REG - WPP PLC - 2015 Interim Results <Origin Href="QuoteRef">WPP.L</Origin> - Part 2
26/08/2015 07:01
- Part 2: For the preceding part double click ID:nRSZ0851Xa
5.2 4.7 10,064.8
Operating costs 4 (4,251.8) (4,260.6) 0.2 0.7 (8,557.5)
Operating profit 788.9 531.1 48.5 48.2 1,507.3
Share of results of associates 4 16.0 28.7 (44.3) (43.3) 61.9
Profit before interest and taxation 804.9 559.8 43.8 43.6 1,569.2
Finance income 5 38.1 43.0 (11.4) (5.9) 94.7
Finance costs 5 (111.5) (133.4) 16.4 17.7 (262.7)
Revaluation of financial instruments 5 (21.8) 21.7 - - 50.7
Profit before taxation 709.7 491.1 44.5 45.6 1,451.9
Taxation 7 (108.6) (94.9) (14.4) (18.8) (300.4)
Profit for the period 601.1 396.2 51.7 51.8 1,151.5
Attributable to:
Equity holders of the parent 566.2 364.8 55.2 55.0 1,077.2
Non-controlling interests 34.9 31.4 (11.1) (13.4) 74.3
601.1 396.2 51.7 51.8 1,151.5
Headline PBIT 6,19 669.1 622.0 7.6 7.9 1,680.6
Net sales margin 6,19 13.3% 13.0% 0.32 0.42 16.7%
Headline PBT 19 595.7 531.6 12.1 13.2 1,512.6
Earnings per share
Basic earnings per ordinary share 9 43.7p 27.7p 57.8 57.9 82.4p
Diluted earnings per ordinary share 9 43.0p 27.0p 59.3 58.8 80.5p
1 The basis for calculating the constant currency percentage changes shown above and in the notes to this appendix are
described in the glossary attached to this appendix.
2 Margin points.
Unaudited condensed consolidated interim statement of comprehensive income for the six months ended 30 June 2015
£ million Six months ended30 June2015 Six monthsended 30 June 2014 Yearended31 December 2014
Profit for the period 601.1 396.2 1,151.5
Items that may be reclassified subsequently to profit or loss:
Exchange adjustments on foreign currency net investments (316.0) (315.0) (221.2)
(Loss)/gain on revaluation of available for sale investments (2.1) 46.1 64.6
(318.1) (268.9) (156.6)
Items that will not be reclassified subsequently to profit or loss:
Actuarial loss on defined benefit pension plans - - (86.6)
Deferred tax on defined benefit pension plans - - 62.1
- - (24.5)
Other comprehensive loss relating to the period (318.1) (268.9) (181.1)
Total comprehensive income relating to the period 283.0 127.3 970.4
Attributable to:
Equity holders of the parent 257.0 104.6 893.0
Non-controlling interests 26.0 22.7 77.4
283.0 127.3 970.4
Unaudited condensed consolidated interim cash flow statement for the six months ended 30 June 2015
£ million Notes Six months ended 30 June 2015 Six months ended 30 June 2014 Year ended 31 December 2014
Net cash (outflow)/inflow from operating activities 10 (180.7) (17.3) 1,703.7
Investing activities
Acquisitions and disposals 10 (459.3) (219.7) (489.1)
Purchase of property, plant and equipment (73.1) (80.1) (177.9)
Purchase of other intangible assets (including capitalised computer software) (17.0) (15.3) (36.5)
Proceeds on disposal of property, plant and equipment 11.2 1.1 5.9
Net cash outflow from investing activities (538.2) (314.0) (697.6)
Financing activities
Share option proceeds 5.4 6.8 25.0
Cash consideration for non-controlling interests 10 (7.9) (1.8) (5.6)
Share repurchases and buybacks 10 (405.4) (390.2) (510.8)
Net increase/(decrease) in borrowings 10 141.1 (33.8) 465.2
Financing and share issue costs (9.0) (0.2) (27.5)
Equity dividends paid - - (460.0)
Dividends paid to non-controlling interests in subsidiary undertakings (25.7) (21.7) (57.7)
Net cash outflow from financing activities (301.5) (440.9) (571.4)
Net (decrease)/increase in cash and cash equivalents (1,020.4) (772.2) 434.7
Translation differences (39.9) (86.3) (70.3)
Cash and cash equivalents at beginning of period 2,247.6 1,883.2 1,883.2
Cash and cash equivalents at end of period 10 1,187.3 1,024.7 2,247.6
Reconciliation of net cash flow to movement in net debt:
Net (decrease)/increase in cash and cash equivalents (1,020.4) (772.2) 434.7
Cash (inflow)/outflow from (increase)/decrease in debt financing (132.1) 34.0 (437.7)
Other movements (108.0) 5.7 23.8
Translation differences 153.2 15.7 (55.8)
Movement of net debt in the period (1,107.3) (716.8) (35.0)
Net debt at beginning of period (2,275.4) (2,240.4) (2,240.4)
Net debt at end of period 11 (3,382.7) (2,957.2) (2,275.4)
Unaudited condensed consolidated interim balance sheet as at 30 June 2015
£ million Notes 30 June2015 30 June2014 31 December2014
Non-current assets
Intangible assets:
Goodwill 12 10,057.3 9,465.7 9,979.4
Other 13 1,714.2 1,662.6 1,668.9
Property, plant and equipment 731.1 742.7 772.5
Interests in associates and joint ventures 694.3 755.0 759.9
Other investments 920.9 331.2 669.2
Deferred tax assets 248.3 109.7 239.7
Trade and other receivables 14 141.9 132.4 148.6
14,508.0 13,199.3 14,238.2
Current assets
Inventory and work in progress 321.7 324.9 327.3
Corporate income tax recoverable 168.1 137.9 145.6
Trade and other receivables 14 9,985.0 9,322.6 9,530.0
Cash and short-term deposits 1,353.0 1,208.0 2,512.7
11,827.8 10,993.4 12,515.6
Current liabilities
Trade and other payables 15 (11,359.8) (10,493.3) (11,784.0)
Corporate income tax payable (38.3) (55.7) (158.6)
Bank overdrafts and loans (518.7) (952.5) (653.2)
(11,916.8) (11,501.5) (12,595.8)
Net current liabilities (89.0) (508.1) (80.2)
Total assets less current liabilities 14,419.0 12,691.2 14,158.0
Non-current liabilities
Bonds and bank loans (4,217.0) (3,212.7) (4,134.9)
Trade and other payables 16 (707.5) (511.3) (624.9)
Corporate income tax payable (533.6) (389.9) (441.2)
Deferred tax liabilities (696.8) (643.8) (667.6)
Provisions for post-employment benefits (283.3) (238.9) (296.2)
Provisions for liabilities and charges (173.2) (147.5) (166.4)
(6,611.4) (5,144.1) (6,331.2)
Net assets 7,807.6 7,547.1 7,826.8
Equity
Called-up share capital 17 132.7 135.0 132.6
Share premium account 513.3 490.1 508.0
Shares to be issued 0.1 0.4 0.3
Other reserves (226.0) (47.3) 36.2
Own shares (572.2) (535.9) (283.7)
Retained earnings 7,619.6 7,204.2 7,106.7
Equity share owners' funds 7,467.5 7,246.5 7,500.1
Non-controlling interests 340.1 300.6 326.7
Total equity 7,807.6 7,547.1 7,826.8
Unaudited condensed consolidated interim statement of changes in equity for the six months ended 30 June 2015
£ million Called-up Share Shares tobe issued Other Own shares Retained Total equity share owners' funds Non-controlling interests Total
share premium reserves earnings
capital account
Balance at 1 January 2015 132.6 508.0 0.3 36.2 (283.7) 7,106.7 7,500.1 326.7 7,826.8
Ordinary shares issued 0.1 5.3 (0.2) - - 0.1 5.3 - 5.3
Treasury share additions - - - - (345.7) - (345.7) - (345.7)
Treasury share allocations - - - - 3.1 (3.1) - - -
Net profit for the period - - - - - 566.2 566.2 34.9 601.1
Exchange adjustments on foreign currency net investments - - - (307.1) - - (307.1) (8.9) (316.0)
Loss on revaluation of available for sale investments - - - (2.1) - - (2.1) - (2.1)
Comprehensive (loss)/income - - - (309.2) - 566.2 257.0 26.0 283.0
Dividends paid - - - - - - - (25.7) (25.7)
Non-cash share-based incentive plans (including share options) - - - - - 48.5 48.5 - 48.5
Tax adjustment on share-based payments - - - - - 21.8 21.8 - 21.8
Net movement in own shares held by ESOP Trusts - - - - 54.1 (113.8) (59.7) - (59.7)
Recognition/remeasurement of financial instruments - - - (33.0) - 0.4 (32.6) - (32.6)
Share purchases - close period commitments - - - 80.0 - 2.9 82.9 - 82.9
Acquisition of subsidiaries1 - - - - - (10.1) (10.1) 13.1 3.0
Balance at 30 June 2015 132.7 513.3 0.1 (226.0) (572.2) 7,619.6 7,467.5 340.1 7,807.6
1 Acquisition of subsidiaries represents movements in retained earnings and non-controlling interests arising from
increases in ownership of existing subsidiaries and recognition of non-controlling interests on new acquisitions.
Unaudited condensed consolidated interim statement of changes in equity for the six months ended 30 June 2015 (continued)
£ million Called-up Share Shares tobe issued Other Own shares Retained Total equity share owners' funds Non-controlling interests Total
share premium reserves earnings
capital account
Balance at 1 January 2014 134.9 483.4 0.5 317.3 (253.0) 6,903.7 7,586.8 259.7 7,846.5
Ordinary shares issued 0.1 6.7 (0.1) - - 0.1 6.8 - 6.8
Treasury share additions - - - - (316.2) - (316.2) - (316.2)
Treasury share allocations - - - - 0.5 (0.5) - - -
Net profit for the period - - - - - 364.8 364.8 31.4 396.2
Exchange adjustments on foreign currency net investments - - - (306.3) - - (306.3) (8.7) (315.0)
Gain on revaluation of available for sale investments - - - 46.1 - - 46.1 - 46.1
Comprehensive (loss)/ income - - - (260.2) - 364.8 104.6 22.7 127.3
Dividends paid - - - - - - - (21.7) (21.7)
Non-cash share-based incentive plans (including stock options) - - - - - 53.8 53.8 - 53.8
Tax adjustment on share-based payments - - - - - (6.1) (6.1) - (6.1)
Net movement in own shares held by ESOP Trusts - - - - 32.8 (106.8) (74.0) - (74.0)
Recognition/remeasurement of financial instruments - - - (28.4) - (4.0) (32.4) - (32.4)
Share purchases - close period commitments - - - (76.0) - - (76.0) - (76.0)
Acquisition of subsidiaries1 - - - - - (0.8) (0.8) 39.9 39.1
Balance at 30 June 2014 135.0 490.1 0.4 (47.3) (535.9) 7,204.2 7,246.5 300.6 7,547.1
Ordinary shares issued 0.3 17.9 (0.1) - - 0.1 18.2 - 18.2
Treasury share additions - - - - (96.3) - (96.3) - (96.3)
Treasury share allocations - - - 0.1 (0.1) - - -
Treasury share cancellations (2.7) - - 2.7 332.5 (332.5) - - -
Net profit for the period - - - - - 712.4 712.4 42.9 755.3
Exchange adjustments on foreign currency net investments - - - 82.0 - - 82.0 11.8 93.8
Gain on revaluation of available for sale investments - - - 18.5 - - 18.5 - 18.5
Actuarial loss on defined benefit pension plans - - - - - (86.6) (86.6) - (86.6)
Deferred tax on defined benefit pension plans - - - - - 62.1 62.1 - 62.1
Comprehensive income - - - 100.5 - 687.9 788.4 54.7 843.1
Dividends paid - - - - - (460.0) (460.0) (36.0) (496.0)
Non-cash share-based incentive plans (including stock options) - - - - - 48.4 48.4 - 48.4
Tax adjustment on share-based payments - - - - - 5.5 5.5 - 5.5
Net movement in own shares held by ESOP Trusts - - - - 15.9 (40.2) (24.3) - (24.3)
Recognition/remeasurement of financial instruments - - - (15.7) - (0.1) (15.8) - (15.8)
Share purchases - close period commitments - - - (4.0) - (3.9) (7.9) - (7.9)
Acquisition of subsidiaries1 - - - - - (2.6) (2.6) 7.4 4.8
Balance at 31 December 2014 132.6 508.0 0.3 36.2 (283.7) 7,106.7 7,500.1 326.7 7,826.8
1 Acquisition of subsidiaries represents movements in retained earnings and non-controlling interests arising from
increases in ownership of existing subsidiaries and recognition of non-controlling interests on new acquisitions.
Notes to the unaudited condensed consolidated interim financial statements
1. Basis of accounting
The unaudited condensed consolidated interim financial statements are prepared under the historical cost convention, except
for the revaluation of certain financial instruments as disclosed in our accounting policies.
2. Accounting policies
The unaudited condensed consolidated interim financial statements comply with the recognition and measurement criteria of
International Financial Reporting Standards (IFRS) as adopted by the European Union and issued by the International
Accounting Standards Board (IASB), IAS 34 Interim Financial Reporting and with the accounting policies of the Group which
were set out on pages 181 to 188 of the 2014 Annual Report and Accounts. No changes have been made to the Group's
accounting policies in the period ended 30 June 2015.
The current basis of accounting for the parent company (WPP plc) is UK GAAP, which the Financial Reporting Council has
announced is to change for reporting periods commencing on or after 1 January 2015. The Company has chosen FRS 101 Reduced
Disclosure Framework as its basis of accounting going forward, and that will be adopted for reporting from 2015.
FRS 101 paragraph 5(a) requires the Company to give its share owners notice of the adoption of the new standard, and to
proceed with the proposal provided that a share owner or share owners holding in aggregate 5% or more of the Company's
issued shares do not object to the proposal, which they may do in writing to the Company at its registered office by no
later than 16 October 2015. The address of the registered office is Queensway House, Hilgrove Street, St Helier, Jersey,
JE1 1ES.
Statutory Information and Independent Review
The unaudited condensed consolidated interim financial statements for the six months to 30 June 2015 and 30 June 2014 do
not constitute statutory accounts. The financial information for the year ended 31 December 2014 does not constitute
statutory accounts. The statutory accounts for the year ended 31 December 2014 have been delivered to the Jersey Registrar
and received an unqualified auditors' report. The interim financial statements are unaudited but have been reviewed by the
auditors and their report is set out on page 45.
The announcement of the interim results was approved by the board of directors on 26 August 2015.
3. Currency conversion
The reporting currency of the Group is pound sterling and the unaudited condensed consolidated interim financial statements
have been prepared on this basis. The 2015 unaudited condensed consolidated interim income statement is prepared using,
among other currencies, average exchange rates of US$1.5239 to the pound (period ended 30 June 2014: US$1.6689; year ended
31 December 2014: US$1.6475) and E1.3659 to the pound (period ended 30 June 2014: E1.2176; year ended 31 December 2014:
E1.2410). The unaudited condensed consolidated interim balance sheet as at 30 June 2015 has been prepared using the
exchange rates on that day of US$1.5725 to the pound (30 June 2014: US$1.7102; 31 December 2014: US$1.5581) and E1.4100 to
the pound (30 June 2014: E1.2494; 31 December 2014: E1.2874).
The basis for calculating the constant currency percentage changes, shown on the face of the unaudited condensed
consolidated interim income statement, is described in the glossary attached to this appendix.
Notes to the unaudited condensed consolidated interim financial statements (continued)
4.Operating costs and share of results of associates
£ million Six months ended 30 June 2015 Six months ended 30 June 2014 Year ended 31 December 2014
Staff costs 3,303.2 3,192.2 6,440.5
Establishment costs 358.8 351.3 711.3
Other operating costs 589.8 717.1 1,405.7
Total operating costs 4,251.8 4,260.6 8,557.5
Staff costs include:
£ million Six months ended 30 June 2015 Six months ended 30 June 2014 Year ended 31 December 2014
Wages and salaries 2,277.8 2,198.5 4,467.8
Cash-based incentive plans 63.1 59.2 210.7
Share-based incentive plans 48.5 53.8 102.2
Social security costs 302.3 296.8 567.8
Pension costs 81.5 76.2 148.9
Severance 15.9 27.5 37.4
Other staff costs 514.1 480.2 905.7
3,303.2 3,192.2 6,440.5
Staff cost to net sales ratio 65.5% 66.6% 64.0%
Other operating costs include:
£ million Six months ended 30 June 2015 Six months ended 30 June 2014 Year ended 31 December 2014
Amortisation and impairment of acquired intangible assets 66.7 74.0 147.5
Goodwill impairment - - 16.9
Gains on disposal of investments and subsidiaries (91.9) (17.1) (186.3)
Gains on remeasurement of equity interest on acquisition of controlling interest (140.2) (5.9) (9.2)
Investment write-downs - - 7.3
Restructuring costs 21.2 9.1 127.6
Gains on remeasurement of equity interest on acquisition of controlling interest in 2015 primarily comprise gains in
relation to the acquisition of a majority stake in IBOPE in Latin America.
Gains on disposal of investments and subsidiaries in 2015 include £43.6 million of gains arising on the sale of certain
Kantar internet measurement businesses to comScore Inc in consideration for newly issued equity in the buyer and £29.7
million of gains arising on the sale of the Group's minority stake in eRewards.
Gains on disposal of investments and subsidiaries of £186.3 million in the year ended 31 December 2014 include £150.6
million of gains arising on the sale of the Xaxis for Publishers business to AppNexus Inc and the Kantar Media US
television measurement business to Rentrak Inc. In both cases, consideration received was in the form of equity issued by
the buyer.
4. Operating costs and share of results of associates (continued)
In 2015, restructuring costs of £21.2 million (period ended 30 June 2014: £9.1 million) predominantly comprise costs
resulting from the project to transform and rationalise the Group's IT services and infrastructure.
In the year ended 31 December 2014, restructuring costs of £127.6 million comprise £88.7 million of costs (including £67.4
million of severance costs) arising from a structural reassessment of certain of the Group's operations, primarily in the
mature markets of Western Europe; and £38.9 million of costs resulting from the project to transform and rationalise the
Group's IT services and infrastructure.
Share of results of associates include:
£ million Six months ended 30 June 2015 Six months ended 30 June 2014 Year ended 31 December 2014
Share of profit before interest and taxation 39.2 44.7 101.8
Share of exceptional losses (8.4) (2.1) (7.6)
Share of interest and non-controlling interests (0.8) (0.8) (3.1)
Share of taxation (14.0) (13.1) (29.2)
16.0 28.7 61.9
5. Finance income, finance costs and revaluation of financial instruments
Finance income includes:
£ million Six months ended 30 June 2015 Six months ended 30 June 2014 Year ended 31 December 2014
Income from available for sale investments 10.2 11.3 26.0
Interest income 27.9 31.7 68.7
38.1 43.0 94.7
Finance costs include:
£ million Six months ended 30 June 2015 Six months ended 30 June 2014 Year ended 31 December 2014
Net interest expense on pension plans 3.8 4.0 8.0
Interest on other long-term employee benefits 1.2 0.9 1.9
Interest payable and similar charges 106.5 128.5 252.8
111.5 133.4 262.7
Revaluation of financial instruments include:
£ million Six months ended 30 June 2015 Six months ended 30 June 2014 Year ended 31 December 2014
Movements in fair value of treasury instruments (5.9) 19.7 31.3
Movements in fair value of other derivatives 15.9 - 15.0
Revaluation of put options over non-controlling interests (5.8) 0.1 (8.8)
Revaluation of payments due to vendors (earnout agreements) (26.0) 1.9 13.2
(21.8) 21.7 50.7
6. Segmental analysis
Reported contributions by operating sector were as follows:
£ million Six months ended 30 June 2015 Six months ended 30 June 2014 Year ended 31 December 2014
Revenue
Advertising and Media Investment Management 2,638.8 2,390.6 5,134.3
Data Investment Management 1,173.8 1,176.8 2,429.3
Public Relations & Public Affairs 458.7 435.4 891.9
Branding & Identity, Healthcare and Specialist Communications 1,568.1 1,465.9 3,073.4
5,839.4 5,468.7 11,528.9
Net sales
Advertising and Media Investment Management 2,221.1 2,117.9 4,502.0
Data Investment Management 856.7 842.5 1,748.9
Public Relations & Public Affairs 450.3 430.3 880.4
Branding & Identity, Healthcare and Specialist Communications 1,512.6 1,401.0 2,933.5
5,040.7 4,791.7 10,064.8
Headline PBIT1
Advertising and Media Investment Management 330.4 312.0 836.2
Data Investment Management 100.6 88.1 272.7
Public Relations & Public Affairs 66.0 64.7 139.2
Branding & Identity, Healthcare and Specialist Communications 172.1 157.2 432.5
669.1 622.0 1,680.6
Net sales margin2
Advertising and Media Investment Management 14.9% 14.7% 18.6%
Data Investment Management 11.7% 10.5% 15.6%
Public Relations & Public Affairs 14.7% 15.0% 15.8%
Branding & Identity, Healthcare and Specialist Communications 11.4% 11.2% 14.7%
13.3% 13.0% 16.7%
Total assets
Advertising and Media Investment Management 12,363.6 11,915.8 12,250.5
Data Investment Management 3,703.9 3,337.0 3,427.1
Public Relations & Public Affairs 1,709.8 1,654.9 1,744.7
Branding & Identity, Healthcare and Specialist Communications 6,789.1 5,829.4 6,433.5
Segment assets 24,566.4 22,737.1 23,855.8
Unallocated corporate assets3 1,769.4 1,455.6 2,898.0
26,335.8 24,192.7 26,753.8
1 Headline PBIT is defined in note 19.
2 Net sales margin is defined in note 19.
3 Unallocated corporate assets are corporate income tax recoverable, deferred tax assets and cash and short term deposits.
6. Segmental analysis (continued)
Reported contributions by geographical area were as follows:
£ million Six months ended 30 June 2015 Six months ended 30 June 2014 Year ended 31 December 2014
Revenue
North America1 2,164.6 1,878.1 3,899.9
United Kingdom 860.0 783.6 1,640.3
Western Continental Europe 1,143.2 1,243.9 2,568.8
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 1,671.6 1,563.1 3,419.9
5,839.4 5,468.7 11,528.9
Net sales
North America1 1,877.2 1,677.7 3,471.7
United Kingdom 722.9 665.2 1,396.0
Western Continental Europe 964.8 1,052.4 2,142.6
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 1,475.8 1,396.4 3,054.5
5,040.7 4,791.7 10,064.8
Headline PBIT2
North America1 307.5 250.5 621.8
United Kingdom 92.0 90.9 221.2
Western Continental Europe 102.8 97.8 277.2
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 166.8 182.8 560.4
669.1 622.0 1,680.6
Net sales margin3
North America1 16.4% 14.9% 17.9%
United Kingdom 12.7% 13.7% 15.8%
Western Continental Europe 10.7% 9.3% 12.9%
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 11.3% 13.1% 18.3%
13.3% 13.0% 16.7%
1 North America includes the US with revenue of £2,048.3 million (period ended 30 June 2014: £1,766.9 million; year ended
31 December 2014: £3,664.9 million), net sales of £1,773.5 million (period ended 30 June 2014: £1,573.1 million; year ended
31 December 2014: £3,254.2 million) and headline PBIT of £295.0 million (period ended 30 June 2014: £237.5 million; year
ended 31 December 2014: £588.2 million).
2 Headline PBIT is defined in note 19.
3 Net sales margin is defined in note 19.
7. Taxation
The headline tax rate was 20.0% (30 June 2014: 20.0%; 31 December 2014: 20.0%). The tax rate on reported PBT was 15.3% (30
June 2014: 19.3%; 31 December 2014: 20.7%) largely because the tax charge on gains on remeasurement of equity interest on
acquisition of controlling interest and on gains on disposal of investments and subsidiaries was minimal.
The tax charge comprises:
£ million Six months ended 30 June 2015 Six months ended 30 June 2014 Year ended 31 December 2014
Corporation tax
Current year 119.3 98.5 373.5
Prior years 9.2 5.5 4.4
Charge relating to gains on disposal of investments and subsidiaries 0.8 - 21.4
Credit relating to restructuring costs (6.4) - -
122.9 104.0 399.3
Deferred tax
Current year (6.1) 2.2 (69.7)
Net credit in relation to the amortisation of acquired intangible assets and other goodwill items (6.6) (11.3) (23.2)
Charge/(credit) relating to restructuring costs 1.7 - (14.1)
Gains on disposal of investments and subsidiaries - - 13.8
(11.0) (9.1) (93.2)
Prior years (3.3) - (5.7)
(14.3) (9.1) (98.9)
Tax charge 108.6 94.9 300.4
The calculation of the headline tax rate is as follows:
£ million Six months ended 30 June 2015 Six months ended30 June2014 Year ended 31 December 2014
Headline PBT1 595.7 531.6 1,512.6
Tax charge 108.6 94.9 300.4
Tax credit relating to restructuring costs 6.4 - -
Tax charge relating to gains on disposal of investments and subsidiaries (0.8) - (21.4)
Deferred tax (charge)/credit relating to restructuring costs (1.7) - 14.1
Deferred tax relating to gains on disposal of investments and subsidiaries - - (13.8)
Net credit in relation to the amortisation of acquired intangible assets and other goodwill items 6.6 11.3 23.2
Headline tax charge 119.1 106.2 302.5
Headline tax rate 20.0% 20.0% 20.0%
1 Headline PBT is defined in note 19.
8. Ordinary dividends
The Board has recommended an interim dividend of 15.91p (2014: 11.62p) per ordinary share. This is expected to be paid on 9
November 2015 to share owners on the register at 9 October 2015. The Board recommended a final dividend of 26.58p per
ordinary share in respect of 2014. This was paid on 6 July 2015.
9. Earnings per share
Basic EPS
The calculation of basic reported and headline EPS is as follows:
Six months ended 30 June 2015 Six months ended 30 June 2014 +/(-)% ConstantCurrency+/(-)% Year ended 31 December 2014
Reported earnings1 (£ million) 566.2 364.8 1,077.2
Headline earnings (£ million) (note 19) 441.7 394.0 1,135.8
Average shares used in basic EPS calculation (million) 1,294.6 1,318.7 1,307.4
Reported EPS 43.7p 27.7p 57.8 57.9 82.4p
Headline EPS 34.1p 29.9p 14.0 14.6 86.9p
Diluted EPS
The calculation of diluted reported and headline EPS is as follows:
Six months ended 30 June 2015 Six months ended 30 June 2014 +/(-)% ConstantCurrency+/(-)% Year ended 31 December 2014
Diluted reported earnings (£ million) 566.2 364.8 1,077.2
Diluted headline earnings (£ million) 441.7 394.0 1,135.8
Shares used in diluted EPS calculation (million) 1,317.1 1,349.2 1,337.5
Diluted reported EPS 43.0p 27.0p 59.3 58.8 80.5p
Diluted headline EPS 33.5p 29.2p 14.7 15.2 84.9p
Diluted EPS has been calculated based on the reported and headline earnings amounts above.
A reconciliation between the shares used in calculating basic and diluted EPS is
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