Change in Presentational Currency

Keywords Studios PLC
28 June 2024
 

28 June 2024

  

Keywords Studios plc ("Keywords Studios", "Keywords", the "Group")

Change in Presentational Currency

 

Keywords Studios, the global provider of creative and technology-enabled solutions to the video games and entertainment industries, today announces that it has decided to change its presentational currency from euro to US Dollar with effect from 1 January 2024.

 

The Company has historically reported its results in euros due its revenues being solely euro denominated in the early stages of its development. As the business has grown into a global business, it now operates in a range of currencies, with the proportion of the Group's revenues originating in US dollars growing to c.60% in recent years. As such, the Board believes that the change in presentational currency will provide investors and other stakeholders with greater transparency of the Group's performance and reduced foreign exchange volatility.

 

Dividends will continue to be declared in sterling and will continue to follow the existing progressive dividend policy.

 

As noted above, the change in the Group's presentational currency will be effective from 1 January 2024. Consequently, the Group's first half results for the six-month period ending 30 June 2024, and all subsequent financial information, will be prepared using US dollars as the presentational currency.

 

The Group's primary consolidated financial statements, together with alternative performance measures, for the financial years ended 31 December 2022 and 31 December 2023, and for the half ended on 30 June 2023 (collectively the 'Restated Financial Information'), has been re-presented in US dollars and is set out herein for comparative purposes.

 

For further information, please contact:

 

Keywords Studios

Giles Blackham

Director of Investor Relations

+44 7714 134 681

gblackham@keywordsstudios.com

Deutsche Numis

Nomad & Joint Corporate Broker

Stuart Skinner / Will Baunton

+44 20 7260 1000

 

 

MHP Group

Financial Communications

Katie Hunt / Eleni Menikou / Charles Hirst

+44 7884 494 112 / +44 20 3128 8100

keywords@mhpgroup.com

Barclays

Joint Corporate Broker

Tom Macdonald / Stuart Jempson

+44 20 7029 8000

 


 

 


 

 

 About Keywords Studios (www.keywordsstudios.com)

Keywords Studios is a global provider of creative and technology-enabled solutions to the video games and entertainment industries. Established in 1998, and now with over 70 facilities in 26 countries strategically located in Asia, Australia, the Americas, and Europe, it provides services across the entire content development life cycle through its Create, Globalize and Engage Divisions to a large blue-chip client base across the globe.

Keywords Studios has a strong market position, providing services to 24 of the top 25 most prominent games companies and contributing to over 70% of the 2023 Game Awards winners. Across the games and entertainment industry, clients include Activision Blizzard, Bandai Namco, Bethesda, Electronic Arts, Epic Games, Konami, Microsoft, Netflix, Riot Games, Square Enix, Supercell, Take-Two, Tencent and Ubisoft. Recent titles worked on include Starfield, Baldur's Gate 3, Diablo IV, Hogwarts Legacy, Elden Ring, Fortnite, Valorant, League of Legends and Clash Royale. Keywords Studios is listed on AIM, the London Stock Exchange regulated market (KWS.L).


Unaudited (Restated) Consolidated statement of comprehensive income



Year ended

Half Year

Year ended



31 December

30 June

31 December



2023

2023

2022

 


$'000

$'000

$'000

Revenue from contracts with customers


842,609

413,274

725,817

Cost of sales


(519,696)

(256,743)

(445,027)

Gross profit


322,913

156,531

280,790

Other income


-

-

1,220

Share-based payments expense


(23,743)

(10,177)

(19,689)

Costs of acquisition and integration


(29,424)

(7,876)

(8,673)

Amortisation of intangible assets


(28,150)

(13,771)

(17,725)

Total of items excluded from adjusted profit measures


(81,317)

(31,824)

(46,087)

Other administration expenses


(192,339)

(93,017)

(160,360)

Administrative expenses


(273,656)

(124,841)

(206,447)

Operating profit


49,257

31,690

75,563






Financing income


666

165

2,096

Financing cost


(13,453)

(6,789)

(6,121)

Profit before taxation


36,470

25,066

71,538

Taxation


(16,226)

(9,407)

(21,736)

Profit after taxation


20,244

15,659

49,802






Other comprehensive income:





Items that will not be reclassified subsequently to profit or loss

 




Actuarial gain / (loss) on defined benefit plans


17

(160)

300

Items that may be reclassified subsequently to profit or loss

 




Exchange gain / (loss) in net investment in foreign operations


4,026

1,201

(12,081)

Exchange gain / (loss) on translation of foreign operations


6,116

6,745

(18,726)

Non-controlling interest; recycled on disposal of subsidiary


-

-

180

Tax related to items taken to other comprehensive income


1,337

-

-

Total comprehensive income / (expense)


31,740

23,445

19,475






Profit / (loss) for the period attributable to:





Owners of the parent


20,244

15,659

49,850

Non-controlling interest


-

-

(48)



20,244

15,659

49,802






Total comprehensive income / (expense) attributable to:





Owners of the parent


31,740

23,445

19,475



31,740

23,445

19,475






Earnings per share


$ cent

$ cent

$ cent

Basic earnings per ordinary share


25.65

19.93

64.70

Diluted earnings per ordinary share


25.31

19.20

61.88

 

Unaudited (Restated) Consolidated statement of financial position


At 31 December

At 30 June

At 31 December


2023

2023

2022


$'000

$'000

$'000

Non-current assets

 



Intangible assets

697,772

624,354

501,286

Right of use assets

46,362

48,131

40,181

Property, plant and equipment

55,458

58,191

47,766

Deferred tax assets

36,155

33,311

33,232

Investments

193

190

187


835,940

764,177

622,652

Current assets

 



Cash and cash equivalents

66,083

47,632

87,339

Trade receivables

99,275

103,345

87,001

Other receivables

91,992

98,185

65,468

Corporation tax recoverable

6,614

6,392

6,937

 

263,964

255,554

246,745

Current liabilities

 

 


Trade payables

15,780

16,081

16,935

Other payables

172,168

175,100

148,636

Loans and borrowings

-

-

48

Corporation tax liabilities

29,895

26,224

23,495

Lease liabilities

15,302

16,762

13,241

 

233,145

234,167

202,355

Net current assets / (liabilities)

30,819

21,387

44,390

Non-current liabilities

 

 


Other payables

13,251

21,067

19,527

Employee defined benefit plans

4,448

3,913

3,052

Loans and borrowings

140,618

59,997

7

Deferred tax liabilities

11,378

17,138

18,151

Lease liabilities

36,549

37,186

32,110


206,244

139,301

72,847

Net assets

660,515

646,263

594,195

Equity

 



Share capital

1,155

1,153

1,139

Share capital - to be issued

349

2,849

2,462

Share premium

64,956

64,906

56,795

Merger reserve

352,504

347,573

330,645

Foreign exchange reserve

(31,180)

(33,376)

(41,322)

Shares held in Employee Benefit Trust ("EBT")

(7,251)

(1,050)

-

Share-based payments reserve

90,005

79,580

73,786

Retained earnings

189,977

184,628

170,690

Total equity

660,515

646,263

594,195


Unaudited (Restated) Consolidated statement of cash flows


Year Ended

Half Year

Year Ended


31 December

30 June

31 December


2023

2023

2022


$'000

$'000

Cash flows from operating activities

 



Profit after taxation

20,244

15,659

49,802

Income and expenses not affecting operating cash flows

 



Depreciation and impairment - property, plant and equipment

31,225

11,769

19,241

Depreciation and impairment - right of use assets

17,205

8,422

15,133

Amortisation and impairment of intangible assets

28,150

13,771

17,725

Taxation

16,226

9,407

21,736

Share-based payments expense

23,743

10,177

19,689

Fair value movements in deferred and contingent consideration

9,945

4,668

2,369

Non-cash movements included in costs of acquisition and integration

2,899

-

-

Unwinding of discounted liabilities - deferred consideration

3,543

1,963

3,085

Unwinding of discounted liabilities - lease liabilities

1,562

680

1,005

Interest receivable

(666)

(165)

(326)

Fair value adjustments to employee defined benefit plans

1,243

721

538

Interest expense

6,235

2,408

1,336

Unrealised foreign exchange (gain) / loss

(1,201)

(3,762)

(681)


140,109

60,059

100,850

Changes in operating assets and liabilities

 



Decrease / (increase) in trade receivables

(228)

(9,994)

(12,466)

Decrease / (increase) in MMTC and VGTR receivable

(12,159)

(17,917)

(3,779)

Decrease / (increase) in other receivables

(7,672)

(12,397)

(6,497)

(Decrease) / increase in accruals, trade and other payables

8,206

2,697

19,754


(11,853)

(37,611)

(2,988)

Taxation paid

(22,645)

(8,575)

(18,285)

Settlement of deferred and contingent consideration related to continuous employment

(4,222)

-

-

Net cash generated by / (used in) operating activities

121,633

29,532

129,379

Cash flows from investing activities

 



Current year acquisition of subsidiaries net of cash acquired

(174,479)

(82,183)

(91,280)

Settlement of deferred liabilities on acquisitions

(33,020)

(10,943)

(27,655)

Acquisition of property, plant and equipment

(33,204)

(20,350)

(28,211)

Investment in intangible assets

(3,305)

(1,428)

(523)

Interest received

666

165

326

Net cash generated by / (used in) investing activities

(243,342)

(114,739)

(147,343)

Cash flows from financing activities

 



Cash proceeds, where EBT shares were utilised for the exercise of share-based payments

1,240

323

544

Repayment of loans

(105,176)

(35,047)

(89)

Drawdown of loans

244,804

95,000

-

Payments of principal on lease liabilities

(16,476)

(7,351)

(11,788)

Interest paid on principal of lease liabilities

(1,562)

(680)

(1,005)

Dividends paid

(2,311)

(1,561)

(2,053)

Company funded acquisition of shares by EBT

(15,991)

(5,075)

-

Shares issued for cash

1,647

1,618

7,029

Interest paid

(6,796)

(1,887)

(879)

Net cash generated by / (used in) financing activities

99,379

45,340

(8,241)

Increase / (decrease) in cash and cash equivalents

(22,330)

(39,867)

(26,205)

Exchange gain / (loss) on cash and cash equivalents

1,074

160

(6,187)

Cash and cash equivalents at beginning of the period

87,339

87,339

119,731

Cash and cash equivalents at end of the period

66,083

47,632

87,339

 

Notes forming part of the unaudited (restated) consolidated financial statements

1                     Basis of Preparation

 

The unaudited (restated) financial information should be read in conjunction with the Annual Report and Accounts for the year ended 31 December 2023; and the interim financial information for the six months ended 30 June 2023 all of which have been prepared in accordance with International Financial Reporting Standards ('IFRS'). The statutory accounts for the year ended 31 December 2023 were approved by the directors on 13 March 2024.

 

2                     Presentation Currency

 

Keywords Studios plc (the "Group") will present its consolidated financial statements for the year ending 31 December 2024 in US Dollars. In accordance with IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors, this change in presentation currency will be applied retrospectively.

 

The unaudited (restated) financial information included herein will form the basis of the comparative financial information to be included in the Annual Report and Accounts of the Group for the year ending 31 December 2024 and all published financial information from 1 January 2024 onwards.

 

In accordance with the provisions of IAS 21, the Effects of Changes in Foreign Exchange Rates, in respect of changes in presentational currency, financial information has been restated from Euro to US Dollars as follows:

 

•         assets and liabilities in non-US denominated currencies were translated into US dollars at the rates of exchange ruling at the relevant balance sheet date;

 

•         non-US dollar income statements and cash flows were translated into US dollars at average rates of exchange for the relevant period;

 

•         share capital, share premium and all other equity items were translated at the historical rates prevailing at 1 January 2013, the date of transition to IFRS, or the subsequent rates prevailing on the date of each relevant transaction; and

 

•         the cumulative foreign exchange translation reserve was set to zero on 1 January 2013, the date of transition to IFRS and this reserve has been restated on the basis that the Group has reported in US dollars since that date.

 



Year Ended

Half Year

Year Ended



31 December

30 June

31 December

Average


2023

2023

2022

Euro


1.08

1.08

1.06

Sterling


1.23

1.23

1.31

Canadian Dollar


0.74

0.74

0.79






Period end


 



Euro


1.10

1.09

1.07

Sterling


1.27

1.27

1.20

Canadian Dollar


0.75

0.75

0.74

 

 

Restated Alternative Performance Measures

 The Group reports a number of alternative performance measures ("APMs") to present the financial performance of the business, that are not GAAP measures as defined under IFRS. The Directors believe that these measures, in conjunction with the IFRS financial information, provide the users of the financial statements with additional information to provide a more meaningful understanding of the underlying financial and operating performance of the Group. The measures are also used in the Group's internal strategic planning and budgeting processes and for setting internal management targets.

These measures can have limitations as analytical tools and therefore should not be considered in isolation, or as a substitute for IFRS measures. APM's may not be calculated uniformly by all companies and therefore may not be directly comparable with similarly titled measures and disclosures of other companies. As these measures frequently exclude significant recurring transactions that impact financial performance (e.g. share-based payments expense), the adjusted measures will typically be higher than the corresponding IFRS measures and should not be regarded as a complete picture of the Group's financial performance, which is presented in the Total comprehensive income / (expense) of the Group.

The Restated Alternative performance measures should be read in conjunction with the Annual Report and Accounts for the year ended 31 December 2023; and the interim financial information for the six months ended 30 June 2023.

Divisional analysis

The following table presents revenue growth by division at actual exchange rates ("AER").


Full Year

Half Year

Full Year

Full Year

Half Year

Full Year


31 December

30 June

31 December

31 December

30 June

31 December


2023

2023

2022

2023

2023

2022


Revenue

Revenue

Revenue

Growth

Growth

Growth


AER

AER

AER

AER

AER

AER


$m

$m

$m

%

%

%

Create

363.0

175.5

290.1

25.1%

28.5%

29.6%

Globalize

301.6

156.8

316.0

 (4.6%)

0.8%

14.6%

Engage

178.0

81.0

119.7

48.7%

33.2%

9.3%


842.6

413.3

725.8

16.1%

17.1%

19.2%

Pro forma revenue

Pro forma revenue is calculated by adding pre-acquisition revenues of current year acquisitions to the current year revenue numbers, to illustrate the size of the Group had the acquisitions been included from the start of the financial year.


Full Year

Full Year

Full Year

 

31 December

31 December

31 December


2023

2023

2023


Revenue

Pre-acquisition revenue

Pro forma Revenue


AER

AER

AER


$m

$m

$m

Create

363.0

47.2

410.2

Globalize

301.6

1.1

302.7

Engage

178.0

6.9

184.9


842.6

55.2

897.8

Organic revenue at constant exchange rates

Organic revenue at constant exchange rates is calculated by adjusting the prior year revenues, adding pre-acquisition revenues for the corresponding period of ownership, and applying the prior period foreign exchange rates to the current periods, when translating studio results into the US Dollar reporting currency.

 


Full Year

Half Year

Full Year


31 December

30 June

31 December


2023

2023

2022


Organic revenue growth

Organic revenue growth

Organic revenue growth


%

%

%

Create

17.3%

22.1%

25.9%

Globalize

 (4.3%)

4.7%

23.4%

Engage

2.3%

-

9.7%


5.6%

10.4%

21.8%

 

Adjusted operating costs

This comprises Administrative expenses as reported in the Consolidated statement of comprehensive income, adding back share-based payments expense, costs of acquisition and integration, amortisation of intangible assets, depreciation and impairment, and deducting bank charges.  

 


Year End

Half Year

Year End


31 December

30 June

31 December


2023

2023

2022

Calculation

$'000

$'000

$'000

Administrative expenses

(273,656)

(124,841)

(206,447)

Share-based payments expense

23,743

10,177

19,689

Costs of acquisition and integration

29,424

7,876

8,673

Amortisation of intangible assets

28,150

13,771

17,725

Depreciation - property, plant and equipment

24,995

11,769

19,241

Depreciation - right of use assets

14,995

8,422

15,133

Bank charges

(781)

(380)

(695)

Adjusted operating costs

(153,130)

(73,206)

(126,681)

Adjusted operating costs as a % of revenue

18.2%

17.7%

17.5%

 

Adjusted operating profit

The Adjusted operating profit consists of the Operating profit as reported in the Consolidated statement of comprehensive income, adjusted for share-based payments expense, costs of acquisition and integration, and amortisation of intangible assets. In order to present the measure consistently year-on-year, the impact of other income is also excluded.

 


Year End

Half Year

Year End


31 December

30 June

31 December


2023

2023

2022

Calculation

$'000

$'000

$'000

Operating profit

49,257

31,690

75,563

Share-based payments expense

23,743

10,177

19,689

Costs of acquisition and integration

29,424

7,876

8,673

Amortisation of intangible assets

28,150

13,771

17,725

Other income

-

-

(1,220)

Adjusted operating profit

130,574

63,514

120,430

Adjusted operating profit as a % of revenue

15.5%

15.4%

16.6%

 

EBITDA

EBITDA comprises Operating profit as reported in the Consolidated statement of comprehensive income, adjusted for amortisation of intangible assets, depreciation and impairment, and deducting bank charges.


Year End

Half Year

Year End


31 December

30 June

31 December


2023

2023

2022

Calculation

$'000

$'000

$'000

Operating profit

49,257

31,690

75,563

Amortisation of intangible assets

28,150

13,771

17,725

Depreciation - property, plant and equipment

24,995

11,769

19,241

Depreciation - right of use assets

14,995

8,422

15,133

Bank charges

(781)

(380)

(695)

EBITDA

116,616

65,272

126,967

 

Adjusted EBITDA

Adjusted EBITDA comprises EBITDA, adjusted for share-based payments expense, and costs of acquisition and integration. In order to present the measure consistently year-on-year, the impact of other income is also excluded.

 


Year End

Half Year

Year End


31 December

30 June

31 December


2023

2023

2022

Calculation

$'000

$'000

$'000

EBITDA

116,616

65,272

126,967

Share-based payments expense

23,743

10,177

19,689

Costs of acquisition and integration

29,424

7,876

8,673

Other income

-

-

(1,220)

Adjusted EBITDA

169,783

83,325

154,109

Adjusted EBITDA as a % of revenue

20.1%

20.2%

21.2%

 

Adjusted profit before tax

Adjusted profit before tax comprises Profit before taxation as reported in the Consolidated statement of comprehensive income, adjusted for share-based payments expense, costs of acquisition and integration, amortisation of intangible assets, foreign exchange gains and losses, and unwinding of discounted liabilities. In order to present the measure consistently year-on-year, the impact of other income is also excluded.

 


Year End

Half Year

Year End


31 December

30 June

31 December


2023

2023

2022

Calculation

$'000

$'000

$'000

Profit before taxation

36,470

25,066

71,538

Share-based payments expense

23,743

10,177

19,689

Costs of acquisition and integration

29,424

7,876

8,673

Amortisation of intangible assets

28,150

13,771

17,725

Foreign exchange (gain) / loss

1,332

1,358

(1,770)

Unwinding of discounted liabilities - deferred consideration

3,543

1,963

3,085

Other income

-

-

(1,220)

Adjusted profit before tax

122,662

60,211

117,720

Adjusted profit before tax as a % of revenue

14.6%

14.6%

16.2%


Adjusted effective tax rate

The Adjusted effective tax rate is the Taxation expense as reported in the Consolidated statement of comprehensive income, adjusted for the tax impact of the adjusting items in arriving at Adjusted profit before tax, as a percentage of the Adjusted profit before tax.

 


Year End

Half Year

Year End


31 December

30 June

31 December


2023

2023

2022

Calculation

$'000

$'000

$'000

Adjusted profit before tax

122,662

60,211

117,720

Taxation

16,226

9,407

21,736

Effective tax rate before tax on adjusting items

13.2%

15.6%

18.5%

Tax arising on bridging items to Adjusted profit before tax

11,382

3,733

4,267

Adjusted taxation

27,608

13,140

26,003

Adjusted effective tax rate

22.5%

21.8%

22.1%

 

 

Adjusted earnings per share

The Adjusted profit after tax comprises the Adjusted profit before tax, less the Taxation expense as reported in the Consolidated statement of comprehensive income, adjusted for the tax impact of the adjusting items in arriving at Adjusted profit before tax.

 

The Adjusted earnings per share comprises the Adjusted profit after tax divided by the either the basic or diluted weighted average number of equity shares, as reported in note 8 of the 2023 Annual Report and Accounts and in the interim financial information for the 6 months ended 30 June 2023.

 


Year End

Half Year

Year End


31 December

30 June

31 December


2023

2023

2022

Calculation

$'000

$'000

$'000

Adjusted profit before tax

122,662

60,211

117,720

Taxation

(16,226)

(9,407)

(21,736)

Tax arising on bridging items to Adjusted profit before tax

(11,382)

(3,733)

(4,267)

Adjusted profit after tax

95,054

47,071

91,717





Weighted average number of equity shares

Number

Number

Number

Basic

78,910,471

78,558,801

76,979,596

Diluted

79,995,267

81,552,510

80,481,897





Adjusted earnings per share

$ c

$ c

$ c

Basic

120.46

59.92

119.14

Diluted

118.82

57.72

113.96

 

Return on capital employed (ROCE)

ROCE represents the Adjusted profit before tax (excluding net interest costs, unwinding of discounted lease liabilities and bank charges, and also adjusted to include pre-acquisition profits of current-year acquisitions), expressed as a percentage of the capital employed. As the Group continues to make multiple acquisitions each year, the calculation further adjusts the Adjusted profit before tax and the capital employed as if all the acquisitions made during each year were made at the start of that year. 

Capital employed represents Total equity as reported on the Consolidated statement of financial position, adding back employee defined benefit plan liabilities, cumulative amortisation of intangible assets (customer relationships), acquisition-related liabilities (deferred and contingent consideration), together with loans and borrowings, while deducting cash and cash equivalents.

 

 

 

Year End

Half Year

Year End


31 December

30 June

31 December


2023

2023

2022

Calculation

$'000

$'000

$'000

Adjusted profit before tax

122,662

60,211

117,720

Interest received

(666)

(165)

(326)

Bank charges

781

380

695

Interest expense

6,235

2,408

1,336

Unwinding of discounted liabilities - lease liabilities

1,562

680

1,005

Pre-acquisition profits of current year acquisitions

10,427

1,355

1,689

Adjusted profit before tax including pre-acquisition profit excluding interest for the period

141,001

64,869

122,119

Rolling 12 month adjustment

-

69,164

-

Adjusted profit before tax including pre-acquisition profit and excluding net interest

141,001

134,033

122,119

 

 

 

 

Total equity

660,515

646,263

594,195

Employee defined benefit plans

4,448

3,913

3,052

Cumulative amortisation of intangible assets (customer relationships)

84,579

73,335

62,182

Deferred and contingent consideration

61,627

83,281

67,465

Loans and borrowings

140,618

59,997

55

Cash and cash equivalents

(66,083)

(47,632)

(87,339)

Capital employed

885,704

819,157

639,610

Return on capital employed

15.9%

16.4%

19.1%



Free cash flow

Free cash flow represents Net cash generated by / (used in) operating activities as reported in the Consolidated statement of cash flows, adjusted for acquisition and integration cash outlay, capital expenditure, settlement of deferred consideration related to continuous employment, net interest paid, payments of principal on lease liabilities and is presented both before and after taxation paid. In order to present the measure consistently year-on-year, the impact of other income is also excluded.

 


Year End

Half Year

Year End


31 December

30 June

31 December


2023

2023

2022

Calculation

$'000

$'000

$'000

Net cash generated by / (used in) operating activities

121,633

29,532

129,379

Acquisition and integration cash outlay:




Costs of acquisition and integration

29,424

7,876

8,673

Fair value adjustments to contingent consideration

(334)

-

(2,369)

Non-cash movements in Deferred and contingent
consideration related to continuous employment

(9,611)

(4,668)

(3,240)

Fair value adjustments to property, plant
and equipment

(6,231)

-

-

Fair value adjustments to right of use assets

(2,210)

-

-

Other fair value movements within Cost of acquisition and integration

(2,899)

-

-

Acquisition of property, plant and equipment

(33,204)

(20,350)

(28,211)

Investment in intangible assets

(3,305)

(1,428)

(523)

Other income

-

-

(1,220)

Settlement of deferred and contingent consideration related to continuous employment

4,222

-

-

Interest received

666

165

326

Interest paid

(8,358)

(2,567)

(1,884)

Payments of principal on lease liabilities

(16,476)

(7,351)

(11,788)

Free cash flow after tax

73,317

1,209

89,143

Taxation paid

22,645

8,575

18,285

Free cash flow before tax

95,962

9,784

107,428

 

Adjusted free cash flow

Adjusted free cash flow is a measure of cash flow adjusting for capital expenditure that is supporting growth in future periods (as measured by capital expenditure in excess of maintenance capital expenditure). 

 


Year End

Half Year

Year End


31 December

30 June

31 December


2023

2023

2022

Calculation

$'000

$'000

$'000

Free cash flow before tax

95,962

9,784

107,428

Capital expenditure in excess of depreciation:




Acquisition of property, plant and equipment

33,204

20,350

28,211

Depreciation - property, plant and equipment

(24,995)

(11,769)

(19,241)

Capital expenditure in excess of depreciation

8,209

8,581

8,970

Adjusted free cash flow

104,171

18,365

116,398

 

Adjusted cash conversion rate

The Adjusted cash conversion rate is the Adjusted free cash flow as a percentage of the Adjusted profit before tax:

 

 

 

Year End

Half Year

Year End


31 December

30 June

31 December


2023

2023

2022

Calculation

$'000

$'000

$'000

Adjusted free cash flow

104,171

18,365

116,398

Adjusted profit before tax

122,662

60,211

117,720

Adjusted cash conversion ratio

84.9%

30.5%

98.9%

 

 

Net debt

The Group manages capital by monitoring debt to capital and net debt ratios. Net debt is calculated as Loans and borrowings (as shown in the Consolidated statement of financial position) less Cash and cash equivalents, and excludes Lease liabilities. 

 

 

 

Year End

Half Year

Year End


31 December

30 June

31 December


2023

2023

2022

Calculation

$'000

$'000

$'000

Loans and borrowings

140,618

59,997

55

Cash and cash equivalents

(66,083)

(47,632)

(87,339)

Net debt / (net cash) position

74,535

12,365

(87,284)

 

 

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