Change in presentational currency

RNS Number : 7409U

Hunting PLC

05 December 2013

 



For Immediate Release 5 December 2013

Hunting PLC

("the Company or Group")

Change in presentational currency

Hunting PLC (LSE:HTG) the international energy services group announces that it is changing the currency in which it presents its financial statements from Sterling to US Dollars.A significant portion of the Group's revenues, cash flows and net assets are now denominated in US Dollars and the Board has decided that a US Dollar presentation will give a more meaningful view of the Group's financial performance and position.

In the unaudited appendix attached to this announcement the Company has presented condensed consolidated US Dollar financial information. These will form the basis of the comparative US Dollar financial information to be included in the full year results for the year ending 31 December 2013 and the half year results for the six month period ending 30 June 2014.

The condensed financial information has been restated from Sterling into US Dollars using the procedures as outlined below and in accordance with the requirements set out in IAS 21: "The Effects of Changes in Foreign Exchange Rates" with respect to translation to the presentational currency:

·      assets and liabilities denominated in non-US Dollar currencies were translated into US Dollars at the closing rate prevailing at the balance sheet dates;

·      income and expenses denominated in non-US Dollar currencies were translated into US Dollars at the average exchange rate of the reporting period; and

·      all resulting exchange differences have been recognised in other comprehensive income, within the foreign currency translation reserve.

As a result of this change, future dividends will be declared in US Dollars but will continue to be paid in Sterling. The Sterling value of the dividend payable per share will be fixed and announced approximately two weeks prior to the payment date based on the average spot exchange rate over the three business days preceding the announcement date.

For further information please contact:

Hunting PLC Dennis Proctor, Chief Executive Peter Rose, Finance Director	Tel: [phone]
Buchanan Richard Darby Jeremy Garcia	Tel: [phone]

Notes to Editors:

About Hunting PLC

Hunting PLC is an international energy services provider to the world's leading upstream oil and gas companies. Established in 1874, it is a premium listed public company traded on the London Stock Exchange. The Company maintains a corporate office in Houston and is headquartered in London. As well as the United Kingdom, the Company has principal operations in Canada, China, Hong Kong, Indonesia, Mexico, Netherlands, Singapore, Thailand, United Arab Emirates and the United States of America.

Presentation of Historical Financial Information in US Dollars

Introduction

Following due consideration, the Board of Hunting PLC have decided to report in US Dollars with effect from the publication of the Annual Report for the year ending 31 December 2013. This document restates historical financial information for the years ended 31 December 2012, 2011 and 2010 and for the half year ended 30 June 2013.

Peter Rose

Finance Director

Contents

1.         Basis of Accounting                                                                                                        

2.         Reason for Change in Presentational Currency                                                                

3.         Dividends                                                                                                                     

4.         For the years ended 31 December 2012, 2011 and 2010               

Consolidated Income Statement                                                                                     

Consolidated Balance Sheet                                                                                            

Notes                                                                                                                           

5.         For the six months ended 30 June 2013

Consolidated Income Statement                                                                                     

Consolidated Balance Sheet                                                                                          

Notes                                                                                                                           

6.         Financial Record

1.         Basis of Accounting

This report has been prepared to illustrate the effect on the financial statements of changing the presentational currency of the Hunting Group from Sterling to US Dollars. The financial information contained in this report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial information is unaudited, and was prepared using accounting policies consistent with those used to prepare the 2012 Annual Report, except as described below.

IAS 19 (revised) Employee Benefits

IAS 19 (revised) Employee Benefits has been adopted from 1 January 2013. The Group has applied the standard retrospectively in accordance with the transition provisions of the standard. Under IAS 19 (revised),  scheme expenses have been recognised as incurred rather than through a reserve, which was part of the defined benefit obligation. The combination of the expected return on assets and interest cost on the defined benefit obligation is replaced by the net interest on the defined benefit asset. This comprises interest income on the plan assets, calculated using the IAS 19 (revised) discount rate rather than the expected return on the plan assets, minus the interest cost on the defined benefit obligation.

The impact on the Balance Sheet for the year ended 31 December 2012 was to increase the retirement benefit asset by US$13.0m to US$22.8m, reduce deferred tax assets by US$3.0m to US$8.7m, reduce other components of equity by US$0.8m and increase retained earnings by US$10.8m. The impact on the Income Statement was to reduce profit from continuing operations by US$1.7m, increase finance income by US$1.1m and reduce taxation expense by US$0.1m.

The impact on the Balance Sheet for the year ended 31 December 2011 was to increase the retirement benefit asset by US$12.4m to US$19.9m, increase deferred tax liabilities by US$3.1m to US$58.0m, reduce other components of equity by US$1.3m and increase retained earnings by US$10.6m. The impact on the Income Statement was to reduce profit from continuing operations by US$1.4m, increase finance income by US$1.1m and reduce taxation expense by US$0.1m.

The impact on the Balance Sheet for the year ended 31 December 2010 was to increase the retirement benefit asset by US$12.6m to US$21.2m, increase deferred tax liabilities by US$3.4m to US$43.6m, reduce other components of equity by US$1.1m and increase retained earnings by US$10.3m. The impact on the Income Statement was to reduce profit from continuing operations by US$1.4m, increase finance income by US$0.9m and reduce taxation expense by US$0.1m.

The impact on the Balance Sheet for the year ended 31 December 2009 was to increase the retirement benefit asset by US$12.9m to US$25.8m, increase deferred tax liabilities by US$3.6m to US$33.3m, reduce other components of equity by US$0.9m and increase retained earnings by US$10.2m. The impact on the Income Statement was to reduce profit from continuing operations by US$1.9m, increase finance income by US$1.4m and reduce taxation expense by US$0.1m.

2.         Reason for Change in Presentational Currency

Following the disposal of Gibson Energy at the end of 2008 and the acquisition programme undertaken in recent years that focused on US domiciled businesses, the Hunting Group's US operations have expanded and become the most significant operations of the Group. The dominant functional currency of the operating subsidiaries is US Dollar. This is not only driven by US domiciled businesses but also by businesses outside the US, which have a US Dollar functional currency. The Group's revenues, cash flows and economic returns are now principally denominated in US Dollars. Hunting PLC has changed the currency in which it presents its consolidated and parent Company Financial Statements from Sterling to US Dollars, as this will give a more meaningful view of the Group's financial performance and position.

A change in presentational currency is a change in accounting policy, which is accounted for retrospectively. Financial information reported in Sterling in the Group's 2012 Annual Report and 2013 Half Year Report has been restated into US Dollars using the procedures outlined below:

a)  assets and liabilities denominated in non-US Dollar currencies were translated into US Dollars at closing rates of exchange. Non-US Dollar trading results were translated into US Dollars at average rates of exchange. Differences resulting from the retranslation of the opening net assets and the results for the year have been taken to the translation reserve;

b)  the cumulative translation reserve was set to nil at 1 January 2004 (i.e. the transition date to IFRS). All subsequent movements comprising differences on the retranslation of the opening net assets of non-US Dollar subsidiaries have been charged to the translation reserve; and

c)  Share capital, share premium and capital redemption reserves were translated at the historic rates prevailing at the dates of transactions.

d)  The average exchange rates used to translate the Group's results into US Dollars and the closing rates for each reporting period included in this report are as follows:

Exchange rates	Six months ended 30 June	31 December
	2013	2012	2011	2010	2009
US$/£ - average	0.6478	0.6309	0.6233	0.6500	0.6400
US$/£ - period end	0.6593	0.6152	0.6435	0.6400	0.6200

3.         Dividends

As a result of these changes, future dividends will be declared in US Dollars but will continue to be paid in Sterling. The Sterling value of the dividend payable per share will be fixed and announced approximately two weeks prior to the payment date based on the average spot exchange rate over the three business days preceding the announcement date. 

4.         For the years ended 31 December 2012, 2011 and 2010

Condensed Consolidated Income Statement

(Unaudited)

				2012				2011
				Before	Amortisation			Before	Amortisation
				amortisation	and			amortisation	and
				and	exceptional			and	exceptional
				exceptional	items			exceptional	items
				items	(note 2)	Total		items	(note 2)	Total
Notes				US$m	US$m	US$m		US$m	US$m	US$m
Revenue			1	1,309.0	-	1,309.0		975.1	-	975.1
EBITDA			3	242.9	(15.2)	227.7		162.5	(40.2)	122.3
Depreciation, amortisation and impairment				(40.4)	(52.7)	(93.1)		(34.4)	(23.3)	(57.7)
Profit from continuing operations			1	202.5	(67.9)	134.6		128.1	(63.5)	64.6
Finance income				3.8	-	3.8		6.7	-	6.7
Finance expense				(12.5)	-	(12.5)		(9.1)	(1.7)	(10.8)
Share of associates' post-tax profits				1.5	-	1.5		1.7	-	1.7
Profit before tax from continuing operations				195.3	(67.9)	127.4		127.4	(65.2)	62.2
Taxation				(54.7)	26.5	(28.2)		(35.7)	24.1	(11.6)
Profit for the year:
From continuing operations				140.6	(41.4)	99.2		91.7	(41.1)	50.6
From discontinued operations				-	108.0	108.0		1.1	80.2	81.3
Profit for the year				140.6	66.6	207.2		92.8	39.1	131.9
Profit attributable to:
Owners of the parent				135.7	66.6	202.3		87.8	39.1	126.9
Non-controlling interests				4.9	-	4.9		5.0	-	5.0
				140.6	66.6	207.2		92.8	39.1	131.9
Earnings per share
Basic	-  from continuing operations		4	93.0c		64.6c		63.1c		33.2c
	-  from discontinued      operations		4	-		74.1c		0.8c		59.3c
Group total				93.0c		138.7c		63.9c		92.5c
Diluted	-  from continuing          operations		4	90.8c		63.1c		61.8c		32.5c
	-  from discontinued     operations		4	-		72.2c		0.8c		58.0c
Group total				90.8c		135.3c		62.6c		90.5c

Condensed Consolidated Income Statement

(Unaudited)

				2010
				Before	Amortisation
				amortisation	and
				and	exceptional
				exceptional	items
				items	(note 2)	Total
		Notes		US$m	US$m	US$m
Revenue		1		656.0	-	656.0
EBITDA		3		95.7	(4.8)	90.9
Depreciation, amortisation and impairment				(27.3)	(16.9)	(44.2)
Profit from continuing operations		1		68.4	(21.7)	46.7
Finance income				6.8	-	6.8
Finance expense				(4.4)	-	(4.4)
Share of associates' post-tax profits				1.6	-	1.6
Profit before tax from continuing operations				72.4	(21.7)	50.7
Taxation				(21.7)	6.4	(15.3)
Profit for the year from continuing operations				50.7	(15.3)	35.4
Profit for the year from discontinued operations				9.1	(7.2)	1.9
Profit for the year				59.8	(22.5)	37.3
Profit attributable to:
Owners of the parent				55.9	(22.5)	33.4
Non-controlling interests				3.9	-	3.9
				59.8	(22.5)	37.3
Earnings per share
Basic	- from continuing operations	4		35.6c		24.0c
	- from discontinued operations	4		7.0c		1.5c
Group total				42.6c		25.5c
Diluted	- from continuing operations	4		34.9c		23.5c
	- from discontinued operations			6.8c		1.5c
Group total				41.7c		25.0c

Condensed Consolidated Balance Sheet

(Unaudited)

			2012	2011	2010
			US$m	US$m	US$m
ASSETS
Non-current assets
Property, plant and equipment			403.8	359.4	241.9
Goodwill			495.0	494.0	157.9
Other intangible assets			301.1	343.2	35.5
Investments in associates			11.0	9.2	20.4
Investments			6.4	0.4	70.8
Retirement benefit assets			22.8	19.9	21.2
Trade and other receivables			6.1	3.4	5.7
Deferred tax assets			8.7	4.6	13.5
			1,254.9	1,234.1	566.9
Current assets
Inventories			391.1	359.0	205.2
Trade and other receivables			278.0	270.7	163.8
Current tax assets			10.6	10.0	-
Investments			5.1	3.7	4.0
Cash and cash equivalents			165.3	106.9	421.8
Assets classified as held for sale			-	21.1	-
			850.1	771.4	794.8
LIABILITIES
Current liabilities
Trade and other payables			215.7	228.1	167.3
Current tax liabilities			17.6	39.4	27.5
Borrowings			132.1	67.1	89.0
Provisions			20.3	65.8	62.5
Liabilities classified as held for sale			-	13.1	-
			385.7	413.5	346.3
Net current assets			464.4	357.9	448.5
Non-current liabilities
Borrowings			304.7	385.9	3.6
Deferred tax liabilities			41.8	30.8	43.6
Provisions			27.7	28.2	25.6
Other payables			12.4	0.2	-
			386.6	445.1	72.8
Net assets			1,332.7	1,146.9	942.6
Non-controlling interests			(29.7)	(26.1)	(23.3)
Total equity attributable to owners of the parent			1,303.0	1,120.8	919.3

Notes

1.         Segmental Reporting

The Group's segments are strategic business units that offer different products and services to international oil and gas companies and the shipping sector.

Results from operations

	Year ended 31 December 2012
	Total gross revenue	Inter-segmental revenue	Total revenue	Profit from operations before amortisation and exceptional items	Amortisation and exceptional items	Total
	US$m	US$m	US$m	US$m	US$m	US$m
Continuing operations:
Hunting Energy Services
Well Construction	450.3	(7.6)	442.7	72.5	(8.1)	64.4
Well Completion	742.8	(17.7)	725.1	116.6	(47.5)	69.1
Well Intervention	89.9	(0.1)	89.8	10.8	(0.9)	9.9
	1,283.0	(25.4)	1,257.6	199.9	(56.5)	143.4
Other Activities
Exploration and Production	7.8	-	7.8	0.9	(11.4)	(10.5)
Gibson Shipbrokers	43.6	-	43.6	1.7	-	1.7
Total from continuing operations	1,334.4	(25.4)	1,309.0	202.5	(67.9)	134.6

	Year ended 31 December 2011
	Total gross revenue	Inter-segmental revenue	Total revenue	Profit from operations before amortisation and exceptional items	Amortisation and exceptional items	Total
	US$m	US$m	US$m	US$m	US$m	US$m
Continuing operations:
Hunting Energy Services
Well Construction	322.3	(10.2)	312.1	45.5	(12.4)	33.1
Well Completion	545.4	(22.0)	523.4	65.4	(31.3)	34.1
Well Intervention	84.8	-	84.8	12.6	(0.9)	11.7
	952.5	(32.2)	920.3	123.5	(44.6)	78.9
Other Activities
Exploration and Production	13.1	-	13.1	2.7	(1.6)	1.1
Gibson Shipbrokers	41.7	-	41.7	1.9	-	1.9
	1,007.3	(32.2)	975.1	128.1	(46.2)	81.9
Exceptional items not apportioned to   business segments	-	-	-	-	(17.3)	(17.3)
Total from continuing operations	1,007.3	(32.2)	975.1	128.1	(63.5)	64.6

	Year ended 31 December 2010
	Total gross revenue	Inter-segmental revenue	Total revenue	Profit from operations before amortisation and exceptional items	Amortisation and exceptional items	Total
	US$m	US$m	US$m	US$m	US$m	US$m
Continuing operations:
Hunting Energy Services
Well Construction	180.8	(8.1)	172.7	14.8	(2.7)	12.1
Well Completion	355.7	(8.4)	347.3	35.5	-	35.5
Well Intervention	91.0	(0.1)	90.9	15.5	(1.2)	14.3
	627.5	(16.6)	610.9	65.8	(3.9)	61.9
Other Activities
Exploration and Production	10.1	-	10.1	2.1	(13.0)	(10.9)
Gibson Shipbrokers	35.0	-	35.0	0.5	-	0.5
	672.6	(16.6)	656.0	68.4	(16.9)	51.5
Exceptional items not apportioned to   business segments	-	-	-	-	(4.8)	(4.8)
Total from continuing operations	672.6	(16.6)	656.0	68.4	(21.7)	46.7

Geographical Information: External Revenue

				2012	2011	2010
				US$m	US$m	US$m
Continuing operations:
UK				224.8	215.3	203.4
USA				792.8	503.5	283.1
Canada				96.7	85.2	64.3
Rest of Europe				28.3	24.3	17.4
Singapore				129.4	132.2	87.0
Other				37.0	14.6	0.8
Total				1,309.0	975.1	656.0

2.         Amortisation and Exceptional Items

						2012	2011	2010
						US$m	US$m	US$m
Fair value uplift to inventories charge						12.0	20.3	-
Impairment of property, plant and equipment						8.2	1.6	8.2
Dry hole costs						3.2	-	4.8
Charged to cost of sales						23.4	21.9	13.0
Amortisation of intangible assets						44.5	19.4	3.9
Acquisition costs						-	13.8	4.8
Retention bonuses for management of acquired businesses						1.8	2.6	-
Property provisions						-	3.5	0.1
Impairment of goodwill						-	2.3	-
Other exceptional items						-	-	(0.1)
Charged to operating expenses						46.3	41.6	8.7
Release of contingent consideration liability - credited to operating income						(1.8)	-	-
Amortisation and exceptional items						67.9	63.5	21.7
Unamortised loan facility fees written off - charged to finance expense						-	1.7	-
Taxation on amortisation and exceptional items						(26.5)	(24.1)	(6.4)
Total from continuing operations						41.4	41.1	15.3

3.         EBITDA

	2012		2011	2010
	US$m		US$m	US$m
Reported profit from continuing operations	134.6		64.6	46.7
Add: amortisation and exceptional items (note 2)	67.9		63.5	21.7
Add: depreciation and non-exceptional impairment	40.4		34.4	27.3
Underlying EBITDA	242.9		162.5	95.7
Less: exceptional items impacting EBITDA	(15.2)	(40.2)			(4.8)
Reported EBITDA	227.7	122.3			90.9

"EBITDA" is a non-GAAP measure and underlying EBITDA is defined as pre-exceptional profit from continuing operations before interest, tax, depreciation, amortisation and impairment to property, plant and equipment. Underlying EBITDA is used by the Board as a measure of the Group's performance.

4.         Earnings per Share

Basic earnings per share is calculated by dividing the earnings attributable to Ordinary shareholders by the weighted average number of Ordinary shares outstanding during the period.

For diluted earnings per share, the weighted average number of outstanding Ordinary shares is adjusted to assume conversion of all dilutive potential Ordinary shares. The dilution in respect of share options applies where the exercise price is less than the average market price of the Company's Ordinary shares during the period and the possible issue of shares under the Group's long-term incentive plans.

Reconciliations of the earnings and weighted average number of Ordinary shares used in the calculations are set out below:

	2012	2011	2010
	US$m	US$m	US$m
Basic and diluted earnings attributable to Ordinary shareholders:
From continuing operations	94.3	45.6	31.5
From discontinued operations	108.0	81.3	1.9
Total	202.3	126.9	33.4
Basic and diluted earnings attributable to Ordinary shareholders before amortisation and exceptional items:
From continuing operations	94.3	45.6	31.5
Add: amortisation and exceptional items after taxation	41.4	41.1	15.3
Total	135.7	86.7	46.8
From discontinued operations	108.0	81.3	1.9
Add: exceptional items after taxation	(108.0)	(80.2)	7.2
Total	-	1.1	9.1
	millions	millions	millions
Basic weighted average number of Ordinary shares	145.9	137.1	131.3
Dilutive outstanding share options	1.2	1.4	1.8
Long term incentive plans	2.4	1.6	0.9
Adjusted weighted average number of Ordinary shares	149.5	140.1	134.0
	cents	cents	cents
Basic EPS:
From continuing operations	64.6	33.2	24.0
From discontinued operations	74.1	59.3	1.5
	138.7	92.5	25.5
Diluted EPS:
From continuing operations	63.1	32.5	23.5
From discontinued operations	72.2	58.0	1.5
	135.3	90.5	25.0
Earnings per share before amortisation and exceptional items
Basic EPS:
From continuing operations	93.0	63.1	35.6
From discontinued operations	-	0.8	7.0
	93.0	63.9	42.6
Diluted EPS:
From continuing operations	90.8	61.8	34.9
From discontinued operations	-	0.8	6.8
	90.8	62.6	41.7

5.         For the six months ended 30 June 2013

Condensed Consolidated Income Statement

(Unaudited)

								Six months ended 30 June 2013
								Before	Amortisation
								amortisation	and
								and	exceptional
								exceptional	items
								items	(note 2)	Total
						Notes		US$m	US$m	US$m
Revenue						1		655.7	-	655.7
EBITDA						3		116.7	(6.9)	109.8
Depreciation, amortisation and impairment								(22.2)	(24.6)	(46.8)
Profit from continuing operations						1		94.5	(31.5)	63.0
Finance income								6.4	-	6.4
Finance expense								(9.7)	-	(9.7)
Share of associates' post-tax profits								0.3	-	0.3
Profit before tax from continuing operations								91.5	(31.5)	60.0
Taxation								(26.5)	11.0	(15.5)
Profit for the period:
From continuing operations								65.0	(20.5)	44.5
From discontinued operations								-	12.5	12.5
Profit for the period								65.0	(8.0)	57.0
Profit attributable to:
Owners of the parent								63.3	(8.0)	55.3
Non-controlling interests								1.7	-	1.7
								65.0	(8.0)	57.0
Earnings per share
Basic	-  from continuing operations					4		43.3c		29.3c
	-  from discontinued operations					4		-		8.5c
Group total								43.3c		37.8c
Diluted	-  from continuing operations					4		42.2c		28.5c
	-  from discontinued operations					4		-		8.3c
Group total								42.2c		36.8c

Condensed Consolidated Balance Sheet

(Unaudited)

					As at 30 June 2013
					US$m
ASSETS
Non-current assets
Property, plant and equipment					401.2
Goodwill					493.3
Other intangible assets					280.1
Investments in associates					9.8
Investments					7.4
Retirement benefit assets					21.2
Trade and other receivables					7.8
Deferred tax assets					7.7
					1,228.5
Current assets
Inventories					407.9
Trade and other receivables					269.3
Current tax assets					1.0
Investments					4.8
Cash and cash equivalents					145.2
					828.2
LIABILITIES
Current liabilities
Trade and other payables					221.2
Current tax liabilities					22.8
Borrowings					150.3
Provisions					7.6
					401.9
Net current assets					426.3
Non-current liabilities
Borrowings					240.5
Deferred tax liabilities					39.8
Provisions					26.1
Other payables					11.4
					317.8
Net assets					1,337.0
Non-controlling interests					(29.9)
Total equity attributable to owners of the parent					1,307.1

Notes

1.         Segmental Reporting

The Group's segments are strategic business units that offer different products and services to international oil and gas companies and the shipping sector.

Results from operations

	Six months ended 30 June 2013
	Total gross revenue	Inter-segmental revenue	Total revenue	Profit from operations before amortisation and exceptional items	Amortisation and exceptional items	Total
	US$m	US$m	US$m	US$m	US$m	US$m
Continuing operations:
Hunting Energy Services
Well Construction	195.7	(3.6)	192.1	27.8	(3.7)	24.1
Well Completion	393.8	(5.8)	388.0	60.9	(23.6)	37.3
Well Intervention	51.4	-	51.4	5.7	(0.5)	5.2
	640.9	(9.4)	631.5	94.4	(27.8)	66.6
Other Activities
Exploration and Production	4.3	-	4.3	0.4	(3.7)	(3.3)
Gibson Shipbrokers	19.9	-	19.9	(0.3)	-	(0.3)
Total from continuing operations	665.1	(9.4)	655.7	94.5	(31.5)	63.0

Geographical Information: External Revenue

					Six months ended 30 June 2013
					US$m
Continuing operations:
UK					92.1
USA					401.7
Canada					30.7
Rest of Europe					13.3
Singapore					74.2
Other					43.7
Total					655.7

2.         Amortisation and Exceptional Items

								Six months ended 30 June 2013
								US$m
Fair value uplift to inventories charge								3.2
Impairment of property, plant and equipment								2.9
Dry hole costs								0.8
Charged to cost of sales								6.9
Amortisation of intangible assets								21.7
Settlement of litigation and associated legal expenses								2.9
Charged to operating expenses								24.6
Amortisation and exceptional items								31.5
Taxation on amortisation and exceptional items								(11.0)
Total from continuing operations								20.5

3.         EBITDA

				Six months ended 30 June 2013
				US$m
Reported profit from continuing operations				63.0
Add: amortisation and exceptional items (note 2)				31.5
Add: depreciation				22.2
Underlying EBITDA				116.7
Less: exceptional items impacting EBITDA					(6.9)
Reported EBITDA					109.8

"EBITDA" is a non-GAAP measure and underlying EBITDA is defined as pre-exceptional profit from continuing operations before interest, tax, depreciation, amortisation and impairment to property, plant and equipment. Underlying EBITDA is used by the Board as a measure of the Group's performance.

4.         Earnings per Share

Basic earnings per share is calculated by dividing the earnings attributable to Ordinary shareholders by the weighted average number of Ordinary shares outstanding during the period.

For diluted earnings per share, the weighted average number of outstanding Ordinary shares is adjusted to assume conversion of all dilutive potential Ordinary shares. The dilution in respect of share options applies where the exercise price is less than the average market price of the Company's Ordinary shares during the period and the possible issue of shares under the Group's long-term incentive plans.

Reconciliations of the earnings and weighted average number of Ordinary shares used in the calculations are set out below:

			Six months ended  30 June 2013
			US$m
Basic and diluted earnings attributable to Ordinary shareholders:
From continuing operations			42.8
From discontinued operations			12.5
Total			55.3
Basic and diluted earnings attributable to Ordinary shareholders before amortisation and exceptional items:
From continuing operations			42.8
Add: amortisation and exceptional items after taxation			20.5
Total			63.3
From discontinued operations			12.5
Add: exceptional items after taxation			(12.5)
Total			-
			millions
Basic weighted average number of Ordinary shares			146.4
Dilutive outstanding share options			1.1
Long term incentive plans			2.6
Adjusted weighted average number of Ordinary shares			150.1
			cents
Basic EPS:
From continuing operations			29.3
From discontinued operations			8.5
			37.8
Diluted EPS:
From continuing operations			28.5
From discontinued operations			8.3
			36.8
Earnings per share before amortisation and exceptional items
Basic EPS:
From continuing operations			43.3
From discontinued operations			-
			43.3
Diluted EPS:
From continuing operations			42.2
From discontinued operations			-
			42.2

6.         Financial Record*

	2012 US$m	2011 US$m	2010 US$m	2009 US$m
Revenue	1,309.0	975.1	656.0	486.4
EBITDA	242.9	162.5	95.7	66.4
Depreciation and non-exceptional impairment	(40.4)	(34.4)	(27.3)	(21.6)
Profit from continuing operations	202.5	128.1	68.4	44.8
Finance (charges) income	(8.7)	(2.4)	2.4	4.0
Share of associates' post tax profits	1.5	1.7	1.6	1.5
Profit before taxation from continuing operations	195.3	127.4	72.4	50.3
Taxation	(54.7)	(35.7)	(21.7)	(15.3)
Profit for the year from continuing operations	140.6	91.7	50.7	35.0
Profit for the year from discontinued operations	-	1.1	9.1	9.3
Profit for the year	140.6	92.8	59.8	44.3
Basic earnings per share:
Continuing operations	93.0c	63.1c	35.6c	23.1c
Continuing and discontinued operations	93.0c	63.9c	42.6c	30.2c
Diluted earnings per share
Continuing operations	90.8c	61.8c	34.9c	22.6c
Continuing and discontinued operations	90.8c	62.6c	41.7c	29.6c
Dividend per share#	28.4c	23.9c	19.5c	16.4c
Total assets
Non-current assets	1,254.9	1,234.1	566.9	396.8
Net current assets	464.4	357.9	448.5	583.8
	1,719.3	1,592.0	1,015.4	980.6
Financed by:
Shareholders' funds (including non-controlling interests)	1,332.7	1,146.9	942.6	914.9
Non-current liabilities	386.6	445.1	72.8	65.7
	1,719.3	1,592.0	1,015.4	980.6
Net assets per share	906.6c	783.9c	711.4c	692.1c

*    Information is stated before exceptional items and amortisation of intangible assets.

#   Dividend per share is stated on a declared basis. The interim dividend per share has been converted from pence per share  into cents per share using the exchange rate on the date it was paid and the final dividend has been converted into cents per share using the exchange rate on the date it was approved.

 

END

 

 

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