- Part 2: For the preceding part double click ID:nRSe6489Ua
Basic 13.0 14.2 35.5
Diluted 13.0 14.1 35.4
Condensed Group Statement of Comprehensive Income/(Loss)
For the six months ended 30 June 2015
Unaudited Unaudited
Half year Half year Full year
2015 2014 2014
Note £m £m £m
Profit 37.9 40.4 100.5
Other comprehensive loss, net of income tax:
Items that will subsequently not be reclassified to income statement:
Remeasurement of defined benefit liabilities/assets 3.4 (21.8) (9.9)
Income tax relating to items not reclassified 5 (0.7) 3.1 0.5
Items that will subsequently not be reclassified to income statement 2.7 (18.7) (9.4)
Items that may be subsequently reclassified to income statement:
Exchange differences on translation of the net assets of foreign operations (48.6) (32.4) (9.6)
Exchange translation differences arising on net investment hedges 0.7 7.0 (0.3)
Change in fair value of cash flow hedges - (0.3) (0.2)
Change in fair value of available-for-sale investments - - (0.2)
Items that may be subsequently reclassified to income statement (47.9) (25.7) (10.3)
Other comprehensive loss, net of income tax (45.2) (44.4) (19.7)
Total comprehensive (loss)/income (7.3) (4.0) 80.8
Total comprehensive (loss)/income attributable to:
Owners of the parent (9.1) (5.7) 75.7
Non-controlling interests 1.8 1.7 5.1
Total comprehensive (loss)/income (7.3) (4.0) 80.8
Condensed Group Statement of Cash Flows
For the six months ended 30 June 2015
Unaudited Unaudited
Half year Half year Full year
2015 2014 2014
Notes £m £m £m
Cash flows from operating activities
Cash generated from operations 11 66.8 52.6 145.0
Net interest paid (7.0) (6.6) (12.0)
Income taxes paid (16.2) (10.9) (24.4)
Net cash inflow from operating activities 43.6 35.1 108.6
Cash flows from investing activities
Capital expenditure (17.9) (14.3) (53.1)
Proceeds from the sale of property, plant and equipment 0.5 1.1 2.0
Proceeds from sale of investments - 0.3 0.6
Acquisition of subsidiaries and joint ventures, net of cash acquired (24.5) - (23.4)
Dividends received from joint ventures - - 0.6
Other investing outflows (1.3) (0.8) (2.3)
Net cash (outflow) from investing activities (43.2) (13.7) (75.6)
Net cash inflow before financing activities 0.4 21.4 33.0
Cash flows from financing activities
Increase/(repayment) of borrowings 54.8 24.3 (9.8)
Settlement of forward foreign exchange contracts (1.6) (2.9) 4.8
Purchase of own shares (5.2) (0.4) (0.5)
Borrowing facility arrangement costs (1.2) - -
Dividends paid to equity shareholders 7 (30.1) (27.7) (41.2)
Dividends paid to non-controlling shareholders (0.9) (1.2) (2.6)
Net cash inflow/(outflow) from financing activities 15.8 (7.9) (49.3)
Net increase/(decrease) in cash and cash equivalents 10 16.2 13.5 (16.3)
Cash and cash equivalents at beginning of period 38.5 52.8 52.8
Effect of exchange rate fluctuations on cash and cash equivalents (0.3) (1.8) 2.0
Cash and cash equivalents at end of period 54.4 64.5 38.5
Unaudited Unaudited
Half year Half year Full year
2015 2014 2014
£m £m £m
Free cash flow from continuing operations
Net cash inflow from operating activities 50.9 35.5 109.1
Additional funding contributions into Group pension plans 1.0 1.0 3.2
Capital expenditure (17.9) (14.3) (53.1)
Proceeds from the sale of property, plant and equipment 0.5 1.1 2.0
Dividends received from joint ventures - - 0.6
Dividends paid to non-controlling shareholders (0.9) (1.2) (2.6)
Free cash flow from continuing operations 33.6 22.1 59.2
Discontinued operations (7.4) (0.4) (0.5)
Free cash flow 26.2 21.7 58.7
Condensed Group Balance Sheet
As at 30 June 2015
Unaudited Unaudited
Half year Half year Full year
2015 2014As restated 2014
Notes £m £m £m
Assets
Property, plant and equipment 276.6 260.9 291.8
Intangible assets 677.7 694.9 703.9
Employee benefits - net surpluses 12 49.5 17.9 49.8
Interests in joint ventures 16.3 15.3 16.9
Investments 3.3 3.8 3.3
Income tax recoverable 2.9 4.2 2.9
Deferred tax assets 70.1 43.4 71.4
Other receivables 15.2 15.3 16.5
Total non-current assets 1,111.6 1,055.7 1,156.5
Cash and short-term deposits 10 76.2 81.4 76.9
Inventories 182.7 193.3 191.9
Trade and other receivables 328.1 329.5 334.1
Income tax recoverable 2.8 3.0 4.0
Derivative financial instruments - 0.2 -
Total current assets 589.8 607.4 606.9
Total assets 1,701.4 1,663.1 1,763.4
Equity
Issued share capital 27.8 27.8 27.8
Retained earnings 2,335.5 2,277.5 2,332.1
Other reserves 13 (1,513.7) (1,481.1) (1,466.7)
Equity attributable to the owners of the parent 849.6 824.2 893.2
Non-controlling interests 30.8 27.8 29.9
Total equity 880.4 852.0 923.1
Liabilities
Interest-bearing borrowings 10 349.5 330.2 304.9
Employee benefits - net liabilities 12 92.6 84.4 100.9
Other payables 16.9 16.7 18.2
Provisions 28.8 34.0 31.9
Deferred tax liabilities 46.8 46.2 50.3
Total non-current liabilities 534.6 511.5 506.2
Interest-bearing borrowings 10 22.7 12.9 40.3
Trade and other payables 197.6 216.6 221.0
Income tax payable 53.2 50.9 51.8
Provisions 12.9 18.7 20.8
Derivative financial instruments - 0.5 0.2
Total current liabilities 286.4 299.6 334.1
Total liabilities 821.0 811.1 840.3
Total equity and liabilities 1,701.4 1,663.1 1,763.4
Condensed Group Statement of Changes in Equity
For the six months ended 30 June 2015
Issued Non-
share Other Retained Owners of controlling Total
capital reserves earnings the parent interests equity
£m £m £m £m £m £m
As at 1 January 2014 27.8 (1,455.8) 2,284.6 856.6 27.3 883.9
Profit - - 38.3 38.3 2.1 40.4
Other comprehensive loss, net of income tax:
Items that will not be reclassified subsequently to income statement:
Remeasurement of defined benefit liabilities/assets - - (21.8) (21.8) - (21.8)
Income tax relating to items not reclassified - - 3.1 3.1 - 3.1
Items that will not be reclassified subsequently to income statement - - (18.7) (18.7) - (18.7)
Items that may be reclassified subsequently to income statement:
Exchange differences on the net assets of foreign operations - (32.0) - - (32.0) (0.4) (32.4)
Exchange translation differences arising on net investment hedges - 7.0 - - 7.0 - 7.0
Change in fair value of cash flow hedges - (0.3) - - (0.3) - (0.3)
Items that may be reclassified subsequently to income statement - (25.3) - (25.3) (0.4) (25.7)
Other comprehensive loss, net of income tax (25.3) (18.7) - (44.0) (0.4) (44.4)
Total comprehensive (loss)/income - (25.3) 19.6 - (5.7) 1.7 (4.0)
Purchase of own shares - - (0.4) (0.4) - (0.4)
Recognition of share-based payments - - 1.4 - 1.4 - 1.4
Dividends paid (note 7) - - (27.7) - (27.7) (1.2) (28.9)
Total transactions with owners - - (26.7) - (26.7) (1.2) (27.9)
As at 1 July 2014, unaudited 27.8 (1,481.1) 2,277.5 - 824.2 27.8 852.0
Profit - - 57.6 57.6 2.5 60.1
Other comprehensive income, net of income tax:
Items that will not be reclassified subsequently to income statement:
Remeasurement of defined benefit liabilities/assets - - 11.9 11.9 - 11.9
Income tax relating to items not reclassified - - (2.6) (2.6) - (2.6)
Items that will not be reclassified subsequently to income statement - - 9.3 9.3 - 9.3
Items that may be reclassified subsequently to income statement:
Exchange differences on the net assets of foreign operations - 21.8 - 21.8 1.0 22.8
Exchange translation differences arising on net investment hedges - (7.3) - (7.3) - (7.3)
Change in fair value of cash flow hedges - 0.1 - 0.1 - 0.1
Change in fair value of available-for-sale investments - (0.2) - (0.2) - (0.2)
Items that will may be reclassified subsequently to income statement - 14.4 - 14.4 1.0 15.4
Other comprehensive income, net of income tax - 14.4 9.3 23.7 1.0 24.7
Total comprehensive income - 14.4 66.9 81.3 3.5 84.8
Purchase of own shares - - (0.1) (0.1) - (0.1)
Recognition of share-based payments - - 1.3 1.3 - 1.3
Dividends paid (note 7) - - (13.5) (13.5) (1.4) (14.9)
Total transactions with owners - - (12.3) (12.3) (1.4) (13.7)
As at 1 January 2015 27.8 (1,466.7) 2,332.1 893.2 29.9 923.1
Issued share capital Other reserves Retained earnings Owners of the parent Non-controlling interests Total equity
£m £m £m £m £m £m
As at 1 January 2015 27.8 (1,466.7) 2,332.1 893.2 29.9 923.1
Profit - - 35.2 35.2 2.7 37.9
Other comprehensive (loss)/income, net of income tax:
Items that will not be reclassified subsequently to income statement:
Remeasurement of defined benefit liabilities/assets - - 3.4 3.4 - 3.4
Income tax relating to items not reclassified - - (0.7) (0.7) - (0.7)
Items that will not be reclassified subsequently to income statement - - 2.7 2.7 - 2.7
Items that may be reclassified subsequently to income statement:
Exchange differences on the net assets of foreign operations - (47.7) - - (47.7) (0.9) (48.6)
Exchange translation differences arising on net investment hedges - 0.7 - - 0.7 - 0.7
Items that may be reclassified subsequently to income statement - (47.0) - (47.0) (0.9) (47.9)
Other comprehensive (loss)/income, net of income tax - (47.0) 2.7 - (44.3) (0.9) (45.2)
Total comprehensive (loss)/income - (47.0) 37.9 - (9.1) 1.8 (7.3)
Purchase of own shares - - (5.2) (5.2) - (5.2)
Recognition of share-based payments - - 0.8 - 0.8 - 0.8
Dividends paid (note 7) - - (30.1) - (30.1) (0.9) (31.0)
Total transactions with owners - - (34.5) - (34.5) (0.9) (35.4)
As at 30 June 2015, unaudited 27.8 (1,513.7) 2,335.5 - 849.6 30.8 880.4
1. Basis of preparation
1.1 Basis of accounting
These condensed financial statements of Vesuvius plc ("Vesuvius" or the "Company") and its subsidiary and joint venture
companies (the "Group") have been prepared in accordance with International Accounting Standard ("IAS") 34, Interim
Financial Reporting, as adopted by the EU and in accordance with the Disclosure and Transparency Rules of the UK's
Financial Conduct Authority.
These condensed financial statements have been prepared using the same accounting policies as used in the preparation of
the Group's annual financial statements for the year ended 31 December 2014, which were prepared in accordance with
International Financial Reporting Standards as adopted by the EU ("IFRS"). 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 financial information presented in this document is unaudited, but
has been reviewed by the Company's auditor.
The comparative figures for the financial year ended 31 December 2014 are not 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 unqualified, did not include reference to any matters to which the auditor drew attention by
way of emphasis without qualifying its report and did not contain a statement under section 498(2) or (3) of the Companies
Act 2006. These sections address whether proper accounting records have been kept, whether the Company's accounts are in
agreement with those records and whether the auditor has obtained all the information and explanations necessary for the
purposes of its audit.
1.2 Basis of consolidation
The consolidated financial statements of the Group incorporate the financial statements of the Company and entities
controlled by the Company (its "subsidiaries"). Control exists when the Company has the power to govern the financial and
operating policies of an entity so as to obtain benefits from its activities. In assessing whether control exists,
potential voting rights that are currently exercisable are taken into account. The results of subsidiaries acquired or
disposed of during the year are included in the Group income statement from the effective date of acquisition or up to the
effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into
line with those detailed herein to ensure that the Group financial statements are prepared on a consistent basis. All
intra-Group transactions, balances, income and expenses are eliminated on consolidation.
Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the Group's
interest therein. Non-controlling interests consist of the amount of those interests at the date of the original business
combination together with the non-controlling interests' share of profit or loss and each component of other comprehensive
income since the date of the combination. Total comprehensive income is attributed to the non-controlling interests even if
this results in the non-controlling interests having a deficit balance.
1.3 Going concern
The Directors have prepared cash flow forecasts for the Group for a period in excess of 12 months from the date of approval
of the 2015 interim financial statements. These forecasts reflect an assessment of current and future end-market conditions
and their impact on the Group's future trading performance. The forecasts show that the Group will be able to operate
within the current committed debt facilities and show continued compliance with the Company's financial covenants. On the
basis of the exercise described above and the Group's available committed debt facilities, the Directors consider that the
Group and Company have adequate resources to continue in operational existence for the foreseeable future. Accordingly,
they continue to adopt a going concern basis in preparing the financial statements of the Group.
1.4 Functional and presentation currency
The condensed financial statements are presented in millions of pounds sterling, which is the functional currency of the
Company, and rounded to one decimal place
1.5 Disclosure of exceptional items as "separately reported items"
International Accounting Standard 1 ("IAS 1"), Presentation of Financial Statements, provides no definitive guidance as to
the format of the income statement, but states key lines which should be disclosed. It also encourages the disclosure of
additional line items and the reordering of items presented on the face of the income statement when appropriate for a
proper understanding of the entity's financial performance. In accordance with IAS 1, the Company has adopted a policy of
disclosing separately on the face of its condensed Group income statement, within the column entitled "Separately reported
items", the effect of any components of financial performance for which the Directors consider separate disclosure would
assist both in a better understanding of the financial performance achieved and in making projections of future results. In
its adoption of this policy, the Company applies an even-handed approach to both gains and losses and aims to be both
consistent and clear in its accounting and disclosure of such items.
Both materiality and the nature and function of the components of income and expense are considered in deciding upon such
presentation. Such items may include, inter alia, the financial effect of exceptional items which occur infrequently, such
as major restructuring activity, initial recognition and subsequent increase, decrease and amortisation of deferred tax
assets, together with items always reported separately, such as amortisation charges relating to acquired intangible
assets, profits or losses arising on the disposal of continuing or discontinued operations and the taxation impact of the
aforementioned exceptional items and items separately reported.
2. Segment information
Operating segments for continuing operations:
For reporting purposes, the Group is organised into two main business segments: Steel and Foundry. The senior executive
management of these business segments report to the Chief Executive of the Group. It is the Vesuvius Board which makes the
key operating decisions in respect of these segments. The information used by the Vesuvius Board to review performance and
determine resource allocation between the business segments is presented with the Group's activities segmented between
Steel and Foundry. Taking into account the basis on which the Group's activities are reported to the Vesuvius Board, the
Directors believe that these two business segments are the appropriate way to analyse the Group's results.
Segment revenue represents revenue from external customers (inter-segment revenue is not material). Trading profit includes
items directly attributable to a segment as well as those items that can be allocated on a reasonable basis. The costs
incurred by Vesuvius within its central headquarters have been allocated in full across the Group's two segments for the
period ended 30 June 2015. In the comparative periods these costs were allocated in part to the Group's discontinued
operations.
The operating segment results from continuing operations are presented below.
Unaudited half year 2015
Continuing
Steel Foundry Operations
£m £m £m
Segment revenue 476.3 226.3 702.6
Segment EBITDA (note 16.11) 57.7 32.8 90.5
Segment depreciation (13.2) (6.9) (20.1)
Segment trading profit 44.5 25.9 70.4
Amortisation of acquired intangible assets (8.3)
Restructuring Charges (2.2)
Operating profit 59.9
Net finance costs (8.0)
Share of post-tax profit of joint ventures (0.5)
Profit before tax 51.4
Return on sales margin (%) (note 16.3) 9.3 11.5 10.0
Capital expenditure additions (£m) 11.3 4.1 15.4
Unaudited half year 2014
Continuing
Steel Foundry Operations
£m £m £m
Segment revenue 489.5 240.3 729.8
Segment EBITDA (note 16.11) 59.7 30.6 90.3
Segment depreciation (12.5) (6.6) (19.1)
Segment trading profit 47.2 24.0 71.2
Amortisation of acquired intangible assets (8.5)
Profit on disposal of non-current assets 0.6
Operating profit 63.3
Net finance costs (9.2)
Share of post-tax profit of joint ventures 0.8
Profit before tax 54.9
Return on sales margin (%) (note 16.3) 9.7 10.0 9.8
Capital expenditure additions (£m) 8.6 5.7 14.3
Full year 2014
Continuing
Steel Foundry Operations
£m £m £m
Segment revenue 981.4 463.0 1,444.4
Segment EBITDA (note 16.11) 121.9 59.4 181.3
Segment depreciation (25.5) (13.0) (38.5)
Segment trading profit 96.4 46.4 142.8
Amortisation of acquired intangible assets (17.0)
Operating profit 125.8
Net finance costs (16.4)
Share of post-tax profit of joint ventures 1.4
Profit on disposal of continuing operations 0.4
Profit before tax 111.2
Return on sales margin (%) (note 16.3) 9.8 10.0 9.9
Capital expenditure additions (£m) 28.6 24.9 53.5
3. Restructuring charges from continuing operations
In 2015, a Group wide restructuring programme was initiated resulting in £3.1m of redundancy charges up to half year 2015
(full year 2014: nil). This is partially offset by a release of onerous lease provisions of £0.5m (full year 2014: nil)
and a £0.4m (full year 2014: nil) release of provisions for potential claims that have now expired relating to the
termination of agents.
The remaining restructuring provision as at half year 2015 is £6.4m (2014: half year £9.6m; full year £8.0m) of which £3.8m
(2014: half year £4.7m; full year £4.4m) relates to onerous lease costs in respect of leases expiring between one and seven
years.
4. Net finance costs
Net finance costs for the half year 2015 of £8.0m is analysed in the table below.
Unaudited Unaudited
Half year Half year Full year
2015 2014 2014
£m £m £m
Interest payable on borrowings
Loans, Overdrafts and factoring arrangements 7.8 7.1 14.2
Obligations under finance leases 0.1 0.1 0.1
Amortisation of capitalised borrowing costs 0.1 1.7 1.8
Total interest payable on borrowings 8.0 8.9 16.1
Interest on net retirement benefits obligations 0.5 0.9 1.8
Unwinding of discounted provisions 0.5 0.6 1.1
Finance Income (1.0) (1.2) (2.6)
Net finance costs 8.0 9.2 16.4
5. Income tax costs
The Group's effective tax rate, based on the income tax costs associated with headline performance of £15.9m (2014: half
year £16.4m; full year £32.9m), was 25.5% in the first half of 2015 (2014: half year 26.5%; full year 26.0%).
The Group's total income tax costs include a credit of £2.4m (2014: half year £1.9m credit; full year £25.8m credit)
relating to separately reported items comprising: a credit of £0.5m (2014: half year £nil; full year £nil) in relation to
restructuring charges; a credit of £1.9m (2014: half year £1.9m; full year £4.0m) relating to the amortisation of acquired
intangible assets; and a credit of £nil (2014: half year £nil; full year £21.8m) in respect of the potential recognition of
US temporary differences. Tax charged in the Group statement of comprehensive income in the year amounted to £0.7m (2014:
half year £3.1m credit; full year £0.5m credit), all of which related to net actuarial gains and losses on employee
benefits plans.
6. Earnings per share ("EPS")
6.1 Per share amounts
Unaudited Unaudited
Continuing Discontinued Half year Continuing Discontinued Half year
operations operations 2015 operations operations 2014
pence pence pence pence pence pence
Earnings per share - basic 13.0 - 13.0 14.2 - 14.2
- diluted 13.0 - 13.0 14.1 - 14.1
- headline 16.0 16.4
- diluted headline 16.0 16.4
Continuing Discontinued Full year
operations operations 2014
pence pence pence
Earnings per share - basic 36.8 (1.3) 35.5
- diluted 36.7 (1.3) 35.4
- headline 33.4
- diluted headline 33.3
6.2 Earnings for EPS
Basic and diluted EPS from continuing operations are based upon the profit attributable to owners of the parent, as
reported in the condensed Group income statement, of £35.2m (2014: half year £38.3m; full year £99.5m), being the profit
for the period of £37.9m (2014: half year £40.4m; full year £104.1m) less non-controlling interests of £2.7m (2014: half
year £2.1m; full year £4.6m). Basic and diluted EPS from total operations are based on the profit attributable to owners of
the parent of £35.2m (2014: half year £38.3m; full year £95.9m). Headline and diluted headline EPS are based upon headline
profit from continuing operations attributable to owners of the parent of £43.3m (2014: half year £44.3m; full year
£90.3m). The table below reconciles these different profit measures:
. Unaudited Unaudited
Half year Half year Full year
2015 2014 2014
£m £m £m
Continuing operations
Profit attributable to owners of the parent 35.2 38.3 99.5
Adjustments for separately reported items:
Amortisation of acquired intangible assets 8.3 8.5 17.0
Restructuring costs 2.2 - -
Profit on disposal of non-current assets - (0.6) (0.4)
Tax relating to separately reported items (2.4) (1.9) (25.8)
Headline profit attributable to owners of the parent - continuing operations 43.3 44.3 90.3
6.3 Weighted average number of shares
Unaudited Unaudited
Half year Half year Full year
2015 2014 2014
m m m
For calculating basic and headline EPS 270.0 270.2 270.3
Adjustment for dilutive potential ordinary shares 1.1 0.6 0.8
For calculating diluted and diluted headline EPS 271.1 270.8 271.1
For the purposes of calculating diluted basic and diluted headline EPS, the weighted average number of ordinary shares is
adjusted to include the weighted average number of ordinary shares that would be issued on the conversion of all dilutive
potential ordinary shares relating to the Company's share-based payment plans. Potential ordinary shares are only treated
as dilutive when their conversion to ordinary shares would decrease earnings per share, or increase loss per share, from
continuing operations.
7. Dividends
Unaudited Unaudited
Half year Half year Full year
2015 2014 2014
£m £m £m
Amounts recognised as dividends and paid to equity holders during the period
Final dividend for the year ended 31 December 2013 of 10.25p per ordinary share - 27.7 27.7
Interim dividend for the year ended 31 December 2014 of 5.00p per ordinary share - 13.5
Final dividend for the year ended 31 December 2014 of 11.125p per ordinary share 30.1 - -
30.1 27.7 41.2
The Directors have declared an interim dividend of 5.15p per ordinary share in respect of the year ending 31 December 2015.
The dividend will be paid on 25 September 2015 to ordinary shareholders on the register at the close of business on 14
August 2015. Based upon the number of ordinary shares in issue at 30 June 2015, the total cost of the dividend would be
£13.9m.
8. Acquisitions
The Group purchased Sidermes spa on 15 May 2015 for total consideration of E33.7m. The provisional fair value of net
assets acquired was E16.9m and goodwill of E16.8m has been recognised. Revenue of £1.6m and trading profit of £0.2m was
included in the half year results relating to Sidermes. Had the business been acquired on 1 January 2015, Group revenues
for the half year would have been £707.4m and trading profit would have been £70.9m.
9. Cash pooling arrangements
Following the implementation of Amendments to IAS32 Financial Instruments which clarified the circumstances in which
financial instruments can be offset within financial statements, the Group reviewed and changed the presentational
treatment of its notional cash pooling arrangements from the year ended 31 December 2014. 'Cash and short term deposits'
and 'Interest- bearing borrowings' have consequently been restated within the Group's interim 2014 results to reflect this
presentation.
10. Net debt
Unaudited
Balance at Foreign Balance at
1 January exchange Non-cash Half Year
2015 adjustments Movements Cash flow 2015
£m £m £m £m £m
Cash and cash equivalents
Cash at bank and in hand 76.9 (2.5) - 1.8 76.2
Bank overdrafts (38.4) 2.2 - 14.4 (21.8)
Borrowings, excluding bank overdrafts
Current (2.2) 0.1 - 0.7 (1.4)
Non-current (305.8) 10.0 - (55.5) (351.3)
Capitalised borrowing costs 1.2 - 1.1 - 2.3
Net debt (268.3) 9.8 1.1 (38.6) (296.0)
11. Cash generated from operations
Unaudited Unaudited
Continuing Discontinued Half year Continuing Discontinued Half year
operations operations 2015 Operations Operations 2014
£m £m £m £m £m £m
Operating profit 59.9 - 59.9 63.3 - 63.3
Adjustments for:
Amortisation of acquired intangible assetsRestructuring charges 8.3 - 8.3 8.5 - 8.5
Restructuring charges 2.2 - 2.2 - - -
Profit on disposal of non-current assets - - - (0.6) - (0.6)
Depreciation 20.1 - 20.1 19.1 - 19.1
EBITDA (note 16.11) 90.5 - 90.5 90.3 - 90.3
Net increase in trade and other working capital (13.8) (7.4) (21.2) (32.4) (0.4) (32.8)
Outflow related to restructuring charges (1.5) - (1.5) (3.9) - (3.9)
Additional pension funding contributions (1.0) - (1.0) (1.0) - (1.0)
Cash generated from operations 74.2 (7.4) 66.8 53.0 (0.4) 52.6
Continuing Discontinued Full year
Operations operations 2014
£m £m £m
Operating profit/(loss) 125.8 (3.6) 122.2
Adjustments for:
Amortisation of acquired intangible assetsRestructuring charges 17.0 - 17.0
Depreciation 38.5 - 38.5
EBITDA (note 16.11) 181.3 (3.6) 177.7
Net (increase)/decrease in trade and other working capital (26.8) 3.1 (23.7)
Outflow related to restructuring charges (5.8) - (5.8)
Additional pension funding contributions (3.2) - (3.2)
Cash generated from operations 145.5 (0.5) 145.0
12. Employee benefits
The net employee benefits balance as at half year 2015 of £43.1m (2014: half year £66.5m; full year £51.1m) in respect of
the Group's defined benefit pension and other post-retirement benefit obligations, comprised net surpluses of £49.5m (2014:
half year £17.9m; full year £49.8m) and net liabilities of £92.6m (2014: half year £84.4m; full year £100.9m), and results
from an interim actuarial valuation of the Group's defined benefit pension and other post-retirement obligations as at that
date.
Unaudited Unaudited
Half Year Half Year 31 December
2015 2014 2014
£m £m £m
Employee benefits - net surpluses
UK defined benefit pension plan 49.5 17.9 49.8
Employee benefits - net liabilities
UK defined benefit ex-gratia pension plans 1.8 0.9 1.0
US defined benefit pension plans 33.5 27.8 35.6
Germany defined benefit pension plans 35.0 35.1 39.9
Other defined benefit pension plans 17.6 12.5 19.0
Other post-retirement benefit obligations 4.7 8.1 5.4
92.6 84.4 100.9
Employee benefits - total net liabilities 43.1 66.5 51.1
The total net charges in respect of the Group's defined benefit pension and other post-retirement benefit obligations are
shown in the table below:
Unaudited Unaudited
Half year Half year Full year
2015 2014 2014
£m £m £m
In arriving at trading profit 3.1 3.0 2.3
In arriving at operating profit 0.8 - -
In arriving at profit
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