REG - Spectris PLC - 2015 Half Year Results <Origin Href="QuoteRef">SXS.L</Origin> - Part 2
30/07/2015 07:03
- Part 2: For the preceding part double click ID:nRSd4984Ua
2,3 49.4 58.2 168.3
Profit on disposal of businesses - - 2.4
Financial income 4 2.8 3.3 6.3
Finance costs 4 (3.0) (2.9) (5.9)
Profit before tax 49.2 58.6 171.1
Taxation - UK 5 (1.1) (1.4) (2.0)
Taxation - Overseas 5 (7.7) (10.4) (34.0)
Profit after tax for the period from continuing operations attributable to owners of the Parent Company 40.4 46.8 135.1
Basic earnings per share (pence) 6 33.9p 39.4p 113.7p
Diluted earnings per share (pence) 6 33.9p 39.3p 113.4p
Dividends proposed for the period (per share) 7 17.3p 16.0p 46.5p
Dividends paid during the period (per share) 7 30.5p 28.0p 44.0p
Spectris uses adjusted figures as key performance measures in addition to
those reported under adopted IFRS. Reconciliations showing how the adjusted
performance measures are derived from those reported under adopted IFRS are
set out in Note 2.
CONDENSED Consolidated statement OF COMPREHENSIVE INCOME
For the six months ended 30 June 2015
2015 2014 2014
Half year Half year Full year
£m £m £m
Profit for the period attributable to owners of the Parent Company 40.4 46.8 135.1
Other comprehensive income:
Items that will not be reclassified to the Consolidated Income Statement:
Re-measurement of net defined benefit liability, net of foreign exchange (5.5) (0.7) (5.6)
Tax on items above 1.3 0.3 1.5
(4.2) (0.4) (4.1)
Items that are or may be reclassified subsequently to the Consolidated Income Statement:
Net gain/(loss) on effective portion of changes in fair value of forward exchange contracts 2.7 (2.1) (3.3)
Foreign exchange movements on translation of overseas operations (36.2) (26.7) (5.5)
Tax on items above (0.5) 0.4 0.5
(34.0) (28.4) (8.3)
Total comprehensive income for the period attributable to owners of the Parent Company 2.2 18.0 122.7
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2015
Share capital Share premium Retained earnings Translation reserve Hedging reserve Merger reserve Capital redemption reserve Total equity
£m £m £m £m £m £m £m £m
Balance at 1 January 2015 6.2 231.4 643.1 34.9 (3.0) 3.1 0.3 916.0
Profit for the period - - 40.4 - - - - 40.4
Other comprehensive income:
Net loss on effective portion of changes in fair value of forward exchange contracts, net of tax - - - - 2.2 - - 2.2
Foreign exchange movements on translation of overseas operations - - - (36.2) - - - (36.2)
Re-measurement of net defined benefit liability, net of foreign exchange and tax - - (4.2) - - - - (4.2)
Total comprehensive income for the period - - 36.2 (36.2) 2.2 - - 2.2
Transactions with owners recorded directly in equity: - - - - - - - -
Equity dividends paid by the Company - - (36.3) - - - - (36.3)
Share-based payments, net of tax - - 2.1 - - - - 2.1
Share options exercised from own shares (treasury) purchased - - 0.2 - - - - 0.2
Balance at 30 June 2015 6.2 231.4 645.3 (1.3) (0.8) 3.1 0.3 884.2
Share capital Share premium Retained earnings Translation reserve Hedging reserve Merger reserve Capital redemption reserve Total equity
For the six months ended 30 June 2014 £m £m £m £m £m £m £m £m
Balance at 1 January 2014 6.2 231.4 562.9 40.4 (0.2) 3.1 0.3 844.1
Profit for the period - - 46.8 - - - - 46.8
Other comprehensive income:
Net loss on effective portion of changes in fair value of forward exchange contracts, net of tax - - - - (1.7) - - (1.7)
Foreign exchange movements on translation of overseas operations - - - (26.7) - - - (26.7)
Re-measurement of net defined benefit liability, net of foreign exchange and tax - - (0.4) - - - - (0.4)
Total comprehensive income for the period - - 46.4 (26.7) (1.7) - - 18.0
Transactions with owners recorded directly in equity:
Equity dividends paid by the Company - - (33.3) - - - - (33.3)
Share-based payments, net of tax - - 1.8 - - - - 1.8
Balance at 30 June 2014 6.2 231.4 577.8 13.7 (1.9) 3.1 0.3 830.6
Share capital Share premium Retained earnings Translation reserve Hedging reserve Merger reserve Capital redemption reserve Total equity
For the year ended 31 December 2014 £m £m £m £m £m £m £m £m
Balance at 1 January 2014 6.2 231.4 562.9 40.4 (0.2) 3.1 0.3 844.1
Profit for the year - - 135.1 - - - - 135.1
Other comprehensive income:
Net loss on effective portion of changes in fair value of forward exchange contracts, net of tax - - - - (2.8) - - (2.8)
Foreign exchange movements on translation of overseas operations - - - (5.5) - - - (5.5)
Re-measurement of net defined benefit liability, net of foreign exchange and tax - - (4.1) - - - - (4.1)
Total comprehensive income for the period - - 131.0 (5.5) (2.8) - - 122.7
Transactions with owners recorded directly in equity:
Equity dividends paid by the Company - - (52.3) - - - - (52.3)
Share-based payments, net of tax - - 1.2 - - - - 1.2
Share options exercised from own shares (treasury) purchased - - 0.3 - - - - 0.3
Balance at 31 December 2014 6.2 231.4 643.1 34.9 (3.0) 3.1 0.3 916.0
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2015
2015 2014 2014
Half year Half year Full year
£m £m £m
ASSETS
Non-current assets
Intangible assets:
Goodwill 563.8 509.9 569.4
Other intangible assets 203.5 168.0 208.5
767.3 677.9 777.9
Property, plant and equipment 157.6 155.2 162.5
Deferred tax assets 18.3 17.0 18.3
Retirement benefit assets - 7.7 3.6
943.2 857.8 962.3
Current assets
Inventories 183.0 170.4 175.7
Taxation recoverable 0.8 1.9 1.1
Trade and other receivables 215.3 204.4 232.6
Derivative financial instruments 2.6 1.1 -
Cash and cash equivalents 32.4 26.5 34.8
434.1 404.3 444.2
Total assets 1,377.3 1,262.1 1,406.5
LIABILITIES
Current liabilities
Short-term borrowings (77.9) (1.0) (50.9)
Derivative financial instruments - - (0.3)
Trade and other payables (186.2) (185.1) (201.0)
Current tax liabilities (29.9) (27.6) (28.8)
Provisions (15.6) (20.2) (17.7)
(309.6) (233.9) (298.7)
Net current assets 124.5 170.4 145.5
Non-current liabilities
Medium- and long-term borrowings (103.2) (132.9) (109.5)
Other payables (20.4) (13.2) (21.6)
Retirement benefit obligations (19.9) (16.6) (17.6)
Deferred tax liabilities (40.0) (34.9) (43.1)
(183.5) (197.6) (191.8)
Total liabilities (493.1) (431.5) (490.5)
Net assets 884.2 830.6 916.0
EQUITY
Share capital 6.2 6.2 6.2
Share premium 231.4 231.4 231.4
Retained earnings 645.3 577.8 643.1
Translation reserve (1.3) 13.7 34.9
Hedging reserve (0.8) (1.9) (3.0)
Merger reserve 3.1 3.1 3.1
Capital redemption reserve 0.3 0.3 0.3
Total equity attributable to equity holders of the Parent Company 884.2 830.6 916.0
Total equity and liabilities 1,377.3 1,262.1 1,406.5
CONDENSED Consolidated statement OF cash flowS
For the six months ended 30 June 2015
2015 2014 2014
Half year Half year Full year
Note £m £m £m
Cash flows from operating activities
Profit after tax 40.4 46.8 135.1
Adjustments for:
Tax 5 8.8 11.8 36.0
Profit on disposal of businesses - - (2.4)
Finance costs 4 3.0 2.9 5.9
Financial income 4 (2.8) (3.3) (6.3)
Depreciation 9.7 8.9 18.2
Amortisation of intangible assets 18.9 12.8 29.4
Acquisition costs not yet paid - - 1.4
Profit on sale of property, plant and equipment - (0.1) (0.3)
Equity-settled share-based payment transactions 2.6 2.1 2.2
Operating profit before changes in working capital and provisions 80.6 81.9 219.2
Decrease/(increase) in trade and other receivables 12.5 7.6 (16.3)
Increase in inventories (14.6) (11.9) (8.1)
(Decrease)/increase in trade and other payables (9.1) (4.9) 3.9
Decrease in provisions and employee benefits (2.1) (0.9) (0.5)
Net income taxes paid (14.4) (20.2) (43.0)
Net cash flows generated from operating activities 52.9 51.6 155.2
Cash flows from investing activities
Purchase of property, plant and equipment and software (11.9) (12.3) (27.4)
Proceeds from sale of property, plant and equipment 0.2 0.1 2.4
Acquisition of businesses, net of cash acquired 9 (30.4) (10.6) (91.6)
Interest received 0.2 0.1 0.3
Net cash flows used in investing activities (41.9) (22.7) (116.3)
Cash flows from financing activities
Interest paid (2.4) (2.5) (6.6)
Dividends paid (36.3) (33.3) (52.3)
Proceeds from exercise of share options (treasury shares) 0.2 - 0.3
Proceeds from borrowings 19.3 - 20.8
Repayment of borrowings - (8.2) (8.2)
Net cash flows used in financing activities (19.2) (44.0) (46.0)
Net decrease in cash and cash equivalents (8.2) (15.1) (7.1)
Cash and cash equivalents at beginning of period 32.3 41.6 41.6
Effect of foreign exchange rate changes (2.4) (1.0) (2.2)
Cash and cash equivalents at end of period 21.7 25.5 32.3
2015 2014 2014
Half year Half year Full year
Reconciliation of changes in cash and cash equivalents to movements in net debt: £m £m £m
Net decrease in cash and cash equivalents (8.2) (15.1) (7.1)
Proceeds from borrowings (19.3) - (20.8)
Repayment of borrowings - 8.2 8.2
Effect of foreign exchange rate changes 4.4 3.6 (1.8)
Movement in net debt (23.1) (3.3) (21.5)
Net debt at start of period (125.6) (104.1) (104.1)
Net debt at end of period (148.7) (107.4) (125.6)
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. Basis of Preparation and Principal Accounting Policies
a) Basis of accounting
The Condensed Consolidated Interim Financial Statements of the Company for the
six months ended
30 June 2015 comprise the Company and its subsidiaries, together referred to
as the 'Group'. These Condensed Consolidated Interim Financial Statements are
presented in millions of Sterling rounded to the nearest one decimal place.
The Consolidated Financial Statements of the Group for the year ended 31
December 2014 are available upon request from the Company's registered office
at Heritage House, Church Road, Egham, Surrey TW20 9QD,and on the Company's
website at www.spectris.com.
These Condensed Consolidated Interim Financial Statements have been prepared
in accordance with the Disclosure and Transparency Rules of the Financial
Conduct Authority and with IAS 34, 'Interim Financial Reporting', as adopted
by the European Union. They do not include all of the information required for
full annual financial statements, and should be read in conjunction with the
Consolidated Financial Statements of the Group for the year ended 31 December
2014.
The Condensed Consolidated Interim Financial Statements for the six-month
period ended 30 June 2015 are unaudited but have been subject to an
independent review by the auditor. They do not constitute statutory financial
statements as defined in section 434 of the Companies Act 2006. The
comparative figures for the financial year ended 31 December 2014 are derived
from the Company's statutory accounts for that financial year. Those accounts
have been reported on by the Company's auditor and delivered to the Registrar
of Companies. The Report of the auditor was (i) unqualified, (ii) did not
include a reference to any matters to which the auditor drew attention by way
of emphasis without qualifying their report, and (iii) did not contain a
statement under section 498(2) or 498(3) of the Companies Act 2006.
The Group's financial risk management objectives and policies are consistent
with those disclosed in the Consolidated Financial Statements for the year
ended 31 December 2014.
These Condensed Consolidated Interim Financial Statements were approved by the
Board of Directors on 30 July 2015.
b) Going concern
Having made enquiries and reviewed the Group's plans and available financial
facilities, the Board has a reasonable expectation that the Group has adequate
resources to continue its operational existence for the foreseeable future.
For this reason, it continues to adopt the going concern basis in preparing
the Condensed Consolidated Interim Financial Statements. There are no key
sensitivities identified in relation to this conclusion.
c) Seasonality of operations
As in prior years, the Group's revenue and operating profits are expected to
be weighted towards the second half of the year.
d) New standards and interpretations not yet adopted
There are a number of new standards, amendments to standards and
interpretations that are not yet effective for the period ended 30 June 2015
and have, therefore, not been applied in preparing these Condensed
Consolidated Interim Financial Statements. IFRS 15 'Revenue from contracts
with customers' is effective for the 31 December 2018 year end. The adoption
of this standard is not expected to have a significant impact on the
Consolidated Income Statement or Consolidated Statement of Financial
Position.
e) Significant accounting judgements and estimates
The preparation of Interim Financial Statements in conformity with adopted
IFRS requires management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported amount of
assets and liabilities, income and expense. Actual results may differ from
these estimates. In preparing these Condensed Consolidated Interim 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 for
the year ended 31 December 2014.
The Directors have considered the facts and circumstances as at 30 June 2015
and concluded that there are no indicators of impairments that require an
impairment review to be undertaken on goodwill at the interim statement of
financial position date. The annual impairment review will be undertaken later
in 2015 consistent with the timing in previous years.
f) Principal accounting policies
The accounting policies applied by the Group in these Condensed Consolidated
Interim Financial Statements are the same as those applied by the Group in its
Consolidated Financial Statements for the year ended 31 December 2014.
2. Adjusted Performance Measures
Spectris plc uses adjusted figures as key performance measures in addition to
those reported under adopted IFRS, as management believe these measures enable
them to assess the underlying trading performance of the businesses. Adjusted
figures exclude certain non-operational items which management has defined as
amortisation and impairment of acquisition-related intangible assets,
acquisition-related costs and contingent consideration fair value adjustments,
acquisition-related fair value adjustments, profits or losses on termination
or disposal of businesses, unrealised changes in the fair value of financial
instruments, gains or losses on retranslation of short-term inter-company loan
balances, unwinding of the discount factor on deferred and contingent
consideration, related tax effects and other tax items which do not form part
of the underlying tax rate.
The adjusted performance measures are derived from the reported figures under
adopted IFRS as follows:
2015 2014 2014
Half year Half year Full year
Adjusted operating profit £m £m £m
Operating profit as reported under adopted IFRS 49.4 58.2 168.3
Net acquisition-related costs and fair value adjustments 1.4 0.8 3.9
Amortisation of acquisition-related intangible assets 16.6 11.1 25.9
Adjusted operating profit 67.4 70.1 198.1
2015
Materials Test and In-line Industrial Half year
Analysis Measurement Instrumentation Controls Total
Adjusted operating profit by segment - June 2015 £m £m £m £m £m
Operating profit as reported under adopted IFRS 9.7 12.9 12.5 14.3 49.4
Net acquisition-related costs and fair value adjustments 0.3 0.5 0.1 0.5 1.4
Amortisation of acquisition-related intangible assets 4.6 5.3 1.2 5.5 16.6
Adjusted operating profit: segment result 14.6 18.7 13.8 20.3 67.4
2014
Materials Test and In-line Industrial Half year
Analysis Measurement Instrumentation Controls Total
Adjusted operating profit by segment - 2014 June £m £m £m £m £m
Operating profit as reported under adopted IFRS 12.1 16.5 16.1 13.5 58.2
Net acquisition-related costs and fair value adjustments (0.8) - - 1.6 0.8
Amortisation of acquisition-related intangible assets 1.9 2.9 1.2 5.1 11.1
Adjusted operating profit: segment result 13.2 19.4 17.3 20.2 70.1
2014
Materials Test and In-line Industrial Full year
Analysis Measurement Instrumentation Controls Total
Adjusted operating profit by segment - December 2014 £m £m £m £m £m
Operating profit as reported under adopted IFRS 48.0 45.7 45.6 29.0 168.3
Net acquisition-related costs and fair value adjustments (2.3) 0.9 - 5.3 3.9
Amortisation of acquisition-related intangible assets 7.6 5.6 2.4 10.3 25.9
Adjusted operating profit: segment result 53.3 52.2 48.0 44.6 198.1
Net acquisition-related costs and fair value adjustments comprises of
acquisition costs of £1.0m (30 June 2014: £0.7m; 31 December 2014: £3.9m) that
have been recognised in the Condensed Consolidated Income Statement under IFRS
3 (Revised) 'Business Combinations', fair value adjustments to inventory of
£0.4m (30 June 2014: £nil: 31 December 2014: £0.6m) and other fair value
adjustments of £nil (30 June 2014: £0.1m; 31 December 2014: £0.6m credit).
Net acquisition-related costs and fair value adjustments are included within
administrative expenses. Acquisition-related costs have been excluded from
the adjusted operating profit and acquisition costs paid of £1.7m (30 June
2014: £0.7m; 31 December 2014: £2.5m) have been excluded from the adjusted
operating cash flow.
2015
Materials Test and In-line Industrial Half year
Analysis Measurement Instrumentation Controls Total
Return on sales by segment - June 2015 % % % % %
Using operating profit as reported under adopted IFRS 5.9 7.9 10.4 12.7 8.8
Using adjusted operating profit 8.8 11.4 11.4 18.0 12.0
2014
Materials Test and In-line Industrial Half year
Analysis Measurement Instrumentation Controls Total
Return on sales by segment - June 2014 % % % % %
Using operating profit as reported under adopted IFRS 8.0 10.3 13.1 12.7 10.8
Using adjusted operating profit 8.7 12.1 14.1 19.0 13.0
2014
Materials Test and In-line Industrial Full year
Analysis Measurement Instrumentation Controls Total
Return on sales by segment - December 2014 % % % % %
Using operating profit as reported under adopted IFRS 13.8 13.3 17.4 13.1 14.3
Using adjusted operating profit 15.3 15.2 18.4 20.2 16.9
2015 2014 2014
Half year Half year Full year
Reconciliation to adjusted profit before tax and adjusted operating profit £m £m £m
Profit before tax as reported under adopted IFRS 49.2 58.6 171.1
Add/(deduct):
Net acquisition-related costs and fair value adjustments 1.4 0.8 3.9
Amortisation of acquisition-related intangible assets 16.6 11.1 25.9
Profit on disposal of businesses - - (2.4)
Net gain on retranslation of short-term inter-company loan balances (2.6) (3.2) (6.0)
Unwinding of discount factor on deferred and contingent consideration 0.3 - -
Adjusted profit before tax 64.9 67.3 192.5
Adjusted net finance costs (see below) 2.5 2.8 5.6
Adjusted operating profit 67.4 70.1 198.1
2015 2014 2014
Half year Half year Full year
Adjusted net finance costs £m £m £m
Net finance (costs)/income as reported under adopted IFRS (0.2) 0.4 0.4
Net gain on retranslation of short-term inter-company loan balances (2.6) (3.2) (6.0)
Unwinding of discount factor on deferred and contingent consideration 0.3 - -
Adjusted net finance costs (2.5) (2.8) (5.6)
2015 2014 2014
Half year Half year Full year
Adjusted operating cash flow £m £m £m
Net cash from operating activities under adopted IFRS 52.9 51.6 155.2
Acquisition-related costs paid 1.7 0.7 2.5
Net income taxes paid 14.4 20.2 43.0
Purchase of property, plant and equipment and software (11.9) (12.3) (27.4)
Proceeds from sale of property, plant and equipment 0.2 0.1 2.4
Adjusted operating cash flow 57.3 60.3 175.7
2015 2014 2014
Half year Half year Full year
Adjusted earnings per share £m £m £m
Profit after tax as reported under adopted IFRS 40.4 46.8 135.1
Adjusted for:
Net acquisition-related costs and fair value adjustments 1.4 0.8 3.9
Amortisation of acquisition-related intangible assets 16.6 11.1 25.9
Profit on disposal of businesses - - (2.4)
Net gain on retranslation of short-term inter-company loan balances (2.6) (3.2) (6.0)
Unwinding of discount factor on deferred and contingent consideration 0.3 - -
Tax effect of the above and other non-recurring items (6.1) (4.0) (8.7)
Adjusted earnings 50.0 51.5 147.8
Weighted average number of shares outstanding (millions) 119.0 118.7 118.8
Adjusted earnings per share (pence) 42.0 43.4 124.4
2015 2014 2014
Half year Half year Full year
Adjusted diluted earnings per share (pence) £m £m £m
Diluted weighted average number of shares outstanding (millions) 119.3 119.1 119.1
Adjusted diluted earnings per share (pence) 41.9 43.2 124.1
Basic and diluted earnings per share in accordance with IAS 33 'Earnings Per
Share' are disclosed in note 6.
2015 2014 2014
Half year Half year Full year
Analysis of net debt for management purposes £m £m £m
Bank overdrafts 10.7 1.0 2.5
Bank loans - unsecured 170.4 132.9 157.9
Total borrowings 181.1 133.9 160.4
Cash balances (32.4) (26.5) (34.8)
Net debt 148.7 107.4 125.6
3. Operating Segments
The Group has four reportable segments, as described below, which are the
Group's strategic business units. These units offer different applications,
assist companies at various stages of the production cycle and are focussed
towards specific industries. These segments reflect the internal reporting
provided to the Chief Operating Decision Maker (considered to be the Board) on
a regular basis to assist in making decisions on capital allocation to each
segment and to assess performance. The segment results include an allocation
of head office expenses. The following summary describes the operations in
each of the Group's reportable segments.
· Materials Analysis provides products and services that enable customers
to determine structure, composition, quantity and quality of particles and
materials, during their research and product development processes, when
assessing materials before production or during the manufacturing process. The
operating companies in this segment are Malvern Instruments, PANalytical and
Particle Measuring Systems.
· Test and Measurement supplies test, measurement and analysis equipment,
software and services for product design optimisation, manufacturing control,
microseismic monitoring and environmental noise monitoring systems. The
operating companies in this segment are Brüel & Kjær Sound & Vibration, ESG
Solutions and HBM.
· In-line Instrumentation provides process analytical measurement, asset
monitoring and online controls as well as associated consumables and services
for both primary processing and the converting industries. The operating
companies in this segment are Brüel & Kjær Vibro, BTG Group, NDC Technologies
and Servomex.
· Industrial Controls provides products and solutions that measure,
monitor, control, inform, track and trace during the production process. The
operating companies in this segment are Microscan, Omega Engineering and Red
Lion Controls.
2015
Materials Test and In-line Industrial Half year
Analysis Measurement Instrumentation Controls Total
Information about reportable segments £m £m £m £m £m
Segment revenues 165.4 164.3 120.5 112.9 563.1
Inter-segment revenue 0.3 (0.1) - (0.1) 0.1
External revenue 165.7 164.2 120.5 112.8 563.2
Reportable segment profit for continuing operations 14.6 18.7 13.8 20.3 67.4
Net acquisition-related costs and fair value adjustments (0.3) (0.5) (0.1) (0.5) (1.4)
Amortisation of acquisition-related intangible assets (4.6) (5.3) (1.2) (5.5) (16.6)
Operating profit 9.7 12.9 12.5 14.3 49.4
Financial income* 2.8
Finance costs* (3.0)
Profit before tax 49.2
Tax* (8.8)
Profit after tax 40.4
2014
Materials Test and In-line Industrial Half year
Analysis Measurement Instrumentation Controls Total
£m £m £m £m £m
Segment revenues 150.8 159.9 122.8 106.7 540.2
Inter-segment revenue (0.1) (0.1) (0.1) (0.1) (0.4)
External revenue 150.7 159.8 122.7 106.6 539.8
Reportable segment profit for continuing operations 13.2 19.4 17.3 20.2 70.1
Net acquisition-related costs and fair value adjustments 0.8 - - (1.6) (0.8)
Amortisation of acquisition-related intangible assets (1.9) (2.9) (1.2) (5.1) (11.1)
Operating profit 12.1 16.5 16.1 13.5 58.2
Financial income* 3.3
Finance costs* (2.9)
Profit before tax 58.6
Tax* (11.8)
Profit after tax 46.8
2014
Materials Test and In-line Industrial Full year
Analysis Measurement Instrumentation Controls Total
£m £m £m £m £m
Segment revenues 348.7 343.1 261.7 220.8 1,174.3
Inter-segment revenue 0.1 (0.2) (0.3) (0.2) (0.6)
External revenue 348.8 342.9 261.4 220.6 1,173.7
Reportable segment profit for continuing operations 53.3 52.2 48.0 44.6 198.1
Net acquisition-related costs and fair value adjustments 2.3 (0.9) - (5.3) (3.9)
Amortisation of acquisition-related intangible assets (7.6) (5.6) (2.4) (10.3) (25.9)
Operating profit 48.0 45.7 45.6 29.0 168.3
Profit on disposal of businesses* 2.4
Financial income* 6.3
Finance costs* (5.9)
Profit before tax 171.1
Tax* (36.0)
Profit after tax 135.1
* Not allocated to reportable segments.
Reportable segment profit is consistent with that presented to the Chief
Operating Decision Maker. Inter-segment pricing is on an arm's length basis.
Segments are presented on the basis of actual inter-segment charges made. A
table of segmental assets and liabilities is not disclosed as there are no
material changes compared to 31 December 2014.
Geographical segments
The Group's operating segments are each located in several geographical
locations and sell on to external customers in all parts of the world.
No individual country amounts to more than 3% of turnover, other than those
noted below.
The following is an analysis of revenue by geographical destination:
2015 2014 2014
Half year Half year Full year
£m £m £m
UK 21.0 20.5 44.4
Germany 50.3 54.6 116.7
France 18.5 18.2 39.9
Rest of Europe 83.4 82.4 171.5
USA 176.8 159.4 344.2
Rest of North America 21.8 17.6 37.5
Japan 25.5 27.7 59.4
China 70.6 71.6 153.7
South Korea 16.7 14.7 33.6
Rest of Asia Pacific 45.9 39.3 96.6
Rest of the world 32.7 33.8 76.2
563.2 539.8 1,173.7
4. Financial Income and Finance Costs
2015 2014 2014
Half year Half year Full year
Financial income £m £m £m
Interest receivable 0.2 0.1 0.3
Net gains on retranslation of short term inter-company loan balances 2.6 3.2 6.0
2.8 3.3 6.3
2015 2014 2014
Half year Half year Full year
Finance costs £m £m £m
Interest payable on loans and overdrafts 2.6 2.9 5.7
Unwinding of discount factor on deferred and contingent consideration 0.3 - -
Net interest cost on pension scheme liabilities 0.1 - 0.1
Other finance costs - - 0.1
Total interest payable 3.0 2.9 5.9
Net interest costs of £2.4m (30 June 2014: £2.8m; 31 December 2014: £5.4m) for
the purposes of the calculation of interest cover comprise of bank interest
receivable of £0.2m (30 June 2014: £0.1m;
31 December 2014: £0.3m), and interest payable on loans and overdrafts of
£2.6m (30 June 2014: £2.9m; 31 December 2014: £5.7m).
5. Tax on Profit on Ordinary Activities
The income tax charge for the six months to 30 June 2015 is based on an
estimate of the effective rate of taxation for the current year. The effective
rate of taxation applied to adjusted profit before tax for the period is 23.0%
(30 June 2014: 23.5%; Year ended 31 December 2014: 23.2%). A reconciliation
of the tax charge on adjusted profit to the actual tax charge is presented
below.
2015 2014 2014
Half year Half year Full year
£m £m £m
The income tax charge is analysed as follows:
Tax charge on adjusted profit before tax at effective rate 14.9 15.8 44.7
Tax credit on amortisation of acquisition-related intangible assets (5.6) (3.8) (8.4)
Tax credit on acquisition-related costs and fair value adjustments (0.2) (0.3) (0.9)
Tax (credit)/charge on retranslation of short-term inter-company loan balances (0.3) 0.1 (0.2)
Tax charge on profit on disposal of businesses - - 0.8
Total 8.8 11.8 36.0
6. Earnings per Share
Earnings per share and diluted earnings per share are calculated as follows:
2015 2014 2014
Half year Half year Full year
Basic earnings per share £m £m £m
Profit after tax (£m) 40.4 46.8 135.1
Weighted average number of shares outstanding (millions) 119.0 118.7 118.8
Basic earnings per share (pence) 33.9 39.4 113.7
Basic earnings per share amounts are calculated by dividing net profit for the
period attributable
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