REG - Compass Group PLC - Final Results <Origin Href="QuoteRef">CPG.L</Origin> - Part 8

CompassAnnouncement

26/11/2014 07:11

- Part 8: For the preceding part double click  ID:nRSZ9967Xg 

Effect of changes in demographic assumptions                                                                                  (23)  38     
 Effect of changes in financial assumptions                                                                                          (122)  (106)  
 Effect of experience adjustments                                                                                                    (3)    (12)   
 Re-measurement of post employment benefit obligations - loss                                                     (148)  (80)        
 Return on plan assets, excluding interest income - gain                                                                 137   119          
 Total recognised in the consolidated statement of comprehensive income                               (11)  39    
                                                                                                                                                                 
 
 
 24 Share capital                                                   
                                                                    
 During the year128,800 options were granted under    
 The Compass Group Share Option Plan 2010. All        
 options were granted over the Company's Ordinary     
 shares and the grant price was equivalent to the     
 market value of the Company's shares at the date of   
 grant. No options were granted under any of the      
 Company's other share option plans.                  
 During the year the Company completed the on market   
 share buyback programme that commenced on 7 January   
 2013 and commenced a further programme.  A total of   
 21,752,881 Ordinary shares of 10 pence each were     
 repurchased for consideration of £200 million and    
 cancelled in the period to 9 July 2014.              
 On 14 May 2014, Compass Group PLC announced a        
 return of cash to shareholders of approximately £1   
 billion by way of a special dividend.  The return    
 of cash was accompanied by a consolidation of the    
 existing Ordinary shares in the ratio of 16 New      
 Ordinary shares for every 17 existing Ordinary       
 shares held.   Following approval of the return of   
 cash to Shareholders on 11 June 2014, 1,366,745,487   
 'C' shares of 0.0001 pence each and 419,413,879 'B'   
 shares of 56 pence each were issued on 8 July 2014   
 following partial capitalisation of the share        
 premium account. On 15 July a dividend of 56 pence   
 per share was declared on the 'C' shares at a cost   
 of £765 million payable on 29 July 2014 and these    
 shares were reclassified as deferred shares.  On     
 the same day the 'B' shares were redeemed for 56     
 pence per share at a cost of £235 million, payable   
 on 29 July 2014.  The deferred shares were redeemed   
 on 15 July.  Following redemption, the 'B' shares    
 and deferred shares were cancelled.  Costs in        
 relation to the return of cash were £2 million.      
 Following conversion of Ordinary shares to New       
 Ordinary shares, the on market share buyback         
 programme was resumed.  During the period to 30      
 September 2014 a total of 8,000,000 New Ordinary     
 shares of 10 5/8 pence each were repurchased for     
 consideration of £78 million and cancelled.  The     
 Company also contracted to repurchase a further      
 200,000 New Ordinary shares of 10 5/8 pence each     
 before 30 September 2014 for consideration of £1.9   
 million which was settled in October 2014.           
                                                                      
 
 
                                                                             2014              2013  
 Allotted share capital                                                      Number of shares        Number of shares                 
                                                              £m             £m                
                                                                                                                                                
                                                                                                                                                
 Allotted and fully paid:                                                                                                                  
 Ordinary shares of 10p each                                                                   -     -                 1,804,035,995  180  
 New Ordinary shares of 10 5/8p each                          1,673,886,784  178                     -                 -              
                                                                                                                                                
 At 30 September                                                             1,673,886,784     178   1,804,035,995     180            
                                                                                                                                           
 At 1 October                                                                                        180                                   186  
 Ordinary and New Ordinary shares allotted during the year                   1                                         -              
 Repurchase of Ordinary and New Ordinary shares                              (3)                                       (6)            
                                                                                                                                                
 At 30 September                                                                               178                     180            
 
 
 25 Share-based payments                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                  
 Share options                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                                                  
 Full details of The Compass Group Share Option Plan 2010 ('CSOP 2010'), the Compass Group Share Option Plan ('CSOP 2000'), the Compass Group Management Share Option Plan ('Management Plan') (collectively the 'Executive and Management Share Option Plans') and the UK Sharesave Plan are set out in prior years' Annual Reports which are available on the Company's website.    
 The consolidation of Compass Group PLC shares that took place during the year had no impact on the number of options outstanding under these plans or on the other terms and conditions that apply to them other than consideration by the Remuneration Committee of the impact on the performance targets that relate to these awards.                                              
                                                                                                                                                                                                                                                                                                                                                                                                    
 
 
 26 Business combinations                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                               
 The Group has completed a number of smaller infill acquisitions in several countries for total consideration of £138 million, of which £107 million was paid in the year.  In addition, the Group paid a further £18 million deferred consideration relating to prior years and increased its investments in associates in the year with a gross spend of £48 million.  
 Acquisition transaction costs expensed in the year to 30 September 2014 were £3 million (2013: £3 million).                                                                                                                                                                                                                                                             
 In the period from acquisition to 30 September 2014 the acquisitions contributed revenue of £76 million and operating profit of £3 million to the Group's results.                                                                                                                                                                                                      
 
If the acquisitions had occurred on 1 October 2013, it is estimated that Group revenue for the period would have been £17,121 million and total Group operating profit (including associates) would have been £1,225 million.                                                                                                                                          
 
 
 27 Reconciliation of operating profit to cash generated by operations                        
                                                                                              
 Reconciliation of operating profit to cash generated by continuing operations  2014   2013   
 £m                                                                             £m     
                                                                                              
 Operating profit from continuing operations                                    1,208  792    
                                                                                              
 Adjustments for:                                                                             
                                                                                              
 Acquisition transaction costs                                                  3      3      
 Amortisation of intangible assets                                              128    118    
 Amortisation of intangible assets arising on acquisition                       25     25     
 Depreciation of property, plant and equipment                                  191    181    
 Profit on disposal of property, plant and equipment/intangible assets          (1)    -      
 Goodwill impairment                                                            -      377    
 Decrease in provisions                                                         (64)   (71)   
 Decrease in post-employment benefit obligations                                (45)   (54)   
 Share-based payments - charged to profits                                      13     12     
                                                                                              
                                                                                              
 Operating cash flows before movement in working capital                        1,458  1,383  
                                                                                              
 (Increase)/decrease in inventories                                             (18)   1      
 (Increase)/decrease in receivables                                             (154)  3      
 Increase in payables                                                           156    98     
                                                                                              
 Cash generated by continuing operations                                        1,442  1,485  
 
 
 28 Reconciliation of net cash flow to movement in net debt                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                              
 This table is presented as additional information to show movement in net debt, defined as overdrafts, bank and other borrowings, finance leases and derivative financial instruments, net of cash and cash equivalents.                 
                                                                                                                                                                                                                                          Gross debt                  
                                                                                                                                                                                                                                                                      Total                    Derivative   Total             
                                                                                                                                                                                                                           Cash and cash  Bank        Bank and other  overdrafts and  Finance  financial    gross    Net      
 Net debt                                                                                                                                                                                                                  equivalents    overdrafts  borrowings      borrowings      leases   instruments  debt     debt     
 £m                                                                                                                                                                                                                        £m             £m          £m              £m              £m       £m           £m       
                                                                                                                                                                                                                                                                                                                              
 At 1 October 2012                                                                                                                                                                                                         728            (58)        (1,699)         (1,757)         (28)     84           (1,701)  (973)    
 Net increase in cash and cash equivalents                                                                                                                                                                                 297            -           -               -               -        -            -        297      
 Cash inflow from issue of bonds                                                                                                                                                                                           -              -           (563)           (563)           -        -            (563)    (563)    
 Cash outflow/(inflow) from other changes in gross debt                                                                                                                                                                    -              40          11              51              -        (42)         9        9        
 Cash outflow from repayment of obligations under finance leases                                                                                                                                                           -              -           -               -               9        -            9        9        
 Increase in net debt as a result of new finance leases taken out                                                                                                                                                          -              -           -               -               (2)      -            (2)      (2)      
 Currency translation (losses)/gains                                                                                                                                                                                       (19)           (2)         (19)            (21)            -        72           51       32       
 Other non-cash movements