REG - Compass Group PLC - Interim Results Announcement <Origin Href="QuoteRef">CPG.L</Origin> - Part 3
15/07/2015 17:19
- Part 3: For the preceding part double click ID:nRSM9844Mb
of other comprehensive income - - - - - (5) - (5)
Total other comprehensive income - - - - (80) 23 (1) (58)
Total comprehensive income for the period - - - - (80) 468 1 389
Issue of shares (for cash) - 2 - - - - - 2
Fair value of share-based payments - - - - 7 - - 7
Release of LTIP award settled by issue of new shares - 5 - - (5) - - -
Tax on items taken directly to equity - - - - - 1 - 1
Share buyback2 (2) - 2 - - (200) - (200)
Other changes - - - 1 (2) 2 (1) -
178 407 57 - 4,294 (1,956) 9 2,989
Dividends paid to Compass shareholders (note 7) - - - - - (287) - (287)
Dividends paid to non-controlling interests - - - - - - (2) (2)
At 31 March 2014 178 407 57 - 4,294 (2,243) 7 2,700
1 2013 has been restated for past service cost recognised in accordance with IAS 19 (R).
2 Including stamp duty and brokers' commission.
Share-based payment Merger Revaluation Translation Total other
Other reserves reserve reserve reserve reserve reserves
£m £m £m £m £m
At 1 October 2013 162 4,170 7 35 4,374
Other comprehensive income
Currency translation differences - - - (80) (80)
Total other comprehensive income - - - (80) (80)
Total comprehensive income for the period - - - (80) (80)
Fair value of share-based payments 7 - - - 7
Release of LTIP award settled by issue of new shares (5) - - - (5)
Other changes - - - (2) (2)
At 31 March 2014 164 4,170 7 (47) 4,294
Compass Group PLC
Condensed Financial Statements (continued)
Condensed balance sheet
as at 31 March 2015
As at 31 March
Notes 2015 Unaudited 2014 Restated1 Unaudited Year ended 30 September 2014 Restated1
£m £m £m
Non-current assets
Goodwill 3,600 3,514 3,528
Other intangible assets 1,113 932 1,010
Property, plant and equipment 747 712 724
Interests in joint ventures and associates 210 163 189
Other investments 41 42 36
Trade and other receivables 71 54 70
Deferred tax assets* 247 250 246
Derivative financial instruments** 73 46 50
Non-current assets 6,102 5,713 5,853
Current assets
Inventories 287 256 265
Trade and other receivables 2,151 2,037 2,069
Tax recoverable* 33 40 32
Cash and cash equivalents** 336 672 408
Derivative financial instruments** 14 11 16
Current assets 2,821 3,016 2,790
Total assets 8,923 8,729 8,643
Current liabilities
Short term borrowings** (283) (289) (297)
Derivative financial instruments** (2) (2) (4)
Provisions 8 (143) (162) (161)
Current tax liabilities* (166) (170) (148)
Trade and other payables (3,116) (2,968) (3,095)
Current liabilities (3,710) (3,591) (3,705)
Non-current liabilities
Long term borrowings** (2,752) (1,866) (2,525)
Derivative financial instruments** (41) (4) (1)
Post-employment benefit obligations 9 (141) (153) (170)
Provisions 8 (284) (309) (277)
Deferred tax liabilities* (39) (39) (39)
Trade and other payables (67) (67) (78)
Non-current liabilities (3,324) (2,438) (3,090)
Total liabilities (7,034) (6,029) (6,795)
Net assets 1,889 2,700 1,848
Equity
Share capital 177 178 178
Share premium account 182 407 174
Capital redemption reserve 294 57 293
Less: Own shares - - (1)
Other reserves 4,259 4,294 4,277
Retained earnings (3,033) (2,243) (3,082)
Total equity shareholders' funds 1,879 2,693 1,839
Non-controlling interests 10 7 9
Total equity 1,889 2,700 1,848
* Component of current and deferred taxes. ** Component of net debt.
1 2014 has been restated for joint ventures in accordance with IFRS 11, as detailed in note 16.
Compass Group PLC
Condensed Financial Statements (continued)
Condensed cash flow statement
for the six months ended 31 March 2015
Six months to 31 March
2015 Unaudited 2014 Restated1 Unaudited Year ended 30 September 2014 Restated1
Notes £m £m £m
Cash flow from operating activities
Cash generated from operations 11 694 674 1,417
Interest paid (47) (38) (77)
Tax received 5 15 24
Tax paid (132) (142) (266)
Net cash from operating activities 520 509 1,098
Cash flow from investing activities
Purchase of subsidiary companies and investments in associates2 (58) (76) (176)
Proceeds from sale of subsidiary companies and associates - discontinued activities2 - - (1)
Proceeds from sale of subsidiary companies and associates - continuing activities2 4 - 66
Tax on profits from sale of subsidiary companies and associates - - (4)
Purchase of intangible assets (101) (93) (206)
Purchase of property, plant and equipment3 (130) (121) (261)
Proceeds from sale of property, plant and equipment/intangible assets 11 12 22
Purchase of other investments (1) - (2)
Proceeds from sale of other investments - 2 3
Dividends received from joint ventures and associates 4 6 22
Interest received 2 3 6
Net cash used in investing activities (269) (267) (531)
Cash flow from financing activities
Proceeds from issue of ordinary share capital 2 2 5
Purchase of own shares4 (139) (200) (280)
Net increase/(decrease) in borrowings 12 111 (51) 597
Repayment of obligations under finance leases 12 (3) (2) (5)
Return of cash to Compass shareholders 7 - - (1,000)
Equity dividends paid 7 (295) (287) (444)
Dividends paid to non-controlling interests (3) (2) (3)
Net cash used in financing activities (327) (540) (1,130)
Cash and cash equivalents
Net decrease in cash and cash equivalents 12 (76) (298) (563)
Cash and cash equivalents at beginning of the year 408 987 987
Currency translation gains/(losses) on cash and cash equivalents 4 (17) (16)
Cash and cash equivalents at end of the period 336 672 408
1 2014 has been restated for joint ventures in accordance with IFRS 11, as detailed in note 16.
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.
Compass Group PLC
Condensed Financial Statements (continued)
Reconciliation of free cash flow from continuing operations
for the six months ended 31 March 2015
Six months to 31 March
2015 Unaudited 2014 Restated1 Unaudited Year ended 30 September 2014 Restated1
£m £m £m
Net cash from operating activities of continuing operations 520 509 1,098
Purchase of intangible assets (101) (93) (206)
Purchase of property, plant and equipment (130) (121) (261)
Proceeds from sale of property, plant and equipment/intangible assets 11 12 22
Purchase of other investments (1) - (2)
Proceeds from sale of other investments - 2 3
Dividends received from joint ventures and associates 4 6 22
Interest received 2 3 6
Dividends paid to non-controlling interests (3) (2) (3)
Free cash flow from continuing operations 302 316 679
Add back: Cash restructuring costs in the year 21 21 58
Underlying free cash flow 323 337 737
1 2014 has been restated for joint ventures in accordance with IFRS 11, as detailed in note 16.
Compass Group PLC
Condensed Financial Statements (continued)
Notes to the condensed financial statements
for the six months ended 31 March 2015
1 Basis of preparation
The unaudited condensed financial statements for the six months ended 31 March 2015 have been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' ('IAS 34'), and have been prepared on the basis of International
Financial Reporting Standards ('IFRSs') and International Financial Reporting Interpretations Committee ('IFRIC') interpretations as adopted by the European Union that are effective for the year ending 30 September 2015.
The unaudited condensed financial statements for the six months ended 31 March 2015, which were approved by the Board on 13 May 2015 and the comparative information in relation to the year ended 30 September 2014, do not comprise statutory accounts for
the purpose of Section 434 of the Companies Act 2006, and should be read in conjunction with the Annual Report for the year ended 30 September 2014. Those accounts have been reported upon by the Group's auditor and delivered to the Registrar of Companies.
The report of the auditors was unqualified, did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain statements under Section 498 (2) or (3) of the Companies Act
2006.
The financial statements have been prepared on a going concern basis. This is discussed in the Business Review on page 13.
The accounting policies adopted in the preparation of these unaudited condensed financial statements are consistent with the policies applied by the Group in its consolidated financial statements for the year ended 30 September 2014. The following
accounting standards, interpretations and amendments have been adopted by the Group in the current period:
- IFRS 10 Consolidated financial statements
- IFRS 11 Joint arrangements
- IFRS 12 Disclosure of interests in other entities
- IFRIC 24 Levies
Amendments to the following standards:
- IFRS 10, IFRS 11 and IFRS 12: Transition guidance
- IFRS 10, IFRS 11 and IFRS 12: Investment entities
- IAS 27 Separate financial statements
- IAS 28 Investments in associates and joint ventures
- IAS 32 Financial instruments: Presentation
- IAS 39 Financial instruments: Recognition and measurement
With the exception of IFRS 11, the above new and amended standards do not have a material effect on the Group. The impact of IFRS 11 is detailed in note 16.
In preparing these condensed financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ
from these estimates.
The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 30 September
2014.
2 Seasonality of operations
Overall, seasonality is not a significant factor across the Group. Revenues in the Education sector are lower outside term time and activity in the Business & Industry sector in Europe slows down throughout the summer. However, within individual sectors
and geographies we do see some seasonal effects.
Compass Group PLC
Condensed Financial Statements (continued)
3 Segmental reporting
Geographical segments
North Europe Fast Growing
America & Japan & Emerging Total
Revenues1 £m £m £m £m
Six months ended 31 March 2015
Combined sales of Group and share of equity accounted joint ventures2 4,693 2,805 1,564 9,062
Six months ended 31 March 2014
Combined sales of Group and share of equity accounted joint ventures2 4,151 2,951 1,557 8,659
Year ended 30 September 2014
Combined sales of Group and share of equity accounted joint ventures2 8,199 5,716 3,143 17,058
Products and services: Sectors
Defence,
Business Healthcare Sports Offshore
& Industry Education & Seniors & Leisure & Remote Total
Revenues1 £m £m £m £m £m £m
Six months ended 31 March 2015
Combined sales of Group and share of equity accounted joint ventures2 3,413 1,753 1,900 983 1,013 9,062
Six months ended 31 March 2014
Combined sales of Group and share of equity accounted joint ventures2 3,428 1,558 1,749 880 1,044 8,659
Year ended 30 September 2014
Combined sales of Group and share of equity accounted joint ventures2 6,783 2,815 3,515 1,857 2,088 17,058
1 There is no inter-segmental trading.
2 Continuing revenue from external customers arising in the UK, the Group's country of domicile, was £932 million (six months to 31 March 2014: £883 million, year ended 30 September 2014:
£1,787 million). Continuing revenue from external customers arising in the US was £4,265 million (six months to 31 March 2014: £3,745 million, year ended 30 September 2014: £7,413 million). Continuing revenue from external customers arising in all foreign countries from which the Group derives revenue was £8,130 million (six months to 31 March 2014: £7,776 million, year ended 30 September 2014: £15,271 million).
Geographical segments
North Europe Fast Growing Central
America & Japan & Emerging activities Total
Result £m £m £m £m £m
Six months ended 31 March 2015
Underlying operating profit before joint ventures and associates, exceptional items and costs relating to acquisitions 398 204 97 (32) 667
Add: Share of profit of joint ventures - 1 12 - 13
Add: Share of profit of associates 4 4 - - 8
Underlying operating profit before costs relating to acquisitions and tax on share of profit of joint ventures 1 402 209 109 (32) 688
Less: Amortisation of intangibles arising on acquisition (7) (3) (3) - (13)
Less: Acquisition transaction costs (1) - - - (1)
Less: Tax on share of profit of joint venture - - (1) - (1)
Add: Adjustment to contingent consideration on acquisition 1 - - - 1
Total operating profit - continuing 395 206 105 (32) 674
Loss on disposal of US business (1)
Finance income 2
Finance costs (53)
Hedge accounting ineffectiveness (1)
Profit before tax 621
1 Underlying operating profit before costs relating to acquisitions and tax on share of profit of joint ventures is the profit measure considered by the chief operating decision maker.
Compass Group PLC
Condensed Financial Statements (continued)
3 Segmental reporting (continued)
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