REG-Tate & Lyle PLC Final Results <Origin Href="QuoteRef">TATE.L</Origin> - Part 4
28/05/2015 07:00
- Part 4: For the preceding part double click ID:nBw2T3Y7Jc
Year ended 31 March 2015
Reported Eliminate Add proportionate consolidation £m Reported pre IFRS 11
£m
equity accounting
£m
£m
Cash flows from operating activities
Profit before tax from continuing operations 51 (49) 63 65
Adjustments for:
Depreciation of property, plant and equipment 85 - 13 98
Amortisation of intangible assets 24 - - 24
Share-based payments - - - -
Exceptional items (non-cash) 113 - - 113
Other non-cash items - - - -
Finance income (1) - - (1)
Finance expense 32 - - 32
Share of profit after tax of joint ventures and associates (49) 49 - -
Changes in working capital 8 - (13) (5)
Changes in net retirement benefit obligations (47) - - (47)
Cash generated from continuing operations 216 - 63 279
Interest paid (30) - - (30)
Net income tax paid (7) - (11) (18)
Net cash generated from operating activities 179 - 52 231
Cash flows from investing activities
Purchase of property, plant and equipment (121) - (11) (132)
Purchase of intangible assets (34) - - (34)
Proceeds on disposal of property, plant and equipment - - 1 1
Acquisition of businesses, net of cash acquired (26) - - (26)
Disposal of businesses, net of cash disposed - - - -
Purchase of available-for-sale financial assets (2) - - (2)
Disposal of available-for-sale financial assets 2 - - 2
Interest received 1 - - 1
Dividends received from joint ventures and associates 16 - (16) -
Net cash used in investing activities (164) - (26) (190)
Cash flows from financing activities
Purchase of own shares (12) - - (12)
Cash inflow from additional borrowings 278 - (3) 275
Cash outflow from repayment of borrowings (319) - (7) (326)
Repayment of capital element of finance leases (2) - - (2)
Dividends paid to the owners of the Company (130) - - (130)
Net cash used in financing activities (185) - (10) (195)
Net decrease in cash and cash equivalents (170) - 16 (154)
Year ended 31 March 2014
Reported* Eliminate Add proportionate consolidation £m Reported pre IFRS 11
£m equity accounting £m
£m
Cash flows from operating activities
Profit before tax from continuing operations 277 (61) 74 290
Adjustments for:
Depreciation of property, plant and equipment 83 - 14 97
Amortisation of intangible assets 20 - 1 21
Share-based payments 8 - - 8
Exceptional items - - - -
Other non-cash items (6) - - (6)
Finance income (2) - - (2)
Finance expense 37 - - 37
Share of profit after tax of joint ventures and associates (61) 61 - -
Changes in working capital 15 - 23 38
Changes in net retirement benefit obligations (43) - - (43)
Cash generated from continuing operations 328 - 112 440
Interest paid (33) - - (33)
Net income tax paid (9) - (14) (23)
Net cash generated from operating activities 286 - 98 384
Cash flows from investing activities
Purchase of property, plant and equipment (102) - (12) (114)
Purchase of intangible assets (45) - - (45)
Proceeds on disposal of property, plant and equipment 33 - 1 34
Acquisition of businesses, net of cash acquired (15) - - (15)
Disposal of businesses, net of cash disposed 3 - - 3
Purchase of available-for-sale financial assets (4) - - (4)
Disposal of available-for-sale financial assets 2 - - 2
Interest received 2 - - 2
Dividends received from joint ventures and associates 105 - (105) -
Net cash used in investing activities (21) - (116) (137)
Cash flows from financing activities
Purchase of own shares (29) - - (29)
Cash inflow from additional borrowings 8 - (4) 4
Cash outflow from repayment of borrowings (50) - 4 (46)
Repayment of capital element of finance leases (2) - - (2)
Dividends paid to the owners of the Company (124) - - (124)
Net cash used in financing activities (197) - - (197)
Net increase in cash and cash equivalents 68 - (18) 50
*Restated for the adoption of IFRS 11 `Joint Arrangements` (see Note 19).
19. Adoption of IFRS 11 `Joint Arrangements`
With effect from 1 April 2014, the Group adopted IFRS 11 Joint Arrangements
which changed significantly the accounting for its interests in joint ventures.
Before adoption of the standard, the Group`s interests in joint ventures were
accounted for by proportionate consolidation, whereby the Group`s share of the
income and expenses, assets and liabilities and cash flows of joint ventures
were combined on a line-by-line basis with those of Tate & Lyle PLC and its
subsidiaries. IFRS 11 prohibits the use of proportionate consolidation and
requires that joint ventures are accounted for using the equity method of
accounting. Under the equity method of accounting, the Group`s share of the
after tax profits and losses of the joint ventures has been shown on one line of
the consolidated income statement, its share of their net assets has been shown
on one line of the consolidated statement of financial position and the
consolidated statement of cash flows reflects cash flows between the Group and
the joint ventures within cash flows from investing activities. While these
changes have not affected the Group`s earnings or its net assets, they have
affected many of the individual line items presented in the Group`s financial
statements. In accordance with IAS 1, the Group has also presented a third
statement of financial position (as at 1 April 2013) following the adoption of
this accounting policy.
Comparative financial information for 2014 has been restated to adopt the new
standard. An analysis of the effect of the impact on the Group`s results for
2015 and 2014 is presented below:
Year ended 31 March 2015
Under previous policy Elimination of proportionate consolidation Adoption of equity accounting As reported
£m £m £m
£m
Consolidated profit or loss and comprehensive income
Continuing operations
Sales 2 694 (338) - 2 356
Operating profit 96 (63) - 33
Finance income 1 - - 1
Finance expense (32) - - (32)
Share of profit after tax of joint ventures and associates - - 49 49
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