REG - Melrose Industries - Final Results <Origin Href="QuoteRef">MRON.L</Origin> - Part 5

Melrose IndustriesAnnouncement

20/02/2018 07:05

- Part 5: For the preceding part double click  ID:nRST3300Fd 

                            None                                                                    Not applicable                                                                 Capital expenditure divided by depreciation of property, plant and equipment
                                                                              and amortisation of computer software and development costs.
 Dividend per share                                                              None                                                                    Not applicable                                                                 Amount payable by way of dividends in terms of pence per share.
 
((1)) Operating profit/(loss) is not defined within IFRS but is a widely
accepted profit measure being profit/(loss) before finance costs, finance
income
    and tax.
( (2)) Operating margin is not defined within IFRS but is a widely accepted
profit measure being derived from operating profit/(loss)((1)) divided
by
    revenue.
 
 
 
 
 
This information is provided by RNS
The company news service from the London Stock Exchange
 
                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                            Underlying operating profit               278.4         104.1                               
                                                                                                                                                                                                                                                                                            Depreciation                              30.9          15.9                                
                                                                                                                                                                                                                                                                                            Amortisation                              3.8           2.2                                 
                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                            Underlying EBITDA                         313.1         122.2                               
                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                    
 Underlying profit/(loss) before tax                                                                       Profit/(loss) before tax                                                Non-underlying items (note 4)                                                                            Profit before the impact of non-underlying               
                                                                                                                                                                                                                                                                                            items and tax.  As discussed above, the                 
                                                                                                                                                                                                                                                                                            Group uses underlying profit measures to                
                                                                                                                                                                                                                                                                                            provide a useful and more comparable                    
                                                                                                                                                                                                                                                                                            measure of the ongoing performance of the               
                                                                                                                                                                                                                                                                                            Group. These are adjusted from statutory                
                                                                                                                                                                                                                                                                                            measures to remove non-underlying items,                
                                                                                                                                                                                                                                                                                            the nature of which are disclosed above.                
 Underlying profit/(loss) after tax                                                                        Profit/(loss) after tax                                                 Non-underlying items (note 4)                                                                            Profit after tax attributable to owners of               
                                                                                                                                                                                                                                                                                            the parent and before the impact of non                 
                                                                                                                                                                                                                                                                                            -underlying items. As discussed above, the               
                                                                                                                                                                                                                                                                                            Group uses underlying profit measures to                
                                                                                                                                                                                                                                                                                            provide a useful and more comparable                    
                                                                                                                                                                                                                                                                                            measure of the ongoing performance of the               
                                                                                                                                                                                                                                                                                            Group. These are adjusted from statutory                
                                                                                                                                                                                                                                                                                            measures to remove non-underlying items as               
                                                                                                                                                                                                                                                                                            well as non-underlying tax and the tax                  
                                                                                                                                                                                                                                                                                            effects of non-underlying items, the                    
                                                                                                                                                                                                                                                                                            nature of which are disclosed above.                    
 Underlying Income Statement tax rate                                                                      Effective tax rate                                                      Non-underlying items, non-underlying tax and the tax impact of non-underlying items                      The income tax charge for the Group                     
                                                                                                                                                                                   (note 4)                                                                                                 excluding non-underlying tax and the tax                
                                                                                                                                                                                                                                                                                            impact of non-underlying items divided by               
                                                                                                                                                                                                                                                                                            underlying profit before tax.  This                     
                                                                                                                                                                                                                                                                                            measure is a useful indicator of the                    
                                                                                                                                                                                                                                                                                            ongoing tax rate for the Group.                         
                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                            Underlying Income         Statement tax   2017 £m       2016 £m                             
                                                                                                                                                                                                                                                                                            rate                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                            Tax credit per Income     Statement       3.7           30.3                                
                                                                                                                                                                                                                                                                                            Non-underlying tax                        (26.4)        (10.4)                              
                                                                                                                                                                                                                                                                                            Tax impact of non-underlying      items   (44.1)        (45.9)                              
                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                            Underlying tax charge                     (66.8)        (26.0)                              
                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                            Underlying profit before tax              257.7         96.4                                
                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                            Underlying Income         Statement tax   25.9%         27.0%                               
                                                                                                                                                                                                                                                                                            rate                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                        
 Underlying diluted earnings per share                                                                     Diluted earnings per share                                              Non-underlying items (note 4)                                                                            Profit after tax attributable to owners of               
                                                                                                                                                                                                                                                                                            the parent and before the impact of non                 
                                                                                                                                                                                                                                                                                            -underlying items, divided by the weighted               
                                                                                                                                                                                                                                                                                            average number of ordinary shares in issue               
                                                                                                                                                                                                                                                                                            during the financial year adjusted for the               
                                                                                                                                                                                                                                                                                            effects of any potentially dilutive                     
                                                                                                                                                                                                                                                                                            options. The Board considers this to be a               
                                                                                                                                                                                                                                                                                            key measure of performance.                             
 Proforma underlying diluted earnings per share and proforma underlying diluted earnings per share growth  Diluted earnings per share                                              Full year impact of acquisitions, non-underlying items (note 4) and translational currency impacts       Underlying diluted earnings per share                   
                                                                                                                                                                                                                                                                                            adjusted to include the full year impact                
                                                                                                                                                                                                                                                                                            of businesses acquired and, for growth                  
                                                                                                                                                                                                                                                                                            purposes, translational currency impacts.               
                                                                                                                                                                                                                                                                                            This measure uses the proforma underlying               
                                                                                                                                                                                                                                                                                            operating profit, described above, and to               
                                                                                                                                                                                                                                                                                            aid comparability, this measure also makes               
                                                                                                                                                                                                                                                                                            allowance for the same net finance costs,               
                                                                                                                                                                                                                                                                                            effective tax rate and number of shares in               
                                                                                                                                                                                                                                                                                            both periods to aid comparability.                      
                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                            Proforma underlying diluted               2017 £m       2017 constant currency £m  2016 £m    
                                                                                                                                                                                                                                                                                            earnings per share                                                                            
                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                            Proforma underlying operating             278.4         263.3                      188.0      
                                                                                                                                                                                                                                                                                            profit                                                                                        
                                                                                                                                                                                                                                                                                            Finance costs (proforma)                  (20.7)        (20.7)                     (20.7)     
                                                                                                                                                                                                                                                                                            Tax (proforma)                            (66.8)        (62.8)                     (43.3)     
                                                                                                                                                                                                                                                                                            Underlying proforma profit         after  190.9         179.8                      124.0      
                                                                                                                                                                                                                                                                                            tax                                                                                           
                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                            Number of shares (million)                1,941.2       1,941.2                    1,941.2    
                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                            Proforma underlying diluted     earnings  9.8p          9.3p                       6.4p       
                                                                                                                                                                                                                                                                                            per share                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                            Proforma underlying diluted earnings per                
                                                                                                                                                                                                                                                                                            share growth at constant currency is 45%.               
 Interest cover                                                                                            None                                                                    Not applicable                                                                                           Underlying EBITDA as a multiple of net                  
                                                                                                                                                                                                                                                                                            interest payable on bank loans and                      
                                                                                                                                                                                                                                                                                            overdrafts. This measure is used for bank               
                                                                                                                                                                                                                                                                                            covenant testing.                                       
 Balance Sheet Measures                                                                                                                                                            
 Net debt                                                                                                  Cash and cash equivalents less interest-bearing loans and borrowings    Reconciliation of net debt (note 11)                                                                     Net debt comprises total borrowings                     
                                                                                                                                                                                                                                                                                            (interest-bearing loans and finance                     
                                                                                                                                                                                                                                                                                            leases) and cash and cash equivalents. Net               
                                                                                                                                                                                                                                                                                            debt is one measure that could be used to               
                                                                                                                                                                                                                                                                                            indicate the strength of the Group's                    
                                                                                                                                                                                                                                                                                            Balance Sheet position and is a useful                  
                                                                                                                                                                                                                                                                                            measure of the indebtedness of the Group.               
 Net debt at average exchange rates                                                                        Cash and cash equivalents less interest-bearing loans and borrowings    Translational currency impacts                                                                           Net debt (as above) is presented in the                 
                                                                                                                                                                                                                                                                                            Balance Sheet translated at year end                    
                                                                                                                                                                                                                                                                                            exchange rates. For bank covenant testing               
                                                                                                                                                                                                                                                                                            purposes net debt is converted using                    
                                                                                                                                                                                                                                                                                            average exchange rates for the year.                    
                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                            Net debt                                  31 Dec 17 £m  31 Dec 16 £m                        
                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                            As reported                               571.8         541.5                               
                                                                                                                                                                                                                                                                                            Impact of foreign exchange                22.8          (51.1)                              
                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                            At average exchange rates                 594.6         490.4                               
                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                    
 Leverage or net debt to underlying EBITDA                                                                 None                                                                    Not applicable                                                                                           Net debt at average exchange rates divided               
                                                                                                                                                                                                                                                                                            by underlying EBITDA for existing                       
                                                                                                                                                                                                                                                                                            businesses at each year end. This measure               
                                                                                                                                                                                                                                                                                            is used for bank covenant testing.                      
 Working capital                                                                                           Inventories, trade and other receivables less trade and other payables  Not applicable                                                                                           Working capital comprises inventories,                  
                                                                                                                                                                                                                                                                                            current and non-current trade and other                 
                                                                                                                                                                                                                                                                                            receivables, and current and non-current                
                                                                                                                                                                                                                                                                                            trade and other payables.                               
 Cash Flow Measures                                                                                                                                                                
 Underlying operating cash flow (pre capex)                                                                Net cash from operatingactivities                                       Non-working capital items                                                                                Underlying operating cash flow (pre capex)               
                                                                                                                                                                                                                                                                                            is calculated as underlying EBITDA                      
                                                                                                                                                                                                                                                                                            adjusted for movements in working capital.               
                                                                                                                                                                                                                                                                                            This measure provides additional useful                 
                                                                                                                                                                                                                                                                                            information in respect of cash generation               
                                                                                                                                                                                                                                                                                            and is consistent with how business                     
                                                                                                                                                                                                                                                                                            performance is measured internally.                     
                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                            Underlying operating cash     flow        2017 £m       2016 £m                             
                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                            Underlying EBITDA                         313.1         122.2                               
                                                                                                                                                                                                                                                                                            (Increase)/decrease in     inventory      (8.1)         15.0                                
                                                                                                                                                                                                                                                                                            Decrease in receivables                   8.1           22.5                                
                                                                                                                                                                                                                                                                                            Decrease in payables                      (16.1)        (9.3)                               
                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                            Underlying operating cash          flow   297.0         150.4                               
                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                    
 Underlying profit conversion to cash (pre capex) percentage                                               None                                                                    Not applicable                                                                                           Underlying operating cash flow (pre capex)               
                                                                                                                                                                                                                                                                                            as a percentage of underlying EBITDA,                   
                                                                                                                                                                                                                                                                                            being 95% in 2017 and 123% in 2016.  This               
                                                                                                                                                                                                                                                                                            is a key performance measure that is used               
                                                                                                         

- More to follow, for following part double click  ID:nRST3300Ff