Final Results
Capita Group PLC
22 February 2007
THE CAPITA GROUP PLC
Preliminary Results for the year ended 31 December 2006
STRONG 2006 PERFORMANCE
Financial Highlights
Year ended 31 Year ended 31 Change
December 2006 December 2005
Turnover £1,739m £1,436m +21%
Operating profit * £225.1m £183.1m +23%
Profit before tax * £200.1m £169.6m +18%
Earnings per share * 23.1p 18.6p +24%
Total dividend per share 9.0p 7.0p +29%
* before intangible amortisation of £6.9m (2005: £16.5m, including impairment of
£12.0m) and after share based payment charge of £8.5m (2005: £7.6m).
Key points
• Operating margins increased by 19 basis points to 12.9% (2005: 12.8%)
• Operating cash flow of £279m (2005: £232m)
• £1.37bn major contract wins and renewals in 2006 (2005: £1.14bn)
• Bid pipeline of £2.6bn (February 2006: £2.2bn)
• Life & pensions and local government markets particularly buoyant
• £301m returned to shareholders, including the proposed final dividend
Paul Pindar, Chief Executive of The Capita Group Plc, commented:
'Capita has performed very strongly in 2006. We have secured record levels of
new business, thereby strengthening our position as the UK's market leader in
providing BPO services to the public and private sectors.
'Our successes in 2006 and progress in early 2007 mean that the ingredients for
a successful year are already in place. The Board anticipates delivering strong
growth in 2007.'
For further information:
The Capita Group Plc Tel: 020 7799 1525
Paul Pindar, Chief Executive
Shona Nichols, Corporate Communications Director
Capita Press Office Tel: 0870 2400 488
Financial Dynamics Tel: 020 7269 7121
Andrew Lorenz/Susanne Walker
The Capita Group Plc
Preliminary Statement for the year ended 31 December 2006
Capita has performed very strongly in 2006. We have secured record levels of new
business, thereby strengthening our position as the UK's market leader in
providing business process outsourcing (BPO) services to the public and private
sectors. Our successes during 2006 position us well for 2007.
In the year ended 31 December 2006, turnover increased by 21% to £1,739m (2005:
£1,436m). Operating profits before amortisation and after share based payment
charge rose by 23% to £225.1m (2005: £183.1m) and profits before taxation and
amortisation and after share based payment charge increased by 18% to £200.1m
(2005: £169.6m). Earnings per share before amortisation and after share based
payment charge grew by 24% to 23.1p (2005: 18.6p).
Operating cash flow rose by 20% to £279m (2005: £232m). We have increased
dividends by 29% and returned a further £245m to shareholders through purchasing
our own shares. In total, including the proposed final dividend, we will be
returning £301m (2005: £96m) to shareholders in respect of the 2006 financial
year.
We remain enthused by the many opportunities that exist to develop the Group and
we will continue to build long term value for our shareholders, customers and
our employees.
Building value for shareholders
To ensure we are building value for shareholders, we focus on a number of key
measures. We believe that the disciplines set out below collectively form an
integral part of building value for our shareholders on a consistent basis over
the long term.
• We have continued our long term trend of improving operating margins
(before amortisation and after share based payment charge), which have
increased 19 basis points during the period to 12.9%. This is due to several
factors including increasing volumes of work being processed through
existing infrastructure, excellent operational performance across our
contract base and our continued focus on seeking efficiencies in service
delivery, including increasing the proportion of services delivered from
India.
• The strength of Capita and its business model is reflected in our
excellent underlying cash flow, with £279m (2005: £232m) generated by
operations in the year, representing an operating profit to cash conversion
rate of 124% (2005: 127%). Our underlying free cash flow increased by 21% to
£154m (2005: £127m).
• We aim to contain capital expenditure at or below 4% of revenue,
although there may be rare occasions when we exceed this where the financial
strength of Capita can be used as a competitive advantage. In 2006, we met
this objective with net capital expenditure being 3.6% (2005: 3.7%) of
annual revenue. This was achieved after significant investment in Capita's
advanced IT platforms supporting, in particular, our life & pensions
business.
• We focus on driving a steadily increasing return on capital. During
2006, the post tax return on average capital employed has improved to 18.5%
(2005: 17.1%). This compares to our estimated weighted average cost of
capital which is 8.4%.
• A key element in the creation of shareholder value is a progressive
dividend policy. The Board is recommending a final dividend of 6.3p per
ordinary share making a total of 9p (2005: 7p) for the year. This represents
a 29% increase in dividends paid in respect of the 2005 financial year. Over
the 5 years to 31 December 2006, we have grown Capita's annual dividend at a
compound rate of 32%. The final dividend will be payable on 4 May 2007 to
shareholders on the register at the close of business on 30 March 2007. Our
confidence in the strength and resilience of Capita's business model allows
us to reduce annual dividend cover to 2.6 times (2005: 2.7 times).
• There may be circumstances in which market conditions allow us to add
value for shareholders through share buybacks, thus ensuring we have an
efficient capital structure which will minimise our long term cost of
capital. During 2006, the Group bought back 53m shares (representing 7.9% of
the issued share capital) at an average price of £4.64. The Group has
authority to re-purchase up to 10% of its issued share capital and we plan
to seek renewal of this authority at the Annual General Meeting.
• We have continued with our strategy of acquiring small to medium-sized
businesses which are priced at a level which adds value for our
shareholders. In 2006, we spent £48m on 11 acquisitions and investments.
This year, our pipeline of potential businesses to be acquired remains at a
healthy level. We will continue to be extremely selective but,
notwithstanding this, we anticipate a sustained volume of small transactions
during 2007.
• Over the 10 years to 14 February 2007, the market capitalisation of the
Group has increased from £360m to £4.1bn. The total shareholder return in
this period has been 10.5 fold, equivalent to a 27% compound annual return.
Our marketplace
We have maintained our number 1 position in the BPO market as well as retaining
leading positions across the majority of our 9 chosen markets, including: local
government, central government, education, transport, life & pensions and
insurance.* Our extensive infrastructure and capability provide us with a strong
competitive edge across our markets and enable us to present strong propositions
to clients.
The market for BPO in the UK and Ireland continues to provide strong growth
opportunities. In 2006, this market was estimated at £4.6bn, split 35% and 65%
between the public and private sectors respectively. Our public/private sector
split is currently 52%/48% and over time we expect to move closer to the overall
market split. Industry analysts, Ovum, estimate that the total potential market
is worth £94.8bn per annum.*
Generating profitable organic growth & developing through acquisitions
Of the 21% increase in turnover in 2006, 16% was achieved through organic growth
and the remaining 5% was derived through acquisitions.
We have 2 complementary approaches to creating organic growth. First, our
centrally managed Major Sales Team seeks to secure contracts typically with a
value of £10m or above. These contracts are complex, integrated projects that
require a wide range of the Group's skills and which generate high quality,
recurring revenues.
Secondly, each of our businesses employs sales teams focused upon securing
growth from both existing and new customers. Across the Group we have over
20,000 customers and our retention rate is excellent.
Additionally, we achieve growth through acquiring businesses which enable us to
build on our existing capabilities or establish a presence in a new market area.
Securing major contracts
Securing and renewing major contracts is an important component of our growth.
Our sales performance in 2006 was excellent. We secured 23 major new and
extended contracts with an aggregate value of £1.37bn (2005: £1.14bn).
Significant new contracts won include a 10 year contract worth £132m with the
BBC, a 3 year contract worth £120m with the Department of Trade & Industry
(DTI), a 7 year contract worth £120m with DSG international plc, a 15 year
contract worth £100m with Fujitsu and preferred bidder status on a 10 year
contract worth £250m with Co-operative Insurance.
2007 has started well. In early January, we announced a 15 year contract worth
£19m with Countrywide Assured to provide administration services for 80,000 life
and pensions policies. At the beginning of February, we announced that we had
signed a contract with Swindon Council to deliver local services in a 15 year
strategic partnership worth £243m. This contract had previously been estimated
as worth £140m over 10 years when we announced our selection as preferred
supplier in October 2006. Today, we are pleased to announce that we have been
selected as preferred partner to provide outsourced occupational health services
to the Department for Work and Pensions, the Department for Education and Skills
and the Health and Safety Executive, estimated to be worth £10m over 5 years.
As a consequence of this activity, the total value of major contracts won and
extended in the first 8 weeks of 2007 is £132m. We are also now in the position
where we have no material contracts (defined as having annual revenue in excess
of 1% of 2006 turnover) due for renewal in 2007 and 2008 and only 2 in 2009.
Our current bid pipeline stands at £2.6bn (February 2006: £2.2bn) and contains
some exciting opportunities, particularly within the life and pensions and local
government markets. The bid pipeline only includes bid situations in which
Capita is shortlisted as one of 4 or fewer competitors and caps our largest bids
at £500m. Behind this is an active prospect list of opportunities which are yet
to reach a shortlist stage.
We have already secured strong revenue growth for 2007 and our efforts are now
focused upon achieving a similar position for 2008.
Development across our businesses
Our businesses have developed well across the year securing new and repeat
business. We have also continued our strategy of expanding existing offerings
and entering new market segments through acquiring small, niche businesses. Our
operational capabilities continue to grow, evidenced by the smooth running of
our major integrated contracts and our separate businesses. Some highlights from
across our Divisions are detailed below.
Our operations supporting the financial services sector have performed superbly,
demonstrated by the growth in our fund and unit trust administration business.
During the year, we more than doubled funds under administration which today
exceed £30bn. Growth has come organically, through acquisition and also by
increasing our product range and entering new markets, including Jersey and
Dublin for offshore funds. We provide a wide range of fund administration
services including a 'hosting' solution for fund managers. Under this
arrangement, the fund manager outsources the administration of 39 out of 40
functions to Capita. The manager retains the function of investment management.
In the life and pensions market, we are the leading outsourcing provider with an
estimated 39% market share of contracts let.* We currently administer 4.5m life,
savings and pensions policies and this market continues to be very active. Our
new Prudential contract, delivering administration services from Belfast to
Prudential's UK life and pensions operations, transferred smoothly at the
beginning of October and already progress has been made in improving service
quality and efficiency. Our SIPP business currently administers self invested
personal pensions for a number of leading life and investment firms including
Scottish Life, St. James's Place and MetLife. SIPP administration is a strong
growth area of the pensions market. Capita Hartshead delivered another year of
strong performance, gaining 28% market share of the current outsourced market
and 12% of the overall occupational pension scheme administration market.
In the year, businesses across the Group increasingly worked together to combine
services and resources to meet clients' widening requirements. One reason why we
were chosen as preferred partner by Co-operative Insurance was our ability to
provide unit trust administration seamlessly alongside our life and pensions
capabilities. Another joint proposition draws on our life and pensions, general
insurance, SIPP, unit trust administration and software capabilities to enhance
the interface between providers and distributors, enabling products to be
brought to market swiftly and reducing the cost of distribution. We broadened
this proposition in the year by acquiring Synaptic Systems, a leading provider
of on-line life, pensions and investment research.
2006 has seen a leap forward in the development of our integrated HR solutions
business, with the commencement of the BBC and Northern Ireland Civil Service
contracts and the establishment of an HR administration centre in Northern
Ireland. The breadth and strength of our HR strategy, resourcing, payroll
administration, learning and development and outplacement resourcing businesses
played a key role in securing these contracts. Our resourcing businesses
performed well in the year. Capita Resourcing has experienced good growth,
winning significant new business and successfully extending existing managed
services contracts with BAA, BUPA and NATS. Capita Education Resourcing
maintained market share and increased its further education supply business by
117%. Veredus, our search and selection business, secured contracts with a
number of new and existing clients including National Assembly for Wales, DTI
and the Arts Council.
Although the central government market has been quieter in 2006, there has been
increasing demand for our services across the local government and education
markets. Our ICT led transformation partnership with Birmingham City Council is
progressing well with measurable service quality improvements and significant
savings already achieved. Capita Local Government Services grew strongly in the
year, securing major partnerships with Rossendale Borough Council and South
Oxfordshire and the Vale of White Horse District Councils and winning
administration and customer services business from new and existing clients,
including Bristol and Edinburgh City Councils and Barking and Dagenham Council.
Following the introduction of the Government's 'Every Child Matters: Change for
Children' strategy, we reviewed our service offering in this area and are now
recognised as leading providers of both consultancy and interim management and
software support to children's services authorities.
Growth of our BPO offshore operation in India has accelerated, with the business
doubling in size in the past 12 months. We have over 800 staff working across 2
sites in Mumbai. By the end of 2007, we will have secured a third site in a
second Indian city and we anticipate employing 1,500 staff. By 2009, we
anticipate that we will have approaching 3,000 people based in India. Our
offshore facilities are delivering significant savings, providing operational
flexibility, raising service quality and increasing productivity. Capita is
directly benefiting through offshoring some of its own support functions, some
administration operations that support multiple client groups (our financial
services and life & pensions divisions are the largest internal users) and back
office processes for some of our existing long term contracts. Additionally, our
ability to offer a standalone offshoring or blended offshore/onshore operating
model to new clients provides a strong competitive proposition and will be the
main driver of growth for our offshore operations.
Valuing our people
The value that we have created for our stakeholders in Capita is a direct result
of the competence and commitment that our staff give to the company. The culture
within Capita is a key differentiator from our competition. We have a stable and
consistent management team, a low turnover of senior people and a tremendous
spirit throughout the company. The Board would like to thank everyone for the
role they play in Capita's success. We also welcome the employees that have
joined us since the beginning of 2006. We now employ 27,800 people in the UK,
Ireland, the Channel Islands and India.
Board changes
Rod Aldridge, Capita's founder and Chairman, retired from the Board on 31 July
2006. Rod played a major role in building and developing the company for over 20
years and the Board and staff across Capita wish him every success with his new
interests. Following Rod's retirement, Eric Walters was appointed as
Non-Executive Chairman on 1 August 2006, having been a Non-Executive Director of
Capita for over 5 years. Also on 1 August 2006, Simon Pilling was appointed to
the Group Board as an Executive Director, having served on Capita's Executive
Divisional Board. The Board was further strengthened with the appointment of
Bill Grimsey as Non-Executive Director with effect from 9 October 2006.
Future prospects
Capita enters 2007 with confidence. Our markets continue to generate
opportunity, our sales prospects are exciting and our operational performance is
consistently strong.
Our successes in 2006 and progress in early 2007 mean that the ingredients for a
successful year are already in place. The Board anticipates delivering strong
growth in 2007.
-Ends-
* Source: Ovum 2006
Preliminary Statement
Consolidated income statement
for the year ended 31 December 2006 2006 2005
Before
impairment Impairment
Before and and
amortisation Amortisation Total amortisation amortisation Total
Notes £m £m £m £m £m £m
Continuing
operations:
Revenue 1 1,738.5 - 1,738.5 1,435.5 - 1,435.5
Cost of sales 1,256.5 - 1,256.5 1,054.6 - 1,054.6
Gross profit 482.0 - 482.0 380.9 - 380.9
Administrative
expenses 2 256.9 6.9 263.8 197.8 16.5 214.3
Operating profit 1 225.1 (6.9) 218.2 183.1 (16.5) 166.6
Finance revenue 1.0 - 1.0 0.4 - 0.4
Finance costs (26.0) - (26.0) (13.9) - (13.9)
Profit before tax 200.1 (6.9) 193.2 169.6 (16.5) 153.1
Income tax expense (55.4) 1.9 (53.5) (47.0) 1.2 (45.8)
Profit for the year 144.7 (5.0) 139.7 122.6 (15.3) 107.3
Attributable to:
Equity holders of
the parent 144.8 (5.0) 139.8 122.8 (15.3) 107.5
Minority interest (0.1) - (0.1) (0.2) - (0.2)
144.7 (5.0) 139.7 122.6 (15.3) 107.3
Earnings per share 3
- basic 23.10p (0.78)p 22.32p 18.60p (2.32)p 16.28p
- diluted 22.56p (0.76)p 21.80p 18.33p (2.28)p 16.05p
Consolidated statement of recognised income and expense
for the year ended 31 December 2006 2006 2005
£m £m
Actuarial gains/(losses) on defined benefit pension schemes 12.8 (3.7)
Exchange differences on translation of foreign operations (0.7) 0.2
Gain on available for sale investments 0.3 -
Tax on items taken directly to equity 11.0 3.7
Net income recognised directly in equity 23.4 0.2
Profit for the year 139.7 107.3
Total income and expense for the period 163.1 107.5
Attributable to:
Equity holders of the parent 163.2 107.7
Minority interest (0.1) (0.2)
163.1 107.5
Consolidated balance sheet
at 31 December 2006 2006 2005
Notes £m £m
Non-current assets
Property, plant and equipment 171.0 150.1
Intangible assets 630.0 588.7
Financial assets 32.6 13.8
Trade and other receivables 6.8 5.8
Deferred taxation 22.1 25.1
862.5 783.5
Current assets
Trade and other receivable 394.9 343.8
Cash 9.7 -
404.6 343.8
Total assets 1,267.1 1,127.3
Current liabilities
Trade and other payables 449.4 378.0
Financial liabilities 50.4 49.9
Provisions 1.0 1.3
Income tax payable 33.5 32.5
534.3 461.7
Non-current liabilities
Trade and other payables 0.8 1.3
Financial liabilities 378.7 221.7
Provisions 0.7 2.0
Employee benefits 26.8 43.0
407.0 268.0
Total liabilities 941.3 729.7
Net assets 325.8 397.6
Capital and reserves
Issued capital 12.3 13.4
Share premium 308.1 258.1
Treasury shares - (0.4)
Capital redemption reserve 1.7 0.2
Foreign currency translation (0.4) 0.3
Retained earnings 4.0 125.8
Equity shareholders' funds 325.7 397.4
Minority interest 0.1 0.2
Total equity 325.8 397.6
Consolidated cash flow statement
for the year ended 31 December 2006 2006 2005
Notes £m £m
Cash flows from operating activities
Operating profit on continuing activities before 218.2 166.6
interest and taxation
Depreciation 42.2 31.7
Amortisation of other intangible assets (treated as 1.2 4.9
depreciation)
Amortisation of intangible assets created on 6.9 4.5
acquisition
Impairment of goodwill 2 - 12.0
Share based payment charge 8.5 7.6
Pension charge 15.9 12.0
Pension contributions (19.1) (16.6)
Loss on sale of property, plant and equipment 0.3 0.5
Movement in provisions (1.9) (2.4)
Increase in debtors (48.8) (19.4)
Increase in creditors 55.6 30.8
Cash generated from operations 279.0 232.2
Income tax paid (40.3) (38.2)
Interest paid (23.1) (13.9)
Interest received 1.0 0.4
Net cash generated from operating activities 216.6 180.5
Net cash used in investing activities
Purchase of property, plant and equipment (63.0) (49.7)
Proceeds from sale of property, plant and equipment 1.9 0.4
Purchase of intangible fixed assets (1.4) (4.0)
Acquisition of subsidiary undertakings and businesses (37.6) (101.9)
Cash acquired with subsidiary undertakings 1.0 2.7
Purchase of trade investments in insurance captives (7.6) (12.0)
Investment loan (11.7) -
(118.4) (164.5)
Net cash used in financing activities
Issue of ordinary share capital 50.4 9.9
Share buybacks (244.9) (49.6)
Share transaction costs (1.2) (0.3)
Dividends paid 4 (47.7) (38.0)
Capital element of finance lease rental payments (0.4) (0.2)
Asset based securitised financing 5 (0.7) 1.4
Repayment of loan notes and long term loans (3.4) (7.3)
Proceeds on issue of bond 179.1 75.0
Financing arrangement costs (0.9) (0.1)
(69.7) (9.2)
Net increase in cash and cash equivalents 5 28.5 6.8
Cash and cash equivalents at the beginning of the period (19.3) (26.1)
Cash and cash equivalents at 31 December 9.2 (19.3)
Cash and cash equivalents comprise:
Overdraft (0.5) (19.3)
Cash at bank and in hand 9.7 -
Total 9.2 (19.3)
Notes to the Preliminary Statement
31 December 2006
1. Segmental information
The Group's operations are organised and managed separately according to the
nature of the services provided, with each segment representing a strategic
business unit offering a different package of related services across the
Group's markets.
Before eliminating sales between business units on consolidation, the Group
accounts for sales between business units as if they were to a third party at
market rates. Revenues are attributed to geographic areas based on the location
of the assets producing the revenues.
During 2006 the Group changed the management reporting structure of its
operations and therefore the disclosure below presents the information under the
new structure. The comparatives have been restated accordingly.
Year ended 31 December 2006
Insurance
Property and ICT and Life &
HR solutions consultancy specialist Financial Integrated advisory pensions Professional
services services services services services services services services Total
Segment £m £m £m £m £m £m £m £m £m
revenue
Total segment
revenue 226.0 225.5 310.1 120.9 317.6 329.3 186.9 249.5 1,965.8
Inter-segment
revenue (20.1) (26.1) (26.9) (0.1) (16.7) (77.0) (2.6) (57.8) (227.3)
Third party
revenue 205.9 199.4 283.2 120.8 300.9 252.3 184.3 191.7 1,738.5
Segment result
Result after
depreciation 18.7 13.9 32.8 32.1 48.7 25.8 23.4 38.2 233.6
Share based
payment (1.0) (1.1) (1.5) (0.6) (2.1) (0.7) (0.7) (0.8) (8.5)
Intangible
amortisation (0.2) (0.9) (2.2) (0.9) (0.9) (0.4) (1.2) (0.2) (6.9)
Impairment charge - - - - - - - - -
17.5 11.9 29.1 30.6 45.6 24.8 21.5 37.2 218.2
Net finance costs (25.0)
Profit before tax
and minority
interests 193.2
Corporation
taxation (53.5)
Minority interests 0.1
Profit after tax
and minority
interests 139.8
Year ended 31 December 2005
Insurance
Property and ICT and Life &
HR solutions consultancy specialist Financial Integrated advisory pensions Professional
services services services services services services services services Total
Segment £m £m £m £m £m £m £m £m £m
revenue
Total segment
revenue 216.5 200.7 271.4 99.4 287.0 191.0 117.1 190.1 1,573.2
Inter-segment
revenue (14.3) (10.2) (17.7) (1.9) (24.3) (46.0) (2.3) (21.0) (137.7)
Third party
revenue 202.2 190.5 253.7 97.5 262.7 145.0 114.8 169.1 1,435.5
Segment result
Result after
depreciation 15.9 17.1 25.4 24.9 43.7 15.9 14.2 33.6 190.7
Share based
payment (0.9) (1.0) (1.3) (0.5) (1.9) (0.6) (0.6) (0.8) (7.6)
Intangible
amortisation (1.7) (0.5) (0.9) (0.3) (0.6) - (0.5) - (4.5)
Impairment charge - - - - - - - (12.0) (12.0)
13.3 15.6 23.2 24.1 41.2 15.3 13.1 20.8 166.6
Finance costs (13.5)
Profit before tax
and minority
interests 153.1
Corporation
taxation (45.8)
Minority interests 0.2
Profit after tax
and minority
interests 107.5
Notes to the Preliminary Statement
31 December 2006
2 Administrative expenses
Included in the middle column disclosed on the face of the consolidated income
statement, against the line item administrative expenses, are the following:
2006 2005
£m £m
Intangible amortisation 6.9 4.5
Impairment - 12.0
6.9 16.5
3 Earnings per share
Basic earnings per share amounts are calculated by dividing net profit for the
year attributable to ordinary equity holders of the parent by the weighted
average number of ordinary shares outstanding during the year.
Diluted earnings per share amounts are calculated by dividing the net profit for
the year attributable to ordinary equity holders of the parent by the weighted
average number of ordinary shares outstanding during the year plus the weighted
average number of ordinary shares that would be issued on the conversion of all
the dilutive potential ordinary shares into ordinary shares.
The following reflects the income and share data used in the basic and diluted
earnings per share computations:
2006 2005
£m £m
Net profit attributable to ordinary equity holders of the parent from
continuing operations 139.8 107.5
2006 2005
Number Number
million million
Weighted average number of ordinary shares (excluding treasury shares)
for basic earnings per share 626.3 660.1
Dilutive potential ordinary shares:
Employee share options 15.0 9.7
Weighted average number of ordinary shares (excluding treasury shares)
adjusted for the effect of dilution 641.3 669.8
There have been no other transactions involving ordinary shares or potential
ordinary shares between the reporting date and the date of completion of these
financial statements.
The following additional earnings per share figures are calculated based on
earnings attributable to ordinary equity holders of the parent before
amortisation and impairment of £144.8m (2005: £122.8m). They are included as
they provide a better understanding of the underlying trading performance of the
Group.
2006 2005
P p
Basic earnings per share - before amortisation and impairment 23.10 18.60
- after amortisation and impairment 22.32 16.28
Diluted earnings per share - before amortisation and impairment 22.56 18.33
- after amortisation and impairment 21.79 16.05
Notes to the Preliminary Statement
31 December 2006
4 Dividends paid and proposed
2006 2005
£m £m
Declared and paid during the year
Ordinary shares (equity):
Final for 2005 paid: 4.9p per share (2004: 3.6p per share) 31.1 24.0
Interim for 2006 paid 2.7p per share (2005: 2.1p per share) 16.6 14.0
47.7 38.0
Proposed for approval at AGM (not recognised as a liability at 31
December)
Ordinary shares (equity):
Final for 2006: 6.3p per share (2005: 4.9p per share) 38.9 32.0
5 Reconciliation of net cash flow to movement in net funds/(debt)
At December 2006
Net debt Acquisi-
at 1 tions Non-cash Net debt at
January in 2006 Cash flow flow 31 December
2006 (exc. Cash) movements movements 2006
£m £m £m £m
Cash and cash equivalents - - 9.7 - 9.7
Overdrafts (19.3) - 18.8 - (0.5)
Cash (19.3) - 28.5 - 9.2
Loan notes (22.7) - 0.5 - (22.2)
Long term debt - (2.9) 2.9 - -
Bonds (198.6) - (178.6) 5.2 (372.0)
Currency swaps (2.6) - - (3.8) (6.4)
Interest rate swaps 1.6 - - (1.6) -
Finance leases (0.2) (0.7) 0.4 - (0.5)
Sub-total net debt (241.8) (3.6) (146.3) (0.2) (391.9)
Asset based securitised
finance (28.2) - 0.7 - (27.5)
(270.0) (3.6) (145.6) (0.2) (419.4)
At December 2005
Net debt Acquisi-
at 1 tions Non-cash Net debt at
January in 2005 Cash flow flow 31 December
2005 (exc. Cash) movements movements 2005
£m £m £m £m
Cash and cash equivalents - - - - -
Overdrafts (26.1) - 6.8 - (19.3)
Cash (26.1) - 6.8 - (19.3)
Loan notes (27.1) - 4.4 - (22.7)
Long term debt - (2.9) 2.9 - -
Bonds (123.0) - (74.9) (0.7) (198.6)
Currency swaps (3.1) - - 0.5 (2.6)
Interest rate swaps 1.4 - - 0.2 1.6
Finance leases (0.2) (0.2) 0.2 - (0.2)
Sub-total net debt (178.1) (3.1) (60.6) - (241.8)
Asset based securitised finance - (26.8) (1.4) - (28.2)
(178.1) (29.9) (62.0) - (270.0)
Notes to the Preliminary Statement
31 December 2006
6. Preliminary announcement
The preliminary announcement is prepared in accordance with International
Financial Reporting Standards.
A duly appointed and authorised committee of the Board of Directors approved the
preliminary announcement on 21 February 2007.
The announcement represents non-statutory accounts within the meaning of section
240 of the Companies Act 1985. The statutory annual accounts for the year ended
31 December 2006, upon which an unqualified audit opinion has been given and
which did not contain a statement under section 235, 237(2) or 237(3) of the
Companies Act 1985, will be sent to the Registrar of Companies.
Copies of the announcement can be obtained from the Company's registered office
at 71 Victoria Street, Westminster, London, SW1H 0XA.
It is intended that the Annual Report and Accounts will be posted to
shareholders on 29 March 2007 and will be available to members of the public at
the registered office of the Company from that date.
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 22nd November 2024
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