REG - Serco Group PLC - Serco Group plc 2016 Full Year Results <Origin Href="QuoteRef">SRP.L</Origin> - Part 6
22/02/2017 07:08
- Part 6: For the preceding part double click ID:nRSV4908Xe
the contract
period.
Scheme assets at fair value Contract Non contract specific Total
specific 2015£m 2015£m
2015£m
Equities 2.8 39.1 41.9
Bonds except LDI 0.3 - 0.3
Liability driven investments (LDI) - 1,144.4 1,144.4
Gilts - 68.1 68.1
Property 0.6 - 0.6
Cash and other 0.9 30.7 31.6
Annuity policies - 22.0 22.0
Fair value of scheme assets 4.6 1,304.3 1,308.9
Present value of scheme liabilities (7.7) (1,188.7) (1,196.4)
Net amount recognised (3.1) 115.6 112.5
Franchise adjustment* 1.9 - 1.9
Members' share of deficit 1.2 - 1.2
Net retirement benefit asset - 115.6 115.6
Net pension liability - (11.5) (11.5)
Net pension asset - 127.1 127.1
Deferred tax liabilities - (20.8) (20.8)
Net retirement benefit asset (after tax) - 94.8 94.8
* The franchise adjustment represents the amount of scheme deficit that is expected to be funded outside the contract
period.
Key pension assumptions:
Main assumptions 2016 % 2015 %
Rate of salary increases 2.80 2.80
Rate of increase in pensions in payment 2.30 (CPI) and 3.30 (RPI) 2.00 (CPI) and 3.00 (RPI)
Rate of increase in deferred pensions 2.30 (CPI) and 3.30 (RPI) 2.10 (CPI) and 3.10 (RPI)
Inflation assumption 2.30 (CPI) and 3.30 (RPI) 2.10 (CPI) and 3.10 (RPI)
Discount rate 2.70 3.80
Post retirement mortality 2016 years 2015 years
Current pensioners at 65 - male 22.5 22.6
Current pensioners at 65 - female 25.0 25.1
Future pensioners at 65 - male 24.2 24.4
Future pensioners at 65 - female 26.9 27.1
Pension assumption sensitivities:
2016£m 2015£m
Discount rate - 0.5% increase (116.5) (98.6)
Discount rate - 0.5% decrease 132.5 111.3
Inflation - 0.5% increase 106.1 97.4
Inflation - 0.5% decrease (87.6) (88.2)
Rate of salary increase - 0.5% increase 7.8 10.4
Rate of salary increase - 0.5% decrease (7.4) (10.0)
Mortality - one year age rating 44.2 28.7
16. Notes to the consolidated cash flow statement
Year ended 31 December 2016 Before exceptional items £m 2016 Exceptional items £m 2016 Total £m 2015 Before exceptional items(restated) £m 2015 Exceptional items £m 2015 Total(restated) £m
Operating profit / (loss) for the year -continuing operations* 98.5 (56.3) 42.2 106.1 (109.9) (3.8)
Operating (loss) / profit for the year -discontinued operations (3.3) (14.2) (17.5) 26.5 (77.6) (51.1)
Operating profit / (loss) for the year* 95.2 (70.5) 24.7 132.6 (187.5) (54.9)
Adjustments for:
Share of profits in joint ventures and associates (33.4) - (33.4) (37.0) - (37.0)
Share based payment expense 9.7 - 9.7 9.8 - 9.8
Exceptional impairment of goodwill - 17.8 17.8 - 153.4 153.4
Exceptional impairment of property, plant and equipment - (0.8) (0.8) - 0.8 0.8
Exceptional impairment of intangible assets - 0.3 0.3 - (0.3) (0.3)
Impairment and write down of intangible assets 0.7 - 0.7 11.5 - 11.5
Impairment of property, plant and equipment 0.7 - 0.7 2.1 - 2.1
Depreciation of property, plant and equipment 24.8 - 24.8 28.9 - 28.9
Amortisation of intangible assets 26.2 - 26.2 29.0 - 29.0
Exceptional profit on disposal of subsidiaries and operations - (0.1) (0.1) - (2.8) (2.8)
Loss on disposal of property, plant and equipment 0.4 - 0.4 0.1 - 0.1
Loss on disposal of intangible assets 0.8 - 0.8 1.5 - 1.5
Non cash R&D expenditure offset against intangible assets 0.2 - 0.2 0.8 - 0.8
Decrease in provisions (118.4) (1.1) (119.5) (116.0) (9.5) (125.5)
Other non-cash movements* 0.4 - 0.4 (0.1) - (0.1)
Total non-cash items (54.5) 16.1 (38.4) (32.4) 141.6 109.2
Operating cash inflow / (outflow) before movements in working capital 7.3 (54.4) (47.1) 63.2 (45.9) 17.3
Decrease in inventories 1.3 - 1.3 5.6 - 5.6
Decrease in receivables 59.0 13.9 72.9 20.6 - 20.6
Decrease in payables (84.0) 0.6 (83.4) (48.8) (10.7) (59.5)
Movements in working capital (23.7) 14.5 (9.2) (22.6) (10.7) (33.3)
Cash generated by operations* (16.4) (39.9) (56.3) 40.6 (56.6) (16.0)
Tax paid (5.6) - (5.6) (2.7) - (2.7)
Non cash R&D expenditure (0.4) - (0.4) (0.7) - (0.7)
Net cash (outflow) / inflow from operating activities* (22.4) (39.9) (62.3) 37.2 (56.6) (19.4)
* Operating Profit has been restated following the change in accounting policy to include foreign exchange movements
on investment and financing arrangements in net finance costs.
17. Related party transactions
Transactions between the Company and its wholly owned subsidiaries, which are related parties, have been eliminated on
consolidation and are not disclosed in this note. Transactions between the Group and its joint venture undertakings and
associates are disclosed below.
During the year, Group companies entered into the following transactions with joint ventures and associates:
Transactions 2016 £m Current outstanding at 31 December 2016 £m Non current outstanding at 31 December 2016 £m
Sale of goods and services
Joint ventures 0.5 0.1 -
Associates 6.2 0.5 -
Other
Dividends received - joint ventures 20.4 - -
Dividends received - associates 19.6 - -
Receivable from consortium for tax - joint ventures 3.2 7.7 -
Total 49.9 8.3 -
Joint venture receivable and loan amounts outstanding have arisen from transactions undertaken during the general course of
trading, are unsecured, and will be settled in cash. Interest arising on loans is based on LIBOR, or its equivalent, with
an appropriate margin. No guarantee has been given or received. The only loan amounts owed by joint ventures or associates
related to a single entity which have been provided for in full.
Transactions 2015 £m Current outstanding at 31 December 2015 £m Non current outstanding at 31 December 2015 £m
Sale of goods and services
Joint ventures 6.1 0.6 -
Other
Dividends received - joint ventures 32.5 - -
Loans and other receivables - joint ventures - 0.8 7.2
Receivable from consortium for tax - joint ventures 4.2 9.3 -
Total 42.8 10.7 7.2
This information is provided by RNS
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