Preliminary Results -5-
March 21 2011 - 3:00AM
UK Regulatory
------------------------------------------- -------- --------
New centre openings and property purchase (42.7) (26.7)
------------------------------------------- -------- --------
Share Buybacks, settlement of share
awards and Dividends (31.4) (20.4)
------------------------------------------- -------- --------
Exceptional (cost)/receipt (13.7) 18.3
------------------------------------------- -------- --------
Other (3.0) (1.9)
------------------------------------------- -------- --------
Cash out (107.8) (29.7)
------------------------------------------- -------- --------
Change in cash & cash equivalents (42.5) 32.3
------------------------------------------- -------- --------
Opening Cash 245.1 219.5
------------------------------------------- -------- --------
FX 2.0 (6.7)
------------------------------------------- -------- --------
Closing balance - Cash, cash equivalents
and liquid investments 204.6 245.1
------------------------------------------- -------- --------
Cash flow from operations has increased GBP4.6 million from
GBP105.1 million to GBP109.7 million despite the reduction in
operating profit. This arose from a net working capital inflow in
2010 in contrast to an outflow in 2009.
The increase in free cash flow is GBP3.3 million arising from
lower interest and tax payments offset by increased maintenance
spend in our centres, in particular in the UK.
This cash inflow has enabled the business to pay an increased
dividend (GBP23.2 million), buy back shares (GBP7.3 million),
restructure the UK (GBP13.7 million to 31 December 2010) as well as
invest in capacity growth (GBP54.2 million) and purchase our first
property (GBP5.5 million). In 2010 we have opened or acquired 125
centres.
The net cash balance can be analysed as follows:
GBP million FY 2010 FY 2009
----------------------------------- -------- --------
Cash, cash equivalents and liquid
investments 204.6 245.1
----------------------------------- -------- --------
Bank and other loans (8.9) (6.0)
----------------------------------- -------- --------
Finance leases (4.2) (2.1)
----------------------------------- -------- --------
Net financial assets/net cash 191.5 237.0
----------------------------------- -------- --------
Of the balance of GBP191.5 million, GBP93.6 million was held in
Group immediately available for use, GBP65.3 million was held in
the regions and GBP32.6 million is set aside to support letters of
credit the business has issued and various other commitments of the
Group.
Risk management and leasing
With the recent publication of an Exposure Draft on lease
accounting there has been increased focus on the extent of our
lease liability. While the contents of any potential new accounting
standard remain uncertain it is not possible to estimate how or
what impact on our financial statements this might have. However I
can provide some insight into our lease exposures.
Our current annual property related lease rentals are circa
GBP400 million per annum and the minimum contractual lease rentals
on a GAAP basis total GBP1,557 million as disclosed in note 27 of
our audited Annual accounts, the NPV of which is circa GBP1,100
million. Having carried out our own analysis of what we believe to
be our actual exposures taking into account commercial reality and
from past experience, we estimate the NPV of our minimum lease
rental to be nearer circa GBP553 million or a little less than one
and half years of lease rental.
Principal risks and uncertainties
The principal risks and uncertainties affecting Regus plc remain
unchanged from those detailed on in the Regus plc 2009 Annual
Report and Accounts.
The principal risks and uncertainties described in the 2010
Annual Report and Accounts are:
-- Risk of economic downturn in significant markets;
-- Exposure to movements in property markets;
-- Exposure to movements in exchange rates;
-- Risks associated with the Group reorganisation and
restructuring; and
-- Risk associated with centrally managed applications and
systems.
Related parties
Details of related party transactions that have taken place in
the year can be found in note 29 to the. 2010 Annual Report and
Accounts. There have been no changes to the type of related
transactions entered into by the Group as described in the Regus
plc 2009 Annual Report and Accounts that had a material effect on
the financial statements for the period ended 31 December 2010.
Stephen Gleadle
Chief Financial Officer
21 March 2011
Consolidated Income Statement
Year Year
Before ended 31 Before ended 31
exceptional Exceptional December exceptional Exceptional December
GBPm items items 2010 items items 2009
Revenue 1,040.4 - 1040.4 1,055.1 - 1,055.1
Cost of sales (824.5) (11.9) (836.4) (819.5) - (819.5)
----------------- ------------ ------------ --------- ------------ ------------ ---------
Gross profit
(centre
contribution) 215.9 (11.9) 204.0 235.6 - 235.6
Administration
expense (193.4) (3.9) (197.3) (165.3) (2.6) (167.9)
Net income from
legal
settlement - - - - 18.3 18.3
Operating profit 22.5 (15.8) 6.7 70.3 15.7 86.0
Share of
post-tax profit
of joint
ventures 1.3 - 1.3 2.0 - 2.0
----------------- ------------ ------------ --------- ------------ ------------ ---------
Profit/(loss)
before
financing
costs 23.8 (15.8) 8.0 72.3 15.7 88.0
Finance expense (2.0) - (2.0) (4.4) - (4.4)
Finance income 1.8 - 1.8 3.3 - 3.3
----------------- ------------ ------------ --------- ------------ ------------ ---------
Profit/(loss)
before tax for
the period 23.6 (15.8) 7.8 71.2 15.7 86.9
Tax credit/
(charge) (5.6) (0.3) (5.9) (19.2) - (19.2)
------------ ------------ --------- ------------ ------------ ---------
Profit/(loss)
for the period 18.0 (16.1) 1.9 52.0 15.7 67.7
----------------- ------------ ------------ --------- ------------ ------------ ---------
Profit (loss)
attributable
to:
Equity
shareholders of
the parent 17.6 (16.1) 1.5 51.3 15.7 67.0
Non-controlling
interests 0.4 - 0.4 0.7 - 0.7
----------------- ------------ ------------ --------- ------------ ------------ ---------
Profit/(loss)
for the period 18.0 (16.1) 1.9 52.0 15.7 67.7
----------------- ------------ ------------ --------- ------------ ------------ ---------
Year Year
ended ended
31 December 31 December
Earnings per ordinary share (EPS): 2010 2009
Basic (p) 0.2 7.1
Diluted (p) 0.2 7.0
Basic before exceptionals (p) 1.9 5.4
Diluted before exceptionals (p) 1.9 5.3
Consolidated Statement of Comprehensive Income
Year ended Year ended
GBPm 31 Dec 2010 31 Dec 2009
Profit for the period 1.9 67.7
Other comprehensive income:
Foreign currency translation differences
for foreign operations 15.5 (29.9)
------------------------------------------ ------------- -------------
Other comprehensive income for the
period, net of income tax 15.5 (29.9)
Total comprehensive income for the
period 17.4 37.8
------------------------------------------ ------------- -------------
Total comprehensive income attributable
to:
Equity shareholders of the parent 17.0 37.1
Non-controlling interests 0.4 0.7
------------------------------------------ ------------- -------------
17.4 37.8
------------------------------------------ ------------- -------------
Regus (LSE:RGU)
Historical Stock Chart
From Jul 2024 to Aug 2024
Regus (LSE:RGU)
Historical Stock Chart
From Aug 2023 to Aug 2024
