REG - Hays PLC - Final Results <Origin Href="QuoteRef">HAYS.L</Origin> - Part 2
01/09/2016 07:07
- Part 2: For the preceding part double click ID:nRSA6247Ia
(In £s million) Note 2016 2015
Turnover
Continuing operations 4,231.4 3,842.8
Net fees (1)
Continuing operations 3 810.3 764.2
Operating profit from continuing operations 3 181.0 164.1
Net finance charge 5 (8.0) (8.0)
Profit before tax 173.0 156.1
Tax 6 (51.9) (50.7)
Profit from continuing operations after tax 121.1 105.4
Profit from discontinued operations 3.4 0.2
Profit attributable to equity holders of the parent Company 124.5 105.6
Earnings per share from continuing operations
- Basic 8 8.48p 7.44p
- Diluted 8 8.37p 7.31p
Earnings per share from continuing and discontinued operations
- Basic 8 8.72p 7.46p
- Diluted 8 8.60p 7.33p
(1) Net fees comprise turnover less remuneration of temporary workers and other recruitment agencies.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE
(In £s million) 2016 2015
Profit for the year 124.5 105.6
Items that will not be reclassified subsequently to profit or loss:
Actuarial remeasurement of defined benefit pension schemes 35.5 (25.8)
Tax relating to components of other comprehensive income (7.2) 6.3
28.3 (19.5)
Items that may be reclassified subsequently to profit or loss:
Currency translation adjustments 64.3 (31.3)
Mark to market valuation of derivative financial instruments - 0.1
Other comprehensive income for the year net of tax 92.6 (50.7)
Total comprehensive income for the year 217.1 54.9
Attributable to equity shareholders of the parent Company 217.1 54.9
CONSOLIDATED BALANCE SHEET
AT 30 JUNE
(In £s million) Note 2016 2015
Non-current assets
Goodwill 220.4 198.4
Other intangible assets 21.6 29.8
Property, plant and equipment 19.8 15.6
Deferred tax assets 23.9 36.4
285.7 280.2
Current assets
Trade and other receivables 763.9 600.5
Cash and cash equivalents 62.9 69.8
Derivative financial instruments 6.6 -
833.4 670.3
Total assets 1,119.1 950.5
Current liabilities
Trade and other payables (573.3) (478.7)
Current tax liabilities (27.1) (19.5)
Bank loans and overdrafts (1.1) (0.5)
Provisions 10 (3.1) (3.0)
(604.6) (501.7)
Non-current liabilities
Bank loans (25.0) (100.0)
Acquisition liabilities (11.2) (8.6)
Retirement benefit obligations 9 (14.3) (58.7)
Provisions 10 (6.2) (11.9)
(56.7) (179.2)
Total liabilities (661.3) (680.9)
Net assets 457.8 269.6
Equity
Called up share capital 14.7 14.7
Share premium 369.6 369.6
Capital redemption reserve 2.7 2.7
Retained earnings (15.8) (138.2)
Cumulative translation reserve 66.4 2.1
Equity reserve 20.2 18.7
Total shareholders' equity 457.8 269.6
The Consolidated Financial Statements of Hays plc, registered number 2150950, were approved by the Board of Directors and authorised for issue on 1 September 2016.
Signed on behalf of the Board of Directors
A R COX P VENABLES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2016
(In £s million) Share capital Share premium account Capital redemption reserve Retained earnings Cumulative translation reserve Equity reserve Other reserves Total
At 1 July 2015 14.7 369.6 2.7 (138.2) 2.1 18.7 - 269.6
Currency translation adjustments - - - - 64.3 - - 64.3
Remeasurement of defined benefit pension schemes - - - 35.5 - - - 35.5
Tax relating to components of other comprehensive income - - - (7.2) - - - (7.2)
Net expense recognised in other comprehensive income - - - 28.3 64.3 - - 92.6
Profit for the year - - - 124.5 - - - 124.5
Total comprehensive income for the year - - - 152.8 64.3 - - 217.1
Dividends paid - - - (39.9) - - - (39.9)
Share-based payments - - - 10.2 - 1.5 - 11.7
Tax on share-based payment transactions - - - (0.7) - - - (0.7)
At 30 June 2016 14.7 369.6 2.7 (15.8) 66.4 20.2 - 457.8
FOR THE YEAR ENDED 30 JUNE 2015
(In £s million) Share capital Share premium account Capital redemption reserve Retained earnings Cumulative translation reserve Equity reserve Other reserves Total
At 1 July 2014 14.7 369.6 2.7 (197.7) 33.4 18.3 (0.3) 240.7
Currency translation adjustments - - - - (31.3) - - (31.3)
Mark to market valuation of derivative financial instruments - - - - - - 0.1 0.1
Remeasurement of defined benefit pension schemes - - - (25.8) - - - (25.8)
Tax relating to components of other comprehensive income - - - 6.3 - - - 6.3
Net expense recognised in other comprehensive income - - - (19.5) (31.3) - 0.1 (50.7)
Profit for the year - - - 105.6 - - - 105.6
Total comprehensive income for the year - - - 86.1 (31.3) - 0.1 54.9
Dividends paid - - - (37.9) - - - (37.9)
Share-based payments - - - 10.5 - 0.4 0.2 11.1
Tax on share-based payment transactions - - - 0.8 - - - 0.8
At 30 June 2015 14.7 369.6 2.7 (138.2) 2.1 18.7 - 269.6
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE
(In £s million) Note 2016 2015
Operating profit from continuing 181.0 164.1
operations
Adjustments for:
Depreciation of property, plant and equipment 7.7 8.7
Amortisation of intangible assets 14.2 13.7
Net movements in provisions (1.2) (0.5)
Share-based payments 11.9 10.8
32.6 32.7
Operating cash flow before movement 213.6 196.8
in working capital
Movement in working capital:
Increase in receivables (98.8) (53.0)
Increase in payables 44.5 45.9
(54.3) (7.1)
Cash generated by operations 159.3 189.7
Pension scheme deficit funding (14.4) (14.0)
Income taxes paid (41.7) (43.6)
Net cash inflow from operating 103.2 132.1
activities
Investing activities
Purchase of property, plant and (10.3) (7.8)
equipment
Proceeds from sales of business 0.1 0.2
assets
Purchase of intangible assets (4.7) (4.3)
Acquisition of subsidiaries - (35.7)
Cash paid in respect of acquisitions - (1.6)
made in previous years
Interest received 0.5 0.5
Net cash used in investing (14.4) (48.7)
activities
Financing activities
Interest paid (4.1) (5.7)
Equity dividends paid (39.9) (37.9)
Proceeds from exercise of share 1.5 1.8
options
Decrease in bank loans and (74.4) (10.2)
overdrafts
Net cash used in financing (116.9) (52.0)
activities
Net (decrease)/increase in cash and (28.1) 31.4
cash equivalents
Cash and cash equivalents at 11 69.8 48.0
beginning of year
Effect of foreign exchange rate 21.2 (9.6)
movements
Cash and cash equivalents at end of 11 62.9 69.8
year
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 2016 or
2015, for the purpose of the
Companies Act 2006, but is derived
from those accounts. The statutory
accounts for 2015 have been
delivered to the Registrar of
Companies and those for 2016 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 2015 with the exception
of the following new accounting
standards and amendments which were
mandatory for accounting periods
beginning on or after 1 January
2015, none of which had any material
impact on the Group's results or
financial position.
· IAS 19 (amendments) Employee Benefits (EU adoption from 1 February 2015)
· Annual Improvements to IFRSs 2012 (EU adoption from 1 February 2015)
· Annual Improvements to IFRSs 2013 (EU adoption from 1 January 2015)
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 2016. 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) 2016 2015
Net fees from continuing operations
Asia Pacific 176.1 178.5
Continental Europe & Rest of World 362.5 313.8
United Kingdom & Ireland 271.7 271.9
810.3 764.2
3 SEGMENTAL INFORMATION continued
(In £s million) 2016 2015
Operating profit from continuing
operations
Asia Pacific 50.2 49.7
Continental Europe & Rest of World 78.7 68.7
United Kingdom & Ireland 52.1 45.7
181.0 164.1
4 OPERATING PROFIT FROM CONTINUING OPERATIONS
The following costs are deducted
from turnover to determine net fees
from continuing operations:
(In £s million) 2016 2015
Turnover 4,231.4 3,842.8
Remuneration of temporary workers (3,236.5) (2,941.5)
Remuneration of other recruitment (184.6) (137.1)
agencies
Net fees 810.3 764.2
Operating profit is stated after
charging the following items to net
fees of £810.3 million (2015: £764.2
million):
(In £s million) 2016 2015
Staff costs 476.3 440.6
Depreciation of property, plant and 7.7 8.7
equipment
Amortisation of intangible assets 14.2 13.7
Operating lease rentals payable 34.0 30.8
Impairment loss on trade receivables 3.0 2.5
Auditor remuneration
- for statutory audit services 0.9 0.9
- for other services 0.7 0.4
5 NET FINANCE CHARGE
(In £s million) 2016 2015
Interest received on bank deposits 0.5 0.5
Interest payable on bank loans and (3.4) (4.6)
overdrafts
Interest unwind on acquisition (0.9) (0.4)
liability
Pension Protection Fund levy (0.3) (0.5)
Net interest on pension obligations (3.9) (3.0)
Net finance charge (8.0) (8.0)
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) 2016 2015
Profit before tax from continuing 173.0 156.1
operations
Income tax expense calculated at (34.6) (32.4)
20.00% (2015: 20.75%)
Net effect of items that are non (1.4) (3.7)
-taxable/(non-deductible) in
determining taxable profit
Effect of unused tax losses not (1.5) -
recognised as deferred tax assets
Effect of tax losses not recognised 0.7 -
as deferred tax utilised in the year
Effect of different tax rates of (14.6) (13.8)
subsidiaries operating in other
jurisdictions
Effect on deferred tax balances due - (0.8)
to the changes in income tax rates
Effect of share-based payment (0.9) 0.5
charges and share options
(52.3) (50.2)
Adjustments recognised in the - (0.2)
current year in relation to the
current tax of prior years
Adjustments to deferred tax in 0.4 (0.3)
relation to prior years
Income tax expense recognised in the (51.9) (50.7)
Consolidated Income Statement
relating to continuing operations
Effective tax rate for the year on 30.0% 32.5%
continuing operations
The tax rate used for the 2016
reconciliations above is the
corporate tax rate of 20.00% (2015:
20.75%) 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:
2016 2015
pence per 2016 pence per 2015
share £s million share £s million
Previous year final dividend 1.89 26.9 1.80 25.6
Current year interim dividend 0.91 13.0 0.87 12.3
39.9 37.9
The following dividends have been
paid/proposed by the Group in
respect of the accounting year
presented:
2016 2015
pence per 2016 pence per 2015
share £s million share £s million
Interim dividend (paid) 0.91 13.0 0.87 12.3
Final dividend (proposed) 1.99 28.7 1.89 27.0
2.90 41.7 2.76 39.3
The final dividend for 2016 of 1.99
pence per share (£28.7 million) will
be proposed at the Annual General
Meeting on 9 November 2016 and has
not been included as a liability as
at 30 June 2016. If approved, the
final dividend will be paid on 11
November 2016 to shareholders on the
register at the close of business on
14 October 2016.
8 EARNINGS PER SHARE
Weighted
average
number of Per share
Earnings shares amount
For the year ended 30 June 2016 (£s million) (million) (pence)
Continuing operations:
Basic earnings per share from 121.1 1,428.4 8.48
continuing operations
Dilution effect of share options - 19.0 (0.11)
Diluted earnings per share from 121.1 1,447.4 8.37
continuing operations
Discontinued operations:
Basic earnings per share from 3.4 1,428.4 0.24
discontinued operations
Dilution effect of share options - 19.0 (0.01)
Diluted earnings per share from 3.4 1,447.4 0.23
discontinued operations
Continuing and discontinued
operations:
Basic earnings per share from 124.5 1,428.4 8.72
continuing and discontinued
operations
Dilution effect of share options - 19.0 (0.12)
Diluted earnings per share from 124.5 1,447.4 8.60
continuing and discontinued
operations
Weighted
average
number of Per share
Earnings shares amount
For the year ended 30 June 2015 (£s million) (million) (pence)
Continuing operations:
Basic earnings per share from 105.4 1,416.4 7.44
continuing operations
Dilution effect of share options - 24.5 (0.13)
Diluted earnings per share from 105.4 1,440.9 7.31
continuing operations
Discontinued operations:
Basic earnings per share from 0.2 1,416.4 0.01
discontinued operations
Dilution effect of share options - 24.5 -
Diluted earnings per share from 0.2
- More to follow, for following part double click ID:nRSA6247IcRecent news on Hays
See all newsREG - Hays PLC - Director/PDMR Shareholding
AnnouncementREG - Hays PLC - Director/PDMR Shareholding
AnnouncementREG - Hays PLC - Director/PDMR Shareholding
AnnouncementREG - Hays PLC - Director/PDMR Shareholding
AnnouncementREG - Hays PLC - Total Voting Rights
Announcement