REG - SIG PLC - SIG plc Half Year Results <Origin Href="QuoteRef">SHI.L</Origin> - Part 4
08/08/2017 07:07
- Part 4: For the preceding part double click ID:nRSH3384Nc
b) Post-tax Return on Capital Employed ("ROCE") - rolling 12 months
Unaudited twelve months ended 30 June 2017 Unaudited twelve months ended 30 June 2016 Audited year ended 31 December 2016
Note £m £m £m
Operating (loss)/profit (139.2) 78.3 (91.0)
Income tax expense 4 (7.4) (16.6) (12.3)
Operating (loss)/profit after tax (146.6) 61.7 (103.3)
Unaudited twelve months ended 30 June 2017 Unaudited twelve months ended 30 June 2016 Audited year ended 31 December 2016
Note £m £m £m
Operating (loss)/profit (139.2) 78.3 (91.0)
Amortisation of acquired intangibles 7 9.9 10.9 10.3
Impairment charges 7 119.7 - 110.6
Profits and losses on agreed sale or closure of non-core businesses and associated impairment charges 3 70.5 - 40.1
Net operating losses attributable to businesses identified as non-core 3 6.5 - 1.5
Net restructuring costs 3 14.3 7.3 13.3
Acquisition expenses and contingent consideration 3 (7.5) 14.6 (4.6)
Defined benefit pension scheme curtailment loss 3 - 0.9 0.9
Other one-off items 3 4.0 (4.3) 5.9
Underlying operating profit 78.2 107.7 87.0
Income tax expense (7.4) (16.6) (12.3)
Tax credit associated with Other items (9.7) (3.6) (6.5)
Underlying operating profit after tax 61.1 87.5 68.2
Notes to the Condensed Interim Financial Statements 17. Non-statutory information (Continued)
b) Post-tax Return on Capital Employed ("ROCE") - rolling 12 months (Continued)
Unaudited twelve months ended 30 June 2017 Unaudited twelve months ended 30 June 2016 Audited year ended 31 December 2016
Note £m £m £m
Opening reported net assets 684.5 628.2 649.6
Opening reported net debt 8 232.8 195.4 235.9
Opening capital employed 917.3 823.6 885.5
Computer software impairment charges* (14.7) (14.7) (14.7)
Goodwill and intangible impairment charges* (110.6) (110.6) (110.6)
Profits and losses on agreed sale or closure of non-core businesses and associated impairment charges* (70.5) (70.5) (70.5)
Adjusted opening capital employed 721.5 627.8 689.7
Year end reported net assets 539.6 649.6 n/a
Year end reported net debt 8 259.9 235.9 n/a
Year end capital employed 799.5 885.5 n/a
Computer software impairment charges* 7 (6.8) (14.7) n/a
Goodwill and intangible impairment charges* 3 - (110.6) n/a
Profits and losses on agreed sale or closure of non-core businesses and associated impairment charges* 3 (30.4) (70.5) n/a
Adjusted year end capital employed 762.3 689.7 n/a
Closing reported net assets 523.4 684.5 539.6
Closing reported net debt 8 166.5 232.8 259.9
Closing capital employed 689.9 917.3 799.5
Computer software impairment charges* - (14.7) (6.8)
Goodwill and intangible impairment charges* - (110.6) -
Profits and losses on agreed sale or closure of non-core businesses and associated impairment charges* - (70.5) (30.4)
Adjusted closing capital employed 689.9 721.5 762.3
Average capital employed 802.2 875.5 842.5
Adjusted average capital employed* 724.6 679.7 726.0
* Capital employed has been adjusted to take into account the normalised impact of the goodwill and intangible impairment charges, the profits and losses on agreed sale or closure of non-core businesses and associated impairment charges and computer software impairment charges.
Unaudited twelve months ended 30 June 2017 Unaudited twelve months ended 30 June 2016 Audited year ended 31 December 2016
Unadjusted ROCE (operating profit after tax to average capital employed) (18.3)% 7.0% (12.3)%
ROCE (underlying operating profit after tax to adjusted average capital employed) 8.4% 12.9% 9.4%
Notes to the Condensed Interim Financial Statements 17. Non-statutory information (c) Underlying profit before tax excluding property profits
Unaudited six months ended 30 June 2017 Unaudited six months ended 30 June 2016 Audited year ended 31 December 2016
Note £m £m £m
(Loss)/profit before tax (10.7) 38.4 (106.3)
Amortisation of acquired intangibles 3 4.7 5.1 10.3
Impairment charges 3 9.1 - 110.6
Profits and losses on agreed sale or closure of non-core businesses and associated impairment charges 3 30.4 - 40.1
Net operating losses attributable to businesses identified as non-core 3 5.2 0.2 1.5
Net restructuring costs 3 3.4 2.4 13.3
Acquisition expenses and contingent consideration 3 0.5 3.4 (4.6)
Defined benefit pension scheme curtailment loss 3 - 0.9 0.9
Other one-off items 3 (5.4) (3.5) 5.9
Net fair value losses on derivative financial instruments 3 0.8 0.9 1.9
Unwinding of provision discounting 3 0.3 0.1 (0.4)
Underlying profit before tax 38.3 47.9 73.2
Underlying property profits (8.2) (2.5) (2.5)
Underlying profit before tax excluding property profits 30.1 45.4 70.7
(d) Working capital to sales ratio
Unaudited twelve months ended 30 June 2017 Unaudited twelve months ended 30 June 2016 Audited year ended 31 December 2016
£m £m £m
Current:
Inventories 258.7 263.3 250.6
Trade and other receivables 548.3 573.4 516.1
Trade and other payables (562.5) (517.1) (440.6)
Provisions (14.3) (12.5) (14.5)
Non-current:
Other payables (3.9) (5.1) (5.5)
Provisions (18.4) (29.8) (22.4)
Reported working capital 207.9 272.2 283.7
Working capital for non-core businesses (14.0) (42.3) (29.0)
Foreign exchange adjustment* (3.1) 6.2 1.7
Adjusted working capital 190.8 236.1 256.4
* Working capital is translated at average rather than period end rates.
Unaudited twelve months ended 30 June 2017 Unaudited twelve months ended 30 June 2016 Audited year ended 31 December 2016
Note £m £m £m
Reported revenue 2 2,909.2 2,698.0 2,845.2
Sales attributable to businesses identified as non-core (184.7) (222.5) (229.7)
Pre-acquisition revenue of the current year acquisitions from the beginning of the period to the acquisition dates - 58.1 4.9
Foreign exchange adjustment 6.1 183.2 70.9
Adjusted revenue 2,730.6 2,716.8 2,691.3
Unaudited twelve months ended 30 June 2017 Unaudited twelve months ended 30 June 2016 Audited year ended 31 December 2016
Reported working capital to reported revenue 7.1% 10.1% 10.0%
Like-for-like working capital to sales ratio (adjusted working capital to adjusted revenue) 7.0% 8.7% 9.5%
Notes to the Condensed Interim Financial Statements 17. Non-statutory information
e) Net capital expenditure
Net maintenance capital expenditure Unaudited six months ended 30 June 2017 Unaudited six months ended 30 June 2016 Audited year ended 31 December 2016
Note £m £m £m
Depreciation 7 (11.3) (13.1) (26.0)
Amortisation of computer software 7 (2.1) (1.7) (3.5)
Proceeds from sale of property, plant and equipment 28.7 25.1 39.5
Less:
One-off sale of property, plant and equipment (24.0) (22.9) (33.6)
Net maintenance capital expenditure (8.7) (12.6) (23.6)
Investment capital expenditure Unaudited six months ended 30 June 2017 Unaudited six months ended 30 June 2016 Audited year ended 31 December 2016
£m £m £m
Property, plant and equipment additions (11.1) (17.3) (33.7)
Computer software additions (2.4) (2.7) (6.2)
Proceeds from sale of property, plant and equipment 28.7 25.1 39.5
Less:
Net maintenance capital expenditure 8.7 12.6 23.6
One-off sale of property, plant and equipment (24.0) (22.9) (33.6)
Investment capital expenditure (0.1) (5.2) (10.4)
Where capital expenditure is equal to or less than depreciation (including amortisation of computer software), all such capital expenditure is assumed to be maintenance capital expenditure. To the extent that net capital expenditure exceeds depreciation, the balance is considered to be investment capital expenditure.
f) Cash inflow from trading
Unaudited six months ended 30 June 2017 Unaudited six months ended 30 June 2016 Audited year ended 31 December 2016
Note £m £m £m
Cash generated from operating activities 96.3 60.2 75.8
Add back:
Working capital movements 7 (55.0) (0.3) 23.1
Cash inflow from trading 41.3 59.9 98.9
Notes to the Condensed Interim Financial Statements 17. Non-statutory information
g) Like-for-like sales
Like-for-like sales is calculated on a constant currency basis, and represents the growth in the Group's sales per day excluding any acquisitions or disposals completed or agreed in the current and prior year. Sales are not adjusted for organic branch openings and closures.
SIG Distribution SIG Exteriors Offsite Construction Other* UK Ireland UK & Ireland France Germany Poland Benelux SIG Air Handling Mainland Europe Group
£m £m £m £m £m £m £m £m £m £m £m £m £m £m
Total revenue for period to 30 June 2017 399.6 229.4 14.5 26.0 669.5 46.0 715.5 324.3 208.9 63.6 51.4 75.5 723.7 1,439.2
Revenue attributable to non-core businesses - (29.0) (1.3) (26.0) (56.3) - (56.3) - (7.5) - - - (7.5) (63.8)
Continuing revenue for period to 30 June 2017 399.6 200.4 13.2 - 613.2 46.0 659.2 324.3 201.4 63.6 51.4 75.5 716.2 1,375.4
Total revenue for period to 30 June 2016 389.7 230.1 14.3 64.9 699.0 39.9 738.9 285.0 193.4 51.7 48.9 57.3 636.3 1,375.2
Revenue attributable to non-core businesses - (30.4) (0.7) (64.9) (96.0) - (96.0) - (12.8) - - - (12.8) (108.8)
Continuing revenue for period to 30 June 2016 389.7 199.7 13.6 - 603.0 39.9 642.9 285.0 180.6 51.7 48.9 57.3 623.5 1,266.4
% change year on year:
Continuing revenue 2.5% 0.4% (2.9)% n/a 1.7% 15.3% 2.5% 13.8% 11.5% 23.0% 5.1% 31.8% 14.9% 8.6%
Impact of currency - - - n/a - (10.3)% (0.6)% (9.9)% (9.7)% (13.4)% (9.1)% (11.5)% (10.3)% (5.4)%
Impact of acquisitions (0.9)% (0.1)% - n/a (0.6)% (0.4)% (0.6)% 0.5% - - - (7.4)% (0.4)% (0.5)%
Impact of working days - - - n/a - - - 0.6% - - (0.8)% (0.9)% 0.1% 0.1%
Like-for-like sales 1.6% 0.3% (2.9)% n/a 1.1% 4.6% 1.3% 5.0% 1.8% 9.6% (4.8)% 12.0% 4.3% 2.8%
* Other represents revenue from Carpet & Flooring, Middle East and Drywall Qatar (Note 6).
Notes to the Condensed Interim Financial Statements 17. Non-statutory information
h) Gross margin
Gross margin is the ratio of gross profit to revenue.
SIG Distribution SIG Exteriors Offsite Construction Other* UK Ireland UK & Ireland France Germany Poland Benelux SIG Air Handling Mainland Europe Group
% % % % % % % % % % % % % %
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