REG - Close Bros Grp PLC - Half Yearly Report <Origin Href="QuoteRef">CBRO.L</Origin> - Part 3
10/03/2015 07:12
- Part 3: For the preceding part double click ID:nRSJ9551Gb
Banking Securities Asset Management Group Continuing operations Discontinued Total
operations
£ million £ million £ million £ million £ million £ million £ million
Summary Income Statement for the year ended 31 July 2014
Net interest income/(expense) 352.9 (1.2) (0.3) 0.7 352.1 - 352.1
Non-interest income 93.8 97.3 84.7 - 275.8 31.3 307.1
Operating income 446.7 96.1 84.4 0.7 627.9 31.3 659.2
Administrative expenses (194.7) (68.6) (73.1) (24.4) (360.8) (23.9) (384.7)
Depreciation and amortisation (26.3) (0.9) (1.4) (0.7) (29.3) (0.5) (29.8)
Impairment losses on loans and advances (44.1) - - - (44.1) - (44.1)
Total operating expenses (265.1) (69.5) (74.5) (25.1) (434.2) (24.4) (458.6)
Adjusted operating profit/(loss)1 181.6 26.6 9.9 (24.4) 193.7 6.9 200.6
Amortisation of intangible assets on acquisition (0.5) - (4.4) - (4.9) - (4.9)
Profit on disposal of discontinued operations - - - - - - -
Operating profit/(loss) before tax 181.1 26.6 5.5 (24.4) 188.8 6.9 195.7
Tax (42.0) (5.5) (0.9) 5.2 (43.2) (2.3) (45.5)
Non-controlling interests (0.3) - - (0.1) (0.4) - (0.4)
Profit/(loss) after tax and non-controlling interests 138.8 21.1 4.6 (19.3) 145.2 4.6 149.8
1 Adjusted operating profit/(loss) is stated before amortisation of intangible assets on acquisition, profit on disposal
of discontinued
operations and tax.
Banking Securities Asset Management Group Total
£ million £ million £ million £ million £ million
Summary Balance Sheet at 31 July 2014
Assets
Cash and loans and advances to banks 1,225.1 16.2 17.5 0.4 1,259.2
Settlement balances, long trading positions and loans to money brokers - 634.8 - - 634.8
Loans and advances to customers 5,289.7 - - - 5,289.7
Non-trading debt securities 45.6 - - - 45.6
Intangible assets 61.7 28.1 56.4 0.1 146.3
Other assets 251.6 19.6 34.0 19.6 324.8
Total assets 6,873.7 698.7 107.9 20.1 7,700.4
Liabilities
Settlement balances, short trading positions and loans from money brokers - 522.4 - - 522.4
Deposits by banks 49.6 - - - 49.6
Deposits by customers 4,510.3 3.4 - - 4,513.7
Borrowings 1,229.7 6.0 - 205.3 1,441.0
Other liabilities 145.5 40.8 52.7 17.1 256.1
Intercompany balances 330.6 27.1 18.8 (376.5) -
Total liabilities 6,265.7 599.7 71.5 (154.1) 6,782.8
Equity 608.0 99.0 36.4 174.2 917.6
Total liabilities and equity 6,873.7 698.7 107.9 20.1 7,700.4
3. Tax expense
Six months ended31 January Year ended31 July
2015 2014 2014
£ million £ million £ million
Tax charged/(credited) to the income statement
Current tax:
UK corporation tax 22.0 23.6 48.8
Foreign tax 2.0 0.7 1.2
Adjustments in respect of previous periods - - 0.4
24.0 24.3 50.4
Deferred tax:
Deferred tax credit for the current period (1.8) (3.1) (7.2)
Adjustments in respect of previous periods - (0.1) -
22.2 21.1 43.2
Tax on items not (credited)/charged to the income statement
Current tax relating to:
Share-based transactions tax allowance in excess of expense recognised (2.8) (2.7) (3.0)
Deferred tax relating to:
Cash flow hedging (1.5) 0.6 0.9
Defined benefit pension scheme (1.0) (0.6) (0.3)
Financial instruments classified as available for sale (0.9) 0.3 (0.1)
Share-based transactions tax allowance in excess of expense recognised 0.1 (0.6) 0.8
(6.1) (3.0) (1.7)
The effective tax rate for the period is 20.9% (six months ended 31 January 2014: 23.0%; year ended 31 July 2014: 22.9%),
representing the best estimate of the annual effective tax rate expected for the full year, applied to the operating profit
before tax for the six month period.
The effective tax rate is broadly in line with the UK corporation tax rate for the period of 20.7% (six months ended 31
January 2014: 22.3%; year ended 31 July 2014: 22.3%).
4. Discontinued operations
On 5 January 2015, the group completed the sale of Close Brothers Seydler Bank AG ("Seydler") to Oddo & Cie for a gross
cash consideration of E47.3 million (£36.9 million) subject to finalisation of the closing accounts which is not expected
to have a significant impact on the total consideration. The profit on disposal was £9.9 million.
Based in Frankfurt, Seydler provided equity and debt capital markets services, securities trading and research primarily in
German small and mid-sized companies and was part of the Securities division.
The transaction fulfilled the requirements of IFRS 5 to be classified as "Discontinued operations" in the consolidated
income statement, the results of which are set out below:
Results of discontinued operations
Six months ended31 January Year ended31 July
20151 2014 2014
£ million £ million £ million
Operating income 11.3 15.2 31.3
Operating expenses (9.4) (12.0) (24.4)
Operating profit before tax 1.9 3.2 6.9
Tax (0.6) (1.1) (2.3)
Profit after tax 1.3 2.1 4.6
Profit on disposal of discontinued operations, net of tax 9.9 - -
Profit for the period from discontinued operations 11.2 2.1 4.6
1 Profit after tax is up until the point of disposal.
Cash flow from discontinued operations
Six months ended31 January Year ended31 July
20151 2014 2014
£ million £ million £ million
Net cash flow from operating activities 6.6 (0.7) (9.5)
Net cash flow from investing activities (0.1) - (0.2)
Net cash flow from financing activities - - -
1 Up until the point of disposal.
5. Earnings per share
The calculation of basic earnings per share is based on the profit attributable to shareholders and the number of basic
weighted average shares. When calculating the diluted earnings per share, the weighted average number of shares in issue
is adjusted for the effects of all dilutive share options and awards.
Six months ended Year ended
31 January 31 July
2015 2014 2014
Earnings per share
Continuing operations
Basic 56.9p 47.7p 98.4p
Diluted 56.2p 47.1p 96.9p
Adjusted basic1 58.2p 49.0p 101.0p
Adjusted diluted1 57.5p 48.3p 99.5p
Continuing and discontinued operations
Basic 64.5p 49.2p 101.5p
Diluted 63.7p 48.5p 100.0p
Discontinued operations
Basic 7.6p 1.4p 3.1p
Diluted 7.5p 1.4p 3.1p
1 Excludes amortisation of intangible assets on acquisition, discontinued operations and their tax effects.
Six months ended Year ended
31 January 31 July
2015 2014 2014
£ million £ million £ million
Profit attributable to shareholders 95.3 72.4 149.8
Less profit for the period from discontinued operations, net of tax 11.2 2.1 4.6
Profit attributable to shareholders on continuing operations 84.1 70.3 145.2
Adjustments:
Amortisation of intangible assets on acquisition 2.4 2.4 4.9
Tax effect of adjustments (0.5) (0.5) (1.0)
Adjusted profit attributable to shareholders on continuing operations 86.0 72.2 149.1
Six months ended Year ended
31 January 31 July
2015 2014 2014
million million million
Average number of shares
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