REG - Compass Group PLC - Final Results <Origin Href="QuoteRef">CPG.L</Origin> - Part 5

CompassAnnouncement

26/11/2014 07:11

- Part 5: For the preceding part double click  ID:nRSZ9967Xd 

                                                                                                                                                                                                                                 2014       2013   
                                                                                                                                                                                                                                                                                                                                                                                                              Dividends         Dividends       
 Dividends on new ordinary shares of 10 5/8p each                                                                                                                                                                                                                                                                                                                                                             per share         per share       
 pence                                                                                                                                                                                                                                                                                                                                                                                                        £m         pence  £m         
                                                                                                                                                                                                                                                                                                                                                                                                                                                
 Amounts recognised as distributions to equity shareholders during the year:                                                                                                                                                                                                                                                                                                                                                                    
 Final dividend for the prior year                                                                                                                                                                                                                                                                                                                                                                            16.0p      287    14.1p      259  
 Interim dividend for the current year                                                                                                                                                                                                                                                                                                                                                                        8.8p       157    8.0p       145  
 Total dividends                                                                                                                                                                                                                                                                                                                                                                                              24.8p      444    22.1p      404  
                                                                                                                                                                                                                                                                                                                                                                                                                                                
 (1) Based on the number of shares in issue at 30 September 2014 (1,674 million shares).                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                                                                
 In addition, a return of cash of £1 billion was paid to Shareholders in the year by way of a special dividend and is described in more detail in note 24.                                                                                                                                                                                                                                                    
 
 
 10 Goodwill                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                             
 During the year the Group made a number of acquisitions. See note 26 for more details.                                                                                                                                                         
 Goodwill                                                                                                                                                                                                                                             £m     
 Cost                                                                                                                                                                                                                                                        
 At 1 October 2012                                                                                                                                                                                                                                    4,151  
 Additions                                                                                                                                                                                                                                            39     
 Disposals                                                                                                                                                                                                                                            (5)    
 Currency adjustment                                                                                                                                                                                                                                  (77)   
 At 30 September 2013                                                                                                                                                                                                                                 4,108  
 At 1 October 2013                                                                                                                                                                                                                                    4,108  
 Additions                                                                                                                                                                                                                                            39     
 Disposals                                                                                                                                                                                                                                            (13)   
 Currency adjustment                                                                                                                                                                                                                                  (87)   
 At 30 September 2014                                                                                                                                                                                                                                 4,047  
 Impairment                                                                                                                                                                                                                                                  
 At 1 October 2012                                                                                                                                                                                                                                    114    
 Disposals                                                                                                                                                                                                                                            (3)    
 Impairment charge recognised in the year                                                                                                                                                                                                             377    
 At 30 September 2013                                                                                                                                                                                                                                 488    
 At 1 October 2013                                                                                                                                                                                                                                    488    
 Disposals                                                                                                                                                                                                                                            -      
 Currency adjustment                                                                                                                                                                                                                                  (6)    
 At 30 September 2014                                                                                                                                                                                                                                 482    
 Net book value                                                                                                                                                                                                                                              
 At 30 September 2013                                                                                                                                                                                                                                 3,620  
 At 30 September 2014                                                                                                                                                                                                                                 3,565  
                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                             
 Goodwill acquired in a business combination is allocated at acquisition to each cash-generating unit ('CGU') that is expected to benefit from that business combination. A summary of goodwill allocation by business segment is shown below:  
 
 
 10 Goodwill  (continued)                                                                                                  
 Goodwill by business segment                                                                                2014   2013   
                                                                                                         £m  £m     
                                                                                                                           
 USA                                                                                                         1,211  1,202  
 Canada                                                                                                      138    151    
 Total North America                                                                                         1,349  1,353  
 UK                                                                                                          1,433  1,426  
 Japan                                                                                                       127    142    
 Rest of Europe & Japan                                                                                      296    318    
 Total Europe & Japan                                                                                        1,856  1,886  
 Turkey                                                                                                      87     98     
 Rest of Fast Growing & Emerging                                                                             273    283    
 Total                                                                                                       3,565  3,620  
                                                                                                                           
                                                                                                                           
 The Group tests goodwill annually for impairment, or more frequently if there are indications that    
 goodwill might be impaired. The recoverable amount of a CGU is determined from value in use           
 calculations. The key assumptions for these calculations are long-term growth rates and pre-tax       
 discount rates and use cash flow forecasts derived from the most recent financial budgets and         
 forecasts approved by management covering a five-year period.  Budgets and Forecasts are based on     
 expectations of future outcomes taking into account past experience, adjusted for anticipated revenue 
 growth, from both new business and organic growth and taking into consideration external economic     
 factors. Cash flows beyond the five-year period are extrapolated using estimated growth rates based on 
 local expected economic conditions and do not exceed the long-term average growth rate for that       
 country. The pre-tax discount rates are based on the Group's weighted average cost of capital adjusted 
 for specific risks relating to the country in which the CGU operates.                                 
 
 
                                                                                                                                                                                                                                                                                                                                                                      2014            2013          
 Growth and discount rates                                                                                                                                                                                                                                                                                                                                            Residual        Pre-tax       Residual        Pre-tax    
 growth rates                                                                                                                                                                                                                                                                                                                                                         discount rates  growth rates  discount rates  
                                                                                                                                                                                                                                                                                                                                                                                                                               
 USA                                                                                                                                                                                                                                                                                                                                                                  2.5%            8.5%          2.2%            11.4%      
 Rest of North America                                                                                                                                                                                                                                                                                                                                                2.0%            7.9%          2.0%            10.4%      
 UK