Financial statements 2009 _.xls_ - Carillion - Annual Report and

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Financial statements 2009 _.xls_ - Carillion - Annual Report and Powered By Docstoc
					Consolidated income statement
For the year ended 31 December 2009
                                                                                                                             2009        2008
                                                                                                                 Note         £m          £m
Total revenue                                                                                                            5,426.5     5,205.8
Less: Share of jointly controlled entities’ revenue                                                                       (922.3)     (772.0)
Group revenue                                                                                                      2     4,504.2     4,433.8
Cost of sales                                                                                                           (4,154.4)   (4,069.4)
Gross profit                                                                                                               349.8       364.4
Administrative expenses                                                                                                   (262.4)     (329.8)
Other operating (expense)/income                                                                                   3        (2.5)        8.3
Group operating profit                                                                                             3        84.9        42.9
Analysed between:
Group operating profit before intangible amortisation, impairment of other
investments and non-recurring operating items                                                                             130.9       120.1
Intangible amortisation and impairment of other investments                                                        4      (30.8)      (54.5)
                                (1)
Non-recurring operating items                                                                                      5       (15.2)      (22.7)
Share of results of jointly controlled entities                                                                    2        65.9        45.1
Analysed between:
Operating profit                                                                                                           86.4         74.0
Net financial expense                                                                                                     (14.0)       (18.2)
Taxation                                                                                                                   (6.5)       (10.7)
Profit from operations                                                                                                    150.8         88.0
Analysed between:
Profit from operations before intangible amortisation, impairment of other
investments and non-recurring operating items                                                                             196.8       165.2
Intangible amortisation and impairment of other investments                                                        4      (30.8)      (54.5)
Non-recurring operating items(1)                                                                                   5       (15.2)      (22.7)
Non-operating items                                                                                                5        11.5        35.6
Net financial expense                                                                                              6       (14.6)       (7.7)
Analysed between:
Financial income                                                                                                          113.4       137.4
Financial expense                                                                                                        (128.0)     (145.1)
Profit before taxation                                                                                                    147.7       115.9
Analysed between:
Profit before taxation, intangible amortisation, impairment of other
investments, non-recurring operating items and non-operating items                                                        182.2       157.5
Intangible amortisation and impairment of other investments                                                        4      (30.8)      (54.5)
                                (1)
Non-recurring operating items                                                                                      5      (15.2)      (22.7)
Non-operating items                                                                                                5       11.5        35.6
Taxation                                                                                                           8      (11.5)       (4.1)
Profit for the year                                                                                                       136.2       111.8

Profit attributable to:
Equity holders of the parent                                                                                              132.4       108.3
Minority interests                                                                                                          3.8         3.5
Profit for the year                                                                                                       136.2       111.8

Earnings per share                                                                                                 9
Basic                                                                                                                      33.4p       28.4p
Diluted                                                                                                                    33.2p       28.2p

(1) This includes rationalisation costs, curtailment gain and the Office of Fair Trading penalty (see note 5).
Consolidated statement of comprehensive
income
For the year ended 31 December 2009
                                                                                                                 (1)
                                                                                             2009             2008
                                                                                    £m        £m       £m       £m
Profit for the year                                                                       136.2              111.8
Net gain/(loss) on hedge of net investment in foreign operations                   1.0               (8.9)
Currency translation differences on foreign operations                           (20.0)               8.9
Currency translation differences relating to minority interests                    0.1                0.2
Actuarial losses on defined benefit pension schemes                             (220.0)             (92.7)
                                                                                (238.9)             (92.5)
Taxation in respect of the above                                                  61.3               27.8
Share of recycled cash flow hedges within jointly controlled entities (net of
taxation)                                                                          9.9              10.4
Share of change in fair value of effective cash flow hedges within jointly
controlled entities (net of taxation)                                             (8.3)             (13.1)
Other comprehensive expense for the year                                                  (176.0)            (67.4)
Total comprehensive (expense)/income for the year                                          (39.8)             44.4

Attributable to:
Equity holders of the parent                                                               (43.7)             40.7
Minority interests                                                                           3.9               3.7
                                                                                           (39.8)             44.4

(1) Restated on adoption of IFRIC 14 (see note 33).
Consolidated statement of changes in equity
For the year ended 31 December 2009
                                                                                                                                          Equity
                                                       Share       Share   Translation   Hedging    Fair value    Merger   Retained shareholders’    Minority     Total
                                                      capital   premium       reserve     reserve     reserve    reserve   earnings        funds    interests    equity
                                                         £m          £m            £m         £m           £m        £m          £m           £m          £m        £m
At 1 January 2009 as previously reported              197.8       12.9          (0.9)     (17.0)           –     449.1      227.3        869.2          3.4     872.6
Impact of adoption of IFRIC 14                            –          –             –          –            –         –       (5.0)        (5.0)           –      (5.0)
At 1 January 2009 as restated                         197.8       12.9          (0.9)     (17.0)           –     449.1      222.3        864.2          3.4     867.6
Total comprehensive income(1)                             –          –         (19.2)       1.6            –         –      (26.1)        (43.7)        3.9     (39.8)
New share capital issued                                0.8        3.9             –          –            –         –          –           4.7           –       4.7
Acquisition of own shares                                 –          –             –          –            –         –       (4.2)         (4.2)          –      (4.2)
Share options exercised by employees                      –          –             –          –            –         –        0.5           0.5           –       0.5

Equity settled transactions (net of deferred tax)         –          –             –          –            –         –        2.8          2.8            –       2.8
Transfer between reserves                                 –          –             –          –            –     (29.7)      29.7             –           –         –
Dividends paid                                            –          –             –          –            –         –      (53.4)       (53.4)        (1.0)    (54.4)
At 31 December 2009                                   198.6       16.8         (20.1)     (15.4)           –     419.4      171.6        770.9          6.3     777.2

At 1 January 2008 as previously reported              140.6        8.6          (2.8)     (14.3)         0.9     166.2      202.4        501.6          1.3     502.9
Impact of adoption of IFRIC 14                            –          –             –          –            –         –      (15.6)       (15.6)           –     (15.6)
At 1 January 2008 as restated                         140.6        8.6          (2.8)     (14.3)         0.9     166.2      186.8        486.0          1.3     487.3
Total comprehensive income(1)                             –          –           1.9       (2.7)           –         –       41.5         40.7          3.7      44.4
New share capital issued                               57.2        4.3             –          –            –     325.0          –        386.5            –     386.5
Acquisition of own shares                                 –          –             –          –            –         –       (4.7)        (4.7)           –      (4.7)

Equity settled transactions (net of deferred tax)         –          –             –          –            –         –        2.4          2.4            –       2.4
Transfer to income statement                              –          –             –          –         (0.9)        –          –         (0.9)           –      (0.9)
Transfer between reserves                                 –          –             –          –            –     (42.1)      42.1            –            –         –
Dividends paid                                            –          –             –          –            –         –      (45.8)       (45.8)        (1.6)    (47.4)
At 31 December 2008                                   197.8       12.9          (0.9)     (17.0)           –     449.1      222.3        864.2          3.4     867.6

(1) Restated on adoption of IFRIC 14 (see note 33).
Consolidated balance sheet
                                                             At 31 December   At 31 December    At 1 January
                                                                      2009            2008(1)        2008(1)
                                                      Note              £m               £m             £m
Assets
Non-current assets
Property, plant and equipment                          11           168.2           167.2          131.5
Intangible assets                                      12         1,241.3         1,276.9          555.8
Retirement benefit assets                              31             2.6            37.1           11.6
Investments in jointly controlled entities             13           133.3           238.6          185.9
Other investments                                      14            43.8               –           14.5
Deferred tax assets                                    15           132.5           103.9           13.7
Total non-current assets                                          1,721.7         1,823.7          913.0

Current assets
Inventories                                            16            37.2            44.6           30.5
Trade and other receivables                            18         1,038.4         1,186.8          858.7
Cash and cash equivalents                              19           267.2           257.3          327.5
Income tax receivable                                                 4.6             0.6            2.2
Derivative financial instruments                       27             1.0             1.1              –
Total current assets                                              1,348.4         1,490.4        1,218.9
Total assets                                                      3,070.1         3,314.1        2,131.9

Liabilities
Current liabilities
Borrowing                                              20           (54.0)          (58.0)         (13.9)
Derivative financial instruments                       27               –               –           (0.7)
Trade and other payables                               21        (1,683.6)       (1,721.8)      (1,175.7)
Provisions                                             22           (12.5)          (23.4)          (6.9)
Income tax payable                                                  (11.3)           (3.1)          (2.3)
Total current liabilities                                        (1,761.4)       (1,806.3)      (1,199.5)

Non-current liabilities
Borrowing                                              20          (188.3)         (426.0)        (358.5)
Retirement benefit liabilities                         31          (296.4)         (146.2)         (57.5)
Deferred tax liabilities                               15           (37.3)          (60.0)         (22.4)
Provisions                                             22            (9.5)           (8.0)          (6.7)
Total non-current liabilities                                      (531.5)         (640.2)        (445.1)
Total liabilities                                                (2,292.9)       (2,446.5)      (1,644.6)
Net assets                                                          777.2           867.6          487.3

Equity
Share capital                                          23           198.6           197.8          140.6
Share premium                                                        16.8            12.9            8.6
Translation reserve                                    24           (20.1)           (0.9)          (2.8)
Hedging reserve                                        24           (15.4)          (17.0)         (14.3)
Fair value reserve                                     24               –               –            0.9
Merger reserve                                         24           419.4           449.1          166.2
Retained earnings                                      24           171.6           222.3          186.8
Equity attributable to shareholders of the parent                   770.9           864.2          486.0
Minority interests                                                    6.3             3.4            1.3
Total equity                                                        777.2           867.6          487.3

(1) Restated on adoption of IFRIC 14 (see note 33).
Consolidated cash flow statement
For the year ended 31 December 2009
                                                                                          2009      2008
                                                                                Note       £m        £m
Cash flows from operating activities
Group operating profit                                                                  84.9       42.9
Depreciation, amortisation and impairment                                               67.7       86.5
Loss/(profit) on disposal of property, plant and equipment                               2.5       (8.3)
Share-based payment expense                                                              3.9        3.4
Other non-cash movements                                                                (4.5)      (7.9)
Non-recurring operating items                                                           15.2       22.7
Operating profit before changes in working capital                                     169.7      139.3
Decrease in inventories                                                                  4.1        4.1
Decrease/(increase) in trade and other receivables                                     107.3     (130.1)
(Decrease)/increase in trade and other payables                                        (51.5)     160.0
Cash generated from operations before pension deficit recovery
payments and restructuring costs                                                       229.6     173.3
Deficit recovery payments to pension schemes                                           (29.0)    (50.5)
Restructuring costs                                                                      1.0     (32.4)
Cash generated from operations                                                         183.5      90.4
Financial income received                                                               11.6      17.1
Financial expense paid                                                                 (23.3)    (36.6)
Taxation                                                                                 2.9       4.7
Net cash flows from operating activities                                               174.7      75.6

Cash flows from investing activities
Disposal of property, plant and equipment                                                5.5       20.5
Disposal of investments in jointly controlled entities                                 100.7       85.8
Dividends received from jointly controlled entities                                     38.6       25.0
Disposal of businesses, net of cash disposed of                                  30     57.2          –
Acquisition of subsidiaries, net of cash acquired                                30        –     (138.2)
Acquisition of intangible assets                                                        (4.3)      (2.7)
Acquisition of property, plant and equipment                                           (48.5)     (44.2)
Acquisition of equity in and net loan advances to jointly controlled entities
                                                                                       (15.2)     (28.4)
Acquisition of other non-current asset investments                                         –       (1.7)
Net cash flows from investing activities                                               134.0      (83.9)

Cash flows from financing activities
Proceeds from issue of share capital                                                      1.0       0.3
Repayment of bank and other loans                                                      (233.6)     (7.8)
Payment of finance lease liabilities                                                    (16.8)    (16.3)
Dividends paid to equity holders of the parent                                          (53.4)    (45.8)
Dividends paid to minority interests                                                     (1.0)     (1.6)
Net cash flows from financing activities                                               (303.8)    (71.2)

Increase/(decrease) in net cash and cash equivalents                                     4.9     (79.5)
Net cash and cash equivalents at 1 January                                             250.0     323.8
Effect of exchange rate fluctuations on net cash and cash equivalents                   (2.5)      5.7
Net cash and cash equivalents at 31 December                                     19    252.4     250.0
Company balance sheet
As at 31 December 2009
                                                                       2009       2008
                                                            Note        £m         £m
Fixed assets
Investments in subsidiary undertakings and joint ventures     3    1,146.2    1,104.2

Current assets
Debtors                                                       4     602.7      811.9
Cash at bank and in hand                                             49.2        7.1
                                                                    651.9      819.0

Creditors: amounts falling due within one year                5
Borrowing                                                           (152.3)    (103.6)
Other creditors                                                     (516.9)    (583.1)
                                                                    (669.2)    (686.7)

Net current (liabilities)/assets
Due within one year                                                  (17.6)     131.4
Debtors due after more than one year                          4        0.3        0.9
                                                                     (17.3)     132.3
Total assets less current liabilities                              1,128.9    1,236.5
Creditors: amounts falling due after more than one year
Borrowing                                                     6     (129.8)    (355.9)
Net assets                                                           999.1      880.6

Financed by:
Capital and reserves
Share capital                                                 7     198.6      197.8
Share premium                                                 8      16.8       12.9
Merger reserve                                                8     516.3      516.3
Other reserve                                                 8       5.2        3.2
Profit and loss account                                       8     262.2      150.4
Equity shareholders’ funds                                    9     999.1      880.6
Five Year Review
                                                                                                           2009             2008             2007             2006                2005
Group income statement                                                                                      £m               £m               £m               £m                  £m
Total revenue                                                                                         5,426.5          5,205.8          3,951.7          3,512.4          2,249.1
Analysed between:
Support services                                                                                      2,389.5          2,463.5          1,793.6          1,458.7            953.6
Public Private Partnership projects                                                                     215.6            178.4            154.1            148.0             65.4
Middle East construction services                                                                       553.6            464.2            337.0            268.7            160.5
Construction services (excluding the Middle East)                                                     2,267.8          2,099.7          1,667.0          1,637.0          1,069.6

Underlying Group and Joint Ventures operating profit before intangible
amortisation, impairment of goodwill and otherinvestments, non-
recurring operating items and jointly controlled entities’ net financial
(expense)/income and taxation                                                                           217.3            194.1            120.1             97.4             55.3
Analysed between:
Support services                                                                                        117.7            113.5              73.9             58.8             40.5
Public Private Partnership projects                                                                      32.2             29.8              25.4             26.5              8.3
Middle East construction services                                                                        47.0             34.5              25.4             13.9              4.2
Construction services (excluding the Middle East)                                                        30.9             28.7              16.0             18.5             12.7
Group eliminations and unallocated items                                                                (10.5)           (12.4)            (20.6)           (20.3)           (10.4)

Share of jointly controlled entities’ net financial (expense)/income                                    (14.0)           (18.2)             (9.9)            (8.0)             1.1
Share of jointly controlled entities’ taxation                                                           (6.5)           (10.7)             (9.0)            (8.1)            (5.0)
Underlying profit from operations before intangible amortisation,
impairment of goodwill and other investments and non-recurring
operating items                                                                                         196.8            165.2            101.2             81.3             51.4
Group net financial (expense)/income                                                                    (14.6)            (7.7)             0.6              1.3              4.0

Underlying profit before tax                                                                            182.2            157.5            101.8             82.6             55.4
Intangible amortisation and impairment of goodwill
and other investments                                                                                   (30.8)           (54.5)            (21.5)           (17.2)            (2.8)
Non-recurring operating items                                                                           (15.2)           (22.7)            (14.2)           (22.6)               –
Non-operating items                                                                                      11.5             35.6              28.3             25.3             (0.8)
Profit before taxation                                                                                  147.7            115.9              94.4             68.1             51.8
Taxation                                                                                                (11.5)            (4.1)             (8.3)            (7.2)           (11.1)
Profit from continuing operations                                                                       136.2            111.8              86.1             60.9             40.7

Discontinued operations                                                                                     –                –              (7.6)            (0.5)                0.1
Analysed between:
Trading loss from discontinued operations                                                                   –                –              (1.4)            (0.5)                0.1
Loss on disposal of discontinued operations                                                                 –                –              (6.2)               –                   –

Profit for the year                                                                                     136.2            111.8             78.5             60.4             40.8

Group financial statistics
Underlying operating profit margin
Support services                                                             Percentage                   4.9               4.6              4.1              4.0                 4.2
Middle East construction services                                            Percentage                   8.5               7.4              7.5              5.2                 2.6
Construction services (excluding the Middle East)                            Percentage                   1.4               1.4              1.0              1.1                 1.2

Underlying operating profit margin
Total Group before share of jointly controlled entities’ net financial
(expense)/income and taxation                                                Percentage                   4.0               3.7              3.0              2.8                 2.5

Underlying profit from operations margin
Total Group                                                                  Percentage                   3.6               3.2              2.6              2.3                 2.3

Group balance sheet
Property, plant and equipment                                                                           168.2            167.2            131.5            146.6            100.9
Intangible assets                                                                                     1,241.3          1,276.9            555.8            596.1             62.3
Investments                                                                                             177.1            238.6            185.9            178.8             62.7
                                                                                                      1,586.6          1,682.7            873.2            921.5            225.9
Inventories, receivables and payables                                                                  (608.0)          (490.4)          (286.5)          (282.0)          (119.5)
Net retirement benefit liability (net of deferred tax)                                                 (211.1)           (76.2)           (29.4)           (84.8)           (50.8)
Other net (liabilities)/assets                                                                          (15.2)           (21.8)           (25.1)           (22.0)             0.1
Net operating assets                                                                                    752.3          1,094.3            532.2            532.7             55.7
Net cash/(borrowing)                                                                                     24.9           (226.7)           (44.9)          (108.0)            90.8
Net assets                                                                                              777.2            867.6            487.3            424.7            146.5

Group cash flow statement

Underlying Group operating profit                                                                       130.9            120.1             64.4             49.7             35.0
Depreciation and other non-cash items                                                                    38.8             19.2             15.9             18.5             14.4
Working capital                                                                                          59.9             34.0             31.7             15.2             36.0
Dividends received from joint ventures                                                                   38.6             25.0             23.7             15.7              8.4
Underlying cash flow from operations                                                                    268.2            198.3            135.7             99.1             93.8
Deficit pension contributions                                                                           (29.0)           (50.5)           (46.3)           (31.8)           (10.0)
Restructuring costs                                                                                     (17.1)           (32.4)            (6.5)           (18.2)               –
Interest, tax and dividends                                                                             (63.2)           (62.2)           (30.4)           (25.7)           (35.3)
Net capital expenditure                                                                                 (47.3)           (26.4)             4.4            (28.2)           (46.4)
Acquisitions and disposals                                                                              142.7           (227.0)             9.6           (190.9)           (35.4)
Other (including discontinued operations)                                                                (2.7)            18.4             (3.4)            (3.1)            (4.7)
Change in net liquidity                                                                                 251.6           (181.8)            63.1           (198.8)           (38.0)
Net (borrowing)/cash at 1 January                                                                      (226.7)           (44.9)          (108.0)            90.8            128.8
Net cash/(borrowing) at 31 December                                                                      24.9           (226.7)           (44.9)          (108.0)            90.8

Group financial statistics
Earnings per share
Underlying earnings per share – continuing operations                        Pence                       39.0             34.3             28.9             23.7             20.4
Underlying earnings per share – continuing and discontinued operations
                                                                             Pence                       39.0             34.3             26.2             23.5             20.4
Basic earnings per share – continuing and discontinued operations            Pence                       33.4             28.4             27.1             21.6             18.7

Dividends
Proposed full year dividend per share                                        Pence                       14.6             13.0             11.0               9.0                 8.0
Underlying proposed dividend cover – continuing operations                   Times                        2.7              2.6              2.6               2.6                 2.6
Basic proposed dividend cover – continuing and discontinued operations
                                                                             Times                        2.3               2.2              2.5              2.4                 2.3

Prior year balance sheet information has been restated following the adoption of International Financial Reporting Interpretations Committee (IFRIC) 14 ‘The limit on a defined

				
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