REG - Future PLC - Final Results <Origin Href="QuoteRef">FUTR.L</Origin> - Part 2
21/11/2014 08:30
- Part 2: For the preceding part double click ID:nRSU6301Xa
attributable to the disposed titles have been
classified within discontinued operations and no apportionment of central
overheads has been made.
2014£m 2013£m
Revenue 22.9 29.7
Cost of sales (14.8) (19.3)
Gross profit 8.1 10.4
Distribution expenses (1.5) (2.1)
Administration expenses (0.2) (0.2)
Operating profit before exceptional items and impairment of intangible assets 6.4 8.1
Exceptional items - (0.1)
Impairment of intangible assets (9.2) -
Operating (loss)/profit (2.8) 8.0
Net finance costs - -
(Loss)/profit from discontinued operations before tax (2.8) 8.0
Tax on (loss)/profit from discontinued operations - (1.4)
(Loss)/profit after tax from discontinued operations (2.8) 6.6
Gain on sale of operations 3.5 -
Tax on sale of operations 0.3 -
Gain on sale of operations after tax 3.8 -
Profit from discontinued operations 1.0 6.6
The gain on sale of operations for the disposed titles is set out below:
2014£m
Consideration:
Cash 22.3
Deferred consideration 0.2
Subscription liabilities 2.3
Total consideration 24.8
Costs of disposal (1.5)
23.3
Net assets at disposal:
Intangible assets 19.3
Investment in associate 0.2
Inventories 0.3
19.8
Gain on sale of operations 3.5
9. Intangible assets
Goodwill Magazine and website Other Total
£m £m £m £m
Cost
At 1 October 2012 311.1 15.2 12.1 338.4
Additions 0.2 0.5 2.2 2.9
Disposals (6.2) - (0.1) (6.3)
Exchange adjustments - (0.1) - (0.1)
At 30 September 2013 305.1 15.6 14.2 334.9
Additions - - 2.3 2.3
Disposals (19.3) (0.3) (1.2) (20.8)
Exchange adjustments (0.2) (0.1) - (0.3)
At 30 September 2014 285.6 15.2 15.3 316.1
Accumulated amortisation
At 1 October 2012 (218.8) (15.1) (9.2) (243.1)
Charge for the year - (0.1) (1.9) (2.0)
At 30 September 2013 (218.8) (15.2) (11.1) (245.1)
Charge for the year - (0.3) (2.0) (2.3)
Impairment charge (26.0) - - (26.0)
Disposals - 0.3 1.2 1.5
Exchange adjustments 0.1 0.1 - 0.2
At 30 September 2014 (244.7) (15.1) (11.9) (271.7)
Net book value at 30 September 2014 40.9 0.1 3.4 44.4
Net book value at 30 September 2013 86.3 0.4 3.1 89.8
Net book value at 1 October 2012 92.3 0.1 2.9 95.3
Impairment tests for goodwill and other intangibles
At 31 March 2014, the Directors considered there to be an indication of
impairment in respect of the carrying amount of goodwill of the UK and US
segments. The Directors considered the trading patterns, challenging economic
climate and trading environment in which the Group's restructuring activities
were taking place to be indicators of impairment, and therefore tested for
impairment at 31 March 2014.
The impairment test resulted in an impairment charge of £22.6m being taken
against the carrying value of the UK segment and £3.4m being taken against the
carrying value of the US segment at 31 March 2014 (comprising £16.8m in
respect of continuing operations and £9.2m in respect of discontinued
operations).
The breakdown of the goodwill balance at 30 September 2014 comprises:
2014£m 2013£m
UK 40.9 82.8
US - 3.5
Total 40.9 86.3
In September 2014 the Group performed its annual impairment test on goodwill.
These tests concluded that no impairment was required. The estimated
recoverable amount for the UK business exceeded its carrying value by £13.9m.
Although goodwill is not considered to be impaired at 30 September 2014 a
reasonably possible change in the discount rate or forecast cash flows could
give rise to an impairment.
10. Cash and cash equivalents
2014 2013
£m £m
Cash at bank and in hand 7.5 4.6
Cash and cash equivalents 7.5 4.6
11. Non-current assets held for sale
As a result of the Group's decision to sell one of its properties in the UK,
the property's net book value of £0.8m has been presented as held for sale in
the balance sheet at 30 September 2014. The Group has not recognised any
impairment losses on reclassification of the property as held for sale.
The Group completed the sale of the property on 10 November 2014.
12. Financial liabilities - interest-bearing loans and borrowings
Current liabilities
Interest rate at 30 September Interest rate at 30 September 2014 2013
2014 2013 £m £m
Sterling revolving loan - 2.9% - 6.6
US Dollar revolving loan - 2.6% - 4.9
Total - 11.5
The interest-bearing loans and borrowings are repayable as follows:
2014 2013
£m £m
Within one year - 11.5
Total - 11.5
The Group's credit facility was amended and restated in June 2014. The total
facility available to the Group at 30 September 2014 amounts to £9.8m and this
can be drawn in sterling, US Dollars or Euros. The Group has granted security
to the banks and the availability of the facility, which expires in December
2015, is subject to certain covenants.
Fees relating to the amendment and restatement amounted to £0.5m and these are
being amortised over the term of the facility. The bank borrowings and
interest are guaranteed by Future plc, Future Holdings 2002 Limited, Future
Publishing Limited and Future US, Inc.
Interest payable under the current credit facility is calculated as the cost
of three-month LIBOR (currently approximately 0.56%) plus an interest margin
of between 4.25% and 5.00%, dependent on the type of drawdown.
The Group has covenants in respect of net debt/bank EBITDA, bank
EBITDA/interest, cash flow/debt service, capital expenditure and exceptional
costs, all of which were met at 30 September 2014. For covenant purposes, net
debt is exclusive of non-current tax and other payables and bank EBITDA is not
materially different to statutory EBITDA.
13. Provisions
Property
£m
At 1 October 2013 1.5
Charged in the year 1.5
Utilised in the year (0.2)
At 30 September 2014 2.8
The provision for property relates to dilapidations and obligations under
short leasehold agreements on vacant property. The vacant property provision
is expected to be utilised over the next five years. The dilapidations
provision is expected to be utilised on the expiry of property leases.
14. Related party transactions
The Group had no material transactions with related parties in 2014 or 2013
which might reasonably be expected to influence decisions made by users of
this preliminary statement.
15. Post balance sheet event
On 10 November 2014, the Group completed the sale of one of its UK properties
for £1.25m. This property has been presented as a non-current asset held for
sale at 30 September 2014, as disclosed in note 11.
This information is provided by RNS
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