Notes 26-31
- 26. Authorised and issued share capital
- 27. Equity share owners’ funds
- 28. Acquisitions
- 29. Principal subsidiary undertakings
- 30. Related party transactions
- 31. Reconciliation to non-GAAP measures of performance
31. Reconciliation to non-GAAP measures of performance
Reconciliation of profit before interest and taxation to headline PBIT:
| 2008 £m |
2007 £m |
2006 £m |
|
|---|---|---|---|
| Profit before interest and taxation | 922.0 | 846.1 | 782.7 |
| Gains on disposal of investments | (3.4) | (3.4) | (7.3) |
| Goodwill impairment | 84.1 | 44.1 | 35.5 |
| Goodwill write-down relating to utilisation of pre-acquisition tax losses |
1.5 | 1.7 | 8.8 |
| Amortisation and impairment of acquired intangible assets | 78.4 | 40.3 | 43.3 |
| Share of exceptional losses/(gains) of associates | 0.5 | (0.8) | (4.0) |
| Investment write-downs | 30.5 | – | – |
| Cost of changes to corporate structure | 4.6 | – | – |
| Headline PBIT | 1,118.2 | 928.0 | 859.0 |
| Finance income | 169.6 | 139.4 | 111.0 |
| Finance charges (excluding revaluation of financial instruments) |
(319.4) | (250.1) | (203.7) |
| (149.8) | (110.7) | (92.7) | |
| Interest cover on headline PBIT | 7.5 times | 8.4 times | 9.3 times |
Reconciliation of profit before taxation to headline PBT and headline earnings:
| 2008 £m |
2007 £m |
2006 £m |
|
|---|---|---|---|
| Profit before taxation | 746.8 | 719.4 | 682.0 |
| Gains on disposal of investments | (3.4) | (3.4) | (7.3) |
| Goodwill impairment | 84.1 | 44.1 | 35.5 |
| Goodwill write-down relating to utilisation of pre-acquisition tax losses |
1.5 | 1.7 | 8.8 |
| Investment write-downs | 30.5 | – | – |
| Amortisation and impairment of acquired intangible assets | 78.4 | 40.3 | 43.3 |
| Costs of changes to corporate structure | 4.6 | – | – |
| Share of exceptional losses/(gains) of associates | 0.5 | (0.8) | (4.0) |
| Revaluation of financial instruments | 25.4 | 16.0 | 8.0 |
| Headline PBT | 968.4 | 817.3 | 766.3 |
| Taxation1 | (245.3) | (207.1) | (208.5) |
| Minority interests | (74.8) | (49.2) | (46.8) |
| Headline earnings | 648.3 | 561.0 | 511.0 |
| Ordinary dividends paid | 161.8 | 138.9 | 118.9 |
| Dividend cover on headline earnings | 4.0 times | 4.0 times | 4.4 times |
Note
- 1
- Excluding net deferred tax credit in relation to the amortisation of acquired intangible assets and other goodwill items.
Calculation of headline EBITDA:
| 2008 £m |
2007 £m |
2006 £m |
|
|---|---|---|---|
| Headline PBIT (as above) | 1,118.2 | 928.0 | 859.0 |
| Depreciation of property, plant and equipment | 149.6 | 126.3 | 129.1 |
| Amortisation of other intangible assets | 23.4 | 18.1 | 13.5 |
| Headline EBITDA | 1,291.2 | 1,072.4 | 1,001.6 |
Headline PBIT margins before and after share of results of associates:
| Margin % |
2008 £m |
Margin % |
2007 £m |
Margin % |
2006 £m |
|
|---|---|---|---|---|---|---|
| Revenue | 7,476.9 | 6,185.9 | 5,907.8 | |||
| Headline PBIT | 15.0% | 1,118.2 | 15.0% | 928.0 | 14.5% | 859.0 |
| Share of results of associates (excluding exceptional losses/gains) |
(46.5) | (40.6) | (37.1) | |||
| Headline operating profit | 14.3% | 1,071.7 | 14.3% | 887.4 | 13.9% | 821.9 |
Calculation of effective tax rate on headline PBT1:
| 2008 £m |
2007 £m |
2006 £m |
|
|---|---|---|---|
| Taxation (note 7) | (232.9) | (204.3) | (199.4) |
| Net deferred tax credit in relation to the amortisation of acquired intangible assets and other goodwill items |
(12.4) | (2.8) | (9.1) |
| Taxation1 | (245.3) | (207.1) | (208.5) |
| Headline PBT | 968.4 | 817.3 | 766.3 |
| Effective tax rate on headline PBT1 | 25.3% | 25.3% | 27.2% |
Note
- 1
- Excluding net deferred tax credit in relation to the amortisation of acquired intangible assets and other goodwill items.
Headline diluted earnings per ordinary share:
| 2008 £m |
2007 £m |
2006 £m |
|
|---|---|---|---|
| Headline earnings | 648.3 | 561.0 | 520.1 |
| Earnings adjustment: | |||
| Dilutive effect of convertible bonds | 0.8 | 0.9 | 1.1 |
| Weighted average number of ordinary shares |
1,169,602,949 | 1,227,016,974 | 1,242,232,290 |
| Headline diluted earnings per ordinary share |
55.5p | 45.8p | 41.2p |
Reconciliation of free cash flow:
| 2008 £m |
2007 £m |
2006 £m |
|
|---|---|---|---|
| Cash generated by operations | 1,195.0 | 1,120.6 | 860.6 |
| Plus: | |||
| Interest received | 133.0 | 102.6 | 75.2 |
| Investment income | 1.8 | 3.1 | 2.4 |
| Movement in working capital and provisions | 109.3 | (25.4) | 171.1 |
| Dividends from associates | 44.6 | 28.0 | 20.3 |
| Issue of shares | 10.6 | 34.8 | 70.9 |
| Proceeds on disposal of treasury shares | 6.9 | – | – |
| Proceeds on disposal of property, plant and equipment | 11.5 | 8.3 | 22.4 |
| Less: | |||
| Interest and similar charges paid | (269.2) | (212.0) | (135.1) |
| Purchases of property, plant and equipment | (196.8) | (151.1) | (167.8) |
| Purchases of other intangible assets (including capitalised computer software) |
(23.8) | (19.7) | (16.7) |
| Corporation and overseas tax paid | (182.5) | (151.0) | (162.0) |
| Dividends paid to minority shareholders in subsidiary undertakings |
(63.5) | (38.9) | (28.8) |
| Free cash flow | 776.9 | 699.3 | 712.5 |