REG - Serco Group PLC - 2016 Half Year Results <Origin Href="QuoteRef">SRP.L</Origin> - Part 4
04/08/2016 07:09
- Part 4: For the preceding part double click ID:nRSD2055Gc
166.2 157.1 323.6
Derivative financial instruments 14 14.8 3.4 9.4
778.0 772.2 885.7
Assets classified as held for sale 18 19.7 473.3 39.8
797.7 1,245.5 925.5
Total assets 1,768.7 2,126.3 1,839.5
Current liabilities
Trade and other payables (550.5) (573.9) (548.8)
Derivative financial instruments 14 (4.2) (14.3) (2.4)
Current tax liabilities (11.4) (18.1) (14.2)
Provisions 12 (152.8) (147.2) (168.6)
Obligations under finance leases (15.3) (9.0) (15.8)
Loans (9.7) (34.9) (132.2)
(743.9) (797.4) (882.0)
Liabilities directly associated with assets classified as held for sale 18 (5.6) (166.1) (32.5)
(749.5) (963.5) (914.5)
Non current liabilities
Trade and other payables (18.7) (37.5) (18.3)
Deferred tax liabilities (28.6) (11.4) (22.3)
Provisions 12 (273.7) (345.3) (313.1)
Obligations under finance leases (20.4) (12.5) (28.0)
Loans (263.8) (377.5) (249.7)
Retirement benefit obligations 15 (13.6) (14.5) (11.5)
(618.8) (798.7) (642.9)
Total liabilities (1,368.3) (1,762.2) (1,557.4)
Net assets 400.4 364.1 282.1
Equity
Share capital 22.0 22.0 22.0
Share premium account 327.9 327.9 327.9
Capital redemption reserve 0.1 0.1 0.1
Retained earnings 115.8 119.8 68.5
Retirement benefit obligations reserve (83.2) (93.9) (101.3)
Share based payment reserve 85.5 75.4 80.9
Own shares reserve (59.5) (60.1) (59.8)
Hedging and translation reserve (9.7) (28.7) (57.7)
Equity attributable to owners of the Company 398.9 362.5 280.6
Non controlling interests 1.5 1.6 1.5
Total equity 400.4 364.1 282.1
Condensed Consolidated Cash Flow Statement
For the six months ended 30 June 2016 Six months ended 30 June 2016(unaudited) Six months ended 30 June 2015(unaudited) Year ended 31 December 2015(audited)
Note £m £m £m
Net cash inflow/(outflow) from operating activities before exceptional items 6.7 (40.8) 56.5
Exceptional items (32.1) (41.5) (56.6)
Net cash outflow from operating activities 16 (25.4) (82.3) (0.1)
Investing activities
Interest received 0.9 1.6 3.4
Decrease in security deposits - 0.3 0.3
Dividends received from joint ventures 19.7 15.8 32.5
Proceeds from disposal of property, plant and equipment 0.1 - 0.8
Proceeds from disposal of intangible assets 0.1 0.3 0.9
Proceeds on disposal of subsidiaries and operations 11.2 (4.3) 165.6
Acquisition of subsidiaries, net of cash acquired (0.1) (0.2) (0.2)
Purchase of other intangible assets (6.8) (13.6) (37.5)
Purchase of property, plant and equipment (7.8) (19.6) (36.7)
Net cash inflow/(outflow) from investing activities 17.3 (19.7) 129.1
Financing activities
Interest paid (11.0) (21.2) (34.7)
Exceptional finance costs paid (0.3) (31.3) (31.8)
(Decrease)/increase in loans to joint ventures 0.2 (0.9) (1.6)
Repayment of loans (135.8) (392.4) (448.4)
Capital element of finance lease repayments (8.6) (9.6) (18.8)
Share placement net proceeds - 530.1 530.3
Proceeds from issue of other share capital and exercise of share options 0.1 4.3 4.4
Net cash (outflow)/inflow from financing activities (155.4) 79.0 (0.6)
Net (decrease)/increase in cash and cash equivalents (163.5) (23.0) 128.4
Cash and cash equivalents at beginning of period 323.6 180.1 180.1
Net exchange gain/(loss) 3.6 (3.5) (2.1)
Cash reclassified to assets held for sale 2.5 3.5 17.2
Cash and cash equivalents at end of period 166.2 157.1 323.6
Notes to the Consolidated Financial Statements
1. General Information, Going Concern and Accounting Policies
The information contained herein for the year ended 31 December 2015 does not constitute statutory accounts as defined in
section 434 of the Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar
of Companies. The auditor's report on those accounts was not qualified and did not contain statements made under s498(2)
or (3) of the Companies Act 2006 and did not draw attention to any matters by way of emphasis of matter.
The annual financial statements of Serco Group plc are prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union (EU). The condensed set of financial statements included in this half
yearly financial report has been prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial
Reporting, as adopted by the EU.
In 2016 there have been no significant changes to accounting under IFRS which have impacted the Group's consolidated
financial statements in the six months ended 30 June 2016. The same accounting policies, presentation and methods of
computation are followed in the condensed set of financial statements as applied in the Group's latest annual audited
financial statements. The significant judgements made by management in applying the Group's accounting policies and the
key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at
and for the year ended 31 December 2015.
The comparative results for the six months ended 30 June 2015 have been restated for the separation of discontinued
operations as explained in note 2. The condensed set of financial statements includes the results of subsidiaries which
have been consolidated and joint ventures which have been equity accounted.
The Group's business activities, together with the factors likely to affect its future development, performance and
position are set out in the Chief Executive's Review and Divisional Reviews on pages 3 to 14. The Finance Review includes
a summary of the Group's financial position, its cash flows and its borrowing facilities.
Going Concern
In assessing the basis of preparation of the financial statements for the six months ended 30 June 2016, 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 principal debt facilities at the year end comprised a £480m revolving credit facility, and $552m of US private
placements notes. During the six months ended 30 June 2016 US$195m of the US private placement notes have been repaid
(including US$167m paid early from disposal proceeds). As at 30 June 2016, the Group had £745m of committed credit
facilities and committed headroom of £616m.
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 31 December 2017. The
Directors have also reviewed the principal risks considered on page 27.
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.
2. Discontinued Operations
The Global Services division represented UK onshore and offshore private sector BPO operations and is in the process of
being disposed. As a result, this division was deemed to be a discontinued operation in the second half of 2015. The
decision to exit these operations is a core element of the strategy to focus Serco on being a leading supplier of public
services. This not only strengthens the balance sheet position but also enables the Group to concentrate on the five core
sectors.
During 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. Disposal of one of the final two elements of the remaining
offshore business was completed in March 2016 and the final element is expected to complete prior to 31 December 2016.
The UK onshore private sector BPO businesses have been sold, are planned to be sold, or have been exited early. During
2016 progress has been made and the final elements are expected to be disposed of within the next twelve months.
The results of the discontinued operations were as follows:
Six months ended 30 June 2016(unaudited) Six months ended 30 June 2015(unaudited) Year ended 31 December 2015(audited)
Revenue 24.7 176.6 337.6
Expenses (27.9) (170.2) (311.1)
Operating (loss)/profit before exceptional items (3.2) 6.4 26.5
Exceptional (loss)/gain on disposal of subsidiaries and operations (0.3) - 5.4
Other exceptional operating items (3.9) (68.0) (83.0)
Operating loss (7.4) (61.6) (51.1)
Investment revenue - 1.5 2.1
Finance costs - (0.1) (1.2)
Exceptional finance costs (0.4) - -
Loss before tax (7.8) (60.2) (50.2)
Tax charge on loss before exceptional items (0.1) (6.2) (18.7)
Tax credit on exceptional items - - 2.7
Net loss attributable to discontinued operations presented in the income statement (7.9) (66.4) (66.2)
Attributable to:
Equity owners of the Company (7.9) (66.4) (66.0)
Non controlling interests - - (0.2)
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:
Six months ended 30 June 2016(unaudited) Six months ended 30 June 2015(unaudited) Year ended 31 December 2015(audited)
Exceptional items arising on discontinued operations
Loss on disposal of discontinued operations prior to reserve recycling (0.7) - (45.6)
Recycling of gains in hedging and translation reserves 0.4 - 51.0
Exceptional (loss)/gain on disposal (0.3) - 5.4
Other exceptional operating items
Restructuring costs (0.4) (2.6) (2.2)
Impairment of goodwill - (65.4) (65.9)
Impairment of other assets transferred to held for sale 4.3 - (14.9)
Movements in indemnities provided on business disposals (7.8) - -
Other exceptional operating items (3.9) (68.0) (83.0)
Exceptional operating items arising on discontinued operations (4.2) (68.0) (77.6)
Exceptional Operating Items
In the six months ended 2016 a charge of £0.4m (six months ended 30 June 2015: £2.6m) has arisen in discontinued operations
in relation to the restructuring programme resulting from the Strategy Review. This includes redundancy payments, external
advisory fees and other incremental costs relating to the exit of the UK private sector BPO business.
In the six months ended 30 June 2016 the value of assets held for sale increased by £4.3m, reflecting the latest estimate
of likely sale proceeds and movements of the assets held for sale since the prior balance sheet date.
A charge of £7.8m has arisen in the six months ended 30 June 2016 in relation to the movement in the value of indemnities
provided on business disposals made in previous years. This relates to changes in exchange rates where indemnities were
provided in foreign currencies and increases to provisions for interest and penalties on any tax indemnities.
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 £65.4m recorded at the half year for 2015.
Exceptional Finance Costs
In the six months ended 30 June 2016 a charge of £0.4m was incurred as a result of early payments to the US Private
Placement (USPP) Noteholders following the disposal of the offshore private sector BPO business. These charges are treated
as exceptional finance costs as they are directly linked to the restructuring resulting from the Strategy Review.
2. Discontinued Operations (continued)
The loss on disposal of discontinued operations in the six months ended 30 June 2016 is calculated as follows:
Offshore £m
Cash consideration 10.5
Less:
Net assets disposed (10.4)
Disposal related costs (0.8)
Loss on disposal of discontinued operations prior to reserve recycling (0.7)
Recycling of gains on translation of foreign operations 0.4
Exceptional loss on disposal (0.3)
The net assets at the date of disposal of discontinued operations were:
Offshore £m
Goodwill 5.6
Property, plant and equipment 0.9
Trade and other receivables 2.8
Cash and cash equivalents 2.7
Trade and other payables (1.6)
Net assets disposed 10.4
The recycling items relate to the cumulative gains taken through the Consolidated Statement of Comprehensive Income. These
are in respect of the historic movements in exchange differences on the net investment held in these overseas operations.
The net cash inflow arising on disposal of discontinued operations and the impact on net debt is as follows:
Offshore £m
Cash consideration 10.5
Less:
Cash and cash equivalents disposed (2.7)
Disposal related costs (0.7)
Net cash flow on disposal and movement in net debt 7.1
The net cash flows resulting from the discontinued operations were as follows:
Six months ended 30 June 2016(unaudited) Six months ended 30 June 2015(unaudited) Year ended 31 December 2015(audited)
Net cash inflow from operating activities before exceptional items 18.2 2.6 67.7
Exceptional items (12.7) (0.3) (1.5)
Net cash inflow from operating activities 5.5 2.3 66.2
Net cash (outflow)/inflow from investing activities (2.9) (8.3) 93.5
Net cash (outflow)/inflow from financing activities (5.3) 2.9 (26.5)
Net (decrease)/increase in cash and cash equivalents attributable to discontinued operations (2.7) (3.1) 133.2
3. Segmental Information
The Group's reportable operating segments under IFRS8 Operating Segments are:
Reportable segment Operating segment
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;
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;
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; and
Corporate Central and head office costs.
Geographic Information
Six months ended 30 June 2016(unaudited) Six months ended 30 June 2015(unaudited)(restated**) Year ended31 December 2015(audited)
Revenue £m Non current assets* £m Revenue £m Non current assets* £m Revenue £m Non current assets* £m
United Kingdom 665.5 448.5 777.1 421.3 1,529.2 259.2
United States 300.3 283.2 325.9 331.4 632.0 347.7
Australia 271.6 139.2 248.7 129.9 514.7 125.5
Middle East 153.8 21.0 143.9 15.0 291.3 16.2
Other countries 102.0 18.5 117.1 25.3 209.8 34.0
Total 1,493.2 910.4 1,612.7 922.9 3,177.0 782.6
*Non current assets exclude derivative financial instruments, deferred tax assets and loans to joint ventures and includes
assets of £nil (30 June 2015 £324.6m; 31 December 2015: £1.2m) reclassified as held for sale.
**restated to reflect discontinued operations.
3. Segmental Information (continued)
The following is an analysis of the Group's revenue and results by operating segment in the six months ended 30 June 2016.
Six months ended 30 June 2016Continuing operations CG£m LRG£m AsPac£m Middle Americas£m Corporate£m Total£m
East£m
Revenue 349.0 376.7 284.7 153.9 328.9 - 1,493.2
Result
Trading profit/(loss)* 52.0 5.1 7.9 11.5 16.8 (18.5) 74.8
Amortisation and impairment of intangibles arising on acquisition - - (0.6) - (1.3) - (1.9)
Operating profit/(loss) before exceptional items 52.0 5.1 7.3 11.5 15.5 (18.5) 72.9
Exceptional loss on disposal of subsidiaries and operations - 0.6 0.4 - - (1.9) (0.9)
Other exceptional operating items - (0.1) - (0.1) - (6.6) (6.8)
Operating profit/(loss) 52.0 5.6 7.7 11.4 15.5 (27.0) 65.2
Investment income 4.7
Finance costs (11.8)
Profit before tax 58.1
Tax on profit before exceptional items (3.7)
Tax on exceptional items (0.1)
Profit for the period 54.3
*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 2.7 6.7 2.8 0.4 - - 12.6
Other segment assets 200.6 306.6 247.7 105.0 406.3 220.0 1,486.2
Total segment assets 203.3 313.3 250.5 105.4 406.3 220.0 1,498.8
Unallocated assets 269.9
Consolidated total assets 1,768.7
Segment liabilities
Segment liabilities (315.4) (165.7) (199.0) (81.3) (109.6) (138.3) (1,009.3)
Unallocated liabilities (359.0)
Consolidated total liabilities (1,368.3)
Segment assets exclude all derivative financial instruments, current and deferred taxation assets, loans to joint ventures
and cash. Segment liabilities consist of all trade and other payables, provisions and retirement benefit obligations.
3. Segmental Information (continued)
Six months ended 30 June 2015 Continuing operations (restated**) CG£m LRG£m AsPac£m Middle Americas£m Corporate£m Total£m
East£m
Revenue 366.0 463.8 281.1 143.9 357.9 - 1,612.7
Result
Trading profit/(loss)* 21.6 10.3 7.8 14.6 22.7 (20.7) 56.3
Amortisation and impairment of intangibles arising on acquisition - (0.6) (1.0) - (1.3) - (2.9)
Operating profit/(loss) before exceptional items 21.6 9.7 6.8 14.6 21.4 (20.7) 53.4
Exceptional profit on disposal of subsidiaries and operations - - (4.2) (0.7) - - (4.9)
Other exceptional operating items (0.7) (5.2) (0.8) - - (5.0) (11.7)
Operating profit/(loss) 20.9 4.5 1.8 13.9 21.4 (25.7) 36.8
Investment income 2.8
Finance costs (22.8)
Exceptional finance costs (32.8)
Loss before tax (16.0)
Tax on loss before exceptional items (9.6)
Tax on exceptional items 0.3
Loss for the period (25.3)
*Trading profit/(loss) is defined as operating profit/(loss) before exceptional items and amortisation and impairment of
intangible assets arising on acquisition.
** Restated to reflect discontinued operations
Segment assets
Interests in joint ventures (6.9) 5.3 2.3 0.4 0.3 - 1.4
Other segment assets 191.3 413.0 219.9 95.1 463.1 149.3 1,531.7
Total segment assets 184.4 418.3 222.2 95.5 463.4 149.3 1,533.1
Unallocated assets 593.2
Consolidated total assets 2,126.3
Segment liabilities
Segment liabilities (390.2) (315.9) (228.1) (75.2) (109.6) (20.5) (1,139.5)
Unallocated liabilities (622.7)
Consolidated total liabilities (1,762.2)
3. Segmental Information (continued)
Year ended 31 December 2015Continuing operations CG£m LRG£m AsPac£m Middle Americas£m Corporate£m Total£m
East£m
Revenue 742.1 905.8 544.7 291.4 693.0 - 3,177.0
Result
Trading profit/(loss)* 60.2 (14.5) 58.8 27.4 27.0 (47.9) 111.0
Amortisation and impairment of intangibles arising on acquisition - (1.1) (1.2) - (2.5) - (4.8)
Operating profit/(loss) before exceptional items 60.2 (15.6) 57.6 27.4 24.5 (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) (1.3) (1.8) (87.5) (14.8) (107.3)
Operating profit/(loss) 60.5 (17.0) 53.7 25.6 (63.0) (63.5) (3.7)
Investment income 6.1
Finance costs (71.8)
Loss before tax (69.4)
Tax on loss before exceptional items (17.9)
Tax on exceptional items 0.4
Loss for the year (86.9)
*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 4.4 6.5 2.3 0.4 0.2 - 13.8
Other segment assets 173.5 306.1 379.3 232.5 100.3 196.6 1,388.3
Total segment assets 177.9 312.6 379.5 234.8 100.7 196.6 1,402.1
Unallocated assets 437.4
Consolidated total assets 1,839.5
Segment liabilities
Segment liabilities (340.0) (188.9) (108.6) (194.1) (74.7) (154.0) (1,060.3)
Unallocated liabilities (497.1)
Consolidated total liabilities (1,557.4)
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 material to the Group. Dividends of
£12.2m (six months ended 30 June 2015: £9.8m; year ended 31 December 2015: £17.8m) and £4.0m (six months ended 30 June
2015: £2.0m; year ended 31 December 2015: £5.9m) respectively were received from these companies in the period. The
Northern Rail franchise ended on 1 April 2016.
In March 2016 it was agreed in principle that there would be a change in the AWE Management Limited shareholding structure,
with the Group's shareholding reducing from 33.3% to 24.5% and Lockheed Martin taking a majority holding. The legal process
is expected to complete in the second half of 2016.
Summarised financial information of the Group's material joint ventures and an aggregation of the other joint ventures in
which the Group has an interest is as follows:
30 June 2016
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 508.9 131.5 133.3 235.4 58.2 293.6
Operating profit 37.8 8.4 9.4 16.8 4.6 21.4
Net investment income/(finance costs) 0.2 - (0.7) 0.1 (0.4) (0.3)
Income tax expense (3.3) (2.5) (2.0) (2.4) (1.0) (3.4)
Profit from continuing operations 34.7 5.9 6.7 14.5 3.2 17.7
Other comprehensive income - 1.2 0.4 0.6 0.2 0.8
Total comprehensive income 34.7 7.1 7.1 15.1 3.4 18.5
Non current assets 464.5 - 43.2 154.8 18.5 173.3
Current assets 168.3 33.9 75.0 73.1 32.9 106.0
Current liabilities (154.0) (22.5) (69.2) (62.6) (30.4) (93.0)
Non current liabilities (462.0) - (51.7) (154.0) (19.7) (173.7)
Net assets/(liabilities) 16.8 11.4 (2.7) 11.3 1.3 12.6
Proportion of Group ownership 33% 50% Various - - -
Carrying amount of investment 5.6 5.7 1.3 11.3 1.3 12.6
*100% of the results of the joint ventures multiplied by the respective proportion of Group ownership.
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/(expense) - 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
*100% of the results of the joint ventures multiplied by the respective proportion of Group ownership.
30 June 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 499.4 278.9 135.5 305.9 58.0 363.9
Operating profit 26.3 4.2 11.1 10.9 5.0 15.9
Net investment revenue/(finance costs) 0.2 0.1 (0.8) 0.1 (0.3) (0.2)
Income tax expense (2.6) - (1.7) (0.9) (0.9) (1.8)
Profit from continuing operations 23.9 4.3 8.6 10.1 3.8 13.9
Other comprehensive income/(expense) - 4.8 (1.0) 2.4 (0.8) 1.6
Total comprehensive income 23.9 9.1 7.6 12.5 3.0 15.5
Non current assets 590.3 10.2 51.6 201.9 17.1 219.0
Current assets 331.0 88.2 85.8 154.4 35.7 190.1
Current liabilities (319.9) (92.5) (78.5) (152.8) (33.6) (186.4)
Non current liabilities (590.0) (8.2) (57.1) (200.8) (20.5) (221.3)
Net assets/(liabilities) 11.4 (2.3) 1.8 2.7 (1.3) 1.4
Proportion of Group ownership 33% 50% Various - - -
Carrying amount of investment 3.8 (1.1) (1.3) 2.7 (1.3) 1.4
*100% of the results of the joint ventures multiplied by the respective proportion of Group ownership.
5. Exceptional Items
Exceptional items are non-recurring items of financial performance that are outside of normal practice and material to the
results of the Group either by virtue of size or nature. We believe these items require separate disclosure on the face of
the income statement to assist in the understanding of the underlying performance of the Group.
Net Loss on Disposal of Subsidiaries and Operations
There were no material disposals of continuing operations in the six months ended 30 June 2016. The loss on disposal of
£0.9m in the period arose from a profit of £0.4m on the disposal of a 10% investment sold as it was no longer required to
be held under the terms of the relevant contract, offset by £1.3m of charges relating to transactions completing in prior
years.
The exceptional loss on disposal in the six months ended 30 June 2015 was £4.9m. In May 2015, the Group completed the sale
of its Great Southern Rail (GSR) business in Australia for a cash consideration of £2.6m, with a loss on disposal of £4.2m
being charged in the six month period to 30 June 2015. The transaction is part of the disposal programme of businesses
identified as not being core to Serco's future strategy, as announced initially in November 2014. In addition, in January
2015, the Group disposed of its National Physical Laboratory (NPL) business for a consideration of £12.1m, with no gain or
loss on disposal. Both these businesses were classified as held for sale as at 31 December 2014. In June 2015, the Group
also disposed of its Serco India Private Limited business, representing the Group's frontline public
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