TIDMCCC
RNS Number : 0700Y
Computacenter PLC
27 August 2009
Computacenter plc
Interim results announcement
Computacenter plc, the European IT infrastructure services provider, today
announces unaudited results for the six months ended 30 June 2009.
FINANCIAL HIGHLIGHTS
Financial performance
* Adjusted* profit before tax increased 62.0% to GBP18.2 million ( 2008: GBP11.3
million)
* Adjusted* diluted earnings per share increased 81.1% to 9.6p (2008: 5.3p)
* Group revenues decreased 2.2% to GBP1.22 billion (2008: GBP1.25 billion) and by
8.3% in constant currency
* Interim dividend increased 11.1% to 3.0p per share (2008: 2.7p)
* Net cash before customer-specific financing ('CSF') of GBP47.3 million (H1 2008:
net debt of GBP29.7 million)
Statutory Performance
* Profit before tax increased 9.0% to GBP12.0 million (2008: GBP11.0 million)
* Exceptional charge of GBP6 million (2008: nil) related to our change programme
* Diluted EPS increased 21.2% to 6.3p (2008: 5.2p)
* Net debt after CSF of GBP18.1 million (2008: net debt of GBP95.9 million)
OPERATING HIGHLIGHTS
* Group annual services contract base grew 8.0% to GBP487.3 million, based on
constant currency
* Services now contribute 47.3% of Group adjusted* gross profit (2008: 42.6%)
* UK cost reduction and simplification programme substantially complete, realising
operational efficiencies and achieving a reduction of over GBP13 million in SG&A
costs.
* Substantial progress achieved in Germany with further managed services successes
* Strong services growth and efficiency programme helped reduce Computacenter
France adjusted* operating loss by 25.1%
Mike Norris, Chief Executive of Computacenter plc, commented:
"Computacenter made strong progress in the first half of the year, reflecting
success in sharpening our focus on cost reduction, growth in contractual
services and exiting from businesses that use capital inefficiently. This was
achieved in spite of the challenging economic backdrop, which has impacted sales
of products and integration projects. The continuing trend in our business mix
towards contractual services improves the long term visibility and
predictability of our earnings and the pipeline for the future is encouraging.
"We are pleased with progress to date. Whilst much remains to be done, we are
confident that we are on track for the year as a whole. Looking further ahead,
our increased services mix, allied with our strong and strengthening balance
sheet, gives us encouragement for growth in the future."
* Adjusted for exceptional items and amortisation of acquired intangibles and
stated after charging finance costs on customer-specific financing.
+------------------------------------+------------------------------------+
| Computacenter plc. |
+-------------------------------------------------------------------------+
| Mike Norris, Chief Executive | 01707 631 601 |
+------------------------------------+------------------------------------+
| Tessa Freeman, Investor Relations | 01707 631 514 |
+------------------------------------+------------------------------------+
| www.computacenter.com |
+-------------------------------------------------------------------------+
| |
+-------------------------------------------------------------------------+
| Tulchan Communications | 020 7353 4200 |
+------------------------------------+------------------------------------+
| Stephen Malthouse |
+-------------------------------------------------------------------------+
| Lucy Legh |
+-------------------------------------------------------------------------+
| www.tulchangroup.com |
+------------------------------------+------------------------------------+
Computacenter's half-yearly financial report is available to view and download
at www.computacenter.com/investor. High resolution images are available for the
media to view and download free of charge from www.computacenter.com/press.
Chairman's Statement
At the beginning of 2009 we set out on a three-year programme of actions to
improve the profitability of our business.
The key elements are:
* Rigorous segmentation of our market to ensure we focus on customers who ascribe
high value to our offerings.
* Continual improvement in the use of working capital.
* Accelerating growth in our managed service business.
* Maintaining or growing market share in those product reselling segments we
choose to serve.
* Simplification of our organisation.
* Significant reduction in our cost and expense base.
* Investment in a Group wide single ERP system with a three-year implementation
programme.
What progress have we made, six months on? A few comments on the prevailing
economic environment first. GDP in all the countries in which we operate has
declined and we have seen a significant consequent reduction in our customers'
operating budgets. This is no surprise and we expect this to continue for the
foreseeable future. These are the circumstances in which we operate and our
actions as described above were put in place knowing the challenges we will
face.
I am pleased with the progress we have made in the first six months of 2009;
it's best summarised as 'so far, so good'. We have seen growth in revenue and
profitability in our managed services business, the result of customers seeing
value in our offerings. Our product business has declined in revenue by 14% (in
constant currency), which we believe is less than the market decline. Our net
cash position before Customer Specific Finance (CSF) is some GBP77 million
better, compared with the same period last year. We have substantially completed
our simplification and cost reduction programme in the UK, resulting in an
annualised improvement in excess of our GBP15 million target. Our ERP investment
programme is on track for completion in 2011 and on budget.
There is much more to do, but I am encouraged by what our people have achieved
in the first half of this year; a 62% improvement in adjusted* profit before tax
compared with last year is a good start. We have clear targets for the business
over the next three years, the achievement of which is designed to deliver
steady value growth for our shareholders.
While Computacenter is clearly delivering customer value today, we can and must
continue to demonstrate increased value in the years to come. I thank all of our
people for their efforts and their contribution to these results.
* Adjusted for exceptional items and amortisation of acquired intangibles and
stated after charging finance costs on customer-specific financing.
Interim operating review
Group summary
Computacenter made strong progress in the first six months of 2009, delivering a
pleasing 62.0% increase in adjusted* profit before tax to GBP18.2 million (H1
2008: GBP11.3 million). This reflects our success in sharpening our focus on
cost reduction, growth in contractual services and exiting from businesses that
use capital inefficiently. The improvement is somewhat flattered by a weaker
comparative period for the first quarter of 2009 versus Q1 2008. Mainly as a
result of higher profitability, adjusted* diluted earnings per share ('adjusted*
EPS') for the period grew 81.1% to 9.6p (H1 2008: 5.3p).
After taking account of exceptional items and amortisation on acquired
intangibles, on a statutory basis, profit before tax increased by 9.0% to
GBP12.0 million (H1 2008: GBP11.0 million), and diluted earnings per share grew
by 21.2% to 6.3p (H1 2008: 5.2p).
We are pleased to announce the payment of an increased interim dividend of 3.0p
per share (H1 2008: 2.7p) to be paid on 9 October 2009 to shareholders on the
register as at 11 September 2009.
Our strong progress was achieved in spite of the challenging economic backdrop,
which has impacted sales of products and integration projects. Overall reported
revenues reduced by 2.2% and were down 8.3% in constant currency.
The growth in our contractual services base of 8.0% to GBP487.3 million has
helped performance in the first half of 2009 and will have a more significant
positive impact on the second half of the year and in years to come. Services
now contribute 47.3% of Group adjusted* gross profit (2008: 42.6%) and this
continuing trend in business mix improves the long term visibility and
predictability of our earnings. Whilst in the first half we have been focused
intensely on a number of new contract start-ups, the pipeline for the future is
also encouraging.
We previously anticipated an exceptional charge for the full year of
approximately GBP5 million. However the charge reported in H1 is GBP6.0 million,
as a result of a GBP1.9 million charge related to premises vacated by the sales
force serving our smaller customers. Of the remaining GBP4.1 million
expenditure, GBP2.7 million was spent in the UK, mainly on reshaping our
management and sales function to reflect the strategic changes we have made, and
GBP1.4 million of exceptional charges were expensed in reducing the cost base of
our operations in France and Benelux. We expect no material exceptional charges
in the second half of the year.
We continue to strengthen our balance sheet, with net funds excluding
customer-specific financing (CSF) of GBP47.3 million (H1 2008: net debt of
GBP29.7 million) at the period end. Including CSF, net debt was GBP18.1 million
(H1 2008: GBP95.9 million). As we announced in our full year report for 2008 and
in our July pre-close statement, we saw robust cash generation as a result of
our exit from the trade distribution of PC, laptop and printer sales, reducing
working capital by GBP18 million in H1, which is ahead of our initial estimate
of GBP15 million for the year. Cash generation was also assisted by increasingly
effective stock controls and a general slowdown in our product business due to
the economic climate.
We remain on time and budget with our implementation of a new Group wide ERP
system, which we expect to complete in 2011. We previously estimated the cost at
GBP25 million over three years, of which approximately 55% has been spent to
date.
Looking particularly at the second half of 2009, we are confident of further
progress in our contractual services business, but expect the current decline in
capital expenditure on IT equipment to continue across our geography. We will
remain rigorous in the cost management of our business and, while much remains
to be done, we are confident that we are on track for the year as a whole.
Looking further ahead, our increased services mix, allied with our strong and
strengthening balance sheet, gives us encouragement for growth in the future.
UK
We saw a strong improvement in UK performance compared to the same period in
2008, with adjusted* operating profit growing 42.2% to GBP12.6 million (H1 2008:
GBP8.9 million). The improvement is largely a result of our change programme,
begun late last year, which focused on reducing costs, ensuring an improved
capital return and further sharpening our focus as a services and solutions
company. An exceptional charge relating to this programme, totalling GBP4.6
million, was incurred in H1.
We delivered a GBP13.4 million reduction in UK Sales, General and Administration
(SG&A) costs in the period, in addition to the reduction in working capital
relating to our trade distribution arm stated above.
Revenues declined 11.8% to GBP624.9 million (H1 2008: GBP708.1 million), with
approximately GBP37 million of this reduction attributable to our exit from the
insufficiently profitable trade distribution markets. Services revenues grew
7.8% which was driven mainly by growth in contractual services. The economic
climate is favourable to our offerings in this area, which focus on the removal
of cost and risk from IT infrastructures. End-user product revenues declined
12.4% due to a weak economic environment, although against estimates of a
product market deterioration we believe we are at least retaining market share.
Customers' expenditure on professional services declined as customers put
non-critical project expenditure on hold. This also contributed to product
revenue decline, as integration or transformation projects would normally
include hardware and software sales. However we were successful in securing a
major datacentre optimisation project for Transport for London (TfL), which is
expected to generate significant savings for the customer by facilitating the
consolidation of 70 computer rooms into two datacentres.
After the period end we announced the extension of the UK element of our desktop
services contract with BT for a further three years through to 31 March 2015.
Associated with this extension are a number of minor amendments but two are of
significance. Computacenter will transfer part of the contract back to BT,
representing approximately 20% of the UK contract value, including the
corresponding staff, and no future UK capital purchases will utilise
Computacenter CSF (Customer Specific Financing). All fixed assets currently
under CSF will remain so until the end of the relevant term. The non-UK element,
which represented around 25% of the original BT contract, is completely
unaffected in both terms and duration.
The UK contract base grew by 8.7% in H1 to GBP221.2 million, after excluding
approximately GBP12 million related to the UK product element of the BT
contract. This one-off adjustment, which applies from June onwards and
retrospectively, is made to avoid distortion and relates to the gradual expiry
of this product element over the next five years. While there will be a
reduction in the UK services element of the BT contract in H2, we anticipate
this will be more than offset by new contract wins.
We saw a number of significant contract wins in the period. These include a
three-year contract with INVISTA, one of the world's largest integrated
producers of polymers and fibres. The contract, worth over GBP3 million,
includes provision of a multi-lingual service desk from our Barcelona location,
datacentre managed services and hosting from our Manchester facility, remote
server management from our offshore operations in Cape Town and network services
from the UK. 24x7 field and deskside services are also provided across all
European locations.
In the public sector we won a four-year outsourcing and infrastructure
transformation contract with NHS Oldham. The contract, which covers datacentre,
network and desktop management and support, is designed to help the PCT deliver
high quality healthcare services and meet the requirements of the NHS National
Program for IT.
We also renewed our contract with John Lewis Partnership for desktop, laptop and
print support for a further three years. The contract was extended to include
the provision of maintenance for the Retail Store EPOS infrastructure.
We continue to increase our e-commerce integration with major suppliers, with
34.4% of orders placed via e-commerce transactions in the period (H1 2008:
20.0%), helping reduce our operating costs. We also improved our inventory
management processes to further minimise stock write-downs and disposals.
RDC, our remarketing and recycling arm, recorded its strongest first quarter and
although volumes declined slightly in Q2, overall revenues increased 31.6% in H1
09. In April 2009 RDC was, for the second time, awarded a Queen's Award for
Enterprise. The award was in the category of Sustainability and followed the
company's success in the Innovation category in 2002.
Germany
In Germany, adjusted* operating profit improved 52.5% in local currency. In
sterling, this translates to an increase of 75.7% to GBP7.2 million. This strong
improvement in profit performance was aided by an increase in services margins.
Revenue decreased by 1.0% in local currency and increased 14.1% in sterling to
GBP433.3 million (H1 2008: GBP379.8 million).
The challenging economic environment particularly affected product sales, which
decreased 4.3% in local currency. This was partly offset by 4.5% sales growth in
services, accelerating the change of business mix over the past few years
towards higher-margin offerings.
The continued services growth was largely attributable to our ongoing investment
in contractual services. Growing customer interest in cost reduction, improved
efficiency and compliance helped drive strong demand for our services and helped
offset a slight decline in other areas of our professional services business. A
major outsourcing contract signed in 2008 became fully revenue-generating this
year, helping further drive service volumes.
The level of services profitability achieved in 2008 was sustained in H1 2009,
due to the ongoing success of management initiatives and our strategic
investment in improving the profitability of a number of large and complex
outsourced datacentre contracts. Product margins also held up well despite
falling volumes, assisted by the growing proportion of higher margin network,
server and storage technology in the product mix. We were also successful in
significantly reducing the cost of sale in our product business through the
automation of our direct shipment process, enabling us to process orders more
quickly and reduce our inventory.
Customers' growing interest in virtualisation solutions to improve the
efficiency and cost-effectiveness of their desktop infrastructures is driving
strong demand for our services in this area. This has led us to include desktop
virtualisation solutions as a key component of our managed services portfolio,
complementing our existing project-based offerings.
In our datacentre business we attained the first Authorized Technology Provider
certification in Europe for Cisco´s new Unified Computing System (UCS), as well
as being named Datacentre Partner of the Year in Germany and Europe.
Key wins in the period include a managed service contract for Daimler AG's
network and security operations in Europe. The contract covers 130,000 ports and
over 650 firewalls as well as the monitoring of all WAN connections worldwide.
We also further extended our presence in the growing unified communication and
collaboration market, securing major projects in this area with a large social
insurance provider and a major bank.
Helping further the Group's strategic goal of broadening the range and depth of
our services activities, we were awarded a contract to implement an innovative,
state-of-the-art identity management solution for the German Federal Employment
Agency.
France
Despite a difficult economy our French operation continued to show steady
improvement. Profit performance was above expectation, with our ongoing cost
reduction programme and further services growth reducing the adjusted* operating
loss by 25.1% to GBP1.4 million (H1 2008: loss of GBP1.9 million). The product
market remains highly challenging as customers reduce or delay their technology
investments, resulting in an overall revenue decline of 11.0% in local currency
compared to H1 2008. However, due to beneficial currency movements, reported
revenue increased 2.6% to GBP151.1 million (H1 2008: GBP147.2 million).
The decline in local currency product revenues hides a strong increase in
services revenues of 10.5% (H1 2008: 11.3%), helped by the consolidation of our
short term professional services contract base into contractual services
business, where revenues grew 29.2% This strong services growth, which is well
ahead of a flat market forecast for 2009, demonstrates further progress in our
efforts to increase the services mix of our French operation. Total services now
account for nearly 20% of revenue (H1 2008: 15.4%) and we have opened a new
helpdesk facility at our headquarters in Roissy, near Paris, to allow for
further growth.
The operating loss reduction was driven by a number of factors. Despite revenue
decline, margins remained stable across the product business. Services margins
continued to grow driven by increased volume, a leaner, more cost-efficient
organisation, and the implementation of new tools to improve resource
utilisation and efficiency. We also streamlined the senior management and
services teams and realised a substantial reduction in our fixed cost base. An
exceptional charge of GBP1.2 million has been recorded.
In addition, further to the Group's strategic goal of reducing the cost of sale
in our supply chain business, we re-engineered our main French logistic facility
to optimise throughput, reduce item cost and improve competitiveness.
Computacenter France also delivered an improved financial situation, mainly due
to working capital optimisation resulting in a further reduction of average
debt. As a consequence of decreasing interest rates, finance costs have dropped
by more than 65% over H1 2008 in local currency. The Group also leveraged its
strong cash position to provide internal financing for the French business to
cover more than two thirds of its average H1 2009 debt.
We saw some pleasing contract successes in H1 2009, particularly the renewal of
a portion of our business with the French Army, our largest customer. The second
and final award is expected in September 2009.
New contractual services customers include the Chamber of Industry and Commerce
of Marseille, a Conseil Général and MGEN, the mutual insurance company for the
Ministry of Education. We also won significant contracts with EDF to provide
deskside support services for 57,000 users and a significant enterprise services
contract, from solution design to implementation and back-up, with a leading
energy firm. Supply successes include a major contract with CNAM TS, a social
security public body, covering 18,000 users and a supply and maintenance
contract with RATP, the Paris transport authority.
While we are aware that much remains to be done to deliver long term
profitability, we continue to see underlying improvements in profit performance,
led particularly by contractual services growth.
Benelux
Our Belgium and Netherlands operation recorded an adjusted* loss of GBP166,000
(H1 2008: profit of GBP69,000), mainly reflecting a difficult product market.
Although overall revenues declined 24.0%, in constant currency, services
revenues grew 1.5%, driven mainly by managed services contracts and storage
projects.
We launched several initiatives to reduce our cost base and encourage
higher-margin sales growth, which led to restructuring costs of GBP241,000 (H1
2008: nil) in the first half.
Our Luxembourg operation showed a loss of GBP244,000 (H1 2008: loss of
GBP137,000) with a revenue decline of 40.0% in constant currency. This decline
is due to our strategic decision to stop local product supply activities in
Luxembourg as of Q2 2009.
Key Benelux wins include a European rollout
project at Tessenderlo Chemie, a Wireless LAN implementation at Sibelco, a
licensing optimisation project at Tele Atlas and a high-end storage project at
ADB.
Group risk statement
The principal risks to our business and our approach to mitigating those risks
remain as set out on page 19 of our 2008 Report and Accounts. The Group is
addressing the principal strategic risk of a prolonged economic recession
through enhanced offerings which help customers remove cost and risk from their
IT expenditure, a continuing focus on those sectors that offer the greatest
opportunities for market share growth, and ongoing internal cost removal. In
addition, strategies remain in place to mitigate operational risks, in
particular those relating to the implementation of complex end-to-end service
contracts, the return of the French business to profit, and progress of the
Group-wide ERP project.
* Adjusted for exceptional items and amortisation of acquired intangibles and
stated after charging finance costs on customer-specific financing.
Responsibility Statement
The Directors confirm that to the best of their knowledge:
- this financial information has been prepared in accordance with IAS 34;
- this interim management report includes a fair review of the information
required by DTR 4.2.7R (indication of important events during the first six
months and description of principal risks and uncertainties for the remaining
six months of the year); and
- this interim management report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related party transactions and changes
therein).
MJ Norris FA Conophy
Chief Executive Finance Director
26 August 2009 26 August 2009
On behalf of the Board
Independent review report to Computacenter plc
Introduction
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30 June
2009 which comprises the Consolidated Income Statement, Consolidated Statement
of Comprehensive Income, Consolidated Balance Sheet, Consolidated Statement of
Changes in Equity, Consolidated Cash Flow Statement, and the related notes 1 to
11. We have read the other information contained in the half yearly financial
report and considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial
statements.
This report is made solely to the Company in accordance with guidance contained
in ISRE 2410 (UK and Ireland) "Review of Interim Financial Information Performed
by the Independent Auditor of the Entity" issued by the Auditing Practices
Board. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company, for our work, for this report,
or for the conclusions we have formed.
Directors' Responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the Directors. The Directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.
As disclosed in note 2, the annual financial statements of the Group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard
34, "Interim Financial Reporting", as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of Review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 30 June 2009 is not prepared, in all material
respects, in accordance with International Accounting Standard 34 as adopted by
the European Union and the Disclosure and Transparency Rules of the United
Kingdom's Financial Services Authority.
Ernst & Young LLP
Luton
26 August 2009
+------------------------------------------+-------------+--+-------------+--+-------------+
| Consolidated income statement | | | | | |
+------------------------------------------+-------------+--+-------------+--+-------------+
| For the six months ended 30 June 2009 | | | | | |
+------------------------------------------+-------------+--+-------------+--+-------------+
| | Unaudited | | Unaudited | | Audited |
+------------------------------------------+-------------+--+-------------+--+-------------+
| | H1 2009 | | H1 2008 | | Year |
| | | | | | 2008 |
+------------------------------------------+-------------+--+-------------+--+-------------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Product revenue | 846,834 | | 923,193 | | 1,875,857 |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Professional services revenue | 85,712 | | 83,993 | | 181,219 |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Support and managed services revenue | 289,638 | | 243,074 | | 503,059 |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Total services revenue | 375,350 | | 327,067 | | 684,278 |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Total revenue | 1,222,184 | | 1,250,260 | | 2,560,135 |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Cost of sales | (1,051,560) | | (1,080,722) | | (2,205,276) |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Gross profit | 170,624 | | 169,538 | | 354,859 |
+------------------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Distribution costs | (9,686) | | (10,578) | | (20,268) |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Administrative expenses | (140,947) | | (146,258) | | (288,418) |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Operating profit: | | | | | |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Before amortisation of acquired | 19,991 | | 12,702 | | 46,173 |
| intangibles and exceptional items | | | | | |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Amortisation of acquired intangibles | (259) | | (268) | | (525) |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Exceptional items | (6,003) | | - | | (3,046) |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Operating profit | 13,729 | | 12,434 | | 42,602 |
+------------------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Finance revenue | 1,000 | | 1,502 | | 3,095 |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Finance costs | (2,748) | | (2,946) | | (6,161) |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Profit before tax: | | | | | |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Before amortisation of acquired | 18,243 | | 11,258 | | 43,107 |
| intangibles and exceptional items | | | | | |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Amortisation of acquired intangibles | (259) | | (268) | | (525) |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Exceptional items | (6,003) | | - | | (3,046) |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Profit before tax | 11,981 | | 10,990 | | 39,536 |
+------------------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Income tax expense: | | | | | |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Before exceptional items | (3,851) | | (3,068) | | (10,571) |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Tax on exceptional items | 1,276 | | - | | - |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Exceptional tax items | - | | - | | 8,377 |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Income tax expense | (2,575) | | (3,068) | | (2,194) |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Profit for the period | 9,406 | | 7,922 | | 37,342 |
+------------------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Attributable to: | | | | | |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Equity holders of the parent | 9,406 | | 7,922 | | 37,337 |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Minority interests | - | | - | | 5 |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Profit for the period | 9,406 | | 7,922 | | 37,342 |
+------------------------------------------+-------------+--+-------------+--+-------------+
| | | | | | |
+------------------------------------------+-------------+--+-------------+--+-------------+
| Earnings per share | | | | | |
+------------------------------------------+-------------+--+-------------+--+-------------+
| - basic for profit for the period | 6.4p | | 5.3p | | 24.7p |
+------------------------------------------+-------------+--+-------------+--+-------------+
| - diluted for profit for the period | 6.3p | | 5.2p | | 24.2p |
+------------------------------------------+-------------+--+-------------+--+-------------+
+---------------------------------------------+-----------+--+-----------+--+----------+
| Consolidated statement of comprehensive income | | | | |
+---------------------------------------------------------+--+-----------+--+----------+
| For the six months ended 30 June 2009 | | | | | |
+---------------------------------------------+-----------+--+-----------+--+----------+
| | Unaudited | | Unaudited | | Audited |
+---------------------------------------------+-----------+--+-----------+--+----------+
| | H1 2009 | | H1 2008 | | Year |
| | | | | | 2008 |
+---------------------------------------------+-----------+--+-----------+--+----------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Profit for the period | 9,406 | | 7,922 | | 37,342 |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Exchange differences on translation of | (12,161) | | 3,886 | | 24,864 |
| foreign operations | | | | | |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Total comprehensive income for the period | (2,755) | | 11,808 | | 62,206 |
+---------------------------------------------+-----------+--+-----------+--+----------+
| | | | | | |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Attributable to: | | | | | |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Equity holders of the parent | (2,753) | | 11,808 | | 62,198 |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Minority interests | (2) | | - | | 8 |
+---------------------------------------------+-----------+--+-----------+--+----------+
| | (2,755) | | 11,808 | | 62,206 |
+---------------------------------------------+-----------+--+-----------+--+----------+
+---------------------------------------------+-----------+-+-----------+-+----------+
| Consolidated balance sheet | | | | | |
+---------------------------------------------+-----------+-+-----------+-+----------+
| As at 30 June 2009 | | | | | |
+---------------------------------------------+-----------+-+-----------+-+----------+
| | Unaudited | | Unaudited | | Audited |
+---------------------------------------------+-----------+-+-----------+-+----------+
| | H1 2009 | | H1 2008 | | Year |
| | | | | | 2008 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Non-current assets | | | | | |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Property, plant and equipment | 113,392 | | 114,407 | | 123,315 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Intangible assets | 52,503 | | 46,156 | | 51,551 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Deferred income tax asset | 17,674 | | 8,577 | | 16,672 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| | 183,569 | | 169,140 | | 191,538 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Current assets | | | | | |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Inventories | 71,056 | | 94,665 | | 105,831 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Trade and other receivables | 403,101 | | 477,082 | | 529,501 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Prepayments | 59,214 | | 51,648 | | 53,766 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Accrued income | 70,229 | | 44,028 | | 43,942 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Cash and short-term deposits | 75,542 | | 37,113 | | 53,372 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| | 679,142 | | 704,536 | | 786,412 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Total assets | 862,711 | | 873,676 | | 977,950 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| | | | | | |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Current liabilities | | | | | |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Trade and other payables | 332,022 | | 350,867 | | 378,721 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Deferred income | 107,648 | | 92,713 | | 115,274 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Financial liabilities | 64,362 | | 87,355 | | 96,154 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Forward currency contracts | 25 | | 59 | | 644 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Income tax payable | 3,849 | | 5,521 | | 10,275 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Provisions | 2,439 | | 2,133 | | 2,100 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| | 510,345 | | 538,648 | | 603,168 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Non-current liabilities | | | | | |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Financial liabilities | 29,256 | | 45,699 | | 41,809 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Provisions | 10,337 | | 12,143 | | 9,565 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Other non-current liabilities | 381 | | 1,355 | | 615 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Deferred income tax liabilities | 1,515 | | 1,818 | | 1,582 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| | 41,489 | | 61,015 | | 53,571 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Total liabilities | 551,834 | | 599,663 | | 656,739 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Net assets | 310,877 | | 274,013 | | 321,211 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| | | | | | |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Capital and reserves | | | | | |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Issued capital | 9,184 | | 9,181 | | 9,181 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Share premium | 2,890 | | 2,890 | | 2,890 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Capital redemption reserve | 74,950 | | 74,950 | | 74,950 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Own shares held | (9,838) | | (11,273) | | (11,169) |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Foreign currency translation reserve | 14,207 | | 5,393 | | 26,368 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Retained earnings | 219,465 | | 192,859 | | 218,970 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Shareholders' equity | 310,858 | | 274,000 | | 321,190 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Minority interest | 19 | | 13 | | 21 |
+---------------------------------------------+-----------+-+-----------+-+----------+
| Total equity | 310,877 | | 274,013 | | 321,211 |
+---------------------------------------------+-----------+-+-----------+-+----------+
Approved by the Board on 26 August 2009
MJ Norris, Chief Executive FA Conophy, Finance Director
Consolidated statement of changes in equity
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| | Attributable to equity holders of the parent | | |
+--------------------+---------------------------------------------------------------------------------+----------+-----------+
| | Issued | | Capital | Own | Foreign | Retained | | Minority | Total |
| | capital | Share | redemption | shares | currency | earnings | Total | interest | equity |
| | | premium | reserve | held | translation | | | | |
| | | | | | reserve | | | | |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| At 1 January 2008 | 9,504 | 2,890 | 74,627 | (11,380) | 1,507 | 201,035 | 278,183 | 13 | 278,196 |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| Profit for the | - | - | - | - | - | 7,922 | 7,922 | - | 7,922 |
| period | | | | | | | | | |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| Other | - | - | - | - | 3,886 | - | 3,886 | - | 3,886 |
| comprehensive | | | | | | | | | |
| income | | | | | | | | | |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| Total | - | - | - | - | 3,886 | 7,922 | 11,808 | - | 11,808 |
| comprehensive | | | | | | | | | |
| income | | | | | | | | | |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| Cost of | - | - | - | - | - | 1,573 | 1,573 | - | 1,573 |
| share-based | | | | | | | | | |
| payment | | | | | | | | | |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| Purchase of own | - | - | - | (9,501) | - | - | (9,501) | - | (9,501) |
| shares | | | | | | | | | |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| Cancellation of | (323) | - | 323 | 9,608 | - | (9,608) | - | - | - |
| own shares | | | | | | | | | |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| Equity dividends | - | - | - | - | - | (8,063) | (8,063) | - | (8,063) |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| At 30 June 2008 | 9,181 | 2,890 | 74,950 | (11,273) | 5,393 | 192,859 | 274,000 | 13 | 274,013 |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| Profit for the | - | - | - | - | - | 29,415 | 29,415 | 5 | 29,420 |
| period | | | | | | | | | |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| Other | - | - | - | - | 20,975 | - | 20,975 | 3 | 20,978 |
| comprehensive | | | | | | | | | |
| income | | | | | | | | | |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| Total | - | - | - | - | 20,975 | 29,415 | 50,390 | 8 | 50,398 |
| comprehensive | | | | | | | | | |
| income | | | | | | | | | |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| Cost of | - | - | - | - | - | 952 | 952 | - | 952 |
| share-based | | | | | | | | | |
| payment | | | | | | | | | |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| Exercise of | - | - | - | 298 | - | (298) | - | - | - |
| options | | | | | | | | | |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| Purchase of own | - | - | - | (194) | - | - | (194) | - | (194) |
| shares | | | | | | | | | |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| Equity dividends | - | - | - | - | - | (3,958) | (3,958) | - | (3,958) |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| At 31 December | 9,181 | 2,890 | 74,950 | (11,169) | 26,368 | 218,970 | 321,190 | 21 | 321,211 |
| 2008 | | | | | | | | | |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| Profit for the | - | - | - | - | - | 9,406 | 9,406 | - | 9,406 |
| period | | | | | | | | | |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| Other | - | - | - | - | (12,161) | - | (12,161) | (2) | (12,163) |
| comprehensive | | | | | | | | | |
| income | | | | | | | | | |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| Total | - | - | - | - | (12,161) | 9,406 | (2,755) | (2) | (2,757) |
| comprehensive | | | | | | | | | |
| income | | | | | | | | | |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| Cost of | - | - | - | - | - | 1,076 | 1,076 | - | 1,076 |
| share-based | | | | | | | | | |
| payment | | | | | | | | | |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| Exercise of | 3 | - | - | 1,890 | - | (1,890) | 3 | - | 3 |
| options | | | | | | | | | |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| Purchase of own | - | - | - | (559) | - | - | (559) | - | (559) |
| shares | | | | | | | | | |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| Equity dividends | - | - | - | - | - | (8,097) | (8,097) | - | (8,097) |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
| At 30 June 2009 | 9,184 | 2,890 | 74,950 | (9,838) | 14,207 | 219,465 | 310,858 | 19 | 310,877 |
+--------------------+---------+---------+------------+----------+-------------+-----------+-----------+----------+-----------+
+---------------------------------------------+-----------+--+-----------+--+----------+
| Consolidated cash flow statement | | | | | |
+---------------------------------------------+-----------+--+-----------+--+----------+
| For the six months ended 30 June 2009 | | | | | |
+---------------------------------------------+-----------+--+-----------+--+----------+
| | Unaudited | | Unaudited | | Audited |
+---------------------------------------------+-----------+--+-----------+--+----------+
| | H1 2009 | | H1 2008 | | Year |
| | | | | | 2008 |
+---------------------------------------------+-----------+--+-----------+--+----------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Operating activities | | | | | |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Profit before tax | 11,981 | | 10,990 | | 39,536 |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Net finance costs | 1,748 | | 1,444 | | 3,066 |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Depreciation | 17,932 | | 17,514 | | 36,719 |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Amortisation | 2,199 | | 2,145 | | 4,764 |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Share-based payment | 1,076 | | 1,573 | | 2,525 |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Loss on disposal of property, plant and | 229 | | 273 | | 526 |
| equipment | | | | | |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Impairment of intangible assets | - | | - | | 3,046 |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Loss on disposal of intangible assets | 26 | | (23) | | 48 |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Decrease in inventories | 28,247 | | 19,954 | | 19,793 |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Decrease/(increase) in trade and other | 57,946 | | (42,235) | | (34,844) |
| receivables | | | | | |
+---------------------------------------------+-----------+--+-----------+--+----------+
| (Decrease)/increase in trade and other | (24,495) | | 16,447 | | 16,190 |
| payables | | | | | |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Other adjustments | (428) | | 2,090 | | (760) |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Cash generated from operations | 96,461 | | 30,172 | | 90,609 |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Income taxes paid | (10,029) | | (5,527) | | (6,052) |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Net cash flow from operating activities | 86,432 | | 24,645 | | 84,557 |
+---------------------------------------------+-----------+--+-----------+--+----------+
| | | | | | |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Investing activities | | | | | |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Interest received | 927 | | 1,871 | | 3,884 |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Sale of property, plant and equipment | 4 | | 12 | | 30 |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Purchases of property, plant and equipment | (5,064) | | (2,471) | | (10,065) |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Purchases of intangible assets | (3,526) | | (2,922) | | (14,278) |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Net cash flow from investing activities | (7,659) | | (3,510) | | (20,429) |
+---------------------------------------------+-----------+--+-----------+--+----------+
| | | | | | |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Financing activities | | | | | |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Interest paid | (2,623) | | (3,536) | | (7,254) |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Dividends paid to equity shareholders of | (8,097) | | (8,063) | | (12,021) |
| the parent | | | | | |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Proceeds from issue of shares | 3 | | - | | - |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Purchase of own shares | (559) | | (9,501) | | (9,695) |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Repayment of capital element of finance | (10,476) | | (10,281) | | (25,713) |
| leases | | | | | |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Repayment of loans | (28,775) | | (7,265) | | (28,633) |
+---------------------------------------------+-----------+--+-----------+--+----------+
| New borrowings | 11,235 | | 7,509 | | 46,610 |
+---------------------------------------------+-----------+--+-----------+--+----------+
| (Decrease)/increase in factor financing | (15,601) | | 18,818 | | 12,763 |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Net cash flow from financing activities | (54,893) | | (12,319) | | (23,943) |
+---------------------------------------------+-----------+--+-----------+--+----------+
| | | | | | |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Increase in cash and cash equivalents | 23,880 | | 8,816 | | 40,185 |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Effect of exchange rates on cash and cash | (1,081) | | (1,477) | | (562) |
| equivalents | | | | | |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Cash and cash equivalents at the beginning | 46,889 | | 7,266 | | 7,266 |
| of the year | | | | | |
+---------------------------------------------+-----------+--+-----------+--+----------+
| Cash and cash equivalents at end of the | 69,688 | | 14,605 | | 46,889 |
| period | | | | | |
+---------------------------------------------+-----------+--+-----------+--+----------+
+----------------------------------------------+-----------+--+-----------+--+----------+
| Analysis of net funds | | | | | |
+----------------------------------------------+-----------+--+-----------+--+----------+
| | Unaudited | | Unaudited | | Audited |
+----------------------------------------------+-----------+--+-----------+--+----------+
| | H1 2009 | | H1 2008 | | Year |
| | | | | | 2008 |
+----------------------------------------------+-----------+--+-----------+--+----------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+----------------------------------------------+-----------+--+-----------+--+----------+
| Cash and cash equivalents | 69,688 | | 14,605 | | 46,889 |
+----------------------------------------------+-----------+--+-----------+--+----------+
| Factor financing | (22,427) | | (44,324) | | (42,280) |
+----------------------------------------------+-----------+--+-----------+--+----------+
| Net funds/(debt) excluding customer-specific | 47,261 | | (29,719) | | 4,609 |
| financing | | | | | |
+----------------------------------------------+-----------+--+-----------+--+----------+
| Finance leases | (48,892) | | (50,004) | | (55,191) |
+----------------------------------------------+-----------+--+-----------+--+----------+
| Other loans | (16,444) | | (16,218) | | (34,009) |
+----------------------------------------------+-----------+--+-----------+--+----------+
| Total customer-specific financing | (65,336) | | (66,222) | | (89,200) |
+----------------------------------------------+-----------+--+-----------+--+----------+
| Net debt | (18,075) | | (95,941) | | (84,591) |
+----------------------------------------------+-----------+--+-----------+--+----------+
Notes to the accounts
1 Corporate information
The interim condensed consolidated financial statements of the Group for the six
months ended 30 June 2009 were authorised for issue in accordance with a
resolution of the Directors on 26 August 2009.
Computacenter plc is a limited company incorporated and domiciled in England
whose shares are publicly traded.
2 Basis of preparation
The interim condensed consolidated financial statements for the six months ended
30 June 2009 have been prepared in accordance with International Accounting
Standard 34 'Interim Financial Reporting', as adopted by the European Union.
They do not include all of the information and disclosures required in the
annual financial statements, and should be read in conjunction with the Group's
annual financial statements as at 31 December 2008.
3 Significant accounting policies
The accounting policies applied by the Group in these condensed consolidated
interim financial statements are the same as those applied by the Group in its
consolidated financial statements for the year ended 31 December 2008, except
for the adoption of new Standards and Interpretations as of 1 January 2009,
noted below:
IFRS 2 Share-based payment - Vesting conditions and cancellations
The Standard has been amended to clarify the definition of vesting conditions
and to prescribe the accounting treatment of an award that is effectively
cancelled because a non-vesting condition is not satisfied. The adoption of this
amendment did not have any impact on the financial position or performance of
the Group.
IFRS 8 Operating Segments
This standard requires disclosure of information about the Group's operating
segments and replaces the requirement to determine primary (geographical) and
secondary (business) reporting segments of the Group. The Group determined that
the operating segments were the same as the business segments previously
identified under IAS14 Segment Reporting. Additional disclosures about each of
these segments are shown in Note 4, including revised comparative information.
IAS 1 Revised Presentation of Financial Statements
The revised standard separates owner and non-owner changes in equity. The
statement of changes in equity includes only details of transactions with
owners, with non-owner changes in equity presented as a single line. In
addition, the Standard introduces the statement of comprehensive income: it
presents all items of recognised income and expense, either in a single
statement, or two linked statements. The Group has elected to present two
statements.
4 Segment information
For management purposes, the Group is organised into geographical segments, with
each segment determined by the location of the Group's assets and operations.
The Group's business in each geography is managed separately and held in
separate statutory entities.
No operating segments have been aggregated to form the above reportable
operating segments.
Management monitors the operating results of its geographical segments
separately for the purposes of making decisions about resource allocation and
performance assessment. Segment performance is evaluated based on adjusted
operating profit or loss which is measured differently from operating profit or
loss in the consolidated financial statements. Adjusted operating profit or loss
takes account of the interest paid on customer-specific financing ("CSF") which
management consider to be a cost of sale. Excluded from adjusted operating
profit is the amortisation of acquired intangibles, exceptional items and the
transfer of internal ERP implementation costs as management do not consider
these items when reviewing the underlying performance of a segment.
Segmental performance for the periods to H1 2009, H1 2008 and Full Year 2008
were as follows:
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Six months ended 30 June 2009 (unaudited) | | | | |
+---------------------------------------------------------+-----------+----------+---------+------------+
| | | UK | Germany | France | Benelux | Total |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| | | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| | | | | | | |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Revenue | | 624,888 | 433,315 | 151,085 | 12,896 | 1,222,184 |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| | | | | | | |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Results | | | | | | |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Adjusted gross profit | | 87,772 | 60,336 | 18,996 | 1,496 | 168,600 |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Adjusted net operating expenses | | (75,155) | (53,131) | (20,442) | (1,905) | (150,633) |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Adjusted operating profit/(loss) | | 12,617 | 7,205 | (1,446) | (409) | 17,967 |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Adjusted net interest | | 653 | (50) | (282) | (45) | 276 |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Adjusted profit/(loss) before | | 13,270 | 7,155 | (1,728) | (454) | 18,243 |
| tax | | | | | | |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| | | | | | | |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Reconciliation to reported profit before | | | | | |
| tax | | | | | |
+---------------------------------------------+-----------+-----------+----------+---------+------------+
| Adjusted gross profit | | 87,772 | 60,336 | 18,996 | 1,496 | 168,600 |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Add back interest on CSF | | 1,650 | 374 | - | - | 2,024 |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Segment gross profit | | 89,422 | 60,710 | 18,996 | 1,496 | 170,624 |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| | | | | | | |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Adjusted net operating expenses | | (75,155) | (53,131) | (20,442) | (1,905) | (150,633) |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Amortisation of acquired | | (241) | (18) | - | - | (259) |
| intangibles | | | | | | |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Exceptional items | | (4,556) | - | (1,206) | (241) | (6,003) |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| ERP implementation costs | | (1,143) | 1,143 | - | - | - |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Segment operating expenses | | (81,095) | (52,006) | (21,648) | (2,146) | (156,895) |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| | | | | | | |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Adjusted operating profit/(loss) | | 12,617 | 7,205 | (1,446) | (409) | 17,967 |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Add back interest on CSF | | 1,650 | 374 | - | - | 2,024 |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Amortisation of acquired | | (241) | (18) | - | - | (259) |
| intangibles | | | | | | |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Exceptional items | | (4,556) | - | (1,206) | (241) | (6,003) |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| ERP implementation costs | | (1,143) | 1,143 | - | - | - |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Segment operating profit/(loss) | | 8,327 | 8,704 | (2,652) | (650) | 13,729 |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| | | | | | | |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Adjusted net interest | | 653 | (50) | (282) | (45) | 276 |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Less interest on CSF | | (1,650) | (374) | - | - | (2,024) |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Segment net interest | | (997) | (424) | (282) | (45) | (1,748) |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| | | | | | | |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Adjusted profit/(loss) before | | 13,270 | 7,155 | (1,728) | (454) | 18,243 |
| tax | | | | | | |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Amortisation of acquired | | (241) | (18) | - | - | (259) |
| intangibles | | | | | | |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Exceptional items | | (4,556) | - | (1,206) | (241) | (6,003) |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| ERP implementation costs | | (1,143) | 1,143 | - | - | - |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
| Segment profit/(loss) before tax | | 7,330 | 8,280 | (2,934) | (695) | 11,981 |
+----------------------------------+----------+-----------+-----------+----------+---------+------------+
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| Six months ended 30 June 2008 (unaudited) | | | | |
+---------------------------------------------------------+----------+----------+---------+------------+
| | | UK | Germany | France | Benelux | Total |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| | | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| | | | | | | |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| Revenue | | 708,099 | 379,777 | 147,211 | 15,173 | 1,250,260 |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| | | | | | | |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| Results | | | | | | |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| Adjusted gross profit | | 97,444 | 51,712 | 16,961 | 1,694 | 167,811 |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| Adjusted net operating expenses | | (88,571) | (47,612) | (18,891) | (1,762) | (156,836) |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| Adjusted operating profit/(loss) | | 8,874 | 4,100 | (1,930) | (68) | 10,976 |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| Adjusted net interest | | 1,578 | (446) | (813) | (37) | 282 |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| Adjusted profit/(loss) before | | 10,452 | 3,654 | (2,743) | (105) | 11,258 |
| tax | | | | | | |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| | | | | | | |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| Reconciliation to reported profit before | | | | | |
| tax | | | | | |
+---------------------------------------------+-----------+----------+----------+---------+------------+
| Adjusted gross profit | | 97,444 | 51,712 | 16,961 | 1,694 | 167,811 |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| Add back interest on CSF | | 1,479 | 247 | - | - | 1,726 |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| Segment gross profit | | 98,924 | 51,959 | 16,961 | 1,694 | 169,538 |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| | | | | | | |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| Adjusted net operating expenses | | (88,571) | (47,612) | (18,891) | (1,762) | (156,836) |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| Amortisation of acquired | | (241) | (27) | - | - | (268) |
| intangibles | | | | | | |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| Segment operating expenses | | (88,812) | (47,639) | (18,891) | (1,761) | (157,104) |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| | | | | | | |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| Adjusted operating profit/(loss) | | 8,874 | 4,100 | (1,930) | (68) | 10,976 |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| Add back interest on CSF | | 1,479 | 247 | - | - | 1,726 |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| Amortisation of acquired | | (241) | (27) | - | - | (268) |
| intangibles | | | | | | |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| Segment operating profit/(loss) | | 10,112 | 4,320 | (1,930) | (68) | 12,434 |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| | | | | | | |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| Adjusted net interest | | 1,578 | (446) | (813) | (37) | 282 |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| Less interest on CSF | | (1,479) | (247) | - | - | (1,726) |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| Segment net interest | | 99 | (693) | (813) | (37) | (1,444) |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| | | | | | | |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| Adjusted profit/(loss) before | | 10,452 | 3,654 | (2,743) | (105) | 11,258 |
| tax | | | | | | |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| Amortisation of acquired | | (241) | (27) | - | - | (268) |
| intangibles | | | | | | |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
| Segment profit/(loss) before tax | | 10,211 | 3,627 | (2,743) | (105) | 10,990 |
+----------------------------------+----------+-----------+----------+----------+---------+------------+
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Year ended 31 December 2008 (audited) | | | | |
+-------------------------------------------------+-----------+----------+---------+------------+
| | | UK | Germany | France | Benelux | Total |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| | | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| | | | | | | |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Revenue | | 1,391,177 | 830,740 | 308,210 | 30,008 | 2,560,135 |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| | | | | | | |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Results | | | | | | |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Adjusted gross profit | | 194,934 | 113,703 | 38,821 | 3,372 | 350,830 |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Adjusted net operating expenses | | (165,323) | (99,385) | (40,511) | (3,467) | (308,686) |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Adjusted operating | | 29,611 | 14,318 | (1,690) | (95) | 42,144 |
| profit/(loss) | | | | | | |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Adjusted net interest | | 3,472 | (795) | (1,643) | (71) | 963 |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Adjusted profit/(loss) before | | 33,083 | 13,523 | (3,333) | (166) | 43,107 |
| tax | | | | | | |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| | | | | | | |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Reconciliation to reported profit | | | | | |
| before tax | | | | | |
+------------------------------------+------------+-----------+----------+---------+------------+
| Adjusted gross profit | | 194,934 | 113,703 | 38,821 | 3,372 | 350,830 |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Add back interest on CSF | | 3,292 | 737 | - | - | 4,029 |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Segment gross profit | | 198,226 | 114,440 | 38,821 | 3,372 | 354,859 |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| | | | | | | |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Adjusted net operating expenses | | (165,323) | (99,385) | (40,511) | (3,467) | (308,686) |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Amortisation of acquired | | (481) | (44) | - | - | (525) |
| intangibles | | | | | | |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Exceptional items | | (1,922) | - | (1,124) | - | (3,046) |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| ERP implementation costs | | (1,673) | 950 | 723 | - | - |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Segment operating expenses | | (169,399) | (98,479) | (40,912) | (3,467) | (312,257) |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| | | | | | | |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Adjusted operating | | 29,611 | 14,318 | (1,690) | (95) | 42,144 |
| profit/(loss) | | | | | | |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Add back interest on CSF | | 3,292 | 737 | - | - | 4,029 |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Amortisation of acquired | | (481) | (44) | - | - | (525) |
| intangibles | | | | | | |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Exceptional items | | (1,922) | - | (1,124) | - | (3,046) |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| ERP implementation costs | | (1,673) | 950 | 723 | - | - |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Segment operating profit/(loss) | | 28,827 | 15,961 | (2,091) | (95) | 42,602 |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| | | | | | | |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Adjusted net interest | | 3,472 | (795) | (1,643) | (71) | 963 |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Less interest on CSF | | (3,292) | (737) | - | - | (4,029) |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Segment net interest | | 180 | (1,532) | (1,643) | (71) | (3,066) |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| | | | | | | |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Adjusted profit/(loss) before | | 33,083 | 13,523 | (3,333) | (166) | 43,107 |
| tax | | | | | | |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Amortisation of acquired | | (481) | (44) | - | - | (525) |
| intangibles | | | | | | |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Exceptional items | | (1,922) | - | (1,124) | - | (3,046) |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| ERP implementation costs | | (1,673) | 950 | 723 | - | - |
+---------------------------------+--+------------+-----------+----------+---------+------------+
| Segment profit/(loss) before | | 29,007 | 14,429 | (3,734) | (166) | 39,536 |
| tax | | | | | | |
+---------------------------------+--+------------+-----------+----------+---------+------------+
5 Seasonality of operations
Historically revenues have been higher in the second half of the year than in
the first six months. This is principally driven by customer buying behaviour in
the markets in which we operate. Typically this leads to a more pronounced
effect on operating profit. In addition the effect is compounded further by the
tendency for the holiday entitlements of our employees to accrue during the
first half of the year and to be utilised in the second half.
6 Exceptional items
+--------------------------------------------------+----------+--+----------+--+----------+
| | H1 2009 | | H1 2008 | | Year |
| | | | | | 2008 |
+--------------------------------------------------+----------+--+----------+--+----------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+--------------------------------------------------+----------+--+----------+--+----------+
| Restructuring costs | (6,003) | | - | | - |
+--------------------------------------------------+----------+--+----------+--+----------+
| Impairment of intangible assets | - | | - | | (3,046) |
+--------------------------------------------------+----------+--+----------+--+----------+
| | (6,003) | | - | | (3,046) |
+--------------------------------------------------+----------+--+----------+--+----------+
Restructuring costs in H1 2009 arise from the change programme to reduce net
operating expenses. They include expenses from headcount reductions and vacant
premises costs.
For the full year 2008, the forecasted cash-flows for Computacenter France did
not support the value of the non-current assets in the business. An exceptional
impairment was recognised in relation to additions to intangible assets relating
to the Group ERP programme that could be specifically allocated to the French
cash-generating unit.
After the 2008 year-end a decision was reached to cease using the Digica brand
following the integration of the Digica operations into those of Computacenter
(UK) Limited. An exceptional impairment of the trademark, generated at the time
of acquisition, was recognised accordingly.
7 Income tax
+--------------------------------------------------+-----------+--+-----------+--+----------+
| The charge based on the profit for the period | | | | | |
| comprises: | | | | | |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| | Unaudited | | Unaudited | | Audited |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| | H1 2009 | | H1 2008 | | Year |
| | | | | | 2008 |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| UK corporation tax | 3,270 | | 4,087 | | 11,881 |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| Foreign tax | 147 | | 101 | | 673 |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| Adjustments in respect of prior periods | (49) | | (651) | | (4,028) |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| Deferred tax | (793) | | (469) | | (6,332) |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| | 2,575 | | 3,068 | | 2,194 |
+--------------------------------------------------+-----------+--+-----------+--+----------+
8 Earnings per ordinary share
Earnings per share (EPS) amounts are calculated by dividing profit attributable
to ordinary equity holders by the weighted average number of ordinary shares
outstanding during the year (excluding own shares held).
Diluted earnings per share amounts are calculated by dividing profit
attributable to ordinary equity holders by the weighted average number of
ordinary shares outstanding during the year (excluding own shares held) adjusted
for the effect of dilutive options.
Adjusted basic and adjusted diluted EPS are presented to provide more comparable
and representative information. Accordingly the adjusted basic and adjusted
diluted EPS figures exclude the amortisation of acquired intangibles and
exceptional items.
+---------------------------------------------------+-----------+--+-----------+--+----------+
| | Unaudited | | Unaudited | | Audited |
+---------------------------------------------------+-----------+--+-----------+--+----------+
| | H1 2009 | | H1 2008 | | Year |
| | | | | | 2008 |
+---------------------------------------------------+-----------+--+-----------+--+----------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+---------------------------------------------------+-----------+--+-----------+--+----------+
| Profit attributable to equity holders of the | 9,406 | | 7,922 | | 37,337 |
| parent | | | | | |
+---------------------------------------------------+-----------+--+-----------+--+----------+
| Amortisation of acquired intangibles attributable | 259 | | 268 | | 525 |
| to equity holders of the parent | | | | | |
+---------------------------------------------------+-----------+--+-----------+--+----------+
| Tax on amortisation of acquired intangibles | (67) | | (67) | | (150) |
+---------------------------------------------------+-----------+--+-----------+--+----------+
| Exceptional items | 6,003 | | - | | 3,046 |
+---------------------------------------------------+-----------+--+-----------+--+----------+
| Tax on exceptional items | (1,276) | | - | | - |
+---------------------------------------------------+-----------+--+-----------+--+----------+
| Exceptional items within the tax charge for the | - | | - | | (8,377) |
| year | | | | | |
+---------------------------------------------------+-----------+--+-----------+--+----------+
| Profit before amortisation of acquired | 14,325 | | 8,123 | | 32,381 |
| intangibles and exceptional items | | | | | |
+---------------------------------------------------+-----------+--+-----------+--+----------+
| | | | | | |
+---------------------------------------------------+-----------+--+-----------+--+----------+
| | No '000 | | No '000 | | No '000 |
+---------------------------------------------------+-----------+--+-----------+--+----------+
| Basic weighted average number of shares | 146,845 | | 150,850 | | 151,279 |
| (excluding own shares held) | | | | | |
+---------------------------------------------------+-----------+--+-----------+--+----------+
| Effect of dilution: | | | | | |
+---------------------------------------------------+-----------+--+-----------+--+----------+
| Share options | 3,143 | | 2,769 | | 3,077 |
+---------------------------------------------------+-----------+--+-----------+--+----------+
| Diluted weighted average number of shares | 149,988 | | 153,619 | | 154,356 |
+---------------------------------------------------+-----------+--+-----------+--+----------+
+---------------------------------------------------+----------+--+----------+--+----------+
| | H1 2009 | | H1 2008 | | Year |
| | | | | | 2008 |
+---------------------------------------------------+----------+--+----------+--+----------+
| | pence | | pence | | pence |
+---------------------------------------------------+----------+--+----------+--+----------+
| Basic earnings per share | 6.4 | | 5.3 | | 24.7 |
+---------------------------------------------------+----------+--+----------+--+----------+
| Diluted earnings per share | 6.3 | | 5.2 | | 24.2 |
+---------------------------------------------------+----------+--+----------+--+----------+
| Adjusted basic earnings per share | 9.8 | | 5.4 | | 21.4 |
+---------------------------------------------------+----------+--+----------+--+----------+
| Adjusted diluted earnings per share | 9.6 | | 5.3 | | 21.0 |
+---------------------------------------------------+----------+--+----------+--+----------+
9 Dividends paid and proposed
The proposed final dividend for 2008 of 5.5p per ordinary share was approved at
the AGM in May 2009 and was paid on 11 June 2009. An interim dividend in respect
of 2009 of 3p per ordinary share, amounting to a total dividend of GBP4,406,000,
was declared by the Directors at their meeting on 26 August 2009. This interim
report does not reflect this dividend payable.
10 Adjusted management cash flow statement
The adjusted management cash flow has been provided to explain how management
view the cash performance of the business. There are two primary differences to
this presentation compared to the statutory cash flow statement, as follows:
1) Factor financing is not included within the statutory definition of cash and
cash equivalents, but operationally is managed within the total net
funds/borrowings of the businesses; and
2) Items relating to customer-specific financing are adjusted for as follows:
a. Interest paid on customer-specific financing is reclassified from interest
paid to adjusted operating profit; and
b. Where customer-specific assets are financed by finance leases and the
liabilities are matched by future amounts receivable under customer operating
lease rentals, the depreciation of leased assets and the repayment of the
capital element of finance leases are offset within net working capital; and
c. Where assets are financed by loans and the liabilities are matched by amounts
receivable under customer operating lease rentals, the movement on loans within
financing activities is also offset within working capital.
Adjusted management cash flow statement
For the six months ended 30 June 2009
+--------------------------------------------------+-----------+--+-----------+--+----------+
| | Unaudited | | Unaudited | | Audited |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| | H1 2009 | | H1 2008 | | Year |
| | | | | | 2008 |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| Adjusted profit before tax | 18,243 | | 11,258 | | 43,107 |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| Net finance income | (276) | | (282) | | (963) |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| Depreciation and amortisation | 8,262 | | 8,976 | | 18,055 |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| Share-based payment | 1,076 | | 1,573 | | 2,525 |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| Working capital movements | 39,332 | | (5,456) | | 16,306 |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| Other adjustments | (193) | | (1,765) | | (186) |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| Income taxes paid | (10,029) | | (5,527) | | (6,052) |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| Adjusted cash flow from operating activities | 56,415 | | 8,777 | | 72,792 |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| Net interest received | 328 | | 62 | | 659 |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| Capital expenditure and investments | (8,590) | | (5,382) | | (24,313) |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| Equity dividends paid | (8,097) | | (8,063) | | (12,021) |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| Proceeds from issue of shares | 3 | | - | | - |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| Purchase of own shares | (559) | | (9,501) | | (9,695) |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| Increase/(decrease) in net funds/(debt) | 39,500 | | (14,107) | | 27,422 |
| excluding CSF in the period | | | | | |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| | | | | | |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| Increase/(decrease) in net | 39,500 | | (14,107) | | 27,422 |
| funds/(debt) excluding CSF | | | | | |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| Effect of exchange rates on cash and cash | 3,152 | | 575 | | (6,626) |
| equivalents | | | | | |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| Net funds/(debt) excluding CSF at beginning of | 4,609 | | (16,187) | | (16,187) |
| period | | | | | |
+--------------------------------------------------+-----------+--+-----------+--+----------+
| Net funds/(debt) excluding CSF at end of period | 47,261 | | (29,719) | | 4,609 |
+--------------------------------------------------+-----------+--+-----------+--+----------+
11 Publication of non-statutory accounts
The financial information contained in the interim statement does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985. The
auditors have issued an unqualified opinion on the Group's statutory financial
statements under International Accounting Standards for the year ended 31
December 2008. Those accounts have been delivered to the Registrar of Companies.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UNRNRKBRWUAR
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