REG - Rank Group PLC - Final Results <Origin Href="QuoteRef">RNK.L</Origin> - Part 2
20/08/2015 07:00
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short period of time,
although they will stabilise over a longer period. The business is also
vulnerable to the potential impact of a small number of customers who can
create volatility from the level of their gaming win. Win percentages may also
be affected by misfeasance or any other problems with the accurate running of
the game.
Impact
Gaming win margin directly impacts profitability.
Mitigation
Gaming limits are actively used to manage the exposure of the business at all
times.
Programmes are in place to manage high staking VIP customers through a
dedicated VIP team and reward programmes exist to manage and incentivise
loyalty.
Resources, including a security team, are in place to review and detect
misfeasance and any other operational difficulties with game play.
Direction of travel - stable
· Loss of licences
Rank's gaming licenses are fundamental to its operation. In the British venues
part of the business there is a requirement to hold an operator's licence from
the Gambling Commission (the body responsible for regulating commercial
gambling in Great Britain) in respect of each of the licensed activities
undertaken. Additionally, it is necessary to hold premises licences from the
relevant local authority in which each venue is situated, one for gambling
activities and one for the sale of alcohol. Our UK customer facing remote
gaming activities require licences from both the UK Gambling Commission and
the Alderney Gambling Control Commission. Our operations in Spain and Belgium
are also subject to licensing requirements in the jurisdictions and local
areas in which they operate.
Impact
The loss of licences could have an adverse effect on our business and
profitability and prevent us from providing gambling services.
Mitigation
Rank has a dedicated compliance function that is independent of operations and
a separate internal audit function that is independent of both operations and
the compliance function. Rank maintains a strong and open relationship with
the UK Gambling Commission and the other relevant regulatory bodies in all
jurisdictions in which we operate.
Direction of travel - stable
· Business continuity and disaster recovery
Due to the venues based nature of much of the business, the Group's
significant reliance on technology, and the criticality of staff in serving
customers and running the business, serious disruptive events such as building
fire, pandemic or serious technology failure may cause an interruption to the
ability to operate elements of the business if business continuity and
disaster recovery plans failed to operate successfully.
Impact
If business continuity and disaster recovery plans failed to operate
successfully the business would experience delays in recovering critical
revenue-generating activities or operational processes, such as financial
reporting, causing both financial and reputational damage.
Mitigation
A Group business continuity plan is in place and regularly reviewed.
Departmental plans are required for all critical departments and premises, and
managed by the director of security. IT plans were reviewed in light of the
transfer of risk arising through the engagement of IT outsourced supplier Tata
Consultancy Services and suitable plans are in place for their operations.
Direction of travel - stable
· Wage rise inflation
We employ a large number of employees at or just above the minimum wage.
Significant increases to the national minimum wage, national living wage or
other significant changes to employment regulation could have an adverse
impact on the Group's results.
Impact
Changes generating significant employment cost inflation could negatively
impact the Group's profitability.
Mitigation
Rank continually monitors the regulatory environment for changes with a view
to ensuring that appropriate compensatory productivity improvements can be
implemented and the additional costs minimised.
Direction of travel - stable
Information technology risk
· Reliance on technology
The Group is highly dependent on complex technology and advanced information
systems with many interfaces and a significant number of separate suppliers.
The pace of business change and development means that IT changes such as new
software coding, systems enhancements and new software application
integrations are undertaken continually and consequently these systems are
inherently vulnerable to experiencing malfunctions, failures, or cyber attacks
such as viruses or hacker intrusion. Comprehensive technology resilience and
systems protection measures are in place but it is difficult to detect all
threats and vulnerabilities in order to prevent all service interruptions and
problems.
Impact
If our prevention measures for technology attacks should fail our reputation
may be harmed and customers deterred from using our services which may in turn
have a material adverse effect on our financial performance. Failures in
service provision could also render the Group unable to serve customers during
such service interruptions, again having an adverse effect on revenue and
profit.
Mitigation
The IT outsourcing to Tata Consultancy Services has substantially enhanced the
resources for providing business support and resilience around key systems.
Over the past year a substantial amount of investment has been put into
enhancing the security, network and application infrastructure and further
work will continue into the coming year.
Direction of travel - stable
Directors' Responsibility Statement
Each of the directors named below confirm that to the best of his or her
knowledge:
· the financial statements, prepared in accordance with the financial
statements under International Financial Reporting Standards (IFRSs) as
adopted by the European Union, give a true and fair view of the assets,
liabilities, financial position and profit of the Company and the undertakings
included in the consolidation taken as a whole; and
· the strategic report includes a fair review of the development and
performance of the business and the position of the Company and the
undertakings included in the consolidation taken as a whole, together with a
description of the risks and uncertainties that they face.
The directors of The Rank Group Plc are:
Chris Bell
Henry Birch
Ian Burke
Clive Jennings
Lord Kilmorey
Owen O'Donnell
Tim Scoble
Shaa Wasmund MBE
Signed on behalf of the board on 19 August 2015
Henry Birch Clive Jennings
Chief Executive Finance Director
Group Financial Information
Group Income Statement
For the year ended 30 June 2015
Year ended 30 June 2015 Year ended 30 June 2014
Before Exceptional Before Exceptional
exceptional items exceptional items
items (note 3) Total items (note 3) Total
£m £m £m £m £m £m
Continuing operations
Revenue before adjustment for free bets, promotions and customer bonuses 738.3 - 738.3 707.7 - 707.7
Free bets, promotions and customer bonuses (37.6) - (37.6) (29.2) - (29.2)
Revenue 700.7 - 700.7 678.5 - 678.5
Cost of sales (376.6) - (376.6) (380.0) - (380.0)
Gross profit 324.1 - 324.1 298.5 - 298.5
Other operating costs (240.1) 2.1 (238.0) (226.1) (46.5) (272.6)
Group operating profit (loss) 84.0 2.1 86.1 72.4 (46.5) 25.9
Financing:
- finance costs (10.4) (1.3) (11.7) (10.1) (4.3) (14.4)
- finance income 0.4 - 0.4 0.1 1.8 1.9
- other financial (losses) gains (0.3) - (0.3) 1.0 - 1.0
Total net financing charge (10.3) (1.3) (11.6) (9.0) (2.5) (11.5)
Profit (loss) before taxation 73.7 0.8 74.5 63.4 (49.0) 14.4
Taxation (16.8) 1.3 (15.5) (10.6) 13.6 3.0
Profit (loss) for the year from continuing operations 56.9 2.1 59.0 52.8 (35.4) 17.4
Discontinued operations - profit - 15.8 15.8 - 2.8 2.8
Profit (loss) for the year 56.9 17.9 74.8 52.8 (32.6) 20.2
Attributable to:
Equity holders of the parent 56.9 17.9 74.8 52.8 (32.6) 20.2
Earnings (loss) per share attributable to equity shareholders
- basic 14.6p 4.5p 19.1p 13.5p (8.3)p 5.2p
- diluted 14.6p 4.5p 19.1p 13.5p (8.3)p 5.2p
Earnings (loss) per share - continuing operations
- basic 14.6p 0.5p 15.1p 13.5p (9.0)p 4.5p
- diluted 14.6p 0.5p 15.1p 13.5p (9.0)p 4.5p
Earnings per share - discontinued operations
- basic - 4.0p 4.0p - 0.7p 0.7p
- diluted - 4.0p 4.0p - 0.7p 0.7p
Group Statement of Comprehensive Income
For the year ended 30 June 2015
Year ended Year ended
30 June 30 June
2015 2014
£m £m
Comprehensive income:
Profit for the year 74.8 20.2
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss:
Exchange adjustments net of tax (4.7) (2.4)
Items that will not be reclassified to profit or loss:
Actuarial loss on retirement benefits net of tax (0.4) (0.3)
Total comprehensive income for the year 69.7 17.5
Attributable to:
Equity holders of the parent 69.7 17.5
Group Statement of Changes in Equity
For the year ended 30 June 2015
Capital Exchange Retained
Share Share redemption translation earnings
capital premium reserve reserve (losses) Total
£m £m £m £m £m £m
At 1 July 2013 54.2 98.4 33.4 16.1 39.8 241.9
Comprehensive income:
Profit for the year - - - - 20.2 20.2
Other comprehensive income:
Exchange adjustments net of tax - - - (2.4) - (2.4)
Actuarial loss on retirement benefits net of tax - - - - (0.3) (0.3)
Total comprehensive (expense) income for the year - - - (2.4) 19.9 17.5
Transactions with owners:
Dividends paid to equity holders (see note 6) - - - - (16.4) (16.4)
Debit in respect of employee share schemes including tax - - - - (0.7) (0.7)
At 30 June 2014 54.2 98.4 33.4 13.7 42.6 242.3
Comprehensive income:
Profit for the year - - - - 74.8 74.8
Other comprehensive income:
Exchange adjustments net of tax - - - (4.7) - (4.7)
Actuarial loss on retirement benefits net of tax - - - - (0.4) (0.4)
Total comprehensive (expense) income for the year - - - (4.7) 74.4 69.7
Transactions with owners:
Dividends paid to equity holders (see note 6) - - - - (18.6) (18.6)
Credit in respect of employee share schemes including tax - - - - 1.0 1.0
At 30 June 2015 54.2 98.4 33.4 9.0 99.4 294.4
Group Balance Sheet
At 30 June 2015
As at As at
30 June 30 June
2015 2014
£m £m
Assets
Non-current assets
Intangible assets 395.7 390.2
Property, plant and equipment 203.4 217.5
Deferred tax assets 2.2 2.5
Other receivables 5.3 3.1
606.6 613.3
Current assets
Inventories 2.8 3.1
Other receivables 29.3 31.1
Income tax receivable 1.7 6.6
Cash and short-term deposits 89.6 47.1
123.4 87.9
Assets held for sale 0.6 -
Total assets 730.6 701.2
Liabilities
Current liabilities
Trade and other payables (147.0) (113.2)
Income tax payable (28.0) (40.3)
Financial liabilities - loans and borrowings (125.5) (4.4)
Provisions (8.9) (10.5)
(309.4) (168.4)
Net current liabilities (186.0) (80.5)
Non-current liabilities
Trade and other payables (37.6) (40.5)
Financial liabilities - loans and borrowings (17.6) (179.5)
Deferred tax liabilities (23.1) (18.1)
Provisions (44.7) (49.0)
Retirement benefit obligations (3.8) (3.4)
(126.8) (290.5)
Total liabilities (436.2) (458.9)
Net assets 294.4 242.3
Capital and reserves attributable to the Company's equity shareholders
Share capital 54.2 54.2
Share premium 98.4 98.4
Capital redemption reserve 33.4 33.4
Exchange translation reserve 9.0 13.7
Retained earnings 99.4 42.6
Total shareholders' equity 294.4 242.3
Group Cash Flow Statement
For the year ended 30 June 2015
Year ended Year ended
30 June 30 June
2015 2014
£m £m
Cash flows from operating activities
Cash generated from operations 146.6 61.6
Interest received 0.3 0.1
Interest paid (7.8) (8.2)
Tax paid (2.2) (19.1)
Discontinued operations - (6.6)
Net cash from operating activities 136.9 27.8
Cash flows from investing activities
(Disposal) acquisition of subsidiaries including deferred consideration (net of cash disposed or acquired) (0.1) 1.1
Purchase of intangible assets (10.5) (13.5)
Purchase of property, plant and equipment (21.4) (30.8)
Proceeds from sale of property, plant and equipment 1.5 0.3
Purchase of convertible loan note (2.4) -
Net cash used in investing activities (32.9) (42.9)
Cash flows from financing activities
Dividends paid to equity holders (18.6) (16.4)
(Repayment) drawdown on revolving credit facilities (20.0) 20.0
Repayment of term loans (20.0) -
Repurchase of bonds (0.4) -
Finance lease principal payments (3.1) (3.2)
Net cash (used in) from financing activities (62.1) 0.4
Net increase (decrease) in cash, cash equivalents and bank overdrafts 41.9 (14.7)
Effect of exchange rate changes (0.7) (0.6)
Cash and cash equivalents at start of year 46.3 61.6
Cash and cash equivalents at end of year 87.5 46.3
1. General information, basis of preparation and accounting policies
General information
The Company is a public limited company which is listed on the London Stock
Exchange and is incorporated and domiciled in England and Wales under
registration number 03140769. The address of its registered office is
Statesman House, Stafferton Way, Maidenhead, SL6 1AY.
This condensed consolidated financial information was approved for issue on 19
August 2015.
This condensed consolidated financial information does not constitute
statutory accounts within the meaning of Section 434 of the Companies Act
2006. The statutory accounts for the year ended 30 June 2015 were approved by
the board of directors on 19 August 2015, but have not yet been delivered to
the Registrar of Companies. The report of the auditors on those accounts was
unqualified, did not contain an emphasis of matter paragraph and did not
contain a statement made under Section 498 of the Companies Act 2006. The
statutory accounts for the year ended 30 June 2014 have been delivered to the
Registrar of Companies.
Basis of preparation
The financial information attached has been extracted from the audited
financial statements for the year ended 30 June 2015. The financial
information has been prepared in accordance with IFRS as adopted by the
European Union.
Going concern
In adopting the going concern basis for preparing the financial information
the directors have considered the issues impacting the Group during the period
as detailed in the business review above and have reviewed the Group's
projected compliance with its banking covenants. The Group is in advanced
stages of negotiating replacement bank facilities and based on the Group's
cash flow forecasts and operating budgets, the directors believe that the
Group will generate sufficient cash to meet its borrowing requirements for at
least 12 months from the date of approval of the financial statements and
comply with its banking covenants.
Accounting policies
Except as described below, the accounting policies applied are consistent with
those of the annual financial statements for the year ended 30 June 2014, as
described in those financial statements.
The following new standards, amendments and interpretations of existing
standards are mandatory for the first time for the financial period beginning
1 July 2014:
• IFRS 10 Consolidated Financial Statements
• IFRS 11 Joint Arrangements
• IFRS 12 Disclosure of Interests in Other Entities
• IAS 27 Separate Financial Statements (Revised)
• IAS 28 Investments in Associates and Joint Ventures (Revised)
• IAS 32 Financial Instruments: Presentation - Offsetting Financial
Assets and Liabilities (Amendment)
• IAS 36 Recoverable Amount Disclosures for Non-Financial Assets
(Amendment)
• IAS 39 Novation of Derivatives and Continuation of Hedge
Accounting (Amendment)
• IFRIC 21 Levies
The Group has not been materially impacted by the adoption of any of these
standards, amendments or interpretations.
The Group has not early adopted any other standard, amendment or
interpretation that was issued but is not yet effective.
2. Segment information - continuing operations
Year ended 30 June 2015
Grosvenor Casinos Mecca Enracha Central
Venues Digital Venues Digital Venues Digital costs Total
£m £m £m £m £m £m £m £m
Continuing operations
Group revenue reported in internal information 401.1 22.3 224.4 65.2 25.3 - - 738.3
Free bets, promotions and customer bonuses (6.7) (5.1) (13.7) (12.1) - - - (37.6)
Segment revenue 394.4 17.2 210.7 53.1 25.3 - - 700.7
Operating profit (loss) before exceptional items 63.4 3.1 28.9 14.1 3.1 (0.5) (28.1) 84.0
Exceptional profit - - 1.0 - 1.1 - - 2.1
Segment result 63.4 3.1 29.9 14.1 4.2 (0.5) (28.1) 86.1
Finance costs (11.7)
Finance income 0.4
Other financial losses (0.3)
Profit before taxation 74.5
Taxation (15.5)
Profit for the year from continuing operations 59.0
Year ended 30 June 2014
Grosvenor Casinos Mecca Enracha Central
Venues Digital Venues Digital Venues Digital costs Total
£m £m £m £m £m £m £m £m
Continuing operations
Group revenue reported in internal information 377.7 13.5 229.3 58.9 28.3 - - 707.7
Free bets, promotions and customer bonuses (3.7) (3.1) (12.5) (9.9) - - - (29.2)
Segment revenue 374.0 10.4 216.8 49.0 28.3 - - 678.5
Operating profit (loss) before exceptional items 57.7 (0.9) 21.1 15.9 1.2 (0.4) (22.2) 72.4
Exceptional loss (12.5) - (25.3) - (8.7) - - (46.5)
Segment result 45.2 (0.9) (4.2) 15.9 (7.5) (0.4) (22.2) 25.9
Finance costs (14.4)
Finance income 1.9
Other financial gains 1.0
Profit before taxation 14.4
Taxation 3.0
Profit for the year from continuing operations 17.4
2. Segment information - continuing operations (continued)
To increase transparency, the Group has decided to include additional
disclosure analysing total costs by type and segment. A reconciliation of
total costs on continuing operations, before exceptional items, by type and
segment is as follows:
Year ended 30 June 2015
Grosvenor Casinos Mecca Enracha Central
Venues Digital Venues Digital Venues Digital costs Total
£m £m £m £m £m £m £m £m
Employment and related costs 138.9 3.2 54.8 6.7 12.3 0.2 17.0 233.1
Taxes and duties 84.6 1.8 35.3 5.0 1.7 - 1.9 130.3
Direct costs 16.9 4.8 22.6 14.4 2.1 0.2 - 61.0
Property costs 30.0 0.2 27.0 0.3 1.6 - 1.0 60.1
Marketing 14.6 2.2 10.5 9.7 0.9 - - 37.9
Depreciation and amortisation 23.7 1.5 12.7 1.5 1.5 - 1.4 42.3
Other 22.3 0.4 18.9 1.4 2.1 0.1 6.8 52.0
Total costs before exceptional items 331.0 14.1 181.8 39.0 22.2 0.5 28.1 616.7
Cost of sales 376.6
Operating costs 240.1
Total costs before exceptional items 616.7
Year ended 30 June 2014
Grosvenor Casinos Mecca Enracha Central
Venues Digital Venues Digital Venues Digital costs Total
£m £m £m £m £m £m £m £m
Employment and related costs 137.7 2.0 55.2 6.5 13.4 0.2 15.2 230.2
Taxes and duties 78.1 - 48.1 0.4 2.1 - 2.0 130.7
Direct costs 15.6 3.9 21.0 14.5 2.5 0.1 - 57.6
Property costs 29.9 0.2 27.6 0.7 2.5 - 0.9 61.8
Marketing 13.2 2.6 10.4 7.0 0.9 - - 34.1
Depreciation and amortisation 22.1 2.0 13.8 2.4 2.1 - 1.2 43.6
Other 19.7 0.6 19.6 1.6 3.6 0.1 2.9 48.1
Total costs before exceptional items 316.3 11.3 195.7 33.1 27.1 0.4 22.2 606.1
Cost of sales 380.0
Operating costs 226.1
Total costs before exceptional items 606.1
3. Exceptional items
Year ended Year ended
30 June 30 June
2015 2014
£m £m
Exceptional items relating to continuing operations
Impairment charges (1.2) (12.9)
Impairment reversals 3.1 1.5
Net charge to provisions for property leases (1.5) (6.6)
Closure of venues 1.7 (0.7)
Acquisition and integration costs - (1.7)
Net charge to provision for indirect taxation - (26.1)
Exceptional operating income (costs) 2.1 (46.5)
Finance costs (see note 4) (1.3) (4.3)
Finance income (see note 4) - 1.8
Taxation (see note 5) 1.3 13.6
Exceptional items relating to continuing operations 2.1 (35.4)
Exceptional items relating to discontinued operations
Finance costs (see note 4) (0.4) (0.3)
Finance income (see note 4) - 0.3
Taxation (see note 5) 16.2 2.8
Exceptional items relating to discontinued operations 15.8 2.8
Total exceptional items 17.9 (32.6)
Continuing operations - year ended 30 June 2015
Impairment charges
The Group recognised impairment charges of £1.2m of which £0.6m relates to a
Grosvenor Casinos venue and £0.6m to two Mecca venues. Performance at these
venues has not been in line with expectations.
Impairment reversals
The Group reversed previous impairment charges of £0.7m in the UK, £0.3m of
which related to a Grosvenor Casinos venue and £0.4m of which related to a
Mecca venue. The reversal was in respect of venues where changes in the
commercial environment had led to improvements in performance.
A further reversal of £0.8m was made in respect of a casino in Belgium which
has shown continued improved performance above expectations.
A further reversal of £1.6m was recognised in respect of an Enracha venue
which has shown continued improved performance following a competitor
closure.
Net charge to provisions for property leases
The Group recognised a net charge of £1.5m in relation to provision for
property leases in the year. This included a charge of £1.1m in two Grosvenor
Casinos venues and £1.0m in respect of a Mecca venue for unavoidable
dilapidations costs and where expected income no longer exceeds the
unavoidable costs associated with these sites.
In addition a reversal of £0.6m has been made in respect of a Grosvenor
Casinos venue where the provision has been reduced due to expected sublet
income.
Further movements in the property lease provision are explained under closure
of venues below.
Closure of venues
During the year the Group has closed, or committed to close, twelve venues.
Nine of these venues are in Mecca, two are in Grosvenor Casinos and one is in
Enracha. The credit in the period includes a reduction in the property lease
provision required at two of these venues of £2.3m, an increase in the
restructuring provision of £0.5m at three venues which are due to close in
early 2015/16, an increase in the property lease provision for dilapidations
of £0.7m at a single venue, and a profit on disposal of a freehold property of
£0.6m.
4. Financing
Year ended Year ended
30 June 30 June
2015 2014
£m £m
Continuing operations:
Finance costs:
Interest on debt and borrowings (5.7) (6.4)
Amortisation of issue costs on borrowings (2.5) (1.5)
Interest payable on finance leases (0.9) (1.0)
Unwinding of discount in property lease provisions (1.2) (1.1)
Unwinding of discount in disposal provisions (0.1) (0.1)
Total finance costs (10.4) (10.1)
Finance income:
Interest income on short term bank deposits 0.2 0.1
Interest income on direct taxation 0.2 -
Total finance income 0.4 0.1
Other financial (losses) gains (0.3) 1.0
Total net financing charge for continuing operations before exceptional items (10.3) (9.0)
Exceptional finance costs (1.3) (4.3)
Exceptional finance income - 1.8
Total net financing charge for continuing operations (11.6) (11.5)
Discontinued operations:
Exceptional finance costs (0.4) (0.3)
Exceptional finance income - 0.3
Total net financing charge for discontinued operations (0.4) -
Total net financing charge (12.0) (11.5)
Exceptional finance costs recognised in continuing operations in the year of
£1.3m are in respect of tax balances provided for.
Exceptional finance costs recognised in discontinued operations in the year of
£0.4m relate to the cost of a letter of credit held in respect of taxation
balances on disposed entities.
A reconciliation of total net financing charge for continuing operations
before exceptional items to adjusted net interest included in adjusted profit
is disclosed below:
Year ended Year ended
30 June 30 June
2015 2014
£m £m
Total net financing charge for continuing operations before exceptional items (10.3) (9.0)
Adjust for :
Unwinding of discount in disposal provisions 0.1 0.1
Other financial losses (gains) - including foreign exchange 0.3 (1.0)
Adjusted net interest payable (9.9) (9.9)
5. Taxation
Year ended 30 June 2015
Continuing operations Discontinued operations Total
£m £m £m
Current income tax
Current income tax - UK (10.0) - (10.0)
Current income tax - overseas (2.7) - (2.7)
Current income tax on exceptional items 1.1 0.1 1.2
Amounts over provided in previous period 0.7 - 0.7
Amounts over provided in previous period on exceptional items 0.4 16.1 16.5
Total current income tax (charge) credit (10.5) 16.2 5.7
Deferred tax
Deferred tax - UK (3.7) - (3.7)
Deferred tax - overseas (0.1) - (0.1)
Restatement of deferred tax due to rate change 0.2 - 0.2
Deferred tax on exceptional items (0.2) - (0.2)
Amounts under provided in previous period (1.2) - (1.2)
Total deferred tax charge (5.0) - (5.0)
Tax (charge) credit in the income statement (15.5) 16.2 0.7
Year ended 30 June 2014
Continuing operations Discontinued operations Total
£m £m £m
Current income tax
Current income tax - UK (12.4) - (12.4)
Current income tax - overseas (0.4) - (0.4)
Current income tax on exceptional items 7.8 - 7.8
Amounts over provided in previous period 5.0 2.8 7.8
Amounts over provided in previous period on exceptional items 2.3 - 2.3
Total current income tax credit 2.3 2.8 5.1
Deferred tax
Deferred tax - UK (1.3) - (1.3)
Deferred tax - overseas (0.3) - (0.3)
Restatement of deferred tax due to rate change 2.6 - 2.6
Deferred tax on exceptional items 3.5 - 3.5
Amounts under provided in previous period (3.8) - (3.8)
Total deferred tax credit 0.7 - 0.7
Tax credit in the income statement 3.0 2.8 5.8
Tax on exceptional items - continuing operations
The taxation impacts of continuing exceptional items are disclosed below:
Year ended 30 June 2015 Year ended 30 June 2014
Current income tax Deferred tax Total Current income tax Deferred tax Total
£m £m £m £m £m £m
Impairment charges - 0.1 0.1 - 3.1 3.1
Impairment reversals - (0.6) (0.6) - - -
Net charge to provisions for property leases 0.3 - 0.3 0.9 0.4 1.3
Acquisition and integration costs - - - 0.1 - 0.1
Closure of venues 0.5 0.3 0.8 0.1 - 0.1
Net charge to provision for indirect taxation - - - 5.9 - 5.9
Exceptional finance costs 0.3 - 0.3 1.0 - 1.0
Exceptional finance income - - - (0.2) - (0.2)
Amounts over provided in respect of previous years 0.4 - 0.4 2.3 - 2.3
Tax credit (charge) on exceptional items - continuing operations 1.5 (0.2) 1.3 10.1 3.5 13.6
Tax on exceptional items - discontinued operations
The taxation impacts of discontinued exceptional items are disclosed below:
Year ended 30 June 2015 Year ended 30 June 2014
Current income tax Deferred tax Total Current income tax Deferred tax Total
£m £m £m £m £m £m
Tax refunds arising on previously disposed subsidiary undertakings - - - - 2.8 2.8
Net release of provisions relating to overseas tax audits 16.1 - 16.1 - - -
Exceptional finance costs 0.1 - 0.1 - - -
Tax credit on exceptional items - discontinued operations 16.2 - 16.2 - 2.8 2.8
The £16.1m exceptional tax credit in discontinued operations in respect of
provisions relating to overseas tax audits consists of the release from income
tax payable of £16.9m following the successful resolution of a transfer
pricing dispute, offset by income tax payable of £0.8m in relation to an
overseas audit of a disposed entity.
Tax effect of items within other comprehensive income
Year ended Year ended
30 June 30 June
2015 2014
£m £m
Current income tax charge on exchange movements offset in reserves (0.4) (0.2)
Deferred tax credit on actuarial movement on retirement benefits 0.1 0.1
Total tax charge on items within other comprehensive income (0.3) (0.1)
The credit in respect of employee share schemes included within the Statement
of Changes in Equity includes a deferred tax credit of £nil (year ended 30
June 2014: charge of £0.3m on the debit in respect of employee share
schemes).
Factors affecting future taxation
UK corporation tax is calculated at 20.75% (year ended 30 June 2014: 22.5%) of
the estimated assessable profit for the period. Taxation for overseas
operations is calculated at the local prevailing rates.
On 20 March 2013, the Chancellor of the Exchequer announced the reduction in
the main rate of UK corporation tax to 21% with effect from 1 April 2014 and a
further 1% reduction to 20% from 1 April 2015. These changes were
substantively enacted in July 2013.
On 20 June 2014, the
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