REG - Keller Group PLC - Preliminary Results <Origin Href="QuoteRef">KLR.L</Origin> - Part 2
02/03/2015 07:01
- Part 2: For the preceding part double click ID:nRSB1510Ga
1.9 1.9 - 1.9
Acquisition of non-controlling interest - - - - - - (1.0) (1.0) (2.3) (3.3)
At 31 December 2014 7.3 38.1 7.6 8.3 56.9 - 224.5 342.7 3.6 346.3
Consolidated cash flow statement
For the year ended 31 December 2014
2014 2013
£m £m
Cash flows from operating activities
Operating profit before exceptional items 92.0 77.8
Depreciation of property, plant and equipment 48.0 45.0
Amortisation of intangible assets 1.9 1.4
Profit on sale of property, plant and equipment (0.3) (0.3)
Other non-cash movements 8.9 7.1
Foreign exchange losses 0.1 -
Operating cash flows before movements in working capital 150.6 131.0
Decrease/(increase) in inventories 13.9 (22.5)
Decrease/(increase) in trade and other receivables 11.2 (37.4)
(Decrease)/increase in trade and other payables (0.1) 65.5
Change in provisions, retirement benefit and other non-current liabilities (10.2) (4.6)
Cash generated from operations 165.4 132.0
Interest paid (10.1) (5.4)
Income tax paid (28.4) (21.5)
Net cash inflow from operating activities 126.9 105.1
Cash flows from investing activities
Interest received 0.5 0.4
Proceeds from sale of property, plant and equipment 3.5 3.6
Acquisition of subsidiaries, net of cash acquired (5.0) (200.4)
Acquisition of property, plant and equipment (63.6) (44.8)
Acquisition of intangible assets (0.9) (1.4)
Net cash outflow from investing activities (65.5) (242.6)
Cash flows from financing activities
Proceeds from the issue of share capital - 57.6
New borrowings 95.3 118.5
Repayment of borrowings (103.6) (24.2)
Payment of finance lease liabilities (1.2) (0.7)
Dividends paid (18.0) (15.6)
Net cash (outflow)/inflow from financing activities (27.5) 135.6
Net increase/(decrease) in cash and cash equivalents 33.9 (1.9)
Cash and cash equivalents at beginning of period 50.7 54.8
Effect of exchange rate fluctuations 1.0 (2.2)
Cash and cash equivalents at end of period 85.6 50.7
50.7
1. Basis of preparation
The Group's 2014 results have been prepared in accordance with International
Financial Reporting Standards ('IFRS') as adopted by the EU.
The same accounting policies and presentation are followed in the financial
statements that were applied in the preparation of the Company's published
consolidated financial statements for the year ended 31 December 2013, except
for the adoption of:
-- IFRS 10, 'Consolidated financial statements'
-- IFRS 11, 'Joint arrangements'
-- IFRS 12, 'Disclosure of interests in other entities'
-- Amendments to IAS 27, 'Separate financial statements'
-- Amendments to IAS 28, 'Investments in associates and joint ventures'
-- Amendments to IAS 32, 'Financial instruments: Presentation'
-- Amendments to IAS 36, 'Impairment of assets'
-- Amendments to IAS 39, 'Financial instruments: Recognition and measurement'
There is no significant impact on the Group financial statements as a result
of adopting these new and amended standards. There are no standards,
amendments or interpretations that are in issue but not yet effective that are
expected to have a significant impact on the Group financial statements.
The financial information set out above does not constitute the Company's
statutory accounts for the years ended 31 December 2014 or 2013 but is derived
from the 2014 accounts. Statutory accounts for 2013 have been delivered to the
Registrar of Companies. Those for 2014, prepared under IFRS as adopted by the
EU, will be delivered to the Registrar of Companies and made available on the
Company's website at www.keller.co.uk in March 2015. The auditors have
reported on those accounts; their reports were (i) unqualified, (ii) did not
include references to any matters to which the auditors drew attention by way
of emphasis without qualifying their reports and (iii) did not contain
statements under section 498(2) or (3) of the Companies Act 2006.
2. Foreign currencies
The exchange rates used in respect of principal currencies are:
Average for period Period end
2014 2013 2014 2013
US dollar 1.65 1.56 1.55 1.65
Canadian dollar 1.82 1.61 1.81 1.76
Euro 1.24 1.18 1.28 1.20
Singapore dollar 2.09 1.96 2.05 2.09
Australian dollar 1.83 1.62 1.90 1.86
3. Segmental analysis
The Group is managed as four geographical divisions and has only one major
product or service: specialist ground engineering services. This is reflected
in the Group's management structure and in the segment information reviewed by
the Chief Operating Decision Maker.
2014 Revenue£m 2014Operating profit£m 2013 Revenue£m 2013 Operating profit£m
North America 775.6 59.9 699.4 51.6
EMEA1 451.5 12.9 399.2 6.8
Asia 111.3 8.3 96.2 9.0
Australia 261.3 15.7 243.4 15.6
1,599.7 96.8 1,438.2 83.0
Central items and eliminations - (4.8) - (5.2)
Before exceptional items 1,599.7 92.0 1,438.2 77.8
Exceptional items (Note 5) - (56.7) - (21.7)
1,599.7 35.3 1,438.2 56.1
2014 Segment assets£m 2014 Segment liabilities£m 2014 Capital employed£m 2014 Capital additions£m 2014 Depreciation and amortisation£m 2014Tangible and intangible assets£m
North America 499.4 (159.9) 339.5 23.3 17.2 251.6
EMEA1 283.3 (215.2) 68.1 23.1 18.9 127.4
Asia 84.7 (29.4) 55.3 10.8 5.5 47.4
Australia 85.1 (44.2) 40.9 7.3 8.2 52.6
952.5 (448.7) 503.8 64.5 49.8 479.0
Central items and eliminations 2 103.4 (260.9) (157.5) - 0.1 0.1
1,055.9 (709.6) 346.3 64.5 49.9 479.1
2013 Segment assets£m 2013 Segment liabilities£m 2013 Capital employed£m 2013 Capital additions£m 2013 Depreciation and amortisation£m 2013Tangible and intangible assets£m
North America 487.0 (155.4) 331.6 19.9 15.5 245.5
EMEA1 278.6 (141.6) 137.0 12.5 16.9 131.1
Asia 76.7 (25.0) 51.7 4.2 4.8 36.7
Australia 116.5 (63.5) 53.0 9.6 9.0 56.3
958.8 (385.5) 573.3 46.2 46.2 469.6
Central items and eliminations 2 69.0 (269.7) (200.7) - 0.2 0.2
1,027.8 (655.2) 372.6 46.2 46.4 469.8
1 Europe, Middle East and Africa.
2 Central items includes net debt and tax balances.
Revenue and non-current non-financial assets are analysed by country below:
Revenue Non-currentnon-financial assets3
2014£m 2013£m 2014£m 2013 £m
United States 666.5 604.0 155.9 137.6
Australia 261.3 243.4 52.6 56.3
Canada 108.2 94.9 122.2 122.0
United Kingdom (country of domicile) 67.5 70.1 19.2 20.4
Other 496.2 425.8 145.0 148.4
1,599.7 1,438.2 494.9 484.7
3 Non-current non-financial assets comprise intangible assets, property, plant
and equipment and other non-current non-financial assets.
4. Acquisitions
2014 acquisitions
On 14 August 2014, the Group acquired the trade and selected assets of Ansah
Sdn Bhd, a business based in Kuantan, Malaysia, for an initial cash
consideration of £3.5m (RM19.0m). £1.4m (RM7.6m) of the purchase price relates
to property, plant and equipment, with the remaining purchase price allocated
to goodwill. Contingent consideration of up to £1.5m (RM8.0m) is payable based
on total earnings before interest and tax in the three-year period following
acquisition. The full amount of contingent consideration is currently provided
for.
On 15 May 2014, the Group acquired the remaining 45% minority shareholding of
Keller Engenharia Geotecnica Ltda in Brazil for a cash consideration of £2.8m
(R$10.7m) at a premium of £1.0m (R$4.1m) to net book value, which has been
taken directly to reserves.
2013 acquisitions
Keller Canada Franki Africa Geo-Foundations Total
Carrying amount Fair value adjust-ment Fair value Carrying amount Fair value adjust-ment Fair value Carrying amount Fair value adjust-ment Fair value Carrying amount Fair value adjust-ment Fair value
£m £m £m £m £m £m £m £m £m £m £m £m
Net assets acquired
Intangible assets - 31.5 31.5 2.2 3.2 5.4 - 0.4 0.4 2.2 35.1 37.3
Property, plant and equipment 32.9 1.3 34.2 19.0 - 19.0 1.9 1.3 3.2 53.8 2.6 56.4
Cash and cash equivalents - - - 4.2 - 4.2 0.2 - 0.2 4.4 - 4.4
Receivables 19.7 (0.4) 19.3 14.3 - 14.3 4.0 - 4.0 38.0 (0.4) 37.6
Other assets 9.6 - 9.6 4.6 - 4.6 0.4 - 0.4 14.6 - 14.6
Loans and borrowings (3.8) - (3.8) (2.4) - (2.4) (0.5) - (0.5) (6.7) - (6.7)
Deferred tax - (2.0) (2.0) (0.7) (0.8) (1.5) (0.4) (0.4) (0.8) (1.1) (3.2) (4.3)
Other liabilities (4.2) - (4.2) (13.0) (0.9) (13.9) (0.9) - (0.9) (18.1) (0.9) (19.0)
54.2 30.4 84.6 28.2 1.5 29.7 4.7 1.3 6.0 87.1 33.2 120.3
Goodwill 74.8 2.9 - 77.7
Total consideration 159.4 32.6 6.0 198.0
Satisfied by
Initial cash consideration 151.2 31.8 6.0 189.0
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