REG - BAE SYSTEMS PLC - Doc re. Annual Report <Origin Href="QuoteRef">BAES.L</Origin> - Part 6
22/03/2016 13:43
- Part 6: For the preceding part double click ID:nRSV9018Se
2015 2014
Notes £m Total £m Total
£m £m
Continuing operations
Combined sales of Group and share of equity accounted investments 1 17,904 16,637
Less: share of sales of equity accounted investments 1 (1,117) (1,207)
Revenue 1 16,787 15,430
Operating costs 2 (15,622) (14,387)
Other income 4 227 174
Group operating profit 1,392 1,217
Share of results of equity accounted investments 1 110 83
Underlying EBITA1 1 1,683 1,702
Non-recurring items 1 26 -
EBITA 1,709 1,702
Amortisation of intangible assets 1 (108) (184)
Impairment of intangible assets 1 (78) (170)
Financial income/(expense) of equity accounted investments 5 3 (30)
Taxation expense of equity accounted investments (24) (18)
Operating profit 1 1,502 1,300
Financial income 241 241
Financial expense (653) (659)
Finance costs 5 (412) (418)
Profit before taxation 1,090 882
Taxation expense 6 (147) (130)
Profit for the year 943 752
Attributable to:
Equity shareholders 918 740
Non-controlling interests 25 12
943 752
Earnings per share 7
Basic earnings per share 29.0p 23.4p
Diluted earnings per share 28.9p 23.3p
1. Earnings before amortisation and impairment of intangible assets, finance
costs and taxation expense (EBITA) excluding non-recurring items.
Note references used above are references to notes to the Group accounts in
the Annual Report 2015 that can be viewed on the Company's website.
Consolidated statement of comprehensive income
for the year ended 31 December
2015 2014
Otherreserves1£m Retained earnings Total Otherreserves1£m Retained earnings Total
£m £m £m £m
Profit for the year - 943 943 - 752 752
Other comprehensive income
Items that will not be reclassified to the income statement:
Remeasurements on retirement benefit schemes:
Subsidiaries - 864 864 - (2,023) (2,023)
Equity accounted investments - 21 21 - (73) (73)
Tax on items that will not be reclassified to the income statement - (261) (261) - 503 503
Items that may be reclassified to the income statement:
Currency translation on foreign currency net investments:
Subsidiaries 260 - 260 2772 - 2772
Equity accounted investments (45) - (45) (13)2 - (13)2
Reclassification of cumulative currency translation reserve on disposal 20 - 20 - - -
Fair value (loss)/gain on available-for-sale financial assets - (1) (1) - 4 4
Amounts credited/(charged) to hedging reserve:
Subsidiaries 11 - 11 (92) - (92)
Equity accounted investments (36) - (36) - - -
Tax on items that may be reclassified to the income statement 5 - 5 19 - 19
Total other comprehensive income for the year (net of tax) 215 623 838 191 (1,589) (1,398)
Total comprehensive income for the year 215 1,566 1,781 191 (837) (646)
Attributable to:
Equity shareholders 216 1,541 1,757 191 (849) (658)
Non-controlling interests (1) 25 24 - 12 12
215 1,566 1,781 191 (837) (646)
1. An analysis of other reserves is provided in note 22.
2. Restated.
Consolidated statement of changes in equity
for the year ended 31 December
Attributable to equity holders of the parent
Issued Share Otherreserves1£m Retained earnings Total Non-controlling Total
share premium £m £m interests equity
capital £m £m £m
£m
At 1 January 2015 87 1,249 5,061 (4,555) 1,842 35 1,877
Profit for the year - - - 918 918 25 943
Total other comprehensive income for the year - - 216 623 839 (1) 838
Share-based payments - - - 44 44 - 44
Net sale of own shares - - - 1 1 - 1
Ordinary share dividends - - - (655) (655) (40) (695)
Disposal of non-controlling interest - - - - - (6) (6)
At 31 December 2015 87 1,249 5,277 (3,624) 2,989 13 3,002
At 1 January 2014 89 1,249 4,868 (2,825) 3,381 37 3,418
Profit for the year - - - 740 740 12 752
Total other comprehensive income for the year - - 191 (1,589) (1,398) - (1,398)
Share-based payments - - - 42 42 - 42
Net purchase of own shares (2) - 2 (281) (281) - (281)
Ordinary share dividends - - - (642) (642) (14) (656)
At 31 December 2014 87 1,249 5,061 (4,555) 1,842 35 1,877
1. An analysis of other reserves is provided in note 22.
Note references used above are references to notes to the Group accounts in
the Annual Report 2015 that can be viewed on the Company's website.
Consolidated balance sheet
as at 31 December
Notes 2015 2014
£m £m
Non-current assets
Intangible assets 8 10,117 9,983
Property, plant and equipment 9 1,698 1,589
Investment property 10 120 129
Equity accounted investments 11 250 229
Other investments 6 7
Other receivables 12 275 347
Retirement benefit surpluses 20 193 162
Other financial assets 13 107 38
Deferred tax assets 14 985 1,327
13,751 13,811
Current assets
Inventories 15 726 690
Trade and other receivables including amounts due from customers for contract work 12 2,940 2,850
Current tax 4 7
Other financial assets 13 105 46
Cash and cash equivalents 16 2,537 2,308
Assets held for sale 20 76
6,332 5,977
Total assets 17 20,083 19,788
Non-current liabilities
Loans 18 (3,775) (2,868)
Other payables 19 (1,020) (932)
Retirement benefit obligations 20 (4,694) (5,530)
Other financial liabilities 13 (72) (79)
Deferred tax liabilities 14 (13) (21)
Provisions 21 (354) (436)
(9,928) (9,866)
Current liabilities
Loans and overdrafts 18 (237) (482)
Trade and other payables 19 (6,162) (6,670)
Other financial liabilities 13 (130) (107)
Current tax (315) (448)
Provisions 21 (301) (315)
Liabilities held for sale (8) (23)
(7,153) (8,045)
Total liabilities (17,081) (17,911)
Net assets 3,002 1,877
Capital and reserves
Issued share capital 22 87 87
Share premium 1,249 1,249
Other reserves 22 5,277 5,061
Retained earnings - deficit (3,624) (4,555)
Total equity attributable to equity holders of the parent 2,989 1,842
Non-controlling interests 13 35
Total equity 3,002 1,877
Approved by the Board on 17 February 2016 and signed on its behalf by:
I G King P J Lynas
Chief Executive Group Finance Director
Note references used above are references to notes to the Group accounts in
the Annual Report 2015 that can be viewed on the Company's website.
Consolidated cash flow statement
for the year ended 31 December
Notes 2015 2014
£m £m
Profit for the year 943 752
Taxation expense 6 147 130
Research and development expenditure credits (65) -
Share of results of equity accounted investments 1 (110) (83)
Finance costs 5 412 418
Depreciation, amortisation and impairment 2 460 657
Profit on disposal of property, plant and equipment 2,4 (28) (20)
Profit on disposal of investment property 2,4 (41) (12)
Profit on disposal of non-current other investments (1) -
Loss on disposal of businesses 2 24 -
Fair value gain 4 - (47)
Cost of equity-settled employee share schemes 44 42
Movements in provisions (139) (153)
Decrease in liabilities for retirement benefit obligations (234) (345)
(Increase)/decrease in working capital:
Inventories (6) (1)
Trade and other receivables 60 197
Trade and other payables (542) (622)
Cash inflow from operating activities 924 913
Interest paid (180) (152)
Taxation paid (116) (92)
Net cash inflow from operating activities 628 669
Dividends received from equity accounted investments 11 41 63
Interest received 7 7
Purchase of property, plant and equipment, and investment property (359) (263)
Purchase of intangible assets (54) (59)
Proceeds from sale of property, plant and equipment, and investment property 136 539
Proceeds from sale of non-current other investments 1 -
Purchase of subsidiary undertakings 23 (5) (233)
Cash and cash equivalents acquired from purchase of subsidiary undertakings 23 - 3
Equity accounted investment funding 11 (8) (2)
Proceeds from sale of subsidiary undertakings 23 34 -
Cash and cash equivalents disposed of with subsidiary undertakings 23 (13) -
Net cash (outflow)/inflow from investing activities (220) 55
Net sale/(purchase) of own shares 1 (281)
Equity dividends paid 22 (655) (642)
Dividends paid to non-controlling interests (40) (14)
Cash inflow from matured derivative financial instruments 12 8
Cash inflow from movement in cash collateral 3 10
Cash inflow from loans 1,625 679
Cash outflow from repayment of loans (1,135) (398)
Net cash outflow from financing activities (189) (638)
Net increase in cash and cash equivalents 219 86
Cash and cash equivalents at 1 January 2,313 2,222
Effect of foreign exchange rate changes on cash and cash equivalents 5 5
Cash and cash equivalents at 31 December 2,537 2,313
Comprising:
Cash and cash equivalents 16 2,537 2,308
Cash and cash equivalents (included within assets held for sale) - 6
Overdrafts 18 - (1)
Cash and cash equivalents at 31 December 2,537 2,313
Note references used above are references to notes to the Group accounts in
the Annual Report 2015 that can be viewed on the Company's website.
29. Related party transactions
The Group has a related party relationship with its directors and key
management personnel (see below), equity accounted investments (note 11) and
pension schemes (note 20).
Transactions occur with the equity accounted investments in the normal course
of business, are priced on an arm's-length basis and settled on normal trade
terms. The more significant transactions are disclosed below:
Sales to Purchases from related party Amounts owed by related party Amounts owed to related party1 Management recharges1
related party
Related party 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
£m £m £m £m £m £m £m £m £m £m
Advanced Electronics Company Limited 22 9 46 56 - - - - - -
CTA International SAS 15 3 - - 11 2 - - - -
Eurofighter Jagdflugzeug GmbH 1,417 1,087 - 11 37 64 65 77 - -
FADEC International LLC 72 74 - - - - - - - -
Gripen International KB - - - - 19 15 14 14 - -
MBDA SAS 23 22 286 90 6 6 367 403 17 17
Panavia Aircraft GmbH 53 34 47 44 2 5 - - - -
Saudi Development and Training Company Limited (SDT)2 n/a - n/a 8 n/a n/a n/a n/a n/a -
1,602 1,229 379 209 75 92 446 494 17 17
1. Also relates to disclosures under IAS 24, Related Party Disclosures, for
the parent company, BAE Systems plc. At 31 December 2015, £405m (2014 £453m)
was owed by BAE Systems plc and £41m (2014 £41m) by other Group subsidiaries.
2. For the period from 1 January 2014 to 15 September 2014 when the Group
accounted for its share of the results of SDT under the equity method, in
accordance with IAS 28, Investments in Associates and Joint Ventures (revised
2011).
The Group considers key management personnel as defined under IAS 24, Related
Party Disclosures, to be the members of the Group's Executive Committee and
the Company's non-executive directors. Fuller disclosures on directors'
remuneration are set out in the Annual remuneration report on pages 73 to 86.
Total emoluments for directors and key management personnel charged to the
Consolidated income statement were:
2015 2014
£'000 £'000
Short-term employee benefits 14,831 14,383
Post-employment benefits 2,021 1,678
Termination benefits - 1,702
Share-based payments 4,144 3,320
20,996 21,083
Note and page references used above refer to the Annual Report 2015 that can
be viewed on the Company's website.
Cautionary statement: All statements other than statements of historical fact
included in this document, including, without limitation, those regarding the
financial condition, results, operations and businesses of BAE Systems and its
strategy, plans and objectives and the markets and economies in which it
operates, are forward-looking statements. Such forward-looking statements,
which reflect management's assumptions made on the basis of information
available to it at this time, involve known and unknown risks, uncertainties
and other important factors which could cause the actual results, performance
or achievements of BAE Systems or the markets and economies in which BAE
Systems operates to be materially different from future results, performance
or achievements expressed or implied by such forward-looking statements. BAE
Systems plc and its directors accept no liability to third parties in respect
of this report save as would arise under English law. Accordingly, any
liability to a person who has demonstrated reliance on any untrue or
misleading statement or omission shall be determined in accordance with
Schedule 10A of the Financial Services and Markets Act 2000. It should be
noted that Schedule 10A and Section 463 of the Companies Act 2006 contain
limits on the liability of the directors of BAE Systems plc so that their
liability is solely to BAE Systems plc.
This information is provided by RNS
The company news service from the London Stock ExchangeRecent news on BAE Systems
See all newsREG - BAE SYSTEMS PLC - Directorate change
AnnouncementREG - BAE SYSTEMS PLC - Dividend Timetable
AnnouncementREG - BAE SYSTEMS PLC - Transaction in Own Shares
AnnouncementREG - BAE SYSTEMS PLC - Preliminary Results Announcement 2025
AnnouncementREG - BAE SYSTEMS PLC - Director/PDMR Shareholding
Announcement