REG - Hays PLC - Final Results <Origin Href="QuoteRef">HAYS.L</Origin> - Part 2
29/10/2014 15:48
- Part 2: For the preceding part double click ID:nRSb1776Qa
tax on share-based payment transactions - - - 0.1 - - 0.1
Other share movements - - - - - 1.6 1.6
At 30 June 2013 14.7 369.6 2.7 (244.3) 54.8 18.9 216.4
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE
(In £s million) Note 2014 2013
Operating profit from continuing operations 140.3 125.5
Adjustments for:
Exceptional items(1) (0.2) (0.6)
Depreciation of property, plant and equipment 9.2 11.0
Amortisation of intangible fixed assets 12.9 12.6
Loss/(profit) on disposal of property, plant and equipment 0.5 (0.1)
Net movements in provisions and other items (2.0) (2.4)
Share-based payments 8.7 10.2
29.1 30.7
Operating cash flow before movement in working capital 169.4 156.2
Movement in working capital
Increase in receivables (32.6) (25.1)
Increase in payables 38.6 4.6
6.0 (20.5)
Cash generated by operations 175.4 135.7
Pension scheme deficit funding (13.5) (12.8)
Income taxes paid (59.3) (45.2)
Net cash inflow from operating activities 102.6 77.7
Investing activities
Purchase of property, plant and equipment (5.7) (9.3)
Proceeds from sales of business and related assets 0.1 0.2
Purchase of intangible assets (6.1) (1.4)
Cash paid in respect of acquisitions made in previous years (0.3) (0.8)
Interest received 0.5 0.7
Net cash used in investing activities (11.5) (10.6)
Financing activities
Interest paid (8.4) (9.0)
Equity dividends paid (35.1) (34.8)
Proceeds from exercise of share options 0.6 1.6
Decrease in bank loans and overdrafts (34.5) (26.4)
Net cash used in financing activities (77.4) (68.6)
Net increase/(decrease) in cash and cash equivalents 13.7 (1.5)
Cash and cash equivalents at beginning of year 11 40.0 38.7
Effect of foreign exchange rate movements (5.7) 2.8
Cash and cash equivalents at end of year 11 48.0 40.0
(1) The adjustment to the Cash Flow Statement in the year to 30 June 2014 of £0.2 million and in the year to 30 June 2013 of £0.6 million relates to cash paid in respect of exceptional items which were recognised in the financial years ended 30 June 2010 and 30 June 2011.
NOTES TO THE
CONSOLIDATED FINANCIAL
STATEMENTS
1 STATEMENT UNDER S435 - PUBLICATION OF NON-STATUTORY ACCOUNTS
The financial
information set out in
this preliminary
announcement does not
constitute statutory
accounts for the years
ended 30 June 2014 or
2013, for the purpose of
the Companies Act 2006,
but is derived from
those accounts. The
statutory accounts for
2013 have been delivered
to the Registrar of
Companies and those for
2014 will be delivered
following the Company's
Annual General Meeting.
The Group's Auditor has
reported on those
accounts; their reports
were unqualified, did
not draw attention to
any matters by way of
emphasis without
qualifying their report
and did not contain
statements under Section
498(2) or (3) of the
Companies Act 2006.
2 BASIS OF PREPARATION
Whilst the financial
information included in
this preliminary
announcement has been
prepared in accordance
with the International
Financial Reporting
Standards (IFRSs) as
adopted for use in the
European Union and as
issued by the
International Accounting
Standards Board, this
announcement does not
itself contain
sufficient information
to comply with IFRS. The
accounting policies
applied in preparing
this financial
information are
consistent with the
Group's financial
statements for the year
ended June 2013 with the
exception of the
following new accounting
standards and amendments
which were mandatory for
accounting periods
beginning on or after 1
January 2013, none of
which had any material
impact on the Group's
results or financial
position.
· IFRS 7 (amendment) Disclosures - Offsetting Financial Assets and Financial Liabilities (effective 1 January 2013)
· IFRS 13 Fair Value Measurement (effective 1 January 2013)
· IAS 19 (revised) Employee Benefits (effective 1 January 2013)
· Annual Improvements to IFRSs 2011 (effective 1 January 2013)
Going Concern
The Group's business
activities, together
with the factors likely
to effect its future
development, performance
and financial position,
including its cash flows
and liquidity position
are described in this
preliminary results
announcement for the
year ended 30 June 2014.
The directors have
formed the judgement
that there is reasonable
expectation that the
Group has adequate
resources to continue in
operational existence
for the foreseeable
future. As a result the
directors continue to
adopt the going concern
basis in the preparation
of the financial
statements.
3 SEGMENTAL INFORMATION
The Group's continuing
operations comprise one
class of business, that
of qualified,
professional and skilled
recruitment.
The Group's Management
Board, which is regarded
as the chief operating
decision maker, uses net
fees by segment as its
measure of revenue in
internal reports, rather
than use turnover. This
is because net fees
exclude the remuneration
of temporary workers,
and payments to other
recruitment agencies
where the Group acts as
principal, which are not
considered relevant in
allocating resources to
segments. The Group's
Management Board
considers net fees for
the purpose of making
decisions about
allocating resources.
The Group does not
report items below
operating profit by
segment in its internal
management reporting.
The reconciliation of
turnover to net fees can
be found in note 4.
(In £s million) 2014 2013
Net fees from continuing
operations
Asia Pacific 173.9 211.8
Continental Europe & 305.0 285.2
Rest of World
United Kingdom & Ireland 246.0 222.0
724.9 719.0
(In £s million) 2014 2013
Operating profit from
continuing operations
Asia Pacific 49.7 67.2
Continental Europe & 64.4 52.7
Rest of World
United Kingdom & Ireland 26.2 5.6
140.3 125.5
4 OPERATING PROFIT FROM CONTINUING OPERATIONS
The following costs are
deducted from turnover
to determine net fees
from continuing
operations:
(In £s million) 2014 2013
Turnover 3,678.5 3,696.9
Remuneration of (2,805.8) (2,685.9)
temporary workers
Remuneration of other (147.8) (292.0)
recruitment agencies
Net fees 724.9 719.0
Operating profit is
stated after charging
the following items to
net fees of £724.9
million (2013: £719.0
million):
(In £s million) 2014 2013
Staff costs 424.4 428.1
Depreciation of 9.2 11.0
property, plant and
equipment
Amortisation of 12.9 12.6
intangible assets
Operating lease rentals 31.2 31.2
payable
Impairment loss on trade 3.4 2.5
receivables
Auditor remuneration
- for statutory audit 0.9 0.8
services
- for other services 0.3 0.6
Other external charges 102.3 106.7
584.6 593.5
5 FINANCE INCOME AND FINANCE COST
Finance income
(In £s million) 2014 2013
Interest on bank 0.5 0.7
deposits
Finance cost
(In £s million) 2014 2013
Interest payable on bank (5.5) (7.7)
loans and overdrafts
Pension Protection Fund (0.4) 0.4
levy
Net interest on pension (2.6) (0.4)
obligations
(8.5) (7.7)
Net finance charge (8.0) (7.0)
6 INCOME TAXES RELATING TO CONTINUING OPERATIONS
The income tax expense
for the year can be
reconciled to the
accounting profit as
follows:
(In £s million) 2014 2013
Profit before tax from 132.3 118.5
continuing operations
Income tax expense (29.8) (28.1)
calculated at 22.50%
(2013: 23.75%)
Net effect of items that 1.3 (0.7)
are non-taxable/(non
-deductible) in
determining taxable
profit
Effect of unused tax (1.5) (1.8)
losses not recognised as
deferred tax assets
Effect of different tax (11.6) (10.9)
rates of subsidiaries
operating in other
jurisdictions
Effect on deferred tax (1.8) (0.9)
balances due to the
changes in income tax
rates
Effect of share-based (0.1) 0.3
payment charges and
share options
(43.5) (42.1)
Adjustments recognised (2.8) (5.0)
in the current year in
relation to the current
tax of prior years
Adjustments to deferred - 0.3
tax in relation to prior
years
Income tax expense (46.3) (46.8)
recognised in the
Consolidated Income
Statement (relating to
continuing operations)
Effective tax rate for 35.0% 39.5%
the year on continuing
operations
The tax rate used for
the 2014 and 2013
reconciliations above is
the corporate tax rate
of 22.50% (2013: 23.75%)
payable by corporate
entities in the United
Kingdom on taxable
profits under tax law in
that jurisdiction.
7 DIVIDENDS
The following dividends
were paid by the Group
and have been recognised
as distributions to
equity shareholders in
the year:
2014 2013
pence per 2014 pence per 2013
share £s million share £s million
Previous year final 1.67 23.5 1.67 23.2
dividend
Current year interim 0.83 11.6 0.83 11.6
dividend
35.1 34.8
The following dividends
have been paid/proposed
by the Group in respect
of the accounting year
presented:
2014 2013
pence per 2014 pence per 2013
share £s million share £s million
Interim dividend (paid) 0.83 11.6 0.83 11.6
Final dividend 1.80 25.6 1.67 23.5
(proposed)
2.63 37.2 2.50 35.1
The final dividend for
2014 of 1.80 pence per
share (£25.6 million)
will be proposed at the
Annual General Meeting
on 12 November 2014 and
has not been included as
a liability as at 30
June 2014. If approved,
the final dividend will
be paid on 14 November
2014 to shareholders on
the register at the
close of business on 10
October 2014.
8 EARNINGS PER SHARE
Weighted
average
number of Per share
Earnings shares amount
For the year ended 30 (£s million) (million) (pence)
June 2014
Continuing operations:
Basic earnings per share 86.0 1,403.9 6.13
from continuing
operations
Dilution effect of share - 30.0 (0.13)
options
Diluted earnings per 86.0 1,433.9 6.00
share from continuing
operations
Discontinued operations:
Basic earnings per share 4.9 1,403.9 0.35
from discontinued
operations
Dilution effect of share - 30.0 (0.01)
options
Diluted earnings per 4.9 1,433.9 0.34
share from discontinued
operations
Continuing and
discontinued operations:
Basic earnings per share 90.9 1,403.9 6.47
from continuing and
discontinued operations
Dilution effect of share - 30.0 (0.13)
options
Diluted earnings per 90.9 1,433.9 6.34
share from continuing
and discontinued
operations
Weighted
average
number of Per share
Earnings shares amount
For the year ended 30 (£s million) (million) (pence)
June 2013
Continuing operations:
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