REG - Compass Group PLC - Full year results <Origin Href="QuoteRef">CPG.L</Origin> - Part 3
24/11/2015 07:02
- Part 3: For the preceding part double click ID:nRSX7239Gb
4,277
Retained earnings (2,904) (3,082)
Total equity shareholders' funds 1,937 1,839
Non-controlling interests 13 9
Total equity 1,950 1,848
* Component of current and deferred taxes. ** Component of net debt.
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15.
2 2014 has been restated to reflect a reclassification between other payables and short term borrowings.
Approved by the Board of Directors on 24 November 2015 and signed on their behalf by
RICHARD COUSINS, Director
DOMINIC BLAKEMORE, Director
Compass Group PLC
Consolidated Financial Statements (continued)
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2015
2015 2014 Restated 1
Notes £m £m
CASH FLOW FROM OPERATING ACTIVITIES
Cash generated from operations 26 1,476 1,417
Interest paid (96) (77)
Tax received 19 24
Tax paid (261) (266)
Net cash from operating activities 1,138 1,098
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of subsidiary companies and investments in associated undertakings2 (89) (176)
Proceeds from sale of subsidiary companies and associated undertakings - discontinued activities2 6 - (1)
Proceeds from sale of subsidiary companies and associated undertakings - continuing activities2 3 66
Tax on profits from sale of subsidiary companies and associated undertakings - (4)
Purchase of intangible assets 10 (222) (206)
Purchase of property, plant and equipment3 (282) (261)
Proceeds from sale of property, plant and equipment/intangible assets 28 22
Purchase of other investments 13 (1) (2)
Proceeds from sale of other investments 1 3
Dividends received from joint ventures and associates 27 22
Interest received 3 6
Net cash used in investing activities (532) (531)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issue of ordinary share capital 2 5
Purchase of own shares4 (328) (280)
Receipts from issue of Treasury shares to satisfy employee share scheme awards exercised 1 -
Increase in borrowings5 27 334 671
Repayment of loan notes5 27 (250) (74)
Repayment of obligations under finance leases 27 (5) (5)
Return of Cash to Compass shareholders 8 - (1,000)
Equity dividends paid 8 (457) (444)
Dividends paid to non-controlling interests (6) (3)
Net cash used in financing activities (709) (1,130)
CASH AND CASH EQUIVALENTS
Net decrease in cash and cash equivalents 27 (103) (563)
Cash and cash equivalents at beginning of the year 27 408 987
Currency translation losses on cash and cash equivalents 27 (22) (16)
Cash and cash equivalents at end of the year 27 283 408
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15. 2 Net of cash acquired or disposed and payments received or made under warranties and indemnities. 3 Includes property, plant and equipment purchased under client commitments. 4 Includes stamp duty and brokers' commission.5 2014 re-presented to show gross up of net increase in borrowings.
Compass Group PLC
Consolidated Financial Statements (continued)
RECONCILIATION OF FREE CASH FLOW FROM CONTINUING OPERATIONS
FOR THE YEAR ENDED 30 SEPTEMBER 2015
2015 2014 Restated 1
£m £m
Net cash from operating activities of continuing operations 1,138 1,098
Purchase of intangible assets (222) (206)
Purchase of property, plant and equipment (282) (261)
Proceeds from sale of property, plant and equipment/intangible assets 28 22
Purchase of other investments (1) (2)
Proceeds from sale of other investments 1 3
Dividends received from joint ventures and associates 27 22
Interest received 3 6
Dividends paid to non-controlling interests (6) (3)
Free cash flow from continuing operations 686 679
Add back: Europe & Japan cash restructuring costs in the year 36 58
Underlying free cash flow 722 737
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11.
Compass Group PLC
Consolidated Financial Statements (continued)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2015
The financial information included within this
announcement has been prepared using accounting policies
in accordance with International Financial Reporting
Standards (IFRS) as issued by the International
Accounting Standards Board (IASB) and adopted for use in
the European Union (EU), and in accordance with the
Disclosure and Transparency Rules (DTR) of the Financial
Conduct Authority. The financial information set out
below does not constitute the Company's statutory
accounts for the years ended 30 September 2015 or 2014,
but is derived from those accounts. Statutory accounts
for 2014 have been delivered to the Registrar of
Companies and those for 2015 will be delivered following
the Company's Annual General Meeting. The Auditor has
reported on those accounts; its Reports were
unqualified, did not draw attention to any matters by
way of emphasis without qualifying its Report and did
not contain statements under s498(2) or (3) Companies
Act 2006.
1 SEGMENTAL REPORTING
The management of the Group's operations, excluding Central activities, is organised within three segments: North America, the more developed markets of Europe & Japan and our Fast Growing & Emerging markets. These, together with Central activities, comprise the Group's reportable segments. These segments comprise countries which are at similar stages of development and demonstrate similar economic characteristics. Each segment derives revenue from delivery of food and support services.
Geographical segments
North Europe & Fast Growing
America Japan & Emerging Total
REVENUE 1 £m £m £m £m
YEAR ENDED 30 SEPTEMBER 2015
Combined sales of Group and share of equity accounted joint ventures2,3 9,361 5,469 3,013 17,843
YEAR ENDED 30 SEPTEMBER 2014
Combined sales of Group and share of equity accounted joint ventures2,3 8,199 5,716 3,143 17,058
Sectors
Defence,
Business Healthcare Sports Offshore
REVENUE 1 & Industry Education & Seniors & Leisure & Remote Total
£m £m £m £m £m £m
YEAR ENDED 30 SEPTEMBER 2015
Combined sales of Group and share of equity accounted joint 6,743 3,139 3,847 2,138 1,976 17,843
ventures2
YEAR ENDED 30 SEPTEMBER 2014
Combined sales of Group and share of equity accounted joint 6,783 2,815 3,515 1,857 2,088 17,058
ventures2
1 There is no inter-segmental trading.
2 This is the revenue measure considered by the chief operating
decision maker.3 Continuing underlying revenue from external
customers arising in the UK, the Group's country of domicile,
was £1,912 million (2014: £1,787 million). Continuing
underlying revenue from external customers arising in the US was
£8,557 million (2014: £7,413 million). Continuing underlying
revenue from external customers arising in all foreign countries
from which the Group derives revenue was £15,931 million (2014:
£15,271 million).
Compass Group PLC
Consolidated Financial Statements (continued)
1 SEGMENTAL REPORTING CONTINUED Geographical segments
North Europe & Fast Growing Central
America Japan & Emerging activities Total
RESULT £m £m £m £m £m
YEAR ENDED 30 SEPTEMBER 2015
Underlying operating profit before joint ventures and associates and Emerging Markets and Offshore & Remote restructuring 759 395 193 (66) 1,281
Add: Share of profit of joint ventures 1 2 25 - 28
Underlying operating profit before associates and Emerging Markets and Offshore & Remote restructuring 760 397 218 (66) 1,309
Add: Share of profit of associates 8 5 - - 13
Underlying operating profit before Emerging Markets and Offshore & Remote restructuring 768 402 218 (66) 1,322
Less: Emerging Markets and Offshore & Remote restructuring1 - - (21) (5) (26)
Underlying operating profit2 768 402 197 (71) 1,296
Less: Amortisation of intangibles arising on acquisition (15) (5) (6) - (26)
Less: Acquisition transaction costs (2) - - - (2)
Less: Tax on share of profit of joint ventures - (1) (1) - (2)
Add: Adjustment to contingent consideration on acquisition (5) - - - (5)
Total operating profit - continuing 746 396 190 (71) 1,261
Loss on disposal of US business (1)
Finance income 3
Finance costs (107)
Other financing items 3
Profit before tax 1,159
Income tax expense (282)
Profit for the year from continuing operations 877
Geographical segments
North Europe & Fast Growing Central
America Japan & Emerging activities Total
RESULT £m £m £m £m £m
YEAR ENDED 30 SEPTEMBER 20143
Underlying operating profit before joint ventures and associates 666 406 205 (65) 1,212
Add: Share of profit of joint ventures - 3 21 - 24
Underlying operating profit before associates 666 409 226 (65) 1,236
Add: Share of profit before tax of associates 6 3 - - 9
Underlying operating profit2 672 412 226 (65) 1,245
Less: Amortisation of intangibles arising on acquisition (12) (5) (8) - (25)
Less: Acquisition transaction costs (2) (1) - - (3)
Less: Tax on share of profit of joint ventures - (1) (2) - (3)
Add: Adjustment to contingent consideration on acquisition 1 - (1) - -
Total operating profit - continuing 659 405 215 (65) 1,214
Profit on disposal of US businesses 1
Profit on disposal of interest in associates 13
Finance income 5
Finance costs (91)
Other financings items 2
Profit before tax 1,144
Income tax expense (276)
Profit for the year from continuing operations 868
1 The Group has incurred charges resulting from the restructuring and downturn in the trading conditions of its Emerging Markets and Offshore & Remote activities which include headcount reductions (£17 million) and onerous contract provisions (£9 million).
2 Underlying operating profit is the profit measure considered by the chief operating decision maker.3 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15
Compass Group PLC
Consolidated Financial Statements (continued)
2 OPERATING COSTS
Total Total
OPERATING COSTS2 2015 2014 Restated 1
£m £m
Cost of food and materials:
Cost of inventories consumed 5,219 5,027
Labour costs:
Employee remuneration (note 3) 7,959 7,720
Overheads:
Depreciation - owned property, plant and equipment 190 185
Depreciation -leased property, plant and equipment 3 4
Amortisation - owned intangible assets 147 128
Property lease rentals 74 79
Other occupancy rentals - minimum guaranteed rent 64 62
Other occupancy rentals - rent in excess of minimum guaranteed rent 11 13
Other asset rentals 72 76
Audit and non-audit services 5 6
Emerging Markets and Offshore & Remote restructuring 26 -
Other expenses 2,565 2,342
Operating costs before costs relating to acquisitions 16,335 15,642
Amortisation - intangible
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