Notes 16-20
For the half year ended 30 June 2008
- 16. Trade and other payables: amounts falling due after more than one year
- 17. Reconciliation of movements in consolidated equity share owners' funds
- 18. Related party transactions
- 19. Non-GAAP measures of performance
- 20. Principal risks and uncertainties
19. Non-GAAP measures of performance
Reconciliation of profit before interest and taxation to Headline
PBIT for the six months ended 30 June 2008
| Six months ended 30 June 2008 £m |
Six months ended 30 June 2007 £m |
Year ended 31 December 2007 £m |
|
|---|---|---|---|
| Profit before interest and taxation |
398.5 | 339.0 | 846.1 |
| Amortisation and impairment of acquired intangible assets |
25.5 | 17.1 | 40.3 |
| Goodwill impairment | 20.0 | 29.0 | 44.1 |
| Goodwill write-down relating to utilisation of pre-acquisition tax losses |
0.7 | 1.0 | 1.7 |
| Gains on disposal of investments | (3.6) | (3.0) | (3.4) |
| Write-downs of investments | 12.3 | – | – |
| Share of exceptional gains of associates |
– | – | (0.8) |
| Headline PBIT/Headline operating profit |
453.4 | 383.1 | 928.0 |
| Finance income | 70.1 | 57.7 | 139.4 |
| Finance charges (excluding revaluation of financial instruments) |
(134.4) | (102.8) | (250.1) |
| (64.3) | (45.1) | (110.7) | |
| Interest cover on Headline PBIT |
7.1 times | 8.5 times | 8.4 times |
Calculation of Headline EBITDA
| Six months ended 30 June 2008 £m |
Six months ended 30 June 2007 £m |
Year ended 31 December 2007 £m |
|
|---|---|---|---|
| Headline PBIT (as above) | 453.4 | 383.1 | 928.0 |
| Depreciation of property, plant and equipment |
68.6 | 60.7 | 126.3 |
| Amortisation of other intangible assets |
9.9 | 8.7 | 18.1 |
| Headline EBITDA | 531.9 | 452.5 | 1,072.4 |
Reconciliation of profit before taxation to Headline PBT
and Headline earnings for the six months ended 30 June 2008
| Six months ended 30 June 2008 £m |
Six months ended 30 June 2007 £m |
Year ended 31 December 2007 £m |
|
|---|---|---|---|
| Profit before taxation | 338.5 | 294.1 | 719.4 |
| Amortisation and impairment of acquired intangible assets |
25.5 | 17.1 | 40.3 |
| Goodwill impairment | 20.0 | 29.0 | 44.1 |
| Goodwill write-down relating to utilisation of pre-acquisition tax losses |
0.7 | 1.0 | 1.7 |
| Gains on disposal of investments | (3.6) | (3.0) | (3.4) |
| Write-downs of investments | 12.3 | – | – |
| Share of exceptional gains of associates |
– | – | (0.8) |
| Revaluation of financial instruments | (4.3) | (0.2) | 16.0 |
| Headline PBT | 389.1 | 338.0 | 817.3 |
| Taxation | (101.2) | (90.9) | (204.3) |
| Minority interests | (29.1) | (21.3) | (49.2) |
| Headline earnings | 258.8 | 225.8 | 563.8 |
| Ordinary dividends | 103.8 | 89.6 | 138.9 |
| Dividend cover on Headline earnings |
2.5 times | 2.5 times | 4.1 times |
Headline PBIT margins before and after share of results of associates
| Margin (%) | Six months ended 30 June 2008 £m |
Margin (%) | Six months ended 30 June 2007 £m |
|
|---|---|---|---|---|
| Revenue | 3,339.1 | 2,921.0 | ||
| Headline PBIT | 13.6 | 453.4 | 13.1 | 383.1 |
| Share of results of associates (excluding exceptional gains) |
20.7 | 19.5 | ||
| Headline PBIT excluding share of results of associates |
13.0 | 432.7 | 12.4 | 363.6 |
Reconciliation of free cash flow for the six months ended 30 June 2008
| Six months ended 30 June 2008 £m |
Six months ended 30 June 2007 £m |
Year ended 31 December 2007 £m |
|
|---|---|---|---|
| Cash generated by operations | (31.2) | 115.7 | 1,120.6 |
| Plus: | |||
| Interest received | 33.3 | 17.4 | 102.6 |
| Investment income | 1.7 | 4.0 | 3.1 |
| Dividends received from associates | 14.8 | 16.2 | 28.0 |
| Share option proceeds | 5.9 | 21.4 | 34.8 |
| Movements in working capital and provisions |
572.5 | 348.7 | (25.4) |
| Proceeds on disposal of property, plant and equipment |
6.7 | 6.6 | 8.3 |
| Less: | |||
| Interest and similar charges paid | (99.9) | (84.3) | (212.0) |
| Purchases of property, plant and equipment |
(67.8) | (66.1) | (151.1) |
| Purchases of other intangible assets (including capitalised computer software) |
(6.2) | (6.1) | (19.7) |
| Corporation and overseas tax paid | (84.1) | (76.2) | (151.0) |
| Dividends paid to minority shareholders in subsidiary undertakings |
(26.4) | (20.4) | (38.9) |
| Free cash flow | 319.3 | 276.9 | 699.3 |