REG - Computacenter - Final Results 2016 <Origin Href="QuoteRef">CCC.L</Origin> - Part 4
13/03/2017 07:06
- Part 4: For the preceding part double click ID:nRSM2152Zc
2,776 2,765
Tax charge in the consolidated income statement 23,300 23,657
b) Reconciliation of the total tax charge
2016£'000 2015£'000
Accounting profit before income tax 87,073 126,767
At the UK standard rate of corporation tax of 20 per cent (2015: 20.25 per cent) 17,415 25,670
Expenses not deductible for tax purposes 962 1,187
Non-deductible element of share-based payment charge 665 128
Adjustments in respect of current income tax of previous years (519) (599)
Higher tax on overseas earnings 3,106 3,140
Other differences 71 (39)
Effect of changes in tax rate on deferred tax 170 220
Overseas tax not based on earnings 1,152 1,065
Non-chargeable exceptional gain on disposal of subsidiary - (8,529)
Deferred tax not recognised on current year losses 278 1,414
At effective income tax rate of 26.8 per cent (2015: 18.7 per cent) 23,300 23,657
c) Tax losses
Deferred tax assets of £5.9 million (2015: £7.4 million) have been recognised
in respect of losses carried forward.
In addition, at 31 December 2016, there were unused tax losses across the
Group of £150.8 million (2015: £130.9 million) for which no deferred tax asset
has been recognised. Of these losses, £40.4 million (2015: £33.5 million)
arise in Germany and £110.4 million (2015: £93.3 million) arise in France. A
significant proportion of the losses arising in Germany have been generated in
statutory entities that no longer have significant levels of trade. The
remaining unrecognised tax losses relate to other loss-making overseas
subsidiaries.
d) Deferred tax
Deferred income tax at 31 December relates to the following:
Consolidated balance sheet Consolidated income statement and other comprehensive income
2016£'000 2015£'000 2016£'000 2015£'000
Deferred income tax liabilities
Accelerated capital allowances - 1,197 (1,197) (584)
Revaluations of foreign exchange contracts to fair value 559 370 189 370
Amortisation of intangibles 554 661 (117) (315)
Gross deferred income tax liabilities 1,113 2,228
Deferred income tax assets
Relief on share option gains 1,797 2,590 793 (945)
Other temporary differences 3,244 4,348 396 (364)
Revaluations of foreign exchange contracts to fair value 308 176 132 (122)
Losses available for offset against future taxable income 5,960 7,431 2,580 4,725
Gross deferred income tax assets 11,309 14,545
Deferred income tax charge 2,776 2,765
Net deferred income tax assets 10,196 12,317
Disclosed on the consolidated balance sheet
Deferred income tax assets 10,537 12,840
Deferred income tax liabilities (341) (523)
Net deferred income tax assets 10,196 12,317
At 31 December 2016, there was no recognised or unrecognised deferred income
tax liability (2015: £nil) for taxes that would be payable on the unremitted
earnings of the Group's subsidiaries as the Group expects that future
remittances of earnings from its overseas subsidiaries will be covered by the
UK dividend exemption.
e) Impact of rate change
The main rate of UK Corporation will be reduced to 19 per cent from 1 April
2017 and 17 per cent from 1 April 2020, as enacted in the Finance Act 2015.
The deferred tax in these Financial Statements reflects this.
7 Earnings per share
Earnings per share (EPS) amounts are calculated by dividing profit
attributable to ordinary equity holders by the weighted average number of
ordinary shares outstanding during the year (excluding own shares held).
To calculate diluted earnings per share, the weighted average number of
ordinary shares in issue is adjusted to assume conversion of all dilutive
potential shares. Share options granted to employees where the exercise price
is less than the average market price of the Company's ordinary shares during
the year are considered to be dilutive potential shares.
2016£'000 2015£'000
Profit attributable to equity holders of the parent 63,773 103,110
2016£'000 2015£'000
Basic weighted average number of shares (excluding own shares held) 120,540 122,948
Effect of dilution:
Share options 1,344 2,655
Diluted weighted average number of shares 121,884 125,603
2016Pence 2015pence
Basic earnings per share 52.9 83.9
Diluted earnings per share 52.3 82.1
8 Dividends paid and proposed
2016£'000 2015£'000
Declared and paid during the year
Equity dividends on Ordinary Shares:
Second interim dividend for 2015: 15.0 pence (2014: nil pence) 18,106 -
Final dividend for 2015: nil pence (2014: 13.1 pence) - 15,776
Interim dividend for 2016: 7.2 pence (2015: 6.3 pence) 8,696 7,698
26,802 23,474
Proposed (not recognised as a liability as at 31 December)
Equity dividends on Ordinary Shares:
Second interim dividend for 2016: nil pence (2015: 15.0 pence) - 18,399
Final dividend for 2016: 15.0 pence (2015: nil pence) 18,399 -
9 Analysis of changes in net funds
At 1 January2016£'000 Cash flowsin year£'000 Non-cashflow£'000 Exchangedifferences£'000 At 31 December2016£'000
Cash and short-term deposits 111,770 (5,840) - 12,746 118,676
Bank overdraft (90) 90 - - -
Cash and cash equivalents 111,680 (5,750) - 12,746 118,676
Current asset investments 15,000 15,000 - - 30,000
Bank loans (5) (278) - (11) (294)
Net funds excluding CSF 126,675 8,972 - 12,735 148,382
CSF leases (4,373) 1,167 377 (648) (3,477)
Customer-specific other loans (1,514) 1,101 - - (413)
Total CSF (5,887) 2,268 377 (648) (3,890)
Net funds 120,788 11,240 377 12,087 144,492
At 1 January2015£'000 Cash flowsin year£'000 Non-cashflow£'000 Exchangedifferences£'000 At 31 December2015£'000
Cash and short-term deposits 129,865 (16,113) - (1,982) 111,770
Bank overdraft (719) 584 - 45 (90)
Cash and cash equivalents 129,146 (15,529) - (1,937) 111,680
Current asset investments - 15,000 - - 15,000
Bank loans (120) 107 - 8 (5)
Other loans non-CSF (517) 517 - - -
Net funds excluding CSF 128,509 95 - (1,929) 126,675
CSF leases (6,696) 2,193 (175) 305 (4,373)
Customer-specific other loans (2,616) 1,089 - - (1,514)
Total CSF (9,312) 3,282 (175) 305 (5,887)
Net funds 119,197 3,377 (175) (1,624) 120,788
10 Related party transactions
During the year the Group entered into transactions, in the ordinary course of
business, with related parties. Transactions entered into are as described
below:
Biomni provides the Computacenter e-procurement system used by many of
Computacenter's major customers. An annual fee has been agreed on a commercial
basis for use of the software for each installation. Both PJ Ogden and PW
Hulme are Directors of and have a material interest in Biomni Limited.
Triage Services Limited mainly provides IT hardware repair services to many of
Computacenter's customers. MJ Norris is a Director of and has a material
interest in Triage Services Limited.
The table below provides the total amount of transactions that have been
entered into with related parties for the relevant financial year:
Sales to related parties£'000 Purchases from relatedparties£'000 Amounts owed to relatedparties£'000
Biomni Limited 3 817 -
Triage Services Limited - 1,142 55
3 1,959 55
Terms and conditions of transactions with related parties
Sales to and purchases from related parties are made on terms equivalent to
those that prevail in arm's-length transactions. Outstanding balances at the
year-end are unsecured and settlement occurs in cash. There have been no
guarantees provided or received for any related party receivables. The Group
has not recognised any provision for doubtful debts relating to amounts owed
by related parties. This assessment is undertaken each financial year through
examining the financial position of the related party and the market in which
the related party operates.
Compensation of key management personnel (including Directors)
The Board of Directors is identified as the Group's key management personnel.
A summary of the compensation of key management personnel is provided below:
2016£'000 2015£'000
Short-term employee benefits 1,407 2,092
Social security costs 604 374
Share-based payment transactions 1,565 942
Pension costs 19 29
Total compensation paid to key management personnel 3,595 3,437
This information is provided by RNS
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