REG - Serco Group PLC - 2015 full year results <Origin Href="QuoteRef">SRP.L</Origin> - Part 4
25/02/2016 07:12
- Part 4: For the preceding part double click ID:nRSY0914Qc
Shares transferred to option holders on exercise of share options - 0.1 - - - (3.8) 6.0 - 2.3 -
Dividends paid - - - (53.1) - - - - (53.1) -
Expense in relation to share-based payments - - - - - 5.4 - - 5.4 -
Tax charge in relation to share-based payments - - - - - (0.4) - - (0.4) -
Change in non-controlling interest - - - - - - - - - 0.8
At 1 January 2015 11.0 327.9 0.1 (306.0) (89.0) 71.4 (64.5) (18.9) (68.0) 1.8
Total comprehensive (expense) for the year - - - (145.0) (12.1) - - (38.8) (195.9) (0.4)
Issue of share capital1 11.0 - - 519.3 - - - - 530.3 -
Shares transferred to option holders on exercise of share options - - - - - (0.3) 4.7 - 4.4 -
Transfer on disposal - - - 0.2 (0.2) - - - - -
Expense in relation to share-based payments - - - - - 9.8 - - 9.8 -
Change in non-controlling interest - - - - - - - - - 0.1
At 31 December 2015 22.0 327.9 0.1 68.5 (101.3) 80.9 (59.8) (57.7) 280.6 1.5
1 During the year the Group raised £530.3m via a Rights Issue. A cash box structure was used in such a way that merger
relief was available under Companies Act 2006, section 612 and thus no share premium needed to be recorded. As the
redemption of the cash box entity's preference shares was in the form of cash, the transaction was treated as qualifying
consideration and the premium is therefore considered to be a realised profit.
Consolidated Balance Sheet
At 31 December 2015 At 31 December2014
Note £m £m
Non current assets
Goodwill 12 509.9 541.5
Other intangible assets 89.8 118.8
Property, plant and equipment 73.2 38.4
Interests in joint ventures 4 13.8 1.6
Trade and other receivables 50.2 38.1
Derivative financial instruments 16 7.8 7.0
Deferred tax assets 42.2 37.4
Retirement benefit assets 127.1 143.9
914.0 926.7
Current assets
Inventories 26.4 31.2
Trade and other receivables 519.7 498.8
Current tax assets 6.6 16.5
Cash and cash equivalents 323.6 180.1
Derivative financial instruments 16 9.4 5.9
885.7 732.5
Assets classified as held for sale 18 39.8 564.7
925.5 1,297.2
Total assets 1,839.5 2,223.9
Current liabilities
Trade and other payables (548.8) (581.9)
Derivative financial instruments 16 (2.4) (17.7)
Current tax liabilities (14.2) (12.6)
Provisions 14 (168.6) (205.7)
Obligations under finance leases (15.8) (9.6)
Loans (132.2) (43.9)
(882.0) (871.4)
Liabilities directly associated with assets classified as held for sale 18 (32.5) (219.9)
(914.5) (1,091.3)
Non current liabilities
Trade and other payables (18.3) (29.7)
Deferred tax liabilities (22.3) (9.2)
Provisions 14 (313.1) (372.2)
Obligations under finance leases (28.0) (16.9)
Loans (249.7) (753.4)
Retirement benefit obligations (11.5) (17.4)
(642.9) (1,198.8)
Total liabilities (1,557.4) (2,290.1)
Net assets/(liabilities) 282.1 (66.2)
Equity
Share capital 35 22.0 11.0
Share premium account 36 327.9 327.9
Capital redemption reserve 0.1 0.1
Retained (loss)/earnings 68.5 (306.0)
Retirement benefit obligations reserve (101.3) (89.0)
Share based payment reserve 80.9 71.4
Own shares reserve (59.8) (64.5)
Hedging and translation reserve (57.7) (18.9)
Equity attributable to owners of the Company 280.6 (68.0)
Non-controlling interest 1.5 1.8
Total equity 282.1 (66.2)
The financial statements were approved by the Board of Directors on 25 February 2016 and signed on its behalf by:
Rupert Soames Angus Cockburn
Group Chief Executive Officer Group Chief Financial Officer
Consolidated Cash Flow Statement
For the year ended 31 December 2015 2014
Note £m £m
Net cash inflow from operating activities before exceptional items 56.5 103.5
Exceptional items (56.6) (40.4)
Net cash (outflow)/inflow from operating activities 17 (0.1) 63.1
Investing activities
Interest received 3.4 2.7
Increase in security deposits 0.3 -
Dividends received from joint ventures 32.5 34.8
Proceeds from disposal of property, plant and equipment 0.8 5.8
Proceeds from disposal of intangible assets 0.9 1.1
Proceeds on disposal of subsidiaries and operations 2,5 165.6 1.9
Acquisition of subsidiaries, net of cash acquired (0.2) (6.5)
Acquisition of other investments - (3.5)
Purchase of other intangible assets (37.5) (20.0)
Purchase of property, plant and equipment (36.7) (23.4)
Net cash inflow/(outflow) from investing activities 129.1 (7.1)
Financing activities
Interest paid (34.7) (42.3)
Exceptional finance costs paid (31.8) -
Dividends paid 10 - (53.1)
Repayment of loans (448.4) (36.0)
Repayment of non recourse loans - (3.1)
Increase in loans to joint ventures (1.6) -
New loan advances - 17.4
Capital element of finance lease repayments (18.8) (18.2)
Costs of equity rights issue - (4.1)
Share placement net proceeds 530.3 156.3
Proceeds from issue of other share capital and exercise of share options 4.4 2.3
Net cash (outflow)/inflow from financing activities (0.6) 19.2
Net increase in cash and cash equivalents 128.4 75.2
Cash and cash equivalents at beginning of year 180.1 125.1
Net exchange (loss)/gain (2.1) 2.2
Cash reclassified to assets held for sale 17.2 (22.4)
Cash and cash equivalents at end of year 323.6 180.1
Notes to the Consolidated Financial Statements
1. General Information, Going Concern and Accounting Policies
The basis of preparation in this preliminary announcement is set out below.
The financial information in this announcement does not constitute the Company's statutory accounts for the years ending 31
December 2015 or 2014, but is derived from these accounts.
Statutory accounts for 2014 have been delivered to the Registrar of Companies and those for 2015 will be delivered
following the Company's Annual General Meeting. The auditors' report on the 2014 financial statements, whilst unqualified,
contained an emphasis of matter which drew attention to the existence of a material uncertainty which may have cast
significant doubt about the Company's ability to continue as a going concern. The auditors' report on the 2015 accounts
contained no emphasis of matter and did not contain statements under S498 (2) or (3) or the Companies Act 2006 or
equivalent preceding legislation.
The preliminary announcement has been prepared in accordance with International Financial Reporting Standards (IFRS)
adopted for use in the European Union. Whilst the financial information included in this preliminary announcement has been
computed in accordance with IFRS, this announcement does not itself contain sufficient information to comply with IFRS.
The Company expects to publish full Group and parent company only financial statements that comply with IFRS and FRS101
respectively, in March 2016.
The financial statements have been prepared on the historical cost basis.
Adoption of New and Revised Standards
The following changes to IFRSs became effective in the current reporting period:
Title Type Background Impact on Serco
Annual Improvements to IFRSs: 2011-2013 Cycle Amendments Covers various matters:· IFRS 1 First-time Adoption of International Financial Reporting Standards· IFRS 3 Business Combinations· IFRS 13 Fair Value Measurement· IAS 40 Investment Property Effective for annual periods beginning on or after 1 January 2015, following EU Adoption. IFRS 1 is not relevant as IFRSs have already been adopted. IFRS 3 changes relate to accounting within joint arrangements
themselves and are therefore not relevant. IFRS 13 was amended to clarify the scope of the portfolio exception, which is not
applied in the Group financial statements. IAS 40 is not relevant to Serco as no investment properties are held.
IFRIC 21 Levies New interpretation The interpretation was issued to clarify the timing of recognition of a levy payment, being a payment to a government for which no specific goods or services are received. No material levy payments are made by the Group.
Going Concern
In assessing the basis of preparation of the financial statements for the year ended 31 December 2015, the Directors have
considered the principles of the Financial Reporting Council's 'Guidance on Risk Management, Internal Control and Related
Financial and Business Reporting, 2014'; namely assessing the applicability of the going concern basis, the review period
and disclosures.
The Group's current principal debt facilities at the year end comprised a £480m revolving credit facility, and £375m of US
private placements notes. Subsequent to the year end, the Group has repaid £113m of the US private placement notes, which
left £262m of notes outstanding. As at 31 December 2015, the Group had £855m of committed credit facilities and committed
headroom of £777m.
1. General Information, Going Concern and Accounting Policies (continued)
Assessment of going concern
The Directors have undertaken a rigorous assessment of going concern and liquidity, taking into account financial
forecasts. In order to satisfy ourselves that we have adequate resources for the future, the Directors have
reviewed the Group's existing debt levels, the committed funding and liquidity positions under our debt covenants, and our
ability to generate cash from trading activities.
Review period
In undertaking this review the Directors have considered the business plans which provide financial projections for the
foreseeable future. For the purposes of this review, we consider that to be the period ending 30 June 2017. The Directors
have also reviewed the principal risks and taken account of the results of sensitivity testing.
Assessment
The Directors have a reasonable expectation that the Company and the Group will be able to operate within the level of
available facilities and cash for the foreseeable future and accordingly believe that it is appropriate to prepare the
financial statements on a going concern basis.
Critical Accounting Judgements and Key Sources of Estimation Uncertainty
In the process of applying the Group's accounting policies, which are described in note 2 of the financial statements
above, management has made the following judgements that have the most significant effect on the amounts recognised in the
financial statements. As described below, many of these areas of judgement also involve a high level of estimation
uncertainty.
Provisions for Onerous Contracts
Determining whether provisions are required for loss making contracts requires significant judgements to be made regarding
the ability of the company to maintain or improve operational performance. Judgements can also be made regarding the
outcome of matters dependent on the behaviour of the customer in question or other parties involved in delivering the
contract.
The level of uncertainty in the estimates made, either in determining whether a provision is required, or in the
calculation of a provision booked, is linked to the complexity of the underlying contract and the form of service
delivery.
In the current year material revisions have been made to historic provisions, which have led to a charge to contract
provisions of £89.1m (excluding £12.8m in respect of businesses held for sale) and releases of £93.0m (excluding £1.3m in
respect of businesses held for sale). All of these revisions have resulted from triggering events in the current year,
either through changes in contractual positions or changes in circumstances which could not have been reasonably foreseen
at the previous balance sheet date. To mitigate the level of uncertainty is making these estimates Management regularly
compares actual performance of the contracts against previous forecasts and considers whether there have been any changes
to significant judgements. A detailed bottom up review of the provisions is performed as part of the Group's formal annual
budgeting process.
Impairment of Assets
Identifying whether there are indicators of impairment for assets involves a high level of judgement and a good
understanding of the drivers of value behind the asset. At each reporting period an assessment is performed in order to
determine whether there are any such indicators, which involves considering the performance of our business and any
significant changes to the markets in which we operate. The total value of assets which are covered by this assessment
process (after previous impairments) is £1,255.0m (2014: £1,252.9m), which is the maximum exposure related to this
judgement. We mitigate the risk associated with this judgement by putting in place processes and guidance for the finance
community and internal review procedures.
1. General Information, Going Concern and Accounting Policies (continued)
Determining whether assets with impairment indicators require an actual impairment involves an estimation of the expected
value in use of the asset (or CGU to which the asset relates). The value in use calculation involves an estimation of
future cash flows and also the selection of appropriate discount rates, both of which involve considerable judgement. The
future cash flows are derived from approved forecasts, with the key assumptions being revenue growth, margins and cash
conversion rates. Discount rates are calculated with reference to the specific risks associated with the assets and are
based on advice provided by external experts. Our calculation of discount rates are performed based on a risk free rate of
interest appropriate to the geographic location of the cash flows related to the asset being tested, which is subsequently
adjusted to factor in local market risks and risks specific to Serco and the asset itself. Discount rates used for
internal purposes are post tax rates, however for the purpose of impairment testing in accordance with IAS 36 Impairment of
Assets we calculate a pre tax rate based on post tax targets.
During the year, goodwill associated with the Americas CGU was determined to be impaired, resulting in an exceptional
charge in respect of continuing operations of £87.5m (2014: three CGUs impaired resulting in charges of £182.2m). In
addition, a charge of £9.0m (2014: £32.4m) was recognised in respect of certain intangible assets. A charge of £2.0m (2014:
£36.7m) was recognised in respect of certain items of property, plant and equipment and a credit of £6.8m (2014: charge of
£17.4m) was recognised in respect of billed receivables.
Valuation of Assets Held for Sale
Held for sale assets are measured at the lower of their carrying amount and fair value less costs to sell and up to the
point a sales price has been formally agreed a level of judgement is required in assessing the value of these assets. All
assets included as held for sale are based on the latest offer received which is likely to be acceptable to us and the
customer of the affected contract, but unforeseen events may lead to a change in this price prior to completion of the
transaction. The total value of assets held for sale is £7.3m (2014: £344.8m) which is stated after an impairment charge
for the year of £72.4m (2014: £39.2m), which corresponded to £65.9m in relation to goodwill and £6.5m for other assets
(2014: all other assets).
Revenue and Recognition
Calculating the fair value of the Group's revenue typically does not require a significant level of judgement, the
exceptions to this are the following areas:
· Uncontracted variations or claims. Where work has been performed outside of the normal contracting framework at the
request of the customer or a claim has been made for work performed but in a dispute, judgement is required in order to
determine whether there is sufficient certainty that the Group will be financially compensated. Revenue is only recognised
to the extent that they have been orally agreed by the customer or are virtually certain of being received.
· Payments by results contracts. When returns are directly linked to performance through cost savings or other
customer driven key performance indicators over a period of time an estimate is made of the likelihood of achieving the
necessary level of performance when the period covers a financial year end. Revenue is only recognised when we can be
reasonably certain of achieving the required level of performance.
· Long term contracts. Revenue and profit is recognised for certain long-term project-based contracts based on the
stage of completion of the contract activity. The assessment of the stage of completion requires the exercise of judgement
and is measured by the proportion of costs incurred to estimated whole-life contract costs, except where whole life
contract costs exceed the contract value, in which case the excess is expensed immediately.
Separation of Income Statement Items from Underlying Results
IAS 1 requires material items to be disclosed separately in a way that enables users to assess the quality of a company's
profitability. In practice, these are commonly referred to as "exceptional" items, but this is not a concept defined by
IFRS and therefore there is a level of judgement involved in determining what to include in underlying profit. We consider
items which are material, non-recurring and outside of the normal operating practice of the company to be suitable for
separate presentation.
1. General Information, Going Concern and Accounting Policies (continued)
Retirement Benefit Obligations
The calculation of retirement benefit obligations is dependent on material key assumptions including discount rates,
mortality rates, inflation rates and future contribution rates. The value of net retirement benefit obligations at the
balance sheet date is an asset of £115.6m (2014: £126.5m). Details of the impact of changes in assumptions relating to
retirement benefit obligations are disclosed in note 34 of the financial statements.
2. Discontinued operations
Following the transfer of the public sector Business Process Outsourcing (BPO) operations to the UK and Europe Local and
Regional Government division in 2014, the Global Services division represented only onshore and offshore private sector BPO
operations. While the exit of the whole of the private sector BPO operations had been planned and announced in 2014,
certain UK onshore contracts were planned to be exited early rather than be sold and therefore it was not appropriate to
treat these operations as discontinued in 2014.
On 16 September 2015 the disposal of the offshore private sector BPO operations was agreed and completion of the sale of
the majority of these operations occurred on 31 December 2015. The disposal of the remaining offshore business to the same
purchaser is expected to complete in 2016 following receipt of the necessary regulatory approval and the balance sheet
items associated with these operations remain within items held for sale at 31 December 2015. As at 31 December the net
assets relating to the remaining element, being the operations based in the Middle East, were equal to the expected
consideration in respect of the disposal of £15.0m.
During the course of 2015 the UK onshore private sector BPO businesses have either been sold, are planned to be sold, or
have been exited early and as a result the Global Services division is deemed to be a discontinued operation. Those UK
onshore BPO businesses which have not yet been sold are also treated as held for sale.
The decision to exit these operations is a core element of the strategy to focus Serco on being a leading supplier of pic
services. This not only strengthens the balance sheet position but also enables the Group to focus on the five core
markets.
The results of the discontinued operations were as follows:
For the year ended 31 December 2015£m 2014£m
Revenue 337.6 359.3
Expenses (311.1) (388.3)
Operating profit/(loss) before exceptional items 26.5 (29.0)
Exceptional gain/(loss) on disposal of subsidiaries and operations 5.4 (3.1)
Other exceptional operating items (83.0) (332.7)
Operating loss (51.1) (364.8)
Investment revenue 2.1 1.6
Finance costs (1.2) (0.3)
Loss before tax (50.2) (363.5)
Tax charge on profit/(loss) before exceptional items (18.7) (3.9)
Tax credit on exceptional items 2.7 9.8
Net loss attributable to discontinued operations presented in the income statement (66.2) (357.6)
Attributable to:
Equity owners of the Company (66.0) (357.3)
Non controlling interests (0.2) (0.3)
2. Discontinued operations (continued)
Included above are items classified as exceptional as they are considered to be material, non recurring and outside of the
normal course of business. These are summarised as follows:
For the year ended 31 December 2015 2014
£m £m
Exceptional items arising on discontinued operations
Loss on disposal of discontinued operations prior to reserve recycling (45.6) (3.1)
Recycling of gains in hedging and translation reserves 51.0 -
Exceptional gain/(loss) on disposal 5.4 (3.1)
Other exceptional operating items
Restructuring costs (2.2) (8.7)
Impairment of goodwill (65.9) (284.8)
Impairment of other assets transferred to held for sale (14.9) (39.2)
Other exceptional operating items (83.0) (332.7)
Exceptional operating items arising on discontinued operations (77.6) (335.8)
In 2015 a charge of £2.2m (2014: £8.7m) has arisen in discontinued operations in relation to the restructuring programme
resulting from the Strategy Review. This includes redundancy payments, provisions and other charges relating to the exit of
the UK private sector BPO business, external advisory fees and other incremental costs.
During 2015, an impairment test of the Global Services business was conducted based on a level 3 fair value measurement,
with reference to offers received less costs of disposal. The impairment testing identified a non-cash exceptional
impairment of goodwill relating to discontinued operations of £65.9m (2014: £284.8m) which was recorded at the half year.
Assets other than goodwill have also been impaired by a total of £14.9m (2014: £39.2m).
The impairment of goodwill relates primarily to the offshore Global Services business, the majority of which was disposed
of on 31 December 2015, with the other asset impairments relating to the UK onshore business.
The loss on disposal of discontinued operations is calculated as follows:
Offshore £m UK onshore £m Total£m
Cash consideration 212.8 (1.6) 211.2
Face value of Loan Note received 30.0 - 30.0
Gross consideration 242.8 (1.6) 241.2
Loan Note fair value adjustment (10.5) - (10.5)
Indemnities provided (30.7) (2.3) (33.0)
Net consideration 201.6 (3.9) 197.7
Less:
Net (assets)/liabilities disposed (239.0) 3.7 (235.3)
Disposal related costs (7.5) (0.5) (8.0)
Loss on disposal of discontinued operations prior to reserve recycling (44.9) (0.7) (45.6)
Recycling of gains on translation of foreign operations 43.0 - 43.0
Recycling of gains on hedged derivative financial instruments from reserves 8.0 - 8.0
Exceptional gain/(loss) on disposal 6.1 (0.7) 5.4
3. Segmental Information
The Group's operating segments reflecting the information reported to the Board in 2015 under IFRS 8 Operating Segments are
as set out below. The only material change on the prior year is the Global Services segment being reclassified as a
discontinued operation.
Reportable segments Operating segments
UK Central Government Frontline services for sectors including Defence, Justice & Immigration and Transport delivered to UK Government and devolved authorities;
UK & Europe Local & Regional Government Services for sectors including Health, Local Government Direct Services, Citizen Services and BPO services delivered to UK & European public sector customers;
Americas Professional, technology and management services for sectors including Defence, Transport and Citizen Services delivered to US federal and civilian agencies, selected state and municipal governments and the Canadian Government;
AsPac Frontline services for sectors including Defence, Justice & Immigration, Transport, Health and Citizen Services in the Asia Pacific region including Australia, New Zealand and Hong Kong;
Middle East Frontline services for sectors including Defence, Transport and Health in the Middle East region; and
Corporate Central and head office costs.
The accounting policies of the reportable segments are the same as the Group's accounting policies described in note 2 of
the financial statements.
Geographic Information
Year ended 31 December Revenue2015 £m Non current assets*2015 £m Revenue2014 £m Non-current assets*2014 £m
United Kingdom 1,529.2 259.2 1,789.4 464.7
United States 632.0 347.7 642.1 336.6
Australia 514.7 125.5 657.0 140.3
Middle East 291.3 16.2 260.4 14.6
Other countries 209.8 34.0 246.8 246.4
Total 3,177.0 782.6 3,595.7 1,202.6
*Non-current assets exclude financial instruments, deferred tax assets and loans to joint ventures and include assets of
£1.2m (2014: £405.4m) reclassified as held for sale.
Revenues from external customers are attributed to individual countries on the basis of the location of the customer.
3. Segmental Information (continued)
The following is an analysis of the Group's revenue, results, assets and liabilities by reportable segment:
Year ended 31 December 2015 CG£m LRG£m Americas£m AsPac£m Middle Corporate£m Total£m
East£m
Revenue 742.1 905.8 693.0 544.7 291.4 - 3,177.0
Result
Trading profit/(loss)* 60.2 (14.5) 27.0 58.8 27.4 (47.9) 111.0
Amortisation and impairment of intangibles arising on acquisition - (1.1) (2.5) (1.2) - - (4.8)
Operating profit/(loss) before exceptional items 60.2 (15.6) 24.5 57.6 27.4 (47.9) 106.2
Exceptional profit/(loss) on disposal of subsidiaries and operations 0.5 0.3 - (2.6) - (0.8) (2.6)
Other exceptional operating items (0.2) (1.7) (87.5) (1.3) (1.8) (14.8) (107.3)
Operating profit/(loss) 60.5 (17.0) (63.0) 53.7 25.6 (63.5) (3.7)
Investment revenue 6.1
Finance costs (71.8)
Loss before tax (69.4)
Tax charge (17.5)
Loss for the year from continuing operations (86.9)
*Trading profit/(loss) is defined as operating profit/(loss) before exceptional items and amortisation and impairment of
intangible assets arising on acquisition.
Segment assets
Interests in joint ventures 4.4 6.5 0.2 2.3 0.4 - 13.8
Other segment assets 126.0 202.2 473.6 235.0 100.7 218.9 1,356.4
Total segment assets 130.4 208.7 473.8 237.3 101.1 218.9 1,370.2
Unallocated assets, including assets held for sale 469.3
Consolidated total assets 1,839.5
Segment liabilities
Segment liabilities (104.3) (130.8) (63.7) (109.3) (60.0) (135.4) (603.5)
Unallocated liabilities, including liabilities linked to assets held for sale (953.9)
Consolidated total liabilities (1,557.4)
3. Segmental Information (continued)
Year ended 31 December 2014 CG£m LRG£m Americas£m AsPac£m Middle Corporate£m Total£m
East£m
Revenue 961.4 959.8 708.1 706.0 260.4 - 3,595.7
Result
Trading (loss)/profit)* (242.8) (90.4) 16.5 (201.6) (0.2) (90.1) (608.6)
Amortisation and impairment of intangibles arising on acquisition (0.1) (7.2) (2.3) (8.6) - - (18.2)
Operating (loss)/profit before exceptional items (242.9) (97.6) 14.2 (210.2) (0.2) (90.1) (626.8)
Exceptional (loss)/profit on disposal of subsidiaries and operations 1.9 0.4 - - - (4.6) (2.3)
Other exceptional operating items (42.7) (95.9) (101.7) (41.3) (1.7) (40.1) (323.4)
Operating (loss)/profit (283.7) (193.1) (87.5) (251.5) (1.9) (134.8) (952.5)
Investment revenue 4.6
Finance costs (42.6)
Loss before tax (990.5)
Tax credit 1.0
Loss for the year from continuing operations (989.5)
*Trading (loss)/profit is defined as operating (loss)/profit before exceptional items and amortisation and impairment of
intangible assets arising on acquisition.
Segment assets
Interests in joint ventures (7.0) 5.0 0.2 3.0 0.4 - 1.6
Other segment assets 135.1 431.9 458.9 236.3 99.7 178.9 1,540.8
Total segment assets 128.1 436.9 459.1 239.3 100.1 178.9 1,542.4
Unallocated assets, including assets held for sale 681.5
Consolidated total assets 2,223.9
Segment liabilities
Segment liabilities (146.1) (247.5) (62.0) (99.2) (55.2) (93.3) (703.3)
Unallocated liabilities, including liabilities linked to assets held for sale (1,586.8)
Consolidated total liabilities (2,290.1)
4. Joint Ventures
The Group has certain arrangements where control is shared equally with one or more parties. As each arrangement is a
separate legal entity and legal ownership and control are equal with all other parties, there are no significant judgements
required to be made.
AWE Management Limited and Northern Rail Holdings Limited are the only joint ventures which are material to the Group.
Dividends of £17.8m (2014: £16.8m) and £5.9m (2014: £8.9m) respectively were received from these companies in the year.
Summarised financial information of AWE Management Limited and Northern Rail Holdings Limited, and an aggregation of the
other joint ventures in which the Group has an interest, is as follows:
4. Joint Ventures (continued)
31 December 2015
Summarised financial information AWE Management Limited(100% of results)£m Northern Rail Holdings Limited(100% of results)£m Other joint venture arrangements (100% of results)£m Group portion of material joint ventures*£m Group portion of other joint venture arrangements*£m Total£m
Revenue 978.3 585.3 277.1 618.7 118.5 737.2
Operating profit 61.2 19.4 27.0 30.1 12.5 42.6
Net investment revenue/(finance costs) 0.4 0.4 (1.4) 0.3 (0.7) (0.4)
Income tax expense (5.9) (3.5) (3.8) (3.7) (1.5) (5.2)
Profit from continuing operations 55.7 16.3 21.8 26.7 10.3 37.0
Other comprehensive income - 11.9 5.0 5.9 1.7 7.6
Total comprehensive income 55.7 28.2 26.8 32.6 12.0 44.6
Non current assets 464.2 10.3 52.7 159.9 17.3 177.2
Current assets 358.8 97.2 85.6 168.2 35.7 203.9
Current liabilities (342.6) (93.4) (75.1) (160.9) (32.7) (193.6)
Non current liabilities (461.7) (3.8) (52.3) (155.8) (17.9) (173.7)
Net assets 18.7 10.3 10.9 11.4 2.4 13.8
Proportion of group ownership 33% 50% Various - - -
Carrying amount of investment 6.2 5.2 2.5 11.4 2.4 13.8
31 December 2014
Summarised financial information AWE Management Limited(100% of results)£m Northern Rail Holdings Limited(100% of results)£m Other joint venture arrangements (100% of results)£m Group portion of material joint ventures*£m Group portion of other joint venture arrangements*£m Group portionTotal£m
Revenue 989.3 577.5 397.0 618.5 179.8 798.3
Operating profit 54.9 17.7 23.8 27.2 10.7 37.9
Net investment revenue/(finance costs) 0.3 0.4 (1.4) 0.3 (0.6) (0.3)
Income tax expense (4.6) (5.1) (7.0) (4.1) (3.5) (7.6)
Profit from continuing operations 50.6 13.0 15.4 23.4 6.6 30.0
Other comprehensive income/(expense) - 0.8 (4.3) 0.4 (2.3) (1.9)
Total comprehensive income
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