REG-Capita PLC: Final Results <Origin Href="QuoteRef">CPI.L</Origin> - Part 4

CapitaAnnouncement

02/03/2017 07:05

- Part 4: For the preceding part double click  ID:nPRr23445c 

Underlying operating margin before impairment of accrued income        11.9   %     13.7   %              Calculation (underlying operating profit plus £39.6m impaired accrued income/underlying revenue)   
 Underlying profit before tax                                         £475.3 m     £585.5 m    (18.8  )%   Line item in income statement                                                                      
 Underlying earnings per share                                         56.67 p      70.73 p    (19.9  )%   Line item in income statement and note 5                                                           

   

 Cash Flow                                                                                                                                                                                                                                                                                                                                  
 Cash generated by operations before non-underlying cash items         £749.5 m    £685.8 m    9.3  %   Line item in cash flow statement                                                                                                                                                                                                    
 Cash conversion (1)                                                      139  %      108  %            Calculation (cash generated from operations before non-underlying cash items/underlying operating profit)                                                                                                                           
 Underlying free cash flow                                      A      £472.4 m    £347.4 m   36.0  %   Line item in note 12                                                                                                                                                                                                                
 Non-underlying payments                                        B       (63.2 )     (43.3 )             Includes non-underlying movement in payables and receivables, Asset Services settlement provision paid, Business exit provision paid, Gwent pension settlement and Restructuring provision paid provision, per Cash Flow statement  
 Free cash flow after non-underlying items                      A+B     409.2       304.1     34.6  %                                                                                                                                                                                                                                       

(1)Cash conversion % calculated using precise number before rounding to one
decimal place

 Gearing                                                          2016            2015   Comment                                                              
 Underlying EBIT                                           £541.3 m        £639.0 m      Line item in income statement                                        
 Deduct: non-controlling interest                          (£13.4 m)       (£11.1 m)                                                                          
 Deduct: acquisition costs                                  (£9.0 m)       (£16.2 m)     Line items in note 3                                                 
 Add back - disposal of non-current assets                      —           (£1.2 m)     Line items in note 12                                                
 Add back - share based payment charge                          —           £11.4 m      Line item in note 12 - note: only charges                            
 Add back: non-current service pension charge                £2.4 m         (£1.9 m)                                                                          
 Adjusted EBIT                                      a      £521.3 m        £620.0 m                                                                           
 Add back: pre-acq underlying profit                         £5.6 m         £34.2 m                                                                           
 Adjusted EBIT                                             £526.9 m        £654.2 m                                                                           
 Depreciation and amortisation                              £99.3 m         £95.3 m      Line items per Cash Flow                                             
 Adjusted EBITDA                                    b      £626.2 m        £749.5 m                                                                           
                                                                                                                                                              
 Underlying interest charge                                (£66.0 m)       (£53.5 m)     Line item in income statement                                        
 Interest cost attributable to pensions                      £6.6 m          £6.4 m      Line item in note 4                                                  
 Borrowing costs                                    c      (£59.4 m)       (£47.1 m)     Calculation (underlying interest charge excluding pension interest)  
                                                                                                                                                              
 Equity attributable to shareholders                d      £408.2 m        £679.3 m      Line item on balance sheet                                           
 15% of equity attributable to shareholders         e       £61.2 m        £101.9 m      Calculation (d x 15%)                                                
 Contingent obligations under bonds and guarantees  f       £91.7 m         £88.1 m                                                                           
                                                    g       £30.5 m             —        If f > e, the difference is treated as debt                          
 Net debt                                           h    £1,778.8 m      £1,838.8 m      Line information in note 12                                          
 Adjusted net debt                                  i    £1,809.3 m      £1,838.8 m      Calculation (g + h)                                                  
                                                                                                                                                              
 Interest cover                                               8.8 x          13.2 x      Calculation (a / c)                                                  
 Adjusted net debt to Adjusted EBITDA ratio                  2.89 x          2.45 x      Calculation (i / b)                                                  

   

 ROCE                                                                    2016          2015   Comment                                                                                                               
 Underlying operating profit                 A                     541.3         639.0        Line item in income statement                                                                                         
 Tax rate                                    B                      18.5    %     18.5    %                                                                                                                         
 Tax                                         C = A x B             100.1         118.2        Calculation (underlying profit multiply tax rate)                                                                     
 Underlying operating profit after tax       D = A - C             441.2         520.8        Calculation (underlying profit less tax)                                                                              
 Current year net assets                     E                     483.4         753.3        Line in balance sheet                                                                                                 
 Current year underlying net debt            F                   1,682.9       1,750.3        Line item in note 12                                                                                                  
 Adjustments to capital employed             G                   1,228.8       1,046.2        Includes post-tax impact of accumulated acquired intangible amortisation, fixed rate swaps, put options and pensions  
 Less acquisition spend in year              H                     (89.5 )      (415.7 )      Consideration paid - cash acquired + debt acquired, per note 10                                                       
 Current year capital employed               I = E + F + G + H   3,305.6       3,134.1                                                                                                                              
 Prior year net assets                       J                                   915.5                                                                                                                              
 Prior year underlying net debt              K                                 1,405.0                                                                                                                              
 Comparative prior year adjustments          L                                   890.8        Includes post-tax impact of accumulated acquired intangible amortisation, fixed rate swaps, put options and pensions  
 Prior year capital employed                 M = J + K + L                     3,211.3                                                                                                                              
 Average capital employed pre-acquisitions   N = (I + M)/2       3,427.7       3,172.7                                                                                                                              
 Weighted average acquisition spend in year  O                      59.7         288.2        Pro rata no of months post-acq profit                                                                                 
 Average capital employed                    P = N + O           3,487.4       3,460.9                                                                                                                              
 ROCE                                        Q = D / P              12.7    %     15.0    %                                                                                                                         



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