REG - Inchcape PLC - 2015 Annual Results Announcement <Origin Href="QuoteRef">INCH.L</Origin> - Part 2
15/03/2016 07:05
- Part 2: For the preceding part double click ID:nRSO0680Sa
expect the robust UK economy, coupled with factors unique to the automotive
market, such as PCP financing, to support further industry growth in 2016
although to a more moderate level. Our Aftersales operations will continue to
benefit from the growth in the 1-5 year Car Parc.
The momentum in the UK market coupled with our focus on superior customer
service lead us to expect to deliver a solid performance in the UK in 2016.
Emerging Markets
Strong performance drives profitable growth
Key financial highlights
£m2015 £m2014 % change % change in constantcurrency
Sales 1,103.9 1,317.0 (16.2%) 0.2%
Retail 669.3 898.4 (25.5%) (4.8%)
Distribution 434.6 418.6 3.8% 9.0%
Like for like sales 1,099.2 1,306.2 (15.8%) 0.4%
Retail 666.6 887.6 (24.9%) (4.2%)
Distribution 432.6 418.6 3.3% 8.5%
Trading profit 50.9 43.7 16.5% 18.3%
Retail 2.2 3.7 (40.5%) (32.6%)
Distribution 48.7 40.0 21.8% 22.4%
Trading margin % 4.6% 3.3% 1.3ppt 0.7ppt
Retail 0.3% 0.4% (0.1ppt) (0.1ppt)
Distribution 11.2% 9.6% 1.6ppt 1.2ppt
Market
In our Distribution markets, Ethiopia remains a highly attractive, fast
growing market with growing demand for New cars and Aftersales. South America
has been challenging, with declining markets for premium cars in both Chile
and Peru driven by the slowdown in the commodity cycle. In Eastern Europe, we
benefited from growing demand in the Balkans and Baltics.
In our Retail markets, the Russian market has continued to contract, declining
35.7% year-on-year driven by a weak rouble and a challenging economic
environment. However we benefited from growing demand in Poland and demand for
premium cars in our Chinese business remained robust.
Business model
In Ethiopia, we operate as the Distributor and Retailer for Toyota, Daihatsu,
Komatsu and New Holland. In South America, we operate as the Distributor and
Retailer for BMW in Peru and for BMW and Rolls-Royce in Chile.
In the Balkans, we are the Distributor for Toyota and Lexus, operating six
retail centres. We operate as the Distributor and Retailer for Mazda, Jaguar
and Land Rover across the Baltics and for Mitsubishi in Lithuania.
Additionally, we retail BMW, Ford and MINI in Latvia and Ford and Hyundai in
Lithuania. We operate a total of 23 centres across the region.
In Russia, we operate 21 retail centres in St. Petersburg and Moscow,
representing 9 brands, having exited loss-making Peugeot operations in St
Petersburg. In Poland we own four retail centres for BMW and MINI. In China,
we have four scale retail centres for Lexus, Jaguar and Land Rover in Shanghai
and Shaoxing and one retail centre each in Nanchang for Porsche and Jiujiang
for Mercedes.
Operating performance
Overall revenue for the region was broadly flat to last year as a 13.5%
decline in Russia offset growth across the rest of the portfolio.
Our business in Africa drove particularly strong growth both in New Car sales
and Aftersales as we opened new facilities to capitalise on the continued
underlying economic growth.
In South America, we continue to drive share gains in a declining New car
market and to develop and grow the profitable Aftersales business.
Market growth in the Balkans enabled us to drive a strong trading profit.
With growth in market share and improved vehicle margins in our Russia
business, we delivered a trading loss of £2.0m which was a creditable
performance in a very challenging market.
In Poland we had a strong trading performance driven by successful new product
launches, improved market share and a backdrop of continued industry growth.
Our business in China improved its trading profit as the facilities matured
and gained scale.
The segment delivered strong trading profit, up 18.3% to £50.9m in 2015 with
70bps of trading margin expansion driven by strong margin growth in Africa and
the Balkans.
Outlook for 2016
In Ethiopia, we will continue to benefit from the strong underlying economic
environment and our recent investments in new facilities. In South America, we
anticipate a continuation of subdued consumer confidence against the backdrop
of continued economic weakness, but expect to continue to outperform the
market as we capitalise on our investments in the region. We expect to deliver
a resilient performance in our Russian business, despite the uncertain
economic environment, retaining good vehicle margins and leveraging our
defensive Aftersales operations.
Overall, we expect our Emerging Markets segment to deliver a solid performance
in 2016.
CENTRAL COSTS
Unallocated central costs for the full year are £30.0m before exceptional
items (2014: £26.2m). Our costs remain well controlled with moderate
inflationary increases in our underlying operational costs. Foreign exchange
gains reclassified from other comprehensive income following the liquidation
of overseas subsidiaries were offset by a charge to operating profit arising
from corrections to historic account balances in South America.
JOINT VENTURES AND ASSOCIATES
The Group has reported a £0.7m profit after tax from joint ventures in 2015
(2014: a loss of £1.9m).
OPERATING EXCEPTIONAL ITEMS
In 2015, the Group has recorded a £49.5m non-cash exceptional impairment on
the carrying value of goodwill attributable to our Russian business. This
follows an impairment charge of £47.4m in 2014.
NET FINANCING COSTS
Net financing costs, at £13.3m, are the same as last year. In 2015, the Group
reported a gain of £0.9m (2014: a gain of £1.5m) in our mark to market
reporting of the hedges for the Private Placement loan notes and net interest
income on pension assets of £4.2m (2014: net income of £5.1m).
TAX
As forecast, the effective tax rate for the year before exceptional items was
24%, the same as 2014 (excluding the tax free property gain in South Asia). We
expect the effective rate to increase marginally for 2016. The Group has
recorded an exceptional deferred tax charge of £4.8m relating to the
derecognition of the net deferred tax asset related to our Russian business
(see note 6).
NON CONTROLLING INTERESTS
Profits attributable to our non-controlling interests were £7.1m, compared to
£7.6m in 2014. At year end, the Group's non-controlling interests principally
comprised a 33% minority holding in UAB Vitvela in Lithuania, a 30% share in
NBT Brunei, a 10% share of Subaru Australia and 6% of the Motor & Engineering
Company of Ethiopia.
FOREIGN CURRENCY
During 2015, the translation of the Group's overseas profits before tax into
sterling at the 2015 average exchange rate negatively impacted the year's
results by £1.0m (2014: £20.9m).
DIVIDEND
The Board recommends a final ordinary dividend of 14.1p per ordinary share
which is subject to the approval of shareholders at the Annual General Meeting
on 26 May 2016. This gives a total dividend for the year of 20.9p per ordinary
share (2014: 20.1p). In future, the interim dividend will be set by a formula,
and will be equivalent to 33% of the total dividend for the previous year.
PENSIONS
In 2015, the IAS 19 net post-retirement surplus was £98.9m (2014: £119.3m)
and, in line with the funding programme agreed with the Trustees, the Group
made additional cash contributions to the UK pension schemes amounting to
£1.7m (2014: £1.7m). We have agreed with the Trustees that future cash
contributions will continue at broadly this level.
Following the closure of the UK defined benefit pension schemes to future
accrual in 2012, the Group has taken various steps to reduce its exposure to
the associated defined benefit obligations. In November, the TKM Group Pension
Scheme completed a buy-in transaction whereby the assets of the scheme were
invested in a bulk insurance annuity contract that matches the benefits
payable to the members of the scheme. The contract has been structured to
enable the scheme, in time, to move to a full buy-out, following which the
insurance company will become directly responsible for the pension payments
under the scheme.
ACQUISITIONS AND DISPOSALS
During 2015, the Group acquired one retail centre in the UK for £5.1m and
disposed of non-core businesses in Australia and its interest in Excelease,
generating disposal proceeds of £5.4m. In 2014, the Group disposed of
multi-franchise dealerships in Finland and Australia generating disposal
proceeds of £1.9m.
CAPITAL EXPENDITURE
During the year, the Group invested £53.6m (2014: £35.0m) of net capital
expenditure in the development of greenfield sites and the enlargement of
existing facilities, primarily in the UK, Asia Pacific and the Emerging
Markets. Included within the 2014 total was the disposal of a property in
Singapore for £21.6m.
CASH FLOW AND NET FUNDS
Working capital ended the year at £24.4m (2014: £(16.2)m) following the
normalisation of last year's abnormally low position. At the end of 2015, the
Group had net funds of £166.4m (2014: £210.2m) after buying back shares at a
cost of £91.4m. At the end of 2015 we have £58.6m of outstanding from the
share buy-back programme announced at our Interim Results.
Consolidated income statement
For the year ended 31 December 2015
Notes Before exceptionalitems Exceptional items Total Before exceptional items Exceptional items Total
2015 (note 3) 2015 2014 (note 3) 2014
£m 2015 £m £m 2014 £m
£m £m
Revenue 2 6,836.3 - 6,836.3 6,702.7 - 6,702.7
Cost of sales (5,847.5) - (5,847.5) (5,749.1) - (5,749.1)
Gross profit 988.8 - 988.8 953.6 - 953.6
Net operating expenses (664.1) (49.5) (713.6) (635.2) (47.4) (682.6)
Operating profit 2 324.7 (49.5) 275.2 318.4 (47.4) 271.0
Share of profit / (loss) after tax of joint ventures and associates 0.7 - 0.7 (1.9) - (1.9)
Profit before finance and tax 325.4 (49.5) 275.9 316.5 (47.4) 269.1
Finance income 4 14.4 - 14.4 14.8 - 14.8
Finance costs 5 (27.7) - (27.7) (28.1) - (28.1)
Profit before tax 312.1 (49.5) 262.6 303.2 (47.4) 255.8
Tax 6 (74.9) (4.8) (79.7) (68.6) - (68.6)
Profit for the year 237.2 (54.3) 182.9 234.6 (47.4) 187.2
Profit attributable to:
- Owners of the parent 175.8 179.6
- Non-controlling interests 7.1 7.6
182.9 187.2
Basic earnings per share (pence) 7 39.8p 39.7p
Diluted earnings per share (pence) 7 39.4p 39.0p
Consolidated statement of comprehensive income
For the year ended 31 December 2015
2015 2014
£m £m
Profit for the year 182.9 187.2
Other comprehensive income:
Items that will not be reclassified to the consolidated income statement
Defined benefit pension scheme remeasurements (26.8) 2.5
Joint venture defined benefit pension scheme remeasurements - (0.2)
Deferred tax recognised in consolidated statement of comprehensive income 1.2 (0.9)
(25.6) 1.4
Items that may be or have been reclassified subsequently to the consolidated income statement
Cash flow hedges 25.9 (17.4)
Fair value losses on available for sale financial assets - (0.3)
Effect of foreign exchange rate changes (49.9) (180.6)
Deferred tax recognised in consolidated statement of comprehensive income (7.7) 5.2
(31.7) (193.1)
Other comprehensive loss for the year, net of tax (57.3) (191.7)
Total comprehensive income / (loss) for the year 125.6 (4.5)
Total comprehensive income / (loss) attributable to:
- Owners of the parent 117.7 (10.3)
- Non-controlling interests 7.9 5.8
125.6 (4.5)
Consolidated statement of financial position
As at 31 December 2015
2015 2014
£m £m
Non-current assets
Intangible assets 418.4 471.6
Property, plant and equipment 644.0 657.6
Investments in joint ventures and associates 5.3 9.0
Available for sale financial assets 1.2 1.2
Trade and other receivables 47.2 28.3
Deferred tax assets 18.7 25.7
Retirement benefit asset 124.3 147.8
1,259.1 1,341.2
Current assets
Inventories 1,224.4 999.2
Trade and other receivables 327.8 285.2
Available for sale financial assets 0.2 0.2
Derivative financial instruments 134.5 102.6
Current tax assets 4.0 3.0
Cash and cash equivalents 473.8 528.2
2,164.7 1,918.4
Assets held for sale and disposal group 4.5 8.9
2,169.2 1,927.3
Total assets 3,428.3 3,268.5
Current liabilities
Trade and other payables (1,566.1) (1,300.7)
Derivative financial instruments (3.6) (28.3)
Current tax liabilities (70.7) (63.9)
Provisions (22.7) (28.7)
Borrowings (103.3) (112.2)
(1,766.4) (1,533.8)
Non-current liabilities
Trade and other payables (12.8) (14.8)
Provisions (26.5) (25.6)
Derivative financial instruments - (1.6)
Deferred tax liabilities (43.8) (40.2)
Borrowings (311.5) (305.9)
Retirement benefit liability (25.4) (28.5)
(420.0) (416.6)
Total liabilities (2,186.4) (1,950.4)
Net assets 1,241.9 1,318.1
Equity
Share capital 43.8 45.0
Share premium 146.7 146.7
Capital redemption reserve 136.8 135.6
Other reserves (215.1) (182.6)
Retained earnings 1,106.8 1,148.2
Equity attributable to owners of the parent 1,219.0 1,292.9
Non-controlling interests 22.9 25.2
Total equity 1,241.9 1,318.1
Consolidated statement of changes in equity
For the year ended 31 December 2015
Notes Share capital Share premium Capital redemption reserve Other reserves Retained earnings Equity attributable to owners of the parent Non controlling interests Total
£m £m £m (note 25) (note 26) £m £m shareholders'
£m £m equity
£m
At 1 January 2014 46.5 145.7 134.1 8.7 1,135.0 1,470.0 29.2 1,499.2
Profit for the year - - - - 179.6 179.6 7.6 187.2
Other comprehensive (loss) / - - - (191.3) 1.4 (189.9) (1.8) (191.7)
income for the year
Total comprehensive (loss) / - - - (191.3) 181.0 (10.3) 5.8 (4.5)
income for the year
Share-based payments, net of tax - - - - 12.5 12.5 - 12.5
Share buy back programme (1.5) - 1.5 - (100.0) (100.0) - (100.0)
Net disposal of own shares by the Inchcape Employee Trust - - - - 1.2 1.2 - 1.2
Issue of ordinary share capital - 1.0 - - - 1.0 - 1.0
Dividends:
- Owners of the parent 8 - - - - (81.5) (81.5) - (81.5)
- Non-controlling interests - - - - - - (9.8) (9.8)
At 1 January 2015 45.0 146.7 135.6 (182.6) 1,148.2 1,292.9 25.2 1,318.1
Profit for the year - - - - 175.8 175.8 7.1 182.9
Other comprehensive (loss) / - - - (32.5) (25.6) (58.1) 0.8 (57.3)
income for the year
Total comprehensive income / - - - (32.5) 150.2 117.7 7.9 125.6
(loss) for the year
Share-based payments, net of tax - - - - 9.8 9.8 - 9.8
Share buy back programme (1.2) - 1.2 - (91.4) (91.4) - (91.4)
Net purchase of own shares by the Inchcape Employee Trust - - - - (18.9) (18.9) - (18.9)
Dividends:
- Owners of the parent 8 - - - - (91.1) (91.1) - (91.1)
- Non-controlling interests - - - - - - (10.2) (10.2)
At 31 December 2015 43.8 146.7 136.8 (215.1) 1,106.8 1,219.0 22.9 1,241.9
Share-based payments include a net tax credit of £0.2m (current tax credit of
£2.0m and a deferred tax charge of £1.8m) (2014 - deferred tax credit of
£3.0m).
Consolidated statement of cash flows
For the year ended 31 December 2015
Notes 2015 2014
£m £m
Cash flows from operating activities
Cash generated from operations 9a 328.4 405.8
Tax paid (69.6) (52.5)
Interest received 10.1 13.5
Interest paid (27.5) (31.3)
Net cash generated from operating activities 241.4 335.5
Cash flows from investing activities
Acquisition of businesses, net of cash and overdrafts acquired 10 (5.1) 3.6
Net cash inflow from sale of businesses 10 5.4 1.9
Purchase of property, plant and equipment (50.2) (48.5)
Purchase of intangible assets (19.0) (21.3)
Proceeds from disposal of property, plant and equipment 15.6 34.8
Net disposal of available for sale financial assets - 7.9
Dividends received from joint ventures and associates - 2.2
Net cash used in investing activities (53.3) (19.4)
Cash flows from financing activities
Proceeds from issue of ordinary shares - 1.0
Share buy back programme (91.4) (100.0)
Net (purchase) / disposal of own shares by the Inchcape Employee Trust (18.9) 1.2
Net cash inflow from borrowings 3.7 0.1
Payment of capital element of finance leases (0.5) (1.2)
Equity dividends paid 8 (91.1) (81.5)
Dividends paid to non-controlling interests (10.2) (9.8)
Net cash used in financing activities (208.4) (190.2)
Net (decrease) / increase in cash and cash equivalents 9b (20.3) 125.9
Cash and cash equivalents at the beginning of the year 416.8 332.2
Effect of foreign exchange rate changes (21.2) (41.3)
Cash and cash equivalents at the end of the year 375.3 416.8
Notes 2015 2014
£m £m
Cash and cash equivalents consist of:
- Cash at bank and cash equivalents 335.3 368.9
- Short-term deposits 138.5 159.3
- Bank overdrafts (98.5) (111.4)
375.3 416.8
Notes to the financial statements
1 BASIS OF PREPARATION AND ACCOUNTING POLICIES
The consolidated financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by the European
Union and International Financial Reporting Interpretation Committee (IFRIC)
interpretations and with those parts of the Companies Act 2006 applicable to
companies reporting under IFRS.
The condensed set of consolidated financial information has been prepared on a
going concern basis and has adopted accounting policies consistent with those
of the Group's Annual Report and Accounts 2014.
The condensed set of financial information presented for the years ended 31
December 2014 and 2015 do not constitute statutory accounts within the meaning
of Section 434 of the Companies Act 2006. The Group's published consolidated
financial statements for the year ended 31 December 2014 have been reported on
by the Group's auditors and filed with the Registrar of Companies. The report
of the auditors was unqualified and did not contain an emphasis of matter
paragraph or a statement under Section 498 of the Companies Act 2006. The
financial information for the year ended 31 December 2015 and the comparative
information have been extracted from the audited consolidated financial
statements for the year ended 31 December 2015 prepared under IFRS, which have
not yet been approved by the shareholders and have not yet been delivered to
the Registrar. The report of the auditors on the consolidated financial
statements for 2015 was unqualified and did not contain a statement under
Section 498 (2) or (3) of the Companies Act 2006.
2 SEGMENTAL ANALYSIS
The Group has determined that the chief operating decision maker is the
Executive Committee.
Emerging markets are those countries in which the Group operates that have
started to grow but have yet to reach a mature stage
of development and accordingly are in or are expected to return to the growth
phase of their development cycle. These currently comprise Russia, China, the
Balkans, the Baltics, Poland, South America and Africa.
The Group's reported segments are based on the location of the Group's assets.
Revenue earned from sales is disclosed by origin
and is not materially different from revenue by destination.
Transfer prices between segments are set on an arm's length basis.
Distribution comprises Vertically Integrated Retail businesses as well as
Financial Services and other businesses.
Distribution
2015 Australasia Europe North Asia South Asia United Kingdom Emerging Markets Total Distribution
£m £m £m £m £m £m £m
Revenue
Total revenue 761.4 577.6 746.2 500.0 62.8 466.6 3,114.6
Inter-segment revenue (183.7) (124.5) - - - (32.0) (340.2)
Revenue from third parties 577.7 453.1 746.2 500.0 62.8 434.6 2,774.4
Results
Segment result 67.0 17.9 80.0 51.9 11.4 48.7 276.9
Operating exceptional items - - - - - - -
Operating profit / (loss) after 67.0 17.9 80.0 51.9 11.4 48.7 276.9
exceptional items
Share of profit after tax of joint ventures - 0.7 - - - - 0.7
and associates
Profit / (loss) before finance and tax 67.0 18.6 80.0 51.9 11.4 48.7 277.6
Finance income
Finance costs
Profit before tax
Tax
Profit for the year
Retail
2015 Australasia Europe United Kingdom Emerging Markets Total Total pre Central Central Total
£m £m £m £m Retail £m £m £m
£m
Revenue
Total revenue 642.2 88.0 2,662.4 669.3 4,061.9 7,176.5 - 7,176.5
Inter-segment revenue - - - - - (340.2) - (340.2)
Revenue from third parties 642.2 88.0 2,662.4 669.3 4,061.9 6,836.3 - 6,836.3
Results
Segment result 23.6 - 52.0 2.2 77.8 354.7 (30.0) 324.7
Operating exceptional items - - - (49.5) (49.5) (49.5) - (49.5)
Operating profit / (loss) after 23.6 - 52.0 (47.3) 28.3 305.2 (30.0) 275.2
exceptional items
Share of profit after tax of joint ventures - - - - - 0.7 - 0.7
and associates
Profit / (loss) before finance and tax 23.6 - 52.0 (47.3) 28.3 305.9 (30.0) 275.9
Finance income 14.4
Finance costs (27.7)
Profit before tax 262.6
Tax (79.7)
Profit for the year 182.9
Net finance costs of £13.3m are not allocated to individual segments.
Distribution
2015 Australasia Europe North Asia South Asia United Kingdom Emerging Markets Total Distribution
£m £m £m £m £m £m £m
Segment assets and liabilities
Segment assets 90.9 128.0 157.2 126.5 40.6 173.8 717.0
Other current assets
Non-current assets
Segment liabilities (218.6) (102.1) (123.3) (109.6) (50.2) (140.8) (744.6)
Other liabilities
Net assets
Segment assets include net inventory, receivables and derivative assets.
Segment liabilities include payables, provisions and derivative liabilities.
Distribution
2015 Australasia Europe North Asia South Asia United Kingdom Emerging Markets Total Distribution
£m £m £m £m £m £m £m
Other segment items
Capital expenditure:
- Property, plant and equipment 1.9 0.5 3.8 9.1 0.1 6.5 21.9
- Interest in leased vehicles - 0.1 13.7 - 6.7 8.8 29.3
- Intangible assets 2.4 0.5 1.6 0.7 0.1 0.2 5.5
Depreciation:
- Property, plant and equipment 2.6 0.7 3.0 2.3 0.2 4.4 13.2
- Interest in leased vehicles - 0.2 3.7 - 4.6 1.2 9.7
Amortisation of intangible assets 0.4 0.7 2.0 1.3 0.2 0.2 4.8
Goodwill impairment - - - - - - -
Net provisions charged / (credited) to the consolidated income statement 6.3 4.5 1.5 5.2 (0.1) 1.7 19.1
Net provisions include inventory, trade receivables impairment and other
liability provisions.
Retail
2015 Australasia Europe United Kingdom Emerging Markets Total Total
£m £m £m £m Retail £m
£m
Segment assets and liabilities
Segment assets 115.5 16.7 639.1 127.4 898.7 1,615.7
Other current assets 600.5
Non-current assets 1,212.1
Segment liabilities (115.4) (12.1) (637.4) (86.4) (851.3) (1,595.9)
Other liabilities (590.5)
Net assets 1,241.9
Segment assets include net inventory, receivables and derivative assets.
Segment liabilities include payables, provisions and derivative liabilities.
Retail
2015 Australasia Europe United Kingdom Emerging Markets Total Total pre Central Central Total
£m £m £m £m Retail £m £m £m
£m
Other segment items
Capital expenditure:
- Property, plant and equipment 0.7 0.4 11.5 5.2 17.8 39.7 0.1 39.8
- Interest in leased vehicles - - - 5.2 5.2 34.5 - 34.5
- Intangible assets 0.1 0.1 2.7 2.0 4.9 10.4 8.8 19.2
Depreciation:
- Property, plant and equipment 1.7 0.7 12.0 6.6 21.0 34.2 0.3 34.5
- Interest in leased vehicles - - - 0.1 0.1 9.8 - 9.8
Amortisation of intangible assets - - 5.0 3.2 8.2 13.0 1.0 14.0
Goodwill impairment - - - 49.5 49.5 49.5 - 49.5
Net provisions charged / (credited) to the consolidated income statement 10.3 0.4 22.9 1.2 34.8 53.9 (1.3) 52.6
Net provisions include inventory, trade receivables impairment and other
liability provisions.
Distribution
2014 Australasia Europe North Asia South Asia United Kingdom Emerging Markets Total Distribution
£m £m £m £m £m £m £m
Revenue
Total revenue 748.8 658.2 600.3 439.3 51.4 446.7 2,944.7
Inter-segment revenue (182.1) (150.4) - - - (28.1) (360.6)
Revenue from third parties 566.7 507.8 600.3 439.3 51.4 418.6 2,584.1
Results
Segment result 64.3 20.5 66.9 58.7 10.4 40.0 260.8
Operating exceptional items - - - - - - -
Operating profit / (loss) after 64.3 20.5 66.9 58.7 10.4 40.0 260.8
exceptional items
Share of loss after tax of joint ventures - (1.9) - - - - (1.9)
and associates
Profit / (loss) before finance and tax 64.3 18.6 66.9 58.7 10.4 40.0 258.9
Finance income
Finance costs
Profit before tax
Tax
Profit for the year
The segment result in South Asia includes a profit of £17.3m on the sale of a
property.
Retail
2014 Australasia Europe United Kingdom Emerging Markets Total Total pre Central Central Total
£m £m £m £m Retail £m £m £m
£m
Revenue
Total revenue 676.7 122.1 2,421.4 898.4 4,118.6 7,063.3 - 7,063.3
Inter-segment revenue - - - - - (360.6) - (360.6)
Revenue from third parties 676.7 122.1 2,421.4 898.4 4,118.6 6,702.7 - 6,702.7
Results
Segment result 25.0 0.3 54.8 3.7 83.8 344.6 (26.2) 318.4
Operating exceptional items - - - (47.4) (47.4) (47.4) - (47.4)
Operating profit / (loss) after 25.0 0.3 54.8 (43.7) 36.4 297.2 (26.2) 271.0
exceptional items
Share of loss after tax of joint ventures - - - - - (1.9) - (1.9)
and associates
Profit / (loss) before finance and tax 25.0 0.3 54.8 (43.7) 36.4 295.3 (26.2) 269.1
Finance income 14.8
Finance costs (28.1)
Profit before tax 255.8
Tax (68.6)
Profit for the year 187.2
Central costs include a past service pension credit of £7.2m (net of costs).
Net finance costs of £13.3m are not allocated to individual segments.
Distribution
2014 Australasia Europe North Asia South Asia United Kingdom Emerging Markets Total Distribution
£m £m £m £m £m £m £m
Segment assets and liabilities
Segment assets 60.5 107.0 121.9 83.9 41.4 153.3 568.0
Other current assets
Non-current assets
Segment liabilities (193.5) (88.9) (105.6) (69.8) (54.9) (119.7) (632.4)
Other liabilities
Net assets
Segment assets include net inventory, receivables and derivative assets.
Segment liabilities include payables, provisions and derivative liabilities.
Distribution
2014 Australasia Europe North Asia South Asia United Kingdom Emerging Markets Total Distribution
£m £m £m £m £m £m £m
Other segment items
Capital expenditure:
- Property, plant and equipment 3.9 0.3 1.8 4.5 0.1 7.8 18.4
- Interest in leased vehicles - - 7.7 - 7.2 8.0 22.9
- Intangible assets 1.0 0.8 1.4 1.0 0.2 0.7 5.1
Depreciation:
- Property, plant and equipment 2.8 0.8 2.8 2.2 0.2 3.7 12.5
- Interest in leased vehicles - 0.6 2.5 - 5.8 1.1 10.0
Amortisation of intangible assets 0.6 0.5 0.4 1.0 0.2 - 2.7
Goodwill impairment - - - - - - -
Net provisions charged to the consolidated income statement 2.3 2.6 0.5 2.7 0.8 0.5 9.4
Net provisions include inventory, trade receivables impairment and other
liability provisions.
Retail
2014 Australasia Europe United Kingdom Emerging Markets Total Total
£m £m £m £m Retail £m
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