REG - Melrose Ind Plc - Audited Results For Year Ended 31 December 2014 <Origin Href="QuoteRef">MRON.L</Origin> - Part 2

Melrose IndustriesAnnouncement

04/03/2015 07:01

- Part 2: For the preceding part double click  ID:nRSD4589Ga 

possible, passing on the cost increases to
customers or by having suitable purchase agreements with its suppliers which sometimes fix the price over some months into
the future.  These risks are minimised through sourcing policies (including the use of multiple sources, where possible)
and procurement contracts where prices are agreed for up to one year to limit exposure to price volatility. 
 
GOING CONCERN 
 
The Group's business activities, together with the factors likely to affect its future development, performance and
position are set out in the Strategic Report section of the Annual Report.  In addition, the consolidated financial
statements, and in particular notes 19 and 24, include details of the Group's borrowing facilities and hedging activities
along with the processes for managing its exposures to credit risk, capital risk, liquidity risk, interest risk, foreign
currency risk and commodity cost risk. 
 
The Group has considerable financial resources and a breadth of end markets, both by sector and geographically, giving some
balance to the various market and economic cycle risks. Furthermore, the Group has a consistent cash generation record, and
as a consequence, the Directors believe that the Group is well placed to manage its business risks successfully despite the
current uncertain economic outlook. 
 
After making enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future.  For this reason, they continue to adopt the going concern basis in
preparing the financial statements. 
 
Geoffrey Martin 
 
Group Finance Director 
 
4 March 2015 
 
Consolidated Income Statement 
 
                                                                                                                                                                                                                                                                          Notes  Year ended    Restated(1)year ended31 December 2013£m  
                                                                                                                                                                                                                                                                                 31 December                                            
                                                                                                                                                                                                                                                                                  2014£m                                                
 Continuing operations                                                                                                                                                                                                                                                                                                                  
 Revenue                                                                                                                                                                                                                                                                  2      1,377.5       1,466.4                                  
 Cost of sales                                                                                                                                                                                                                                                                   (875.0)       (952.0)                                  
                                                                                                                                                                                                                                                                                                                                        
 Gross profit                                                                                                                                                                                                                                                                    502.5         514.4                                    
                                                                                                                                                                                                                                                                                                                                        
 Headline(2) operating expenses                                                                                                                                                                                                                                                  (259.7)       (277.2)                                  
 Share of headline(2) results of joint ventures                                                                                                                                                                                                                                  3.2           2.8                                      
 Intangible asset amortisation                                                                                                                                                                                                                                                   (54.7)        (57.1)                                   
 Exceptional operating costs                                                                                                                                                                                                                                              3      (34.3)        (19.3)                                   
 Exceptional operating income                                                                                                                                                                                                                                             3      5.4           28.9                                     
                                                                                                                                                                                                                                                                                                                                        
 Total net operating expenses                                                                                                                                                                                                                                                    (340.1)       (321.9)                                  
                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                        
 Operating profit                                                                                                                                                                                                                                                                162.4         192.5                                    
                                                                                                                                                                                                                                                                                                                                        
 Headline(2) operating profit                                                                                                                                                                                                                                             2      246.0         240.0                                    
                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                        
 Finance costs                                                                                                                                                                                                                                                                   (48.2)        (70.2)                                   
 Finance income                                                                                                                                                                                                                                                                  14.7          21.7                                     
                                                                                                                                                                                                                                                                                                                                        
 Profit before tax                                                                                                                                                                                                                                                               128.9         144.0                                    
                                                                                                                                                                                                                                                                                                                                        
 Headline(2) profit before tax                                                                                                                                                                                                                                                   212.5         191.5                                    
                                                                                                                                                                                                                                                                                                                                        
 Headline(2) tax                                                                                                                                                                                                                                                                 (57.4)        (50.5)                                   
 Exceptional tax(3)                                                                                                                                                                                                                                                              15.6          8.9                                      
                                                                                                                                                                                                                                                                                                                                        
 Total tax                                                                                                                                                                                                                                                                4      (41.8)        (41.6)                                   
                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                        
 Profit for the year from continuing operations                                                                                                                                                                                                                                  87.1          102.4                                    
                                                                                                                                                                                                                                                                                                                                        
 Headline(2) profit for the year from continuing operations                                                                                                                                                                                                                      155.1         141.0                                    
                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                        
 Discontinued operations                                                                                                                                                                                                                                                                                                                
 Profit for the year from discontinued operations                                                                                                                                                                                                                         5      107.6         462.2                                    
                                                                                                                                                                                                                                                                                                                                        
 Profit for the year                                                                                                                                                                                                                                                             194.7         564.6                                    
                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                        
 Attributable to:                                                                                                                                                                                                                                                                                                                       
 Owners of the parent                                                                                                                                                                                                                                                            193.9         562.7                                    
 Non-controlling interests                                                                                                                                                                                                                                                       0.8           1.9