REG-Capita PLC: Half-yearly Report <Origin Href="QuoteRef">CPI.L</Origin> - Part 1
29/07/2015 07:00
Half year results for the 6 months to 30 June 2015
Good sales, operational and financial performance
Financial highlights Underlying1 Underlying1,2 YOY change Reported 2015
2015 2014
Revenue £2,283m £2,071m +10 % £2,289m
Operating profit £288.8m £260.2m +11 % £170.1m
Profit before tax £264.9m £238.0m +11 % £146.1m
Earnings per share 32.03p 28.88p +11 % 17.69p
Interim dividend per share 10.5p 9.6p +9 % 10.5p
Highlights
Generating growth: contract wins, bid pipeline and win rate all increased
• £1.6bn of major contract wins (H1 2014: £1.3bn) including milestone contracts
and frameworks in health and science:
- Sole provider on £1bn NHS England Primary Care Support Services framework,
with initial contract valued at up to £400m over 7 to 10 years
- Fera joint venture with 10 year Defra contract, anticipated revenue of £700m
over first 10 years, provides a strong platform for penetration of wider
science market
- Central London Community Health NHS Trust contract, worth £80m over 10 years
- Sheffield City Council extension, worth £140m - £170m over 6 years from
January 2016
• Major contract win rate above 2 in 3
• Bid pipeline £5.4bn (Feb 2015: £5.1bn), swiftly replenished after significant
gains in the first half
• Active period for acquisitions: £279m invested in 11 businesses
• Formation of Capita Europe, following the acquisition of avocis, adds an
exciting new growth platform
• Vertex Mortgage Services acquisition supports our ambition to become the
mortgage processing partner of choice for existing mortgage providers and
challenger banks
• New organisational structure: further alignment of capabilities and sectors
to drive additional growth.
Robust financial results
• Underlying revenue growth1 of 10%, including 3% organic growth3
• Underlying operating margin1 of 12.7% (H1 20142: 12.6%)
• Underlying profit before tax1 up 11% to £265m (H1 20142: £238m)
• Underlying operating cash1 conversion rate of 104% (H1 20142: 112%)
• Underlying free cash flow1 up 6% to £180m (H1 20142: £170m)
• Post tax ROCE1 14.5% (FY 2014: 14.8%).
Andy Parker, Chief Executive of Capita plc, commented:
"Capita has had a productive first half year, announcing significant contract
wins in the health and science sectors and our largest ever acquisition, avocis
in Northern Europe, all of which will contribute substantially to growth going
forward. We continue to expect to deliver low double digit revenue growth in
2015, with a slight increase in organic growth in the second half of the year,
following the delayed start of some new contracts. We expect organic growth to
accelerate in 2016, supported by the conversion of our bid pipeline."
1 Excludes non-underlying items being: intangible amortisation, acquisition
expenses, net contingent consideration movements, specific non-recurring items,
non-cash impact of mark-to-market finance costs and businesses exited
2 H1 2014 includes Occupational Health disposed in H2 2014
3 Excludes the Occupational Health disposal in 2014 and the organic growth within
the non-core health businesses exited in 2015
______________________________________________________________________________________________________
Analyst & investor presentation:
Andy Parker, Chief Executive of Capita plc, will host an analyst presentation
and conference call in London at 8.30am UK time today.
There will be a conference call and live webcast of the full event. Details can
be found at www.capita.co.uk/investors.
Please dial into the call in time to allow for registration
Participant dial-in : +44 (0)20 3059 8125. Password: Capita
Replay: a replay of the conference call will be available for 7 days by
dialling +44 (0)121 260 4861 (access code is 1260849#).
_____________________________________________________________________________________
For further information:
Capita plc Tel: 020 7654 2219
Shona Nichols, Corporate Development &
Communications Director
Andrew Ripper, Head of Investor Relations
Capita Press Office Tel: 020 7654 2152 or
020 7654 2399 out of hours
FTI Consulting Tel: 020 7269 7291
Andrew Lorenz
About Capita
Capita plc is the UK's leading provider of digitally enabled customer and
business process services and integrated professional support services. With
68,000 people at over 400 sites, including 80 business centres across the UK,
Europe, India and South Africa, the Group uses its expertise, infrastructure
and scale benefits to transform its clients' services, driving down costs and
adding value. Capita is quoted on the London Stock Exchange (CPI.L), and is a
constituent of the FTSE 100 with 2014 revenue of £4.4bn. Further information on
Capita plc can be found at: www.capita.co.uk
Results for the 6 months to 30 June 2015
Overview
Capita is today reporting good financial results for the first half of 2015,
underpinned by strong sales and operational performance.
Underlying revenue1 increased by 10% to £2,283m (H1 20142: £2,071m), including
3% organic growth3, net of attrition, and 7% acquisition growth. Underlying
operating profit1 increased by 11% to £288.8m (H1 20142: £260.2m) and
underlying profit before tax1 rose by 11% to £264.9m (H1 20142: £238.0m).
Underlying earnings per share1 rose by 11% to 32.0p (H1 20142: 28.9p) and we
increased our dividend for the half year by 9% to 10.5p per share (H1 2014:
9.6p).
The majority of our divisions performed well in the first half of 2015, with
strong growth particularly in our Asset Services and Digital & Software
Solutions divisions and a pleasing initial contribution from Capita Europe. Our
Workplace Services, Customer Management and Local Government, Health & Property
divisions also delivered good growth.
To date this year, we have secured 10 major contracts with an aggregate value
of £1.6bn (H1 2014: £1.3bn), comprising 76% new business and 24% renewed
contracts and representing a win rate of above 2 in 3 for the Group by value.
These included contracts with Defra, NHS England and Central London Community
Health NHS Trust (CLCH) and we were also approved by NHS England to join the
Lead Provider Framework for Commissioning Support Services, all strategically
significant contract wins and frameworks in the science and health sectors. The
bid pipeline currently stands at £5.4bn (February 2015: £5.1bn), comprised of
30 bids with a weighted average contract length of 8 years, including 97% new
business and 3% renewals and extensions.
We continued to make acquisitions in the first half of 2015 to build capability
in existing markets, enter new markets and enhance our future organic growth
potential. We invested a total of £279m, excluding deferred and contingent
considerations, in acquiring 11 businesses in the period, including avocis,
which provides a key platform for Capita Europe, and Vertex Mortgage Services,
the completion of which is subject to approval by the Financial Conduct
Authority.
Financial update
Revenue - the Group increased underlying revenue1 by 10% to £2,283m1 (H1 20142:
£2,071m), comprising 3% organic growth3, net of attrition, and 7% from
acquisitions. Organic growth was driven by the full benefit from last year's
contract gains, such as the Defence Infrastructure Organisation (DIO) and
Transport for London Congestion Charging, and good underlying performances from
our Asset Services and Workplace Services divisions. As expected, revenue
declined in the Insurance & Benefits Services division as a result of planned
contract step downs which will end this year.
Operating profit - underlying operating profit1 increased by 11% to £288.8m1
(H1 20142: £260.2m). There were strong performances from Asset Services and
Digital & Software Solutions divisions, the latter supported by acquisitions,
and we were also pleased with the initial contribution from Capita Europe.
Workplace Services, Customer Management, Local Government, Health & Property
and IT Enterprise Services divisions all delivered good growth. Profits
declined in the Insurance & Benefits Services division, as a result of the
contract step downs, and the Integrated Services division, due to the residual
impact of the Disclosure and Barring Service contract, which ended in March
2014.
Operating margin - underlying operating margin1 was 12.7% (H1 20142: 12.6%). We
are confident that underlying Group operating margins will continue to be
maintained in the range of 12.5% to 13.5% for the foreseeable future.
Profit before tax - underlying profit before tax1 increased by 11% to £264.9m
(H1 20142: £238.0m). The underlying net interest charge4 was £24m (H1 2014: £
22m).
Earnings per share - underlying earnings per share1 rose by 11% to 32.0p (H1
20142: 28.9p), after non-controlling interests of £4m (H1 2014: £4m). Our
underlying tax rate was 18.5% (H1 2014: 18.5%).
Dividend - the Board has declared an interim dividend of 10.5p per ordinary
share (H1 2014: 9.6p), representing an increase of 9%. The interim dividend
will be payable on 30 November 2015 to shareholders on the register at the
close of business on 23 October 2015.
Cash flow - cash generated by underlying operations1 was £300m (H1 20142: £
291m), representing an underlying operating profit1 to cash conversion ratio of
104% (H1 20142: 112%). We continue to target a strong medium to long term
annual cash conversion ratio at or around 100%. Underlying free cash flow1 was
up 6% to £180m (H1 20142: £170m), supported by tight control of our capital
expenditure which was 2.5% of revenue in the first half. There are currently no
indications of significant capex increases in our business forecasts or bid
pipeline.
Return on capital employed - our post-tax return on average capital employed1
(ROCE) was 14.5% (FY 20142: 14.8%), based upon the 12 month rolling position
from our last reporting date to 30 June. There was a 37bps drag from the end of
the Disclosure & Barring contract, the last of the planned contract step downs
in the Insurance & Benefits division and exited activities. Our ROCE compares
favourably to our estimated post-tax weighted average cost of capital (WACC) of
7.2%.
Debt profile - As at 30 June 2015, net debt was £1,685m (H1 2014: £1,424m).
Following issuance of $293.5m and £97m private placement notes in H1 2015, we
have a total of £1,401m outstanding private placement bond debt, of which £97m
matures in September 2015, £141m in 2016 and the remainder at various
maturities to 2027. In addition, we have £300m of long term bank loans, of
which £200m is repayable in January 2017 and the remainder in 2019, and a £600m
revolving credit facility maturing in August 2020, which was unutilised and
fully available at 30 June 2015.
At 30 June 2015, our annualised net debt to EBITDA1 ratio was 2.4 (H1 20142:
2.3) with annualised interest cover1 at 14 times (H1 2014: 13 times). We expect
to keep the ratio of net debt to EBITDA in the range of 2 to 2.5 over the long
term and we would be unlikely to incur borrowings which would reduce underlying
interest cover below 7 times.
Our organisational structure
To further align ourselves and match relevant management expertise with clients
and the markets in which we operate as we continue to grow, we have made a
number of changes to our organisational structure. The key changes are the
formation of three divisions: Capita Europe; Digital & Software Solutions,
which brings together our software, digital, IT assurance and document services
businesses for the first time; and Local Government, Health & Property. We have
also re-formed our Integrated Services division, which is comprised of our
large central government contracts. All our businesses are now managed in nine
market facing or service specific divisions, as reflected by the segmental
reporting in these results.
Sales and business development review
Our major sales team focuses upon value enhancing transformational outsourcing
and partnering solutions, where Capita has sustainable competitive advantage
and can leverage its unique blend of services and commercial skills. We have
made a good start to the year, securing 10 contracts with an aggregate value of
£1.6bn in the first 6 months, comprising 76% new business and 24% renewed
contracts and representing a win rate of above 2 in 3 for the Group by value.
Major contracts and frameworks announced to date in 2015
Health
• NHS England Primary Care Support Services (PCSS) - selected by NHS England as
preferred bidder to establish a single provider framework for administrative
support functions for primary care across the UK, which has a maximum total
value of £1bn. Under the framework, Capita will secure an initial contract to
deliver administrative support services for primary care in England, which is
anticipated to be valued at up to circa £400m over 7 to 10 years, whilst
achieving significant savings for NHS England.
• Central London Community Healthcare NHS Trust (CLCH) - signed a contract with
CLCH to form a strategic partnership to deliver corporate services including
ICT, HR (payroll and recruitment), estates and facilities management, followed
by the planned delivery of finance services. The contract is expected to be
worth £80m over 10 years, whilst delivering significant budget savings to CLCH.
• NHS England Support Services Framework - approved by NHS England to join the
Lead Provider Framework for Commissioning Support Services. Clinical
Commissioning Groups (CCGs) will be required to re-procure many of their
support services by April 2016 in order to comply with EU procurement law. NHS
England anticipates that between £3-5bn of administration support services will
be procured through the framework.
Science
• Fera JV and Defra contract - appointed by the Department for Environment,
Food & Rural Affairs (Defra) to form a joint venture to operate the Food and
Environment Research Agency (Fera), which is expected to achieve £700m revenue
over its first 10 years including a service agreement with Defra and the Health
& Safety Executive. Fera provides scientific services to government and
commercial customers across the food and agriculture supply chains in the UK
and overseas. The formation of the Fera JV, transfer of staff and introduction
and implementation of Capita financial and administration systems have all been
achieved smoothly and swiftly. Alongside this activity, we have met all key
performance indicators in the delivery of services back to Defra under the
long-term service agreement and have already generated increased interest from
existing and new commercial clients.
Other major contracts and update
• Sheffield City Council - extended our existing service delivery contract with
Sheffield City Council by 6 years, worth £140m - £170m from January 2016.
Capita will continue to deliver the core range of services on behalf of the
Council, including ICT, revenues, benefits, HR and payroll and financial
business transactions. Capita will also provide additional business change
capacity where it will work in partnership with the Council to define and
deliver projects designed to raise revenue and generate additional savings over
the life of the extended contract.
• We have secured £240m of other contracts, including the extension and renewal
of relationships with British Gas, the Home Office and Marks & Spencer.
• Following exchange of contracts, we expect to commence our mortgage servicing
contract with The Co-operative Bank on 1 August 2015, some 6 months later than
originally anticipated.
Bid pipeline
Our bid pipeline shows the total contract value of our major sales bids at a
specific point in time, which we disclose 3 times a year. It contains all bids
with total contracted revenue worth between £25m and a capped ceiling of £1bn,
where we have been short-listed to the last 4 or fewer. The bid pipeline
currently stands at £5.4bn (February 2015: £5.1bn), comprised of 30 bids with a
weighted average contract length of 8 years, including 97% new business and 3%
renewals and extensions. The bid pipeline contains 2 new opportunities in
Europe which we have originated since the acquisition of avocis.
The Group is increasing its emphasis on technology enabled business process
services and targeting more growth and asset based bid opportunities. We are
seeing good activity in both the private sector (61% of the pipeline),
particularly in telecoms and financial services, and the public sector (39% of
the pipeline), which accounted for the bulk of our contract gains in the first
half. We have no material contracts, defined as having forecast annual revenue
in excess of 1% of 2014 revenue, up for rebid until 2019.
Generating future organic growth through acquisitions
We make acquisitions to build capability in existing markets, enter new markets
and enhance our future organic growth potential, largely focusing upon small to
medium sized businesses. We aim to drive value creation for shareholders
through our acquisition strategy and seek to achieve a 15% post tax ROCE after
integration into the Group.
In the first half of 2015 we invested a total of £279m, excluding deferred and
contingent considerations, in acquiring 11 businesses, including:
Market leading mortgage administration software: we are in the process of
acquiring Vertex Mortgage Services (Vertex MS) for £35m on a cash/debt free
basis, the completion of which is subject to approval by the Financial Conduct
Authority. Coupling Vertex MS's specialist mortgage administration software
with Capita's experience in business process and customer service
transformation will position us uniquely to deliver real value in the mortgage
market. The acquisition supports our ambition to become the mortgage processing
partner of choice for existing mortgage providers and challenger banks.
avocis adds scale and exciting new growth platform in Europe: in February we
acquired avocis, a leading provider of customer contact management services in
Germany, Switzerland and Austria, for €210m (£157m) on a cash/debt free basis.
avocis has a strong position in the German speaking regions of Europe serving
similar sectors to Capita's UK-based customer management business, with high
quality, long term clients particularly in telecoms, e-commerce and utilities.
Subsequently, we formed Capita Europe, a new division comprised of avocis, our
existing near-shore operation in Poland, tricontes and Scholand & Beiling
(acquired January 2015). We are very encouraged by the development of this
pipeline of new work, with significant opportunities to grow through both
expanding existing relationships and the addition of new clients, with whom a
number of discussions have commenced.
Commercialising government assets: in January we acquired Constructionline, an
on-line supplier pre-qualification service which was previously operated as a
concession by Capita, for a cash consideration of £35m. Ownership will enable
us to be more commercial, driving growth through increasing market penetration,
adding higher value services and expanding into other sectors.
Expanding enterprise wireless networking in IT Services: in May we acquired
Pervasive, a fast growing IT reseller specialising in enterprise wireless
networking and the leading EMEA partner for Aruba, the wireless networking
provider owned by HP. This acquisition complements our existing reseller
capability and positions us with a broader spectrum of services to support our
clients.
Adding value in recruitment and enhancing our HR software: in March we acquired
ThirtyThree, an employer branding and marketing agency, which enhances our
managed services recruitment offering within the Workplace Services division.
In May we also acquired Isys, a software business which provides time and
attendance, HR, workforce scheduling, screening and identity verification
solutions.
Group Board
On 30 June 2015 we announced that Carolyn Fairbairn, Non-Executive Director of
Capita plc, will be standing down from her position at Capita prior to taking
up her new appointment as Director General of the CBI. The Board thanks Carolyn
for her valued contribution to Capita, which drew on her broad commercial
experience and business acumen, and wish her well in her new role with the CBI.
We are currently undertaking a recruitment process to select her successor.
Future prospects
Our good operational, sales and financial performance in the first half
positions us well and we continue to expect to deliver low double digit revenue
growth in 2015, with a slight increase in organic growth in the second half of
the year, following the delayed start of some new contracts. We expect organic
growth to accelerate in 2016, supported by the conversion of our bid pipeline.
Capita operates in a large addressable market with scope to increase
penetration due to our own competitive advantages and a number of structural
factors such as fiscal pressure, digitisation, regulation and changing
demographics. With good growth in our existing markets, an increasing footprint
in health and new platforms in science and Northern Europe, we are well placed
to deliver a combination of sustainable growth, high levels of cash flow and
strong return on capital over the medium term.
1 Excludes non-underlying items being: intangible amortisation, acquisition
expenses, net contingent consideration movements, specific non-recurring items,
non-cash impact of mark-to-market finance costs and businesses exited
2 H1 2014 includes Occupational Health disposed in H2 2014
3 Excludes the Occupational Health disposal in 2014 and the organic growth within
the non-core health businesses exited in 2015
4 Before the impact of the movement in valuation of mark to market financial
instruments
Half year condensed consolidated income statement for the 6 months ended 30
June 2015
Notes 30 June 2015 30 June 2014
Underlying Businesses Other Total Underlying Non-underlying Total
exited non-underlying
£m £m £m £m £m £m £m
Continuing
operations:
Revenue 3 2,282.7 6.2 - 2,288.9 2,071.0 - 2,071.0
Cost of sales (1,641.9 ) (9.1 ) - (1,651.0 ) (1,491.6 ) - (1,491.6 )
Gross profit 640.8 (2.9 ) - 637.9 579.4 - 579.4
Administrative 4,5 (352.0 ) (13.0 ) (102.8 ) (467.8 ) (319.2 ) (77.8 ) (397.0 )
expenses
Operating profit 4,5 288.8 (15.9 ) (102.8 ) 170.1 260.2 (77.8 ) 182.4
Net finance costs 6 (23.9 ) - 1.6 (22.3 ) (22.2 ) (7.9 ) (30.1 )
Loss on disposal 4 - (1.7 ) - (1.7 ) - - -
Profit before tax 264.9 (17.6 ) (101.2 ) 146.1 238.0 (85.7 ) 152.3
Income tax expense (49.0 ) 2.7 18.9 (27.4 ) (44.0 ) 16.4 (27.6 )
Profit for the 215.9 (14.9 ) (82.3 ) 118.7 194.0 (69.3 ) 124.7
period
Attributable to:
Owners of the 211.9 (14.9 ) (80.0 ) 117.0 190.1 (67.7 ) 122.4
Company
Non-controlling 4.0 - (2.3 ) 1.7 3.9 (1.6 ) 2.3
interests
215.9 (14.9 ) (82.3 ) 118.7 194.0 (69.3 ) 124.7
Earnings per share 7
- basic 32.03 p (2.25) p (12.09) p 17.69 p 28.88 p (10.28) p 18.60 p
- diluted 31.86 p (2.24) p (12.03) p 17.59 p 28.62 p (10.19) p 18.43 p
Half year condensed consolidated statement of comprehensive income for the 6
months ended 30 June 2015
30 June 30 June
2015 2014
£m £m £m £m
Profit for the period 118.7 124.7
Other comprehensive expense
Items that will not be reclassified subsequently to
profit or loss
Actuarial loss on defined benefit pension schemes (31.3 ) (28.0 )
Deferred tax effect 6.3 5.6
(25.0 ) (22.4 )
Items that will or may be reclassified subsequently
to profit or loss
Exchange differences on translation of foreign (15.9 ) (5.2 )
operations
(Loss)/gain on cash flow hedges (1.0 ) 2.3
Reclassification adjustments for losses included in 1.4 2.8
the income statement
Income tax effect (0.1 ) (1.0 )
0.3 4.1
(15.6 ) (1.1 )
Other comprehensive expense for the period net of (40.6 ) (23.5 )
tax
Total comprehensive income for the period net of 78.1 101.2
tax
Attributable to:
Owners of the Company 76.4 98.9
Non-controlling interests 1.7 2.3
78.1 101.2
Half year condensed consolidated balance sheet at 30 June 2015
30 June 31 December
2015 2014
£m £m
Non-current assets
Property, plant and equipment 450.0 448.8
Intangible assets 2,839.9 2,619.4
Financial assets 145.6 178.2
Deferred tax asset 7.3 12.5
Trade and other receivables 74.7 73.5
3,517.5 3,332.4
Current assets
Financial assets 30.0 14.7
Funds assets 235.4 118.2
Trade and other receivables 1,101.9 988.1
Cash 458.7 458.9
1,826.0 1,579.9
Total assets 5,343.5 4,912.3
Current liabilities
Trade and other payables 1,165.3 1,128.2
Overdrafts 353.2 429.8
Financial liabilities 318.4 164.8
Funds liabilities 235.4 118.2
Provisions 70.0 69.6
Income tax payable 48.1 42.6
2,190.4 1,953.2
Non-current liabilities
Trade and other payables 44.2 28.3
Financial liabilities 1,951.3 1,780.8
Provisions 61.1 42.0
Employee benefits 230.1 192.5
2,286.7 2,043.6
Total liabilities 4,477.1 3,996.8
Net assets 866.4 915.5
Capital and reserves
Issued share capital 13.8 13.8
Share premium 500.9 499.0
Employee benefit trust and treasury shares (0.3 ) (0.3 )
Capital redemption reserve 1.8 1.8
Foreign currency translation reserve (20.2 ) (4.3 )
Cash flow hedging reserve (14.5 ) (14.8 )
Retained earnings 312.1 354.7
Equity attributable to owners of the Company 793.6 849.9
Non-controlling interests 72.8 65.6
Total equity 866.4 915.5
Included in aggregate financial liabilities is an amount of £1,567.2m (31
December 2014: £1,306.8m) which represents the fair value of the Group's bonds
which should be considered in conjunction with the aggregate value of currency
and interest rate swaps of £166.7m (31 December 2014: £185.4m) included in
financial assets and £0.4m (31 December 2014: £0.6m) included in financial
liabilities. Consequently, this gives an effective liability of £1,400.9m (31
December 2014: £1,122.0m).
Half year condensed consolidated statement of changes in equity for the 6
months ended 30 June 2015
Share Share Employee Capital Retained Foreign Cash Total Non-controlling Total
capital premium benefit redemption earnings currency flow interests equity
trust & reserve translation hedging
treasury reserve reserve
shares
£m £m £m £m £m £m £m £m £m £m
At 1 January 2014 13.8 491.2 (0.4 ) 1.8 350.4 2.0 (24.1 ) 834.7 61.6 896.3
Profit for the period - - - - 122.4 - - 122.4 2.3 124.7
Other comprehensive income/(expense) - - - - (22.4 ) (5.2 ) 4.1 (23.5 ) - (23.5 )
Total comprehensive income/(expense) for the - - - - 100.0 (5.2 ) 4.1 98.9 2.3 101.2
period
Share based payment - - - - 5.8 - - 5.8 - 5.8
Income tax deduction on exercise of share - - - - 2.0 - - 2.0 - 2.0
options
Deferred income tax relating to share based - - - - 1.1 - - 1.1 - 1.1
payments
Fair value movement in put options of - - - - (4.6 ) - - (4.6 ) - (4.6 )
non-controlling interest
Shares issued - 2.9 - - - - - 2.9 - 2.9
Equity dividends paid - - - - (117.2 ) - - (117.2 ) - (117.2 )
At 30 June 2014 13.8 494.1 (0.4 ) 1.8 337.5 (3.2 ) (20.0 ) 823.6 63.9 887.5
At 1 January 2015 13.8 499.0 (0.3 ) 1.8 354.7 (4.3 ) (14.8 ) 849.9 65.6 915.5
Profit for the period - - - - 117.0 - - 117.0 1.7 118.7
Other comprehensive income/(expense) - - - - (25.0 ) (15.9 ) 0.3 (40.6 ) - (40.6 )
Total comprehensive income/(expense) for the - - - - 92.0 (15.9 ) 0.3 76.4 1.7 78.1
period
Share based payment - - - - 5.4 - - 5.4 - 5.4
Investment in non-controlling interest - - - - - - - - 6.7 6.7
Put option of non-controlling interest - - - - (9.8 ) - - (9.8 ) - (9.8 )
acquired
Income tax deduction on exercise of share - - - - 1.4 - - 1.4 - 1.4
options
Deferred income tax relating to share based - - - - 2.3 - - 2.3 - 2.3
payments
Fair value movement in put options of - - - - (4.2 ) - - (4.2 ) - (4.2 )
non-controlling interests
Shares issued - 1.9 - - - - - 1.9 - 1.9
Equity dividends paid - - - - (129.7 ) - - (129.7 ) (1.2 ) (130.9 )
At 30 June 2015 13.8 500.9 (0.3 ) 1.8 312.1 (20.2 ) (14.5 ) 793.6 72.8 866.4
Half year condensed consolidated cash flow statement for the 6 months ended 30
June 2015
30 June 30 June
2015 2014
Notes £m £m
Cash flows from operating activities
Operating profit on continuing activities before interest and 170.1 182.4
taxation
Adjustment for non-cash items:
Depreciation 43.3 39.2
Amortisation of intangible assets (treated as depreciation) 6.3 3.1
Share based payment expense 5.4 5.8
Employee benefits (1.2 ) 0.1
Loss on disposal of property, plant and equipment 0.3 0.7
Adjustment for non-underlying non-cash items:
Accelerated depreciation on business exit 1.0 -
Accelerated amortisation on business exit 2.2 -
Working capital derecognised on business exit 1.3 -
Amortisation of intangible assets recognised on acquisition 80.5 71.1
Contingent consideration 1.3 (2.0 )
Non-underlying provisions expense 20.0 -
Movement in underlying provisions (net) 3.6 (0.2 )
Movement in receivables and payables (36.9 ) (9.3 )
Cash generated from operations before non-underlying cash 297.2 290.9
items
Asset Services settlement provision cash paid 10 (2.0 ) (0.7 )
Business exit provision cash paid 10 (7.0 ) (10.5 )
Cash generated from operations 288.2 279.7
Income tax paid (41.9 ) (42.0 )
Net interest paid (20.7 ) (19.8 )
Net cash inflow from operating activities 225.6 217.9
Cash flows from investing activities
Purchase of property, plant and equipment (41.9 ) (55.9 )
Purchase of intangible assets (15.0 ) (3.1 )
Proceeds from sale of property, plant and equipment 0.2 0.3
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