REG - Hays PLC - Half-year Report <Origin Href="QuoteRef">HAYS.L</Origin> - Part 2
22/02/2018 07:05
- Part 2: For the preceding part double click ID:nRSV5886Fa
2.7
Retained earnings 98.3 21.0 94.1
Cumulative translation reserve 80.5 75.9 83.8
Equity reserve 17.1 16.8 21.5
Total equity 582.9 500.7 586.4
Condensed Consolidated Statement of Changes in Equity
For the six months ended 31 December 2017
(In £'s million) Called up share capital Share premium Capital redemption reserve Retained earnings Cumulative translation reserve Equity reserve Total equity
At 1 July 2017 14.7 369.6 2.7 94.1 83.8 21.5 586.4
Currency translation adjustments - - - - (3.3) - (3.3)
Remeasurement of defined benefit pension schemes - - - 11.2 - - 11.2
Tax relating to components of other comprehensive income - - - (2.1) - - (2.1)
Net income recognised in other comprehensive income - - - 9.1 (3.3) - 5.8
Profit for the period - - - 78.0 - - 78.0
Total comprehensive income for the period - - - 87.1 (3.3) - 83.8
Dividends paid - - - (94.3) - - (94.3)
Share-based payments - - - 11.6 - (4.4) 7.2
Tax on share-based payment transactions - - - (0.2) - - (0.2)
At 31 December 2017 (unaudited) 14.7 369.6 2.7 98.3 80.5 17.1 582.9
For the six months ended 31 December 2016
(In £'s million) Called up share capital Share premium Capital redemption reserve Retained earnings Cumulative translation reserve Equity reserve Total equity
At 1 July 2016 14.7 369.6 2.7 (15.8) 66.4 20.2 457.8
Currency translation adjustments - - - - 12.3 - 12.3
Remeasurement of defined benefit pension schemes - - - (12.6) - - (12.6)
Tax relating to components of other comprehensive income - - - 2.4 (2.8) - (0.4)
Net expense recognised in other comprehensive income - - - (10.2) 9.5 - (0.7)
Profit for the period - - - 65.4 - - 65.4
Total comprehensive income for the period - - - 55.2 9.5 - 64.7
Dividends paid - - - (28.7) - - (28.7)
Share-based payments - - - 9.7 - (3.4) 6.3
Tax on share-based payment transactions - - - 0.6 - - 0.6
At 31 December 2016 (unaudited) 14.7 369.6 2.7 21.0 75.9 16.8 500.7
For the year ended 30 June 2017
(In £'s million) Called up share capital Share premium Capital redemption reserve Retained earnings Cumulative translation reserve Equity reserve Total equity
At 1 July 2016 14.7 369.6 2.7 (15.8) 66.4 20.2 457.8
Currency translation adjustments - - - - 17.4 - 17.4
Remeasurement of defined benefit pension schemes - - - 1.7 - - 1.7
Tax relating to components of other comprehensive income - - - (0.4) - - (0.4)
Net income recognised in other comprehensive income - - - 1.3 17.4 - 18.7
Profit for the year - - - 139.1 - - 139.1
Total comprehensive income for the year - - - 140.4 17.4 - 157.8
Dividends paid - - - (42.6) - - (42.6)
Share-based payments - - - 11.3 - 1.3 12.6
Tax on share-based payment transactions - - - 0.8 - - 0.8
At 30 June 2017 (audited) 14.7 369.6 2.7 94.1 83.8 21.5 586.4
Condensed Consolidated Cash Flow Statement
Six months to Six months to Year to
31 December 31 December 30 June
2017 2016 2017
(In £'s million) Note (unaudited) (unaudited) (audited)
Operating profit from continuing operations 116.5 100.1 211.5
Adjustments for:
Depreciation of property, plant and equipment 4.8 4.5 8.9
Amortisation of intangible assets 3.8 7.8 12.8
Profit on disposal of business assets (0.8) (0.1) (0.5)
Net movements in provisions (1.2) (0.3) (0.5)
Share-based payments 6.9 6.6 13.0
13.5 18.5 33.7
Operating cash flow before movement in working capital 130.0 118.6 245.2
Movement in working capital (55.9) (34.8) (28.2)
Cash generated by operations 74.1 83.8 217.0
Pension scheme deficit funding (7.7) (7.4) (14.8)
Income taxes paid (33.7) (30.2) (68.2)
Net cash inflow from operating activities 32.7 46.2 134.0
Investing activities
Purchase of property, plant and equipment (9.5) (5.6) (12.9)
Proceeds from sales of business assets 1.4 0.1 0.6
Purchase of intangible assets (5.6) (4.5) (9.1)
Interest received 0.3 0.3 0.6
Net cash used in investing activities (13.4) (9.7) (20.8)
Financing activities
Interest paid (1.2) (1.6) (2.5)
Equity dividends paid (94.3) (28.7) (42.6)
Proceeds from exercise of share options 0.4 0.4 1.0
Increase/(decrease) in bank loans and overdrafts 79.6 40.0 (25.8)
Net cash (used in)/from financing activities (15.5) 10.1 (69.9)
Net increase in cash and cash equivalents 3.8 46.6 43.3
Cash and cash equivalents at beginning of period 112.0 62.9 62.9
Effect of foreign exchange rate movements (1.3) 4.5 5.8
Cash and cash equivalents at end of period 9 114.5 114.0 112.0
(In £'s million) Note
Bank loans and overdrafts at beginning of period (0.4) (26.1) (26.1)
(Increase)/decrease in period (79.6) (40.0) 25.8
Effect of foreign exchange rate movements - - (0.1)
Bank loans and overdrafts at end of period (80.0) (66.1) (0.4)
Net cash at end of period 9 34.5 47.9 111.6
Notes to the condensed consolidated financial statements
For the six months ended 31 December 2017
1 Basis of preparation
The condensed consolidated interim financial statements
("interim financial statements") are the results for the six
months ended 31 December 2017. The interim financial statements
have been prepared under International Financial Reporting
Standards ("IFRS") as adopted by the European Union, in
accordance with International Accounting Standard 34 'Interim
Financial Reporting' and the Disclosure Guidance and
Transparency Rules of the Financial Conduct Authority. They are
unaudited but have been reviewed by the auditors and their
report is attached.
The interim financial statements do not constitute statutory
accounts as defined in Section 434 of the Companies Act 2006 as
they do not include all of the information required for full
statutory accounts. The interim financial statements should be
read in conjunction with the statutory accounts for the year
ended 30 June 2017, which were prepared in accordance with IFRS
as adopted by the European Union and have been filed with the
Registrar of Companies. The auditors' report on those accounts
was unqualified, did not draw attention to any matters by way of
emphasis and did not contain a statement under Section 498 (2)
or (3) of the Companies Act 2006.
Accounting policies
The interim financial statements have been prepared on the basis
of the accounting policies and methods of computation applicable
for the year ended 30 June 2017. These accounting policies are
consistent with those applied in the preparation of the
financial statements for the year ended 30 June 2017 except as
where stated below.
The fair value of trade receivables, trade payables, financial
assets, bank loans and overdraft is not materially different to
their book value.
The basis of tax accounting under IAS 34 is different to the
year ended 30 June 2017 because it is based on the effective
rate expected for the year ending 30 June 2018.
The following are new standards or improvements to existing
standards that are mandatory for the first time in the Group's
accounting period beginning on 1 July 2017 and no new standards
have been early adopted. The Group's December 2017 interim
financial statements have adopted these amendments to IFRS, none
of which had any material impact on the Group's results or
financial position:
Ÿ IAS 7 (amendments) Statement on Cashflows on Disclosure Initiative (effective from 1 January 2017)
Ÿ IAS 12 (amendments) Income Taxes (effective from 1 January 2017)
There have been no alterations made to the accounting policies
as a result of considering all of the above amendments that
became effective in the period, as these were either not
material or were not relevant.
The Group has not yet adopted certain new standards, amendments
and interpretations to existing standards, which have been
published but which are only effective for the Group accounting
periods beginning on or after 1 July 2018. These new
pronouncements are listed as follows:
Ÿ IFRS 2 (amendments) Share Based Payments (effective 1 January 2018)
Ÿ IFRS 9 Financial Instruments (effective 1 January 2018)
Ÿ IFRS 15 Revenue from Contracts and Customer (effective 1 January 2018)
Ÿ IFRS 15 (amendments) Revenue from Contracts and Customer (effective 1 January 2018)
Ÿ IFRS 16 Leases (effective 1 January 2019)
Ÿ Annual Improvements to IFRSs 2016 (effective 1 January 2018)
Ÿ IFRIC 22 Foreign Currency Transactions and Advance Consideration (effective 1 January 2018)
Ÿ IFRIC 23 Uncertainty over Income Tax Treatments (effective 1 January 2019)
Accounting policies continued
An assessment of the impact of IFRS 15 has been completed
following a comprehensive review of the contracts that exist
across the Group's revenue streams. The review has concluded
that revenue recognition under IFRS 15 is expected to be
consistent with current practice for the Group's revenue and had
IFRS 15 been applied in the current reporting period, it would
not have had a material impact on the financial statements.
IFRS 16 is expected to have a significant impact on the amounts
recognised in the Group's Consolidated Financial Statements. On
adoption of IFRS 16 the Group will recognise within the balance
sheet a right of use asset and lease liability for all
applicable leases. Within the income statement, operating lease
rentals payable will be replaced by depreciation and interest
expense. This will result in an increase in operating profit and
an increase in finance costs.
The standard will also impact a number of statutory measures
such as operating profit, and cash generated from operations,
and alternative performance measures used by the Group. The full
impact of IFRS 16 is currently under review, including
understanding the practical application of the principles of the
standard. It is therefore not practical to provide a reasonable
estimate of the financial effect until this review is complete.
IFRS 16 will become effective in the Group's financial year
2020. The directors expect to be able to provide an indication
of the impact on the Group's financial statements by 30 June
2019.
IFRS 9 introduces a new classification approach for financial
assets and liabilities. The categories of financial assets will
be reduced from four to three and financial liabilities will be
measured at amortised cost or fair value through profit and
loss. The standard also prescribes an 'expected credit loss'
model for determining the basis of providing for bad debts. The
directors do not expect this to have a material impact on the
financial statements.
The directors are currently evaluating the impact of the
adoption of all other standards, amendments and interpretations
but do not expect them to have a material impact on the Group
operation or results.
The Group's principal accounting policies adopted in the
presentation of these financial statements are set out below and
have been consistently applied to all the periods presented.
Going concern
The Group's business activities, together with the factors
likely to affect its future development, performance and
financial position, including its cash flows and liquidity
position are described in the Half Year Report.
The Group has an unsecured revolving credit facility of £210
million that expires in April 2020. The Group uses the facility
to manage its day-to-day working capital requirements as
appropriate. As at 31 December 2017, £130 million of the
committed facility was un-drawn.
The Group's facility, together with internally generated cash
flows, will continue to provide sufficient sources of liquidity
to fund its current operations, including contractual and
commercial commitments, future growth and any proposed
dividends. Therefore the Group is well placed to manage its
business risks.
After making enquiries, the directors have formed the judgment,
at the time of approving the interim financial statements, that
there is reasonable expectation that the Group has adequate
resources to continue in operational existence for the
foreseeable future. For this reason, the directors continue to
adopt the going concern basis in preparing the interim financial
statements.
2 Segmental information
IFRS 8, Operating Segments
IFRS 8 requires operating segments to be identified on the basis
of internal reports about components of the Group that are
regularly reviewed by the chief operating decision maker to
allocate resources to the segment and to assess their
performance.
As a result, the Group now segment the business into four
regions, Australia & New Zealand, Germany, United Kingdom &
Ireland and Rest of World. Therefore the comparative segmental
reporting has been restated accordingly. In the prior year, the
business was reported as three regions (Asia Pacific,
Continental Europe & Rest of World, and United Kingdom &
Ireland). There is no material difference between the
segmentation of the Group's turnover by geographic origin and
destination.
The Group's continuing operations comprise one class of - Part 2: For the preceding part double click ID:nRSV5886Fa
- 139.1
Total comprehensive income for the year - - - 140.4 17.4 - 157.8
Dividends paid - - - (42.6) - - (42.6)
Share-based payments - - - 11.3 - 1.3 12.6
Tax on share-based payment transactions - - - 0.8 - - 0.8
At 30 June 2017 (audited) 14.7 369.6 2.7 94.1 83.8 21.5 586.4
Condensed Consolidated Cash Flow Statement
Six months to Six months to Year to
31 December 31 December 30 June
2017 2016 2017
(In £'s million) Note (unaudited) (unaudited) (audited)
Operating profit from continuing operations 116.5 100.1 211.5
Adjustments for:
Depreciation of property, plant and equipment 4.8 4.5 8.9
Amortisation of intangible assets 3.8 7.8 12.8
Profit on disposal of business assets (0.8) (0.1) (0.5)
Net movements in provisions (1.2) (0.3) (0.5)
Share-based payments 6.9 6.6 13.0
13.5 18.5 33.7
Operating cash flow before movement in working capital 130.0 118.6 245.2
Movement in working capital (55.9) (34.8) (28.2)
Cash generated by operations 74.1 83.8 217.0
Pension scheme deficit funding (7.7) (7.4) (14.8)
Income taxes paid (33.7) (30.2) (68.2)
Net cash inflow from operating activities 32.7 46.2 134.0
Investing activities
Purchase of property, plant and equipment (9.5) (5.6) (12.9)
Proceeds from sales of business assets 1.4 0.1 0.6
Purchase of intangible assets (5.6) (4.5) (9.1)
Interest received 0.3 0.3 0.6
Net cash used in investing activities (13.4) (9.7) (20.8)
Financing activities
Interest paid (1.2) (1.6) (2.5)
Equity dividends paid (94.3) (28.7) (42.6)
Proceeds from exercise of share options 0.4 0.4 1.0
Increase/(decrease) in bank loans and overdrafts 79.6 40.0 (25.8)
Net cash (used in)/from financing activities (15.5) 10.1 (69.9)
Net increase in cash and cash equivalents 3.8 46.6 43.3
Cash and cash equivalents at beginning of period 112.0 62.9 62.9
Effect of foreign exchange rate movements (1.3) 4.5 5.8
Cash and cash equivalents at end of period 9 114.5 114.0 112.0
(In £'s million) Note
Bank loans and overdrafts at beginning of period (0.4) (26.1) (26.1)
(Increase)/decrease in period (79.6) (40.0) 25.8
Effect of foreign exchange rate movements - - (0.1)
Bank loans and overdrafts at end of period (80.0) (66.1) (0.4)
Net cash at end of period 9 34.5 47.9 111.6
Notes to the condensed consolidated financial statements
For the six months ended 31 December 2017
1 Basis of preparation
The condensed consolidated interim financial statements ("interim financial
statements") are the results for the six months ended 31 December 2017. The
interim financial statements have been prepared under International Financial
Reporting Standards ("IFRS") as adopted by the European Union, in accordance
with International Accounting Standard 34 'Interim Financial Reporting' and
the Disclosure Guidance and Transparency Rules of the Financial Conduct
Authority. They are unaudited but have been reviewed by the auditors and their
report is attached.
The interim financial statements do not constitute statutory accounts as
defined in Section 434 of the Companies Act 2006 as they do not include all of
the information required for full statutory accounts. The interim financial
statements should be read in conjunction with the statutory accounts for the
year ended 30 June 2017, which were prepared in accordance with IFRS as
adopted by the European Union and have been filed with the Registrar of
Companies. The auditors' report on those accounts was unqualified, did not
draw attention to any matters by way of emphasis and did not contain a
statement under Section 498 (2) or (3) of the Companies Act 2006.
Accounting policies
The interim financial statements have been prepared on the basis of the
accounting policies and methods of computation applicable for the year ended
30 June 2017. These accounting policies are consistent with those applied in
the preparation of the financial statements for the year ended 30 June 2017
except as where stated below.
The fair value of trade receivables, trade payables, financial assets, bank
loans and overdraft is not materially different to their book value.
The basis of tax accounting under IAS 34 is different to the year ended 30
June 2017 because it is based on the effective rate expected for the year
ending 30 June 2018.
The following are new standards or improvements to existing standards that are
mandatory for the first time in the Group's accounting period beginning on 1
July 2017 and no new standards have been early adopted. The Group's December
2017 interim financial statements have adopted these amendments to IFRS, none
of which had any material impact on the Group's results or financial position:
Ÿ IAS 7 (amendments) Statement on Cashflows on Disclosure Initiative (effective
from 1 January 2017)
Ÿ IAS 12 (amendments) Income Taxes (effective from 1 January 2017)
There have been no alterations made to the accounting policies as a result of
considering all of the above amendments that became effective in the period,
as these were either not material or were not relevant.
The Group has not yet adopted certain new standards, amendments and
interpretations to existing standards, which have been published but which are
only effective for the Group accounting periods beginning on or after 1 July
2018. These new pronouncements are listed as follows:
Ÿ IFRS 2 (amendments) Share Based Payments (effective 1 January 2018)
Ÿ IFRS 9 Financial Instruments (effective 1 January 2018)
Ÿ IFRS 15 Revenue from Contracts and Customer (effective 1 January 2018)
Ÿ IFRS 15 (amendments) Revenue from Contracts and Customer (effective 1 January
2018)
Ÿ IFRS 16 Leases (effective 1 January 2019)
Ÿ Annual Improvements to IFRSs 2016 (effective 1 January 2018)
Ÿ IFRIC 22 Foreign Currency Transactions and Advance Consideration (effective 1
January 2018)
Ÿ IFRIC 23 Uncertainty over Income Tax Treatments (effective 1 January 2019)
Accounting policies continued
An assessment of the impact of IFRS 15 has been completed following a
comprehensive review of the contracts that exist across the Group's revenue
streams. The review has concluded that revenue recognition under IFRS 15 is
expected to be consistent with current practice for the Group's revenue and
had IFRS 15 been applied in the current reporting period, it would not have
had a material impact on the financial statements.
IFRS 16 is expected to have a significant impact on the amounts recognised in
the Group's Consolidated Financial Statements. On adoption of IFRS 16 the
Group will recognise within the balance sheet a right of use asset and lease
liability for all applicable leases. Within the income statement, operating
lease rentals payable will be replaced by depreciation and interest expense.
This will result in an increase in operating profit and an increase in finance
costs.
The standard will also impact a number of statutory measures such as operating
profit, and cash generated from operations, and alternative performance
measures used by the Group. The full impact of IFRS 16 is currently under
review, including understanding the practical application of the principles of
the standard. It is therefore not practical to provide a reasonable estimate
of the financial effect until this review is complete. IFRS 16 will become
effective in the Group's financial year 2020. The directors expect to be able
to provide an indication of the impact on the Group's financial statements by
30 June 2019.
IFRS 9 introduces a new classification approach for financial assets and
liabilities. The categories of financial assets will be reduced from four to
three and financial liabilities will be measured at amortised cost or fair
value through profit and loss. The standard also prescribes an 'expected
credit loss' model for determining the basis of providing for bad debts. The
directors do not expect this to have a material impact on the financial
statements.
The directors are currently evaluating the impact of the adoption of all other
standards, amendments and interpretations but do not expect them to have a
material impact on the Group operation or results.
The Group's principal accounting policies adopted in the presentation of these
financial statements are set out below and have been consistently applied to
all the periods presented.
Going concern
The Group's business activities, together with the factors likely to affect
its future development, performance and financial position, including its cash
flows and liquidity position are described in the Half Year Report.
The Group has an unsecured revolving credit facility of £210 million that
expires in April 2020. The Group uses the facility to manage its day-to-day
working capital requirements as appropriate. As at 31 December 2017, £130
million of the committed facility was un-drawn.
The Group's facility, together with internally generated cash flows, will
continue to provide sufficient sources of liquidity to fund its current
operations, including contractual and commercial commitments, future growth
and any proposed dividends. Therefore the Group is well placed to manage its
business risks.
After making enquiries, the directors have formed the judgment, at the time of
approving the interim financial statements, that there is reasonable
expectation that the Group has adequate resources to continue in operational
existence for the foreseeable future. For this reason, the directors continue
to adopt the going concern basis in preparing the interim financial
statements.
2 Segmental information
IFRS 8, Operating Segments
IFRS 8 requires operating segments to be identified on the basis of internal
reports about components of the Group that are regularly reviewed by the chief
operating decision maker to allocate resources to the segment and to assess
their performance.
As a result, the Group now segment the business into four regions, Australia
& New Zealand, Germany, United Kingdom & Ireland and Rest of World.
Therefore the comparative segmental reporting has been restated accordingly.
In the prior year, the business was reported as three regions (Asia Pacific,
Continental Europe & Rest of World, and United Kingdom & Ireland).
There is no material difference between the segmentation of the Group's
turnover by geographic origin and destination.
The Group's continuing operations comprise one class of business, that of
qualified, professional and skilled recruitment.
Net fees and profit from continuing operations
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 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 full detail of these items can be seen in the
Income Statement.
Net fees and profit from continuing operations
Six months to Six months to Year to
31 December 31 December 30 June
2017 2016 2017
(In £'s million) (unaudited) (unaudited) (audited)
Net fees from continuing operations
Australia & New Zealand 99.8 87.2 180.7
Germany 134.8 110.7 230.3
United Kingdom & Ireland 127.5 126.1 252.9
Rest of World 163.7 141.5 290.7
525.8 465.5 954.6
Operating profit from continuing operations
Australia & New Zealand 34.1 30.2 62.8
Germany 41.1 38.6 80.5
United Kingdom & Ireland 22.6 18.2 41.5
Rest of World 18.7 13.1 26.7
116.5 100.1 211.5
3 Net finance charge
Six months to Six months to Year to
31 December 31 December 30 June
2017 2016 2017
(In £'s million) (unaudited) (unaudited) (audited)
Interest received on bank deposits 0.3 0.3 0.6
Interest payable on bank loans and overdrafts (1.1) (1.5) (2.7)
Other interest payable - (0.8) (0.8)
Interest unwind on acquisition liability (0.6) (0.6) (1.1)
Pension Protection Fund levy (0.2) (0.3) (0.5)
Net interest on pension obligations (1.0) (1.0) (2.4)
Net finance charge (2.6) (3.9) (6.9)
4 Tax
The Group's consolidated effective tax rate in respect of continuing
operations for the six months to 31 December 2017 is based on the estimated
effective tax rate for the full year of 31.5% (31 December 2016: 32.0%, 30
June 2017: 32.0%).
5 Dividends
The following dividends were paid by the Group and have been recognised as
distributions to equity shareholders in the year:
Six months to Six months to Year to
31 December 31 December 30 June
2017 2016 2017
(In £'s million) (unaudited) (unaudited) (audited)
Final dividend for the year ended 30 June 2016 of 1.99 pence per share - 28.7 28.7
Interim dividend for the period to 31 December 2016 of 0.96 pence per share - - 13.9
Final dividend for the year ended 30 June 2017 of 2.26 pence per share 32.7 - -
Special dividend for the year ended 30 June 2017 of 4.25 pence per share 61.6 - -
94.3 28.7 42.6
The interim dividend for the period end
business, that of qualified, professional and skilled
recruitment.
Net fees and profit from continuing operations
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 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 full detail of these items can be seen in the
Income Statement.
Net fees and profit from continuing operations
Six months to Six months to Year to
31 December 31 December 30 June
2017 2016 2017
(In £'s million) (unaudited) (unaudited) (audited)
Net fees from continuing operations
Australia & New Zealand 99.8 87.2 180.7
Germany 134.8 110.7 230.3
United Kingdom & Ireland 127.5 126.1 252.9
Rest of World 163.7 141.5 290.7
525.8 465.5 954.6
Operating profit from continuing operations
Australia & New Zealand 34.1 30.2 62.8
Germany 41.1 38.6 80.5
United Kingdom & Ireland 22.6 18.2 41.5
Rest of World 18.7 13.1 26.7
116.5 100.1 211.5
3 Net finance charge
Six months to Six months to Year to
31 December 31 December 30 June
2017 2016 2017
(In £'s million) (unaudited) (unaudited) (audited)
Interest received on bank deposits 0.3 0.3 0.6
Interest payable on bank loans and overdrafts (1.1) (1.5) (2.7)
Other interest payable - (0.8) (0.8)
Interest unwind on acquisition liability (0.6) (0.6) (1.1)
Pension Protection Fund levy (0.2) (0.3) (0.5)
Net interest on pension obligations (1.0) (1.0) (2.4)
Net finance charge (2.6) (3.9) (6.9)
4 Tax
The Group's consolidated effective tax rate in respect of
continuing operations for the six months to 31 December 2017 is
based on the estimated effective tax rate for the full year of
31.5% (31 December 2016: 32.0%, 30 June 2017: 32.0%).
5 Dividends
The following dividends were paid by the Group and have been
recognised as distributions to equity shareholders in the year:
Six months to Six months to Year to
31 December 31 December 30 June
2017 2016 2017
(In £'s million) (unaudited) (unaudited) (audited)
Final dividend for the year ended 30 June 2016 of 1.99 pence per - 28.7 28.7
share
Interim dividend for the period to 31 December 2016 of 0.96 - - 13.9
pence per share
Final dividend for the year ended 30 June 2017 of 2.26 pence per 32.7 - -
share
Special dividend for the year ended 30 June 2017 of 4.25 pence 61.6 - -
per share
94.3 28.7 42.6
The interim dividend for the period ended 31 December 2017 of
1.06 pence per share is not included as a liability in the
balance sheet as at 31 December 2017.
6 Earnings per share
Six months to Six months to Year to
31 December 31 December 30 June
2017 2016 2017
(In £'s million) (unaudited) (unaudited) (audited)
Earnings from continuing operations 113.9 96.2 204.6
Tax on earnings from continuing operations (35.9) (30.8) (65.5)
Basic earnings 78.0 65.4 139.1
Number of shares (million):
Weighted average number of shares 1,446.4 1,438.8 1,440.7
Dilution effect of share options 16.2 15.3 18.1
Weighted average number of shares used for diluted EPS 1,462.6 1,454.1 1,458.8
From continuing operations:
Basic earnings per share 5.39p 4.55p 9.66p
Diluted earnings per share 5.33p 4.50p 9.54p
7 Retirement benefit surplus/obligations
Six months to Six months to Year to
31 December 31 December 30 June
2017 2016 2017
(In £'s million) (unaudited) (unaudited) (audited)
Deficit in the scheme brought forward (0.2) (14.3) (14.3)
Administration cost (1.0) (0.8) (2.2)
Employer contributions 7.7 7.4 14.8
Net interest expense - (0.2) (0.2)
Remeasurement of the net defined benefit liability 11.2 (12.6) 1.7
Surplus/(deficit) in the scheme carried forward 17.7 (20.5) (0.2)
8 Provisions
(In £'s million) Discontinued Continuing Total
At 1 July 2017 6.6 2.2 8.8
Credited to income statement - (1.2) (1.2)
At 31 December 2017 (unaudited) ed 31 December 2017 of 1.06 pence per
share is not included as a liability in the balance sheet as at 31 December
2017.
6 Earnings per share
Six months to Six months to Year to
31 December 31 December 30 June
2017 2016 2017
(In £'s million) (unaudited) (unaudited) (audited)
Earnings from continuing operations 113.9 96.2 204.6
Tax on earnings from continuing operations (35.9) (30.8) (65.5)
Basic earnings 78.0 65.4 139.1
Number of shares (million):
Weighted average number of shares 1,446.4 1,438.8 1,440.7
Dilution effect of share options 16.2 15.3 18.1
Weighted average number of shares used for diluted EPS 1,462.6 1,454.1 1,458.8
From continuing operations:
Basic earnings per share 5.39p 4.55p 9.66p
Diluted earnings per share 5.33p 4.50p 9.54p
7 Retirement benefit surplus/obligations
Six months to Six months to Year to
31 December 31 December 30 June
2017 2016 2017
(In £'s million) (unaudited) (unaudited) (audited)
Deficit in the scheme brought forward (0.2) (14.3) (14.3)
Administration cost (1.0) (0.8) (2.2)
Employer contributions 7.7 7.4 14.8
Net interest expense - (0.2) (0.2)
Remeasurement of the net defined benefit liability 11.2 (12.6) 1.7
Surplus/(deficit) in the scheme carried forward 17.7 (20.5) (0.2)
8 Provisions
(In £'s million) Discontinued Continuing Total
At 1 July 2017 6.6 2.2 8.8
Credited to income statement - (1.2) (1.2)
At 31 December 2017 (unaudited) 6.6 1.0 7.6
Current 1.2
Non-current 6.4
7.6
Discontinued provisions comprise of potential exposures arising as a result of
the business disposals that were completed in 2004, together with deferred
employee benefits relating to former employees.
9 Movement in net cash
31 December
1 July Cash Exchange 2017
(In £'s million) 2017 flow movement (unaudited)
Cash and cash equivalents 112.0 3.8 (1.3) 114.5
Bank loans and overdrafts (0.4) (79.6) - (80.0)
Net cash 111.6 (75.8) (1.3) 34.5
The table above is presented as additional information to show movement in net
cash, defined as cash and cash equivalents less bank loans and overdrafts.
The Group's £210 million unsecured revolving credit facility expires in April
2020. The financial covenants require the Group's interest cover ratio to be
at least 4:1 and its leverage ratio (net debt to EBITDA) to be no greater than
2.5:1. The interest rate of the facility is based on a ratchet mechanism with
a margin payable over LIBOR in the range of 0.90% to 1.55%.
As at 31 December 2017, £130 million of the committed facility was undrawn.
10 Events after the balance sheet date
On 19 January 2018, Hays exercised the option to acquire the remaining 20%
shareholding of Veredus Holdings inc. in the USA and paid $18.5 million
(£13.7 million) to the remaining shareholders. Hays now owns 100% of the
business. An acquisition liability of £13.7 million was held on the balance
sheet as at 31 December 2017 in respect of this payment. There are no other
significant events after the balance sheet date to report.
11 Like-for-like results
Like-for-like results represent organic growth of continuing activities at
constant currency. For the six months ended 31 December 2017 these are
calculated as follows:
31 December
Six months to Foreign 2016 Six months to
31 December exchange at constant Organic 31 December
(In £'s million) 2016 impact currency growth 2017
Net Fees
Australia & New Zealand 87.2 (0.1) 87.1 12.7 99.8
Germany 110.7 4.4 115.1 19.7 134.8
United Kingdom & Ireland 126.1 0.2 126.3 1.2 127.5
Rest of World 141.5 1.4 142.9 20.8 163.7
Group net fees (unaudited) 465.5 5.9 471.4 54.4 525.8
Operating Profit
Australia & New Zealand 30.2 - 30.2 3.9 34.1
Germany 38.6 1.5 40.1 1.0 41.1
United Kingdom & Ireland 18.2 - 18.2 4.4 22.6
Rest of World 13.1 0.4 13.5 5.2 18.7
Group profit from operations (unaudited) 100.1 1.9 102.0 14.5 116.5
12 Like-for-like results H1 analysis by division
Net fee growth versus same period last year Q1 Q2 H1
2018 2018 2018
(unaudited) (unaudited) (unaudited)
Australia & New Zealand 13% 14% 15%
Germany 15% 19% 17%
United Kingdom & Ireland 1% 1% 1%
Rest of World 12% 17% 15%
Group 10% 13% 12%
H1 2018 is the period from 1 July 2017 to 31 December 2017.
The Q1 and Q2 net fee like-for-like growth percentages are as reported in the
Q1 and the Q2 Quarterly Updates.
This information is provided by RNS
The company news service from the London Stock Exchange
6.6 1.0 7.6
Current 1.2
Non-current 6.4
7.6
Discontinued provisions comprise of potential exposures arising
as a result of the business disposals that were completed in
2004, together with deferred employee benefits relating to
former employees.
9 Movement in net cash
31 December
1 July Cash Exchange 2017
(In £'s million) 2017 flow movement (unaudited)
Cash and cash equivalents 112.0 3.8 (1.3) 114.5
Bank loans and overdrafts (0.4) (79.6) - (80.0)
Net cash 111.6 (75.8) (1.3) 34.5
The table above is presented as additional information to show
movement in net cash, defined as cash and cash equivalents less
bank loans and overdrafts.
The Group's £210 million unsecured revolving credit facility
expires in April 2020. The financial covenants require the
Group's interest cover ratio to be at least 4:1 and its leverage
ratio (net debt to EBITDA) to be no greater than 2.5:1. The
interest rate of the facility is based on a ratchet mechanism
with a margin payable over LIBOR in the range of 0.90% to 1.55%.
As at 31 December 2017, £130 million of the committed facility
was undrawn.
10 Events after the balance sheet date
On 19 January 2018, Hays exercised the option to acquire the
remaining 20% shareholding of Veredus Holdings inc. in the USA
and paid $18.5 million (£13.7 million) to the remaining
shareholders. Hays now owns 100% of the business. An acquisition
liability of £13.7 million was held on the balance sheet as at
31 December 2017 in respect of this payment. There are no other
significant events after the balance sheet date to report.
11 Like-for-like results
Like-for-like results represent organic growth of continuing
activities at constant currency. For the six months ended 31
December 2017 these are calculated as follows:
31 December
Six months to Foreign 2016 Six months to
31 December exchange at constant Organic 31 December
(In £'s million) 2016 impact currency growth 2017
Net Fees
Australia & New Zealand 87.2 (0.1) 87.1 12.7 99.8
Germany 110.7 4.4 115.1 19.7 134.8
United Kingdom & Ireland 126.1 0.2 126.3 1.2 127.5
Rest of World 141.5 1.4 142.9 20.8 163.7
Group net fees (unaudited) 465.5 5.9 471.4 54.4 525.8
Operating Profit
Australia & New Zealand 30.2 - 30.2 3.9 34.1
Germany 38.6 1.5 40.1 1.0 41.1
United Kingdom & Ireland 18.2 - 18.2 4.4 22.6
Rest of World 13.1 0.4 13.5 5.2 18.7
Group profit from operations (unaudited) 100.1 1.9 102.0 14.5 116.5
12 Like-for-like results H1 analysis by division
Net fee growth versus same period last year Q1 Q2 H1
2018 2018 2018
(unaudited) (unaudited) (unaudited)
Australia & New Zealand 13% 14% 15%
Germany 15% 19% 17%
United Kingdom & Ireland 1% 1% 1%
Rest of World 12% 17% 15%
Group 10% 13% 12%
H1 2018 is the period from 1 July 2017 to 31 December 2017.
The Q1 and Q2 net fee like-for-like growth percentages are as
reported in the Q1 and the Q2 Quarterly Updates.
This information is provided by RNS
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