REG - Trinity Mirror PLC - Half Yearly Report <Origin Href="QuoteRef">TNI.L</Origin> - Part 2
06/09/2014 20:41
- Part 2: For the preceding part double click ID:nRSb4434Na
recognised by associates - (0.9) (1.0)
Other comprehensive (costs)/income for the period (9.8) 3.1 24.1
Total comprehensive income/(costs) for the period 35.8 26.9 (72.3)
Consolidated statement of changes in equity
for the 26 weeks ended 29 June 2014 (26 weeks ended 30 June 2013 and 52 weeks ended 29 December 2013)
Sharecapital£m Share premiumaccount£m Capitalredemptionreserve£m Retained earnings and other reserves£m Total£m
At 29 December 2013 (audited) (25.8) (1,121.6) (4.3) 580.0 (571.7)
Profit for the period - - - (45.6) (45.6)
Other comprehensive costs for the period - - - 9.8 9.8
Total comprehensive income for the period - - - (35.8) (35.8)
Capital reduction - 514.8 - (514.8) -
Charge to equity for equity-settled share-based payments - - - 3.0 3.0
Purchase of shares for LTIP - - - 2.2 2.2
At 29 June 2014 (unaudited) (25.8) (606.8) (4.3) 34.6 (602.3)
Sharecapital£m Share premiumaccount£m Capitalredemptionreserve£m Retained earnings and other reserves£m Total£m
At 30 December 2012 (audited) (25.8) (1,121.6) (4.3) 512.7 (639.0)
Profit for the period - - - (23.8) (23.8)
Other comprehensive income for the period - - - (3.1) (3.1)
Total comprehensive income for the period - - - (26.9) (26.9)
Credit to equity for equity-settled share-based payments - - - (0.9) (0.9)
Purchase of shares for LTIP - - - 3.0 3.0
At 30 June 2013 (unaudited) (25.8) (1,121.6) (4.3) 487.9 (663.8)
Sharecapital£m Share premiumaccount£m Capitalredemptionreserve£m Retained earnings and other reserves£m Total£m
At 30 December 2012 (audited) (25.8) (1,121.6) (4.3) 512.7 (639.0)
Loss for the period - - - 96.4 96.4
Other comprehensive income for the period - - - (24.1) (24.1)
Total comprehensive costs for the period - - - 72.3 72.3
Credit to equity for equity-settled share-based payments - - - (8.0) (8.0)
Purchase of shares for LTIP - - - 3.0 3.0
At 29 December 2013 (audited) (25.8) (1,121.6) (4.3) 580.0 (571.7)
Consolidated balance sheet
at 29 June 2014 (30 June 2013 and 29 December 2013)
notes 29 June 2014(unaudited)£m 30 June 2013(unaudited)£m 29 December2013(audited)£m
Non-current assets
Goodwill 12.0 17.8 12.0
Other intangible assets 670.0 893.8 671.1
Property, plant and equipment 330.0 348.7 337.6
Investment in associates 56.1 25.4 26.8
Retirement benefit assets 13 12.9 25.4 15.7
Deferred tax assets 56.9 68.4 57.0
Derivative financial instruments 12 - 8.7 1.9
1,137.9 1,388.2 1,122.1
Current assets
Inventories 6.3 6.8 8.9
Trade and other receivables 110.7 102.4 110.5
Cash and cash equivalents 12 12.3 46.7 15.5
129.3 155.9 134.9
Total assets 1,267.2 1,544.1 1,257.0
Non-current liabilities
Borrowings 12 (59.9) (67.6) (62.0)
Retirement benefit obligations 13 (285.0) (320.7) (267.9)
Deferred tax liabilities (178.8) (261.5) (180.7)
Provisions 14 (12.5) (7.0) (13.8)
Derivative financial instruments 12 (1.5) - -
(537.7) (656.8) (524.4)
Current liabilities
Borrowings 12 - (96.0) (40.4)
Trade and other payables (96.9) (102.1) (90.3)
Current tax liabilities (15.2) (17.5) (16.7)
Provisions 14 (15.1) (7.5) (10.3)
Derivative financial instruments 12 - (0.4) (3.2)
(127.2) (223.5) (160.9)
Total liabilities (664.9) (880.3) (685.3)
Net assets 602.3 663.8 571.7
Equity
Share capital 15 (25.8) (25.8) (25.8)
Share premium account 15 (606.8) (1,121.6) (1,121.6)
Capital redemption reserve 15 (4.3) (4.3) (4.3)
Retained earnings and other reserves 15 34.6 487.9 580.0
Total equity attributable to equity holders of the parent (602.3) (663.8) (571.7)
Consolidated cash flow statement
for the 26 weeks ended 29 June 2014 (26 weeks ended 30 June 2013 and 52 weeks ended 29 December 2013)
notes 26 weeks ended 29 June2014 (unaudited)£m 26 weeks ended 30 June2013(unaudited)£m 52 weeks ended 29 December2013(audited)£m
Cash flows from operating activities
Cash generated from operations 11 58.8 57.5 92.9
Income tax paid (9.3) (12.4) (22.0)
Net cash inflow from operating activities 49.5 45.1 70.9
Investing activities
Interest received 0.2 0.1 0.3
Dividend received from associates - 2.3 2.3
Proceeds on disposal of subsidiary undertaking 0.9 - 2.5
Proceeds on disposal of property, plant and equipment 0.1 - 0.7
Purchases of property, plant and equipment (5.0) (4.8) (8.0)
Acquisition of associate undertaking - (14.2) (14.2)
Net cash used in investing activities (3.8) (16.6) (16.4)
Financing activities
Interest paid on borrowings (2.5) (3.0) (5.7)
Repayment of borrowings (44.2) - (54.5)
Purchase of shares for LTIP (2.2) (3.0) (3.0)
Net cash used in financing activities (48.9) (6.0) (63.2)
Net (decrease)/increase in cash and cash equivalents (3.2) 22.5 (8.7)
Cash and cash equivalents at the beginning of the period 12 15.5 24.2 24.2
Cash and cash equivalents at the end of the period 12 12.3 46.7 15.5
Notes to the consolidated financial statements
for the 26 weeks ended 29 June 2014 (26 weeks ended 30 June 2013 and 52 weeks ended 29 December 2013)
1. General information
The financial information in respect of the 52 weeks ended 29 December 2013 does not constitute statutory accounts within
the meaning of Section 434 of the Companies Act 2006. A copy of the statutory accounts for that period has been delivered
to the Registrar of Companies and is available at the Company's registered office at One Canada Square, Canary Wharf,
London E14 5AP and on the Company's website at www.trinitymirror.com. The auditors reported on those accounts: their report
was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section
498(2) or (3) of the Companies Act 2006.
The consolidated financial statements for the 26 weeks ended 29 June 2014 do not constitute statutory accounts within the
meaning of Section 434 of the Companies Act 2006 and have not been audited. No statutory accounts for the period have been
delivered to the Registrar of Companies. This half-yearly financial report constitutes a dissemination announcement in
accordance with Section 6.3 of the Disclosure and Transparency Rules.
The auditors have carried out a review of the consolidated financial statements and their report is set out on page 31.
The consolidated financial statements were approved by the directors on 28 July 2014. This announcement will be made
available at the Company's registered office at One Canada Square, Canary Wharf, London E14 5AP and on the Company's
website at www.trinitymirror.com.
2. Accounting polices
Basis of preparation
The Group's annual consolidated financial statements are prepared in accordance with IFRS as adopted by the European Union.
The consolidated financial statements included in this financial report have been prepared in accordance with IAS 34
'Interim Financial Reporting' as adopted by the European Union.
Going concern
Having considered all the factors impacting the Group's businesses, including downside sensitivities, the directors are
satisfied that the Group will be able to operate within the terms and conditions of the Group financing facilities for the
foreseeable future.
The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for
the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the Group's half-yearly
financial report.
Changes in accounting policy
Except as noted below, the same accounting policies, presentation and methods of computation are followed in the
consolidated financial statements as applied in the Group's latest annual consolidated financial statements.
The Group has adopted new, amended and revised standards and interpretations during the current financial period which have
had no material impact on the Group:
· IFRS 10 (Issued) 'Consolidated Financial Statements' - effective for periods beginning on or after 1 January 2014
· IFRS 11 (Issued) 'Joint Arrangements' - effective for periods beginning on or after 1 January 2014
· IFRS 12 (Issued) 'Disclosure of Interests in Other Entities' - effective for periods beginning on or after 1 January
2014
· IAS 27 (Revised) 'Separate Financial Statements' - effective for periods beginning on or after 1 January 2014
· IAS 28 (Revised) 'Investments in Associates' - effective for periods beginning on or after 1 January 2014
· IAS 32 (Amended) 'Financial Instruments' - effective for periods beginning on or after 1 January 2014
· IFRIC 21 (Issued) 'Levies' - effective for periods starting on or after 1 January 2014
At the date of approval of these consolidated financial statements the following new standards, which have not been applied
and when adopted will have no material impact on the Group, were in issue but not yet effective:
· IFRS 9 (Issued) 'Financial Instruments' - effective for periods starting on or after 1 January 2015
· IFRS 15 (Issued) 'Revenue from contracts with Customers' - effective for periods starting on or after 1 January
2017
Changes in reporting
Following a change in management structure, the Group has moved the revenue and results of fish4 from the Specialist
Digital operating segment to the Publishing operating segment. The revision to the operating segments has had no impact on
the revenue or operating profit of the Group. The 2013 comparatives have been restated as a result of this change. Note 16
sets out the impact of this change on the previously reported results.
Notes to the consolidated financial statements
for the 26 weeks ended 29 June 2014 (26 weeks ended 30 June 2013 and 52 weeks ended 29 December 2013)
2. Accounting polices (continued)
Critical judgements in applying the Group's accounting policies
In the process of applying the Group's accounting policies, described above, management has made the following judgements
that have the most significant effect on the amounts recognised in the financial statements:
Acquisitions and intangible assets
Judgements have been made in respect of the identification of intangible assets based on pre-acquisition forecasts and
market analysis. The initial valuations of acquired intangible assets are reviewed for impairment at each reporting date,
or more frequently if necessary.
Key sources of estimation uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year, are discussed below:
Impairment of goodwill and other intangible assets
Determining whether goodwill and other intangible assets are impaired requires an estimation of the value in use of the
cash-generating unit to which these have been allocated. The value in use calculation requires the Group to estimate the
future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate
present value.
Retirement benefits
Actuarial assumptions adopted and external factors can significantly vary the surplus or deficit of defined benefit pension
schemes. Advice is sourced from independent actuaries in selecting suitable assumptions.
Derivative financial instruments
Derivative financial instruments are recognised at fair value and can change significantly from period to period.
3. Operating segments
Operating segments are identified on the basis of internal reports about components of the Group that are regularly
reviewed by the Board and chief operating decision maker to allocate resources to the segments and to assess their
performance. The Group has four operating segments that are regularly reviewed by the Board and chief operating decision
maker.
The operating segments are: Publishing which includes all of our newspapers and associated digital publishing; Printing
which provides printing services to the publishing segment and to third parties; Specialist Digital which includes our
acquired digital specialist classified and our digital marketing services businesses; and Central which includes revenue
and costs not allocated to the operational divisions and our share of results of associates.
The accounting policies used in the preparation of each segment's revenue and results are the same as the Group's
accounting policies described in note 2. The Board and chief operating decision maker are not provided with an amount for
total assets by segment. The Group's operations are located in the UK and the Group is not subject to significant
seasonality during the year.
Segment revenue and results
26 weeks ended 29 June 2014 (unaudited) Publishing2014£m Printing 2014£m Specialist Digital 2014£m Central2014£m Total2014£m
Revenue
Segment sales 281.6 98.8 7.8 1.6 389.8
Inter-segment sales - (65.0) (0.6) - (65.6)
Total revenue 281.6 33.8 7.2 1.6 324.2
Segment result 53.7 - 0.8 (4.2) 50.3
Amortisation of other intangible assets (2.5)
Pension administrative expenses (2.1)
Restructuring charges in respect of cost reduction measures (9.3)
Non-recurring items 23.6
Operating profit 60.0
Investment revenues 0.2
Pension finance charge (5.5)
Finance costs (4.2)
Profit before tax 50.5
Tax charge (4.9)
Profit for the period 45.6
45.6
Notes to the consolidated financial statements
for the 26 weeks ended 29 June 2014 (26 weeks ended 30 June 2013 and 52 weeks ended 29 December 2013)
3. Operating segments (continued)
Segment revenue and results (continued)
The prior year comparatives have been restated as set out in notes 2 and 16.
26 weeks ended 30 June 2013 (restated) (unaudited) Publishing2013£m Printing 2013 £m Specialist Digital 2013 £m Central2013£m Total2013£m
Revenue
Segment sales 288.8 99.4 9.4 1.5 399.1
Inter-segment sales - (66.7) (0.4) - (67.1)
Total revenue 288.8 32.7 9.0 1.5 332.0
Segment result 57.0 - 0.1 (4.4) 52.7
Amortisation of other intangible assets (2.5)
Pension administrative expenses (1.2)
Restructuring charges in respect of cost reduction measures (5.3)
Non-recurring items (0.2)
Operating profit 43.5
Investment revenues 0.1
Pension finance charge (6.6)
Finance costs (6.7)
Profit before tax 30.3
Tax charge (6.5)
Profit for the period 23.8
52 weeks ended 29 December 2013 (restated)(audited) Publishing2013£m Printing 2013 £m Specialist Digital 2013 £m Central2013£m Total2013£m
Revenue
Segment sales 578.4 198.4 18.0 3.0 797.8
Inter-segment sales - (132.7) (1.3) - (134.0)
Total revenue 578.4 65.7 16.7 3.0 663.8
Segment result 118.5 - 0.4 (10.9) 108.0
Amortisation of other intangible assets (5.2)
Pension administrative expenses (2.8)
Restructuring charges in respect of cost reduction measures (9.9)
Non-recurring items (224.9)
Operating loss (134.8)
Investment revenues 0.3
Pension finance charge (13.2)
Finance costs (13.1)
Loss before tax (160.8)
Tax credit 64.4
Loss for the period (96.4)
4. Revenue
26 weeks ended 29 June2014 (unaudited)£m 26 weeks ended 30 June2013(unaudited)£m 52 weeks ended 29 December2013(audited)£m
Circulation 142.5 144.2 285.8
Advertising 123.8 132.1 262.7
Printing 33.8 32.7 65.7
Other 24.1 23.0 49.6
Total revenue 324.2 332.0 663.8
Notes to the consolidated financial statements
for the 26 weeks ended 29 June 2014 (26 weeks ended 30 June 2013 and 52 weeks ended 29 December 2013)
4. Revenue (continued)
The Group's operations are located primarily in the UK. The Group's revenue by location of customers is set out below:
26 weeks ended 29 June2014 (unaudited)£m 26 weeks ended 30 June2013(unaudited)£m 52 weeks ended 29 December2013(audited)£m
UK and Republic of Ireland 322.4 330.5 659.9
Continental Europe 1.7 1.4 3.7
Rest of World 0.1 0.1 0.2
Total revenue 324.2 332.0 663.8
5. Non-recurring items
26 weeks ended 29 June2014 (unaudited)£m 26 weeks ended 30 June2013(unaudited)£m 52 weeks ended 29 December2013(audited)£m
Impairment of goodwill and other intangible assets (a) - - (225.0)
Provision for historical legal issues (b) (4.0) - -
Profit on disposal of subsidiary undertaking (c) - - 0.6
Non-recurring items included in administrative expenses (4.0) - (224.4)
Non-recurring items included in share of results of associates (d) 27.6 (0.2) (0.5)
Total non-recurring items 23.6 (0.2) (224.9)
(a) At the 2013 year end, an impairment review comparing the carrying value of the Group's assets with value in use was
undertaken in accordance with IAS 36. The review indicated that a £225.0 million impairment charge against goodwill and
publishing rights and titles in respect of the Nationals and certain regional (Scotland, North East and Cardiff)
cash-generating units was required.
(b) The Group is aware of a number of civil claims from individuals in relation to phone hacking. In the first half we
have provided £4.0 million to cover the cost of dealing with and resolving claims. It remains uncertain as to how these
matters will progress, whether further allegations or claims will be made, and their financial impact. Due to this
uncertainty a contingent liability has been highlighted in note 18.
(c) During the second half of 2013, the Group disposed of Trinity Mirror Digital Property Limited realising a profit on
disposal of £0.6 million.
(d) Share of the after tax non-recurring items comprising our £27.5 million share of the gain on the disposal by PA Group
of its weather forecasting business, MeteoGroup, our £0.4 million share of the profit of MeteoGroup recorded by PA Group up
to the date of completion less our £0.3 million share of restructuring costs incurred by PA Group and Local World.
6. Investment revenues
26 weeks ended 29 June2014 (unaudited)£m 26 weeks ended 30 June2013(unaudited)£m 52 weeks ended 29 December2013(audited)£m
Interest income on bank deposits and other interest receipts 0.2 0.1 0.3
7. Finance costs
26 weeks ended 29 June2014 (unaudited)£m 26 weeks ended 30 June2013(unaudited)£m 52 weeks ended 29 December2013(audited)£m
Interest on bank overdrafts and borrowings (2.3) (3.5) (7.0)
Total interest expense (2.3) (3.5) (7.0)
Fair value (loss)/gain on derivative financial instruments (5.0) 5.8 (8.8)
Foreign exchange gain/(loss) on retranslation of borrowings 3.1 (9.0) 2.7
Finance costs (4.2) (6.7) (13.1)
Notes to the consolidated financial statements
for the 26 weeks ended 29 June 2014 (26 weeks ended 30 June 2013 and 52 weeks ended 29 December 2013)
8. Tax
26 weeks ended 29 June2014 (unaudited)£m 26 weeks ended 30 June2013(unaudited)£m 52 weeks ended 29 December2013(audited)£m
Current tax
Corporation tax charge for the period (7.8) (9.2) (19.1)
Prior period adjustment - 0.6 1.0
Current tax charge (7.8) (8.6) (18.1)
Deferred tax
Deferred tax credit for the period 2.9 2.0 48.3
Deferred tax rate change - - 34.3
Prior period adjustment - 0.1 (0.1)
Deferred tax credit 2.9 2.1 82.5
Tax (charge)/credit (4.9) (6.5) 64.4
% % %
Reconciliation of tax (charge)/credit
Standard rate of corporation tax (21.5) (23.3) 23.3
Tax effect of items that are not deductible in determining taxable profit/(loss) (0.7) (1.8) (1.0)
Deferred tax rate change - - 16.6
Prior period adjustment - 2.3 0.6
Tax effect of share of results of associates 12.5 1.3 0.5
Tax (charge)/credit rate (9.7) (21.5) 40.0
The standard rate of corporation tax reduced from 23% to 21% on 1 April 2014. The blended rate for the accounting year is
21.5% being a mix of 23% up to 31 March 2014 and 21% from 1 April 2014 (2013: 23.25% being a mix of 24% up to 31 March 2013
and 23% from 1 April 2013). The current tax liabilities amounted to £15.2 million (30 June 2013: £17.5 million and 29
December 2013: £16.7 million) at the reporting date.
The opening deferred tax position is recalculated in the period in which a change in the standard rate of corporation tax
has been enacted or substantively enacted by parliament. The change in rate from 23% to 20% was accounted for in the prior
year resulting in a £34.3 million credit in the consolidated income statement and a £8.9 million charge in the consolidated
statement of comprehensive income.
The tax on actuarial (losses)/gains on defined benefit pension schemes taken to the consolidated statement of comprehensive
income is a credit of £2.5 million comprising a deferred tax credit of £2.5 million (26 weeks ended 30 June 2013: a
deferred tax charge of £1.2 million and 52 weeks ended 29 December 2013: a charge of £8.5 million comprising a deferred tax
charge of £9.2 million and a current tax credit of £0.7 million).
The tax on share-based payments taken to equity is a charge of £3.6 million (26 weeks ended 30 June 2013: £nil and 52 weeks
ended 29 December 2013: credit of £5.9 million).
9. Dividends
No dividend was declared for both 2014 and 2013.
10. Earnings per share
Profit after tax before adjusted* items 38.4 38.1 79.1
Adjusted* items:
Non-recurring items (after tax) 24.4 (0.2) (180.6)
Amortisation of other intangibles (after tax) (2.3) (2.2) (4.8)
Finance costs (after tax) (1.5) (2.5) (4.9)
Restructuring charges (after tax) (7.3) (4.1) (7.6)
Pension charges (after tax) (6.1) (6.0) (12.8)
Tax legislation changes - 0.7 35.2
Profit/(loss) for the period 45.6 23.8 (96.4)
Profit/(loss) for the period
45.6
23.8
(96.4)
*Adjusted items relate to the exclusion of non-recurring items (share of non-recurring credit from associate undertakings
of £27.6 million and provision for historical legal issues of £4.0 million), restructuring charges in respect of cost
reduction measures, the amortisation of intangible assets, the retranslation of foreign currency borrowings, the impact of
fair value changes on derivative financial instruments, the pension finance charge, the pension administrative expenses and
the impact of tax legislation changes. Set out in note 17 is the reconciliation between the statutory results and the
adjusted results.
Notes to the consolidated financial statements
for the 26 weeks ended 29 June 2014 (26 weeks ended 30 June 2013 and 52 weeks ended 29 December 2013)
10. Earnings per share (continued)
Weighted average number of ordinary shares 26 weeks ended 29 June2014 (unaudited)Thousand 26 weeks ended 30 June2013(unaudited)Thousand 52 weeks ended 29 December2013(audited)Thousand
Weighted average number of ordinary shares for basic earnings per share 247,597 247,906 247,328
Effect of potential dilutive ordinary shares in respect of share options 7,214 6,369 10,063
Weighted average number of ordinary shares for diluted earnings per share 254,811 254,275 257,391
Basic earnings per share is calculated by dividing profit for the period attributable to equity holders of the parent by
the weighted average number of ordinary shares during the period. Diluted earnings per share is calculated by adjusting the
weighted average number of ordinary shares in issue on the assumption of conversion of all potentially dilutive ordinary
shares. The weighted average number of potentially dilutive ordinary shares not currently dilutive was 4,312,644 (30 June
2013: 9,094,870 and 29 December 2013: 5,215,571).
Statutory earnings/(loss) per share Pence Pence Pence
Earnings/(loss) per share - basic 18.4 9.6 (39.0)
Earnings/(loss)/ per share - diluted 17.9 9.4 (39.0)
Potentially dilutive ordinary shares in respect of share options have not been included in the statutory diluted loss per
share calculation as they are antidilutive in this instance.
Adjusted* earnings per share Pence Pence Pence
Earnings per share - basic 15.5 15.4 32.0
Earnings per share - diluted 15.1 15.0 30.7
*Adjusted items relate to the exclusion of non-recurring items (share of non-recurring credit from associate undertakings
of £27.6 million and provision for historical legal issues of £4.0 million), restructuring charges in respect of cost
reduction measures, the amortisation of intangible assets, the retranslation of foreign currency borrowings, the impact of
fair value changes on derivative financial instruments, the pension finance charge, the pension administrative expenses and
the impact of tax legislation changes. Set out in note 17 is the reconciliation between the statutory results and the
adjusted results.
The basic earnings per share impact for each non-recurring item disclosed in note 5 are as follows:
Pence Pence Pence
Impairment of goodwill and intangible assets - - (73.1)
Provision for historical legal issues (1.3) - -
Profit on disposal of subsidiary undertaking - - 0.3
Loss per share - non-recurring items included in administrative expenses (1.3) - (72.8)
Profit/(loss) per share - non-recurring items included in share of results of associates 11.1 (0.1) (0.2)
Profit/(loss) per share - total non-recurring items 9.8 (0.1) (73.0)
11. Notes to the consolidated cash flow statement
26 weeks ended 29 June2014 (unaudited)£m 26 weeks ended 30 June2013(unaudited)£m 52 weeks ended 29 December2013(audited)£m
Operating profit/(loss) 60.0 43.5 (134.8)
Depreciation of property, plant and equipment 12.2 13.2 26.4
Impairment of goodwill and other intangible assets - - 225.0
Amortisation of other intangible assets 1.1 1.1 2.2
Share of results of associates (29.3) (1.8) (3.3)
Charge for share-based payments 0.5 1.1 2.3
Profit on disposal of subsidiary undertaking - - (0.6)
Profit on disposal of fixed assets - - (0.2)
Write-off of fixed assets - - 1.2
Pension administrative expenses 2.1 1.2 2.8
Pension deficit funding payments - (5.0) (19.0)
Operating cash flows before movements in working capital 46.6 53.3 102.0
Decrease/(increase) in inventories 2.6 0.2 (1.9)
(Increase)/decrease in receivables (1.1) 4.2 (4.4)
Increase/(decrease) in payables 10.7 (0.2) (2.8)
Cash flows from operating activities 58.8 57.5 92.9
Notes to the consolidated financial statements
for the 26 weeks ended 29 June 2014 (26 weeks ended 30 June 2013 and 52 weeks ended 29 December 2013)
12. Net debt
The statutory net debt for the Group is as follows:
29 December 2013(audited)£m Cash flow£m Derivative financial instruments*£m Foreign exchange*£m Loans repaid£m 29 June 2014(unaudited)£m
Non-current liabilities
Loan notes (62.0) - - 2.1 - (59.9)
Derivative financial instruments - - (1.5) - - (1.5)
(62.0) - (1.5) 2.1 - (61.4)
Current liabilities
Loan notes (40.4) - - 1.0 39.4 -
Derivative financial instruments (3.2) - (1.6) - 4.8 -
(43.6) - (1.6) 1.0 44.2 -
Non-current assets
Derivative financial instruments 1.9 - (1.9) - - -
1.9 - (1.9) - - -
Current assets
Cash and cash equivalents 15.5 41.0 - - (44.2) 12.3
15.5 41.0 - - (44.2) 12.3
Net debt (88.2) 41.0 (5.0) 3.1 - (49.1)
* The impact on the loan notes of translation into Sterling at the settlement date or at the reporting date exchange rate
and the impact on the derivative financial instruments of being stated at fair value at the settlement date or at the
reporting date are included in the consolidated income statement within finance costs as set out in note 7.
The Group has cross-currency interest rate swaps to manage its exposure to foreign exchange movements and interest rate
movements on the private placement loan notes. Fair value is calculated using discounted cash flows based upon forward
rates available
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