REG - Whitbread PLC - Whitbread Interim Results <Origin Href="QuoteRef">WTB.L</Origin> - Part 2
25/10/2016 07:05
- Part 2: For the preceding part double click ID:nRSY3371Na
- (0.7)
(123.5) 49.7 160.2
Items that may be reclassified subsequently to the income statement:
Net (loss) / gain on cash flow hedges (1.5) 5.2 6.5
Current tax on cash flow hedges 0.5 (0.6) (0.9)
Deferred tax on cash flow hedges (0.2) (0.4) (0.4)
Deferred tax: change in rate of corporation tax on cash flow hedges - - (0.1)
(1.2) 4.2 5.1
Exchange differences on translation of foreign operations 13.8 (3.2) 7.1
Other comprehensive (loss) / income for the period, net of tax (110.9) 50.7 172.4
Total comprehensive income for the period, net of tax 89.8 247.0 559.7
Attributable to:
Parent shareholders 91.9 248.4 563.5
Non-controlling interest (2.1) (1.4) (3.8)
89.8 247.0 559.7
Interim consolidated statement of changes in equity
6 months to 1 September 2016 (Reviewed)
Share capital £m Share premium £m Capitalredemption reserve £m Retained earnings £m Currency translation reserve £m Other reserves £m Total £m Non-controlling interest £m Totalequity£m
At 3 March 2016 150.0 62.6 12.3 4,239.8 5.6 (2,067.7) 2,402.6 2.1 2,404.7
Profit for the period - - - 202.9 - - 202.9 (2.2) 200.7
Other comprehensive loss - - - (123.2) 13.7 (1.5) (111.0) 0.1 (110.9)
Total comprehensive income - - - 79.7 13.7 (1.5) 91.9 (2.1) 89.8
Ordinary shares issued 0.1 1.6 - - - - 1.7 - 1.7
Loss on ESOT shares issued - - - (5.6) - 5.6 - - -
Accrued share-based payments - - - 8.2 - - 8.2 - 8.2
Tax on share-based payments - - - - - - - - -
Equity dividends - - - (112.6) - - (112.6) - (112.6)
At 1 September 2016 150.1 64.2 12.3 4,209.5 19.3 (2,063.6) 2,391.8 - 2,391.8
6 months to 27 August 2015 (Reviewed)
Share capital £m Share premium £m Capitalredemption reserve £m Retained earnings £m Currency translationreserve £m Other reserves £m Total £m Non-controlling interest £m Totalequity£m
At 26 February 2015 149.8 59.2 12.3 3,833.0 (1.4) (2,080.9) 1,972.0 5.9 1,977.9
Profit for the period - - - 197.6 - - 197.6 (1.3) 196.3
Other comprehensive income - - - 48.7 (3.1) 5.2 50.8 (0.1) 50.7
Total comprehensive income - - - 246.3 (3.1) 5.2 248.4 (1.4) 247.0
Ordinary shares issued - 0.7 - - - - 0.7 - 0.7
Loss on ESOT shares issued - - - (5.5) - 5.5 - - -
Accrued share-based payments - - - 8.2 - - 8.2 - 8.2
Tax on share-based payments - - - 0.6 - - 0.6 - 0.6
Equity dividends - - - (103.4) - - (103.4) - (103.4)
At 27 August 2015 149.8 59.9 12.3 3,979.2 (4.5) (2,070.2) 2,126.5 4.5 2,131.0
Year to 3 March 2016 (Audited)
Share capital £m Share premium £m Capitalredemption reserve £m Retained earnings £m Currency translation reserve £m Other reserves £m Total £m Non-controlling interest £m Totalequity£m
At 26 February 2015 149.8 59.2 12.3 3,833.0 (1.4) (2,080.9) 1,972.0 5.9 1,977.9
Profit for the year - - - 391.2 - - 391.2 (3.9) 387.3
Other comprehensive income - - - 158.8 7.0 6.5 172.3 0.1 172.4
Total comprehensive income - - - 550.0 7.0 6.5 563.5 (3.8) 559.7
Ordinary shares issued 0.2 3.4 - - - - 3.6 - 3.6
Loss on ESOT shares issued - - - (6.7) - 6.7 - - -
Accrued share-based payments - - - 17.3 - - 17.3 - 17.3
Tax rate change on historical revaluation - - - 1.3 - - 1.3 - 1.3
Equity dividends - - - (155.1) - - (155.1) - (155.1)
At 3 March 2016 150.0 62.6 12.3 4,239.8 5.6 (2,067.7) 2,402.6 2.1 2,404.7
Interim consolidated balance sheet
(Reviewed) (Reviewed) (Audited)
1 September 2016 27 August 2015 3 March 2016
Notes £m £m £m
ASSETS
Non-current assets
Intangible assets 263.2 242.4 258.1
Property, plant and equipment 3,970.9 3,482.3 3,831.0
Investment in joint ventures 50.2 31.5 39.5
Investment in associate - 2.2 -
Derivative financial instruments 8 31.6 4.0 21.6
Trade and other receivables 8.3 7.8 7.7
4,324.2 3,770.2 4,157.9
Current assets
Inventories 46.7 38.2 44.8
Derivative financial instruments 8 6.8 1.0 3.2
Trade and other receivables 147.9 145.4 140.0
Cash and cash equivalents 7 73.2 163.9 57.1
274.6 348.5 245.1
Assets held for sale 2.6 0.3 2.3
Total assets 4,601.4 4,119.0 4,405.3
LIABILITIES
Current liabilities
Borrowings 7 132.7 85.2 94.0
Provisions 12.9 6.7 14.7
Derivative financial instruments 8 1.1 4.5 4.4
Income tax liabilities 60.1 46.1 41.2
Trade and other payables 529.8 473.8 538.2
736.6 616.3 692.5
Non-current liabilities
Borrowings 7 928.7 804.6 872.9
Provisions 33.1 38.4 22.7
Derivative financial instruments 8 12.5 10.2 9.6
Deferred income tax liabilities 73.4 69.1 94.7
Pension liability 9 403.5 430.9 288.1
Trade and other payables 21.8 18.5 20.1
1,473.0 1,371.7 1,308.1
Total liabilities 2,209.6 1,988.0 2,000.6
Net assets 2,391.8 2,131.0 2,404.7
EQUITY
Share capital 150.1 149.8 150.0
Share premium 64.2 59.9 62.6
Capital redemption reserve 12.3 12.3 12.3
Retained earnings 4,209.5 3,979.2 4,239.8
Currency translation reserve 19.3 (4.5) 5.6
Other reserves (2,063.6) (2,070.2) (2,067.7)
Equity attributable to equity holders of the parent 2,391.8 2,126.5 2,402.6
Non-controlling interest - 4.5 2.1
Total equity 2,391.8 2,131.0 2,404.7
Interim consolidated cash flow statement
(Reviewed) (Reviewed) (Audited)
6 months to1 September 2016 6 months to27 August 2015 Year to 3 March 2016
Notes £m £m £m
Profit for the period 200.7 196.3 387.3
Adjustments for:
Taxation charged on total operations 62.9 58.6 100.4
Net finance cost 4 18.1 19.7 40.4
Total income from joint ventures (1.0) (1.2) (3.3)
Total income from associate (0.7) (0.6) (0.9)
(Gain) / loss on disposal of property, plant and equipment and property reversions 3 (3.9) 14.8 20.9
Depreciation and amortisation 105.4 100.4 197.6
Impairment of property, plant and equipment 3 18.6 - 5.4
Restructuring costs 3 19.3 - -
Share-based payments 8.2 8.2 17.3
Other non-cash items 5.2 2.3 5.6
Cash generated from operations before working capital changes 432.8 398.5 770.7
Increase in inventories (1.7) (1.2) (7.6)
Increase in trade and other receivables (7.1) (21.5) (15.2)
Increase / (decrease) in trade and other payables 7.4 (1.7) 34.3
Cash generated from operations 431.4 374.1 782.2
Payments against provisions (12.1) (2.9) (15.1)
Pension payments 9 (43.7) (71.5) (84.3)
Interest paid (9.7) (10.2) (25.6)
Interest received 0.2 0.4 0.6
Corporation taxes paid (35.9) (35.3) (85.1)
Net cash flows from operating activities 330.2 254.6 572.7
Cash flows from investing activities
Purchase of property, plant and equipment 2 (312.9) (281.6) (680.3)
Purchase of intangible assets 2 (16.1) (11.6) (35.4)
Net proceeds / (costs) from disposal of property, plant and equipment 53.6 (0.4) (0.2)
Business combinations, net of cash acquired - (0.1) (9.2)
Capital contributions and loans to joint ventures (7.6) - (3.0)
Dividends from associate 0.4 0.4 0.8
Net cash flows from investing activities (282.6) (293.3) (727.3)
Cash flows from financing activities
Proceeds from issue of share capital 1.7 0.7 3.6
Increase / (reduction) in short-term borrowings 7 4.5 (71.2) 20.8
Proceeds from long-term borrowings 7 - 445.2 445.2
Increases in / (repayments of) long-term borrowings 7 73.9 (150.9) (101.9)
Renegotiation costs of long-term borrowings 7 (0.6) (1.9) (3.6)
Dividends paid 5 (112.6) (103.4) (155.1)
Net cash flows from financing activities (33.1) 118.5 209.0
Net increase in cash and cash equivalents 14.5 79.8 54.4
Opening cash and cash equivalents 57.1 2.1 2.1
Foreign exchange differences 1.6 (0.3) 0.6
Closing cash and cash equivalents 7 73.2 81.6 57.1
Reconciliation to cash and cash equivalents in the balance sheet
Cash and cash equivalents shown above 7 73.2 81.6 57.1
Add back overdrafts - 82.3 -
Cash and cash equivalents shown within current assets on the balance sheet 73.2 163.9 57.1
Notes to the accounts
1. Basis of accounting and preparation
The interim condensed consolidated financial statements were authorised for
issue in accordance with a resolution of the Board of Directors on 24 October
2016.
The interim condensed consolidated financial statements are prepared in
accordance with UK listing rules and with IAS 34 'Interim Financial
Reporting'. The interim financial report does not constitute statutory
accounts within the meaning of section 434 of the Companies Act 2006.
The financial information for the year ended 3 March 2016 is extracted from
the statutory accounts of the Group for that year and does not constitute
statutory accounts as defined in Section 435 of the Companies Act 2006. These
published accounts were prepared in accordance with International Financial
Reporting Standards (IFRSs) as adopted for use in the European Union, and
reported on by the auditor without qualification or statement under Sections
498(2) or (3) of the Companies Act 2006 and have been delivered to the
Registrar of Companies.
The interim condensed consolidated financial statements for the six months
ended 1 September 2016 and the comparatives to 27 August 2015 are unaudited
but have been reviewed by the auditor; a copy of their review report is
included at the end of this report.
A combination of the strong cash flows generated by the business, and the
significant available headroom on its credit facilities, support the
directors' view that the Group has sufficient funds available for it to meet
its foreseeable working capital requirements. The directors have concluded
therefore that the going concern basis of preparation remains appropriate.
The accounting policies adopted in the preparation of the interim condensed
consolidated financial statements are consistent with those followed in the
preparation of the Group's annual financial statements for the year ended 3
March 2016 except for the adoption of new Standards and Interpretations
applicable as of 4 March 2016.
The Group has adopted the following standards and interpretations which have
been assessed as having no financial impact or disclosure requirements at the
interim:
· The IASB's annual improvement process, 2012-2014;
· Amendments to IAS 1: Disclosure Initiative;
· Amendments to IAS 16 and IAS 41: Bearer Plants;
· Amendments to IAS 27: Equity Method in Separate Financial Statements;
· Amendments to IFRS 11: Accounting for Acquisitions of Interests in
Joint Operations; and
· Amendments to IAS 16 and IAS 38: Clarification of Acceptable Methods of
Depreciation and Amortisation.
2. Segmental analysis
For management purposes, the Group is organised into two strategic business
units (Premier Inn and Restaurants and Costa) based upon their different
products and services:
· Premier Inn and Restaurants provide services in relation to
accommodation and food; and
· Costa generates income from the operation of its branded, owned and
franchised coffee outlets.
The UK and International Premier Inn & Restaurants segments have been
aggregated on the grounds that the International segment is immaterial.
Management monitors the operating results of its strategic business units
separately for the purpose of making decisions about allocating resources and
assessing performance. Segment performance is measured based on underlying
operating profit. Included within the unallocated and elimination columns in
the tables below are the costs of running the public company. The unallocated
assets and liabilities are cash and debt balances (held and controlled by the
central treasury function), taxation, pensions, certain property, plant and
equipment, centrally held provisions and central working capital balances.
Inter-segment revenue is from Costa to the Premier Inn & Restaurants segment
and is eliminated on consolidation. Transactions were entered into on an
arm's length basis in a manner similar to transactions with third parties.
The following tables present revenue and profit information and certain asset
and liability information regarding business operating segments for the six
months to 1 September 2016 and 27 August 2015 and for the full year ended 3
March 2016.
Premier Inn Unallocated
and and Total
Restaurants Costa elimination operations
6 months to 1 September 2016 £m £m £m £m
Revenue
Underlying revenue from external customers 988.1 567.8 - 1,555.9
Inter-segment revenue - 1.9 (1.9) -
Total revenue 988.1 569.7 (1.9) 1,555.9
Underlying operating profit 271.5 64.6 (16.4) 319.7
Underlying net finance costs (Note 4) - - (12.7) (12.7)
Underlying profit before tax 271.5 64.6 (29.1) 307.0
Exceptional items and non underlying adjustments (Note 3):
Amortisation of acquired intangibles - (1.2) - (1.2)
IAS 19 income statement charge for pension finance cost - - (5.0) (5.0)
Net gain / (loss) on disposal of property, plant and equipment and propertyreversions 6.3 (1.7) (0.7) 3.9
PI International business exit (35.0) - - (35.0)
Restructuring costs (9.6) (1.1) - (10.7)
Settlement of historic VAT claim - 5.0 - 5.0
Exceptional net finance costs - (0.1) (0.3) (0.4)
Profit before tax 233.2 65.5 (35.1) 263.6
Tax expense (62.9)
Profit for the period 200.7
Assets and liabilities
Segment assets 3,963.5 495.3 - 4,458.8
Unallocated assets - - 142.6 142.6
Total assets 3,963.5 495.3 142.6 4,601.4
Segment liabilities (367.9) (134.2) - (502.1)
Unallocated liabilities - - (1,707.5) (1,707.5)
Total liabilities (367.9) (134.2) (1,707.5) (2,209.6)
Net assets 3,595.6 361.1 (1,564.9) 2,391.8
Other segment information
Share of profit from joint ventures 0.7 0.3 - 1.0
Share of profit from associate 0.7 - - 0.7
Investment in joint ventures and associates 39.0 11.2 - 50.2
Total property rent 68.7 58.2 - 126.9
Capital expenditure:
Property, plant and equipment - cash basis 257.6 55.3 - 312.9
Property, plant and equipment - accruals basis 227.5 57.4 - 284.9
Intangible assets 11.1 5.0 - 16.1
Depreciation - underlying (62.9) (34.2) - (97.1)
Amortisation - underlying (6.2) (0.9) - (7.1)
(7.1)
Premier Inn Unallocated
and and Total
Restaurants Costa elimination operations
6 months to 27 August 2015 £m £m £m £m
Revenue
Underlying revenue from external customers 926.9 512.9 - 1,439.8
Inter-segment revenue - 1.7 (1.7) -
Total revenue 926.9 514.6 (1.7) 1,439.8
Underlying operating profit 249.4 67.3 (15.1) 301.6
Underlying net finance costs (Note 4) - - (10.3) (10.3)
Underlying profit before tax 249.4 67.3 (25.4) 291.3
Exceptional items and non underlying adjustments (Note 3):
Amortisation of acquired intangibles - (2.1) - (2.1)
IAS 19 income statement charge for pension finance cost - - (9.1) (9.1)
Net loss on disposal of property, plant and equipment and propertyreversions (0.8) (1.5) (12.5) (14.8)
Intangible assets accelerated amortisation (7.2) (0.9) (2.0) (10.1)
Exceptional net finance costs - - (0.3) (0.3)
Profit before tax 241.4 62.8 (49.3) 254.9
Tax expense (58.6)
Profit for the period 196.3
Assets and liabilities
Segment assets 3,493.5 423.7 - 3,917.2
Unallocated assets - - 201.8 201.8
Total assets 3,493.5 423.7 201.8 4,119.0
Segment liabilities (298.9) (117.5) - (416.4)
Unallocated liabilities - - (1,571.6) (1,571.6)
Total liabilities (298.9) (117.5) (1,571.6) (1,988.0)
Net assets 3,194.6 306.2 (1,369.8) 2,131.0
Other segment information
Share of profit from joint ventures 1.0 0.2 - 1.2
Share of profit from associate 0.6 - - 0.6
Investment in joint ventures and associate 30.5 3.2 - 33.7
Total property rent 56.4 53.2 - 109.6
Capital expenditure:
Property, plant and equipment - cash basis 242.1 39.4 0.1 281.6
Property, plant and equipment - accruals basis 244.6 41.8 - 286.4
Intangible assets 10.8 0.8 - 11.6
Depreciation - underlying (53.3) (29.9) - (83.2)
Amortisation - underlying (4.0) (1.0) - (5.0)
(5.0)
Premier Inn Unallocated
and and Total
Restaurants Costa elimination operations
Year to 3 March 2016 £m £m £m £m
Revenue
Underlying revenue from external customers 1,822.0 1,099.8 - 2,921.8
Inter-segment revenue - 3.4 (3.4) -
Total revenue 1,822.0 1,103.2 (3.4) 2,921.8
Underlying operating profit 446.9 153.5 (31.6) 568.8
Underlying net finance costs (Note 4) - - (22.5) (22.5)
Underlying profit before tax 446.9 153.5 (54.1) 546.3
Exceptional items and non underlying adjustments (Note 3):
Amortisation of acquired intangibles - (4.3) - (4.3)
IAS 19 income statement charge for pension finance cost - - (17.2) (17.2)
Net loss on disposal of property, plant and equipment and propertyreversions (0.4) (5.5) (15.0) (20.9)
Intangible assets accelerated amortisation (7.2) (0.9) (2.0) (10.1)
Impairment (1.7) (6.0) - (7.7)
Impairment reversal 2.0 0.3 - 2.3
Exceptional net finance costs - - (0.7) (0.7)
Profit before tax 439.6 137.1 (89.0) 487.7
Tax expense (100.4)
Profit for the year 387.3
Assets and liabilities
Segment assets 3,842.2 444.4 - 4,286.6
Unallocated assets - - 118.7 118.7
Total assets 3,842.2 444.4 118.7 4,405.3
Segment liabilities (366.4) (136.8) - (503.2)
Unallocated liabilities - - (1,497.4) (1,497.4)
Total liabilities (366.4) (136.8) (1,497.4) (2,000.6)
Net assets 3,475.8 307.6 (1,378.7) 2,404.7
Other segment information
Share of profit from joint ventures 3.3 - - 3.3
Share of profit from associate 0.9 - - 0.9
Investment in joint ventures and associate 36.3 3.2 - 39.5
Total property rent 123.4 111.2 0.1 234.7
Capital expenditure:
Property, plant and equipment - cash basis 581.0 99.3 - 680.3
Property, plant and equipment - accruals basis 604.6 102.6 - 707.2
Intangible assets 32.2 3.2 - 35.4
Depreciation - underlying (112.0) (59.4) - (171.4)
Amortisation - underlying (9.0) (2.7) (0.1) (11.8)
(11.8)
3. Exceptional items and non underlying adjustments
6 months to1 September 2016£m 6 months to27 August 2015£m Year to 3 March 2016
£m
Exceptional items before finance costs and tax:
Operating costs;
Net gain / (loss) on disposal of property, plant and equipment and propertyreversions (a) 3.9 (14.8) (20.9)
PI International business exit (b) (35.0) - -
Restructuring costs (c) (10.7) - -
Settlement of historic VAT claim (d) 5.0 - -
Intangible assets accelerated amortisation - (10.1) (10.1)
Impairment of property, plant and equipment - - (7.7)
Impairment reversal - - 2.3
Exceptional operating costs (36.8) (24.9) (36.4)
Exceptional items before finance costs and tax (36.8) (24.9) (36.4)
Exceptional finance costs:
Unwinding of discount rate on provisions (e) (0.4) (0.3) (0.7)
(0.4) (0.3) (0.7)
Exceptional items before tax (37.2) (25.2) (37.1)
Non underlying adjustments made to underlying profit before tax to arrive at reported profit before tax:
Amortisation of acquired intangibles (1.2) (2.1) (4.3)
IAS 19 income statement charge for pension finance cost (5.0) (9.1) (17.2)
(6.2) (11.2) (21.5)
Items included in reported profit before tax, but excluded in arriving at underlying profit before tax (43.4) (36.4) (58.6)
6 months to1 September 2016£m 6 months to27 August 2015£m Year to 3 March 2016£m
Tax adjustments included in reported profit after tax, but excluded in arriving at underlying profit after tax:
Tax on exceptional items
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