REG - Johnson Matthey PLC - Half Yearly Report <Origin Href="QuoteRef">JMAT.L</Origin> - Part 2
20/11/2014 08:00
- Part 2: For the preceding part double click ID:nRST5053Xa
Attributable to:
Owners of the parent company 173.7 174.3 340.2
Non-controlling interests (0.9) (0.7) (1.5)
172.8 173.6 338.7
pence pence pence
Earnings per ordinary share attributable to the equity holders of the parent company
Basic 6 85.6 86.0 167.7
Diluted 6 85.3 85.5 166.9
Condensed Consolidated Statement of Total Comprehensive Income
for the six months ended 30th September 2014
Six months ended Year ended
30.9.14 30.9.13 31.3.14
Notes £ million £ million £ million
Profit for the period 172.8 173.6 338.7
Other comprehensive income:
Items that will not be reclassified to profit or loss:
Remeasurements of post-employment benefits assets and liabilities 10 (13.6) 18.1 43.5
Tax on above items taken directly to or transferred from equity 3.6 (17.3) (19.3)
(10.0) 0.8 24.2
Items that may be reclassified subsequently to profit or loss:
Currency translation differences (16.3) (60.7) (95.3)
Cash flow hedges (1.8) 8.9 9.3
Fair value gains on net investment hedges 10.0 5.8 9.7
Fair value gain / (loss) on available-for-sale investments 2.5 (2.0) (0.4)
Tax on above items taken directly to or transferred from equity 0.3 (2.1) 0.3
(5.3) (50.1) (76.4)
Other comprehensive expense for the period (15.3) (49.3) (52.2)
Total comprehensive income for the period 157.5 124.3 286.5
Attributable to:
Owners of the parent company 158.3 125.3 288.3
Non-controlling interests (0.8) (1.0) (1.8)
157.5 124.3 286.5
Condensed Consolidated Balance Sheet
as at 30th September 2014
30.9.14 30.9.13 31.3.14
restated
Notes £ million £ million £ million
Assets
Non-current assets
Property, plant and equipment 1,035.4 987.0 1,023.4
Goodwill 566.7 574.1 571.0
Other intangible assets 176.8 193.2 183.3
Deferred income tax assets 33.8 39.0 32.1
Investments and other receivables 77.2 70.5 70.7
Interest rate swaps 7 11.1 20.1 12.1
Post-employment benefits net assets 10 8.5 9.2 8.2
Total non-current assets 1,909.5 1,893.1 1,900.8
Current assets
Inventories 634.2 674.8 672.5
Current income tax assets 33.6 23.9 27.4
Trade and other receivables 1,009.5 874.8 955.3
Cash and cash equivalents ─ cash and deposits 7 133.0 261.3 221.8
Interest rate swaps 2.1 - 4.0
Other financial assets 9.9 11.0 7.5
Total current assets 1,822.3 1,845.8 1,888.5
Total assets 3,731.8 3,738.9 3,789.3
Liabilities
Current liabilities
Trade and other payables (751.1) (759.3) (830.0)
Current income tax liabilities (112.1) (117.0) (124.4)
Cash and cash equivalents ─ bank overdrafts 7 (25.1) (53.5) (39.2)
Other borrowings, finance leases and related swaps 7 (172.1) (121.3) (175.9)
Other financial liabilities (5.8) (7.2) (3.1)
Provisions (18.6) (16.9) (17.4)
Total current liabilities (1,084.8) (1,075.2) (1,190.0)
Non-current liabilities
Borrowings, finance leases and related swaps 7 (751.0) (899.2) (752.0)
Deferred income tax liabilities (90.9) (92.7) (89.3)
Employee benefits obligations 10 (177.1) (216.9) (173.5)
Provisions (27.9) (30.0) (28.6)
Other payables (4.4) (3.5) (2.7)
Total non-current liabilities (1,051.3) (1,242.3) (1,046.1)
Total liabilities (2,136.1) (2,317.5) (2,236.1)
Net assets 1,595.7 1,421.4 1,553.2
Equity
Share capital 220.7 220.7 220.7
Share premium account 148.3 148.3 148.3
Shares held in employee share ownership trust (ESOT) (54.6) (52.5) (52.7)
Other reserves (33.3) (1.7) (27.9)
Retained earnings 1,324.6 1,112.0 1,271.1
Total equity attributable to owners of the parent company 1,605.7 1,426.8 1,559.5
Non-controlling interests (10.0) (5.4) (6.3)
Total equity 1,595.7 1,421.4 1,553.2
Condensed Consolidated Cash Flow Statement
for the six months ended 30th September 2014
Six months ended Year ended
30.9.14 30.9.13 31.3.14
Notes £ million £ million £ million
Cash flows from operating activities
Profit before tax 207.8 202.1 406.6
Adjustments for:
Share of profit of joint venture (0.2) (0.4) (0.5)
Depreciation, amortisation, impairment losses and profit on sale
of non-current assets and investments 73.9 74.5 150.9
Share-based payments 4.1 6.8 10.5
Changes in working capital and provisions (92.4) (38.5) (83.6)
Changes in fair value of financial instruments (2.2) (0.6) (0.5)
Net finance costs 17.9 21.7 42.1
Income tax paid (45.7) (19.0) (48.6)
Net cash inflow from operating activities 163.2 246.6 476.9
Cash flows from investing activities
Dividends received from joint venture 0.4 - -
Purchases of non-current assets and investments (79.8) (101.4) (213.7)
Proceeds from sale of non-current assets and investments 0.1 0.2 3.5
Purchases of businesses (29.0) (1.4) (8.0)
Net cash outflow from investing activities (108.3) (102.6) (218.2)
Cash flows from financing activities
Net cost of ESOT transactions in own shares (17.1) (19.1) (19.3)
(Repayment of) / proceeds from borrowings and finance leases (2.7) 164.5 78.8
Dividends paid to owners of the parent company 5 (92.3) (84.1) (118.6)
Settlement of currency swaps for net investment hedging - (0.1) (0.1)
Interest paid (20.1) (20.7) (41.7)
Interest received 4.1 2.6 6.4
Net cash (outflow) / inflow from financing activities (128.1) 43.1 (94.5)
(Decrease) / increase in cash and cash equivalents in period (73.2) 187.1 164.2
Exchange differences on cash and cash equivalents (1.5) (0.7) (3.0)
Cash and cash equivalents at beginning of period 182.6 21.4 21.4
Cash and cash equivalents at end of period 7 107.9 207.8 182.6
Reconciliation to net debt
(Decrease) / increase in cash and cash equivalents in period (73.2) 187.1 164.2
Repayment of / (proceeds from) borrowings and finance leases 2.7 (164.5) (78.8)
Change in net debt resulting from cash flows (70.5) 22.6 85.4
Exchange differences on net debt (2.3) 20.4 21.0
Movement in net debt in period (72.8) 43.0 106.4
Net debt at beginning of period (729.2) (835.6) (835.6)
Net debt at end of period 7 (802.0) (792.6) (729.2)
Condensed Consolidated Statement of Changes in Equity
for the six months ended 30th September 2014
Share Shares Non-
Share premium held in Other Retained controlling Total
capital account ESOT reserves earnings interests equity
£ million £ million £ million £ million £ million £ million £ million
At 1st April 2013 220.7 148.3 (51.7) 48.2 1,029.7 (4.3) 1,390.9
Total comprehensive income for the period - - - (49.9) 175.2 (1.0) 124.3
Dividends paid (note 5) - - - - (84.1) (0.1) (84.2)
Purchase of shares by ESOT - - (21.8) - - - (21.8)
Share-based payments - - - - 10.1 - 10.1
Cost of shares transferred to employees - - 21.0 - (21.6) - (0.6)
Tax on share-based payments - - - - 2.7 - 2.7
At 30th September 2013 220.7 148.3 (52.5) (1.7) 1,112.0 (5.4) 1,421.4
Total comprehensive income for the period - - - (26.2) 189.2 (0.8) 162.2
Dividends paid (note 5) - - - - (34.5) (0.1) (34.6)
Purchase of shares by ESOT - - (0.5) - - - (0.5)
Share-based payments - - - - 7.0 - 7.0
Cost of shares transferred to employees - - 0.3 - (3.5) - (3.2)
Tax on share-based payments - - - - 0.9 - 0.9
At 31st March 2014 220.7 148.3 (52.7) (27.9) 1,271.1 (6.3) 1,553.2
Total comprehensive income for the period - - - (5.4) 163.7 (0.8) 157.5
Dividends paid (note 5) - - - - (92.3) (0.1) (92.4)
Purchase of non-controlling interests - - - - (6.6) (2.8) (9.4)
Purchase of shares by ESOT - - (17.1) - - - (17.1)
Share-based payments - - - - 7.5 - 7.5
Cost of shares transferred to employees - - 15.2 - (18.6) - (3.4)
Tax on share-based payments - - - - (0.2) - (0.2)
At 30th September 2014 220.7 148.3 (54.6) (33.3) 1,324.6 (10.0) 1,595.7
Notes on the Accounts
for the six months ended 30th September 2014
1 Basis of preparation
The half-yearly accounts were approved by the Board of Directors on 19th November 2014, and are unaudited but have been
reviewed by the auditors. These condensed consolidated accounts do not constitute statutory accounts within the meaning of
section 435 of the Companies Act 2006, but have been prepared in accordance with International Accounting Standard (IAS) 34
─ 'Interim Financial Reporting' and the Disclosure and Transparency Rules of the UK's Financial Conduct Authority. The
accounting policies applied are set out in the Annual Report and Accounts for the year ended 31st March 2014. None of the
amendments to standards and interpretations which the group has adopted during the period has had a material effect on the
reported results or financial position of the group. Information in respect of the year ended 31st March 2014 is derived
from the company's statutory accounts for that year which have been delivered to the Registrar of Companies. The auditor's
report on those statutory accounts was unqualified, did not include a reference to any matters to which the auditor drew
attention by way of emphasis without qualifying its report and did not contain any statement under sections 498(2) or
498(3) of the Companies Act 2006.
The adoption of the revised IAS 19 ─ 'Employee Benefits' in the year ended 31st March 2014 resulted in a reclassification
of the reimbursement rights for the US post-retirement medical benefits plan from employee benefit obligations to
post-employment benefits net assets of £7.1 million in the balance sheet at 30th September 2013.
2 Segmental information by business segment
Emission Precious
Control Process Metal Fine New
Technologies Technologies Products Chemicals Businesses Eliminations Total
£ million £ million £ million £ million £ million £ million £ million
Six months ended 30th September 2014
Revenue from external customers 1,622.1 282.5 2,688.5 170.7 36.1 - 4,799.9
Inter-segment revenue 127.7 3.4 743.2 3.3 0.6 (878.2) -
Total revenue 1,749.8 285.9 3,431.7 174.0 36.7 (878.2) 4,799.9
External sales excluding precious metals 868.7 279.1 176.7 153.3 36.0 - 1,513.8
Inter-segment sales 0.4 3.4 16.3 2.0 0.5 (22.6) -
Sales excluding precious metals 869.1 282.5 193.0 155.3 36.5 (22.6) 1,513.8
Segmental underlying operating profit / (loss) 118.1 49.7 52.0 41.8 (12.0) - 249.6
Unallocated corporate expenses (15.5)
Underlying operating profit 234.1
Amortisation of acquired intangibles (note 4) (8.6)
Operating profit 225.5
Net finance costs (17.9)
Share of profit of joint venture 0.2
Profit before taxation 207.8
Segmental net assets 993.8 719.4 324.7 473.4 93.7 - 2,605.0
Emission Precious
Control Process Metal Fine New
Technologies Technologies Products Chemicals Businesses Eliminations Total
£ million £ million £ million £ million £ million £ million £ million
Six months ended 30th September 2013
Revenue from external customers 1,414.9 288.5 4,489.2 182.1 35.8 - 6,410.5
Inter-segment revenue 33.0 2.6 581.2 2.6 1.2 (620.6) -
Total revenue 1,447.9 291.1 5,070.4 184.7 37.0 (620.6) 6,410.5
External sales excluding precious metals 814.4 285.3 193.4 159.5 33.7 - 1,486.3
Inter-segment sales 0.1 2.5 20.8 1.9 1.0 (26.3) -
Sales excluding precious metals 814.5 287.8 214.2 161.4 34.7 (26.3) 1,486.3
Segmental underlying operating profit / (loss) 94.2 48.9 74.3 40.7 (9.2) - 248.9
Unallocated corporate expenses (14.7)
Underlying operating profit 234.2
Amortisation of acquired intangibles (note 4) (10.8)
Operating profit 223.4
Net finance costs (21.7)
Share of profit of joint venture 0.4
Profit before taxation 202.1
Segmental net assets 951.6 652.9 336.4 453.2 78.1 - 2,472.2
Year ended 31st March 2014
Revenue from external customers 2,898.9 573.7 7,243.2 362.8 76.6 - 11,155.2
Inter-segment revenue 96.8 6.4 1,178.1 8.5 2.3 (1,292.1) -
Total revenue 2,995.7 580.1 8,421.3 371.3 78.9 (1,292.1) 11,155.2
External sales excluding precious metals 1,644.6 559.0 386.1 317.5 73.6 - 2,980.8
Inter-segment sales 0.2 6.2 43.6 4.9 2.0 (56.9) -
Sales excluding precious metals 1,644.8 565.2 429.7 322.4 75.6 (56.9) 2,980.8
Segmental underlying operating profit / (loss) 203.6 101.9 130.9 84.1 (18.3) - 502.2
Unallocated corporate expenses (33.3)
Underlying operating profit 468.9
Amortisation of acquired intangibles (note 4) (20.7)
Operating profit 448.2
Net finance costs (42.1)
Share of profit of joint venture 0.5
Profit before taxation 406.6
Segmental net assets 928.7 670.7 383.7 453.3 77.7 - 2,514.1
3 Effect of exchange rate changes on translation of foreign subsidiariesʼ sales excluding precious
metals and operating profits
Six months ended Year ended
Average exchange rates used for translation of results of foreign operations 30.9.14 30.9.13 31.3.14
US dollar / £ 1.676 1.544 1.591
Euro / £ 1.244 1.173 1.186
Chinese renminbi / £ 10.39 9.48 9.73
South African rand / £ 17.84 15.03 16.12
The main impact of exchange rate movements on the group's sales and operating profit comes from the translation of foreign
subsidiaries' results into sterling.
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