REG - SIG PLC - Full Year Results <Origin Href="QuoteRef">SHI.L</Origin> - Part 2
12/03/2015 07:01
- Part 2: For the preceding part double click ID:nRSL2230Ha
* Inter-segment sales are charged at the
prevailing market rates.
2. Revenue and segmental information (continued)
(a) Segmental results (continued)
Balance sheet
2014 2014 2014 2013 2013 2013
UK and Ireland Mainland Europe Total UK and Ireland Mainland Europe Total
£m £m £m £m £m £m
Assets
Segment assets 666.4 645.6 1,312.0 638.3 694.7 1,333.0
Unallocated assets:
Derivative financial instruments 33.9 29.7
Deferred consideration 1.5 -
Cash and cash equivalents 25.8 33.3
Deferred tax assets 9.6 0.8
Other assets 1.5 2.0
Consolidated total assets 1,384.3 1,398.8
Liabilities
Segment liabilities 283.9 165.4 449.3 260.8 180.2 441.0
Unallocated liabilities:
Private placement notes 254.3 252.5
Derivative financial instruments 1.1 2.1
Other liabilities 15.3 10.1
Consolidated total liabilities 720.0 705.7
Other segment information
Capital expenditure on:
Property, plant and equipment 16.5 14.8 31.3 19.5 13.4 32.9
Computer software 10.1 0.3 10.4 9.6 0.4 10.0
Goodwill and intangible assets (excluding computer software) 23.1 8.5 31.6 14.5 - 14.5
Non-cash expenditure:
Depreciation 11.4 9.8 21.2 8.5 13.3 21.8
Impairment of property, plant and equipment and computer software 6.1 - 6.1 0.2 11.5 11.7
Amortisation of acquired intangibles and computer software 10.8 11.6 22.4 10.2 12.3 22.5
Impairment of goodwill and intangibles (excluding computer software) 3.3 - 3.3 2.0 21.5 23.5
2. Revenue and segmental information (continued)
(b) Revenue by product group
The Group focuses its activities into three product sectors: Insulation and
Energy Management; Exteriors; and Interiors.
The following table provides an analysis of Group sales by type of product:
2014 2013
£m £m
Insulation and Energy Management 1,195.0 1,181.1
Exteriors 807.6 754.9
Interiors 600.3 603.7
Total continuing 2,602.9 2,539.7
Sales attributable to businesses divested in 2014 31.0 180.1
Total 2,633.9 2,719.8
(c) Geographic information
The Group's revenue from external customers and its non-current assets
(including property, plant and equipment, goodwill and intangible assets but
excluding deferred tax, deferred consideration and derivative financial
instruments) by geographical location are as follows:
2014 2013
Country Revenue Non-current assets Revenue Non-current assets
£m £m £m £m
United Kingdom 1,265.2 323.2 1,134.8 308.4
Ireland 71.0 0.8 65.5 0.9
France 586.1 205.7 622.4 223.9
Germany and Austria 412.2 17.8 437.5 16.5
Poland 112.0 16.8 124.7 18.4
Benelux* 156.4 31.7 154.8 30.5
Total continuing 2,602.9 596.0 2,539.7 598.6
Attributable to businesses divested in 2014 31.0 - 180.1 3.9
Total 2,633.9 596.0 2,719.8 602.5
*Includes Air Trade Centre.
There is no material difference between the basis of preparation of the
information reported above and the accounting policies adopted by the Group.
3. Income tax
The income tax expense comprises: 2014 2013
£m £m
Current tax
UK corporation tax: - on profits/(losses) for the year - -
- adjustments in respect of previous years - 0.3
- 0.3
Overseas tax: - on profits/(losses) for the year 14.7 15.7
- adjustments in respect of previous years 0.9 0.2
Total current tax 15.6 16.2
Deferred tax
Current year 3.4 (0.9)
Adjustments in respect of previous years (15.1) 0.2
Deferred tax charge in respect of pension schemes* 0.7 0.2
Effect of change in rate (0.1) 0.7
Total deferred tax (11.1) 0.2
Total income tax expense 4.5 16.4
* Includes a credit of £0.1m in respect of the change in rate.
3. Income tax (continued)
The total tax charge for the year differs from that resulting from applying
the standard rate of corporate tax in the UK at 31 December 2014 of 21.0% (31
December 2013: 23.0%). The differences are explained in the following
reconciliation:
2014 2013
£m % £m %
Profit on ordinary activities before tax 39.0 2.1
Tax at 21.0% (2013: 23.0%) thereon 8.2 21.0 0.5 23.0
Factors affecting the income tax expense for the year:
- non-deductible and non-taxable items 6.2 15.9 1.6 76.2
- impairment charges not deductible for tax - - 9.5 452.4
- losses not recognised 0.4 1.0 0.1 4.8
- losses utilised not previously recognised (0.1) (0.3) (1.7) (81.0)
- other adjustments in respect of previous years (14.2) (36.4) 0.7 33.3
- effect of overseas tax rates 4.2 10.8 5.0 239.0
- effect of change in rate on deferred tax (0.2) (0.5) 0.7 33.3
Total income tax expense 4.5 11.5 16.4 781.0
The effective tax rate for the Group on the total profit before tax of £39.0m
is 11.5% (2013: 781.0%).
The effective tax charge for the Group on profit before tax before
amortisation of acquired intangibles, goodwill impairment charges,
restructuring costs, other one-off items, profits and losses arising on the
sale of businesses and associated impairment charges, trading profits and
losses associated with disposed businesses, unwinding of provision discounting
and net losses on derivative financial instruments of £98.1m is 28.1% (2013:
29.6%), which comprises a tax charge of 27.3% (2013: 29.1%) in respect of
current year profits and a tax charge of 0.8% (2013: 0.5%) in respect of prior
years.
The following factors will affect the Group's future total tax charge as a
percentage of underlying profits:
- the mix of profits between the UK and overseas; in particular,
France/Germany/Belgium/Netherlands (corporate tax rates greater than 20%) and
Ireland/Poland (corporate tax rates less than 20%). If the proportion of
profits from these jurisdictions changes, this could result in a higher or
lower Group tax charge;
- the impact of non-deductible expenditure and non-taxable income;
- the agreement of open tax computations with the respective tax
authorities; and
- the recognition or utilisation (with a corresponding reduction in cash
tax payments) of unrecognised deferred tax assets.
A deferred tax asset of £14.9m was recognised in the year in respect of
previously unrecognised UK excess non-trading losses incurred in 2008.
In addition to the amounts charged to the Consolidated Income Statement, the
following amounts in relation to taxes have been recognised in the
Consolidated Statement of Comprehensive Income with the exception of deferred
tax on share options which has been recognised in the Consolidated Statement
of Changes in Equity.
2014 2013
£m £m
Deferred tax movement associated with remeasurement of defined benefit liabilities* 1.7 (2.0)
Deferred tax on share options 0.5 0.1
Tax (charge)/credit on exchange and fair value movements arising on borrowings and derivative financial instruments (1.9) 0.4
Effect of change in rate on deferred tax* (0.1) (0.9)
Total 0.2 (2.4)
*These items will not subsequently be reclassified to the Consolidated Income
Statement.
4. Earnings per share
The calculations of earnings per share are based on the following profits/(losses) and numbers of shares:
Basic and diluted
2014 2013
£m £m
Profit/(loss) after tax 34.5 (14.3)
Non-controlling interests (1.5) (0.7)
33.0 (15.0)
Basic and diluted before Other items
2014 2013
£m £m
Profit/(loss) after tax 34.5 (14.3)
Non-controlling interests (1.5) (0.7)
Other items:
Amortisation of acquired intangibles 19.6 20.6
Profits and losses arising on the sale of businesses and associated impairment charges (Note 8) 14.0 42.8
Net operating losses attributable to businesses divested in 2014 6.7 1.8
Restructuring costs 9.2 18.0
Other one-off items 7.5 0.7
Goodwill impairment charge - 2.0
Net fair value losses on derivative financial instruments 1.9 1.9
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