REG - Trinity Mirror PLC - Half-yearly Report <Origin Href="QuoteRef">TNI.L</Origin> - Part 2
31/07/2017 07:07
- Part 2: For the preceding part double click ID:nRSe5378Ma
reduction measures (6.4) (10.1) (15.1)
Amortisation of intangible assets (0.2) (0.2) (0.3)
Pension administrative expenses 13 (1.2) (1.0) (2.2)
Other administrative expenses (71.1) (83.7) (158.5)
Share of results of associates:
Results before non-recurring items and amortisation 0.5 0.4 1.1
Non-recurring items 5 (0.1) (0.1) (0.1)
Amortisation of intangible assets (0.1) (0.1) (0.3)
Operating profit 3 47.3 53.6 93.5
Investment revenue 6 0.1 0.3 0.6
Pension finance charge 13 (5.9) (5.2) (10.4)
Finance costs 7 (3.3) (3.5) (7.2)
Profit before tax 38.2 45.2 76.5
Tax charge 8 (9.1) (9.2) (7.0)
Profit for the period attributable to equity holders of the parent 29.1 36.0 69.5
Statutory earnings per share 2017Pence 2016Pence 2016Pence
Earnings per share - basic 10 10.6 12.8 24.9
Earnings per share - diluted 10 10.5 12.8 24.8
Adjusted* earnings per share 2017Pence 2016Pence 2016Pence
Earnings per share - basic 10 17.9 19.1 38.1
Earnings per share - diluted 10 17.8 19.1 37.8
* Adjusted items relate to the exclusion of non-recurring items, restructuring
charges in respect of cost reduction measures, the amortisation of intangible
assets, the pension administrative expenses, the retranslation of foreign
currency borrowings, the impact of fair value changes on derivative financial
instruments, the pension finance charge and the impact of tax legislation
changes. Set out in note 16 is the reconciliation between the statutory
results and the adjusted results.
Consolidated statement of comprehensive income
for the 26 weeks ended 2 July 2017 (27 weeks ended 3 July 2016 and 53 weeks
ended 1 January 2017)
notes 26 weeks ended 2 July2017 (unaudited)£m 27 weeks ended 3 July2016 (unaudited)£m 53 weeks ended 1 January2017(audited)£m
Profit for the period 29.1 36.0 69.5
Items that will not be reclassified to profit and loss:
Actuarial gains/(losses) on defined benefit pension schemes 13 45.7 (132.5) (188.9)
Tax on actuarial gains/(losses) on defined benefit pension schemes 8 (7.8) 23.8 32.1
Deferred tax charge resulting from the future change in tax rate 8 - - (0.6)
Share of items recognised by associates (5.4) 1.1 1.1
Other comprehensive income/(costs) for the period 32.5 (107.6) (156.3)
Total comprehensive income/(costs) for the period 61.6 (71.6) (86.8)
Consolidated cash flow statement
for the 26 weeks ended 2 July 2017 (27 weeks ended 3 July 2016 and 53 weeks
ended 1 January 2017)
notes 26 weeks ended 2 July2017 (unaudited)£m 27 weeks ended 3 July2016 (unaudited)£m 53 weeks ended 1 January2017(audited)£m
Cash flow from operating activities
Cash generated from operations 11 34.8 66.8 91.5
Income tax paid (8.4) (5.7) (12.2)
Net cash inflow from operating activities 26.4 61.1 79.3
Investing activities
Interest received 0.1 0.3 0.6
Proceeds on disposal of property, plant and equipment 1.2 - 10.6
Purchases of property, plant and equipment (4.4) (2.5) (4.3)
Proceeds on disposal of subsidiary undertaking - - 1.8
Acquisition of associate undertaking - - (0.8)
Net cash (used in)/received from investing activities (3.1) (2.2) 7.9
Financing activities
Dividends paid (9.2) (8.8) (14.6)
Interest paid on borrowings (1.4) (3.2) (5.9)
Repayment of borrowings (68.3) (15.0) (80.0)
Purchase of own shares (4.6) - (2.3)
Purchase of shares for LTIP - (2.0) (2.0)
Draw down on bank facility 30.0 - -
Net cash used in financing activities (53.5) (29.0) (104.8)
Net (decrease)/increase in cash and cash equivalents (30.2) 29.9 (17.6)
Cash and cash equivalents at the beginning of the period 12 37.8 55.4 55.4
Cash and cash equivalents at the end of the period 12 7.6 85.3 37.8
Consolidated statement of changes in equity
for the 26 weeks ended 2 July 2017 (27 weeks ended 3 July 2016 and 53 weeks
ended 1 January 2017)
Sharecapital£m Share premiumaccount£m Merger reserve£m Capitalredemptionreserve£m Retained earnings and other reserves£m Total£m
At 1 January 2017 (audited) (28.3) (606.7) (37.9) (4.4) 97.9 (579.4)
Profit for the period - - - - (29.1) (29.1)
Other comprehensive income for the period - - - - (32.5) (32.5)
Total comprehensive income for the period - - - - (61.6) (61.6)
Credit to equity for equity-settled share-based payments - - - - (0.4) (0.4)
Purchase of own shares - - - - 4.6 4.6
Dividends paid - - - - 9.2 9.2
At 2 July 2017 (unaudited) (28.3) (606.7) (37.9) (4.4) 49.7 (627.6)
At 27 December 2015 (audited) (28.3) (606.7) (37.9) (4.4) (6.3) (683.6)
Profit for the period - - - - (36.0) (36.0)
Other comprehensive costs for the period - - - - 107.6 107.6
Total comprehensive costs for the period - - - - 71.6 71.6
Credit to equity for equity-settled share-based payments - - - - (0.5) (0.5)
Purchase of shares for LTIP - - - - 2.0 2.0
Dividends paid - - - - 8.8 8.8
At 3 July 2016 (unaudited) (28.3) (606.7) (37.9) (4.4) 75.6 (601.7)
At 27 December 2015 (audited) (28.3) (606.7) (37.9) (4.4) (6.3) (683.6)
Profit for the period - - - - (69.5) (69.5)
Other comprehensive costs for the period - - - - 156.3 156.3
Total comprehensive costs for the period - - - - 86.8 86.8
Credit to equity for equity-settled share-based payments - - - - (1.5) (1.5)
Purchase of shares for LTIP - - - - 2.0 2.0
Purchase of own shares - - - - 2.3 2.3
Dividends paid - - - - 14.6 14.6
At 1 January 2017 (audited) (28.3) (606.7) (37.9) (4.4) 97.9 (579.4)
Consolidated balance sheet
at 2 July 2017 (3 July 2016 and 1 January 2017)
notes 2 July2017 (unaudited)£m 3 July2016 (unaudited)£m 1 January2017(audited)£m
Non-current assets
Goodwill 102.0 102.5 102.0
Other intangible assets 799.3 799.6 799.5
Property, plant and equipment 255.3 290.9 262.1
Investment in associates 16.7 20.5 21.8
Retirement benefit assets 13 - 9.5 -
Deferred tax assets 71.7 76.6 81.5
1,245.0 1,299.6 1,266.9
Current assets
Inventories 4.5 6.1 5.8
Trade and other receivables 91.2 105.5 89.8
Derivative financial instruments 12 - 10.8 14.8
Cash and cash equivalents 12 7.6 85.3 37.8
103.3 207.7 148.2
Total assets 1,348.3 1,507.3 1,415.1
Non-current liabilities
Borrowings 12 - (59.0) -
Retirement benefit obligations 13 (406.8) (435.5) (466.0)
Deferred tax liabilities (165.2) (176.0) (164.1)
Provisions 14 (3.4) (5.3) (3.6)
(575.4) (675.8) (633.7)
Current liabilities
Trade and other payables (86.0) (99.4) (83.1)
Borrowings 12 (30.0) (81.9) (81.2)
Current tax liabilities 8 (7.4) (9.4) (9.8)
Provisions 14 (21.9) (39.1) (27.9)
(145.3) (229.8) (202.0)
Total liabilities (720.7) (905.6) (835.7)
Net assets 627.6 601.7 579.4
Equity
Share capital 15 (28.3) (28.3) (28.3)
Share premium account 15 (606.7) (606.7) (606.7)
Merger Reserve 15 (37.9) (37.9) (37.9)
Capital redemption reserve 15 (4.4) (4.4) (4.4)
Retained earnings and other reserves 15 49.7 75.6 97.9
Total equity attributable to equity holders of the parent (627.6) (601.7) (579.4)
Notes to the consolidated financial statements
For the 26 weeks ended 2 July 2017 (27 weeks ended 3 July 2016 and 53 weeks
ended 1 January 2017)
1. General information
The financial information in respect of the 53 weeks ended 1 January 2017 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 financial information for the 26 weeks ended 2 July 2017 and 27 weeks
ended 3 July 2016 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 these periods 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 condensed set of financial
statements and their report is set out on page 32.
The half-yearly financial report was approved by the directors on 31 July
2017. This announcement 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.
2. Accounting policies
Basis of preparation
The Group's annual consolidated financial statements are prepared in
accordance with IFRS as adopted by the European Union. The condensed
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
These condensed consolidated financial statements have been prepared on a
going concern basis as set out in the Management Report on page 13.
Changes in accounting policy
The same accounting policies, presentation and methods of computation are
followed in the condensed consolidated financial statements as applied in the
Group's latest annual consolidated financial statements.
The Group has adopted the following standards during the current financial
period which have had no material impact on the Group:
· IFRS 10 (Amended)'Consolidated Financial Statements'
· IFRS 11 (Amended) 'Joint Arrangements'
· IFRS 12 (Amended) 'Disclosure of Interests in Other Entities'
· IAS 1 (Amended) 'Presentation of Financial Statements'
· IAS 16 (Amended) 'Property, Plant and Equipment'
· IAS 27 (Amended) 'Separate Financial Statements'
· IAS 28 (Amended) 'Investments in Associated and Joint Ventures'
· IAS 38 (Amended) 'Intangible Assets'
· Annual improvements 2012 - 2014 cycle
The following standards, which have not been applied and when adopted are not
expected to have a material impact on the Group, were in issue and will be
effective for periods beginning on or after 1 January 2018 unless stated
below:
· IAS 7 (Amended) 'Statement of Cash Flows' - effective for periods
beginning on or after 1 January 2017*
· IAS 12 (Amended) 'Income taxes' - effective for periods beginning on
or after 1 January 2017*
· IFRS 2 (Amended) 'Share-based Payment'*
· IFRS 9 (Amended) 'Financial Instruments'
· IAS 40 (Amended) 'Investment Property'*
· IFRIC 22 (New) 'Foreign Currency Transaction and Advance
Consideration'*
· Annual improvements 2014 - 2016 cycle*
· IFRIC 23 (New) 'Uncertainty over Income Tax Treatments' - effective
for periods beginning on or after 1 January 2019*
The following new standards which have not been applied and for which the
impact on the Group is being assessed:
· IFRS 15 (Issued)'Revenue from Contracts with Customers' - effective
for periods beginning on or after 1 January 2018
· IFRS 16 (Issued) 'Leases' - effective for periods beginning on or
after 1 January 2019*
* Not yet endorsed for use in the EU
2. Accounting policies (continued)
Key sources of estimation uncertainty
The key assumptions concerning the future and other key sources of estimation
uncertainty 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:
Provisions
There is uncertainty as to liabilities arising from the outcome or resolution
of the ongoing historical legal issues. Provisions are measured at the best
estimate of the expenditure required to settle the obligation based on the
assessment of the related facts and circumstances at each reporting date.
Retirement benefits
Actuarial assumptions adopted and external factors can significantly impact
the surplus or deficit of defined benefit pension schemes. Valuations for
funding and accounting purposes are based on assumptions about future economic
and demographic variables. This results in risk of a volatile valuation
deficit and the risk that the ultimate cost of paying benefits is higher than
the current assessed liability value. Advice is sourced from independent and
qualified actuaries in selecting suitable assumptions at each reporting date.
Impairment of goodwill and other intangible assets
There is uncertainty in the value in use calculation. The most significant
area of uncertainty relates to expected future cash flows for each
cash-generating unit. 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. It also requires assessment of the
appropriateness of the cash-generating unit at each reporting date. 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. Projections are based on both internal
and external market information and reflect past experience. The discount rate
reflects a long-term equity and debt mix based on the period end enterprise
value assuming a long-term debt to EBITDA ratio of 2.5 times.
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 (Executive directors) 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 digital classified recruitment 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. The Board and chief
operating decision maker are not provided with an amount for total assets by
segment. The Group's operations are primarily located in the UK and the Group
is not subject to significant seasonality during the year.
Segment revenue and results
26 weeks ended 2 July 2017 (unaudited) Publishing2017£m Printing 2017£m Specialist Digital 2017£m Central2017£m Total2017£m
Revenue
Segment sales 296.4 68.8 5.0 1.9 372.1
Inter-segment sales - (51.9) (0.2) - (52.1)
Total revenue 296.4 16.9 4.8 1.9 320.0
Segment result 66.8 - 1.3 (5.5) 62.6
Non-recurring items (7.4)
Restructuring charges in respect of cost reduction measures (6.4)
Amortisation of intangible assets (0.3)
Pension administrative expenses (1.2)
Operating profit 47.3
Investment revenue 0.1
Pension finance charge (5.9)
Finance costs (3.3)
Profit before tax 38.2
Tax charge (9.1)
Profit for the period 29.1
29.1
3. Operating segments (continued)
Segment revenue and results (continued)
27 weeks ended 3 July 2016 (unaudited) Publishing2016£m Printing 2016 £m Specialist Digital 2016 £m Central2016£m Total2016£m
Revenue
Segment sales 345.5 76.6 8.0 2.0 432.1
Inter-segment sales - (57.1) (0.3) - (57.4)
Total revenue 345.5 19.5 7.7 2.0 374.7
Segment result 74.1 - 1.2 (6.2) 69.1
Non-recurring items (4.1)
Restructuring charges in respect of cost reduction measures (10.1)
Amortisation of intangible assets (0.3)
Pension administrative expenses (1.0)
Operating profit 53.6
Investment revenues 0.3
Pension finance charge (5.2)
Finance costs (3.5)
Profit before tax 45.2
Tax charge (9.2)
Profit for the period 36.0
36.0
53 weeks ended 1 January 2017 (audited) Publishing2016£m Printing 2016 £m Specialist Digital 2016£m Central2016£m Total2016£m
Revenue
Segment sales 660.0 147.9 13.3 3.9 825.1
Inter-segment sales - (111.7) (0.4) - (112.1)
Total revenue 660.0 36.2 12.9 3.9 713.0
Segment result 148.4 - 2.4 (13.3) 137.5
Non-recurring items (26.1)
Restructuring charges in respect of cost reduction measures (15.1)
Amortisation of intangible assets (0.6)
Pension administrative expenses (2.2)
Operating profit 93.5
Investment revenues 0.6
Pension finance charge (10.4)
Finance costs (7.2)
Profit before tax 76.5
Tax charge (7.0)
Profit for the period 69.5
69.5
4. Revenue
26 weeks ended 2 July2017 (unaudited)£m 27 weeks ended 3 July2016 (unaudited)£m 53 weeks ended 1 January2017(audited)£m
Publishing Print 255.0 305.8 581.0
Circulation 145.7 161.7 310.6
Advertising 93.1 127.2 236.6
Other 16.2 16.9 33.8
Publishing Digital 41.4 39.7 79.0
Display and transactional 32.8 28.1 58.4
Classified 8.6 11.6 20.6
Printing 16.9 19.5 36.2
Specialist Digital 4.8 7.7 12.9
Central 1.9 2.0 3.9
Total revenue 320.0 374.7 713.0
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 2 July2017 (unaudited)£m 27 weeks ended 3 July2016 (unaudited)£m 53 weeks ended 1 January2017(audited)£m
UK and Republic of Ireland 318.8 373.5 709.9
Continental Europe 1.1 1.1 2.8
Rest of World 0.1 0.1 0.3
Total revenue 320.0 374.7 713.0
5. Non-recurring items
26 weeks ended 2 July2017 (unaudited)£m 27 weeks ended 3 July2016 (unaudited)£m 53 weeks ended 1 January2017(audited)£m
Provision for historical legal issues (a) (7.5) - (11.5)
Profit on disposal of land and buildings (b) 0.2 - 0.2
Contract termination fee (c) - (2.0) (2.0)
Impairment of goodwill (d) - (2.0) (2.0)
Closure of print sites and press line (e) - - (10.7)
Non-recurring items included in administrative expenses (7.3) (4.0) (26.0)
Non-recurring items included in share of results of associates (f) (0.1) (0.1) (0.1)
Total non-recurring items (7.4) (4.1) (26.1)
(a) Increase in the provision for dealing with historical legal issues in
relation to phone hacking of £7.5 million (27 weeks ended 3 July 2016: nil and
53 weeks ended 1 January 2017: £11.5 million). 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.
(b) Profit on disposal of property with net proceeds of £1.2 million less
carrying value of £1.0 million (27 weeks ended 3 July 2016: nil and 53 weeks
ended 1 January 2017: profit on disposal of Cardiff and Coventry properties
with net proceeds of £10.6 million less carrying value of £10.4 million).
(c) In 2016, a break fee of £2.0 million was paid to Iliffe Print Cambridge
Limited.
(d) In 2016, a £2.0 million charge against the carrying value of goodwill in
our Specialist Digital division was required.
(e) In 2016, costs associated with closure of the printing site in Cardiff
and a press line in Scotland (Cardonald) of £10.7 million including the write
off of fixed assets of £9.1 million.
(f) Group's share of restructuring costs incurred by PA Group.
6. Investment revenue
26 weeks ended 2 July2017 (unaudited)£m 27 weeks ended 3 July2016 (unaudited)£m 53 weeks ended 1 January2017(audited)£m
Interest income on bank deposits 0.1 0.3 0.6
7. Finance costs
26 weeks ended 2 July2017 (unaudited)£m 27 weeks ended 3 July2016 (unaudited)£m 53 weeks ended 1 January2017(audited)£m
Interest on bank overdrafts and borrowings (1.4) (2.5) (4.9)
Total interest expense (1.4) (2.5) (4.9)
Fair value (loss)/gain on derivative financial instruments (3.8) 7.3 11.3
Foreign exchange gain/(loss) on retranslation of borrowings 1.9 (8.3) (13.6)
Finance costs (3.3) (3.5) (7.2)
8. Tax
26 weeks ended 2 July2017 (unaudited)£m 27 weeks ended 3 July2016 (unaudited)£m 53 weeks ended 1 January2017(audited)£m
Corporation tax charge for the period (8.3) (9.0) (20.4)
Prior period adjustment - - 1.2
Current tax charge (8.3) (9.0) (19.2)
Deferred tax (charge)/credit for the period (0.8) (0.6) 1.8
Prior period adjustment - 0.4 0.6
Deferred tax rate change - - 9.8
Deferred tax charge (0.8) (0.2) 12.2
Tax charge (9.1) (9.2) (7.0)
Reconciliation of tax charge % % %
Standard rate of corporation tax (19.3) (20.0) (20.0)
Tax effect of items that are not deductible in determining taxable profit (4.7) (1.3) (5.4)
Tax effect of items that are not taxable in determining taxable profit 0.1 0.4 1.1
Prior period adjustment - 0.4 2.3
Deferred tax rate change - - 12.6
Tax effect of share of results of associates 0.1 0.1 0.2
Tax charge (23.8) (20.4) (9.2)
The standard rate of corporation tax for the period is 19.25% (2016: 20%). The
tax effect of items that are not deductible in determining taxable profit
includes certain costs where there is uncertainty as to their deductibility.
The current tax liabilities amounted to £7.4 million (3 July 2016: £9.4
million and 1 January 2017: £9.8 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 18% to 17% in
2020 was accounted for in the prior year resulting in £9.8 million credit in
the consolidated income statement and a £4.4 million charge in the
consolidated statement of comprehensive income.
The tax on actuarial gains/(losses) on defined benefit pension schemes taken
to the consolidated statement of comprehensive income is a charge of £7.8
million comprising a deferred tax charge of £10.1 million and a current tax
credit of £2.3 million (27 weeks ended 3 July 2016: credit of £23.8 million
comprising a deferred tax credit of £21.5 million and a current tax credit of
£2.3 million and 53 weeks ended 1 January 2017: credit of £32.1 million
comprising a deferred tax credit of £26.5 million and a current tax credit of
£5.6 million). In the prior year, the deferred tax charge resulting from the
future change in tax rate of £0.6 million comprised a charge of £4.4 million
from the change in future tax rates and a credit of £3.8 million from a change
in the expected reversal of timing differences.
9. Dividends
Dividends paid per share and recognised as distributions to equity holders in the period 3.35 3.15 5.25
Dividend proposed per share but not paid nor included in the accounting records 2.25 2.10 3.35
Dividend proposed per share but not paid nor included in the accounting
records
2.25
2.10
3.35
The Board has approved an interim dividend for 2017 of 2.25 pence per share.
On 4 May 2017 the final dividend proposed for 2016 of 3.35 pence per share was
approved by shareholders at the Annual General Meeting and was paid on 9 June
2017. The total dividend payment amounted to £9.2 million. On 5 May 2016 the
final dividend proposed for 2015 of 3.15 pence per share was approved by
shareholders at the Annual General Meeting and was paid on 10 June 2016. An
interim dividend for 2016 of 2.10 pence per share was paid on 25 November
2016. The total dividend payment in 2016 amounted to £14.6 million.
10. Earnings per share
Profit after tax before adjusted* items 49.3 53.4 106.2
Adjusted* items:
Non-recurring items (after tax) (7.5) (3.2) (22.0)
Amortisation of intangibles (after tax) (0.3) (0.3) (0.5)
Pension charges (after tax) (5.7) (5.0) (10.1)
Restructuring charges (after tax) (5.2) (8.1) (12.1)
Finance costs (after tax) (1.5) (0.8) (1.8)
Tax legislation changes (after tax) - - 9.8
Profit for the period 29.1 36.0 69.5
Profit for the period
29.1
36.0
69.5
* Adjusted items relate to the exclusion of non-recurring items, restructuring
charges in respect of cost reduction measures, the amortisation of intangible
assets, the pension administrative expenses, the retranslation of foreign
currency borrowings, the impact of fair value changes on derivative financial
instruments, the pension finance charge and the impact of tax legislation
changes. Set out in note 16 is the reconciliation between the statutory
results and the adjusted results.
Weighted average number of ordinary shares Thousand Thousand Thousand
Weighted average number of ordinary shares for basic earnings per share 274,699 280,172 278,895
Effect of potential dilutive ordinary shares in respect of share options 1,396 842 1,864
Weighted average number of ordinary shares for diluted earnings per share 276,095 281,014 280,759
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 2,518,604 (3 July 2016: 3,442,642 and 1 January 2017:
2,805,385).
Statutory earnings per share Pence Pence Pence
Earnings per share - basic 10.6 12.8 24.9
Earnings per share - diluted 10.5 12.8 24.8
Adjusted* earnings per share Pence Pence Pence
Earnings per share - basic 17.9 19.1 38.1
Earnings per share - diluted 17.8 19.1 37.8
* Adjusted items relate to the exclusion of non-recurring items, restructuring
charges in respect of cost reduction measures, the amortisation of intangible
assets, the pension administrative expenses, the retranslation of foreign
currency borrowings, the impact of fair value changes on derivative financial
instruments, the pension finance charge and the impact of tax legislation
changes. Set out in note 16 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
Provision for historical legal issues (2.7) - (3.3)
Profit on disposal of land and buildings - - 0.2
Contract termination fee - (0.6) (0.7)
Impairment of goodwill - (0.6) (0.7)
Closure of print sites and press line - - (3.5)
Loss per share - total non-recurring items (2.7) (1.2) (8.0)
11. Notes to the consolidated cash flow statement
26 weeks ended 2 July2017 (unaudited)£m 27 weeks ended 3 July2016 (unaudited)£m 53 weeks ended 1 January2017(audited)£m
Operating profit 47.3 53.6 93.5
Depreciation of property, plant and equipment 10.3 11.3 22.2
Amortisation of intangible assets 0.2 0.2 0.3
Impairment of goodwill - 2.0 2.0
Share of results of associates (0.3)
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