REG - Sage Group PLC - Final Results <Origin Href="QuoteRef">SGE.L</Origin> - Part 2
02/12/2015 07:11
- Part 2: For the preceding part double click ID:nRSB6615Ha
Underlying cash conversion Underlying cash conversion is underlying cash flow from operating activities divided by underlying operating profit. Underlying cash flow from operating activities is Underlying cash conversion informs management and investors about the cash operating cycle of the business and how efficiently operating profit is converted into cash.
statutory cash flow from operating activities less net capital expenditure and adjusted for movements on foreign exchange rates and non-recurring cash items.
Underlying (as reported) Where prior period underlying measures are included without retranslation at current period exchange rates, they are labelled as underlying (as reported). This measure is used to report comparative figures for external reporting purposes where it would not be appropriate to retranslate. For instance, on the face of primary financial statements.
Revenue Type DESCRIPTION
Recurring revenue Recurring revenue is revenue earned from customers for the provision of a good or service, where risks and rewards are transferred to the customer over the term of a contract, with the customer being unable to continue to benefit from the full functionality of the good or service without ongoing payments.
Software subscription revenue Subscription revenue is revenue earned from customers for the provision of a good or service, where the risk and rewards are transferred to the customer over the term of a contract. In the event that the customer stops paying, they lose the legal right to use the software and the Company has the ability to restrict the use of the product or service. (Also known as 'Pay to play').
Software and software related services ("SSRS") SSRS revenue is for goods or services where the entire benefit is passed to the customer at the point of delivery. It comprises revenue for software or upgrades sold on a perpetual license basis and software related services, including hardware sales, professional services and training.
Processing revenue Processing revenue is revenue earned from customers for the processing of payments or where Sage colleagues process our customers' payroll.
Consolidated income statement
For the year ended 30 September 2015
Note Underlying Adjustments Statutory Underlying as reported Adjustments Statutory
2015 2015 2015 2014(restated) 2014 2014(restated)
£m £m £m £m £m £m
Revenue 1 1,435.5 - 1,435.5 1,353.5 - 1,353.5
Cost of sales (86.7) - (86.7) (74.5) - (74.5)
Gross profit 1,348.8 - 1,348.8 1,279.0 - 1,279.0
Selling and administrative expenses (968.9) (82.7) (1,051.6) (918.0) (61.4) (979.4)
Operating profit 1 379.9 (82.7) 297.2 361.0 (61.4) 299.6
Finance income 2.2 - 2.2 2.1 - 2.1
Finance costs (23.6) - (23.6) (22.2) (0.8) (23.0)
Finance costs - net (21.4) - (21.4) (20.1) (0.8) (20.9)
Profit before income tax 358.5 (82.7) 275.8 340.9 (62.2) 278.7
Income tax expense 3 (90.3) 8.8 (81.5) (90.5) 0.7 (89.8)
Profit for the period 268.2 (73.9) 194.3 250.4 (61.5) 188.9
Profit attributable to:
Owners of the parent 268.2 (73.9) 194.3 249.5 (61.5) 188.0
Non-controlling interest - - - 0.9 - 0.9
268.2 (73.9) 194.3 250.4 (61.5) 188.9
Earnings per share attributable to the owners of the parent (pence)
Basic 5 25.00p 18.11p 22.91p 17.26p
Diluted 5 24.85p 18.00p 22.87p 17.24p
Consolidated statement of comprehensive income
For the year ended 30 September 2015
2015£m 2014(restated)
£m
Profit for the period 194.3 188.9
Other comprehensive income/(expenses) for the period:
Items that will not be reclassified to profit or loss:
Actuarial loss on post-employment benefit obligations (4.8) (0.4)
Deferred tax credit on actuarial loss on post-employment benefit obligations 0.6 0.4
(4.2) -
Items that may be reclassified to profit or loss:
Exchange differences on translating foreign operations (23.2) (38.1)
(23.2) (38.1)
Other comprehensive expense for the period, net of tax (27.4) (38.1)
Total comprehensive income for the period 166.9 150.8
Total comprehensive income for the period attributable to:
- Owners of the parent 166.9 149.9
- Non-controlling interest - 0.9
166.9 150.8
The notes on pages 23 to 42 form an integral part of this condensed consolidated report.
Consolidated balance sheet
As at 30 September 2015
Note 2015£m 2014 (restated) As at 1 October 2013 (restated)£m
£m
Non-current assets
Goodwill 6 1,446.0 1,433.0 1,515.2
Other intangible assets 6 105.5 98.1 113.5
Property, plant and equipment 6 122.7 126.7 128.8
Deferred income tax assets 34.2 29.4 26.2
1,708.4 1,687.2 1,783.7
Current assets
Inventories 2.0 2.0 2.2
Trade and other receivables 320.9 321.5 311.2
Cash and cash equivalents (excluding bank overdrafts) 9 263.4 144.6 100.8
586.3 468.1 414.2
Total assets 2,294.7 2,155.3 2,197.9
Current liabilities
Trade and other payables (311.2) (279.5) (276.2)
Current income tax liabilities (31.4) (23.7) (35.7)
Borrowings (33.6) (125.4) (21.0)
Provisions (9.9) (13.0) (13.3)
Other financial liabilities - (60.1) (30.0)
Deferred income (436.5) (426.2) (433.0)
(822.6) (927.9) (809.2)
Non-current liabilities
Borrowings (571.4) (415.8) (440.6)
Other financial liabilities - - (54.2)
Post-employment benefits (18.7) (13.6) (12.9)
Deferred income tax liabilities (7.3) (19.1) (23.1)
Provisions (10.4) (8.3) (6.3)
Deferred income (2.2) (2.7) -
(610.0) (459.5) (537.1)
Total liabilities (1,432.6) (1,387.4) (1,346.3)
Net assets 862.1 767.9 851.6
Equity attributable to owners of the parent
Ordinary shares 8 11.8 11.7 11.7
Share premium 8 541.2 535.9 532.2
Other reserves 66.9 90.1 60.2
Retained earnings 242.2 130.2 248.5
Total equity attributable to owners of the parent 862.1 767.9 852.6
Non-controlling interest - - (1.0)
Total equity attributable to owners of the parent 862.1 767.9 851.6
Consolidated statement of cash flows
For the year ended 30 September 2015
Notes 2015 2014 £m
£m
Cash flows from operating activities
Cash generated from continuing operations 9 418.6 382.4
Interest paid (19.2) (20.2)
Income tax paid (84.6) (107.2)
Net cash generated from operating activities 314.8 255.0
Cash flows from investing activities
Acquisitions of subsidiaries, net of cash acquired 10 (47.3) (14.1)
Purchases of intangible assets 6 (6.0) (8.3)
Purchases of property, plant and equipment 6 (16.4) (19.7)
Proceeds from sale of property, plant and equipment 2.1 1.1
Interest received 2.2 2.1
Net cash generated from investing activities (65.4) (38.9)
Cash flows from financing activities
Proceeds from issuance of ordinary shares 5.4 3.7
Purchase of treasury shares (17.7) (91.0)
Purchase of non-controlling interest - (50.4)
Finance lease principal payments (1.4) (1.9)
Proceeds from borrowings 481.2 171.0
Repayments of borrowings (474.5) (71.8)
Movements in cash held on behalf of customers 12.5 15.5
Borrowing costs (1.3) (1.4)
Dividends paid to owners of the parent 4 (133.5) (126.2)
Net cash used in financing activities (129.3) (152.5)
Net increase in cash, cash equivalents and bank overdrafts 9 120.1 63.6
(before exchange rate movement)
Effects of exchange rate movement 9 (0.4) (2.8)
Net increase in cash, cash equivalents and bank overdrafts 119.7 60.8
Cash, cash equivalents and bank overdrafts at 1 October 9 143.7 82.9
Cash, cash equivalents and bank overdrafts at period end 9 263.4 143.7
Consolidated statement of changes in equity
For the year ended 30 September 2015
Attributable to owners of the parent
Ordinary shares Share premium Other reserves Retained earnings Total
£m £m £m £m £m
At 1 October 2014 (restated) 11.7 535.9 90.1 130.2 767.9
Profit for the period - - - 194.3 194.3
Other comprehensive (expense)/income:
Exchange differences on translating foreign operations - - (23.2) - (23.2)
Actuarial loss on post-employment benefit obligations - - - (4.8) (4.8)
Deferred tax credit on actuarial gain on post-employment obligations - - - 0.6 0.6
Total comprehensive income - - (23.2) 190.1 166.9
for the period ended 30 September 2015
Transactions with owners:
Employee share option scheme:
- Proceeds from shares issued 0.1 5.3 - - 5.4
- Value of employee services, net of deferred tax - - - 10.1 10.1
Purchase of treasury shares - - - (14.6) (14.6)
Expenses related to the purchase of treasury shares - - - (0.1) (0.1)
Close period share buyback programme - - - 60.0 60.0
Dividends paid to owners of the parent - - - (133.5) (133.5)
Total transactions with owners 0.1 5.3 - (78.1) (72.7)
for the period ended 30 September 2015
At 30 September 2015 11.8 541.2 66.9 242.2 862.1
Attributable to owners of the parent
Ordinary shares Share premium Other reserves Retained earnings Total Non-controlling interest Total equity £m
£m £m £m £m £m £m
At 1 October 2013 11.7 532.2 60.4 267.0 871.3 (1.0) 870.3
Restatement (note 1) - - (0.2) (18.5) (18.7) - (18.7)
At 1 October 2013 (restated) 11.7 532.2 60.2 248.5 852.6 (1.0) 851.6
Profit for the period - - - 188.0 188.0 0.9 188.9
Other comprehensive (expense)/income:
Exchange differences on translating foreign operations - - (38.1) - (38.1) - (38.1)
Actuarial loss on post-employment benefit obligations - - - (0.4) (0.4) - (0.4)
Deferred tax charge on actuarial loss on post-employment obligations - - - 0.4 0.4 - 0.4
Total comprehensive (expense)/income - - (38.1) 188.0 149.9 0.9 150.8
for the year ended 30 September 2014
Transactions with owners:
Employee share option scheme:
Proceeds from shares issued - 3.7 - - 3.7 - 3.7
Value of employee services - - - 7.8 7.8 - 7.8
Equity movement of deferred tax on options - - - (89.5) (89.5) - (89.5)
Purchase of treasury shares - - - (0.2) (0.2) - (0.2)
Close period share buyback programme - - - (30.1) (30.1) - (30.1)
Cancellation of treasury shares - - 68.0 (68.1) (0.1) 0.1 -
Dividends paid to owners of the parent - - - (126.2) (126.2) - (126.2)
Total transactions with owners - 3.7 68.0 (306.3) (234.6) 0.1 (234.5)
for the year ended 30 September 2014
At 30 September 2014 (restated) 11.7 535.9 90.1 130.2 767.9 - 767.9
Notes to the financial information
For the year ended 30 September 2015
Group accounting policies
General information
The Sage Group plc ("the Company") and its subsidiaries (together "the Group") is a leading global supplier of business
management software to Small & Medium Businesses.
The financial information set out above does not constitute the Company's Statutory Accounts for the year ended 30
September 2015 or 2014, but is derived from those accounts. Statutory Accounts for the year ended 30 September 2014 have
been delivered to the Registrar of Companies and those for 2015 will be delivered in December 2015. The auditors have
reported on both sets of accounts; their reports were unqualified and did not contain statements under section 498 (2), (3)
or (4) of the Companies Act 2006.
Whilst the financial information included in this announcement has been computed in accordance with International Financial
Reporting Standards ("IFRSs") as adopted by the European Union ("EU"), this announcement does not in itself contain
sufficient information to comply with IFRSs. The financial information has been prepared on the basis of the accounting
policies and critical accounting estimates and judgements as set out in the Annual Report & Accounts for 2014, other than
those changes in the accounting policies set out below.
The Company is a limited liability company incorporated and domiciled in the UK. The address of its registered office is
North Park, Newcastle upon Tyne, NE13 9AA. The Company is listed on the London Stock Exchange.
Annual Report & Accounts for the year ended 30 September 2015
Today The Sage Group plc will publish its Annual Report & Accounts for the year ended 30 September 2015. The full document
can be viewed on the Company's website: www.sage.com/investors
Basis of preparation
The consolidated financial statements of The Sage Group plc have been prepared in accordance with International Financial
Reporting Standards ("IFRS") as adopted by the European Union ("EU"). The consolidated financial statements have been
prepared under the historical cost convention, except where adopted IFRS require an alternative treatment. The principal
variations from the historical cost convention relate to derivative financial instruments which are measured at fair value
through profit or loss.
The financial statements of the Group comprise the financial statements of the Company and entities controlled by the
Company (its subsidiaries) prepared at the end of the reporting period. The accounting policies have been consistently
applied across the Group. Control is achieved where the Company has the power to govern the financial and operating
policies of an entity so as to benefit from its activities which is usually from date of acquisition.
Changes in accounting policies
As the Group enters the next phase of growth and implements its new strategy, the definitions of revenue categories have
been simplified to enable stakeholders to clearly and transparently track performance. This has led to a change in the
application of the revenue recognition policy to certain products.
The most significant change is to separately disclose the revenue from our payments and payroll processing businesses,
which is driven by the volume of transactions. In addition, a small amount of revenue from software and software related
services ("SSRS") and associated discounts, has been reclassified to recurring revenue, relating to products which are
time-limited and require an on-going active maintenance contract to function as designed. This has had an impact on the
phasing of revenue. Consequently, the current year and comparative revenue split shown in the segmental note have been
revised, along with the associated impact on deferred revenue, and the description of revenue streams in the revenue
recognition accounting policy has been updated.
The impact of reclassifying and rephasing of those products moved from SSRS to recurring revenue was to reduce revenue by
£3.1m in current year and increase revenue in 2014 by £1.2m. The balance sheet impact of this change has been to increase
deferred revenue in 2015 by £25.4m (2014: £23.5m, 2013: £26.2m) representing the SSRS revenue being deferred with an
associated deferred tax asset of £8.2m (2014: £7.5m, 2013: £7.5m). The foreign exchange retranslation impact of this
deferral in 2015 of £1.3m (2014: £1.3m) is taken to other reserves.
During the period, management has also considered the accounting for its arrangements with Business Partners who refer
customers to the Group, such as Independent Sales Organisations ("ISOs") in the US Payments business and concluded that
payments made to these business partners are better reflected as costs and not as deductions to revenue. This has had the
impact of increasing revenue and costs by £46.3m (2014: £45.5m).
In addition to this change in the application of the revenue recognition policy, two other changes were made to the
presentation of items on the balance sheet. Firstly, the presentation of provisions has been revised to show them as a
separate line item on the face of the balance sheet having previously been included within trade and other payables. The
impact of this change within current liabilities in the current year is £9.9m (2014: £13.0m, 2013: £13.3m) and between
current and non-current liabilities is £10.4m (2014: £8.3m, 2013: £6.3m). Secondly, the presentation of deferred
consideration has been changed to include the balance within trade and other payables having previously been a separate
line item on the face of the balance sheet. The impact of this change in the current year is £1.4m (2014: £3.5m, 2013:
£8.2m).
The impact of the change in the application of the revenue recognition policy in the 2014 annual accounts has been
disclosed below, along with the impact of the change in presentation of provisions and deferred consideration.
For the year ended 30 September 2014 As previously reported£m Restatement adjustment £m As restated£m
Revenue 1,306.8 46.7 1,353.5
Cost of sales (74.5) - (74.5)
Gross profit 1,232.3 46.7 1,279.0
Selling and administrative expenses (933.9) (45.5) (979.4)
Operating profit 298.4 1.2 299.6
Finance cost (net) (20.9) - (20.9)
Profit before income tax 277.5 1.2 278.7
Income tax expense (89.8) - (89.8)
Profit for the period 187.7 1.2 188.9
Profit attributable to:
Owners of the parent 186.8 1.2 188.0
Non-controlling interest 0.9 - 0.9
187.7 1.2 188.9
30 September 2014 1 October 2013
As previously reported£m Restatement adjustment £m As restated£m As previously reported£m Restatement adjustment £m As restated£m
Deferred tax assets 21.9 7.5 29.4 18.7 7.5 26.2
Total non-current assets 1,679.7 7.5 1,687.2 1,776.2 7.5 1,783.7
Total current assets 468.1 - 468.1 414.2 - 414.2
Total assets 2,147.8 7.5 2,155.3 2,190.4 7.5 2,197.9
Trade and other payables (297.3) 17.8 (279.5) (287.6) 11.4 (276.2)
Provisions - (13.0) (13.0) - (13.3) (13.3)
Deferred consideration (3.5) 3.5 - (8.2) 8.2 -
Deferred income (402.7) (23.5) (426.2) (406.8) (26.2) (433.0)
Total current liabilities (912.7) (15.2) (927.9) (789.3) (19.9) (809.2)
Provisions - (8.3) (8.3) - (6.3) (6.3)
Total non-current liabilities (451.2) (8.3) (459.5) (530.8) (6.3) (537.1)
Total liabilities (1,363.9) (23.5) (1,387.4) (1,320.1) (26.2) (1,346.3)
Net assets 783.9 (16.0) 767.9 870.3 (18.7) 851.6
Equity attributable to owners of the parent
Ordinary shares 11.7 - 11.7 11.7 - 11.7
Share premium 535.9 - 535.9 532.2 - 532.2
Other reserves 88.8 1.3 90.1 60.4 (0.2) 60.2
Retained earnings 147.5 (17.3) 130.2 267.0 (18.5) 248.5
783.9 (16.0) 767.9 871.3 (18.7) 852.6
Non-controlling interest - - - (1.0) - (1.0)
Total equity 783.9 (16.0) 767.9 870.3 (18.7) 851.6
Adoption of new and revised IFRSs
There are no IFRS, IAS amendments or IFRIC interpretations effective for the first time this financial year that have had a
material impact on the Group.
Critical accounting estimates and judgements
The preparation of financial statements requires the use of accounting estimates and assumptions by management. It also
requires management to exercise its judgement in the process of applying the accounting policies. We continually evaluate
our estimates, assumptions and judgements based on available information. The areas involving a higher degree of judgement
or complexity are described below.
The judgements and management's rationale in relation to these accounting estimates and judgements are assessed and, where
material in value or in risk, are discussed with the Audit Committee.
Revenue recognition
Approximately 30% of the company's revenue is generated from sales to partners rather than to end users. The key judgement
in accounting for the three principal ways in which our business partners are remunerated is determining whether the
business partner is a customer of the Group in respect of the initial product sale. The key criteria in this determination
is whether the business partner has paid for and taken on the risks and rewards of ownership of the software product from
Sage. At this point the business partner is able to sell on the licence to the end user at a price of its determination
and consequently bears the credit risk of the onward sale.
Where the business partner is a customer of Sage, there are two ways in which they can be remunerated. Firstly, there are
discounts granted as a discount from the list price. These discounts are negotiated between the Company and the business
partner prior to the sale and invoices are raised, and revenue booked is based on the discounted price. Secondly, there
are further discounts given to business partners for subsequent renewals or increased sales to the end user. These
discounts are recognised as a deduction from the incremental revenue earned.
Where the business partner is not a customer of Sage and their part in the sale has simply been in the form of a referral,
they are remunerated in the form of a commission payment. These payments are treated as a cost within selling and
administrative costs.
An additional area of judgement is the recognition and deferral of revenue on bundled products, for example the sale of a
perpetual licence with an annual maintenance and support contract. When products are bundled together for the purpose of
sale, the associated revenue, net of all applicable discounts, is allocated between the constituent parts of the bundle on
a relative fair value basis. The Group has a systematic basis for allocating relative fair values in these situations,
based upon published list prices.
Goodwill impairment
There are two key judgements in relation to goodwill impairment.
The first is the ongoing appropriateness of the cash-generating units ("CGUs") for the purpose of impairment testing. In
the current year CGUs were assessed in the context of the Group's evolving business model, the Sage 2020 initiative and the
shift to global product development. As management continues to monitor goodwill at a country level and product cash flows
are still predominantly generated by the existing product base within each country, it was determined that the existing
CGUs remain appropriate.
The other key judgement area relates to the assumptions applied in calculating the value in use of the CGUs being tested
for impairment. The key assumptions applied in the calculation relate to the future performance expectations of the
business - average medium-term revenue growth, long term operating margin and long term growth rate - as well as the
discount rate to be applied in the calculation. These key assumptions used in performing the impairment assessment are
disclosed in the Annual Report & Accounts.
Tax provisions
The Group recognises certain provisions and accruals in respect of tax which involve a degree of estimation and uncertainty
where the tax treatment cannot finally be determined until a resolution has been reached by the relevant tax authority.
This approach resulted in providing £32.8m as at 30 September 2015 (2014: £26.3m).
The carrying amount is sensitive to the resolution of issues which is not always within the control of the Group and it is
often dependent on the efficiency of the legal processes in the relevant taxing jurisdictions in which the Group operates.
Issues can take many years to resolve and assumptions on the likely outcome have therefore been made by management.
The nature of the assumptions made by management when calculating the carrying amounts relates to the estimated tax which
could be payable as a result of decisions by tax authorities in respect of transactions and events whose treatment for tax
purposes is uncertain. In making the estimates, management's judgement was based on various factors, including;
· the status of recent and current tax audits and enquiries;
· the results of previous claims; and
· any changes to the relevant tax environments.
When making this assessment, we utilise our specialist in-house tax knowledge and experience of similar situations
elsewhere to confirm these provisions. These judgements also take into consideration specialist tax advice provided by
third party advisors on specific items.
Website
This condensed consolidated annual financial report for the year ended 30 September 2015 can also be found on our website:
www.sage.com/investors/investor-downloads
1 Segment information
This note shows how Group revenue and Group operating profit are split across the three reportable segments in which we
operate, being Europe, North America and International (South America, Africa, Australia, Middle East and Asia).
In May 2015, following the departure of the CEO of Sage Americas there was a change in the reporting segments with the
Brazilian business being moved out of the Americas segment. For reporting purposes Brazil has been combined with AAMEA to
form the new International segment and the Americas segment was renamed to North America. The 2014 comparatives have been
updated to align with the new segmental reporting.
In accordance with IFRS 8, "Operating Segments", information for the Group's operating segments has been derived using the
information used by the chief operating decision maker. The Group's Executive Committee has been identified as the chief
operating decision maker in accordance with their designated responsibility for the allocation of resources to operating
segments and assessing their performance, through the Quarterly Business Reviews ("QBRs") chaired by the CEO and CFO. The
Executive Committee use organic and underlying data to monitor business performance. Operating segments are reported in a
manner which is consistent with the operating segments produced for internal management reporting.
The Group is organised into four key operating segments, with Brazil being aggregated with AAMEA with which there are
similar economic characteristics to form the International reporting segment. The UK is the home country of the parent. The
reporting segments and their main operating territories are as follows:
- Europe (France, UK & Ireland, Spain, Germany, Switzerland, Poland, Portugal and Sage Pay)
- North America (US and Canada)
- International (Brazil, Africa, Australia, Middle East and Asia)
The Africa operations are principally based in South Africa; the Middle East and Asia operations are principally based in
Singapore, Malaysia and UAE.
The revenue analysis in the table below is based on the location of the customer which is not materially different from the
location where the order is received and where the assets are located.
Revenue by segment
Year ended 30 September 2015 Change
Statutory and underlying £m Organic adjustments £m Organic £m Statutory Underlying Organic
% % %
Recurring revenue by segment
Europe 565.3 (5.5) 559.8 3.1% 8.8% 7.8%
North America 264.7 (5.0) 259.7 16.8% 11.2% 9.1%
International 133.1 - 133.1 3.3% 13.8% 13.8%
Recurring revenue 963.1 (10.5) 952.6 6.6% 10.1% 9.0%
Software and software related services ("SSRS") revenue by segment
Europe 155.3 (2.2) 153.1 (8.4%) (2.2%) (3.6%)
North America 71.1 (1.7) 69.4 2.7% (2.6%) (4.9%)
International 64.3 - 64.3 5.9% 12.8% 12.8%
SSRS revenue 290.7 (3.9) 286.8 (2.9%) 0.7% (0.7%)
Processing revenue by segment
Europe 32.4 - 32.4 8.0% 9.1% 9.1%
North America 141.2 (20.8) 120.4 24.8% 16.0% (1.1%)
International 8.1 - 8.1 12.5% 19.1% 19.1%
Processing revenue 181.7 (20.8) 160.9 20.9% 14.9% 1.7%
Total revenue by segment
Europe 753.0 (7.7) 745.3 0.7% 6.4% 5.3%
North America 477.0 (27.5) 449.5 16.6% 10.2% 3.9%
International 205.5 - 205.5 4.4% 13.7% 13.7%
Total revenue 1,435.5 (35.2) 1,400.3 6.1% 8.6% 6.0%
Year ended 30 September 2014 (restated)
Statutory and Underlying asReported£m Impact of foreign exchange Underlying £m Organic adjustments £m Organic
£m £m
Recurring revenue by segment
Europe 548.2 (28.8) 519.4 (0.3) 519.1
North America 226.7 11.4 238.1 - 238.1
International 128.9 (11.9) 117.0 - 117.0
Recurring revenue 903.8 (29.3) 874.5 (0.3) 874.2
Software and software related services ("SSRS") revenue by segment
Europe 169.5 (10.7) 158.8 - 158.8
North America 69.2 3.8 73.0 - 73.0
International 60.7 (3.7) 57.0 - 57.0
SSRS revenue 299.4 (10.6) 288.8 - 288.8
Processing revenue by segment
Europe 30.0 (0.3) 29.7 - 29.7
North America 113.1 8.6 121.7 - 121.7
International 7.2 (0.4) 6.8 - 6.8
Processing revenue 150.3 7.9 158.2 - 158.2
Total revenue by segment
Europe 747.7 (39.8) 707.9 (0.3) 707.6
North America 409.0 23.8 432.8 - 432.8
International 196.8 (16.0) 180.8 - 180.8
Total revenue 1,353.5 (32.0) 1,321.5 (0.3) 1,321.2
Operating profit by segment
Year ended 30 September 2015 Change
Statutory £m Underlying adjustments £m Underlying Organic adjustments £m Organic £m Statutory Underlying Organic %
£m % %
Operating profit by segment
Europe 216.6 6.4 223.0 (0.8) 222.2 5.0% 9.7% 9.4%
North America 94.9 7.5 102.4 0.4 102.8 7.4% 5.0% 5.4%
International (14.3) 68.8 54.5 - 54.5 (386.0%) 9.7% 9.7%
Total operating profit 297.2 82.7 379.9 (0.4) 379.5 (0.8%) 8.4% 8.3%
Year ended 30 September 2014 (restated)
Statutory £m Underlying adjustments £m Underlying as reported Impact of foreign exchange Underlying and organic
£m £m £m
Operating profit by segment
Europe 206.2 8.4 214.6 (11.4) 203.2
Americas 88.4 4.3 92.7 4.8 97.5
International 5.0 48.7 53.7 (4.0) 49.7
Total operating profit 299.6 61.4 361.0 (10.6) 350.4
Reconciliation of underlying operating profit to statutory operating profit
Year ended Year
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