ensure that their businessesmaintain their strong market positions and profit contributions. We are veryfortunate to have such a wonderful team of professional and passionate peoplestriving to grow UTV. Richard Huntingford Chairman 18 March 2015 Group Income Statement For the year ended 31 December 2014 Results Exceptional Total Results Exceptional Total before Items before Items Exceptional Exceptional Items Items Notes 2014 2014 2014 2013 2013 2013 (restated) (restated) £000 £000 £000 £000 £000 £000 Continuing operations Revenue 2 116,043 - 116,043 107,222 - 107,222 Operating costs (96,680) - (96,680) (87,359) - (87,359) ------- ------- ------- ------- ------- ------- Operating profit from 2 19,363 - 19,363 19,863 - 19,863continuing operationsbefore tax and financecosts Share of results of 314 - 314 239 - 239associates and jointventure ------- ------- ------- ------- ------- ------- Profit from continuing 19,677 - 19,677 20,102 - 20,102operations before taxand finance costs Finance revenue 50 - 50 49 - 49 Finance costs (2,407) - (2,407) (3,012) - (3,012) Foreign exchange loss (75) - (75) (188) - (188) ------- ------- ------- ------- ------- ------- Profit from continuing 2 17,245 - 17,245 16,951 - 16,951operations before tax Taxation 3 (3,244) - (3,244) (3,379) 1,215 (2,164) ------- ------- ------- ------- ------- ------- Profit from continuing 14,001 - 14,001 13,572 1,215 14,787operations after tax Discontinued operations Profit/(loss) from (201) - (201) 111 (1,157) (1,046)discontinued operations ------- ------- ------- ------- ------- ------- Profit for the year 13,800 - 13,800 13,683 58 13,741 ------- ------- ------ ------- ------- ------ Attributable to: Equity holders of the 13,643 - 13,643 13,415 58 13,473parent Non-controlling 157 - 157 268 - 268interest ------- ------- ------- ------- ------- ------- 13,800 - 13,800 13,683 58 13,741 ------- ------- ------ ------- ------- ------ Earnings per share 2014 2013 (restated) Continuing operations Basic 4 14.44p 15.19p Diluted 4 14.37p 15.04p Adjusted 4 14.63p 14.47p Diluted adjusted 4 14.56p 14.32p Continuing anddiscontinued operations Basic 4 14.23p 14.10p Diluted 4 14.16p 13.96p Adjusted 4 14.42p 14.58p Diluted adjusted 4 14.35p 14.44p Group Statement of Comprehensive Income For the year ended 31 December 2014 Notes 2014 2013 £000 £000 Profit for the year 13,800 13,741 ------- ------- Other comprehensive income Items that will not be reclassified subsequentlyto profit or loss: Actuarial gain on defined benefit pension schemes 9 360 5,111 Income tax relating to items that will not be (72) (1,325)reclassified subsequently ------- ------- 288 3,786 ------- ------- Items that may be reclassified subsequently toprofit or loss: Cash flow hedges: Loss arising during the year - (4) Less transfers to the income statement - 321 Exchange (loss)/gain on translation of foreign (3,379) 932operations Income tax relating to items that may be (32) 78reclassified ------- ------- (3,411) 1,327 ------- ------- Other comprehensive (loss)/profit for the year, (3,123) 5,113net of tax ------- ------- Total comprehensive profit for the year, net of 10,677 18,854tax ------- ------- Attributable to: Equity holders of the parent 10,520 18,586 Non-controlling interest 157 268 ------- ------- 10,677 18,854 ------- ------- Group Balance Sheet For the year ended 31 December 2014 Notes 2014 2013 (restated) £000 £000 ASSETS Non-current assets Property, plant and equipment 17,360 11,874 Intangible assets 172,163 177,139 Investments accounted for using the equity 900 847method Deferred tax asset 3 1,531 1,952 ------- ------- 191,954 191,812 ------- ------- Current assets Inventories 2,390 1,758 Trade and other receivables 23,502 22,784 Financial asset 6 275 - Cash and short term deposits 12,886 10,185 ------- ------- 39,053 34,727 ------- ------- TOTAL ASSETS 231,007 226,539 ------- ------- EQUITY AND LIABILITIES Equity attributable to equity holders of theparent Equity share capital 55,557 55,557 Capital redemption reserve 50 50 Treasury shares (104) (123) Foreign currency reserve 3,571 6,950 Retained earnings 45,428 38,531 ------- ------- 104,502 100,965 Non-controlling interest 53 106 ------- ------- TOTAL EQUITY 104,555 101,071 ------- ------- Non-current liabilities Financial liabilities 7 55,399 55,866 Pension liability 9 1,971 4,598 Provisions 372 411 Deferred tax liabilities 3 34,266 35,066 ------- ------- 92,008 95,941 ------- ------- Current liabilities Trade and other payables 28,058 23,161 Financial liabilities 7 3,668 3,939 Tax payable 1,909 1,727 Provisions 809 700 ------- ------- 34,444 29,527 ------- ------- TOTAL LIABILITIES 126,452 125,468 ------- ------- TOTAL EQUITY AND LIABILITIES 231,007 226,539 ------- ------- Group Cash Flow Statement For the year ended 31 December 2014 Notes 2014 2013 (restated) £000 £000 Operating activities Profit before tax (i) 17,044 17,062 Adjustments to reconcile profit before tax to net cash flows from operating activities Foreign exchange loss/(gain) 75 188 Net finance costs 2,357 2,963 Share of results of associates and joint (272) (217)venture Non cash decrease in contingent consideration - (2,859) Consideration receivable from disposal of (1,175) -discontinued operations Amortisation and impairment of intangible - 188assets Depreciation of property, plant and equipment 1,936 1,919 Loss from sale of property, plant and 32 (4)equipment Share based payments 303 419 Difference between pension contributions paid (2,454) (3,224)and amounts recognised in the incomestatement Increase in inventories (632) (115) (Increase)/decrease in trade and other (1,031) 1,339receivables Increase/(decrease) in trade and other 4,783 (2,987)payables Increase/(decrease) in provisions 70 (60) ------- ------- Cash generated from operations before 21,036 14,612exceptional costs Exceptional costs - (227) Tax paid (2,480) (2,460) ------- ------- Net cash inflow from operating activities 18,556 11,925 ------- ------- Investing activities Interest received 51 58 Proceeds on disposal of property, plant and 20 16equipment Purchase of property, plant and equipment (7,622) (1,768) Income received from associates and joint 235 229venture Proceeds from the disposal of discontinued 900 -operations Outflow on acquisition of subsidiary - (200)undertaking ------- ------- Net cash flows from investing activities (6,416) (1,665) ------- ------- Financing activities Borrowing costs (1,816) (1,891) Swap cost - (321) Dividends paid to equity shareholders (6,766) (6,677) Dividends paid to non-controlling interests (210) (460) Acquisition of treasury shares (506) - Repayment of borrowings (3,940) (4,216) Proceeds from borrowings 3,879 3,000 ------- ------- Net cash flows used in financing activities (9,359) (10,565) ------- ------- Net increase/(decrease) in cash and cash 2,781 (305)equivalents Net foreign exchange differences (80) 51 Cash and cash equivalents at 1 January 10,185 10,439 ------- ------- Cash and cash equivalents at 31 December 8 12,886 10,185 ------- ------- i. Includes both continuing and discontinued operations. Group Statement of Changes in Equity For the year ended 31 December 2014 Equity Capital Foreign Cash Share Non- flow share redemption Treasury currency hedge Retained holder controlling capital reserve shares reserve reserve earnings equity interest Total £000 £000 £000 £000 £000 £000 £000 £000 £000 At 1 January 55,557 50 (1,523) 6,018 (251) 28,680 88,531 480 89,0112013 ------ ------- ------- ------- ------- ------- ------- ------- ------- Profit for the - - - - - 13,473 13,473 268 13,741year Other - - - 932 251 3,930 5,113 - 5,113comprehensive(loss)/incomein the year ------ ------- ------- ------- ------- ------- ------- ------- ------- Total net - - - 932 251 17,403 18,586 268 18,854comprehensive(loss)/incomein the year Treasury shares - - 1,400 - - (1,521) (121) - (121)issued Share based - - - - - 419 419 - 419payment Acquisition of - - - - - 228 228 (228) -non-controllinginterests Equity - - - - - (6,678) (6,678) (414) (7,092)dividends paid ------ ------- ------- ------- ------- ------- ------- ------- ------- At 31 December 55,557 50 (123) 6,950 - 38,531 100,965 106 101,0712013 ------ ------- ------- ------- ------- ------- ------- ------- ------- Profit for the - - - - - 13,643 13,643 157 13,800year Other - - - (3,379) - 256 (3,123) - (3,123)comprehensive(loss)/incomein the year ------ ------- ------- ------- ------- ------- ------- ------- ------- Total net - - - (3,379) - 13,899 10,520 157 10,677comprehensive(loss)/incomein the year Acquisition of - - (506) - - - (506) - (506)treasury shares Treasury shares - - 525 - - (525) - - -issued Share based - - - - - 303 303 - 303payment Equity - - - - - (6,780) (6,780) (210) (6,990)dividends paid ------ ------- ------- ------- ------- ------- ------- ------- ------- At 31 December 55,557 50 (104) 3,571 - 45,428 104,502 53 104,5552014 ------ ------- ------- ------- ------- ------- ------- ------- ------- Notes to the accounts For the year ended 31 December 2014 1. Basis of preparation The Group's financial statements consolidate those of UTV Media plc, and itssubsidiaries (together referred to as the "Group") and the Group's interest inassociates and jointly controlled entities. The Group financial statements have been prepared in accordance withInternational Financial Reporting Standards (IFRSs) as adopted by the EuropeanUnion as they apply to the financial statements of the Group for the year ended31 December 2014 and applied in accordance with the Companies Act 2006. Theaccounts are principally prepared on the historical cost basis except whereother bases are applied under the Group's accounting policies. The Group has adopted the following new standards that are relevant for thepreparation of the financial statements for the year ended 31 December 2014:IFRS 10 "Consolidated Financial Statements", IFRS 11 "Joint Arrangements ("IFRS11"), IFRS 12 "Disclosure of Interests in Other Entities", IAS 27R "SeparateFinancial Statements" and IAS 28R "Investments in Associates and JointVentures". With the exception of new disclosures and the adoption of IFRS 11,the application of new standards effective from 1 January 2014 have not had animpact on the Group's financial statements. IFRS 11 establishes a principle that applies to the accounting for all jointarrangements, whereby parties to the arrangement account for their underlyingcontractual rights and obligations relating to the joint arrangement. Onadoption of this standard the Group's existing joint ventures, which werepreviously accounted for by recognising the Group's share of the assets,liabilities, revenue and expenses relating to the joint venture, are nowaccounted for using the equity method. Although a number of line items withinthe Group Income Statement, Group Balance Sheet and Group Cash Flow have beenrestated for the year ended 31 December 2013, profit for the period and totalequity of the Group are unaffected. The more significant changes within theGroup Income Statement relate to reductions in revenues plus operating profitbefore finance of £549,000 and £59,000 respectively, with increases of £50,000and £109,000 in losses from discontinued operations and the share of results ofassociates and joint ventures accounted for using the equity method,respectively. Within the Group Balance Sheet the more significant changes at 31December 2013 relate to reductions in intangibles of £437,000, trade and otherreceivables of £781,000, cash and short term deposits of £506,000 plus tradeand other payables £1,004,000, respectively, with an increase in investmentsaccounted for using the equity method of £733,000. There was no impact on theGroup's Statement of Comprehensive Income or the Group Statement of Changes inEquity. In 2013 certain of the Group's New Media businesses were identified as beingnon-core to the future strategy of the Group and have subsequently beendisposed of or trading ceased. Consequently the Group Income Statement reflectsthe classification of these businesses as discontinued operations. The financial information set out in the preliminary announcement does notconstitute statutory accounts within the meaning of Section 435 of theCompanies Act 2006 in respect of the accounts for the year ended 31 December2014. The statutory accounts for the year ended 31 December 2013, upon whichthe Company's auditors have given a report which was unqualified and did notcontain a statement under section 498(2) or (3) of the Companies Act 2006, havebeen delivered to the Registrar of Companies. The statutory accounts for theyear ended 31 December 2014 have yet to be signed. They will be finalised onthe basis of the financial information presented by the directors in thispreliminary announcement and will be delivered to the Registrar of Companies indue course. 2. Revenue and segmental analysis The tables below present revenue and segment result information regarding theGroup's operating segments for the years ended 31 December 2014 and 2013 on thebasis of how the Group was managed during 2014. These business segments alloperate as part of the Group's continuing operations. Revenue represents the amounts derived from the provision of goods and serviceswhich fall within the Group's ordinary activities, stated net of value addedtax. Revenue is principally generated from advertising and sponsorship.Transfer prices between business segments are set on an arm's length basis in amanner similar to transactions with third parties. As outlined in the 2013 Report and Accounts, the Group's strategy was refinedto focus predominately on broadcasting and to exit from non-core activities,all of which resided within the New Media division, a fourth operating segmentpreviously reported on within the Group. These non-core activities have beenclassified as discontinued operations. Tibus and Simply Zesty, the continuedactivities which previously resided within the New Media operating segment,have been incorporated within the Television operating segment. The following tables present revenue, profit before tax and business segmentinformation regarding the Group's business segments for the years ended 31December 2014 and 2013. The figures for the year ended 31 December 2013 havebeen restated to reflect the adoption of IFRS11 as outlined in note 1, togetherwith the change in segments noted above. Revenue Year ended 31 December 2014 Radio Radio GB Ireland Television Total £000 £000 £000 £000 Sales to third parties 56,396 20,463 39,184 116,043 Intersegmental sales 649 1,223 2,316 4,188 ------- ------- ------- ------- 57,045 21,686 41,500 120,231 ------- ------- ------- ------- Year ended 31 December 2013 Radio Radio GB Ireland Television Total (restated) (restated) (restated) £000 £000 £000 £000 Sales to third parties 49,872 20,767 36,583 107,222 Intersegmental sales 541 1,219 2,783 4,543 ------- ------- ------- ------- 50,413 21,986 39,366 111,765 ------- ------- ------- ------- 2. Revenue and segmental analysis (continued) Results Year ended 31 December 2014 Radio GB Radio Television Total Ireland £000 £000 £000 £000 Segment operating profit 11,331 5,384 6,496 23,211 ------- ------- ------- Central costs (3,848) Associate and Joint Venture income 314 ------- Profit before tax and finance 19,677costs Net finance cost (2,357) Foreign exchange loss (75) ------- Profit before taxation 17,245 ------- Year ended 31 December 2013 Radio GB Radio Television Total Ireland (restated) (restated) (restated) (restated) £000 £000 £000 £000 Segment operating profit 7,807 5,121 9,700 22,628 ------- ------- ------- Central costs (2,765) Associate and Joint Venture 239income ------- Profit before tax and finance 20,102costs Net finance cost (2,963) Foreign exchange gain (188) ------- Profit before taxation 16,951 ------- 3. Taxation (a) Tax on profit on ordinary activities 2014 2013 £000 £000 Current income tax: UK corporation tax on profits for the year (2,962) (2,453) Adjustments in respect of previous years 431 248 ------- ------- (2,531) (2,205) ------- ------- Foreign tax: ROI corporation tax on profits for the year (116) (346) Adjustments in respect of previous years (27) 16 ------- ------- (143) (330) ------- ------- Total current tax (2,674) (2,535) Deferred tax: Origination and reversal of timing differences (580) (684) Adjustments in respect of previous years 10 (160) ------- ------- Tax charge in the income statement on operating (3,244) (3,379)activities Exceptional deferred tax credit - 1,215 ------- ------- Total tax charge (3,244) (2,164) ------- ------- The tax charge in the Income Statement is disclosed as: Tax charge on continuing operations (3,244) (2,164) Tax credit on discontinued operations - - ------- ------- Tax charge in the income statement (3,244) (2,164) ------- ------- Tax relating to items in the Statement of ComprehensiveIncome Deferred tax: Actuarial gain on pension schemes (72) (1,022) Revaluation of cash flow hedges - (61) Valuation of long term incentive plan (32) 139 Exceptional deferred tax charge - (303) ------- ------- Tax charge in the statement of comprehensive income (104) (1,247) ------- ------- 4. Earnings per share Basic earnings per share are calculated based on the profit for the financialyear attributable to equity holders of the parent and on the weighted averagenumber of shares in issue during the year. Adjusted earnings per share are calculated based on the profit for thefinancial year attributable to equity holders of the parent adjusted for theexceptional items and the impact of net finance costs under IAS 19 "EmployeeBenefits (Revised)". This calculation uses the weighted average number ofshares in issue during the year. Diluted earnings per share are calculated based on profit for the financialyear attributable to equity holders of the parent. Diluted adjusted earningsper share are calculated based on profit for the financial year attributable toequity holders of the parent before exceptional items and the impact of netfinance costs under IAS 19 "Employee Benefits (Revised)". In each case theweighted average number of shares is adjusted to reflect the dilutive potentialof the awards expected to be vested on the Long Term Incentive Schemes. The split of the figures for the year ended 31 December 2013 between continuingand discontinued oprations has been restated to reflect the adoption of IFRS11as outlined in note 1. The following reflects the income and share data used in the basic, adjusted,diluted and diluted adjusted earnings per share calculations: Net profit attributable to equity holders 2014 2013 Continuing Discontinued Total Continuing Discontinued Total Operations Operations Operations Operations (restated) (restated) £000 £000 £000 £000 £000 £000 Net profit/(loss) 13,844 (201) 13,643 14,519 (1,046) 13,473attributable toequity holders Adjustments to net 187 - 187 523 - 523financing costs Exceptional items - - - (1,215) 1,157 (58) ------ ------ ------ ------ ------ ------ Total adjusted and 14,031 (201) 13,830 13,827 111 13,938diluted profitattributable toequity holders ------- ------- ------- ------- ------- ------- Weighted average number of shares 2014 2013 thousands thousands Shares in issue 95,903 95,903 Weighted average number of treasury (23) (325)shares ------- ------- Weighted average number of shares for 95,880 95,578basic and adjusted earnings per share(excluding treasury shares) Effect of dilution of the Long Term 467 959Incentive Plan ------- ------- 96,347 96,537 ------- ------- 4. Earnings per share (continued) Earnings per share 2014 2013 (restated) From continuing operations Basic 14.44p 15.19p ------- ------- Diluted 14.37p 15.04p ------- ------- Adjusted 14.63p 14.47p ------- ------- Diluted adjusted 14.56p 14.32p ------- ------- From continuing and discontinued operations Basic 14.23p 14.10p ------- ------- Diluted 14.16p 13.96p ------- ------- Adjusted 14.42p 14.58p ------- ------- Diluted adjusted 14.35p 14.44p ------- ------- From discontinued operations Basic 0.21p (1.09)p ------- ------- Diluted 0.21p (1.08)p ------- ------- Adjusted 0.21p 0.12p ------- ------- Diluted adjusted 0.21p 0.11p ------- ------- 5. Dividends 2014 2013 Equity dividends on ordinary shares £000 £000 Declared and paid during the year Final for 2013: 5.25p (2012: 5.25p) 5,035 5,001 Interim for 2014: 1.82p (2013: 1.75p) 1,745 1,677 ------- ------- Dividends paid 6,780 6,678 ------- ------- Proposed for approval at Annual General Meeting (notrecognised as a liability at 31 December) Final dividend for 2014: 5.43p (2013: 5.25p) 5,205 5,032 ------- ------- 6. Financial asset 2014 2013 £000 £000 Contingent consideration 275 - ------ ------- Contingent consideration receivable relates to amounts due in respect of thedisposal of certain of the Group's discontinued businesses during the year. 7. Financial liabilities 2014 2013 £000 £000 Current Current instalments due on bank loans 3,668 3,939 Non-current Non-current instalments due on bank loans 55,399 55,866 ------ ------ 59,067 59,805 ------ ------- The bank loans at 31 December 2014 are stated net of £509,000 (2013: £730,000)of deferred financing costs. 8. Net Debt 2014 2013 £000 £000 Bank loans (59,067) (59,805) Cash and short term deposits 12,886 10,185 ------ ------ (46,181) (49,620) ------ ------- 9. Pension schemes The IAS 19 deficit at 31 December 2014 is £1,971,000 compared with a deficit of£4,598,000 at 31 December 2013. The reduction in the deficit was primarilydriven by adjustments realised following the actuarial review in the year plusincreased funding by the company. The Group funded a discretionary amount of £1,209,000 towards the actuarialdeficit in 2014 (2013: £1,209,000) by means of a cash transfer and has agreedto make a further payment of £1,209,000 in 2015. In addition, during theperiod, the option was exercised to transfer properties back to Group from thescheme for an agreed contribution of £1,450,000. For accounting purposes thesetransactions are treated as part of the schedule of contributions and hence areaccounted for on a cash basis, with no de-recognition of the properties orrecognition of any future liabilities in the Group's financial statements 10. Related party transactions The nature of related parties disclosed in the consolidated financialstatements for the Group as at and for the year ended 31 December 2013 has notchanged. There have been no significant related party transactions in the yearended 31 December 2014. This summary has been approved by our Directors for release to the Press today18 March 2015 and the full printed Annual Report and Accounts will be posted toShareholders and Stock Exchanges on 14 April 2015. Copies will be available tothe public at the Company's registered office Ormeau Road, Belfast, BT7 1EBfrom that date.