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Notes 16-20

For the half year ended 30 June 2008

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