UTV Media plc
("UTV" or "the Company" or "the Group")
Belfast, London & Dublin - 18 March 2015: UTV Media plc today announces
preliminary results for the year ended 31 December 2014
Financial highlights on continuing operations*
* Group revenue of £116.0m (2013 restated: £107.2m)
* Pre-tax profits of £17.2m (2013 restated: £17.0m)
* Group operating profit of £19.7m (2013: £20.1m) - 2014 includes UTV Ireland
start-up costs of £3.0m
* Net debt £46.2m (2013: £49.6m)
* Diluted adjusted earnings per share from continuing operations of 14.56p
(2013 restated: 14.32p)
* Proposed final dividend of 5.43p giving a full year dividend of 7.25p
(2013: 7.00p)
* As appropriate, references to profit include associate income but exclude
discontinued operations
Operational highlights
* Improving macroeconomic environment in the UK and Ireland
* Strong audience performances across Radio and Television
* talkSPORT revenues of £29.7m (2013: £24.3m) boosted by World Cup
* Strategic focus on radio and television - UTV Connect, PropertyPal, UTV
Drive and Recruit NI now divested
* UTV Ireland launched successfully on 1 January 2015
Prospects highlights
* Radio Ireland revenue (local currency) flat (down 10% after adjusting for
foreign exchange), Radio GB revenue flat against strong 2014 comparison and
Television revenue (excluding UTV Ireland) up 4%
* UTV Ireland performance impacted by delays to EPG positions, agency
negotiations and slower than expected audience build. Losses for year now
anticipated to be in the region of £6M
* Foreign exchange headwinds impacting profitability in Ireland
John McCann, Group Chief Executive, UTV Media plc, said:
"Record audiences for talkSPORT and market leading audiences in both Irish
Radio and Television underpin these results, providing confidence that our new
venture UTV Ireland, will emulate its older siblings and over time, build a
stronger audience base. The significant uplift in GB Radio's profitability
together with the recovery in Irish Radio and Television advertising are
particularly pleasing."
Key dates
* 14 May 2015 - Annual General Meeting and Interim Management Statement
* 29 May 2015 - Record date for payment of dividends
* 15 July 2015 - Payment of dividends
* 28 August 2015 - Interim Results Announcement
For further information contact:
Investor Enquiries www.utvmedia.com/investors
John McCann, Group CEO +44 (0) 28 9032 8122
Norman McKeown, Group Finance Director +44 (0) 28 9032 8122
Media Enquiries
Orla McKibbin, Director of +44 (0) 28 9026 2188 / +44 (0) 7879
Communications 666 427
Maitland
Martin Barrow +44 (0) 20 7379 5151 / +44 (0) 7843
068 912
Chairman's Statement
Overview
Your company made considerable progress during 2014, with turnover growing to £
116.0M (2013: £107.2M) and pre-tax profits increasing to £17.2M (2013: £17.0M)
even after absorbing pre-operational losses of £3.0M (2013: £0.1M) on our new
television station, UTV Ireland, which successfully launched on 1 January 2015.
Profit growth of 45% in our GB radio division was particularly strong and it
was pleasing to record a return to profit growth in our Irish radio division.
Despite the investment in UTV Ireland, which included a lower than budgeted
capital expenditure of £5.6M, group net debt reduced by £3.4M.
Results and dividends for the year*
Group operating profit of £19.7M (2013: £20.1M) was after accounting for
pre-operational losses on UTV Ireland of £3.0M (2013: £0.1M). After charging
lower net interest costs of £2.4M (2013: £2.9M) and foreign exchange losses of
£0.1M (2013: £0.2M), group profit before taxation was £17.2 M (2013: £17.0M).
Group net debt was lower at £46.2M (2013: £49.6M).
Dividends amounting to £6.8M (2013: £6.7M) were paid during the year,
representing a final ordinary dividend for 2014 of 5.25p per share and an
interim ordinary dividend for 2014 of 1.82p per share as shown in note 12.
A final dividend of £5.2M representing 5.43p per share is proposed for approval
at the Annual General Meeting. If approved, warrants in respect of it will be
despatched on 15 July 2015 to shareholders on the register at the close of
business on 29 May 2015.
*as appropriate, references to operating profit include income from associates
and joint ventures but exclude discontinued operations.
Review of activities
With our renewed focus on broadcasting, preparations for the launch of UTV
Ireland took centre stage in 2014. A licence was agreed with the Broadcasting
Authority of Ireland, programming was acquired and commissioned, staff were
recruited and trained, studio premises were fitted out and agreements were
reached with all major platform providers.
Although our new channel's licence is not that of a public service broadcaster,
the Minister for Communications, Energy and Natural Resources designated it as
having public service characteristics which facilitated carriage on the DTT
platform, thus ensuring universal coverage in Ireland, and prominence on
Electronic Programme Guides. Universal coverage and EPG prominence are
prerequisites to achieving our ambition that UTV Ireland will be the second
most watched channel, after state broadcaster RTE 1, within 2 years of
launching.
Pre-eminent audience delivery is at the heart of our broadcasting strategy and
the Group's track record in delivering market leading positions in radio in
Ireland and in television in Northern Ireland, is already well known, as is its
achievement in significantly increasing the audience to talkSPORT.
In a statement to the market on 9 January 2015, we confirmed that a review of
our strategic options in respect of our GB local radio stations was under way
and advised that it may, or may not, lead to the disposal of some, or all, of
our GB local radio stations. We also advised that any disposal would not
include talkSPORT, Sport Magazine, talkSPORT International and any of our Irish
radio stations.
Our Irish radio stations continued to deliver impressive audience performances,
occupying the number one slot in each of the major urban areas in which we
operate, including Dublin. This strong audience delivery mitigated the worst
effects of the extremely deep advertising recession which Ireland experienced
over the past few years. More importantly, it provides firm foundations for
growth as the Irish adverting market recovers. This recovery started to appear
as we moved through 2014, though the euro exchange rate provided some headwind
to growth.
With the tailwind of the FIFA World Cup, talkSPORT performed strongly in 2014,
both in terms of audience and financial performance. talkSPORT was the only UK
broadcaster to broadcast live commentary of every single World Cup match, a
total of 64 games. Audience reach achieved a record high of 3.3M weekly, 50%
greater than ten years ago and underlining the continuing popularity of good
quality radio. The station's pure sport focus means that more than four fifths
of all talkSPORT listeners are now male and over half are ABC1, underlining its
unique appeal to advertisers.
Our television channel in Northern Ireland maintained its long-standing
position as market leader. Its audience success is built on the
well-established formula of high quality local programming packaged around an
attractive network schedule within a strong regional brand. Our share of the
peaktime audience in Northern Ireland in 2014 was 24.7%, significantly higher
than the ITV network average of 21.3% and more than 4 times greater than our
nearest commercial competitor, C4.
Prospects
The year has started in line with our expectations for our established
broadcasting assets. talkSPORT's excellent audience performance underpinned our
initiative to seek our advertisers' support for improved airtime pricing. This
should help us to maintain talkSPORT's profitability in 2015 at the levels
achieved in the 2014 FIFA World Cup year. In Q1, talkSPORT's revenues are
expected to be down by 2%.
Our GB local radio stations continue to perform well, with 19% growth in
listening hours being recorded in the most recent RAJAR research. Q1 airtime
revenues are expected to be up by 4%.
The recovery in the Irish radio advertising market now seems to be under way
although growth is, as yet, reasonably modest. Our stations over time have
consistently outperformed the market due to their excellent listenership
positions. In the first quarter of 2015, we expect our Irish radio advertising
revenues to be broadly flat with further weakening of the euro reducing this to
around 10% down.
The UK television advertising market is enjoying good growth in Q1 2015 and
television advertising revenue derived from London to our Northern Ireland
television division, UTV, is expected to be up by 8% in the first quarter.
Growth from our Dublin office to UTV is also forecast to be positive at 9% up
in Q1. There continues to be some weakness in the Belfast marketplace where
budget cuts recently introduced by the Northern Ireland Assembly are depressing
government advertising expenditure, leading to a forecast 13% decline in
revenue from that office. Overall, UTV Northern Ireland's television
advertising is expected to be up by 3% in Q1.
UTV Ireland
We were delighted that UTV Ireland met its goal of launching across the
Republic of Ireland on 1 January 2015, which it achieved well within budget, in
spite of a number of challenges along the critical path. It took us
substantially longer than we had anticipated to receive the designation of the
channel's "public service" character which meant that we had very little time
before the launch date for engagement with our prospective audience about EPG
positions and, where necessary, retuning of DTT boxes. In turn, this delayed
meaningful negotiations with advertising agencies. As a consequence, our
initial audience levels and advertising revenues have been lower than planned.
I am pleased to report that audience share is starting to grow and, two months
into the launch, UTV Ireland was the second most watched channel in peaktime.
Under a management team with a proven track record in delivering audience
outperformance, I am confident that our ambition for UTV Ireland to be the
second most watched channel after state broadcaster, RTE 1, within a two year
timeframe will be achieved. While it is a very early stage in the financial
year of a start up venture, the delay referred to above has led to a change in
assumption for the financial performance of the new channel. Consequently the
current view is that the new channel will incur losses in the region of £6M in
2015.
Conclusion
Our broadcast model is fairly simple to articulate: deliver significant
audiences, sell those audiences effectively to advertisers and maintain a low
cost base. Broadcasters usually find the first part of that model, audience
delivery, the most difficult to accomplish but, as demonstrated in this report,
it is something that your company has consistently achieved and, in time, will
bring to our new growth platform, UTV Ireland.
I would like to thank my colleagues on the board, the management and, most
importantly, our staff for their tremendous hard work and commitment to the UTV
businesses over the past year. Many long hours have been spent by all those
involved with getting UTV Ireland on air, whilst their colleagues in other
parts of the group have continued to work hard to ensure that their businesses
maintain their strong market positions and profit contributions. We are very
fortunate to have such a wonderful team of professional and passionate people
striving to grow UTV.
Richard Huntingford
Chairman
18 March 2015
Group Income Statement
For the year ended 31 December 2014
Results Exceptional Total Results Exceptional Total
before Items before Items
Exceptional Exceptional
Items Items
Notes 2014 2014 2014 2013 2013 2013
(restated) (restated)
£000 £000 £000 £000 £000 £000
Continuing operations
Revenue 2 116,043 - 116,043 107,222 - 107,222
Operating costs (96,680) - (96,680) (87,359) - (87,359)
------- ------- ------- ------- ------- -------
Operating profit from 2 19,363 - 19,363 19,863 - 19,863
continuing operations
before tax and finance
costs
Share of results of 314 - 314 239 - 239
associates and joint
venture
------- ------- ------- ------- ------- -------
Profit from continuing 19,677 - 19,677 20,102 - 20,102
operations before tax
and finance costs
Finance revenue 50 - 50 49 - 49
Finance costs (2,407) - (2,407) (3,012) - (3,012)
Foreign exchange loss (75) - (75) (188) - (188)
------- ------- ------- ------- ------- -------
Profit from continuing 2 17,245 - 17,245 16,951 - 16,951
operations before tax
Taxation 3 (3,244) - (3,244) (3,379) 1,215 (2,164)
------- ------- ------- ------- ------- -------
Profit from continuing 14,001 - 14,001 13,572 1,215 14,787
operations after tax
Discontinued operations
Profit/(loss) from (201) - (201) 111 (1,157) (1,046)
discontinued operations
------- ------- ------- ------- ------- -------
Profit for the year 13,800 - 13,800 13,683 58 13,741
------- ------- ------ ------- ------- ------
Attributable to:
Equity holders of the 13,643 - 13,643 13,415 58 13,473
parent
Non-controlling 157 - 157 268 - 268
interest
------- ------- ------- ------- ------- -------
13,800 - 13,800 13,683 58 13,741
------- ------- ------ ------- ------- ------
Earnings per share 2014 2013
(restated)
Continuing operations
Basic 4 14.44p 15.19p
Diluted 4 14.37p 15.04p
Adjusted 4 14.63p 14.47p
Diluted adjusted 4 14.56p 14.32p
Continuing and
discontinued operations
Basic 4 14.23p 14.10p
Diluted 4 14.16p 13.96p
Adjusted 4 14.42p 14.58p
Diluted adjusted 4 14.35p 14.44p
Group Statement of Comprehensive Income
For the year ended 31 December 2014
Notes 2014 2013
£000 £000
Profit for the year 13,800 13,741
------- -------
Other comprehensive income
Items that will not be reclassified subsequently
to profit or loss:
Actuarial gain on defined benefit pension schemes 9 360 5,111
Income tax relating to items that will not be (72) (1,325)
reclassified subsequently
------- -------
288 3,786
------- -------
Items that may be reclassified subsequently to
profit or loss:
Cash flow hedges:
Loss arising during the year - (4)
Less transfers to the income statement - 321
Exchange (loss)/gain on translation of foreign (3,379) 932
operations
Income tax relating to items that may be (32) 78
reclassified
------- -------
(3,411) 1,327
------- -------
Other comprehensive (loss)/profit for the year, (3,123) 5,113
net of tax
------- -------
Total comprehensive profit for the year, net of 10,677 18,854
tax
------- -------
Attributable to:
Equity holders of the parent 10,520 18,586
Non-controlling interest 157 268
------- -------
10,677 18,854
------- -------
Group Balance Sheet
For the year ended 31 December 2014
Notes 2014 2013
(restated)
£000 £000
ASSETS
Non-current assets
Property, plant and equipment 17,360 11,874
Intangible assets 172,163 177,139
Investments accounted for using the equity 900 847
method
Deferred tax asset 3 1,531 1,952
------- -------
191,954 191,812
------- -------
Current assets
Inventories 2,390 1,758
Trade and other receivables 23,502 22,784
Financial asset 6 275 -
Cash and short term deposits 12,886 10,185
------- -------
39,053 34,727
------- -------
TOTAL ASSETS 231,007 226,539
------- -------
EQUITY AND LIABILITIES
Equity attributable to equity holders of the
parent
Equity share capital 55,557 55,557
Capital redemption reserve 50 50
Treasury shares (104) (123)
Foreign currency reserve 3,571 6,950
Retained earnings 45,428 38,531
------- -------
104,502 100,965
Non-controlling interest 53 106
------- -------
TOTAL EQUITY 104,555 101,071
------- -------
Non-current liabilities
Financial liabilities 7 55,399 55,866
Pension liability 9 1,971 4,598
Provisions 372 411
Deferred tax liabilities 3 34,266 35,066
------- -------
92,008 95,941
------- -------
Current liabilities
Trade and other payables 28,058 23,161
Financial liabilities 7 3,668 3,939
Tax payable 1,909 1,727
Provisions 809 700
------- -------
34,444 29,527
------- -------
TOTAL LIABILITIES 126,452 125,468
------- -------
TOTAL EQUITY AND LIABILITIES 231,007 226,539
------- -------
Group Cash Flow Statement
For the year ended 31 December 2014
Notes 2014 2013
(restated)
£000 £000
Operating activities
Profit before tax (i) 17,044 17,062
Adjustments to reconcile profit before tax to
net cash flows from operating activities
Foreign exchange loss/(gain) 75 188
Net finance costs 2,357 2,963
Share of results of associates and joint (272) (217)
venture
Non cash decrease in contingent consideration - (2,859)
Consideration receivable from disposal of (1,175) -
discontinued operations
Amortisation and impairment of intangible - 188
assets
Depreciation of property, plant and equipment 1,936 1,919
Loss from sale of property, plant and 32 (4)
equipment
Share based payments 303 419
Difference between pension contributions paid (2,454) (3,224)
and amounts recognised in the income
statement
Increase in inventories (632) (115)
(Increase)/decrease in trade and other (1,031) 1,339
receivables
Increase/(decrease) in trade and other 4,783 (2,987)
payables
Increase/(decrease) in provisions 70 (60)
------- -------
Cash generated from operations before 21,036 14,612
exceptional costs
Exceptional costs - (227)
Tax paid (2,480) (2,460)
------- -------
Net cash inflow from operating activities 18,556 11,925
------- -------
Investing activities
Interest received 51 58
Proceeds on disposal of property, plant and 20 16
equipment
Purchase of property, plant and equipment (7,622) (1,768)
Income received from associates and joint 235 229
venture
Proceeds from the disposal of discontinued 900 -
operations
Outflow on acquisition of subsidiary - (200)
undertaking
------- -------
Net cash flows from investing activities (6,416) (1,665)
------- -------
Financing activities
Borrowing costs (1,816) (1,891)
Swap cost - (321)
Dividends paid to equity shareholders (6,766) (6,677)
Dividends paid to non-controlling interests (210) (460)
Acquisition of treasury shares (506) -
Repayment of borrowings (3,940) (4,216)
Proceeds from borrowings 3,879 3,000
------- -------
Net cash flows used in financing activities (9,359) (10,565)
------- -------
Net increase/(decrease) in cash and cash 2,781 (305)
equivalents
Net foreign exchange differences (80) 51
Cash and cash equivalents at 1 January 10,185 10,439
------- -------
Cash and cash equivalents at 31 December 8 12,886 10,185
------- -------
i. Includes both continuing and discontinued operations.
Group Statement of Changes in Equity
For the year ended 31 December 2014
Equity Capital Foreign Cash Share Non-
flow
share redemption Treasury currency hedge Retained holder controlling
capital reserve shares reserve reserve earnings equity interest Total
£000 £000 £000 £000 £000 £000 £000 £000 £000
At 1 January 55,557 50 (1,523) 6,018 (251) 28,680 88,531 480 89,011
2013
------ ------- ------- ------- ------- ------- ------- ------- -------
Profit for the - - - - - 13,473 13,473 268 13,741
year
Other - - - 932 251 3,930 5,113 - 5,113
comprehensive
(loss)/income
in the year
------ ------- ------- ------- ------- ------- ------- ------- -------
Total net - - - 932 251 17,403 18,586 268 18,854
comprehensive
(loss)/income
in the year
Treasury shares - - 1,400 - - (1,521) (121) - (121)
issued
Share based - - - - - 419 419 - 419
payment
Acquisition of - - - - - 228 228 (228) -
non-controlling
interests
Equity - - - - - (6,678) (6,678) (414) (7,092)
dividends paid
------ ------- ------- ------- ------- ------- ------- ------- -------
At 31 December 55,557 50 (123) 6,950 - 38,531 100,965 106 101,071
2013
------ ------- ------- ------- ------- ------- ------- ------- -------
Profit for the - - - - - 13,643 13,643 157 13,800
year
Other - - - (3,379) - 256 (3,123) - (3,123)
comprehensive
(loss)/income
in the year
------ ------- ------- ------- ------- ------- ------- ------- -------
Total net - - - (3,379) - 13,899 10,520 157 10,677
comprehensive
(loss)/income
in the year
Acquisition of - - (506) - - - (506) - (506)
treasury shares
Treasury shares - - 525 - - (525) - - -
issued
Share based - - - - - 303 303 - 303
payment
Equity - - - - - (6,780) (6,780) (210) (6,990)
dividends paid
------ ------- ------- ------- ------- ------- ------- ------- -------
At 31 December 55,557 50 (104) 3,571 - 45,428 104,502 53 104,555
2014
------ ------- ------- ------- ------- ------- ------- ------- -------
Notes to the accounts
For the year ended 31 December 2014
1. Basis of preparation
The Group's financial statements consolidate those of UTV Media plc, and its
subsidiaries (together referred to as the "Group") and the Group's interest in
associates and jointly controlled entities.
The Group financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRSs) as adopted by the European
Union as they apply to the financial statements of the Group for the year ended
31 December 2014 and applied in accordance with the Companies Act 2006. The
accounts are principally prepared on the historical cost basis except where
other bases are applied under the Group's accounting policies.
The Group has adopted the following new standards that are relevant for the
preparation of the financial statements for the year ended 31 December 2014:
IFRS 10 "Consolidated Financial Statements", IFRS 11 "Joint Arrangements ("IFRS
11"), IFRS 12 "Disclosure of Interests in Other Entities", IAS 27R "Separate
Financial Statements" and IAS 28R "Investments in Associates and Joint
Ventures". With the exception of new disclosures and the adoption of IFRS 11,
the application of new standards effective from 1 January 2014 have not had an
impact on the Group's financial statements.
IFRS 11 establishes a principle that applies to the accounting for all joint
arrangements, whereby parties to the arrangement account for their underlying
contractual rights and obligations relating to the joint arrangement. On
adoption of this standard the Group's existing joint ventures, which were
previously accounted for by recognising the Group's share of the assets,
liabilities, revenue and expenses relating to the joint venture, are now
accounted for using the equity method. Although a number of line items within
the Group Income Statement, Group Balance Sheet and Group Cash Flow have been
restated for the year ended 31 December 2013, profit for the period and total
equity of the Group are unaffected. The more significant changes within the
Group Income Statement relate to reductions in revenues plus operating profit
before finance of £549,000 and £59,000 respectively, with increases of £50,000
and £109,000 in losses from discontinued operations and the share of results of
associates and joint ventures accounted for using the equity method,
respectively. Within the Group Balance Sheet the more significant changes at 31
December 2013 relate to reductions in intangibles of £437,000, trade and other
receivables of £781,000, cash and short term deposits of £506,000 plus trade
and other payables £1,004,000, respectively, with an increase in investments
accounted for using the equity method of £733,000. There was no impact on the
Group's Statement of Comprehensive Income or the Group Statement of Changes in
Equity.
In 2013 certain of the Group's New Media businesses were identified as being
non-core to the future strategy of the Group and have subsequently been
disposed of or trading ceased. Consequently the Group Income Statement reflects
the classification of these businesses as discontinued operations.
The financial information set out in the preliminary announcement does not
constitute statutory accounts within the meaning of Section 435 of the
Companies Act 2006 in respect of the accounts for the year ended 31 December
2014. The statutory accounts for the year ended 31 December 2013, upon which
the Company's auditors have given a report which was unqualified and did not
contain a statement under section 498(2) or (3) of the Companies Act 2006, have
been delivered to the Registrar of Companies. The statutory accounts for the
year ended 31 December 2014 have yet to be signed. They will be finalised on
the basis of the financial information presented by the directors in this
preliminary announcement and will be delivered to the Registrar of Companies in
due course.
2. Revenue and segmental analysis
The tables below present revenue and segment result information regarding the
Group's operating segments for the years ended 31 December 2014 and 2013 on the
basis of how the Group was managed during 2014. These business segments all
operate as part of the Group's continuing operations.
Revenue represents the amounts derived from the provision of goods and services
which fall within the Group's ordinary activities, stated net of value added
tax. Revenue is principally generated from advertising and sponsorship.
Transfer prices between business segments are set on an arm's length basis in a
manner similar to transactions with third parties.
As outlined in the 2013 Report and Accounts, the Group's strategy was refined
to focus predominately on broadcasting and to exit from non-core activities,
all of which resided within the New Media division, a fourth operating segment
previously reported on within the Group. These non-core activities have been
classified as discontinued operations. Tibus and Simply Zesty, the continued
activities which previously resided within the New Media operating segment,
have been incorporated within the Television operating segment.
The following tables present revenue, profit before tax and business segment
information regarding the Group's business segments for the years ended 31
December 2014 and 2013. The figures for the year ended 31 December 2013 have
been restated to reflect the adoption of IFRS11 as outlined in note 1, together
with the change in segments noted above.
Revenue
Year ended 31 December 2014
Radio
Radio GB Ireland Television Total
£000 £000 £000 £000
Sales to third parties 56,396 20,463 39,184 116,043
Intersegmental sales 649 1,223 2,316 4,188
------- ------- ------- -------
57,045 21,686 41,500 120,231
------- ------- ------- -------
Year ended 31 December 2013
Radio
Radio GB Ireland Television Total
(restated) (restated) (restated)
£000 £000 £000 £000
Sales to third parties 49,872 20,767 36,583 107,222
Intersegmental sales 541 1,219 2,783 4,543
------- ------- ------- -------
50,413 21,986 39,366 111,765
------- ------- ------- -------
2. Revenue and segmental analysis (continued)
Results
Year ended 31 December 2014
Radio GB Radio Television Total
Ireland
£000 £000 £000 £000
Segment operating profit 11,331 5,384 6,496 23,211
------- ------- -------
Central costs (3,848)
Associate and Joint Venture income 314
-------
Profit before tax and finance 19,677
costs
Net finance cost (2,357)
Foreign exchange loss (75)
-------
Profit before taxation 17,245
-------
Year ended 31 December 2013
Radio GB Radio Television Total
Ireland
(restated) (restated) (restated) (restated)
£000 £000 £000 £000
Segment operating profit 7,807 5,121 9,700 22,628
------- ------- -------
Central costs (2,765)
Associate and Joint Venture 239
income
-------
Profit before tax and finance 20,102
costs
Net finance cost (2,963)
Foreign exchange gain (188)
-------
Profit before taxation 16,951
-------
3. Taxation
(a) Tax on profit on ordinary activities
2014 2013
£000 £000
Current income tax:
UK corporation tax on profits for the year (2,962) (2,453)
Adjustments in respect of previous years 431 248
------- -------
(2,531) (2,205)
------- -------
Foreign tax:
ROI corporation tax on profits for the year (116) (346)
Adjustments in respect of previous years (27) 16
------- -------
(143) (330)
------- -------
Total current tax (2,674) (2,535)
Deferred tax:
Origination and reversal of timing differences (580) (684)
Adjustments in respect of previous years 10 (160)
------- -------
Tax charge in the income statement on operating (3,244) (3,379)
activities
Exceptional deferred tax credit - 1,215
------- -------
Total tax charge (3,244) (2,164)
------- -------
The tax charge in the Income Statement is disclosed as:
Tax charge on continuing operations (3,244) (2,164)
Tax credit on discontinued operations - -
------- -------
Tax charge in the income statement (3,244) (2,164)
------- -------
Tax relating to items in the Statement of Comprehensive
Income
Deferred tax:
Actuarial gain on pension schemes (72) (1,022)
Revaluation of cash flow hedges - (61)
Valuation of long term incentive plan (32) 139
Exceptional deferred tax charge - (303)
------- -------
Tax charge in the statement of comprehensive income (104) (1,247)
------- -------
4. Earnings per share
Basic earnings per share are calculated based on the profit for the financial
year attributable to equity holders of the parent and on the weighted average
number of shares in issue during the year.
Adjusted earnings per share are calculated based on the profit for the
financial year attributable to equity holders of the parent adjusted for the
exceptional items and the impact of net finance costs under IAS 19 "Employee
Benefits (Revised)". This calculation uses the weighted average number of
shares in issue during the year.
Diluted earnings per share are calculated based on profit for the financial
year attributable to equity holders of the parent. Diluted adjusted earnings
per share are calculated based on profit for the financial year attributable to
equity holders of the parent before exceptional items and the impact of net
finance costs under IAS 19 "Employee Benefits (Revised)". In each case the
weighted average number of shares is adjusted to reflect the dilutive potential
of the awards expected to be vested on the Long Term Incentive Schemes.
The split of the figures for the year ended 31 December 2013 between continuing
and discontinued oprations has been restated to reflect the adoption of IFRS11
as outlined in note 1.
The following reflects the income and share data used in the basic, adjusted,
diluted and diluted adjusted earnings per share calculations:
Net profit attributable to equity holders
2014 2013
Continuing Discontinued Total Continuing Discontinued Total
Operations Operations Operations Operations
(restated) (restated)
£000 £000 £000 £000 £000 £000
Net profit/(loss) 13,844 (201) 13,643 14,519 (1,046) 13,473
attributable to
equity holders
Adjustments to net 187 - 187 523 - 523
financing costs
Exceptional items - - - (1,215) 1,157 (58)
------ ------ ------ ------ ------ ------
Total adjusted and 14,031 (201) 13,830 13,827 111 13,938
diluted profit
attributable to
equity holders
------- ------- ------- ------- ------- -------
Weighted average number of shares
2014 2013
thousands thousands
Shares in issue 95,903 95,903
Weighted average number of treasury (23) (325)
shares
------- -------
Weighted average number of shares for 95,880 95,578
basic and adjusted earnings per share
(excluding treasury shares)
Effect of dilution of the Long Term 467 959
Incentive Plan
------- -------
96,347 96,537
------- -------
4. Earnings per share (continued)
Earnings per share
2014 2013
(restated)
From continuing operations
Basic 14.44p 15.19p
------- -------
Diluted 14.37p 15.04p
------- -------
Adjusted 14.63p 14.47p
------- -------
Diluted adjusted 14.56p 14.32p
------- -------
From continuing and discontinued operations
Basic 14.23p 14.10p
------- -------
Diluted 14.16p 13.96p
------- -------
Adjusted 14.42p 14.58p
------- -------
Diluted adjusted 14.35p 14.44p
------- -------
From discontinued operations
Basic 0.21p (1.09)p
------- -------
Diluted 0.21p (1.08)p
------- -------
Adjusted 0.21p 0.12p
------- -------
Diluted adjusted 0.21p 0.11p
------- -------
5. Dividends
2014 2013
Equity dividends on ordinary shares £000 £000
Declared and paid during the year
Final for 2013: 5.25p (2012: 5.25p) 5,035 5,001
Interim for 2014: 1.82p (2013: 1.75p) 1,745 1,677
------- -------
Dividends paid 6,780 6,678
------- -------
Proposed for approval at Annual General Meeting (not
recognised as a liability at 31 December)
Final dividend for 2014: 5.43p (2013: 5.25p) 5,205 5,032
------- -------
6. Financial asset
2014 2013
£000 £000
Contingent consideration 275 -
------ -------
Contingent consideration receivable relates to amounts due in respect of the
disposal of certain of the Group's discontinued businesses during the year.
7. Financial liabilities
2014 2013
£000 £000
Current
Current instalments due on bank loans 3,668 3,939
Non-current
Non-current instalments due on bank loans 55,399 55,866
------ ------
59,067 59,805
------ -------
The bank loans at 31 December 2014 are stated net of £509,000 (2013: £730,000)
of deferred financing costs.
8. Net Debt
2014 2013
£000 £000
Bank loans (59,067) (59,805)
Cash and short term deposits 12,886 10,185
------ ------
(46,181) (49,620)
------ -------
9. Pension schemes
The IAS 19 deficit at 31 December 2014 is £1,971,000 compared with a deficit of
£4,598,000 at 31 December 2013. The reduction in the deficit was primarily
driven by adjustments realised following the actuarial review in the year plus
increased funding by the company.
The Group funded a discretionary amount of £1,209,000 towards the actuarial
deficit in 2014 (2013: £1,209,000) by means of a cash transfer and has agreed
to make a further payment of £1,209,000 in 2015. In addition, during the
period, the option was exercised to transfer properties back to Group from the
scheme for an agreed contribution of £1,450,000. For accounting purposes these
transactions are treated as part of the schedule of contributions and hence are
accounted for on a cash basis, with no de-recognition of the properties or
recognition of any future liabilities in the Group's financial statements
10. Related party transactions
The nature of related parties disclosed in the consolidated financial
statements for the Group as at and for the year ended 31 December 2013 has not
changed. There have been no significant related party transactions in the year
ended 31 December 2014.
This summary has been approved by our Directors for release to the Press today
18 March 2015 and the full printed Annual Report and Accounts will be posted to
Shareholders and Stock Exchanges on 14 April 2015. Copies will be available to
the public at the Company's registered office Ormeau Road, Belfast, BT7 1EB
from that date.