REG - Halma PLC - Final Results <Origin Href="QuoteRef">HLMA.L</Origin> - Part 6

HalmaAnnouncement

14/06/2016 07:05

- Part 6: For the preceding part double click  ID:nRSN0651Be 

                                                                                                                                                                 17,075        9,650          
 Capital Employed                                                                                                                                                                                                                 259,373       219,148        
 Average Capital Employed                                                                                                                                                                                                         239,261       204,428        
 Return on Capital Employed (ROCE)                                                                                                                                                                                                72.3%         77.6%          
 *    Adjustments include the amortisation of acquired intangible assets; acquisition items; and profit or loss on disposal of operations.**   Includes goodwill amortised prior to 3 April 2004 and goodwill taken to reserves.                
                                                                                                                                                                                                                                                                   
 
 
 Organic growthOrganic growthmeasures the change in revenue and profit from continuing Group operations. At the year end, the method for calculating organic growth was changed. The revised method equalises the effect of acquisitions by:i.    removing from the year of acquisition their entire revenue and profit before taxation, andii.   in the following year, removing the revenue and profit for the number of months equivalent to the pre-acquisition period in the prior year.The resultant effect is that the    
 acquisitions are removed from organic results for one full year of ownership.The results of disposals are removed from the prior period reported revenue and profit before taxation. The effects of currency changes are removed through restating the current year revenue and profit before taxation at the prior year exchange rates. Organic growth at constant currency has been calculated as follows:                                                                                                                    
 
 
Organic growth 
 
Organic growthmeasures the change in revenue and profit from continuing Group operations. At the year end, the method for
calculating organic growth was changed. The revised method equalises the effect of acquisitions by:i.    removing from the
year of acquisition their entire revenue and profit before taxation, andii.   in the following year, removing the revenue
and profit for the number of months equivalent to the pre-acquisition period in the prior year.The resultant effect is that
the acquisitions are removed from organic results for one full year of ownership.The results of disposals are removed from
the prior period reported revenue and profit before taxation. The effects of currency changes are removed through restating
the current year revenue and profit before taxation at the prior year exchange rates. Organic growth at constant currency
has been calculated as follows: 
 
                                       Revenue                                             Adjusted profit* before taxation  
                                       53 weeks to 2 April2016  52 weeks to 28 March 2015  % growth                            53 weeks to2 April2016  52 weeks to 28 March 2015  % growth  
                                       £000                     £000                                                           £000                    £000                                 
 Continuing operations                 807,805                  726,134                                                        166,014                 153,618                              
 Acquired and disposed revenue/profit  (27,070)                 (1,124)                                                        (4,376)                 64                                   
 Organic growth                        780,735                  725,010                    7.7%                                161,638                 153,682                    5.2%      
 Constant currency adjustment          (14,466)                                                                                (2,725)                 -                                    
 Organic growth at constant currency   766,269                  725,010                    5.7%                                158,913                 153,682                    3.4%      
 
 
 *  Adjustments include the amortisation of acquired intangible assets; acquisition items; and profit or loss on disposal of operations.  
 
 
 Adjusted operating profit                   53 weeks to 2 April 2016  52 weeks to 28 March 2015  
                                             £000                      £000                       
 Operating profit                            142,943                   137,063                    
 Add back:                                                                                        
 Acquisition items                           7,179                     1,483                      
 Amortisation of acquired intangible assets  23,103                    19,954                     
 Adjusted operating profit                   173,225                   158,500                    
 
 
 Adjusted operating cash flow                                                53 weeks to 2 April 2016  52 weeks to 28 March 2015  
                                                                             £000                      £000                       
 Net cash from operating activities (note 10)                                149,273                   137,231                    
 Add back:                                                                                                                        
 Taxes paid                                                                  27,186                    30,824                     
 Proceeds from sale of property, plant and equipment                         2,364                     1,411                      
 Proceeds from sale of capitalised development costs                         166                       -                          
 Share awards vested not settled by own shares*                              2,478                     -                          
 Less:                                                                                                                            
 Purchase of property, plant and equipment                                   (22,418)                  (22,164)                   
 Purchase of computer software and other intangibles                         (2,204)                   (1,403)                    
 Development costs capitalised                                               (8,579)                   (7,213)                    
 Adjusted operating cash flow                                                148,266                   138,686                    
 Cash conversion % (adjusted operating cash flow/adjusted operating profit)  86%                       87%                        
 *  See Consolidated Statement of Changes in Equity                                                    
                                                                                                                                    
 
 
 12  Events after the balance sheet date              
 
There were no events after the balance sheet date.  
 
 
 13  Related party transactions  
 Trading transactions            
 
 
                                        2 April 2016  28 March 2015  
                                        £000          £000           
 Associated companies                                                
 Purchases from associated companies    1,254         638            
 Amounts due to associated companies    153           161            
 Amounts due from associated companies  -             -              
                                                                     
 Other related parties                                               
 Rent charged by other related parties  121           113            
 Amounts due to other related parties   2             -              
 
 
 Other related parties comprises one company with a Halma employee on the board and from which the Halma subsidiary rents property. All the transactions above are on an arm's length basis and on standard business terms. Remuneration of key management personnelThe remuneration of the Directors and Executive Board members, who are the key management personnel of the Group, is set out below in aggregate for each of the categories specified in IAS 24 'Related Party Disclosures'. Further information about the    
 remuneration of individual Directors is provided in the audited part of the Directors' Remuneration Report in the Annual Report and Accounts 2016.                                                                                                                                                                                                                                                                                                                                                                              
 
 
                             53 weeks to 2 April 2016  52 weeks to 28 March 2015  
                             £000                      £000                       
 Wages and salaries          5,658                     5,212                      
 Pension costs               180                       169                        
 Share-based payment charge  2,341                     1,799                      
                             8,179                     7,180                      
 
 
 Cautionary noteThese Results contain certain forward-looking statements which have been made by the Directors in good faith using information available up until the date they approved the announcement. Forward-looking statements should be regarded with caution as by their nature such statements involve risk and uncertainties relating to events and circumstances that may occur in the future. Actual results may differ from those expressed in such statements, depending on the outcome of these uncertain future  
 events.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
 
 
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