Half-yearly Report
25 July 2013
Half year results for the 6 months to 30 June 2013
Record sales growth and good financial performance
Financial highlights Half year 2013 Half year 2012 Change
Revenue £1,819m £1,607m + 13%
Underlying operating profit [1] £226.8m £214.1m + 6%
Underlying profit before tax [1] £205.2m £186.4m + 10%
Underlying earnings per share [1] 25.8p 23.7p + 9%
Interim dividend per share 8.7p 7.9p + 10%
[1] Adjusted for new pension standard, IAS19 (R). Excludes non-underlying
items being: intangible amortisation and acquisition expenses of £62m (H1
2012: £47.4m), the non-cash impact of mark to market movement on financial
instruments of £14.3m credit (H1 2012: £0.5m credit). After these
non-underlying items: reported operating profit is £164.8m (H1 2012: £166.7m),
reported profit before tax is £157.5m (H1 2012: £139.5m) and reported earnings
per share is 20.05p (H1 2012: 18.17p).
Key points
Delivering long term growth
- A record £2.0bn of major contract wins secured in H1 2013 (H1
2012: £1.1bn) [2] including:
- Telefónica UK (O2), Capita's largest ever contract win by annual
value
- Cabinet Office, Best Practice IP joint venture
- Carphone Warehouse, customer management contract
- London Borough of Barnet, property services contract
- Contract win rate of higher than 1 in 2 (by value)
- Organic growth of 3%; full year organic growth expectation now at
least 8%
- Significant level of sales activity; pipeline steadily
replenishing, now £4.2bn (Feb 2013: £5.2bn)
- Selective acquisitions supporting organic growth; £198m invested
to date in 2013
Good financial performance
- Revenue up 13% to £1.8bn (H1 2012: £1.6bn)
- Underlying profit before tax [1] up 10% to £205.2m (H1 2012: £186.4m)
- Underlying operating margin [1] of 12.5% (H1 2012: 13.3%)
- Operating cash flow up 20% to £242m (H1 2012: £201m) and 107% cash
conversion (H1 2012: 94%)
- Gearing remains at 2.2 times net debt to EBITDA
Paul Pindar, Chief Executive of Capita plc, commented:
"Our strong sales performance over the last 12 months and contributions from
2012 and 2013 acquisitions provide us with excellent revenue visibility for
the full year 2013 and already deliver significant incremental revenue growth
in 2014. The return of strong organic growth, improved cash conversion, a
replenished bid pipeline and a good pipeline of potential acquisitions,
underpin our confidence in full year performance and provide a strong platform
for further progress in 2014 and beyond.
"We have reported another period of very strong sales growth in the first 6
months of 2013, with over £2.0bn of wins secured with clients including
Carphone Warehouse, the Cabinet Office and Telefónica UK (O2). This follows a
record year of sales wins in 2012 and we are therefore implementing a high
number of major new contracts throughout 2013, including the two largest new
contracts in Capita's history.
"Our sales performance has been achieved due to the unrivalled breadth of our
service offering which has been built up through both internal development and
a series of small to medium sized acquisitions over the past 25 years. We have
continued to enhance our client propositions through further acquisitions this
year, spending £198m on 9 businesses, and we have further attractive potential
opportunities in our acquisition pipeline."
[1] Adjusted for new pension standard, IAS19 (R). Excludes non-underlying
items being: intangible amortisation and acquisition expenses of £62m (H1
2012: £47.4m), the non-cash impact of mark to market movement on financial
instruments of £14.3m credit (H1 2012: £0.5m credit). After these
non-underlying items: reported operating profit is £164.8m (H1 2012: £166.7m),
reported profit before tax is £157.5m (H1 2012: £139.5m) and reported earnings
per share is 20.05p (H1 2012: 18.17p).
[2] As a result of the adjustment we made to the criteria of our pipeline
effective from 1 January 2013, we now report all bids and major sales wins
worth £25m or above (previously £10m or above). The major sales wins figure
for H1 2012, which was reported at £1.3bn in July 2012, has therefore been
restated to £1.1bn to reflect this change. Under the previous criteria,
today's reported H1 2013 major contract wins of £2.0bn would have been
approximately £2.1bn.
Analyst presentation
Paul Pindar, Chief Executive of Capita plc, will host an analyst presentation
and conference call in London at 8.30am UK time today.
There will be a conference call and live webcast of the full event. Details
can be found at www.capita.co.uk/investors
(Please dial into the call in time to allow for registration)
8.30am conference call details below:
Dial-in number: + 44 20 3059 8125
Replay: A replay of the conference call will be available for 7 days by
dialling + 44 121 260 4861 (access code is 5238533#).
For further information:
Capita plc Tel: 020 7799 1525
Paul Pindar, Chief Executive
Shona Nichols, Corporate Communications
Director
Capita Press Office Tel: 020 7654 2152 or
020 7654 2399 out of
hours
FTI Consulting Tel: 020 7269 7291
Andrew Lorenz
Capita plc is the UK's leading provider of business process management (BPM)
and integrated professional support services. With 52,500 people at more than
350 sites, including 70 business centres across the UK, Europe, India and
South Africa, the Group uses its expertise, infrastructure and scale benefits
to transform its clients' services, driving down costs and adding value.
Capita is quoted on the London Stock Exchange (CPI.L), and is a constituent of
the FTSE 100 with 2012 revenue of £3.4 billion. Further information on Capita
plc can be found at: www.capita.co.uk.
Capita plc
Results for the 6 months to 30 June 2013
Overview
Capita has delivered strong operational and financial performance for the
first half of 2013 and achieved another highly successful sales period,
securing £2.0bn (H1 2012: £1.1bn) of major contract wins to date in 2013.
Capita is today reporting robust financial results for the first 6 months of
the year with revenue increasing by 13% to £1,819m (H1 2012: £1,607m),
underlying operating profit [3] up 6% to £226.8m (H1 2012: £214.1m) and
underlying profit before taxation [3] increasing by 10% to £205.2m (H1 2012:
£186.4m). Underlying earnings per share [3] grew by 9% to 25.8p (H1 2012:
23.7p) and we have increased our dividend for the half year by 10% to 8.7p per
share (H1 2012: 7.9p).
The current outsourcing market is active and we are seeing a high level of
bidding activity across both the UK public and private sectors, reflected in
our major sales wins and steadily replenishing bid pipeline. As the UK's
leading provider of customer and business process management (BPM) services,
we continue to develop our propositions in our established markets, notably
central and local government and education and also to build our offering in
our newer market areas, including justice and emergency services, health and
the private sector, particularly telecoms, retail and utilities.
As a result of the strong sales performance reported over the previous 12
months and following the recent contract win with Telefónica UK (O2), our
largest ever contract win by annual value, we raised our organic growth
expectations for the full year from 6% to at least 8% and we remain confident
of achieving this target.
We continue to secure small to medium sized acquisitions which directly
support our sales offering by enabling us to enter new markets and evolve and
enhance our sales propositions. To date in 2013, we have invested £198m in
acquiring 9 companies across a number of areas including customer and debt
management, justice and emergency services, education and workplace services.
The majority of our underlying businesses are trading well, in particular the
Customer Management & International, Workplace Services and Investor and
Banking Services divisions. The trading activities of 2 of our divisions,
Property Services and parts of our IT business, continue to be affected by
challenging economic conditions. We have therefore taken steps to strengthen
the management and operational teams which will support the long term
performance of these businesses. As our General Insurance operations continue
to face challenges in some of their more competitive market segments, we are
undertaking a review to determine the future positioning of operations in
these areas.
Financial update
Revenue - In the half year 2013, revenue increased by 13% to £1,819m (H1 2012:
£1,607m). This comprised 3% organic growth and 10% from acquisitions completed
in 2012 (6%) and to date in 2013 (4%).
Operating profit & margin - In H1 2013, the Group's underlying operating
margin was 80bp lower at 12.5% (H1 2012: 13.3%) [3].
[3] See footnote 1.
Following a successful sales period over the last 9 months, we are undertaking
a record volume of new contract implementations in 2013 with their associated
start up costs. In the first half, large scale implementations included the
Staffordshire County Council joint venture, the 2 Personal Independence
Payment assessments contracts (Central England & Wales and Northern Ireland),
Fire Service College and Carphone Warehouse.
We are also integrating a number of larger acquisitions including Reliance
which we purchased in August 2012 (Justice & Secure Services) and Northgate
Managed Services (IT Services) which we acquired in March 2013. The challenges
faced by some of our General Insurance operations, mentioned above, have also
impacted margins.
In H2 2013, we will have further implementation costs due to, in particular,
the start of our O2 strategic partnership (1 July 2013), the Best Practice IP
JV with the Cabinet Office (1 July 2013) and some initial work for the London
Borough of Barnet. Based on current circumstances, we expect to achieve full
year margins in the range of 12.5% to 13.5% for the foreseeable future.
Dividend - The Board has declared an interim dividend of 8.7p per ordinary
share (H1 2012: 7.9p) representing an increase of 10%. The interim dividend
will be payable on 7 October 2013 to shareholders on the register at the close
of business on 23 August 2013.
Cash flow - In H1 2013, £242m (H1 2012: £201m) was generated by operations
representing an operating profit to cash conversion ratio [4] of 107% (H1
2012: 94%). Based on current circumstances, we are comfortable that we can
continue to achieve a medium to long term annual cash conversion ratio at or
around 100%.
Free cash flow, defined as operating cash flow, less capital expenditure,
interest and taxation for the half year was £164m (H1 2012: £95m).
[4] Defined as cash generated from operations divided by underlying operating
profit for the year.
Capital expenditure - We aim to contain capital expenditure at or below 4% of
revenue. In H1 2013, we met this objective, with net capex at 2.6% of annual
revenue (H1 2012: 3.4%). There are currently no indications of significant
capex increases in our business forecasts or bid pipeline.
Return on capital employed - We focus on driving a healthy return on capital.
Over the last 12 months to 30 June 2013, our post-tax return on average
capital employed was 15.1% (12 months to 30 June 2012: 16.1%). This compares
to our estimated post-tax WACC which is 7.2%.
Debt profile - As at 30 June 2013, we have £1,117m of private placement bond
debt of which only £66m matures before August 2015 with the remainder
gradually maturing to 2021. In addition, we have £185m of bank debt under a 2
year term loan facility maturing in February 2014, offset by £126m of net cash
and an undrawn £425m revolving credit facility.
We aim to keep the ratio of net debt to EBITDA in the range of 2 to 2.5 over
the long term and we would be unlikely to incur borrowings which would reduce
interest cover below 7 times. At 30 June 2013, our annualised net debt to
EBITDA ratio was 2.2 (H1 2012: 2.2) [5] with annualised interest cover at 11
times (H1 2012: 9 times).
[5] See footnote 1.
Developing our propositions and market reach
We generate profitable growth by winning business from new and existing
clients supported by an effective acquisition strategy which enhances our
propositions and provides entry into new market areas where we have identified
growth potential.
Major contract wins
We have made a strong start to 2013, securing 6 major contracts with a total
value of £2.0bn in the first 6 months (H1 2012: 11 contracts totalling £1.1bn)
[6], comprised of 80% new business and 20% extensions. The last 12 months have
been a highly successful sales period for Capita where we have delivered a win
rate (by value) of higher than 1 in 2.
[6] See footnote 2.
Major contract wins in 2013 to date include:
- Telefónica UK (O2) - a 10 year strategic partnership to deliver
customer management services. Building on our existing long term partnership
with O2, we will manage O2's customer service centres and support O2 as it enhances
and expands its digital service offering to customers. This new 10 year relationship
is worth approximately £1.2bn and commenced on 1 July 2013.
- Cabinet Office - selected to form a joint venture (JV) with the
Cabinet Office to deliver and commercialise the Government's proprietary
portfolio of leading and globally renowned project and IT management training
tools, including PRINCE2® and ITIL®. The JV, in which Capita holds 51%, owns
in perpetuity the intellectual property of the portfolio and manages the
accredited service organisations through which revenue is generated. It is
anticipated that the JV will triple the current revenues of approximately £40m
per annum by year 10, through further commercialising and developing the
product portfolio in existing and new markets in the UK and internationally.
The JV assumed management of current contracts on 1 July 2013 with full
operational delivery from 1 January 2014.
- Carphone Warehouse - contract to provide all Carphone Warehouse's
non-store customer contact in a number of different areas across the business
and support all aspects of customer service strategy. The contract is worth
around £160m over 10 years and commenced on 1 April 2013.
- London Borough of Barnet - selected as preferred bidder to deliver
development and regulatory services including highways management, planning
and development, regeneration and environmental health and trading standards
services. The contract, which will be delivered by our property and
infrastructure business, is expected to be worth approximately £154m over 10
years and is scheduled to commence on 1 October 2013.
- Civil Service Learning agreement - extension to existing contract
with the Cabinet Office, worth at least £60m over 2 years to end March 2016.
- University of Strathclyde - selected as strategic technology
partner to support the delivery of significant communications and technology
improvements in a contract estimated to be worth up to £40m over 5 years.
Capita will work with the University of Strathclyde to design and deliver a
long term ICT strategy to integrate and rationalise ICT processes and
resources to better support the University.
Bid pipeline & market update
Bid pipeline: Our bid pipeline contains all bids worth £25m or above, capped
at £1bn and where we have been shortlisted to the last 4 or fewer. We announce
the value of the pipeline three times a year and it is therefore a snapshot at
a specific point in time.
The pipeline is replenishing steadily following this unprecedented period of
sales wins and now stands at £4.2bn, (February 2013: £5.2bn), including 97%
new business and 3% extensions. The current pipeline comprises 32 bids, with
an average contract length of 8 years. The most active markets are local
government, the private sector, particularly retail, telecoms and utilities,
and central government. We are also seeing a high level of activity in our
prospect and suspect lists which contain bid opportunities which are yet to
reach shortlist stage. This provides us with a high level of confidence for
our medium to long term organic growth prospects.
Contract rebids: Over the next 6 years to 31 December 2019, we have only 1
material contract coming up for renewal which is the Phoenix contract in 2019.
Active market: As demonstrated by our strong recent sales performance and the
steady replenishment of our bid pipeline, we are continuing to experience
buoyant activity across the business process management market in both public
and private sectors.
The rapidly evolving digital landscape is transforming at a rapid pace the way
in which private and public organisations interact with customers and
citizens. This is creating significant demand for third party expertise and
infrastructure to transform existing services and to support and deliver
future innovation. We are increasingly harnessing advances in behavioural
insight and analytics to inform the adaption and transformation of processes
across multi-channel customer interactions. To address increased market
demand, we have developed our propositions and expertise in this area and are
well placed to support existing and new clients in adapting to changing
customer engagement.
Ongoing financial pressure also continues to create an environment where
clients are seeking alternative operating models to drive down costs without
adversely impacting service quality. The Government's recent Comprehensive
Spending Review detailed a further £11.5bn of savings including a 10% budget
cut for local government and reduced budgets for a number of key departments.
In the private sector, organisations across a range of industries continue to
face challenging trading conditions and we are working with them to develop
service solutions that support their financial and operational goals, in
particular assisting them to increase sales and improve debt management.
Acquisitions
We acquire organisations which enable us to enter and build capability in new
market areas and enhance our service offering therefore supporting our future
sales opportunities. This is evidenced by the acquisitions we have made in the
last 3 years which are already generating positive investment returns through
delivering significant organic growth. Combined with our existing customer
management expertise, the acquisitions in 2011 of Ventura and Vertex (private
sector), which cost £105m in aggregate, have resulted in Capita securing 5 new
contracts in the last 18 months, including the £1.2bn contract with O2. Our
£150m investment in 8 acquisitions in the justice and secure services area has
created a business with FY 2012 annual revenue of some £200m, servicing 46
police forces in the UK and Ireland and 31 UK fire and rescue services.
To date in 2013, we have invested a total of £198m in acquiring 9 businesses
which have further strengthened our offering in a number of key areas:
Customer Management & International - we have established an end to end debt
management offering and strengthened our analytics expertise which is an
essential component of both debt management and our overall customer
management offering by acquiring:
- iQor UK - provider of outsourced debt collection services to both
the public and private sectors in the UK. iQor UK helps companies and
organisations to manage high risk customers and ensure revenue collection, an
area where we are seeing strong potential for growth. Acquired for an
enterprise value of £42m.
- Euristix - is a small boutique data analytics and risk management
business which provides portfolio management, value realisation, diagnostics
and due diligence services to debt and financial services clients, together
with debt purchasers. Key customers include UKAR, Apollo, Brighthouse, Lowell,
Capquest and First Credit.
Justice & Secure Services - continued enhancement of our offering to this
market and the ability to cross sell into other market sectors, acquiring:
- G2G3 - provider of immersion and simulation-based training for
corporations in the UK and overseas. The application of game dynamics and game
thinking to non-game activities is a rapidly growing method for training
employees. The company will continue to develop simulations for global
corporations as well as for existing and new clients in Capita's key target
sectors: police, emergency services, justice, security, nuclear and oil and
gas industries.
- STL Technologies - provider of software and ICT to the criminal
justice system, including courts and the police, and to asylum and immigration
tribunals. STL specialises in case management applications for organisations
including Her Majesty's Courts Service, the Ministry of Justice, the Scottish
Court Service and case preparation and custody applications for West Midlands
Police.
IT Services - expanded its managed IT services resources and geographic reach
by acquiring:
- Northgate Managed Services (NMS) - based in Northern Ireland, a
provider of cloud-based, infrastructure solutions and specialist managed
services to public, private and third sector organisations, acquired for an
enterprise value of £65m.
Workplace Services - enhanced our ability to deliver a wide range of learning
and development services in the most cost effective manner across all delivery
channels, acquiring:
- Blue Sky Performance Improvement - a UK based learning and
development business that specialises in behaviour change and improved
employee productivity. Blue Sky provides bespoke, high quality solutions for
executive level employees, through to field based and frontline employees for
private and public sector clients, including 20% of the FTSE 100 such as
British Gas, BT, Barclays, RBS and RSA.
- Creating Careers - a provider of accredited e-learning to further
and secondary education students via distance learning. The company is focused
on providing those who have been disengaged from traditional education
techniques with a route to accredited, nationally recognised qualifications.
- KnowledgePool Group - provider of learning managed services,
including its three core service components of supplier management, training
administration and learning consultancy. The company manages all learning
activity and operations through a single channel that maximises return on
training investment for its clients.
Professional Services - enhanced our offering to the education and local
authority markets by acquiring:
- MLS - a provider of library and resource management systems.
Future prospects
Our strong sales performance over the last 12 months and contributions from
2012 and 2013 acquisitions provide us with excellent revenue visibility for
the full year 2013 and already deliver significant incremental revenue growth
in 2014. The return of strong organic growth, improved cash conversion, a
replenished bid pipeline with opportunities broadly spread across both private
and public sectors and a good pipeline of potential acquisitions, underpin our
confidence in full year performance and provide a strong platform for further
progress in 2014 and beyond.
-Ends-
Half year condensed consolidated income statement
for the 6 months ended 30 June 2013
30 June
30 June 2012
2013 (restated)
Non-
Underlying underlying Total Underlying Non-underlying Total
Notes £m £m £m £m £m £m
Continuing operations:
Revenue 3 1,818.8 - 1,818.8 1,607.3 - 1,607.3
Cost of sales (1,307.4) - (1,307.4) (1,140.6) - (1,140.6)
Gross profit 511.4 - 511.4 466.7 - 466.7
Administrative expenses (284.6) (62.0) (346.6) (252.6) (47.4) (300.0)
Operating profit 3 226.8 (62.0) 164.8 214.1 (47.4) 166.7
Net finance costs 3 (21.6) 14.3 (7.3) (27.7) 0.5 (27.2)
Profit before tax 3 205.2 (47.7) 157.5 186.4 (46.9) 139.5
Income tax expense (39.0) 9.9 (29.1) (39.0) 12.7 (26.3)
Profit for the period 166.2 (37.8) 128.4 147.4 (34.2) 113.2
Attributable to:
Owners of the parent 167.9 (37.5) 130.4 147.4 (34.2) 113.2
Non-controlling
interests (1.7) (0.3) (2.0) - - -
166.2 (37.8) 128.4 147.4 (34.2) 113.2
Earnings per share 4
- basic 25.82p (5.77)p 20.05p 23.66p (5.49)p 18.17p
- diluted 25.56p (5.71)p 19.85p 23.55p (5.47)p 18.08p
Half year condensed consolidated statement of comprehensive income
for the 6 months ended 30 June 2013
30 June
30 June 2012
2013 (restated)
£m £m £m £m
Profit for the period 128.4 113.2
Other comprehensive income/(expense)
Items that will not be reclassified subsequently
to profit or loss
Actuarial gain/(loss) on defined benefit pension 1.7 (36.8)
schemes
Deferred tax effect (0.4) 8.0
1.3 (28.8)
1.3 (28.8)
Items that will or may be reclassified
subsequently to profit or loss
Exchange differences on translation of foreign 1.7 (2.2)
operations
Losses on cash flow hedges (0.3) (11.0)
Reclassification adjustments for gains/(losses) 1.2 (0.7)
included in the income statement
Income tax effect (0.2) 2.7
0.7 (9.0)
2.4 (11.2)
Other comprehensive income/(expense) for the 3.7 (40.0)
period net of tax
Total comprehensive income for the period net of 132.1 73.2
tax
Attributable to:
Owners of the parent 134.1 73.2
Non-controlling interests (2.0) -
132.1 73.2
Half year condensed consolidated balance sheet
at 30 June 2013
31
December
30 June 2012
2013 (restated)
£m £m
Non-current assets
Property, plant and equipment 384.6 358.3
Intangible assets 2,189.6 1,919.9
Financial assets 264.5 236.2
Deferred taxation - 1.3
Trade and other receivables 58.1 72.7
2,896.8 2,588.4
Current assets
Financial assets 3.4 8.0
Funds receivables 182.7 108.0
Trade and other receivables 985.0 839.1
Cash 559.7 737.9
1,730.8 1,693.0
Total assets 4,627.6 4,281.4
Current liabilities
Trade and other payables 1,083.4 971.1
Financial liabilities 529.9 539.5
Funds payables 198.3 121.2
Provisions 26.7 23.6
Income tax payable 61.8 46.7
1,900.1 1,702.1
Non-current liabilities
Trade and other payables 33.5 12.5
Financial liabilities 1,568.1 1,539.7
Deferred tax liability 1.9 -
Provisions 41.2 40.9
Employee benefits 122.4 108.1
1,767.1 1,701.2
Total liabilities 3,667.2 3,403.3
Net assets 960.4 878.1
Capital and reserves
Issued share capital 13.9 13.8
Share premium 481.8 470.4
Employee benefit trust and treasury shares (0.4) (0.4)
Capital redemption reserve 1.8 1.8
Foreign currency translation reserve 3.4 1.7
Net unrealised gains reserve (16.6) (17.3)
Retained earnings 448.3 408.1
Equity attributable to owners of the parent 932.2 878.1
Non-controlling interests 28.2 -
Total equity 960.4 878.1
Included in aggregate financial liabilities is an amount of £1,362.3m (31
December 2012: £1,370.1m) which represents the fair value of the Group's bonds
which should be considered in conjunction with the aggregate value of currency
and interest rate swaps of £245.3m (31 December 2012: £222.4m) included in
financial assets and £nil (31 December 2012: £0.3m) included in financial
liabilities. Consequently, this gives an effective liability of £1,117.0m (31
December 2012: £1,148.0m). Cash and overdrafts (included within financial
liabilities) are shown gross therefore the Group's net cash position is the
cash shown above net of overdrafts of £433.5m (31 December 2012: £418.0m),
giving an effective cash balance of £126.2m (31 December 2012: £319.9m).
Half year condensed consolidated statement of changes in equity
for the 6 months ended 30 June 2013
Foreign Net Non-
Employee Capital currency unrealised Total
Share Share benefit redemption Retained translation gains shareholders' controlling Total
capital premium trust reserve earnings reserve reserve equity interests equity
£m £m £m £m £m £m £m £m £m £m
At 1 January 2012 13.0 459.4 (0.4) 1.8 50.3 7.5 (7.5) 524.1 - 524.1
Profit for the
period - restated - - - - 113.2 - - 113.2 - 113.2
Other
comprehensive
income/
(expense) -
restated - - - - (28.8) (2.2) (9.0) (40.0) - (40.0)
Total
comprehensive
income/
(expense) for the
period - - - - 84.4 (2.2) (9.0) 73.2 - 73.2
Share based
payment - - - - 4.8 - - 4.8 - 4.8
Income tax
deduction on
exercise of share
options - - - - 0.5 - - 0.5 - 0.5
Deferred income
tax relating
to share based
payments - - - - 2.8 - - 2.8 2.8
Shares issued 0.8 2.6 - - 270.6 - - 274.0 - 274.0
Equity dividends
paid - - - - (86.7) - - (86.7) - (86.7)
At 30 June 2012 13.8 462.0 (0.4) 1.8 326.7 5.3 (16.5) 792.7 - 792.7
At 1 January 2013 13.8 470.4 (0.4) 1.8 408.1 1.7 (17.3) 878.1 - 878.1
Profit for the
period - - - - 130.4 - - 130.4 (2.0) 128.4
Other
comprehensive
income/
(expense) - - - - 1.3 1.7 0.7 3.7 - 3.7
Total
comprehensive
income/
(expense) for the
period - - - - 131.7 1.7 0.7 134.1 (2.0) 132.1
Share based
payment - - - - 5.0 - - 5.0 - 5.0
Income tax
deduction on
exercise of share
options - - - - 0.9 - - 0.9 - 0.9
Deferred income
tax
relating to share
based payments - - - - 4.7 - - 4.7 - 4.7
Investment by
non-controlling
interest - - - - - - - - 30.2 30.2
Shares issued 0.1 11.4 - - - - - 11.5 - 11.5
Equity dividends
paid - - - - (102.1) - - (102.1) - (102.1)
At 30 June 2013 13.9 481.8 (0.4) 1.8 448.3 3.4 (16.6) 932.2 28.2 960.4
Half year condensed consolidated cash flow statement
for the 6 months ended 30 June 2013
30 June
2012
30 June
2013 (restated)
Notes £m £m
Cash flows from operating activities
Operating profit on continuing activities before interest and
taxation 164.8 166.7
Depreciation 38.5 38.5
Amortisation of intangible assets 54.2 41.2
Share based payment expense 5.0 4.8
Pensions 1.7 (3.0)
Movement in provisions (0.9) (0.4)
Loss on disposal of property, plant and equipment 0.1 -
Movement in receivables and payables (21.8) (46.5)
Cash generated from operations 241.6 201.3
Income tax paid (11.8) (29.5)
Net interest paid (19.2) (22.8)
Net cash inflow from operating activities 210.6 149.0
Cash flows from investing activities
Purchase of property, plant and equipment (46.9) (55.0)
Proceeds from sale of property, plant and equipment - 1.0
Purchase of financial assets (0.7) -
Acquisition of subsidiary undertakings and businesses (204.1) (106.2)
Debt repaid on acquisition of subsidiary undertakings (1.6) (42.2)
Cash acquired with subsidiary undertakings 10.2 0.2
Acquisition of public sector subsidiary arrangements (24.9) -
Debt repaid on acquisition of public sector subsidiary
arrangements (9.2) -
Net cash outflow from investing activities (277.2) (202.2)
Cash flows from financing activities
Issue of ordinary share capital 11.5 276.6
Share transaction costs - (2.6)
Dividends paid 5 (102.1) (86.7)
Capital element of finance lease rental payments 8 (4.2) (1.1)
Proceeds on issue of debt 8 - 185.0
Revolving credit facility 8 - (178.0)
Financing arrangement costs - (1.1)
Repayment of bonds and long term debt 8 (32.3) (24.7)
Net cash (outflow)/inflow from financing activities (127.1) 167.4
Net (decrease)/ increase in cash and cash equivalents (193.7) 114.2
Cash and cash equivalents at the beginning of the period 319.9 71.5
Cash and cash equivalents at 30 June 126.2 185.7
Cash and cash equivalents comprise:
Cash at bank and in hand 559.7 481.9
Overdraft (433.5) (296.2)
Total 8 126.2 185.7
Notes to the half year condensed consolidated financial statements
for the 6 months ended 30 June 2013
1 Corporate information
Capita plc is a public limited company incorporated in England and Wales whose
shares are publicly traded. The half year condensed consolidated financial
statements of the Company and its subsidiaries (`the Group') for the 6 months
ended 30 June 2013 were authorised for issue in accordance with a resolution
of the Directors on 24 July 2013.
2 Basis of preparation, judgements and estimates, accounting policies,
principal risks and uncertainties and going concern
(a) Basis of preparation
The half year condensed consolidated financial statements for the 6 months
ended 30 June 2013 have been prepared in accordance with the Disclosure and
Transparency Rules (DTR) of the Financial Conduct Authority and with IAS 34
Interim Financial Reporting.
The half year condensed consolidated financial statements do not include all
the information and disclosures required in the annual financial statements
and should be read in conjunction with the Group's annual financial statements
as at 31 December 2012, which have been prepared in accordance with IFRSs as
adopted by the European Union.
This condensed consolidated half year financial information does not comprise
statutory accounts within the meaning of Section 434 of the Companies Act
2006. Statutory accounts for the year ended 31 December 2012 were approved by
the Board of Directors on 27 February 2013 and delivered to the Registrar of
Companies. The report of the auditors on those accounts was unqualified, did
not contain an emphasis of matter paragraph and did not contain any statement
under Section 498 of the Companies Act 2006.
The half year condensed consolidated financial statements for the 6 months
ended 30 June 2013 have not been audited or reviewed by auditors pursuant to
the Auditing Practices Board guidance on Review of Interim Financial
Information.
(b) Judgements and estimates
In preparing these half year condensed consolidated financial statements,
management make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amount of assets and
liabilities and income and expense. Actual results may differ from these
estimates. 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 as at
the year ended 31 December 2012.
(c) Significant accounting policies
The accounting policies adopted in preparation of the half year condensed
consolidated financial statements are consistent with those followed in the
preparation of the Group's annual financial statements for the year ended 31
December 2012, except for the adoption of the following new standards and
amendments with an initial date of application of 1 January 2013.
IAS 1 Presentation of Items of Other Comprehensive Income - Amendments to IAS
1
As a result of the amendments to IAS 1, the Group has modified the
presentation of items in its condensed consolidated statement of other
comprehensive income to present separately items that would be classified to
profit or loss in the future from those that would never be. Comparative
information has also been re-presented. The amendment affected presentation
only and had no impact on the Group's financial position or performance.
IAS 19 Employee Benefits (Revised 2011) - IAS 19R
IAS 19R includes a number of amendments to the accounting for defined benefit
plans, including actuarial gains and losses that are now recognised in other
comprehensive income (OCI) and permanently excluded from profit and loss (this
had no impact on the Group as it had never adopted the `corridor' approach);
expected returns on plan assets that are no longer recognised in profit or
loss, instead, there is a requirement to recognise interest on the net defined
benefit liability (asset) in profit or loss, calculated using the discount
rate used to measure the defined benefit obligation, and; unvested past
service costs are now recognised in profit or loss at the earlier of when the
amendment occurs or when the related restructuring or termination costs are
recognised. Other amendments include new disclosures, such as, quantitative
sensitivity disclosures.
In the case of the Group, the transition to IAS 19R has had an impact on both
the condensed consolidated income statement and the condensed consolidated
statement of other comprehensive income due to the difference in accounting
for interest on plan assets. The effect of the adoption of IAS 19R is to
reduce profit before tax by £5.0m (2012: £4.3m) and reduce the tax on profit
charge by £1.2m (2012: £1.0m), a net impact on profit for the period of £3.8m
(2012: £3.3m). There was an equal and opposite effect on the total of other
comprehensive income for the period such that there has been no overall change
to total comprehensive income for the period nor any change in equity. In
addition, the Group has reclassified the interest cost element of the pension
charge to finance costs from administrative expenses. The impact of this has
been to reclassify as finance costs £2.4m (2012: £1.8m). Comparatives have
been restated accordingly.
IFRS 7 Financial Instruments: Disclosures - Offsetting Financial Assets and
Financial Liabilities - Amendment to IFRS 7
The amendment requires an entity to disclose information about rights to
set-off financial instruments and related arrangements (eg, collateral
agreements). The new disclosures are required for all recognised financial
instruments that are set off in accordance with IAS 32. The disclosures also
apply to recognised financial instruments that are subject to an enforceable
master netting arrangement or similar agreement, irrespective of whether the
financial instruments are set off in accordance with IAS 32. The amendment has
had no impact on the Group's financial position or performance. The Group has
grossed up its cash at bank and overdraft positions.
IFRS 13 Fair Value Measurement
IFRS 13 establishes a single source of guidance under IFRS for all fair value
measurements. IFRS 13 does not change when an entity is required to use fair
value, but rather provides guidance on how to measure fair value under IFRS
when fair value is required or permitted. The application of IFRS 13 has not
materially impacted the fair value measurements carried out by the Group. IFRS
13 also requires specific disclosures on fair values, some of which replace
existing disclosure requirements in other standards, including IFRS 7
Financial Instruments: Disclosures. Some of these disclosures are specifically
required for financial instruments by IAS 34.16A(j), thereby affecting the
interim condensed consolidated financial statements for the period. The Group
provides these disclosures in Note 9. In accordance with the transitional
provisions of IFRS 13, the Group has applied the new fair value measurement
guidance prospectively and has not provided any comparative information for
new disclosures.
Improvements to IFRSs - 2009 - 2011 Cycle issued in May 2012
The International Accounting Standards Board issued an omnibus of amendments
to its standards, primarily with a view to removing inconsistencies and
clarifying wording. The adoption of these amendments did not have any impact
on the financial position or performance of the Group.
(d) Principal risks and uncertainties and going concern
The Directors have considered the principal risks and uncertainties affecting
the Group's financial position and prospects in 2013. As described on pages 36
to 39 of the Group's Annual Report for 2012, the Group continues to be exposed
to a number of risks and has well established systems and procedures in place
to identify, assess and mitigate those risks. The risks faced by the Group
have not changed significantly over the first 6 months of 2013 and are not
expected to change materially in the remaining 6 months.
The principal risks include those arising from: failure to meet service level
agreements, possible loss of contracts and damage to brand reputation;
counterparty failure including disruption to supply chains or service
interruption; failure to achieve planned synergies in acquisitions; weaker
economic conditions are a key driver for outsourcing but extreme economic
uncertainty may result in delays in purchasing decisions and reduced
discretionary spend in some market segments; regulatory changes in different
jurisdictions may impact businesses in those locations; failure to attract and
maintain key staff; failure to secure sensitive or confidential data; and
failure to comply with complex laws and regulations.
The Directors have considered the issues raised in the FRC's "Update for
directors of listed companies: Responding to heightened country and currency
risk in interim financial reports" and can report that, although the Group is
not directly exposed to significant overseas sovereign and currency risks, it
is exposed indirectly to increased counterparty risk. The Group attempts to
mitigate this risk by counterparty monitoring and the avoidance of
concentrations of counterparty risk.
The Group has considerable financial resources together with long term
contracts with a wide range of public and private sector clients and
suppliers. As a consequence, the Directors believe the Group is well placed to
manage its business risks successfully.
After making enquiries and in accordance with the FRC's "Going Concern and
Liquidity Risk: Guidance for Directors of UK Companies 2009", the Directors
have a reasonable expectation that the Group has adequate resources to
continue in operational existence for the foreseeable future. Accordingly,
they continue to adopt the going concern basis in preparing the half year
condensed consolidated financial statements.
3 Segmental information
The following tables present revenue and profit information regarding the
Group's operating segments for the six months ended 30 June 2013 and 2012
respectively. The comparative figures have been restated due to a
reorganisation of the Group's business segments and a consequent change in the
way in which the results of the business are reported to the Group Board.
6 months ended 30 June 2013 2012
Inter- Inter-
Total segment External Total segment External
revenue revenue revenue revenue revenue revenue
Analysis of segment revenue £m £m £m £m £m £m
Health & Wellbeing 106.7 (10.8) 95.9 93.3 (9.3) 84.0
IT Services 283.0 (53.6) 229.4 279.8 (45.8) 234.0
Professional Services 250.7 (52.4) 198.3 214.6 (44.8) 169.8
Justice & Secure Services 164.4 (17.2) 147.2 93.0 (14.7) 78.3
Property Services 140.7 (15.3) 125.4 133.1 (13.1) 120.0
Workplace Services 250.7 (14.3) 236.4 170.4 (12.3) 158.1
Customer Management & International 147.8 (6.9) 140.9 126.5 (5.9) 120.6
Investor & Banking Services 121.2 (10.5) 110.7 119.1 (9.0) 110.1
Integrated Services 188.2 (12.4) 175.8 173.8 (10.6) 163.2
Insurance & Benefits Services 395.5 (36.7) 358.8 400.6 (31.4) 369.2
Total segments 2,048.9 (230.1) 1,818.8 1,804.2 (196.9) 1,607.3
6 months 6 months
to to
30 June 30 June
2013 2012
Analysis of segment profit £m £m
Health & Wellbeing 15.4 16.4
IT Services 10.0 7.7
Professional Services 48.4 41.1
Justice & Secure Services 19.7 15.2
Property Services 6.9 8.1
Workplace Services 29.4 18.6
Customer Management & International 18.6 13.6
Investor & Banking Services 27.6 27.1
Integrated Services 29.0 29.3
Insurance & Benefits Services 21.8 37.0
Total underlying segment profit 226.8 214.1
Net underlying finance costs (21.6) (27.7)
Underlying profit before tax 205.2 186.4
Intangible amortisation (52.9) (41.2)
Acquisition costs (7.5) (6.2)
Contingent consideration movement (1.6) -
Financial instruments - mark to market 14.3 0.5
Profit before tax 157.5 139.5
4 Earnings per share
The average number of shares in issue during the period was 650.2m (30 June
2012: 622.9m). The diluted earnings per share have been calculated on the
profit for the period of £130.4m (30 June 2012: £113.2m) and an average
diluted number of shares of 657.0m (30 June 2012: 625.8m). As at 24 July 2013,
there were 655.2 m shares in issue.
5 Dividends
The interim dividend of 8.7p (2012: 7.9p) per share (not recognised as a
liability at 30 June 2013) will be payable on 7 October 2013 to ordinary
shareholders on the register at the close of business on 23 August 2013. The
dividend disclosed in the cash flow statement represents the final ordinary
dividend of 15.6p (2012: 14.2p) per share as proposed in the 31 December 2012
financial statements and approved at the Group's AGM (not recognised as a
liability at 31 December 2012).
6 Business combinations
The Group has made a number of acquisitions in the period which are shown in
aggregate below:
Provisional
fair value
to
Group
£m
Property, plant and equipment 23.0
Intangible assets 94.6
Debtors - gross 68.2
Provision for doubtful debts (1.7)
Income tax 2.1
Cash and cash equivalents 10.2
Creditors (104.7)
Provisions (4.3)
Deferred tax (10.6)
Employee benefits liability (11.9)
Finance lease (25.4)
Long term debt (10.8)
Net assets 28.7
Goodwill arising on acquisition 223.4
252.1
Discharged by:
Cash consideration paid 207.5
Non-controlling interest investment 30.2
Contingent consideration accrued 14.4
252.1
The full exercise to determine the fair value of intangible assets acquired is
still to be completed, thus the above numbers are provisional. Further cash
consideration was paid in respect of previous acquisitions of £14.0m.
7 Provisions
Insurance
captive Property
provision provision Total
£m £m Other £m £m
At 1 January 2013 16.0 39.4 9.1 64.5
Utilisation (6.4) (2.5) (2.7) (11.6)
Additional provisions in the period 9.7 0.2 0.8 10.7
Provisions acquired - 4.3 - 4.3
At 30 June 2013 19.3 41.4 7.2 67.9
The insurance provision is made in relation to the Group's Professional
Indemnity, Motor and Employee Liability exposures. The Group uses a captive
insurer to reduce the cost of providing this cover for its operations; claims
that are in excess of the Captive's liability are reinsured with a number of
large insurance underwriters. The Group makes provision when a claim has been
made where it is more probable than not that an insured loss will occur. These
provisions are reassessed regularly to ensure that the level of provisioning
is consistent with the claims that have been reported.
The property provision includes a discounted provision for the difference
between the market value of the property leases acquired in 2011 with Ventura
and Vertex and the lease obligations committed to at the date the leases were
signed by the previous owners. This is in accordance with IFRS 3 (revised)
which requires the use of fair value measurement. The remaining property
provision is made on a discounted basis for the future rent expense and
related cost of leasehold property (net of estimated sub-lease income) where
the space is vacant or currently not planned to be used for ongoing
operations. The expectation is that this expenditure will be incurred over the
remaining periods of the leases which range from 1 to 15 years.
Other relates to provisions in respect of potential claims arising due to the
nature of some of the operations that the Group provides. These are likely to
unwind over a period of 1 to 3 years.
8 Movement in net debt
Net debt Net debt
at 1 Acquisitions Non-cash at
January in 2013 Cash flow flow 30 June
2013 £m movements movements 2013
£m £m £m £m
Cash+ 319.9 10.2 (203.9) - 126.2
Unsecured loan notes (0.5) - - - (0.5)
Bonds* (1,370.1) - 32.3 (24.5) (1,362.3)
Term loan (185.0) - - - (185.0)
Currency swaps in relation to US $
denominated bonds* 206.2 - - 27.8 234.0
Interest rate swaps in relation to GBP
denominated bonds* 15.9 - - (4.6) 11.3
Long term debt - (10.8) 10.8 - -
Obligations under finance leases (2.7) (25.4) 4.2 0.5 (23.4)
Underlying net debt (1,016.3) (26.0) (156.6) (0.8) (1,199.7)
Fixed rate interest rate swaps (52.9) - - 15.9 (37.0)
(1,069.2) (26.0) (156.6) 15.1 (1,236.7)
+ Cash comprises cash, cash equivalents and overdrafts.
* The aggregate bond fair value above of £1,362.3m (30 June 2012: £1,415.4m)
includes the GBP value of the US$ denominated bonds. To remove the Group's
exposure to currency fluctuations it has entered into currency swaps which
effectively hedge the movement in the underlying bond fair value. The interest
rate swaps are being used to hedge the exposure to changes in the fair value
of GBP denominated bonds. The sum of these items held at fair value equates to
the underlying value of the Group's bond debt of £1,117.0m (30 June 2012:
£1,151.0m).
Net debt Net debt
at Acquisitions Non-cash at
1 January in 2012 Cash flow flow 30 June
2012 £m movements movements 2012
£m £m £m £m
Cash+ 71.5 0.2 114.0 - 185.7
Unsecured loan notes (2.3) - - (0.6) (2.9)
Bonds* (1,432.2) - 24.7 (7.9) (1,415.4)
Term loan - - (185.0) - (185.0)
Revolving credit facility (176.1) - 178.0 (1.9) -
Currency swaps in relation to US $ denominated
bonds* 242.4 - - 7.5 249.9
Interest rate swaps in relation to GBP
denominated bonds* 13.5 - - 1.0 14.5
Long term debt - (42.2) 42.2 - -
Obligations under finance leases (3.1) - 1.1 - (2.0)
Underlying net debt (1,286.3) (42.0) 175.0 (1.9) (1,155.2)
Fixed rate interest rate swaps (44.7) - - (0.6) (45.3)
(1,331.0) (42.0) 175.0 (2.5) (1,200.5)
9 Financial instruments
Carrying values and fair values of financial instruments
The following table analyses by classification and category the Group's
financial instruments (excluding short term debtors, creditors, fund
payables/receivables and cash in hand) that are carried in the financial
statements. The values below represent the carrying amounts. The fair values
are the same as the carrying values other than a £50.0m fixed rate bond,
included below in the bond value of £1,362.3m, with a carrying value of £50.0m
and a fair value of £53.4m.
At fair
value
through
the Derivatives Other
Available- income Loans and used for financial
for-sale statement receivables hedging liabilities Total
£m £m £m £m £m £m
Financial assets
Unlisted equity securities 1.8 - - - - 1.8
Investment loan - - 20.8 - - 20.8
Interest rate swaps in relation to
GBP denominated bonds - - - 11.3 - 11.3
Currency swaps in relation to US$
denominated bonds - - - 234.0 - 234.0
1.8 - 20.8 245.3 - 267.9
Financial liabilities
Overdrafts - - - - 433.5 433.5
Unsecured loan notes - - - - 0.5 0.5
Bonds - - - - 1,362.3 1,362.3
Term loan - - - - 185.0 185.0
Cash flow hedges - - - 21.6 - 21.6
Non-designated foreign exchange
forward contracts - 0.9 - - - 0.9
Contingent consideration - - - - 33.8 33.8
Obligations under finance leases - - - - 23.4 23.4
Fixed rate interest rate swaps - 37.0 - - - 37.0
- 37.9 - 21.6 2,038.5 2,098.0
The fair value of financial instruments has been calculated by discounting the
expected future cash flows at prevailing interest rates, except for unlisted
equity securities and investment loans. The valuation models incorporate
various inputs including foreign exchange spot and forward rates and interest
rate curves. Unlisted equity securities and investment loans are held at
amortised cost. The Group enters into derivative financial instruments with
multiple counterparties, all of which are financial institutions with
investment grade credit ratings.
Fair value hierarchy
The Group uses the following hierarchy for determining and disclosing the fair
value of financial instruments by valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or
liabilities
Level 2: other techniques for which all inputs which have a significant effect
on the recorded fair value are observable, either directly or indirectly
Level 3: techniques which use inputs which have a significant effect on the
recorded fair value that are not based on observable market data.
As at 30 June 2013, the Group held the following financial instruments
measured at fair value:
£m
Assets measured at fair value
Interest rate swaps in relation to GBP
denominated bonds 11.3
Currency swaps in relation to US$
denominated bonds 234.0
245.3
Liabilities measured at fair value
Bonds 1,312.3
Term loan 185.0
Unsecured loan notes 0.5
Cash flow hedges 21.6
Non-designated foreign exchange forward 0.9
contracts
Fixed rate interest rate swaps 37.0
Contingent consideration 33.8
1,591.1
During both periods the Group only had Level 2 assets or liabilities measured
at fair value apart from contingent consideration which is a Level 3
liability. It is the Group's policy to recognise transfers between levels of
the fair value hierarchy at the end of the reporting period during which the
transfer occurred. During the period ended 30 June 2013, there were no
transfers between Level 1 and Level 2 fair value measurements and no transfers
into or out of Level 3 fair value measurements.
Contingent consideration, the only level 3 item, arises in business
acquisitions where the Group has agreed to pay the vendors additional
consideration dependent on the achievement of performance targets in the
periods post acquisition. These performance periods are of up to 3 years in
duration and will be settled in cash and loan notes on their payment date on
achieving the relevant target. The Group makes provision for such contingent
consideration based on an assessment of its fair value at the acquisition
date. Contingent consideration has been calculated based on the Group's
expectation of what it will pay in relation to the post-acquisition
performance of the acquired entities by weighting the probability of a range
of payments to give an estimate of the final obligation. A change in the
weighting given to the range of payments of +5%/-5% has an impact of +ve£3.6m
and -ve£1.2m to the value carried as contingent consideration.
A reconciliation of the movements in the contingent consideration provision in
the period is set out below:
£m
At 1 January 2013 26.8
Arising from business combinations in the period 14.4
Profit and loss movement - administrative expenses 1.6
Reclassified from current liabilities 5.0
Utilised (14.0)
At 30 June 2013 33.8
10 Capital commitments
At 30 June 2013, amounts contracted for but not provided in the financial
statements for the acquisition of property, plant and equipment amounted to
£0.1m (30 June 2012: £1.0m).
11 Related party transactions
Transactions between the Company and its subsidiaries, which are related
parties, have been eliminated on consolidation and are not disclosed in this
note.
Invesco Limited, a substantial shareholder in the Company and therefore a
related party of the Company (in each case, for the purposes of the Listing
Rules of the UK Listing Authority), had a holding of 144,177,938 shares in the
Company at 24 July 2013.
Compensation of key management personnel (including Directors of parent
company)
6 months 6 months
30 June 30 June
2013 2012
£m £m
Short term employment benefits 2.8 2.1
Post employment benefits 0.1 0.1
Share based payments 2.0 1.0
4.9 3.2
Gains on share options exercised in the period by key management personnel
totalled £7.4m (30 June 2012: £4.9m).
12 Contingent liabilities
The Group has provided, through the normal course of its business, performance
bonds and bank guarantees of £68.0m (31 December 2012: £58.2m).
Further consideration may be due, dependent on certain performance criteria,
on acquisitions completed by the Group since 2010 up to a maximum of £55.9m of
which £33.8m has been provided. The Group expects that these payments, if
ultimately due, will be satisfied by the end of 2016.
Statement of Directors' responsibilities
The Directors confirm, to the best of their knowledge, that this condensed set
of financial statements has been prepared in accordance with IAS 34 as adopted
by the European Union and that the Half Year Management Report includes a fair
review of the information required by Rules 4.2.4, 4.2.7 and 4.2.8 of the
Disclosure and Transparency Rules of the United Kingdom Financial Conduct
Authority.
The names and functions of the Directors of Capita plc are as listed in the
Group's Annual Report for 2012. A list of current Directors is maintained on
the Group website: www.capita.co.uk.
By order of the Board
P R M Pindar G M Hurst
Chief Executive Group Finance Director
24 July 2013