REG-FirstGroup PLC: Final Results <Origin Href="QuoteRef">FGP.L</Origin> - Part 3
14/06/2016 07:05
- Part 3: For the preceding part double click ID:nPRrEDB3Eb
1,212.0 1,207.6
The adjusted EPS is intended to highlight the recurring results of the Group
before amortisation charges, ineffectiveness on financial derivatives and
certain other adjustments as set out in note 4. A reconciliation is set out
below:
2016 2015
£m EPS (p) £m EPS (p)
Basic profit/EPS 90.3 7.5 75.2 6.2
Other intangible asset amortisation charges (note 9) 51.9 4.4 54.3 4.5
Ineffectiveness on financial derivatives 0.4 – 0.3 –
Other adjustments (note 4) 2.5 0.2 3.5 0.3
Tax effect of above adjustments (21.6) (1.8) (15.8) (1.2)
Adjusted profit/EPS 123.5 10.3 117.5 9.8
Diluted EPS 2016 2015 pence
pence
Diluted EPS 7.5 6.2
Adjusted Diluted EPS 10.2 9.7
8 Goodwill
2016 2015 £m
£m
Cost
At 1 April 1,663.2 1,513.5
Additions – 1.7
Foreign exchange movements 77.1 148.0
At 31 March 1,740.3 1,663.2
Accumulated impairment losses
At 1 April and 31 March 4.0 4.0
Carrying amount
At 31 March 1,736.3 1,659.2
The calculation of value in use for each CGU is most sensitive to the
principal assumptions of discount rate, growth rates and margins achievable.
Sensitivity analysis has been performed on the calculations and confirms that
no reasonably possible changes in the assumptions would cause the carrying
amount of the CGUs to exceed their recoverable amount in respect of the First
Transit, Greyhound, First Bus and First Rail divisions.
The value in use of the First Student division exceeds its carrying amount by
£232.3m (2015: £300.9m). The sensitivity analysis indicates that the First
Student margin would need to fall in excess of 87 basis points compared to
medium term expectations or long term growth rates would need to fall in
excess of 66 basis points for there to be an impairment to the carrying value
of net assets in this business. An increase in the discount rate in excess of
59 basis points would lead to the value in use of the division being less than
its carrying amount.
9 Other intangible assets
Customer contracts £m Greyhound brand and trade name £m Rail franchise agreements £m Software £m Total £m
Cost
At 1 April 2014 362.2 58.1 36.1 – 456.4
Acquisitions 15.8 – – – 15.8
Additions 0.3 – – – 0.3
Foreign exchange movements 36.5 5.2 – – 41.7
At 31 March 2015 414.8 63.3 36.1 – 514.2
Additions – – – 11.6 11.6
Cessation of franchise – – (30.6) – (30.6)
Foreign exchange movements 19.0 2.7 – – 21.7
At 31 March 2016 433.8 66.0 5.5 11.6 516.9
Amortisation
At 1 April 2014 194.5 19.2 24.8 – 238.5
Charge for year 43.3 2.9 8.1 – 54.3
Foreign exchange movements 22.5 1.9 – – 24.4
At 31 March 2015 260.3 24.0 32.9 – 317.2
Charge for year 45.6 3.1 3.2 – 51.9
Cessation of franchise – – (30.6) – (30.6)
Foreign exchange movements 15.0 1.2 – – 16.2
At 31 March 2016 320.9 28.3 5.5 – 354.7
Carrying amount
At 31 March 2016 112.9 37.7 – 11.6 162.2
At 31 March 2015 154.5 39.3 3.2 – 197.0
10 Property, plant and equipment
Land and buildings £m Passenger carrying vehicle fleet £m Other plant and equipment £m Total £m
Cost
At 1 April 2014 451.9 2,656.3 825.4 3,933.6
Additions in the year 32.0 281.8 102.1 415.9
Acquisitions – 7.8 – 7.8
Disposals (7.4) (99.3) (100.2) (206.9)
Impairment – – (8.7) (8.7)
Reclassified as held for sale – (64.4) – (64.4)
Foreign exchange movements 20.6 196.0 23.8 240.4
At 31 March 2015 497.1 2,978.2 842.4 4,317.7
Additions in the year 16.7 285.3 98.4 400.4
Disposals (41.3) (96.5) (281.2) (419.0)
Reclassified as held for sale (1.8) (100.4) – (102.2)
Foreign exchange movements 12.3 117.3 14.6 144.2
At 31 March 2016 483.0 3,183.9 674.2 4,341.1
Accumulated depreciation and impairment
At 1 April 2014 89.4 1,346.9 632.4 2,068.7
Charge for year 12.2 216.1 125.0 353.3
Disposals (1.1) (88.0) (98.6) (187.7)
Reclassified as held for sale – (63.0) – (63.0)
Foreign exchange movements 3.7 98.7 16.9 119.3
At 31 March 2015 104.2 1,510.7 675.7 2,290.6
Charge for year 9.3 225.8 90.6 325.7
Disposals (33.7) (87.2) (274.9) (395.8)
Reclassified as held for sale (0.2) (98.5) – (98.7)
Foreign exchange movements 2.6 64.0 10.5 77.1
At 31 March 2016 82.2 1,614.8 501.9 2,198.9
Carrying amount
At 31 March 2016 400.8 1,569.1 172.3 2,142.2
At 31 March 2015 392.9 1,467.5 166.7 2,027.1
11 Inventories
2016 2015 £m
£m
Spare parts and consumables 61.4 69.8
Property development work in progress – 0.1
61.4 69.9
12 Trade and other receivables
Amounts due within one year 2016 2015 £m
£m
Trade receivables 381.2 355.3
Provision for doubtful receivables (4.3) (2.3)
Other receivables 72.7 66.3
Other prepayments 88.2 126.1
Accrued income 156.6 171.2
694.4 716.6
13 Trade and other payables
Amounts falling due within one year 2016 2015 £m
£m
Trade payables 242.6 248.3
Other payables 239.6 225.9
Accruals 554.3 572.1
Deferred income 39.4 59.3
Season ticket deferred income 26.0 33.4
1,101.9 1,139.0
14 Financial liabilities – borrowings
2016 2015 £m
£m
On demand or within 1 year
Finance leases (note 15) 73.9 77.0
Senior unsecured loan notes 35.4 –
Bond 8.125% (repayable 2018) 1 12.9 12.9
Bond 6.125% (repayable 2019) 1 3.0 3.0
Bond 8.75% (repayable 2021) 1 30.2 30.1
Bond 5.25% (repayable 2022) 1 5.8 5.8
Bond 6.875% (repayable 2024) 1 7.2 7.2
Total current liabilities 168.4 136.0
Within 1 – 2 years
Finance leases (note 15) 58.3 69.4
Loan notes (note 16) 9.7 9.7
Senior unsecured loan notes 70.5 33.5
138.5 112.6
Within 2 – 5 years
Finance leases (note 15) 106.1 140.3
Bond 8.125% (repayable 2018) 298.3 297.8
Bond 6.125% (repayable 2019) 279.0 286.3
Senior unsecured loan notes – 67.1
683.4 791.5
Over 5 years
Finance leases (note 15) – 15.5
Bond 8.75% (repayable 2021) 370.1 366.6
Bond 5.25% (repayable 2022) 320.5 320.0
Bond 6.875% (repayable 2024) 199.6 199.5
890.2 901.6
Total non-current liabilities at amortised cost 1,712.1 1,805.7
1 Relates to accrued interest.
15 HP contracts and finance leases
The Group had the following obligations under HP contracts and finance leases
as at the balance sheet dates:
2016 Minimum payments 2016 Present value of payments 2015 Minimum payments £m 2015 Present value of payments £m
£m £m
Due in less than one year 75.9 73.9 79.2 77.0
Due in more than one year but not more than two years 61.5 58.3 73.3 69.4
Due in more than two years but not more than five years 116.8 106.1 157.1 140.3
Due in more than five years – – 18.7 15.5
254.2 238.3 328.3 302.2
Less future financing charges (15.9) – (26.1) –
238.3 238.3 302.2 302.2
16 Loan notes
The Group had the following loan notes issued as at the balance sheet dates:
2016 2015 £m
£m
Due in more than one year but not more than two years 9.7 9.7
17 Derivative financial instruments
2016 2015 £m
£m
Total derivatives
Total non-current assets 41.5 45.3
Total current assets 16.7 15.5
Total assets 58.2 60.8
Total current liabilities 68.1 74.5
Total non-current liabilities 35.5 22.6
Total liabilities 103.6 97.1
Derivatives designated and effective as hedging instruments carried at fair value
Non-current assets
Coupon swaps (fair value hedge) 41.3 45.3
Fuel derivatives (cash flow hedge) 0.2 –
41.5 45.3
Current assets
Coupon swaps (fair value hedge) 16.4 15.5
Fuel derivatives (cash flow hedge) 0.3 –
16.7 15.5
Current liabilities
Fuel derivatives (cash flow hedge) 66.9 66.9
66.9 66.9
Non-current liabilities
Fuel derivatives (cash flow hedge) 35.5 21.4
35.5 21.4
Derivatives classified as held for trading
Current assets
Current liabilities
Interest rate swaps 1.2 7.6
Non-current liabilities
Interest rate swaps – 1.2
18 Deferred tax
The major deferred tax liabilities/(assets) recognised by the Group and
movements thereon during the current and prior reporting periods
are as follows:
Accelerated tax depreciation £m Retirement benefit schemes £m Other temporary differences £m Tax losses £m Total £m
At 1 April 2014 136.4 (72.2) 115.8 (178.8) 1.2
(Credit)/charge to income 13.9 3.5 (18.9) 4.1 2.6
Charge/(credit) to other comprehensive income – 6.7 (26.6) – (19.9)
Charge direct to equity – – 0.1 – 0.1
Acquisition of business/subsidiary – – (0.9) – (0.9)
Foreign exchange movements 12.4 (5.4) 11.1 (21.0) (2.9)
At 31 March 2015 162.7 (67.4) 80.6 (195.7) (19.8)
(Credit)/charge to income 4.7 8.1 (10.7) (6.1) (4.0)
Credit to other comprehensive income – (16.1) (0.6) – (16.7)
Foreign exchange and other movements 6.8 (2.9) 1.4 (10.5) (5.2)
At 31 March 2016 174.2 (78.3) 70.7 (212.3) (45.7)
Certain deferred tax assets and liabilities have been offset. The following
is the analysis of the deferred tax balances for financial reporting purposes:
2016 2015 £m
£m
Deferred tax assets (62.7) (60.5)
Deferred tax liabilities 17.0 40.7
(45.7) (19.8)
19 Provisions
2016 2015 £m
£m
Insurance claims 219.9 205.5
Legal and other 39.6 28.1
Pensions 2.8 3.1
Non-current liabilities 262.3 236.7
Insurance claims £m Legal and other £m Pensions £m Total £m
At 1 April 2015 316.2 49.4 3.1 368.7
Charged to the income statement 172.9 11.7 – 184.6
Transfer from accruals – 8.3 – 8.3
Utilised in the year (153.6) (30.6) (0.3) (184.5)
Notional interest 14.7 – – 14.7
Foreign exchange movements 13.6 5.2 – 18.8
At 31 March 2016 363.8 44.0 2.8 410.6
Current liabilities 143.9 4.4 – 148.3
Non-current liabilities 219.9 39.6 2.8 262.3
At 31 March 2016 363.8 44.0 2.8 410.6
Current liabilities 110.7 21.3 – 132.0
Non-current liabilities 205.5 28.1 3.1 236.7
At 31 March 2015 316.2 49.4 3.1 368.7
The current liabilities above are included within accruals in note 13.
20 Called up share capital
2016 2015 £m
£m
Allotted, called up and fully paid
1,204.9m ordinary shares of 5p each 60.2 60.2
The Company has one class of ordinary shares which carries no right to fixed
income.
21 Net cash from operating activities
2016 2015 £m
£m
Operating profit 246.3 245.8
Adjustments for:
Depreciation charges 325.7 353.3
Capital grant amortisation (10.5) (32.5)
Amortisation charges 51.9 54.3
Impairment charges – 8.7
Share-based payments 6.4 5.2
Profit on disposal of property, plant and equipment – (27.9)
Operating cash flows before working capital and pensions 619.8 606.9
Decrease in inventories 10.0 4.5
Decrease/(increase) in receivables 29.3 (7.5)
Decrease in payables (73.6) (113.0)
Decrease in provisions (18.6) (27.2)
Defined benefit pension payments in excess of income statement charge (33.6) (12.3)
Cash generated by operations 533.3 451.4
Tax paid (7.0) (4.5)
Interest paid (107.9) (112.2)
Interest element of HP contracts and finance leases (8.9) (9.5)
Net cash from operating activities 409.5 325.2
Responsibility Statement of the Directors on the Annual Report
The responsibility statement below has been prepared in connection with the
Group’s full annual report for the year ending 31 March 2016. Certain parts
thereof are not included within the announcement.
We confirm to the best of our knowledge:
*
the financial statements, prepared in accordance with the relevant financial
reporting framework, give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company and the undertakings
included in the consolidation taken as a whole
*
the Management Report, which is incorporated into the Directors’ Report,
includes a fair review of the development and performance of the business and
the position of the Company and the undertakings included in the consolidation
taken as a whole, together with a description of the principal risks and
uncertainties that they face.
The Directors consider that the annual report and financial statements, taken
as a whole, are fair, balanced and understandable and provide information
necessary for the shareholders to assess the Company’s and the Group’s
position and performance, business model and strategy.
This responsibility statement was approved by the Board of Directors and is
signed on its behalf by:
Tim O’Toole
Matthew Gregory
Chief Executive
Chief Financial Officer
14 June
2016
14 June 2016
Copyright (c) 2016 PR Newswire Association,LLC. All Rights ReservedRecent news on Firstgroup
See all newsREG-FirstGroup Plc: Director/PDMR Shareholding
AnnouncementREG-FirstGroup Plc: Total Voting Rights
AnnouncementREG-FirstGroup Plc: Cancellation of Treasury Shares
AnnouncementREG-FirstGroup Plc: Director/PDMR Shareholding
AnnouncementREG-FirstGroup Plc: Director/PDMR Shareholding
Announcement