REG - Serco Group PLC - Final Results <Origin Href="QuoteRef">SRP.L</Origin> - Part 5
12/03/2015 07:02
- Part 5: For the preceding part double click ID:nRSL2478Hd
Revenue 4,288.1 (3.9) - 4,284.2
Operating profit 143.8 (3.9) 5.6 145.5
Investment revenue 5.2 - - 5.2
Finance costs (42.4) - - (42.4)
Profit before tax 106.6 (3.9) 5.6 108.3
Tax (charge)/credit (11.2) 1.3 - (9.9)
Profit for the year 95.4 (2.6) 5.6 98.4
Earnings per share 19.51p (0.53p) 1.14p 20.12p
Other comprehensive (expense)/income for the year (58.4) 2.6 (5.6) (61.4)
Total comprehensive income for the year 37.0 - - 37.0
Balance sheet
Non-current assets 1,841.8 - - 1,841.8
Current assets 967.1 - - 967.1
Total assets 2,808.9 - - 2,808.9
Current liabilities (768.0) - - (768.0)
Non-current liabilities (945.0) - - (945.0)
Total liabilities (1,713.0) - - (1,713.0)
Net assets 1,095.9 - - 1,095.9
Retained earnings 946.7 (30.9) 25.2 941.0
Hedging and translation reserve (46.7) 30.9 (25.2) (41.0)
Other equity accounts 195.9 - - 195.9
Equity 1,095.9 - - 1,095.9
Cash flow
Net cash inflow from operating activities 7.9 - - 7.9
Investing activities 14.2 - - 14.2
Financing activities (23.9) - - (23.9)
Net decrease in cash and cash equivalents (1.8) - - (1.8)
Net exchange loss (15.9) - - (15.9)
2. Prior Year Restatement (continued)
Year ended 31 December 2012 As previously disclosed Derivatives Net Investment Hedges Restated
£m £m £m £m
Income statement
Revenue 4,060.1 (3.3) - 4,056.8
Operating profit 272.2 (3.3) 18.3 287.2
Investment revenue 6.4 - - 6.4
Exceptional other gain 51.1 - - 51.1
Finance costs (48.6) - - (48.6)
Profit before tax 281.1 (3.3) 18.3 296.1
Tax (charge)/credit (40.1) 1.1 - (39.0)
Profit for the year 241.0 (2.2) 18.3 257.1
Attributable to equity shareholders of the Company 240.4 256.5
Earnings per share 48.94p (0.44p) 3.72p 52.22p
Other comprehensive (expense)/income for the year (79.6) 2.2 (18.3) (95.7)
Total comprehensive income for the year 161.4 - - 161.4
As previously disclosed Derivatives Net Investment Hedges Restated
£m £m £m £m
Balance sheet
Non-current assets 1,875.7 - - 1,875.7
Current assets 1,001.3 - - 1,001.3
Total assets 2,877.0 - - 2,877.0
Current liabilities (866.9) - - (866.9)
Non-current liabilities (881.2) - - (881.2)
Total liabilities (1,748.1) - - (1,748.1)
Net assets 1,128.9 - - 1,128.9
Retained earnings 900.7 (28.3) 19.6 892.0
Hedging and translation reserve 10.0 28.3 (19.6) 18.7
Other equity accounts 218.2 - - 218.2
Equity 1,128.9 - - 1,128.9
Cash flow
Net cash inflow from operating activities 220.9 - - 220.9
Investing activities (4.0) - - (4.0)
Financing activities (259.8) - - (259.8)
Net decrease in cash and cash equivalents (42.9) - - (42.9)
Net exchange loss (8.9) - - (8.9)
At 1 January 2012 As previously disclosed Derivatives Net Investment Hedges Restated
£m £m £m £m
Balance sheet
Non-current assets 1,872.1 - - 1,872.1
Current assets 958.9 - - 958.9
Total assets 2,831.0 - - 2,831.0
Current liabilities (922.7) - - (922.7)
Non-current liabilities (904.5) - - (904.5)
Total liabilities (1,827.2) - - (1,827.2)
Net assets 1,003.8 - - 1,003.8
Retained earnings 703.5 (26.1) 1.3 678.7
Hedging and translation reserve 28.6 26.1 (1.3) 53.4
Other equity accounts 271.7 - - 271.7
Equity 1,003.8 - - 1,003.8
3. Segmental Information
This note is presented according to the management structure and internal reporting that Serco has put in place for 2015 as
a result of actions from the Corporate Renewal Programme and the Strategy Review. The former segments, as reported in 2014
to the Board, is provided in note 18. The UK Central Government division is now a separate unit which brings together
Serco's work for the UK Central Government; it also brings together all Transport operations, including those for devolved
authorities that were previously included in the UK and Europe Local and Regional Government division. The UK and Europe
Local and Regional Government division now incorporates public sector BPO operations previously included in the Global
Services division, together with Citizen Services previously included in the Central Government division; all public sector
BPO operations are therefore now brought together in this division. The AMEAA region is now reported as two separate
divisions - 'AsPac' (the Asia Pacific region, consisting principally of Serco's operations in Australia and New Zealand)
and the Middle East. Americas remains as a distinct regional division. The Global Services division now consists of BPO
operations only in the private sector.
The Group has simplified its reporting by ending the sharing of Income Statement reporting of certain contracts between two
segments. This shared reporting of contracts occurred predominantly between the AsPac and UK segments, with these
contracts now being solely reported within the segment that delivers the contract to the end customer. Going forward,
eliminating the shared Income Statement reporting of such contracts will increase the transparency and clarity of our
segmental performance reporting. The prior year comparative segmental information has been restated to reflect these
changes.
The Group's new reportable operating segments reflecting the information reported to the Board in 2015 under IFRS 8
Operating Segments are:
Reportable segments Operating segments
UK Central Government Frontline services for sectors including Defence, Justice & Immigration and Transport delivered to UK Government;
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, Healthcare 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 Healthcare in the Middle East region;
Global Services BPO services for private sector customers predominantly in the UK, India and North America; and
Corporate Central and head office costs
3. Segmental Information (continued)
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 Revenue2014 £m Non-current assets*2014 £m Revenue2013 £m Non-current assets*2013 £m
United Kingdom 1,917.8 485.2 2,071.5 784.1
United States 660.4 337.5 706.5 423.7
Australia 657.0 140.3 833.0 167.0
Middle East 267.2 13.6 285.4 14.6
Other countries 452.6 308.7 387.8 391.9
Total 3,955.0 1,285.3 4,284.2 1,781.3
1,781.3
*Non-current assets exclude financial instruments, deferred tax assets and loans to joint ventures and includes assets of
£405.4m (2013: £nil) reclassified as held for sale.
Revenues from external customers are attributed to individual countries on the basis of the location of the customer.
The following is an analysis of the Group's revenue, results, assets and liabilities by reportable segment:
Year ended 31 December 2014 CG£m LRG£m Americas£m AsPac£m Middle Global Services£m Corporate£m Total£m
East£m
Revenue 961.4 959.8 708.1 706.0 260.4 359.3 - 3,955.0
Result
Trading (loss)/profit* (242.8) (90.4) 16.5 (201.6) (0.2) (23.4) (90.2) (632.1)
Amortisation and impairment of intangibles arising on acquisition (0.1) (7.2) (2.3) (8.6) - (5.5) - (23.7)
Operating (loss)/profit before exceptional items (242.9) (97.6) 14.2 (210.2) (0.2) (28.9) (90.2) (655.8)
Exceptional (loss)/profit on disposal of subsidiaries and operations 1.9 0.4 - - - (3.1) (4.6) (5.4)
Other exceptional operating items (42.7) (95.9) (101.7) (41.3) (1.7) (332.7) (40.1) (656.1)
Operating loss (283.7) (193.1) (87.5) (251.5) (1.9) (364.7) (134.9) (1,317.3)
Investment revenue 6.2
Finance costs (42.9)
Loss before tax (1,354.0)
Tax credit 6.9
Loss for the year (1,347.1)
*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 99.7 394.5 178.9 1,935.3
Total segment assets 128.1 436.9 459.1 239.3 100.1 394.5 178.9 1,936.9
Unallocated assets 287.0
Consolidated total assets 2,223.9
Segment liabilities
Segment liabilities 146.1 247.5 62.0 99.2 55.2 29.3 93.3 732.6
Unallocated liabilities 1,557.5
Consolidated total liabilities 2,290.1
3. Segmental Information (continued)
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