REG - Hays PLC - Half Yearly Report <Origin Href="QuoteRef">HAYS.L</Origin> - Part 3

HaysAnnouncement

25/02/2015 07:01

- Part 3: For the preceding part double click  ID:nRSY7756Fb 

                                                                                                                                                                                                                                                            2014         2013         2014         
 (In £'s million)                                                                                                                                                                                                                                                                                                                                                                                                                                                            (unaudited)  (unaudited)  (audited)    
 Deficit in the scheme brought forward                                                                                                                                                                                                                                                                                                                                                                                                                                       (43.9)       (33.0)       (33.0)       
 Current service cost                                                                                                                                                                                                                                                                                                                                                                                                                                                        (0.6)        (0.7)        (1.3)        
 Employer contributions                                                                                                                                                                                                                                                                                                                                                                                                                                                      7.0          6.6          13.5         
 Net interest expense                                                                                                                                                                                                                                                                                                                                                                                                                                                        (0.9)        (0.7)        (1.3)        
 Remeasurement of the net defined benefit liability                                                                                                                                                                                                                                                                                                                                                                                                                          (54.5)       (34.1)       (21.8)       
 Deficit in the scheme carried forward                                                                                                                                                                                                                                                                                                                                                                                                                                       (92.9)       (61.9)       (43.9)       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 8                                                                                                                                                                                                                                                                                                                                                                                                                                      Provisions                                                                               
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 (In £'s million)                                                                                                                                                                                                                                                                                                                                                                                                                                                            Property     Other        Total        
 At 1 July 2014                                                                                                                                                                                                                                                                                                                                                                                                                                                              5.3          10.1         15.4         
 Utilised                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 (0.2)        (0.1)        (0.3)        
 At 31 December 2014                                                                                                                                                                                                                                                                                                                                                                                                                                                         5.1          10.0         15.1         
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 Current                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            3.1          
 Non-current                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           12.0         
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 15.1         
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 Provisions relate to continuing and discontinued operations. Property provisions are for rents and other related amounts payable on certain freehold and leased properties for periods in which they are not anticipated to be in use by the Group. The leases expire in periods up to 2015 and the amounts will be paid over this period.                                                                                             
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 Other provisions include potential warranty and environmental claim liabilities arising as a result of the business disposals that were concluded in 2004.                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 9                                                                                                                                                                                                                                                                                                                                                                                                                                      Movement in net debt                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          1 July       Cash         Exchange     31 December  
 (In £'s million)                                                                                                                                                                                                                                                                                                                                                                                                                       2014                                 flow         movement     2014         
 Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                              48.0                                 11.0         (2.5)        56.5         
 Bank loans and overdrafts                                                                                                                                                                                                                                                                                                                                                                                                              (110.7)                              (25.0)       -            (135.7)      
 Net debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (62.7)       (14.0)       (2.5)        (79.2)       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 The table above is presented as additional information to show movement in net debt, defined as cash and cash equivalents less bank loans and overdrafts.                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 The Group's £300 million unsecured revolving credit facility expires in October 2017. 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 covenants were comfortably met throughout the period with significant headroom. The interest rate of the facility is based on a ratchet mechanism with a margin payable over    
 LIBOR in the range of 1.85% to 2.40%.                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 As at 31 December 2014, £165 million of the committed facility was un-drawn